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07-17-2023 Agenda and PacketA.5:30 P.M. - WORK SESSION Note: Unless otherwise noted, work sessions are held in the Fountain Conference Room in the lower level of City Hall and are open to the public. If the City Council does not complete the work session items in the time allotted, the remaining items will be considered after the regular agenda. A.1 Presentation of Audit Results, Redpath A.2 Organizational Study/Staffing Study Presentation, Raftelis A.3 2024 Preliminary Budget and Levy Discussion A.4 Downtown Redevelopment Workshop A.5 Future Work Session Schedule B.7:00 P.M. - CALL TO ORDER (Pledge of Allegiance) C.PUBLIC ANNOUNCEMENTS D.CONSENT AGENDA All items listed under the Consent Agenda are considered to be routine by the city council and will be considered as one motion. There will be no separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and considered separately. City council action is based on the staff recommendation for each item. Refer to the council packet for each staff report. D.1 Approve City Council Minutes dated June 26, 2023 D.2 Receive Park & Recreation Commission Meeting Minutes dated May 23, 2023 D.3 Receive Environmental Commission Meeting Minutes dated May 10, 2023 D.4 Approve Claims Paid dated July 17, 2023 AGENDA CHANHASSEN CITY COUNCIL MONDAY, JULY 17, 2023 CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD 1 D.5 Approve Officer Change for CL Sushi 586, Inc. as it Relates to the On-Sale Wine and Malt Liquor Licenses for Kai's Sushi & Grill located at 586 West 78th Street, and approve a request to expand the licensed premises to include the patio immediately contiguous to the restaurant. D.6 Approve a Massage Therapy Business License for N. Gioi Life LLC located at 8951 Crossroads Boulevard, Suite 207 (My Salon Suite) D.7 Approve a Massage Therapy Business License for Jaime DeBoer, LLC located at 8951 Crossroads Boulevard, Suite 206 (My Salon Suite) D.8 Approve a Massage Therapy Business License for Meraki Massage & Wellness located at 8951 Crossroads Boulevard, Suite 205 (My Salon Suites) D.9 Approve Temporary On-Sale Intoxicating Liquor License for Hackamore Invitational Brew Fest Event, August 26, 2023, Hackamore Brewing Company D.10 Approve Proposal from HKGi to provide Design Services for the Site Improvements for Civic Campus D.11 Resolution 2023-XX: Designate No Parking Along Both Sides of Galpin Boulevard D.12 Resolution 2023-XX: Authorize execution of an Aquatic Invasive Species Watercraft Inspection Agreement with Carver County D.13 Resolution 2023-XX: Approve Cooperative Agreement with MCES related to the Lift Station #3 Forcemain Replacement Project D.14 Resolution 2023-XX: Authorize entering into a Professional Services Agreement with SRF for the Design Phase of the Minnetonka Middle School West (MMSW) Roundabout Project E.VISITOR PRESENTATIONS Visitor Presentations requesting a response or action from the City Council must complete and submit the Citizen Action Request Form (see VISITOR GUIDELINES at the end of this agenda). F.PUBLIC HEARINGS G.GENERAL BUSINESS G.1 Consider a request for a Site Plan approval to build an indoor Pickleball facility and outdoor courts for property located at 2970 Water Tower Place, Life Time Fitness, Inc. G.2 Ordinance XXX: Consider a Six-Month Moratorium on Land Use Applications for Properties Zoned Central Business District (CBD) to Study Allowed Uses H.COUNCIL PRESENTATIONS I.ADMINISTRATIVE PRESENTATIONS J.CORRESPONDENCE DISCUSSION 2 J.1 Letter from Arbor Day Foundation Congratulating Chanhassen on receiving a 2022 Tree City USA Growth Award K.ADJOURNMENT GUIDELINES FOR VISITOR PRESENTATIONS Welcome to the Chanhassen City Council Meeting. In the interest of open communications, the Chanhassen City Council wishes to provide an opportunity for the public to address the City Council. That opportunity is provided at every regular City Council meeting during Visitor Presentations. Anyone seeking a response or action from the City Council following their presentation is required to complete and submit a Citizen Action Request Form. An online form is available at https://www.chanhassenmn.gov/action or paper forms are available in the city council chambers prior to the meeting. A total of thirty minutes is alloted for Visitor Presentations. Priority is given to Chanhassen residents. An additional thirty minutes may be provided after General Business items are complete at the discretion of the City Council. Anyone indicating a desire to speak during Visitor Presentations will be acknowledged by the Mayor. When called upon to speak, state your name, address, and topic. All remarks shall be addressed to the City Council as a whole, not to any specific member(s) or to any person who is not a member of the City Council. If there are a number of individuals present to speak on the same topic, please designate a spokesperson that can summarize the issue. Limit your comments to five minutes. Additional time may be granted at the discretion of the Mayor. If you have written comments, provide a copy to the Council. Comments may also be emailed to the City Council at council@chanhassenmn.gov. During Visitor Presentations, the Council and staff listen to comments and will not engage in discussion. Council members or the City Manager may ask questions of you in order to gain a thorough understanding of your concern, suggestion or request. Please be aware that disrespectful comments or comments of a personal nature, directed at an individual either by name or inference, will not be allowed. Personnel concerns should be directed to the City Manager. Members of the City Council and some staff members may gather at Tequila Butcher, 590 West 79th Street in Chanhassen immediately after the meeting for a purely social event. All members of the public are welcome. 3 City Council Item July 17, 2023 Item Presentation of Audit Results, Redpath File No.Item No: A.1 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Kelly Grinnell, Finance Director Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority Operational Excellence SUMMARY Andy Hering, Partner at Redpath and Company, will attend the work session to present the results of the audit of the 2022 financial statements. The City's 2022 Annual Comprehensive Financial Report is attached. BACKGROUND DISCUSSION BUDGET RECOMMENDATION 4 ATTACHMENTS City of Chanhassen - 2022 Final Issued ACFR Complete 5 2022 Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2022 City of Chanhassen, Minnesota 6 - This page intentionally left blank - 7 CITY OF CHANHASSEN, MINNESOTA Annual Comprehensive Financial Report for the Year Ended December 31, 2022 Prepared by Finance Department CITY OF CHANHASSEN 7700 Market Blvd, PO Box 147 Chanhassen, MN 55317 8 - This page intentionally left blank - 9 CITY OF CHANHASSEN, MINNESOTA TABLE OF CONTENTS Page Reference No. I. INTRODUCTORY SECTION Letter of Transmittal 3 Certificate of Achievement 9 Organization Chart 10 Elected Officials and Administration 11 II. FINANCIAL SECTION Independent Auditor's Report 15 Management's Discussion and Analysis 21 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement 1 39 Statement of Activities Statement 2 40 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 42 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Statement 4 43 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement 5 44 Statement of Net Position - Proprietary Funds Statement 6 45 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 46 Statement of Cash Flows - Proprietary Funds Statement 8 47 Notes to Financial Statements 49 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 9 92 Schedule of Changes in the City's Total OPEB Liability and Related Ratios Statement 10 98 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 11 99 Schedule of Pension Contributions - General Employees Retirement Fund Statement 12 100 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 13 101 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 14 103 Schedule of Changes in the Net Pension Liability and Related Ratios - Chanhassen Fire Department Relief Association Statement 15 104 Schedule of Contributions - Chanhassen Fire Department Relief Association Statement 16 106 Notes to RSI 107 10 CITY OF CHANHASSEN, MINNESOTA TABLE OF CONTENTS Page Reference No. Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 17 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Statement 18 117 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 19 120 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds Statement 20 121 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 21 124 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Debt Service Funds Statement 22 125 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 23 128 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Capital Project Funds Statement 24 130 Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Contribution Fund Statement 25 133 Cemetery Fund Statement 26 134 CATV Statement 27 135 III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Position by Component Table 1 140 Changes in Net Position Table 2 142 Fund Balances - Governmental Funds Table 3 146 Changes in Fund Balances - Governmental Funds Table 4 148 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 150 Direct and Overlapping Property Tax Capacity Rates Table 6 152 Principal Property Taxpayers Table 7 153 Property Tax Levies and Collections Table 8 155 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 156 Ratios of General Bonded Debt Outstanding Table 10 158 Direct and Overlapping Governmental Activities Debt Table 11 159 Legal Debt Margin Information Table 12 160 Pledged Revenue Coverage Table 13 161 11 CITY OF CHANHASSEN, MINNESOTA TABLE OF CONTENTS Page Reference No. Demographic and Economic: Demographic and Economic Statistics Table 14 162 Principal Employers Table 15 163 Operating Information: Full-Time Equivalent City Government Employees by Function/Program Table 16 164 Operating Indicators by Function/Program Table 17 166 Capital Asset Statistics by Function/Program Table 18 168 Combined Schedule of Indebtedness Exhibit 1 172 Debt Service Payments to Maturity: General Obligation Bonds - Governmental Activities Exhibit 2 174 General Obligation Revenue Bonds Exhibit 3 175 Schedule of Deferred Tax Levies Exhibit 4 176 IV. OTHER INFORMATION (UNAUDITED) 12 - This page intentionally left blank - 13 I. INTRODUCTORY SECTION 1 14 - This page intentionally left blank - 2 15 June 28, 2023 To the Citizens of the City of Chanhassen, Honorable Mayor and City Council Members, and Ms. Laurie Hokkanen, City Manager The Annual Comprehensive Financial Report of the City of Chanhassen, Minnesota (the “City”) for the fiscal year ended December 31, 2022, is hereby submitted. The report was prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as established by the Government Accounting Standards Board and meets the requirements of the Minnesota State Auditor’s Office. This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City’s financial statements have been audited by Redpath and Company, LTD, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2022, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial presentation. Based upon the audit, the independent auditor concluded that there was reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended December 31, 2022, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first item in the financial section of this report. GAAP requires the management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found in the financial section of this report, immediately following the report of the independent auditors. 3 16 City Profile The City of Chanhassen strives to be "A Community for Life.” Our vision is that Chanhassen is a safe, welcoming community with engaged residents, abundant natural amenities, and vibrant businesses, supported by valued services that make this a community for life. Our mission is to serve the public. We do this through the delivery of reliable, cost-effective services designed to provide a safe, sustainable community. Our core values are innovation, respect, stewardship, and engagement. The City of Chanhassen, Minnesota, a suburban community located southwest of the Twin Cities metropolitan area, is situated primarily in eastern Carver County with a small portion in Hennepin County. The City encompasses an area of 22.8 square miles. Chanhassen enjoys an excellent location, with convenient access to the Minneapolis-Saint Paul metropolitan area via U.S. Highway 212, and State Highways 5 and 7. State Highways 41 and 101 provide access to the north and south. The village of Chanhassen was organized in 1896. In 1967 the village of Chanhassen and Chanhassen Township merged to become the City of Chanhassen. The City of Chanhassen operates as a statutory Plan B or Council-Manager form of government in Minnesota. Plan B cities have an elected mayor and council members with an appointed City Manager. The City Manager oversees administrative duties for the City while the Mayor and Council maintain traditional policy-making roles. With a staff of around 80 regular, full-time employees, the City of Chanhassen provides a full range of services, including police and fire protection; building inspections; construction and maintenance of highways, streets, and other infrastructure; recreational activities and cultural events; and general administrative services. The City also operates three enterprises: water, sewer, and surface water management. The City is also financially accountable for the Chanhassen Economic Development Authority (EDA), which is included in this report as a blended component unit. The Chanhassen City Council serves as the board of the EDA. The Chanhassen Fire Relief Association is a separate legal entity and accordingly is excluded from this report. Strategic Priorities The City of Chanhassen 2021-2024 Strategic Plan consists of five strategic priorities. Associated with each priority is a set of desired outcomes, key outcome indicators, and performance targets, describing expected results and how the results will be measured. The five strategic priorities (with desired outcomes) are:  Financial Sustainability o Financial stability in all funds o Financial policies guide decision making o Financial systems produce timely, accurate, and meaningful information  Asset Management o Effective utilization and protection of assets o Ability to pay for critical assets o Assets adequate to support adopted levels of service  Development and Redevelopment o Diversity in new development o Redevelopment consistent with our vision o New innovative places and spaces 4 17  Operational Excellence o Satisfied workforce o A competent workforce o Improved operational effectiveness, including through the use of technology and innovation  Communications o Improved understanding of City operations o Improved internal communication o Improved communication with outside organizations Annual Budget The annual budget serves as the foundation for the City of Chanhassen’s financial planning and control. The objectives of these budgetary controls are to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Chanhassen City Council. Activities of the General Fund and certain special revenue, capital project, and enterprise funds are included in the annual budget. Debt service budgetary control is established by bond sale resolution covenants. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. Expenditures for departments or divisions that exceed appropriations are not authorized unless additional revenue sources or fund balance are identified and available. Unused appropriated expenditures lapse at year-end. The City maintains stable financial operations due to a history of conservative budgeting, maintenance of healthy reserves, and a lack of reliance on state aid. Economic Condition and Outlook The City has grown steadily since incorporating in 1967. The chart below shows population counts from the U.S. Census through 2020 and forecasts from the Metropolitan Council for 2030 and 2040: Forecasted employment and annual average wages continue to grow in the City according to the Minnesota Department of Employment and Economic Development, which surveys quarterly employment and wages in the state. Forecasted employment of 15,600 in 2020 and is expected to increase to 17,000 by 2030 and 18,400 by 2040. Average annual wages in 2021 were $63,802, up from $46,265 in 2010. Average annual unemployment is low for Chanhassen residents, coming in at 2.4% in 2021 and 1.6% in 2022. - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 1970 1980 1990 2000 2010 2020 2030 2040 Chanhassen Population Census Forecast 5 18 The City continues to see steady building permit activity and expects to see continuous growth into the future. The Avienda Project, located near Highway 212 and Powers Boulevard is underway. The project includes a mix of high-quality detached villa homes, multi-family and senior living residential facilities, office, medical and professional services, retail, entertainment, restaurants, and hospitality. The following chart summarizes the City’s annual market value since 2003. In 2021, the City began a facilities study to evaluate the current condition and long-term replacement needs of the City’s facilities. The study evaluated current condition, maintenance planning, and future needs. Based on the facilities study results, the City is reviewing concepts for a new civic campus which would include a new City Hall, Council Chambers, Senior Center, and destination park amenities. Design for the new civic campus is expected to occur in 2023, and construction to occur in 2024 and 2025. The Lake Ann Park Preserve Project is currently in the design phase. The City Council had dedicated $1.3 million of American Rescue Plan Act (ARPA) funds for Phase I of this project. This project has several objectives, including:  Continue trails around Lake Ann to allow for an eventual loop  Preserve the land as a valued natural area in Chanhassen  Connect residents with nature, trails, and parks  Protect the ecological functioning (habitat, water quality) of the site  Celebrate Lake Ann, Lake Lucy, and this property as community amenities Chanhassen General Obligation bonds continue to maintain the highest possible rating from Standard & Poor’s Rating Services, reaffirming their confidence in the City’s financial management and its economic outlook. High bond ratings mean the City is able to sell General Obligation bonds at lower interest rates. Long-Term Financial Planning The City expanded its long-term financial planning in 2021 to prepare multi-year financial plans for each of its funds in the 2022 annual budget. The plans include projections of revenues, expenditures, fund balance, and cash balance for a minimum of five years as well as a comparison to historical actual results and the current budget. A narrative describes the fund, background, sources and uses of funds, assumptions, and challenges for the future. These plans form the foundation for making budget decisions for the City’s resources. The plans are updated each year. $- $1 $2 $3 $4 $5 $6 $7 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023BillionsEstimated Market Value 6 19 The City is committed to preserving the value of the City’s capital asset investment. The City prepares an annual five-year Capital Improvement Plan (CIP) for additions to and replacements of the City’s infrastructure and capital assets. The City has dedicated franchise fee revenue from electric and natural gas utilities as a funding source for the replacement of the City’s streets. The City annually adopts a five-year Capital Improvement Plan to coordinate the financing and timing of major equipment purchases and construction projects. Each year the City selects city streets for a pavement rehabilitation project. In 2022, approximately five miles of roadway were rehabilitated in the following neighborhoods: Brinker, Longacres, and Stone Creek. Improvements included a full-depth reclamation or mill and overlay, spot curb and gutter replacement, ADA improvements, and water, sewer, and stormwater management repairs. Relevant Financial Policies The City has established a comprehensive set of financial policies for use as a guideline for operations. The City’s policy for General Fund reserve balances is to maintain an unassigned fund balance at a minimum of 50% of the ensuing year’s budgeted tax levy to provide cash flow between property tax settlements. The City’s Investment Policy is designed to preserve capital while attaining a market- average yield consistent with cash flow needs. The policy prioritizes safety, liquidity, and yield in that order. The City also has adopted policies for debt, capital assets, public purpose expenditures, and purchasing. Awards 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 Chanhassen for its annual comprehensive financial report for the fiscal year ended December 31, 2021. This was the thirtieth consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate. Acknowledgments We would like to express our appreciation to the members of the City Council for their interest and support in planning and conducting the financial operations of the City. We also want to thank the City Manager, department directors, and members of the Finance Department for their assistance in compiling the information necessary for this report. Special recognition goes to Danielle Washburn, Assistant Finance Director, for her essential contributions to the preparation of this report. Finally, we wish to acknowledge Redpath and Company, LTD for their assistance in preparing this report. Respectfully submitted, Kelly Grinnell Kelly Grinnell Finance Director 7 20 - This page intentionally left blank - 8 21 9 22 City of Chanhassen, Minnesota Organization Chart Citizens Administration Mayor - Council Environmental Commission Planning Commission Commission on Aging Park & RecreationPark & Recreation Commission Economic Development Authority Finance Law Enforcement & Fire Administration Public Works Community Development Parks and Recreation 10 23 CITY OF CHANHASSEN, MINNESOTA ELECTED OFFICIALS AND ADMINISTRATION December 31, 2022 Term Expires Mayor: Elise Ryan 12/31/2026 Council Members: Josh Kimber 12/31/2024 Jerry McDonald 12/31/2026 Haley Schubert 12/31/2024 Mark von Oven 12/31/2026 City Manager: Laurie Hokkanen Appointed Assistant City Manager: Matthew Unmacht Appointed Economic Development Manager: Samantha DiMaggio Appointed Finance Director: Kelly Grinnell Appointed IT Manager: Richard Rice Appointed Fire Chief: Donald Johnson Appointed Public Works Director/City Engineer: Charles Howley Appointed Parks and Recreation Director: Jerry Ruegemer Appointed Community Development Director: Vacant Appointed 11 24 - This page intentionally left blank - 12 25 II. FINANCIAL SECTION 13 26 - This page intentionally left blank - 14 27 55 5th Street East, Suite 1400, St. Paul, MN, 55101      www.redpathcpas.com INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Chanhassen, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City of Chanhassen, Minnesota's basic financial statements as listed in the table of contents. 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, each major fund, and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of December 31, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions 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. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Chanhassen, Minnesota and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 15 28 Report on Summarized Comparative Information We have previously audited the City of Chanhassen, Minnesota’s 2021 financial statements, and we expressed unmodified audit opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information in our report dated May 31, 2022. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2021 is consistent, in all material respects, with the audited financial statements from which it has been derived. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Chanhassen, Minnesota’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 16 29 In performing an audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 of Chanhassen, Minnesota's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Chanhassen, Minnesota's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Change in Accounting Principle As described in Note 18 to the financial statements, the City of Chanhassen, Minnesota adopted new accounting guidance for the year ended December 31, 2022, Governmental Accounting Standards Board Statement No. 87, Leases. Our opinions are not modified with respect to this matter. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedule, and the schedules of OPEB and pension information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 17 30 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chanhassen, Minnesota's basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory, statistical, and other information sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 18 31 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 28, 2023 on our consideration of the City of Chanhassen, Minnesota’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 of Chanhassen, Minnesota'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 of Chanhassen, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 28, 2023 19 32 - This page intentionally left blank - 20 33 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 As management of the City of Chanhassen, Minnesota (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 fiscal year ended December 31, 2022. 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 in the introductory section of this report. Financial Highlights The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $151,628,476 (net position). Of this amount, $25,204,334 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. The City’s total net position decreased by $4,698,218. As of the close of the current fiscal year, governmental funds reported combined ending fund balances of $18,049,449. Of this amount, $1,167,396 is restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. At the end of the current fiscal year, the General Fund had a fund balance of $8,372,231. Of that amount, $91,340 was in a nonspendable form, $657,000 has been assigned, and the remaining $7,623,891 was unassigned. Total debt decreased by $2,709,616 during the current fiscal year, from $31,060,408 to $28,350,792. Please refer to the Capital Asset and Debt Administration portion of this analysis for detailed information regarding the City’s debt. Overview of the Financial Statements The management’s discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-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 a private-sector business. 21 34 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference 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 net position changed during the most recent fiscal 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 vacation leave). 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, public works, parks and recreation, and community development. The business-type activities include water, sewer, and surface water management. The government-wide financial statements can be found on Statements 1 and 2 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 can be divided into two categories: governmental funds and proprietary 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 fiscal year. Such information may be useful in evaluating a government’s near-term financial 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 financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 22 35 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 The City maintains four individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the following major funds: General Fund Grant Fund PMP Pavement Management Capital TH101 Improvements – Pioneer to Flying Cloud Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for the General Fund and for the Contribution, Cemetery, and CATV special revenue funds. Budgetary comparison statements have been provided for those funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on Statements 3 through 5 of this report. Proprietary funds. The City maintains three enterprise funds as a part of its proprietary fund type. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the following funds: •Water •Sewer •Surface Water Management The basic proprietary fund financial statements can be found on Statements 6 through 8 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 following Statement 8 of this report. 23 36 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 Other information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Combining and individual fund financial statements and schedules can be found on Statements 17 through 27 of this report. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. Assets plus deferred outflows of resources exceeded liabilities plus deferred inflows of resources by $151,628,476 at the close of the most recent fiscal year. The largest portion of the City’s net position ($125,288,329, or 83%) reflects its net investment in capital assets (e.g., land, buildings, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses 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. City of Chanhassen, Minnesota's Net Position 2022 2021 2022 2021 2022 2021 Assets: Current and other assets $31,618,730 $30,563,744 $14,145,617 $18,593,242 $45,764,347 $49,156,986 Capital assets 72,230,374 74,773,946 80,531,259 81,676,826 152,761,633 156,450,772 Total assets 103,849,104 105,337,690 94,676,876 100,270,068 198,525,980 205,607,758 Total deferred outflows of resources 3,063,136 2,444,527 744,310 516,631 3,807,446 2,961,158 Liabilities: Long-term liabilities outstanding 11,458,747 9,040,482 26,678,192 27,118,843 38,136,939 36,159,325 Other liabilities 7,591,813 7,987,711 824,143 593,753 8,415,956 8,581,464 Total liabilities 19,050,560 17,028,193 27,502,335 27,712,596 46,552,895 44,740,789 Total deferred inflows of resources 4,108,370 6,853,969 43,685 647,464 4,152,055 7,501,433 Net position: Net investment in capital assets 68,702,496 70,860,083 56,585,833 56,069,887 125,288,329 126,929,970 Restricted 1,135,813 1,020,560 - - 1,135,813 1,020,560 Unrestricted 13,915,001 12,019,412 11,289,333 16,356,752 25,204,334 28,376,164 Total net position $83,753,310 $83,900,055 $67,875,166 $72,426,639 $151,628,476 $156,326,694 Governmental Activities Business-Type Activities Totals $1,135,813 of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of $25,204,334 in unrestricted net position may be used to meet ongoing obligations to citizens and creditors. 24 37 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental and business-type activities. Governmental Activities Total net position of the governmental activities decreased $146,745 or 0.17%. The most significant components of change in net position are as follows: Net investment in capital assets decreased $2,157,587. This decrease was due to scheduled bond payments, offset by current year depreciation exceeding capital asset additions. Restricted net position increased $115,253 primarily due to an increase in amounts restricted for park improvements. Unrestricted net position increased $1,895,589 resulting from a shift in net position into this category from restricted net position. Business-Type Activities Total net position of the business-type activities decreased by $4,551,473. The primary factors contributing to the decrease were a larger percentage of personal services allocated to these funds in 2022, an increase in pension expense related to GASB 68, and significant expenses for construction maintenance projects which were not capitalized. 25 38 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 City of Chanhassen, Minnesota's Changes in Net Position 2022 2021 2022 2021 2022 2021 Revenues: Program revenues: Charges for services $4,967,673 $5,603,524 $9,749,237 $9,312,636 $14,716,910 $14,916,160 Operating grants and contributions 2,552,195 6,047,214 47,850 38,380 2,600,045 6,085,594 Capital grants and contributions 3,881,530 4,683,258 4,090,784 8,513,319 7,972,314 13,196,577 General revenues: General property taxes 12,644,286 12,075,260 - - 12,644,286 12,075,260 Tax increment collections 279,283 279,653 - - 279,283 279,653 Grants and contributions not restricted to specific programs 170,656 311 - - 170,656 311 Unrestricted investment earnings (loss)(824,062) (22,856) (434,818) (78,079) (1,258,880) (100,935) Gain on sale of capital assets 155,654 84,387 - - 155,654 84,387 Total revenues 23,827,215 28,750,751 13,453,053 17,786,256 37,280,268 46,537,007 Expenses: General government 3,537,796 3,545,101 - - 3,537,796 3,545,101 Public safety 4,396,715 4,055,112 - - 4,396,715 4,055,112 Public works 11,350,075 17,282,830 - - 11,350,075 17,282,830 Parks and recreation 3,432,625 2,957,867 - - 3,432,625 2,957,867 Community development 850,151 814,146 - - 850,151 814,146 Interest and fees on long-term debt 71,680 72,195 - - 71,680 72,195 Water - - 7,301,583 5,245,018 7,301,583 5,245,018 Sewer - - 6,548,611 5,025,866 6,548,611 5,025,866 Surface water management - - 4,489,250 2,541,714 4,489,250 2,541,714 Total expenses 23,639,042 28,727,251 18,339,444 12,812,598 41,978,486 41,539,849 Increase (decrease) in net position before transfers 188,173 23,500 (4,886,391) 4,973,658 (4,698,218) 4,997,158 Transfers (334,918) (185,794) 334,918 185,794 - - Change in net position (146,745) (162,294) (4,551,473) 5,159,452 (4,698,218) 4,997,158 Net position - beginning 83,900,055 84,062,349 72,426,639 67,267,187 156,326,694 151,329,536 Net position - ending $83,753,310 $83,900,055 $67,875,166 $72,426,639 $151,628,476 $156,326,694 Governmental Activities Business-Type Activities Totals 26 39 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 Governmental Activities Revenues Revenues for the governmental activities decreased by $4,923,536, or 17%. This decrease is largely due to a decrease in operating grants and contributions related to lower reimbursements related to the Highway 101 construction project. Loss on investments was higher in 2022 due to the decrease in fair value of investments as a result of the increase in interest rates in 2022. ($2,000,000) $ - $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2021 2022 Governmental Activities Revenues Property taxes Charges for services Operating grants and contributions Capital grants and contributions Investment earnings (loss) Other income 27 40 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 Expenses Expenses for governmental activities decreased by $5,088,209 or 18%. This decrease was largely due to lower construction costs related to the Highway 101 construction project. $ - $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 2021 2022 Governmental Activities Expenses General government Public safety Public works Parks and recreation Community development Interest on long-term debt 28 41 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 Business-Type Activities Revenues Revenues for the business-type activities decreased by $4,333,203, or 24%. The decrease was primarily due to a decrease in connection charges and contributions of capital assets. Loss on investments was higher in 2022 due to the decrease in fair value of investments as a result of the increase in interest rates in 2022. ($1,000,000) $ - $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 2021 2022 Business-Type Activities Revenue Charges for services Operating grants and contributions Capital grants and contributions Investment loss 29 42 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 Expenses Expenses for business-type activities increased by $5,526,846, or 43%. Expenses for all three of the enterprises were higher, primarily due to a larger percentage of personal services allocated to these funds and a significant amount spent on construction maintenance projects. $ - $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2021 2022 Business-Type Activities Expenses Water Sewer Surface water management 30 43 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 Financial Analysis of the Government's Funds 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, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $18,049,449. Approximately 6% of this amount ($1,167,396) constitutes fund balance restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. Of the remaining fund balance, $91,340 is for prepaid items and thus is nonspendable, $9,260,977 has been assigned, and $7,529,736 is unassigned. The General Fund balance increased by $382,716 in 2022. The increase was primarily due to higher than expected permit revenues and an increase in personal services expenditures allocated to the enterprise funds. The Grant Fund balance decreased by $69,452 due to the decrease in the fair value of investments as a result of the increase in interest rates in 2022. The PMP Pavement Management Capital fund balance increased by $1,061,522. The increase was due to a large amount of special assessment payments for construction projects and intergovernmental grants and aids for construction projects. The TH101 Improvements – Pioneer to Flying Cloud fund balance decreased by $7,334 in 2022 due to the decrease in the fair value of investments. Total nonmajor special revenue fund balance decreased by $155,988. The decrease was largely in the CATV fund resulting from the use of reserve funds for higher than expected current expenditures. Total nonmajor debt service fund balance decreased by $53,684. The decrease was primarily due to the decrease in the fair value of investments as a result of the increase in interest rates in 2022. Total nonmajor capital project fund balance increased by $47,610. The increase was primarily due to not spending all of the current year revenue received from transfers, property tax levy, and park dedication fees. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. 31 44 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 The unrestricted net position in the respective proprietary funds is $5,017,889 (Water), $5,802,608 (Sewer), and $468,836 (Surface Water Management). Net position in the Water Fund decreased by $1,530,754. The decrease was due primarily to high construction project expenses and a loss on the disposal of capital assets related to the removal of vacated drainage and utility easements. Net position in the Sewer Fund decreased by $1,351,116. The decrease was due primarily to high construction project expenses and a loss on the disposal of capital assets related to the removal of vacated drainage and utility easements. Net position in the Surface Water Management Fund decreased by $1,669,603. The decrease was due primarily to high construction project expenses and a loss on the disposal of capital assets related to the removal of vacated drainage and utility easements. Budgetary Highlights General Fund There were no amendments to the General Fund budget during 2022. Budgetary Variances – Revenues The negative General Fund revenue variance of $69,415 was primarily due to the decrease in the fair value of investments as a result of the increase in interest rates in 2022, which was offset by other revenue increases. Budgetary Variances – Expenditures Expenditures for the General Fund were $542,131 lower than budgeted. This was primarily due to personal services being under budget from employee turnover, vacant positions, and higher wage allocations to the enterprise funds. 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, 2022, amounts to $152,761,633 (net of accumulated depreciation and amortization). This investment in capital assets includes land, easements, right-to-use leased assets, buildings, infrastructure, machinery, and equipment. 32 45 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 City of Chanhassen, Minnesota’s Capital Assets (Net of Depreciation/Amortization) Beginning Ending Balance Increase Decrease Balance Governmental activities: Capital assets not being depreciated: Land $19,914,318 $1,600 $ - $19,915,918 Permanent easements 2,616,723 210,025 - 2,826,748 Construction in progress 476,476 285,423 184,756 577,143 Total capital assets not being depreciated 23,007,517 497,048 184,756 23,319,809 Capital assets being depreciated/amortized: Buildings and structures 24,812,815 58,882 18,713 24,852,984 Temporary easements 4,762,253 - 1,325,383 3,436,870 Right to use leased assets -243,263 -243,263 Machinery and equipment 9,719,312 628,163 419,867 9,927,608 Other improvements 12,492,365 218,462 128,090 12,582,737 Infrastructure 124,223,467 1,300,854 37,440 125,486,881 Total capital assets being depreciated/amortized 176,010,212 2,449,624 1,929,493 176,530,343 Less accumulated depreciation/amortization for: Buildings and structures 10,703,315 619,930 8,424 11,314,821 Temporary easements 4,101,378 660,875 1,325,383 3,436,870 Right to use leased assets -22,765 -22,765 Machinery and equipment 6,268,333 498,566 275,652 6,491,247 Other improvements 5,198,919 486,531 128,090 5,557,360 Infrastructure 97,971,838 2,862,317 37,440 100,796,715 Total accumulated depreciation/amortization 124,243,783 5,150,984 1,774,989 127,619,778 Governmental activities capital assets - net $74,773,946 ($2,204,312) $339,260 $72,230,374 Beginning Ending Balance Increase Decrease Balance Business-type activities: Capital assets not being depreciated: Land $2,109,835 $6,500 $ - $2,116,335 Permanent easements 7,248,009 1,951,695 2,111,500 7,088,204 Construction in progress 4,789,458 1,030,365 336,157 5,483,666 Total capital assets not being depreciated 14,147,302 2,988,560 2,447,657 14,688,205 Capital assets being depreciated/amortized: Buildings and structures 28,077,578 - - 28,077,578 Right to use leased assets -28,852 -28,852 Machinery and equipment 2,064,807 167,768 113,376 2,119,199 Other improvements 121,882,059 1,906,107 2,741 123,785,425 Total capital assets being depreciated/amortized 152,024,444 2,102,727 116,117 154,011,054 Less accumulated depreciation/amortization for: Buildings and structures 4,422,417 561,610 -4,984,027 Right to use leased assets -3,006 -3,006 Machinery and equipment 1,259,127 140,373 67,790 1,331,710 Other improvements 78,813,376 3,038,624 2,743 81,849,257 Total accumulated depreciation/amortization 84,494,920 3,743,613 70,533 88,168,000 Business-type activities capital assets - net 81,676,826 1,347,674 2,493,241 80,531,259 Total capital assets - net $156,450,772 ($856,638) $2,832,501 $152,761,633 Additional information on the City’s capital assets can be found in Note 6. 33 46 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 Governmental Activities Capital Assets. There was a decrease in capital assets due to the reduction in depreciable assets since current year depreciation expense exceeded current year additions. Business-Type Activities Capital Assets. There was a decrease in capital assets mainly due to the removal of vacated drainage and utility easements. Long-term liabilities. At the end of the current fiscal year, the City had total bonds payable outstanding of $27,660,755, a decrease of $2,564,616 from 2021. The balance of the bonds payable outstanding is comprised of $3,400,000 in general obligation bonds, $23,120,000 of revenue bonds which financed capital investments for the water, sewer, and surface water management operations, and unamortized bond premiums of $1,140,755. Additional long-term liabilities in the amount of $690,037 for project financing and $1,079,561 for compensated absences were also outstanding at the end of 2022. City of Chanhassen, Minnesota’s Outstanding Liabilities 2022 2021 2022 2021 2022 2021 General obligation bonds $3,400,000 $3,770,000 $ - $ - $3,400,000 $3,770,000 Revenue bonds - - 23,120,000 25,180,000 23,120,000 25,180,000 Unamortized bond premiums 127,878 143,863 1,012,877 1,131,508 1,140,755 1,275,371 Project financing 690,037 835,037 - - 690,037 835,037 Compensated absences 762,762 747,455 316,799 182,346 1,079,561 929,801 Total $4,980,677 $5,496,355 $24,449,676 $26,493,854 $29,430,353 $31,990,209 TotalsBusiness-Type ActivitiesGovernmental Activities As the financial statements will indicate, the City maintained strong financial reserves and continues its practice of utilizing multiple long-term financial planning documents. The City of Chanhassen is one of approximately 25 communities in the State of Minnesota to have an AAA bond rating from Standard & Poor’s. State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of the total estimated market value. The current debt limitation for the City is $151,246,689. Of the City's outstanding debt, $3,527,878 is applicable to the statutory limitation. Additional information on the City’s long-term liabilities can be found in Note 7. 34 47 CITY OF CHANHASSEN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2022 Requests for Information. This financial report is designed to provide a general overview of the City of Chanhassen, Minnesota’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 7700 Market Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317. 35 48 - This page intentionally left blank - 36 49 BASIC FINANCIAL STATEMENTS 37 50 - This page intentionally left blank - 38 51 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2022 With Comparative Totals For December 31, 2021 Governmental Business-Type Activities Activities 2022 2021 Assets: $22,550,857 $12,097,745 $34,648,602 $38,322,734 109,932 73,972 183,904 90,980 1,857,516 94,055 1,951,571 2,270,248 716,902 1,820,359 2,537,261 2,142,092 131,087 -131,087 217,155 91,340 15,400 106,740 83,180 -223,993 223,993 356,330 194,356 (194,356) - - 3,656,943 -3,656,943 3,704,663 2,309,797 14,449 2,324,246 1,969,604 Cash and investments Accrued interest receivable Due from other governmental units Accounts receivable - net Property taxes receivable Prepaid items Inventories - at cost Internal balances Leases receivable Special assessments receivable Capital assets (net of accumulated depreciation/amortization) Nondepreciable 23,319,809 14,688,205 38,008,014 37,154,819 Depreciable 48,910,565 65,843,054 114,753,619 119,295,953 Total assets 103,849,104 94,676,876 198,525,980 205,607,758 Deferred outflows of resources: Related to other post-employment benefits 1,940 393 2,333 20,930 Related to pensions 3,061,196 743,917 3,805,113 2,940,228 Total deferred outflows of resources 3,063,136 744,310 3,807,446 2,961,158 Liabilities: Accounts payable 1,082,281 158,596 1,240,877 1,368,908 Due to other governmental units 204,536 93,232 297,768 222,011 Salaries payable 135,175 43,757 178,932 160,832 Contracts payable 806,197 229,770 1,035,967 2,066,462 Escrow deposits payable 2,541,506 -2,541,506 2,857,935 Accrued interest payable 31,583 297,138 328,721 357,755 Unearned revenue 2,790,535 1,650 2,792,185 1,547,561 Lease liability - due within one year 52,702 6,348 59,050 - Lease liability - due in more than one year 169,059 19,788 188,847 - Compensated absences payable - due within one year 170,890 70,977 241,867 113,252 Compensated absences payable - due in more than one year 591,872 245,822 837,694 816,549 Other post-employment benefits payable - due in more than one year 140,351 28,361 168,712 179,490 Project financing - due within one year 241,310 -241,310 145,000 Project financing - due in more than one year 448,727 -448,727 690,037 Bonds payable - due within one year 385,000 1,845,000 2,230,000 2,430,000 Bonds payable - due in more than one year 3,142,878 22,287,877 25,430,755 27,795,371 Net pension liability - due in more than one year 6,115,958 2,174,019 8,289,977 3,989,626 Total liabilities 19,050,560 27,502,335 46,552,895 44,740,789 Deferred inflows of resources: Related to leases 3,656,943 -3,656,943 3,704,663 Related to other post-employment benefits 55,481 11,211 66,692 70,184 Related to pensions 395,946 32,474 428,420 3,726,586 Total deferred inflows of resources 4,108,370 43,685 4,152,055 7,501,433 Net position: Net investment in capital assets 68,702,496 56,585,833 125,288,329 126,929,970 Restricted for: Debt service 618,646 -618,646 594,203 Park improvements 422,568 -422,568 321,161 Tax increment 24,580 - 24,580 12,970 Public safety 26,182 - 26,182 48,389 Communications 43,837 - 43,837 43,837 Unrestricted 13,915,001 11,289,333 25,204,334 28,376,164 Total net position $83,753,310 $67,875,166 $151,628,476 $156,326,694 Totals The accompanying notes are an integral part of these financial statements. 39 52 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2022 With Comparative Totals For The Year Ended December 31, 2021 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $3,537,796 $2,519,478 Public safety 4,396,715 1,555,525 Public works 11,350,075 210,555 Parks and recreation 3,432,625 648,730 Community development 850,151 33,385 Interest and fees on long-term debt 71,680 - Total governmental activities 23,639,042 4,967,673 Business-type activities: Water 7,301,583 4,485,402 Sewer 6,548,611 3,699,835 Surface water management 4,489,250 1,564,000 Total business-type activities 18,339,444 9,749,237 Total primary government $41,978,486 $14,716,910 The accompanying notes are an integral part of these financial statements. 40 53 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities 2022 2021 $129,319 $ - ($888,999) $ - ($888,999) ($1,109,562) 553,329 - (2,287,861) - (2,287,861) (1,460,093) 1,849,512 3,881,530 (5,408,478) - (5,408,478) (6,610,381) 20,035 - (2,763,860) - (2,763,860) (2,342,938) - - (816,766) - (816,766) (798,086) - - (71,680) - (71,680) (72,195) 2,552,195 3,881,530 (12,237,644) 0 (12,237,644) (12,393,255) 1,880 1,348,297 - (1,466,004) (1,466,004) 2,710,120 - 1,702,549 - (1,146,227) (1,146,227) 980,173 45,970 1,039,938 - (1,839,342) (1,839,342) 1,361,444 47,850 4,090,784 0 (4,451,573) (4,451,573) 5,051,737 $2,600,045 $7,972,314 (12,237,644) (4,451,573) (16,689,217) (7,341,518) General revenues: General property taxes 12,644,286 - 12,644,286 12,075,260 Tax increment collections 279,283 - 279,283 279,653 Grants and contributions not restricted to specific programs 170,656 - 170,656 311 Unrestricted investment earnings (loss) (824,062) (434,818) (1,258,880) (100,935) Gain on sale of capital assets 155,654 - 155,654 84,387 Transfers (334,918) 334,918 - - Total general revenues and transfers 12,090,899 (99,900) 11,990,999 12,338,676 Change in net position (146,745) (4,551,473) (4,698,218) 4,997,158 Net position - January 1 83,900,055 72,426,639 156,326,694 151,329,536 Net position - December 31 $83,753,310 $67,875,166 $151,628,476 $156,326,694 Program Revenues Net (Expense) Revenue and Changes in Net Position Totals The accompanying notes are an integral part of these financial statements. 41 54 CITY OF CHANHASSEN, MINNESOTA BALANCE SHEET Statement 3 GOVERNMENTAL FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 601 PMP 605 TH101 Pavement Improvements - Other Management Pioneer to Governmental General Fund 212 Grant Fund Capital Flying Cloud Funds Assets:2022 2021 Cash and investments $11,101,672 $2,639,818 $3,237,348 $47,077 $5,524,942 $22,550,857 $21,285,717 Accrued interest receivable 57,847 14,579 8,590 115 28,801 109,932 52,352 Due from other governmental units 165,367 - 1,450,458 241,691 - 1,857,516 2,256,079 Due from other funds - - - - - - 7,425 Accounts receivable - net 56,851 - 471,624 - 188,427 716,902 643,508 Property taxes receivable 117,279 - 5,036 - 8,772 131,087 217,155 Prepaid items 91,340 - - - - 91,340 70,643 Interfund loan receivable 25,000 - - - 194,356 219,356 383,971 Leases receivable 3,656,943 - - - - 3,656,943 3,704,663 Special assessments receivable 1,281 - 1,989,300 - 319,216 2,309,797 1,949,656 Total assets $15,273,580 $2,654,397 $7,162,356 $288,883 $6,264,514 $31,643,730 $30,571,169 Liabilities: Accounts payable $291,813 $ - $185,710 $46,726 $558,032 $1,082,281 $1,229,075 Due to other governmental units 164,362 - 29,495 - 10,679 204,536 153,860 Escrow deposits payable 2,541,506 - - - - 2,541,506 2,857,935 Due to other funds - - - - - - 7,425 Salaries payable 133,147 - - - 2,028 135,175 134,987 Contracts payable - - 641,472 164,725 - 806,197 2,029,835 Interfund loan payable - - - - 25,000 25,000 - Unearned revenue 66,244 2,723,849 442 - - 2,790,535 1,545,811 Total liabilities 3,197,072 2,723,849 857,119 211,451 595,739 7,585,230 7,958,928 Deferred inflows of resources: Unavailable revenue 47,334 - 1,985,558 - 319,216 2,352,108 2,063,519 Related to leases 3,656,943 - - - - 3,656,943 3,704,663 Total deferred inflows of resources 3,704,277 - 1,985,558 - 319,216 6,009,051 5,768,182 Fund balance: Nonspendable 91,340 - - - - 91,340 70,643 Restricted - - - - 1,167,396 1,167,396 1,056,768 Assigned 657,000 - 4,319,679 77,432 4,206,866 9,260,977 7,819,511 Unassigned 7,623,891 (69,452) - - (24,703) 7,529,736 7,897,137 Total fund balance 8,372,231 (69,452) 4,319,679 77,432 5,349,559 18,049,449 16,844,059 Total liabilities, deferred inflows of resources, and fund balance $15,273,580 $2,654,397 $7,162,356 $288,883 $6,264,514 $31,643,730 $30,571,169 Fund balance reported above $18,049,449 $16,844,059 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.72,230,374 74,773,946 Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailabe revenue in the funds.2,352,108 2,063,519 Long-term liabilities, including related deferred outflows and inflows of resources, are not due and payable in the current period and, therefore, are not reported in the funds (see Note 1V). (8,878,621) (9,781,469) Net position of governmental activities (Statement 1)$83,753,310 $83,900,055 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 42 55 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND Statement 4 CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For The Year Ended December 31, 2022 With Comparative Totals For The Year Ended December 31, 2021 601 PMP 605 TH101 Pavement Improvements - Other Management Pioneer to Governmental General Fund 212 Grant Fund Capital Flying Cloud Funds Revenues:2022 2021 General property taxes $10,245,765 $ - $900,000 $ - $1,568,330 $12,714,095 $12,046,658 Tax increment collections - - - - 279,283 279,283 279,653 Licenses and permits 1,556,723 - - - 127,855 1,684,578 2,608,294 Intergovernmental 496,037 260,000 1,604,033 1,338,452 - 3,698,522 6,883,846 Franchise fees - - 1,880,520 - 155,950 2,036,470 2,019,812 Special assessments - - 1,098,027 - - 1,098,027 987,431 Charges for services 686,462 - - - 7,450 693,912 535,608 Fines and forfeits 69,173 - - - - 69,173 78,673 Investment earnings (loss) (401,261) (69,452) (144,794) (7,334) (201,221) (824,062) (22,856) Contributions and donations 20,785 - - - 57,471 78,256 84,736 Refunds and reimbursements 79,355 - 12,500 - 11,193 103,048 84,915 Other 378,092 - - - 2,400 380,492 275,432 Total revenues 13,131,131 190,548 5,350,286 1,331,118 2,008,711 22,011,794 25,862,202 Expenditures: Current: General government 2,839,873 100,000 - - 321,557 3,261,430 3,452,273 Public safety 4,344,716 - - - 190,867 4,535,583 3,858,508 Public works 2,373,389 - 3,778,452 1,309,404 390,519 7,851,764 3,207,828 Parks and recreation 2,446,503 - - - 2,065 2,448,568 2,247,485 Community development 595,052 - - - 269,525 864,577 886,104 Capital outlay: General government 58,882 - - - 33,170 92,052 - Public safety - - - - 214,019 214,019 - Public works - - 597,687 29,048 339,321 966,056 9,195,898 Parks and recreation - - - - 340,984 340,984 1,183,802 Debt service: Principal - - 145,000 - 391,502 536,502 360,000 Interest and paying agent fees - - - - 92,290 92,290 92,680 Total expenditures 12,658,415 100,000 4,521,139 1,338,452 2,585,819 21,203,825 24,484,578 Revenues over (under) expenditures 472,716 90,548 829,147 (7,334) (577,108) 807,969 1,377,624 Other financing sources (uses): Sale of capital assets - - - - 154,158 154,158 84,983 Issuance of leases - - - - 243,263 243,263 - Project financing issued - - - - - - 288,929 Transfers in 160,000 - 232,375 - 250,000 642,375 - Transfers out (250,000) (160,000) - - (232,375) (642,375) (185,794) Total other financing sources (uses) (90,000) (160,000) 232,375 - 415,046 397,421 188,118 Net change in fund balance 382,716 (69,452) 1,061,522 (7,334) (162,062) 1,205,390 1,565,742 Fund balance - January 1 7,989,515 - 3,258,157 84,766 5,511,621 16,844,059 15,278,317 Fund balance - December 31 $8,372,231 ($69,452) $4,319,679 $77,432 $5,349,559 $18,049,449 $16,844,059 Total Governmental Funds The accompanying notes are an integral part of these financial statements. 43 56 CITY OF CHANHASSEN, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2022 With Comparative Totals For The Year Ended December 31, 2021 2022 2021 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances - total governmental funds (Statement 4) $1,205,390 $1,565,742 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Capital outlay 1,613,111 1,723,700 Depreciation expense (5,150,984) (6,637,170) The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase (decrease) net position. Developer contributed infrastructure 1,327,723 2,219,378 Transfer of capital assets to Enterprise Funds (334,918) - Gain (loss) on disposal/trade-ins of capital assets 1,496 (596) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Change in delinquent property taxes (69,809) 28,602 Change in deferred and delinquent special assessments 358,398 544,735 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effects of bond premiums when the debt is first issued, whereas amounts are deferred and amortized over the life of the debt in the statement of activities. Issuance of leases (243,263) - Project financing issued - (288,929) Repayment of principal 536,502 360,000 Amortization of bond premiums 15,985 15,985 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Expenses reported in the statement of activities include the effects of the changes in these expense accruals as follows: Change in compensated absences payable (15,307) (65,174) Change in other post employment benefits payable (22,876) (1,405) Change in accrued interest payable 4,625 4,500 Governmental funds report pension contributions as expenditures, however, pension expense is reported in the statement of activities. This is the amount by which pension expense differed from pension contributions. 627,182 368,338 Change in net position of governmental activities (Statement 2) ($146,745) ($162,294) The accompanying notes are an integral part of these financial statements. 44 57 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF NET POSITION Statement 6 PROPRIETARY FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 Water Sewer Surface Water Management 2022 2021 Assets: Current assets: Cash and cash equivalents $5,616,217 $5,632,332 $849,196 $12,097,745 $17,037,017 Accrued interest receivable 33,484 30,447 10,041 73,972 38,628 Due from other governmental units 1,494 50,518 42,043 94,055 14,169 Accounts receivable - net 750,645 736,219 333,495 1,820,359 1,498,584 Prepaid items 6,811 5,293 3,296 15,400 12,537 Water meter inventory 223,993 - - 223,993 356,330 Special assessments receivable 14,449 - - 14,449 19,948 Total current assets 6,647,093 6,454,809 1,238,071 14,339,973 18,977,213 Noncurrent assets: Capital assets: Nondepreciable 7,000,831 3,551,497 4,135,877 14,688,205 14,147,302 Depreciable 83,204,219 37,832,757 32,974,078 154,011,054 152,024,444 Total capital assets 90,205,050 41,384,254 37,109,955 168,699,259 166,171,746 Less: Allowance for depreciation/amortization (39,405,769) (28,225,882) (20,536,349) (88,168,000) (84,494,920) Net capital assets 50,799,281 13,158,372 16,573,606 80,531,259 81,676,826 Total assets 57,446,374 19,613,181 17,811,677 94,871,232 100,654,039 Deferred outflows of resources: Related to other post-employment benefits 171 131 91 393 5,282 Related to pensions 261,558 207,748 274,611 743,917 511,349 Total deferred outflows of resources 261,729 207,879 274,702 744,310 516,631 Liabilities: Current liabilities: Accounts payable 75,358 34,165 49,073 158,596 139,833 Due to other governmental units 5,700 57,275 30,257 93,232 68,151 Salaries payable 16,221 11,112 16,424 43,757 25,845 Contracts payable 55,752 7,418 166,600 229,770 36,627 Accrued interest payable 268,785 16,582 11,771 297,138 321,547 Unearned revenue - - 1,650 1,650 1,750 Interfund loan payable - due within one year 194,356 - - 194,356 193,970 Lease liability - due within one year 3,174 3,174 - 6,348 - Compensated absences payable - due within one year 25,675 20,406 24,896 70,977 22,210 Bonds payable - due within one year 1,502,500 227,500 115,000 1,845,000 2,060,000 Total current liabilities 2,147,521 377,632 415,671 2,940,824 2,869,933 Noncurrent liabilities: Interfund loan payable - - - - 190,001 Lease liability 9,894 9,894 - 19,788 - Compensated absences payable 88,924 70,674 86,224 245,822 160,136 Other post employment benefits 12,363 9,453 6,545 28,361 45,298 Bonds payable 19,930,750 1,360,572 996,555 22,287,877 24,251,508 Net pension liability 764,376 607,121 802,522 2,174,019 579,691 Total noncurrent liabilities 20,806,307 2,057,714 1,891,846 24,755,867 25,226,634 Total liabilities 22,953,828 2,435,346 2,307,517 27,696,691 28,096,567 Deferred inflows of resources: Related to other post-employment benefits 4,887 3,737 2,587 11,211 17,712 Related to pensions 11,418 9,069 11,987 32,474 629,752 16,305 12,806 14,574 43,685 647,464 Net position: Net investment in capital assets 29,720,081 11,570,300 15,295,452 56,585,833 56,069,887 Unrestricted 5,017,889 5,802,608 468,836 11,289,333 16,356,752 Total net position $34,737,970 $17,372,908 $15,764,288 $67,875,166 $72,426,639 Totals The accompanying notes are an integral part of these financial statements. 45 58 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND Statement 7 CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2022 With Comparative Totals For The Year Ended December 31, 2021 Water Sewer Surface Water Management 2022 2021 Operating revenues: Charges for services $4,329,116 $3,629,771 $1,535,661 $9,494,548 $9,058,022 Penalties and other 121,531 60,969 26,071 208,571 236,322 Intergovernmental 1,880 - 45,970 47,850 38,380 Total operating revenues 4,452,527 3,690,740 1,607,702 9,750,969 9,332,724 Operating expenses: Personal services 1,102,319 753,585 1,133,561 2,989,465 1,631,853 Pension expense related to GASB 68 217,980 161,553 384,949 764,482 (1,761) Materials and supplies 491,615 97,910 47,073 636,598 449,270 Contractual services: MCES - 2,616,768 - 2,616,768 2,476,920 Other 1,418,690 1,074,695 1,121,995 3,615,380 1,485,761 Repairs and maintenance 905,657 217,146 153,808 1,276,611 2,329,051 Depreciation/amortization 1,908,914 908,359 926,340 3,743,613 3,771,283 Total operating expenses 6,045,175 5,830,016 3,767,726 15,642,917 12,142,377 Operating income (loss)(1,592,648) (2,139,276) (2,160,024) (5,891,948) (2,809,653) Nonoperating revenues (expenses): Investment earnings (loss)(141,213) (237,939) (55,666) (434,818) (78,079) Refunds and reimbursements 34,755 9,095 2,268 46,118 18,292 Interest and fiscal charges (564,141) (26,539) (17,760) (608,440) (670,221) Gain (loss) on disposal of capital assets (692,267) (692,056) (703,764) (2,088,087) - Total nonoperating revenues (expenses) (1,362,866) (947,439) (774,922) (3,085,227) (730,008) Income before contributions and transfers (2,955,514) (3,086,715) (2,934,946) (8,977,175) (3,539,661) Contributions and transfers: Transfers in - - - - 185,794 Capital contributions: Contributions of capital assets 1,013,940 1,422,182 1,092,025 3,528,147 5,697,073 Intergovernmental - 50,000 37,745 87,745 - Special assessments 1,174 - - 1,174 6,024 Connection charges 409,646 263,417 135,573 808,636 2,810,222 Total contributions and transfers 1,424,760 1,735,599 1,265,343 4,425,702 8,699,113 Change in net position (1,530,754) (1,351,116) (1,669,603) (4,551,473) 5,159,452 Net position - January 1 36,268,724 18,724,024 17,433,891 72,426,639 67,267,187 Net position - December 31 $34,737,970 $17,372,908 $15,764,288 $67,875,166 $72,426,639 Capital Transfers - Contributions Net Amounts reported above $4,425,702 $ - Amounts reported for business-type activities in the statement of activities are different because: Transfer in of capital assets from governmental activities (334,918) 334,918 Amounts reported on the statement of activities $4,090,784 $334,918 Totals The accompanying notes are an integral part of these financial statements. 46 59 CITY OF CHANHASSEN, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS For The Year Ended December 31, 2022 With Comparative Totals For The Year Ended December 31, 2021 Water Sewer Surface Water Management 2022 2021 Cash flows from operating activities: Receipts from customers and users $4,284,680 $3,529,807 $1,534,721 $9,349,208 $9,495,192 Payment to suppliers (2,674,060) (3,999,241) (1,254,283) (7,927,584) (6,966,389) Payment to employees (1,073,661) (733,106) (1,066,794) (2,873,561) (1,753,171) Miscellaneous revenue 34,755 9,095 2,268 46,118 18,292 Net cash flows provided by (used for) operating activities 571,714 (1,193,445) (784,088) (1,405,819) 793,924 Cash flows from noncapital financing activities: Transfers in - - - - 185,794 Interfund loan payable - (payments) (189,615) - - (189,615) (193,593) Net cash flows used by (used for) noncapital financing activities (189,615) 0 0 (189,615) (7,799) Cash flows from capital and related financing activities: Acquisition of capital assets (130,050) (81,434) (751,050) (962,534) (2,257,071) Connection charges 409,646 263,417 135,573 808,636 2,810,222 Intergovernmental revenue - 50,000 37,745 87,745 - Special assessment collections 6,673 - - 6,673 15,436 Principal paid on bonds (1,820,000) (125,000) (115,000) (2,060,000) (2,105,000) Principal paid on leases (1,358) (1,358) - (2,716) - Interest and fiscal charges (679,311) (42,035) (30,134) (751,480) (857,728) Net cash flows used by capital and related financing activities (2,214,400) 63,590 (722,866) (2,873,676) (2,394,141) Cash flows from investing activities: Investment earnings (158,544) (251,185) (60,433) (470,162) (41,893) Net increase (decrease) in cash and cash equivalents (1,990,845) (1,381,040) (1,567,387) (4,939,272) (1,649,909) Cash and cash equivalents - January 1 7,607,062 7,013,372 2,416,583 17,037,017 18,686,926 Cash and cash equivalents - December 31 $5,616,217 $5,632,332 $849,196 $12,097,745 $17,037,017 Reconciliation of operating loss to net cash provided (used) by operating activities: Operating loss ($1,592,648) ($2,139,276) ($2,160,024) ($5,891,948) ($2,809,653) Adjustments to reconcile operating loss to net cash flows from operating activities: Miscellaneous revenue 34,755 9,095 2,268 46,118 18,292 Depreciation/amortization 1,908,914 908,359 926,340 3,743,613 3,771,283 Changes in assets and liabilities, deferred outflows and inflows: Decrease (increase) in receivables (167,847) (160,933) (72,881) (401,661) 160,718 Decrease (increase) in prepaid items (1,402) (1,270) (191) (2,863) 43,110 Decrease (increase) in inventory 132,337 - - 132,337 (261,881) Decrease (increase) in deferred outflows of resources (30,991) (32,975) (163,713) (227,679) (440,041) Increase (decrease) in payables 10,967 8,548 68,784 88,299 (19,780) Increase (decrease) in unearned revenue - - (100) (100) 575 Increase (decrease) in other post employment benefits (7,415) (6,922) (2,600) (16,937) 2,996 Increase (decrease) in compensated absences payable 36,785 28,287 69,381 134,453 (22,687) Increase (decrease) in net pension liability 519,154 400,228 674,946 1,594,328 (253,623) Increase (decrease) in deferred inflows of resources (270,895) (206,586) (126,298) (603,779) 604,615 Total adjustments 2,164,362 945,831 1,375,936 4,486,129 3,603,577 Net cash flows provided by (used in) operating activities $571,714 ($1,193,445) ($784,088) ($1,405,819) $793,924 Noncash investing, capital and financing activities: Contributions of capital assets $1,013,940 $1,422,182 $1,092,025 $3,528,147 $5,697,073 Capital assets acquired via lease $14,426 $14,426 $0 $28,852 $0 Totals The accompanying notes are an integral part of these financial statements. 47 60 - This page intentionally left blank - 48 61 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Chanhassen (the City) was incorporated in 1967 and operates under the State of Minnesota Statutory Plan B form of government. The governing body consists of a five-member City council elected by voters of the City. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. A. FINANCIAL REPORTING ENTITY In accordance with GASB pronouncements and accounting principles generally accepted in the United States of America, the financial statements of the reporting entity should include those of the City (the primary government) and its component units. The component unit discussed below is included in the City’s reporting entity because of the significance of its operational or financial relationships with the City. COMPONENT UNITS The City has one component unit, the Economic Development Authority (EDA). The financial statements of the EDA are included as a blended component unit because its governing body is substantively the same as the City Council, the City is in a relationship of financial burden with the EDA, and because management of the City have operational responsibilities for the EDA. Separate financial statements for the EDA are not prepared. JOINTLY GOVERNED ORGANIZATIONS Southwest Transit Commission. The City, in conjunction with the Cities of Eden Prairie and Chaska, established the Southwest Transit Commission (the Commission). The purpose of the Commission is to provide public transit service for the three cities. The Commission’s board is composed of two commissioners from each of the cities. JOINT POWERS AGREEMENT Pursuant to a joint powers agreement dated April 14, 1994, the City and Independent School District No. 112 (ISD No. 112) jointly constructed the Chanhassen Recreation Center and Bluff Creek Elementary. The City entered into a revised joint powers agreement with ISD No. 112 in 2022 to provide for the mutual long-term use of the facility. According to the terms of the agreement, which expires in 2093, the City reimburses ISD No. 112 24% of the cost to operate and maintain the facility. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. 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. 49 62 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 The statement of activities demonstrates the degree to which the direct expenses of a given function or business-type activity, are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. 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 business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business-type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial 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 City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Grant Fund (212) accounts for the revenues and expenditures related to federal and state financial assistance programs. The PMP Pavement Management Capital (601) fund accounts for the City’s street reconstruction and other significant street maintenance projects. Individual property owners pay a portion of the cost of the annual project with assessments and the City funds its portion with the reserves created in this fund, an annual tax levy, and franchise fees. The TH101 Improvements – Pioneer to Flying Cloud (605) fund accounts for the funding sources and costs of the Trunk Highway 101 improvement project, which includes widening of the highway between Pioneer Trail and Flying Cloud Drive, sanitary sewer and water extension, storm sewer improvements, pedestrian/bicycle trails, and a pedestrian bridge. The City reports the following major proprietary funds: The Water Fund accounts for the water service charges which are used to finance the water system operating expenses. The Sewer Fund accounts for the sewer service charges which are used to finance the sanitary sewer system operating expenses. The Surface Water Management Fund accounts for the surface water charges which are used to finance the surface water system operating expenses. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The government-wide financial 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. 50 63 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 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 all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal 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, special assessments, intergovernmental revenues, charges for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal 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. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures, or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 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 water, sewer, and surface water management 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 definition are reported as nonoperating revenues and expenses. D. BUDGETS Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund and for the Contribution, Cemetery, and CATV Special Revenue Funds. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year-end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to facilitate effective cash management. 51 64 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution. 4. Management may authorize transfer of budgeted amounts between departments within any fund. All budget amendments between funds must be approved by the City Council. The legal level of budgetary control is at the fund level. Budgetary monitoring, by departments or divisions and by category, is required by City policy. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund and for the Contribution, Cemetery, and CATV Special Revenue Funds. Formal budgetary integration is not employed for Debt Service Funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. Budgetary control for Capital Projects Funds is accomplished through the use of project controls. The following is a listing of funds whose expenditures exceeded budgeted appropriations: Budgeted Actual Expenditures in Expenditures Expenditures Excess of Budget Contribution Special Revenue Fund $50,000 $77,956 ($27,956) Revenues in excess of budget and fund balance were used to cover the expenditures in excess of budget. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Investments are stated at fair value. Investment income is allocated monthly to individual funds on the basis of the fund’s average cash balance. For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. G. RECEIVABLES Property taxes and special assessment receivables have been reported net of estimated uncollectible accounts (See Note 1 H and I). Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. 52 65 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Leases receivable are measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is reported in relation to leases receivable. The deferred inflow of resources is recorded at the commencement of the lease in an amount equal to the initial measurement of the lease receivable and is recognized as revenue over the lease term. H. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the county in December of each year for collection in the following year. The county is responsible for billing and collecting all property taxes for itself, the City, the local school district, and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the county and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The county possesses this authority. For government-wide financial statements, the City recognizes property tax revenue in the period for which taxes were levied. Uncollectible property taxes are not material and have not been reported. For government fund financial statements, the City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes received by the City in July, December, and January are recognized as revenue for the current year. Taxes collected by the county by December 31 (remitted to the City the following January) are classified as due from county taxes receivable. Taxes not collected by the county by December 31 are classified as delinquent. The portion of delinquent taxes not collected by the City in January are fully offset by deferred inflows of resources because they are not available to finance current expenditures. The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per Minnesota State Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth since 1971. I. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with state statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. 53 66 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments become delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties, and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to Minnesota state statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. For government-wide financial statements, the City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. For government fund financial statements, revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the county and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred inflows of resources. J. INVENTORIES The original cost of materials and supplies are recorded as expenditures at the time of purchase for governmental funds. These funds do not maintain material amounts of inventories. Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first-in, first- out (FIFO) method. K. PREPAID ITEMS Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, trails, sidewalks, and similar items), right to use leased assets, and intangible assets such as easements and computer software, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000 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 67 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Capital assets are depreciated/amortized using the straight-line method over the following estimated useful lives: Buildings and structures 20 – 50 years Machinery and equipment (including software) 3 – 30 years Drainage systems 30 years Water and sewer lines 30 years Streets 25 – 50 years Trails 15 years Sidewalks 25 years Other improvements 7 – 40 years Temporary easements 2 years M. COMPENSATED ABSENCES The City compensates all employees upon termination for unused vacation, sick, and PTO hours up to a maximum based upon length of service. The City compensates nonexempt employees for unused comp time. All vacation, PTO, and comp time is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits that is vested as severance pay. N. 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. Bond premiums and discounts, if material, are amortized over the life of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts 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. O. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to future periods and so it will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports deferred outflows of resources related to other post-employment benefits and pensions in the government-wide Statement of Net Position and the Statement of Net Position for the proprietary funds. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to future periods, and therefore, it will not be recognized as an inflow of resources (revenue) until that time. The City reports deferred inflows of resources related to other post-employment benefits and pensions in the government-wide Statement of Net Position and the Statement of Net Position for the proprietary funds, and reports deferred inflows of resources related to leases in the government-wide Statement of Net 55 68 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Position and the Balance Sheet for the governmental funds. The City also has an item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the Balance Sheet for the governmental funds. The governmental funds report unavailable revenues from the following sources: property taxes, special assessments, and other revenue not collected within 60 days from year-end. P.FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors, or contributors; or constraints imposed by state statutory provisions. Committed - consists of internally imposed constraints. These constraints are established by Resolution of City Council, and committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by resolution. Assigned - consists of internally imposed constraints for the specific purpose of the City’s intended use. Pursuant to the City’s Fund Balance Policy, the City Manager or Finance Director are authorized to assign fund balance that reflects the City’s intended use of those funds. Unassigned - is the residual classification for the General Fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. The exception to this is the Park Acquisition and Development Fund (410), where it is the City’s policy to use resources in the following order: 1) assigned, 2) committed, and 3) restricted. Q.INTERFUND TRANSACTIONS During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Interfund services provided and used are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund. Short-term interfund loans are classified as “due to/from other funds.” Long- term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” All other interfund transactions are reported as transfers. 56 69 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 R. USE OF ESTIMATES The preparation of financial statements in accordance with GAAP requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. S. COMPARATIVE TOTALS The basic financial statements, required supplementary information, and combining and individual fund financial statements and schedules include certain prior-year summarized comparative information in total but not at the level of detail required for a presentation in conformity with GAAP. Accordingly, such information should be read in conjunction with the government’s financial statements for the year ended December 31, 2021, from which the summarized information was derived. T. RECLASSIFICATIONS Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation. U. PENSION PLANS COST SHARING MULTIPLE – EMPLOYER PLANS For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA), and additions to and deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA, 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. SINGLE EMPLOYER PLAN For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Chanhassen Fire Department Relief Association (Relief) and additions to/deductions from the Relief’s fiduciary net position have been determined on the same basis as they were reported by the Relief. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 57 70 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 V.RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The governmental fund balance sheet includes a reconciliation between fund balances – 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 “long-term liabilities, including related deferred outflows and inflows of resources, are not due and payable in the current period and, therefore, are not reported in the funds.” The details of this ($8,878,621) difference are as follows: Bonds payable ($3,400,000) Unamortized bond premium (127,878) Project financing (690,037) Accrued interest payable (31,583) Lease liability (221,761) Compensated absences payable (762,762) Other post-employment benefits payable (140,351) Net pension liability (6,115,958) Deferred outflows of resources related to pensions 3,061,196 Deferred inflows of resources related to pensions (395,946) Deferred outflows of resources related to OPEB 1,940 Deferred inflows of resources related to OPEB (55,481) Net adjustment to decrease fund balances - total governmental funds to arrive at net pos ition - governmental activities ($8,878,621) Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council. All such banks are members of the Federal Reserve System. Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds, or collateral protect all City deposits. The City has no additional deposit policies addressing custodial credit risk. Minnesota Statutes require that all City deposits be protected by insurance, surety bonds, or collateral. The fair value of collateral pledged must equal at least 110% of deposits not covered by insurance or bonds. Securities pledged as collateral are required to be held in safekeeping by the City or in a financial institution other than that furnishing the collateral. Minnesota Statute section 118.A.03 identifies allowable forms of collateral. At December 31, 2022, the bank balance of the City’s deposits with financial institutions was $1,508,225 and the carrying amount was $1,422,594. All deposits were covered by federal depository insurance or by collateral pledged and held in the City’s name. 58 71 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 B. INVESTMENTS As of December 31, 2022, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1-5 6-10 Money market Not rated $7,255,669 $7,255,669 $ - $ - Brokered certificates of deposit Not rated 6,816,876 725,255 6,091,621 - Municipal bonds (1) 12,125,931 1,898,133 7,362,334 2,865,464 Federal National Mortgage Assn. Notes Aaa 1,399,789 - - 1,399,789 Federal Home Loan Mortgage Corp. Notes Aaa 1,394,402 - 1,394,402 - Federal Home Loan Bank Notes Aaa 2,047,352 687,897 1,359,455 - Federal Farm Credit Bank Aaa 1,460,012 975,482 484,530 - U.S. Treasuries Aaa 725,342 491,700 233,642 - Total $33,225,373 $12,034,136 $16,925,984 $4,265,253 (1) $5,921,024 are rated Aaa/AAA, $2,456,410 Total investments $33,225,373 are rated Aa1/AA+, $3,194,361 are rated Deposits 1,422,594 Aa2/AA and $554,136 are rated A1/A+Petty cash 635 Total cash and investments $34,648,602 Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year. Investment Maturities (in Years) The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly. Level 3 investments are valued using inputs that are unobservable. The City has the following recurring fair value measurements as of December 31, 2022: Investment Type 12/31/2022 Level 1 Level 2 Level 3 Investments at fair value: Brokered certificates of deposit $6,816,876 $ - $6,816,876 $ - Municipal bonds 12,125,931 - 12,125,931 - Federal National Mortgage Assn. Notes 1,399,789 - 1,399,789 - Federal Home Loan Mortgage Corp. Notes 1,394,402 - 1,394,402 - Federal Home Loan Bank Notes 2,047,352 - 2,047,352 - Federal Farm Credit Bank 1,460,012 - 1,460,012 - U.S. Treasuries 725,342 725,342 - - Total/subtotal 25,969,704 $725,342 $25,244,362 $0 Investments not categorized: Money market 7,255,669 Total $33,225,373 Fair Value Measurement Using 59 72 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 C. INVESTMENT RISKS Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s investment policy requires the City’s security broker/dealers to provide audited financial statements, proof of NASD certification, proof of state registration, and certification of having read, understood and agreement to comply with the City’s investment policy. Investments in securities are held by the City’s broker-dealer of which $500,000 per broker is insured through SIPC. Each broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealer’s accounts. Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City’s investment policy requires the City to diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The policy also states the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonable. Credit risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. State law limits investments to commercial paper to those rated in the highest quality category by at least two nationally recognized rating agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or better by a national bond rating service for general obligation and rated “AA” or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better by a national bond rating agency; mutual funds or money market funds whose investments are restricted to securities described in MS 118A.04. The City’s investment policy does not place further restrictions on investment options. Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City’s investment policy states investments shall be diversified by limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities). Investments in a single issuer exceeding 5% of the City’s overall investment portfolio are in various holdings as follows: Federal Home Loan Bank Notes 6% 60 73 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 3 RECEIVABLES Significant receivable balances not expected to be collected within one year of December 31, 2022, are as follows: Delinquent Special Property Assessments Leases Taxes Receivable Receivable Total Major Funds: General $18,964 $ - $3,469,561 $3,488,525 PMP Pavement Management Capital - 1,648,250 - 1,648,250 Water - 10,891 - 10,891 Nonmajor Funds - 319,216 - 319,216 $18,964 $1,978,357 $3,469,561 $5,466,882 Note 4 LEASES RECEIVABLE The City leases space on its water towers for cellular tower antenna sites. The leases are non-cancellable for a period of five years, with one to four renewal periods of five years each at the lessee’s option. The City considers the likelihood of these options being exercised to be greater than 50%. The agreements call for annual lease payments of $28,196 to $39,731, with increases of 2% to 3% per year. The lease receivables are measured at the present value of the future minimum lease payments expected to be received during the lease term at a discount rate of 3% which is based on the rate available to finance equipment over the same time periods. At December 31, 2022, the City recorded $3,656,943 in lease receivables and deferred inflows of resources for these arrangements. Lease-related inflows of resources (e.g. lease revenue) recognized during the year ended December 31, 2022, was $286,929. Of this amount, $91,737 was interest revenue. No other variable lease payments were received. Note 5 UNAVAILABLE REVENUE Governmental funds report deferred inflows of resources in connection with receivables of revenues that are not considered to be available to liquidate liabilities of the current period. At December 31, 2022, the various components of unavailable revenue were as follows: PMP Pavement General Management Nonmajor Fund Capital Funds Total Delinquent property taxes receivable $46,053 $ - $ - $46,053 Special assessments not yet due 1,281 1,985,558 319,216 2,306,055 Total unavailable revenue $47,334 $1,985,558 $319,216 $2,352,108 Major Funds 61 74 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 6 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2022, was as follows: Beginning Ending Balance Additions Deletions Balance Governmental activities: Capital assets not being depreciated: Land $19,914,318 $1,600 $ - $19,915,918 Permanent easements 2,616,723 210,025 - 2,826,748 Construction in progress 476,476 285,423 184,756 577,143 Total capital assets not being depreciated 23,007,517 497,048 184,756 23,319,809 Capital assets being depreciated/amortized: Buildings and structures 24,812,815 58,882 18,713 24,852,984 Temporary easements 4,762,253 - 1,325,383 3,436,870 Right to use leased assets - 243,263 - 243,263 Machinery and equipment 9,719,312 628,163 419,867 9,927,608 Other improvements 12,492,365 218,462 128,090 12,582,737 Infrastructure 124,223,467 1,300,854 37,440 125,486,881 Total capital assets being depreciated/amortized 176,010,212 2,449,624 1,929,493 176,530,343 Less accumulated depreciation/amortization for: Buildings and structures 10,703,315 619,930 8,424 11,314,821 Temporary easements 4,101,378 660,875 1,325,383 3,436,870 Right to use leased assets - 22,765 - 22,765 Machinery and equipment 6,268,333 498,566 275,652 6,491,247 Other improvements 5,198,919 486,531 128,090 5,557,360 Infrastructure 97,971,838 2,862,317 37,440 100,796,715 Total accumulated depreciation/amortization 124,243,783 5,150,984 1,774,989 127,619,778 Governmental activities capital assets - net $74,773,946 ($2,204,312) $339,260 $72,230,374 Beginning Ending Balance Additions Deletions Balance Business-type activities: Capital assets not being depreciated: Land $2,109,835 $6,500 $ - $2,116,335 Permanent easements 7,248,009 1,951,695 2,111,500 7,088,204 Construction in progress 4,789,458 1,030,365 336,157 5,483,666 Total capital assets not being depreciated 14,147,302 2,988,560 2,447,657 14,688,205 Capital assets being depreciated/amortized: Buildings and structures 28,077,578 - - 28,077,578 Right to use leased assets - 28,852 - 28,852 Machinery and equipment 2,064,807 167,768 113,376 2,119,199 Other improvements 121,882,059 1,906,107 2,741 123,785,425 Total capital assets being depreciated/amortized 152,024,444 2,102,727 116,117 154,011,054 Less accumulated depreciation/amortization for: Buildings and structures 4,422,417 561,610 - 4,984,027 Right to use leased assets - 3,006 - 3,006 Machinery and equipment 1,259,127 140,373 67,790 1,331,710 Other improvements 78,813,376 3,038,624 2,743 81,849,257 Total accumulated depreciation/amortization 84,494,920 3,743,613 70,533 88,168,000 Business-type activities capital assets - net 81,676,826 1,347,674 2,493,241 80,531,259 Total capital assets - net $156,450,772 ($856,638) $2,832,501 $152,761,633 62 75 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Depreciation/amortization expense was charged to functions/programs of the City as follows: Governmental activities: General government $298,211 Public safety 223,738 Public works 3,605,468 Parks and recreation 1,023,567 Total depreciation/amortization expense - governmental activities $5,150,984 Business-type activities: Water $1,908,914 Sewer 908,359 Surface water management 926,340 Total depreciation/amortization expense - business-type activities $3,743,613 Note 7 LONG-TERM LIABILITIES The City issues long-term debt to provide funds for the acquisition and construction of major capital facilities. The City’s long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. GOVERNMENTAL ACTIVITIES As of December 31, 2022, the governmental activities long-term liabilities of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rate Issued 12/31/2022 General Long-Term Debt: General Obligation Bonds: G.O. Bonds, Series 2016A 3/3/2016 2/1/2030 2.00% - 3.00% $4,805,000 $3,400,000 Bond premium 239,773 127,878 Total general obligation bonds 5,044,773 3,527,878 Project financing N/A 690,037 Compensated absences payable N/A 762,762 Total - governmental activities $5,044,773 $4,980,677 63 76 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 BUSINESS-TYPE ACTIVITIES As of December 31, 2022, the business-type activities long-term liabilities of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rate Issued 12/31/2022 G.O. Revenue Bonds: Water Revenue Bonds, Series 2011B 10/6/2011 2/1/2025 2.00% - 3.00% $3,720,000 $1,665,000 Water and Sewer Revenue Bonds, Series 2012A 11/15/2012 2/1/2023 1.00% - 1.55% 1,245,000 135,000 Water Revenue Bonds, Series 2016A 3/3/2016 2/1/2026 2.00% - 3.00% 1,565,000 675,000 Water Revenue Bonds, Series 2016B 12/29/2016 2/1/2042 3.50% - 4.00% 3,630,000 3,630,000 Water Revenue Bonds, Series 2017A 2/1/2017 2/1/2038 2.00% - 4.00% 10,000,000 8,990,000 Water Revenue Bonds, Series 2018A 3/15/2018 2/1/2030 3.00% - 4.00% 3,595,000 2,530,000 Water, Sewer, and Surface Water Revenue Bonds, Series 2020A 4/2/2020 2/1/2031 2.00% - 3.00% 6,220,000 5,495,000 Bond premium 1,626,772 1,012,877 Total G.O. revenue bonds 31,601,772 24,132,877 Compensated absences payable N/A 316,799 Total - business-type activities $31,601,772 $24,449,676 GOVERNMENTAL ACTIVITIES Annual debt service requirements to maturity for the governmental activities long-term liabilities are as follows: Year Ending December 31, Principal Interest 2023 $385,000 $70,025 2024 395,000 58,325 2025 410,000 48,300 2026 420,000 40,000 2027 430,000 31,500 2028 440,000 22,800 2029 455,000 13,850 2030 465,000 4,650 Total $3,400,000 $289,450 General Obligation Bonds It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 64 77 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 BUSINESS-TYPE ACTIVITIES Annual debt service requirements to maturity for the business-type long-term debt are as follows: Year Ending G.O. Revenue Bonds December 31, Principal Interest 2023 $1,845,000 $685,634 2024 1,755,000 631,013 2025 1,810,000 576,763 2026 1,275,000 530,538 2027 1,550,000 488,188 2028 1,600,000 440,938 2029 1,650,000 395,563 2030 1,690,000 352,263 2031 1,150,000 315,488 2032 690,000 290,288 2033 715,000 269,213 2034 735,000 247,463 2035 755,000 225,113 2036 780,000 202,088 2037 800,000 176,388 2038 830,000 147,863 2039 825,000 118,900 2040 855,000 88,431 2041 885,000 54,700 2042 925,000 18,500 Total $23,120,000 $6,255,335 It is not practicable to determine the specific year for payment of long-term accrued compensated absences. 65 78 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2022, was as follows: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental activities: General obligation bonds $3,770,000 $ - $370,000 $3,400,000 $385,000 Bond premium 143,863 - 15,985 127,878 - Project financing 835,037 - 145,000 690,037 241,310 Compensated absences*747,455 15,307 - 762,762 170,890 Total governmental activity long-term liabilities $5,496,355 $15,307 $530,985 $4,980,677 $797,200 Business-type activities: G.O. revenue bonds $25,180,000 $ - $2,060,000 $23,120,000 $1,845,000 Bond premium 1,131,508 - 118,631 1,012,877 - Compensated absences*182,346 134,453 - 316,799 70,977 Total business-type activity long-term liabilities $26,493,854 $134,453 $2,178,631 $24,449,676 $1,915,977 *The change in compensated absences is presented as a net change. All long-term bonded indebtedness outstanding at December 31, 2022, is backed by the full faith and credit of the City. General Obligation Revenue Bonds are serviced by the Sewer, Water and Surface Water Management Enterprise Funds and are carried as debt of those funds. NONEXCHANGE FINANCIAL GUARANTEE OF DEBT On August 1, 2014, the Carver County Community Development Agency (CDA), a legally separate entity from the City, issued $2,110,000 of Housing Development Refunding Bonds, Series 2014 and $2,370,000 of Taxable Housing Development and Refunding Bonds, Series 2014T. The proceeds were used to refund a portion of prior bonds and to fund certain capital improvements of the Centennial Hill Apartments, which are located within the City. In accordance with Minnesota Statutes Section 469.034, Subd. 2, the City has pledged its full faith and credit and taxing powers to the payment of debt service on the Series 2014 and Series 2014T bonds. In the event that the Carver County CDA is unable to pay the debt service on the bonds due to insufficient housing revenues and cash reserves, the City is obligated to pay the debt service. The City’s guarantee extends until the bonds have fully matured, which is scheduled to occur in 2034. The total amount of outstanding guaranteed debt, including interest, at December 31, 2022, is $3,762,649. The City’s management does not expect the City will be required to make any debt service payments towards these bonds. Accordingly, the bonds are not reflected in the financial statements of the City. 66 79 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 PROJECT FINANCING The City has a Joint Powers Agreement with Carver County for the Lyman Boulevard - Phase 3 project, and a Joint Powers Agreement with Carver County for a pedestrian trail to the Arboretum. The City is paying its share of these projects at 0% interest according to the following schedule: Year Ending December 31, Lyman Blvd Ped Trail Total 2023 $145,000 $96,310 $241,310 2024 145,000 96,310 241,310 2025 111,108 96,309 207,417 Total $401,108 $288,929 $690,037 REVENUE PLEDGED Future revenue pledged for the payment of long-term debt is as follows: Percent of Debt service Remaining Principal Pledged Use of Total as a % of Term of Principal and Interest Revenue Bond Issue Proceeds Type Debt Service net revenues Pledge and Interest Paid Received 2016A Refunding bonds Refunding of 2008A bonds Property taxes 100% n/a 2019 - 2030 $3,689,450 $451,350 $483,840 2011A Water Revenue bonds Water infrastructure improvements Water charges 100% 5.7% 2012 - 2021 $ - $277,956 $4,860,293 - refunded the 2005B bonds 2011B Water Revenue bonds Water infrastructure improvements Water charges 100% 11.8% 2012 - 2024 $1,741,125 $572,675 $4,860,293 - refunded the 2005B bonds 2012A Water & Sewer Revenue Purchase of meter reading equipment Water and 100% 1.6% 2013 - 2022 $136,046 $133,003 $8,551,033 bonds sewer charges 2016A Water Revenue bonds Water infrastructure improvements Water charges 100% 4.0% 2016 - 2025 $705,650 $179,200 $4,450,647 2016B Water Revenue bonds West Water Treatment Plant Water charges 100% 2.8% 2017 - 2041 $6,119,889 $138,238 $4,860,293 2017A Water Revenue bonds West Water Treatment Plant Water charges 100% 9.1% 2018 - 2038 $11,721,750 $440,250 $4,860,293 2018A Water Revenue bonds West Water Treatment Plant Water charges 100% 7.3% 2019 - 2030 $2,845,300 $356,400 $4,860,293 Water, sewer, 2020A Water, Sewer, & Surface Water, Sewer, and Surface Water and surface 100% 7.0% 2021 - 2031 $6,105,575 $704,700 $10,112,765 Water Revenue bonds Infrastructure improvements water charges Revenue Pledged Current Year 67 80 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 8 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General obligation bond issues sold by the City are financed by ad valorem tax levies. Special assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2022. Future scheduled tax levies for all bonds outstanding at December 31, 2022, totaled $3,429,878. Note 9 LEASE LIABILITY As of December 31, 2022, the City had ten outstanding vehicle leases, all of which were entered into during 2022. Each lease requires 48 monthly payments ranging from $546 to $858. The lease liability is measured at discount rates ranging from 10.0% to 13.3% as stated in the lease agreements. As a result of the leases, the City has recorded right to use leased assets with a net book value of $246,344 as of December 31, 2022. Details of this amount are presented in Note 6. Lease liability activity for the year ended December 31, 2022, was as follows: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental activities $ - $243,263 $21,502 $221,761 $52,702 Business-type activities - 28,852 2,716 26,136 6,348 Total lease liability $0 $272,115 $24,218 $247,897 $59,050 Scheduled lease payments are as follows: Year Ending December 31, Principal Interest Principal Interest 2023 $52,702 $22,070 $6,348 $2,419 2024 58,840 15,925 7,040 1,727 2025 65,705 9,060 7,807 960 2026 44,514 1,962 4,941 173 Total $221,761 $49,017 $26,136 $5,279 Lease Liability Lease Liability Governmental Activities Business-type Activities 68 81 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 10 DEFINED BENEFIT PENSION PLANS A.PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, 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 PEPFF also covers police officers and firefighters belonging to local relief associations 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. 1.GERF 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 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% for each of the first ten years of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated Plan members is 1.7% 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. 69 82 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the Social Security Administration (SSA), with a minimum increase of at least 1% and a maximum of 1.5%. 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. 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. 2. PEPFF Benefits Benefits for PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. Benefit increases are provided to benefit recipients each January. The postretirement increase will be fixed at 1%. 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. 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. C. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. GERF Contributions Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2022 and the City was required to contribute 7.50% for Coordinated Plan members. The City’s contributions to the GERF for the year ended December 31, 2022, were $477,007. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Police and Fire Plan members were required to contribute 11.80% of their annual covered salary in fiscal year 2022 and the City was required to contribute 17.70% for Police and Fire Plan members. The City’s contributions to the PEPFF for the year ended December 31, 2022, were $86,742. The City’s contributions were equal to the required contributions as set by state statute. 70 83 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 D. PENSION COSTS 1. GERF Pension Costs At December 31, 2022, the City reported a liability of $6,573,627 for its proportionate share of GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. 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 $192,870. The net pension liability was measured as of June 30, 2022, 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, 2021, through June 30, 2022, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0830% at the end of the measurement period and 0.0768% for the beginning of the period. City’s proportionate share of the net pension liability $6,573,627 State of Minnesota’s proportionate share of the net pension liability associated with the City 192,870 Total $6,766,497 For the year ended December 31, 2022, the City recognized pension expense of $967,769 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $28,819 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF. At December 31, 2022, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $54,908 $70,456 Changes in actuarial assumptions 1,487,731 27,735 Difference between projected and actual investment earnings 120,643 - Changes in proportion 344,337 - Contributions paid to PERA subsequent to the measurement date 241,774 - Total $2,249,393 $98,191 71 84 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 The $241,774 reported as deferred outflows of resources 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, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending Pension December 31,Expense 2023 $713,199 2024 721,120 2025 (119,377) 2026 594,486 Thereafter - 2. PEPFF Pension Costs At December 31, 2022, the City reported a liability of $1,388,162 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2022, 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, 2021, through June 30, 2022, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0319% at the end of the measurement period and 0.0220% for the beginning of the period. The State of Minnesota also contributed $18 million to PEPFF during the plan fiscal year ended June 30, 2022. The contribution consisted of $9 million in direct state aid that does meet the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The direct state aid was paid on October 1, 2021. Thereafter, by October 1 of each year, the state will pay $9 million to the PEPFF until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. The State of Minnesota is included as a non-employer contributing entity in the PEPFF Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $9 million in direct state aid. PEPFF employers need to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2022, the City recognized pension expense of $46,762 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized an additional $11,765 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9 million to the PEPFF. 72 85 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City recognized $2,871 for the year ended December 31, 2022 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. At December 31, 2022, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $86,086 $ - Changes in actuarial assumptions 817,147 10,268 Net collective between projected and actual investment earnings 22,744 - Changes in proportion 227,043 7,442 Contributions paid to PERA subsequent to the measurement date 48,455 - Total $1,201,475 $17,710 The $48,455 reported as deferred outflows of resources 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, 2023. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as outflows: Year Ending Pension December 31,Expense 2023 $317,665 2024 204,594 2025 174,884 2026 303,901 2027 134,266 Thereafter - $1,135,311 The net pension liability will be liquidated by the general, water, sewer, and surface water management funds. 73 86 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: Inflation 2.25% per year Investment Rate of Return 6.50% The long-term investment rate of return is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates deemed to be reasonable by the actuary. An investment return of 6.50% was deemed to be within that range of reasonableness for financial reporting purposes. Benefit increases after retirement are assumed to be 1.25% for the GERF. The PEPFF benefit increase is fixed at 1.00% per year and that increase was used in the valuation. Salary growth assumptions in the GERF range in annual increments from 10.25% after one year of service to 3.0% after 27 years of service. In the PEPFF, salary growth assumptions range from 11.75% after one year of service to 3.0% after 24 years of service. Mortality rates for GERF were based on the Pub-2010 General Employee Mortality Table. Mortality rates for PEPFF were based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. Actuarial assumptions for GERF are reviewed every four years. The most recent four-year experience study for GERF was completed in 2019. The assumption changes were adopted by the Board and become effective with the July 1, 2020, actuarial valuation. The most recent four-year experience study for PEPFF was completed in 2020 and adopted by the Board and became effective with the July 1, 2021, actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2022: General Employees Fund Changes in Actuarial Assumptions:  The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. Police and Fire Fund Changes in Actuarial Assumptions:  The single discount rate was changed from 6.50% to 5.40%.  The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 74 87 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return 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 following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic Equity 33.5% 5.10% International Equity 16.5% 5.30% Fixed Income 25% 0.75% Private Markets 25% 5.90% Total 100% F. DISCOUNT RATE The discount rate for the GERF used to measure the total pension liability in 2022 was 6.5%. 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 these assumptions, the fiduciary net position of the GERF 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. In the PEPFF, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members through June 30, 2060. Beginning in fiscal year ended June 30, 2061, projected benefit payments exceed the funds' projected fiduciary net position. Benefit payments projected after were discounted at the municipal bond rate of 3.69% (based on the weekly rate closest to but not later than the measurement date of the Fidelity "20-Year Municipal GO AA Index"). The resulting equivalent single discount rate of 5.40% for the PEPFF was determined to give approximately the same present value of projected benefits when applied to all years of projected benefits as the present value of projected benefits using 6.5% applied to all years of projected benefits through the point of asset depletion and 3.69% thereafter.  75 88 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 G.PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability, 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 one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate City's Proportionate share of the GERF net pension liability $10,383,389 $6,573,627 $3,449,035 City's Proportionate share of the PEPFF net pension liability $2,100,805 $1,388,162 $812,033 H.PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained at www.mnpera.org. I.PENSION EXPENSE Pension expense recognized by the City for the year ended December 31, 2022, is as follows: GERF $996,588 PEPFF 58,527 Fire Relief (note 11)(99,385) Total $955,730 76 89 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 11 SINGLE EMPLOYER PENSION PLAN A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Chanhassen Fire Department Relief Association (the Relief Association) and additions to/deductions from the Relief Association’s fiduciary net position have been determined on the same basis as they were reported by the Relief Association. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. B. PLAN DESCRIPTION All members of the Chanhassen Fire Department are covered by a defined benefit pension plan administered by the Relief Association. The Plan is a single employer retirement plan and is established and administered in accordance with Minnesota Statute, Chapter 69. C. BENEFITS PROVIDED Twenty-Year Service Pension Prior to April 1997, each member who is at least 50 years of age, has retired from the Fire Department, has served at least twenty years of active service with such department before retirement, and has been a member of the Relief Association in good standing at least ten years prior to such retirement shall be entitled to receive either a monthly lifetime service pension or a defined benefit lump sum pension. After April 1997, each member shall be entitled to receive a defined benefit lump sum pension. Monthly service pensions shall be $410 per month. Defined benefit service pension per year of service shall be $7,500. The maximum service pension shall not exceed the maximum service pension amount permitted under the flexible service pension maximums pursuant to Minnesota Statute Section 424A.02, Subdivision 3. Members who choose the lump sum receive no additional interest accrual. 77 90 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Ten Year Service But Less Than Twenty Year Service Each member who is at least 50 years of age; who has retired from the Fire Department; who has served at least five years of active service with such department before retirement but has not served at least 20 years of active service; and, who has been a member of the Relief Association in good standing at least ten years prior to such retirement, shall be entitled to either a pro-rated monthly service pension or a pro-rated lump sum service pension based on the percentages in the following table: For Duty of: more than but less than 5 years 6 years 40% 6744 7848 8952 91056 10 11 60 11 12 64 12 13 68 13 14 72 14 15 76 15 16 80 16 17 84 17 18 88 18 19 92 19 20 96 20 100 The payment amount will be calculated by using the amount payable per year of service in effect at the time of such early retirement, multiplied by the number of accumulated years of service, multiplied by the appropriate percentage as defined above. During the time a member is on early-vested pension, he or she will not be eligible for disability benefits. Survivors Benefit Prior to April 1997, if any active vested or deferred member dies leaving an eligible surviving spouse, they shall receive a monthly pension for a guaranteed fifteen year period. After April 1997, an eligible surviving spouse shall receive a lump sum payment calculated in accordance with the by-laws. If there is no surviving spouse, then the deceased member’s designated beneficiary or their estate would receive the payment. A surviving spouse of a member receiving a monthly pension shall receive 50% of the member’s monthly benefit, based on the date of death. 78 91 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Permanent Disability If any member of the Relief Association contracts sickness or injury, which incapacitates the member from attending to their business, from causes outside or within their line of duty, and a physician’s report shows that the member is unable to perform their duties, then they are entitled to their full accrued lump sum benefit, payable immediately. Temporary Disability Any member of the Relief Association who becomes temporarily incapacitated from attending to their business due to illness of injury, sustained in the performance of such business, and is unable to work for a period of one week or longer, shall be paid a benefit of $5 per day for a period of no longer than 120 days in any one fiscal year, providing the member is under the care of a physician or doctor during this period. Death Benefit Upon the death of any active or deferred member, the beneficiaries of the deceased member shall be paid a death benefit in an amount equivalent to the accrued service pension. D. EMPLOYEES COVERED BY BENEFIT TERMS As of the December 31, 2021, actuarial valuation, the following employees were covered by the benefit terms: Retirees and beneficiaries currently receiving benefits 4 Retired members entitled to benefits but have not received them 28 Active members: Fully vested (20 years or more) 2 Partially vested (5 years to 19 years) 20 Non-vested (less than 5 years) 10 Total 64 E. CONTRIBUTIONS Minnesota Statutes Section 424A.092 specifies minimum support rates required on an annual basis. The minimum support rates from the municipality and from State Aid are determined as the amount required to meet the normal cost plus amortizing any existing prior service costs over a ten-year period. The significant actuarial assumptions used to compute the municipal support are not the same as those used to compute the accrued pension liability. The Relief Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e., there are no covered payroll percentage calculations). During the year ending December 31, 2022, contributions totaling $273,374 ($230,794 from the State of Minnesota and $42,580 from the City) were made to the Relief Association in accordance with Minnesota State Statute requirements. During the year ending December 31, 2021, contributions totaling $211,227 ($211,227 from the State of Minnesota and $0 from the City) were made to the Relief Association in accordance with Minnesota State Statute requirements. 79 92 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 F. ACTUARIAL METHOD AND SIGNIFICANT ASSUMPTIONS The total pension liability was determined by an actuarial valuation as of December 31, 2021 using the following actuarial assumptions, applied to all periods in the measurement: Valuation date 12/31/2021 Measurement date (assets and funded status)12/31/2021 Actuarial cost method Entry Age Normal Amortization method Level dollar Closed 20-year period Asset valuation method Market Value Actuarial assumptions: Investment rate of return 5% Projected salary increases N/A Includes inflation at 3% Cost-of-living adjustments 3% Age of service retirement The later of the age 50 and 20 years of service Post-retirement benefit increases None Mortality assumptions were determined using the following tables:  Healthy – PubS-2010 Mortality with generational improvements projected beginning in 2010 based on SOA Scale MP-2021  Disabled – PubS-2010 Mortality with generational improvements projected beginning in 2010 based on SOA Scale MP-2021 The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These expected real rates of return are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. For each major asset class that is included in the pension plan’s target asset allocation as of December 31, 2021, these best estimates are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Stock and mutual funds 60% 5.2% Fixed income 30% 0.6% Other 5% 0.6% Cash 5% 0.0% 100% 80 93 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 G. DISCOUNT RATES The discount rate used to measure the total pension liability was 5%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pensions plans fiduciary net position was projected to be available to make all projected future benefit payments to current plan members. Therefore, the plan’s long-term expected return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. H. CHANGES IN THE NET PENSION LIABILITY The City’s net pension liability was measured using a one-year lookback as of December 31, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2021. Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (a) (b) (a) - (b) Balance at December 31, 2020 $3,320,179 $2,780,075 $540,104 Changes for the year: Service cost 154,968 - 154,968 Interest 161,407 - 161,407 Changes in benefit terms - - - Differences between expected and actual experience (126,365) - (126,365) Changes of assumptions 233 - 233 Contributions - employer - - - On behalf contributions - State of MN - 211,227 (211,227) Contributions - employee - - - Net investment income - 231,675 (231,675) Benefit payments, including refunds of employee contributions (494,030) (494,030) - Administrative expense - (19,800) 19,800 Other changes - (20,943) 20,943 Net changes (303,787) (91,871) (211,916) Balance at December 31, 2021 $3,016,392 $2,688,204 $328,188 Increase (Decrease) 81 94 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 I.PENSION LIABILITY SENSITIVITY The following presents the net pension liability of the Relief Association, calculated using the discount rate of 5.0%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.0%) or 1-percentage-point higher (6.0%) than the current rate: Current 1% Decrease Discount Rate 1% Increase (4.0%) (5.0%) (6.0%) Net pension liability $507,100 $328,188 $164,539 J.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. That report may be obtained by writing to Chanhassen Fire Department Relief Association, P.O. Box 147, Chanhassen, Minnesota, 55317. K.PENSION EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES RLEATED TO PENSIONS For the year ended December 31, 2022, the City recognized pension expense of ($99,385), including $211,227 as pension expense (and grant revenue) for the State of Minnesota’s on-behalf contribution to the plan. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $45,810 $126,393 Changes in actuarial assumptions 35,061 576 Difference between projected and actual investment earnings - 185,550 Contributions subsequent to the measurement date 273,374 - Total $354,245 $312,519 82 95 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 The $273,374 reported as deferred outflows of resources resulting from City contributions subsequent to the Relief Association’s measurement date will be recognized as a reduction to the net pension liability in the City’s year ended December 31, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ending Pension December 31,Expense 2023 ($57,997) 2024 (106,762) 2025 (46,841) 2026 (20,048) 2027 - Thereafter - Note 12 OTHER POST-EMPLOYMENT BENEFITS (OPEB) A. PLAN DESCRIPTION In addition to providing the pension benefits described in Note 10 and 11, the City provides post- employment health care benefits (as defined in paragraph B) for retired employees through a single- employer defined benefit plan. The City’s OPEB plan is administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The Plan does not issue a separate report. B. BENEFITS PROVIDED Retirees The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. Employees who satisfy the rule of 80 or attain age 55 and have completed 10 years of service at termination can immediately commence medical benefits. Retirees may obtain dependent coverage while the participating retiree is under age 65. Covered spouses may continue coverage after the retiree’s death. The surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee’s death. All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s plan becomes secondary. 83 96 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 C. PARTICIPANTS As of the January 1, 2022, actuarial valuation date, participants consisted of: Active employees receiving benefits 78 Inactive employees currently receiving or entitled to receive benefits 2 Total 80 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $168,712 was measured as of December 31, 2022, and was determined by an actuarial valuation as of January 1, 2022. Changes in the total OPEB liability during 2022 were: Balance - beginning of year $179,490 Changes for the year: Service cost 18,755 Interest 4,381 Changes of benefit terms - Differences between expected and actual experience (9,225) Changes in assumptions (17,614) Benefit payments (7,075) Net changes (10,778) Balance - end of year $168,712 The OPEB liability is liquidated by the General fund, Water fund, Sewer fund, and Surface Water Management fund. E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the January 1, 2022, actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 2.25% Salary increases Based on the most recent disclosed assumptions for the pension plan in which the employee participates. Discount rate 4.31% Investment rate of return 2.53% Healthcare cost trend rates 7.5% for 2022 decreasing to ultimate rate of 4.5% in 2029 and beyond Retirees' share of benefit-related costs 100% Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return was based on the 20-year AA rated municipal bond rate as of December 31, 2022, obtained from the Bond Buyer G.O. 20-year Bond Municipal Bond Index. 84 97 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Mortality rates were based on the SOA Pub-2010 General Headcount Weighted Mortality Table fully generational using Scale MP-2020 for active and retirees and SOA Pub-2010 Continuing Survivor Headcount Weighted Mortality Table fully generational using Scale MP-2021 for surviving spouses. 20% of employees are assumed to elect spousal coverage at retirement. Husbands are assumed to be three years older than wives. Actual spousal coverage and age is used for retirees. F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE 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% lower (3.31%) or 1% higher (5.31%) than the current discount rate: 1% Decrease Discount Rate 1% Increase (3.31%) (4.31%) (5.31%) Total OPEB liability $177,045 $168,712 $160,812 G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST TREND RATES 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 healthcare cost trend rates that are 1% lower (6.5% decreasing to 3.5%) or 1% higher (8.5% decreasing to 5.50%) than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (6.5% decreasing to 3.5%)(7.5% decreasing to 4.5%)(8.5% decreasing to 5.50%) Total OPEB liability $156,061 $168,712 $183,148 H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2022, the City recognized $4,327 of OPEB expense. At December 31, 2022, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $ - $66,692 Changes in actuarial assumptions 2,333 - Total $2,333 $66,692 85 98 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending OPEB December 31,Expense 2023 ($11,733) 2024 (11,733) 2025 (11,733) 2026 (11,737) 2027 (10,917) Thereafter (6,506) Note 13 INTERFUND LOANS AND TRANSFERS Amounts reported as interfund loan receivable/payable at December 31, 2022, are as follows: Interfund Interfund Loan Receivable Loan Payable Major Funds: General Fund $25,000 $ - Water Fund - 194,356 Nonmajor Funds 194,356 25,000 Total $219,356 $219,356 During 2015, the City adopted resolution 2015-15 authorizing an interfund loan to finance construction of Well #15. The Water Fund borrowed $700,000 from the PMP Pavement Management Capital fund and $700,000 from the Capital Equipment Replacement Fund. The loan is being repaid at an interest rate of 2.5% over eight years. Payments during years 2016-2019 were made to the PMP Pavement Management Capital fund and payments during years 2020-2023 are being made to the Capital Replacement Fund. There were $189,615 of repayments in 2022 and $194,356 is expected to be repaid in 2023. During 2022, a $25,000 interfund loan was made from the General Fund to provide initial funding for the Lake Place Senior Apartment TIF district. No amounts are expected to be repaid in 2023. Interfund transfers made during 2022 are summarized as follows: Transfers In Transfers Out Major Funds: General Fund $160,000 $250,000 Grant Fund - 160,000 PMP Pavement Mgmt. Capital 232,375 - Nonmajor Funds 250,000 232,375 Total $642,375 $642,375 86 99 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 14 CONDUIT DEBT From time to time, the City has issued conduit debt to provide financial assistance to private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2022, the outstanding conduit debt is as follows: Bonds Original 12/31/2022 Maturity Project Name Issued Principal Principal Date Presbyterian Homes, Series 2014B 06/14 $9,300,000 $5,995,071 2034 Note 15 DEFICIT FUND BALANCES At December 31, 2022, the Grant Fund had a deficit in the amount of $69,452. The deficit will be eliminated by future investment earnings. At December 31, 2022, the Lake Place Senior apartment TIF 12 fund had a deficit in the amount of $24,703. The deficit will be eliminated by future tax increment receipts. Note 16 COMMITMENTS AND CONTINGENCIES A. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial insurance for risks of loss, including workers compensation, property and general liability and employee health and accident insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. B. LITIGATION Existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City’s management, are remotely recoverable by plaintiffs. C. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2022. 87 100 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 D. TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT The City occasionally provides tax abatements pursuant to Minnesota Statutes Sections 469.174 to 469.1794 (Tax Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to encourage private development, redevelopment, renovation and renewal, growth in low-to-moderate-income housing, and economic development within the City. TIF captures the increase in tax capacity and property taxes from development or redevelopment to provide funding for the related project. The City has one tax increment district, which has an outstanding pay-as-you-go revenue note. The note is not a general obligation of the City and is payable solely from available tax increments. Accordingly, the note is not reflected in the financial statements of the City. Details of the pay-as-you-go revenue note is as follows: Tax Increment Revenue Note (Frontier Redevelopment) – issued in 2020 in the principal sum of $1,300,000 with an interest rate of 5.0% per annum. Principal and interest payments shall be paid commencing August 1, 2020, and each February 1 and August 1 thereafter to and including February 1, 2045. Payments are payable solely from tax increments, which shall mean 95% of the tax increments derived from the tax increment property and received by the City. The payment reimburses the developer for street, utilities, right-of-way, land acquisition, and other public improvements. The City shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2045. Current year abatement (TIF note payments) amounted to $265,319. At December 31, 2022, the principal amount outstanding on the note was $813,812. E. COMMITTED CONTRACTS At December 31, 2022, the City had commitments of $2,363,028 for uncompleted construction contracts. 88 101 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 17 FUND BALANCE A.CLASSIFICATIONS Definitions of fund balance classifications are included in Note 1P. At December 31, 2022, a summary of the governmental fund balance classifications are as follows: PMP TH101 Pavement Improvements - Other General Grant Management Pioneer to Governmental Fund Fund Capital Flying Cloud Funds Total Nonspendable: Prepaid items $91,340 $ - $ - $ - $ - $91,340 Restricted for: Debt service - - - - 650,229 650,229 Park improvements - - - - 422,568 422,568 Tax Increment - - - - 24,580 24,580 CATV - public education - - - - 43,837 43,837 Public safety - fire - - - - 26,182 26,182 Total restricted 0 0 0 0 1,167,396 1,167,396 Assigned for: Payout of compensated absences for retirement 150,000 - - - - 150,000 Staffing and organizational assessment study 66,000 - - - - 66,000 Playground equipment 170,000 - - - - 170,000 Laserfiche records scanning 100,000 - - - - 100,000 Lobbying 40,000 - - - - 40,000 Radio encryption 81,000 - - - - 81,000 Planning-Chanhassen Bluffs Sports Complex 50,000 - - - - 50,000 Capital improvements - - 4,319,679 77,432 2,693,850 7,090,961 Cable communications - - - - 349,741 349,741 Cemetery operations - - - - 60,083 60,083 Debt service reserve - - - - 1,103,192 1,103,192 Total assigned 657,000 0 4,319,679 77,432 4,206,866 9,260,977 Unassigned 7,623,891 (69,452) - - (24,703) 7,529,736 Total $8,372,231 ($69,452) $4,319,679 $77,432 $5,349,559 $18,049,449 B.MINIMUM UNASSIGNED FUND BALANCE POLICY The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the General Fund. The most significant revenue source of the General Fund is property taxes. This revenue source is received in two installments during the year – June and December. As such, it is the City’s goal to begin each fiscal year with sufficient working capital to fund operations between each semi-annual receipt of property taxes. The City’s fund balance policy states the year end General Fund balance shall be sufficient to cover 50% of the property taxes budgeted to be received during the following year. At December 31, 2022, the fund balance of the General Fund exceeded this level. 89 102 CITY OF CHANHASSEN, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2022 Note 18 ADOPTION OF NEW ACCOUNTING STANDARD The City implemented GASB Statement No. 87, Leases for the year ended December 31, 2022. As a result, a lease receivable and deferred inflow of resources are reported on the Statement of Net Position and the Balance Sheet – Governmental Funds. In addition, a right to use leased asset and lease liability are reported on the Statement of Net Position and the Statement of Net Position – Proprietary Funds. In accordance with GASB 87, prior year comparative columns have also been restated. However, the City had no material lease liabilities outstanding at any point during 2021. Note 19 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Board (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2022. Statement No. 96 Subscription – Based Information Technology Arrangements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2022. Statement No. 99 Omnibus 2022. The provisions of this Statement contain multiple effective dates, the first being for reporting periods beginning after June 15, 2022. Statement No. 100 Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62. The provisions of this Statement are effective for reporting periods beginning after June 15, 2023. The effect these standards may have on future financial statements is not determinable at this time. 90 103 REQUIRED SUPPLEMENTARY INFORMATION 91 104 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6 For The Year Ended December 31, 2022 With Comparative Actual Amounts For The Year Ended December 31, 2021 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: General property taxes $10,194,746 $10,194,746 $10,245,765 $51,019 $9,483,858 Licenses and permits: Licenses - general government 3,100 3,100 2,375 (725) 2,500 Licenses - public safety 93,500 93,500 104,963 11,463 91,248 Permits - public safety 1,191,000 1,191,000 1,376,140 185,140 2,103,829 Permits - public works 36,500 36,500 58,025 21,525 58,442 Permits - community development 17,500 17,500 15,220 (2,280) 16,060 Total licenses and permits 1,341,600 1,341,600 1,556,723 215,123 2,272,079 Intergovernmental: Federal - parks and recreation - - - - 994 State aid - parks and recreation - - - - 790 State aid - police - public safety 135,000 135,000 142,005 7,005 146,841 State aid - fire - public safety 200,000 200,000 233,815 33,815 227,443 Other 215,000 215,000 120,217 (94,783) 9,562 Total intergovernmental 550,000 550,000 496,037 (53,963) 385,630 Charges for services: General government 76,000 76,000 75,553 (447) 692 Public safety 3,000 3,000 1,200 (1,800) 1,059 Public works 110,800 110,800 81,054 (29,746) 112,694 Parks and recreation 400,700 400,700 510,510 109,810 385,651 Community development 32,000 32,000 18,145 (13,855) 23,612 Total charges for services 622,500 622,500 686,462 63,962 523,708 Fines and forfeits: Public safety 76,500 76,500 69,173 (7,327) 78,673 Investment earnings (loss) 60,000 60,000 (401,261) (461,261) 15,664 Contributions and donations: General government - - 500 500 500 Public safety - - 250 250 - Parks and recreation 25,000 25,000 20,035 (4,965) 21,093 Total contributions and donations 25,000 25,000 20,785 (4,215) 21,593 Refunds and reimbursements: General government 5,000 5,000 9,268 4,268 6,591 Public safety 12,500 12,500 1,819 (10,681) 1,582 Public works 42,500 42,500 58,628 16,128 44,803 Parks and recreation 1,000 1,000 9,620 8,620 - Community development - - 20 20 40 Total refunds and reimbursements 61,000 61,000 79,355 18,355 53,016 Other: General government 262,500 262,500 375,862 113,362 263,883 Public safety 6,700 6,700 2,230 (4,470) 6,949 Total other 269,200 269,200 378,092 108,892 270,832 Total revenues 13,200,546 13,200,546 13,131,131 (69,415) 13,105,053 2022 Budgeted Amounts See accompanying notes to the required supplementary information. 92 105 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6 For The Year Ended December 31, 2022 With Comparative Actual Amounts For The Year Ended December 31, 2021 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: General government: Legislative: Current: Personal services $32,924 $32,924 $33,749 ($825) $48,547 Operating expenses 59,133 59,133 88,190 (29,057) 78,883 Total legislative 92,057 92,057 121,939 (29,882) 127,430 Administrative office: Current: Personal services 453,292 453,292 449,855 3,437 525,362 Operating expenses 76,400 76,400 130,213 (53,813) 105,168 Total administrative office 529,692 529,692 580,068 (50,376) 630,530 Finance: Current: Personal services 299,963 299,963 277,172 22,791 328,422 Operating expenses 50,199 50,199 38,430 11,769 43,425 Total finance 350,162 350,162 315,602 34,560 371,847 Election: Current: Personal services 26,000 26,000 23,042 2,958 - Operating expenses 22,000 22,000 24,781 (2,781) 13,264 Total election 48,000 48,000 47,823 177 13,264 Legal: Current: Operating expenses 210,000 210,000 212,623 (2,623) 200,938 Property assessment: Current: Operating expenses 175,000 175,000 174,492 508 177,554 M.I.S.: Current: Personal services 259,500 259,500 244,566 14,934 217,213 Operating expenses 444,800 444,800 349,340 95,460 346,040 Total M.I.S. 704,300 704,300 593,906 110,394 563,253 City hall: Current: Personal services 56,300 56,300 57,575 (1,275) 95,920 Operating expenses 355,700 355,700 358,925 (3,225) 315,310 Capital outlay - - 58,882 (58,882) - Total City hall 412,000 412,000 475,382 (63,382) 411,230 Library: Current: Operating expenses 124,600 124,600 130,492 (5,892) 134,140 Total library 124,600 124,600 130,492 (5,892) 134,140 2022 Budgeted Amounts See accompanying notes to the required supplementary information. 93 106 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6 For The Year Ended December 31, 2022 With Comparative Actual Amounts For The Year Ended December 31, 2021 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) General government: (continued) Economic development: Current: Personal services $141,238 $141,238 $56,118 $85,120 $ - Operating expenses 8,762 8,762 4,714 4,048 - Total economic development 150,000 150,000 60,832 89,168 - Communication: Current: Personal services 159,357 159,357 154,345 5,012 - Operating expenses 27,800 27,800 31,251 (3,451) - Total communication 187,157 187,157 185,596 1,561 - Total general government 2,982,968 2,982,968 2,898,755 84,213 2,630,186 Public safety: Police: Current: Operating expenses 2,000,100 2,000,100 1,870,532 129,568 1,777,166 Total police 2,000,100 2,000,100 1,870,532 129,568 1,777,166 Fire department: Current: Personal services 1,365,041 1,365,041 1,340,124 24,917 1,052,988 Operating expenses 220,200 220,200 237,277 (17,077) 187,083 Total fire department 1,585,241 1,585,241 1,577,401 7,840 1,240,071 Code enforcement: Current: Personal services 961,418 961,418 843,822 117,596 750,244 Operating expenses 16,000 16,000 48,090 (32,090) 13,885 Total code enforcement 977,418 977,418 891,912 85,506 764,129 Community Service: Current: Personal services - - - - 36,910 Operating expenses 3,900 3,900 4,871 (971) 4,051 Total community service 3,900 3,900 4,871 (971) 40,961 Total public safety 4,566,659 4,566,659 4,344,716 221,943 3,822,327 2022 Budgeted Amounts See accompanying notes to the required supplementary information. 94 107 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6 For The Year Ended December 31, 2022 With Comparative Actual Amounts For The Year Ended December 31, 2021 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Public works: Engineering: Current: Personal services $508,856 $508,856 $502,904 $5,952 $696,017 Operating expenses 19,000 19,000 3,931 15,069 36,344 Total engineering 527,856 527,856 506,835 21,021 732,361 G.I.S: Current: Personal services 66,795 66,795 66,525 270 - Operating expenses 16,350 16,350 11,293 5,057 - Total G.I.S 83,145 83,145 77,818 5,327 - Street maintenance: Current: Personal services 757,887 757,887 491,944 265,943 931,095 Operating expenses 153,200 153,200 159,001 (5,801) 161,464 Total street maintenance 911,087 911,087 650,945 260,142 1,092,559 Street lighting: Current: Operating expenses 405,500 405,500 483,595 (78,095) 380,273 Total street lighting 405,500 405,500 483,595 (78,095) 380,273 Fleet department: Current: Personal services 267,000 267,000 265,798 1,202 334,526 Operating expenses 406,536 406,536 180,772 225,764 196,333 Total fleet department 673,536 673,536 446,570 226,966 530,859 Public works operation: Current: Personal services 96,255 96,255 98,639 (2,384) - Operating expenses - - 108,987 (108,987) - Total public works operation 96,255 96,255 207,626 (111,371) - Total public works 2,697,379 2,697,379 2,373,389 323,990 2,736,052 2022 Budgeted Amounts See accompanying notes to the required supplementary information. 95 108 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6 For The Year Ended December 31, 2022 With Comparative Actual Amounts For The Year Ended December 31, 2021 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Parks and recreation: Parks and recreation commission: Current: Operating expenses $ - $ - $ - $ - $322 Parks and recreation administration: Current: Personal services 164,361 164,361 164,691 (330) 194,668 Operating expenses 8,300 8,300 13,755 (5,455) 4,852 Total parks and recreation administration 172,661 172,661 178,446 (5,785) 199,520 Recreation center: Current: Personal services 230,973 230,973 256,652 (25,679) 213,208 Operating expenses 114,700 114,700 136,835 (22,135) 95,925 Total recreation center 345,673 345,673 393,487 (47,814) 309,133 Senior center: Current: Personal services $95,240 $95,240 $93,126 $2,114 $86,437 Operating expenses 37,130 37,130 47,680 (10,550) 29,721 Total senior center 132,370 132,370 140,806 (8,436) 116,158 Recreation programs: Current: Personal services 280,402 280,402 284,271 (3,869) 186,432 Operating expenses 136,570 136,570 155,906 (19,336) 124,606 Total recreation programs 416,972 416,972 440,177 (23,205) 311,038 Self-supporting programs: Current: Personal services 1,083 1,083 727 356 14,162 Operating expenses 39,013 39,013 13,757 25,256 10,527 Total self-supporting programs 40,096 40,096 14,484 25,612 24,689 Lake Ann Park operations: Current: Personal services 11,330 11,330 13,418 (2,088) 9,050 Operating expenses 58,800 58,800 67,641 (8,841) 57,905 Total Lake Ann Park operations 70,130 70,130 81,059 (10,929) 66,955 Park maintenance: Current: Personal services 938,618 938,618 904,092 34,526 839,566 Operating expenses 212,000 212,000 261,942 (49,942) 196,629 Total park maintenance 1,150,618 1,150,618 1,166,034 (15,416) 1,036,195 Recreation sports: Current: Personal services 24,239 24,239 25,839 (1,600) 15,811 Operating expenses 13,200 13,200 6,171 7,029 5,319 Total recreation sports 37,439 37,439 32,010 5,429 21,130 Total parks and recreation 2,365,959 2,365,959 2,446,503 (80,544) 2,085,140 2022 Budgeted Amounts See accompanying notes to the required supplementary information. 96 109 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6 For The Year Ended December 31, 2022 With Comparative Actual Amounts For The Year Ended December 31, 2021 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures: (continued) Community development: Planning commission: Current: Operating expenses $ - $ - $ - $ - $1,617 Planning administration: Current: Personal services 568,481 568,481 568,624 (143) 549,476 Operating expenses 14,100 14,100 26,172 (12,072) 8,037 Total planning administration 582,581 582,581 594,796 (12,215) 557,513 Commission on aging: Current: Personal services - - - - 31,101 Operating expenses 5,000 5,000 256 4,744 368 Total commission on aging 5,000 5,000 256 4,744 31,469 Total community development 587,581 587,581 595,052 (7,471) 590,599 Total expenditures 13,200,546 13,200,546 12,658,415 542,131 11,864,304 Revenues over expenditures - - 472,716 472,716 1,240,749 Other financing sources (uses): Transfers in - - 160,000 (160,000) - Transfers out (250,000) (250,000) (250,000) - - Total other financing sources (250,000) (250,000) (90,000) (160,000) - Net change in fund balance ($250,000) ($250,000) 382,716 312,716 1,240,749 Fund balance - January 1 7,989,515 6,748,766 Fund balance - December 31 $8,372,231 7,989,515 Budgeted Amounts 2022 See accompanying notes to the required supplementary information. 97 110 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years 2018 2019 2020 2021 2022 Total OPEB liability: Service cost $14,388 $13,547 $13,504 $15,307 $18,755 Interest 7,032 8,738 5,463 3,785 4,381 Changes of benefit terms - - - - - Differences between expected and actual experience - (82,370) (12,888) (6,405) (9,225) Changes in assumptions (7,402) 16,736 9,168 8,015 (17,614) Benefit payments (9,869) - (3,343) (8,835) (7,075) Net change in total OPEB liability 4,149 (43,349) 11,904 11,867 (10,778) Total OPEB liability - beginning 194,919 199,068 155,719 167,623 179,490 Total OPEB liability - ending $199,068 $155,719 $167,623 $179,490 168,712 Covered-employee payroll $5,151,178 $5,270,695 $5,270,695 $6,422,681 $6,720,515 Total OPEB liability as a percentage of covered-employee payroll 3.9% 3.0% 3.2% 2.8% 2.5% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018, and is intended to show a ten year trend. Additional years will be added as they become available. No assets are accumulated in a trust that meet the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. See accompanying notes to the required supplementary information. 98 111 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND Last Ten Fiscal Years City's Plan State's Proportionate Fiduciary Proportionate Share of the Net Net City's City's Share Pension Liability City's Position Proportionate Proportionate (Amount) and the State's Proportionate as a Share Share of the Net Proportionate Share of the Net Percentage (Percentage) (Amount) Pension Share of the Net Pension Liability of the Measurement Fiscal Year of the of the Net Liability Pension Liability as a Percentage Total Date Ending Net Pension Pension Associated Associated with Covered of its Covered Pension June 30 December 31 Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Liability 2015 2015 0.0791% $4,099,373 $ - $4,099,373 $4,651,703 88.1%78.2% 2016 2016 0.0759% 6,162,704 80,496 6,243,200 4,708,444 132.6% 68.9% 2017 2017 0.0751% 4,794,334 60,265 4,854,599 4,836,519 100.4% 75.9% 2018 2018 0.0760% 4,216,168 138,310 4,354,478 5,110,253 85.2%79.5% 2019 2019 0.0727% 4,019,420 124,828 4,144,248 5,143,989 80.6%80.2% 2020 2020 0.0741% 4,442,634 137,022 4,579,656 5,283,373 86.7%79.1% 2021 2021 0.0768% 3,279,704 100,098 3,379,802 5,527,150 61.1%87.0% 2022 2022 0.0830% 6,573,627 192,870 6,766,497 6,220,584 108.8% 76.7% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015, and is intended to show a ten year trend. Additional years will be reported as they become available. No assets are accumulated in a trust that meet the criteria of GASB codification P22.101 or P52.101 to pay related benefits. See accompanying notes to the required supplementary information. 99 112 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND Last Ten Fiscal Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess) Payroll Covered-Employee December 31 (a)Contribution (b)(a-b)(c)Payroll (b/c) 2015 $346,881 $346,881 $ - $4,625,080 7.50% 2016 358,611 358,611 - 4,781,489 7.50% 2017 371,824 371,824 - 4,957,652 7.50% 2018 383,686 383,686 - 5,115,814 7.50% 2019 390,082 390,082 - 5,201,071 7.50% 2020 409,847 409,847 - 5,464,626 7.50% 2021 438,328 438,328 - 5,844,364 7.50% 2022 477,007 477,007 - 6,360,066 7.50% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015, and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 100 113 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND Last Ten Fiscal Years City's Plan State's Proportionate Fiduciary Proportionate Share of the Net Net City's City's Share Pension Liability City's Position Proportionate Proportionate (Amount) and the State's Proportionate as a Share Share of the Net Proportionate Share of the Net Percentage (Percentage) (Amount) Pension Share of the Net Pension Liability of the Measurement Fiscal Year of the of the Net Liability Pension Liability as a Percentage Total Date Ending Net Pension Pension Associated Associated with Covered of its Covered Pension June 30 December 31 Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Liability 2015 2015 0.0200% $227,247 $ - $227,247 $180,370 126.0% 86.6% 2016 2016 0.0190%762,503 - 762,503 186,408 409.1% 63.9% 2017 2017 0.0190%256,523 - 256,523 194,526 131.9% 85.4% 2018 2018 0.0193%205,718 - 205,718 203,653 101.0% 88.8% 2019 2019 0.0205%218,243 - 218,243 216,056 101.0% 89.3% 2020 2020 0.0200%263,621 137,022 400,643 225,631 177.6% 87.2% 2021 2021 0.0220%169,817 7,638 177,455 260,290 68.2%93.7% 2022 2022 0.0319% 1,388,162 60,654 1,448,816 387,508 373.9% 70.5% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015, and is intended to show a ten year trend. Additional years will be reported as they become available. No assets are accumulated in a trust that meet the criteria of GASB codification P22.101 or P52.101 to pay related benefits. See accompanying notes to the required supplementary information. 101 114 - This page intentionally left blank - 102 115 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND Last Ten Fiscal Years Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess) Payroll Covered December 31 (a)Contribution (b)(a-b)(c)Payroll (b/c) 2015 $29,647 $29,647 $ - $183,006 16.20% 2016 30,790 30,790 - 190,064 16.20% 2017 32,612 32,612 - 201,307 16.20% 2018 33,511 33,511 - 206,857 16.20% 2019 37,761 37,761 - 222,780 16.95% 2020 40,530 40,530 - 228,980 17.70% 2021 55,996 55,996 - 316,363 17.70% 2022 86,742 86,742 - 490,067 17.70% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015, and is intended to show a ten year trend. Additional years will be reported as they become available. See accompanying notes to the required supplementary information. 103 116 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION LAST TEN FISCAL YEARS Fiscal year ending December 31, 2015 December 31, 2016 December 31, 2017 Measurement date December 31, 2015 December 31, 2016 December 31, 2017 Total pension liability: Service cost $86,369 $88,924 $88,924 Interest 118,909 128,235 127,729 Changes of benefit terms 279,202 - 212,120 Differences between expected and actual experience (5,328) - 5,145 Changes of assumptions - (203) 231,636 Benefit payments, including refunds of employee contributions (470,743) (113,883) (340,243) Net change in total pension liability 8,409 103,073 325,311 Total pension liability - beginning 2,524,303 2,532,712 2,635,785 Total pension liability - ending (a)$2,532,712 $2,635,785 $2,961,096 Plan fiduciary net position: Contributions - employer $37,571 $ - $ - Contributions - State of Minnesota 177,784 177,831 181,554 Contributions - employee - - - Net investment income (105,958)158,581 306,593 Benefit payments, including refunds of employee contributions (470,743)(113,883)(340,243) Administrative expense (7,225)(16,972)(14,875) Other changes - 500 29,900 Net change in plan fiduciary net position (368,571)206,057 162,929 Plan fiduciary net position - beginning 2,276,084 1,907,513 2,113,570 Plan fiduciary net position - ending (b)$1,907,513 $2,113,570 $2,276,499 Net pension liability - ending (a) - (b)$625,199 $522,215 $684,597 Plan fiduciary net position as a percentage of the total pension liability 75.3%80.2%76.9% Covered payroll*NA NA NA Net pension liability as a percentage of covered payroll*Not applicable Not applicable Not applicable *The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore there are no payroll expenditures. Beginning in 2021, The City's net pension liability was measured using a one-year lookback option. GASB 68 was implemented in 2015. Information prior to 2015 is not available. See accompanying notes to the required supplementary information. 104 117 Statement 15 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2020 December 31, 2021 $143,922 $143,922 $150,695 $150,695 $154,968 149,836 154,784 156,622 156,622 161,407 - - - - - - (79,049) 76,350 76,350 (126,365) (1,074) (902) 58,144 58,144 233 (216,595) (170,835) (206,737) (206,737) (494,030) 76,089 47,920 235,074 235,074 (303,787) 2,961,096 3,037,185 3,085,105 3,085,105 3,320,179 $3,037,185 $3,085,105 $3,320,179 $3,320,179 $3,016,392 $54,749 $47,399 $31,957 $31,957 $ - 184,695 190,045 203,495 203,495 211,227 - - - - - (130,928) 328,474 237,593 237,593 231,675 (216,595) (170,835) (206,737) (206,737) (494,030) (17,350) (16,386) (16,000) (16,000) (19,800) - - - - (20,943) (125,429) 378,697 250,308 250,308 (91,871) 2,276,499 2,151,070 2,529,767 2,529,767 2,780,075 $2,151,070 $2,529,767 $2,780,075 $2,780,075 $2,688,204 $886,115 $555,338 $540,104 $540,104 $328,188 70.8% 82.0% 83.7% 83.7% 89.1% NA NA NA NA NA Not applicable Not applicable Not applicable Not applicable Not applicable See accompanying notes to the required supplementary information. 105 118 CITY OF CHANHASSEN, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 16 SCHEDULE OF CONTRIBUTIONS - CHANHASSEN FIRE DEPARTMENT RELIEF ASSOCIATION Last Ten Fiscal Years Actuarially Contribution Contributions Fiscal Year Determined Deficiency as a Percentage Ending Contribution Employer State of MN (Excess) Covered of Covered December 31 (a) Contributions (b) Contributions (c) (a-b-c) Payroll Payroll 2015 $142,501 $37,571 $177,784 ($72,854) * * 2016 171,760 - 177,831 (6,071) * * 2017 171,760 - 181,554 (9,794) * * 2018 236,444 54,749 184,695 (3,000) * * 2019 236,444 47,399 190,045 (1,000) * * 2020 233,452 31,957 203,495 (2,000) * * 2021 233,452 31,957 203,495 (2,000) * * 2022 233,452 - 211,227 22,225 * * *The Chanhassen Fire Department Relief Association is comprised of volunteers, therefore, there are no payroll expenditures. (i.e., there are no covered payroll amounts or percentage calculations.) Beginning in 2021, The City's net pension liability was measured using a one-year lookback option. GASB 68 was implemented in 2015. Information prior to 2015 is not available. Contributions in Relation to the Actuarially Determined Contribution See accompanying notes to the required supplementary information. 106 119 CITY OF CHANHASSEN, MINNESOTA NOTES TO RSI December 31, 2022 A. LEGAL COMPLIANCE – BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the fund level. B. PENSION INFORMATION PERA – General Employees Retirement Fund 2022 Changes in Actuarial Assumptions: The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 Changes in Actuarial Assumptions: The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 2020 Changes in Actuarial Assumptions: The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%. Assumed salary increase rates were decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination and disability were also changed. Base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 2020 Changes in Plan Provisions: Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 Changes in Actuarial Assumptions: The mortality projection scale was changed from MP-2017 to MP-2018. 2019 Changes in the 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. 2018 Changes in Actuarial Assumptions: •The mortality projection scale was changed from MP-2015 to MP-2017. •The assumed benefit increase was changed from 1.0% per year through 2044 and 2.50% per year thereafter to 1.25% per year. 107 120 CITY OF CHANHASSEN, MINNESOTA NOTES TO RSI December 31, 2022 2017 Changes in Actuarial Assumptions:  The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15.0% for vested deferred member liability and 3.0% for non-vested deferred member liability.  The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. 2016 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, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. PERA – Public Employees Police and Fire Fund 2022 Changes in Actuarial Assumptions:  The single discount rate changed from 6.50% to 5.4%.  The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 Changes in Actuarial Assumptions:  The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes.  The inflation assumption was changed from 2.50% to 2.25%.  The payroll growth assumption was changed from 3.25% to 3.00%.  The base mortality tables for healthy annuitants, disabled annuitants and employees were changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale was changed from MP-2019 to MN-2020.  Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020 experience study. The changes result in a decrease in gross salary increase rates, slightly more unreduced retirements and fewer assumed early retirements.  Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed terminations.  Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities.  Assumed percent married for active female members was changed from 60% to 70%. 2020 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2018 to MP-2019. 2019 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2017 to MP-2018. 2018 Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2016 to MP-2017. 108 121 CITY OF CHANHASSEN, MINNESOTA NOTES TO RSI December 31, 2022 2017 Changes in Actuarial Assumptions:  The single discount rate was changed from 5.6% to 7.5%.  Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34% lower than the previous rates.  Assumed rates of retirement were changed, resulting in fewer retirements.  The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2% 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% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.  Assumed percentage of married female members was decreased from 65% to 60%.  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% for all years to 1.00% per year through 2064 and 2.50% thereafter. 2016 Changes in Actuarial Assumptions:  The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 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 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. Single Employer – Fire Relief Association Valuation date – actuarially determined contribution rates are calculated as of January 1 every other year, which is the same date as the beginning of the fiscal year beginning in which contributions are reported. 2022 Changes in Actuarial Assumptions:  The mortality table used to measure funding liability has been changed from SOA Public Safety-2010 Mortality with MP 2020 Generational to SOA Public Safety-2010 Mortality with MP 2021 Generational. This resulted in a small increase in liability and decrease normal cost. 2020 Changes in Actuarial Assumptions:  The mortality assumption was updated from the PubS-2010 Mortality Table Projected Generationally from 2010 with the MP-2019 Mortality Improvement Scale to the PubS-2010 Mortality Table Projected Generationally from 2010 with the MP-2020 Mortality Improvement Scale. 109 122 CITY OF CHANHASSEN, MINNESOTA NOTES TO RSI December 31, 2022 2019 Changes in Actuarial Assumptions:  The mortality table used to measure funding liability has been changed from RP -2014 Sex Distinct Blue Collar Mortality with generational improvements beginning in 2006 (based on assumptions developed from the 2017 Social Security Trustees Report) to PubS-2010 Mortality with generational improvements projected beginning in 2010 based on SOA Scale MP-2019. 2018 Changes in Actuarial Assumptions:  Mortality assumptions were determined using the RP-2014 Blue Collar Mortality with fully generational improvements from 2006 based on assumptions from the Social Security Administration’s 2018 trustees report.  The mortality improvement scale used to measure liability has been changed from an improvement scale based on assumptions developed from the 2017 Social Security Trustees Report to an improvement scaled based on assumptions developed from the 2018 Social Security trustees Report. The base table (RP-2014 Blue Collar) and year in which improvements began (2006) remained unchanged. This results in a decrease in liability and service cost. 2017 Changes in Actuarial Assumptions:  The mortality improvement scale has been changed from an improvement scale based on assumptions developed from the 2016 Social Security Trustees Report to an improvement scale based on assumptions developed from the 2017 Social Security Trustees Report.  Disability rates have changed from 0.03% at age 20, grading to 0.33% at age 50 to Class 1 1985 Disability Rates.  The lump sum benefit accrual amount has been projected to increase by 9.27% every three years (3% compounded each year). 2016 Changes in Actuarial Assumptions:  As of December 31, 2016, the mortality assumption was changed to the RP-2014 Blue Collar Mortality with fully generational improvements from 2006 based on assumptions from the Social Security Administration’s 2016 trustees report. Details can be obtained from the financial reports of the Fire Relief Association. C. OPEB INFORMATION No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. 110 123 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 111 124 - This page intentionally left blank - 112 125 NONMAJOR GOVERNMENTAL FUNDS 113 126 - This page intentionally left blank - 114 127 SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. DEBT SERVICE FUNDS The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal and related costs on general long-term debt. CAPITAL PROJECT FUNDS The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). 115 128 CITY OF CHANHASSEN, MINNESOTA COMBINING BALANCE SHEET Statement 17 NONMAJOR GOVERNMENTAL FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 Special Debt Capital Revenue Service Project 2022 2021 Assets: Cash and investments $434,819 $2,124,299 $2,965,824 $5,524,942 $7,240,403 Accrued interest receivable 2,303 10,993 15,505 28,801 17,224 Due from other governmental units - - - - 1,284 Accounts receivable - net 48,732 -139,695 188,427 154,066 Property taxes receivable -2,705 6,067 8,772 12,098 Prepaid items - - - - 690 Interfund loan receivable - - 194,356 194,356 383,971 Special assessments receivable -319,216 -319,216 319,216 Total assets $485,854 $2,457,213 $3,321,447 $6,264,514 $8,128,952 Liabilities: Accounts payable $3,983 $384,576 $169,473 $558,032 $718,472 Due to other governmental units - - 10,679 10,679 128,247 Due to other funds - - - - 7,425 Salaries payable 2,028 - - 2,028 2,047 Interfund loan payable - - 25,000 25,000 - Unearned revenue - - - - 1,441,924 Total liabilities 6,011 384,576 205,152 595,739 2,298,115 Deferred inflows of resources: Unavailable revenue -319,216 -319,216 319,216 Fund balance: Nonspendable - - - - 690 Restricted 70,019 650,229 447,148 1,167,396 1,056,768 Assigned 409,824 1,103,192 2,693,850 4,206,866 4,476,588 Unassigned - - (24,703) (24,703) (22,425) Total fund balance 479,843 1,753,421 3,116,295 5,349,559 5,511,621 Total liabilities, deferred inflows of resources, and fund balance $485,854 $2,457,213 $3,321,447 $6,264,514 $8,128,952 Total Nonmajor Governmental Funds 116 129 CITY OF CHANHASSEN, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 18 CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2022 With Comparative Totals For The Year Ended December 31, 2021 Special Debt Capital Revenue Service Project 2022 2021 Revenues: General property taxes $ - $483,840 $1,084,490 $1,568,330 $1,632,800 Tax increment collections - 279,283 279,283 279,653 Licenses and permits - - 127,855 127,855 336,215 Intergovernmental - - - - 298,264 Franchise fees 155,950 - - 155,950 162,120 Special assessments - - - - 332 Charges for services 7,450 - - 7,450 11,900 Investment earnings (loss)(21,594) (72,739) (106,888) (201,221) (25,643) Contributions and donations 57,471 - - 57,471 63,143 Refunds and reimbursements - - 11,193 11,193 31,899 Other - - 2,400 2,400 4,600 Total revenues 199,277 411,101 1,398,333 2,008,711 2,795,283 Expenditures: Current: General government 277,309 13,045 31,203 321,557 823,375 Public safety 44,694 - 146,173 190,867 36,685 Public works - - 390,519 390,519 304,590 Parks and recreation - - 2,065 2,065 160,553 Community development - - 269,525 269,525 295,505 Capital outlay: General government - - 33,170 33,170 - Public safety 33,262 - 180,757 214,019 - Public works - - 339,321 339,321 - Parks and recreation - - 340,984 340,984 1,183,802 Debt service: Principal - 370,000 21,502 391,502 360,000 Interest and paying agent fees - 81,740 10,550 92,290 92,680 Total expenditures 355,265 464,785 1,765,769 2,585,819 3,257,190 Revenues over (under) expenditures (155,988) (53,684) (367,436) (577,108) (461,907) Other financing sources (uses): Sale of capital assets - - 154,158 154,158 84,983 Isssuance of leases - - 243,263 243,263 - Project financing issued - - - - 288,929 Transfers in - - 250,000 250,000 - Transfers out - - (232,375) (232,375) (185,794) Total other financing sources (uses) - - 415,046 415,046 188,118 Net change in fund balance (155,988) (53,684)47,610 (162,062) (273,789) Fund balance - January 1 635,831 1,807,105 3,068,685 5,511,621 5,785,410 Fund balance - December 31 $479,843 $1,753,421 $3,116,295 $5,349,559 $5,511,621 Total Nonmajor Governmental Funds 117 130 - This page intentionally left blank - 118 131 NONMAJOR SPECIAL REVENUE FUNDS Special Revenue Funds are established to account for taxes and other revenues set aside for a particular purpose. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which the related liability is incurred. Contribution Fund – This fund accounts for the proceeds that the City receives from charitable gambling. The City collects 10% of the net proceeds from a pull-tab operation in the City. By state statute, the fund may only be used for equipment and training for the City’s fire department. Cemetery Fund – The City owns and operates a municipal cemetery. In 2014, improvements were made to add approximately 300 additional plots. This fund accounts for all plot fees and maintenance going forward. Cemetery operations had previously been accounted for within the City’s General Fund. CATV Fund – Under the terms of the franchise agreement with Mediacom, the City is to receive 5% of the revenues derived from cable television sales within the City. These monies are dedicated solely to improving public broadcasting capabilities, studio improvements, and other capital expenditures improving the overall cable system. 119 132 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 19 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 201 Contribution Fund 202 Cemetery Fund 210 CATV Fund 2022 2021 Assets: Cash and investments $19,697 $59,770 $355,352 $434,819 $1,993,001 Accrued interest receivable 100 313 1,890 2,303 1,794 Due from other governmental units - - - - 249 Accounts receivable - net 9,796 - 38,936 48,732 86,068 Prepaid items - - - - 690 Total assets $29,593 $60,083 $396,178 $485,854 $2,081,802 Liabilities: Accounts payable $3,411 $ - $572 $3,983 $2,000 Salaries payable - - 2,028 2,028 2,047 Unearned revenue - - - - 1,441,924 Total liabilities 3,411 - 2,600 6,011 1,445,971 Fund balance: Nonspendable - - - - 690 Restricted 26,182 - 43,837 70,019 92,226 Assigned - 60,083 349,741 409,824 542,915 Total fund balance 26,182 60,083 393,578 479,843 635,831 Total liabilities and fund balance $29,593 $60,083 $396,178 $485,854 $2,081,802 Total Nonmajor Special Revenue Funds 120 133 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES Statement 20 AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2022 With Comparative Totals For The Year Ended December 31, 2021 201 Contribution Fund 202 Cemetery Fund 210 CATV Fund 2022 2021 Revenues: Franchise fees $ - $ - $155,950 $155,950 $162,120 Charges for services - 7,450 - 7,450 11,900 Investment earnings (loss) (1,722) (3,048) (16,824) (21,594) (3,687) Contributions and donations 57,471 - - 57,471 63,143 Refunds and reimbursements - - - - 249 Total revenues 55,749 4,402 139,126 199,277 233,725 Expenditures: Current: General government - 25,256 252,053 277,309 223,866 Public safety 44,694 - - 44,694 36,685 Capital outlay: Public safety 33,262 - - 33,262 - Total expenditures 77,956 25,256 252,053 355,265 260,551 Revenues over (under) expenditures (22,207) (20,854) (112,927) (155,988) (26,826) Fund balance - January 1 48,389 80,937 506,505 635,831 662,657 Fund balance - December 31 $26,182 $60,083 $393,578 $479,843 $635,831 Total Nonmajor Special Revenue Funds 121 134 - This page intentionally left blank - 122 135 NONMAJOR DEBT SERVICE FUNDS Debt Service Funds are maintained on the modified accrual basis of accounting for revenues from taxes and other sources set aside for the payment of the debt obligations of the City. Principal and interest on the general long-term debt is recognized when due. Permanent Revolving Debt – This fund is used to account for excess resources from matured bond issues. General Obligation Bond Funds – These funds are used to account for the accumulation of resources for payment of general obligation bonds or other general indebtedness and the interest thereon. 123 136 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 21 NONMAJOR DEBT SERVICE FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 300 Permanent Revolving Debt 368 2009A G.O. Refunding Bonds 370 2016A G.O. Refunding Bonds 2022 2021 Assets: Cash and investments $678,527 $801,556 $644,216 $2,124,299 $2,198,869 Accrued interest receivable 3,511 4,174 3,308 10,993 6,782 Property taxes receivable - - 2,705 2,705 3,554 Special assessments receivable 8,094 311,122 - 319,216 319,216 Total assets $690,132 $1,116,852 $650,229 $2,457,213 $2,528,421 Liabilities: Accounts payable $4,326 $380,250 $ - $384,576 $402,100 Deferred inflows of resources: Unavailable revenue 8,094 311,122 - 319,216 319,216 Fund balance: Restricted - - 650,229 650,229 630,411 Assigned 677,712 425,480 - 1,103,192 1,176,694 Total fund balance 677,712 425,480 650,229 1,753,421 1,807,105 Total liabilities, deferred inflows of resources, and fund balance $690,132 $1,116,852 $650,229 $2,457,213 $2,528,421 Total Nonmajor Debt Service Funds 124 137 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 22 CHANGES IN FUND BALANCES NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2022 With Comparative Totals For The Year Ended December 31, 2021 300 Permanent Revolving Debt 368 2009A G.O. Refunding Bonds 370 2016A G.O. Refunding Bonds 2022 2021 Revenues: General property taxes $ - $ - $483,840 $483,840 $479,800 Special assessments - - - - 332 Investment earnings (loss)(28,544) (32,408) (11,787) (72,739) (13,938) Total revenues (28,544) (32,408) 472,053 411,101 466,194 Expenditures: Current: General government 12,550 - 495 13,045 26,951 Debt service: Principal - - 370,000 370,000 360,000 Interest and paying agent fees - - 81,740 81,740 92,680 Total expenditures 12,550 - 452,235 464,785 479,631 Revenues over (under) expenditures (41,094) (32,408)19,818 (53,684) (13,437) Other financing sources (uses): Transfers out - - - - (185,794) Net change in fund balance (41,094) (32,408)19,818 (53,684) (199,231) Fund balance - January 1 718,806 457,888 630,411 1,807,105 2,006,336 Fund balance - December 31 $677,712 $425,480 $650,229 $1,753,421 $1,807,105 Total Nonmajor Debt Service Funds 125 138 - This page intentionally left blank - 126 139 NONMAJOR CAPITAL PROJECT FUNDS Capital Project Funds are used to account for the construction and financing of large capital projects. Revenues and expenditures are recognized on the modified accrual basis. Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which they are incurred. Most capital projects are singular in purpose and their revenues/expenditures cannot be used for subsidizing any other operating fund. In each of these cases, bonds or other revenues received can only be used for these specific activities. The following Capital Project Funds differ in that several of the expenditure categories represent recurring types of costs, i.e., personal services, repair and maintenance of utilities, and/or recurring land improvements. 400 Capital Replacement Fund – Accounts for the City’s annual equipment purchases not related to the City’s enterprise funds. The fund currently does include a property tax levy to support the annual purchases. 401 Park Renovation Fund – Accounts for replacement or repair of major park equipment/infrastructure, including playgrounds, picnic shelters, hockey rinks, bridges, fences, walls, etc. The maintenance and replacement schedule is an ongoing endeavor that will be updated as new investments are made or aging structures are removed. 402 Facilities Capital Fund – Accounts for the City’s expenditures related to the City’s facilities, except for those related to the enterprise funds. The fund currently does include a property tax levy to support projects. 410 Park Acquisition and Development – Accounts for park dedication fees as required by the City ordinance and Minnesota State Statute. These funds are then utilized to finance park and trail improvements identified in the park and recreation section of the City’s comprehensive plan. 413 Transit Station Assessment Fund – Accounts for the interfund loan from the Water Fund to fund costs associated with the redevelopment of the Dinner Theater Transit Station in TIF #10, and for the repayment of the special assessment to repay those costs. The fund was closed in 2022. 420 Transportation Infrastructure Management – Accounts for sealcoating and other maintenance costs on local streets. 480 TIF #11 – Accounts for tax increment financing for the downtown district, TIF #11 – Frontier Development #2. 481 TIF #12 – Accounts for tax increment financing for TIF #12 – Lake Place Senior Apt. 603 Lyman Blvd Improvements – Accounts for the street and utility improvement of Lyman Blvd. This fund was closed in 2022. 127 140 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2022 With Comparative Totals For December 31, 2021 400 Capital 401 Park 402 Facilites Replacement Fund Renovation Fund Capital Fund Assets: Cash and investments $1,234,225 $261,858 $104,729 Accrued interest receivable 6,392 1,486 559 Due from other governmental units - - - Accounts receivable - net 139,695 - - Property taxes receivable 3,161 - 699 Interfund loan receivable 194,356 - - Total assets $1,577,829 $263,344 $105,987 Liabilities: Accounts payable $11,376 $14,130 $7,356 Due to other governmental units - - - Due to other funds - - - Interfund loan payable - - - Total liabilities 11,376 14,130 7,356 Fund balance: Restricted - - - Assigned 1,566,453 249,214 98,631 Unassigned - - - Total fund balance 1,566,453 249,214 98,631 Total liabilities and fund balance $1,577,829 $263,344 $105,987 128 141 Statement 23 410 Park 420 Transportation 480 Frontier 481 Lake Acquisition and Infrastructure Development #2 Place Senior Apt Total Nonmajor Development Management TIF #11 TIF #12 2022 2021 $434,606 $773,684 $156,425 $297 $2,965,824 $3,048,533 2,263 3,990 815 - 15,505 8,648 - - - - - 1,035 - - - - 139,695 67,998 - 2,207 - - 6,067 8,544 - - - - 194,356 383,971 $436,869 $779,881 $157,240 $297 $3,321,447 $3,518,729 $3,622 $329 $132,660 $ - $169,473 $314,372 10,679 - - - 10,679 128,247 - - - - - 7,425 - - - 25,000 25,000 - 14,301 329 132,660 25,000 205,152 450,044 422,568 - 24,580 - 447,148 334,131 - 779,552 - - 2,693,850 2,756,979 - - - (24,703) (24,703) (22,425) 422,568 779,552 24,580 (24,703) 3,116,295 3,068,685 $436,869 $779,881 $157,240 $297 $3,321,447 $3,518,729 Capital Project Funds 129 142 CITY OF CHANHASSEN, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2022 With Comparative Totals For The Year Ended December 31, 2021 410 Park 400 Capital 401 Park 402 Facilites Acquisition and Replacement Fund Renovation Fund Capital Fund Development Revenues: General property taxes $565,000 $ - $125,000 $ - Tax increment collections - - - - Licenses and permits 255 - - 127,600 Intergovernmental - - - - Investment earnings (loss) (35,565) (5,540) (442) (15,644) Refunds and reimbursements 10,100 - - 1,000 Other 2,400 - - - Total revenues 542,190 (5,540) 124,558 112,956 Expenditures: Current: General government 31,203 - - - Public safety 130,466 - 15,707 - Public works 26,264 - - - Parks and recreation - 2,065 - - Community development - - - - Capital outlay: General government 33,170 - - - Public safety 180,757 - - - Public works 329,101 - 10,220 - Parks and recreation 139,138 190,297 - 11,549 Debt service: Principal 21,502 - - - Interest and paying agent fees 10,550 - - - Total expenditures 902,151 192,362 25,927 11,549 Revenues over (under) expenditures (359,961)(197,902)98,631 101,407 Other financing sources (uses): Sale of capital assets 154,158 - - - Issuance of leases 243,263 - - - Project financing issued - - - - Transfers in - 250,000 - - Transfers out - - - - Total other financing sources (uses)397,421 250,000 - - Net change in fund balance 37,460 52,098 98,631 101,407 Fund balance - January 1 1,528,993 197,116 - 321,161 Fund balance - December 31 $1,566,453 $249,214 $98,631 $422,568 130 143 Statement 24 413 Transit Station 420 Transportation 480 Frontier 481 Lake 603 Lyman Assessment Infrastructure Development #2 Place Senior Apt Boulevard Fund Management TIF #11 TIF #12 Improvements 2022 2021 $ - $394,490 $ - $ - $ - $1,084,490 $1,153,000 - - 279,283 - - 279,283 $279,653 - - - - - 127,855 336,215 - - - - - - 298,264 (3,978)(39,925)(426) - (5,368)(106,888)(8,018) - 93 - - - 11,193 31,650 - - - - - 2,400 4,600 (3,978)354,658 278,857 - (5,368)1,398,333 2,095,364 - - - - - 31,203 572,558 - - - - - 146,173 - - 364,255 - - - 390,519 304,590 - - - - - 2,065 160,553 - - 267,247 2,278 - 269,525 295,505 - - - - - 33,170 - - - - - - 180,757 - - - - - - 339,321 - - - - - - 340,984 1,183,802 - - - - - 21,502 - - - - - - 10,550 - - 364,255 267,247 2,278 - 1,765,769 2,517,008 (3,978)(9,597)11,610 (2,278)(5,368)(367,436)(421,644) - - - - - 154,158 84,983 - - - - - 243,263 - - - - - - - 288,929 - - - - - 250,000 - (98,924) - - - (133,451)(232,375) - (98,924) - - - (133,451)415,046 373,912 (102,902)(9,597)11,610 (2,278)(138,819)47,610 (47,732) 102,902 789,149 12,970 (22,425)138,819 3,068,685 3,116,417 $0 $779,552 $24,580 ($24,703)$0 $3,116,295 $3,068,685 Total Nonmajor Capital Project Funds 131 144 - This page intentionally left blank - 132 145 CITY OF CHANHASSEN, MINNESOTA SPECIAL REVENUE FUND - CONTRIBUTION FUND Statement 25 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended December 31, 2022 With Comparative Actual Amounts For The Year Ended December 31, 2021 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: Investment earnings (loss)$ - $ - ($1,722) ($1,722)($197) Contributions and donations 50,000 50,000 57,471 7,471 63,143 Total revenues 50,000 50,000 55,749 5,749 62,946 Expenditures: Current: Public safety:50,000 50,000 44,694 5,306 36,685 Capital outlay - - 33,262 (33,262) - Total expenditures 50,000 50,000 77,956 (27,956)36,685 Revenues over (under) expenditures $0 $0 (22,207) ($22,207) $26,261 Fund balance - January 1 48,389 22,128 Fund balance - December 31 $26,182 $48,389 2022 Budgeted Amounts 133 146 CITY OF CHANHASSEN, MINNESOTA SPECIAL REVENUE FUND - CEMETERY FUND Statement 26 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended December 31, 2022 With Comparative Actual Amounts For The Year Ended December 31, 2021 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: Charges for services $8,000 $8,000 $7,450 ($550) $11,900 Investment earnings (loss)500 500 (3,048)(3,548)(488) Total revenues 8,500 8,500 4,402 (4,098) 11,412 Expenditures: Current: General government: Personal services 5,125 5,125 5,125 - - Operating expenses 2,500 2,500 20,131 (17,631)1,330 Capital Outlay 25,000 25,000 - 25,000 - Total expenditures 32,625 32,625 25,256 7,369 1,330 Revenues over (under) expenditures ($24,125) ($24,125) (20,854) $3,271 10,082 Fund balance - January 1 80,937 70,855 Fund balance - December 31 $60,083 $80,937 2022 Budgeted Amounts 134 147 CITY OF CHANHASSEN, MINNESOTA SPECIAL REVENUE FUND - CATV Statement 27 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL For The Year Ended December 31, 2022 With Comparative Actual Amounts For The Year Ended December 31, 2021 2021 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues: Intergovernmental $8,500 $8,500 $ - ($8,500) $ - Franchise fees 175,000 175,000 155,950 (19,050) 162,120 Investment earnings (loss)5,000 5,000 (16,824) (21,824)(3,002) Refunds and reimbursements - - - - 249 Total revenues 188,500 188,500 139,126 (49,374) 159,367 Expenditures: Current: General government: Personal services 130,106 130,106 124,457 5,649 127,338 Operating expenses 176,800 176,800 127,596 49,204 95,198 Total expenditures 306,906 306,906 252,053 54,853 222,536 Revenues over (under) expenditures ($118,406) ($118,406) (112,927)$5,479 (63,169) Fund balance - January 1 506,505 569,674 Fund balance - December 31 $393,578 $506,505 2022 Budgeted Amounts 135 148 - This page intentionally left blank - 136 149 III. STATISTICAL SECTION (UNAUDITED) 137 150 - This page intentionally left blank - 138 151 III. STATISTICAL SECTION (UNAUDITED) This part of the City of Chanhassen’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City of Chanhassen’s overall financial health. Contents Table Number Financial Trends These tables contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Tables 1-4 Revenue Capacity These tables contain information to help the reader assess the City’s most significant local revenue source, the property tax. Tables 5-8 Debt Capacity These tables 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. Tables 9-13 Demographic and Economic These tables offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. Tables 14-15 Operating Information These tables contain 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. Tables 16-18 Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. 139 152 CITY OF CHANHASSEN, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2013 2014 2015 2016 Governmental activities: Net investment in capital assets $71,260,946 $71,867,072 $71,225,523 $72,588,940 Restricted: Debt service 6,595,927 3,441,810 3,455,172 1,390,127 Park improvements 1,714,972 1,751,739 1,896,923 1,505,784 Tax increment purposes 1,347,593 965,809 475,357 399,178 Other purposes 165,838 176,089 154,810 164,751 Unrestricted 13,724,705 13,877,772 9,510,105 10,221,704 Total governmental activities net position $94,809,981 $92,080,291 $86,717,890 $86,270,484 Business-type activities: Net investment in capital assets $52,541,451 $54,111,608 $55,704,478 $57,478,975 Unrestricted 11,391,338 10,467,201 10,032,731 10,516,316 Total business-type activities net position $63,932,789 $64,578,809 $65,737,209 $67,995,291 Primary government: Net investment in capital assets $123,802,397 $125,978,680 $126,930,001 $130,067,915 Restricted: Debt service 6,595,927 3,441,810 3,455,172 1,390,127 Park improvements 1,714,972 1,751,739 1,896,923 1,505,784 Tax increment purposes 1,347,593 965,809 475,357 399,178 Other purposes 165,838 176,089 154,810 164,751 Unrestricted 25,116,043 24,344,973 19,542,836 20,738,020 Total primary government net position $158,742,770 $156,659,100 $152,455,099 $154,265,775 Note: GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated. 140 153 Table 1 2017 2018 2019 2020 2021 2022 $70,255,784 $71,053,355 $72,986,179 $73,063,927 $70,860,083 $68,702,496 1,400,411 1,189,447 1,283,606 564,714 594,203 618,646 1,716,043 1,224,509 1,537,790 991,872 321,161 422,568 - - - 6,668 12,970 24,580 153,633 135,024 61,995 65,965 92,226 70,019 10,028,355 8,781,660 8,360,013 9,369,203 12,019,412 13,915,001 $83,554,226 $82,383,995 $84,229,583 $84,062,349 $83,900,055 $83,753,310 $57,212,106 $56,195,385 $54,469,960 $55,526,666 $56,069,887 $56,585,833 10,126,315 12,342,280 13,557,181 11,740,521 16,356,752 11,289,333 $67,338,421 $68,537,665 $68,027,141 $67,267,187 $72,426,639 $67,875,166 $127,467,890 $127,248,740 $127,456,139 $128,590,593 $126,929,970 $125,288,329 1,400,411 1,189,447 1,283,606 564,714 594,203 618,646 1,716,043 1,224,509 1,537,790 991,872 321,161 422,568 - - - 6,668 12,970 24,580 153,633 135,024 61,995 65,965 92,226 70,019 20,154,670 21,123,940 21,917,194 21,109,724 28,376,164 25,204,334 $150,892,647 $150,921,660 $152,256,724 $151,329,536 $156,326,694 $151,628,476 141 154 CITY OF CHANHASSEN, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2013 2014 2015 2016 Expenses Governmental activities: General government $2,630,405 $3,099,004 $2,775,663 $2,887,111 Public safety 3,313,694 3,416,088 3,826,376 3,973,031 Public works 14,224,453 9,604,525 11,153,322 7,591,530 Parks and recreation 2,919,183 3,062,592 2,952,985 3,278,139 Community development 523,651 1,043,848 527,268 689,448 Interest on long-term debt 588,352 465,935 409,676 493,746 Total governmental activities expenses 24,199,738 20,691,992 21,645,290 18,913,005 Business-type activities: Water 4,702,686 3,347,965 3,290,265 4,422,789 Sewer 3,548,200 3,171,696 3,297,128 3,254,619 Surface water management 1,334,173 1,491,763 1,328,144 1,388,979 Total business-type activities expenses 9,585,059 8,011,424 7,915,537 9,066,387 Total primary government expenses $33,784,797 $28,703,416 $29,560,827 $27,979,392 Program revenues Governmental activities: Charges for services: Licenses and permits $2,113,770 $1,691,634 $1,565,900 $1,653,858 Charges for services 1,396,068 1,149,372 1,153,779 1,209,882 Franchise fees - - - - Fines and forfeits 99,984 100,516 117,189 114,367 Operating grants and contributions 472,298 532,337 823,943 735,840 Capital grants and contributions 10,718,999 3,296,748 5,812,825 3,705,857 Total governmental activities program revenues 14,801,119 6,770,607 9,473,636 7,419,804 Business-type activities: Charges for services: Water 2,829,226 2,573,027 2,611,895 2,717,285 Sewer 2,358,854 2,472,536 2,525,731 2,619,882 Surface water management 615,896 639,087 668,971 684,199 Operating grants and contributions 63,112 210,857 45,130 72,007 Capital grants and contributions 2,852,437 2,633,793 3,140,823 5,199,139 Total business-type activities program revenues 8,719,525 8,529,300 8,992,550 11,292,512 Total primary government program revenues $23,520,644 $15,299,907 $18,466,186 $18,712,316 142 155 Table 2 Page 1 of 2 2017 2018 2019 2020 2021 2022 $3,230,517 $3,291,465 $2,968,604 $3,503,418 $3,545,101 $3,537,796 3,969,540 3,819,890 4,045,361 3,975,838 4,055,112 4,396,715 8,161,048 7,225,531 9,808,088 25,142,224 17,282,830 11,350,075 3,227,236 3,158,725 3,275,021 2,704,009 2,957,867 3,432,625 918,962 589,570 535,700 754,205 814,146 850,151 408,273 173,323 132,327 107,993 72,195 71,680 19,915,576 18,258,504 20,765,101 36,187,687 28,727,251 23,639,042 3,866,810 4,567,874 5,842,506 4,908,477 5,245,018 7,301,583 3,746,880 4,122,804 3,879,581 4,312,195 5,025,866 6,548,611 1,538,468 1,634,475 1,918,378 1,694,090 2,541,714 4,489,250 9,152,158 10,325,153 11,640,465 10,914,762 12,812,598 18,339,444 $29,067,734 $28,583,657 $32,405,566 $47,102,449 $41,539,849 $41,978,486 $1,641,140 $2,289,052 $2,047,190 $1,574,780 $2,608,294 $1,684,578 1,257,486 1,203,187 1,090,985 918,148 896,745 1,177,452 - - - 1,826,255 2,019,812 2,036,470 128,394 95,351 89,989 73,800 78,673 69,173 902,871 948,912 2,770,655 14,970,473 6,047,214 2,552,195 2,425,333 1,669,995 4,716,702 4,066,959 4,683,258 3,881,530 6,355,224 6,206,497 10,715,521 23,430,415 16,333,996 11,401,398 2,921,936 3,121,292 3,108,307 3,533,939 4,384,603 4,485,402 2,764,674 3,034,207 3,144,282 3,260,080 3,469,282 3,699,835 709,508 764,930 998,832 1,083,833 1,458,751 1,564,000 45,109 44,604 460,905 39,552 38,380 47,850 1,678,595 3,965,466 3,108,377 2,084,681 8,513,319 4,090,784 8,119,822 10,930,499 10,820,703 10,002,085 17,864,335 13,887,871 $14,475,046 $17,136,996 $21,536,224 $33,432,500 $34,198,331 $25,289,269 143 156 CITY OF CHANHASSEN, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2013 2014 2015 2016 Net (expense) revenue: Governmental activities ($9,398,619) ($13,921,385) ($12,171,654) ($11,493,201) Business-type activities (865,534) 517,876 1,077,013 2,226,125 Total primary government net (expense) revenue (10,264,153) (13,403,509) (11,094,641) (9,267,076) General revenues and other changes in net position: Governmental activities: Property taxes 10,059,324 10,482,273 10,536,216 10,643,917 Tax increment collections 545,906 307,940 200,338 111,761 Grants and contributions not restricted to specific programs 19,941 19,736 21,679 19,754 Unrestricted investment earnings (14,764) 183,602 176,731 156,202 Gain on sale of capital assets 37,720 191,755 66,248 41,129 Transfers 307,596 6,389 (612,078) 73,032 Total governmental activities 10,955,723 11,191,695 10,389,134 11,045,795 Business-type activities: Unrestricted investment earnings (776) 134,533 132,406 79,765 Gain on sale of capital assets - - 57,510 25,224 Transfers (307,596)(6,389) 612,078 (73,032) Total business-type activities (308,372) 128,144 801,994 31,957 Total primary government $10,647,351 $11,319,839 $11,191,128 $11,077,752 Change in net assets: Governmental activities $1,557,104 ($2,729,690) ($1,782,520)($447,406) Business-type activities (1,173,906) 646,020 1,879,007 2,258,082 Total primary government $383,198 ($2,083,670) $96,487 $1,810,676 144 157 Table 2 Page 2 of 2 2017 2018 2019 2020 2021 2022 ($13,560,352) ($12,052,007) ($10,049,580) ($12,757,272) ($12,393,255) ($12,237,644) (1,032,336) 605,346 (819,762) (912,677) 5,051,737 (4,451,573) (14,592,688) (11,446,661) (10,869,342) (13,669,949) (7,341,518) (16,689,217) 10,826,116 10,877,849 10,996,831 11,745,709 12,075,260 12,644,286 - - - 236,485 279,653 279,283 19,753 19,755 20,009 - 311 170,656 164,393 258,456 491,345 368,168 (22,856) (824,062) 38,254 45,244 103,976 - 84,387 155,654 (204,422) (319,528) 283,007 239,676 (185,794) (334,918) 10,844,094 10,881,776 11,895,168 12,590,038 12,230,961 12,090,899 171,044 263,802 548,747 390,604 (78,079) (434,818) - 10,568 43,498 1,795 - - 204,422 319,528 (283,007) (239,676) 185,794 334,918 375,466 593,898 309,238 152,723 107,715 (99,900) $11,219,560 $11,475,674 $12,204,406 $12,742,761 $12,338,676 $11,990,999 ($2,716,258) ($1,170,231) $1,845,588 ($167,234) ($162,294) ($146,745) (656,870) 1,199,244 (510,524) (759,954) 5,159,452 (4,551,473) ($3,373,128) $29,013 $1,335,064 ($927,188) $4,997,158 ($4,698,218) 145 158 CITY OF CHANHASSEN, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2013 2014 2015 2016 General Fund: Nonspendable $16,741 $58,333 $72,114 $25,832 Assigned - - - - Unassigned 5,274,584 5,550,732 5,258,232 5,286,880 Total General Fund $5,291,325 $5,609,065 $5,330,346 $5,312,712 All other governmental funds: Nonspendable $1,327,068 $1,289,575 $1,253,705 $ - Restricted 9,181,230 5,724,419 5,824,354 8,673,981 Assigned 6,366,292 5,951,507 5,586,353 7,806,958 Unassigned (559,515) (475,352) (372,509) (264,772) Total all other governmental funds $16,315,075 $12,490,149 $12,291,903 $16,216,167 146 159 Table 3 2017 2018 2019 2020 2021 2022 $81,032 $87,067 $82,265 $63,775 $69,953 $91,340 - - - - - 657,000 5,307,088 5,667,626 5,255,804 6,684,991 7,919,562 7,623,891 $5,388,120 $5,754,693 $5,338,069 $6,748,766 $7,989,515 $8,372,231 $990,723 $9,326 $8,781 $49,690 $690 $ - 8,458,576 2,618,680 2,944,091 1,669,927 1,056,768 1,167,396 6,602,135 6,414,882 6,657,125 6,809,934 7,819,511 8,553,977 (154,506)(24,491)(570) - (22,425)(44,155) $15,896,928 $9,018,397 $9,609,427 $8,529,551 $8,854,544 $9,677,218 147 160 CITY OF CHANHASSEN, MINNESOTA CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years 2012 2013 2014 2015 2016 Revenues: General property taxes $10,143,011 $10,176,483 $10,489,350 $10,529,994 $10,640,315 Tax increment collections 533,011 545,906 307,940 200,338 111,761 Licenses and permits 1,595,358 2,113,770 1,691,634 1,565,900 1,653,858 Intergovernmental 2,151,785 7,971,339 2,553,062 4,897,139 974,917 Franchise fees - - - - - Special assessments 1,667,881 3,193,078 854,966 1,664,424 820,026 Charges for services 880,920 907,414 798,578 799,543 846,540 Fines and forfeits 119,997 99,984 100,516 117,189 114,367 Investment income 173,523 (14,764) 183,602 176,731 156,202 Contributions and donations 36,893 33,159 66,918 78,175 60,802 Refunds and reimbursements 253,030 235,363 77,871 85,955 150,093 Other 264,038 259,703 265,119 267,622 276,067 Total revenues 17,819,447 25,521,435 17,389,556 20,383,010 15,804,948 Expenditures: Current: General government 2,326,490 2,274,640 2,350,437 2,391,195 2,479,271 Public safety 3,013,980 3,179,446 3,258,363 3,431,541 3,713,146 Public works 3,726,158 10,628,140 5,352,221 7,537,376 3,961,016 Parks and recreation 2,154,714 2,002,604 2,164,703 2,068,532 2,256,314 Community development 621,295 522,538 1,034,047 515,382 659,276 Capital outlay: General government 75,226 87,707 34,080 - 62,713 Public safety 39,314 74,144 23,980 122,143 314,004 Public works 3,502,371 2,482,728 2,894,237 2,566,867 459,142 Parks and recreation 1,310,366 627,214 485,107 476,323 1,153,763 Debt service: Principal 5,100,000 1,590,000 4,190,000 1,810,000 1,795,000 Interest and paying agent fees 814,621 599,487 518,722 439,470 483,533 Developer assistance 21,108 - - - - Total expenditures 22,705,643 24,068,648 22,305,897 21,358,829 17,337,178 Revenues over (under) expenditures (4,886,196)1,452,787 (4,916,341)(975,819)(1,532,230) Other financing sources (uses): Bonds issued - - - - 4,805,000 Project financing - - - - - Issuance of leases - - - - - Bond premium (discount) - - - - 239,773 Transfers in 1,203,031 888,711 1,783,719 2,158,844 1,347,883 Transfers out (48,881)(43,988)(676,095)(1,701,005)(1,044,114) Sale of capital assets - - 301,531 41,015 90,318 Special item - sale of public works building 1,475,000 - - - - Total other financing sources (uses)2,629,150 844,723 1,409,155 498,854 5,438,860 Net change in fund balance ($2,257,046) $2,297,510 ($3,507,186)($476,965) $3,906,630 Debt service as a percentage of noncapital expenditures 33.3%10.5%25.0%12.4%14.8% Debt service as percentage of total expenditures 26.0%9.1%21.1%10.5%13.1% 148 161 Table 4 2017 2018 2019 2020 2021 2022 $10,820,682 $10,856,842 $10,960,876 $11,800,538 $12,046,658 $12,714,095 - - - 236,485 279,653 279,283 1,641,140 2,289,052 2,047,190 1,574,780 2,608,294 1,684,578 2,149,875 2,019,215 6,294,417 18,569,329 6,883,846 3,698,522 - - - 1,826,255 2,019,812 2,036,470 842,523 600,056 727,026 464,373 987,431 1,098,027 838,498 820,745 808,010 546,809 535,608 693,912 128,394 95,351 89,989 73,800 78,673 69,173 164,393 258,456 491,345 368,168 (22,856) (824,062) 73,734 70,339 70,202 56,101 84,736 78,256 174,853 156,920 73,468 88,945 84,915 103,048 264,114 225,522 209,507 263,202 275,432 380,492 17,098,206 17,392,498 21,772,030 35,868,785 25,862,202 22,011,794 2,871,267 2,835,108 2,644,661 3,361,771 3,452,273 3,261,430 3,602,897 3,593,877 3,802,544 3,786,905 3,858,508 4,535,583 4,617,523 3,847,782 6,041,417 20,127,051 3,207,828 7,851,764 2,395,554 2,326,272 2,418,229 1,854,471 2,247,485 2,448,568 940,000 610,368 567,461 803,234 886,104 864,577 30,838 22,133 110,044 833,034 - 92,052 2,950 1,169,952 701,818 387,528 - 214,019 2,595,012 2,315,068 4,959,997 4,938,481 9,195,898 966,056 376,992 1,316,908 797,124 1,121,223 1,183,802 340,984 670,000 5,985,000 720,000 1,585,000 360,000 536,502 433,925 295,294 157,312 143,970 92,680 92,290 - - - - - - 18,536,958 24,317,762 22,920,607 38,942,668 24,484,578 21,203,825 (1,438,752) (6,925,264) (1,148,577) (3,073,883) 1,377,624 807,969 - - - - - - - - - 546,108 288,929 - - - - - - 243,263 - - - - - - 1,924,157 6,724,164 2,153,197 2,852,877 - 642,375 (748,522) (6,369,316) (855,912) (40,724) (185,794) (642,375) 19,286 58,458 25,698 46,443 84,983 154,158 - - - - - - 1,194,921 413,306 1,322,983 3,404,704 188,118 397,421 ($243,831) ($6,511,958) $174,406 $330,821 $1,565,742 $1,205,390 7.1% 32.2% 5.4% 5.5% 2.0% 3.2% 6.0% 25.8% 3.8% 4.4% 1.8% 3.0% 149 162 CITY OF CHANHASSEN, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Fiscal Year Commercial/ Total Ended Residential Industrial All Tax December 31, Property Agricultural Property Other Capacity 2013 26,970,557$ 105,160$ 8,927,095$ 541,612$ 36,544,424$ 2014 28,725,937 132,728 8,984,174 613,105 38,455,944 2015 32,778,287 153,500 9,205,053 620,620 42,757,460 2016 33,790,483 222,144 9,508,063 669,890 44,190,580 2017 34,470,607 278,224 9,910,242 764,420 45,423,493 2018 36,545,419 296,153 10,317,456 869,646 48,028,674 2019 39,891,179 191,360 10,897,809 896,937 51,877,285 2020 42,947,538 135,300 11,666,538 886,150 55,635,526 2021 43,933,317 133,667 12,245,999 935,227 57,248,210 2022 45,814,017 125,056 12,596,386 600,978 59,136,437 Sources: Carver County Taxpayer Services and Hennepin County 150 163 Table 5 Captured Tax Capacity on Fiscal Adjusted City Estimated Tax Capacity Tax Increment Disparity Tax Capacity Direct Tax Market as a Percent District Contribution Value Rate Value of EMV (435,999)$ (1,804,630)$ 34,303,795$ 28.42838 3,118,066,700$ 1.10% (252,884) (1,971,928) 36,231,132 27.23862 3,294,605,000 1.10% (267,337) (1,896,611) 40,593,512 24.63317 3,686,777,200 1.10% (103,638) (2,119,400) 41,967,542 24.25249 3,802,904,100 1.10% - (2,055,461) 43,368,032 23.85464 3,899,829,200 1.11% - (2,009,509) 46,019,165 22.66614 4,112,577,100 1.12% - (2,001,778) 49,875,507 21.10456 4,444,627,000 1.12% (248,355) (2,077,771) 53,309,400 21.17559 4,749,987,200 1.12% (294,955) (2,261,018) 54,692,237 22.11399 4,868,292,100 1.12% (299,262) (2,268,028) 56,569,147 22.41520 5,041,556,300 1.12% 151 164 CITY OF CHANHASSEN, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6 Last Ten Fiscal Years Fiscal Operational Debt City School Carver Year and Capital Service Total District #112 County Other Total Tax capacity rates (per $100 of adjusted tax capacity value) 2013 23.635 4.793 28.428 45.319 46.115 6.603 126.467 2014 22.708 4.531 27.239 44.917 45.211 6.873 124.239 2015 21.532 3.101 24.633 39.120 40.488 6.270 110.512 2016 21.314 2.938 24.252 39.245 38.880 6.417 108.795 2017 21.536 2.317 23.853 37.005 38.851 6.565 106.274 2018 20.731 1.935 22.666 33.837 37.436 6.537 100.476 2019 19.314 1.791 21.105 33.631 36.488 6.368 97.592 2020 19.484 1.692 21.176 33.006 35.179 6.101 95.463 2021 21.235 0.879 22.114 32.327 34.634 5.981 95.056 2022 21.559 0.856 22.415 31.220 34.170 5.747 93.552 Source: Carver County Taxpayer Services (1)The City Direct Rate is the Urban Based Rate, not including market value levies. City Direct Rate(1)Overlapping Rates 152 165 CITY OF CHANHASSEN, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Table 7 Current Year and Nine Years Ago Percentage Percentage Taxable of Total City Taxable of Total City Capacity Capacity Capacity Capacity Taxpayer Value Rank Value Value Rank Value LFT Real Estate Company Inc $864,780 1 1.5% - Istar Minnesota LLC 569,434 2 1.0% $349,042 2 1.0% IPX West Village Station LLC 449,892 3 0.8% - Rosemount Inc 375,972 4 0.7% 309,044 3 0.9% Lake Susan Apartment Homes LLC 348,033 5 0.6% - Chanhassen Frontier LLC 311,018 6 0.5% - Centerpoint Energy Minnegasco 301,572 7 0.5% - Mission Hills Sr Housing Owner LLC 271,640 8 0.5% - 8610 LLP 265,966 9 0.5% - Market Square Assoc LTD Ptrsh 231,180 10 0.4% - IRET Properties - 367,250 1 1.1% Northern States Power Co - 267,522 4 0.8% LTF Real Estate VRDN I LLC - 239,902 5 0.7% LTF Real Estate MP II LLC - 204,916 6 0.6% Park Avenue Lofts LLC - 200,654 7 0.6% DRF Chanhassen Medical Bldg - 194,888 8 0.6% PHM/Chanhassen Inc - 194,659 9 0.6% Target Corporation T-0862 - 190,114 10 0.5% Total $3,989,487 7.0% $2,517,991 7.2% Total All Property $57,069,313 $34,797,923 Source: Carver County Taxpayer Services 20132022 153 166 - This page intentionally left blank - 154 167 CITY OF CHANHASSEN, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Table 8 Last Ten Fiscal Years Fiscal Taxes Collections Year Levied in Ended For The Percentage Subsequent Percentage December 31, Fiscal Year Amount of Levy Years Amount of Levy 2013 10,195,890$ 10,105,393$ 99.1% 20,236$ 10,125,629$ 99.3% 2014 10,334,140 10,269,518 99.4% 28,614 10,298,132 99.7% 2015 10,484,021 10,446,765 99.6% 26,753 10,473,518 99.9% 2016 10,629,621 10,564,815 99.4% 49,076 10,613,892 99.9% 2017 10,795,121 10,718,876 99.3% 21,473 10,740,349 99.5% 2018 10,913,868 10,834,344 99.3% 35,060 10,869,405 99.6% 2019 11,019,868 10,924,102 99.1% 78,511 11,002,613 99.8% 2020 11,741,368 11,656,656 99.3% 52,907 11,709,563 99.7% 2021 12,066,700 12,013,536 99.6% 72,357 12,085,582 100.2% (1) 2022 12,663,076 12,614,877 99.6% - 12,614,877 99.6% Source: City Finance Department (1) The percentage of levy collected for taxes levied for fiscal year 2021 exceeds 100% due to receipt of a Green Acres Payback of approximately $23,260. Fiscal Year of the Levy Collected Within The Total Collections to Date 155 168 CITY OF CHANHASSEN, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years General General Fiscal Obligation Revenue Tax Increment Improvement Year Bonds Bonds Bonds Bonds 2013 $10,155,000 - $705,000 $5,220,000 2014 9,550,000 - 635,000 1,705,000 2015 8,925,000 - - 1,155,000 2016 13,313,788 - - - 2017 12,627,803 - - - 2018 6,626,818 - - - 2019 5,890,833 - - - 2020 4,289,848 - - - 2021 3,913,863 - - - 2022 3,527,878 - - - Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1)The City has a Joint Powers Agreement with Carver County for the Lyman Boulevard-Phase 3 project and the pedestrian trail to the Arboretum. The City is paying its portion of those projects to Carver County through 2025 at 0% interest. (2)Information pertaining to Chanhassen Personal Income is not available, information for Carver County was included instead. (a) Information not available Governmental Activities 156 169 Table 9 Business-Type Bonded Debt Activities Per Total Carver County Other G.O. Revenue Debt Personal Debt(1)Bonds Total Debt Per Capita Income(2) - $16,324,287 $32,404,287 $1,353 0.6% - 10,045,261 21,935,261 899 0.4% - 9,256,235 19,336,235 784 0.3% - 13,926,719 27,240,507 1,092 0.4% - 23,379,318 36,007,121 1,425 0.5% - 25,671,988 32,298,806 1,238 0.4% - 23,755,499 29,646,332 1,125 0.4% 546,108 28,535,933 33,371,889 1,228 0.4% 835,037 26,311,508 31,060,408 1,182 0.4% 690,037 24,132,877 28,350,792 1,081 (a) 157 170 CITY OF CHANHASSEN, MINNESOTA RATIOS OF GENERAL BONDED DEBT OUTSTANDING Table 10 Last Ten Fiscal Years Net General General G.O. Tax G.O. G.O. Total General Less Amounts Net General Percentage Obligation Fiscal Obligation Increment Improvement Revenue Obligation Restricted for Obligation of Tax Bonded Debt Year Bonds Bonds Bonds Bonds Bonded Debt Debt Service Bonded Debt Capacity Per Capita 2013 10,155,000$ 705,000$ 5,220,000$ 16,324,287$ 32,404,287$ 10,266,366$ 22,137,921$ 63.62% 924$ 2014 9,550,000 635,000 1,705,000 10,045,261 21,935,261 3,441,810 18,493,451 50.09% 758 2015 8,925,000 - 1,155,000 9,256,235 19,336,235 3,455,171 15,881,063 38.60% 644 2016 13,313,788 - - 13,926,719 27,240,507 6,418,913 20,821,594 48.72% 834 2017 12,627,803 - - 23,379,318 36,007,121 6,413,214 29,593,907 67.23% 1,171 2018 6,626,818 - - 25,671,988 32,298,806 1,189,446 31,109,360 66.81% 1,192 2019 5,890,833 - - 23,755,499 29,646,332 1,283,606 28,362,727 56.31% 1,076 2020 4,289,848 - - 28,535,933 32,825,781 564,713 32,261,067 60.00% 1,187 2021 3,913,863 - - 26,311,508 30,225,371 594,203 29,631,168 53.63% 1,128 2022 3,527,878 - - 24,132,877 27,660,755 618,646 27,042,110 47.38% 1,031 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. 158 171 CITY OF CHANHASSEN, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11 December 31, 2022 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable*Debt Direct debt: City of Chanhassen(1) (2)$4,217,915 100.00% $4,217,915 Overlapping debt: Eastern Carver County School District 146,024,000 35.80% 52,276,592 Eden Prairie Independent School District 89,222,670 1.03% 918,994 Carver County 8,980,000 30.33% 2,723,634 Hennepin County 1,018,886,023 0.06% 611,332 Hennepin Suburban Park District 47,650,901 0.08%38,121 Hennepin Regional Railroad Authority 85,464,798 0.06%51,279 Metropolitan Council 83,059,397 0.03%24,918 Subtotal - overlapping debt 1,479,287,789 56,644,869 Total direct and overlapping debt $1,483,505,704 $60,862,784 (1)Excludes debt related to the City's business-type activities. (2)The City has a Joint Powers Agreement with Carver County for the Lyman Boulevard-Phase 3 project and the pedestrian trail to the Arboretum. Included in this total is the amount the City is paying for its share of those projects to Carver County through 2025 at 0% interest. 159 172 CITY OF CHANHASSEN, MINNESOTA LEGAL DEBT MARGIN INFORMATION Table 12 Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2022 Market value $5,041,556,300 Applicable percentage 3% Debt limit 151,246,689 Debt applicable to limit: Total bonded debt 27,660,755 Less: Special assessment bonds - Tax increment bonds - Enterprise Fund debt (24,132,877) Less: Cash and investments in G.O. Bond Debt Service Fund (644,216) 2,883,662 Legal debt margin $148,363,027 Legal Debt Margin Calculation for Fiscal Years 2013 Through 2022 Net Debt Net Debt Legal Percent of Debt Applicable Fiscal Debt Applicable to Debt Applicable to to Limit Year Population Limit Limit Margin Debt Limit Per Capita 2013 23,954 93,542,001$ 8,705,958$ 84,836,043$ 9.31% 363$ 2014 24,388 98,838,150 8,030,953 90,807,197 8.13% 329 2015 24,655 110,603,316 7,346,583 103,256,733 6.64% 298 2016 24,951 114,087,123 6,721,445 107,365,678 5.89% 269 2017 25,273 116,994,876 6,048,333 110,946,543 5.17% 239 2018 26,088 123,377,313 5,377,482 117,999,832 4.36% 206 2019 26,335 133,338,810 4,555,132 128,783,678 3.42% 173 2020 27,170 142,499,616 3,686,297 138,813,319 2.59% 136 2021 26,271 146,048,763 3,288,043 142,760,720 2.25% 125 2022 26,237 151,246,689 2,883,662 148,363,027 1.91% 110 160 173 CITY OF CHANHASSEN, MINNESOTA PLEDGED REVENUE COVERAGE Table 13 Last Ten Fiscal Years Special Fiscal Assessment Year Collections Principal Interest Coverage 2013 2,174,645$ 200,000$ 159,600$ 6.047 2014 119,060 3,515,000 103,875 0.033 2015 751,995 550,000 42,900 1.268 2016 6,298 1,155,000 26,175 0.005 2017 - - - - 2018 - - - - 2019 - - - - 2020 - - - - 2021 - - - - 2022 - - - - Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Improvement bonds with a designated revenue source of special assessments were paid off in 2016. Improvement Bonds Debt Service 161 174 CITY OF CHANHASSEN, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Table 14 Last Ten Fiscal Years Chanhassen Carver County Carver County Carver County Fiscal Chanhassen Unemployment Unemployment Personal Income Per Capita Year Population(1)Rate(2)Rate(2)(thousands)(3)Personal Income(3) 2013 23,954 4.1%4.4%$5,702,419 $59,538 2014 24,388 3.4%3.7%6,118,607 62,686 2015 24,655 2.9%3.2%6,420,876 64,878 2016 24,951 2.9%3.3%6,610,589 65,565 2017 25,273 2.9%2.9%7,029,904 68,495 2018 26,088 2.5%2.5%7,421,903 71,228 2019 26,355 2.5%2.8%7,806,837 73,785 2020 27,170 5.1%5.2%8,168,471 76,137 2021 26,271 2.7%3.0%8,751,120 80,562 2022 26,237 1.9%2.2%(a)(a) Sources:(1)Federal Census Data and Chanhassen Planning Department (2)State of Minnesota, Department of Employment and Economic Development (3)U.S. Department of Commerce, Bureau of Economic Analysis (a) Information not available Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available, information for Carver County was included instead. 162 175 CITY OF CHANHASSEN, MINNESOTA PRINCIPAL EMPLOYERS Table 15 Current Year and Nine Years Ago Percentage Percentage of Total City of Total City Employer Employees Rank Employment(1)Employees Rank Employment(1) Lifetime Fitness 1,171 1 23.5% 899 3 16.4% Instant Web Companies 718 2 14.4% 1,043 2 19.0% The Bernard Group 686 3 13.8% - Rosemount Inc 550 4 11.1% 1,667 1 30.4% Eastern Carver County Schools 464 5 9.3% 350 5 6.4% Chanhassen Dinner Theatres 350 6 7.0% 252 7 4.6% General Mills 344 7 6.9% 300 6 5.5% RR Donnelley 275 8 5.5% 368 4 6.7% Target 225 9 4.5% - Minnesota Landscape Arboretum 192 10 3.9% 242 8 4.4% Byerly's -180 9 3.3% Exlar Corporation -180 9 3.3% Total 4,975 5,481 Source: Survey by City Administration and Finance Departments. Note: This does not purport to be a comprehensive list and is based on available data obtained through a survey of individual employers. Some employers do not respond to inquiries for employment data. (1)The statistic for total City employment is not available, therefore the percentage represents the percentage of the top ten listed. 2022 2013 163 176 CITY OF CHANHASSEN, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2013 2014 2015 2016 General government 13 13 13 13 Public safety 10 10 10 10 Public works 28 28 28 29 Parks & recreation 11 11 11 12 Community development 5 5 5 6 Total 67 67 67 70 Source: City Finance Department Full-Time Equivalent Employees as of December 31, 164 177 Table 16 2017 2018 2019 2020 2021 2022 13 13 13 13 15 17 10 10 9 9 11 13 31 31 31 32 32 33 13 13 13 14 14 13 666665 73 73 72 74 78 81 Full-Time Equivalent Employees as of December 31, 165 178 CITY OF CHANHASSEN, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2013 2014 2015 2016 Building: Total permits issued 3,201 3,076 3,266 2,891 Total estimated value $89,370,069 $80,591,941 $82,145,483 $73,881,121 Election: Registered voters 16,916 16,344 16,344 17,769 Fire: Average number of employees 45 45 45 45 General government: Area of city - square miles 22.87 22.88 22.88 22.88 Average number of permanent full-time employees (excluding fire department) 67 67 67 70 Police: Average number of employees 15 15 15 15 Number of crimes - MNCJRS(1)748 838 870 313 Number of crimes - NIBRS(1) - - - 472 Water: Number of customers 7,953 8,075 8,195 8,254 Daily average consumption - gallons 2,876,383 2,542,413 2,495,868 2,565,905 Plant capacity - gallons 8,550,000 8,550,000 8,550,000 8,550,000 Source: Various City Departments (1)Crime statistics in Minnesota had been reported for the last forty years utilizing Minnesota's Criminal Justice Reporting System (MNCJRS). The Federal Bureau of Investigations has mandated that all states become National Incident Based Reporting System (NIBRS) compliant by 2019. The Carver County Sheriff's Office transitioned to NIBRS June 1, 2016. Fiscal Year 166 179 Table 17 2017 2018 2019 2020 2021 2022 2,981 3,085 3,259 4,528 6,072 3,936 $82,430,550 $136,016,287 $103,902,405 $87,160,588 $160,438,828 $87,812,422 17,769 17,480 17,480 19,245 19,245 19,182 45 45 45 45 41 37 22.88 22.88 22.88 22.88 22.88 22.88 73 73 72 74 78 81 15 15 15 15 15 15 - - - - - - 737 698 692 796 758 740 8,312 8,407 8,481 8,539 8,608 8,689 2,624,486 2,888,586 2,247,455 2,677,163 3,040,992 2,953,945 8,550,000 17,100,000 17,100,000 17,100,000 17,100,000 17,100,000 Fiscal Year 167 180 CITY OF CHANHASSEN, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2013 2014 2015 2016 Fire: Number of stations 2222 Parks and recreation: Acres of parks 401 405 405 405 Acres of open space 503 503 503 503 Number of shelter buildings 4444 Number of picnic shelters 6 7 13 15 Number of playgrounds 27 27 27 27 Number of swimming beaches 5555 Number of tennis courts 15 15 15 15 Number of outdoor pickleball courts 3666 Police: Number of stations 1111 Public works: Miles of streets 113.5 113.7 113.9 116.5 Miles of sidewalks 31.9 32.0 32.0 34.0 Miles of trails 58.6 59.2 59.9 62.4 Sewer: Miles of storm sewers 76.5 77.0 78.8 84.3 Miles of sanitary sewers 124.3 124.5 125.3 128.2 Number of lift stations 31 31 31 31 Water: Miles of watermains 139.1 139.3 140.6 145.5 Number of wells 12 12 12 13 Source: Various City Departments Fiscal Year 168 181 Table 18 2017 2018 2019 2020 2021 2022 22222 2 466 466 466 466 466 466 528 528 628 628 628 628 44444 4 18 21 21 21 21 21 27 27 28 28 28 28 55555 5 16 16 16 16 16 16 10 10 10 10 10 10 11111 1 116.5 117.0 117.1 117.3 117.3 118.1 34.0 34.0 34.0 34.0 34.0 34.1 62.4 65.0 66.4 68.7 69.1 69.1 84.5 86.8 86.9 87.7 88.7 89.7 128.2 128.6 128.8 129.0 129.7 131.5 31 31 31 31 31 32 145.5 148.8 148.9 149.7 150.1 151.0 13 13 13 13 13 13 Fiscal Year 169 182 - This page intentionally left blank - 170 183 IV. OTHER INFORMATION (UNAUDITED) 171 184 CITY OF CHANHASSEN, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 2022 Final Interest Issue Maturity Bonded indebtedness: Rates Date Date General obligation bonds: G.O. Bonds, Series 2016A 2.00%-3.00% 03/03/16 02/01/30 Total general obligation bonds Enterprise Fund debt: G.O. Water Revenue Bonds, Series 2011A 0.30%-2.15% 10/06/11 02/01/22 G.O. Water Revenue Refunding Bonds, Series 2011B 2.00%-3.00% 10/06/11 02/01/25 G.O. Water and Sewer Revenue Bonds, Series 2012A 1.00%-1.55% 11/15/12 02/01/23 G.O. Water Revenue Bonds, Series 2016A 2.00%-3.00% 03/03/16 02/01/26 G.O. Water Revenue Bonds, Series 2016B 3.50%-4.00% 12/29/16 02/01/42 G.O. Water Revenue Bonds, Series 2017A 2.00%-4.00% 02/01/17 02/01/38 G.O. Water Revenue Bonds, Series 2018A 3.00%-4.00% 03/15/18 02/01/30 G.O. Water, Sewer, and Surface Water Revenue Bonds, Series 2020A 2.00% - 3.00% 4/2/2020 2/1/2031 Total Enterprise Fund debt Total City bonded indebtedness 172 185 Exhibit 1 Payable Payable Principal Original January 1, December 31, Due in Issue Payments 2022 Issued Payments 2022 2023 $4,805,000 $1,035,000 $3,770,000 $ -$370,000 $3,400,000 $385,000 4,805,000 1,035,000 3,770,000 0 370,000 3,400,000 385,000 5,920,000 5,645,000 275,000 -275,000 - - 3,720,000 1,540,000 2,180,000 -515,000 1,665,000 535,000 1,245,000 980,000 265,000 -130,000 135,000 135,000 1,565,000 730,000 835,000 -160,000 675,000 165,000 3,630,000 -3,630,000 - - 3,630,000 - 10,000,000 855,000 9,145,000 -155,000 8,990,000 160,000 3,595,000 -2,805,000 -275,000 2,530,000 285,000 - - 6,045,000 -550,000 5,495,000 565,000 29,675,000 9,750,000 25,180,000 0 2,060,000 23,120,000 1,845,000 $34,480,000 $10,785,000 $28,950,000 $ - $2,430,000 $26,520,000 $2,230,000 Prior Years 2022 173 186 CITY OF CHANHASSEN, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY Exhibit 2 GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES December 31, 2022 G.O. Bonds, Series 2016A Bonds payable $3,400,000 Future interest payable 289,450 $3,689,450 Payments to maturity: 2023 $455,025 2024 453,325 2025 458,300 2026 460,000 2027 461,500 2028 462,800 2029 468,850 2030 469,650 $3,689,450 174 187 CITY OF CHANHASSEN, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY Exhibit 3 GENERAL OBLIGATION REVENUE BONDS December 31, 2022 G.O. Water, G.O. Water G.O. Water & G.O. Water G.O. Water G.O. Water G.O. Water Sewer & Surface Revenue Sewer Revenue Revenue Revenue Revenue Revenue Water Revenue Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series Bonds, Series 2011B 2012A 2016A 2016B 2017A 2018A 2020A Total Bonds payable $1,665,000 $135,000 $675,000 $3,630,000 $8,990,000 $2,530,000 $5,495,000 $23,120,000 Future interest payable 76,125 1,046 30,650 2,489,889 2,731,750 315,300 610,575 6,255,335 $1,741,125 $136,046 $705,650 $6,119,889 $11,721,750 $2,845,300 $6,105,575 $29,375,335 Payments to maturity: 2023 $576,925 $136,046 $179,325 $138,238 $440,500 $356,625 $702,975 $2,530,634 2024 580,575 - 174,375 138,238 434,100 357,925 700,800 2,386,013 2025 583,625 - 175,200 138,238 432,600 354,000 703,100 2,386,763 2026 - - 176,750 138,238 430,900 354,850 704,800 1,805,538 2027 - - - 138,238 843,575 355,400 700,975 2,038,188 2028 - - - 138,238 845,425 355,650 701,625 2,040,938 2029 - - - 138,238 846,675 355,600 705,050 2,045,563 2030 - - - 138,238 847,325 355,250 701,450 2,042,263 2031 - - - 138,238 842,450 - 484,800 1,465,488 2032 - - - 138,238 842,050 - - 980,288 2033 - - - 138,238 845,975 - - 984,213 2034 - - - 138,238 844,225 - - 982,463 2035 - - - 138,238 841,875 - - 980,113 2036 - - - 138,238 843,850 - - 982,088 2037 - - - 138,238 838,150 - - 976,388 2038 - - - 275,788 702,075 - - 977,863 2039 - - - 943,900 - - - 943,900 2040 - - - 943,431 - - - 943,431 2041 - - - 939,700 - - - 939,700 2042 - - - 943,500 - - - 943,500 $1,741,125 $136,046 $705,650 $6,119,889 $11,721,750 $2,845,300 6,105,575 $29,375,335 175 188 CITY OF CHANHASSEN, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES Exhibit 4 December 31, 2022 G.O. Capital Years of Improvement Levy/ Plan Bonds Collection of 2008A 2022/2023 $482,213 2023/2024 485,520 2024/2025 487,410 2025/2026 489,090 2026/2027 490,560 2027/2028 497,070 2028/2029 498,015 $3,429,878 176 189 55 5th Street East, Suite 1400, St. Paul, MN, 55101      www.redpathcpas.com COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE To the Honorable Mayor and Members of the City Council City of Chanhassen, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chanhassen, Minnesota (the City) for the year ended December 31, 2022. 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 April 27, 2023. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters 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. As described in Note 18 to the financial statements, the City adopted new accounting guidance for 2022, Governmental Accounting Standards Board Statement No. 87, Leases. 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 City’s financial statements are the estimated present value of the lease receivable, and the estimates used to calculate the net pension liability, the pension related deferred outflows and inflows of resources, and pension expense. These estimates are based on the City’s estimated incremental borrowing rate as of January 1, 2022 and actuarial studies. We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole. 190 City of Chanhassen, Minnesota Communication With Those Charged With Governance Page 2 Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Determining sensitivity is subjective, however, we believe the disclosure most likely to be considered sensitive is Note 7 – Long-Term Liabilities. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no corrected or uncorrected misstatements identified during the audit. Disagreements with Management For purposes of this letter, a disagreement with management is 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 Representations We have requested certain representations from management that are included in the management representation letter dated June 28, 2023. 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. 191 City of Chanhassen, Minnesota Communication With Those Charged With Governance Page 3 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 management’s discussion and analysis, the budgetary comparison schedule, and the schedules of OPEB and pension information, which are required supplementary information (RSI) 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 combining and individual nonmajor 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 introductory, statistical, and other information sections, which accompany the financial statements but are not RSI. Such information has not been subjected to auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. 192 City of Chanhassen, Minnesota Communication With Those Charged With Governance Page 4 Restriction on Use This information is intended solely for the information and use of the City Council and management of the City of Chanhassen, Minnesota and is not intended to be, and should not be, used by anyone other than these specified parties. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 28, 2023 193 55 5th Street East, Suite 1400, St. Paul, MN, 55101      www.redpathcpas.com 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 To the Honorable Mayor and Members of the City Council City of Chanhassen, 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, each major fund, and the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City of Chanhassen, Minnesota's basic financial statements, and have issued our report thereon dated June 28, 2023. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Chanhassen, Minnesota's internal control over financial reporting (internal control) as a basis for designing 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 of Chanhassen, Minnesota's internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Chanhassen, Minnesota'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. 194 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 or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Chanhassen, Minnesota’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 financial statements. 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. 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 of Chanhassen, Minnesota’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 of Chanhassen, Minnesota’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 28, 2023 195 55 5th Street East, Suite 1400, St. Paul, MN, 55101      www.redpathcpas.com MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of the City Council City of Chanhassen, 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, each major fund, and the aggregate remaining fund information of the City of Chanhassen, Minnesota as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City of Chanhassen, Minnesota’s basic financial statements, and have issued our report thereon dated June 28, 2023. In connection with our audit, nothing came to our attention that caused us to believe that the City of Chanhassen, Minnesota failed to comply with the provisions of the contracting – bid laws, depositories of public funds and public 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 Minnesota Statute § 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 of Chanhassen, Minnesota’s noncompliance with the above referenced provisions, insofar as they relate to accounting matters. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 28, 2023 196 City Council Item July 17, 2023 Item Organizational Study/Staffing Study Presentation, Raftelis File No.Item No: A.2 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Laurie Hokkanen, City Manager Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority Operational Excellence SUMMARY BACKGROUND DISCUSSION The city hired Raftelis to conduct an Organizational Assessment. The need for the study was driven by three primary factors: Understand new facility needs: As the city is building a new City Hall, what are the ultimate capacity needs of the building? Requests for additional staffing from Carver County Sheriff's Office Continuing trend of retirements and other attrition Jonathan Ingram, Senior Manager, will attend the work session virtually to present an overview of the 197 report. BUDGET RECOMMENDATION ATTACHMENTS City of Chanhassen Organizational Assessment Final Report 2023 198 CITY OF Chanhassen Organizational Assessment Final Report / July 2023 199 CITY OF CHANHASSEN ORGAN IZATIONAL ASSESSMENT 200 19 Garfield Place, Suite 500 Cincinnati, OH 45202 www.raftelis.co m July 11, 2023 Laurie Hokkanen, City Manager City of Chanhassen 7700 Market Boulevard Chanhassen, MN 55137 Subject: Organizational Assessment Dear Laurie Hokkanen, We are pleased to present this Organizational Assessment of the City of Chanhassen. This assessment includes analysis of staff perceptions, review of available City data, examination of staff roles and responsibilities, organizational structures and reporting relationships, and evaluation of key processes and service delivery models. The recommendations in this report are intended to maximize the City’s ability to provide high-quality, cost-effective services to the community and to plan for the City’s future resource needs. This report makes recommendations on staffing needs, as well as process improvements and other operational changes to maximize staf f efficiency and cultivate a productive, positive work environment. Thank you for this opportunity to serve the City of Chanhassen. We are confident that the recommendations in this report will provide a useful framework for the City to address current and future needs. Sincerely, Jonathan Ingram Senior Manager 201 CITY OF CHANHASSEN ORGANIZATIONAL ASSESSMENT This page intentionally left blank to facilitate two-sided printing. 202 CITY OF CHANHASSEN ORGANIZATIONAL ASSESSMENT Table of Contents EXECUTIVE SUMMARY ........................................................................ 1 INTRODUCTION ..................................................................................... 5 BACKGROUND AND METHODOLOGY .............................................................. 5 ABOUT CHANHASSEN ....................................................................................... 5 Structure ...........................................................................................................................6 Staffing..............................................................................................................................7 Budget...............................................................................................................................8 ANALYSIS AND RECOMMENDATIONS............................................... 9 CITY-WIDE RECOMMENDATIONS ..................................................................... 9 Management and Performance .......................................................................................9 City Hall........................................................................................................................... 12 ADMINISTRATION ............................................................................................. 14 Communications ............................................................................................................ 15 Economic Development ................................................................................................ 16 FINANCE ............................................................................................................ 17 INFORMATION TECHNOLOGY ......................................................................... 19 COMMUNITY DEVELOPMENT .......................................................................... 20 PARKS & RECREATION.................................................................................... 23 PUBLIC WORKS ................................................................................................ 25 LAW ENFORCEMENT ....................................................................................... 29 CONCLUSION ...................................................................................... 35 203 CITY OF CHANHASSEN ORGANIZATIONAL ASSESSMENT List of Tables Table 1: List of Report Recommendations ...............................................................................2 Table 2: Staffing Cost Estimates ...............................................................................................3 Table 3: Authorized Staffing Level by Function, FY2019 – FY2023 ........................................8 Table 4: General Fund Expenditures by Category, FY2019 – FY2023 ....................................8 Table 5: Projection of Chanhassen’s City Hall Staffing in 2045 by Full Time Equivalent Positions ................................................................................................................................... 13 Table 6: Example Work Planning and Resource Identification Template ............................ 26 Table 7: Patrol Staffing Required to Meet 33% Proactive Policing Service Level Target ... 31 Table 8: Patrol Deputy Staffing Required to Meet Proposed Shift Minimums..................... 32 Table 9: Staffing Cost Estimates ............................................................................................. 35 Table 10: Sample Metrics by Category and Function ............................................................ 39 Table 11: Recommended Parks Maintenance Service Standards ........................................ 43 List of Figures Figure 1: City of Chanhassen Population, 2000-2021 ..............................................................5 Figure 2: Chanhassen Organizational Chart, FY2022 ..............................................................7 Figure 3: Recommended Chanhassen Organizational Chart ............................................... 12 Figure 4: Average Reactive Patrol Time per Hour, 2022 ....................................................... 30 List of Appendices APPENDIX A: ............................................................................................................................ 37 APPENDIX B: ............................................................................................................................ 41 204 O RGANIZATIONAL ASSESSMENT 1 Executive Summary The City of Chanhassen (City) contracted with Raftelis to complete an operational study of all departments across the organization.1 The goal of this assessment was to review the operations, processes, procedures, and resource levels of the City’s Departments, as well as identify what opportunities exist to enhance the efficiency and effectiveness of service delivery and position the City to meet anticipated growth. To complete this assessment, the project team engaged with City staff through individual and group interviews to develop a thorough understanding of current operations and the strengths and challenges associated with daily service delivery. Then City-provided workload and performance data was analyzed, where available, and each Department's current operation was compared against best practices to define a series of recommendations for service enhancement. The assessment yielded several important conclusions. First, it is clear that staff are dedicated and proud of the work they do for the community. In each Department, staff expressed pride in the important role they play in maintaining the City’s critical infrastructure. There is a sense of ownership and commitment to public service across the organization. However, there are opportunities for improvement both Citywide and for individual departments. The City’s key focus should be on tracking metrics and setting service delivery standards to establish a baseline for measuring workload and defining success. Setting these expectations can help increase and support communication between departments by developing a shared understanding of workflow timelines and service delivery expectations. This is an important component in providing quality customer service to those in the community, as well as for determining appropriate staffing and resource levels in each department. Specific opportunities for setting performance expectations discussed in this report include: • Implementing and tracking performance expectations for the plan review process across all relevant departments • Establishing comprehensive preventive maintenance schedules for all City assets and tracking completion and timeliness of these schedules to ensure that preventive maintenance needs are being met • Connecting with the community to understand their priorities for law enforcement, and developing performance expectations for the contracted Carver County Sheriff staff based on these priorities and public safety best practices Another important step moving forward should be for the City to define and reinforce the roles of two relatively new positions in City Administration: the Communications Manager and Economic Development Manager. The intention of both positions is to centralize functions that historically have been handled largely by Departments in a distributed model. However, there has been confusion among Departments about how their work aligns with these new functions. The Communications Manager and Economic Development Manager positions are both assets to the City, but their work needs to be well defined and communicated to the organization. Specific work plans for each function should be established that define each function’s path moving forward, as well as how they can work effectively with other Departments to achieve shared goals. There is also a need to enhance intentionality in the City’s software investments. To address the current challenges and position themselves for future growth, the City should look at utilizing software programs that increase seamless 1 With the exception of the Chanhassen Fire Department. 205 2 CITY OF CHANHASSEN transactions and fluid integration across departments. Staff should be fully trained in all aspects of current software programs and using them to their full capacity to reduce manual processes. Additionally, there is an opportunity to change the City’s current contract with Carver County for Law Enforcement services to set standards for community engagement. The City should work to understand community priorities for law enforcement and their service level expectations. These expectations, along with resource limitations and public safety best practices, should ultimately drive staffing needs. An analysis of calls for service indicates that the patrol function is appropriately staffed. However, there are opportunities to increase patrol capacity by defining patrol sergeants as field supervisors who respond to calls for service as needed, and by consolidating the roles of Desk Sergeant and Lieutenant. The City should establish performance metrics for law enforcement services and require regular reporting from the Carver County Sheriff’s Office on these metrics to ensure that service levels remain appropriate. The recommendations and analysis detailed in this report will help the City improve communications, maintenance, operations, and the service provided to the Chanhassen community and support data-driven decision-making. The following table lists the recommendations discussed in more detail in this report. Table 1: List of Report Recommendations Number Recommendation Citywide 1 Define service standards for each City function and establish metrics to track how effectively those standards are met. 2 Restructure the City's reporting relationships to reduce span of control for City Manager. 3 Design a new City Hall facility appropriate for meeting the City’s future needs. Administration 4 Improve coordination and consistency of communications from the City by formalizing communications processes and protocols.Error! Reference source not found. 5 Create a three-year Economic Development Plan and communicate the plan and role of the Economic Development Manager to staff. Finance 6 Continue with the planned formal documentation of financial procedures. 7 Outsource the printing and mailing of utility bills. Information Technology 8 Develop a technology strategic plan and a standardized process for requesting and evaluating software solutions. 9 Fully leverage IT investments by increasing training for City staff. Community Development 10 Fully implement electronic plan review across all relevant departments and set internal expectations for development review process times. 11 Relocate the Environmental Resource Specialist position to the Parks and Recreation Department. 12 Leave one Planner position vacant but retain funding for the position in the budget. Parks & Recreation 13 Ensure park maintenance has sufficient capacity to meet service level expectations and manage growing inventory. 14 Create a Park Maintenance Operator position after tracking service levels and perfo rmance data. 206 ORGANIZATIONAL ASSESSMENT 3 Number Recommendation 15 Develop a five-to-ten-year Parks & Recreation facilities investment plan and reengage the Parks Referendum Task Force to prioritize facility investments and identify a funding approach . Public Works 16 Establish preventive maintenance schedules for all assets and track workload by type to understand staffing needs. 17 Add a Facilities Maintenance Technician to support preventative facilities maintenance . 18 Add one to two Utility Technician positions focusing on water distribution and wastewater collection preventative maintenance programs. 19 Add an Engineering Technician position to provide capacity for asset management and project management. Law Enforcement 20 Determine policing expectations and service level standards for the Chanhassen community. 21 Maintain current patrol deputy staffing levels. 22 Redefine role of sergeants as field supervisors and back -up call-takers. 23 Consolidate roles of Desk Sergeant and Lieutenant. 24 Create a recurring performance measurement and reporting process from the Sheriff’s Office to the City. Several of the recommendations discuss adding new positions to support City operations. It is important to note that these staffing recommendations only reflect current needs, and that additional staff may be required as the City grows. Workload and performance metrics should be tracked and regularly reported, and this data should be used to assess future staffing and resource needs. The following table summarizes the projected cost impact of the additional positions in the first year. The positions are listed in order of priority, based on their impact on community health and safety and on the City’s ability to provide core services. It may take multiple years to add these positions, but the initial focus is on building asset management planning and project implementation capacity at the infrastructure management level. Table 2: Staffing Cost Estimates Position Title Number of Positions Estimated Salary Costs Estimated Benefits Costs2 Total Estimated Staffing Costs Utility Technician 1 - 2 $65,000 - $164,000 $19,500 - $49,200 $84,500 - $213,200 Engineering Technician (Asset Management) 1 $57,000 - $85,000 $17,100 - $25,500 $74,100 - $110,500 Facilities Maintenance Technician 1 $56,000 - $71,000 $16,800 - $21,300 $72,800 - $92,300 Park Maintenance Operator 1 $56,000 - $71,000 $16,800 - $21,300 $72,800 - $92,300 Total 4 - 5 $234,000 - $391,000 $70,200 - $117,300 $304,200 - $508,300 2 Assumed to be 30% of salary costs. 207 4 CITY OF CHANHASSEN This page intentionally left blank to facilitate two-sided printing. 208 ORGANIZATIONAL ASSESSMENT 5 Introduction Background and Methodology In October 2022, the City of Chanhassen engaged Raftelis to conduct an Organizational Assessment of City government, for all departments except Fire. The purpose of the study was to determine whether the City is structured and staffed to effectively deliver services to the community, identify space needs for a new City Hall, and position the City effectively to meet anticipated growth. To accomplish this work, members of the project team conducted interviews with 37 City staff, including department directors, supervisors, and key staff involved in operations. Additionally, the project team reviewed and analyzed documents and materials provided by City staff, such as revenue and expenditure data, project plans, and staffing and operational information from each department. This report details the findings, analysis, and recommendations that, once implemented, will assist the City in developing and improving its policies and processes and enhancing the delivery of services to the Chanhassen community. About Chanhassen The City of Chanhassen is located in Carver and Hennepin Counties, Minnesota, approximately 20 miles southwest of the City of Minneapolis. The City’s population is 26,037, as of the US Census’s 2021 Population Estimates Program. This represents a 13% increase from the 2010 Census (22,952) and a 28% increase from the 2010 Census (20,329), as illustrated in the following figure. Figure 1: City of Chanhassen Population, 2000-2021 The median age in Chanhassen is 39.6, as reported in the 2020 American Community Survey. The median household income is $124,184 and the median home value is $400,300. Only 3% of residents fall below the federal poverty line. 209 6 CITY OF CHANHASSEN Approximately 87% of the population identifies as White, 6% identifies as Asian, 2% identifies as Black, 4% identify as Two or More Races, and 4% identifies as Hispanic or Latino. Nearly all (99%) of residents aged 25 or older have graduated high school, and 63% have a bachelor’s degree or higher. According to the City of Chanhassen’s 2021 Comprehensive Annual Financial Report, the City’s ten largest employers are:3 • Lifetime Fitness • Rosemount Inc. (manufacturer of measurement instrumentation) • Instant Web Companies (direct mail and marketing) • The Bernard Group (visual merchandising) • Eastern Carver County Schools • RR Donnelley (marketing, business communications, and printing) • General Mills • Chanhassen Dinner Theaters • Minnesota Landscape Arboretum • Target STRUCTURE The City operates under a Council-Manager form of government, with an elected Mayor and four elected at-large Councilmembers. All serve staggered four-year terms and elected positions are nonpartisan. The Mayor and Council are responsible for overseeing the finances and policy of the City and appointing the City Manager, contracted City Attorney, and members of City advisory commissions. The City Manager is responsible for day-to-day administration of the City, and for enacting the Council’s direction. The Manager is responsible for appointing and managing all other City staff. The City Manager directly oversees all City Departments, supported by one Assistant City Manager. The following figure illustrates the City’s organizational structure as of Fiscal Year (FY) 2022. It is important to note that, while the Fire Department is shown in the figure below, it is not part of this analysis. 3 “2021 Annual Comprehensive Financial Report.” City of Chanhassen, http://67.63.229.140/WebLink/docview.aspx?dbid=0&id=987304&cr=1. 210 ORGAN IZATIONAL ASSESSMENT 7 City Council City Manager Community Development Parks & Recreation Finance Fire Public Works Information Technology Commissions City Attorney (Contracted) Assistant City Manager Economic Development Communication Administration Law Enforcement Figure 2: Chanhassen Organizational Chart, FY2022 STAFFING Total staffing levels increased by 18% between FY2019 and FY2023. The area with the largest increase in recent years has been the General Government function, which includes Administration, Finance, and Information Technology (IT). New positions include the Communications Manager, a Communications Specialist, the Economic Development Manager, and a Utility Billing Clerk. In FY2022, the City began budgeting Building Inspection positions in the Public Safety function, which is why the Public Safety function shows a significant increase in staffing while the Community Development function shows a significant decrease. 211 8 CITY OF CHANHASSEN Table 3: Authorized Staffing Level by Function, FY2019 – FY2023 BUDGET The following table summarizes the City’s General Fund expenditures for the past five fiscal years. Budgeted General Fund expenditures in FY2023 are 28% higher than FY2019 actuals, mostly driven by increases in staffing as discussed in the section above. Again, the significant decrease in Community Development expenditures and significant increase in Public Safety expenditures is largely due to the City budgeting Building Inspection positions out of Public Safety rather than Community Development. Table 4: General Fund Expenditures by Category, FY2019 – FY2023 Category FY2019 Actual FY2020 Actual FY2021 Actual FY 2022 Budget FY2023 Budget Percent Change FY2019 to FY2023 General Government $2,190,982 $2,272,604 $2,630,188 $3,232,968 $3,495,973 60% Community Development $1,267,757 $573,498 $590,597 $587,581 $617,617 -51% Parks & Recreation $2,252,891 $1,842,466 $2,085,143 $2,365,959 $2,678,850 19% Public Safety $2,991,352 $3,765,520 $3,822,323 $4,566,659 $5,116,961 71% Public Works & Engineering $2,638,654 $2,621,483 $2,736,050 $2,697,379 $2,603,669 -1% Total Expenditures $11,341,634 $11,075,571 $11,864,301 $13,450,546 $14,513,070 28% Function FY2019 FY2020 FY2021 FY2022 FY2023 Percent Change FY2019 to FY2023 General Government 13 13 15 17 17 31% Public Safety 2 2 4 13 16 700% Public Works 29 30 30 32 33 14% Parks & Recreation 13 14 14 13 13 0% Community Development 15 15 15 6 6 -60% Total 72 74 78 81 85 18% 212 ORGANIZATIONAL ASSESSMENT 9 Analysis and Recommendations The analysis and recommendations detailed below define the process, technology, and resource requirements necessary to help the City of Chanhassen meet service level targets within the framework of available resources. There are some areas where additional staffing would be beneficial, especially in the Parks & Recreation and Public Works Departments, where current staffing capacity is not sufficient to keep up with the workload. Specific recommendations to meet these staffing needs are discussed further in the report. A common theme across different Departments and operations is that specific service levels are not defined for many City functions. Staffing levels are often a policy decision, driven by factors like resources, best practices, and a City’s decisions on what to prioritize. Without defined service levels, and without established metrics that can help track whether service levels are being achieved, there is often limited information on whether staffing is appropriate. For that reason, there is a Citywide need for the City to define and track these metrics and use the data to make future staffing and resource decisions. The recommendations included in this report identify opportunities to improve the effectiveness of existing staffing resources. One opportunity is to define specific goals for the City’s communication, economic development, parks, and technology programs, to ensure that resources are being used effectively to advance those plans. The recommendations also address opportunities to enhance the use of technology tools, such as greater adoption of plan review software. These recommendations are organized by department and the impact on the specific workgroup or division is identified within each recommendation. City-Wide Recommendations This section includes recommendations that impact the City as a whole, rather than one specific department. Topics discussed include performance management, the City’s organizational structure, and space needs in the planned City Hall. MANAGEMENT AND PERFORMANCE Recommendation 1: Define service standards for each City function and establish metrics to track how effectively those standards are met. Issue: Service level standards and performance metrics to track performance against those standards are an important tool for organizations to understand whether they are operating effectively. Service standards have the benefit of both managing customer expectations and clarifying to staff what is expected of them. For example, if an organization has a service standard that all requests for technology support should be responded to within four hours, it gives internal customers requesting that support an idea of when their request will be addressed, and it allows the technology team to track how many requests meet that service standard to help understand whether their performance is meeting expectations. These standards should be supported by a robust performance management system. Performance management is designed for policymakers, chief administrative officers, department heads, and program managers to assess whether 213 10 CITY OF CHANHASSEN a program or service is obtaining desired or expected results. It also creates a clear process of accountability and transparency, and limits opportunities for miscommunication and assumption. The City has already established a foundation for setting these service standards by adopting its 2021-2024 Strategic Plan. The Plan identifies specific targets for each of its six strategic priorities, and details metrics that will help track progress towards those targets.4 However, these targets and metrics only cover some aspects of City operations. Many functions do not have specific performance management programs in place, which means that there is no clearly defined way to understand whether these areas are operating effectively and whether they are staffed and resourced appropriately. In addition, performance metrics at the Strategic Plan level, while an important communication tool, are generally high level and may not be detailed enough to allow frontline supervisors and managers to understand their team's performance in all areas. Recommendation: The City should establish a performance management system with clear service standards for each function and clear metrics that can be tracked and reported. Individual recommendations throughout this report identify specific opportunities to adopt service standards. The standards defined in these recommendations should be part of a robust performance management system with specific metrics for each functional area. Generally, performance measures fall into three broad categories, each of which provides significant insights. These categories are: • Workload Measures: These measures define the amount of work that a team is doing in a particular area. Examples could include the number of inspections conducted or the number of miles of streets plowed. • Efficiency Measures: These measures define the relative cost of doing particular tasks. Examples could include the cost per million gallons of water produced or the cost per square foot of facility maintenance. • Outcome Measures: These measures define the impact of the City’s operations. Examples could include satisfaction ratings on a community survey, facility condition ratings, or number of social media followers. It is important that each metric be chosen carefully; the purpose of the metrics is not to overwhelm staff with data, but to collect the information most important for making data -driven decisions. Metrics should be clearly defined and trackable, without requiring significant staff time to gather data. Finally, performance measures should become part of the organization’s regular dialogue about program goals, budget allocations, and accomplishments. Metrics should be regularly reported at all levels of the organization, and used as a tool during budget development to ensure that resources are being allocated appropriately. Appendix A to this report includes examples of performance measures for City functions. Recommendation 2: Restructure the City's reporting relationships to reduce span of control for City Manager. Issue: In the City's current organizational structure, all functions except for Administration and Communications report directly to the City Manager, resulting in a 1:9 supervisor to subordinate ratio. Multiple factors influence the optimal span of control within an organization. Organizations/units with spans of control ranging between 1:4 and 1:7 supervisor to subordinate ratios are typically more able to engage in consistent and sound management practices and are best equipped to responsively manage dynamic work environments. Higher spans of control exceeding a 1:7 supervisor to subordinate ratios can be effective in organizations that engage in consistent repetitive tasks with well- 4 “Strategic Plan, 2021-2024.” City of Chanhassen, www.chanhassenmn.gov/home/showpublisheddocument/1847/637879503366570000. 214 ORGANIZATIONAL ASSESSMENT 11 defined processes. The work of the City Manager does not fall into this latter category; it is dynamic, requiring attention to community, political, and organizational priorities. Though the current span of control is manageable, there are opportunities to decrease the City Manager’s span of control to provide greater strategic focus and utilize other staff to support organizational initiatives. Higher spans of control can result in cost savings, but also can limit the amount of managerial attention available to employees and performance. The Revenue and Collection Officer is tasked with significant ancillary duties outside of supervision and management This large span of control impacts the City Manager's ability to support strategic initiatives, work with regional partners, and engage with the City Council. In addition, a large span of control also reduces the availability of the City Manager to provide day-to-day oversight and support for the staff reporting to them. Limited access due to the many individuals competing for available time is not uncommon for City Manager positions, but it creates an issue for staff who report to the City Manager and need day-to-day supervision. Recommendation: To create additional capacity for strategic initiatives and improve the day-to-day support for all functions within the City of Chanhassen, the City should restructure reporting relationships to reduce the City Manager's span of control. Reducing the number of direct reports for the City Manager will create new capacity for the City Manager to focus on strategic initiatives and Council priorities. This restructuring should be done by relocating three functions to different supervisors: • Relocate the Information Technology Department to report to the Assistant City Manager. Currently, the Assistant City Manager only has two direct reports: the Communications Manager and the City Clerk, who supervises the City's Administration function. Adding the Information Technology Department to the Assistant City Manager's portfolio would align all internal service functions, except for the Finance Department. It is appropriate for the Finance Department to remain under the City Manager’s direct supervision, because one of the City Manager’s key responsibilities is close oversight of the City’s budget. • Relocate the Economic Development Manager to report to the Community Development Director. The Economic Development Manager is a new position and will require significant support as it stands up the economic development function for the City. The position will also need to work closely with Community Development staff. Aligning the economic development function as part of the Community Development Department will improve collaboration and coordination. • Assign responsibility for managing the Law Enforcement Contract with the Carver County Sheriff's Office to the Fire Chief. As will be discussed in the Law Enforcement section of this report, there are changes recommended to ensure that the City receives the best possible public safety support from the Carver County Sheriff's Office. The Fire Chief must work closely with the Sheriff's Office and is the lead City staff member in emergency management or incident command scenarios, so they have knowledge of Law Enforcement operations and serve as the City’s primary point of contact in emergency situations. This synergy and overlap in effort puts the Fire Chief in a strong position to manage the details of the law enforcement contract, under the direction of the City Manager. Implementing these changes will reduce the span of control for the City Manager from nine direct reports to six direct reports. The following figure shows the recommended organizational chart with relocated functions shaded in blue. 215 12 CITY OF CHANHASSEN City Council City Manager Public Works Community Development Parks & Recreation Economic Development Information Technology Commissions City Attorney (Contracted) Assistant City Manager Finance Communications Administration Fire Law Enforcement Figure 3: Recommended Chanhassen Organizational Chart CITY HALL Recommendation 3: Design a new City Hall facility appropriate for meeting the City’s future needs. Issue: Chanhassen’s current City Hall was built in 1981, and the City is quickly outgrowing the current space. Additionally, staff report that the design of the building is confusing for both staff and visitors, impeding the ability for staff to collaborate with each other, and for members of the community to find the support they are looking for. The City is aware of these challenges. In May 2023, the City Council approved a contract with an architectural firm to design a new City Hall building and other improvements to the City’s Civic Campus. The new building is expected to house the following City functions: • City Council chambers • City Administration • Communications • IT • Planning • Building • Finance 216 ORGANIZAT IONAL ASSESSMENT 13 • Engineering • Parks and Recreation (administrative and recreation staff only) • Fire (administrative staff only) • Law Enforcement • A public Senior Center Recommendation: The construction of a new City Hall facility is an opportunity to create a space that meets both Chanhassen’s current needs and its projected needs in the future. To understand what those projected needs might be, the project team first considered Chanhassen’s future population growth. The City’s 2040 Comprehensive Plan projects a population of 37,100 as of 2040, up from 26,224 as of the 2022 Census Population Estimates Program. If the City maintains the same growth rate, it will have a population of 40,121 by 2045, approximately 20 years after the new building is completed. The project team estimated staffing needs for this larger population by escalating current staffing based on population growth and by researching authorized FY2023 staffing levels at Minnesota cities with a current population of approximately 40,000 (Maplewood, Shakopee, Cottage Grove, and Mankato). Based on these projections, the City can expect to have approximately 68 staff working out of the City Hall facility by 2025. The following table compares these figures. Table 5: Projection of Chanhassen’s City Hall Staffing in 2045 by Full Time Equivalent Positions Function 2022 Staffing 2044 Staffing at Population Escalation Maplewood 2023 Shakopee 2023 Cottage Grove 2023 Mankato 2023 Average Administration and Communications 6 9 11 13 8 10 10 Finance 5 8 4 4 6 8 6 IT 3 5 4 5 3 8 5 Planning and Building 13 20 12 15 17 10 15 Engineering 9 14 6 8 6 11 9 Parks and Recreation 4 6 4 4 4 N/A5 5 Fire 3 5 4 3 3 N/A6 4 Law Enforcement7 8.58 13 N/A N/A N/A N/A 13 Total 51.5 80 45 52 47 47 67 The Metropolitan Council reports an average of 600 feet of facility space per position, including related storage and support space needs.9 For a staff of 67, this translates to a facility space of 40,200 square feet, not including the 5 Part of the Public Works Department. 6 Part of the Public Safety Department. 7 All peers have in-house, rather than contracted, law enforcement functions. 8 There are 15 positions total, but all but two are field positions, and are counted as half a position each for space planning purposes. 9 “Measuring Employment.” Metropolitan Council, November 2016, https://metrocouncil.org/Handbook/Files/Resources/Fact-Sheet/ECONOMIC-COMPETITIVENESS/How-to- Measure-Employment-Intensity-and-Capacity.aspx. 217 14 CITY OF CHANHASSEN Council chambers or the Senior Center space. In comparison, the entire current City Hall is approximately 31,600 square feet. A number of factors could influence the projected square footage needs. For example, if the City opts to move to an in-house police model at some point, there would likely be a need for a separate Police Station and those 24 positions would no longer be in City Hall. The population using the Senior Center could increase over this time. The Metropolitan Council projects that the regional population aged 75 and older will grow by 145% between 2020 and 2050, and that the population aged 65 to 74 will grow by 44%.10 To understand other needs for the facility, it is important for the City to develop a robust engagement process to understand staff’s priorities for the new building. The facility should also be designed to group staff based on function. Groups that collaborate often, such as Planning, Building, and Engineering, should be housed closely together to facilitate close working relationships. However, this general framework can be used a basis for initial design efforts and discussions with the City’s selected architectural firm. Administration The Administration Department is responsible for overseeing general City operations and supporting the City Council, as well as maintaining official City records, supporting economic development, managing internal and external communications, and supporting City technology. The Department is led by the City Manager, who is responsible for overseeing City operations. The Manager supervises all department heads and provides leadership, direction, and guidance to all City departments. They also oversee two positions within Administration: the Assistant City Manager and the Economic Development Manager. The Assistant City Manager supports the City Manager in overseeing City and Department operations and is also responsible for all Human Resources (HR) functions for the City, including hiring, dis cipline, and classification and compensation. Additionally, the Assistant City Manager supervises the Communications Manager and City Clerk. The Communications Manager, a position created in 2021, is responsible for all City internal and external communications, including handling media inquiries, issuing press releases, and maintaining the City’s website and social media. The City Clerk is responsible for preparing agendas and minutes for City Council meetings and providing administrative support to the Council. The Clerk’s Office also maintains City records, responds to open records requests, and manages the application process for Liquor, Massage Therapy, and Gambling licenses. Finally, the Clerk’s Office updates the City code of ordinances and administers City elections. The Economic Development Manager is another relatively new position, created in 2022. The position is responsible for implementation of economic development programs that aim to increase business retention, expand and attract businesses, cultivate job growth, and expand the tax base. The Administration Department is generally staffed and structured appropriately. The City’s recent investment in dedicated Communications and Economic Development positions were appropriate for a growing c ommunity, as these positions will help standardize communications with businesses and community members and create a platform for more substantial engagement. The recommendations in this section focus on opportunities for the City to maximize the value of these investments. 10 “Met Council Forecasts Steady Regional Growth.” Metropolitan Council, July 28, 2021, https://metrocouncil.org/News- Events/Council-News/Newsletters/Regional-forecast- 2021.aspx#:~:text=From%202020%20to%202050%2C%20the,grow%20only%20modestly%3B%2015%25 . 218 ORGANIZATIONAL ASSESSMENT 15 COMMUNICATIONS Recommendation 4: Improve coordination and consistency of communications from the City by formalizing communications processes and protocols. Issue: Chanhassen’s Communications function is relatively new. The Communications Manager position was created in 2021, and now supervises two additional communications positions . Prior to creation of this centralized function, the City Clerk was responsible for overseeing City communication functions, and many departments managed their own communications. This transition was fairly recent and, there remains confusion among some staff over what information should be approved by the Communications Manager, the timing of requests for updates to the City website, and other communications issues. As a result, information is still being disseminated in a number of ways, without central coordination through the Communications Manager. Lack of a cohesive message divides the City and creates the risk of misinformation being disseminated to the community. Recommendation: One important step is for the Communications Manager to work with City Administration to develop a formal scope for the Communications function. The City has the advantage of significant resources and staffing capacity dedicated to communications, more than most peer communities. The similarly sized cities of Chaska and Rosemount, for example, only have one communications position each, and the City of Oakdale has two. Chanhassen, in contrast, has three positions dedicated entirely to communications, which creates capacity for a comprehensive, centralized communications program. The City should develop a written communications plan that clearly defines the services that the Communications function will provide, including: • Centralized social media management • Centralized management of website content • Media relations • Graphic design and content development for any City materials • Digital media management (photos and videos) • Coordination of public information and public engagement campaigns, including coordination of regular community surveys • Public relations and media relations training and support for City officials • Development and management of City brands • Emergency communication planning and management • Internal communications management (e.g., support for City officials on all-staff communications, communication training for managers) After the scope of work for the function has been established, the City should develop formal service levels for each function in the scope, as well as defined procedures for how public communications should be reviewed and approved. There should be clear standards in place for developing and approving all public-facing content to ensure consistent and cohesive messaging. After these standards are developed, the Communications staff should also be responsible for training staff on these new standards. Department heads should be thoroughly informed of the new guidelines and be expected to hold their staff accountable for abiding by these communications standards. The success of these efforts relies on a shared understanding across the entire City of the importance of a centralized Communications function, as well as strong coordination between Communications and other City staff. It is important for City leaders to effectively communicate the value of the function to other departments. Coordinated, strategic communications from a centralized source in the organization increases transparency, reduces risk, and exhibits consistency. It ensures appropriate relevance and content is included in messaging to the community and 219 16 CITY OF CHANHASSEN that the message is written in a way that’s appropriate for the audience. Creating a centralized source of information also gives the Communications function a more strategic, higher line of sight and gives Communications staff access to the most timely and correct information, which reduces confusion, redundancies and risk of error. Another important element to the success of the centralized Communications function is close collaboration between the Communications team and staff in each department, in a way that takes into account each department’s goals as well as the need for centralized communication coordination. The Communications Manager should work collaboratively with each department head to build a one-to-two-year work plan. As a starting point, the City should work with the Parks & Recreation Department as a pilot program to demonstrate the value of this approach, as the Parks & Recreation Department has particularly extensive public communication needs. Communications staff should work with the Parks & Recreation Department to develop and implement a marketing plan to increase public participation in Parks & Recreation programming and should track metrics before and after the program is implemented to demonstrate its impact. Creating this partnership would assist in exhibiting the value-add of centralized Communications staff. Steps for developing the Parks & Recreation marketing plan should include: • Monitoring current engagement with Parks & Recreation social media and website postings. • Working with Parks & Recreation staff to poll Parks & Recreation program participants on how they learned about a particular program or event, and the primary method(s) they use to learn about events in the community. • Using this data, as well as communications best practices and input from Parks & Recreation staff, to establish a plan for marketing existing Parks & Recreation programming, as well as for regularly engaging with the community to understand the programming that they would like to see. The City should also implement regular community-wide surveys to understand satisfaction with current services and communication preferences, both for Parks & Recreation and for other City functions. This would help the City reach community members who do not currently participate in Parks & Recreation programming and would be a tool for gathering valuable data on community priorities in all service areas. ECONOMIC DEVELOPMENT Recommendation 5: Create a three-year Economic Development Plan and communicate the plan and role of the Economic Development Manager to staff. Issue: The Economic Development Manager is a new position created in 2022 with the objective to assist with establishing relationships with businesses and implementing economic development programs. These programs are aimed at facilitating business retention, expansion and attraction, job growth, and tax base expansion . Key duties include creating meaningful interactions with businesses in the community , maintaining an inventory of properties available for development, and acting as a liaison to assist with business retention and expansion. Because the position is new, and the City has never had a dedicated economic development position, there may be limited understanding among some staff of the scope and importance of the role. Staff often interact with the Economic Development Manager on a case-by-case basis, which may make it difficult for them to understand the nature of the role and how their support fits in with the City’s larger economic development goals. Recommendation: The roles and duties of the Economic Development Manager role should be clearly defined and communicated to staff throughout the organization. Explicitly laying out how the Manager collaborates with other departments, especially Community Development, will be helpful in creating meaningful and supportive 220 ORGANIZATIONAL ASSESSMENT 17 relationships across the City. For example, the City Manager could release a memorandum to address how the Economic Development Manager will be reaching out and communicating with other departments to help colleagues understand the process and that shows support and buy-in behind the position. The City should also develop a three-year Economic Development Plan to give guidance to the Economic Development Manager and set a course for success as this role develops. Elements of the plan should include creating a rotation schedule for when the Manager will meet with businesses, developing a database of businesses and properties within Chanhassen (which has already begun), creating relationships with commercial real estate brokers, working with utility organizations and departments to understand what’s available as far as locations, and communicating this plan to the community and staff to elicit buy-in. According to the U.S. Economic Development Administration, the plan should result in a document that is accessible to regional stakeholders, who should be able to use it as a guide in understanding the local or regional economy and to take action to improve it.11 Recommendations for what to include in the plan are: • Summary background of current economic conditions in the City • A regional Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis • Strategic action and implementation plan, consistent with other Citywide plans • Framework for evaluating performance • Economic resiliency plans Finance The Finance Department is responsible for financial and budgetary management of the City, including managing accounts, preparing financial reports, managing procurement, and preparing and tracking budgets. The Department consists of five positions and is overseen by the Finance Director. Key roles of the Finance Department include managing payroll for all City staff, conducting an annual audit, preparing and tracking the annual Operating Budget and Capital Improvement Program, managing water, sewer, and stormwater billing, managing accounts payable, and maintaining property assessments on behalf of Carver and Hennepin Counties. The Finance Director has initiated a number of positive steps to increase efficiency in recent years, including updating financial policies, increasing capacity for payroll for utility billing, and acquiring the ClearGov™ budgeting software in an effort to streamline the data input process. The Department’s goal is to continue to further identify options to standardize operations and make them as efficient as possible, as well as submitting to the Government Finance Officers Association (GFOA) for the Budget Book Award in the future. The recommendations in this section build on the steps that have already been initiated to identify specific opportunities for maximizi ng efficiency and standardization. Recommendation 6: Continue with the planned formal documentation of financial procedures. Issue: As of the time of this report, there is a lack of documented procedures for the Finance Department, aside from an internal manual that the Utility Billing Accountant has been developing. It should be noted that there are plans to document procedures more extensively, but they are on hold until updated financial policies, which are in development, are formally approved by the City. 11 “Comprehensive Economic Development Strategy (CEDS) Content.” U.S. Economic Development Administration. www.eda.gov/grant-resources/comprehensive-economic-development-strategy/content?q=/ceds/content/. 221 18 CITY OF CHANHASSEN Lack of shared information and standardized procedures can result in different operational methods and a lack of continuity among staff members. This is of particular concern because financial procedures are highly detailed and technical, and if they are not followed precisely, they can open the organization up to risk. Additionally, most of the Finance staff have been with the Department for many years and are highly knowledgeable. There is a risk of losing vital institutional knowledge when an employee leaves if the information has not been documented, especially with long tenured staff. Recommendation: The Finance Department should continue to be proactive in finalizing a revision of the City’s financial policies to align with current best practices and formalize a comprehensive document of financial policies and procedures for financial sustainability and resiliency. These policies will serve as a clear guide for consistent a nd long-term decisions for current and future staff, ensuring that decisions made consider the impacts to the future of Chanhassen and provides for a stable financial position for the community now and in the future. While these policies are being finalized, Finance staff should also continue to develop formal procedures. Each staff member should begin or continue the process of documenting their day-to-day tasks, including the steps involved, methods for quality assurance, any common troubleshooting steps, and any formal or informal performance metrics associated with the process. After the financial policies are approved, the Department can review procedures for completeness, efficiency, and how well they align with financial pol icies and best practices. The process should be completed in a six-month time frame and result in a written procedure manual that is regularly reviewed for accuracy and completeness. The development of procedures is also an opportunity for the Department to evaluate whether the current procedures are appropriate, or whether there are opportunities to enhance their efficiency or effectiveness. Key elements of this evaluation process could include: • Developing process maps of key processes to identify bottlenecks and inefficiencies and define task and process completion time o To be completed via four one-day process mapping sessions • Reviewing processes as a team to determine which are a value-add to the public or internal customers and which are not • Streamline processes where appropriate This review process will require some investment of time and resources, but will help ensure that the Department operates as efficiently and effectively as possible. Recommendation 7: Outsource the printing and mailing of utility bills. Issue: The Finance Department is responsible for issuing bills to the City’s utility customers. Printing and mailing of utility bills has historically been done in-house, but the City is currently transitioning from a quarterly billing to a monthly billing schedule, which means that three times the number of bills will be generated over the course of the year. This laborious process is not as efficient as it could be , and it utilizes valuable resources and staff. The City recognizes this, and has already begun the process of identifying an outside vendor. Recommendation: To improve the efficiency of this process and best utilize the skills and knowledge of trained financial personnel within the Finance Department, the City should continue the process of outsourcing the printing and mailing of utility bills to a contractor. Outsourcing the printing and mailing of bills would allow staff the opportunity to streamline additional processes and complete additional tasks. A timeline of approximately six months or less is appropriate to issue a request for proposals and select a vendor for outsourcing. 222 ORGANIZATIONA L ASSESSMENT 19 Information Technology IT is responsible for maintaining the City’s technology and enabling staff across all departments to perform their jobs as efficiently and effectively as possible. IT functions are led by an IT Manager who supervises two staff positions: the PC Support Technician and IT Technician. The IT staff are responsible for maintaining all City hardware, including desktops, laptops, tablets, phones, and printers. They also are responsible for maintaining the City’s software and protecting its cybersecurity. Finally, the Department is responsible for coordinating user training on hardware and software12. Technology is becoming more and more vital to all aspects of government operations, and that trend will continue . To maintain efficient operations and provide staff the tools they need to complete their work, it is important to have a comprehensive technology strategy, both for future technology investment and for effectively supporting existing software with training, troubleshooting, and maintenance. The recommendations in this section address opportunities to maximize the value of the City’s technology investments by ensuring that resources are spent as strategically as possible and that employees are equipped with the knowledge they need to take advantage of technology tools. Recommendation 8: Develop a technology strategic plan and a standardized process for requesting and evaluating software solutions. Issue: There is no formal strategy in place at the City for planning for future technology needs, other than the technology projects identified as part of the capital planning process. The process for requesting a technology tool is generally informal, in which IT reviews and approves/denies specific technology requests on a case-by-case basis. The result is that many software systems are used by a single department and may not allow for integrated use with other software systems. Not evaluating software needs more comprehensively means that the City may be miss ing opportunities for shared tools and collaboration. Recommendation: IT should conduct a comprehensive evaluation of each department’s current and potential future technology needs. This evaluation should aim at identifying opportunities to integrate and streamline current software programs and examine the potential for multiple departments to share processes. The Department should develop a strategic plan that identifies the key technology priorities for the next five years and key investments for Chanhassen. Creating this plan will allow IT to appropriately budget based on the plan and ensure that any technology requests align with the future goals of the IT Department by following a standardized process for the acquisition of new software. Developing this plan will also help the City understand the current and future workload in the Department and evaluate whether current staffing and resources are adequate to implement this plan. This analysis, along with service standards and performance metrics as discussed in Recommendation 1, should be used to determine appropriate current and future staffing levels. IT should also develop a standardized process for requesting and evaluating software solutions and determining whether a proposed technology purchase aligns with the City’s technology strategic plan. Requests received from individuals and/or departments should be reviewed with a comprehensive scope and future-focused mindset in order to determine the function of the software and whether alternative programs are available that would better serve the needs of multiple departments within the City. This standardized process should include evaluation from IT of all potential solutions for the reported issue. This process will assist IT in aligning and selecting software systems that support and provide value to multiple departments whenever possible. 1212 In some cases, training is also coordinated by the department using the software. 223 20 CITY OF CHANHASSEN Recommendation 9: Fully leverage IT investments by increasing training for City staff. Issue: In interviews, multiple staff expressed the desire to use software systems like Bluebeam and BS&A more extensively, but stated that they have not received the training to use many of the available software features. Information regarding the current availability of training offered to City staff was not readily available, but these comments suggest an opportunity to increase many employees’ familiarity with their software tools. For example, the BS&A permitting software was implemented three years ago but is perhaps not being used to its full potential, reportedly due to the difficulty in providing extensive, hands-on training for staff during the COVID-19 pandemic. This results in more manual processes and decreased efficiency, while also preventing the City from realizing the full value of its investments. Recommendation: IT should evaluate training needs system-by-system and develop plans to provide training to fill gaps. The training could be provided by IT, the software provider, contractors, or a combination thereof. Creating a strategy for training and expanding the capabilities of current software systems will allow for greater, more efficient use of current technology as well as identify gaps that may need to be addressed regarding the integration of software systems across departments. This additional training will require additional capacity to administer. The appropriate capacity will depend on the types and breadth of training required but could include in-house support and/or contracted training from outside vendors. As part of the technology plan developed per Recommendation 8, the Department should estimate training needs for both existing and planned future technology systems, and should consider whether additional part-time or full-time staffing is needed to address those training needs. Community Development The Community Development Department is responsible for land use planning, building permitting and insp ections, natural resource management, and economic development. The Department consists of 12 positions across two divisions and is overseen by a Community Development Director. The Planning & Zoning Division is responsible for enforcing the City’s land use regulations and zoning code. Staff track and maintain information on development activities. The Division is also responsible for short- and long-term land use planning, including preparation of the City’s Comprehensive Plan. The Division issues land use permits, as well as Beekeeping, Chicken, Event, and Sign Permits. The Building Permits & Inspections Division is responsible for conducting plan reviews, issuing building permits, and conducting inspections. Staff are responsible for conducting building inspections, septic tank inspections, and Reduced Pressure Zone (RPZ) inspections. Permits issued by staff include Building Permits, Housing Permits, Electrical Permits, Heating/Ventilation/Air Conditioning (HVAC) Permits, Plumbing Permits, Subsurface Sewage Treatment System (SSTS) permits, and Zoning Permits. The Natural Resources Division is responsible for implementing programs to protect natural resources and the environment. It maintains two community gardens and promotes green practices like recycling and water conservation. The City employs a certified arborist, the Environmental Resource Specialist/City Forester, who is responsible for educating residents on tree maintenance and protecting City trees from disease and invasive insects. Chanhassen is a growing community, and the City is dedicated to smart development, as shown through the recent addition of the Economic Development Manager position in Administration. The D epartment plays a role in safeguarding the quality of life as the City grows, and it’s important to invest in strong, efficient processes in this area. The recommendations in this section address the use of technology in maximizing the efficiency of the 224 ORGANIZATIONAL ASSESSMENT 21 development review process, as well as potential staffing and structural changes that would better align positions to workload. Recommendation 10: Fully implement electronic plan review across all relevant departments and set internal expectations for development review process times . Issue: The City has purchased Bluebeam, electronic plan review software, in order to facilitate efficient review and storage of development plans. The software is available to all staff who review development plans, both in the Community Development Department and in other functions. However, its use is relatively limited. The Planning team does not fully utilize the software, with some using it for reviews and others not, depending on personal preference. Reviewers in other departments, such as those in Engineering, do not use the electronic planning system at all, meaning that plans must be manually routed from place to place during the review process. Manual plan review increases the time spent reviewing plans since only one individual can review the document at a time, as opposed to multiple people accessing it electronically. This process also creates the possibility for bottlenecks with one reviewer and could make it difficult to identify where in the process a particular plan sits currently. Additionally, utilizing an electronic system incorporates built in ways to track ti me, progress, and communication of plans, thus aiding the City in data collections. The manual review process limits this opportunity. The manual nature of this review process means that timing can vary significantly on a case-by-case basis. While there are some informal expectations in place, such as quoting 10-15 business days for the average plan review, there is a lack of standardized processing times across the City. This lack of specific guidelines makes it difficult for leadership to set an expectation and have staff provide consistent service to all customers . These issues impact the ability for the City to serve its development customers efficiently and may be a deterrent to economic development in the area if developers have concerns with the timeliness of the process. Recommendation: The City should implement consistent use of the electronic plan review software in all relevant departments and train staff on its use. The City should also establish and track formal time inspections for each step of the plan review process and track turnaround times, as well as identify and standardize other service expectations for the plan review process, such as when a pre-proposal meeting is offered. In order to develop these service levels, department heads in relevant departments should collaborate on setting expectations for key functions, which could include communicating with a customer at key steps in a process, providing specific turnaround times for each step in a process, and providing guidelines for overall process time. These metrics should be tracked regularly and reviewed carefully, especially during budget development, as a tool to help decide the best allocation of resources, and to define any unmet resource needs. Setting these expectations and tracking how often they are met over time help both staff and internal and external customers define what is required of them and provides valuable information when making operational and resource allocation decisions in the future. Additionally, prioritizing accountability up and down the hierarchy of the organization helps establish trust in the process and will create a benchmark for self -assessment and transparency. Without these guidelines in place, the City has limited information about the effectiveness and efficiency of this particular process and is missing out on valuable information that could allow leadership to proactively address an issue before it impacts operations. Recommendation 11: Relocate the Environmental Resource Specialist position to the Parks and Recreation Department. Issue: The Environmental Resource Specialist position is responsible for enforcing ordinances related to trees in the City, as well as coordinating and overseeing the maintenance of street trees, acting as liaison to the City’s Environmental Commission, and operating education and outreach programs related to the environment and sustainability. The position serves two different functions: to promote sustainability programming City-wide and to 225 22 CITY OF CHANHASSEN maintain the City’s trees. The position is essentially both a front-line position, responsible for day-to-day maintenance of the City’s urban forest, and a policy focused position working on strategy and communication with City commissions and the public. In addition to tree related planting and maintenance, the position is also responsible for diseased tree management, invasive species management, the community garden program, volunteer engagement, event planning, and education about natural resources topics. The position is currently part of the Community Development Department, reporting to the Community Development Director. This organizational placement is understandable given the plan review component of managing the City's tree canopy. However, the work of this position impacts maintenance staff in the Parks and Recreation Department, who perform tree maintenance and other natural resource management duties in parks. The Environmental Resource Specialist also has training and skills that could be helpful to managing landscapes and natural areas in City parks. Recommendation: The City should relocate the Environmental Resource Specialist to the Parks and Recreation Department, reporting to the Parks and Recreation Director. The Parks and Recreation Department is responsible for maintaining City-owned green spaces, so relocating the Environmental Resource Specialist position would allow for the sharing of resources and expertise. The duties associated with the position should remain the same, but Environmental Resource Specialist should take on responsibility for managing trees in the City's parks and natural areas in addition to street trees. They should also work closely with park maintenance staff to help manage the City's natural areas. Their expertise will be useful in providing advice on landscaping in City parks, including plant selection, pruning techniques, and tree and shrub inspection. This closer relationship with park maintenance staff will also allow the Environmental Resource Specialist to provide training and education to staff on managing invasive species and monitoring for diseased trees. Recommendation 12: Leave one Planner position vacant but retain funding for the position in the budget. Issue: The project team analyzed appropriate staffing levels for the Planning function, but w ithout full implementation of an electronic plan review program and standardized service level expectations guiding plan review processes, as fully discussed in Recommendation 10, it is difficult to determine the appropriate level of staffing and necessary resources for the Department. However, one Planner position is vacant in the Community Development Department as of the time of this report. This vacancy provides an opportunity to evaluate the efficacy of Department operations at a reduced staffing level and to determine whether reducing the number of Planning staff is sustainable in the long term. Recommendation: The City should allow the Planner position to remain vacant but continue to retain the appropriate budgeting to fill a Junior Planner role if needed. The Community Development Department should implement the recommendation to identify service level expectations within the development review process and implement an electronic plan review program, as discussed in Recommendation 10, prior to filling the position. The full implementation of electronic plan review and detailed service level expectations will provide an opportunity to assess the impact on the Department to determine whether this additional role is needed. During the interim, the City should utilize contractors for peak-period support. It will also be important to track metrics related to the costs of contracted services and number of hours worked to provide additional useful data in determining whether filling the full-time Junior Planner position is warranted. 226 ORGANIZATIONAL ASSESSMENT 23 Parks & Recreation The Parks & Recreation Department is responsible for maintaining the City’s parks and trails , as well as operating two community centers and managing community events. This work is completed by 14 positions and is overseen by the Parks & Recreation Director. Staff maintain 44 parks and open spaces, totaling 528 acres of open space and 466 acres of developed parkland. The Department is also responsible for a number of facilities, including 46 athletic fields, 56 athletic courts, 25 shelters and picnic areas, 18 piers, docks, and boat launches, five public beaches, 28 playgrounds, eight ice rinks, five sledding hills, a disk golf course, and a skate park. Additionally, staff maintain a community garden and a City-owned cemetery. The Department offers several recreation programs, including youth and adult sports, youth adventure camps, dancing, yoga, and fitness. Parks & Recreation staff also organize and plan community events throughout the year, such as a summer concert series, easter egg hunt, and tree lighting ceremony. The Department operates and maintains two community centers: a Recreation Center and a Senior Center. The Recreation Center includes a gym, fitness rooms, and meeting rooms. Residents of the region can use the facilities or participate in programming like dance classes and personal training. The Senior Center offers programming for residents aged 55 and older, including fitness classes, hobbies and games, health and wellness information, transportation, and housing assistance. The quality of the City’s parks reflect the values and expectations of the Chanhassen community. However, the inventory of park infrastructure has grown, and the community has expressed demand for additional events and programs, so it is important to ensure the City has sufficient staffing to provide the expected level of service. The recommendations in this section address opportunities for the City to intentionally plan for current and future Parks & Recreation resource needs. Recommendation 13: Ensure park maintenance has sufficient capacity to meet service level expectations and manage growing inventory. Issue: Staff report that the Chanhassen community has high service level expectations for th e quality and maintenance of parks grounds and facilities. The inventory maintained by the Department has also increased with the City’s recent acquisition of approximately 100 acres of open space. Current staffing levels within the Parks & Recreation department can sufficiently handle reactive maintenance, but they often do not have the capacity to consistently perform routine preventative maintenance such as tree trimming, irrigation replacement, and field maintenance for athletic fields. A lack of preventative maintenance efforts in these areas can impact the services provided to the community if irrigation systems fail or fields are not available for use by community members. Recommendation: Recommendation 14 below adds some capacity for additional park maintenance tasks, but it is important for the City to regularly evaluate whether staffing levels are appropriate. The City should establish service level expectations for the Department, specifically as they relate to tree watering, tree trimming, irrigation replacement, and athletic field maintenance. This includes outlining the scope of maintenance to be done and establishing levels of frequency for tasks. Once these service level expectations are set, the City should establish and track performance metrics to gauge whether current staffing levels are sufficient to complete the desired level of preventative maintenance on a consistent basis. Identifying the frequency with which preventative maintenance tasks should be performed will assist in the creation and tracking of performance metrics to evaluate whether effective service delivery is being met. Sample performance metrics are included in Appendix A, and recommended service level expectations based on industry best practices are included in Appendix B. 227 24 CITY OF CHANHASSEN After determining expected service levels and implementing performance metrics, the Department should use this information to evaluate whether additional staff capacity is needed to uphold the desired service level. Additional staffing could be provided through the creation of additional staffing capacity or via contracted support. Establishing service levels and performance metrics will assist in understanding the appropriate staffing capacity to devote to the Department in order to maintain both reactive and preventative maintenance and continue to provide quality service to the community. In addition to community service level expectations, Parks & Recreation staff expressed a desire to complete field maintenance for athletic fields on a more consistent basis, which includes aerating the fields and working to maintain the quality of turf and clay. To facilitate this level of ongoing preventive maintenance, Parks & Recreation staff will need to coordinate with Parks Programming staff to schedule advance blackout dates for field and turf maintenance on a consistent basis. Recommendation 14: Create a Park Maintenance Operator position after tracking service levels and performance data. Issue: Recommendation 11 discussed relocating the Environmental Resource Specialist and assigning forestry maintenance duties to the Parks and Recreation Department. This will create alignment between staff responsible for maintaining the City's open space and the staff responsible forestry management, invasive species management, and diseased tree monitoring and removal. This additional expertise for the Parks and Recreation Department should inform the work planning and maintenance activities of park maintenance staff but it will also create additional workload. Recommendation: As discussed in Recommendation 13, the Department should establish service level expectations and performance metrics to better understand staffing needs. Once these expectations have been created and the data collected, Department leadership should review performance to understand staffing needs. It is likely that the City will need an additional Parks Maintenance Operator position to help add capacity for park maintenance and allow the City to perform more tree maintenance duties in-house. But the performance measurement data should be established and monitored before the position is created and should continue to be monitored to show the impact of the new position. The new position would need to support irrigation, facility repair, and special events in addition to maintenance activities supporting forestry and natural resource management. Recommendation 15: Develop a five-to-ten-year Parks & Recreation facilities investment plan and reengage the Parks Referendum Task Force to prioritize facility investments and identify a funding approach. Issue: Well-maintained park and recreation facilities are vital to providing safe recreational programming to the community and to meeting community expectations. According to staff, current facilities within Chanhassen are aging and in need of investment. Aging buildings, coupled with outside competition for programming , makes it difficult for the Department to continue providing the services and amenities the community desires. It is important for the City to invest in these facilities appropriately and plan for future needs. The City began creating a long-term investment plan for Parks & Recreation facility needs through the Park Referendum Task Force, but that effort was put on pause in August 2022 and, as of the time of this report, has not met since. The group is made up of members of the Parks & Recreation Committee, other City commissions, and the public, with the goal of identifying and prioritizing facility investment needs. Recommendation: It is a best practice to establish a system to routinely assess and then appropriately plan and budget for capital maintenance and replacement needs in all City facilities. This process involves reviewing the current condition of facilities, determining necessary repairs and investments, and incorporating these needs into the 228 ORGANIZATIONAL AS SESSMENT 25 budgeting process. In the case of Parks & Recreation facilities, this process should also involve evaluating the community’s current and projected future recreational interests and considering how to effectively invest to match community priorities. The Department should conduct an assessment to determine the maintenance and replacement needs at each facility and develop a facilities investment plan to help the organization identify and prioritize facility needs, both for new and expanded facilities as well as rehabilitation of existing facilities. Once the plan is in place, the Parks & Recreation Director should work with the City Manager, Finance Director, and Parks Referendum Task Force to identify a long-term funding approach. Public Works The Department of Public Works (DPW) is responsible for maintaining the City’s streets, sidewalks, and fleet, as well as for providing drinking water and collecting wastewater. This work is completed by 30 positions across two divisions and is overseen by the Public Works Director. The Public Works Division is responsible for water treatment and distribution, wastewater collection, stormwater management, and facility, infrastructure, and equipment maintenance. The City treats and distributes its own drinking water; an average of 991 million gallons per year to more than 8,500 households and businesses. Water infrastructure maintained by DPW includes 12 groundwater wells, two water treatment plants, three reservoirs, 32 lift stations, and 170 miles of water mains. DPW staff read and maintain water meters, although the Finance Department is responsible for generating and collecting utility bills. DPW is also responsible for collecting wastewater from customers and for maintaining nearly 130 miles of sewer pipe. Wastewater is treated b y the Metropolitan Council. Division staff are responsible for stormwater management in the City. They maintain the City’s drainage infrastructure, such as storm ponds and storm sewers. They also manage the City’s sump pump program and issue building permits to ensure that new construction meets grading requirements. Public Works Division staff maintain 113.5 miles of streets. Services performed include traffic signal and sign installation maintenance, street sealing and patching, snow and ice control, tree trimming within the City right-of-way, and street sweeping. The Engineering Division is responsible for providing engineering and technical support to the Public Works Division, as well as for maintaining asset records and GIS maps. Additionally, staff in the Division are responsible for plan review of private development and for managing the City's capital projects. The Water Resources Division is a two FTE workgroup that focuses on managing the City's surface water resources. They work to monitor the City's 12 lakes, 356 wetlands, 11 miles of streams and rivers, and manage stormwater infrastructure. Staff work to implement the City's Surface Water Management Plan which provides a framework for protecting and improving Chanhassen's lakes, wetlands, and flooding issues. In interviews with staff, many expressed a desire for additional capacity to complete preventive maintenance tasks. The following recommendations address some opportunities for additional staffing for these areas, as well as opportunities to establish and track service standards to ensure functions are staffed and resourced adequately in the future. Recommendation 16: Establish preventive maintenance schedules for all assets and track workload by type to understand staffing needs. Issue: There is no single accepted standard for appropriate staffing levels for infrastructure maintenance, as it depends on factors like age, asset condition, criticality, and complexity of assets. Instead, appropriate staffing levels must be 229 26 CITY OF CHANHASSEN determined by evaluating how effectively current staffing meets the reactive and preventative maintenance needs of different asset types. In interviews, staff from multiple Public Works functions reported limited capacity for proactive maintenance. For example, staff in the unit responsible for Street Maintenance, Surface Water Resources, and Fleet Maintenance report some proactive initiatives, such as a sign inspection program, but largely spend their time on reactive repairs. This is a concern because regular, proactive maintenance increases the useful life of facilities and equipment and reduces the likelihood of expensive, time-consuming repairs. However, it must also be noted that these reports are largely anecdotal. Although the Department does track workload through the Cartegraph ™ asset management system, use of the system is limited. For example, based on a review of 2022 records, labor hours are not recorded in many cases, and some functions, such as Facilities Maintenance, do not record work orders in the system. Additionally, to judge the effectiveness of a preventive maintenance program, the program should be compared against established preventive maintenance standards. Recommendation: The City’s first step should be to determine the workload needs for its assets. This is determined by estimating both proactive and reactive workloads. Reactive workloads can be estimated by tracking work hours by type using the data in the Cartegraph syst em. Proactive workloads can be estimated by establishing preventive maintenance schedules for facilities and equipment and estimating the total time required to complete those preventive maintenance tasks. From there, staff can estimate the workload throughout the year and develop a plan to address these workload needs. If additional capacity is required, it can be fulfilled by the addition of full -time or seasonal staff and/or the increased use of contracted support. Metrics should be regularly tracked and analyzed, and the results should be used to drive staffing and resource decisions. The following table is an example of how service level standards and labor hour estimates can inform annual staffing level needs. Table 6: Example Work Planning and Resource Identification Template Work Activity Service Standard Infrastructure Inventory Average Labor Hours Required to Complete Work Activity Annual Labor Hours Required to Meet Service Standard HVAC Maintenance Inspect all HVAC systems twice annually 25 HVAC systems 4 hours per HVAC system inspected 200 Painting Paint building exteriors on a five-year cycle 100,000 square feet of building exterior 20 hours per 1,000 square feet painted 400 Plumbing Maintenance Inspect all toilets and sinks on an annual basis 150 sinks and 150 toilets 0.5 hours per sink or toilet 150 The City should also evaluate whether it is using technology effectively to support effective asset management. The use of Cartegraph is an important tool for workload management, but it should be used accurately and consistently across all service areas in order to maximize its effectiveness. Additionally, GIS mapping technology is an important tool for managing the location of assets and developing efficient repair and maintenance schedules, but the effectiveness of GIS mapping as a tool is driven by the accuracy of the data input into the system. Recommendation 17: Add a Facilities Maintenance Technician to support preventative facilities maintenance. Issue: Facilities maintenance is currently performed by one staff member in the Public Works Department. The Facilities Maintenance Supervisor is responsible for maintaining nine facilities totaling more than 135,000 square feet, along with five wellhouses and one lift station. This is a large inventory to be responsible for and it is also a diverse and complex inventory with aging buildings and buildings with heavy public use. In addition, to the Facilities Maintenance Supervisor, the City contracts for HVAC, electrical, and custodial work on City facilities. This contracted support provides additional capacity for the City. 230 ORGANIZATIONAL ASSESSMENT 27 However, according to interviews with City staff, currently the Facilities Maintenance Supervisor generally only has the capacity for reactive repairs with limited time for proactive maintenance tasks. This is largely anecdotal because facilities maintenance tasks are not recorded in the City's Cartegraph system. It is important to ensure the City has capacity for proactive facilities maintenance tasks. In addition, the current staffing approach for facilities maintenance means that, if the Facilities Maintenance Supervisor is on paid time off (PTO) or leaves the organization, there is no position with the skillset and experience to perform that work. Recommendation: The City should add a frontline Facilities Maintenance Technician to support preventative facilities maintenance and provide backup to the Facilities Maintenance Supervisor. This will provide additional capacity to meet the community's expectations and ensure the useful life of facilities is maximized. However, facilities maintenance tasks should be recorded in the City's Cartegraph work order management system and tracked over time. Similar to other maintenance tasks, service level expectations should be established for major facilities, equipment, and infrastructure. It may be appropriate to establish these expectations and data tracking before adding the additional position. An additional position may also provide enough capacity to perform in-house some of the facilities maintenance tasks that are currently contracted. Bringing work in-house will depend on the skillset of the new employee and the cost of the contracts. Recommendation 18: Add one to two Utility Technician positions focusing on water distribution and wastewater collection preventative maintenance programs. Issue: The City should evaluate staffing levels in all DPW functions based on service level expectations, as discussed in Recommendation 16 above, but one particular area of focus should be the Water and Wastewater functions. Best practices in the water and wastewater utility industry include regular preventative maintenance practices that help to maintain the distribution system for utilities and improve water quality for customers. The American Water Works Association (AWWA) recommends that water utilities maintain a ratio of approximately 65% proactive maintenance tasks, including preventive maintenance and inspections, to 35% reactive maintenance.13 However, according to 2022 Cartegraph workload logs, only approximately 30% of utility work orders were for proactive maintenance, with the rest reactive. City staff report that this ratio is not enou gh to keep up with preventative maintenance program expectations. Specifically, they report a backlog of valve turning, hydrant maintenance, and sewer main cleaning. Recommendation: The City should add one to two additional Utility Technician positions d edicated to addressing this preventive maintenance backlog. The decision of whether to add one or two new positions should be made after first identifying unmet needs then estimating the staffing capacity required to address these needs. Being proactive in this manner should assist in evaluating structural integrity, function, and any maintenance needs before they become larger issues that create a disruption in service to utilities customers. This will align the City with industry best practices and improve service to customers. Conducting valve exercising and proactive maintenance will increase the number of needed repairs in the short term as issues with inoperable valves are discovered and addressed. Additionally, the City should establish formal service level expectations for all utility assets and track how effectively these performance expectations are being met. If the City is unable to meet expectations with current resources, additional staff or contracted capacity may be needed. 13 “Establishing the Level of Progress in Utility Management Survey Results.” AWWA, December 2015. https://www.awwa.org/Portals/0/AWWA/ETS/Resources/Technical%20Reports/Level%20o f%20Progress%20in%2 0Utility%20Asset%20Management%20v4.0.pdf?ver=2021-05-21-124023-250 231 28 CITY OF CHANHASSEN Recommendation 19: Add an Engineering Technician position to provide capacity for asset management and project management. Issue: Staff in the Engineering Division (Division) are responsible for review of private development plans as well as for management of the City’s assets and capital projects. The Division must balance day-to-day plan review and project management responsibilities with longer-term strategic management of City facilities, infrastructure, and assets. Staff reported that the primary workload drivers for the Engineering Division of Public Works are capital project management and plan review associated with new development. The Assistant City Engineer is responsible for overseeing these duties, and for supe rvising three support staff: two Engineering Techs and a Project Engineer. Staff report that they are often not able to keep up with the workload of plan review and capital project management, meaning that the Assistant City Engineer frequently supports this work at the expense of other more strategic duties. This is a concern because it is not the highest and best use of this position, which limits its value to the City. As discussed in Recommendation 10, the City should fully implement electronic plan review and improve the plan review process to reduce the workload for staff and create a better service for applicants. This will address some of the workload associated with plan review for the Engineering Division and additional capacity could be pursued through contracting to manage peak development workload. While this would likely create some efficiencies, it is also important to ensure that appropriate staffing capacity is devoted to asset management. Asset management is a practice of planning maintenance, rehabilitation, and construction based on the condition and criticality of assets to maximize their useful life and ensure service to the community is uninterrupted. This work is a key connection between engineering and the operations side of Public Works. Asset management can inform work planning and prioritization, while reports on performance and condition of assets from field staff can inform capital investments as part of asset management. Establishing preventative maintenance schedules and tracking workload is an important component of asset management and there is a need for capacity to manage assets across the City. Recommendation: In order to create capacity for asset management, the City should create an Engineering Technician position to focus on this work. They should support asset management for all assets in the City, including utility infrastructure, streets, facilities, and park infrastructure. This position will need to work closely with operations staff in Public Works as well as the Parks and Recreation Department. Their work should be focused on four areas for all assets owned and maintained by the City: • Understanding the state of the City's assets, including their location and condition. • Defining the required level of service for functions relying on those assets. • Determining which assets are critical to sustained performance. • Identifying investment strategies that address short- and long-term asset needs. There should be a close link between maintenance staff and this asset management work because those staff will have the best understanding of current condition and criticality of assets, while the work of asset management in defining levels of service and investment strategies can in turn inform maintenance schedules, frequencies, and replacement plans. In addition to the asset management work, this new position should also have capacity to support capital project management. This work aligns closely with asset management and understanding the location, operation, and details of new assets are important inputs into asset management planning. This workload should be monitored to ensure it does not impact the position's ability to establish the asset management program. 232 ORGANIZATIONAL ASSESSMENT 29 Law Enforcement The Law Enforcement Department is responsible for public safety and crime prevention for the City. The Carver County Sheriff’s Office provides comprehensive law enforcement services to the City of Chanhassen, including patrol, issue response, crime investigation, and crime prevention. The Sheriff’s Office also issues gun permits for the City and responds to reports of dangerous animals. The City contracts with Carver County for 15 positions. All are employed by the County Sheriff’s Office but serve Chanhassen 100% of the time. The Department consists of a Lieutenant, three Sergeants, a School Resource Officer, an Investigator, and nine deputies for patrol services. Per the contract, each shift requires two deputies and a sergeant. If someone is unavailable, positions are backfilled through overtime or the sergeant will fill in as a patrol deputy. This section analyzes the City’s current contracted staffing levels based on national standards, but the appropriate staffing level for a police function is also a policy decision, driven by community priorities and on the community’s position on the appropriate role of law enforcement. The recommendations in this section discuss these concepts in greater detail. Recommendation 20: Determine policing expectations and service level standards for the Chanhassen community. Issue: Sheriff’s Office staff have expressed concerns about balancing proactive policing efforts in Chanhassen with the need to respond to reactive concerns in a timely manner. Societal expectations have changed in regard to police matters and the length of time deputies are expected to be on scene has increased, especially with mental health- related calls. It is important for Chanhassen to establish policing priorities that align with the expectations of the community, as well as public safety best practices. It is also important to set community expectations for the level of service that the community will be receiving. Chanhassen has a relatively low number of calls for service, as discussed in Recommendation 21 below, which means that relatively few deputies can generally address reactive needs while retaining capacity for proactive crime prevention efforts. However, this small number of deputies means that one call will often tie up all capacity, which could impact the timeliness in responding to any other calls that come in. If the community expects a higher level of responsiveness, it would mean a greater investment in the law enforcement contract. Recommendation: The appropriate level of proactive policing capacity is a policy decision that should be driven by community priorities, as well as policing best practices. It is important for the Lieutenant serving as the liaison to Chanhassen to regularly engage with the community to understand their concerns, perceptions, and priorities for service. The community should have multiple avenues for providing their opinions, such as community meetings, focus groups targeting specific groups (especially those traditionally marginalized), and online surveys. These discussions should help inform proactive policing targets, which in turn help inform the level of police staffing needed. Engaging with the community to understand policing service level expectations will provide valuable information to drive staffing needs for policing now and in the future. Recommendation 21: Maintain current patrol deputy staffing levels. Issue: Under the City’s contract with the Carver County Sheriff’s Department, nine patrol deputies and three sergeants staff the City’s Patrol function. These positions generally work 12-hour shifts in a four day on, three day off configuration. The project team analyzed data on calls for service to evaluate the efficacy of effective staffing levels. 233 30 CITY OF CHANHASSEN Patrol staffing workload is driven by three factors: • Reactive time: time spent responding to calls for service, such as following up on a 911 call • Proactive time: time spent working with the community on efforts to prevent crime and enhance public safety, such as patrolling an area or meeting with community members • Administrative time: time spent processing paperwork and completing other administrative tasks The appropriate amount of time spent on each of these tasks is a policy decision . The International Association of Chiefs of Police (IACP) recommends a Service Level Target of 33% of an officer’s time spent on proactive tasks, 33% on reactive, and 33% on administrative. This analysis uses this IACP recommendation when evaluating staffing levels, but Chanhassen’s Target may differ, driven by public safety best practices as well as community priorities as discussed in Recommendation 20 above. The project team analyzed reactive calls for service data for 2022 to evaluate the staffing capacity required to respond to these reactive calls while still reserving two-thirds of an officer’s time for proactive and administrative duties. Patrol Deputies collectively spent between five and 60 minutes per hour, on average, responding to calls for service in 2022, as illustrated in the following figure. The lowest period of activity was between 12 am and 8 am, and the highest between 4 pm and 7 pm. Figure 4: Average Reactive Patrol Time per Hour, 2022 Based on this data, the project team calculated how many deputies would have to be deployed at any given hour to meet the 33% proactive Service Level Target. To meet the target, each deputy should be spending a maximum of one-third of their time, or an average of 20 minutes per hour, on reactive response, leaving the other 40 minutes available for proactive and administrative work. For example, if deputies spend an average of 60 minutes on reactive calls in a given hour, three deputies must be on duty if the 33% Service Level Target is to be met, so that each officer can devote an average of 20 minutes toward reactive calls. 0 10 20 30 40 50 60 70 MinutesAverage Patrol Time Spent on Reactive Calls for Service per Hour in Chanhassen, 2022 234 ORGANIZATIONAL ASSESS MENT 31 The following table summarizes the total number of deputies that would be required at each hour of the day and each day of the week to meet the 33% Service Level Target. Table 7: Patrol Staffing Required to Meet 33% Proactive Policing Service Level Target Hour Mon Tues Wed Thurs Fri Sat Sun 12AM-1AM 1.7 1.0 1.0 1.2 1.2 1.5 2.0 1AM-2AM 0.9 1.0 0.9 1.1 1.1 1.7 1.8 2AM-3AM 1.2 0.7 0.7 0.6 0.9 1.4 1.7 3AM-4AM 0.5 0.6 0.4 0.5 0.8 1.0 0.8 4AM-5AM 0.5 0.3 0.2 0.5 0.3 0.5 0.6 5AM-6AM 0.4 0.5 0.4 0.4 0.4 0.3 0.5 6AM-7AM 0.8 0.6 0.6 0.8 0.6 0.4 0.6 7AM-8AM 0.9 1.3 1.1 1.3 1.0 0.8 1.0 8AM-9AM 2.0 1.9 1.4 1.8 1.6 1.4 2.0 9AM-10AM 1.5 1.5 2.4 1.9 1.6 1.7 0.9 10AM-11AM 2.0 1.7 1.7 2.0 2.0 2.2 1.3 11AM-12PM 1.5 1.7 1.8 1.8 1.8 1.6 1.6 12PM-1PM 1.5 1.9 1.5 1.5 1.6 2.0 1.9 1PM-2PM 1.6 1.7 1.6 1.7 1.6 1.7 1.4 2PM-3PM 1.7 1.7 1.9 1.9 1.4 1.9 1.8 3PM-4PM 1.5 1.8 2.0 1.6 1.9 1.5 1.4 4PM-5PM 1.9 2.1 2.0 2.3 2.5 1.7 1.5 5PM-6PM 2.2 2.3 2.0 2.3 2.1 1.9 1.8 6PM-7PM 1.9 1.8 2.1 1.6 2.1 2.2 2.0 7PM-8PM 1.8 1.9 2.1 1.7 2.7 2.4 2.0 8PM-9PM 1.6 1.8 1.8 1.6 1.8 2.0 1.6 9PM-10PM 1.7 1.7 1.8 1.6 1.9 1.9 1.5 10PM-11PM 1.3 1.5 1.5 1.8 1.6 2.1 1.8 11PM-12AM 1.6 1.1 1.2 1.4 1.5 1.8 1.2 The number of deputies required to meet that 33% threshold can vary over time. For example, the average number of deputies required to meet the 33% Service Level Target is twice as high on Sundays at 2:00 am than at 3:00 am. It would not be feasible for actual staffing levels to fluctuate so dramatically. The goal of this analysis is to determine the appropriate staffing levels to ensure that a maximum of 33% of a deputy’s time on the average shift is devoted to reactive response, leaving the rest of the shift available for proactive and reactive duties. Recommendation: Based on the current shift schedule, the City could meet the 33% Service Level Target with a minimum of two deputies on patrol during the Day shift and a minimum of one deputy on patrol during the Night shift, or a total of three deputies per day. It is important to note, however, that a single deputy on patrol at night would need to be supported by at least one other sworn officer, such as a Sergeant, to respond in case of an unusually heavy call volume. It is also important that officers have the deputies to call for additional support from Carver County or neighboring jurisdictions in the case of a serious public safety event. 235 32 CITY OF CHANHASSEN The project team analyzed the appropriate number of Patrol Deputy positions required to meet this proposed staffing minimum by calculating a staffing factor. A staffing factor is the number of FTEs that must be hired to staff the shift minimum for all shifts, taking into account shift schedules, leave, and training time. Per the deputies’ collective bargaining agreement, the average Carver County Deputy is entitled to approximately 116 hours of holiday time, 210 hours of vacation time, and 96 hours of sick time per year as of 2023. Additionally, in 2022 Patrol Deputies spent an average of 62 hours in training.14 This means that on average, in any given year there are approximately 490 hours when an officer is unavailable for patrol. In other words, an individual shift officer is available for an average of 1,690 hours of patrol per year. However, Carver County must staff that shift position for 12 hours a day, 365 days per year, or 4,380 hours in total. This means that to fill one shift position every day, the Department must have 2.59 FTEs on staff. Multiplying the proposed minimum staffing levels per shift by this 2.59 FTE staffing factor yields the total number of Patrol Deputy positions required to meet the 33% Service Level Target, as illustrated in the following table. Table 8: Patrol Deputy Staffing Required to Meet Proposed Shift Minimums Shift Proposed Shift Minimum Staffing Factor Total Patrol Deputies Required Day 2 2.59 6 Night 1 2.59 3 Total 3 N/A 9 Based on this analysis, the City needs a total of nine dedicated Patrol Deputies in order to meet the 33% Service Level Target. Carver County currently supplies nine Patrol Deputies, so no patrol staffing changes are recommended at this time. It is important to note that staff from the Sheriff’s Office have expressed a need for more patrol staffing in Chanhassen, largely driven by proactive policing needs. If the City determines that additional capacity should be devoted to proactive policing, additional officers may be needed. However, the other recommendations in this section add capacity for additional patrol support for proactive services and to address serious incidents. Additionally, workload should be tracked and evaluated regularly to ensure that staffing levels are adequate to meet the City’s reactive and proactive needs. Recommendation 22: Redefine role of sergeants as field supervisors and back-up call- takers. Issue: The analysis detailed above indicates that there is a sufficient number of patrol deputies funded through the agreement between the City of Chanhassen and Carver County. However, it is also important to consider supervision and command. Currently, the contract calls for three sergeants and a Lieutenant as supervisory and command positions. Two sergeants operate on twelve-hour shifts and serve primarily as patrol sergeants. One sergeant functions as a desk sergeant, working a 40-hour shift, Monday through Friday, responsible for primarily administrative tasks, such as scheduling. The lieutenant also operates under a Monday through Friday 40-hour shift. Currently, patrol sergeants are intended to function primarily as supervisory positions and are not conside red, under normal staffing conditions, to be primary responders to calls for service. However, it is important to note that sergeants are sometimes utilized for front-line patrol duties if staffing shortage warrants. In the intended role, 14 This analysis assumes that all training would take place during a deputy’s regularly scheduled shifts, rather than during overtime. 236 ORGANIZATIONAL ASSESSMENT 33 sergeants essentially serve as watch commanders operating out of the station. Watch commanders ensure unity of command during non-business hours and maintain management oversight 24 hours a day in the event of a critical incident, major crime, and other significant events. One of the primary advantages of the City of Chanhassen utilizing Carver County Sheriff as its cont racted police force is economies of scale. Contracted patrol sergeants and deputies are integrated into the broader command and oversight structure of the Sheriff’s Office, which provides continuity of command and access to the resources of a larger department. By creating and funding supervisory positions whose function is to serve as station/watch commanders, that advantage is reduced. Further, there are also operational and risk management challenges associated with the current supervisory structure. Police activity is under increasing public scrutiny. Police/community contacts in which the actions of the police are challenged are routinely filmed, publicized, and litigated. The first-line supervisor has multiple roles: ensuring that the law is enforced in compliance with statute and policy; ensuring that the rights of both civilians and police personnel are protected; ensuring that the interests of the Sheriff’s Office, its members, and the City are protected; ensuring that incidents are adequately documented so a fair and truthful account of police action is presented; and intervening when police conduct is questionable. Lack of effective first-line supervision is often cited as an underlying factor in major scandals involving police departments. Ensuring that sergeants serve as field supervisors creates greater continuity of supervision. Lastly, by ensuring that sergeants serve in the field, rather than at a station, they can be considered as an element of minimum response and limit the need to call in additional personnel on overtime to backfill positions. This will help control costs and, more importantly, help limit staff burnout from overwork. Recommendation: To address the issues summarized above, it is recommended that the role and responsibilities of the two 12-hour patrol sergeants be redefined as primarily field-based supervisors and back-up call-takers. In this role, they will support deputies on more serious calls and provide back-up when deputies are tied up on other calls. Recommendation 23: Consolidate roles of Desk Sergeant and Lieutenant. Issue: Chanhassen law enforcement operations are overseen by a Carver County Sheriff Lieutenant who, under contract, is 100% committed to the City if Chanhassen. The Lieutenant’s role is both outward facing and internal facing. The position is responsible for serving as the primary liaison with the City and community and for providing leadership and oversight to those deputies assigned to the City of Chanhassen. The Lieutenant is supported in this effort by an administrative desk sergeant. The desk sergeant position provides some support to patrol operations, but largely serves an administrative role, helping with scheduling, communications, and other areas of internal support. In many larger agencies, this administrative role is warranted to create capacity for command staff to engage more heavily in organizational leadership and community relations. However, in Chanhassen, the small size and limited scope of operations, low crime rate, low call volume, as well as the availability of broader support resources within the Sheriff’s Office, indicate that the positions of desk sergeant and Lieutenant can be consolidated. This will also offer the Sheriff’s Office the ability to reallocate the resources dedicated to the desk sergeant position to direct patrol, better equipping the operation with staff to cover for leave and meet minimum staffing targets on shift without the excessive use of overtime. Recommendation: To better greater efficiency in the operation and ensure that maxim level of resources are dedicated to patrol, the core service of Chanhassen’s law enforcement operation, it is recommended that duties and responsibilities of the desk sergeant position be reallocated to both line-sergeants and the patrol lieutenants. The 237 34 CITY OF CHANHASSEN Lieutenant will take on direct responsibility for managerial responsibilities associated with daily service delivery. This change will need to be formalized through contract negotiations between the City of Chanhassen and the Carver County Sheriff’s Office. Recommendation 24: Create a recurring performance measurement and reporting process from the Sheriff’s Office to the City. Issue: One of the broader goals for the City, and recommendation themes from other departments, is to define a framework for measuring the outcomes of local government programs. The use of Computer Aided Dispatch (C AD), Records Management Systems (RMS), and case management systems to collect and collate law enforcement metrics is common in policing, and the Sheriff’s Office collects extensive data through various sources. However, there is a need to translate that data and information into a recurring performance measurement process that communicates key metrics to the City. The use of performance measures is an excellent management tool to help assess the overall effectiveness of services that are provided and determine if resources are allocated efficiently. Law enforcement programs can be subjected to measurement to ascertain current levels of effectiveness and efficiency. If performance is measured systematically, leaders will have the information that can serve as the basis to make changes to improve on quality, timeliness, or cost over time. Recommendation: The City of Chanhassen leadership team and Sheriff’s Office command staff should define a series of performance measures for each major program and work area. That data should be collected every quarter and presented to the City Manger’s team and, as necessary, City Council with identification of any important trends or changes, as well as actions taken by the Sheriff’s office in response to those trends. This reporting process should be clearly defined in the contact document and remittance of payment contingent upon its successful and timely completion. 238 ORGANIZATIONAL ASSESSMENT 35 Conclusion The purpose of this organizational assessment was to determine the staffing and resource needs within the City of Chanhassen and to identify process improvements, policy changes, and management structures needed to close the gap between staffing levels and service level goals. The results of this assessment show that the City has talented and dedicated staff who are able to provide an array of services well. However, there is still room for improvement in terms of communication, performance tracking, use of technology, and accomplishing preventative maintenance. The recommendations offered by the project team are intended to aid the organization in its alignment of staffing levels, operations, and policies with community expectations and industry best practices to continue to provide high- level services to the City of Chanhassen. The most important next step for the City will be to define service levels and metrics for all operations, because this will inform data-driven decisions about structure, staffing, and resource allocation. The City should be guided by regulations and best practices, as well as the priorities and needs of the community. It will also be important for the City to take advantage of its existing tools and resources as effectively as possible. New positions like the Communications Manager and Economic Development Manager should be supported by careful planning, and all City departments should be given the training and resources required to fully take advantage of the City’s investment in technology tools. Finally, the report recommends several staffing additions to help the City meet service needs. These staff positions in Parks and Public Works will be an investment, as detailed in the table below, but will help reduce the City’s reactive maintenance needs and extend the useful life of existing facilities and equipment. The following table, which was also shown in the Executive Summary, estimates the cost of new staff positions in the first year, based on the City’s existing salary ranges. Table 9: Staffing Cost Estimates Position Title Number of Positions Estimated Salary Costs Estimated Benefits Costs15 Total Estimated Staffing Costs Utility Technician 1 - 2 $65,000 - $164,000 $19,500 - $49,200 $84,500 - $213,200 Engineering Technician (Asset Management) 1 $57,000 - $85,000 $17,100 - $25,500 $74,100 - $110,500 Facilities Maintenance Technician 1 $56,000 - $71,000 $16,800 - $21,300 $72,800 - $92,300 Park Maintenance Operator 1 $56,000 - $71,000 $16,800 - $21,300 $72,800 - $92,300 Total 3 - 4 $234,000 - $391,000 $70,200 - $117,300 $304,200 - $508,300 15 Assumed to be 30% of salary costs. 239 36 CITY OF CHANHASSEN This page intentionally left blank to facilitate two-sided printing. 240 ORGANIZATIONAL ASSESSMENT 37 APPENDIX A: SAMPLE METRICS 241 38 CITY OF CHANHASSEN This page intentionally left blank to facilitate two-sided printing. 242 ORGANIZATIONAL ASSESSMENT 39 Table 10: Sample Metrics by Category and Function Function Workload Efficiency Outcome Communications • Number of social media and website posts • Number of minutes of video produced • Communications operating budget as a percent of the General Fund • Number of social media followers • Community survey responses on communication and engagement Economic Development • Number of business engagements per year • Economic Development budget as a percent of tax revenue collected • Number of new businesses per year • Total annual value of new development Finance • Number of General Ledger transactions • Number of bills issued • Number of Requests for Proposals generated • Average utility revenue generated per Finance position • Number of accounts payable transactions per position • Percent of Accounts Payable transactions processed within 30 calendar days • Number of billing errors per 1,000 bills issued • Number of audit findings • City bond rating Information Technology • Number of requests for help addressed • Number of hardware and software systems maintained • Staff hours per technology system • Percent of requests for help addressed within four hours • Number of days of network outage Planning and Zoning • Number of plan reviews • Number of plan reviews per position • Average number of days per plan review by type Building Permits and Inspections • Number of applications reviewed • Number of inspections conducted • Number of inspections per full-time equivalent staff position (FTE) • Number of permits per FTE • Average number of calendar days for application review • Average number of calendar days between inspection request and inspection Natural Resources • Number of City trees maintained • Average cost per tree maintained • Total number of trees managed per 1,000 residents • Change in the number of trees maintained year over year Parks • Number of acres maintained • Number of facilities maintained • Parks and open space acres maintained per FTE • Cost per acre maintained • Trail miles maintained per FTE • Cost per trail mile maintained • Parks-related expenditures per 1,000 residents • Community survey responses on park quality • Percent of work orders completed within X working days • Percent of preventative maintenance completed as scheduled • Number of work orders completed per FTE • Acres of natural habitat restored Recreation • Number of recreation programs offered • Number of special events held • Average cost and average revenue per program • Average cost per special event • Number of participants per program • Number of special event attendees 243 40 CITY OF CHANHASSEN Function Workload Efficiency Outcome • Community survey responses on recreation programs Facilities • Number of square feet of facilities maintained • Maintenance cost per square foot • Facility condition assessment ratings • Percent of work orders completed within X working days • Percent of preventative maintenance completed as scheduled Water, Wastewater, and Stormwater • Number of miles of pipe maintained • Number of plants and other infrastructure maintained • Number of meters read • Number of ponds and sewers maintained • Number of grading permits issued • Cost per producing 1,000 gallons of water • Percent of urgent field service requests responded to within one hour • Percent of non-urgent field service requests responded to within one business day • Number of mis-reads per 1,000 meter reads • Water quality rating • Number of flood events Streets • Number of miles of streets and sidewalks maintained • Number of signs and signals maintained • Miles that snowplows are driven • Maintenance cost per mile of street • Street quality assessments • Percent of streets plowed within four hours of a snow event • Percent of work orders completed within X working days • Percent of preventative maintenance completed as scheduled Law Enforcement • Number of arrests • Time spent on call response by type • Number of traffic incidents • Law enforcement cost per capita • Average arrival time after deputies are dispatched to scene • Percent of property crimes cleared • Percent of violent crimes cleared • Number of property crimes reported • Number of violent crimes reported 244 ORGANIZATIONAL ASSESSMENT 41 APPENDIX B: RECOMMENDED PARKS MAINTENANCE SERVICE STANDARDS 245 42 CITY OF CHANHASSEN This page intentionally left blank to facilitate two-sided printing. 246 ORGANIZATIONAL ASSESSMENT 43 Table 11: Recommended Parks Maintenance Service Standards Function Recommended Standard Basketball Courts, Pickleball Courts, and Skate Park • Weekly inspection • Maintenance as needed Boat Ramp • Daily cleaning and enforcement Debris and Litter • Daily pick up Grass and Plants • Mowing twice a month during peak season • Edging three times per month during peak season • Irrigation up to two times per week during peak season, depending on rainfall Facilities • Monthly inspection • Maintenance as needed Hockey Rinks • Cleaning and inspection daily during peak season Leaves • Daily leaf blowing during peak season Parking Lots • Daily enforcement Picnic Areas • Daily cleaning Piers and Docks • Weekly inspections • Maintenance as needed Playgrounds • Daily cleaning and overall inspection • More thorough inspection monthly Recreation Fields • Daily cleaning and maintenance during peak season Restrooms • Daily cleaning • Weekly deep cleaning Shelters • Daily cleaning during peak season Softball Fields • Raking after every use Trash Cans • Emptying five times per week Trees • Monthly inspections and pest management • Trimming every five years 247 City Council Item July 17, 2023 Item 2024 Preliminary Budget and Levy Discussion File No.Item No: A.3 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Kelly Grinnell, Finance Director Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority Financial Sustainability SUMMARY Staff will review draft General Fund budget projections for 2024 and levy projections for taxes payable in 2024. The attached report provides additional information. BACKGROUND DISCUSSION BUDGET RECOMMENDATION 248 ATTACHMENTS 2024 Levy and Budget Preliminary Discussion 2023-07-17 249 2024 Levy and Budget – Preliminary Discussion The City Council adopted a pay 2023 levy of $13,463,000, which was an increase of $799,924, or 6.3%. At that �me the Council reviewed levy projec�ons for 2024 and beyond. These levy projec�ons included increases for debt service on the bonds to be issued for the new Civic Campus. The levy projec�ons assumed increases of 7.0% to 7.5% per year in 2024 through 2026 to fully incorporate the new debt payments. Staff has incorporated the latest debt service projec�ons for the Civic Campus bonds and based on early projec�ons for 2024 budgets, the current levy projec�ons are listed below: Debt service payments on the Civic Campus begin in 2025 and gradually increase to approximately $2.5 million annually. The debt service payments are slightly higher than projected at the end of 2022 due to increased interest rates, the need to issue different payment structures for the building compared to the site ameni�es, and higher interest costs due to lower principal payments for the first five years (due to PW Facility debt service). The chart below shows the dollar and percent changes for the levy in 2023 compared to a preliminary es�mate for 2024: The General Fund is showing a 10.3% increase; however, a por�on of that increase is due to a shi� in expenses for street maintenance from the Transporta�on Infrastructure Management (TIM) Fund. Staff recommends moving the opera�ng expenses from that fund to the General Fund and recording only capital expenses in the TIM Fund. The General Fund increase would be 7% without the addi�onal TIM Fund expenses. Several factors are driving the roughly 7% increase in the General Fund budget projec�ons. Overall infla�on has been higher for the last two years and the City has seen several expense increases related to infla�on. The City is currently in year one of a three-year labor contract that calls for 3% cost-of-living increases. Health insurance rate increases for 2024 are unknown at this point but are capped at 7%. The 250 contract for police service is expected to increase 13% in 2024. Staff has budgeted for an update to the Strategic Plan in 2024. The budget also includes an ongoing $40,000 line item for lobbying expenses, due to the City’s planned capital budget and other requests of the legislature. Elec�ons expenses are higher for 2024 since it is an elec�on year. Staff is s�ll reviewing budget requests, so there will likely be addi�onal items. One good news item is one-�me public safety aid in the amount of $1.134 million that will be paid to the City in December 2023. These funds can be used for a variety of public safety uses, including equipment for fire, rescue, and emergency services. Staff is wai�ng for guidance from the State on deadlines for spending and repor�ng. Staff is looking at op�ons for spending these funds, including offse�ng the police contract increase, purchase of public safety capital equipment, security fencing for facili�es, etc. Another item for Council considera�on is spending the remaining ARPA funds. The Council commited $295,000 to add two fire captains and the Economic Development Manager posi�on in 2022 and 2023. The Council has also commited $1.3 million for Phase I of the Lake Ann Park Preserve Project. There is $1,288,849 in remaining funds. These funds must be obligated by December 2024 and fully spent by December 2026. Staff requests Council feedback on the preliminary projec�ons for the levy and General Fund budget, as well as ideas for the Public Safety Aid and remaining ARPA funds. 251 City Council Item July 17, 2023 Item Downtown Redevelopment Workshop File No.Item No: A.4 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Eric Maass, Planning Director Reviewed By Laurie Hokkanen SUGGESTED ACTION N/A Motion Type N/A Strategic Priority Development & Redevelopment SUMMARY Staff will guide the City Council through a discussion on potential redevelopment within the city's downtown area. Staff members from Roer's will be in attendance to present a concept plan that would involve the redevelopment of the former Chanhassen Cinema and adjacent properties. City Council will be asked to give general feedback only. BACKGROUND DISCUSSION BUDGET RECOMMENDATION 252 ATTACHMENTS Proposed Redevelopment Presentation 253 78th St. & Market Blvd. Proposed Redevelopment Chanhassen, MN 254 1000 Parkers Lake Rd Unnamed July 10, 2023 Minnetonka - MN W 78th St & Market Blvd Chanhassen, MN Location Map WEST 78TH STR E E T MARKET BLVDMARKET ST REET LAR EDO DR ALDI & VENUE APARTMENTS (NOT SHOWN ON AERIAL) CHANHASSEN DINNER THEATERS PROPOSED PROJECT SITE 255 VENUE APARTMENTS ALDI CHANHASSEN STATION CHANHASSEN DINNER THEATERS 974 977 964 23,685 SF RETAIL PARKING6,431 SF RESIDENTIAL 8,360 SF RETAIL 3,564 SF RETAIL 960 18 STALLS 13 STALLS 13 STALLS 5 STALLS973973 FUTURE LOREDO DRIVE EXTENSION21,540 SF RESIDENTIAL 1,554 SF ROOFROOFMARKET BLVDW 78TH ST MARKET ST DN RESTAURANT PATIO 3,887 SF AMENITY 1,944 SF 8,693 SF RETAIL 4,070 SF AMENITY15,408 SF RESIDENT PARKING 3,564 SF RETAIL PLAN NORTH Scale:1" = 80'-0" Market Blvd & W 78th St DISTRICT SITE PLAN 6/21/2023 Chanhassen, MN 256 56,806 SF PARKING 44,412 SF PARKING EXISTING RETAINING WALL TO BE REPLACED IN KIND EXISTING RETAINING WALL TO BE REMOVED - FOUNDATION WALL EXPOSED HOUSING ABOVE (UNEXCAVATED) 1,428 SF BOHSLOPE UP SLOPE DN MOVE IN 35,594 SF RESIDENTIAL 29,780 SF RESIDENTIAL 7,724 SF AMENITY UNIT TERRACES 3,122 SF AMENITY PLAN NORTH Scale:1" = 80'-0" Market Blvd & W 78th St FLOOR PLANS 6/21/2023 Chanhassen, MN MINUS 1 LEVEL LEVEL 2 PLAN 257 39,119 SF RESIDENTIAL 32,841 SF RESIDENTIAL PLAN NORTH Scale:1" = 80'-0" Market Blvd & W 78th St FLOOR PLANS 6/21/2023 Chanhassen, MN TYPICAL UPPER LEVEL FLOOR PLAN 258 1000 Parkers Lake Rd Unnamed July 10, 2023 Minnetonka - MN W 78th St & Market Blvd Chanhassen, MN Architecture Precedents 259 1000 Parkers Lake Rd Unnamed July 10, 2023 Minnetonka - MN W 78th St & Market Blvd Chanhassen, MN Architecture Precedents 260 City Council Item July 17, 2023 Item Future Work Session Schedule File No.Item No: A.5 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Kim Meuwissen, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY The City Council is tentatively scheduled to hold the following work sessions: July 24, 2023 Joint meeting with Planning Commission and Economic Development Commission - Downtown Design Guidelines and Uses Civic Campus update with BKV and HKGi August 14, 2023 Adult Use Cannabis regulation Interview Youth Commissioner applicants to Park & Rec and Environmental Commission The City Council is scheduled to hold a special meeting on August 21 to consider designs for the new City Hall and Civic Campus with BKV Group and HKGi. 261 BACKGROUND Staff or the City Council may suggest topics for work sessions. Dates are tentative until the meeting agenda is published. Work sessions are typically held at 5:30 pm on the second and fourth Monday of each month in conjunction with the regular City Council meeting, but may be scheduled for other times as needed. DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 262 City Council Item July 17, 2023 Item Approve City Council Minutes dated June 26, 2023 File No.Item No: D.1 Agenda Section CONSENT AGENDA Prepared By Kim Meuwissen, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the City Council minutes dated June 26, 2023." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS City Council Work Session Minutes dated June 26, 2023 263 City Council Regular Meeting Minutes dated June 26, 2023 264 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES JUNE 26, 2023 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilman von Oven, Councilwoman Schubert, and Councilman Kimber. COUNCIL MEMBERS ABSENT:None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Eric Maass, Planning Director; Charlie Howley, Public Works Director/City Engineer; Jerry Ruegemer, Park & Recreation Director; Lt. Lance Pearce, CCSO; Kelly Grinnell, Finance Director; Bob Generous, Senior Planner; Charlie Burke, Operations Manager; Erik Henricksen, Project Engineer; George Bender, Assistant City Engineer; Ari Lyksett, Communications Director; and Kim Meuwissen, City Clerk. PUBLIC PRESENT:None. TRAFFIC SAFETY COMMITTEE PRESENTATION Project Engineer Erik Henricksen introduced the Traffic Safety Committee (TSC), which meets monthly and includes members from Public Works, Planning, Engineering, Carver County Sheriff, and Parks & Recreation Departments. A total of 33 cases were reviewed by the TSC from August 2022 through June 2023, with 28 cases (85%) completed following TSC evaluation, 5 cases (15%) still open after TSC evaluation, with a majority pending follow-up studies or resident coordination, and 4 cases from 2021-2022 still open – 2 are CIP-related and 2 are continually being tracked. The most frequent requests are for crosswalk improvements, speed management issues, and cases that can be incorporated into capital projects. The integration of “Traffic Concerns” in the SeeClickFix (SCF) web portal has made it easier and more convenient for residents to report potential traffic concerns. Approximately 45% of cases are submitted through SCF. The speed trailer is deployed along major collectors and other hotspots identified by case tracking on a continually rotating schedule, Spring through Fall, resulting in a total of 13 locations this past year. The TSC also works with the Communications Department to continually refine public-facing material on the city’s Traffic Concerns website. Council asked about “road dieting,” how the speed signs track, and if they are always visible to drivers. Mr. Henricksen responded that road dieting is a technique restricting lane widths with the use of painted lines or bump-outs. The speed sign trailers are visible to drivers, but there are two signs that can be incognito but still collect speed data without affecting driver behavior. There are also tubes similar to traffic counters that can collect speed data. Council asked about cut-through justifications. Mr. Henricksen responded by looking at typical average daily traffic and then seeing an increase during AM and PM peak volumes. Typical cut-throughs might be heavier trucks or larger vehicles. Mr. Howley added that certain roads are designed to be cut-through roads if they are designated as collector roadways. A popular strategy is to contact the internet 265 City Council Work Session Minutes – June 26, 2023 2 wayfinding map servers (Google, Apple, and Ways) and tell them not to show a street as a through street to reduce cut-through traffic. Council asked if the new pavement markings on West 78th Street were considered “dieting” and noticed that an on-street parking spot was created. Mr. Henricksen responded yes since West 78 th Street is not signed No Parking. Council asked about concerns or reports regarding e-bikes. Mr. Henricksen has not received any concerns regarding e-bikes and electric vehicles. Mr. Ruegemer added that there would be future conversations regarding e-bike use on trails, and staff will likely bring it forward to the council for discussion in the future. Council asked about the evaluation process for installing driver feedback signs entering neighborhoods and how budgeting for these signs could be forecasted. Mr. Howley responded that the decision should be made based on if there was an actual speeding problem in a particular neighborhood. Council asked if requests were greater for permanent driver feedback signs or speed trailers. Mr. Henricksen responded that requests for driver feedback signs were higher than for speed trailers. He added that a majority of speeding concerns are based on public perception and not actual speeding. CHANHASSEN BLUFFS SPORTS COMPLEX UPDATE City Manager Laurie Hokkanen provided a project update, which included a final staff analysis. The city is authorized to hold a referendum in November 2024, which will provide more time to review and revise plans and prepare for the bonding process next year. The city is requesting $22 million from the State for the regional portions of this project. After receiving feedback from previous work sessions and sharing it with Developer Mark Nordland of Level 7 Development and RSP Architects, who were hired by the developer to prepare the plans. Level 7 Development has paid for all plan iterations presented to date Ms. Hokkanen presented an updated overall site plan, which includes independent living senior housing, medical rehabilitation facility, a hotel, and a car wash. The only change in the site plan is to the shape of the sports complex building in response to discussions that the building offers opportunities for all different types of users and meets the “Community for Life” goal. The upper level (concourse) view now includes details such as bathroom stall layouts. The restaurant/bar now includes a private party room. The community room now has an exterior entrance, and the concessions and ice viewing area have been designated. The field house size and shape have been expanded to provide for athletic association needs and includes a longer walking track. This eliminates any possibility of a future third sheet of ice. The ice level view provides defined layouts of the fitness/training room, indoor playground with two adjacent party rooms, elevator, public restrooms/locker rooms outside of rink 1 near the indoor playground, lobby, skate rental/sharpening, training and video review rooms, and hockey and referee locker rooms, and coach rooms. Field house storage and ice equipment/Zamboni areas are now defined. Bleachers are shown on both sides of the field house. 266 City Council Work Session Minutes – June 26, 2023 3 Mayor Ryan commented that the next step would be to obtain pricing to provide an understanding of the costs associated with each element of the facility so that when public communications begin, we will be able to determine where to cut or add. Overall, council appreciated the updates and changes to the building plan. A question was asked about conversations with the area schools regarding the use of the ice rinks. Ms. Hokkanen responded that there is a lot of interest, but time is needed for the schools to review current contracts with the Victoria Ice facility prior to making any decisions. Following determining the costs associated with the facility, Ms. Hokkanen indicated next steps would be for the council to consider how far they want to go with RSP Architects, as Level 7 has paid for all of the work done so far. Council should consider if they would like to take it to the next level of interior renderings prior to the referendum; that will be another phase of work. Another option would be if council would like to take it as far as construction drawings prior to the referendum. Facility updates and discussions will continue every couple of months, and there will be a series of decisions to be made. It is anticipated that Mr. Nordland will return with cost overviews sometime in August, after which next steps can proceed. CITY COUNCIL ROUNDTABLE Mayor Ryan solicited council members for any initiatives they would like to bring forward. Councilman von Oven asked about adding sidewalks along Pleasant View Road, as he has had many requests from his neighbors. Mr. Howley responded that a trail is planned for that entire corridor that will likely occur as part of the future Pleasant View Road improvement project and that a public open house will be held during the design process to obtain public input. Councilwoman Schuler asked about returning to monthly Law Enforcement and Fire Department updates. Ms. Hokkanen responded that quarterly updates had been planned, with the next one scheduled for July 24, 2023. Councilman Kimber brought up e-bike speeding and enforcement issues. Ms. Hokkanen stated that before we put out any communications to the public, staff will need to know how to respond to various complaints as far as follow-up and enforcement. Mayor Ryan asked Councilman McDonald if the new CEO of SouthWest Transit is scheduled to provide an update to the council at a future city council meeting. Councilman McDonald responded that he would check. FUTURE WORK SESSION SCHEDULE July 17, 2023 (July 10 meeting has been canceled) Presentation of Audit Results, Redpath Organizational Study/Staffing Study Presentation, Raftelis 2024 Preliminary Budget and Levy Discussion July 24, 2023 Joint Meeting with Planning Commission and Economic Development Commission to discuss the Downtown Design Guidelines project with HKGi 267 City Council Work Session Minutes – June 26, 2023 4 The work session adjourned at 6:43 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk 268 CHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES JUNE 26, 2023 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Schubert, Councilman McDonald, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT:N/A STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, Public Works Director/City Engineer; Eric Maass, Planning Director; Bob Generous, Senior Planner; Jerry Ruegemer, Parks & Recreation Director; Priya Tandon, Recreation Manager; Rick Rice, IT Manager; Kelly Grinnell, Finance Director; Andrea McDowell Poehler, City Attorney; Kim Meuwissen, City Clerk; Ari Lyksett, Communications Manager; Sarah Thiessen, Communications Specialist; Drew Zoromski, Digital Communications Specialist PUBLIC PRESENT: Tracy Duske and Missy Smutny IWCO Tom Madden 19260 Lake Avenue, Deephaven Akpovi Obakponovwe 7768 Arboretum Village Circle Edgar Cepuritius, Café Zupas 460 West Universal Circle, Sandy, UT PUBLIC ANNOUNCEMENTS: 1. Recognize Northern Lights Awards Mayor Ryan shared that the City Communications Department received the award for the video series to improve recruitment for a fire department position open in the city. The judges’ comments stated that the video was beautiful. The department received first place for this video. The City Communications Department also redesigned its website to improve website accessibility and searchability. The department received first place for this website redesign. Mayor Ryan congratulated the department for their hard work. 2. Recognition of Donation from IWCO for 4 th of July Celebration Mayor Ryan read a statement to recognize and thank IWCO for their $3,000 donation towards Family Night at the carnival on July 2 nd. Since 1986, IWCO has donated over $40,000 towards Chanhassen special events. Mayor Ryan thanked the organization for their generosity and corporate partnership over the years. 269 City Council Minutes – June 26, 2023 2 3. Invitation to the 40 th Annual 4th of July Celebration Mayor Ryan invited community members to attend the 4th of July Celebration. The celebration takes place at City Center Park and Lake Ann Park on July 2nd, 3rd, and 4th. The event is hosted by the City of Chanhassen in partnership with the Southwest Metro Chamber of Commerce and Chanhassen Rotary Club. Nicollet National Bank and IWCO are sponsors. There is a full schedule of events on the website. CONSENT AGENDA: Councilman McDonald motioned, Councilman Kimber seconded that the City Council approve the following consent agenda items 1 through 16 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated June 5, 2023 2. Approve City Council Special Meeting Minutes dated June 2, 2023 3. Receive Environmental Commission Minutes dated April 12, 2023 4. Receive Economic Development Commission Minutes dated May 9, 2023 5. Receive Planning Commission Minutes dated May 16 and June 6, 2023 6. Approve Claims Paid June 26, 2023 7. Authorize Equipment Purchase – Trailer Mounted Vactor 8. Approve Temporary Modification of the Licensed Premises to serve Beer in the Hackamore Brewing Company Parking Lot Area 9.Resolution 2023-51:Approve Professional Services Agreement from AE2S for the upgrade of the City SCADA system 10.Resolution 2023-52:Approve Three-year Cartegraph Asset Management and SeeClickFix renewal agreement for OpenGov 11. Approve Agreements with Corpay for AP Payment Processing and Stampli for AP Process Automation 12.Resolution 2023-53:Approve contract for Minger Construction for work associated with the Minnewashta Parkway Improvement Project 13.Resolution 2023-54:Designating Authority for Investment and Banking Transactions and Authorizing Signers 14.Resolution 2023-55:Authorizing Participating in OSA Performance Measurement Program 15.Resolution 2023-56:Supporting Request for State Funds in the 2024 Capital Bonding Bill 270 City Council Minutes – June 26, 2023 3 16.Ordinance 711: Amending City Code Chapter 16, Collection and Disposal Service – Section 16-33 (e) Operating Requirements All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. Tom Madden, 19260 Lake Avenue, Deephaven, addressed the City Council regarding the passage of the cannabis bill and the updates he is making to the store to make it safer and more efficient. If his store receives a license, they plan to use the standard monitoring system to track inventory and products. He thanked the City Council for their time and left a PowerPoint presentation with them to review. Akpovi Obakponovwe, 7768 Arboretum Village Circle, stated he moved to Chanhassen from the United Kingdom. He reviewed the 2040 plan for Chanhassen. He learned to play pickleball in Chanhassen, but the courts are in poor shape. He noted that the Chanhassen courts are a place for community gathering and encouraged the City Council to consider painting pickleball courts on the tennis courts or repairing the pickleball courts since they are cracked. GENERAL BUSINESS. 1. Planning Case #2023-08 Café Zupas and West Village Heights 4 th Addition Bob Generous, Senior Planner, provided an overview of the existing site and proposed location for the project. After the project review, the Planning Commission provided a recommendation for the project. Mr. Generous explained the site layout, architecture, building materials, and floor plan. Mayor Ryan shared concerns regarding the downtown city planning and design guidelines. She wanted there to be development downtown and see what is appropriate for Chanhassen long- term. She asked the attorney for clarification on what actions they could take. Andrea McDowell Poehler, City Attorney, stated that a moratorium is authorized by statute and can be adopted at any time if there is prior subdivision approval for a project. It is common to do this based on a previous study related to the issues or concerns that would change current ordinances. Mayor Ryan asked to table this item tonight and then request city staff study the downtown’s conditional uses before moving towards a moratorium ordinance. Mayor Ryan opened up the discussion for feedback. Councilman von Oven shared similar concerns with the project. He asked Planning Director Eric Maass how far they are from adopting the downtown design guidelines. Mr. Maass shared that staff is working with consultant HKGI and should be finalized by year’s end. Staff proposed a 271 City Council Minutes – June 26, 2023 4 vision statement for the central business district apart from the downtown design guidelines. Staff anticipated the uses portion to be ready between 60 and 90 days. Councilman Kimber asked if the moratorium needed to be defined to a specific area. Ms. McDowell Poehler stated it would be for a defined area of downtown in relation to the study or for specific uses in different zoning districts. Councilwoman Schubert asked if a moratorium would dissuade future developers from the downtown area. Mr. Maass shared that the development community is cognizant of the moratoriums and code updates. He stated that a moratorium is a strong action. He does not believe it would dissuade future developers, but it is likely that the developers will desire to mitigate future risks. Mayor Ryan asked Ms. McDowell Poehler for suggestions and recommendations on the timeline to adopt a moratorium. Ms. McDowell Poehler suggested providing additional time on top of 60 to 90 days or clarification that it is terminated once ordinances have been adopted. Councilman McDonald stated that two years ago, City Council considered putting businesses in the parking lot at Target and Byerly’s. He stated he needs to be convinced to do the moratorium and is unsure if it will benefit the city. Mayor Ryan stated that tonight would be a move to table the item and allow time for city staff to put together a study on uses. On July 17, city staff will present their findings to the City Council. She stated her desire is to create a uniform approach downtown prior to major development, such as the city campus and the movie theater. She wants to utilize the provided tools to ensure development is appropriate prior to taking the next steps. Mr. McDonald asked what new information that is not currently provided will be presented on July 17. Ms. McDowell Poehler stated that on July 17, there would be a directive to city staff to complete a study that would be a part of the interim ordinance for downtown usage design. Mr. McDonald asked how this decision will impact the development. Ms. McDowell Poehler stated that this could not pause the 60-day rule or the requirements of the subdivision ordinance on timing. The applicant would have to temporarily withdraw the application or the city would have to adopt findings denying the application based on moratorium ordinance. Mr. von Oven shared he wanted a cityscape that was safe and walkable for children and families. He stated it would be appropriate to pause to ensure the development fits with design developments. Mr. McDonald understood Mr. von Oven’s concerns and agreed the corridor development encompasses the north and south side and there should be a plan in place. Mr. Kimber asked about the previous study discussed during the planning meeting. He asked if there should have been a moratorium proposed at that time. This study came about when discussing the movie theater site. Mayor Ryan looked for options to pause the development during the discussion of design guidelines. 272 City Council Minutes – June 26, 2023 5 Mr. Maass stated the staff would be in contact with the developer regarding steps moving forward. There are a few paths staff will walk the developer through based on the decision moving forward. Edgar Cepuritius from Café Zupas stated he understood the desire for staff to create a downtown walkable area. Chanhassen has Target and Byerly’s to drive consumers to the area. Mr. Cepuritius stated the study considered a two-mile stretch downtown. He stated Café Zupas would love to be a part of the community in Chanhassen. He thinks there is a compromise to develop the downtown area to be walkable, while still providing daily retail needs. He shared the door to the south is a code requirement, but they would prefer it not to be in that location. Mayor Ryan stated she understood where the applicant is coming from and wants the City Council to have time to discuss the design to ensure uniformity. Mr. Cepuritius stated they have worked with Mr. Generous for 10 months to ensure the building and layout is compatible with the requirements. Café Zupas has spent time, money, and effort to move the project forward. Mayor Ryan understood the timing is not desirable for Café Zupas; however, the responsibility is to the community at large for long-term planning. Mr. Cepuritius encouraged the City Council to consider the current reality and how it fits with the vision for the downtown. Mayor Ryan encouraged Mr. Cepuritius to work closely with Mr. Maass moving forward for clarification and communication. Councilman McDonald moved, Councilman Kimber seconded that the Chanhassen City Council table the land use application made by Café Zupas until July 17, 2023, or until an agreed-upon timeframe with the applicant, and direct staff to prepare a moratorium ordinance restricting land use applications for properties zoned as Central Business District, and direct staff to study what uses are allowed as permitted, conditional, or interim uses within the CBD district. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman von Oven moved, Councilwoman Schubert seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 8:13 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk 273 City Council Item July 17, 2023 Item Receive Park & Recreation Commission Meeting Minutes dated May 23, 2023 File No.Item No: D.2 Agenda Section CONSENT AGENDA Prepared By Kim Meuwissen, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Park & Recreation Commission Meeting Minutes dated May 23, 2023." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 274 Park & Recreation Commission Meeting Minutes dated May 23, 2023 275 CHANHASSEN PARK AND RECREATION COMMISSION REGULAR MEETING MINUTES MAY 23, 2023 Chair Vasatka called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Don Vasatka, Chair; Heather Markert, Vice Chair; Dan Eidsmo; Matt Kutz; Jim Peck; Rob Swanson; Scott Pharis; Alexandra Jerdee, Youth Commissioner. MEMBERS ABSENT: None. STAFF PRESENT: Jerry Ruegemer, Park and Recreation Director; Priya Tandon, Recreation Manager; Laurie Hokkanen, City Manager; Mitchell Czech, Recreation Supervisor PUBLIC PRESENT: Judy Harder. APPROVAL OF AGENDA: Commissioner Peck moved, Commissioner Markert seconded to approve the agenda as presented. All voted in favor and the motion carried unanimously with a vote of 8 to 0. PUBLIC ANNOUNCEMENTS: 1. Invitation to Memorial Day Ceremony – May 29, 2023 Recreation Supervisor Czech invited the public to attend the Memorial Day Ceremony at City Center Park on May 29, 2023. He reviewed the cemetery services and shared that this free event will be co-hosted with the Chanhassen American Legion Post 580. VISITOR PRESENTATIONS: None. APPROVAL OF MINUTES: 1. Approve Park & Recreation Minutes dated April 25, 2023 Commissioner Pharis moved, Commissioner Swanson seconded to approve the Minutes of the Park and Recreation Commission Meeting dated April 25, 2023 as presented. All voted in favor and the motion carried unanimously with a vote of 8 to 0. GENERAL BUSINESS: 276 Park and Recreation Commission Minutes – May 23, 2023 2 1. Chanhassen Civic Campus Update Park and Recreation Director Ruegemer introduced City Manager Hokkanen who will give an update regarding the project. City Manager Hokkanen provided a PowerPoint presentation and update regarding significant projects starting to get underway, including the Civic Campus project. She shared about a facility study done in 2020-2021 to understand the condition of City Hall and other facilities including Fire Station, Fire Station 2, and other facilities. City Hall has run out of space, needs a new roof, has water intrusion issues, and they wanted to understand what it would look like to do a major project in the building. Consultants worked for 9 months and said it would be $17,000,000 to $19,000,000 to complete deferred maintenance and remodel the building to serve the needs of the city. Ms. Hokkanen noted the building would be better but still not exactly what the city would want today. An estimate for a new City Hall was $23,000,000 to $25,000,000 and the City Council then asked how they could take the City Center campus and turn it into the heart of downtown Chanhassen with many amenities. Ms. Hokkanen shared about a listening session and public tour of the City Hall space, community engagement, and amenities preferred by the public, including an expanded farmers’ market, performance space, pickleball courts, and a splash pad. The community would also like dappled shade areas, which are lush and park-like. She showed project plans on screen and walked the Commissioners through the possible layout of the Civic Campus. Commissioner Peck asked where funding will come from. Ms. Hokkanen replied it would be paid for with levy dollars, with a total anticipated budget of $35,000,000. This would include about a 7.5% levy increase for each of the three years. Commissioner Kutz asked why it was not proposed on a ballot so citizens could decide whether it is a worthwhile investment for the city. Ms. Hokkanen noted that is an option, and another project may potentially go to referendum. The City Council felt like many of these were core amenities that government is responsible for providing, particularly City Hall and the Senior Center, and they are using other ways to gather feedback instead of a referendum. To date, she has not heard significant negative feedback but has heard people who are excited about the amenities. Ms. Hokkanen clarified it has been discussed and debated and City Council has decided not to go forward with a referendum for this project. Commissioner Markert stated, after speaking with some of the public, she does not think the issues they are having with the current building are common knowledge. She thinks it would be great to share that the city did its due diligence to look at the costs of fixing the existing facility and how the decision was made to build a new one. Chair Vasatka attended the walk-through of the City Hall and saw how cramped things are, the weird locations, having to walk through other people’s offices to get to other offices, and the 277 Park and Recreation Commission Minutes – May 23, 2023 3 elevator that doesn’t work. He thanked Ms. Hokkanen for hosting that event for the public because it was great to see those spaces. Commissioner Pharis noted construction would start in May of 2024 and asked when it would finish. Ms. Hokkanen replied it will be in two phases. May 2024-2025 will be construction on City Hall and the Senior Center, with another 1-1.5 years to finish park improvements. It will probably be later in 2026 when the project is all complete. Commissioner Markert asked about signage and promoting Chanhassen. Ms. Hokkanen spoke about a separate project with HKGI to do some way-finding and the city is planning for an entryway monument and signage, including on the Civic Campus. Chair Vasatka asked whether the Park Commission will have input as the project moves forward. Mr. Ruegemer replied in the affirmative noting he would like the Commissioners to make notes when they see things such as a splash pad in Champlin or other park amenities. He also encouraged the Commissioners to ask friends and neighbors what they would like to see as part of the project. Commissioner Eidsmo asked whether the upper park will be turf or grass. Ms. Hokkanen replied they have been assuming it will be grass. Commissioner Eidsmo noted with how long the snow was on the ground, fields could not be utilized, whereas turf may be able to be used sooner. He stated he has a community meeting in a week and would like to share the information from tonight. Ms. Hokkanen stated Mr. Ruegemer brought her the numbers and that the levy is projected to increase by 7% for each the of three years. For a $350,000 home that translates to a $40-$50 increase per year. On a $600,000 home that translates to $90-$100 per year. Commissioner Vasatka asked if it goes away at the end of the third year or is absorbed into other things. Ms. Hokkanen replied they continue to make the payments, but the levy does not have to increase to account for the debt payments and it should go down about a 5% falloff for debt payments. Commissioner Pharis clarified it does not go away after three years. Ms. Hokkanen replied in the affirmative. Informational; no action required. Chair Vasatka asked for an update on the Avienda project. Ms. Hokkanen shared that the Chanhassen Bluffs Sports Complex is conceived to be two sheets of ice, 40,000-50,000 square feet of indoor year-round turf, a restaurant, an indoor playground, a walking track, and a working facility. A local option sales tax is the preferred funding mechanism and a study was done showing a ½ cent sales tax over 20 years would generate $38,000,000 to $40,000,000 and would cost the average Chanhassen resident about $35 per year 278 Park and Recreation Commission Minutes – May 23, 2023 4 in additional taxes. Ms. Hokkanen explained 45% of the amount would be paid by visitors and people that do not live in Chanhassen. She noted other new sales taxes that have happened recently and the city does not know how that will impact the City Council or community interest in seeing the project go forward. She noted the city will know more about the project by the next meeting. REPORTS: 1. 2023 Summer Programs Preview Recreation Manager Tandon provided an overview of the 2023 summer programs. She shared about the Summer Discovery Playground Program, youth sports and dance programs, outdoor camps, as well as safe kids and babysitting classes. Ms. Tandon noted the city will also bring back the Summer Concert Series, 4th of July Celebration, Math in the Park, and Music Together Lakeside. Commissioner Markert shared about Safety Town in Eden Prairie for 3-5 year-olds which teaches bike safety, car seat safety, and fire safety. Ms. Tandon will look into that as an option in the future. Chair Vasatka asked how the number of programs offered compares to the previous year. Ms. Tandon replied it is about the same as the previous year and it has returned to pre-Covid numbers. Commissioner Pharis asked if the city has ever done a gun safety or hunting safety session for kids. Ms. Tandon does not think they have. Commissioner Pharis noted an offering for 10-12 year-olds who may be interested may be a good idea. Commissioner Eidsmo asked about staffing for the programs. Ms. Tandon replied that for the most part, they are fully staffed. Informational; no action required. 2. 2023 Lake Ann Park Summer Programs Recreation Supervisor Czech provided an overview of the 2023 Lake Ann Park summer programs noting the concession/watercraft rental building will be open between Saturday, May 27, and Sunday, August 20, seven days per week between the hours of 11:00 a.m. and 7:00 p.m. He announced that Nolan Strang will serve as the Concessions Manager this summer. Nolan was a concession worker last summer at Lake Ann and served as a rink attendant this winter and Mr. Czech noted he brings a positive, hard-working attitude, and will be a tremendous asset to the team. Nolan will take on the duties of coordinating work schedules, ordering supplies, and day- to-day operations. The city has added two new monitors as menu boards for concessions. Mr. 279 Park and Recreation Commission Minutes – May 23, 2023 5 Czech shared about paddleboard rentals, picnic requests, and bookings, which will generate approximately $17,000 in revenue. He noted the beach at Lake Ann is open to the public all summer between the hours of 6:00 a.m. and 10:00 p.m. daily, with lifeguards starting Saturday, June 3, between the hours of 11:00 a.m. and 6:00 p.m. (weather-permitting) through August 13. Commissioner Swanson shared his surprise when he rented a pavilion that they had it for the entire day. He suggested half-day bookings as an option. Mr. Czech noted they have looked into it, but staffing in the City is not currently built for turning over the pavilions and cleaning them up for a second rental. Chair Vasatka suggest perhaps looking into it at one location such as Lake Ann where they could double the bookings and generate more revenue. Informational; no action required. COMMISSION MEMBER COMMITTEE REPORTS: None. COMMISSION MEMBER PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: Park and Recreation Director Ruegemer asked to recognize Mr. Czech and Ms. Tandon for the great work they have done in advancing the city’s technology and streamlining the recreation and events since they joined the city. ADJOURNMENT: Commissioner Kutz moved, Commissioner Eidsmo seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 8 to 0. The Park and Recreation Commission meeting was adjourned at 7:16 p.m. Submitted by Jerry Ruegemer Park and Recreation Director Prepared by Amy Weidman Administrative Support Specialist 280 City Council Item July 17, 2023 Item Receive Environmental Commission Meeting Minutes dated May 10, 2023 File No.Item No: D.3 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, Sr. Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Environmental Commission Meeting Minutes dated May 10, 2023." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 281 Environmental Commission Minutes dated May 10, 2023 282 1 Chanhassen Environmental Commission (EC) Chanhassen City Hall, Fountain Conference Room 6:00 pm May 10, 2023 Members Present: Kristin Fulkerson, Leslie Elhadi, Greg Hawks, Kaisa Buckholz, Scot Lacek, Julia Adams, Scott Grefe, Billy Cripe Members Absent: None Staff Present: Matt Unmacht, Assistant City Manager, Jamie Marsh, GreenCorps Intern Visitors: None Minutes April minutes were approved. Arbor Day Summary The day was fun with a good turnout and people learned about how deep the roots needed to be planted. The volunteers came prepared with gloves and shovels. Manuel Jordan gave a great presentation for the group. Environmental Academy Planning A communications plan needs to be started for staff. Jamie has talked to Carver County Environmental Center, and Thursday, September 21, 2023, works for them to give a presentation and give a tour. They can host 20 people maximum. “What’s Wrong with my Tree” presentation could be given. The suggestion was given for the presentation to be recorded or live-streamed for a larger audience. The presentation location should be decided by the person giving the talk. Matt will reach out to Jill Sinclair and Manuel Jordan to see if they are interested in giving the presentation. A suggestion of a “bug bounty” could be given as an incentive for finding a problem tree. Participant feedback could be gathered to find out what residents would like to see for future programs. No fee will be charged for the Academy. Communications about the Academy will start May 17. Posters, webpage posts, social media posts, and Chan-Happenings will all be utilized to advertise the Academy. Polimorphic software could be used to create a sign-up for the Academy. Matt will work with city staff to create a sign-up form. A QR code would be added to the poster to be able to get more information and sign up. It was suggested that staff produce a short video for a social post regarding the Academy and Matt will discuss that possibility with communications staff. City staff will be at each Academy session to take photographs. 283 2 Matt will reach out to Plymouth to find out about their academies and get any suggestions from their staff. July 3rd Trade Fair Planning An article discussing environmentally friendly gardening and composting was discussed. Examples from the article were: planting certain kinds of plants together in the garden, succession blooms, composting, etc. A discussion was had about giving a composting bin away as a prize. Possible games were discussed, such as Stump the Chump (having an expert available to answer questions), Match the Pollinator to the Plant, what would be good garden compost, etc. Keeping organics out of the landfill could be a push for composting. If a compost bin can be acquired, residents can take a composting quiz, if you get a certain number of questions correct, you can enter the raffle to win a compost bin. Pictures of plants and pictures of pollinators and you would match them together. Kaisa will work on the pollinator quiz and Billy will contact the Arboretum. Plans will be made to finalize the July 3rd Trade Fair table during the June Environmental Commission meeting. Commission Presentations: Kevin Zahler – Master Water Steward works ways for filtering water. There are grants for people to put buffers near the shore. Watershed meeting update: permits & clerical issues were discussed. There will be a Minnesota Watershed Summer Tour on June 20 & 21 in Albert Lea. Other Discussion Items: Stormwater pond management was discussed. There are surveys done of ¼ of the city ponds every year and they are ranked yearly to help develop a plan to keep them maintained. If residents have questions about storm ponds, they should contact the city. June meeting – will be on June 21 at East Water Treatment Plant at 6 pm. The State Environmental Commission Regional Meeting will be at Ridgedale on May 20, 2023, from 9- 12:30. The Fall Trivia event could be moved to November. Environmental Commission could adopt a drain. This will be put on a future agenda to discuss. 284 3 There is a Garlic Mustard Removal event on May 20 that Jamie will be running at Lake Ann. She is also planning a volunteer program to assist with a tree inventory at parks within the city. The inventory helps determine tree condition, and the diameter of the tree is measured. The inventory will start in June. Meeting adjourned at 7:17 pm Minutes prepared by Jenny Potter 285 City Council Item July 17, 2023 Item Approve Claims Paid dated July 17, 2023 File No.Item No: D.4 Agenda Section CONSENT AGENDA Prepared By Danielle Washburn, Assistant Finance Director Reviewed By Kelly Grinnell SUGGESTED ACTION "The Chanhassen City Council Approves Claims Paid dated July 17, 2023." Motion Type Simple Majority Vote of members present Strategic Priority Financial Sustainability SUMMARY BACKGROUND DISCUSSION The following claims are submitted for review and approval on July 17, 2023: Total Claims $967,182.94 BUDGET RECOMMENDATION 286 ATTACHMENTS Payment Summary Payment Detail 287 Accounts Payable Checks by Date - Summary Vendor Name Check Date Void Checks Check Amount 4 Imprint 06/22/2023 0.00 364.34 4 Paws Animal Control 06/22/2023 0.00 175.00 Advanced Engineering & Environmental Services, LLC 06/22/2023 0.00 1,920.00 Alyssa Nyberg 06/22/2023 0.00 50.00 American Pump Company 06/22/2023 0.00 261.44 ANGELL AIRE INC 06/22/2023 0.00 64.00 ARAMARK Refreshment Services, LLC 06/22/2023 0.00 271.06 ASPEN MILLS 06/22/2023 0.00 186.41 ASSOC OF MINN VOLUNTEER FIREFIGHTERS BENEFIT 06/22/2023 0.00 1,515.00 Barr Engineering Company 06/22/2023 0.00 2,288.50 BITUMINOUS ROADWAYS INC 06/22/2023 0.00 8,200.00 CAMPBELL KNUTSON 06/22/2023 0.00 18,415.35 Carver County 06/22/2023 0.00 146,100.00 CENTERPOINT ENERGY MINNEGASCO 06/22/2023 0.00 355.76 CenturyLink 06/22/2023 0.00 59.42 COMPUTER INTEGRATION TECHN. 06/22/2023 0.00 12,844.20 CUB FOODS 06/22/2023 0.00 42.16 Earl F Andersen Inc 06/22/2023 0.00 3,183.43 EMERGENCY AUTOMOTIVE TECH INC 06/22/2023 0.00 1,333.78 Ferguson Waterworks #2518 06/22/2023 0.00 1,087.18 Fidelity Security Life 06/22/2023 0.00 273.09 Fieldstone Family Homes 06/22/2023 0.00 2,500.00 Gary John Anderson Landscaping, Inc 06/22/2023 0.00 500.00 Geoff Elvee 06/22/2023 0.00 500.00 GREAT LAKES COCA-COLA DISTRIBUTION LLC 06/22/2023 0.00 1,142.09 Guard Guys, LLC 06/22/2023 0.00 869.40 HAWKINS CHEMICAL 06/22/2023 0.00 20.00 HENNEPIN COUNTY 06/22/2023 0.00 2,000.00 Heritage Shade Tree Consultants, Inc 06/22/2023 0.00 8,312.50 HERMAN'S LANDSCAPE SUPPLIES INC 06/22/2023 0.00 408.00 HOISINGTON KOEGLER GROUP 06/22/2023 0.00 67,499.77 Innovative Office Solutions LLC 06/22/2023 0.00 116.25 James C Peterson & Associates Inc 06/22/2023 0.00 3,150.00 Juli Al-Hilwani 06/22/2023 0.00 221.25 KAYE L BENSON 06/22/2023 0.00 616.00 Lano Equipment 06/22/2023 0.00 7,692.16 LEAGUE OF MN CITIES INS TRUST 06/22/2023 0.00 108,539.00 Lockridge Grindal Nauen P.L.L.P 06/22/2023 0.00 3,333.33 Marco Inc 06/22/2023 0.00 735.00 MOSS & BARNETT 06/22/2023 0.00 2,859.00 NAPA AUTO & TRUCK PARTS 06/22/2023 0.00 124.84 NEOGOV 06/22/2023 0.00 6,735.00 NORTHWEST LASERS & INSTRUMENTS 06/22/2023 0.00 173.25 Patrick Tommins 06/22/2023 0.00 50.00 Page 1 of 4 288 Vendor Name Check Date Void Checks Check Amount Pioneer Research Corporation 06/22/2023 0.00 876.26 Premium Waters, Inc 06/22/2023 0.00 70.95 Reem Danial 06/22/2023 0.00 331.80 RICHARD & BETH BROWN 06/22/2023 0.00 9.00 Ryan & Michelle Check 06/22/2023 0.00 500.00 Scott Lewis & Associates 06/22/2023 0.00 5,000.00 Shred-N-Go Inc 06/22/2023 0.00 1,300.00 Sophia Martin 06/22/2023 0.00 500.50 Steven Theisen 06/22/2023 0.00 500.00 TRAVIS HANSON 06/22/2023 0.00 50.00 Warning Lites of Minnesota, Inc. 06/22/2023 0.00 625.00 Waste Management of Minnesota, Inc 06/22/2023 0.00 759.01 WATSON COMPANY 06/22/2023 0.00 997.05 WM MUELLER & SONS INC 06/22/2023 0.00 2,056.64 XCEL ENERGY INC 06/22/2023 0.00 24,679.04 ZIEGLER INC 06/22/2023 0.00 2,316.74 AMERICAN TIRE DISTRIBUTORS INC 06/29/2023 0.00 211.38 ARAMARK Refreshment Services, LLC 06/29/2023 0.00 755.69 ASPEN MILLS 06/29/2023 0.00 114.71 Cintas Corporation No. 2 06/29/2023 0.00 82.29 Colonial Life & Accident Insurance Co 06/29/2023 0.00 128.46 Customized Fire Rescue Training Inc 06/29/2023 0.00 750.00 Dan & Brenda Vatland 06/29/2023 0.00 50.00 DLT SOLUTIONS INC 06/29/2023 0.00 3,074.60 Edina Heating & Cooling Inc 06/29/2023 0.00 1,610.00 EMERGENCY APPARATUS MAINT. INC 06/29/2023 0.00 795.00 FACTORY MOTOR PARTS COMPANY 06/29/2023 0.00 262.44 Ferguson Enterprises, Inc. #1657 06/29/2023 0.00 8.52 GONYEA HOMES 06/29/2023 0.00 2,500.00 HAWKINS CHEMICAL 06/29/2023 0.00 30,074.36 Hopkins Sports Camps LLC 06/29/2023 0.00 1,259.00 INTERNATIONAL CODE COUNCIL 06/29/2023 0.00 145.00 John Holm Inc 06/29/2023 0.00 9,000.00 Juli Al-Hilwani 06/29/2023 0.00 285.00 Lennar 06/29/2023 0.00 49,415.00 Marc S. Mutchler 06/29/2023 0.00 500.00 Michael Edward John Villalva 06/29/2023 0.00 1,000.00 Michael Homes Inc 06/29/2023 0.00 10,500.00 Minuteman Press 06/29/2023 0.00 116.00 Mitchell Czech 06/29/2023 0.00 200.00 MN VALLEY ELECTRIC COOP 06/29/2023 0.00 272.39 MTI DISTRIBUTING INC 06/29/2023 0.00 143.10 North American Safety, Inc. 06/29/2023 0.00 263.26 PAUL PALMER 06/29/2023 0.00 114.00 PRAIRIE RESTORATIONS INC 06/29/2023 0.00 2,260.00 RMB Environmental Laboratories Inc 06/29/2023 0.00 217.80 Schwickert Company 06/29/2023 0.00 29,147.03 SUMMIT COMPANIES 06/29/2023 0.00 3,979.00 TBEI, Inc 06/29/2023 0.00 300.54 THE MEDICINE SHOW 06/29/2023 0.00 650.00 The Toonies, LLC 06/29/2023 0.00 425.00 TPC Landscape 06/29/2023 0.00 500.00 Universal Athletic Services, Inc. 06/29/2023 0.00 3,243.15 Page 2 of 4 289 Vendor Name Check Date Void Checks Check Amount US Home Corporation 06/29/2023 0.00 2,500.00 VERIZON WIRELESS 06/29/2023 0.00 4,927.08 VESSCO INC 06/29/2023 0.00 302.50 WM MUELLER & SONS INC 06/29/2023 0.00 571.95 XCEL ENERGY INC 06/29/2023 0.00 14,116.58 Zoe Erpelding 06/29/2023 0.00 525.00 American Family Life Assurance Company of Columbus 07/06/2023 0.00 124.80 Ascensus 07/06/2023 0.00 2,000.00 Biersdorf & Associates 07/06/2023 0.00 50,080.40 BROADWAY AWARDS 07/06/2023 0.00 30.59 Bryce Fier 07/06/2023 0.00 75.00 CEMSTONE PRODUCTS CO 07/06/2023 0.00 311.50 CENTURYLINK 07/06/2023 0.00 1,762.84 Cleaning Solutions Services 07/06/2023 0.00 7,871.70 COMPUTER INTEGRATION TECHN. 07/06/2023 0.00 439.40 Crystal Infosystems LLC 07/06/2023 0.00 149.00 CVS - STORE #1747 07/06/2023 0.00 944.57 DAKOTA SUPPLY GROUP 07/06/2023 0.00 6,032.04 DeeAnn Triethart 07/06/2023 0.00 86.87 Dwayne Archuleta 07/06/2023 0.00 163.00 Ferguson Waterworks #2518 07/06/2023 0.00 28,068.81 Flow Control Automation LLC 07/06/2023 0.00 226.00 FRED BIALCZYK 07/06/2023 0.00 74.25 Global Equipment Company Inc 07/06/2023 0.00 131.94 GREEN MEADOWS INC 07/06/2023 0.00 95.84 GS DIRECT INC 07/06/2023 0.00 1,470.03 HAWKINS CHEMICAL 07/06/2023 0.00 5,901.00 Innovative Office Solutions LLC 07/06/2023 0.00 377.54 James Peterson 07/06/2023 0.00 750.00 Jennifer Xuan Tuyet Doan-Nguyen 07/06/2023 0.00 667.56 John Vavrin 07/06/2023 0.00 250.00 KENNEDY & GRAVEN, CHARTERED 07/06/2023 0.00 3,119.00 KIMLEY HORN AND ASSOCIATES INC 07/06/2023 0.00 53,364.84 Mary Cohrs 07/06/2023 0.00 58.10 MED Alliance Group Inc 07/06/2023 0.00 213.94 METROPOLITAN FORD 07/06/2023 0.00 60.38 Michael Homes Inc 07/06/2023 0.00 750.00 MN DEPT OF TRANSPORTATION 07/06/2023 0.00 120,095.02 MN FIRE SERVICE CERTIFICATION BOARD 07/06/2023 0.00 152.25 NAPA AUTO & TRUCK PARTS 07/06/2023 0.00 86.19 Nolan Strang 07/06/2023 0.00 13.52 Northstar Companies 07/06/2023 0.00 5,117.00 OpenGov Inc 07/06/2023 0.00 500.00 O'Reilly Automotive Inc 07/06/2023 0.00 547.62 Paul & Kylie Vincent 07/06/2023 0.00 750.00 POWERPLAN OIB 07/06/2023 0.00 205.09 RMB Environmental Laboratories Inc 07/06/2023 0.00 217.80 Samantha DiMaggio 07/06/2023 0.00 115.28 SCOTT NELSON COACHING INC 07/06/2023 0.00 625.00 Senja Inc 07/06/2023 0.00 176.00 Shadywood Tree Experts and Landscaping 07/06/2023 0.00 7,865.00 Signart Company Inc 07/06/2023 0.00 65.00 SIR LINES-A-LOT 07/06/2023 0.00 19,502.10 Page 3 of 4 290 Vendor Name Check Date Void Checks Check Amount Taylor Pederson 07/06/2023 0.00 2,002.68 Travis Ott 07/06/2023 0.00 667.56 ULTIMATE CONTROLS ELECTRIC LLC 07/06/2023 0.00 2,900.00 WATSON COMPANY 07/06/2023 0.00 1,561.62 WM MUELLER & SONS INC 07/06/2023 0.00 1,424.38 XCEL ENERGY INC 07/06/2023 0.00 203.11 Yamaha Golf & Utility 07/06/2023 0.00 425.00 ZAHL-PETROLEUM MAINTENANCE CO 07/06/2023 0.00 1,360.00 Report Total:967,182.94 Page 4 of 4 291 AP Check Detail User: dwashburn Printed: 7/11/2023 9:26:49 AM Last Name Acct 1 Amount Check Date Description 4 Imprint 101-1600-4130 364.34 6/22/2023 4th of July temp Tattoos 364.34 6/22/2023 4 Imprint 364.34 4 Paws Animal Control 101-1260-4300 175.00 6/22/2023 May, 2023 175.00 6/22/2023 4 Paws Animal Control 175.00 Advanced Engineering & Environmental Services, LLC 701-0000-4300 960.00 6/22/2023 2023 SCADA Service - Project P05126-2022-003 Advanced Engineering & Environmental Services, LLC 700-0000-4300 960.00 6/22/2023 2023 SCADA Service - Project P05126-2022-003 1,920.00 6/22/2023 Advanced Engineering & Environmental Services, LLC 1,920.00 Al-Hilwani Juli 101-1530-4347 146.25 6/22/2023 Personal Training Sessions Al-Hilwani Juli 101-1539-4343 75.00 6/22/2023 Pickleball Lessons 221.25 6/22/2023 Al-Hilwani Juli 101-1530-4347 285.00 6/29/2023 Personal Training - 10 Pk 285.00 6/29/2023 AP - Check Detail (7/11/2023)Page 1 of 30 292 Last Name Acct 1 Amount Check Date Description Al-Hilwani Juli 506.25 American Family Life Assurance Company of Columbus 101-0000-2008 124.80 7/6/2023 June, 2023 124.80 7/6/2023 American Family Life Assurance Company of Columbus 124.80 American Pump Company 700-0000-4550 261.44 6/22/2023 Part camlock and discharge clamp 261.44 6/22/2023 American Pump Company 261.44 AMERICAN TIRE DISTRIBUTORS INC 101-1250-4140 211.38 6/29/2023 101T Uni Laredo Cross Country Tour 211.38 6/29/2023 AMERICAN TIRE DISTRIBUTORS INC 211.38 ANGELL AIRE INC 101-1250-3305 64.00 6/22/2023 Job Cancelled - Permit 2023-01661 - 461 Trap Line Ln 64.00 6/22/2023 ANGELL AIRE INC 64.00 ARAMARK Refreshment Services, LLC 101-1120-4110 271.06 6/22/2023 Bronze Water Filter 271.06 6/22/2023 ARAMARK Refreshment Services, LLC 101-1120-4110 472.79 6/29/2023 Caribou Blend Kcup, Caribou Decaf, Caribou Regular ARAMARK Refreshment Services, LLC 101-1120-4110 187.33 6/29/2023 Caribou Blend Kcup, Caribou Regular, Creamer, Starbucks ARAMARK Refreshment Services, LLC 101-1120-4110 95.57 6/29/2023 Caribou Blend Kcup, Caribou Regular 755.69 6/29/2023 AP - Check Detail (7/11/2023)Page 2 of 30 293 Last Name Acct 1 Amount Check Date Description ARAMARK Refreshment Services, LLC 1,026.75 Archuleta Dwayne 101-1638-3630 163.00 7/6/2023 Lake Ann Adventure Camp refund-Austin Archuleta 163.00 7/6/2023 Archuleta Dwayne 163.00 Ascensus 101-1130-4300 2,000.00 7/6/2023 Plan Termination Cost Study 2,000.00 7/6/2023 Ascensus 2,000.00 ASPEN MILLS 101-1220-4240 19.00 6/22/2023 CB FF of Year Bar Blue/Silver ASPEN MILLS 101-1220-4240 167.41 6/22/2023 Custom Badge - M Smith 186.41 6/22/2023 ASPEN MILLS 101-1220-4359 10.00 6/29/2023 Late Charge per MN Statute 471.425 ASPEN MILLS 101-1220-4240 104.71 6/29/2023 CB FF of Year Bar Blue/Silver - C Pribble 114.71 6/29/2023 ASPEN MILLS 301.12 Barr Engineering Company 700-7025-4300 1,408.00 6/22/2023 Well Rehab Project #10 and #12 Barr Engineering Company 700-7025-4300 880.50 6/22/2023 Well Rehab Project #3, #4, #11, #15 2,288.50 6/22/2023 Barr Engineering Company 2,288.50 BENSON KAYE L 101-1539-4343 616.00 6/22/2023 Fit for Life Instruction 616.00 6/22/2023 AP - Check Detail (7/11/2023)Page 3 of 30 294 Last Name Acct 1 Amount Check Date Description BENSON KAYE L 616.00 BIALCZYK FRED 720-7202-4130 74.25 7/6/2023 Tree Rebate 74.25 7/6/2023 BIALCZYK FRED 74.25 Biersdorf & Associates 605-6502-4701 50,080.40 7/6/2023 Halla Parcel 14 50,080.40 7/6/2023 Biersdorf & Associates 50,080.40 BITUMINOUS ROADWAYS INC 720-7207-4570 4,900.00 6/22/2023 Pointe Lake Lucy Cb repair in curb BITUMINOUS ROADWAYS INC 101-1320-4157 3,300.00 6/22/2023 Lake Susan Dr Curb Replacement 8,200.00 6/22/2023 BITUMINOUS ROADWAYS INC 8,200.00 BROADWAY AWARDS 101-1120-4110 30.59 7/6/2023 2"x3" Magnetic Name Badge 30.59 7/6/2023 BROADWAY AWARDS 30.59 BROWN RICHARD & BETH 101-0000-2033 9.00 6/22/2023 Overpayment - 2630 Orchard Lane Meets & Bounds Lot Split 9.00 6/22/2023 BROWN RICHARD & BETH 9.00 CAMPBELL KNUTSON 101-1140-4302 18,415.35 6/22/2023 Legal Services - May, 2023 18,415.35 6/22/2023 AP - Check Detail (7/11/2023)Page 4 of 30 295 Last Name Acct 1 Amount Check Date Description CAMPBELL KNUTSON 18,415.35 Carver County 700-1160-4326 650.00 6/22/2023 Internet Service Carver County 101-1160-4326 450.00 6/22/2023 Internet Service Carver County 601-6303-4801 145,000.00 6/22/2023 Joint Powers Agreement - CSAH 18 Recon 146,100.00 6/22/2023 Carver County 146,100.00 CEMSTONE PRODUCTS CO 101-1320-4157 311.50 7/6/2023 4500, 3/4 GV, AE 311.50 7/6/2023 CEMSTONE PRODUCTS CO 311.50 CENTERPOINT ENERGY MINNEGASCO 101-1170-4321 33.10 6/22/2023 Monthly Service - 7610 Laredo, 2310 Coulter Blvd, 391 W 78th CENTERPOINT ENERGY MINNEGASCO 101-1220-4321 264.82 6/22/2023 Monthly Service - 7610 Laredo, 2310 Coulter Blvd, 391 W 78th CENTERPOINT ENERGY MINNEGASCO 101-1530-4321 57.84 6/22/2023 Monthly Service - 7610 Laredo, 2310 Coulter Blvd, 391 W 78th 355.76 6/22/2023 CENTERPOINT ENERGY MINNEGASCO 355.76 CenturyLink 700-7043-4310 59.42 6/22/2023 Monthly Service - June 13 - Jul 12 59.42 6/22/2023 CENTURYLINK 700-7019-4310 215.69 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 700-0000-4310 6.16 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 701-0000-4310 6.16 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 101-1160-4325 250.78 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 101-1540-4310 61.82 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 101-1160-4325 125.72 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 101-1550-4310 30.78 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 101-1350-4310 30.78 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 101-1220-4310 0.74 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 700-0000-4310 15.51 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 101-1190-4310 123.64 7/6/2023 Monthly Service - June 21-July 20, 2023 AP - Check Detail (7/11/2023)Page 5 of 30 296 Last Name Acct 1 Amount Check Date Description CENTURYLINK 101-1312-4310 49.24 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 101-1170-4310 830.31 7/6/2023 Monthly Service - June 21-July 20, 2023 CENTURYLINK 701-0000-4310 15.51 7/6/2023 Monthly Service - June 21-July 20, 2023 1,762.84 7/6/2023 CENTURYLINK 1,822.26 Check Ryan & Michelle 101-0000-2073 500.00 6/22/2023 Erosion Control - Permit 2023-01147 - 1909 Della Dr 500.00 6/22/2023 Check Ryan & Michelle 500.00 Cintas Corporation No. 2 101-1550-4300 82.29 6/29/2023 1st Aid Cabinet 82.29 6/29/2023 Cintas Corporation No. 2 82.29 Cleaning Solutions Services 700-0000-4511 62.10 7/6/2023 Cleaning services-Public Works Cleaning Solutions Services 101-1170-4511 3,090.00 7/6/2023 Cleaning services-City Hall Cleaning Solutions Services 701-0000-4511 62.10 7/6/2023 Cleaning services-Public Works Cleaning Solutions Services 101-1190-4511 3,912.30 7/6/2023 Cleaning services-Library Cleaning Solutions Services 101-1312-4511 496.80 7/6/2023 Cleaning services-Public Works Cleaning Solutions Services 101-1220-4511 248.40 7/6/2023 Cleaning services-Fire Station 1 7,871.70 7/6/2023 Cleaning Solutions Services 7,871.70 Cohrs Mary 101-0000-2033 58.10 7/6/2023 Refund permit-1730 Koehnen Cir E 58.10 7/6/2023 Cohrs Mary 58.10 Colonial Life & Accident Insurance Co 101-0000-2008 37.20 6/29/2023 June, 2023 AFLAC AP - Check Detail (7/11/2023)Page 6 of 30 297 Last Name Acct 1 Amount Check Date Description Colonial Life & Accident Insurance Co 701-0000-2008 15.30 6/29/2023 June, 2023 AFLAC Colonial Life & Accident Insurance Co 700-0000-2008 75.96 6/29/2023 June, 2023 AFLAC 128.46 6/29/2023 Colonial Life & Accident Insurance Co 128.46 COMPUTER INTEGRATION TECHN.700-7025-4706 12,739.00 6/22/2023 Replacement SCADA Servers- Water Plant COMPUTER INTEGRATION TECHN.101-1160-4211 105.20 6/22/2023 Azure Exchange Online Enterprise Mobility Visio 12,844.20 6/22/2023 COMPUTER INTEGRATION TECHN.101-1160-4211 439.40 7/6/2023 Datto SAAS Backup Service-July 439.40 7/6/2023 COMPUTER INTEGRATION TECHN. 13,283.60 Crystal Infosystems LLC 101-1120-4110 149.00 7/6/2023 Toner 149.00 7/6/2023 Crystal Infosystems LLC 149.00 CUB FOODS 101-1220-4142 42.16 6/22/2023 Water, Hand Soap 42.16 6/22/2023 CUB FOODS 42.16 Customized Fire Rescue Training Inc 101-1220-4370 750.00 6/29/2023 Fire Apparatus 40 Hr Course 750.00 6/29/2023 Customized Fire Rescue Training Inc 750.00 CVS - STORE #1747 700-0000-2020 944.57 7/6/2023 Utility Refund-7765 Galpin Blvd- Sprinkler AP - Check Detail (7/11/2023)Page 7 of 30 298 Last Name Acct 1 Amount Check Date Description 944.57 7/6/2023 CVS - STORE #1747 944.57 Czech Mitchell 101-0000-1027 200.00 6/29/2023 Additional Cash - Lake Ann Concessions 200.00 6/29/2023 Czech Mitchell 200.00 DAKOTA SUPPLY GROUP 700-0000-4550 1,116.72 7/6/2023 Welding Equipment DAKOTA SUPPLY GROUP 700-0000-4550 3,126.07 7/6/2023 Welding Equipment DAKOTA SUPPLY GROUP 701-0000-4551 1,789.25 7/6/2023 Welding Equipment 6,032.04 7/6/2023 DAKOTA SUPPLY GROUP 6,032.04 Danial Reem 101-1539-4343 331.80 6/22/2023 Zumba Instruction 331.80 6/22/2023 Danial Reem 331.80 DiMaggio Samantha 101-1123-4381 115.28 7/6/2023 Mileage-EDAM Conference Rochester MN 115.28 7/6/2023 DiMaggio Samantha 115.28 DLT SOLUTIONS INC 101-1160-4217 3,074.60 6/29/2023 AutoDeck Annual Sofware License Renewal 3,074.60 6/29/2023 DLT SOLUTIONS INC 3,074.60 AP - Check Detail (7/11/2023)Page 8 of 30 299 Last Name Acct 1 Amount Check Date Description Earl F Andersen Inc 101-1320-4155 1,477.59 6/22/2023 traffic signs - Stop, no parking Earl F Andersen Inc 101-1320-4155 1,705.84 6/22/2023 traffic signs - Street Names 3,183.43 6/22/2023 Earl F Andersen Inc 3,183.43 Edina Heating & Cooling Inc 101-1312-4510 1,610.00 6/29/2023 Air Conditioner Repair 1,610.00 6/29/2023 Edina Heating & Cooling Inc 1,610.00 Elvee Geoff 101-1620-4345 500.00 6/22/2023 Summer Concert Series Performance 500.00 6/22/2023 Elvee Geoff 500.00 EMERGENCY APPARATUS MAINT. INC 101-1220-4530 265.00 6/29/2023 Pump Test - Engine 209 E11 EMERGENCY APPARATUS MAINT. INC 101-1220-4530 265.00 6/29/2023 Pump Test - Laddar 208 EMERGENCY APPARATUS MAINT. INC 101-1220-4530 265.00 6/29/2023 Pump Test - Engine 210 E1 795.00 6/29/2023 EMERGENCY APPARATUS MAINT. INC 795.00 EMERGENCY AUTOMOTIVE TECH INC 101-1550-4140 1,333.78 6/22/2023 Whelen Responder 2 Low Profile LED 1,333.78 6/22/2023 EMERGENCY AUTOMOTIVE TECH INC 1,333.78 Erpelding Zoe 101-0000-1027 275.00 6/29/2023 4th of July Celebration - Change for Kiddie Games Erpelding Zoe 101-0000-1027 250.00 6/29/2023 4th of July Celebration - T-Shirt Sales Change 525.00 6/29/2023 AP - Check Detail (7/11/2023)Page 9 of 30 300 Last Name Acct 1 Amount Check Date Description Erpelding Zoe 525.00 FACTORY MOTOR PARTS COMPANY 101-1370-4170 262.44 6/29/2023 FVP DEF55Gal 262.44 6/29/2023 FACTORY MOTOR PARTS COMPANY 262.44 Ferguson Enterprises, Inc. #1657 101-1550-4151 8.52 6/29/2023 LF 3/4 CB VB 8.52 6/29/2023 Ferguson Enterprises, Inc. #1657 8.52 Ferguson Waterworks #2518 700-0000-4550 1,107.13 6/22/2023 Curb BX Thrd, Rep Coup, Rep Lid Ferguson Waterworks #2518 700-0000-4550 -19.95 6/22/2023 Pent Plug - Return 1,087.18 6/22/2023 Ferguson Waterworks #2518 700-6051-4290 2,312.13 7/6/2023 2 Brz Op Nut Ferguson Waterworks #2518 720-6051-4290 676.29 7/6/2023 1/2x6 Curb Bx;1/4 CB Rep Lid;1/4 Pl-Lid;1/2 Curb Bx; diamond bld Ferguson Waterworks #2518 700-6051-4290 512.25 7/6/2023 1/4x6 Blk Stl Nip; 1/4x12 Curb Bx; 1/4 Tap Curb Bx; 1/4 Brs Plug Ferguson Waterworks #2518 700-0000-4550 2,968.14 7/6/2023 3" & 1 1/2" Meter Ferguson Waterworks #2518 700-6051-4290 21,600.00 7/6/2023 17# Mag Ano Pkg 28,068.81 7/6/2023 Ferguson Waterworks #2518 29,155.99 Fidelity Security Life 720-0000-2007 6.63 6/22/2023 July, 2023 Vision Fidelity Security Life 701-0000-2007 9.11 6/22/2023 July, 2023 Vision Fidelity Security Life 700-0000-2007 15.75 6/22/2023 July, 2023 Vision Fidelity Security Life 101-0000-2007 241.60 6/22/2023 July, 2023 Vision 273.09 6/22/2023 Fidelity Security Life 273.09 AP - Check Detail (7/11/2023)Page 10 of 30 301 Last Name Acct 1 Amount Check Date Description Fieldstone Family Homes 101-0000-2072 2,500.00 6/22/2023 As-Built - Permit 2021-04743 - 730 Crossroads Ct 2,500.00 6/22/2023 Fieldstone Family Homes 2,500.00 Fier Bryce 720-7202-4130 75.00 7/6/2023 Tree Rebate 75.00 7/6/2023 Fier Bryce 75.00 Flow Control Automation LLC 701-0000-4551 226.00 7/6/2023 Diaphragm, Locking Ring, O-Ring 226.00 7/6/2023 Flow Control Automation LLC 226.00 Gary John Anderson Landscaping, Inc 101-0000-2073 500.00 6/22/2023 Erosion Control - Permit 2023-01155 - 7310 Paisley Ct 500.00 6/22/2023 Gary John Anderson Landscaping, Inc 500.00 Global Equipment Company Inc 101-1550-4120 131.94 7/6/2023 Wheel Kit 131.94 7/6/2023 Global Equipment Company Inc 131.94 GONYEA HOMES 101-0000-2072 2,500.00 6/29/2023 As-Built - Permit 2021-05870 - 7035 Lucy Ridge Ln 2,500.00 6/29/2023 GONYEA HOMES 2,500.00 GREAT LAKES COCA-COLA DISTRIBUTION LLC 101-1540-4130 1,142.09 6/22/2023 Coffee, Soda, Sports Drinks, Water AP - Check Detail (7/11/2023)Page 11 of 30 302 Last Name Acct 1 Amount Check Date Description 1,142.09 6/22/2023 GREAT LAKES COCA-COLA DISTRIBUTION LLC 1,142.09 GREEN MEADOWS INC 101-1220-1193 95.84 7/6/2023 Lawn Mowing 95.84 7/6/2023 GREEN MEADOWS INC 95.84 GS DIRECT INC 101-1120-4110 1,470.03 7/6/2023 Toner 1,470.03 7/6/2023 GS DIRECT INC 1,470.03 Guard Guys, LLC 101-1120-4352 424.85 6/22/2023 Testing Guard Guys, LLC 101-1320-4300 283.00 6/22/2023 Testing Guard Guys, LLC 101-1120-4352 161.55 6/22/2023 Testing 869.40 6/22/2023 Guard Guys, LLC 869.40 HANSON TRAVIS 700-7204-4901 50.00 6/22/2023 Waterwise Rebates - Smart Irrigation Controller 50.00 6/22/2023 HANSON TRAVIS 50.00 HAWKINS CHEMICAL 700-7043-4160 20.00 6/22/2023 Chlorine Cylinder 20.00 6/22/2023 HAWKINS CHEMICAL 700-7019-4160 10,016.75 6/29/2023 Azone 15 HAWKINS CHEMICAL 700-7043-4160 12,529.13 6/29/2023 Corrosion Inhibitor HAWKINS CHEMICAL 700-7019-4160 7,528.48 6/29/2023 Corrosion Inhibitor AP - Check Detail (7/11/2023)Page 12 of 30 303 Last Name Acct 1 Amount Check Date Description 30,074.36 6/29/2023 HAWKINS CHEMICAL 700-7043-4160 5,901.00 7/6/2023 Chlorine 5,901.00 7/6/2023 HAWKINS CHEMICAL 35,995.36 HENNEPIN COUNTY 101-1150-4501 2,000.00 6/22/2023 Assessment Fees - 08/01/22 - 07/31/23 2,000.00 6/22/2023 HENNEPIN COUNTY 2,000.00 Heritage Shade Tree Consultants, Inc 720-7201-4300 8,312.50 6/22/2023 Urban Forestry Consulting 8,312.50 6/22/2023 Heritage Shade Tree Consultants, Inc 8,312.50 HERMAN'S LANDSCAPE SUPPLIES INC 700-0000-4150 68.00 6/22/2023 Pulverized Dirt HERMAN'S LANDSCAPE SUPPLIES INC 101-1320-4158 68.00 6/22/2023 Pulverized Dirt HERMAN'S LANDSCAPE SUPPLIES INC 700-0000-4150 68.00 6/22/2023 Pulverized Dirt HERMAN'S LANDSCAPE SUPPLIES INC 101-1320-4158 68.00 6/22/2023 Pulverized Dirt HERMAN'S LANDSCAPE SUPPLIES INC 101-1320-4158 136.00 6/22/2023 Pulverized Dirt 408.00 6/22/2023 HERMAN'S LANDSCAPE SUPPLIES INC 408.00 HOISINGTON KOEGLER GROUP 101-1420-4300 8,703.75 6/22/2023 Chanhassen Civic Campus - March 1 to March 31, 2023 HOISINGTON KOEGLER GROUP 101-1420-4359 261.12 6/22/2023 Late Charge per MN Statute 471.425 HOISINGTON KOEGLER GROUP 101-1420-4300 5,412.52 6/22/2023 Chanhassen Civic Campus - April 1 to April 30, 2023 HOISINGTON KOEGLER GROUP 101-1420-4359 81.19 6/22/2023 Late Charge per MN Statute 471.425 HOISINGTON KOEGLER GROUP 410-4410-4300 46,854.00 6/22/2023 Chanhassen Lake Ann Preserve Design - May 1 to May 31, 2023 HOISINGTON KOEGLER GROUP 101-1420-4300 6,187.19 6/22/2023 Chanhassen Civic Campus - May 1 to May 31, 2023 AP - Check Detail (7/11/2023)Page 13 of 30 304 Last Name Acct 1 Amount Check Date Description 67,499.77 6/22/2023 HOISINGTON KOEGLER GROUP 67,499.77 Hopkins Sports Camps LLC 101-1731-3636 1,259.00 6/29/2023 Tennis Camp 1,259.00 6/29/2023 Hopkins Sports Camps LLC 1,259.00 Innovative Office Solutions LLC 101-1120-4110 75.72 6/22/2023 Clip, Thermal Roll Paper, Highlighters, Paper Innovative Office Solutions LLC 101-1120-4110 40.53 6/22/2023 Pencil, Paper, Pen 116.25 6/22/2023 Innovative Office Solutions LLC 101-1120-4110 36.38 7/6/2023 Office Supplies Innovative Office Solutions LLC 101-1120-4110 104.73 7/6/2023 Office Supplies Innovative Office Solutions LLC 101-1120-4110 236.43 7/6/2023 Office Supplies 377.54 7/6/2023 Innovative Office Solutions LLC 493.79 INTERNATIONAL CODE COUNCIL 101-1250-4360 145.00 6/29/2023 Membership # 117650 145.00 6/29/2023 INTERNATIONAL CODE COUNCIL 145.00 James C Peterson & Associates Inc 101-0000-2073 3,150.00 6/22/2023 Erosion Control - Permit 2021-03427 - 3890 Glendale Drive 3,150.00 6/22/2023 James C Peterson & Associates Inc 3,150.00 John Holm Inc 101-1613-4345 9,000.00 6/29/2023 4th of July Celebration - July 3rd Performance AP - Check Detail (7/11/2023)Page 14 of 30 305 Last Name Acct 1 Amount Check Date Description 9,000.00 6/29/2023 John Holm Inc 9,000.00 KENNEDY & GRAVEN, CHARTERED 101-1140-4302 86.00 7/6/2023 Labor/Employment Matters (General) KENNEDY & GRAVEN, CHARTERED 605-6502-4300 3,033.00 7/6/2023 Acquisition of Right of Way for C.R. 101 3,119.00 7/6/2023 KENNEDY & GRAVEN, CHARTERED 3,119.00 KIMLEY HORN AND ASSOCIATES INC 400-0000-1155 46,610.00 7/6/2023 Private Dev Field Observ KIMLEY HORN AND ASSOCIATES INC 601-6057-4303 6,754.84 7/6/2023 Market Blvd 53,364.84 7/6/2023 KIMLEY HORN AND ASSOCIATES INC 53,364.84 Lano Equipment 400-0000-4705 7,692.16 6/22/2023 Bobcat Skidloader 7,692.16 6/22/2023 Lano Equipment 7,692.16 LEAGUE OF MN CITIES INS TRUST 101-1170-4483 55,825.00 6/22/2023 Property/Casualty Insurance LEAGUE OF MN CITIES INS TRUST 101-0000-2017 52,714.00 6/22/2023 Workers Compensation Insurance 108,539.00 6/22/2023 LEAGUE OF MN CITIES INS TRUST 108,539.00 Lennar 101-0000-2073 2,200.00 6/29/2023 Erosion Control - Permit 2021-00591 - 7119 Alphabet Street Lennar 101-0000-2073 1,425.00 6/29/2023 Erosion Control - Permit 2021-03588 - 2117 Paisley Path Lennar 101-0000-2073 2,500.00 6/29/2023 Erosion Control - Permit 2021-00484 - 7131 Alphabet Street Lennar 101-0000-2073 2,500.00 6/29/2023 Erosion Control - Permit 2022-00144 - 1926 Fathers Song Lennar 101-0000-2073 1,700.00 6/29/2023 Erosion Control - Permit 2021-00955 - 1964 Paisley Path Lennar 101-0000-2073 1,500.00 6/29/2023 Erosion Control - Permit 2021-00595 - 2129 Paisley Path AP - Check Detail (7/11/2023)Page 15 of 30 306 Last Name Acct 1 Amount Check Date Description Lennar 101-0000-2073 1,570.00 6/29/2023 Erosion Control - Permit 2021-04872 - 7130 Alphabet Street Lennar 101-0000-2073 2,200.00 6/29/2023 Erosion Control - Permit 2021-02372 - 7179 Alphabet Street Lennar 101-0000-2073 1,500.00 6/29/2023 Erosion Control - Permit 2021-00339 - 7178 Alphabet Street Lennar 101-0000-2073 2,250.00 6/29/2023 Erosion Control - Permit 2021-06308 - 1914 Fathers Song Lennar 101-0000-2073 2,550.00 6/29/2023 Erosion Control - Permit 2021-06100 - 1925 Fathers Song Lennar 101-0000-2073 1,550.00 6/29/2023 Erosion Control - Permit 2021-01741 - 2177 Paisley Path Lennar 101-0000-2073 1,800.00 6/29/2023 Erosion Control - Permit 2021-03249 - 2000 Paisley Path Lennar 101-0000-2073 1,650.00 6/29/2023 Erosion Control - Permit 2021-03844 - 7118 Alphabet Street Lennar 101-0000-2073 1,500.00 6/29/2023 Erosion Control - Permit 2021-01494 - 7190 Alphabet Street Lennar 101-0000-2073 2,500.00 6/29/2023 Erosion Control - Permit 2021-01099 - 7143 Alphabet Street Lennar 101-0000-2073 1,770.00 6/29/2023 Erosion Control - Permit 2021-03179 - 2093 Paisley Path Lennar 101-0000-2073 2,350.00 6/29/2023 Erosion Control - Permit 2021-00500 - 7167 Alphabet Street Lennar 101-0000-2073 2,400.00 6/29/2023 Erosion Control - Permit 2021-05347 - 1913 Fathers Song Lennar 101-0000-2073 1,500.00 6/29/2023 Erosion Control - Permit 2021-00596 - 1976 Paisley Path Lennar 101-0000-2073 1,750.00 6/29/2023 Erosion Control - Permit 2021-06415 - 7106 Alphabet Street Lennar 101-0000-2073 2,500.00 6/29/2023 Erosion Control - Permit 2021-00308 - 7155 Alphabet Street Lennar 101-0000-2073 2,500.00 6/29/2023 Erosion Control - Permit 2020-00635 - 7154 Alphabet Street Lennar 101-0000-2073 2,050.00 6/29/2023 Erosion Control - Permit 2021-03792 - 7310 Paisley Path Lennar 101-0000-2073 1,700.00 6/29/2023 Erosion Control - Permit 2021-03247 - 7166 Alphabet Street 49,415.00 6/29/2023 Lennar 49,415.00 Lockridge Grindal Nauen P.L.L.P 101-1110-4312 3,333.33 6/22/2023 Professional Services - June, 2023 3,333.33 6/22/2023 Lockridge Grindal Nauen P.L.L.P 3,333.33 Marco Inc 101-1160-4411 735.00 6/22/2023 Konica Copiers leases - June, 2023 735.00 6/22/2023 Marco Inc 735.00 Martin Sophia 101-1539-4343 500.50 6/22/2023 Art Class Instructor 500.50 6/22/2023 AP - Check Detail (7/11/2023)Page 16 of 30 307 Last Name Acct 1 Amount Check Date Description Martin Sophia 500.50 MED Alliance Group Inc 101-1220-4142 213.94 7/6/2023 EleGARD Neck Foam/disposable cover 213.94 7/6/2023 MED Alliance Group Inc 213.94 METROPOLITAN FORD 701-0000-4140 60.38 7/6/2023 Gaskets 60.38 7/6/2023 METROPOLITAN FORD 60.38 Michael Homes Inc 101-0000-2073 10,500.00 6/29/2023 Erosion Control - Permit 2021-04093 - 855 Pleasant View Rd 10,500.00 6/29/2023 Michael Homes Inc 101-0000-2075 750.00 7/6/2023 Landscape escrow-6483 Beatrice Way 750.00 7/6/2023 Michael Homes Inc 11,250.00 Minuteman Press 101-1120-4110 116.00 6/29/2023 Business Cards - Vickerson, D Johnson, Kendall, DiMaggio 116.00 6/29/2023 Minuteman Press 116.00 MN DEPT OF TRANSPORTATION 601-0000-4509 119,547.46 7/6/2023 Signal System-TH 41 MN DEPT OF TRANSPORTATION 101-1350-4566 547.56 7/6/2023 Signal mntn/inspection-Minnewashta Pkwy 120,095.02 7/6/2023 MN DEPT OF TRANSPORTATION 120,095.02 AP - Check Detail (7/11/2023)Page 17 of 30 308 Last Name Acct 1 Amount Check Date Description MN FIRE SERVICE CERTIFICATION BOARD 101-1220-4300 152.25 7/6/2023 Fire App Operator Cert Exam-Hines 152.25 7/6/2023 MN FIRE SERVICE CERTIFICATION BOARD 152.25 MN VALLEY ELECTRIC COOP 101-1350-4320 117.86 6/29/2023 Monthly Service - Bluff Crk & Flying Cloud Dr MN VALLEY ELECTRIC COOP 101-1350-4320 40.56 6/29/2023 Monthly Service - Kiowa Trl & St Hwy 101 lights MN VALLEY ELECTRIC COOP 101-1350-4320 113.97 6/29/2023 Monthly Service - Bandimere Park Lights 272.39 6/29/2023 MN VALLEY ELECTRIC COOP 272.39 MOSS & BARNETT 210-0000-4300 2,859.00 6/22/2023 Professional Services - May 31, 2023 2,859.00 6/22/2023 MOSS & BARNETT 2,859.00 MTI DISTRIBUTING INC 101-1550-4120 143.10 6/29/2023 RH Tie Rod End ASM 143.10 6/29/2023 MTI DISTRIBUTING INC 143.10 Mutchler Marc S.101-1613-4345 500.00 6/29/2023 4th of July Celebration - July 4th performance 500.00 6/29/2023 Mutchler Marc S. 500.00 NAPA AUTO & TRUCK PARTS 101-1320-4120 124.84 6/22/2023 Fuel Filter, Oil Filter, Hydraulic Filter 124.84 6/22/2023 NAPA AUTO & TRUCK PARTS 700-0000-4120 43.98 7/6/2023 fuel filter NAPA AUTO & TRUCK PARTS 700-0000-4140 42.21 7/6/2023 Boxed capsules/Mobil 15W50 AP - Check Detail (7/11/2023)Page 18 of 30 309 Last Name Acct 1 Amount Check Date Description 86.19 7/6/2023 NAPA AUTO & TRUCK PARTS 211.03 NEOGOV 101-1120-4300 6,735.00 6/22/2023 Subscription Fee - 09/29/2023 - 09/28/2024 6,735.00 6/22/2023 NEOGOV 6,735.00 North American Safety, Inc.101-1320-4240 263.26 6/29/2023 Glove Tsunami Grip Light, Cap, Anti-Fog Lense 263.26 6/29/2023 North American Safety, Inc. 263.26 Northstar Companies 101-1220-4240 5,117.00 7/6/2023 Shirts/Hats/Embroidery 5,117.00 7/6/2023 Northstar Companies 5,117.00 NORTHWEST LASERS & INSTRUMENTS 101-1310-4260 173.25 6/22/2023 Laser Repair, Supplies 173.25 6/22/2023 NORTHWEST LASERS & INSTRUMENTS 173.25 Nyberg Alyssa 700-7204-4901 50.00 6/22/2023 Waterwise Rebate - Toilet 50.00 6/22/2023 Nyberg Alyssa 50.00 OpenGov Inc 101-1160-4231 500.00 7/6/2023 Cartegraph Asset Mgmt-unlimited user AP - Check Detail (7/11/2023)Page 19 of 30 310 Last Name Acct 1 Amount Check Date Description 500.00 7/6/2023 OpenGov Inc 500.00 O'Reilly Automotive Inc 101-1250-4140 8.81 7/6/2023 Mechanic Supplies O'Reilly Automotive Inc 101-1370-4140 59.79 7/6/2023 Mechanic Supplies O'Reilly Automotive Inc 101-1310-4140 209.17 7/6/2023 Mechanic Supplies O'Reilly Automotive Inc 101-1220-4140 27.13 7/6/2023 Mechanic Supplies O'Reilly Automotive Inc 101-1320-4140 306.36 7/6/2023 Mechanic Supplies O'Reilly Automotive Inc 101-1550-4140 -63.64 7/6/2023 Mechanic Supplies 547.62 7/6/2023 O'Reilly Automotive Inc 547.62 Ott Travis 101-1538-4343 667.56 7/6/2023 Tae Kwon Do instruction 667.56 7/6/2023 Ott Travis 667.56 PALMER PAUL 101-1766-4341 114.00 6/29/2023 Softball Umpire - 4 games 114.00 6/29/2023 PALMER PAUL 114.00 Pederson Taylor 101-1539-4343 969.00 7/6/2023 Tae Kwon Do instruction Pederson Taylor 101-1538-4343 1,033.68 7/6/2023 Tae Kwon Do instruction 2,002.68 7/6/2023 Pederson Taylor 2,002.68 Peterson James 101-0000-2075 750.00 7/6/2023 Landscape escrow-3850 Glendale Drive AP - Check Detail (7/11/2023)Page 20 of 30 311 Last Name Acct 1 Amount Check Date Description 750.00 7/6/2023 Peterson James 750.00 Pioneer Research Corporation 701-0000-4150 876.26 6/22/2023 En Solv 876.26 6/22/2023 Pioneer Research Corporation 876.26 POWERPLAN OIB 101-1320-4120 205.09 7/6/2023 Belt-V-Band 205.09 7/6/2023 POWERPLAN OIB 205.09 PRAIRIE RESTORATIONS INC 101-1550-4574 2,260.00 6/29/2023 Plant Management 2,260.00 6/29/2023 PRAIRIE RESTORATIONS INC 2,260.00 Premium Waters, Inc 101-1550-4120 70.95 6/22/2023 Chip 5. Gall 70.95 6/22/2023 Premium Waters, Inc 70.95 RMB Environmental Laboratories Inc 720-0000-4300 217.80 6/29/2023 Beach Monitoring 217.80 6/29/2023 RMB Environmental Laboratories Inc 720-0000-4300 217.80 7/6/2023 Beach Monitoring 217.80 7/6/2023 AP - Check Detail (7/11/2023)Page 21 of 30 312 Last Name Acct 1 Amount Check Date Description RMB Environmental Laboratories Inc 435.60 Schwickert Company 101-1170-4510 290.00 6/29/2023 System Eval - Gas & Electrical - City Hall Schwickert Company 101-1170-4510 150.00 6/29/2023 System Eval - City Hall Schwickert Company 101-1170-4510 360.00 6/29/2023 Locate Water Leak - Correct Drain pipe Schwickert Company 101-1170-4510 280.00 6/29/2023 System Eval - City Admin Schwickert Company 101-1170-4510 150.00 6/29/2023 Locate Unit tied to Thermostat - City Admin Schwickert Company 101-1170-4510 850.00 6/29/2023 Service - City Hall Schwickert Company 101-1170-4510 540.00 6/29/2023 System Eval - Replace Thermostat - City Hall Schwickert Company 101-1312-4510 560.00 6/29/2023 Relocate Thermostate - Public Works Schwickert Company 101-1170-4510 790.00 6/29/2023 System Eval - City Hall Schwickert Company 101-1190-4510 803.00 6/29/2023 Planned Service - Library Schwickert Company 101-1170-4510 150.00 6/29/2023 Replace Blower Run Capacitor - City Hall Schwickert Company 101-1170-4510 740.00 6/29/2023 System Eval - City Hall Schwickert Company 101-1312-4510 1,190.00 6/29/2023 System Eval - Leak Search - Public Works Schwickert Company 101-1220-4510 785.00 6/29/2023 Planned Service - Cooling - Fire Station Schwickert Company 700-7043-4510 704.00 6/29/2023 HAVC Spring Planned Service - West WWTP Schwickert Company 700-7019-4510 501.00 6/29/2023 HAVC Spring Planned Service - East WWTP Schwickert Company 101-1170-4510 2,707.00 6/29/2023 Planned Service - City Hall Schwickert Company 101-1312-4510 1,277.00 6/29/2023 Replace Contactor, Replace Bearings - Public Works Schwickert Company 101-1312-4510 837.00 6/29/2023 Replace Contactor - Public Works Schwickert Company 101-1190-4510 1,991.00 6/29/2023 Provide & Installed New Ductwork Fitting - Library Schwickert Company 101-1190-4510 1,535.00 6/29/2023 Unit Repairs - Library Schwickert Company 101-1312-4510 2,200.00 6/29/2023 Planned Service - Cooling - Public Works Schwickert Company 101-1170-4510 1,390.00 6/29/2023 System Eval - Replace Canister & Test Schwickert Company 101-1170-4510 350.00 6/29/2023 System Eval - Check Electrical & Operations - City Hall Schwickert Company 101-1190-4510 760.00 6/29/2023 System Eval - Library Schwickert Company 101-1190-4510 70.00 6/29/2023 Replace Motor Rods - Library Schwickert Company 101-1190-4510 170.00 6/29/2023 Water Leak Search, Adjust Fittings & Test Schwickert Company 700-7019-4510 3,363.03 6/29/2023 RPZ Repair - East WWTP Schwickert Company 101-1190-4510 2,520.00 6/29/2023 Replace Strainers - Library Schwickert Company 101-1190-4510 774.00 6/29/2023 Additional Boiler System Work w/Stainers - Library Schwickert Company 101-1170-4510 360.00 6/29/2023 System Eval - Check Electrical, Gas & Thermo - City Hall 29,147.03 6/29/2023 Schwickert Company 29,147.03 Scott Lewis & Associates 210-0000-4300 5,000.00 6/22/2023 Mediacom Franchise Fee Audit AP - Check Detail (7/11/2023)Page 22 of 30 313 Last Name Acct 1 Amount Check Date Description 5,000.00 6/22/2023 Scott Lewis & Associates 5,000.00 SCOTT NELSON COACHING INC 101-1250-4370 500.00 7/6/2023 Communication Training/Workshop SCOTT NELSON COACHING INC 101-1220-4300 125.00 7/6/2023 Leadership Coaching 625.00 7/6/2023 SCOTT NELSON COACHING INC 625.00 Senja Inc 101-1539-4343 176.00 7/6/2023 Tai Chi Instruction 176.00 7/6/2023 Senja Inc 176.00 Shadywood Tree Experts and Landscaping 720-7202-4300 6,230.00 7/6/2023 Prune-7700 Market Blvd Shadywood Tree Experts and Landscaping 720-7202-4300 1,635.00 7/6/2023 tree removal-South Lotus Lake Park 7,865.00 7/6/2023 Shadywood Tree Experts and Landscaping 7,865.00 Shred-N-Go Inc 720-7201-4300 1,300.00 6/22/2023 Community Shred Event 1,300.00 6/22/2023 Shred-N-Go Inc 1,300.00 Signart Company Inc 101-1250-3305 63.75 7/6/2023 Refund permit-7820 Market Blvd Signart Company Inc 101-0000-2022 1.25 7/6/2023 Refund permit-7820 Market Blvd 65.00 7/6/2023 AP - Check Detail (7/11/2023)Page 23 of 30 314 Last Name Acct 1 Amount Check Date Description Signart Company Inc 65.00 SIR LINES-A-LOT 420-1310-4543 19,502.10 7/6/2023 Road Striping 19,502.10 7/6/2023 SIR LINES-A-LOT 19,502.10 Strang Nolan 101-1540-4130 13.52 7/6/2023 Reimburse-Lk Ann Concession supplies 13.52 7/6/2023 Strang Nolan 13.52 SUMMIT COMPANIES 101-1190-4300 551.00 6/29/2023 Monitoring Fire Alarm - Library SUMMIT COMPANIES 101-1550-4300 289.00 6/29/2023 Lake Ann Concession - Fire Alarm Monitoring SUMMIT COMPANIES 101-1190-4300 441.00 6/29/2023 Monitoring Fire Alarm - Library SUMMIT COMPANIES 101-1550-4300 551.00 6/29/2023 Monitoring - Fire Alarm - Lake Ann Park Shed SUMMIT COMPANIES 101-1312-4300 593.00 6/29/2023 Monitoring - Fire Alarm - Public Works SUMMIT COMPANIES 101-1170-4300 368.00 6/29/2023 Monitoring - Fire Alarm - City Hall SUMMIT COMPANIES 700-7019-4300 593.00 6/29/2023 Monitoring - Fire Alarm - Water Treatment Plant SUMMIT COMPANIES 101-1220-4300 593.00 6/29/2023 Monitoring - Fire Alarm - Fire Dept 3,979.00 6/29/2023 SUMMIT COMPANIES 3,979.00 TBEI, Inc 101-1320-4120 -309.46 6/29/2023 Warranty Credit Material TBEI, Inc 101-1320-4120 610.00 6/29/2023 Seal Kit, Henke-Heel Cylinder Seal Kit 300.54 6/29/2023 TBEI, Inc 300.54 THE MEDICINE SHOW 101-1613-4345 650.00 6/29/2023 4th of July Celebration 2023 - July 3rd performance 650.00 6/29/2023 AP - Check Detail (7/11/2023)Page 24 of 30 315 Last Name Acct 1 Amount Check Date Description THE MEDICINE SHOW 650.00 The Toonies, LLC 101-1613-4345 425.00 6/29/2023 4th of July Celebration - July 2 Performance 425.00 6/29/2023 The Toonies, LLC 425.00 Theisen Steven 101-0000-2073 500.00 6/22/2023 Erosion Control - 7193 Purple Parkway - Permit 2023-00738 500.00 6/22/2023 Theisen Steven 500.00 Tommins Patrick 700-7204-4901 50.00 6/22/2023 Waterwise Rebate - Smart Irrigation Controller 50.00 6/22/2023 Tommins Patrick 50.00 TPC Landscape 101-0000-2073 500.00 6/29/2023 Erosion Control - Permit 2022-03757 - 9355 Kiowa Trl 500.00 6/29/2023 TPC Landscape 500.00 Triethart DeeAnn 101-1120-4110 86.87 7/6/2023 Forks, Knives, Bowls, and Plates 86.87 7/6/2023 Triethart DeeAnn 86.87 ULTIMATE CONTROLS ELECTRIC LLC 700-7019-4510 1,350.00 7/6/2023 EWTP Service Work ULTIMATE CONTROLS ELECTRIC LLC 700-7043-4510 1,550.00 7/6/2023 WWTP Service Work 2,900.00 7/6/2023 AP - Check Detail (7/11/2023)Page 25 of 30 316 Last Name Acct 1 Amount Check Date Description ULTIMATE CONTROLS ELECTRIC LLC 2,900.00 Universal Athletic Services, Inc.101-1613-4252 2,100.00 6/29/2023 4th of July Merch Universal Athletic Services, Inc.101-1600-4130 1,143.15 6/29/2023 4th of July Sponsor t-shirts 3,243.15 6/29/2023 Universal Athletic Services, Inc. 3,243.15 US Home Corporation 101-0000-2072 2,500.00 6/29/2023 As-Built - Permit 2021-05224 - 7029 Pearl Dr 2,500.00 6/29/2023 US Home Corporation 2,500.00 Vatland Dan & Brenda 700-7204-4901 50.00 6/29/2023 Waterwise Rebate - Smart Irrigation Controller 50.00 6/29/2023 Vatland Dan & Brenda 50.00 Vavrin John 101-1530-4345 250.00 7/6/2023 Event Planning & DJ Service 250.00 7/6/2023 Vavrin John 250.00 VERIZON WIRELESS 101-1125-4310 41.11 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1310-4310 219.45 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 720-0000-4310 496.73 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 701-0000-4310 125.10 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 700-0000-4310 556.55 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1120-4310 198.35 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-0000-2033 41.11 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1250-4310 404.50 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 700-0000-4310 125.10 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1170-4310 46.11 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1520-4310 51.87 6/29/2023 Monthly Service - May 19 - Jun 18 AP - Check Detail (7/11/2023)Page 26 of 30 317 Last Name Acct 1 Amount Check Date Description VERIZON WIRELESS 101-1540-4310 40.01 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1530-4310 41.11 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1220-4310 683.86 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1110-4310 40.01 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1320-4310 276.31 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 701-0000-4310 379.93 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1160-4310 138.33 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1420-4310 41.11 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1600-4310 293.23 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1312-4310 165.56 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1550-4310 432.45 6/29/2023 Monthly Service - May 19 - Jun 18 VERIZON WIRELESS 101-1370-4310 89.19 6/29/2023 Monthly Service - May 19 - Jun 18 4,927.08 6/29/2023 VERIZON WIRELESS 4,927.08 VESSCO INC 700-7043-4150 302.50 6/29/2023 Rotork, Limit, Switch Assy 302.50 6/29/2023 VESSCO INC 302.50 Villalva Michael Edward John 101-1613-4345 1,000.00 6/29/2023 4th of July Celebration 2023 - July 3rd Performance 1,000.00 6/29/2023 Villalva Michael Edward John 1,000.00 Vincent Paul & Kylie 101-0000-2075 750.00 7/6/2023 Landscape escrow-3868 Agustin Trail 750.00 7/6/2023 Vincent Paul & Kylie 750.00 VOLUNTEER FIREFIGHTERS BENEFIT ASSOC OF MINN 101-1220-4300 1,515.00 6/22/2023 Annual Renewal Form - 28 Volunteers, 9 Paid 1,515.00 6/22/2023 AP - Check Detail (7/11/2023)Page 27 of 30 318 Last Name Acct 1 Amount Check Date Description VOLUNTEER FIREFIGHTERS BENEFIT ASSOC OF MINN 1,515.00 Warning Lites of Minnesota, Inc.700-0000-4552 625.00 6/22/2023 Road Sign Rental 625.00 6/22/2023 Warning Lites of Minnesota, Inc. 625.00 Waste Management of Minnesota, Inc 101-1550-4329 759.01 6/22/2023 Lake Ann Waste Removal 759.01 6/22/2023 Waste Management of Minnesota, Inc 759.01 WATSON COMPANY 101-1540-4130 997.05 6/22/2023 Candy, Snacks, Beverages 997.05 6/22/2023 WATSON COMPANY 101-1540-4130 1,561.62 7/6/2023 Lk Ann Concession Supplies 1,561.62 7/6/2023 WATSON COMPANY 2,558.67 WM MUELLER & SONS INC 700-0000-4150 280.00 6/22/2023 Lundquist Cy WM MUELLER & SONS INC 700-0000-4150 392.00 6/22/2023 Lundquist Cy WM MUELLER & SONS INC 101-1320-4157 603.57 6/22/2023 Virgin Sand WM MUELLER & SONS INC 101-1320-4150 557.07 6/22/2023 Virgin Sand WM MUELLER & SONS INC 700-0000-4150 224.00 6/22/2023 Lundquist Cy 2,056.64 6/22/2023 WM MUELLER & SONS INC 101-1320-4157 571.95 6/29/2023 1/4 Virgin Sand 571.95 6/29/2023 WM MUELLER & SONS INC 101-1320-4157 279.93 7/6/2023 Virgin Sand WM MUELLER & SONS INC 101-1320-4157 502.75 7/6/2023 Virgin Sand Bit Mix WM MUELLER & SONS INC 101-1320-4157 641.70 7/6/2023 Virgin Sand AP - Check Detail (7/11/2023)Page 28 of 30 319 Last Name Acct 1 Amount Check Date Description 1,424.38 7/6/2023 WM MUELLER & SONS INC 4,052.97 XCEL ENERGY INC 101-1350-4320 21,595.57 6/22/2023 Monthly Service - Signals/Lights XCEL ENERGY INC 700-0000-4320 3,083.47 6/22/2023 Monthly Service - 1720 Lake Lucy Rd 24,679.04 6/22/2023 XCEL ENERGY INC 101-1350-4320 -16.53 6/29/2023 Monthly Service - 1701 Valley Ridge Trl S, 1591 Heron Dr XCEL ENERGY INC 101-1350-4320 27.37 6/29/2023 Monthly Service - Pedestrian Flashers XCEL ENERGY INC 700-7043-4320 9,188.56 6/29/2023 Monthly Service - WWTP XCEL ENERGY INC 700-0000-4320 218.68 6/29/2023 Monthly Service - Fire Station, Library, City Hall, Old Town Hal XCEL ENERGY INC 701-0000-4320 -1,687.96 6/29/2023 Monthly Service - Lift Stations XCEL ENERGY INC 700-7019-4320 5,367.18 6/29/2023 Monthly Service - 201 W 79th St XCEL ENERGY INC 700-0000-4320 -33.47 6/29/2023 Monthly Service - Lift Stations XCEL ENERGY INC 101-1220-4320 1,041.78 6/29/2023 Monthly Service - Fire Station, Library, City Hall, Old Town Hal XCEL ENERGY INC 701-0000-4320 218.68 6/29/2023 Monthly Service - Fire Station, Library, City Hall, Old Town Hal XCEL ENERGY INC 101-1600-4320 27.13 6/29/2023 Monthly Service - 7700 Market Bvd XCEL ENERGY INC 700-0000-4320 -447.00 6/29/2023 Monthly Service - Wells XCEL ENERGY INC 101-1350-4320 32.38 6/29/2023 Monthly Service - 1178 Lake Lucy Rd XCEL ENERGY INC 101-1312-4320 1,749.43 6/29/2023 Monthly Service - Fire Station, Library, City Hall, Old Town Hal XCEL ENERGY INC 101-1350-4320 27.23 6/29/2023 Monthly Service - Pedestrian Flashers XCEL ENERGY INC 101-1350-4320 -99.55 6/29/2023 Monthly Service - Service Walk Bridge, 500 Market St XCEL ENERGY INC 101-1120-1193 26.28 6/29/2023 Monthly Service - Fire Station, Library, City Hall, Old Town Hal XCEL ENERGY INC 101-1170-4320 -1,740.69 6/29/2023 Monthly Service - Fire Station, Library, City Hall, Old Town Hal XCEL ENERGY INC 101-1190-4320 217.08 6/29/2023 Monthly Service - Fire Station, Library, City Hall, Old Town Hal 14,116.58 6/29/2023 XCEL ENERGY INC 101-1600-4320 203.11 7/6/2023 Monthly Service- Park Shelter 203.11 7/6/2023 XCEL ENERGY INC 38,998.73 Xuan Tuyet Doan-Nguyen Jennifer 101-1538-4343 667.56 7/6/2023 Tae Kwon Do instruction 667.56 7/6/2023 AP - Check Detail (7/11/2023)Page 29 of 30 320 Last Name Acct 1 Amount Check Date Description Xuan Tuyet Doan-Nguyen Jennifer 667.56 Yamaha Golf & Utility 101-1613-4410 425.00 7/6/2023 4th of July golf cart rental 425.00 7/6/2023 Yamaha Golf & Utility 425.00 ZAHL-PETROLEUM MAINTENANCE CO 101-1370-4530 1,360.00 7/6/2023 Annual and 3 year full function testing 1,360.00 7/6/2023 ZAHL-PETROLEUM MAINTENANCE CO 1,360.00 ZIEGLER INC 101-1320-4120 -268.26 6/22/2023 Bit-Rh, Bit-LH, Edge-Cutting. ZIEGLER INC 101-1550-4410 2,585.00 6/22/2023 Telescopic Boom Lift 2,316.74 6/22/2023 ZIEGLER INC 2,316.74 967,182.94 AP - Check Detail (7/11/2023)Page 30 of 30 321 City Council Item July 17, 2023 Item Approve Officer Change for CL Sushi 586, Inc. as it Relates to the On-Sale Wine and Malt Liquor Licenses for Kai's Sushi & Grill located at 586 West 78th Street, and approve a request to expand the licensed premises to include the patio immediately contiguous to the restaurant. File No.Item No: D.5 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, Sr. Admin Support Specialist Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council approves the officer change for CL Sushi 586, Inc. as it Relates to the On-Sale Wine and Malt Liquor Licenses for Kai's Sushi & Grill located at 586 West 78th Street, and approves the request to expand the licensed premises to include the patio immediately contiguous to the restaurant." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND City Code Section 10-31(b) states that liquor licenses issued to corporations shall be valid only so long as there is no change in the officers or ownership interest of the corporation, as defined in this article, unless such change is approved by the council. The requirement concerning change in officers does not apply to corporations whose stock is traded on the New York or American Stock Exchanges. City Code Section 10-30(b) states that each license shall be issued only for the exact rooms and square 322 footage described in the application. A license is valid only in the compact and contiguous building or structure situated on the premises described in the license, and all transactions relating to a sale under such license must take place within such building or structure. A patio can be included as a part of the licensed premises as long as it is compact and contiguous to the establishment. DISCUSSION Change of Officers Staff received the attached letter from the license holder, CL Sushi 586, Inc., reporting an organizational change replacing the current CEO, Chew Liew, with the new CEO, Jin Long Huang, effective immediately. Chew Liew is now the Registered Agent. There are no other corporate officers. Business Filing Details showing the updated officer designations are attached. As required by city code, Law Enforcement conducted a background investigation on Jin Long Huang and reported no concerns. Expansion of Licensed Premises Due to COVID-19 restrictions placed on restaurants, in June 2020, property manager Joe Antonucci worked with city staff to create a temporary patio dining area to include the sidewalk and two parking stalls in front of Kai's Sushi & Grill. Subsequently, staff approved the patio for permanent use because the property owner was able to prove there were enough parking spaces available for the entire property without the two parking spaces that were used to create the temporary patio. City Council approval is required to approve the expansion to the licensed premises to include the patio area. A site plan layout is attached, showing the patio's location, design, and layout covering an area of 450 square feet. Permission for Kai's Sushi & Grill to use the patio for their business is included on page 2 of the attached lease agreement. BUDGET RECOMMENDATION Staff recommends council approve the officer change for CL Sushi 586, Inc., as it relates to the On-Sale Wine and Malt Liquor licenses for Kai's Sushi & Grill located at 586 West 78th Street, and approve the request to expand the licensed premises to include the patio that is compact and contiguous to the restaurant. ATTACHMENTS Officer Change Notice dated June 29, 2023 CL Sushi 586, Inc. Business Filing Details Patio Site Plan Layout Lease Agreement 323 324 6/29/23, 2:20 PM Business Filing Details https://mblsportal.sos.state.mn.us/Business/SearchDetails?filingGuid=9716e317-c5be-e511-8163-00155d01c56d 1/2 Filing History Filing Date Filing Effective Date 1/19/2016 Original Filing - Business Corporation (Domestic) (Business Name: CL SUSHI 586 INC) Business Record Details » CL SUSHI 586 INC Minnesota Business Name Business Type Business Corporation (Domestic) MN Statute 302A File Number 867769200023 Home Jurisdiction Minnesota Filing Date 1/19/2016 Status Active / In Good Standing Renewal Due Date 12/31/2024 Registered Ofce Address 586 WEST 78TH ST CHANHASSEN, MN 55317 USA Number of Shares 5000 Registered Agent(s) CHEW LIEW Principal Executive Ofce Address 586 WEST 78TH ST CHANHASSEN, MN 55317 USA Chief Executive Ofcer JIN LONG HUANG 586 WEST 78TH ST CHANHASSEN, MN 55317 USA Filing History Select the item(s) you would like to order: Order Selected Copies 325 6/29/23, 2:20 PM Business Filing Details https://mblsportal.sos.state.mn.us/Business/SearchDetails?filingGuid=9716e317-c5be-e511-8163-00155d01c56d 2/2 Filing Date Filing Effective Date 1/26/2022 Administrative Dissolution - Business Corporation (Domestic) 7/27/2022 Annual Reinstatement - Business Corporation (Domestic) 6/27/2023 Amendment - Business Corporation (Domestic) © 2023 Ofce of the Minnesota Secretary of State - Terms & Conditions The Ofce of the Secretary of State is an equal opportunity employer  Subscribe for email updates! Vulnerability Disclosure 326 327 328 329 330 City Council Item July 17, 2023 Item Approve a Massage Therapy Business License for N. Gioi Life LLC located at 8951 Crossroads Boulevard, Suite 207 (My Salon Suite) File No.ADM 279-013 Item No: D.6 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, Sr. Admin Support Specialist Reviewed By Laurie Hokkanen SUGGESTED ACTION “The Chanhassen City Council approves a Massage Therapy Business License for N. Gioi Life LLC located at 8951 Crossroads Boulevard , Suite 207 (My Salon Suite)” Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND On November 25, 2013 the City Council approved Ordinance No. 584 amending Chapter 10 of the Chanhassen City Code concerning Massage Therapy Business Licensing. The approval of this ordinance required all businesses offering massage therapy, with the exception of chiropractor offices and home occupations, to obtain a license from the City of Chanhassen. The license application includes a $50 license fee and $250 background check fee. The background check is conducted by the Carver County Sheriff’s Office and examines the following: Subject(s): Owner(s) and General Manager(s). Owner must disclose all businesses owned currently and in the past 7 years. 331 Once licensed, business owners are responsible for the following: Maintaining each employee's full name, date of birth and address. Truthfully represent their business operations. A license is subject to revocation or suspension. A license holder may be summoned for an administrative hearing for the following reasons: Content of advertising that calls into question the nature of the business. Suspension or revocation of a license in another city. DISCUSSION Patrice Aksamit submitted a Massage Therapy Business License application for N. Gioi Life, LLC on June 26, 2023. Ashley Ullevig, Background Investigator for the Carver County Sheriff’s Office conducted a full background check. The background check produced no unfavorable information on Ms. Aksamit. BUDGET N/A RECOMMENDATION Staff recommends that the Chanhassen City Council approve a Massage Therapy Business License for for N. Gioi Life LLC located at 8951 Crossroads Boulevard, Suite 207 (My Salon Suite). ATTACHMENTS N. Gioi Life, LLC Massage Application 06-26-2023 Property Report Card Lease Agreement with My Salon Suite 332 ert,wC U l*t' lx crw oF Massage Therapy BusinessLicenseCHANHASSEN Application _ of _ Each reprcsentative of the Ossrness shall complete this application- lf the owner is an individual, form must be campbted by strch person; if a corporatbn, by an officer; if a pafircrship, by one of the general painers; if an unincarporated associafio4 by the manager ar managing ofricer. Each person sewing as a ganera/ manapr for t ?e busiress shall also co*phte an applicatfun. FurrName: A.xsannrt P:trirc Nanrni oo*, tqlzLasfFirslFullMiddle Business Name:N. gl OI LIFE L LC Section 1: Applicant lnformation Residence Address: City Business Address: Phore: Allemate Phone:(_l Fax: t__-)Ernail: Ptease list any massage businesses owned/operated or un*ed at by this indMdual in lhe past seven {fi },ears: Business Name: Address Years Ownedloperated: ci/r,le ona) City: City: City: From: Business Name: Business Name: Business Name: To: Year Please list any cunent mas$ag€ business licenses held in lhe State of Minnesota: Please list any criminal convictions you have: Itonlh Year 333 City of Chanhassen Massage Therapy Business Liense Application Page 2 Please provide three character witnesses cx$rently living in the State cf Minnesota: Emair: rKueppefs@-tDys "'lon sUjtg , r'nm 334 Property Card Taxpayer Information Property Address Parcel Information Building Information Miscellaneous Information Assessor Information Ta xp ayer N ameNORTHLAND SALONS CHAN OWNER, LLC Mailin g Address 4324 W LAKE HARRIET PKWY 2 MINNEAPOLIS, MN 55410- Parcel ID Number 25248 0021 Address 8951 CRO SSR OADS BLVD City CHANHASSEN, MN 55317 Uses Comme rcial AcresPlatLotBlock 0.5 4 Legal Description That part of Lot 2, Block 1, CROSSROADS OF CHANHASSEN, according to the recorded plat thereof, Bu ilding Style Year Built Garag e Ab ove G radeFinished Sq Ft To tal Bed ro oms Scho ol District Watershed District Homestead Green Acre s Ag Preserve0112WS 0 64 RIL EY PURG BLU FF N N Estimated Market Value Land Bu ilding To tal 2022 Value s(Paya ble 2023 )2023 Value s(Paya ble 2024 )Last Sale Date of Sale Sa le Va lue $450,000 .00 $0.00 $450,000 .00 $348,500 .00 $1,124,800.00 $1,473,300.00 11/1 8/2 021 $330,652 .00 The data provided herewith is for reference purposes only. This data is not suitable for legal, engineering, surveying or other similar purposes. Carver County does not guarantee the accuracy of theinformation contained herein. This data is furnished on an ‘as is’ basis and Carver County makes no representations or warranties, either expressed or implied, for the merchantability or fitness of theinformation provided for any purpose. This disclaimer is provided pursuant to Minnesota Statutes §466.03 and the user of the dataprovided herein acknowledges that Carver County shall not be liable for any damages, and by using this data in any way expressly waives all claims, and agrees to defend, indemnify, and holdharmless Carver County, its officials, officers, agents, employees, etc. from any and all claims brought by anyone who uses the information provided for herein, its employees or agents, orthird parties which arise out of user's access. By acceptance of this data, the user agrees not to transmit this data or provide access to it or any part of it to another party unless the user includeswith the data a copy of this disclaimer. Monday, July 3, 2023 Carver Co unty, MN335 Northland Salons, LLC. D B A M Y S A L O N S U I T E® LICENSE AGREEMENT DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 336579 PAGE 2 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT BASIC LICENSE PROVISIONS 1. DATE OF LICENSE AGREEMENT: 2. LICENSOR: Northland Salons, LLC DBA: MY SALON Suite 3. MANAGER: Northland Management Group, LLC 4. ADDRESS OF LICENSOR: Northland Salons, LLC. C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 Phone: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com 5. ADDRESS OF SPACE: 8951 Crossroads Blvd Chanhasssen, MN 55317 Salon Suite Number: ___ 6. LICENSEE’S NAME: 7. LICENSEE’S ADDRESS: TELEPHONE: EMAIL: 8. OCCUPANCY DATE: 9. TERM: (See Paragraph 2.1.) Unless sooner terminated as hereinafter provided, the initial term of this License shall be on or before (1) year beginning on the first day of the month following the Occupancy Date and will automatically renew on a (1) year basis thereafter unless Licensee provides Licensor with sixty (60) days advance written notice of Licensee’s intent not to renew the License. 10. WEEKLY LICENSE FEE: (See Paragraph 3.1) $ per week due each Monday during the Term. 11. MOVE-IN SPECIAL: (See Paragraph 3.1.1) $ per week for the first __ of the initial Term. 12. RETAINER: (See Paragraph 3.4) Licensee shall deposit with Licensor a retainer equal to two (2) weeks License Fee in the amount of $ . 13. USE OF LICENSED SPACE: (See Paragraph 4.) Licensee shall use the Licensed Space as a general beauty and spa complex and shall not use the Space for any other purpose without the prior written consent of Licensor, which consent may be granted or withheld in Licensor’s sole discretion. In the event of any conflict between the Basic License Provisions and the balance of this License, the latter shall control. Each of the terms contained in the Provisions shall be construed in conjunction with the remainder of this License, in particular, the referenced portions thereof. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 52 weeks 2023-09-01 5644 Cedarwood St NE Prior Lake 660.00 55372 330.00 6/30/2023 N. GIOI LIFE, LLC 6122504502 Minnesota 207 Gioi2theworld@gmail.com 320.00 337580 PAGE 3 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSE AGREEMENT This License Agreement (“License”) dated the ____ ______(“Date”) is entered into by and between Northland Salons, LLC DBA: My Salon Suite ("Licensor"), and ("Licensee"). For good and valuable consideration, including the promises of the parties, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 1. Licensed Space: 1.1 Space. In consideration of the License Fees herein provided, and the terms, provisions and covenants hereof, Licensor hereby licenses to Licensee, and Licensee hereby licenses from Licensor, a salon suite known or to be known by the salon suite number specified in Item 4 of the Basic License Provisions (the “Space”) in the building known as My Salon Suite located at 8951 Crossroads Blvd, Chanhassen, MN 55317(the “Building”). Any reference to the term “Building” shall include the salon building, the land, and the common areas, unless the context requires otherwise. The License of the Space entitles Licensee to the non-exclusive right to use the common areas and parking lot, subject to the rights and considerations of other Licensees. This License constitutes a revocable license agreement between Licensee and Licensor. Licensee agrees that this License creates no tenancy, leasehold estate or any other property interest. Licensee hereby acknowledges and agrees that this License is subordinate to the terms of the lease agreement between the Licensor and its landlord. 2. Term: 2.1 Term. Unless sooner terminated as hereinafter provided, the term of this License shall be for (1) year beginning the first day of the month following (the "Occupancy Date") and unless renewed shall terminate upon expiration of this Term. 2.2 Renewal. Provided Licensee has never been in default hereunder, this License will automatically renew following the Initial Term for up to a maximum of three additional terms of (1) year each, (a “Renewal Term”) unless Licensee gives written notice to Licensor at least sixty (60) days prior to the end of the Initial Term or any Renewal Term that it will not renew the License, time being of the essence. Upon renewal, this License shall be extended upon the terms, covenants and conditions as provided in this License. 2.3 Renewal Option. In the event either the Licensor or the Licensee desires not to renew the License as provided for herein in Paragraph 2.2., then the deciding party shall give the other party written notice of its intention to not renew the License not later than sixty (60) days prior to the end of the then current Term, time being of the essence. 3. License Fee: 3.1 Weekly License Fee. Licensee shall pay Licensor $ in equal weekly installments payable upon the first Monday following the Occupancy Date, or the date that the Licensee occupies the Space, whichever is sooner, and is due at by no later than Noon on each Monday thereafter. If the Occupancy Date is not on a Monday, then the Weekly License Fee shall be pro-rated for the first week. The License Fee may increase a maximum of fifteen percent (15%) per year for each Renewal Term with Licensor giving Licensee notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term. If Licensor fails to give such notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term, then the increase shall automatically be deemed to be DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF N. GIOI LIFE, LLC 2023-09-01 330.00 6/30/2023 338581 PAGE 4 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ten percent (10%). 3.1.1 Move-In Special. For promotional consideration, the Weekly License Fee shall be in the amount of $ ____ per week for the first __ of the initial Term of this License (the “Move-In Special”). If the Occupancy Date is not on a Monday, then the Move-In Special shall be pro-rated for the first week. 3.1.2 Payments. All payments shall be made to Northland Salons, LLC via ACH through QuickBooks Online (QBO). 3.2 Service Charge. If any installment of the Weekly License Fee or other amount which Licensee is obligated to pay under the terms of this License is not paid within five (5) days after it’s due date, said amount shall be subject to a penalty of ten percent (10%) of the amount due plus a service charge of one and one-half percent (1.5%), or such lesser percentage as may be the maximum permitted by law, for each month or fraction thereof until the Weekly License Fee is paid. 3.3 Insufficient Funds. Licensee agrees to pay the charge of $20.00 for each check or other payment provided by Licensee to Licensor that is returned to Licensor for lack of sufficient funds. 3.4 Retainer. Licensee, contemporaneously with the execution of this License, shall deposit with Licensor a Retainer equal to two (2) weeks Weekly License Fee in the amount of $ ___ . In the event that Licensee shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this License, the Retainer shall be returned to Licensee within thirty (30) days after the end of the License and after delivery of entire possession of the Space to Licensor in good condition, reasonable wear and tear accepted. It is understood and agreed that Licensor shall inspect the Space and has the right to make such repairs to the Space as deemed reasonably necessary, and deduct such repair costs from the Retainer. 4. Use of Licensed Space: 4.1 Use. The Space shall be used by Licensee as a general beauty and salon complex, to include massage services and shall not be used for any other purpose without the prior written consent of the Licensor. 4.2 Services Provided by Licensor. Licensor will provide basic janitorial services of common areas and restroom facilities, plus electricity, heating, cooling, water, sewage, HVAC service maintenance, security system and Wi-Fi for Licensee and Licensee's guests. 4.2.1 The Suite consists of the following items (the “Suite Equipment”): _____ Salon Suite: Salon Suite: Double-sided styling station with full-length mirror, hydraulic styling chair, state-of-the-art adjustable shampoo bowl and shampoo chair with storage cabinet, private color bar with sink and lower cabinet storage, upper cabinet with color tube dividers, cushion flooring, granite countertops, and a private lockable entrance. _____ Spa Suite: Upper and lower cabinet storage with sink, adjustable massage bed with storage, cushion flooring, granite countertops, and a private lockable entrance. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 320.00 660.00 X 52 weeks 339582 PAGE 5 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 4.3 Licensee Obligations. Licensor makes no representation regarding the condition of the Space and Licensee accepts the Space in its “As Is” condition. Licensee agrees to at all times keep and maintain the Space in a clean and professional condition. Licensee, at Licensee’s own expense, shall promptly repair any damage to the Space Equipment caused by any act or omission of Licensee or any agent, employee, customer, guest or invitee of Licensee. Licensee shall not bring in any furniture, fixtures and or appliances into their Space without prior written approval by the Licensor. Appliances, such as refrigerators and microwaves shall be either black or stainless steel. At the end of License, Licensee agrees to return the Space and Space Equipment in as good condition as at the beginning of the term of this License with some reasonable ordinary wear and tear accepted. 4.4 Licenses. Licensee shall possess and legally maintain at all times during its occupancy of the Space ANY LICENSING requirements to own and operate a cosmetology business in the State of Minnesota. Licensee bears full responsibility of knowledge and education of said licensing requirements. 4.5 Conduct. Licensee shall not use the Space in any manner constituting a violation of any ordinance, statute, regulation or order of any governmental authority or applicable state and/or federal laws or in violation of Licensor’s general rules (Exhibit A). Licensee shall use the Space in a safe, careful, proper and lawful manner and shall keep and maintain the Space in as good a condition as when Licensee first took possession thereof, and Licensee shall not commit, or allow being committed, any act of waste in, on or about the Space or the Building. Licensee shall not create, maintain or permit any nuisance in the Space or the Building, or permit any objectionable or offensive noise or odors to be emitted from the Space. If Licensee uses the Space in any manner which would invalidate any policy of insurance now or hereafter carried on the Building or increase the rate of premiums payable on any such insurance policy, Licensor may, at its option, require Licensee to discontinue such use or to reimburse Licensor as additional License Fee for any increase in premiums attributable to the use being made by Licensee. 4.6 Surrender. Any personal property or trade fixtures not removed within fifteen (15) days following the expiration or termination of the License may be removed and disposed of by Licensor without incurring any liability to Licensee. 5. Building Services: 5.1 Interruption of Services. Licensor does not represent or warrant the uninterrupted availability of utilities or Building services, which may be discontinued or temporarily diminished by reason of accident, emergency or unforeseeable act of God or other causes beyond Licensor’s control. Any such interruption shall not render Licensor liable to Licensee. 5.2 Repairs, Maintenance. Licensor shall be responsible for the repair and maintenance of the Building and those systems which are a part of the common building improvements, the cost of which shall be borne by Licensor unless made necessary by the negligence, misuse or default of Licensee, its employees, agents, customers or invitees, in which event Licensee shall reimburse Licensor for same. 5.3 Signage. Licensor will exclusively provide all signage. Licensee shall not apply any signs, decals, or covering of any kind to exterior windows or interior glass without prior written permission from the Licensor. 5.4 Fire and Other Casualty. If the Space is damaged or destroyed such that the Space is rendered unusable for a period of at least 60 days, Licensor has the option to terminate this License. If the DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 340583 PAGE 6 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT License is not terminated, Licensor shall repair or restore the Space, and License Fee shall be abated in proportion to the damaged area until the Space are restored. In no event shall Licensor be required to repair or replace Licensee’s inventory, fixtures, furnishings, equipment or improvements located in or installed on the Space. 6. Indemnification, Insurance: 6.1 Indemnification. Licensee shall indemnify and hold harmless Licensor and its agents, successors and assigns from and against all expense, injury, loss, claims or damage, including attorney’s fees and disbursements, to any person or property arising from, related to, or in connection with, Licensee’s use, occupancy, construction or repair of the Space, except injury, loss, claims or damage caused solely by the gross negligence or willful misconduct of Licensor. All property of Licensee and Licensee’s employees or guests in the Space shall be kept and stored at Licensee’s sole risk and Licensee shall hold Licensor harmless from any claims arising out of damage to such property. 6.2 Licensee Insurance. Licensee, at its own expense, shall maintain during the term of this License a policy for comprehensive general liability insurance, including personal injury and property damage, with contractual liability endorsement, in the amount of $500,000 for property damage and $500,000 per occurrence and $1,000,000 in the aggregate for personal injuries or deaths of persons occurring in or about the Space. Licensee, at its own expense, shall also maintain during the term of the License fire and extended coverage insurance covering the replacement cost of (i) all alterations, additions, partitions and improvements installed or placed on the Space by Licensee or by Licensor at the request of Licensee, (ii) all of Licensee’s personal property contained within the Space. Said policies shall (i) name the Licensor (Northland Salons, LLC) as an additional insured and insure Licensor’s contingent liability under or in connection with this License (except for the worker’s compensation policy, which instead shall include a waiver of subrogation endorsement in favor of Licensor), (ii) be issued by an insurance company which is acceptable to Licensor, and (iii) provide that said insurance shall not be cancelled unless thirty (30) days prior written notice has been given to Licensor. Said policy or policies or certificates thereof shall be delivered to Licensor by Licensee on or before the Occupancy Date and upon each renewal of said insurance. 7. Defaults and Remedies: 7.1 Defaults - Remedies By Licensee. 7.1.1 It shall be an Event of Default: (i) If Licensee does not pay in full when due any and all License Fee and, except as provided in subparagraph 7.1.3. below, Licensee fails to cure such default on or before the date that is 5 days after Licensor gives Licensee notice of default; (ii) If Licensee enters into or permits any Assignment or Subletting in violation of Paragraph 8.6 below; (iii) If Licensee fails to observe and perform or otherwise breaches any other provision of this License, and, except as provided in subparagraph 7.1.3 below, Licensee fails to cure the default on or before the date that is 7 days after Licensor gives Licensee notice of default. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 341584 PAGE 7 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT (iv) If Licensee becomes insolvent or makes a general assignment for the benefit of creditors or offers a settlement to creditors, or if a petition in bankruptcy or for reorganization or for an arrangement with creditors under any federal or state law is filed by or against Licensee, or a bill in equity or other proceeding for the appointment of a receiver for any of Licensee’s assets is commenced, or if any of the real or personal property of Licensee shall be levied upon; provided that any proceeding brought by anyone other than Licensor or Licensee under any bankruptcy, insolvency, receivership or similar law shall not constitute an Event of Default until such proceeding has continued unstayed for more than 30 consecutive days; or (v) If Licensee fails to observe and perform or otherwise breaches any provision of the general rules (Exhibit A) of Licensor, and such failure or breach continues after notice or is repeated within a 60 day period of time. 7.1.2 If an Event of Default occurs, Licensor shall have the following rights and remedies: (i) Licensor, without any obligation to do so, may elect to cure the default on behalf of Licensee, in which event Licensee shall reimburse Licensor upon demand for any sums paid or costs incurred by Licensor (together with an administrative fee of 15% thereof) in curing the default, plus interest at the rate at the prime rate published in the Wall Street Journal plus 5% (the “Interest Rate”) from the respective dates of Licensor’s incurring such costs, which sums and costs together with interest at the Interest Rate shall be deemed additional License Fee; (ii) To enter and repossess the Space, by opening locked doors if necessary, and removing all persons and all or any property, by action at law or otherwise, without being liable for prosecution or damages. Licensor may, at Licensor’s option, make Alterations and repairs in order to license the Space and license all or any part(s) of the Space for Licensee’s account. Licensee agrees to pay to Licensor on demand any deficiency (taking into account all costs incurred by Licensor) that may arise by reason of such re-licensing. In the event of re-licensing without termination of this License, Licensor may at any time thereafter elect to terminate this License for such previous breach; (iii) To accelerate the whole or any part of the License Fee for the balance of the Term, and declare the same to be immediately due and payable; and (iv) To terminate this License and the Term without any right on the part of Licensee to save the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken. 7.1.3 Any provision to the contrary in this subparagraph 7.1.3 notwithstanding, Licensor shall not be required to give Licensee the notice and opportunity to cure provided in subparagraph 7.1.1 above more than twice in any consecutive 12-month period, and thereafter Licensor may declare an Event of Default without affording Licensee any of the notice and cure rights provided under this License. 7.1.4 No waiver by Licensor of any breach by Licensee shall be a waiver of any subsequent breach, nor shall any forbearance by Licensor to seek a remedy for any breach by Licensee be a waiver by Licensor of any rights and remedies with respect to such or any subsequent breach. Efforts by Licensor to mitigate the damages caused by Licensee’s default shall not constitute a waiver of Licensor’s right to recover damages hereunder. No DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 342585 PAGE 8 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT right or remedy herein conferred upon or reserved to Licensor is intended to be exclusive of any other right or remedy provided herein or by law, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity. No payment by Licensee or receipt or acceptance by Licensor of a lesser amount than the total amount due Licensor under this License shall be deemed to be other than on account, nor shall any endorsement or statement on any check or payment be deemed an accord and satisfaction, and Licensor may accept such check or payment without prejudice to Licensor’s right to recover the balance of License Fee due, or Licensor’s right to pursue any other available remedy. 7.1.5 If Licensor commences an action against the other party arising out of or in connection with this License, the Licensor shall be entitled to have and recover from the other party reasonable attorneys’ fees, costs of suit, investigation expenses and discovery costs, including costs of appeal. 7.2 Default by Licensor Under Lease for Entire My Salon Suite. Licensor is a lessee of the entire Suite ("Licensor's Lease"). Pursuant to the provisions of Licensor's Lease, if Licensor defaults under Licensor's Lease, and if Licensor fails to cure such default within the time periods set forth in Licensor's Lease, if any, then the lessor thereunder, at its option, has the right to exercise any one or more of several remedies including termination of Licensor's Lease and re-letting the entire Suite to another lessee. In such a case, this License may terminate without prior notice. 8. Miscellaneous General Provisions: 8.1 Access to the Space. Licensor, its employees, and agents, shall have the right to enter the Space at all reasonable times for any purpose, including examining or inspecting same, showing the same to prospective licensees, and for making such repairs, alterations or improvements to the Space or to the building as Licensor may deem necessary or desirable. 8.2 Eminent Domain. If all or a substantial part of the Space is taken by right of eminent domain, this License shall terminate as of the date Licensor is entitled to all compensation awarded for the taking and Licensee shall have no claim against Licensor for the value of the unexpired term of the License. However, Licensee shall have the right to recover from the taking authority, but not from Licensor, such compensations may be awarded to Licensee on account of moving and relocation expenses and depreciation to and removal of Licensee’s trade fixtures and personal property. 8.3 Notices. Any notice required or permitted to be given under this License shall be deemed to have been given or served when made in writing and delivered in person or mailed by registered or certified mail, postage prepaid, to the party who is to receive such notice at the address specified in this License. When so mailed, the notice shall be deemed to have been given as of the date it was mailed. The addresses for notices and payments may be changed by written notice given to the other party. 8.3.1 Address for Notices. A party’s address shall be as follows or as set forth in a notice to the other party: LICENSOR: Northland Salons, LLC C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 TELEPHONE: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 343586 PAGE 9 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSEE: NAME: ADDRESS: CITY, STATE, ZIP: TELEPHONE: E-MAIL: 8.4 Governing Law and Venue. This License is being executed and delivered in the State of Minnesota and shall be construed and enforced in accordance with the State courts of Minnesota in Hennepin County. Before Licensee may commence litigation against Licensor, Licensee’s dispute must first be mediated. Mediation shall occur within 45 days of Licensee providing written notice of Licensee’s claim to Licensor, with Licensee’s claims and factual support therein identified. 8.5 Complete Agreement; Amendments; Headings. This License, including all Exhibits and Addenda, constitutes the entire agreement between the parties. It supersedes all previous understandings and agreements between the parties, and no oral or implied representation or understanding shall vary its terms. It may not be amended except by a written instrument executed by both parties. The topical headings in this License are inserted only as a matter of convenience and reference, and do not affect, define, limit or describe the scope or intent of this License. 8.6 Assignment and Subletting. Licensee shall not have the right to assign the License without the written consent of Licensor, which consent may be in the sole discretion of Licensor. Notwithstanding any assignment, however, the Licensee shall remain primarily liable under the License. Any assignment or sublicense without Licensor’s prior written consent shall at the Licensor’s option be a termination of this License. 8.7 Liability of Licensor; Disclaimer of Liability. Licensee acknowledges and agrees that the liability of Licensor under this License shall be limited to its interest in the Space and any judgments rendered against Licensor shall be satisfied solely out of the proceeds of sale of its interest in the Space, including the license fees generated thereby, which are actually received by Licensor. Licensee understands and voluntarily accepts any risks associated with Licensee’s services or any use of the Space or Building. Except where prohibited by law, Licensee agrees that Licensor and all of their affiliates and subsidiaries and their respective successors, assignees, officers, directors, owners, employees, agents and representatives will not be liable for any injury, including, without limitation, personal, bodily, or mental injury, economic loss, or any damage resulting from negligence, acts of God, acts of terrorism, and other acts of the Licensor, its employees, officers, managers, representatives, owners, partners, or affiliates. The Licensee expressly and specifically agrees to waive, and agrees not to make, any claim for damages, direct, indirect, punitive, special or consequential, including, but not limited to, lost business, revenue, profits or data, for any reason whatsoever arising out of or in connection with this License, any failure to furnish any service provided hereunder, any error or omission with respect thereto, from failure of any and all courier service to deliver on time or otherwise deliver any items (mail, packages, etc.), or any interruption of services. [Signatures on following page.] DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF N. GIOI LIFE, LLC 55372 5644 Cedarwood St NE Minnesota Gioi2theworld@gmail.com Prior Lake 6122504502 344587 PAGE 10 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT IN WITNESS WHEREOF, the parties hereto have executed this License as of the dates written below. LICENSEE: LICENSOR: Northland Salons, LLC BY: BY: NAME: NAME: Rachel Kueppers TITLE: TITLE: Property Manager DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF Patrice Aksamit N. GIOI LIFE, LLC Owner 345588 PAGE 11 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT EXHIBIT A LICENSOR’S GENERAL RULES 1. Licensee shall at all times and in all manners conduct itself in a cooperative, cordial and professional manner and shall not do anything that shall disrupt the operations of Licensor or any of its other licensees. In addition, Licensee shall respond to all reasonable requests of Licensor related to the use and occupancy of the Space when Licensor, it its sole discretion, determines that the conduct of Licensee is in conflict with Licensor’s reasonable expectations concerning cooperation, professional conduct and compliance with these General Rules. 2. Licensee is strictly forbidden to bring his/her own children into the salon during the workday. Children of clients are permitted in the salon however they must be accompanied by an adult at all times. Client’s children must remain inside the suite during the client visit. 3. Any sidewalks, lobbies, passages, elevators and stairways shall not be obstructed or used by Licensee for any purpose other than ingress and egress from and to the Space. Licensor shall in all cases retain the right to control or prevent access by all persons whose presence, in the judgment of Licensor, shall be prejudicial to the safety, peace or character of the Space. 4. The bathrooms, toilets, urinals, sinks, faucets, plumbing or other service apparatus of any kind shall not be used for any purposes other than those for which they were installed, and no sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed therein or used in connection therewith or left in any lobbies, passages, or stairways. 5. Licensee shall not impair in any way the fire safety system and shall comply with all security, safety, fire protection and evacuation procedures and regulations established by Licensor or any governmental agency. 6. Windows, doors and transoms shall not be covered or obstructed by Licensee, and Licensee shall not install any window covering which would affect the exterior appearance of the Space, except as approved in writing by Licensor. If curtains are used to cover the suite door, the curtains must be neutral in color and approved by Licensor. Licensee shall not remove, without Licensor’s prior written consent, any shades, blinds or curtains in the Space. 7. Licensee shall not paint walls, flooring or suite furnishings. Licensee shall not hang, install, mount, suspend or attach anything from or to any sprinkler, plumbing, utility or other lines. If Licensee paints, hangs, installs, mounts, suspends or attaches anything from or to any doors, windows, walls, floors or ceilings, Licensor will repair using Licensee’s Retainer. Licensee shall not make repairs to the suite. The Licensor will repair any damage at the Licensee’s expense caused thereby or by the removal thereof at or prior to the expiration or termination of the License. 8. Licensee shall not change any locks nor place additional locks upon any doors. 9. Licensee shall not use nor keep in the Building any matter having an offensive odor, nor explosive or highly flammable material, nor shall any animals other than service animals as defined by the Minnesota Human Rights Act or ADA in the company of their masters be brought into or kept in or about the Property. 10. Licensee shall have the right, at Licensee’s sole risk and responsibility, to use only the common parking spaces located on the property as reasonably determined by the Building owner. Licensee shall comply with all parking regulations promulgated by the Building owner from time to time for the orderly use of the vehicle parking. Employee and Licensee vehicles shall not be parked in spaces marked for visitor parking or other specific use. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 346589 PAGE 12 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 11. Licensee and its guests shall not smoke in the Building or at the building entrances and exits. 12. Licensee shall provide Licensor with a written identification of any vendors engaged by Licensee to perform services for Licensee at the Space (examples: telecommunications installers/maintenance), and all vendors shall be subject to Licensor’s reasonable approval. Licensee assumes all responsibility for protecting its Space from theft and vandalism and Licensee shall see each day before leaving the Space that all lights are turned off and that the windows and the doors are closed and securely locked. 13. Licensee shall comply with any move-in/move-out rules provided by Licensor and with any rules provided by Licensor governing access to the Building outside of Normal Business Hours. Throughout the Term, no furniture, packages, equipment, supplies or merchandise of Licensee will be received in the Building, or carried up or down in the elevators or stairways, except during such hours as shall be designated by Licensor, and Licensor in all cases shall also have the exclusive right to prescribe the method and manner in which the same shall be brought in or taken out of the Building. 14. Licensee shall cause all of Licensee’s guests, customers and invitees to comply with these General Rules. 15. Licensor reserves the right to rescind, suspend or modify any rules or regulations and to make such other rules and regulations as, in Licensor’s reasonable judgment, may from time to time be needed for the safety, care, maintenance, operation and cleanliness of the Space. Notice of any action by Licensor referred to in this section, given to Licensee, shall have the same force and effect as if originally made a part of the foregoing License. 16. These General Rules are not intended to give Licensee any rights or claims in the event that Licensor does not enforce any of them against any other Building occupants or if Licensor does not have the right to enforce them against any other occupants and such non-enforcement will not constitute a waiver as to Licensee. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 347590 PAGE 13 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ADDENDUM ONE (1) This addendum and items contained herewith shall be in full compliance and accord with License agreement as outlined above. The following provisional Items are also included: DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF Licensee will receive the following Move-In Specials: - Free chandelier installation - Free accent wall painting, plus small wall (2ft x 10ft) - One hour of free handyman work - One week of License Fees free - Discount of $10/wk for the first Term Licensee is responsible for the Massage Therapy Business Licensing requirements through the City of Chanhassen. Licensee has 60 days to occupy the Space following the approval of the Massage Therapy Business License. The Occupancy Date is listed at September 1st, 2023 and will be adjusted accordingly. Licensee has the option to occupy the Space prior to September 1st, 2023, with notice given to Licensor. If Occupancy Date is adjusted, Licensee and Licensor will sign a License Amendment to indicate the revised terms. The License Agreement will terminate and the reservation deposit of $200.00 will be returned to Licensee in the event that the Massage Therapy Business License or Massage Therapy Background Investigations are not approved by the Chanhassen City Council. Upon the approval of the Massage Therapy Business License, Licensee will be given access to the Space once the following are completed: - Copy of Driver's License of Massage Therapists operating within the Space provided to Licensor - Copy of Massage Therapy Business License provided to Licensor - Copy of Certificate of Liability Insurance provided to Licensor - Copy of Articles of Organization of MN Business provided to Licensor - Completed ACH Authorization Form - Remaining Retainer paid in full ($460.00) 348591 Community Guidelines YOU AND YOUR VISITORS WILL NOT: ●Leave children unattended on the property. ●Do anything to disturb your neighbor, including playing loud music. ●Allow anyone other than your own visitor into the building. ●Use the hallways as a waiting area. ●Keep any pets on the premises. ●Burn candles or have any open flame on the premises. ●Do anything that will violate any law. ●Permit any nuisance on the premises. ●Make any alterations, additions, or improvements in or to your suite or the building without permission. ●Allow any persons other than those set forth in the lease to occupy your suite. ●Smoke or vape in your suite, inside the premises, or near the entrance to the premises. YOU AND YOUR VISITORS WILL: ●Follow all State Board and Health Department guidelines for safety, sanitation, and disinfection procedures. ●Keep the area outside of your suite clean. ●Take good care of the property, including the common areas, bathrooms, suites, and equipment we supply. ●Follow our zero-tolerance policy on drugs and alcohol use or possession on the premises. ●Close your suite door if the noise in your suite is loud enough to carry into others. ●Remove garbage regularly from your suite and place in the black-lid dumpster. ●Remove recycling regularly from your suite and place in yellow-lid dumpster. ●Permit the landlord to enter the suite during reasonable hours to inspect or make necessary repairs. ●Schedule all maintenance work through the property manager. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 349592 The Suite Elite community goes far beyond the walls of your suites; join us to make the whole world a little brighter by contributing $2.00 a week for a good cause. Suite Elite Members have raised over $250,000 offering grants to Suite Elite Members through the PBA Covid Relief Fund, PBA Natural Disaster Fund and supporting national foundations like St. Jude Children's Research Hospital. Thank you for your support. Please know your donation is tax deductible. ________ (Initials) __ Yes! I am excited to donate $2 a week to the Suite Relief Fund. Count me in! ___ I would like to change the donation amount from $2 a week to $______ a week. ___ No, I do not want to donate $2 a week to the Suite Relief Fund. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF X 350593 City Council Item July 17, 2023 Item Approve a Massage Therapy Business License for Jaime DeBoer, LLC located at 8951 Crossroads Boulevard, Suite 206 (My Salon Suite) File No.Item No: D.7 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, Sr. Admin Support Specialist Reviewed By Laurie Hokkanen SUGGESTED ACTION “The Chanhassen City Council approves a Massage Therapy Business License for Jaime DeBoer, LLC located at 8951 Crossroads Boulevard, Suite 206 (My Salon Suite).” Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND On November 25, 2013 the City Council approved Ordinance No. 584 amending Chapter 10 of the Chanhassen City Code concerning Massage Therapy Business Licensing. The approval of this ordinance required all businesses offering massage therapy, with the exception of chiropractor offices and home occupations, to obtain a license from the City of Chanhassen. The license application includes a $50 license fee and $250 background check fee. The background check is conducted by the Carver County Sheriff’s Office and examines the following: Subject(s): Owner(s) and General Manager(s). Owner must disclose all businesses owned currently and in the past 7 years. 351 Once licensed, business owners are responsible for the following: Maintaining each employee's full name, date of birth, and address. Truthfully represent their business operations. A license is subject to revocation or suspension. A license holder may be summoned for an administrative hearing for the following reasons: Content of advertising that calls into question the nature of the business. Suspension or revocation of a license in another city. DISCUSSION Jaime DeBoer submitted a Massage Therapy Business License application for Jaime DeBoer, LLC, to be located at 8951 Crossroads Boulevard, Suite 206 (My Salon Suite), on June 29, 2023. Ashley Ullevig, Background Investigator for the Carver County Sheriff’s Office, conducted a full background check. The background check produced no unfavorable information on Ms. DeBoer. BUDGET N/A RECOMMENDATION Staff recommends that the Chanhassen City Council approve a Massage Therapy Business License for Jaime DeBoer, LLC to be located at 8951 Crossroads Boulevard, Suite 206 (My Salon Suite). ATTACHMENTS Massage License Application - Jamie DeBoer Property Report Card Lease Agreement with My Salon Suite 352 ITY OF CHANHASSEN n q- t-z Massage Therapy Business License L Application \ of \ t Each fhe busrness shall complete this application. lf the owner is an form must be completed by such person; if a corporation, by an officer; if a paftnership, by one of the general paftners; if an unincorporated association, by the manager or managing officer. Each person seruing as a general manager for fhe buslness sha// also co mp I etg q ry ap pljq p!!- n. FullName:D!-Bo er Jil^e Lq nn ooa, 01'zb / t?81 Lasf F,rst ----Htniddte Business Name:J e^,lvne T\t-Bo<rt- LL U Section 1: Applicant lnformation Residence Address Slreel City Slafe A.(N zip 55Zi'7BusinessAddress:915 i G^ossro^-Lls Blvcl . Uu*,ha-gs-e-, Phone: telhL I uto - 4ol Fax: r City State Zp Alternate Phone: (_) Email: a Street o Business Name: Business Name: Business Name: K ro=S Please list any massage businesses owned/operated or worked at by this individual in the past seven Business Name: Address: ' From '?4 t I ro j t*ne t '7-o Z3 one)Year Month Year Please list any cunent massage business licenses held in the State of Minnesota City: City: City: Please list any criminal convictions you have: hlon a Monh 353 City of Chanhassen Massage Therapy Business License Application Page 2 Please provide three character witnesses currenuy living in the Slate of Minnesota Email: 0lzq / zE Notice FEE: $300 ($50 application fee plus $250 for background check). Make check payable to city of chanhassen. 354 Property Card Taxpayer Information Property Address Parcel Information Building Information Miscellaneous Information Assessor Information Ta xp ayer N ameNORTHLAND SALONS CHAN OWNER, LLC Mailin g Address 4324 W LAKE HARRIET PKWY 2 MINNEAPOLIS, MN 55410- Parcel ID Number 25248 0021 Address 8951 CRO SSR OADS BLVD City CHANHASSEN, MN 55317 Uses Comme rcial AcresPlatLotBlock 0.5 4 Legal Description That part of Lot 2, Block 1, CROSSROADS OF CHANHASSEN, according to the recorded plat thereof, Bu ilding Style Year Built Garag e Ab ove G radeFinished Sq Ft To tal Bed ro oms Scho ol District Watershed District Homestead Green Acre s Ag Preserve0112WS 0 64 RIL EY PURG BLU FF N N Estimated Market Value Land Bu ilding To tal 2022 Value s(Paya ble 2023 )2023 Value s(Paya ble 2024 )Last Sale Date of Sale Sa le Va lue $450,000 .00 $0.00 $450,000 .00 $348,500 .00 $1,124,800.00 $1,473,300.00 11/1 8/2 021 $330,652 .00 The data provided herewith is for reference purposes only. This data is not suitable for legal, engineering, surveying or other similar purposes. Carver County does not guarantee the accuracy of theinformation contained herein. This data is furnished on an ‘as is’ basis and Carver County makes no representations or warranties, either expressed or implied, for the merchantability or fitness of theinformation provided for any purpose. This disclaimer is provided pursuant to Minnesota Statutes §466.03 and the user of the dataprovided herein acknowledges that Carver County shall not be liable for any damages, and by using this data in any way expressly waives all claims, and agrees to defend, indemnify, and holdharmless Carver County, its officials, officers, agents, employees, etc. from any and all claims brought by anyone who uses the information provided for herein, its employees or agents, orthird parties which arise out of user's access. By acceptance of this data, the user agrees not to transmit this data or provide access to it or any part of it to another party unless the user includeswith the data a copy of this disclaimer. Monday, July 3, 2023 Carver Co unty, MN355 Northland Salons, LLC. D B A M Y S A L O N S U I T E® LICENSE AGREEMENT DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 356566 PAGE 2 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT BASIC LICENSE PROVISIONS 1. DATE OF LICENSE AGREEMENT: 2. LICENSOR: Northland Salons, LLC DBA: MY SALON Suite 3. MANAGER: Northland Management Group, LLC 4. ADDRESS OF LICENSOR: Northland Salons, LLC. C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 Phone: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com 5. ADDRESS OF SPACE: 8951 Crossroads Blvd Chanhasssen, MN 55317 Salon Suite Number: ___ 6. LICENSEE’S NAME: 7. LICENSEE’S ADDRESS: TELEPHONE: EMAIL: 8. OCCUPANCY DATE: 9. TERM: (See Paragraph 2.1.) Unless sooner terminated as hereinafter provided, the initial term of this License shall be on or before (1) year beginning on the first day of the month following the Occupancy Date and will automatically renew on a (1) year basis thereafter unless Licensee provides Licensor with sixty (60) days advance written notice of Licensee’s intent not to renew the License. 10. WEEKLY LICENSE FEE: (See Paragraph 3.1) $ per week due each Monday during the Term. 11. MOVE-IN SPECIAL: (See Paragraph 3.1.1) $ per week for the first __ of the initial Term. 12. RETAINER: (See Paragraph 3.4) Licensee shall deposit with Licensor a retainer equal to two (2) weeks License Fee in the amount of $ . 13. USE OF LICENSED SPACE: (See Paragraph 4.) Licensee shall use the Licensed Space as a general beauty and spa complex and shall not use the Space for any other purpose without the prior written consent of Licensor, which consent may be granted or withheld in Licensor’s sole discretion. In the event of any conflict between the Basic License Provisions and the balance of this License, the latter shall control. Each of the terms contained in the Provisions shall be construed in conjunction with the remainder of this License, in particular, the referenced portions thereof. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 55318 jaimedb28@gmail.com 52 weeks 9522405407 206 2023-09-01 315.00 6/29/2023 275.00 630.00 Minnesota 737 7th St Chaska Jaime DeBoer 357567 PAGE 3 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSE AGREEMENT This License Agreement (“License”) dated the ____ ______(“Date”) is entered into by and between Northland Salons, LLC DBA: My Salon Suite ("Licensor"), and ("Licensee"). For good and valuable consideration, including the promises of the parties, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 1. Licensed Space: 1.1 Space. In consideration of the License Fees herein provided, and the terms, provisions and covenants hereof, Licensor hereby licenses to Licensee, and Licensee hereby licenses from Licensor, a salon suite known or to be known by the salon suite number specified in Item 4 of the Basic License Provisions (the “Space”) in the building known as My Salon Suite located at 8951 Crossroads Blvd, Chanhassen, MN 55317(the “Building”). Any reference to the term “Building” shall include the salon building, the land, and the common areas, unless the context requires otherwise. The License of the Space entitles Licensee to the non-exclusive right to use the common areas and parking lot, subject to the rights and considerations of other Licensees. This License constitutes a revocable license agreement between Licensee and Licensor. Licensee agrees that this License creates no tenancy, leasehold estate or any other property interest. Licensee hereby acknowledges and agrees that this License is subordinate to the terms of the lease agreement between the Licensor and its landlord. 2. Term: 2.1 Term. Unless sooner terminated as hereinafter provided, the term of this License shall be for (1) year beginning the first day of the month following (the "Occupancy Date") and unless renewed shall terminate upon expiration of this Term. 2.2 Renewal. Provided Licensee has never been in default hereunder, this License will automatically renew following the Initial Term for up to a maximum of three additional terms of (1) year each, (a “Renewal Term”) unless Licensee gives written notice to Licensor at least sixty (60) days prior to the end of the Initial Term or any Renewal Term that it will not renew the License, time being of the essence. Upon renewal, this License shall be extended upon the terms, covenants and conditions as provided in this License. 2.3 Renewal Option. In the event either the Licensor or the Licensee desires not to renew the License as provided for herein in Paragraph 2.2., then the deciding party shall give the other party written notice of its intention to not renew the License not later than sixty (60) days prior to the end of the then current Term, time being of the essence. 3. License Fee: 3.1 Weekly License Fee. Licensee shall pay Licensor $ in equal weekly installments payable upon the first Monday following the Occupancy Date, or the date that the Licensee occupies the Space, whichever is sooner, and is due at by no later than Noon on each Monday thereafter. If the Occupancy Date is not on a Monday, then the Weekly License Fee shall be pro-rated for the first week. The License Fee may increase a maximum of fifteen percent (15%) per year for each Renewal Term with Licensor giving Licensee notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term. If Licensor fails to give such notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term, then the increase shall automatically be deemed to be DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 2023-09-01 6/29/2023 315.00 Jaime DeBoer 358568 PAGE 4 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ten percent (10%). 3.1.1 Move-In Special. For promotional consideration, the Weekly License Fee shall be in the amount of $ ____ per week for the first __ of the initial Term of this License (the “Move-In Special”). If the Occupancy Date is not on a Monday, then the Move-In Special shall be pro-rated for the first week. 3.1.2 Payments. All payments shall be made to Northland Salons, LLC via ACH through QuickBooks Online (QBO). 3.2 Service Charge. If any installment of the Weekly License Fee or other amount which Licensee is obligated to pay under the terms of this License is not paid within five (5) days after it’s due date, said amount shall be subject to a penalty of ten percent (10%) of the amount due plus a service charge of one and one-half percent (1.5%), or such lesser percentage as may be the maximum permitted by law, for each month or fraction thereof until the Weekly License Fee is paid. 3.3 Insufficient Funds. Licensee agrees to pay the charge of $20.00 for each check or other payment provided by Licensee to Licensor that is returned to Licensor for lack of sufficient funds. 3.4 Retainer. Licensee, contemporaneously with the execution of this License, shall deposit with Licensor a Retainer equal to two (2) weeks Weekly License Fee in the amount of $ ___ . In the event that Licensee shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this License, the Retainer shall be returned to Licensee within thirty (30) days after the end of the License and after delivery of entire possession of the Space to Licensor in good condition, reasonable wear and tear accepted. It is understood and agreed that Licensor shall inspect the Space and has the right to make such repairs to the Space as deemed reasonably necessary, and deduct such repair costs from the Retainer. 4. Use of Licensed Space: 4.1 Use. The Space shall be used by Licensee as a general beauty and salon complex, to include massage services and shall not be used for any other purpose without the prior written consent of the Licensor. 4.2 Services Provided by Licensor. Licensor will provide basic janitorial services of common areas and restroom facilities, plus electricity, heating, cooling, water, sewage, HVAC service maintenance, security system and Wi-Fi for Licensee and Licensee's guests. 4.2.1 The Suite consists of the following items (the “Suite Equipment”): _____ Salon Suite: Salon Suite: Double-sided styling station with full-length mirror, hydraulic styling chair, state-of-the-art adjustable shampoo bowl and shampoo chair with storage cabinet, private color bar with sink and lower cabinet storage, upper cabinet with color tube dividers, cushion flooring, granite countertops, and a private lockable entrance. _____ Spa Suite: Upper and lower cabinet storage with sink, adjustable massage bed with storage, cushion flooring, granite countertops, and a private lockable entrance. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 275.00 630.00 X 52 weeks 359569 PAGE 5 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 4.3 Licensee Obligations. Licensor makes no representation regarding the condition of the Space and Licensee accepts the Space in its “As Is” condition. Licensee agrees to at all times keep and maintain the Space in a clean and professional condition. Licensee, at Licensee’s own expense, shall promptly repair any damage to the Space Equipment caused by any act or omission of Licensee or any agent, employee, customer, guest or invitee of Licensee. Licensee shall not bring in any furniture, fixtures and or appliances into their Space without prior written approval by the Licensor. Appliances, such as refrigerators and microwaves shall be either black or stainless steel. At the end of License, Licensee agrees to return the Space and Space Equipment in as good condition as at the beginning of the term of this License with some reasonable ordinary wear and tear accepted. 4.4 Licenses. Licensee shall possess and legally maintain at all times during its occupancy of the Space ANY LICENSING requirements to own and operate a cosmetology business in the State of Minnesota. Licensee bears full responsibility of knowledge and education of said licensing requirements. 4.5 Conduct. Licensee shall not use the Space in any manner constituting a violation of any ordinance, statute, regulation or order of any governmental authority or applicable state and/or federal laws or in violation of Licensor’s general rules (Exhibit A). Licensee shall use the Space in a safe, careful, proper and lawful manner and shall keep and maintain the Space in as good a condition as when Licensee first took possession thereof, and Licensee shall not commit, or allow being committed, any act of waste in, on or about the Space or the Building. Licensee shall not create, maintain or permit any nuisance in the Space or the Building, or permit any objectionable or offensive noise or odors to be emitted from the Space. If Licensee uses the Space in any manner which would invalidate any policy of insurance now or hereafter carried on the Building or increase the rate of premiums payable on any such insurance policy, Licensor may, at its option, require Licensee to discontinue such use or to reimburse Licensor as additional License Fee for any increase in premiums attributable to the use being made by Licensee. 4.6 Surrender. Any personal property or trade fixtures not removed within fifteen (15) days following the expiration or termination of the License may be removed and disposed of by Licensor without incurring any liability to Licensee. 5. Building Services: 5.1 Interruption of Services. Licensor does not represent or warrant the uninterrupted availability of utilities or Building services, which may be discontinued or temporarily diminished by reason of accident, emergency or unforeseeable act of God or other causes beyond Licensor’s control. Any such interruption shall not render Licensor liable to Licensee. 5.2 Repairs, Maintenance. Licensor shall be responsible for the repair and maintenance of the Building and those systems which are a part of the common building improvements, the cost of which shall be borne by Licensor unless made necessary by the negligence, misuse or default of Licensee, its employees, agents, customers or invitees, in which event Licensee shall reimburse Licensor for same. 5.3 Signage. Licensor will exclusively provide all signage. Licensee shall not apply any signs, decals, or covering of any kind to exterior windows or interior glass without prior written permission from the Licensor. 5.4 Fire and Other Casualty. If the Space is damaged or destroyed such that the Space is rendered unusable for a period of at least 60 days, Licensor has the option to terminate this License. If the DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 360570 PAGE 6 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT License is not terminated, Licensor shall repair or restore the Space, and License Fee shall be abated in proportion to the damaged area until the Space are restored. In no event shall Licensor be required to repair or replace Licensee’s inventory, fixtures, furnishings, equipment or improvements located in or installed on the Space. 6. Indemnification, Insurance: 6.1 Indemnification. Licensee shall indemnify and hold harmless Licensor and its agents, successors and assigns from and against all expense, injury, loss, claims or damage, including attorney’s fees and disbursements, to any person or property arising from, related to, or in connection with, Licensee’s use, occupancy, construction or repair of the Space, except injury, loss, claims or damage caused solely by the gross negligence or willful misconduct of Licensor. All property of Licensee and Licensee’s employees or guests in the Space shall be kept and stored at Licensee’s sole risk and Licensee shall hold Licensor harmless from any claims arising out of damage to such property. 6.2 Licensee Insurance. Licensee, at its own expense, shall maintain during the term of this License a policy for comprehensive general liability insurance, including personal injury and property damage, with contractual liability endorsement, in the amount of $500,000 for property damage and $500,000 per occurrence and $1,000,000 in the aggregate for personal injuries or deaths of persons occurring in or about the Space. Licensee, at its own expense, shall also maintain during the term of the License fire and extended coverage insurance covering the replacement cost of (i) all alterations, additions, partitions and improvements installed or placed on the Space by Licensee or by Licensor at the request of Licensee, (ii) all of Licensee’s personal property contained within the Space. Said policies shall (i) name the Licensor (Northland Salons, LLC) as an additional insured and insure Licensor’s contingent liability under or in connection with this License (except for the worker’s compensation policy, which instead shall include a waiver of subrogation endorsement in favor of Licensor), (ii) be issued by an insurance company which is acceptable to Licensor, and (iii) provide that said insurance shall not be cancelled unless thirty (30) days prior written notice has been given to Licensor. Said policy or policies or certificates thereof shall be delivered to Licensor by Licensee on or before the Occupancy Date and upon each renewal of said insurance. 7. Defaults and Remedies: 7.1 Defaults - Remedies By Licensee. 7.1.1 It shall be an Event of Default: (i) If Licensee does not pay in full when due any and all License Fee and, except as provided in subparagraph 7.1.3. below, Licensee fails to cure such default on or before the date that is 5 days after Licensor gives Licensee notice of default; (ii) If Licensee enters into or permits any Assignment or Subletting in violation of Paragraph 8.6 below; (iii) If Licensee fails to observe and perform or otherwise breaches any other provision of this License, and, except as provided in subparagraph 7.1.3 below, Licensee fails to cure the default on or before the date that is 7 days after Licensor gives Licensee notice of default. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 361571 PAGE 7 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT (iv) If Licensee becomes insolvent or makes a general assignment for the benefit of creditors or offers a settlement to creditors, or if a petition in bankruptcy or for reorganization or for an arrangement with creditors under any federal or state law is filed by or against Licensee, or a bill in equity or other proceeding for the appointment of a receiver for any of Licensee’s assets is commenced, or if any of the real or personal property of Licensee shall be levied upon; provided that any proceeding brought by anyone other than Licensor or Licensee under any bankruptcy, insolvency, receivership or similar law shall not constitute an Event of Default until such proceeding has continued unstayed for more than 30 consecutive days; or (v) If Licensee fails to observe and perform or otherwise breaches any provision of the general rules (Exhibit A) of Licensor, and such failure or breach continues after notice or is repeated within a 60 day period of time. 7.1.2 If an Event of Default occurs, Licensor shall have the following rights and remedies: (i) Licensor, without any obligation to do so, may elect to cure the default on behalf of Licensee, in which event Licensee shall reimburse Licensor upon demand for any sums paid or costs incurred by Licensor (together with an administrative fee of 15% thereof) in curing the default, plus interest at the rate at the prime rate published in the Wall Street Journal plus 5% (the “Interest Rate”) from the respective dates of Licensor’s incurring such costs, which sums and costs together with interest at the Interest Rate shall be deemed additional License Fee; (ii) To enter and repossess the Space, by opening locked doors if necessary, and removing all persons and all or any property, by action at law or otherwise, without being liable for prosecution or damages. Licensor may, at Licensor’s option, make Alterations and repairs in order to license the Space and license all or any part(s) of the Space for Licensee’s account. Licensee agrees to pay to Licensor on demand any deficiency (taking into account all costs incurred by Licensor) that may arise by reason of such re-licensing. In the event of re-licensing without termination of this License, Licensor may at any time thereafter elect to terminate this License for such previous breach; (iii) To accelerate the whole or any part of the License Fee for the balance of the Term, and declare the same to be immediately due and payable; and (iv) To terminate this License and the Term without any right on the part of Licensee to save the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken. 7.1.3 Any provision to the contrary in this subparagraph 7.1.3 notwithstanding, Licensor shall not be required to give Licensee the notice and opportunity to cure provided in subparagraph 7.1.1 above more than twice in any consecutive 12-month period, and thereafter Licensor may declare an Event of Default without affording Licensee any of the notice and cure rights provided under this License. 7.1.4 No waiver by Licensor of any breach by Licensee shall be a waiver of any subsequent breach, nor shall any forbearance by Licensor to seek a remedy for any breach by Licensee be a waiver by Licensor of any rights and remedies with respect to such or any subsequent breach. Efforts by Licensor to mitigate the damages caused by Licensee’s default shall not constitute a waiver of Licensor’s right to recover damages hereunder. No DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 362572 PAGE 8 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT right or remedy herein conferred upon or reserved to Licensor is intended to be exclusive of any other right or remedy provided herein or by law, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity. No payment by Licensee or receipt or acceptance by Licensor of a lesser amount than the total amount due Licensor under this License shall be deemed to be other than on account, nor shall any endorsement or statement on any check or payment be deemed an accord and satisfaction, and Licensor may accept such check or payment without prejudice to Licensor’s right to recover the balance of License Fee due, or Licensor’s right to pursue any other available remedy. 7.1.5 If Licensor commences an action against the other party arising out of or in connection with this License, the Licensor shall be entitled to have and recover from the other party reasonable attorneys’ fees, costs of suit, investigation expenses and discovery costs, including costs of appeal. 7.2 Default by Licensor Under Lease for Entire My Salon Suite. Licensor is a lessee of the entire Suite ("Licensor's Lease"). Pursuant to the provisions of Licensor's Lease, if Licensor defaults under Licensor's Lease, and if Licensor fails to cure such default within the time periods set forth in Licensor's Lease, if any, then the lessor thereunder, at its option, has the right to exercise any one or more of several remedies including termination of Licensor's Lease and re-letting the entire Suite to another lessee. In such a case, this License may terminate without prior notice. 8. Miscellaneous General Provisions: 8.1 Access to the Space. Licensor, its employees, and agents, shall have the right to enter the Space at all reasonable times for any purpose, including examining or inspecting same, showing the same to prospective licensees, and for making such repairs, alterations or improvements to the Space or to the building as Licensor may deem necessary or desirable. 8.2 Eminent Domain. If all or a substantial part of the Space is taken by right of eminent domain, this License shall terminate as of the date Licensor is entitled to all compensation awarded for the taking and Licensee shall have no claim against Licensor for the value of the unexpired term of the License. However, Licensee shall have the right to recover from the taking authority, but not from Licensor, such compensations may be awarded to Licensee on account of moving and relocation expenses and depreciation to and removal of Licensee’s trade fixtures and personal property. 8.3 Notices. Any notice required or permitted to be given under this License shall be deemed to have been given or served when made in writing and delivered in person or mailed by registered or certified mail, postage prepaid, to the party who is to receive such notice at the address specified in this License. When so mailed, the notice shall be deemed to have been given as of the date it was mailed. The addresses for notices and payments may be changed by written notice given to the other party. 8.3.1 Address for Notices. A party’s address shall be as follows or as set forth in a notice to the other party: LICENSOR: Northland Salons, LLC C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 TELEPHONE: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 363573 PAGE 9 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSEE: NAME: ADDRESS: CITY, STATE, ZIP: TELEPHONE: E-MAIL: 8.4 Governing Law and Venue. This License is being executed and delivered in the State of Minnesota and shall be construed and enforced in accordance with the State courts of Minnesota in Hennepin County. Before Licensee may commence litigation against Licensor, Licensee’s dispute must first be mediated. Mediation shall occur within 45 days of Licensee providing written notice of Licensee’s claim to Licensor, with Licensee’s claims and factual support therein identified. 8.5 Complete Agreement; Amendments; Headings. This License, including all Exhibits and Addenda, constitutes the entire agreement between the parties. It supersedes all previous understandings and agreements between the parties, and no oral or implied representation or understanding shall vary its terms. It may not be amended except by a written instrument executed by both parties. The topical headings in this License are inserted only as a matter of convenience and reference, and do not affect, define, limit or describe the scope or intent of this License. 8.6 Assignment and Subletting. Licensee shall not have the right to assign the License without the written consent of Licensor, which consent may be in the sole discretion of Licensor. Notwithstanding any assignment, however, the Licensee shall remain primarily liable under the License. Any assignment or sublicense without Licensor’s prior written consent shall at the Licensor’s option be a termination of this License. 8.7 Liability of Licensor; Disclaimer of Liability. Licensee acknowledges and agrees that the liability of Licensor under this License shall be limited to its interest in the Space and any judgments rendered against Licensor shall be satisfied solely out of the proceeds of sale of its interest in the Space, including the license fees generated thereby, which are actually received by Licensor. Licensee understands and voluntarily accepts any risks associated with Licensee’s services or any use of the Space or Building. Except where prohibited by law, Licensee agrees that Licensor and all of their affiliates and subsidiaries and their respective successors, assignees, officers, directors, owners, employees, agents and representatives will not be liable for any injury, including, without limitation, personal, bodily, or mental injury, economic loss, or any damage resulting from negligence, acts of God, acts of terrorism, and other acts of the Licensor, its employees, officers, managers, representatives, owners, partners, or affiliates. The Licensee expressly and specifically agrees to waive, and agrees not to make, any claim for damages, direct, indirect, punitive, special or consequential, including, but not limited to, lost business, revenue, profits or data, for any reason whatsoever arising out of or in connection with this License, any failure to furnish any service provided hereunder, any error or omission with respect thereto, from failure of any and all courier service to deliver on time or otherwise deliver any items (mail, packages, etc.), or any interruption of services. [Signatures on following page.] DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 Minnesota Jaime DeBoer 55318 9522405407 jaimedb28@gmail.com 737 7th St Chaska 364574 PAGE 10 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT IN WITNESS WHEREOF, the parties hereto have executed this License as of the dates written below. LICENSEE: LICENSOR: Northland Salons, LLC BY: BY: NAME: NAME: Rachel Kueppers TITLE: TITLE: Property Manager DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 Jaime DeBoer Massage therapist Jaime DeBoer 365575 PAGE 11 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT EXHIBIT A LICENSOR’S GENERAL RULES 1. Licensee shall at all times and in all manners conduct itself in a cooperative, cordial and professional manner and shall not do anything that shall disrupt the operations of Licensor or any of its other licensees. In addition, Licensee shall respond to all reasonable requests of Licensor related to the use and occupancy of the Space when Licensor, it its sole discretion, determines that the conduct of Licensee is in conflict with Licensor’s reasonable expectations concerning cooperation, professional conduct and compliance with these General Rules. 2. Licensee is strictly forbidden to bring his/her own children into the salon during the workday. Children of clients are permitted in the salon however they must be accompanied by an adult at all times. Client’s children must remain inside the suite during the client visit. 3. Any sidewalks, lobbies, passages, elevators and stairways shall not be obstructed or used by Licensee for any purpose other than ingress and egress from and to the Space. Licensor shall in all cases retain the right to control or prevent access by all persons whose presence, in the judgment of Licensor, shall be prejudicial to the safety, peace or character of the Space. 4. The bathrooms, toilets, urinals, sinks, faucets, plumbing or other service apparatus of any kind shall not be used for any purposes other than those for which they were installed, and no sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed therein or used in connection therewith or left in any lobbies, passages, or stairways. 5. Licensee shall not impair in any way the fire safety system and shall comply with all security, safety, fire protection and evacuation procedures and regulations established by Licensor or any governmental agency. 6. Windows, doors and transoms shall not be covered or obstructed by Licensee, and Licensee shall not install any window covering which would affect the exterior appearance of the Space, except as approved in writing by Licensor. If curtains are used to cover the suite door, the curtains must be neutral in color and approved by Licensor. Licensee shall not remove, without Licensor’s prior written consent, any shades, blinds or curtains in the Space. 7. Licensee shall not paint walls, flooring or suite furnishings. Licensee shall not hang, install, mount, suspend or attach anything from or to any sprinkler, plumbing, utility or other lines. If Licensee paints, hangs, installs, mounts, suspends or attaches anything from or to any doors, windows, walls, floors or ceilings, Licensor will repair using Licensee’s Retainer. Licensee shall not make repairs to the suite. The Licensor will repair any damage at the Licensee’s expense caused thereby or by the removal thereof at or prior to the expiration or termination of the License. 8. Licensee shall not change any locks nor place additional locks upon any doors. 9. Licensee shall not use nor keep in the Building any matter having an offensive odor, nor explosive or highly flammable material, nor shall any animals other than service animals as defined by the Minnesota Human Rights Act or ADA in the company of their masters be brought into or kept in or about the Property. 10. Licensee shall have the right, at Licensee’s sole risk and responsibility, to use only the common parking spaces located on the property as reasonably determined by the Building owner. Licensee shall comply with all parking regulations promulgated by the Building owner from time to time for the orderly use of the vehicle parking. Employee and Licensee vehicles shall not be parked in spaces marked for visitor parking or other specific use. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 366576 PAGE 12 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 11. Licensee and its guests shall not smoke in the Building or at the building entrances and exits. 12. Licensee shall provide Licensor with a written identification of any vendors engaged by Licensee to perform services for Licensee at the Space (examples: telecommunications installers/maintenance), and all vendors shall be subject to Licensor’s reasonable approval. Licensee assumes all responsibility for protecting its Space from theft and vandalism and Licensee shall see each day before leaving the Space that all lights are turned off and that the windows and the doors are closed and securely locked. 13. Licensee shall comply with any move-in/move-out rules provided by Licensor and with any rules provided by Licensor governing access to the Building outside of Normal Business Hours. Throughout the Term, no furniture, packages, equipment, supplies or merchandise of Licensee will be received in the Building, or carried up or down in the elevators or stairways, except during such hours as shall be designated by Licensor, and Licensor in all cases shall also have the exclusive right to prescribe the method and manner in which the same shall be brought in or taken out of the Building. 14. Licensee shall cause all of Licensee’s guests, customers and invitees to comply with these General Rules. 15. Licensor reserves the right to rescind, suspend or modify any rules or regulations and to make such other rules and regulations as, in Licensor’s reasonable judgment, may from time to time be needed for the safety, care, maintenance, operation and cleanliness of the Space. Notice of any action by Licensor referred to in this section, given to Licensee, shall have the same force and effect as if originally made a part of the foregoing License. 16. These General Rules are not intended to give Licensee any rights or claims in the event that Licensor does not enforce any of them against any other Building occupants or if Licensor does not have the right to enforce them against any other occupants and such non-enforcement will not constitute a waiver as to Licensee. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 367577 PAGE 13 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ADDENDUM ONE (1) This addendum and items contained herewith shall be in full compliance and accord with License agreement as outlined above. The following provisional Items are also included: DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 Licensee will receive the following Move-In Specials: - Free chandelier installation - Free accent wall painting - One hour of free handyman work - One week of License Fees free - Discount of $40/wk for the first Term - Discount of $20/wk for the second Term Licensee is responsible for the Massage Therapy Business Licensing requirements through the City of Chanhassen. Upon the approval of the Massage Therapy Business License, Licensee will be given access to the Space once the following are completed: - Copy of Driver's License of Massage Therapists operating within the Space provided to Licensor - Copy of Massage Therapy Business License provided to Licensor - Copy of Certificate of Liability Insurance provided to Licensor - Copy of Articles of Organization of MN Business provided to Licensor - Completed ACH Authorization Form - Remaining Retainer paid in full ($430.00) 368578 City Council Item July 17, 2023 Item Approve a Massage Therapy Business License for Meraki Massage & Wellness located at 8951 Crossroads Boulevard, Suite 205 (My Salon Suites) File No.Item No: D.8 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, Sr. Admin Support Specialist Reviewed By Laurie Hokkanen SUGGESTED ACTION “The Chanhassen City Council approves a Massage Therapy Business License for Meraki Massage & Wellness located at 8951 Crossroads Boulevard, Suite 205 (My Salon Suites)” Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND On November 25, 2013 the City Council approved Ordinance No. 584 amending Chapter 10 of the Chanhassen City Code concerning Massage Therapy Business Licensing. The approval of this ordinance required all businesses offering massage therapy, with the exception of chiropractor offices and home occupations, to obtain a license from the City of Chanhassen. The license application includes a $50 license fee and $250 background check fee. The background check is conducted by the Carver County Sheriff’s Office and examines the following: Subject(s): Owner(s) and General Manager(s). Owner must disclose all businesses owned currently and in the past 7 years. 369 Once licensed, business owners are responsible for the following: Maintaining the full name, date of birth, and address of each employee. Truthfully represent their business operations. A license is subject to revocation or suspension. A license holder may be summoned for an administrative hearing for the following reasons: Content of advertising that calls into question the nature of the business. Suspension or revocation of a license in another city. DISCUSSION Heather Creighton submitted a Massage Therapy Business License application for Meraki Massage & Wellness LLC on July 5, 2023. Ashley Ullevig, Background Investigator for the Carver County Sheriff’s Office conducted a full background check. The background check produced no unfavorable information on Ms. Creighton. BUDGET N/A RECOMMENDATION Staff recommends that the Chanhassen City Council approve a Massage Therapy Business License for for Meraki Massage & Wellness LLC located at 8951 Crossroads Boulevard, Suite 205 (My Salon Suite). ATTACHMENTS Meraki Massage & Wellness LLC Massage Application 07-05-2023 Property Report Card Lease Agreement with My Salon Suite 370 ctwoF Massage Therapy Business License Application _ of _ Each rcprcsenta by such petson; ve of the business shall complete this application. lf the owner is an individual, torm must be compteted if a coryoration, by an officer; if a paftnership, by one of the general paftners; if an unincoryorated association, by the manager or managing offtcer. Each person seving as a genenl manager for the busrness sha// a/so complete an application. Section 1: Applicant lnformation Full Name:*cA+,) Fu Middle C DOB Last First a +NE[s LLLiBusiness Name MNI 6too4* (AStL"msvaods $tMF20 L)0,lnrt nhuvn WlYl EfrPfr?t1 Slreet U-J dit- Business Address enone: tQ1L y Fax: ( ) ulL-qo7-2- City Alternate Phone: (_) Email:o Street State zip .C0fY' Please list any massage businesses owned/operated or Business Name Lrf c lrytt',, this individual in the past seven (7) years: Address: zDl,-f TO tt$knftYears ol#ncdlope€tld: (circte oneYlvt\yltyd City: City: City: tl ovFrom Month Year Month Please list any cunent massage business licenses held in the State of Minnesota: Yeat Elrrsiru|ss Name: Business Name: Business Name: r Please list any criminal convictions you have Iunt, ,tI GHANHASSEN Residence Address: 371 City of Chanhassen Please provide three character witnesses currently living in the State of Minnesota: Massage Therapy Business License Application Page 2 Full Name:VT Jwliu Lasl Flrst Full Middle Residence Addressi D wld 3eI Street atv State zip enonu,149L1 lr43 - 5 9L Alternate Phone: (-) Full Name First Fu Middle l]31t Stroet City State zip Phone ,-401t -qLLt0 Alternate Phone: (_) Full Name:L* Ftst Fu Middlo ResidenceAddres.,,S0l Ffrvrrrruud Pl W VYlrhmruotu YI\n 55\1 Str6et bwl Alternate Phone: (_) State zip pnone: tLlLl Lbt -,giD I Section 2: Property Owner Name of Property Owner:Nor,t tqnd LLL Contact:avh naaress, 1132"1 WOst t<a \\awi$g11ans1vz lhryrnatrulu trllfl EqqlD Streel ahv Slale Zp Ptrone: (@)1tt'1'Vhtfi Alternate nnone: 1 Ld l I gb'qv31 Fax: (_)k Email:tt V c LA I have familiarized myself with the CFlanF,assen Clty Code Chaofer 70 (Massaoe Business Licensino) and subsequent ordinance amendments pertaining thereto, and will abide by the provisions contained therein. I declare that the information I have provided on this applicetion is truthful and I understand that fralsmcation of answers on this application will result in denial of the application. I authorize the Carver County SherifFs Office to investigate and make whatever inquiries are necessary to verify the information provided. u -L4-?3 Applicant's printed name s sign Date FEE: $300 ($50 application fee plus $250 for background check). Make check payable to City of Chanhassen Residence Address: I Notice 372 Notice Pursuant to Laws of Minnesota, L984, Chapter 502, Article 8, Section 1270.72l.( Tax Clearance; lssuance of Licenses), the licensing authority is required to provide to the Minnesota Commissioner of Revenue your Minnesota business tax identification number and the social security number of each license applicant. Under the Minnesota Government Data Practices Act and the Federal Privacy Act of L974,we are required to advise you of the following regard the use of this information: L. This information may be used to deny the issuance or renewal of your license in the event you owe Minnesota sales, employer's wathholding or motor vehicle excise taxes; 2. Upon receiving this information, the licensing authority will supply it only to the Minnesota Department of Revenue. However, under the Federal Exchange of lnformation Agreement the Department of Revenue may supply this information to the lnternal Revenue Service; 3. FAILURE TO SUPPLY THIS INFORMATION MAY JEOPARDIZE OR DELAY THE PROCESSING OF YOUR LICENSE ISSUANCE OR RENEWAL APPLICATION. Please supply the following information and return it along with your application to the licensing authority. c Middle lnitialFirst Name rftn Applicant's Last Name City, State, Zip CodeApplicant's 7A dress Position (officer, partner, etc)Applicant's Social Secu ri o.l q13- l-l -D(Bi Y[twnr<i Wwtw* !$r]tn+ss LtL Business Name ZlE t (;vosqyrlartr Blvd *LW Chffrt/utrsrfi [4t..) 6ffit--l Business Address City, State, Zip CodeI Minnesota Tax ldentification Number ?qo +5 30 qT- LtLgvbv Federal Tax ldentifi cation Number Signature Date 373 Property Card Taxpayer Information Property Address Parcel Information Building Information Miscellaneous Information Assessor Information Ta xp ayer N ameNORTHLAND SALONS CHAN OWNER, LLC Mailin g Address 4324 W LAKE HARRIET PKWY 2 MINNEAPOLIS, MN 55410- Parcel ID Number 25248 0021 Address 8951 CRO SSR OADS BLVD City CHANHASSEN, MN 55317 Uses Comme rcial AcresPlatLotBlock 0.5 4 Legal Description That part of Lot 2, Block 1, CROSSROADS OF CHANHASSEN, according to the recorded plat thereof, Bu ilding Style Year Built Garag e Ab ove G radeFinished Sq Ft To tal Bed ro oms Scho ol District Watershed District Homestead Green Acre s Ag Preserve0112WS 0 64 RIL EY PURG BLU FF N N Estimated Market Value Land Bu ilding To tal 2022 Value s(Paya ble 2023 )2023 Value s(Paya ble 2024 )Last Sale Date of Sale Sa le Va lue $450,000 .00 $0.00 $450,000 .00 $348,500 .00 $1,124,800.00 $1,473,300.00 11/1 8/2 021 $330,652 .00 The data provided herewith is for reference purposes only. This data is not suitable for legal, engineering, surveying or other similar purposes. Carver County does not guarantee the accuracy of theinformation contained herein. This data is furnished on an ‘as is’ basis and Carver County makes no representations or warranties, either expressed or implied, for the merchantability or fitness of theinformation provided for any purpose. This disclaimer is provided pursuant to Minnesota Statutes §466.03 and the user of the dataprovided herein acknowledges that Carver County shall not be liable for any damages, and by using this data in any way expressly waives all claims, and agrees to defend, indemnify, and holdharmless Carver County, its officials, officers, agents, employees, etc. from any and all claims brought by anyone who uses the information provided for herein, its employees or agents, orthird parties which arise out of user's access. By acceptance of this data, the user agrees not to transmit this data or provide access to it or any part of it to another party unless the user includeswith the data a copy of this disclaimer. Monday, July 3, 2023 Carver Co unty, MN374 Northland Salons, LLC. D B A M Y S A L O N S U I T E® LICENSE AGREEMENT DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 375 PAGE 2 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT BASIC LICENSE PROVISIONS 1. DATE OF LICENSE AGREEMENT: 2. LICENSOR: Northland Salons, LLC DBA: MY SALON Suite 3. MANAGER: Northland Management Group, LLC 4. ADDRESS OF LICENSOR: Northland Salons, LLC. C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 Phone: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com 5. ADDRESS OF SPACE: 8951 Crossroads Blvd Chanhasssen, MN 55317 Salon Suite Number: ___ 6. LICENSEE’S NAME: 7. LICENSEE’S ADDRESS: TELEPHONE: EMAIL: 8. OCCUPANCY DATE: 9. TERM: (See Paragraph 2.1.) Unless sooner terminated as hereinafter provided, the initial term of this License shall be on or before (1) year beginning on the first day of the month following the Occupancy Date and will automatically renew on a (1) year basis thereafter unless Licensee provides Licensor with sixty (60) days advance written notice of Licensee’s intent not to renew the License. 10. WEEKLY LICENSE FEE: (See Paragraph 3.1) $ per week due each Monday during the Term. 11. MOVE-IN SPECIAL: (See Paragraph 3.1.1) $ per week for the first __ of the initial Term. 12. RETAINER: (See Paragraph 3.4) Licensee shall deposit with Licensor a retainer equal to two (2) weeks License Fee in the amount of $ . 13. USE OF LICENSED SPACE: (See Paragraph 4.) Licensee shall use the Licensed Space as a general beauty and spa complex and shall not use the Space for any other purpose without the prior written consent of Licensor, which consent may be granted or withheld in Licensor’s sole discretion. In the event of any conflict between the Basic License Provisions and the balance of this License, the latter shall control. Each of the terms contained in the Provisions shall be construed in conjunction with the remainder of this License, in particular, the referenced portions thereof. DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F Henderson (952) 292-5032 32376 Scenic Byway Rd 550.00 Heather Creighton 52 weeks 7/7/2023 2023-08-28 205 265.00 hjc2208@gmail.com 56044 275.00 Minnesota 376 PAGE 3 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSE AGREEMENT This License Agreement (“License”) dated the ____ ______(“Date”) is entered into by and between Northland Salons, LLC DBA: My Salon Suite ("Licensor"), and ("Licensee"). For good and valuable consideration, including the promises of the parties, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 1. Licensed Space: 1.1 Space. In consideration of the License Fees herein provided, and the terms, provisions and covenants hereof, Licensor hereby licenses to Licensee, and Licensee hereby licenses from Licensor, a salon suite known or to be known by the salon suite number specified in Item 4 of the Basic License Provisions (the “Space”) in the building known as My Salon Suite located at 8951 Crossroads Blvd, Chanhassen, MN 55317(the “Building”). Any reference to the term “Building” shall include the salon building, the land, and the common areas, unless the context requires otherwise. The License of the Space entitles Licensee to the non-exclusive right to use the common areas and parking lot, subject to the rights and considerations of other Licensees. This License constitutes a revocable license agreement between Licensee and Licensor. Licensee agrees that this License creates no tenancy, leasehold estate or any other property interest. Licensee hereby acknowledges and agrees that this License is subordinate to the terms of the lease agreement between the Licensor and its landlord. 2. Term: 2.1 Term. Unless sooner terminated as hereinafter provided, the term of this License shall be for (1) year beginning the first day of the month following (the "Occupancy Date") and unless renewed shall terminate upon expiration of this Term. 2.2 Renewal. Provided Licensee has never been in default hereunder, this License will automatically renew following the Initial Term for up to a maximum of three additional terms of (1) year each, (a “Renewal Term”) unless Licensee gives written notice to Licensor at least sixty (60) days prior to the end of the Initial Term or any Renewal Term that it will not renew the License, time being of the essence. Upon renewal, this License shall be extended upon the terms, covenants and conditions as provided in this License. 2.3 Renewal Option. In the event either the Licensor or the Licensee desires not to renew the License as provided for herein in Paragraph 2.2., then the deciding party shall give the other party written notice of its intention to not renew the License not later than sixty (60) days prior to the end of the then current Term, time being of the essence. 3. License Fee: 3.1 Weekly License Fee. Licensee shall pay Licensor $ in equal weekly installments payable upon the first Monday following the Occupancy Date, or the date that the Licensee occupies the Space, whichever is sooner, and is due at by no later than Noon on each Monday thereafter. If the Occupancy Date is not on a Monday, then the Weekly License Fee shall be pro-rated for the first week. The License Fee may increase a maximum of fifteen percent (15%) per year for each Renewal Term with Licensor giving Licensee notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term. If Licensor fails to give such notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term, then the increase shall automatically be deemed to be DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 7/7/2023 2023-08-28 275.00 Heather Creighton 377 PAGE 4 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ten percent (10%). 3.1.1 Move-In Special. For promotional consideration, the Weekly License Fee shall be in the amount of $ ____ per week for the first __ of the initial Term of this License (the “Move-In Special”). If the Occupancy Date is not on a Monday, then the Move-In Special shall be pro-rated for the first week. 3.1.2 Payments. All payments shall be made to Northland Salons, LLC via ACH through QuickBooks Online (QBO). 3.2 Service Charge. If any installment of the Weekly License Fee or other amount which Licensee is obligated to pay under the terms of this License is not paid within five (5) days after it’s due date, said amount shall be subject to a penalty of ten percent (10%) of the amount due plus a service charge of one and one-half percent (1.5%), or such lesser percentage as may be the maximum permitted by law, for each month or fraction thereof until the Weekly License Fee is paid. 3.3 Insufficient Funds. Licensee agrees to pay the charge of $20.00 for each check or other payment provided by Licensee to Licensor that is returned to Licensor for lack of sufficient funds. 3.4 Retainer. Licensee, contemporaneously with the execution of this License, shall deposit with Licensor a Retainer equal to two (2) weeks Weekly License Fee in the amount of $ ___ . In the event that Licensee shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this License, the Retainer shall be returned to Licensee within thirty (30) days after the end of the License and after delivery of entire possession of the Space to Licensor in good condition, reasonable wear and tear accepted. It is understood and agreed that Licensor shall inspect the Space and has the right to make such repairs to the Space as deemed reasonably necessary, and deduct such repair costs from the Retainer. 4. Use of Licensed Space: 4.1 Use. The Space shall be used by Licensee as a general beauty and salon complex, to include massage services and shall not be used for any other purpose without the prior written consent of the Licensor. 4.2 Services Provided by Licensor. Licensor will provide basic janitorial services of common areas and restroom facilities, plus electricity, heating, cooling, water, sewage, HVAC service maintenance, security system and Wi-Fi for Licensee and Licensee's guests. 4.2.1 The Suite consists of the following items (the “Suite Equipment”): _____ Salon Suite: Salon Suite: Double-sided styling station with full-length mirror, hydraulic styling chair, state-of-the-art adjustable shampoo bowl and shampoo chair with storage cabinet, private color bar with sink and lower cabinet storage, upper cabinet with color tube dividers, cushion flooring, granite countertops, and a private lockable entrance. _____ Spa Suite: Upper and lower cabinet storage with sink, adjustable massage bed with storage, cushion flooring, granite countertops, and a private lockable entrance. DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 52 weeks X 265.00 550.00 378 PAGE 5 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 4.3 Licensee Obligations. Licensor makes no representation regarding the condition of the Space and Licensee accepts the Space in its “As Is” condition. Licensee agrees to at all times keep and maintain the Space in a clean and professional condition. Licensee, at Licensee’s own expense, shall promptly repair any damage to the Space Equipment caused by any act or omission of Licensee or any agent, employee, customer, guest or invitee of Licensee. Licensee shall not bring in any furniture, fixtures and or appliances into their Space without prior written approval by the Licensor. Appliances, such as refrigerators and microwaves shall be either black or stainless steel. At the end of License, Licensee agrees to return the Space and Space Equipment in as good condition as at the beginning of the term of this License with some reasonable ordinary wear and tear accepted. 4.4 Licenses. Licensee shall possess and legally maintain at all times during its occupancy of the Space ANY LICENSING requirements to own and operate a cosmetology business in the State of Minnesota. Licensee bears full responsibility of knowledge and education of said licensing requirements. 4.5 Conduct. Licensee shall not use the Space in any manner constituting a violation of any ordinance, statute, regulation or order of any governmental authority or applicable state and/or federal laws or in violation of Licensor’s general rules (Exhibit A). Licensee shall use the Space in a safe, careful, proper and lawful manner and shall keep and maintain the Space in as good a condition as when Licensee first took possession thereof, and Licensee shall not commit, or allow being committed, any act of waste in, on or about the Space or the Building. Licensee shall not create, maintain or permit any nuisance in the Space or the Building, or permit any objectionable or offensive noise or odors to be emitted from the Space. If Licensee uses the Space in any manner which would invalidate any policy of insurance now or hereafter carried on the Building or increase the rate of premiums payable on any such insurance policy, Licensor may, at its option, require Licensee to discontinue such use or to reimburse Licensor as additional License Fee for any increase in premiums attributable to the use being made by Licensee. 4.6 Surrender. Any personal property or trade fixtures not removed within fifteen (15) days following the expiration or termination of the License may be removed and disposed of by Licensor without incurring any liability to Licensee. 5. Building Services: 5.1 Interruption of Services. Licensor does not represent or warrant the uninterrupted availability of utilities or Building services, which may be discontinued or temporarily diminished by reason of accident, emergency or unforeseeable act of God or other causes beyond Licensor’s control. Any such interruption shall not render Licensor liable to Licensee. 5.2 Repairs, Maintenance. Licensor shall be responsible for the repair and maintenance of the Building and those systems which are a part of the common building improvements, the cost of which shall be borne by Licensor unless made necessary by the negligence, misuse or default of Licensee, its employees, agents, customers or invitees, in which event Licensee shall reimburse Licensor for same. 5.3 Signage. Licensor will exclusively provide all signage. Licensee shall not apply any signs, decals, or covering of any kind to exterior windows or interior glass without prior written permission from the Licensor. 5.4 Fire and Other Casualty. If the Space is damaged or destroyed such that the Space is rendered unusable for a period of at least 60 days, Licensor has the option to terminate this License. If the DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 379 PAGE 6 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT License is not terminated, Licensor shall repair or restore the Space, and License Fee shall be abated in proportion to the damaged area until the Space are restored. In no event shall Licensor be required to repair or replace Licensee’s inventory, fixtures, furnishings, equipment or improvements located in or installed on the Space. 6. Indemnification, Insurance: 6.1 Indemnification. Licensee shall indemnify and hold harmless Licensor and its agents, successors and assigns from and against all expense, injury, loss, claims or damage, including attorney’s fees and disbursements, to any person or property arising from, related to, or in connection with, Licensee’s use, occupancy, construction or repair of the Space, except injury, loss, claims or damage caused solely by the gross negligence or willful misconduct of Licensor. All property of Licensee and Licensee’s employees or guests in the Space shall be kept and stored at Licensee’s sole risk and Licensee shall hold Licensor harmless from any claims arising out of damage to such property. 6.2 Licensee Insurance. Licensee, at its own expense, shall maintain during the term of this License a policy for comprehensive general liability insurance, including personal injury and property damage, with contractual liability endorsement, in the amount of $500,000 for property damage and $500,000 per occurrence and $1,000,000 in the aggregate for personal injuries or deaths of persons occurring in or about the Space. Licensee, at its own expense, shall also maintain during the term of the License fire and extended coverage insurance covering the replacement cost of (i) all alterations, additions, partitions and improvements installed or placed on the Space by Licensee or by Licensor at the request of Licensee, (ii) all of Licensee’s personal property contained within the Space. Said policies shall (i) name the Licensor (Northland Salons, LLC) as an additional insured and insure Licensor’s contingent liability under or in connection with this License (except for the worker’s compensation policy, which instead shall include a waiver of subrogation endorsement in favor of Licensor), (ii) be issued by an insurance company which is acceptable to Licensor, and (iii) provide that said insurance shall not be cancelled unless thirty (30) days prior written notice has been given to Licensor. Said policy or policies or certificates thereof shall be delivered to Licensor by Licensee on or before the Occupancy Date and upon each renewal of said insurance. 7. Defaults and Remedies: 7.1 Defaults - Remedies By Licensee. 7.1.1 It shall be an Event of Default: (i) If Licensee does not pay in full when due any and all License Fee and, except as provided in subparagraph 7.1.3. below, Licensee fails to cure such default on or before the date that is 5 days after Licensor gives Licensee notice of default; (ii) If Licensee enters into or permits any Assignment or Subletting in violation of Paragraph 8.6 below; (iii) If Licensee fails to observe and perform or otherwise breaches any other provision of this License, and, except as provided in subparagraph 7.1.3 below, Licensee fails to cure the default on or before the date that is 7 days after Licensor gives Licensee notice of default. DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 380 PAGE 7 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT (iv) If Licensee becomes insolvent or makes a general assignment for the benefit of creditors or offers a settlement to creditors, or if a petition in bankruptcy or for reorganization or for an arrangement with creditors under any federal or state law is filed by or against Licensee, or a bill in equity or other proceeding for the appointment of a receiver for any of Licensee’s assets is commenced, or if any of the real or personal property of Licensee shall be levied upon; provided that any proceeding brought by anyone other than Licensor or Licensee under any bankruptcy, insolvency, receivership or similar law shall not constitute an Event of Default until such proceeding has continued unstayed for more than 30 consecutive days; or (v) If Licensee fails to observe and perform or otherwise breaches any provision of the general rules (Exhibit A) of Licensor, and such failure or breach continues after notice or is repeated within a 60 day period of time. 7.1.2 If an Event of Default occurs, Licensor shall have the following rights and remedies: (i) Licensor, without any obligation to do so, may elect to cure the default on behalf of Licensee, in which event Licensee shall reimburse Licensor upon demand for any sums paid or costs incurred by Licensor (together with an administrative fee of 15% thereof) in curing the default, plus interest at the rate at the prime rate published in the Wall Street Journal plus 5% (the “Interest Rate”) from the respective dates of Licensor’s incurring such costs, which sums and costs together with interest at the Interest Rate shall be deemed additional License Fee; (ii) To enter and repossess the Space, by opening locked doors if necessary, and removing all persons and all or any property, by action at law or otherwise, without being liable for prosecution or damages. Licensor may, at Licensor’s option, make Alterations and repairs in order to license the Space and license all or any part(s) of the Space for Licensee’s account. Licensee agrees to pay to Licensor on demand any deficiency (taking into account all costs incurred by Licensor) that may arise by reason of such re-licensing. In the event of re-licensing without termination of this License, Licensor may at any time thereafter elect to terminate this License for such previous breach; (iii) To accelerate the whole or any part of the License Fee for the balance of the Term, and declare the same to be immediately due and payable; and (iv) To terminate this License and the Term without any right on the part of Licensee to save the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken. 7.1.3 Any provision to the contrary in this subparagraph 7.1.3 notwithstanding, Licensor shall not be required to give Licensee the notice and opportunity to cure provided in subparagraph 7.1.1 above more than twice in any consecutive 12-month period, and thereafter Licensor may declare an Event of Default without affording Licensee any of the notice and cure rights provided under this License. 7.1.4 No waiver by Licensor of any breach by Licensee shall be a waiver of any subsequent breach, nor shall any forbearance by Licensor to seek a remedy for any breach by Licensee be a waiver by Licensor of any rights and remedies with respect to such or any subsequent breach. Efforts by Licensor to mitigate the damages caused by Licensee’s default shall not constitute a waiver of Licensor’s right to recover damages hereunder. No DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 381 PAGE 8 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT right or remedy herein conferred upon or reserved to Licensor is intended to be exclusive of any other right or remedy provided herein or by law, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity. No payment by Licensee or receipt or acceptance by Licensor of a lesser amount than the total amount due Licensor under this License shall be deemed to be other than on account, nor shall any endorsement or statement on any check or payment be deemed an accord and satisfaction, and Licensor may accept such check or payment without prejudice to Licensor’s right to recover the balance of License Fee due, or Licensor’s right to pursue any other available remedy. 7.1.5 If Licensor commences an action against the other party arising out of or in connection with this License, the Licensor shall be entitled to have and recover from the other party reasonable attorneys’ fees, costs of suit, investigation expenses and discovery costs, including costs of appeal. 7.2 Default by Licensor Under Lease for Entire My Salon Suite. Licensor is a lessee of the entire Suite ("Licensor's Lease"). Pursuant to the provisions of Licensor's Lease, if Licensor defaults under Licensor's Lease, and if Licensor fails to cure such default within the time periods set forth in Licensor's Lease, if any, then the lessor thereunder, at its option, has the right to exercise any one or more of several remedies including termination of Licensor's Lease and re-letting the entire Suite to another lessee. In such a case, this License may terminate without prior notice. 8. Miscellaneous General Provisions: 8.1 Access to the Space. Licensor, its employees, and agents, shall have the right to enter the Space at all reasonable times for any purpose, including examining or inspecting same, showing the same to prospective licensees, and for making such repairs, alterations or improvements to the Space or to the building as Licensor may deem necessary or desirable. 8.2 Eminent Domain. If all or a substantial part of the Space is taken by right of eminent domain, this License shall terminate as of the date Licensor is entitled to all compensation awarded for the taking and Licensee shall have no claim against Licensor for the value of the unexpired term of the License. However, Licensee shall have the right to recover from the taking authority, but not from Licensor, such compensations may be awarded to Licensee on account of moving and relocation expenses and depreciation to and removal of Licensee’s trade fixtures and personal property. 8.3 Notices. Any notice required or permitted to be given under this License shall be deemed to have been given or served when made in writing and delivered in person or mailed by registered or certified mail, postage prepaid, to the party who is to receive such notice at the address specified in this License. When so mailed, the notice shall be deemed to have been given as of the date it was mailed. The addresses for notices and payments may be changed by written notice given to the other party. 8.3.1 Address for Notices. A party’s address shall be as follows or as set forth in a notice to the other party: LICENSOR: Northland Salons, LLC C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 TELEPHONE: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 382 PAGE 9 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSEE: NAME: ADDRESS: CITY, STATE, ZIP: TELEPHONE: E-MAIL: 8.4 Governing Law and Venue. This License is being executed and delivered in the State of Minnesota and shall be construed and enforced in accordance with the State courts of Minnesota in Hennepin County. Before Licensee may commence litigation against Licensor, Licensee’s dispute must first be mediated. Mediation shall occur within 45 days of Licensee providing written notice of Licensee’s claim to Licensor, with Licensee’s claims and factual support therein identified. 8.5 Complete Agreement; Amendments; Headings. This License, including all Exhibits and Addenda, constitutes the entire agreement between the parties. It supersedes all previous understandings and agreements between the parties, and no oral or implied representation or understanding shall vary its terms. It may not be amended except by a written instrument executed by both parties. The topical headings in this License are inserted only as a matter of convenience and reference, and do not affect, define, limit or describe the scope or intent of this License. 8.6 Assignment and Subletting. Licensee shall not have the right to assign the License without the written consent of Licensor, which consent may be in the sole discretion of Licensor. Notwithstanding any assignment, however, the Licensee shall remain primarily liable under the License. Any assignment or sublicense without Licensor’s prior written consent shall at the Licensor’s option be a termination of this License. 8.7 Liability of Licensor; Disclaimer of Liability. Licensee acknowledges and agrees that the liability of Licensor under this License shall be limited to its interest in the Space and any judgments rendered against Licensor shall be satisfied solely out of the proceeds of sale of its interest in the Space, including the license fees generated thereby, which are actually received by Licensor. Licensee understands and voluntarily accepts any risks associated with Licensee’s services or any use of the Space or Building. Except where prohibited by law, Licensee agrees that Licensor and all of their affiliates and subsidiaries and their respective successors, assignees, officers, directors, owners, employees, agents and representatives will not be liable for any injury, including, without limitation, personal, bodily, or mental injury, economic loss, or any damage resulting from negligence, acts of God, acts of terrorism, and other acts of the Licensor, its employees, officers, managers, representatives, owners, partners, or affiliates. The Licensee expressly and specifically agrees to waive, and agrees not to make, any claim for damages, direct, indirect, punitive, special or consequential, including, but not limited to, lost business, revenue, profits or data, for any reason whatsoever arising out of or in connection with this License, any failure to furnish any service provided hereunder, any error or omission with respect thereto, from failure of any and all courier service to deliver on time or otherwise deliver any items (mail, packages, etc.), or any interruption of services. [Signatures on following page.] DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F Minnesota (952) 292-5032 hjc2208@gmail.com 32376 Scenic Byway Rd 56044 Heather Creighton Henderson 383 PAGE 10 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT IN WITNESS WHEREOF, the parties hereto have executed this License as of the dates written below. LICENSEE: LICENSOR: Northland Salons, LLC BY: BY: NAME: NAME: Rachel Kueppers TITLE: TITLE: Property Manager DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F Heather Creighton Heather Creighton Massage Therapist 384 PAGE 11 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT EXHIBIT A LICENSOR’S GENERAL RULES 1. Licensee shall at all times and in all manners conduct itself in a cooperative, cordial and professional manner and shall not do anything that shall disrupt the operations of Licensor or any of its other licensees. In addition, Licensee shall respond to all reasonable requests of Licensor related to the use and occupancy of the Space when Licensor, it its sole discretion, determines that the conduct of Licensee is in conflict with Licensor’s reasonable expectations concerning cooperation, professional conduct and compliance with these General Rules. 2. Licensee is strictly forbidden to bring his/her own children into the salon during the workday. Children of clients are permitted in the salon however they must be accompanied by an adult at all times. Client’s children must remain inside the suite during the client visit. 3. Any sidewalks, lobbies, passages, elevators and stairways shall not be obstructed or used by Licensee for any purpose other than ingress and egress from and to the Space. Licensor shall in all cases retain the right to control or prevent access by all persons whose presence, in the judgment of Licensor, shall be prejudicial to the safety, peace or character of the Space. 4. The bathrooms, toilets, urinals, sinks, faucets, plumbing or other service apparatus of any kind shall not be used for any purposes other than those for which they were installed, and no sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed therein or used in connection therewith or left in any lobbies, passages, or stairways. 5. Licensee shall not impair in any way the fire safety system and shall comply with all security, safety, fire protection and evacuation procedures and regulations established by Licensor or any governmental agency. 6. Windows, doors and transoms shall not be covered or obstructed by Licensee, and Licensee shall not install any window covering which would affect the exterior appearance of the Space, except as approved in writing by Licensor. If curtains are used to cover the suite door, the curtains must be neutral in color and approved by Licensor. Licensee shall not remove, without Licensor’s prior written consent, any shades, blinds or curtains in the Space. 7. Licensee shall not paint walls, flooring or suite furnishings. Licensee shall not hang, install, mount, suspend or attach anything from or to any sprinkler, plumbing, utility or other lines. If Licensee paints, hangs, installs, mounts, suspends or attaches anything from or to any doors, windows, walls, floors or ceilings, Licensor will repair using Licensee’s Retainer. Licensee shall not make repairs to the suite. The Licensor will repair any damage at the Licensee’s expense caused thereby or by the removal thereof at or prior to the expiration or termination of the License. 8. Licensee shall not change any locks nor place additional locks upon any doors. 9. Licensee shall not use nor keep in the Building any matter having an offensive odor, nor explosive or highly flammable material, nor shall any animals other than service animals as defined by the Minnesota Human Rights Act or ADA in the company of their masters be brought into or kept in or about the Property. 10. Licensee shall have the right, at Licensee’s sole risk and responsibility, to use only the common parking spaces located on the property as reasonably determined by the Building owner. Licensee shall comply with all parking regulations promulgated by the Building owner from time to time for the orderly use of the vehicle parking. Employee and Licensee vehicles shall not be parked in spaces marked for visitor parking or other specific use. DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 385 PAGE 12 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 11. Licensee and its guests shall not smoke in the Building or at the building entrances and exits. 12. Licensee shall provide Licensor with a written identification of any vendors engaged by Licensee to perform services for Licensee at the Space (examples: telecommunications installers/maintenance), and all vendors shall be subject to Licensor’s reasonable approval. Licensee assumes all responsibility for protecting its Space from theft and vandalism and Licensee shall see each day before leaving the Space that all lights are turned off and that the windows and the doors are closed and securely locked. 13. Licensee shall comply with any move-in/move-out rules provided by Licensor and with any rules provided by Licensor governing access to the Building outside of Normal Business Hours. Throughout the Term, no furniture, packages, equipment, supplies or merchandise of Licensee will be received in the Building, or carried up or down in the elevators or stairways, except during such hours as shall be designated by Licensor, and Licensor in all cases shall also have the exclusive right to prescribe the method and manner in which the same shall be brought in or taken out of the Building. 14. Licensee shall cause all of Licensee’s guests, customers and invitees to comply with these General Rules. 15. Licensor reserves the right to rescind, suspend or modify any rules or regulations and to make such other rules and regulations as, in Licensor’s reasonable judgment, may from time to time be needed for the safety, care, maintenance, operation and cleanliness of the Space. Notice of any action by Licensor referred to in this section, given to Licensee, shall have the same force and effect as if originally made a part of the foregoing License. 16. These General Rules are not intended to give Licensee any rights or claims in the event that Licensor does not enforce any of them against any other Building occupants or if Licensor does not have the right to enforce them against any other occupants and such non-enforcement will not constitute a waiver as to Licensee. DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 386 PAGE 13 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ADDENDUM ONE (1) This addendum and items contained herewith shall be in full compliance and accord with License agreement as outlined above. The following provisional Items are also included: DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F Licensee will receive the following Move-In Specials: - Free chandelier installation - Free accent wall painting - One hour of free handyman work - One week of License Fees free - Discount of $10.00 per week for the first Term - Discount of $10.00 per week for the second Term - Weekly License Fee of $275.00 for the third Term Licensee is responsible for the Massage Therapy Business Licensing requirements through the City of Chanhassen. Upon the approval of the Massage Therapy Business License, Licensee will be given access to the Space once the following are completed: - Copy of Driver's License of Massage Therapists operating within the Space provided to Licensor - Copy of Massage Therapy Business License provided to Licensor - Copy of Certificate of Liability Insurance provided to Licensor - Copy of Articles of Organization of MN Business provided to Licensor - Completed ACH Authorization Form - Remaining Retainer paid in full ($350.00) Confidentiality. In consideration of Licensor's covenants and agreements hereunder, and except to the extent required by applicable laws, Licensee hereby covenants and agrees not to disclose any of the financial terms, covenants or conditions of this License to any other party without the prior written consent of Licensor. The terms of this section shall survive expiration or earlier termination of this License. 387 Community Guidelines YOU AND YOUR VISITORS WILL NOT: ●Leave children unattended on the property. ●Do anything to disturb your neighbor, including playing loud music. ●Allow anyone other than your own visitor into the building. ●Use the hallways as a waiting area. ●Keep any pets on the premises. ●Burn candles or have any open flame on the premises. ●Do anything that will violate any law. ●Permit any nuisance on the premises. ●Make any alterations, additions, or improvements in or to your suite or the building without permission. ●Allow any persons other than those set forth in the lease to occupy your suite. ●Smoke or vape in your suite, inside the premises, or near the entrance to the premises. YOU AND YOUR VISITORS WILL: ●Follow all State Board and Health Department guidelines for safety, sanitation, and disinfection procedures. ●Keep the area outside of your suite clean. ●Take good care of the property, including the common areas, bathrooms, suites, and equipment we supply. ●Follow our zero-tolerance policy on drugs and alcohol use or possession on the premises. ●Close your suite door if the noise in your suite is loud enough to carry into others. ●Remove garbage regularly from your suite and place in the black-lid dumpster. ●Remove recycling regularly from your suite and place in yellow-lid dumpster. ●Permit the landlord to enter the suite during reasonable hours to inspect or make necessary repairs. ●Schedule all maintenance work through the property manager. DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F 388 The Suite Elite community goes far beyond the walls of your suites; join us to make the whole world a little brighter by contributing $2.00 a week for a good cause. Suite Elite Members have raised over $250,000 offering grants to Suite Elite Members through the PBA Covid Relief Fund, PBA Natural Disaster Fund and supporting national foundations like St. Jude Children's Research Hospital. Thank you for your support. Please know your donation is tax deductible. ________ (Initials) __ Yes! I am excited to donate $2 a week to the Suite Relief Fund. Count me in! ___ I would like to change the donation amount from $2 a week to $______ a week. ___ No, I do not want to donate $2 a week to the Suite Relief Fund. DocuSign Envelope ID: 33135D4F-0646-4905-8AD8-BE52FD76619F X 389 City Council Item July 17, 2023 Item Approve Temporary On-Sale Intoxicating Liquor License for Hackamore Invitational Brew Fest Event, August 26, 2023, Hackamore Brewing Company File No.Item No: D.9 Agenda Section CONSENT AGENDA Prepared By Kim Meuwissen, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION “The Chanhassen City Council approves the request from Hackamore Brewing Company for a temporary on-sale intoxicating liquor license to sell alcoholic beverages at the Hackamore Invitational Brew Fest Event to be held on August 26, 2023 in the Hackamore Brewing Company parking lot located at 18651 Lake Drive East.” Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION Hackamore Brewing Company has submitted an application for a temporary on-sale intoxicating liquor license to sell beer at the Hackamore Invitational Brew Fest event scheduled for Saturday, August 26, 2023 in the Hackamore Brewing Company parking lot located at 18651 Lake Drive East. The applicant, Zac Gleason, has already applied for the required Special Event Permit from the city as well as an application for Temporary Expansion of Licensed Premises for a Special Event. 390 Mr. Gleason plans to invite several Minnesota breweries to bring their brews to share at this event. Per the Alcohol and Gambling Division of the Minnesota Department of Public Safety, Hackamore Brewing Company can hold this type of event by applying for a temporary on-sale intoxicating liquor license. BUDGET RECOMMENDATION Staff recommends City Council approve the Temporary On Sale Intoxicating Liquor License Application for the Hackamore Invitational Brew Fest event scheduled for August 26, 2023 in the Hackamore Brewing Company parking lot located at 19651 Lake Drive East. The applicant has provided the required certificate of liquor liability insurance to cover the event. ATTACHMENTS Temporary On-Sale Liquor License Application Certificate of Insurance dated 07-10-2023 Event Map 391 Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division 445 Minnesota Street, Suite 1600, St. Paul, MN 55101 651-201-7507 TTY 651-282-6555 APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON-SALE LIQUOR LICENSE Name of organization Date of organization Tax exempt number Organization Address (No PO Boxes)City State Zip Code Name of person making application Business phone Home phone Date(s) of event Club Charitable Religious Other non-profit Type of organization Organization officer's name City State Zip Code Organization officer's name City State Zip Code Organization officer's name City State Zip Code Location where permit will be used. If an outdoor area, describe. If the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage. City or County approving the license Date Approved Fee Amount Permit Date Signature City Clerk or County Official APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT City or County E-mail Address CLERKS NOTICE: Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event No Temp Applications faxed or mailed. Only emailed. ONE SUBMISSION PER EMAIL, APPLICATION ONLY. PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY/COUNTY AS ALL TEMPORARY PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL. E-MAIL THE APPLICATION SIGNED BY CITY/COUNTY TO AGE.TEMPORARYAPPLICATION@STATE.MN.US Microdistillery Small Brewer Please Print Name of City Clerk or County Official Event in conjunction with a community festival Yes No Current population of city 392 A^CORD HACKA.2 CERTIFICATE OF LIABILITY INSURANCE @ 1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD OATE (MH/DD/YYYY) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFOR}IATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE OOES NOT AFFIRMATIVELY OR NEGATIVELY A]$END, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTTFTCATE OF TNSURANCE DOES NOT CONSTTTUTE A CONTRACT BETWEEN THE |SSU|NG TNSURER(S), AUTHORTZEO REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: lf the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provlsions or be endorsed. r, Cincinnati lnsurance Co.10677 to the terms and conditions of the policy, certain icies may require an endorsement. A statement on .o. Avenue 55044 Chanhassen, MN 553't7 to the certificate holder in lieu HavlikPRODUCER lnsurance Josh If SUBROGATION IS WAIVED, this certificate does not confer NSRITR {DDLlNsn POLICY EFF THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF INSURANCE POLICY NUMAER A COMITERCIAL GENERAL LIABILITY cLATMS,MADE fx o""r* x LIMIT PER x LOCPRO. J ECT APPLIES I-__ ETD06s8673 07t01t2023 PERSONAL&ADVINJUEY $ - A AUToiilOBILE LIABILITY ANY AUTO OWNED AUTOS ONLY HIRED AUTOS ONLY SCHEDULED AUTOS NON-OWNED AUTOS ONLYxx ETD0658673 07t01t2023 0710112024 Boolly tNJURy (per rer$n) $ . qqDlLY INJUBY (Pgr erdentl $ PROPERW DAMAGE' (Per a@rdenu $ s xA uMaRELLALTAB X occun ExcESS uAB ] c.e,r,,rs.nanoe o.o I *.r.*** ETD0658673 07t01t2023 EAQH o,!)cuEBEl.lc--E _ AGGREGAIE07t01t2024 4,000,000 ._$ s B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETORYPARTNEREXECUTIVE i- OFFICERYMEMBER EXCLUDED? I Grindeioir-iii m'i - lf yes, describe DESCRIPTION under YIN N/A swc1429907 02t01t2023 02t01t2024 E,L. DISEASE - EA 500,000 A A Property Section Liquor Liability ETD0658673 ETD0658673 07to1t2023 07t01t2023 07t01t2024 07101t2024 BPP/TIB Liquor E75,000 1MI2M DESCRIPTIONOFOPERATONS/LOCATIONS/VEHICLES (ACORDl0l,Addition.lRem.rksSchodulo,mayboattschedltmoEspacsisrcquiBd) L?{iff lfiiflrITJ,?3fl"o n,, n ues u nri I ca nce I ]ed. rr covsraoe is ca ncet red. noh-renewed. bi if tha renewal is not oicked uo. notice will be oiven. Coveraqe is not location sDecific and'does exte'nd to oatios. oirkino lots. and ext-ends to off premisds ovents such as fairs andtestivils. City of Chanhassen Evenl:812612023 Hackamore lnvitational 7700 Market Blvd Chanhassen, MN 55317 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLEO BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESEI{TATIVE D@h,,".%t{iP/ ACORO 25 (2016/03) INSIIRFR F. !!! quEE!(sl4lEqEo!!8 .coyE RAg E LLG POLICY OTHFR- EACHOCCURRENCE $ 07 to1 t2024 g?gn8:1.,r:."u,1""; _1 _ x 393 I--a.-f--Ir,RD3C' P H5 ta\+-t-tao )! t d -(\ e T1s iIrA)-'xd" .D,jE rnIia ir o)FoE rrt I Ii f' i it-t)Fo0 rn iihb;,|I-f -J,i ii IItFlItrE:fEB r<F='$ fltoJ ,i 6(}oni =0) (D=+(o3r5:-a€dpfD '.tn o (D t: **1 J In L-! I I u t I I , !Ell I , r:@, ,j ,!",, 11 ti+StBfffiBrnEl4*srtiltFw* fll -, pu ileo 394 City Council Item July 17, 2023 Item Approve Proposal from HKGi to provide Design Services for the Site Improvements for Civic Campus File No.Item No: D.10 Agenda Section CONSENT AGENDA Prepared By Laurie Hokkanen, City Manager Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council approves the proposal from HKGI to provide design services for the Site Improvements for Civic Campus." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND HKGi has been involved with the Civic Campus design since the completion of the Facilities Study when the city entered into the Concept Planning phase. HKGi will be responsible for programming the schematic design of the site program, design development of the site program, and construction documents, and will be providing bidding support and construction observation. HKGi will work closely with BKV Group, the firm designing the City Hall and park building, and Krauss Anderson, the construction manager. DISCUSSION 395 BUDGET The proposal to complete the work is a lump sum fee of $368,000. These fees have been accounted for in the overall Civic Campus project costs and will be paid for with the proceeds of bonds to be issued for Civic Campus. RECOMMENDATION ATTACHMENTS HKGi Proposal Professional Services Agreement 396 397 • o o o o o o o o o • • • • • • • • • • • • • • • 398 • • • • • o o • o o o o o o o o o o o 399 400 227170v1 1 PROFESSIONAL SERVICES AGREEMENT AGREEMENT made this _______ day of ___________________, 2023, by and between the CITY OF CHANHASSSEN,a Minnesota municipal corporation ("City") and HOISINGTON KOEGLER GROUP, INC., a Minnesota corporation ("HKGi"). IN CONSIDERATION OF THEIR MUTUAL COVENANTS THE PARTIES AGREE AS FOLLOWS: 1.CONTRACT DOCUMENTS. The Contract consists of the following documents. In the event of conflict among the documents the conflict shall be resolved by the order in which they are listed with the document listed first having the first priority and the document listed last having the last priority: A.This Professional Services Agreement B.HKGi’s proposal Re Civic Campus Site Improvement dated June 16, 2023 (“Proposal”) 2.SCOPE OF SERVICES. The City retains HKGi to provide the professional services: described in the Contract Documents. 3.COMPENSATION. HKGi shall be paid by the City for a not to exceed fee in the amount of $368,000 in accordance with the Proposal. The lump sum fee in the Proposal is inclusive of all taxes, costs, permit fees, profit, overhead, expenses and compensation of every kind related to the work under the Contract Documents to be performed by HKGi, except for actual costs for travel and printing which are estimated at $7,500. The lump sum fee shall not be adjusted if the estimated hours to perform a task, the number of estimated required meetings or any other estimate or assumption is exceeded. The City will normally make payment within 35 days of receipt of a properly itemized invoice following completion of each of the five Tasks identified in the Proposal. 4.COMPLETION DATE. HKGi must complete the service specified in the Contract Documents on or beforeJuly 31, 2026. 5.CHANGE ORDERS. All change orders, regardless of amount, must be approved in advance and in writing by the City. No payment will be due or made for work done in advance of such approval. 6.DOCUMENTS. The City shall be the owner of all documents, reports, studies, analysis and the like prepared by HKGi in conjunction with this contract. 7.COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, HKGi shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. 8.STANDARD OF CARE. HKGi shall exercise the same degrees of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional 401 227170v1 2 HKGi under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of HKGi’s services. 9.INDEMNIFICATION. HKGi shall indemnify and hold harmless the City, its officers, agents, and employees, of and from any and all claims, demands, actions, causes of action, including costs and attorney's fees, to the extent they arise out of or by reason of the negligent execution or performance of the services provided for herein or breach of contract and further agrees to defend at its sole cost and expense any action or proceeding commenced for the purpose of asserting any claim of negligence or breach of contact. 10.INSURANCE. HKGi, at its expense, shall procure and maintain in force for the duration of this Agreement the following minimum insurance coverages: A.General Liability.HKGi agrees to maintain commercial general liability insurance in a minimum amount of $1,000,000 per occurrence; $2,000,000 annual aggregate. The policy shall cover liability arising from premises, operations, products completed operations, personal injury, advertising injury, and contractually assumed liability. The City shall be endorsed as additional insured. B. Automobile Liability.If HKGi operates a motor vehicle in performing the Services under this Agreement, HKGi shall maintain commercial automobile liability insurance, including owned, hired, and non-owned automobiles, with a minimum liability limit of $1,000,000 combined single limit. C. Workers’ Compensation.HKGi agrees to provide workers’ compensation insurance for all its employees in accordance with the statutory requirements of the State of Minnesota. HKGi shall also carry employers liability coverage with minimum limits are as follows: $500,000 – Bodily Injury by Disease per employee $500,000 – Bodily Injury by Disease aggregate $500,000 – Bodily Injury by Accident D.Professional (Errors and Omissions) Insurance. HKGi will maintain professional liability insurance for all claims HKGi may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to HKGi’s professional services required under this Agreement. HKGi is required to carry the following minimum limits: $1,000,000 per occurrence; $2,000,000 annual aggregate. The retroactive or prior acts date of such coverage shall not be after the effective date of this Agreement, and HKGi shall maintain such insurance for a period of at least three (3) years following completion of the Services. If such insurance is discontinued, extended reporting period coverage must be obtained by HKGi to fulfill this requirement. HKGi shall, prior to commencing the Services, deliver to the City a Certificate of Insurance as evidence that the above coverages are in full force and effect. 402 227170v1 3 The insurance requirements may be met through any combination of primary and umbrella/excess insurance. HKGi’s policies shall be the primary insurance to any other valid and collectible insurance available to the City with respect to any claim arising out of HKGi’s performance under this Agreement. HKGi’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days advanced written notice to the City. 11.INDEPENDENT CONTRACTOR. The City hereby retains HKGi as an independent contractor upon the terms and conditions set forth in this Agreement. HKGi is not an employee of the City and is free to contract with other entities as provided herein. HKGi shall be responsible for selecting the means and methods of performing the work. HKGi shall furnish any and all supplies, equipment, and incidentals necessary for HKGi's performance under this Agreement. City and HKGi agree that HKGi shall not at any time or in any manner represent that HKGi or any of HKGi's agents or employees are in any manner agents or employees of the City. HKGi shall be exclusively responsible under this Agreement for HKGi's own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 12.SUBCONTRACTORS. HKGi shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. HKGi shall comply with Minnesota Statute § 471.425. HKGi must pay subcontractor for all undisputed services provided by subcontractor within ten (10) days of HKGI’s receipt of payment from City. HKGi must pay interest of one and five- tenths (1.5) percent per month or any part of a month to subcontractor on any undisputed amount not paid on time to subcontractor. The minimum monthly interest penalty payment for an unpaid balance of One Hundred and No/100ths Dollars ($100) or more is Ten and No/100ths Dollars ($10). 13.ASSIGNMENT. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 14.WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 15.ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 16.CONTROLLING LAW/VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Carver County. 403 227170v1 4 17.COPYRIGHT. HKGi shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. 18.PATENTED DEVICES, MATERIALS AND PROCESES. If the contract requires, or HKGi desires, the use of any design, devise, material or process covered by letters, patent or copyright, trademark or trade name, HKGi shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the City. If no such agreement is made or filed as noted, HKGi shall indemnify and hold harmless the City from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the services agreed to be performed under the contract, and shall indemnify and defend the City for any costs, liability, expenses and attorney's fees that result from any such infringement. 19.AUDIT. Pursuant to Minnesota Statutes, § 16C.05, Subdivision 5, HKGi agrees that the City, the State Auditor, or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of the City, and involve transactions relating to this Agreement. HKGi agrees to maintain these records for a period of six years from the date of termination of this Agreement. 20.MINNESOTA GOVERNMENT DATA PRACTICES ACT. HKGi must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by HKGi pursuant to this Agreement. HKGi is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event HKGi receives a request to release data, HKGi must immediately notify City. City will give HKGi instructions concerning the release of the data to the requesting party before the data is released. HKGi agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from HKGi’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 21.NOTICES.All notices, demands or requests required or permitted to be made pursuant to or under this Agreement must be in writing and deemed valid if sent by registered mail, return receipt requested, or delivered by overnight delivery service providing written evidence of delivery, or by hand delivery by reputable independent courier providing written evidence of delivery, addressed as follows: 404 227170v1 5 Notice to City:City Manager PO Box 147 Chanhassen, MN 55317 Notice to HKGi:Bryan Harjes Vice President 800 North Washington Avenue, Ste 103 Minneapolis, MN, 55401 22.NONDISCRIMINATION. In the hiring of employees to perform work under this Agreement, the HKGi shall not discriminate against any person by reason of any characteristic or classification protected by state or federal law. 23.TERMINATION OF THE AGREEMENT. The City may terminate this Agreement or any part thereof at any time, upon written notice to HKGi, effective upon delivery including delivery by facsimile or email. In such event, HKGi will be entitled to compensation for work performed up to the date of termination based upon the payment terms of this Agreement. CITY OF CHANHASSEN BY: _______________________________ Elise Ryan, Mayor AND: ________________________________ Laurie Hokkanen, City Manager HOISINGTON KOEGLER GROUP INC BY: _______________________________ Bryan D. Harjes, Vice President 405 City Council Item July 17, 2023 Item Resolution 2023-XX: Designate No Parking Along Both Sides of Galpin Boulevard File No.ENG file: PW176A Item No: D.11 Agenda Section CONSENT AGENDA Prepared By George Bender, Assistant City Engineer Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council adopts a resolution designating no parking along Galpin Boulevard between West 78th Street and the northern municipal border." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY Carver County has officially released County Road 117, and the city officially accepted the same as Galpin Boulevard on February 14, 2022, thereby transferring jurisdiction to the city. This was all part of the project plan and agreement in place between the county and the city. This resolution is a formality required by MnDOT to allow the roadway to utilize Municipal State Aid (MSA) funding on the project to help cover the city's share of the street and surface water-related costs of the project. BACKGROUND DISCUSSION 406 The city has designated this section of Galpin Boulevard to be placed on the Municipal State Aid System (MSAS) in order to utilize MSA funding on the corridor. Approval of the proposed construction plans by State Aid requires a no parking restriction on both sides of the roadway throughout the city- owned portion of the right-of-way along the corridor (West 78th Street to the northern municipal border). BUDGET RECOMMENDATION Staff recommends the City Council adopt the resolution designating no parking along both sides of Galpin Boulevard from West 78th Street to the northern municipal border. ATTACHMENTS Resolution 407 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: July 17, 2023 RESOLUTION NO:2023-XX MOTION BY: SECONDED BY: A RESOLUTION ESTABLISHING BOTH SIDES OF GALPIN BOULEVARD FROM WEST 78 TH STREET TO THE NORTHERN CITY LIMITS AS A NO PARKING AREA WHEREAS, pursuant to Minnesota Statutes §412.221, Subd. 6, the City has the power to regulate the use of streets within the City; and WHEREAS, City Code section 12-13 authorizes the City to designate certain streets or portions of streets as no parking zones and provides that no person shall stop or park a vehicle in a no parking zone; and WHEREAS, the City desires to provide safe and effective transportation access to all areas in the City of Chanhassen; and WHEREAS, on March 13, 2023 Galpin Boulevard was requested to be designated as a Municipal State Aid Street as part of a County Road Turnback by the City Council; and WHEREAS, on March 21, 2023 and pursuant to Minnesota Statute, Section 162.09 (2009), the Commissioner of Transportation approved the City Council’s request and designated Galpin Boulevard from West 78 th Street to the northern city limits as a Municipal State Aid Street; and WHEREAS, in accordance with the minimum design standards of Minnesota Rules Chapter 8820 (Section 8820.9936) for local State-Aid route standards, and because Galpin Boulevard is designated a Major Collector, no parking restrictions are required on both sides of the corridor. NOW, THEREFORE, BE IT RESOLVED bythe Chanhassen City Council that no on- street parking be allowed on both sides of Galpin Boulevard from West 78 th Street to the northern city limits and that the City Public Works Director is directed to mark by appropriate signage or painting, and the County Sheriff is directed to enforce, the designated no parking area for this portion of Galpin Boulevard. PASSED AND ADOPTED by the Chanhassen City Council this 17 th day of July, 2023. ATTEST: Kim Meuwissen Elise Ryan, Mayor YES NO ABSENT 408 City Council Item July 17, 2023 Item Resolution 2023-XX: Authorize execution of an Aquatic Invasive Species Watercraft Inspection Agreement with Carver County File No.SWMP 13G Item No: D.12 Agenda Section CONSENT AGENDA Prepared By Joe Seidl, Water Resources Engineer Reviewed By Charlie Howley SUGGESTED ACTION “The Chanhassen City Council adopts a resolution authorizing execution of an Aquatic Invasive Species Watercraft Inspection Agreement with Carver County." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY The purpose of this agreement is to help prevent the introduction of new Aquatic Invasive Species (AIS) into Lake Ann, Lake Susan, and Lotus Lake through AIS education and inspections. The program's overall cost is $47,294, but the cost to the city is $20,762. The remaining costs are funded by the Riley Purgatory Bluff Creek Watershed District (RPBCWD) in the amount of $17,943 and the Lotus Lake Conservation Alliance (LLCA) in the amount of $8,589. The agreement has been reviewed by both city and county staff. BACKGROUND The overall program costs $47,294, all of which is to be paid by the city to the county. However, the city is sharing the cost of the program with RPBCWD and the LLCA. RPBCWD has agreed to pay $17,943, and the LLCA has agreed to pay $8,589. Written agreements for the respective financial contributions with both organizations have been obtained. The city has financially supported this 409 program since 2014. This is a budgeted expense coming from the Surface Water Management Fund. Lake Ann and Lake Susan will receive 280 Inspection Hours, and Lotus Lake will receive 2,345 Inspection Hours. Lotus Lake receives more inspection hours because of the LLCA contribution and because of the characteristics of the lake that make it better suited for AIS management. Carver County will employ DNR-certified staff at each lake to visually inspect watercraft before they enter and when leaving the lakes to control the spread of AIS. DISCUSSION BUDGET This is a budgeted expense coming from the Surface Water Management Fund. The budgeted amount was $30,000 and the program cost is $20,762. RECOMMENDATION Staff recommends the City Council adopt the resolution approving the execution of this agreement with Carver County. ATTACHMENTS Resolution City of Chanhassen AIS Agreement 2023 Chanhassen AIS Inspection Agreement RPBCWD 2023 Chanhassen AIS Inspection Agreement LLCA 2023 Cost Splits AIS Program 2023 410 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: July 17, 2023 RESOLUTION NO: 2023-XX MOTION BY: SECONDED BY: A RESOLUTION APPROVING AIS WATERCRAFT INSPECTION AGREEMENT WITH CARVER COUNTY WHEREAS,the City desires to establish an Aquatic Invasive Species (hereinafter called “AIS”) Inspection Program to prevent the introduction of new AIS into Lake Ann, Lake Susan, and Lotus Lake (“Lakes”) through AIS education and inspections; and WHEREAS,Carver County has agreed to provide AIS inspection services for the Lakes pursuant to the AIS Watercraft Inspection Agreement between the County and the City, which services shall commence upon execution of the AIS Watercraft Inspection Agreement by both parties and continue through November 30, 2023. The total amount of compensation to be paid to Carver County shall not exceed $47,294; and WHEREAS,the City of Chanhassen is sharing the cost of the program with the Riley Purgatory Bluff Creek Watershed District and the Lotus Lake Conservation Alliance, who have agreed to pay $17,943 and $8,589, respectively; and WHEREAS,the program is a budgeted expense funded by the Surface Water Management Fund. The budgeted amount was $30,000, and the program cost to the City of Chanhassen is $20,762; and WHEREAS, the maximum total number of watercraft inspection hours for the days from May 14, 2023, through November 15, 2023, is two thousand nine hundred and five (2,905). NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council hereby approves the AIS Watercraft Inspection Agreement with Carver County and accepts the funds approved by Riley Purgatory Bluff Creek Watershed District and the Lotus Lake Conservation Alliance in the amounts of $17,943 and $8,589, respectively. PASSED AND ADOPTED by the Chanhassen City Council this 17th day of July, 2023. ATTEST: Kim Meuwissen, City Clerk Elise Ryan, Mayor YES NO ABSENT 411 1 City of Chanhassen AIS Watercraft Inspection Agreement AGREEMENT entered into as of _______________, 2023 by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation (“City”), and COUNTY OF CARVER, a body corporate and politic under the laws of Minnesota (“County”). NOW, THEREFORE, in consideration of their mutual covenants and obligations, the City and County agree as follows: I. COUNTY SERVICES The purpose of this Agreement is to partner with the City in preventing the introduction of new Aquatic Invasive Species (hereinafter called “AIS”) into Lake Ann, Lake Susan and Lotus Lake through AIS education and inspections. The primary contact for the County is Andrew Dickhart and Joe Seidl is the primary contact for the City. II. SPECIALIZED PROFESSIONAL AGREEMENT SPECIFICATIONS 1. This Agreement shall commence upon its execution by both parties and continue through November 30, 2023. The total amount of compensation to be paid to the County shall not exceed $47,294.00. 2. Inspections will be conducted at the following public access points: Lake Ann, Lake Susan and Lotus Lake in accordance with the schedule attached as Appendix A. 3. Inspections outside of the foregoing hours shall be conducted by the County only with the mutual consent and agreement of the City and the County. The maximum total number of watercraft inspection hours for these days from May 14, 2023 through November 15, 2023 is two thousand nine hundred and five (2,905). 4. The County will provide all necessary supervision to assure that the County’s employees satisfactorily perform their duties under this Agreement. 5. The County will onboard applicants as employee inspectors, be responsible for training, scheduling, and payroll during the term of this agreement. The County will provide inspector service as long it can continue inspector staffing or to the term of this agreement, whichever comes first. 6. The City will reimburse the County for inspections at the rate of Sixteen Dollars and 28/100 ($16.28) per hour up to a total not to exceed $47,294 7. The County will provide reports showing actual time spent at each location. 8. The county will coordinate MN DNR training sessions for the inspectors to be certified as Level I or Level II inspectors. 412 2 9. The County shall act in all respects as an independent Contractor under this Agreement and will be solely responsible for performance of services required hereunder, as well as the means and manner of performance thereof. Nothing herein authorizes the County to act as an agent or representative of the City for any purpose. 10. Any amendment to this agreement must be in writing and executed by both the County and the City III. INDEMNIFICATION Each party shall be liable for its own acts to the extent provided by law and hereby agrees to indemnify, hold harmless and defend the other, its officers and employees against any and all liability, loss, costs, damages, expenses, claims or actions, including attorney’s fees which the other, its officers and employees may hereafter sustain, incur or be required to pay, arising out of or by reason of any act or omission of the party, its agents, servants or employees, in the execution or performance or failure to adequately perform its obligations pursuant to this Agreement. It is understood and agreed that the County’s and City’s liability shall be limited by the provisions of Minn.Stat.Chap.466 and/or other applicable law. To the full extent permitted by law, actions by the parties pursuant to this Agreement are intended to be and shall be construed as a “cooperative activity” and it is the intent of the parties that they shall be deemed a “single government unit” for the purposes of liability, all as set forth in Minnesota Statutes, Section 471.59, Subd. 1a(a); provided further that for purposes of that statute, each party to this Agreement expressly declines responsibility for the acts of omissions of the other party. IV. PAYMENT FOR SERVICES 1. Payments to the County will be paid as services are performed and will be paid within thirty-five (35) days of receipt of the County’s invoice, which shall be submitted after completion of program. 2. All other expenses incurred by the County in completing the work required under this Agreement will be the County’s responsibility. V. TERMINATION OF AGREEMENT This Agreement may be terminated at any time and for any reason by the City on seven (7) days’ written notice. In the event of termination by the City, the County is entitled to compensation based on the number of hours worked up to the effective date of termination. VI. NOTICE 1. Any notice, request, demand, or other communication required or permitted under the terms of this Agreement shall be deemed to be properly given when deposited in the United States Postal Service, postage prepaid, and addressed to the agent of each party as specified herein. 413 3 2. However, when this Agreement requires immediate notice, such notice shall be accomplished by telephone to the designated agent of the parties or by facsimile to the numbers listed herein: (a) Notices to City should be sent to: City of Chanhassen Attn: Joe Seidl 7700 Market Boulevard P.O. Box 147 Chanhassen, MN 55317 Telephone: 952-227-1168 Fax: 952-227-1110 (b) Notices to the County should be sent to: Carver County Attn: Andrew Dickhart 600 E. 4th Street Chaska, Minnesota Telephone: 952-361-1871 Fax: 952-361-1828 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed intending to be bound thereby. CITY OF CHANHASSEN, COUNTY OF CARVER MINNESOTA BY: BY: Elise Ryan, Mayor Dave Hemze, County Administrator Date: ________________________, 2023 Date:________________________, 2023 BY: John Fahey, Chair, Board of Commissioners Date:________________________, 2023 414 4 Appendix A Enclosures: 2023 Program Details Duration of Inspections: Lake Ann and Lake Susan (5/30/23 – 9/4/23) Lotus Lake (5/14/23 - 11/15/23) Coverage Times: Lake Ann & Lake Susan: Saturdays, Sundays (7 a.m. to 2 p.m.) Holidays (varies) Lotus Lake: May 14- September 4 (6 am to 8 pm) 7 days/week September 5-30 (6:30 am to 7:30 pm) 7 days/week October 1-31 (7:00 am to 7:00 pm) 7 days/week November 1-15 (8 am to 4:00 pm) 7days/week Total Inspection Hours: Lake Ann 280 hours Lake Susan 280 hours Lotus Lake 2345 hours 2905 hours Combined Program Budget Inspections 2905 @ $16.28/hr $47,294.00 Funding: Riley Purgatory Bluff Creek Watershed District RPBCWD Partner contributions TBD by City of Chanhassen City. Lotus Lake Conservation Alliance/LLCA $47,294.00 415 5 Lotus Lake Program Breakdown Who County CC Hrs Day: Hours to Cover Per Day 14 Mon 6am - 8pm Per Week 98 Tues 6am - 8pm Total Inspection days 114 Wed 6am - 8pm Total Inspection hours 1596 Thur 6am - 8pm Total Inspection $ at 16.28/hr $ 25,982.88 Fri 6am - 8pm Sat 6am - 8pm Sun 6am - 8pm May 14- Sept 04 ↑ Who County CC Hrs Day: Hours to Cover Per Day 13 Mon 6: 30am - 7:30pm Per Week 91 Tues 6: 30am - 7:30pm Total Inspection days 26 Wed 6: 30am - 7:30pm Total Inspection hours 338 Thur 6: 30am - 7:30pm Total Inspection $ at 16.28/hr $ 5,502.64 Fri 6: 30am - 7:30pm Sat 6: 30am - 7:30pm Sun 6: 30am - 7:30pm Sept 05- Sept 30 ↑ Who County CC Hrs Day: Hours to Cover Per Day 12 Mon 7am-7pm Per Week 84 Tues 7am-7pm Total Inspection days 31 Wed 7am-7pm Total Inspection hours 372 Thur 7am-7pm Total Inspection $ at 16.28/hr $ 6,056.16 Fri 7am-7pm Sat 7am-7pm Sun 7am-7pm Oct 1- Oct 31 ↑ Who County CC Hrs Day: Hours to Cover Per Day 8 Mon 8am-4pm Per Week 56 Tues 8am-4pm Total Inspection days 15 Wed 8am-4pm Total Inspection hours 120 Thur 8am-4pm Total Inspection $ at 16.28/hr $ 1,953.60 Fri 8am-4pm Sat 8am-4pm 416 6 Sun 8am-4pm Total hours 2345 Nov 1- Nov 15 Total cost $37,541.68 Lake Ann Program Breakdown Who County CC Hrs Day: Hours to Cover Per Day 7 Mon Per Week 14 Tues Total Inspection days 40 Wed Total Inspection hours 280 Thur Total Inspection $ at 17/hr $ 4,760.00 Fri Sat 7am - 2pm Including Mem. Day, July 4, and Labor Day Sun 7 am- 2pm May 30- Sept 4 Lake Susan Program Breakdown Who County CC Hrs Day: Hours to Cover Per Day 7 Mon Per Week 14 Tues Total Inspection days 40 Wed Total Inspection hours 280 Thur Total Inspection $ at 17/hr $ 4,760.00 Fri Sat 7am - 2pm Including Mem. Day, July 4, and Labor Day Sun 7 am- 2pm May 30- Sept 4 417 1 Seidl, Joe From:Terry Jeffery <tjeffery@rpbcwd.org> Sent:Wednesday, June 28, 2023 12:39 PM To:pngranos@gmail.com; Seidl, Joe Cc:'Andrew Dickhart' Subject:Re: Chanhassen AIS Inspection Agreement Confirmed. Thank you. Sent from my Verizon, Samsung Galaxy smartphone Get Outlook for Android From: pngranos@gmail.com <pngranos@gmail.com> Sent: Wednesday, June 28, 2023 11:23:08 AM To: 'Seidl, Joe' <jseidl@chanhassenmn.gov>; Terry Jeffery <tjeffery@rpbcwd.org> Cc: 'Andrew Dickhart' <adickhart@co.carver.mn.us> Subject: RE: Chanhassen AIS Inspection Agreement Confirmed for LLCA Paul Granos pngranos@gmail.com Chanhassen, MN 612-801-3685 From: Seidl, Joe <jseidl@chanhassenmn.gov> Sent: Wednesday, June 28, 2023 10:29 AM To: Terry Jeffery <tjeffery@rpbcwd.org>; pngranos@gmail.com Cc: Andrew Dickhart <adickhart@co.carver.mn.us> Subject: RE: Chanhassen AIS Inspection Agreement No problem. I reran the numbers and memorialized the percentages. See breakdown below. This solution would not impact the overall contract with Carver County. Basically, RPBCWD and LLCA pay a little below their allocated amounts (see below) and the percentages are fixed in case the full contract hours are not realized by the Program. · RPBCWD to pay up to: $17,943 · LLCA to pay up to: $8,589.74 Terry and Paul Please confirm this is acceptable and I will finalize my report for council. 418 2 If you have any questions, please let me know. Kind Regards, Joe Seidl Water Resources Engineer CITY OF CHANHASSEN jseidl@chanhassenmn.gov PH. 952.227.1168 FX. 952.227.1170 www.chanhassenmn.gov From: Terry Jeffery <tjeffery@rpbcwd.org> Sent: Wednesday, June 28, 2023 10:15 AM To: Seidl, Joe <jseidl@chanhassenmn.gov>; Andrew Dickhart <adickhart@co.carver.mn.us>; pngranos@gmail.com Subject: Re: Chanhassen AIS Inspection Agreement There is none allocated for either Susan or Ann. That said, if you would like to put in a request for 2024, we are bringing a draft budget to the board in July with an August adoption. Terry Jeffery (he/him/his) District Administrator Riley Purgatory Bluff Creek Watershed District 18681 Lake Drive E, Chanhassen, MN 55317 Ph 952-607-6512 ext 1 | Email tjeffery@rpbcwd.org ___________________________________________________________________________ From: Seidl, Joe <jseidl@chanhassenmn.gov> Sent: Wednesday, June 28, 2023 9:58 AM To: Terry Jeffery <tjeffery@rpbcwd.org>; Andrew Dickhart <adickhart@co.carver.mn.us>; pngranos@gmail.com <pngranos@gmail.com> Subject: RE: Chanhassen AIS Inspection Agreement Thanks Terry, I can rerun some numbers. Can you confirm is there is any budget from RPBCWD for Lake Ann or Lake Susan? 419 3 From: Terry Jeffery <tjeffery@rpbcwd.org> Sent: Wednesday, June 28, 2023 9:46 AM To: Andrew Dickhart <adickhart@co.carver.mn.us>; pngranos@gmail.com Cc: Seidl, Joe <jseidl@chanhassenmn.gov> Subject: Re: Chanhassen AIS Inspection Agreement Sorry for the delayed response on this. Andrew, I believe you may have swapped RPBCWD's share for Lotus with Lake Riley. Our breakdown in our budget is as follows: · $32,000 for Riley · $18,000 for Lotus I recognize there was a slight increase in costs so the money we levied for it might need to be augmented slightly from our rapid response fund or other. Let me know if I am missing something here. Perhaps an agreement with Claire? Thanks, Terry Terry Jeffery (he/him/his) District Administrator Riley Purgatory Bluff Creek Watershed District 18681 Lake Drive E, Chanhassen, MN 55317 Ph 952-607-6512 ext 1 | Email tjeffery@rpbcwd.org ___________________________________________________________________________ From: Andrew Dickhart <adickhart@co.carver.mn.us> Sent: Thursday, May 25, 2023 9:39 AM To: Terry Jeffery <tjeffery@rpbcwd.org>; pngranos@gmail.com <pngranos@gmail.com> Cc: Seidl, Joe <jseidl@chanhassenmn.gov> Subject: Chanhassen AIS Inspection Agreement Morning, gentlemen. Joe and I are finishing up the 2023 AIS Watercraft Inspection agreement. Before we sign, can you please confirm your approved contribution amounts? A copy of the contract is attached. I believe that last year’s break down was: Riley Purgatory Bluff Creek Watershed District RPBCWD $32,225.50 City of Chanhassen $19,351.98 Lotus Lake Conservation Alliance/LLCA $8,886.44 $60,463.92 Andrew Dickhart Aquatic Invasive Species Coordinator 420 4 Carver County Planning & Water Management Office 952-361-1871 Cell 612-322-4088 421 1 Seidl, Joe From:pngranos@gmail.com Sent:Wednesday, June 28, 2023 11:23 AM To:Seidl, Joe; 'Terry Jeffery' Cc:'Andrew Dickhart' Subject:RE: Chanhassen AIS Inspection Agreement Confirmed for LLCA Paul Granos pngranos@gmail.com Chanhassen, MN 612-801-3685 From: Seidl, Joe <jseidl@chanhassenmn.gov> Sent: Wednesday, June 28, 2023 10:29 AM To: Terry Jeffery <tjeffery@rpbcwd.org>; pngranos@gmail.com Cc: Andrew Dickhart <adickhart@co.carver.mn.us> Subject: RE: Chanhassen AIS Inspection Agreement No problem. I reran the numbers and memorialized the percentages. See breakdown below. This solution would not impact the overall contract with Carver County. Basically, RPBCWD and LLCA pay a little below their allocated amounts (see below) and the percentages are fixed in case the full contract hours are not realized by the Program. · RPBCWD to pay up to: $17,943 · LLCA to pay up to: $8,589.74 Terry and Paul Please confirm this is acceptable and I will finalize my report for council. If you have any questions, please let me know. Kind Regards, 422 2 Joe Seidl Water Resources Engineer CITY OF CHANHASSEN jseidl@chanhassenmn.gov PH. 952.227.1168 FX. 952.227.1170 www.chanhassenmn.gov From: Terry Jeffery <tjeffery@rpbcwd.org> Sent: Wednesday, June 28, 2023 10:15 AM To: Seidl, Joe <jseidl@chanhassenmn.gov>; Andrew Dickhart <adickhart@co.carver.mn.us>; pngranos@gmail.com Subject: Re: Chanhassen AIS Inspection Agreement There is none allocated for either Susan or Ann. That said, if you would like to put in a request for 2024, we are bringing a draft budget to the board in July with an August adoption. Terry Jeffery (he/him/his) District Administrator Riley Purgatory Bluff Creek Watershed District 18681 Lake Drive E, Chanhassen, MN 55317 Ph 952-607-6512 ext 1 | Email tjeffery@rpbcwd.org ___________________________________________________________________________ From: Seidl, Joe <jseidl@chanhassenmn.gov> Sent: Wednesday, June 28, 2023 9:58 AM To: Terry Jeffery <tjeffery@rpbcwd.org>; Andrew Dickhart <adickhart@co.carver.mn.us>; pngranos@gmail.com <pngranos@gmail.com> Subject: RE: Chanhassen AIS Inspection Agreement Thanks Terry, I can rerun some numbers. Can you confirm is there is any budget from RPBCWD for Lake Ann or Lake Susan? From: Terry Jeffery <tjeffery@rpbcwd.org> Sent: Wednesday, June 28, 2023 9:46 AM To: Andrew Dickhart <adickhart@co.carver.mn.us>; pngranos@gmail.com 423 3 Cc: Seidl, Joe <jseidl@chanhassenmn.gov> Subject: Re: Chanhassen AIS Inspection Agreement Sorry for the delayed response on this. Andrew, I believe you may have swapped RPBCWD's share for Lotus with Lake Riley. Our breakdown in our budget is as follows: · $32,000 for Riley · $18,000 for Lotus I recognize there was a slight increase in costs so the money we levied for it might need to be augmented slightly from our rapid response fund or other. Let me know if I am missing something here. Perhaps an agreement with Claire? Thanks, Terry Terry Jeffery (he/him/his) District Administrator Riley Purgatory Bluff Creek Watershed District 18681 Lake Drive E, Chanhassen, MN 55317 Ph 952-607-6512 ext 1 | Email tjeffery@rpbcwd.org ___________________________________________________________________________ From: Andrew Dickhart <adickhart@co.carver.mn.us> Sent: Thursday, May 25, 2023 9:39 AM To: Terry Jeffery <tjeffery@rpbcwd.org>; pngranos@gmail.com <pngranos@gmail.com> Cc: Seidl, Joe <jseidl@chanhassenmn.gov> Subject: Chanhassen AIS Inspection Agreement Morning, gentlemen. Joe and I are finishing up the 2023 AIS Watercraft Inspection agreement. Before we sign, can you please confirm your approved contribution amounts? A copy of the contract is attached. I believe that last year’s break down was: Riley Purgatory Bluff Creek Watershed District RPBCWD $32,225.50 City of Chanhassen $19,351.98 Lotus Lake Conservation Alliance/LLCA $8,886.44 $60,463.92 Andrew Dickhart Aquatic Invasive Species Coordinator Carver County Planning & Water Management Office 952-361-1871 Cell 612-322-4088 424 4 425 2023 AGREEMENT RATE 16.28 HOURS % SPLIT CONTIBUTION HOURS % SPLIT CONTIBUTION HOURS % SPLIT CONTIBUTION RPBCWD 280 0 0 280 0 0 2345 47.0 17,943.00$ CHANHASSEN 100 4558.4 100 4558.4 30.5 11,643.86$ LLCA 22.5 8,589.74$ TOTAL 47293.4 LAKE ANN LAKE SUSAN LOTUS LAKE 426 City Council Item July 17, 2023 Item Resolution 2023-XX: Approve Cooperative Agreement with MCES related to the Lift Station #3 Forcemain Replacement Project File No.ENG Project No. 23-08 Item No: D.13 Agenda Section CONSENT AGENDA Prepared By Charlie Howley, Director of Public Works/City Engineer Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council adopts a resolution approving entering into a Cooperative Construction Agreement with the Metropolitan Council for work related to the Lift Station #3 Forcemain Replacement Project." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY This agreement covers the Met Council's cost participation in the project with respect to the installation of a new manhole on their Interceptor Sewer #7017. The forcemain replacement project is proposing the new manhole as an improvement to the existing city sewer tie-in location. The city's forcemain replacement is a proactive asset management project. The existing forcemain was installed in 1972 and is close to reaching its' expected lifecycle. This forcemain discharges sewage collected in Lift Station #3, located on the north side of Highway 7 west of Minnewashta Parkway. This lift station and forcemain handle all of the City's sewage flow from the west side of Lake Minnewashta, making it a critical infrastructure piece. BACKGROUND 427 N/A DISCUSSION N/A BUDGET N/A RECOMMENDATION Staff recommends approval of the agreement. ATTACHMENTS Resolution Lift Station #3 Cooperative Agreement 428 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: July 17, 2023 RESOLUTION NO: 2023-XX MOTION BY: SECONDED BY: A RESOLUTION AUTHORIZING ENTERING INTO AN AGREEMENT WITH THE METROPOLITAN COUNCIL FOR WORK RELATED TO THE LIFT STATION #3 FORCEMAIN REPLACEMENT PROJECT WHEREAS,the City discharges all of its sanitary sewer flow into the MCES regional system for wastewater conveyance and treatment; and WHEREAS,the forcemain from Lift Station #3 ties into MCES Interceptor Sewer #7017; and WHEREAS,the forcemain for Lift Station #3 is proactively being replaced as part of the City’s Asset Management project; and WHEREAS,the MCES manhole at the forcemain tie-in should be reconstructed with the project; and WHEREAS,the manhole replacement is an MCES cost responsibility; however, the project is being implemented by the City. NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council hereby authorizes entering into an agreement describing the responsibilities of each party with the Metropolitan Council related to the City’s Lift Station #3 Forcemain Replacement Project. PASSED AND ADOPTED by the Chanhassen City Council this 17 th day of July, 2023. ATTEST: Kim Meuwissen, City Clerk Elise Ryan, Mayor YES NO ABSENT 429 Met. Council No. 23I024 1 COOPERATIVE CONSTRUCTION AGREEMENT This agreement is made and entered into by and between the Metropolitan Council, a public corporation and political subdivision of the State of Minnesota (“Council”), and the City of Chanhassen, a municipal corporation under the laws of the State of Minnesota (“City”). BACKGROUND RECITALS 1. The City plans to construct a new forcemain downstream of City lift station L3 located at 3900 Highway 7, during the 2023 construction seasons (“City Project”). 2. The Council desires to upgrade its sanitary sewer manhole at the discharge of the City forcemain on West 62nd Street (“Council Project”). 3. Both City and Council desire that the Council Project be constructed in conjunction with the City Project to minimize community impacts and disruption to local traffic. 4. The Council is not staffed or equipped to construct the Council Project during the 2023 construction season. 5. Therefore, the Council desires to have the City construct the Council Project contemporaneously with the City Project. The parties agree as follows: AGREEMENT I. Purpose of Agreement 1. This agreement describes the responsibilities of each of the Parties for design and construction of the Council Project. 2. The Council appoints the City as its agent to obtain bids, enter into a contract for the construction of the work, and supervise the work performed on the Council Project for compliance with the Council Project construction documents and this agreement. 3. The scope of the Council Project is: Construction of a new corrosion resistant manhole downstream of Council manhole 11-5, located on interceptor 7017. 430 Met. Council No. 23I024 2 4. The locations of the Council Project and the City Project are shown on Exhibit A to this agreement. II. Construction Documents 1. City or its agents will prepare the necessary detailed construction documents for the Council Project. The Council Project Construction Documents will contain plans and specifications and a schedule for construction of the Council Project suitable for use by proposed contractors in the preparation of their bids. The City will develop the Council Project Construction Documents using the most current Council standards and practices for sanitary sewer access manholes. The Council or its agents have prepared a construction cost estimate for the Council Project, attached as Exhibit B. 2. The City will have a Registered Professional Engineer licensed in the State of Minnesota prepare and certify the Council Project Construction Documents that will be incorporated into the bidding documents for the Combined Project. When requested by the Council, the City will make all Council Project Construction Documents available to the Council in a timely manner for periodic review. The Council’s project manager or its representative will approve all Council Project Construction Documents before the Council Project Construction Documents are incorporated into the plans for the Combined Project. 3. Council requires a review of the Council Project Construction Documents. The Council will return review comments in writing to the City within 14 days of receipt of the documents. The City will incorporate the requested changes and return a final review set of Council Project Construction Documents to the Council prior to bidding. The Council will have 7 days to review the changes and respond to the City in writing authorizing the City to bid the Combined Project. 4. The City will deliver to the Council original, reproducible, certified final Council Project Construction Documents. 5. The City’s Engineer will incorporate the Council Project Construction Documents into the City Project Construction Documents (“Combined Project Construction Documents”) for the City and Council Projects (“Combined Project”). III. Easements and Permits 1. The Council gives the City and its employees, contractors, and agents the right to enter onto Council property, and any easements and rights-of-way the Council obtained for construction of the Council Project for the purpose of the City fulfilling this agreement. 431 Met. Council No. 23I024 3 2. The City will acquire all permanent and temporary permits, easements and property interests necessary in the City’s name for the Combined Project. The City is not acquiring any property on the Council’s behalf. The City will permit the Council to have its manhole within the easements that the City acquires for the Combined Project. 3. As of the date of this agreement, no additional property acquisition is required for construction and installation of the Council Project. The Council is responsible for any land acquisitions outside of the City Project boundaries. 4. The City is responsible for getting all permits associated with construction of the Combined Project. IV. Procedure for Acceptance of Bids 1. Bidding Procedure. Prior to advertising for bids, the City will allow the Council to review the bidding documents. The City will advertise for bids for the work and construction of the Combined Project, receive and open bids and may, subject to Council’s acceptance of the bid submitted, enter into a construction contract with the successful bidder in accordance with applicable law. The bidding documents will require separate line items for specific Council Project bid items. After opening the bids, the City will give the Council a written tabulation of the bids with the City’s recommendation for selection of the lowest responsible bidder. 2. Council May Accept or Reject of Council Project Bid Amount. a. Council Project Bid Amount is less than 120% of estimate. If the line items for the Council Project in the bid total is less than 120% of the construction cost estimate in the final Council Project Construction Documents in Exhibit B (excluding contract administration costs), the Council accepts the bid for the Council Project and the City will award the Council Project portion of the bid. b. Council Project Bid Amount is 120% or More of Estimate. If the line items for the Council Project in the bid are 120 percent or more of the construction cost estimate in the final Council Project Construction Documents in Exhibit B (excluding contract administration costs), the City will award the Council Project portion of the bid, unless the Council gives the City written notice stating that the Council does not agree to be bound by the bid prices for the Council Project. The City will receive the Council’s written notification within 14 days of the date the City provided the Council with the 432 Met. Council No. 23I024 4 bid tabulation. If the Council does not notify the City within 14 days, the bids for the Council Project will be deemed accepted by the Council. c. Compensation to the City if the Council Does Not Proceed with its Project. If the Council does not accept the bid amount for the Council Project as described in section IV.2.b above, or otherwise decides before the City’s award of the Combined Project not to proceed with the Council Project, the Council will reimburse the City for Council Project-related costs incurred by the City as of the date of termination. A decision by the Council not to construct the Council Project has no bearing on the City’s ability to proceed with the City Project. 3. City decision not to award City Project. If the City decides not to award the City Project, the City will reimburse the Council for Council Project-related costs incurred by the Council as of the date of termination. A decision by the City not to construct the City project has no bearing on the Council’s ability to independently advertise and accept bids for and construct the Council Project. V. Construction and Contract Administration 1. The City will include in the construction contract for the Combined Project, the Council Project Construction Documents, and require that the contractor construct the Council Project according to these Documents. At least 14 days before the contractor begins work on the Council Project, the City will give written notice to the Council that the contractor will begin construction by sending notice to: Chad Davison Title: Principal Engineer, Interceptors Address: 3565 Kennebec Drive Address: Eagan, MN 55122 Email: Chad.Davison@metc.state.mn.us 2. The City will perform and direct all construction supervision, contract administration and inspections required to complete the Combined Project. The City will not interrupt the operation of Interceptor 7017 during the construction of the Council Project without the written consent of the Council. 3. The Council’s authorized representative Construction Inspector, or its designee identified to the City in writing, may observe the work during the construction of the Council Project, but the Council’s authorized representative is not responsible for supervising the Council Project. When observing the work, the Council’s authorized representative will cooperate with the City’s Engineer or designated representative. The Council’s authorized representative will 433 Met. Council No. 23I024 5 be available to the City at all times during construction of the Council Project. The Council will designate an authorized representative with the authority and experience to make decisions concerning the construction of the Council Project so as not to delay construction of the City Project or the Combined Project. 4. If after installation, the Council determines that any portion of the Council Project was not constructed substantially in accordance with the Council Project Construction Documents, the Council’s authorized representative will inform the City of the deficiency within seven days. The Council’s notice to the City will also explain why the portion of the Council Project does not conform to the Council Project Construction Documents and the actions the Council believes the contractor will take to correct the deficiency. The City will require the contractor to make the corrections to meet the requirements of the Council Project Construction Documents. 5. The Council’s authorized representative will participate in the inspection of the Council Project for substantial completion. Within seven days of any substantial completion inspection, the Council will provide the City the punch list items that need to be addressed before final completion of the Council Project. If the Council does not provide punch list items within seven days, the contractor’s work will be deemed accepted. 6. The City will inform the Council in writing of final completion of construction (including the punch list items) of the Council Project. Within seven days of receiving the City’s written notice, the Council will inform the City in writing whether the Council Project conforms to the Council Project Construction Documents. The Council makes the final decision on whether the contractor’s Council Project work conforms to the Council Construction Documents. The Council will accept the work on the Council Project in writing. 7. The Council will participate in the claims process on the Combined Project for the following types of contractor claims: a. Council requests for changes or modifications to any construction documents (Council Project, City Project, or Combined Project). b. project delays caused by untimely response to the inspection requirements in Article V. The Council will pay the portion of any claim that relates to the acts of the Council regarding the Council Project. VI. Modifications to Construction Documents 1. The City may make minor changes in the Council Project Construction Documents and the Combined Project Construction Documents if the changes are necessary to complete construction. The City may also enter into any change orders or supplemental agreements with the contractor on the Combined Project to incorporate these changes in the 434 Met. Council No. 23I024 6 Council Project or Combined Project Construction Documents. These changes may result in a change to the Council’s cost participation described in Section VII. 2. The City will give the Council’s Authorized Representative all proposed amendments and material changes to the Council Project Construction Documents. The Council will review the documents and communicate in writing its acceptance or rejection to the City within seven days. The City will not amend or change the Council Project Construction Documents until it receives the Council’s written acceptance. 3. The Council may make changes to the Council Project if all of the following occur: a. The Council gives the City seven days written notice; b. The Council bears the costs of all changes; and c. The change does not increase the cost or delay completion of the City Project. VII. Cost Participation and Payment 1. The Council will reimburse the City for the costs shown in Exhibit B as specified in this Section VII. The Council will reimburse the City for the actual cost of construction for the Council Project, actual costs of construction for portions of the Combined Project as identified in Exhibit B, plus seven percent. The additional seven percent is for the following: a. Design, surveying, inspection, and testing for the Council Project; b. other costs associated with the Council or Combined Project including contract administration and land acquisition if applicable, and other administrative expenses associated with the Council or Combined Project. 2. The City, at its sole expense will acquire in its name all permanent and temporary permits, easements, and property interests necessary for the Combined Project. 3. The parties further agree that the Council Project costs are an estimate. The final Council Project construction costs will be based on the unit prices in the City’s construction contract, the final quantities, and any amendments or change orders. 4. After the City awards the Combined Project Construction Contract, the City will prepare a revised Exhibit B and give it to the Council. The revised Exhibit B will update the Council Project costs for construction, land acquisition, and administration based on the actual 435 Met. Council No. 23I024 7 design costs and contract unit prices. The parties will substitute the revised Exhibit B for the Exhibit B attached to this agreement without any amendment to this agreement. 5. The City will pay its contractor for the contractor’s work on the Council Project. The Council will then pay the City under this section. During construction of the Council Project, the City will submit one invoice to the Council after final acceptance of the completed construction of the Council Project. The Council will pay the City within 30 days after it receives the invoice. If the Council disputes any portion of an invoice it will give the City notice of the dispute within 14 days after the Council receives the invoice. If the Council disputes any portion of an invoice, the Council will pay the undisputed portion of the invoice within 30 days after receipt of the invoice, and it will pay the remainder of any amount due within 30 days after the dispute is resolved. 6. When the work on the Combined Project is substantially complete, the City will give the Council an updated cost participation breakdown. This cost participation breakdown will show actual construction costs based on the contract unit prices and the units of work the contractor performed. The updated cost participation breakdown will also contain the updated administrative and other costs to be paid to the City by Council. VIII. Warranties and Maintenance 1. The Council Project bonds and warranties will be issued in the name of the City. Once construction of the Council Project is complete and the Council accepts the Council Project, the Council Project will be under the full control of the Council and all bonds, warranties and guarantees provided by the sureties, construction contractors and subcontractors for the Council Project are the property of Council. If a surety prohibits assignment then the City will require the contractor to ensure that the affected bond or warranty is applied both to the City and the Council. 2. After acceptance of the Council Project by the Council the Council is responsible for operation and maintenance of the Council Project. IX. Liability 1. To the extent authorized by law each party is responsible only for its own acts and the results of its acts. The Council’s and City’s liability is governed by the provisions of Minnesota Statutes, Chapter 466. 2. The Council and City each warrant that they have an insurance or self-insurance program with minimum coverage consistent with the liability limits in Minnesota Statutes, Chapter 466. Nothing in this agreement is a waiver or limitation of any immunity or limitation 436 Met. Council No. 23I024 8 of liability by the Council or City. 3. The City will ensure that the Combined Project construction contract includes clauses that: a. require the Combined Project contractor to defend, indemnify, and hold harmless the Council, its officers, agents and employees from claims, suits, demands, damages, judgments, costs, interest, expenses (including reasonable attorney’s fees, witness fees and disbursements) arising out of or by reason of the acts or omissions of the contractor, its officers, employees, agents or subcontractors; b. require the Combined Project contractor to provide and maintain insurance in the amounts specified in the attached Exhibit C, which is incorporated into this agreement, and name the Council as additional insured; and c. require the Combined Project contractor to be an independent contractor for the purposes of completing the work on the Council Project. X. General Provisions 1. All records kept by the Council and City with respect to the Council Project are subject to examination by representatives of each party. All data collected, created, received, maintained or disseminated for any purpose by the Council and City under this agreement are governed by Minnesota Statutes, Chapter 13(“Act”), and the Minnesota Rules implementing the Act. 2. The City agrees to comply with all laws applicable to the City relating to nondiscrimination, affirmative action, public purchases, contracting, employment, workers’ compensation, and surety deposits required for construction contracts. Minnesota Statutes, Section 181.59 and any applicable local ordinance relating to civil rights and discrimination and the Affirmative Action Policy statement of the Council is considered a part of this agreement. 3. The employees of the parties, and all other persons engaged by each party will not be considered employees of the other party. Each party is solely responsible for all claims arising from its employees including claims under the Worker’s Compensation Act, the Minnesota Economic Security Law and all third party claim resulting from an act or omission of an employee. 4. If hazardous wastes, pollutants or contaminants as those terms are defined in law exist on the Combined Project site, the City is responsible for any response or remedial action, monitoring or reporting under the law. The City will apply for and have the Council named as a beneficiary in any no association letters, no action/no further action letters and other environmental regulatory assurances for the site. The City will give the Council copies of any 437 Met. Council No. 23I024 9 Phase I and Phase II environmental investigations, approved Response Action Plans, and environmental assurance letters naming the Council as a beneficiary. This paragraph survives the termination of this agreement. 5. This agreement is the entire agreement between the parties and supersedes all oral agreements and negotiations between the parties relating to this agreement. All exhibits and attachments to this agreement are incorporated into the agreement. If there is a conflict between the terms of this agreement and any of the exhibits the agreement governs. 6. The provisions of this agreement are severable. If a court finds any part of this agreement void, invalid, or unenforceable, it will not affect the validity and enforceability of the remainder of this agreement. A waiver by a party of any part of this agreement is not a waiver of any other part of the agreement or of a future breach of the agreement. 7. Any modifications to this agreement will be in writing as a formal amendment. 8. This agreement is binding upon and for the benefit of the parties and their successors and assigns. This agreement is not intended to benefit any third-party. 9. Except as otherwise provided for in this agreement, the agreement may be terminated by the mutual agreement of the parties. 10. If a force majeure event occurs, neither party is responsible for a failure to perform or a delay in performance due to the force majeure event. A force majeure event is an event beyond a party’s reasonable control, such as unusually severe weather, fire, floods, other acts of God, labor disputes, acts of war or terrorism, or public health emergencies. 11. Under Minnesota Statutes, Section 16C.05, subdivision 5, the Parties agree that the books, records, documents, and accounting procedures and practices relevant to this agreement are subject to examination by either Party and the state auditor or legislative auditor, as appropriate, for at least six years from the end of this agreement. 12. A party will send all notices or demands under this agreement either by: a. certified mail; b. e-mail, as long as the recipient acknowledges receipt by e-mail or otherwise in writing; or c. delivered in person to the other party addressed to the following authorized representatives: 438 Met. Council No. 23I024 10 Chad Davison Metropolitan Council Environmental Services 390 Robert Street North St. Paul, MN 55101-1805 Charlie Howley City of Chanhassen 7700 Market Blvd. Chanhassen, MN 55317 13. The parties will use a dispute resolution process for any unresolved dispute between the parties before exercising any legal remedies. The dispute resolution process is a three level dispute resolution ladder that escalates a dispute from the project management level through the executive management level. At each level of the dispute resolution process, the Parties’ representatives will meet and explore resolution until either party determines that effective resolution is not possible at the current level, and notifies the other party that the process is elevated to the next level. The parties designate the following dispute resolution representatives: City Representative Metropolitan Council Representative Level 1 Public Works Director Manager Level 2 City Manager Assistant General Manager Level 3 City Council General Manager, Environmental Services The parties will complete the dispute resolution process in good faith before resorting to any other legal process or remedy. 14. The City is authorized to enter into this agreement pursuant to City Resolution No. 2023- , approved on ______________________. 439 Met. Council No. 23I024 11 15. This agreement will be effective when all parties have signed it. The date of this agreement will be the date this agreement is signed by the last party to sign it (as indicated by the date associated with that party’s signature). Each party is signing this agreement on the date stated below that party’s signature. METROPOLITAN COUNCIL, A public corporation and political subdivision of the State of Minnesota By: Name, Title Date: CITY OF CHANHASSEN A municipal corporation of the State of Minnesota By: Elise Ryan, Mayor Date: and Laurie Hokkanen, City Manager Date: 440 Met. Council No. 23I024 12 LIST OF EXHIBITS Exhibit A - City Project and Metropolitan Council Project Locations Exhibit B - Metropolitan Council Project Construction Costs Estimates Exhibit C- Liability and Insurance 441 Met. Council No. 23I024 13 Exhibit A City Project and Metropolitan Council Project Locations 442 "!(M MCES MH 11-5 Council-Funded City Lift Station LS3 City Project M e a d o w L a n ePipewoodLane W 62nd St LandingsCourtChurch Rd 62nd St W Aster TrailMinnewashtaParkwayCartway LaneM419 S H O R E W O O D C H A N H A S S E N S H O R E W O O D V I C T O R I A C H A N H A S S E NV I C T O R I A CATHCART PARK 8253-3277017 ")7 Exhibit A - Project Location !(M MCES Meter Council-Funded Project MCES Interceptor "City Lift Station City Forcemain ¯ 0 250 500125 Feet443 Met. Council No. 23I024 14 Exhibit B Council Project Construction Costs Estimates 444 Bid Item Unit Qnty Unit Cost Total 1 Polymer Concrete or Fiberglass Sanitary Manhole Each 1 $200,000 $200,000 $200,000 $14,000 $214,000 Engineering & Administration 7% Total EXHIBIT B CHANHASSEN L3 FORCEMAIN REPLACEMENT PRELIMINARY CONSTRUCTION COST‐ COUNCIL PORTION August 18, 2020 Subtotal AGREEMENT 23I024 445 Met. Council No. 23I024 15 Exhibit C Liability and Insurance I. INDEMNIFICATION 1.01 Indemnification. To the fullest extent allowed by law, the CONTRACTOR agrees that it will save and protect, hold harmless, indemnify, and defend the COUNCIL, CITY, and their members, agents, and employees against any and all claims, expenses (including, but not limited to, legal expense paid or incurred to enforce the provisions of this Section), losses, damages, or lawsuits for damage or injury to extent arising out of, resulting from, or attributable to, the CONTRACTOR’s negligent Work, including negligent acts or omissions of its employees, subcontractors, representatives, or agents, or anyone else for whom CONTRACTOR may be liable. II. INSURANCE AND BOND REQUIREMENTS 1.01 Insurance Requirements. Contractor shall purchase from and maintain during the Work, or longer if required elsewhere in this contract, in a company or companies lawfully authorized to do business in the jurisdiction in which the Project is located, insurance set forth below providing protection from claims which may in any way be related to Contractor’s Work under the Contract and for which Contractor may be legally liable, whether such operations be by the Contractor or by a Subcontractor or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable: 1. General Liability and Umbrella Insurance 1.1. Contractor shall maintain commercial general liability (CGL) on an occurrence form and, if necessary, commercial umbrella insurance with a limit of not less than $2,000,000 each occurrence and a general aggregate limit of not less than $4,000,000. The general aggregate limit shall apply separately to this project. 1.1.1. CGL insurance shall be written on ISO occurrence form CG 00 01 04 13(or a substitute form providing equivalent coverage) and shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury, advertising injury, contractual liability, including the contractual liability assumed in Article II, Section 1.01. 1.1.2. The COUNCIL, its Architect/Engineer, CITY and their respective officers, agents and employees shall be included as an additional insured under the CGL utilizing ISO CG 20 26 04 13 and ISO CG 20 37 04 13, or their equivalent. Such coverage shall be maintained in effect for the benefit of the CITY, the COUNCIL, their Architect/Engineer, officers, agents and employees, for a minimum period of three years following Final Acceptance by COUNCIL (or CITY) of the work related to this contract. This insurance shall be primary and non-contributory with respect to any other insurance or self-insurance programs afforded to COUNCIL and CITY. 446 Met. Council No. 23I024 16 There shall be no endorsement or modification of the CGL to make it excess over other available insurance. 2. Automobile and Umbrella Liability Insurance 2.1. Contractor shall maintain Business automobile coverage, ISO CA 00 01, 1997 or later edition, and if necessary an Umbrella Liability policy on a following-form basis, for liability arising out of the operation, maintenance or use of any automobile, whether owned, non-owned, rented or leased, with a limit of not less than $1,000,000 each accident. 2.1.1. Pollution liability coverage equivalent to that provided under the ISO pollution liability-broadened coverage for covered autos endorsement (CA 99 48) shall be provided, and the Motor Carrier Act endorsement (MCS 90) shall be attached. 2.1.2. The CITY, COUNCIL, and their respective officers, agents and employees shall be included as an additional insured by endorsement, ISO Form CA 20 48 02 99 or equivalent 3. Workers’ Compensation and Employers Liability 3.1. Workers’ Compensation pursuant to Statute 3.2. Employers Liability with limits not less than $500,000 each accident for bodily injury by accident, $1,000,000 each employee for bodily injury by disease, $500,000 policy limit for bodily injury by disease. 4. Property Insurance Contractor shall purchase and maintain property insurance written on a builder’s risk “all- risk” (Special Form ISO CP 10 30) or equivalent policy form in the amount of the initial contract sum, plus value of subsequent contract modifications and cost of materials supplied or installed by others, comprising total value for the entire Project at the site on a replacement cost basis. 4.1. It shall provide coverage for, but not be limited to, loss or damage to the Work, temporary buildings, falsework, Work materials and equipment stored off or on site and in transit. 4.2. Include the interests of the COUNCIL, CITY, Contractor, Subcontractors, and Architects/Engineers, each of whom is deemed to have an insurable interest. 4.3. Policy shall be maintained in effect until Final payment and acceptance by the COUNCIL. 4.4. Include an endorsement permitting partial utilization of the Work if COUNCIL or CITY find it necessary to occupy or use a portion or portions of the Work completed prior to Final Payment and Acceptance of the Work. 5. Contractor Pollution Liability (CPL) 5.1. Contractor shall maintain this coverage with limits not less than $1,000,000 each claim and $2,000,000 annual aggregate. Coverage shall include bodily injury, property 447 Met. Council No. 23I024 17 damage, including loss of use of property, clean-up costs, defense (including costs and expenses incurred in the investigation, defense, or settlement of claims), products and/or completed operations, and contractual liability. Coverage shall also be provided for transport of waste and non-owned disposal sites, if contractor is disposing of waste. 5.2. The COUNCIL and CITY shall also be listed as an insured on such policy. 5.3. If CPL policy is written on a claims-made basis, then retroactive date must precede the earlier of either i.) the effective date of this contract, or ii.) the date work begins and shall provide an extended reporting period. 1.02 Other Insurance Provisions. The insurance policies shall contain the following provisions: 1.1. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled or non-renewed, except after thirty days’ prior written notice (ten day notice for cancellation due to non-payment of premium), has been given to the COUNCIL and CITY at the following addresses: Metropolitan Council Attn: Risk Management 390 N. Robert St. Saint Paul, MN 55101 City of Chanhassen 7700 Market Blvd. Chanhassen, MN 55317 Attn: Director of Public Works 1.2. In addition to notifying its insurer(s) in accordance with the policy, Contractor shall provide prompt written notice (to the address above) as soon as reasonably possible of any accident or loss relating to work performed on behalf of the COUNCIL and CITY. 1.3. Each policy shall be endorsed to state that the insurer agrees to waive all rights of subrogation against the CITY, the COUNCIL, and their respective members, agents and employees, for losses arising out of the performance of this contract. 1.4. Insurance is to be placed with insurers with Best’s rating of no less than A:VII. 1.5. The Contractor shall furnish the COUNCIL and CITY with certificates of insurance and with copies of endorsements evidencing coverage required by this article. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements are to be received by the COUNCIL before work commences. The COUNCIL and CITY are not obligated to review certificates or other evidence of insurance, or to advise the CONTRACTOR of any deficiencies in such documents, and receipt thereof will not relieve the CONTRACTOR from, nor be deemed a waiver of the 448 Met. Council No. 23I024 18 COUNCIL’s and CITY’s right to enforce, the terms of the CONTRACTOR’s obligations hereunder. The COUNCIL and CITY will have the right to examine any policy required by this Contract. 1.03 CONTRACTOR’s Responsibility for Insurance. The COUNCIL and CITY do not represent in any way that the insurance specified in this contract, whether in scope of coverage or limits, is adequate or sufficient to protect the CONTRACTOR's business or interests. It is the sole responsibility of the CONTRACTOR to determine the need for and to procure additional coverage that may be needed in connection with this contract. Furthermore, the procuring of such required policy or policies of insurance shall not be construed to limit the CONTRACTOR's liability under this contract nor to fulfill the indemnification provisions and requirements of this contract. 1.04 Non-Waiver of Municipal Immunity and Limits. Nothing in this contract shall be construed to waive the municipal immunities or liability limits provided in the Minnesota Municipal Tort Claims Act or other applicable state or federal law. 449 City Council Item July 17, 2023 Item Resolution 2023-XX: Authorize entering into a Professional Services Agreement with SRF for the Design Phase of the Minnetonka Middle School West (MMSW) Roundabout Project File No.ENG Project No. 24-05 Item No: D.14 Agenda Section CONSENT AGENDA Prepared By Charlie Howley, Director of Public Works/City Engineer Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Councils adopts a resolution authorizing entering into a Professional Services Agreement with SRF for the design phase of the Minnetonka Middle School West Roundabout Project." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY The project is awaiting final word from MnDOT concerning the Local Partnership Program (LPP) funding application we submitted at the end of May. Should that application be successful, the project will be fully funded. In order to still attempt to construct the roundabout in the summer of 2024 we need to get going on the design now. Should LPP funding not be awarded, alternate sources of funding will be needed, and the design will be put on hold and push construction to 2025. Construction phase services will be solicited once the project is out for bids next spring. BACKGROUND N/A 450 Firm Approach & Understanding (out of 35) Past Projects (out of 10) Resources (out of 10) Personnel (out of 10)Fee Fee (out of 35) Total Score (out of 100) SRF 27 9 6 7 $208,531.50 35 84 Alliant 33 7 9 8 $305,523.00 24 81 DISCUSSION City staff sent out a Request for Proposals (RFP) to four selected consultants on June 14, 2023, two of which returned proposals for consideration. The city's selection committee reviewed the proposals per the criteria noted in the RFP, which resulted in the following scoring: SRF prepared the initial study for the intersection improvement in 2019 and has supported the city on a few occasions over the last couple of years in preparing LPP application materials and the creation of a visualization model for the roundabout. They have performed these services adequately and indicated in their proposal that construction in 2024 is feasible. The contract utilized will be the City's standard Professional Services Agreement. BUDGET Services provided via this agreement is a soft cost that is included in the overall project cost of $3M. RECOMMENDATION Staff recommends approval of the design contract with award to SRF. ATTACHMENTS Resolution Alliant Proposal SRF Proposal RFP TH41-MMSW Roundabout Design Services Professional Services Agreement with SRF 451 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: July 17, 2023 RESOLUTION NO:2023-XX MOTION BY: SECONDED BY: A RESOLUTION AUTHORIZING THE CITY TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH SRF FOR THE DESIGN PHASE OF THE MINNETONKA MIDDLE SCHOOL WEST ROUNDABOUT PROJECT WHEREAS, the City recognizes the need for traffic and safety improvements at the vehicular entrance to Minnetonka Middle School West; and WHEREAS,funding for the project comes from a combination of a State LRIP Grant, MnDOT LPP, the Minnetonka School District, and the City of Chanhassen; and WHEREAS,the City prepared a Request for Proposals (RFP), sent to four qualified consulting firms, and received two proposal submittals; and WHEREAS,the City scored the proposals based on the stipulations of the RFP, and SRF received the highest score; and WHEREAS, the City desires to construct the project in the summer of 2024, and therefore, design services need to begin soon. NOW, THEREFORE, BE IT RESOLVED bythe Chanhassen City Council: The Chanhassen City Council authorizes entering into a Professional Services Agreement with SRF for design phase services related to the Minnetonka Middle School West Roundabout Project. PASSED AND ADOPTED by the Chanhassen City Council this 17th day of July, 2023. ATTEST: Kim Meuwissen, City Clerk Elise Ryan, Mayor YES NO ABSENT 452 PROPOSAL TH 41 Roundabout at Entrance to Minnetonka Middle School West Preliminary Design, Final Design, and Bidding Services City Project No. 24-05 // June 30, 2023 Prepared for: Prepared by: 453 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West i Alliant Engineering, Inc. 733 Marquette Ave Ste 700 Minneapolis, MN 55402 612.758.3080 main 612.758.3099 fax www.alliant-inc.com Charlie Howley, PE, LEED AP Public Works Director/ City Engineer City of Chanhassen chowley@ ci.chanhassen.mn.us. June 30, 2023 RE: Proposal for TH41 Roundabout at Entrance to Minnetonka Middle School West Preliminary Design, Final Design, and Bidding Services, City Project No. 24-05 Dear Mr. Howley and Members of the Evaluation Committee: Alliant Engineering, Inc. (Alliant) and our teaming partner HDR are excited to deliver the design and construction phase services for the TH 41 Roundabout at Entrance to MMSW project. We have assembled an experienced and committed group of design staff to best address the goals set forth by the City. I, Nick Turner, will serve as the City’s main point of contact throughout the project’s entire duration. Throughout our proposal, we will demonstrate that the Alliant Team is the best selection to ensure a detailed and swift delivery of this project. The Alliant Team brings unique experience and skills to the table that will ensure successful delivery of this project. Highlights of these benefits include: ● Team Strength. The City of Chanhassen needs a team who can lead this project through design, bidding, and construction. We have brought together our two firms who have the resources, expertise, and specialization necessary to complete your project on time. Our team is currently working together to complete delivery of the roundabout at TH 41 and Peavey Road, with construction underway, and will use that experience to provide a seamless project for Chanhassen. ● Roundabout Expertise. Our preliminary design lead, Nicole Gulick is a roundabout expert. Roundabouts represent a large portion of her experience and range from conceptual layouts and preliminary design through detailed design and construction documents. Nicole is MnDOT prequalified for roundabouts and geometric layouts, with proven experience to deliver this project. Her history working with MnDOT’s Geometric Design Services Unit (GDSU) will help expedite the layout process, helping to meet the project’s tight design schedule. ● Effective Communication of Project Goals and Progress. This project will require clear and consistent communication with multiple project partners and stakeholders. Our team includes public engagement specialists who will develop a thorough and effective outreach and communication plan. We will also assist the City of Chanhassen in developing and delivering the overall project message to stakeholders. This communication effort starts with direct meetings with landowners, MnDOT, and other stakeholders to listen to their input and establish open lines of communication that continues throughout design and construction. HDR is actively working with the community along TH 41, and has an extended history in the area. We will take lessons learned from these past projects to hone our approach and messaging here. We appreciate your consideration of the Alliant Team and look forward to partnering with you on this important project. Please feel free to contact me with any questions or for more information. Sincerely, Alliant Engineering, Inc. Nick Turner, PE Project Manager/Associate nturner@alliant-inc.com 612.767.9350 Eric Nelson, PE Principal/Authorized Signer Building better communities with excellence and passion. 454 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 1 Project Understanding PROJECT NEED Spurred by public concerns and poor performance, the City of Chanhassen began looking at the intersection of TH 41 and the entrance to Minnetonka Middle School West (MMSW) more than five years ago. Performance during AM and PM peak periods was plagued by long queues. There are also safety concerns for the bicycle and pedestrian traffic at the intersection with the proximity of the school and high volume of youth traveling to and from the school. Past LRIP grant applications were successful for this project, suggesting the current application will be as well. Over the years select short term improvements have been made to help alleviate the delays, including a current project to reconfigure the school parking lot. While they have helped, a long-term solution is needed. The School District supports the improvements and has made commitments toward funding and right-of-way to help this project move forward. The development coming on the west side of the road will create additional need for this improvement. There is a desire for TH 41 to become a 4-lane facility in the future. As such, the roadway system should facilitate that growth. Three miles to the south, a multilane roundabout was constructed at Lyman Boulevard. A 2x1 roundabout is presently under construction at Peavey Road, just south of Lyman Boulevard. The current intersection concept for this location shows a design that would facilitate expansion to the north and south with minimal impacts to the roundabout. Communicating this goal to MnDOT while also providing supporting traffic data will assist in advancing the layout through the review process. SCHEDULE AND STAFFING With several other projects in the area scheduled for 2025 construction, it is strongly preferred to bid and construct this roundabout in 2024. Due to school access needs, the construction will need to occur during summer break and be substantially complete in time for the 2024-2025 school year. Challenges to making this happen may occur during design or in the field leading up to construction. During design, MnDOT coordination will be planned out, providing status updates, and keeping them informed of our schedule. Their review times are often 3-4 weeks for a project on their Trunk Highway, so minimal delays will be critical. We will be prepared for each of the submittals, providing sufficient information to complete the reviews, as well as coordinating with discipline staff at the Department directly when possible. We have developed a schedule to deliver construction documents for a May 2024 bid letting. We have highlighted MnDOT review times and included them in our planning. While the schedule is tight, we believe that it is possible to deliver on time. The first hurdle will be acquiring a Staff Approved Layout, so quality feedback early in the process with be crucial. The other critical schedule element will be utility coordination. Utility companies will need sufficient notice of impacts to provide them time to design and relocate their facilities in advance of this project. Our experience at the TH 41/Peavey Rd roundabout will provide us familiarity with the utility companies and issues facing a recent project of similar nature to this one. Recognizing the importance of schedule, we commit to having staff available to meet the schedule needs of the project. Our staffing decisions are based on experience and availability, providing you an efficient and reliable team who can deliver. HERE ARE FIVE WAYS THE ALLIANT TEAM CAN HELP TO MITIGATE SCHEDULE RISK: ►Utilities could stay under the roundabout footprint which is against current MnDOT desires. This could be done by establishing an agreement between MnDOT and the utility company that they would relocate in the future rather than make future repairs, if the repairs required impacting roundabout traffic. Alliant has utilized this technique successfully in the past to alleviate schedule concerns. ►We plan to advance the 60% design once we are comfortable with our progression through the GDSU review process. Beginning our plan preparation efforts early can reduce the time between layout approval and the 60% submittal. ►Utility coordination has dedicated design team to ensure it does not fall behind schedule. ►Proposed PM would also act as Construction Administrator if construction admin/inspection is later amended to contract. This eliminates the transfer of knowledge to a new team, ensuring the design intent is properly represented in the field. ►Engagement team is already familiar with corridor users from past projects on TH 41 and the primary questions/ topics received. 455 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 2 The Alliant Team Alliant is committed to providing the City of Chanhassen the best team to serve you on this project. Below you will find brief descriptions of our teaming partners and the roles they will play in the delivery of this project. In order to ensure the successful delivery of this project, we acknowledge that not all the required services are available within Alliant. Therefore, we have added HDR, a highly capable and experienced firm that specializes in the specific services we need. By collaborating with this firm, we aim to maintain a small and agile team while benefiting from their expertise to effectively steer the project forward. TEAM FIRMS Alliant Engineering, Inc. Minneapolis, MN FIRM ROLE ●Project management ●Roadway Design ●Traffic Analysis and Design ●Survey ●Utility Coordination ●Drainage Alliant is a multidisciplinary consulting firm with a successful history in the delivery of local, county, and DOT highway projects. Our talented staff of over 165 professionals includes planners, engineers, land surveyors, and landscape architects. Alliant is committed to improving our transportation infrastructure to increase safety, enhance operations, reduce maintenance, and provide a high-quality experience for all modes of travel. BENEFITS TO THE CITY OF CHANHASSEN ►Passionate project manager who is dedicated to improving the communities he works in ►Successful history of working with teaming partners ►Experts in roundabout design ►Proven ability to deliver high quality plans on tight time lines, when necessary HDR St. Louis Park, MN FIRM ROLE ●Public Engagement ●Right-of-Way/Real Estate ●Environmental For over a century, HDR has partnered with clients to shape communities and push boundaries of what’s possible. Our Minnesota transportation team includes more than 100 professionals whose expertise is recognized locally and nationally. Our public engagement, right-of-way, and environmental teams deliver innovative solutions and an exceptional experience to our communities. BENEFITS TO THE CITY OF CHANHASSEN ►Community and project location familiarity ►Experience in managing and executing outreach and engagement on roundabout projects on this corridor ►Proven ability in Right of Way acquisitions ►Extensive experience conducting environmental review on transportation projects through state and federal processes KEY PERSONNEL Alliant has assembled a dedicated team of professionals with the specialized expertise needed to complete this project. Our team organization and staff roles are shown in Exhibit 1 below. A project manager resume immediately follows this chart with summary resumes for each design task lead on subsequent pages. TH 41 AND PEAVEY Throughout the resumes and staff bios you will see an orange TH 41 and Peavey banner below staff headshots to show staff involved in the delivery of this project and who will be ready to roll straight into TH 41 and MMSW as their next primary focus. 456 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 3 Exhibit 1. Organization Chart City of Chanhassen Project Manager Charlie Howley, PE, LEED AP Project Manager Nick Turner, PE (A) Traffic Analysis Nick Grage, PE, PTOE, RSP1 (A) Public Engagement Specialist Stephanie Roth (H) Roadway Design Preliminary Roundabout Design Nicole Gulick, PE (A) Final Roundabout Design Eric Plemel, PE (A) Survey and Easements Dan Ekrem, PLS (A) Utility Coordination Danielle Steeg, PE (A) Right-of-Way and Real Estate Lee Kaffar (H) PROJECT TEAM Alliant (A) HDR (H) Drainage & Permitting Connor Fortune, PE (A) Environmental Caroline Miller, AICP (H) 457 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 4 Nick Turner, PE Project Manager TH 41 AND PEAVEY Nick is an Associate at Alliant with 14 years of experience working with Cities and Counties on a variety of projects with an emphasis on urban corridors and Municipal State Aid streets. He is currently overseeing the construction of the TH 41 and Peavy Rd Roundabout in Chaska. He is ready to lead a very similar design team of that roundabout through the MnDOT/Local Agency partnership process again for the delivery of this roundabout. Nick’s dynamic design experience includes conceptual designs through final designs, urban core reconstructs to rural roundabouts, and specialized considerations of pedestrian interactions with bike facilities. PROFESSIONAL REGISTRATION/LICENSURE Professional Engineer in Minnesota RELEVANT EXPERIENCE TH 41/Peavey Rd Roundabout — Chaska, MN Nick is currently serving as the Construction Manager on the 2x1 roundabout which is currently under construction, and served as the utility coordinator during the design process. This project was similarly driven by local interest and development, and required a local agency partnership delivery between MnDOT and the City of Chaska. Utilities, wetlands, and developments all played critical roles on the delivery and design advancement of this project. Many of these same critical items will be involved in the design advancement and project delivery for the proposed MMSW roundabout. TH 73 and CSAH 10 Roundabout and Highway Improvements — Moose Lake, MN Geometric Design Lead and Roadway Designer for the construction of a roundabout at the intersection of TH 73 and Carlton County CSAH 10 in Moose Lake, MN. The construction of a new school along CSAH 10 south of this intersection required the intersection improvements as well as widening of CSAH 10 for approximately one mile. This project had a very aggressive schedule, with six weeks from start of the project to plan turn-in. Alliant prepared a level 1 layout and final construction bid documents for all roadway, drainage, erosion control, and construction staging improvements. University and Fourth Roadway Improvements — Minneapolis, MN Nick served as the Design Manager for this partial reconstruction project of one-way repairs University Avenue and 4th Street through Dinkytown and to the University of Minnesota campus. The Alliant led team delivered preliminary and final design services for these federally funded improvements with 100% design completed in the Spring of 2022. Construction is slated to begin in 2024. Lyndale Avenue North Intersection Improvements — Minneapolis, MN Nick served as Project Manager for the reconfiguration of seven intersections along the Lyndale Avenue corridor in north Minneapolis to better serve the residents. Nick and the design team laid out a range of intersection alternatives which were identified and completed a feasibility analysis for each option. The design team advanced the preferred corridor concept from preliminary layout through the final design process including construction plans and specifications delivered through the MnDOT Federal Aid DCP process. Girard Avenue S Street Reconstruction — Minneapolis, MN Project Manager for the reconstruction of Girard Avenue from Lake Street to Lagoon Avenue in the Uptown neighborhood. The project converted a one-block segment of Girard Avenue into a low-speed, curb-less roadway with emphasis on an improved pedestrian realm along the corridor. The final design team prepared construction bid documents which covered all improvements including a reconstruction of the roadway, green infrastructure for stormwater treatment and conveyance, utility upgrades, ADA improvements, curb extensions, lighting, and signal upgrade. Construction was completed in 2020. 458 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 5 Eric has over eight years of experience with preliminary and final design of roadway reconstruction and utility improvement projects. Eric was a key member of the design teams for roundabouts in Moose Lake, Rochester, Wright County, and Jacksonville. His roles have varied from MOT/Staging to final design lead among these project teams. He is a skilled final design engineer who is known for delivering high quality plans. Eric Plemel, PE Final Roundabout Design 48th St SW/Commercial Drive SW Roundabout — Rochester, MN Lead Designer. Presently under construction, this single lane roundabout design slows traffic and improves turning operations at a 4-lane divided intersection with connections to side streets providing commercial access. Eric led the plan production, taking the design from horizontal geometry to construction documents. CSAH 36-CSAH 37 Corridor Improvements — Minneapolis, MN Preliminary and Final Design Lead for the proposed corridor improvements along one-way pairs University Avenue and Fourth Street in the heart of the University of Minnesota. These multimodal corridors are due for a pedestrian focused update focusing on the interaction between protected bikeways and Metro Transit E Line platforms. Preliminary design included comparing various options for the corridor and associated cost estimates to find a layout that best matched the corridor goals, agency expectations, and available budget. TH 73 and CSAH 10 Roundabout and Highway Improvements — Moose Lake, MN Final Design Engineer for the construction of a roundabout at the intersection of TH 73 and Carlton County CSAH 10 in Moose Lake, MN. The construction of a new school along CSAH 10 south of this intersection required the intersection improvements as well as widening of CSAH 10 for approximately one mile. This project had a very aggressive schedule, with six weeks from start of the project to plan turn-in. Alliant prepared a level 1 layout and final construction bid documents for all roadway, drainage, erosion control, and construction staging improvements. Nicole is a talented geometric designer and project manager with 22 years of experience designing a diverse array of transportation Facilities. Roundabouts represent a large portion of her experience and range from conceptual layouts and preliminary design through detailed design and construction documents. Nicole has a strong understanding of roundabout geometry and how proper design can positively affect user experience. Effective geometry increases the inherit safety of the design and sound design ensures functionality of the constructed product. Nicole Gulick, PE Preliminary Roundabout Design TH 41/Peavey Rd Roundabout — Chaska, MN Design Lead. Located in MnDOT’s Metro District, this 2x1 roundabout is under construction. Wetlands and a large culvert were design constraints for this development-led design that required MnDOT approvals. Nicole led the preparation of the geometric layout and design plans, serving as the primary point of contact between MnDOT, the City of Chaska, and the development team. TH 57/TH 60 Roundabout — Wanamingo, MN Nicole was the Project Manager and Design Lead on this $2.2 M project. This thru-stop controlled intersection of two trunk highways had extensive crash history even after additional safety measures had been taken. Alliant provided preliminary and final design services for a single lane roundabout. Three of the legs are high speed approaches (60mph). Due to the significant amount of agricultural traffic, including an equipment dealer near the western limits of the project, the roundabout has been designed to accommodate farm equipment and meets the typical trunk highway standards. The design included access management and pedestrian routing. US 2/TH 194 Roundabout and Mill and Overlay — MnDOT District 1 Project Manager and Design Lead. This single lane OSOW roundabout includes accommodations for westbound wind tower vehicles to make a right turn as well as other identified needs. The roundabout is staged construction with access maintained to three legs throughout while preserving access to nearby residences and commercial properties. The roundabout is under construction. TH 41 AND PEAVEY Nicole has had significant design involvement in more than 25 Roundabouts. Eris has held significant design development roles on the final design and delivery of 4 roundabouts. 459 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 6 TH 41 AND PEAVEY Stephanie Roth Engagement Stephanie is a communications specialist with 15 years of experience in project management, plain language message development, audience segmentation, and creative writing for a variety of audiences. She has successfully worked with MnDOT, Carver County, and the cities of Chaska and Chanhassen on project teams and as key stakeholders. Her local project experience includes managing and executing communications and outreach for the Highway 41 expansion in Chaska, the Highway 41/18 (Lyman Boulevard) improvements, and the Highway 41/Peavey Road roundabout. She also recently directed outreach content development for a roundabout project at the entrance of Harrisburg North Middle School in Sioux Falls, SD. As a resident of the area Stephanie is very tied into her community and has a strong desire to assist with local improvements. TH 41 AND PEAVEY Dan Ekrem, PLS Survey Dan has twenty years of experience in the land survey and land development fields. He has worked closely with engineers and surveyors on commercial, industrial, and residential projects. He is detail oriented and uses the latest software to analyze, visualize, portray and complete complex design features and surveys. Dan believes in adherence to established CADD standards, but he also relies on experience and creativity to plan and manage projects. He will help with any easement or survey needs that may arise on this project. Danielle Steeg, PE Utility Coordination Danielle has 11 years of experience in both preliminary and final transportation design utilizing MnDOT, State Aid, Federal Aid, and ADA design standards. She has extensive experience in a wide variety of horizontal and vertical geometrics, urban and rural design, mill and overlay, guardrail design, bike/pedestrian accommodations, and ADA design. Danielle has designed numerous projects with lane reconfiguration resulting in widening and variable depth profile milling for crown/cross slope correction to match the new lane configuration. She will evaluate the impacts resulting from the roundabout paying specific attention to the impacts to environmental features and right of way. She will also review existing utility locations and any potential impacts from the improvements. TH 41 AND PEAVEY Nick Grage, PE, PTOE, RSP1 Traffic Analysis Nick has 11 years of experience in traffic and transportation engineering, working on a variety of large roadway and smaller stand-alone projects throughout the Midwest. Nick is highly experienced with the traffic operation and safety analysis of urban county roadways, including corridor studies and intersection control evaluations, to support concept development and preliminary engineering efforts. Nick led the traffic analysis for the CSAH 46 Traffic Analysis and Preliminary Engineering project for Dakota County and the CSAH 33 (Everton Avenue North) Safety and Pedestrian Improvement Project for Washington County. TH 41 AND PEAVEY Connor Fortune, PE Drainage Connor will lead the stormwater design effort and has 11 years of experience with water resources engineering on transportation-based projects. Connor led the stormwater design on the Chaska roundabout project, including hydrologic and hydraulic modeling, BMP design, final storm sewer design, and watershed district permitting. He has experience collaborating with watershed district staff to meet permitting requirements, including his current work with two watershed districts on the CSAH 33 project for Washington County. He also led the storm sewer design for the Portland Avenue Bike Gap project for Hennepin County in the cities of Richfield and Minneapolis. Connor has experience designing BMPs on projects with multiple constraints, including his work on the preliminary design for the Upper Harbor Terminal redevelopment in Minneapolis. Caroline Miller, AICP Environmental Caroline is a planner with 14 years of experience in environmental and multi-modal transportation planning projects. She has proven experience bringing stakeholders and agency partners through the environmental documentation process, conceptual design with multiple alternatives, and design issue resolution. She has used her expertise to develop long range transportation plans, analyze complex environmental and transportation data, and communicate technical information to the public. 460 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 7 Lee Kaffar Real Estate/ROW Lee has 17 years of experience providing ROW and management services for transportation, power, oil/gas, renewable energy, and water/ waste water projects. His experience encompasses construction and public liaison services, permitting application development, review and analysis of geometric design layouts and studies, underground utility improvements, traffic study analyses, and work with environmental impact considerations. Lee coordinates with clients, local agencies, and owners regarding land acquisitions and relocation agreements. He leverages his experience to provide support for public involvement efforts and communication with stakeholders during the acquisition and/or relocation process. RELEVANT EXPERIENCE The following pages highlight our team’s relevant experience, beginning with the TH 41 and Peavey Roundabout project in Chaska. TH 41/Peavey Rd Roundabout Chaska, MN Development drove the implementation of a 2x1 roundabout on TH 14 in Chaska, MN. Wetlands exist in two quadrants of the intersection, connected by an existing large MnDNR culvert. Schedule and budgetary constraints required the design to work within existing MnDOT and City Right of Way property, with no additional acquisitions. Large retaining walls were used to support the roundabout and minimize wetland impacts, while providing full pedestrian access. There was MnDOT coordination throughout the process, from the geometric layout through the cooperative agreements and construction documents. We worked closely with Metro State Aid’s Local Partnership Program to move the project along. Key Personnel: Nicole Gulick, Nick Turner, Nick Grage, Connor Fortune, Dan Ekrem, Stephanie Roth (separate contract) 48th Street SW/ Commercial Drive SW Roundabout Rochester, MN Alliant worked with the City of Rochester and Olmstead County to perform an intersection control evaluation following a fatality crash. The 48th Street/Commercial Drive intersection located in an urbanizing area of Rochester, with recent redevelopment projects, and planned roadway infrastructure/development projects under construction. A comprehensive study was completed, evaluating five geometric and traffic control improvement alternatives to improve safety and preserve traffic mobility into the future. In collaboration with project stakeholders a single lane roundabout was recommended and approved by City Council. Alliant began working with the City in the fall of 2022, starting with a concept layout for the single lane roundabout in October. The construction plans were completed in time for an April bid letting. The 7-month delivery from preliminary to final plans enabled the project to make the April 2023 letting. Key Personnel: Nicole Gulick, Eric Plemel, Nick Grage, Dan Ekrem Moose Lake Roundabout Moose Lake, MN Alliant provided accelerated design services with the preparation of a Level 1 layout and final construction documents for all roadway, drainage, erosion control, and construction staging improvements for the construction of a roundabout at the intersection of TH 73 and Carlton County CSAH 10 in Moose Lake, MN. Pavement widening of CSAH 10 for approximately one mile and a new storm water collection and conveyance system were included in this reconstruction contract. In order to meet MnDOT’s original letting date, Alliant delivered an ICE report within three weeks of notice to proceed, and the 90% roundabout design and construction documents within seven weeks of notice to proceed. Alliant did follow their typical design quality management process for the 90% submittal to ensure that the product met our standards. Key Personnel: Nick Turner, Eric Plemel 461 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 8 ROUNDABOUT DESIGN EXPERIENCE MATRIX Alliant has designed numerous roundabouts throughout the state and are ready to deliver this project for you. Project Name Client Location Project Description TH 73/CR 10 in Moose Lake Roundabout MnDOT Moose Lake, MN Single lane roundabout at entrance to City of Moose Lake. Constructed 2018 TH 57/TH 60 Wanamingo Roundabout MnDOT Wanamingo, MN Single lane roundabout on City limits with OSOW and agricultural needs. Constructed 2020 US 2/TH 194 Roundabout and Mill and Overlay MnDOT Saginaw, MN Single lane roundabout at skewed intersection that met OSOW needs. Construct 2023 TH 41/Peavey Rd Roundabout City of Chaska, LS Black (Developer) Chaska, MN 2 x 1 roundabout to accommodate development on TH 41. Construction to be done by developer, Cooperative Agreement between Chaska/MnDOT. Construct 2023 TH 212/TH 15 Brownton Roundabout MnDOT Brownton, MN Single lane OSOW roundabout still in preliminary design. Construction 2024 48th St/Commercial Drive Roundabout City of Rochester Rochester, MN Single lane roundabout with frontage road legs serving commercial businesses. Construction 2023 Bygland/Rhinehart Roundabout Preliminary Design City of East Grand Forks East Grand Forks, MN Numerous concepts and iterations for preliminary design of compact single lane roundabout. Carried forward to Public Meetings. Work Plan/Project Approach TASK 1.0 PROJECT MANAGEMENT Nick Turner has a proactive management style which addresses project needs, delivery schedules, quality management, and direction of his team before issues arise. Nick’s ability to be ahead of design and construction issues comes from his recent project experience where he has served the roles as an urban planner, detailed designer, and construction administrator. This background allows Nick to constantly have an in-depth understanding of the project needs while adapting his communication style for the audience he is communicating with. TASKS ●Administration – Monthly invoices and progress reports as well and staff management to meet deadlines. ●General Coordination – Presence at and facilitation of project meetings. ●Quality Assurance and Quality Control (QA/QC) – Oversight and direction of the quality control process, ensuring it is followed and proper reviews are completed. ●Project Schedule – A detailed schedule will be kept and progress tracked to meet deadlines and communicate with the project team. TASK 2.0 PUBLIC AND STAKEHOLDER ENGAGEMENT Various project meetings are anticipated throughout the design and development of the construction plans. Attendees will vary to ensure appropriate representation. Stephanie Roth’s experience includes planning and managing virtual and in- person meetings, large-scale public events, neighborhood and community-focused gatherings, and open houses for projects across Carver County. Nick Turner will focus more internally to the project team and agency representatives. TASKS ●Project Management Team (PMT) Meetings – After the initial project kick-off meeting, monthly PMT meetings will be held to provide updates on the design progression as well as afford an opportunity to give input into design decisions. ●Public Open House Meetings – Prepare for, plan, and run two public open house meetings – one early on to introduce the project, and a second mid-way through final design. We have a detailed process to verify the success of an event from start to finish. Our team will prepare open house materials including: ■Promotional postcard mailer ■Informational exhibits ■Project layouts ■Project overview handout ■Attendance sheets ■Comment form 462 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 9 ●City Council Meetings – Prepare for and attend two City Council meetings to update City Council members regarding project progress and issues. It is anticipated these meetings would be coordinated with the Public Open houses. ●Agency Coordination Meetings – Plan and lead six additional coordination meetings to inform various agency staff regarding project progress and to solicit feedback regarding project issues. Some of these meetings are assumed to be joint agency meetings with representatives from Carver County, MnDOT, MCES, Minnetonka School District, and MCWD. ●Property Owner Meetings – Hold six individual or small group property owner meetings (homeowners associations, or other) on site or virtual to address concerns and convey design concepts and details. ●Prepare invitations, agendas, materials, and minutes for all meetings. ●Project Webpage – Stephanie and her team will work with city staff to develop a webpage that clearly communicates project goals, purpose, process, schedule, FAQs, community engagement opportunities, and other resources such as key staff. We will deliver project updates to keep target audiences and the community-at-large informed of project progress. Updates will use plain language and graphics to deliver key messages, be Web-ready, and ADA-compliant. OPTIONAL TASKS Public Engagement Plan Our team would collaborate with city staff to create a clear and responsive outreach and engagement strategy to verify that community and agency stakeholders are included in the appropriate project stages. The final Public Engagement Plan would include outreach goals, key messages, processes for content creation and document review, schedule based on key milestones, and team roles and responsibilities. Social Media Campaign We recommend executing a social media strategy to increase project awareness and public open house attendance. We would work with city staff to develop social media content (Twitter and Nextdoor) and up to two ZIP Code targeted paid advertisements (Facebook). We recommend enhancing these ads with eye- catching yet simple animated graphics to help draw people into the project and to communicate the proposed improvements. Pop-Up Event We recommend leveraging a Minnetonka Middle School West student concert or parent-focused activity to share project information with community members who cannot attend an in person public open house. The purpose of the event would be information-sharing only since this is a community-driven project. This is a cost-effective, high impact effort that can reuse open house materials. Staff would set-up in a high trafficked area and be available throughout the school event to answer questions and pass out project handouts. Signage + Print Materials The HDR Strategic Communications team creates visual materials to elevate traditional engagement and communications. Strategically placed signage and displays with a QR code linked to the project webpage allow community members to learn about the project. For example, handouts and brochures in public spaces can help share project plans, schedule, and progress with a broader audience, while sidewalk stickers and yard signs are a great way to increase project awareness in unexpected places. Locations for large or small displays and materials could include: ●Minnetonka Middle School West campus ●Retails areas southwest and north of Highway 41/7 ●Trouvaille Memory Care ●Lake Minnewashta Regional Park and Dog Park ●Chanhassen City Hall STEM Outreach With the project located right outside their front door, there may be opportunities to work with students from the school to engage them in STEM education tied to the project, fostering positive communication and involvement in the project. TASK 3.0 GEOTECHNICAL SERVICES SOLICITATION AND RECOMMENDATION Our team will solicit quotes from at least two geotechnical firms to provide services needed for design. Part of this process will be determining the necessary drilling efforts for the project to determine pavement sections and contamination limits (if applicable). This information will be presented to the City for separate contracting. TASK 4.0 SURVEYING AND MAPPING Design Surveying and Mapping Alliant survey crews will conduct a full topographic survey of the project area creating an existing conditions base map. This base map is heavily based on collected survey data but will be supplemented with available as-built information. The survey will collect information on property corners throughout the corridor. We will produce a certifiable right-of-way base map from this information combined with subdivision plats throughout the corridor. Soil Boring Locations After the selected Geotechnical Service provider completes their drilling activities, our crews will survey the boring locations, ensuring that coordinates are consistent and that the borings can be properly reflected in the construction documents. 463 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 10 TASK 5.0 PUBLIC AND PRIVATE UTILITY COORDINATION Danielle Steeg will be responsible for the utility coordination on the project, from the early stages of mapping through the relocation process. As a designer herself, Danielle can identify conflicts and assist with relocation strategies. Our overall project schedule identifies when we anticipate holding the various utility meetings to correspond with the plan development. TASKS ●Follow current MnDOT Utility Coordination Process. ●Coordinate Gopher State One Call (GSOC) with survey collection ●Develop utility plans and tabulations for inclusion in construction documents ●Coordinate relocations in a timely manner to prevent construction delays or impacts. TASK 6.0 ENVIRONMENTAL INVESTIGATION AND DOCUMENTATION Caroline Miller will lead the efforts to conduct environmental investigations and documentation of process and findings as needed. Any concerns will be discussed and addressed by the project as they apply. TASKS ●Section 4(f) – Review study area for potential impacts and provide mapping. ●Environmental Site Assessments – Perform a limited Phase 1 ESA for all properties within 500 feet of the construction limits. ●Threatened and Endangered Species/Section 7 – Identify and coordinate potential concerns. ●Cultural Resources – Identify and coordinate potential concerns. ●Wetland Determination – Review project area for wetland and identify any areas of concern. TASK 7.0 PRELIMINARY DESIGN AND COST ESTIMATING After a project kick-off meeting, we propose a meeting with GDSU to review the concept and understand any concerns that they have with the design. While we understand that MnDOT is supportive of a roundabout at this location, our experience is that GDSU may push back against the multilane configuration. To streamline the process, we’d like to have those discussions early. Nicole Gulick will be the driver behind the preliminary design and responsible for the roundabout geometry. During the preliminary design phase, it is ideal to address any large project issues and ensure that project stakeholders are in support of the design direction. This phase is better suited for modifications and adjustments to address design conflicts. TASKS ●Traffic Analysis – We anticipate additional traffic analysis will be needed to confirm the capacity/operations and support the lane configurations used in the concept design. (July-August 2023) ●Tunnel/Grade Separated Crossing – With the increased bike and pedestrian traffic near the MMSW, we will investigate if there is an opportunity to provide a grade separated crossing or tunnel. Our evaluation will also provide a high-level cost estimate that can be factored into the feasibility determination. (August 2023) ●Major Utilities – Early utility coordination efforts will reveal significant utilities that are in the project area like the regional interceptor sanitary sewer line (MCES) and transmission gas line (CenterPoint) which could cause delays to the project. MnDOT’s stance is that all utilities should be relocated from under the circle of the roundabout. ●Stormwater Management – We will review the project’s impacts to stormwater management against permitting standards and work with the City, MnDOT, and MCWD to develop a regional solution to address stakeholder requirements. MCWD has an exemption for linear projects that create less than 10,000 sq ft of new impervious area, which may come into play as the concept is refined. ●Geometric Layout Process – The steps below identify the typical process of achieving geometric layout approval through GDSU. If a design is complicated or follows non- traditional design practices, this process could be extended with additional submittals and coordination meetings along the way. The multilane scenario shown in the concept drawing may require validation with the 10-year forecasted volumes, or additional review iterations. ●Concept Refinement/Preliminary Layout (July-September 2023) ●GDSU Preliminary Review (15 days) ●Final Layout (October 2023) ●GDSU Final Review (10-15 days) ●GDSU Approval Our goal is to minimize submittals and coordinate directly with GDSU staff during the process to foster communication and understanding of our design. A cost estimate will be prepared for the final layout. 464 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 11 TASK 8.0 FINAL DESIGN AND COST ESTIMATING After receiving approval of the Geometric Layout, the Alliant Team will advance to final design. Knowing that MnDOT has lengthy review periods (typically 3-4 weeks), it will be important that our team meets our deadlines to keep the project moving forward. Equally as important will be clear direction and timely decisions from the City and other agencies. For each submittal, we will prepare an estimate of the anticipated construction and right-of-way costs with an appropriate contingency. We will also include any special provisions prepared to date to accompany non-standard items. Eric Plemel will be largely responsible for the construction plans and final design, while Nicole Gulick will remain involved at a higher level and also act as a reviewer. In addition to the submittal dates noted below, we have also identified MnDOT review periods on our overall schedule to help illustrate the significant time spent in reviews. DELIVERABLES ●60% Plans, Cost Estimate (November 2023) ●95% Plans, Cost Estimate and Special Provisions (February 2024) ●Signed 100% Plans, Cost Estimate and Special Provisions (April 2024) ●Electronic format of the 3D design files to be provided for the use of the Contractor (May 2024) TASK 9.0 RIGHT-OF-WAY ACQUISITION Throughout the design process, we will assess the grading limits and impacts of construction and determine appropriate temporary and permanent right-of-way needs or easements. Our team will work with the City to manage the acquisition process and provide exhibits and legal descriptions as well as negotiate with property owners. TASKS ●Prepare easement and right-of-way exhibits and legal descriptions ●Generate cost estimates and perform appraisals TASK 10.0 PERMITTING The Alliant Team will identify and prepare any needed permit applications for the project. We have identified some of the permits below but would complete our investigation as we better understand the project impacts. We expect most permitting activities will take place in the winter of 2024 as the plans are being finalized. Permit identification will happen during plan development. ANTICIPATED PERMITS ●Minnehaha Creek Watershed District Stormwater Permit ●NPDES Construction Stormwater Permit TASK 11.0 BIDDING The Alliant Team will serve as the City’s representative during the bidding process, taking the construction plans and carrying it through to a recommendation of award to the City Council. TASKS ●Prepare bid package and post it on QuestCDN. ●Respond to Requests for Information and prepare addenda and clarifications as needed. ●Receive and tabulate bids and draft recommendation of award letter. ●Summarize bid with a breakdown by funding source. Fee A detailed not-to-exceed cost breakdown is provided in Exhibit 3 on page 13. 465 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 12 Task 2023 2024 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct 1.1 Assumed Notice to Proceed Administration1.2 Administration and Schedule Management 3.1 Geotechnical Services Solicitation and Recommendation 2.1 Project Management Team (PMT) Meetings (Monthly) 2.4 Agency Meetings (6) 2.2 City Council Meetings, Public Open House #1 & #2 2.5 Property Owner Meetings (6) 2.6 Project Webpage 11.1 Bidding and Award Environmental6.3 Threatened and Endangered Species/Section 7 6.4 Cultural Resources 6.5 Wetland Delineation 6.1 Section 4(f) 6.2 Phase 1 ESA 10.1 Permitting Design4.1 Design Survey 5.1 GSOC/Utility Mapping 7.1 Concept Refinement/Preliminary Layout 7.2 Traffic Analysis 7.5 Tunnel/Grade Separated Crossing Investigation 5.2 Utility Information Meeting 7.3 Final Layout and Cost Estimate 4.2 Boring locates 8.1 60% Design Plans, Cost Estimate and Special Provisions 5.3 Utility Design Meeting 8.2 95% Design Plans, Cost Estimate and Special Provisions 5.4 Utility Verification Meeting 8.3 100% Design Plans, Cost Estimate and Special Provisions 9.1 Right-of-Way Acquisition 11.1 Construction County/MnDOT/Agency Review Alliant QA/QC Exhibit 2. Schedule 466 Proposal for TH 41 Roundabout at Entrance to Minnetonka Middle School West 13 Exhibit 3. Cost Breakdown Attachment A Staff Hour and Cost Estimate Page 1 of 1 Minneapolis Safe Route to Schools - Lucy Craft Laney School August 2013 TH 41 and MMSW Roundabout Project Manager Principal Senior Engineer Senior Engineer Professional Engineer Grad Engineer Two Person Survey Crew Project Manager Graphic Designer Communicati ons Coordinator Environment al Lead Environment al Planner Environment al Scientist Cultural Resources Wetlands GIS Technician Right of Way Project Manager Right of Way Agent II Right of Way Agent 1 GIS Specialist Project Controller Turner Weser/ Nelson Gulick Plemel/Steeg/ Fortune Becker/ Johnson Carpenter Roth Vang Marusic Miller Allen Spores Koski Lueth Kuntz Kaffar Marthaler Moon Hemlin Treberg 1.0 Project Management 1.1 Administration 16 16 14 1.2 General Coordination 32 2 1.3 Quality Assurance and Quality Control (QA/QC)16 4 1.4 Project Schedule 4 SUBTOTAL TASK 1.0 68 6 0 0 0 0 0 1600000000000014104$17,446.00 2.0 Public and Stakeholder Engagement 2.1 Project Management Team (PMT) Meetings 20 6 18 2.2 Public Open House Meetings (2)6 6 48 32 2.3 City Council Meetings (2)6 2.4 Agency Coordination Meetings (6)12 3 3 2.5 Property Owner Meetings (6)18 2.6 Project Webpage 2 223 SUBTOTAL TASK 2.0 64 0 9 21 0008503500000000000187$25,406.00 3.0 Geotechnical Services Solicitation and Recommendation 3.1 Geotechnical Solicitation 6 4 SUBTOTAL TASK 3.0 6 0 0 4 00000000000000000 10 $1,680.00 4.0 Surveying 4.1 Design Survey 1 4 40 4.2 Soil Boring Locates 1 2 10 SUBTOTAL TASK 4.0 2 0 0 0 6 0 5000000000000000 58$12,140.00 5.0 Public and Private Utility Coordination 5.1 Host Utility Coordination Meetings (x3)3 12 3 5.2 Develop Utility Plans and Tabulations 12 5.3 Utility Relocation Coordination (12 meetings)12 24 12 $7,200.00 SUBTOTAL TASK 5.0 15 0 0 36 15 12000000000000000 78$11,490.00 6.0 Environmental Investigation and Documentation 6.1 Section 4(f)1 24 1 6.2 Phase 1 ESA 1 284 1 6.3 Threatened and Endangered Species/Section 7 1 11 6.4 Cultural Resources 1 42 6.5 Wetland Delineation 1 11 6.6 Preparation of ENM for Level 1 Project 1 12 28 2 2 SUBTOTAL TASK 6.0 6 0 0 0 0000001640462800000 82$10,996.00 7.0 Preliminary Design and Cost Estimating 7.1 Geometric Layout 16 80 8 40 120 7.2 Cost Estimate 2 26 7.3 Tunnel/Grade Separated Crossing Investigation 2 2 10 10 7.4 Stormwater Management Concept 2 2 8 16 7.5 Traffic Analysis 2 20 12 SUBTOTAL TASK 7.0 22 0 86 48 58 146000000000000000360$51,700.00 8.0 Final Design and Cost Estimating 8.1 60% Plans 24 20 60 200 210 8.2 90% Plans 20 8 45 110 170 8.3 100% Plans 8 4 15 30 40 8.4 Cost Estimates 2 2 8 12 16 8.5 Special Provisions 8 4 24 SUBTOTAL TASK 8.0 62 0 38 152 352 4360000000000000001040 $138,880.00 9.0 Right-of-Way Acquisition 9.1 Right of Way Project Management 4 7 24 10 9.2 Field Title Investigation (4 parcels)8 27 9.3 Appraisal/Valuation (4 parcels)24 9.4 Direct Purchase (4 parcels)1 4 79 9.5 Exhibits and Legal Descriptions 16 8 SUBTOTAL TASK 9.0 4 16 0 0 800000000000119154100212$21,905.00 10.0 Permitting 10.1 Prepare and submit permit applications 2 8 SUBTOTAL TASK 10.0 2 0 0 8 00000000000000000 10 $1,560.00 11.0 Bidding and Contractor Selection 11.1 Bidding and Contractor Selection 8 2 4 SUBTOTAL TASK 11.0 8 2 0 0 04000000000000000 14 $2,320.00 Total Staff Hours 259 24 133 269 439 598 50 24 50 35 16 40 4 6 2 8 1 19 154 10 14 2155 ESTIMATED COST Average Hourly Rates $180 $200 $180 $150 $130 $120 $220 $162 $92 $92 $196 $109 $213 $108 $100 $90 $213 $98 $90 $101 $101 Estimated Labor $46,620 $4,800 $23,940 $40,350 $57,070 $71,760 $11,000 $3,888 $4,600 $3,220 $3,136 $4,360 $852 $648 $200 $720 $213 $1,862 $13,860 $1,010 $1,414 $295,523.00 Reimbursables (Mileage, Copying, Deliveries)$10,000.00 SUBTOTAL $305,523.00 TOTAL ESTIMATED COST NOT TO EXCEED $305,523.00 ESTIMATED COST BY TASK Work Task TOTAL HOURS Alliant Engineering, Inc.467 Proposal for Galpin Boulevard Improvements 14 Exhibit 4. Optional Task Cost Breakdown Project Manager Engagement Lead Graphic Designer Communications Coordinator Turner Roth Vang Marusic 2.1 Public Engagement Plan 1 2 8 $1,240.00 2.2 Social Media Campaign 1 1 4 3 $986.00 2.3 Pop-Up Event 4 4 14 $2,656.00 2.4 Signage & Print Materials 2 2 24 10 $3,812.00 SUBTOTAL TASK 2.0 8 9 28 35 80 $8,694.00 Total Staff Hours 8 9 28 35 80 ESTIMATED COST Average Hourly Rates $180 $162 $92 $92 Estimated Labor $1,458 $1,458 $2,576 $3,220 $8,694.00 Reimbursables (Mileage, Copying, Deliveries)$1,250.00 SUBTOTAL $9,944.00 TOTAL ESTIMATED COST NOT TO EXCEED $9,944.00 Optional and Additional Tasks TOTAL HOURS ESTIMATED COST BY TASK 2.0 Public and Stakeholder Engagement 468 TH 41 ROUNDABOUT at Entrance to Minnetonka Middle School West CITY PROJECT NO. 24-05 CITY OF CHANHASSEN 469 Marketing or promotional statements about SRF’s professional services are provided solely for general information and not as a contract commitment. Equal Employment Opportunity / Affirmative Action Employer 3701 Wayzata Boulevard, Suite 100 Minneapolis, MN 55416 763.475.0010 www.srfconsulting.com June 30, 2023 Charlie Howley, PE, LEED AP Public Works Director/City Engineer City of Chanhassen Subject: TH41 Roundabout at Entrance to Minnetonka Middle School West Preliminary Design, Final Design, and Bidding Services City Project No. 24-05 Dear Charlie Howley and Members of the Selection Committee: Chanhassen residents and parents of students attending Minnetonka Middle School West view the intersection of MN Highway 41 and the entrance to the school as a concerning intersection, particularly during school peak periods in the AM and PM. Today, inefficient operations have led to safety concerns around the intersection of MN Highway 41 and MMSW. Future development of adjacent property near the school will lead to increased traffic and additional pressures on the roadway. The safety of students and residents has been the subject of several studies, including a traffic study completed by SRF Consulting Group, which examined roadway operations and potential intersection concepts. SRF appreciates the opportunity to submit this proposal for the TH 41 Roundabout at Minnetonka Middle School West. Our team recognizes the importance of this roundabout to calm traffic, provide safer, more efficient operations for parents, students, staff, and residents using the corridor, and enhance accessibility and mobility in the area. Proven Project Management. With more than 22 years of civil engineering experience, Becky Krugerud will serve as the main point of contact and assume overall responsibility for the SRF team. She managed multiple roundabout projects, including the City West Parkway and the United Health Group roundabout for the City of Eden Prairie and roundabouts in Dakota and Washington counties. Extensive Roundabout Design Experience. SRF is a recognized leader in roundabout analysis, development, and design throughout the Midwest. We have completed more than 100 roundabout projects for counties, cities, and state Departments of Transportation and are MnDOT prequalified. Our team will bring this experience and knowledge to efficiently work through the traffic analysis, design devel- opment, project review, and approval process. Turnkey Process. SRF staff have firsthand knowledge of issues in the project area and significant recent experience with similar projects. Our team’s experience level will enable us to complete all tasks efficiently. We will keep the City of Chanhassen, Minnetonka Public Schools, and the project partners updated on progress and request review/input at crucial decision points. This process will continue through final PS&E approval. An Inclusive Process. Through our interactions with the stakeholder agencies that will be involved in the project, we have an excellent understanding of their common goals and objectives, as well as their core principles, values, and standards. Part of our mission will be to ensure each agency has a seat at the table to facilitate open discussions to help achieve consensus on a path forward, informed by a robust public engagement process. Becky excels at working with public agencies, schools, residents, businesses, and community leaders in an open, inclusive environment. SRF is committed to delivering the management, design, permitting, and construction services for this project that fully meet the Federal/State Aid process requirements. Our collaborative style will keep the City and partnering stakeholders informed of our progress and involved with key reviews to keep the project on track with your budgetary expectations. Our team’s experience, expertise, and commitment to this exciting project will give the City and your partners a success story. We look forward to discussing the project in greater detail with you. If you have questions about our proposal, please contact Becky Krugerud at 763.249.6712 or bkrugerud@srfconsulting.com. Sincerely, Rebecca Krugerud, PE (MN) Mitch Rasmussen, PE (MN) Project Manager Vice President - Civil Design 470 SRF Consulting Group 1 PROJECT UNDERSTANDING Minnetonka Middle School West located in northwest Chanhassen along TH 41 and has a single vehicular access into the school property. The school experiences significant traffic congestion related to the TH 41 access as backups entering/exiting the school property occur. This in turn results in many safety concerns that have been expressed by school officials and families. This intersection has been the subject of a multitude of resident concerns, particularly related to school peak period operations from school-related families and staff in addition to other Chanhassen residents ultimately affected by the access issue. The school offers open enrollment which requires many families to drop- off and pick-up their children at the school during peak times. Many of the open enrollment families charter school buses for off-site drop-offs. This adds to the busing congestion in addition to creating other peak hour hot spots throughout the City which receive complaints. There are also several parents who drop-off/pick-up that are both open enrollment and district residents. Students walking, on bikes, parents driving, and 25+ school buses adds to congestion and functionality of TH 41. Parents of students attempt to avoid the access altogether by dropping off and picking up their children throughout the surrounding area. To understand how potential traffic control changes would impact inter- section capacity and queuing at the TH 41/Minnetonka Middle School West Access intersection, concepts were identified and evaluated. These included a traffic signal and two roundabout concepts. After review of the findings and discussion with project partners, construction of a round- about was determined to be the best long-term solution for this location. Construction of a roundabout is expected to reduce crashes by approxi- mately 30 percent and reduce injury crashes by approximately 70 percent (based on the Highway Safety Manual). In addition, the concept design allows the relocation of the rectangular rapid flashing beacon (RRFB) to the roundabout to enhance pedestrian crossings. By relocating the TH 41 pedestrian crossing from just south of the Chaska Road intersection to the proposed roundabout would significantly improve pedestrian safety by creating a more controlled environment to cross TH 41 as compared to the high-speed mid-block location that currently exists. 471 2SRF Consulting Group ISSUES AND OPPORTUNITIES Minnetonka Minnetonka MiddleMiddle School WestSchool West Trouvaille Memory Trouvaille Memory Care SuitesCare Suites The Chaska Rd intersection looking North along TH 41 toward the TH 7 intersection The existing Rectangular Rapid-Flashing Beacon (RRFB) crossing TH 41 will be removed or relocated as part of this project Force main runs along the west side of TH 41. SRF coordinated utility adjustments and relocations for the TH 41 trail project with owners of gas main, water main, overhead power, and communications. Utility coordination will again be important for this project. Middle School Entrance looking South along TH 41 shows some grades. Design of Roundabout profi les will be important to attempt to reduce impacts to adjacent properties and utilities. Protect force main Potential installation of RRFB Remove/relocate RRFB Cul-de-sac used for drop o and students cut thru yards to school Downhill grades from intersection Chaska RdChaska RdM e l o d y H i l l S t M e l o d y H i l l S t Melody CirMelody CirHazeltine BlvdHazeltine BlvdDonahue DrDonahue DrLake Linden DrLake Linden Dr 109 7 41 LEGEND Proposed Improvements Force main Parcels Wetlands 472 SRF Consulting Group 3 WORK PLAN TASK 1 PROJECT MANAGEMENT Becky Krugerud will actively manage and administer the project and act as the point of contact for all communica- tions between the City of Chanhassen and the SRF Team. Her focus will be on overall quality, keeping the project on schedule and within budget. She will ensure the SRF project team diligently performs work in accordance with approved practices, procedures, and the Quality Management Plan (QMP). Becky will take the lead in maintaining an open dialogue with others to ensure there is a clear understanding of coordination items in areas where work overlaps. Her other duties will include: Coordinate and lead the PMT meetings, agendas, and minutes; Maintain comprehensive project schedule, earned value budget analysis, and deliverables list; Manage review schedules and timeframes amongst agencies; Monthly review of action items list with Charlie Howley, the City’s PM; Provide leadership in collaborating with other agencies, monthly billings and progress reports. Key Deliverables: Monthly project manager teleconference, monthly progress schedule and status reports, scheduling of meetings and locations, coordination of activities with stakeholders, meeting agendas and minutes, materials for all meetings. Quality Assurance and Quality Control (QA/QC) We will implement a team approach to QA/QC for this project. Nathen Will will act as the overall Quality Manager and will lead detailed inde- pendent technical review (ITR) activities. These reviews will occur as shown in the schedule. He will establish a clear process, documented in a project-specific QMP, that the entire design team is aware of and empowered to follow. The QMP outlines the use of interdisciplinary reviews, and individual task-related QA/QC processes to arrive at a quality product. All members performing work on this project are committed to transmitting accurate and quality submittals for every required deliverable for this project. Key Deliverables: QA/QC process documentation. TASK 2 PUBLIC AND STAKEHOLDER ENGAGEMENT Effective and intentional public and stakeholder engage- ment is crucial to building trust and support for this important project. The SRF team led by Mikaela Ziegler will provide expert engagement to keep the public and stakeholders informed and provide diverse opportunities to learn and offer feedback. Mikaela will draw on her extensive roundabout engagement experience and will collaborate with the project team to understand lessons learned from previous stakeholder and community feedback. Project Management Team (PMT) Meetings Mikaela will coordinate PMT meetings with Becky to collaborate with all stakeholders, verify the work plan, and gain consensus on all project requirements. Public Open House Meetings Mikaela will collaborate with the project team to lead two public open house events: • 1st Open House »During the beginning of preliminary design phase »Set the stage for the project »Inform the public where they can find information and provide feedback »Focus on safety • 2nd Open House »End of preliminary design phase »Inform and communicate the design as it moves into the final design phase »Show the public where feedback and safety were incorporated »Inform of the next steps The SRF team will prepare appealing plain language, easy-to-understand materials for the events, and the advertisement of events. Following the events, Mikaela and the team will provide written summaries and comments responses for the project webpage. Added Value – The SRF team can provide a virtual version of the open house materials that can be shared on the project web page for those that cannot attend an in-person event. The materials would mirror the in-person event and provide a feedback portal for questions and comments. Meetings (City Council Meetings, Agency Coordination Meetings, Prop- erty Owner Meetings) Mikaela will coordinate and collaborate with Becky and the project team to provide needed materials and facilitation for City Council Meetings, Agency Coordination Meetings, and Property Owner Meetings. Project Webpage Mikaela and the SRF team will provide updates for the City’s webpage as needed. All materials provided will be accessible and in plain language. OPTIONAL TASK Focused School Outreach - Mikaela and the team can provide focused and targeted outreach and liaison services for MMSW outreach including: • Open house just for parents and staff • Roundabout safety education for students and parents (materials and activities) • Liaison – key contact for school principal or designee Key Deliverables: Meeting materials, webpage content and updates, and two open houses TASK 3 GEOTECHNICAL SERVICES SOLICITATION AND RECOMMENDATION SRF will coordinate with geotechnical firms that we have worked with on previous projects. We will provide a minimum of two recommendations to the City. The quotes will be based on the preferred design to educate 473 SRF Consulting Group 4 the designer for a pavement section, stormwater BMP’s, public utilities if needed and also slope stability or retaining wall recommendations. We will coordinate with the City and MnDOT to ensure that each agency agrees upon the boring locations and piezometers prior to receiving quotes. Key Deliverables: Geotechnical solicitations for the design including maps and survey locations for soil borings and sample locations. TASK 4 SURVEYING Mike Fischer, PLS will oversee our experienced field technicians that will perform the topographical surveys of the project. Accurate right-of-way and parcel mapping and a detailed topographic field survey of the existing conditions is a critical phase of the project. The topo- graphic survey is the basis for the geometric, utility, and hydraulic designs. We will review existing GIS data provided by the City and incorporate pertinent information into a base-map. We will then collect a full topo- graphic survey of the features necessary to support the preliminary and final design. We will create a CAD basemap that depicts the topographical survey and City provided information. Right of way mapping is assumed to utilize GIS linework available through the Carver County source data. Existing utilities along the corridors will be identified by Gopher State One Call and drafted into the basemap. The existing utilities mapping will be shared with utility owners for location confirmation. Key Deliverables: Topographic survey for preliminary and final design, and utility coordination. TASK 5 PUBLIC AND PRIVATE UTIL- ITY COORDINATION Public and private utilities exist within the project area and may be affected depending on the proposed improvements. Careful coordination with both public and private utility owners is important for successful project implementation. SRF will lead the Utility Coordination process including placing a Gopher State One Call (GSOC) for both design and field locates. We will coordinate to collect survey on the field locates. Our approach will follow the step-by-step procedure outlined in the MnDOT Utility Accommo- dation and Coordination Manual. All utility mapping data will be shown on plans and layouts in accordance with the require- ments of the Utility Notification Law. We will tabulate the utility data to identify utility conflicts. Clear communications with utility owners, starting early in the design process will minimize conflicts and avoid future delays during construc- tion. The SRF team is committed to effective utility coordination and has extensive experience coordinating with utilities on a wide range of infrastructure projects. We will prepare materials for utility coordina- tion meetings, obtain and review relocation plans, and provide utility information that meets Quality Level D in the final plans. Key Deliverables: Meeting Documents, Utility conflict resolution matrix, Utility verification letters, Utility verification information only letters, Utility Relocation Plans, Permit reviews, Communications Log, Utility Plans and Specifications. TASK 6 ENVIRONMENTAL INVES- TIGATION AND DOCUMENTATION The environmental documentation will be completed in accordance with the MnDOT Metro’s best practices outlined in the Transportation Project Development Process (TPDP). Documentation will use the Metro’s Trunk Highway Early Notification Memo (ENM) process, which requests environmental review from relevant MnDOT functional groups. ENM review requests will be sent to MnDOT Office of Environmental Stewardship’s (OES) Protected Species Program for threatened and endangered species review, the Cultural Resources Unit (CRU) for historical/cultural review to meet state regulations, and Contaminated Materials Management Team (CMMT) to determine if an environmental site assessment is required. The ENM will also be sent to the Metro Wetland Coordinator to confirm that there are no wetlands in the project area. Because no federal-aid funding is anticipated for the Minnetonka Middle School Access Roundabout Project, environmental review under the National Environmental Policy Act (NEPA ) is not required. SRF has extensive experience preparing environmental documents for MnDOT Metro through the Trunk Highway state project process. We have strong working relationships with MnDOT Metro District and MnDOT Central Office staff, and we know MnDOT Trunk Highway procedures for environmental reviews. SRF knows how to make the environmental review and approval process go smoothly. Key Deliverables: MnDOT Form EDD-1, MnDOT Early Notification Memorandum (ENM) and field verification of wetlands. TASK 7 PRELIMINARY DESIGN AND COST ESTIMATING The SRF Team will refine the roundabout design to minimize impacts to the adjacent properties. Once a final footprint is set, SRF will prepare a geometric layout, including profiles and cross sections, to solicit preliminary approvals from the City of Chanhassen, MnDOT, and permitting agencies. The preliminary design will be suf- ficiently developed to identify right-of-way needs. It is important to note that right-of-way needs are often driven by drainage requirements as well as staging or utility relocation activities. Ken Helvey and his team will work with our drainage designers and construction specialists to identify the actual space needed to build and maintain all aspects of the project and incorporate that space of right-of-way needs. This is often overlooked during preliminary design and leads to challenges late in the project development. Our approach will avoid this challenge. 474 SRF Consulting Group 5 Roundabout Approaches/Geometry SRF proposes that deviation from the existing alignment be kept to a minimum while introducing a slight reverse curve at the entrance to allow for traffic calming and heightened awareness of the changing environment. This design approach allows for the minimization of impacts on the adjacent properties. The roundabout will be designed to accommodate large trucks, buses, and oversized vehicles that may use this intersection. The roundabout will be optimally positioned to operate efficiently while minimizing impacts. Pedestrians, Bicyclists and Transit The accommodation of bicyclists and pedestrians in the roundabout design is critical. The project improvements will greatly improve pedestrian safety and access at the intersection and connect to the adjacent sidewalk and trail. Zach Heimer and our team will design all pedestrian accommodations to meet applicable ADA and PROWAG requirements and match seamlessly with the existing sidewalk. Design Memorandum and Highway Design Standards Form The SRF team has prepared and completed numerous Design Mem- orandums and Highway Design Standards Forms and submitted them along with the geometric layout to MnDOT, documenting design decisions, design speed and any exceptions that may be requested along the corridor. The development of the memo will start early in the project and will utilize the current Template provided on MnDOT edocs. Options developed will follow the Road Design Manual/Facilities Design Guide and the design will balance the uses of the corridor. Drainage Drainage within the project area is a mixture of rural and urban sys- tems. Runoff on TH 41 is collected on the east edge with curb and gutter while the west edge uses a ditch to convey runoff. The MMSW entrance drains down a steep grade towards TH 41 and four catch basins collect water prior to running onto TH 41. The intersection is located at a highpoint and ultimately discharges to Lake Minnewashta, located approximately one half mile to the west. Lake Minnewashta is designated as an impaired water by the Minnesota Pollution Control Agency (MPCA). The first step in the preliminary drainage design will include collec- tion of existing data, including storm sewer and culvert information, drainage areas, and land uses to understand the existing drainage systems and develop a hydraulic model. As roadway alternatives are developed, we will evaluate how each alternative impacts the existing systems and the natural resources within and adjacent to the project. It is anticipated that the new and reconstructed area will exceed 1 acre, which will require stormwater treatment to mitigate water quality and quantity impacts and meet regulatory requirements. It will be important to identify ponding sites early in the design so that soil borings and piezometers can be installed. A complete understanding of the soil types and groundwater elevations at the ponding sites is required to determine infiltration feasibility and BMP type. Based on our experience working on numerous cooperative agreement projects where the project is led by a local agency but the project is within MnDOT right of way, MnDOT will likely require that a separate BMP within their right of way be used to treat runoff from MnDOT right of way. Areas outside of MnDOT right of way would be treated in a separate BMP. All drainage features on TH 41 will be designed to meet Trunk Highway requirements for allowable spread and storm sewer sizing. Dustin Ander- son will work closely with roadway designers to determine roadway grades and facilitate roundabout and ADA drainage. We will document the design in a submittal package to the MnDOT Metro District water resources manager which will include a drainage area map and storm sewer design calculations. Key Deliverables: 30% Staff Approved Layout, and preliminary construction cost estimate. TASK 8 FINAL DESIGN AND COST ESTIMATING SRF will complete the final PS&E for the project following the MnDOT Trunk Highway process. The development of the sequenced plan set, along with the detailed engineer’s estimate, will include a formal submission at 60%, 95%, and 100% milestones. At each submittal milestone, an updated project cost estimate will be provided to ensure proper budgeting for the project is in place. It will be important that the cost estimate takes into account project risks such as staging, detour routes, closure requirements, material types, schedule deadlines, etc. Brandon Maas and his team will engage SRF construction staff to provide a rigorous constructability review, including verifying the construction cost estimate based on reasonable contractor methods. This is a good check against average bid prices, which is normally used. Brandon will oversee the development of cost estimates for design, construction and right of way to help understand and identify the most cost effective design. Our cost estimate will be based on current market trends and available unit price information from MnDOT. The cost estimate, including each agency’s cost splits will be shared with all agencies. 475 SRF Consulting Group 6 During the draft and final plan assembly, Becky will lead regular coordination with the City’s PM to ensure the plan sheet content and presentation conform to the current preferences. Final plan sheets will include the following: • Title Sheet • General Layout • Statement of Estimated Quantities • Soils and Construction Notes • Typical Sections • Standard Plans and Standard Details • Existing Topography, Utility, and Removals • Existing Utility Tabulations • Quantity Tabulations • Staging and detour plan • Alignment Plan and Tabulation • Construction Plan • Miscellaneous Details • Profiles • Public Utility Plans (including any adjustments) • Water Resources Notes, Drain- age Plan, and Tabulation • Erosion Control Plan and SWPPP (if needed) • Storm Sewer Profiles (if needed) • Landscaping Plans and Details • Signing and Pavement Marking Plan • Lighting Plans and Details • Cross Sections Final plans will be submitted in PDF format. SRF proposes to have draft special provisions accompany the 60% submittal in both Microsoft Word and PDF formats. The SRF team will then incorporate any comments. The SRF team will assemble the proposal and bid documents on behalf of the City. Key Deliverables: 60%, 95% and 100% Plans, Special provisions, ADA plan review documents, construction cost estimates. TASK 9 RIGHT OF WAY ACQUISITION SRF’s goal is to provide the City with professional right of way acquisition assistance to complete the TH 41 Right of Way Acquisition Services successfully. We will do so by actively managing the project and working closely with City staff. Our experienced pro- fessionals will proceed without the need for assistance and direction from City personnel, except in those areas where the City wishes to provide direct supervision. SRF will team with DKJ Appraisals in order to complete the 6 appraisals on the affected parcels. And Nolan Appraisals to complete review appraisals. Key Deliverables: Right of Way Exhibits, Legal Descriptions and Appraisals. TASK 10 PERMITTING Our permitting staff will work with regulatory agencies to coordinate the design and ensure that the project meets the required permitting standards. The Project is located within the Minnehaha Creek Watershed District boundary. However, the City of Chanhassen is the permitting authority for erosion control, wetlands, and stormwater management. MnDOT will not obtain permits from Cities and will need to coordinate with the MCWD and the City of Chanhassen to clarify this permitting process. It is anticipated that an NPDES permit will be required because the project will disturb more than one acre. Key Deliverables: Permits to construct the project. TASK 11 BIDDING Zach will lead SRF staff in the preparation of documents to be used in the bid solicitation stage. SRF will work with the City of Chanhassen during this process, so that the necessary documents are prepared and made available to potential bidders. SRF recognizes that City Council meetings dates and agenda preparation must be accommodated as the bidding schedule is set. SRF will be available to answer bidder’s questions and provide clarification and addendums as needed. We will use QuestCDN is an on-line bidding platform to reach contractors and efficiently manage the bidding process. The SRF Team will tabulate and review the bids, and prepare an award recommendation letter for staff to bring before Council for final approval and award. Key Deliverables: Bid tab with summary broken down by funding source, letter of award recommendation. 476 SRF Consulting Group 7 2023 2024 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP PROJECT MANAGEMENT Project Management Administration Internal and External Team Coordination Quality Assurance & Quality Control (see below for milestones) Project Schedule Updates PUBLIC AND STAKEHOLDER ENGAGEMENT Project Management Team Meetings (PMT) Public Open Houses City Council Meetings Agency Coordination Meetings Property Owner Meetings (6 meetings) Project Webpage GEOTECH SERVICES SOLICITATION & RECOMMENDATION Geotechnical Solicitations SURVEYING Design Surveying and Mapping PUBLIC & PRIVATE UTILITY COORDINATION GSOC Utility Confl icts Plan & Tabulation Utility Coordination Meetings ENVIRONMENTAL INVESTIGATION & DOCUMENTATION Environmental Site Assessment Threatened & Endangered Species/Section 7 Cultural Resources Wetland Determination Complete environmental documentation PRELIMINARY DESIGN & COST ESTIMATING Roundabout Justifi cation Report/Intersection Control Evaluation (as needed) Layout (30% Design) QA/QC of Staff Approved Layout & Estimate Submit Staff Approved Layout Stormwater Coordination Submit Cost Estimate Address Agency Comments FINAL DESIGN & COST ESTIMATING 60% Plan Design QA/QC of 60% Plans Submit 60% Plans , Specifi cations & Estimate Address Agency Comments 95% Plan Design QA/QC of 95% Plans Submit 95% Plans, Specifi cations & Estimate Address Agency Comments QA/QC of 100% Plans Submit 100% Plans, Specifi cations & Estimate Address Agency Comments RIGHT OF WAY ACQUISITION Title Research Appraisal Reports and Appraisal Reviews Just Compensation Approval (City) Off ers / Negotiations Petition Preparation File Petition w/Court Hearing on Petition Right of Way Audit Title & Possession - R/W Certifi cate Signed PERMITTING Obtain Permits for Construction BIDDING Project Advertising, Questions & Clarifi cations CONSTRUCTION (BY OTHERS) CONTINUE NEGOTIATIONS 30 DAYS 60 DAYS Project Schedule Update Project Schedule Update PMT Meeting PMT Meeting Public Open House Public Open House City Council Meeting City Council Meeting Agency Coordination Meeting Agency Coordination Meeting U Utility Coordination Meetings Utility Coordination Meetings QC Milestone QC Milestone Project Deliverable Project Deliverable U U PROJECT SCHEDULE 477 SRF Consulting Group 8 KEY PERSONNEL SRF Project Manager Becky Krugerud, PE QA/QC Review Nathen Will, PE Public Engagement Mikaela Ziegler Project Stakeholders • MnDOT • MCES • Minnetonka School District • Minnehaha Creek Watershed District • Chanhassen Businesses & Residents City of Chanhassen Public Works Director / City Engineer Charlie Howley, PE Stormwater Mgmt & Design Dustin Anderson, PE Environmental Jana Guseynova Geotechnical Service Solicitation Zach Heimer, PEDustin Anderson, PE Permitting Dustin Anderson, PE Survey Mike Fischer, PLS Right of Way Ken Helvey Traffi c Design Philip Kulis, PE, PTOE, RSP2Adrian Potter, PE, PTOE Roadway Design – Preliminary Zach Heimer, PE Roadway Design – Final Brandon Maas, PE Bidding Administration Zach Heimer, PE Utility Coordination Jordan Niemeyer BECKY KRUGERUD, PE | PROJECT MANAGER Becky has 22 years of experience designing highway and municipal projects. Her engineering experience includes managing multidisciplinary local, state, and federally funded projects; overseeing the development of preliminary design, final design plans, specifications, contract documents, permits, and construction admin- istration; and coordinating with public and private agencies and utility companies. She is skilled in the design of profiles, alignments, staging and traffic control, estimates, and cross sections and excels at defining and solving complex engineering challenges. Becky also specializes in State and Federal Aid projects involving construction issues and multi-agency coordination. PROJECT EXPERIENCE CSAH 8 (Wentworth Avenue) / CSAH 73 (Oakdale Avenue) Round- about, Dakota County, Minnesota. Becky served as the project manager through preliminary and final design of this federally-funded project consisting of converting an all-way stop-controlled intersection to a single-lane roundabout. Washington County CSAH 15 (Manning Avenue)/TH 96 Roundabout, Minnesota. This project consisted of converting an all-way stop-con- trolled intersection to a single lane-roundabout. Becky served as project manager of this project from concept alternatives through construction. Eden Prairie TH 62/CSAH 61 and TH 212/CSAH 61 Preliminary and Final Design and Construction Administration, Minnesota. These two projects included upgrades to existing interchanges and converted CSAH 61 from a four-lane roadway to a four-lane divided roadway. TMP’s were prepared for both projects. A roundabout was constructed at City West Parkway and the United Health Group entrance to adequately control traffic. The project also added off-road trails to both sides of the roadway. Becky served as project manager of both State Aid Cooperative Agreement projects. These multijurisdictional projects involved representatives from Hennepin County, MnDOT, City of Minnetonka, United Health Group, and City of Eden Prairie. NATHEN WILL, PE | QA/QC REVIEW Nathen manages and designs a variety of municipal, highway, trail and site development projects. He has 28 years of experience in engineering, including project management, feasibility studies, preliminary and final design, coordination with public agencies, and construction administration. Nathen has signif- icant experience with local municipal and State Aid design including projects with complex utility design and construction staging. PROJECT EXPERIENCE Carver County TH 5/25 and CSAH 33 (Reform Street), Minnesota. Nate was the Project Manager, in charge of coordinating with staff from Carver County, MnDOT and the City of Norwood Young America. This project included preliminary and final design plans and construction documents to construct a roundabout and reconstruct a two-lane rural roadway into a two-lane urban roadway with a channelized median, left and right turn lanes, stormwater improvements, and a multi-use trail. Nate coordinated this project with an adjacent MnDOT TH 212 project, which ultimately merged both projects into one “tied” project resulting in joint permits, approvals, and letting schedule. Carver County TH 41/CSAH 18 (Lyman Boulevard), Minnesota. Nate served as the project manager on this County-led project that included traffic studies, analysis of ten alternatives, preliminary and final design, a MnDOT Level 1 layout, extensive utility coordination, and relocation plans, and extensive staging and detour alternatives. The preferred 478 SRF Consulting Group 9 solution included constructing two multi-lane roundabouts and one single-lane roundabout at three intersections along CSAH 18. The use of roundabouts reduced the right of way and parking lot impacts, which reduced the overall project costs to reconstruct the two-lane rural roadway into a multi-lane urban roadway with a multi-use trail. MIKAELA ZIEGLER | PUBLIC ENGAGEMENT Mikaela has led or collaborated on public engagement for over 40 public infrastructure projects from sub- urban roadway reconstruction to urban highway NEPA process assistance. Mikaela is a lifelong resident of the twin cities area and is passionate about bet- tering public infrastructure for those who live here. She works hard to give residents a voice in planning through intentional and inclusive public engagement tailored to the needs of each community. PROJECT EXPERIENCE Anoka County CSAH 35 Roundabout, Anoka County and Fridley, Minnesota. Mikaela worked closely with Anoka County and the City of Fridley to facilitate long-term engagement for the planned roundabout at Old Central and Gardena Avenues. Through the maintenance of the engagement framework over the course of many months, residents had easy access to project updates, potential layouts, and ways to give feedback. Mikaela coordinated open houses from conception to execution with postcard invitation mailings, regular website updates, open house material creation, and post-open house summaries. She tracked and reported survey responses to decision makers, leading to collaborative selection of a roundabout layout. City of Chanhassen Parks Referendum Task Force, Minnesota. Mikaela worked closely with the Chanhassen Director of Parks and Recreation to design and facilitate a task force to help Chanhassen residents plan for the future of their parks. Mikaela led the materials development for the task force, ensuring that force members were actively engaged and encouraged to share thoughts and opinions. As the primary liaison between the city and task force members, Mikaela addressed concerns, shared important information, and sent regular updates and meeting summaries to group members. In addition to successful on-the-ground facilitation, Mikaela also compiled meeting notes and other deliverables for the mayor and city council. ZACH HEIMER, PE | ROADWAY DESIGN – PRELIMINARY, BIDDING ADMINISTRATION & GEOTECHNICAL SERVICE SOLUTION Zach has seven years of experience working as a design engineer in SRF’s Civil Group. Zach’s work focuses on preliminary and final design of municipal and State Aid projects, including developing align- ments, geometrics, profiles, cross sections, staging, traffic control, erosion control, and quantity com- putations. Zach has extensive construction observation experience in grading, base, curb and gutter, concrete and bituminous pavement, bridge construction, pile driving, traffic control, landscaping, and safety. PROJECT EXPERIENCE Dayton Parkway Extension Roundabout, City of Dayton, Minnesota. As a subconsultant, SRF provided the geometric design of a roundabout in the new parkway extension between CR 81 and French Lake Rd. Zach served as lead designer. TH 14 Expansion Design-Build Project, Steele/Dodge County, Minnesota. This project included two roundabouts at the TH 56 and TH 14 grade-separated interchange. Zach’s work included geometric design, 3D-modeling, and Level 1 Layout Development. BRANDON MAAS, PE | ROADWAY DESIGN – FINAL Brandon has 14 years of engineering experience in conceptual through final design on local, county, and DOT facilities. He has designed and managed a large variety of projects ranging from interchanges/ overpasses to roundabouts and very constrained urban projects and has developed a large team of highly skilled designers in just a few years at SRF. Brandon leads projects with a very forthright approach by being overly communicative and proactive with team and agency coordination, working alongside clients and partners to deliver timely and quality products. PROJECT EXPERIENCE Carver County TH 41 and CSAH 18 (Lyman Boulevard) Reconstruction, Minnesota. This challenging project involved reconstructing an existing two-lane roadway and upgrading three signalized intersections to round- abouts. Brandon provided preliminary and final design expertise and was the deputy project manager/lead designer for the reconstruction project which included MnDOT standards and Cooperative Agreement rules. TH 5/TH 25/CSAH 33 (Reform Street) Transportation Study & Recon- struction, Carver County, Minnesota. Brandon provided conceptual, preliminary, and final design expertise and was the deputy project manager/lead designer for the reconstruction project which included MnDOT and State Aid design standards, Local Partnership Program rules, and review by Local, MnDOT, and Federal agencies. Brandon developed several roundabout concepts for a heavily skewed, side street stop-controlled intersection. The preferred alternative of recon- structing the two-lane rural roadway into a two-lane urban roadway with a roundabout and channelized medians/turn lanes was later submitted for grant funding and was successful in procuring LPP and HSIP funds. . JORDAN NIEMEYER | UTILITY COORDINATION Jordan has three years of experience and is well versed in roadway design practices and standards. He has conducted extensive utility mapping, coordi- nation and relocation efforts following MnDOT’s Utility Manual. He knows that early and continuous coordi- nation is imperative to success. PHILIP KULIS, PE, PTOE, RSP2 | TRAFFIC DESIGN Philip has ten years of traffic and transportation engineering experience. His work at SRF primarily focuses on traffic operations analysis, traffic studies, safety analyses, signal optimization, and traffic signal operations. Philip specializes in the analysis of complex transportation issues that includes multimodal traffic operations analysis, roundabouts, unique traffic control, and the interface of the traffic signal controller. He has managed and led traffic analyses for numerous agencies that have effectively assisted stakeholders through the decision-making process and has allowed for informed decisions that resulted in cost-effective solutions to carry traffic. In addition to under- standing the underlying theories and concepts of traffic operations, Philip 479 SRF Consulting Group 10 has pragmatic use of VISSIM, VISTRO, Highway Capacity Software (HCS), Synchro/SimTraffic, ISATe, and IHSDM to perform the traffic analyses. PROJECT EXPERIENCE CSAH 18 Concept Design, Carver County, Minnesota. Lead Analyst- Performed a traffic study for the CSAH 18 corridor. The evaluation included a crash analysis, access inventory, and a traffic operations analysis. The operations analysis included using Synchro and VISSIM to evaluate roundabouts, traffic signals, and side-street stop control, with the ultimate recommendation being to implement roundabouts. The roundabouts for this project would be near capacity and closely spaced, so detailed analysis was completed to understand operations. Heavy freight traffic had a significant impact on operations and impacted the ultimate geometric recommendations. ADRIAN POTTER, PE, PTOE | TRAFFIC DESIGN Adrian has 23 years of experience in traffic and transportation engineering. His responsibilities include roundabouts, pavement marking and signing plan design, signal timing, traffic forecasting, signal justification reports, work zone traffic control design, benefit-cost analysis studies, Intelligent Transportation Systems design, and preparation of plans and estimates for traffic signal systems. Adrian has led traffic engineering design efforts for state Departments of Transportation, cities, and counties on rural and urban roadways. PROJECT EXPERIENCE Blue Earth County TH 22 at CSAH 90 Roundabout, Minnesota. As traffic engineer on this MnDOT led project, Adrian focused on the design of signing and pavement markings, detour signing, and work zone traffic control design for both the roundabout and a 2.5 mile stretch of mill and overlay south of the TH 22/CSAH 90 intersection. The traffic control and detour routes included interaction with a second roadway improvement effort south of this project and had to accommodate the wayfinding needs of several local businesses during construction. JANA GUSEYNOVA | ENVIRONMENTAL Jana’s experience over the last five years includes environmental documentation, traffic noise analysis, cartography, data collection/field work, data man- agement and analysis, and assisting in field wetland delineations. This work has consisted of preparation of federal and state environmental review docu- ments, including specific processes like environmental justice, farmland, floodplains, greenhouse gas analysis, and Section 4(f). Jana brings expertise in developing environmental documents in accordance with the National Environmental Policy Act (NEPA) and state-level environ- mental review processes for transportation projects. PROJECT EXPERIENCE Inver Grove Heights 117th Street Reconstruction, Minnesota. Pre- pared a Categorical Exclusion document for a local roadway recon- struction project. Coordinated with regulatory agencies to complete historical/archaeological and threatened and endangered species review process in accordance with Section 106 of the National Historic Preservation Act and Section 7 Endangered Species Act. Carver County Hwy 212 Benton Township, Minnesota. Prepared a traffic noise analysis and report. Conducted a greenhouse gas analysis. Assisted with preparation of a Categorical Exclusion and a State Environmental Assessment Worksheet (EAW). DUSTIN ANDERSON, PE | GEOTECHNICAL SERVICE SOLUTION, STORMWATER MANAGEMENT AND DESIGN & PERMITTING Dustin has six years of water resources engineering experience working on city municipal roadways, county highways, and state highways. He has performed pre- liminary hydraulic design through final storm sewer design on a wide variety of projects. Dustin is proficient in culvert design, storm sewer design, hydrologic design, hydraulic analysis, and water quality analysis as well as construction plan preparation and review. PROJECT EXPERIENCE TH 41 & CSAH 18 (Lyman Blvd) Reconstruction, Carver County, Minnesota. Dustin was the lead drainage design for this County led project which included reconstructing a two-lane rural roadway to an urban roadway with three roundabouts. This project was located in a tight corridor surrounded by urban industrial developments and large wetland complexes. The adjacent developed properties made proposed stormwater treatment more difficult to meet. Working closely with the CCWMO, biofiltration ditches were proposed to meet the project water quality requirements within the confidence space allowed within the corridor. Dustin also produced detailed hydraulic modeling to confirm fill from the proposed roundabouts/trails would not adversely impact the adjacent wetland hydraulics. From the results of this study, innova- tive in-line check values were used in culverts/storm sewer to prevent adjacent wetland highwater levels from flooding the roadway. At the conclusion on this project, Dustin worked with Carver County Public Works to produce data from the proposed drainage design to detail flow splits between the several entities contributing to project drainage. KEN HELVEY | RIGHT OF WAY Ken leads SRF’s Real Estate Services Group and manages the acquisition, relocation, and appraisal processes for infrastructure, utility, and development projects. Since 1993, he has provided public and private sector clients with project management, acquisition, compilation of information to prepare work files, coordination of appraisals, negotiations with land owners to acquire right of way and settle damages, completion of relocation services, recording of pertinent docu- ments, and closing of files and preparation of closing documents. MICHAEL FISCHER, PLS | SURVEYING Mike has 16 years of land and construction surveying experience. Prior to joining SRF, he worked at firms in both the private and public sector. His previous experience includes proudly serving in the United States Air Force and Wisconsin Army National Guard. His land surveying experience includes topographic, boundary and ALTA/ACSM surveys, section corner restoration, right of way mapping, platting, and legal description analysis and writing. Mike has extensive experience in construction services including grading, paving, sewer, water, and bridge and building staking. 480 SRF Consulting Group 11 PROJECT EXPERIENCE SRF ROUNDABOUTS SRF began recommending roundabouts to clients as an alternative intersection design in the 1980s. Since then, SRF has been involved in more than 100 roundabout projects throughout the Midwest, serving a wide variety of clients such as Counties, Cities, and State DOTs. Our roundabout services have ranged from developing and evaluating concepts to completing preliminary and final engineering design to construction engineering. SRF has worked with local agencies to develop informational and educational materials highlighting the benefits and usage of modern roundabouts. To demonstrate our excellent qualifications, the following abbreviated project matrix highlights projects similar to those proposed here in Chanhassen. These projects have similar scopes of work, including several for which the design and plan preparations is for multiple roundabouts. Client Project Concept Public Involvement Preliminary ICE/RJR Final PS&E Lighting Landscaping Construction Shakopee 12th Ave at Vierling Roundabout         Shakopee Eagle Creek at Vierling Roundabout  Hugo TH 61       Rochester 65th Street at 50th & 55th Aves (2 Roundabouts)       Dodge County CSAH 3/ US 14 (2 Roundabouts + OSOW)        Dodge County CSAH 5/MN 56/ US 14 (2 Roundabouts + OSOW)        Carver County CSAH 44 & TH 212 (3 Roundabouts)         MnDOT I-90 & US 218N (3 Roundabouts)        MnDOT TH 23 & 8th St         Carver County TH 5/25 and CSAH 33 (Reform Street)       Carver County Lyman Boulevard        Dakota County CSAH 8/73 RBT     Washington County CSAH 15 and TH 96     Blue Earth County CSAH 12 at TH 83     MnDOT TH 33 Roundabout - Cloquet      City of St. Cloud 33rd Street South     Cass County County 17 and 52nd Ave        Blue Earth County CSAH 12/TH 14 Interchange   City of Fergus Falls Tower Road    City of Moorhead 28th Avenue    City of Rochester 50th Avenue / Badger Hills    City of Eagan Northwood Parkway Overpass       MnDOT Zachary Lane / TH 610 DB     Maple Grove Zachary Lane N. / 101st Ave.    City of Lakeville Kenrick Ave / 205th St.   Blue Earth County CR 17 Roundabouts     Wright County CSAH 12  St. Louis County Rice Lake Road / Martin Road      City of South St. Paul Wentworth Oakdale Roundabout    Sterns County 33rd Street Roundabout      Stearns County CSAH 1 Roundabout     MnDOT D6 TH 61 and Gilmore Ave  SRF Roundabout Experience - Minnesota updated for Andover Roundabout Proposal 2023 65TH STREET AT 50TH AND 55TH AVENUES (2 ROUNDABOUTS) Rochester, Minnesota The City of Rochester is recon- structing the area of 65th Street NW to accommodate the increased traffic due to the future construction of the new middle school. Improvements include changing the rural road to an urban section City street, widening roads, adding round-a-bouts at 50th Avenue NW and 55th Avenue NW, adding multi-use trails for pedestrians and cyclists, and adding a pedestrian tunnel under the road for the future middle school. Reconstruction of this area will be of public benefit for it will provide safer roadways to accommodate future traffic volumes with the construction of the new middle school and provide safer options for pedestrians and cyclists than is currently available. This design was completed on time in 2022 and was delivered under budget. Construction is ongoing in 2022 and 2023. 481 SRF Consulting Group 12 12TH AVENUE AT VIERLING ROUNDABOUT Shakopee, Minnesota In 2019, the City of Shakopee undertook the reconstruction of 12th Avenue from Vierling Drive to Canterbury Road (CSAH 83) to support ongoing and upcom- ing development in and around Canterbury Park. SRF had pre- viously provided comprehensive traffic analysis for the development and surrounding areas and provided recommendations for the public improve- ments associated with the development. SRF was engaged by the City in 2018 to perform preliminary and final design for the reconstruction of 0.6 miles of roadway. The roadway was designed to change the configuration from a 4-lane undivided roadway to a 4 lane – divided roadway with curb and gutter, sidewalks, and trails. A roundabout was also designed for the intersection of 12th Avenue and Vierling Drive. Lighting, pedestrian/ADA improvements and landscaping was also designed and included in the Construction Documents. The project was coordinated with the private development projects within Canterbury Park as well as the upcoming reconstruction project for CSAH 83 by Scott County. Water improvements and adjustments were designed by the SRF team and coordinated with the Shakopee Public Utility. Following a successful bidding in the Spring of 2019 the SRF provided con- struction staking, administration, observation and coordination throughout the construction season for a project completion in November of 2019. CSAH 13/US 14 (2 ROUNDABOUTS + OSOW) Winona County, Minnesota As a regional transportation center, the City of Winona is a destination for numerous commercial vehicles using US 61. Within Winona, US 61/14 inter- sects Gilmore Avenue, a local collector roadway providing connections to the west and east. The Minnesota Depart- ment of Transportation (MnDOT) and City were challenged with balancing regional mobility for US 61 with local access needs at the Gilmore Avenue intersection and other local roadways. In the study area, US 61 is a four- lane divided highway with a variety of residential and commercial properties, frontage roads, closely spaced intersections with poor geometrics and visibility, and aging traffic signal systems. Also, due to the diagonal nature of US 61, many public roadways intersect US 61 at a skew. SRF worked closely with MnDOT and the City to develop solutions that met stakeholder needs. We thoroughly assessed the US 61/14 and Gilmore Avenue intersection study area to identify possible geometric design alternatives to improve overall safety and efficiency. Subsequently, we evaluated the data, issues and problem areas and identified geometric alternatives that will provide safe and acceptable operations for all modes of transportation in the study area. SRF completed geometric layouts for four alternatives. Two alternatives involved modifying the intersection to improve operations. One alternative considered a roundabout at the intersection and the last considered a new alignment for Gilmore Avenue. All alternatives were presented in a format that met MnDOT Level 2 Layout requirements. SRF also developed study area traffic forecasts for the assumed design year of 2035 and modeled traffic operations of each concept alternative. We worked closely with MnDOT to determine pertinent traffic forecast needs and methodology prior to initiating the work. Synchro/SimTraffic was used to model and evaluate each of the approved geometric layouts under year 2035 design year conditions. COUNTY 17 & 52ND AVENUECass County, Minnesota Cass County retained SRF to prepare design documents and acquire right of way for upgrading a six-mile segment of County High- way 17 near West Fargo. The exist- ing two-lane roadway was suffer- ing from capacity and operational issues as population growth increased traffic demand. The 52nd Avenue intersection posed special challenges due to an offset between the east and west legs, proximity of the Sheyenne River, and nearby private accesses. The design solution needed to accommodate the offset intersection for some time, yet also fit planned future realignment of 52nd Avenue. SRF’s design of a roundabout for this intersection was a simple, elegant solution to these challenges. The roundabout was placed on the ultimate planned alignment of 52nd Avenue and designed to allow conversion from a single-lane to a dou- ble-lane facility as traffic demand warrants. The current alignment of 52nd Avenue is uniquely accommodated by the roundabout design. Geometrics also responded to constraints posed by the adjacent Sheyenne River Bridge, which limited the length of a splitter island. The overall design accommodates design vehicles up to WB-67. CSAH 17 ROUNDABOUT Blue Earth County, Minnesota SRF was retained by Blue Earth County to develop final design plans for four roundabouts along CSAH 17 in Mankato, including developing 3D models, full geometrics, signing and pavement markings, and lighting. SRF also did the traffic analysis and ICE Reports that identified the four roundabouts as the preferred intersection control alternatives. Two of the roundabouts were designed to accommodate future fourth approach legs. The two single-lane roundabouts required special con- sideration due to their proximity to a railroad corridor and a residential development. Each roundabout was designed to accommodate staged construction to maintain existing traffic. County requirements also required that the roundabouts be designed using 3D modeling to facilitate con- struction by machine control methods used by local contractors. SRF’s roundabout design work was integrated into the County’s plan set for reconstructing this four-mile segment of the CSAH 17 corridor. The CSAH 12 roundabout (second image from the top) was located at the intersection of the planned CSAH 12 extension, from CSAH 17 to TH 83. The design included provisions to make easy modifications for this future connection to the south, which was completed in 2018. 482 SRF Consulting Group 13 TH 41 / CSAH 18 (LYMAN BOULEVARD) Carver County, Minnesota The Lyman Boulevard project reconstructed the last segment of three total segments along CSAH 18 (Lyman Boulevard) between TH 41 and CSAH 17 (Powers Boulevard) within the Cities of Chaska and Chanhassen. SRF assisted Carver County with the preliminary and final design for all three segments, which initially started in 2007. In this third segment, SRF prepared a traffic study that examined ten different alternatives. As an innovative idea, SRF proposed constructing three roundabouts along the corridor to minimize costly parcel impacts by reducing the number of turn lanes that would have been necessary with conventional signalized intersections. This study was a key document in bringing multiple agencies together to support the construction of three roundabouts within the half-mile segment of CSAH 18. The upgrades focused on the key interaction of the proposed round- abouts at CSAH 18/TH 41 and CSAH 18/Peavey Road, given the 600-foot spacing between roundabouts, and converted a two-lane rural roadway to a two-lane & four-lane divided urban through the TH 41 and Peavey Road roundabouts. A multi-use trail was constructed along the north side of CSAH 18 that completes a missing segment for multimodal users between the City of Chaska and the City of Chanhassen. SRF assisted Carver County with developing a complex Joint Powers Agreement (JPA) with several variations of cost breakdowns to update all stake- holders, including MnDOT and the Cities of Chaska and Chanhassen. Utility coordination evolved into preparing a joint trench layout for 16 private utility companies and included horizontal design, organizing relocation efforts with a joint trench contractor, and successfully completing relocations prior to construction. SRF also designed two separate watermain supply lines for the City of Chaska involving multi-pressure zoned water systems to improve reliability. SRF also coordinated with MnDOT, the Carver County Watershed Management Organization, and the Cities of Chaska and Chanhassen to improve the stormwater conveyance and treatment within the project area. The County successfully bid on this project in December 2019, and SRF provided construction support, including regular contractor CPM schedule reviews, throughout the construction season. TH 5/25 CSAH 33 (REFORM STREET) RECONSTRUCTION Carver County, Minnesota In 2020, Carver County, through a joint venture with MnDOT and the City of Norwood Young America, is reconstructing the severely skewed intersection at TH 5/25 at CSAH 33 (Reform Street) with a new single lane roundabout. SRF had previously completed a traffic analysis for this intersection which included a comprehensive review of traffic including truck circulation, oversized overweight vehicles and traffic movements to/from the Kwik Trip gas station along TH 5/25 to TH 212. SRF was engaged by the County in 2018 to prepare a MnDOT Level 1 Layout & RJR for the preferred alternative along this heavily traveled truck corridor. A single lane urban roundabout was designed to replace the skewed intersection and was shifted north of the existing inter- section to provide acceptable left-turn lengths along Reform Street. Reform Street, between TH 212 and the roundabout, was designed to change the two-lane rural roadway to a two-lane urban divided roadway with dedicated right and left turn lanes at the intersections of TH 212, 7th Street and the entrance to Kwik Trip. Additionally, lighting, ADA improvements, a multi-use trail, and water and storm sewer improvements were included in the Construction Documents. Concurrent to the County’s project on TH 5/25 at CSAH 33 (Reform Street), MnDOT and Carver County hired SRF to prepare preliminary and final construction plans for a 8-mile mill and overlay project along TH 212 from TH 5 to Cologne, Minnesota that included intersection improvements at the TH 5/25 & TH 212 intersection. SRF worked closely with the project partners (MnDOT, County, City of Norwood Young America, School District and Kwik Trip) to refine the two projects into one cohesive design. These projects ultimately were tied together through MnDOT’s Tied Project policy. In addition to being contracted for preliminary and final design, SRF also prepared supporting information for the County to use with solic- iting funding opportunities. The County successfully received funding from through both the MnDOT Local Partnership Program (LPP) and the FY 2022/2023 Highway Safety Improvement Program (HSIP). After securing funding, the County authorized SRF to provide preliminary and final design, wetland delineation, permitting, utility coordination for the TH 5/25 & CSAH 33 (Reform Street) Reconstruction project. This unique project required the construction plans for both TH 5/25 at CSAH 33 (Reform Street) project and the TH 212 Mill & Overlay project to be considered as “tied projects” resulting in a combined environmental review (CATEX), combined permit applications (WCA, DNR, COE, CCWMO) and a combined review and approval process through MnDOT Central Office. 483 SRF Consulting Group 14 TASK NO.TASK DESCRIPTION PROF. VIII-VII PROF. VI-V PROF. IV PROF. III PROF. II-I TECHNICAL CLERICAL TOTALS EST. FEE 1.0 Project Management 1.1 Administration 18 - - - - - - 18 $3,870.00 1.2 General Project Coordination 25 -18 -14 --57 $9,635.50 1.3 Quality Assurance and Quality Control Functions (QA/QC)8 - 4 - - - - 12 $2,336.00 1.4 Project Schedule 4 - 9 - - - - 13 $2,246.00 SUBTOTAL - TASK 1 55 0 31 0 14 0 0 100 $18,087.50 2.0 Public and Stakeholder Engagement 2.1 PMT meetings PM time associated with theses meetings is included in task 1 12 $1,368.00 2.2 Public Open House Meetings 8 - 8 - 60 20 - 96 $12,292.00 2.3 City Council Meetings 8 - 8 - 2 5 - 23 $3,805.00 2.4 Agency Coordination meetings 6 0 12 - 8 2 - 28 $4,300.00 2.5 Property Owner Meetings 0 - 0 - 2 - - 2 $228.00 2.6 Project Webpage 20 10 SUBTOTAL - TASK 2 22 0 48 0 84 37 0 161 $21,993.00 3.0 Geotechnical Services Solicitation and Recommendation 3.1 Geotechnical Coordination 1 - 6 - 6 - - 13 $1,823.00 SUBTOTAL - TASK 3 1 0 6 0 6 0 0 13 $1,823.00 4.0 Surveying 4.1 Field surveys and boundary information to prepare base plans showing all physical features, private utilities, and public utilities.- 16 - - - 40 - 56 $8,312.00 SUBTOTAL - TASK 4 0 16 0 0 0 40 0 56 $8,312.00 5.0 Public and Private Utility Coordination 5.1 Step 1 - Utility Identifi cation - - - - 6 - - 6 $684.00 5.2 Step 2 - Utility Information Meeting - - 4 - 8 - - 12 $1,528.00 5.3 Step 3 - Utility Information Review - - 2 - 8 - - 10 $1,220.00 5.4 Step 4 - Utility Design Meeting - - 2 - 8 - - 10 $1,220.00 5.5 Step 5 - Request for Utility Relocation Plans - - 4 - 6 - - 10 $1,300.00 5.6 Step 6 - Utility Coordination Follow Up - - 2 - 6 - - 8 $992.00 5.7 Step 7 - Utility Design Change Meeting - - - - - - - - $0.00 5.8 Step 8 - 90 Day Gopher State One Call - - - - 2 - - 2 $228.00 5.9 Step 9 - Utility Relocation Plan Review - - 2 - 6 - - 8 $992.00 SUBTOTAL - TASK 5 0 0 16 0 50 0 0 66 $8,164.00 6.0 Environmental Investigation and Documentation 6.1 MnDOT Form EDD-1 - - 4 12 - - - 16 $2,188.00 6.2 MnDOT Early Notifi cation Memorandum (ENM)- - 4 20 - - - 24 $3,236.00 6.3 Field Verifi cation of no Wetlands - - 2 8 - - - 10 $1,356.00 SUBTOTAL - TASK 6 0 0 10 40 0 0 0 50 $6,780.00 7.0 Preliminary Design and Cost Estimating 7.1 Review previous design reports and provide ICE/RSJ as needed - - 4 - - 10 - 14 $1,866.00 7.2 Develop a preliminary design (30%) and a MnDOT Level 1 Layout that includes including roadway profi les, cross sections, and preliminary construction limits. Identify preliminary right of way and easement needs. 2 - 22 - 62 - - 86 $10,886.00 7.3 Prepare draft MnDOT Level 1 Staff Approved Layout for submittal to Metro Layout Approval Committee (LAC). The layout will include the following:- - 6 - 16 12 - 34 $4,248.00 7.4 Provide for Internal QC review of layout and update layout - - 8 - 4 2 - 14 $1,938.00 7.6 Prepare MnDOT Layout checklist and submit Layout to MnDOT for review.- - 2 - 4 - - 6 $764.00 7.7 Receive comments from the LAC. Log comments and determine comment dispo-sitions. (Assumes 1 set of review comments.)1 - 4 - 4 - - 9 $1 ,287.00 7.8 Revise layout and profi les in response to agency comments and present to Metro District GDSU for MnDOT to review.- - 4 - 6 4 - 14 $1,800.00 7.9 Receive comments from the GDSU. Log comments and determine comment dispositions. (Assumes 1 set of review comments.)1 - 6 - 8 - - 15 $2,051.00 7.10 Revise layout and profi les in response to agency comments and present to Metro District GDSU for MnDOT to review (resubmittal).- - 4 - 8 4 - 16 $2,028.00 7.11 Prepare distribution copies of the layout for fi nal signature approval by LAC and GDSU. (Assume 1 submission to GDSU.)- - 2 - 6 - - 8 $992.00 SUBTOTAL - TASK 7 4 0 62 0 118 32 0 216 $25,994.00 8.0 Final Design and Cost Estimating 60% PLANS 8.1 Develop Pavement Design and Plan Insets based on the following (Assume 1 pavement section for the RAB):- - 4 - 6 - - 10 $1,300.00 8.2 Incorporate the approved geometric layout into the preliminary (60%) construction plans. The plans will include permanent cross sections, selected staged cross sections and construction limits. The construction limits will cover permanent construction, drainage, and will be used to determine the right of way acquisition and permanent and temporary easement needs (assumptions may be needed on staging impacts). 60% plans to include the following sheets: 2 - 20 - 60 20 - 102 $12,850.00 8.3 Prepare the following checklists, guides and exhibits:2 - 4 - 4 - - 10 $1,502.00 8.4 60% Signing & Pavement Marking Design 1 - 6 - 12 - - 19 $2,507.00 8.5 Review of draft 60% roadway plans by QC team (SRF basic review) and perform suggested revisions.2 - 6 - 4 4 - 16 $2,310.00 8.6 Prepare Engineers Opinion of Probable Construction Costs for 60% Design.- - 6 - 12 - - 18 $2,292.00 8.7 Submit 60% Plans and Engineers Opinion of Probable Construction Costs to Client and City of Hugo for review and comment.- - 4 - - - - 4 $616.00 8.8 Prepare 60% submittal package to City for review and comment. Items to be assembled and/or prepared for submittal:1 - 6 - 6 - - 13 $1,823.00 95% PLANS 8.9 Obtain City and MnDOT Metro functional group review comments. Prepare comment tracking form with agency comments. Incorporate comments into revised plan and document responses to comments. - - 4 - 10 2 - 16 $2,006.00 8.10 Prepare plans/TMP for staging based on preliminary staging plans developed in 60% Design.2 - 4 - 24 8 - 38 $4,782.00 8.11 90% Signing & Pavement Marking Design 1 - 4 - 8 - - 13 $1,743.00 8.12 Revise and refi ne plan sheets included in the 60% submittal. Develop a 90% construction plan including updates to or creation of the following:2 - 16 - 48 24 - 90 $11,366.00 COST ESTIMATE 484 SRF Consulting Group 15 COST ESTIMATE TASK NO.TASK DESCRIPTION PROF. VIII-VII PROF. VI-V PROF. IV PROF. III PROF. II-I TECHNICAL CLERICAL TOTALS EST. FEE 8.14 Prepare Engineers Opinion of Probable Construction Costs for 90% Design.- - 4 - 16 - - 20 $2,440.00 8.15 Prepare 90% Special Provisions Division S (Roadway)2 - 10 - 4 - - 16 $2,426.00 8.16 Prepare Special Provisions and attachments to be included in the Developers Bid Package, including:2 - 6 - 6 - - 14 $2,038.00 8.17 Provide for SRF enhanced QC review of draft 90% roadway plans, SEQ, specifi -cations and cost estimate by QC team. Complete Quality Management Process.2 - 4 - 4 - - 10 $1,502.00 8.18 Prepare submittal Package to MnDOT Metro and City of Chanhassen.2 - 4 - 6 - - 12 $1,730.00 100% PLANS 8.19 Obtain City of Chanhassen and MnDOT Metro functional group(s) plan review comments and incorporate necessary revisions into the 100% Construction Plan and Special Provisions. Prepare agency comment tracking log with responses. - - 4 - 6 - - 10 $1,300.00 8.20 Address agency review comments from the 90% submittal. Prepare fi nal 100% PS&E for bid package. 1 - 4 - 16 2 - 23 $2,905.00 8.21 Provide for SRF enhanced QC review of 100% roadway plans, SEQ, specifi cations and cost estimate by QC team. Complete Quality Management Process for inclusion with 100% submittal package. 2 - 4 - - - - 6 $1,046.00 8.22 Prepare submittal Package to MnDOT for review and comment, including:- - 4 - 6 - - 10 $1,300.00 8.23 Obtain fi nal plan review comments from MnDOT and incorporate necessary revisions into the fi nal 100% Construction Plan and Project Manual and resubmit.2 - 4 - 8 - - 14 $1,958.00 8.24 Developer will work with the City of Chanhassen to prepare and submit to MnDOT for Central Offi ce approval, the following:- - - - - - - 0 $0.00 SUBTOTAL - TASK 8 26 0 132 0 266 60 0 484 $63,742.00 9.0 Right of Way Acquisition Recording of documents 9.1 Parcel staking for appraiser (6 parcels)- - - 10 - - - 10 $1,310.00 9.2 Negotiation Activities 5 18 - - 30 35 4 92 $12,876.00 9.3 Parcel Exhibits for 6 parcels - 12 - 6 - - 2 20 $3,410.00 9.4 Legal descriptions for 6 parcels - 12 - 6 - - 2 20 $3,410.00 SUBTOTAL - TASK 9 5 42 0 22 30 35 8 142 $21,006.00 10.0 Permitting 10.1 Obtain permits required for construction - 6 - - 12 4 - 22 $3,110.00 SUBTOTAL - TASK 10 0 6 0 0 12 4 0 22 $3,110.00 11.0 Bidding 11.1 Provide bid tab and assistance during advertisement period - - - 8 - 8 - 16 $2,048.00 SUBTOTAL - TASK 11 0 0 0 8 0 8 0 16 $2,048.00 TOTAL ESTIMATED PERSON-HOURS 113 64 305 70 568 216 8 1,314 AVERAGE HOURLY BILLING RATE $215.00 $207.00 $154.00 $131.00 $114.00 $125.00 $70.00 ESTIMATED LABOR AND OVERHEAD $24,187.50 $13,248.00 $46,970.00 $9,170.00 $64,752.00 $27,000.00 $560.00 $185,887.50 SRF ESTIMATED DIRECT NON-SALARY EXPENSES $444.00 SUBTOTAL: (SRF Labor and Expenses)$186,331.50 SUBCONSULTANTS:$22,200.00 TOTAL ESTIMATED FEE (SRF and Subconsultants combined)$208,531.50 SRF ESTIMATE OF DIRECT NON-SALARY EXPENSES: MILEAGE:Personal Vehicles 400 Miles @ $0.560 $224.00 REPRODUCTION:Copy Duplication 300 Copies @ $0.10 $30.00 PRINTING:$0.00 SUPPLIES:$100.00 COMMUNICATIONS:Mail, Express, Etc. 6 Certifi ed Letters @ $15.00 ea $90.00 SRF EXPENSES:$444.00 SUBCONSULTANTS: DKJ Appraisals 6 Appraisals @ $2,500.00 $15,000.00 Nolan Appraisals (Reviews)6 Reviews @ $800.00 $4,800.00 Expense Land Title 6 O & E Reports @ $400 ea.$2,400.00 SUBCON-SULTANTS:$22,200.00 485 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 1 C ITY OF CHANHASSEN REQUEST FOR PROPOSAL TH41 Roundabout at Entrance to Minnetonka Middle School West Preliminary Design, Final Design, and Bidding Services City Project No. 24-05 PROJECT OVERVIEW The Project is for improvements to the existing intersection at the Minnetonka Middle School West (MMSW) driveway connection with Trunk Highway 41 (TH 41) in Chanhassen, MN. The improvement concept is for construction of a roundabout (Concept Layout included as an attachment). The design and subsequent construction generally consists of removals, grading, paving, storm sewer, pedestrian trails and crossings, stormwater management, street lighting, landscaping, and minor public utility improvements. Additional major responsibilities include, but are not limited to, environmental coordination, surveying, cost estimating, traffic control planning, permitting, right-of-way acquisition, stakeholder engagement, and utility coordination. A GIS screenshot is included as an attachment to this RFP for background information. The City of Chanhassen is issuing this Request for Proposal (RFP) to selected qualified consultants for these Professional Services. Construction Administration and Construction Inspection Services will be solicited upon successful completion of project design, bidding, and funding agreements. All work completed by the successful Consultant shall comply with the procedures, requirements, and regulations of MnDOT, City of Chanhassen, and other state, regional, and local regulatory agencies. PROJECT BACKGROUND This segment of TH 41 is a route of significant importance to the state, county, school district, and cities in the region. Currently, the corridor has poor operations and safety problems at (and near) the intersection with MMSW. The poor operations are primarily due to AM and PM peak time congestion. Additionally, adjacent property is anticipated to be developed which will continue to put pressure on this segment of TH 41. The City of Chanhassen had an Intersection Concept Review Study for the project completed in 2019 (Study included as an attachment). The study evaluated several intersection concepts and recommended implementation of a roundabout at this intersection, which has been supported by MnDOT. In 2020, the City submitted for a MnDOT Metro LPP Grant which was successful in being selected for funding assistance. Ultimately the City had to decline the funding as the School District modified their support for the project and did not commit to any financial support. Since that time the School District has developed an onsite parking lot reconfiguration project (that work is to be constructed in the summer of 2023), which will provide vastly more stacking for passenger vehicles along with more efficient bus loading and maneuvering. As the vehicle queuing was seen by the District as the main cause of the poor intersection operations at TH 41, they are now supportive of the roundabout and has committed to be a funding partner and dedication of right-of-way. The City has once again submitted this project to MnDOT for the current round of LPP funding and is expecting to again be successful. If successful, the 486 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 2 project will likely be fully funded, pending ultimate design and cost estimates. The funding for the Project comes from multiple sources including MnDOT LRIP Funds (via a General Fund Legislative Earmark in 2021), MnDOT LPP Funds (application submitted), City of Chanhassen Funds, and Minnetonka School District Funds. SUMMARY OF WORK TASKS The selected Consultant will be required to complete multiple tasks to fulfill the required design and bidding for the Project. A listing of Project tasks is provided below but is not all inclusive. Attachment 1 provides a more complete description of specific activities for each task. Task 1: Project Management Task 2: Public and Stakeholder Engagement Task 3: Geotechnical Services Solicitation and Recommendation Task 4: Surveying Task 5: Public and Private Utility Coordination Task 6: Environmental Investigation and Documentation Task 7: Preliminary Design and Cost Estimating Task 8: Final Design and Cost Estimating Task 9: Right-of-Way Acquisition Task 10: Permitting Task 11: Bidding INFORMATION TO BE SUPPLIED BY CITY 1. Available As-Builts and GIS shapefiles DESIRED PROJECT SCHEDULE The following schedule demonstrates key milestones in the project process: Anticipated award of contract to successful Consultant ..............July 10, 2023 Preliminary Design complete .......................................................December 2023 Final Design complete .................................................................May 2024 Right-of-Way acquisition complete .............................................May 2024 Letting ..........................................................................................May 2024 Construction start .........................................................................June 2024 Substantial completion .................................................................September 2024 An alternate schedule may be considered which would push construction to the summer of 2025 if design and/or obtaining MnDOT approval is deemed infeasible per the timeframes noted above. In that case, it’s important to note that the project must be awarded, and funding agreements finalized before the LRIP Funding expires on 6/30/2025. 487 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 3 PROPOSAL CONTENT The proposal shall be limited to no more than fifteen (15) 8.5x11 pages. Limited use of 11x17 pages may be used to convey clear presentation of costs and/or schedule. The following will be considered the minimum content of the proposal: 1. A Project understanding section that shows the Consultant’s understanding of the objectives and goals of the Project and the issues in the Project area that will influence the Project development process. 2. An outline of the firm’s background and project staff experience with similar projects. This section shall identify specific projects completed by the firm and the roles that key staff in the proposal performed in the examples. Key staff for the Project will be identified as well as their role in the Project. At a minimum, resumes of key staff shall be included. The project manager assigned to the Project must be specified in the proposal. This individual shall remain as the key point of contact throughout the Project as long as he/she is still employed by the selected firm. No change in other key personnel assigned to the Project will be permitted without the written approval of the City. 3. A detailed work plan, including deliverables, shall be included that identifies the major tasks to be completed as well as a timeline for those tasks. Please identify any optional work tasks in this area as well as in the cost breakdown. 4. A detailed cost breakdown of the tasks to be performed with a breakout of the hours for each employee category (e.g., principals, senior engineers, planners, technicians, etc.) per work task identified. The Consultant will show the hourly rate for each employee category and will also breakout and list any direct expenses. Failure to break out expenses, hours, and rates will result in the disqualification of the proposal. The consultant will indicate any assumptions made (e.g., number of meetings, number of drafts, alternate schedule, etc.) and include this information in the proposal. Total dollar amounts for each work task shall be shown. Total cost for the entire Project should also be included. Any optional work tasks suggested by the Consultant shall be indicated as such and should include the information identified above, but not included in the baseline total cost. CONTACT FOR QUESTIONS Prospective responders who have any questions regarding this RFP or any questions about the proposed Project may call or email: Charlie Howley, PE, LEED AP Public Works Director/City Engineer City of Chanhassen Phone: 952-227-1169 Email: chowley@chanhassenmn.gov 488 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 4 DELIVERY OF PROPOSALS All proposals must be emailed to: chowley@chanhassenmn.gov All proposals must be received no later than 3:00 p.m. (central time) on Friday June 30, 2023. Late proposals will not be considered. The City will not be responsible for any pre-contractual expenses. Pre-contractual expenses are defined as expenses incurred by the Consultant in: 1) preparing its proposal in response to this RFP, 2) submitting that proposal to the City of Chanhassen, 3) negotiating with the City of Chanhassen any matter related to this proposal, or 4) any other expenses incurred by the Consultant prior to the date of execution of the proposed Agreement. PROPOSAL EVALUATION Representatives from the City of Chanhassen will evaluate all responses received by the deadline. In some instances, an interview may be part of the evaluation process. The proposal evaluators will review the submitted RFPs in areas as shown on the table below. The factors and weighting on which proposals will be judged are: 1. Technical competence, expertise and project understanding as demonstrated by the responders expressed proposed project approach and methodology, work plan, and project management techniques. 35% 2. The responders record of past performance on recent projects, including ability to control costs, ability to meet schedules, and quality of work. References must be provided to verify past performance. 10% 3. The availability of personnel and other resources to perform the work within the specified time limit. 10% 4. The qualifications and experience of key personnel. 10% 5. Cost. 35% Proposals will be evaluated and a successful responder will be chosen based on best value (combination of qualifications and cost as measured above). AGENCY NOT OBLIGATED TO COMPLETE PROJECT Issuance of this RFP and receipt of proposals does not commit the City of Chanhassen to award a contract. The City of Chanhassen reserves the right to postpone or cancel the project for its own convenience, to accept or reject any or all proposals received in response to this RFP, to negotiate with other than the selected Consultant should negotiations with the selected be terminated, to negotiate with more than one Consultant simultaneously, or to cancel all or part of this RFP. EXCEPTIONS AND DEVIATIONS The Consultant may include other services outside the scope of this proposal that the firm feels may be needed. The Consultant also may propose cost-saving items. Any exceptions to the requirements in this RFP, including the language in the contractual terms, must be included in the proposal. If the Consultant 489 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 5 proposes changes to the scope of work, include a description, reason for the change and added/deducted engineering costs. Segregate all exceptions as a separate element of the proposal under the heading "Exceptions and Deviations". CONTRACT TERMS AND CONDITIONS The City and Consultant will utilize the City’s Standard Professional Services Agreement (PSA) attached hereto. CLOSING The City thanks you in advance for your consideration of a response and for the time and resources devoted to the preparation of a proposal. We value maintaining and building relationships with design professionals and their firms. 490 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 6 ATTACHMENT 1 – WORK TASK DESCRIPTIONS TASK 1 PROJECT MANAGEMENT 1.1 Administration Administration of the Project will include monthly progress reports, invoicing, contract amendments (if necessary), cost and schedule updates, other non-technical work, communication with necessary Project personnel and all other work to ensure all the Project tasks are completed on time, within budget and in accordance with laws, rules and regulations. Progress reports and invoices will be submitted on a monthly basis. The progress report will show the progress for the month and the progress to date for each task. 1.2 General Coordination General coordination of the Project will include facilitating Project management team meetings, agency coordination meetings, public open house/hearing meetings, utility meetings and any other meetings as required. The Consultant will be responsible for securing locations for all meetings, agendas, and minutes. 1.3 Quality Assurance and Quality Control (QA/QC) The Consultant will perform QA/QC functions for all deliverables throughout the Project duration to ensure delivery of quality products. 1.4 Project Schedule To assist the City and other stakeholders in understanding the project implementation time frame, the Consultant shall prepare and maintain a detailed project schedule. The project manager will be responsible for informing City and other agency staff about key milestones in advance, so that timely decisions, comments, and responses are able to be prepared. The project schedule will be delivered to the project management team on a monthly basis. Deliverables:  Monthly progress and status reports  Monthly schedule updates  Meeting agendas and minutes  Coordinate activities with stakeholders TASK 2 PUBLIC AND STAKEHOLDER ENGAGEMENT Public and stakeholder involvement are important factors in the success of this Project. There are several meeting types that will be conducted as part of this project. The summary below is a guide only, and not meant to fully portray all necessary engagement. In addition to meetings, development of project webpage updates and other stakeholder involvement strategies will be required. 2.1 Project Management Team (PMT) Meetings The Consultant will hold an initial kick-off meeting to confirm with all stakeholders the basic Project objectives, solidify a work plan, and obtain consensus on project requirements. The Consultant will also hold monthly PMT meetings to be held at a City facility. PMT meetings will be held monthly until final design is complete. 491 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 7 2.2 Public Open House Meetings The Consultant will conduct two open house meetings. It is anticipated open houses will be held during the preliminary design process to introduce the Project to the public, and at the approximate mid-point of the final design task to communicate project specifics before finalization of details. The Consultant will be responsible for advertising the open houses, preparing written and display materials, and attending and leading the open houses. Following the public meetings, the Consultant will document and summarize any comments received, and prepare responses to the comments. Comments and responses will be posted on the project webpage. Minimum materials needed for public open house meetings: Layouts, issues map, project schedule, summary of costs, sign-in sheets, and comment cards. Use of electronic materials and documentation is preferred, but not required. 2.3 City Council Meetings The Consultant will prepare for and attend two City Council workshops/meetings to discuss the project with the elected officials. 2.4 Agency Coordination Meetings The Consultant will coordinate with State, regional and local agencies outside of the PMT meetings as needed. These meetings will be used to coordinate information relating to permits, approvals, and other forms of consent beyond the PMT meeting. Six agency meetings should be included in the consultant’s scope. Stakeholder agencies include, but are not limited to MnDOT, MCES, Minnetonka School District, and Minnehaha Creek Watershed District. 2.5 Property Owner Meetings The Consultant will need to attend meetings with property owners adjacent to/affected by the Project area to discuss topics such as right-of-way and other project impacts. It is estimated that six individual meetings will be needed. For these meetings, the Consultant shall provide exhibits and other documents as necessary. 2.6 Project Webpage The city will maintain a project webpage on its website. The Consultant will be responsible for providing updates as needed, with particular information related to schedule, project graphics, notifications, and other project documents. Deliverables:  Materials for all meetings  Project webpage content and updates TASK 3 GEOTECHNICAL SERVICES SOLICITATION AND RECOMMENDATION Subsurface conditions will need to be evaluated and tested for their suitability to support the reconstructed roadway, utilities, and stormwater management. All construction related geotechnical inspection and testing will be solicited outside of this contract, after final design is completed. 3.1 Geotechnical Information The proposed work to be performed by the Consultant consists of determining soil investigation 492 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 8 necessary for design and to solicit quotes from a minimum of two qualified geotechnical firms to perform the soils investigation for design. Soils information generally will be required for pavement design, retaining wall design (if needed), stormwater BMP’s, utility design, and slope stability. The Consultant shall make a recommendation on the geotechnical firm to utilize. The City will contract directly with the geotechnical engineering firm. Deliverables:  Geotechnical Solicitations for design.  Detailed maps and survey locations showing soil boring/sample locations.  Recommendation of Geotechnical Firm. TASK 4 SURVEYING AND MAPPING Currently the only available base mapping is GIS information. A current and accurate field survey of existing conditions is needed including existing right-of-way and easements, topography, physical improvements, and underground utilities. 4.1 Design Surveying and Mapping Complete survey and mapping work as required for design. All private and public utilities shall be located and surveyed. In addition to surveying the project area, the selected Consultant will survey the locations of the soil borings proposed. Deliverables:  Survey and mapping for final design. TASK 5 PUBLIC AND PRIVATE UTILITY COORDINATION 5.1 The Consultant shall utilize and adhere to the MnDOT Utility Coordination Process as detailed in the current MnDOT Utilities Manual. 5.2 Consultant will coordinate Gopher State One Call (GSOC) to obtain utility information for use in survey preparation and design coordination. Gather potential easement information from utility owners. 5.3 Utility plans and tabulations shall be developed. 5.4 Consultant shall coordinate all necessary utility relocations in a timely manner with the goal that construction will not be delayed or otherwise detrimentally impacted due to utility conflicts. Deliverables:  Coordination notices and other documentation required by MnDOT Utility Coordination Process  Utility plans and tabulations  Utility coordination meeting agenda, materials, and minutes TASK 6 ENVIRONMENTAL INVESTIGATION AND DOCUMENTATION This task includes all work necessary to complete environmental investigation and documentation including all necessary approvals for a state funded construction project. The following outlines the minimum 493 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 9 potential environmental concerns for the project: 6.1 Section 4(f) Review Section 4(f) impacts for the study area and map these properties to show the potential impacts to them. 6.2 Environmental Site Assessments Perform a limited corridor Phase I ESA for the project in consideration of ASTM Standard 1527-13, with oversight of a qualified Environmental Professional per the ASTM standard. The intent of the limited corridor Phase I ESA will be to identify to the extent practicable potential sources of contamination (based on present or former land use) on properties that could impact the project. The “project area” for the Phase I ESA includes properties within 500 feet of the construction limits and endpoints. 6.3 Threatened & Endangered Species/Section 7 Coordinate with applicable agencies regarding potential concerns associated with state and federal threatened and endangered species. 6.4 Cultural Resources Coordinate with applicable agencies regarding potential natural and cultural resource concerns and review associated recommendations of additional cultural resource investigations/identification efforts as deemed applicable by relevant statutory guidelines. 6.5 Wetland Determination There is not believed to be any wetlands located withing or immediately adjacent to the anticipated construction limits for this project. The Consultant shall review the project limits for the existence of wetlands, but do not include scope or fee for formal delineations or permitting for impacts. Deliverables:  Environmental Review Documents TASK 7 PRELIMINARY DESIGN AND COST ESTIMATING The project will be designed to meet all MnDOT standards and shall follow typical approval processes for a State-Funded project. Preliminary design will include data collection, analysis, and design development from current concept level through a 30% level. 7.1 The intersection type has already been determined as a roundabout as MnDOT does not support a traffic signal at this location. Any studies or reports, including additional traffic studies if needed, required by MnDOT to document the intersection type, such as a Roundabout Justification Report, Intersection Control Evaluation, etc. shall be prepared by the Consultant. 7.2 Review and refine the current concept layout and obtain approval from MnDOT via a Staff Approved Layout. 7.3 The existing Hawk-style pedestrian crossing just north of the intersection will likely warrant removal while providing for a new activating pedestrian crossing incorporated into the roundabout. The Consultant shall pay particular attention to bike and pedestrian mobility for this project, due to its 494 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 10 proximity to the MMSW. A tunnel or grade separated pedestrian crossing is likely not feasible or warranted at this location, however that concept will need to be vetted to a minimum level to inform an engineered response to stakeholders and the public. 7.4 Stormwater management will be required. It’s the City’s preference for a regional solution to address stormwater. The Consultant shall work with the City, MnDOT, and MCWD to develop options that will meet permitting requirements. 7.5 Other ancillary elements of design shall include lighting, trail connections, and landscaping. Coordination with MCES will be required as there is a regional interceptor sanitary sewer line located within the corridor. This interceptor sewer is to be protected in place and shall not be relocated. 7.6 Submit a spreadsheet of Engineer’s Opinion of Probable Construction Costs, including anticipated right-of-way costs. 7.7 Obtain Agency review comments and update documents as needed, before moving onto Final Design. Deliverables:  All concept and 30% design level plans, reports, studies, etc.  Cost Estimate TASK 8 FINAL DESIGN AND COST ESTIMATING Upon acceptance by the City and MnDOT of 30% Documents, the Consultant shall advance the project into Final Design phase. Construction plans, cost estimates, and design reports shall meet all MnDOT requirements for a State-Funded project. 8.1 Submit plans in electronic (PDF) format for each design stage (60%, 95%, 100%) and make any necessary revisions noted by agency staff. Upon making revisions to the 95% submittal, submit a signed and certified set of final plans for letting. The Consultant will also be required to submit an electronic copy of the project’s 3D design (not utility) files to be used by the construction contractor. The electronic files shall represent all final alignments, profiles, geometry and 3D surfaces of subgrade, grading grade and finished grade as shown in the final construction plans. The final file format for surface models will be in a format acceptable to the City for use in construction activities. 8.2 Submit a spreadsheet of Engineer’s Opinion of Probable Construction Costs with each review submittal. Costs shall include anticipated right-of-way acquisition. 8.3 Create and submit Special Provisions for all unique items in the project that are not covered in the State Standard Specifications for Construction, City General Conditions, and City Standard Specifications. Each provision will contain a description, materials, construction requirements, method of measurement, and basis of payment for each item. Submit a copy of the Special Provisions for review along with the 60%, 95%, and 100% submittals. 8.4 Obtain agency review comments and perform revisions of contract documents. 495 g:\eng\projects\k-o\minnetonka middle school west\minnetonka middle school west - access to th 41\rfp\rfp_th41-mmsw roundabout design services-rev01.docx 11 Deliverables:  All 60%, 95%, 100% design level plans, reports, studies, etc.  Special Provisions  Full set of signed Construction Documents  Cost Estimate TASK 9 RIGHT-OF-WAY ACQUISITION The Consultant shall cooperatively manage the right-of-way acquisition process with the City including negotiating with property owners and obtaining the necessary right-of-way. The Consultant will supply the City with all right-of-way acquisition needs such as drafting necessary easement descriptions and right-of- way exhibits as required. Consultant shall identify all necessary permanent and temporary easements required by the Project. The City Attorney will prepare the legal documents and will handle the recordation as needed. It's anticipated that permanent easement/right-of-way will be required by three properties and that temporary easement from an additional three properties. The Minnetonka School District property has already provided informal approval of the taking without compensation. The two properties west of the roundabout are supportive of the project and are in the preliminary stages of development, and therefore likely will be dedicated. Deliverables:  Easement and right-of -way exhibits and legal descriptions  Cost estimates and/or appraisals, if needed TASK 10 PERMITTING All applicable permits required for the Project will need to be acquired by the Consultant. The Consultant will acquire permits from the Minnehaha Creek Watershed District for general stormwater permitting. The Consultant will also acquire any needed permits from MnDOT, MDH, and MPCA. Other permits may be required by other local, state and federal agencies. Deliverables:  Obtain all necessary permits from Local, Regional, and State Agencies as required TASK 11 BIDDING After MnDOT and the City have approved the Construction Documents, the Consultant will advertise the Project and manage the bidding process including posting on QuestCDN. The Consultant shall answer bidder’s questions and clarifications and draft addendum(s) and any clarifications as necessary. Consultant shall manage the bid opening, tabulate bids, and draft recommendation of award to the City Council. Deliverables:  Bid tab  Bid summary broken down by funding source  Letter of Award Recommendation 496 H:\Projects\13000\13378\Design\Layouts\Preliminary\13378_Layout.dwg : LayoutJob 133785/28/2020 - 10:43AMTH 41 and Minnetonka Middle School West Access Concept LayoutProposed Intersection ReconstructionMNDOTFigure 1497 Intersection Review 1 CARLSON PARKWAY, SUITE 150 | MINNEAPOLIS, MN 55447 | 763.475.0010 | WWW.SRFCONSULTING.COM SRF No. 11376 To:George Bender, PE, Assistant City Engineer City of Chanhassen From:Matt Pacyna, PE, Principal Brent Clark, PE, Senior Engineer Date:Original - October 16, 2018; Updated - December 30, 2019 Subject:MN Highway 41/Minnetonka Middle School West Intersection Concept Review Introduction As requested, SRF reviewed the MN Highway 41/Minnetonka Middle School West intersection in the City of Chanhassen in Fall 2018. This intersection has been the subject of resident concerns, particularly related to school peak period operations. The main objectives of the review are to quantify current operations, evaluate potential intersection concepts, and develop preliminary concepts to understand potential right-of-way implications and costs. The following information summarizes the assumptions, methodology, and findings of the intersection review. Note that since completion of the review in the fall of 2018, recent roadway striping changes and management strategies have been implemented, which are discussed later in this document. Existing Conditions 1) Intersection turning movement counts from October 2015 and June 2018 were provided by the Minnesota Department of Transportation (MnDOT) at the MN Highway 41/Minnetonka Middle School West intersection; school was in session during both counts. a) The West Middle School hours of operations are from 9:15 a.m. to 3:55 p.m.; traffic volumes at the school peak from 8:15 to 9:15 a.m. and 3:45 to 4:45 p.m., primarily near start/end times. b) The June 2018 p.m. counts appear higher than a typical day while the a.m. counts were similar between October 2015 and June 2018; the average of the two turning movement counts from 2015 and 2018 was used for the capacity analysis. 2) Crash history was reviewed between year 2011 and 2015, which represents the most recent five (5) years of crash data available from Minnesota Crash Mapping Analysis Tool (MnCMAT). This included the MN Highway 41/Minnetonka Middle School West intersection, as well as the MN Highway 41/Chaska Road intersection, where there is increased pedestrian activity due to the Rectangular Rapid Flashing Beacon (RRFB). The predominant crash statistics are as follows: a) There was a total of 12 crashes near the Minnetonka Middle School West access during the five (5)-year study period. Two (2) crashes were at the Minnetonka Middle School West access, seven (7) crashes were at the Chaska Road intersection, and three (3) crashes occurred along MN Highway 41 between Chaska Road and the Minnetonka Middle School West access. 498 George Bender, PE, Assistant City Engineer December 30, 2019 MN Highway 41/Minnetonka Middle School West Intersection Concept Review Page 2 b) 12 Total Crashes - eight (8) “property damage” and four (4) “possible injury” c) Minnetonka Middle School West access - one (1) “run-off the road” and one (1) “rear-end” d) Chaska Boulevard RRFB - one (1) “pedestrian-related” crash, with “possible injury” 3) The MN Highway 41/Minnetonka Middle School West intersection currently operates at an overall level of service C (LOS C) during both the school a.m. and p.m. peak hours. However, the Minnetonka Middle School West access approach operates at LOS F during these time periods. a) Southbound left-turn queues extend beyond the existing turn lane storage five (5) to ten (10) percent of the school peak hours. b) Westbound left-turn maneuvers are difficult to complete; the average delay for the westbound left-turn movement is seven (7) to eight (8) minutes during the a.m. and p.m. peak hours; westbound queues currently extend 300 to 450 feet on average. c) Synchro/SimTraffic software (version 9) was utilized to analyze existing intersection capacity; the capacity analysis focused on the school peak, not the peak of MN Highway 41. Concepts To understand how potential traffic control changes would impact intersection capacity and queuing at the MN Highway 41/Minnetonka Middle School West intersection, concepts were identified. These included a traffic signal and two roundabout concepts. The following information provides an overview of the concepts and associated capacity analysis results, while additional level of service and queuing information is summarized in Tables 1 and 2. Preliminary cost information is also included. Traffic Signal Concept 1) Existing traffic volumes do not currently meet any traffic signal warrants at the MN Highway 41/ Minnetonka Middle School West intersection; however, since the westbound left-turn maneuver is difficult, there may be other motorists that are currently avoiding this maneuver. a) For warrant purposes, only the left-turn volume is considered for the minor approach; unless through volumes on the mainline are high enough to include a portion of right-turns; traffic volumes on MN Highway 41 are not high enough to justify including the right-turns. b) If a traffic signal were installed at the intersection, it is expected that a portion of motorists currently making a westbound right-turn maneuver would divert to make a left-turn maneuver. If 50 percent of motorists currently making a right-turn divert to the left-turn, the intersection would be expected to meet the peak hour warrant criteria; no other signal warrants are expected to be met. 499 George Bender, PE, Assistant City Engineer December 30, 2019 MN Highway 41/Minnetonka Middle School West Intersection Concept Review Page 3 2) The MN Highway 41/Minnetonka Middle School West intersection, assuming a traffic signal was installed and no other turn lane changes, would be expected to operate at an overall LOS B during the school a.m. and p.m. peak hours. a) A traffic signal would reduce the average westbound delay for motorists exiting the Minnetonka Middle School West access onto MN Highway 41 by approximately one (1) to two (2) minutes. b) Southbound left-turn queues along Mn Highway 41 would be expected to extend beyond the existing turn lane storage approximately 25 to 35 percent of the peak hour during the school peak periods, although this turn lane could be restriped to avoid impacts to the through lane; MN Highway 41 queues would be expected to extend 300 feet or greater. 3) If a traffic signal is installed, restriping MN Highway 41 to provide additional turn lane storage should be considered; additionally, the RRFB at the Chaska Boulevard intersection may be removed since the signal will provide a reliable pedestrian crossing. 4) The planning level construction cost estimate to implement a traffic signal is $350,000. Roundabout Concepts Two roundabout concepts were evaluated, which are illustrated in Figures 1 and 2. The primary difference between the two concepts are related to how the concepts tie into the adjacent roadway network. The first roundabout concept illustrates how a hybrid roundabout configuration would tie into the existing roadway network, while the second roundabout concept illustrates how a hybrid roundabout configuration would tie into a future 4-lane facility along MN Highway 41. The overall roundabout footprint does not change between these two roundabout concepts, rather the lane designations are the primary difference. The following information provides a summary of the two roundabout concepts, associated capacity analysis, and preliminary cost estimate. 1) Roundabout Concept 1 (see Figure 1) would be expected to operate at an overall LOS B during the school a.m. peak hour and an overall LOS C during the school p.m. peak hour. a) Queues in the northbound shared thru/left-turn lane along Mn Highway 41 are expected to extend approximately 450 feet during the school p.m. peak hour. 2) Roundabout Concept 2 (see Figure 1) would be expected to operate at an overall LOS A during both the school a.m. and p.m. peak hours. a) Northbound queues along Mn Highway 41 would be expected to be 100 feet or less during both the school a.m. and p.m. peak hours. 3) The planning level construction costs of both roundabout concepts is estimated to be $1,400,000, which includes potential right-of-way costs associated with the approximate 12,500 square feet of right-of-way needed. 500 George Bender, PE, Assistant City Engineer December 30, 2019 MN Highway 41/Minnetonka Middle School West Intersection Concept Review Page 4 The following information provides an overview of the capacity analysis results, which identify level of service and queuing for each concept. Level of Service (LOS) indicates how well an intersection is operating. Intersections are graded from LOS A through F, where LOS A indicates the best traffic operation and LOS F indicates an intersection where demand exceeds capacity. Overall intersection LOS A through D is considered acceptable based on MnDOT guidelines. Table 1 – MN Highway 41/Minnetonka Middle School West Intersection Capacity Analysis Level of Service (Delay) School A.M. Peak Hour School P.M. Peak HourCondition/Concept Overall Intersection Middle School Approach Overall Intersection Middle School Approach Existing Conditions C (16 sec)F (75 sec)*C (19 sec)F (150 sec)* Traffic Signal Concept B (18 sec)C (25 sec)B (18 sec)D (36 sec) Roundabout Concept 1**B (12 sec)B (14 sec)C (20 sec)B (14 sec) Roundabout Concept 2**A (9 sec)B (13 sec)A (8 sec)B (13 sec) * The average delay for the westbound left-turn maneuver is seven (7) to eight (8) minutes during the a.m. and p.m. peak hours. ** The roundabout capacity analysis results are based on the Highway Capacity Software (HCS 7). Table 2 – MN Highway 41/Minnetonka Middle School West Intersection Queuing Summary 95th Percentile Queue (feet) School A.M. Peak Hour School P.M. Peak hourCondition/Concept NBT SBT SBL WBL WBR NBT SBT SBL WBL WBR Existing Conditions --165 350 200 --120 420 200 Traffic Signal Concept 325 325 225 75 225 375 235 185 100 185 Roundabout Concept 1 200 70 60 10 100 450 50 50 15 60 Roundabout Concept 2 75 70 55 10 85 85 50 50 15 50 * Highlighted areas identify queues that exceed 300 feet. Update Since completion of the analysis in the Fall of 2018, MnDOT has implemented striping changes along Mn Highway 41 to increase the southbound left-turn lane length into the school, as well as to reduce the number of southbound travel lanes at the pedestrian crossing near Chaska Road. The School has also modified their management strategy, now requiring all exiting motorists during the morning and afternoon peak periods to make a right-turn maneuver out of the site and travel north along Mn Highway 41. However, these strategies and improvements are considered short-term changes and there are cooperative plans to pursue additional funding sources to implement a long-term solution at this location. 501 NORTHNorth0011376 October 2018 Roundabout Concept 1 MN Highway 41/Minnetonka Middle school West Intersection Concept Review City of Chanhassen Figure 1H:\Projects\11000\11376\TS\Figures\Fig01_Roundabout Concept 1.cdr502 NORTHNorth0011376 October 2018 Roundabout Concept 2 MN Highway 41/Minnetonka Middle school West Intersection Concept Review City of Chanhassen Figure 2H:\Projects\11000\11376\TS\Figures\Fig02_Roundabout Concept 2.cdr503 Lege nd Se wer W ire Bo x C ity S e w er M an ho le s Pri v at e S ew er M an ho les Pla nn ed Se we r M a nh ole s C ity S e w er S y st em Va lv e s Pri v at e S ew er S ys tem Va lv es Pla nn ed Se we r Sy s t e m Valve s C ity S e w er F i tt in g s Pri vate S ew er F i tt in gs Pla nn ed Se we r Fitting s C ity S e w er C lea n O ut s Pri vate S ew er C l ea n O ut s Pla nn ed Se we r C le an Ou ts MCE S S tr u ct u r es M an ho le Oth er Cit y S ew e r N e tw o rk S tru c tu res Lift Statio n Pr iva te S e we r N et wo rk St ru ctur e s Lift Statio n Pl an n ed S ew er Ne tw or k S tr uc tur es Lift Statio n C it y S e w er P re s s ur iz ed Ma ins Pri vate S ew er P re s sur ized Mai ns Pla nn ed Se we r Pr ess u riz e d M a in s June 14, 2023 Ma p P owered B y Data Link 1 in = 188 ft ± 504 1 201749v1 PROFESSIONAL SERVICES AGREEMENT AGREEMENT made this ________ day of ___________________, 20__, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") and __________________________________________ "Consultant"). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. SCOPE OF SERVICES. The City retains Consultant for_____________________. 2. CONTRACT DOCUMENTS. The following documents shall be referred to as the "Contract Documents," all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Professional Services Agreement; B. Request for quote – __________________ dated ______, 20___; C. Insurance Certificate; D. Consultant’s ______, 20___ proposal for___________________ (“Proposal”). In the event of conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts, with Contract Document “A” having the first priority and Contract Document “D” having the last priority. 3. COMPENSATION. Consultant shall be paid by the City for the services described in the Proposal a not to exceed fee of __________________ Dollars ($_____, inclusive of expenses. Services performed directly by Consultant shall be paid at an hourly rate in accordance with the Proposal, subject to the not to exceed fee. The not to exceed fees and expenses shall not be adjusted if the estimated hours to perform a task, the number of required meetings, or any other estimate or assumption is exceeded. Consultant shall bill the City as the work progresses. Payment shall be made by the City within thirty-five (35) days of receipt of an invoice. 4. DOCUMENT OWNERSHIP. All reports, plans, models, diagrams, analyses, and information generated in connection with performance of this Agreement shall be the property of the City. The City may use the information for its purposes. 5. CHANGE ORDERS. All change orders, regardless of amount, must be approved in advance and in writing by the City. No payment will be due or made for work done in advance of such approval. 505 2 201749v1 6. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Consultant shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. 7. STANDARD OF CARE. Consultant shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional consultant under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficien cies in the accuracy of Consultant’s services. 8. INDEMNIFICATION. Consultant shall indemnify and hold harmless the City, its officers, agents, and employees, of and from any and all claims, demands, actions, causes of action, including costs and attorney's fees, arising out of or by reason of the execution or performance of the services provided for herein and further agrees to defend at its sole cost and expense any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising hereunder. 9. INSURANCE. Consultant shall secure and maintain such insurance as will protect Consultant from claims under the Worker’s Compensation Acts, automobile liability, and from claims for bodily injury, death, or property damage which may arise from the performance of services under this Agreement. Such insurance shall be written for amounts not less than: Commercial General Liability $2,000,000 each occurrence/aggregate Automobile Liability $2,000,000 combined single limit Professional Liability $2,000,000 each occurrence/aggregate The City shall be named as an additional insured on the general liability policy on a primary and non- contributory basis. Before commencing work, the Consultant shall provide the City a certificate of insurance evidencing the required insurance coverage in a form acceptable to City. 10. INDEPENDENT CONTRACTOR. The City hereby retains Consultant as an independent contractor upon the terms and conditions set forth in this Agreement. Consultant is not an employee of the City and is free to contract with other entities as provided herein. Consultant shall be responsible for selecting the means and methods of performing the work. Consultant shall furnish any and all supplies, equipment, and incidentals necessary for Consultant’s performance under this Agreement. City and Consultant agree that Consultant shall not at any time or in any manner represent that Consultant or any of Consultant's agents or employees are in any manner agents or employees of the City. Consultant shall be exclusively responsible under this Agreement for Consultant’s own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 506 3 201749v1 11. SUBCONTRACTORS. Consultant shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Consultant shall comply with Minnesota Statutes § 471.425. Consultant must pay subcontractors for all undisputed services provided by subcontractors within ten (10) days of Consultant’s receipt of payment from City. Consultant must pay interest of one and five-tenths percent (1.5%) per month or any part of a month to subcontractors on any undisputed amount not paid on time to subcontractors. The minimum monthly interest penalty payment for an unpaid balance of One Hundred Dollars ($100.00) or more is Ten Dollars ($10.00). 12. CONTROLLING LAW/VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Carver County Minnesota. 13. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Consultant must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Consultant pursuant to this Agreement. Consultant is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Consultant receives a request to release data, Consultant must immediately notify City. City will give Consultant instructions concerning the release of the data to the requesting party before the data is released. Consultant agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Consultant’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 14. COPYRIGHT. Consultant shall defend actions or claims charging infringement of any copyright or software license by reason of the use or adoption of any software, designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting therefrom. 15. PATENTED DEVICES, MATERIALS AND PROCESSES. If the Contract requires, or the Consultant desires, the use of any design, devise, material or process covered by letters, patent or copyright, trademark or trade name, the Consultant shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the City. If no such agreement is made or filed as noted, the Consultant shall indemnify and hold harmless the City from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the services agreed to be performed under the Contract, and shall indemnify and defend the City for any costs, liability, expenses and attorney's fees that result from any such infringement. 507 4 201749v1 16. RECORDS. Consultant shall maintain complete and accurate records of hours worked and expenses involved in the performance of services. 17. ASSIGNMENT. Neither party shall assign this Agreement, or any interest arising herein, without the written consent of the other party. 18. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 19. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof, as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 20. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Consultant. In the event of termination, the City shall be obligated to the Consultant for payment of amounts due and owing including pa yment for services performed or furnished to the date and time of termination. Dated: _______________, 20__. CITY OF CHANHASSEN BY: _____________________________________________ Elise Ryan, Mayor BY: _____________________________________________ Laurie Hokkanen, City Manager Dated: _______________, 20__. _______________________ BY: _____________________________________________ Its 508 1 PROFESSIONAL SERVICES AGREEMENT - Chan_SRF_MMSW Roundabout201749v1 PROFESSIONAL SERVICES AGREEMENT AGREEMENT made this ________ day of July, 2023, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") and SRF Consulting Group, Inc. ("Consultant"). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. SCOPE OF SERVICES. The City retains Consultant for design services related to the proposed MMSW roundabout. Reference attached RFP and Proposal for the detailed Scope of Work. 2. CONTRACT DOCUMENTS. The following documents shall be referred to as the "Contract Documents," all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Professional Services Agreement; B. Request for Proposals dated June 14, 2023; C. Consultant’s Proposal dated June 30, 2023 for Design and Bidding Services for TH 41 Roundabout at Entrance to Minnetonka Middle School West (“Proposal”). In the event of conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts, with Contract Document “A” having the first priority and Contract Document “C” having the last priority. 3. COMPENSATION. Consultant shall be paid by the City for the services described in the Proposal a not to exceed fee of Two Hundred Eight-Thousand Five-Hundred Thirty One Dollars and Fifty Cents ($208,531.50), inclusive of expenses. Services performed directly by Consultant shall be paid at an hourly rate in accordance with the Proposal, subject to the not to exceed fee. The not to exceed fees and expenses shall not be adjusted if the estimated hours to perform a task, the number of required meetings, or any other estimate or assumption is exceeded. Consultant shall bill the City as the work progresses. Payment shall be made by the City within thirty-five (35) days of receipt of an invoice. 4. DOCUMENT OWNERSHIP. All reports, plans, models, diagrams, analyses, and information generated in connection with performance of this Agreement shall be the property of the City upon payment by the City to Consultant of invoiced amounts pertaining thereto. The City may use the information for its purposes. The City acknowledges that any other use, reuse, or 509 2 PROFESSIONAL SERVICES AGREEMENT - Chan_SRF_MMSW Roundabout201749v1 modifications of Consultant's documents by the City without written verification or adaptation by Consultant will be done at the City's sole risk and without liability or legal exposure to Consultant. Notwithstanding Article 4 above, Consultant’s proprietary information, including without limitation, work papers, drawings, specifications, processes, procedures, software, interim or draft documents, methodologies, know-how, software and other instruments of service belonging to or licensed by Consultant and used to develop the Work Product ("Consultant Data"), shall remain the sole property of Consultant. To the extent the Deliverables contain or require the use of Consultant Data, Consultant hereby grants to the City, upon proper payment for the Services, a non-exclusive, non-transferable and royalty-free license to use such Consultant Data solely for the purposes for which the Deliverables were developed. 5. CHANGE ORDERS. All change orders, regardless of amount, must be approved in advance and in writing by the City. No payment will be due or made for work done in advance of such approval. 6. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Consultant shall abide by all applicable statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. 7. STANDARD OF CARE. Consultant shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional consultant under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Consultant’s services. 8. INDEMNIFICATION. To the fullest extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, , and employees from liability, , damages, costs, or expenses, including reasonable attorneys' fees, but only to the extent caused by the negligent or otherwise wrongful act or omission of Consultant in the performance of the services provided by this Agreement and against all loss by reason of the failure of Consultant to perform its obligations under this Agreement. 9. INSURANCE. Consultant shall secure and maintain such insurance as will protect Consultant from claims under the Worker’s Compensation Acts, automobile liability, and from claims for bodily injury, death, or property damage which may arise from the performance of services under this Agreement. Such insurance shall be written for amounts not less than: Commercial General Liability $2,000,000 each occurrence/aggregate Automobile Liability $2,000,000 combined single limit Professional Liability $2,000,000 each claim/aggregate 510 3 PROFESSIONAL SERVICES AGREEMENT - Chan_SRF_MMSW Roundabout201749v1 Umbrella/Excess Liability Insurance may be used to supplement Consultant’s policy limits to satisfy the full policy limits required by this Agreement. The City shall be named as an additional insured on the general liability policy on a primary and non- contributory basis. Before commencing work, the Consultant shall provide the City a certificate of insurance evidencing the required insurance coverage in a form acceptable to City. 10. INDEPENDENT CONTRACTOR. The City hereby retains Consultant as an independent contractor upon the terms and conditions set forth in this Agreement. Consultant is not an employee of the City and is free to contract with other entities as provided herein. Consultant shall be responsible for selecting the means and methods of performing the work. Consultant shall furnish any and all supplies, equipment, and incidentals necessary for Consultant’s performance under this Agreement. City and Consultant agree that Consultant shall not at any time or in any manner represent that Consultant or any of Consultant's agents or employees are in any manner agents or employees of the City. Consultant shall be exclusively responsible under this Agreement for Consultant’s own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 11. SUBCONTRACTORS. Consultant shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Consultant shall comply with Minnesota Statutes § 471.425. Consultant must pay subcontractors for all undisputed services provided by subcontractors within ten (10) days of Consultant’s receipt of payment from City. Consultant must pay interest of one and five-tenths percent (1.5%) per month or any part of a month to subcontractors on any undisputed amount not paid on time to subcontractors. The minimum monthly interest penalty payment for an unpaid balance of One Hundred Dollars ($100.00) or more is Ten Dollars ($10.00). 12. CONTROLLING LAW/VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Carver County Minnesota. 13. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Consultant must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Consultant pursuant to this Agreement. Consultant is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Consultant receives a request to release data, Consultant must immediately notify City. City will give Consultant instructions concerning the release of the data to the requesting party before the data is released. Consultant agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Consultant’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or 511 4 PROFESSIONAL SERVICES AGREEMENT - Chan_SRF_MMSW Roundabout201749v1 subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 14. COPYRIGHT. Consultant shall defend actions or claims charging infringement of any copyright or software license by reason of the use or adoption of any software, designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting therefrom. 15. PATENTED DEVICES, MATERIALS AND PROCESSES. If the Contract requires, or the Consultant desires, the use of any design, devise, material or process covered by letters, patent or copyright, trademark or trade name, the Consultant shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the City. If no such agreement is made or filed as noted, the Consultant shall indemnify and hold harmless the City from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the services agreed to be performed under the Contract, and shall indemnify and defend the City for any costs, liability, expenses and attorney's fees that result from any such infringement. 16. RECORDS. Consultant shall maintain complete and accurate records of hours worked and expenses involved in the performance of services. 17. ASSIGNMENT. Neither party shall assign this Agreement, or any interest arising herein, without the written consent of the other party. 18. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 19. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof, as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 20. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Consultant. In the event of termination, the City shall be obligated to the Consultant for payment of amounts due and owing including payment for services performed or furnished to the date and time of termination. 512 5 PROFESSIONAL SERVICES AGREEMENT - Chan_SRF_MMSW Roundabout201749v1 Dated: _______________, 2023. CITY OF CHANHASSEN BY: _____________________________________________ Elise Ryan, Mayor BY: _____________________________________________ Laurie Hokkanen, City Manager Dated: _______________, 2023. SRF CONSULTING GROUP, Inc. BY: _____________________________________________ Its 513 City Council Item July 17, 2023 Item Consider a request for a Site Plan approval to build an indoor Pickleball facility and outdoor courts for property located at 2970 Water Tower Place, Life Time Fitness, Inc. File No.Planning Case 23-13 Item No: G.1 Agenda Section GENERAL BUSINESS Prepared By Eric Maass, Planning Director Reviewed By Eric Maass SUGGESTED ACTION "The Chanhassen City Council approves the proposed Site Plan to build the proposed indoor Pickleball facility and outdoor courts for property located at 2970 Water Tower Place subject to the conditions of approval and Adopts the Findings of Fact and Recommendation." Motion Type Simple Majority Vote of members present Strategic Priority Development & Redevelopment SUMMARY The applicant is requesting site plan approval for the construction of a 25,410-square-foot building for the use of indoor pickleball courts and associated amenities, as well as the construction of outdoor pickleball courts. BACKGROUND The site is currently used for an outdoor fitness facility and is within the Life Time Fitness campus. DISCUSSION The applicant is requesting site plan approval to construct a 25,410-square-foot indoor pickleball 514 facility as well as outdoor pickleball courts. The facility will utilize shared parking with the adjacent corporate office building as well as the larger Life Time Fitness Club and corporate buildings. The proposed development meets the requirements of the site plan review subject to revisions to the plan outlined in the staff report. BUDGET RECOMMENDATION Staff and the Planning Commission recommend approval of the site plan for the proposed Life Time Pickleball facility and outdoor courts and recommend adopting the attached findings of fact. ATTACHMENTS Application for Development Review Project Narrative Architectural Elevations Dated June 16, 2023 Life Time Pickleball Updated Site Plan dated June 15, 2023 Plans Dated May 19, 2023 - Life Time Pickleball Life Time Pickleball Staff Report - Planning Life Time Pickleball Staff Report - Engineering and Water Resources Traffic Review Memo dated May 19, 2023 Findings of Fact Life Time Pickleball Affidavit of Mailing - Life Time Pickleball 515 COMMUNITY DEVELOPMENT DEPARTMENT Planning Division – 7700 Market Boulevard Mailing Address – P.O. Box 147, Chanhassen, MN 55317 Phone: (952) 227-1100 / Fax: (952) 227-1110 APPLICATION FOR DEVELOPMENT REVIEW Submittal Date: PC Date: CC Date: 60-Day Review Date: Section 1: Application Type (check all that apply) (Refer to the appropriate Application Checklist for required submittal information that must accompany this application) Comprehensive Plan Amendment ......................... $600 Conditional Use Permit (CUP) Single-Family Residence ................................ $325 All Others......................................................... $500 Interim Use Permit (IUP) In conjunction with Single-Family Residence .. $325 All Others......................................................... $500 Rezoning (REZ) Planned Unit Development (PUD) .................. $750 Minor Amendment to existing PUD ................. $100 All Others......................................................... $500 Sign Plan Review ................................................... $150 Site Plan Review (SPR) Administrative .................................................. $100 Commercial/Industrial Districts* ...................... $500 Plus $10 per 1,000 square feet of building area: (______ thousand square feet) *Include number of existing employees: __________ *Include number of new employees:__________ Residential Districts ......................................... $500 Plus $5 per dwelling unit (_____ units) Subdivision (SUB) Create 3 lots or less ........................................ $500 Create over 3 lots ....................... $1000 + $15 per lot (_____ lots) Metes & Bounds (2 lots) .................................. $300 Consolidate Lots .............................................. $150 Administrative Subd. (Line Adjustment) .......... $150 Final Plat + $15 per lot .................................. $700* *(Includes $450 escrow for attorney costs) *Additional escrow may be required for other applications through the development contract. Vacation of Easements/Right-of-way (VAC) ........ $300 (Additional recording fees may apply) Variance (VAR) .................................................... $200 Wetland Alteration Permit (WAP) Single-Family Residence ............................... $150 All Others ....................................................... $275 Appeal of Administrative Decision........................ $200 Zoning Ordinance Amendment (ZOA) ................. $500 NOTE: When multiple applications are processed concurrently, the appropriate fee shall be charged for each application. Notification Sign (City to install and remove) ...................................................................................................................... $200 Property Owners’ List within 500’ (City to generate after pre-application meeting) .................................................. $3 per address (____ addresses) Escrow for Recording Documents (check all that apply) ....................................................................... $ per document Conditional Use Permit - $50 Wetland Alteration Permit - $50 Variance - $50 Interim Use Permit $50 Easements (__ easements) $85 Metes & Bounds Sub (2 deeds) $250 Site Plan Agreement - $85 Vacation - $85 Deeds - $100 TOTAL FEE: Section 2: Required Information Description of Proposal: Property Address or Location: Parcel #: Legal Description: Total Acreage: Wetlands Present? Yes No Present Zoning: Requested Zoning: Present Land Use Designation: Requested Land Use Designation: Existing Use of Property: Check box if separate narrative is attached. 516 Section 3: Property Owner and Applicant Information APPLICANT OTHER THAN PROPERTY OWNER: In signing this application, I, as applicant, represent to have obtained authorization from the property owner to file this application. I agree to be bound by conditions of approval, subject only to the right to object at the hearings on the application or during the appeal period. If this application has not been signed b y the property owner, I have attached separate documentation of full legal capacity to file the application. This application should be processed in my name and I am the party whom the City should contact regarding any matter pertaining to this application. I will keep myself informed of the deadlines for submission of material and the progress of this application. I further understand that additional fees may be charged for consulting fees, feasibility studies, etc. with an estimate prior to any authorization to proceed with the study. I certify that the information and exhibits submitted are true and correct. Name: Contact: Address: Phone: City/State/Zip: Cell: Email: Fax: Signature: Date: PROPERTY OWNER: In signing this application, I, as property owner, have full legal capacity to, and hereby do, authorize the filing of this application. I understand that conditions of approval are binding and agree to be bound by those conditions, subject only to the right to object at the hearings or during the appeal periods. I will keep myself informed of the deadlines for submission of material and the progress of this application. I further understand that additional fees may be charged for consulting fees, feasibility studies, etc. with an estimate prior to any authorization to pr oceed with the study. I certify that the information and exhibits submitted are true and correct. Name: Contact: Address: Phone: City/State/Zip: Cell: Email: Fax: Signature: Date: PROJECT ENGINEER (if applicable) Name: Contact: Address: Phone: City/State/Zip: Cell: Email: Fax: Section 4: Notification Information Who should receive copies of staff reports? *Other Contact Information: Property Owner Email______________________________ Name: Applicant Email______________________________ Address: Engineer Email______________________________ City/State/Zip: Other* Email______________________________ Email: This application must be completed in full and be typewritten or clearly printed and must be accompanied by all information and plans required by applicable City Ordinance provisions. Before filing this application, refer to the appropriate Application Checklist and confer with the Planning Department to determine the specific ordinance and applicable procedural requirements. A determination of completeness of the application shall be made within 15 business days of application submittal. A written notice of application deficiencies shall be mailed to the applicant within 15 business days of application. INSTRUCTIONS TO APPLICANT: Complete all necessary form fields, then select SAVE FORM to save a copy to your device. PRINT FORM and deliver to city along with required documents and payment. SUBMIT FORM to send a digital copy to the city for processing. 517 Life Time Chanhassen Pickleball Addition Development Plan Project Narrative May 19, 2023 518 INTRODUCTION The purpose of this request is for site plan approval for the development of a Life Time Pickleball facility in Chanhassen, MN. This facility would include 8 indoor and 6 outdoor courts located southwest of the Life Time Athletic Club and Corporate Campus, directly across from Life Time’s Corporate 3 Building. As shown in the graphic below, the current improvements on site consist of a paved asphalt parking lot constructed in 2019. The Site is currently zoned PUD with indoor recreation/health club as a permitted use. Life Time is not at this time requesting any change or variance to zoning or permitted land use. SURROUNDING CONTEXT The site lies within the Arboretum Business Park PUD located East of Highway 41 and south of Highway 5. To the north is Life Time’s Athletic Club, and corporate headquarters. To the west of the site lies the 1,200 acre Minnesota Landscape Arboretum. To the east and south are offices, light industrial, daycare facilities and commercial buildings.67th Ave 519 SITE PLAN The proposed Life Time Pickleball facility will consist of an approximate 26,000 square foot precast building with the entry oriented to the east. Located to the west of the building will be an additional 6 fenced outdoor pickleball courts with lounge area accessed from the building. Outdoor courts, and the walking path will be lighted from dusk until closing. Additional site features will include landscaping, a surface filtration pond BMP and a screened ground level mechanical HVAC area. Accessible sidewalks will encompass the east side of the building, between the parking lot running north and south, and connect to the existing walking path from the Club on the northern side of the lot. During operating hours, Life Time staff will be on site to handle check in and operations. Parking All parcels within the Life Time campus are part of a shared parking agreement. Development of the site shall include repaving and restriping of the impacted parking lot, where affected by construction activity and utility installation. SSTS, LLC conducted a traffic and parking memo on behalf of Life Time. The memo has been included with the application submittal documents. Parking requirements per Chanhassen City Code require a total of 48 stalls. Parking demand is anticipated to be handled by the existing main corporate and club lot to the north, and with the adjacent corporate 3 building lot. No additional parking area is anticipated to be constructed due to the available capacity of parking between these lots, however a set number of corporate 3 parking stalls shall be signed and striped accessible for pickleball use only. Existing Stairway/ Connection to Club 520 BUILDING This proposed 26,000 sf building will feature reception, changing & restrooms, lockers, lounge area and 8 indoor pickleball courts. The building will be constructed to match similar styles to the nearby buildings. The final building roof height will be kept under 30’ to satisfy the aerial fire apparatus rules and will be fire accessible from the parking lot. Life Time is currently working with several precast manufacturers and anticipates having additional renderings and building samples available for the city to review at a later date. Design Guidelines The exterior finishes of the proposed building will of high quality and will be in compliance with the Arboretum Business Park Development Design Standards. A continuous masonry base is proposed on all four sides and will vary in height from 6’ to 8’. Exposed precast concrete panels will be acid-etched to provide texture and will feature integral coloring with earth-tone consistent with the Life Time typical brand finish palette. The large expanses on the east and west facing elevations will be broken up with accent color portions and artificial green wall elements. The roof line will be adorned with a projecting cornice element and will vary in height on the east and west façade to add architectural interest and break up the long expanse. The interior use: the Pickleball, is not conducive to daylighting and solar glare. Life Time members expect a certain playing environment, with consistently colored background fields, free from distractions for improved visibility of the ball. For these reasons the fenestration is proposed at the main building entry, access doors to outdoor courts and the north and south ends of the building. Signage Wall signs are proposed on the east, west and south facing facades. The east and west elevations exceed 4,500 SF; the signage on each side is proposed to be at or under the 275 sf maximum allowed. The south facing elevation is approximately 2,600 sf the proposed sign on this façade will be at or under the allowed 182 SF (7%) per Municipal Code. CLOSING Due to the enormous popularity of pickleball over the last few years, and the growing demand for court availability, Life Time’s goal is to have this facility open and operating by the end of the year, following both the schedule of approvals for the City and the watershed. Attached to this narrative you will find an application for development review, draft construction plans, details and building elevations. Life Time anticipates having supplemental information available in the coming weeks to support our application. 521 If there are any questions, comments or concerns please feel free to contact us. Gage Thompson, PE Engineering Manager Life Time Real Estate & Development C 612.219.8309 522 1ST FLOOR 100' -0" T.O. ROOF 128' -8" T.O. ENTRY PARAPET 133' -6" T.O. LOW PARAPET 130' -0" TEXTURED COLORED CONCRETE PANEL - BEIGEEIFS CORNICE BRICK - DARK BROWN STOREFRONT - BRONZE METAL CANOPY - BRONZE DECORATIVE SCONCE FAUX GREEN WALL A201 4 29' - 6"5' - 9"PRECAST CAPTEXTURED ACRYLIC COATING - LIGHT BROWN EQ EQ EQ EQ EIFS PROTRUSION T.O. HIGH PARAPET 132' -8" TEXTURED COLORED CONCRETE PANEL - DARK BROWN 1ST FLOOR 100' -0" T.O. ROOF 128' -8" T.O. ENTRY PARAPET 133' -6" T.O. LOW PARAPET 130' -0" TEXTURED COLORED CONCRETE PANEL - BEIGE EIFS CORNICE BRICK - DARK BROWN STOREFRONT - BRONZEPRECAST CAPTEXTURED ACRYLIC COATING - LIGHT BROWN T.O. HIGH PARAPET 132' -8" EIFS PROTRUSION 1ST FLOOR 100' -0" T.O. ROOF 128' -8" T.O. ENTRY PARAPET 133' -6" T.O. LOW PARAPET 130' -0" TEXTURED COLORED CONCRETE PANEL - BEIGE EIFS CORNICE BRICK - DARK BROWN STOREFRONT - BRONZEMETAL CANOPY - BRONZETEXTURED COLORED CONCRETE PANEL - DARK BROWN DECORATIVE SCONCE FAUX GREEN WALL A201 4 SIM 61' - 10"4' - 2"PRECAST CAP TEXTURED ACRYLIC COATING - LIGHT BROWN T.O. HIGH PARAPET 132' -8" TEXTURED COLORED CONCRETE PANEL - DARK BROWN 1ST FLOOR 100' -0" T.O. ROOF 128' -8" T.O. ENTRY PARAPET 133' -6" T.O. LOW PARAPET 130' -0" TEXTURED COLORED CONCRETE PANEL - BEIGE EIFS CORNICE BRICK - DARK BROWN STOREFRONT - BRONZE A201 4 SIM 3' - 5"49' - 6" PRECAST CAP TEXTURED ACRYLIC COATING - LIGHT BROWN T.O. HIGH PARAPET 132' -8" EIFS PROTUSION 12345678910 A A B B 36' - 0"36' - 0"36' - 0"36' - 0"42' - 0"36' - 0"36' - 0"36' - 0"36' - 0"77' - 0"9' - 0 5/8" 26' - 0" 8' - 0" 28' - 0" 8' - 0" 28' - 0" 8' - 0" 26' - 0" 8' - 0" 34' - 0" 8' - 0" 26' - 0" 8' - 0" 28' - 0" 8' - 0" 28' - 0" 8' - 0" 26' - 0" 9' - 0 5/8" 37' - 1"36' - 0"36' - 0"36' - 0"38' - 5"36' - 0"36' - 0"36' - 0"37' - 1"12' - 11"44' - 0"10' - 1"8' - 7"DESK ADA CHANGE ADA CHANGE MEP IT/AV FIRE CONTROL STORAGE VESTIBULE MEP 8' - 6"8' - 6"MENS WOMENS 6"8' - 6"8' - 0"18' - 0"8' - 0"18' - 0"8' - 0"8' - 6"CONSULTANT CONFIDENTIALITY NOTICE BY ACCEPTING THIS MATERIAL, THE RECIPIENT ACKNOWLEDGES AND AGREES THAT THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND SHALL NOT BE DISCLOSED, DISTRIBUTED, OR OTHERWISE TRANSMITTED IN ANY WAY WITHOUT THE EXPRESS WRITTEN CONSENT OF LIFE TIME, INC., OR ITS SUBSIDIARIES (“LT”). THIS MATERIAL AND INFORMATION REMAINS THE SOLE PROPERTY OF LT AND LT RESERVES THE RIGHT TO REQUIRE ITS RETURN AT ANY TIME. THE RECIPIENT AGREES TO DEFEND AND INDEMNIFY LT FROM ANY DAMAGES OR LOSSES ARISING OUT OF THE UNAUTHORIZED USE OR DISCLOSURE OF THE INFORMATION. SHEET NO. REG. NO. EXP DATE: I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY REGISTERED ARCHITECT UNDER THE LAWS OF THE STATE OF: NAME PUBLICATIONS 2902 CORPORATE PLACE CHANHASSEN, MN 55317 PROFESSIONAL OF RECORD STAMP PROJECT INFORMATION ISSUE DATE:ABCDE1 NOT FOR CONSTRUCTION2 3 4 5 66/14/2023 9:29:48 AMA200AChanhassen PickleballEXTERIOR ELEVATIONS & FLOOR PLAN2970 WATER TOWER PLACECHANHASSEN, MN<STATE> 6/13/2023 NOT FOR CONSTRUCTION 3/32" = 1'-0"1 EAST SIDE - CORP 3 3/32" = 1'-0"3 NORTH SIDE - CORP 1 3/32" = 1'-0"2 WEST SIDE - HWY 41 3/32" = 1'-0"4 SOUTH SIDE - WATER TOWER PL 3/32" = 1'-0"5 1ST FLOOR Copy 2 BUILDING AREA BREAKDOWN SPACE AREA CHANGING 31 SF ADA CHANGING 39 SF IT/AV 61 SF FIRE CONTROL 72 SF STORAGE 77 SF VESTIBULE 82 SF MECH 105 SF JAN/MEP 154 SF NOTES: 1. NO HAZARDOUS MATERIALS WILL BE STORED ON SITE. 2. BUILDING WILL BE SPRINKLERED PER 1306.002, SUBP 2. BUILDING AREA BREAKDOWN SPACE AREA MENS 159 SF WOMENS 216 SF CIRCULATION 1086 SF CIRCULATION 1188 SF CIRCULATION 2082 SF PICKLEBALL 9745 SF PICKLEBALL 9745 SF 24843 SF DRAWING LOG REV DATE DESCRIPTION 523 CNT SPK 2191007.30 CNT SPK2211001.40 244 3"3"5"4" 3" 3" 3" 5 5 6" 2" 6"6"3"6"6"6"6"6"6"5"6"5"5"6"6"6"6"8"6"6"6"6"6"3"BIRCH8"ASH8"ASH6"BIRCH 4"SPRUCE3"SPRUCE 4"4"BIRCH ST TR EMCIRCULATIONCI102CIRCULATIONCI103CIRCULATIONCI100WOMENSPK107MENSPK106IT/AVME101ADACHANGINGPK108CHANGINGPK109MECHME100FIRECONTROLME102ELECTRICALME103STORAGEPK111PICKLEBALLPK103PICKLEBALLPK102VESTIBULEPK100RECEPTION& RETAILPK101OUTDOORLOUNGEPK104PICKLEBALLPK105STATE HIGHWAY NO. 41WATER TOWER PLACECHANHASSEN LTCORPORATE OFFICE 3NTNCONSULTANTCONFIDENTIALITY NOTICEBY ACCEPTING THIS MATERIAL, THE RECIPIENT ACKNOWLEDGES AND AGREES THAT THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND SHALL NOT BE DISCLOSED, DISTRIBUTED, OR OTHERWISE TRANSMITTED IN ANY WAY WITHOUT THE EXPRESS WRITTEN CONSENT OF LIFE TIME, INC., OR ITS SUBSIDIARIES (“LT”). THIS MATERIAL AND INFORMATION REMAINS THE SOLE PROPERTY OF LT AND LT RESERVES THE RIGHT TO REQUIRE ITS RETURN AT ANY TIME. THE RECIPIENT AGREES TO DEFEND AND INDEMNIFY LT FROM ANY DAMAGES OR LOSSES ARISING OUT OF THE UNAUTHORIZED USE OR DISCLOSURE OF THE INFORMATION.SHEET NO.REG. NO.EXP DATE:I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY REGISTERED ARCHITECT UNDER THE LAWS OF THE STATE OF: NAMEPUBLICATIONS2902 CORPORATE PLACE CHANHASSEN, MN 55317PROFESSIONAL OF RECORDSTAMPPROJECT INFORMATIONISSUE DATE:ABCDE1NOT FOR CONSTRUCTION234566/15/2023 4:44:21 PMA151Chanhassen PickleballFURNITURE AND EQUIPMENT PLAN - FIRST FLOOR2970 WATER TOWER PLACECHANHASSEN, MN<STATE>6/15/2023NOT FOR CONSTRUCTION1/16" = 1'-0"A1FURNITURE - FIRST FLOORDRAWING LOGREV DATE DESCRIPTION 524 525 526 527 528 529 THE HEALTHY WAY OF LIFE COMPANYSMC6.00DETAILS05/15/23CONFIDENTIALITY NOTICEBY ACCEPTING THIS MATERIAL,THE RECIPIENT ACKNOWLEDGESAND AGREES THAT THEINFORMATION CONTAINED HEREINIS OF A CONFIDENTIAL NATUREAND THAT THE RECIPIENT WILLNOT COPY, DISCLOSE,DISTRIBUTE OR OTHERWISETRANSMIT IN ANY WAY ANYTHINGHEREIN, EITHER IN WHOLE OR INPART, WITHOUT THE PRIORWRITTEN PERMISSION OF LIFETIME FITNESS, INC. OR ITSSUBSIDIARIES (THE "COMPANY"),COMPLETING THE POTENTIALTRANSACTION CONTEMPLATED BYEXCEPT FOR THE SPECIFICPURPOSE OF ANALYZING ANDTHIS MATERIAL.THIS MATERIALREMAINS THE SOLE PROPERTY OFTHE COMPANY AND THE COMPANYRESERVES THE RIGHT TOREQUIRE ITS RETURN AT ANYTIME.SHEET NO.Permit PlansREG. NO.DATEI HEREBY CERTIFY THAT THISPLAN, SPECIFICATION, ORREPORT WAS PREPARED BY MEOR UNDER MY DIRECTSUPERVISION AND THAT I AM ADULY REGISTERED ENGINEERUNDER THE LAWS OF THE STATEOF:NAME:42350PUBLICATIONS2902 CORPORATE PLACE CHANHASSEN, MN 55317ENGINEERSTAMPISSUE DATE06/30/24LIFE TIME PICKLEBALL BUILDING 2970 WATER TOWER PLACE CHANHASSEN, MN PROJECT INFORMATIONDRAWING LOGREVDATEDESCRIPTION10062 FLANDERS CT NEBLAINE, MN 55449ELFERING & ASSOCIATESTRUE NORTHCONSULTANT530 531 532 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.2 0.3 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.6 0.8 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 1.4 1.9 2.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.1 2.8 3.5 3.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.7 4.3 5.1 4.4 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.2 2.0 5.7 5.8 4.7 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.5 2.7 5.8 5.7 4.7 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.4 20.0 6.2 5.8 4.7 0.0 0.0 0.1 0.1 0.1 0.1 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 7.8 5.4 5.6 4.7 0.0 0.1 0.1 0.1 0.1 0.2 0.3 0.4 0.4 0.5 0.6 0.5 0.5 0.4 0.3 0.1 3.1 3.8 4.5 4.5 0.1 0.1 0.1 0.1 0.1 0.2 0.4 0.5 0.7 0.9 1.0 0.9 0.8 0.6 0.4 0.0 18.2 2.7 2.9 4.1 0.1 0.1 0.1 0.1 0.2 0.3 0.5 0.8 1.2 1.6 1.8 1.7 1.3 0.9 0.5 0.0 0.7 1.1 1.8 4.2 0.1 0.1 0.1 0.2 0.2 0.4 0.7 1.6 2.3 3.0 3.5 3.2 2.6 2.0 0.9 0.0 28.1 1.4 1.5 4.8 0.1 0.2 0.2 0.2 0.3 0.5 1.1 4.8 6.8 7.1 7.5 7.6 7.7 6.4 2.1 0.0 0.2 0.5 1.2 5.5 0.2 0.2 0.3 0.4 0.5 0.8 2.3 15.8 16.8 14.6 14.2 15.0 17.0 17.5 4.5 0.0 16.5 1.6 1.3 5.1 0.2 0.3 0.4 0.6 0.9 1.6 4.2 26.2 29.4 24.9 23.8 24.7 29.1 28.4 7.8 0.0 0.4 0.5 1.1 5.3 0.3 0.4 0.6 1.0 1.7 3.0 8.6 25.0 40.2 35.6 35.9 36.3 40.9 34.2 12.5 0.0 10.0 0.9 1.0 4.2 0.4 0.6 0.9 1.6 2.7 5.1 11.4 30.7 47.1 43.6 45.5 43.4 48.1 40.9 15.6 0.0 0.8 0.8 0.6 2.9 0.4 0.7 1.2 2.1 3.9 7.1 12.1 41.6 53.3 51.7 51.3 56.5 52.2 48.8 19.5 0.9 10.9 1.0 0.4 1.8 0.4 0.7 1.2 2.2 4.3 7.6 12.8 44.3 54.9 53.4 57.7 54.7 54.1 50.4 21.3 1.2 2.5 1.4 0.5 1.2 1.5 0.4 0.7 1.2 2.0 3.5 6.2 11.7 39.2 54.5 53.6 54.0 52.5 55.7 49.8 19.7 1.0 0.8 1.2 1.1 1.5 1.6 0.4 0.7 1.0 1.5 2.4 4.3 10.7 38.1 63.1 54.8 54.0 54.3 60.5 57.0 20.3 2.0 4.2 3.6 2.4 2.6 2.2 0.4 0.6 0.9 1.2 2.0 3.4 8.8 47.8 63.6 54.2 51.3 52.3 59.7 61.2 20.6 0.4 0.6 3.2 4.0 4.0 3.0 0.4 0.6 0.9 1.3 2.2 3.7 9.6 40.8 63.3 55.1 53.2 54.1 60.4 58.3 21.5 17.7 6.7 5.5 4.9 3.3 0.4 0.7 1.1 1.7 2.9 5.3 11.3 34.5 57.2 53.8 54.0 52.6 57.0 51.9 21.4 0.9 4.9 6.0 5.0 3.4 0.4 0.7 1.2 2.1 3.9 6.9 11.7 40.8 55.1 53.7 56.4 59.1 53.8 51.8 24.1 1.2 9.2 5.7 5.0 3.4 0.4 0.7 1.1 2.1 3.9 7.1 11.6 38.8 54.1 52.4 56.5 56.0 52.4 50.5 24.3 0.8 5.2 6.1 5.1 3.4 0.4 0.6 1.0 1.8 3.1 5.5 10.4 29.0 47.3 47.3 46.7 45.4 48.1 44.1 19.6 0.7 9.4 5.2 4.8 3.4 0.3 0.5 0.8 1.2 2.0 3.4 7.8 21.0 44.3 40.7 39.9 39.5 42.2 40.8 16.1 0.5 3.1 3.6 3.7 3.0 0.3 0.4 0.6 0.8 1.2 2.0 4.5 20.0 33.8 30.0 28.1 28.2 30.7 31.9 13.3 0.4 6.2 2.3 2.5 2.2 0.3 0.3 0.4 0.6 0.8 1.1 2.3 15.7 23.6 20.8 19.6 19.8 20.7 22.0 10.2 0.3 2.8 1.6 1.9 2.0 0.2 0.3 0.4 0.5 0.6 0.9 1.7 9.1 17.7 16.9 16.9 17.1 17.5 17.5 7.9 0.4 4.1 1.6 2.2 2.5 0.2 0.3 0.4 0.5 0.7 0.9 2.0 11.9 20.6 18.7 18.7 18.9 19.5 21.7 11.9 0.4 5.5 1.8 2.9 3.7 0.3 0.4 0.5 0.6 0.9 1.5 3.3 17.0 30.8 28.5 26.5 26.7 29.1 31.8 16.3 0.4 2.0 1.9 3.4 4.8 0.3 0.4 0.6 0.9 1.5 2.6 5.9 17.3 39.5 38.7 37.5 37.9 39.3 41.3 17.9 0.3 11.7 1.6 3.1 4.7 0.3 0.5 0.8 1.3 2.3 4.2 8.5 20.7 44.2 46.5 43.9 44.3 46.2 44.9 22.8 0.2 0.8 1.0 2.1 3.3 0.3 0.5 0.9 1.7 3.2 5.8 9.8 27.7 50.2 50.1 55.7 54.9 49.8 51.5 32.2 0.2 16.2 1.1 2.2 3.3 0.3 0.5 0.9 1.7 3.3 6.0 9.9 26.8 50.7 50.7 54.8 55.0 50.0 51.7 33.3 0.4 1.3 1.8 3.2 4.9 0.3 0.5 0.8 1.5 2.5 4.6 8.5 20.5 44.1 47.1 44.4 44.7 45.7 45.3 25.0 0.5 15.5 2.2 3.6 5.1 0.3 0.4 0.6 1.0 1.6 2.8 5.9 15.8 41.2 41.8 38.4 38.2 38.8 41.7 19.4 0.6 2.8 2.3 3.6 4.3 0.2 0.3 0.4 0.6 0.9 1.5 3.2 12.5 31.8 29.7 26.4 25.8 27.5 31.5 19.8 0.7 8.6 2.4 3.3 3.9 0.2 0.2 0.3 0.4 0.5 0.7 1.4 8.6 20.7 18.7 16.4 15.9 17.2 20.1 14.4 0.2 0.0 0.0 0.0 0.0 0.1 0.1 0.3 0.6 3.8 5.3 4.7 4.8 6.2 3.9 1.7 0.1 0.2 0.2 0.2 0.3 0.4 0.7 3.7 9.4 9.6 9.1 8.7 8.7 9.6 5.2 0.7 0.1 0.1 0.1 0.1 0.0 0.1 0.3 0.5 1.1 2.0 5.0 5.2 10.1 4.6 1.6 D EXISTING 1-STORY BLOCK BUILDING 2932 WATER TOWER PL. CHANHASSEN, MN 55317 BUILDING EXTERIOR= 20,338 S.F F CNT SPK 2191007.30 CNT SPK 2211001.40 W A T E R T O W E R P L A C E PC4 PROPERTY LINE EXISTING LIGHT POLE FIXTURE, TYPICAL. NEW LOCATION OF EXISTING LIGHT POLE FIXTURE. NEW BASE TYPE SHALL BE TYPE B1. PC1 PC1 PC1 PC1 PC4 PC1 PC1 PC1 PC4 PC1 PC1 PC1 PC1 PC1 XR6 XR6 XR6 XR6(2) (2) (2) XR6XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 XR6 GRADE 4" IN GRASS/LANDSCAPE AREA LUMINAIRE HAND HOLE ELECTRICAL CONDUIT SEE STRUCTURAL PLANS FOR MORE DETAIL. BASE PROVIDED BY CONCRETE CONTRACTOR, COORDINATED BY ELECTRICAL CONTRACTOR. REFER TO STRUCTURAL DETAILS FOR BASE DIMENSIONS AND REBAR SIZE/SPACING LUMINAIRE (IF APPLICABLE) 23'-8" LIGHT POLE BOND TO REBAR #4 B.C. TYPICAL BOND TO GROUND LUG BOLLARD BASE TOP OF GRADE BOND TO GROUND LUG #4 B.C. TYPICAL HOT DIPPED GALVANIZED ANCHOR BOLT PROVIDED BY BOLLARD MANUFACTURER. REFER TO STRUCTURAL DETAILS FOR BASE DIMENSIONS AND REBAR SIZE/SPACING BOND TO REBAR GRADE TOP OF BASE IS FLUSH WITH GRADE. LUMINAIRE HAND HOLE ELECTRICAL CONDUIT(S) SEE STRUCTURAL PLANS FOR MORE DETAIL. BASE PROVIDED BY CONCRETE CONTRACTOR, COORDINATED BY ELECTRICAL CONTRACTOR. REFER TO STRUCTURAL DETAILS FOR BASE DIMENSIONS AND REBAR SIZE/SPACING LUMINAIRE (IF APPLICABLE) LIGHT POLE BOND TO REBAR #4 B.C. TYPICAL BOND TO GROUND LUG RECEPTACLE (IF APPLICABLE) CAMERA OR SPEAKER AS SHOWN ON PLANS (IF APPLICABLE) CAMERA SERVICE BOX MOUNTED AT BASE OF POLE FOR MEDIA CONTRACTOR (IF APPLICABLE) SPEAKER OR CAMERA CONDUIT WHERE SHOWN (IF APPLICABLE) ENT ROUTED UP POLE FOR SPEAKER OR CAMERA CABLING (IF APPLICABLE) 22'-0" LIGHT POLE CALCULATION SUMMARY AREA UNITS AVG MAX MIN AVG/MIN MAX/MIN MIDDLE COURTS - PLAN EAST FOOTCANDLES 53.02 70.6 39.2 1.35 1.80 MIDDLE COURTS - PLAN WEST 53.32 70.6 39.2 1.36 1.80 NORTH COURTS - PLAN EAST 49.96 65.4 38.4 1.30 1.70 NORTH COURTS - PLAN WEST 50.23 65.4 38.4 1.31 1.70 OVERALL SITE 9.82 63.6 0.0 N.A. N.A. PROPERTY LINE 0.05 0.2 0.0 N.A. N.A. SOUTH COURTS - PLAN EAST 52.96 70.7 38.6 1.37 1.83 SOUTH COURTS - PLAN WEST 53.12 70.4 38.8 1.37 1.81 SIDEWALK 9.97 58.2 0.3 33.23 194.0 FOOTCANDLES FOOTCANDLES FOOTCANDLES FOOTCANDLES FOOTCANDLES FOOTCANDLES FOOTCANDLES FOOTCANDLES CONSULTANT CONFIDENTIALITY NOTICE BY ACCEPTING THIS MATERIAL, THE RECIPIENT ACKNOWLEDGES AND AGREES THAT THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND SHALL NOT BE DISCLOSED, DISTRIBUTED, OR OTHERWISE TRANSMITTED IN ANY WAY WITHOUT THE EXPRESS WRITTEN CONSENT OF LIFE TIME, INC., OR ITS SUBSIDIARIES (“LT”). THIS MATERIAL AND INFORMATION REMAINS THE SOLE PROPERTY OF LT AND LT RESERVES THE RIGHT TO REQUIRE ITS RETURN AT ANY TIME. THE RECIPIENT AGREES TO DEFEND AND INDEMNIFY LT FROM ANY DAMAGES OR LOSSES ARISING OUT OF THE UNAUTHORIZED USE OR DISCLOSURE OF THE INFORMATION. REG. NO. EXP DATE: I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY REGISTERED PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF: MINNESOTA NAME 2900 CORPORATE PLACE CHANHASSEN, MN 55317 PROFESSIONAL OF RECORD STAMP PROJECT INFORMATION PROJECT #:2409.43AC SHEET NO. ISSUE DATE PUBLICATIONS SITE SUBMITTAL PHOTOMETRIC SITE PLANE002 05/19/2023LIFE TIME PICKLEBALLBUILDING2970 WATER TOWER PLACECHANHASSEN, MNSCALE:1" = 20'-0" PHOTOMETRIC SITE PLAN1 GENERAL NOTES A. LIGHT LEVELS SHOWN ARE MAINTAINED. LIGHT LOSS FACTOR OF 0.85 WAS APPLIED TO ACCOUNT FOR LUMEN DEPRECIATION. B. ALL LIGHT POLES TYPE PC1 AND PC4 SHALL HAVE BASE TYPE B2 AND ARE 22'-0" HIGH. REFER TO DETAIL 3, THIS SHEET, FOR INFORMATION ON LIGHT POLE BASE TYPE B2. C. REFER TO DETAIL 4, THIS SHEET, FOR BOLLARD BASE INFORMATION FOR FIXTURE TYPE XR6. D. EXISTING LIGHT FIXTURES SHOWN ON ADJACENT LIFE TIME PROPERTY HAVE BEEN MODELED IN THIS PHOTOMETRIC. E. BOLLARD FIXTURES TYPE XR6 SHALL BE AIMED TOWARD THE ADJACENT SIDEWALK. NO SCALE2POLE BASE DETAIL - TYPE "B1" NO SCALE4BOLLARD BASE DETAIL NO SCALE3POLE BASE DETAIL - TYPE "B2" DRAWING LOG REV DATE DESCRIPTION 533 CONSULTANT CONFIDENTIALITY NOTICE BY ACCEPTING THIS MATERIAL, THE RECIPIENT ACKNOWLEDGES AND AGREES THAT THE INFORMATION CONTAINED HEREIN IS CONFIDENTIAL AND SHALL NOT BE DISCLOSED, DISTRIBUTED, OR OTHERWISE TRANSMITTED IN ANY WAY WITHOUT THE EXPRESS WRITTEN CONSENT OF LIFE TIME, INC., OR ITS SUBSIDIARIES (“LT”). THIS MATERIAL AND INFORMATION REMAINS THE SOLE PROPERTY OF LT AND LT RESERVES THE RIGHT TO REQUIRE ITS RETURN AT ANY TIME. THE RECIPIENT AGREES TO DEFEND AND INDEMNIFY LT FROM ANY DAMAGES OR LOSSES ARISING OUT OF THE UNAUTHORIZED USE OR DISCLOSURE OF THE INFORMATION. REG. NO. EXP DATE: I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY REGISTERED PROFESSIONAL ENGINEER UNDER THE LAWS OF THE STATE OF: MINNESOTA NAME 2900 CORPORATE PLACE CHANHASSEN, MN 55317 PROFESSIONAL OF RECORD STAMP PROJECT INFORMATION PROJECT #:2409.43AC SHEET NO. ISSUE DATE PUBLICATIONS SITE SUBMITTAL PHOTOMETRIC CUT SHEETS AND FIXTURE SCHEDULEE003 05/19/2023LIFE TIME PICKLEBALLBUILDING2970 WATER TOWER PLACECHANHASSEN, MNFIXTURE TYPE XR6 FIXTURE TYPES PC1 AND PC4 A.FIXTURE QUANTITIES INDICATED IN THIS SCHEDULE ARE FOR REFERENCE ONLY. ELECTRICAL CONTRACTOR SHALL SUBMIT BASE BID FROM DRAWINGS, NOT QUANTITIES INDICATED HERE. EMANUELSON-PODAS MAKES NO GUARANTEE THAT QUANTITIES LISTED ARE ACCURATE. GENERAL NOTES: LIGHT FIXTURE SCHEDULE TYPE DESCRIPTION VOLT DIMMING LAMPS VA / FIXT.MANUFACTURER CATALOG NUMBER FIXT. QTY.NOTESTYPE QTY / FIXT. PC1 EXTERIOR LIGHT POLE AND HEAD, DIE-CAST ALUMINUM FIXTURE HOUSING. 4" STRAIGHT SQUARE STEEL POLE WITH BASE COVER. FIXTURE AND POLE TO BE DARK BRONZE FINISH. SINGLE HEAD, 22'-0" POLE, COURT OPTICS DISTRIBUTION. INTERNAL LOUVER. 480 - - LED 4000K N/A 648 LSI INDUSTRIES ZNL-78L-CT-HV-40-BRZ-IL 12 1 PC4 EXTERIOR LIGHT POLE AND (4) HEADS, DIE-CAST ALUMINUM FIXTURE HOUSING. 4" STRAIGHT SQUARE STEEL POLE WITH BASE COVER. FIXTURE AND POLE TO BE DARK BRONZE FINISH. SINGLE HEAD, 22'-0" POLE, COURT OPTICS DISTRIBUTION. INTERNAL HOUSE SIDE SHIELD. 480 - - LED 4000K N/A 2072 LSI INDUSTRIES ZNL-65L-FT-HV-40-BRZ-IH 3 1 XR6 42" TALL, LED INDIRECT REFLECTOR BOLLARD.UNIV - - LED 3000K N/A 13 RAB LIGHTING BLED13Y 26 DRAWING LOG REV DATE DESCRIPTION 534 535 Page 1 of 8 Application: 2970 Water Tower Pl Site Plan Approval – Life Time Pickleball Facility (2023- 13) Planning Commission Review Date: June 20, 2023 City Council Review Date: July 10, 2023 SUMMARY OF REQUEST: The applicant is requesting site plan approval for the construction of a 25,410sf building for the use of indoor pickleball courts and associated amenities, as well as the construction of outdoor pickleball courts. LOCATION: 2970 Water Tower Pl (Subject Property) OWNER: LTF Real Estate Company Inc 2902 Corporate PL Chanhassen MN 55317 CURRENT ZONING: “PUD” – Planned Unit Development. The Office Industrial Park District regulations apply except as modified by the PUD. 2040 LAND USE PLAN: Office Industrial (O/I) ACREAGE: 2.68 acres DENSITY: 0.22 FAR PROPOSED MOTION: “The Chanhassen Planning Commission recommends approval of the Site Plan request for the construction of an indoor and outdoor pickleball facility subject to the conditions of approval and the attached Findings of Facts and Decision.” 536 Page 2 of 8 LEVEL OF CITY DISCRETION IN DECISION-MAKING: The city’s discretion in approving or denying a Site Plan is limited to whether or not the proposed project complies with Zoning Ordinance requirements. If it meets these standards, the city must then approve the site plan. This is a quasi-judicial decision. Notice of this public hearing has been mailed to all property owners within 500 feet. APPLICABLE REGULATIONS Chapter 20, Article II, Division 6, Site Plan Review Chapter 20, Article XXIII, Division 7, Design Standards for Commercial, Industrial and Office- Institutional Developments Chapter 20, Article XXVI, Signs ZONING OVERVIEW Zoning Designation The property is zoned Planned Unit Development (PUD). The PUD ordinance was originally adopted July 28, 1998 and has been amended eight times, most recently on May 10, 2010. Aspects of development not established by the PUD ordinance are regulated by the Office Industrial Park District regulations within city code. The proposed pickleball facility is a permitted use by the PUD. The PUD ordinance includes a development standards tabulation box which indicates Lot 1 Block 1 of the development (Subject Property) was anticipated to be developed as a commercial use. Information pertaining to the PUD standards can be found here: Arboretum Business Park PUD. Environmental Protection Districts Bluff Creek Corridor - This is not encumbered by the Bluff Creek Overlay District. Bluff Protection - The proposed project is located outside of the required bluff setback. Floodplain Overlay - The proposed project is located outside of the floodplain. Shoreland Management - The property is outside of the Shoreland Protection District. Wetland Protection - There are no wetlands on the site. SITE PLAN REVIEW The developer is requesting site plan approval for a 25,410 square-foot building that would be used as an indoor pickleball facility. There would also be an outdoor pickleball court area on the 537 Page 3 of 8 west side of the proposed building. The outdoor courts would be fenced and only accessible through the building to control access. The Arboretum Business Park PUD ordinance outlines specific setbacks for development that occur within the geographic boundary of the PUD. A summary of the applicable setbacks and design standards is provided below: Design Standards/Metrics Setback Requirements from Highway 41 Required (ft) Proposed (ft) Minimum Parking Setback 50 N/A Maximum Parking Setback 150 N/A Minimum Building Setback 70 140.6 Maximum Building Setback 150 149.9 Building Height Maximum Building Height 40 33’6” Lot Coverage Maximum Lot Coverage 70% 39.9% 538 Page 4 of 8 Parking Recreational facilities require 20 spaces plus one space for each 500 square feet of floor area in the principal structure or two spaces per court. The Applicant has proposed 8 indoor courts and 6 outdoor courts for a total of 14 courts and an additional 28 parking spots added to the base requirement of 20 spaces for a grand total of 48 required parking spaces. There are 35 parking spaces (3 handicapped) located along the shared property line between the pickleball facility and the corporate office building and the additional 13 spaces required are available in the parking lot to the north side of the existing office building. The proposed site plan would utilize parking spaces on the adjacent parcel which is also owned by Life Time Fitness. A recreational use that will have peak usage on nights and weekends and an office building which would experience a majority of its parking demands during the day and on the weekdays are a good match in terms of a shared parking arrangement. Additional parking for pickleball participants would be available to the north in the main Life Time Fitness parking lot. Additionally, the Applicant has indicated that the office parking demand during the day is much reduced following a shift in corporate workforce flexibility and remote working. As a result, a shared parking arrangement between the two facilities is reasonable. Required Architectural Standards The PUD standards require that the development demonstrate a higher quality of architectural standards and site design than what would be required by the base Industrial Office Park (IOP) district. Design Standards 1. All mechanical equipment shall be screened with material compatible to the building. 2. All materials shall be of high quality and durable. Masonry material shall be used. Color shall be introduced through colored block or panels and not painted cinder block. 3. Brick may be used and must be approved to assure uniformity. 4. Block shall have a weathered face or be polished, fluted, or broken face. 5. Concrete may be poured in place, tilt-up or pre-cast, and shall be finished in stone, textured, coated, or painted. 6. Metal siding will not be approved except as support material to one of the above materials or curtain wall on office components or as trim or as HVAC screen. 7. All accessory structures shall be designed to be compatible with the primary structure. 8. All roof-mounted equipment shall be screened by walls of compatible appearing material or camouflaged to blend into the building or background. Wood screen fences are prohibited. All exterior process machinery, tanks, etc., are to be fully screened by compatible materials. 9. The use of large unadorned, pre-stressed concrete panels and concrete block shall be prohibited. Acceptable materials will incorporate textured surfaces, exposed aggregate and/or other patterning. All walls shall be given added architectural interest through building design or appropriate landscaping. The buildings shall have varied and interesting detailing. The use of large unadorned, concrete panels and concrete block, or a 539 Page 5 of 8 solid wall unrelieved by architectural detailing, such as change in materials, change in color, fenestrations, or other significant visual relief provided in a manner or at intervals in keeping with the size, mass, and scale of the wall and its views from public ways shall be prohibited. Acceptable materials will incorporate textured surfaces, exposed aggregate and/or other patterning. All walls shall be given added architectural interest through building design or appropriate landscaping. 10. Space for recycling shall be provided in the interior of all principal structures or within an enclosure for each lot developed in the Business Center. 11. Each building shall contain one or more pitched roof elements depending on scale and type of building, or other architectural treatments such as towers, arches, vaults, entryway projections, canopies and detailing to add additional interest and articulation to structures. 12. There shall be no underdeveloped sides of buildings visible from public right-of-ways. All elevations visible from the street shall receive nearly equal treatment and visual qualities. Proposed Architectural Features South Elevation (Facing Water Tower Pl) North Elevation (Facing Life Time Corp Building 1) West Elevation (Facing Hwy 41) East Elevation (Facing Lifetime Corp Building 3) Size portion and Placement The proposed structure would be constructed on the eastern edge of the property to utilize an existing parking lot as well as provide adequate access for emergency vehicles. The outdoor pickleball courts would be constructed on the western half of the subject property and between the proposed building and Highway 41. 540 Page 6 of 8 Material and Color The primary building material is textured beige-colored concrete panels, which is located on all sides of the building. Additionally, dark brown panels of textured concrete and dark brown brick are proposed to comprise a majority of the structure. Two panels of faux green walls as well as a bronze metal canopy are proposed by both building entrances for additional architectural interest. The roofline is proposed to have varying parapets to break up the roofline. Architectural Interest The Applicant is proposing a pre-cast tilt up panel building. The building walls would include three colors to provide variation as well as panels of faux green living wall and windows around the entrances to provide further articulation of the wall faces. The proposed structure would have parapet walls over each of the entrances, the north and south ends, as well as evenly spaced along the west and east elevations between the center entrances. The proposed parapets would also aid in screening of rooftop mechanical equipment. Roof Design The flat roof is articulated by the use of varying parapet heights of 30’0”, 32’8”, and 33’6. Rooftop mechanical equipment shall be screened. Façade Transparency The proposed use of the facility as a pickleball facility does not readily allow for 50% of the first floor that is viewable to the public which is typically required by city code. The 50% requirement is able to be reduced in situations where interior activities are not conducive to exterior windows, and due to the effect the sunlight would have on the playing experience inside the facility, the Applicant has proposed alternative architectural features to offset the reduction in windows/glazing. Additional architectural features include 3 different parapet heights, three color tones on the wall faces and brick on all four sides of the structure. Site Furnishing The developer is providing a patio area with bathrooms, changing rooms, and a seating area within the outdoor pickleball court area. Loading and Refuse Areas The pickleball facility will utilize an existing trash enclosure on the adjacent Life Time Fitness corporate site in the northeast corner of that property. Lighting Submitted plans show that the Applicant is proposing lighting on the building as well as over the outdoor pickleball courts. The monopole style lights for the outdoor courts would be 22 feet in height and be lit with LED bulbs. City code limits pole height to 30 feet. The wallpack lighting must be shielded with a total cutoff angle equal to or less than 90 degrees. The lighting shown does not provide the required cut off angle and needs to be revised. 541 Page 7 of 8 Signage Submitted plans show both wall signage as well as a ground monument sign. Wall Signage – one wall business sign is permitted on the street frontage for each business occupant within a building. Buildings whose entrances do not front on a public street are permitted a wall sign on the entrance facade. Submitted plans show “Lifetime Pickleball” signage on the east and west facades. The west façade faces a public roadway, and the east façade is the primary entrance to the facility. As a result, their location adheres to city code. The wall signage on the east and west sides of the building are limited to 275 square feet, where approximately 260.5 square feet is proposed. The wall signage on the south side is limited to 207 square feet, where approximately 173.25 square feet is proposed. Ground signage - ground signs may be no closer than 10 feet to any property line and be no larger than 24 square feet of sign display area. The Applicant is showing an eight foot wide by five foot tall monument with roughly the top ½ of that surface serving as a display area. Applicant to modify ground sign or show additional dimensioning to establish that the sign adheres to city code. Wayfinding signage is proposed on the north side of the development site. Applicant shall submit to staff drawings of that proposed signage for staff review for conformance with city code. Required Planning Department Comments/Corrections to Plan Set: 1. Update wall lighting sconces to include 90-degree cutoff fixtures. 2. Proposed signage will require separate sign permits. 3. Verify monument wayfinding sign does not have more than 24 square feet in signage area. Fire Department Notes: 1. Building will require fire suppression system and fire panel to monitor the system. 2. Additional hydrants may be required after final review of utility plans 3. If building stays under 30 feet, no additional fire apparatus entrance required. 4. Fire apparatus turnaround required, looks to be provided by N/E portion of parking lot but cannot confirm spacing until more detailed plans provided. Building Department Notes: 1. A building permit must be obtained before beginning any construction. 2. Building plans must be prepared and signed by design professionals licensed in the State of Minnesota. 3. Building plans must provide sufficient information to verify that proposed building meets all requirements of the Minnesota State Building Code, additional comments or requirements may be required after plan review 4. The building is required to have automatic fire extinguishing systems. 5. Structure proximity to property lines (and other buildings) will have an impact on the code requirements for the proposed buildings, including but not limited to; allowable size, protected openings and fire-resistive construction. These requirements will be addressed when complete building and site plans are submitted. 542 Page 8 of 8 6. Building plans must include a code analysis that contains the following information: Key Plan, Occupancy group, Type of construction, Allowable height and area, Fire sprinklers, Separated or non-separated, Fire resistive elements (Ext walls, Bearing walls - exterior or interior, Shaft, Incidental use), Occupant load, Exits required (Common path, Travel distance), Minimum plumbing fixture count 7. Retaining walls (if present) more than four feet high, measured from the bottom of the footing to the top of the wall, must be designed by a professional engineer and a building permit must be obtained prior to construction. Retaining walls (if present) under four feet in height require a zoning permit. 8. If any soil corrections are done on the property a final grading plan and soil report must be submitted to the Inspections Division before permits will be issued. 543 Memorandum To: Eric Maass, Planning Director From: Erik Henricksen, Project Engineer Joe Seidl, Water Resources Engineer CC: Charles Howley, Public Works Director/City Engineer George Bender, Assistant City Engineer Charlie Burke, Public Works Operations Manager Date: 6/12/2023 Re: 2970 Water Tower Place (Life Time Pickleball) Site Plan Review - City Planning Case No. 2023-13 ACCESS Vehicular access to the proposed development is had via Water Tower Place, a public street. Water Tower Place is serviced by Century Boulevard, a city collector street to the west. An initial traffic review memorandum produced by Katie Schmidt, PE with SSTS and dated May 19, 2023, was provided by the applicant. The memo outlines the trip generation estimates associated with the proposed development and a review of the parking demand. The development’s AM and PM peak hour trip generation are 40 and 54 trips, respectively. As the development will not be expected to generate a significant traffic volume staff does not have concerns regarding the surrounding street network capacity or level of service associated with the proposed development. EASEMENTS The property proposed for development at 2970 Water Tower Place was platted in 2003 (Block 1 Lot 1 of Arboretum Business Park 5th Addition). At that time typical public drainage and utility easements were provided with the platting of the subdivision. No additional public easements are necessary for site plan approval. 544 Page 2 of 5 Private cross access easement and declarations for parking with the abutting property (2932 Water Tower Place) must be recorded to benefit the development prior to or concurrently with the recording of the Site Plan Agreement. GRADING & DRAINAGE The existing lot where the Lifetime pickleball expansion is proposed is currently a parking lot with small accessory buildings and concrete pads. This area sheet flows from west to east towards the adjacent existing parking lot where stormwater runoff is picked up in storm sewer catch basins and conveyed south to the storm sewer system within Water Tower Place. In the proposed condition drainage from the pickleball courts will sheet flow to the west and south into two proposed filtration basins. Locations for the roof drains are required to confirm which way the runoff from the proposed building will drain. However, it is assumed that this will be directed to the southern filtration basin. Because some of the proposed impervious area cannot be routed to the new filtration basins due to the site layout and grading, additional storm sewer is proposed within the existing parking lot that will direct stormwater runoff to the proposed filtration basin. The outlet for the filtration basin is proposed to connect into the existing storm sewer system within the Lifetime Fitness parking lot and continue to convey flow into the Water Tower Place storm sewer as it does in existing conditions. All onsite storm sewer and Best Management Practices (BMPs) will be privately owned and maintained. STORM WATER MANAGEMENT Article VII, Chapter 19 of City Code describes the required storm water management development standards. Section 19-141 states that “these development standards shall be reflected in plans prepared by developers and/or project proposers in the design and layout of site plans, subdivisions and water management features.” These standards include abstraction of runoff and water quality treatment resulting in the removal of 90% total suspended solids (TSS) and 60% total phosphorous (TP). The proposed project is located within the Riley Purgatory Bluff Creek (RPBCWD) and is therefore subject to the watershed’s rules and regulations. A Stormwater Management Report dated May 15, 2023 was submitted by the applicant to the City and provided to the watershed district concurrently as part of the final plat review. Comments provided by the RPBCWD must be addressed and a permit from RPBCWD is required prior to construction. The site is within RPBCWD and is required to meet all applicable watershed rules which includes volume abstraction of 1.1 inches of runoff from all new or fully reconstructed impervious areas. The required volume abstraction is 4,963 cubic feet based on the disturbed impervious area of 54,137 square feet provided. Soil borings were submitted dated July 3, 2013, which included five soil borings within the Lifetime Fitness Pickleball project location. The soil borings showed clayey sand throughout the lot. A double ring infiltrometer test was performed August 1, 2019 at the north end of the site, not at the proposed location of the filtration basins. The double ring infiltrometer testing showed infiltration rates ranging from 0.0-0.04 in/hr within the inner 545 Page 3 of 5 ring indicating poor infiltration. Based on the soil borings and double ring infiltrometer, the applicant noted this is a restricted site and that the full volume abstraction could not be provided onsite due to the unsuitable soils. The applicant proposes going through sequencing and providing the maximum extent practicable for volume control, in line with the RPBCWD rules and meeting water quality requirements onsite. Volume abstraction is proposed below the draintile outlets in the filtration basins, at a depth of 2.4 inches across the basin bottom. The provided volume abstraction volume is 1,623 cubic feet. This infiltration area is shown to draw down within 48 hours assuming an infiltration rate of 0.02 inches per hour based on the double ring infiltrometer testing. P8 modeling was provided and reviewed to confirm the site is providing the required 90% TSS and 60% TP removal requirements. The modeling shows the site is meeting the required treatment removals, however there are several updates to the model needed in order to make it consistent with the plans. These updates should be made, and the water quality requirements should be confirmed to still be met once the modeling has been updated. Electronic copies of the updated P8 model should be included in future submittals. The Stormwater Management Report and supporting Hydrologic and Hydraulic HydroCAD models were reviewed. The HydroCAD modeling shows the site is meeting rate control for the 2-, 10-, and 100-year storm events. There are some comments on the modeling that should be addressed to be consistent with the plans. Once those comments are addressed it should be confirmed rate control requirements are still met. The applicant shall provide final versions of all modeling (HydroCAD and P8) and SWMP report to address remaining comments and confirm rate, volume and water quality requirements are still being met as part of the final site plan approval. As outlined in the City’s Surface Water Management Plan adopted in December 2018, the City requires at least 3 feet of freeboard between a building elevation and adjacent ponding features. The proposed building is not in compliance with the freeboard requirement with respect to either of the two proposed filtration basins. The site design will need to be modified in order to meet the City’s three foot freeboard requirement. There are design concerns with the configuration of the proposed filtration basin. The design has the inlet and outlet pipes located adjacent to each other which would cause short circulating of the stormwater resulting in decreased performance. Additional infiltration tests should be completed at the filtration basin location to determine the design and any necessary soil remediation needed to increase abstraction. Pretreatment should be provided before stormwater is introduced into the filtration basin to increase performance and minimize maintenance. As such the applicant shall work with Staff to improve the proposed stormwater design. The proposed BMPs are to be privately owned and therefore will require an Operations and Maintenance (O&M) Agreement and associated plan. The plan will need to identify the 546 Page 4 of 5 maintenance schedule, responsible party, and should include information on how the system will be cleaned out. The proposed BMPs are located outside of drainage and utility easement. EROSION CONTROL The proposed development will impact one (1) acre of disturbance and will, therefore, be subject to the General Permit Authorization to Discharge Stormwater Associated with Construction Activity Under the National Pollution Discharge Elimination/State Disposal System (NPDES Construction Permit). The applicant has prepared and submitted a Surface Water Pollution Prevention Plan (SWPPP) which was included in the submittal. The SWPPP is a required submittal element for final site plan review along with the Erosion and Sediment Control Plan (ESCP) in accordance with Section 19-145 of City Ordinance. No earth disturbing activities may occur until an approved SWPPP is approved. The SWPPP and ESCP submitted were generally consistent with City Ordinance, however some issues including the placement of the construction entrance, topsoil specifications, and the use of erosion control blanket which will need to be addressed. The SWPPP and ESCP shall be updated as the plans are finalized, when the contractor and their sub-contractors are identified and as other conditions change. All erosion control shall be installed and inspected prior to initiation of site grading activities. UTILITIES The site has access to sanitary sewer and water mains abutting the property to the south within the existing public right-of-way (Water Tower Place). The applicant is proposing to connect off an existing 6” gate valve for water service and 6” PVC sanitary sewer stub for sanitary service. These utility service extensions will be privately owned and maintained. Final construction plans, including the utility connections, will be subject to review and approval by staff prior to recording of the Site Plan Agreement. ENGINEERING RECOMMENDATIONS: 1. The developer shall enter into a site plan agreement with the City and provide necessary financial security to guarantee compliance with the terms of site plan approval. 2. It is the developer’s responsibility to ensure that permits are received from all other agencies with jurisdiction over the project (i.e. Carver County, RPBCWD, Board of Water and Soil Resources, MnDOT, etc.) prior to the commencement of construction activities. 3. Private cross access easement and declarations for parking between Block 1 Lot 1 and Lot 2 of the Arboretum Business Park 5th Addition must be recorded prior to or concurrently with the recording of the Site Plan Agreement. 4. The developer and their Engineer shall work with City staff in amending the construction plans, dated May 15, 2023 prepared by Kristina Elfering, PE with Elfering & Associates, to fully satisfy construction plan comments and concerns. Final construction plans will be subject to review and approval by staff prior to recording of the site plan agreement. 547 Page 5 of 5 WATER RESOURCES RECOMMENDATIONS: 1. The City requires at least 3 feet of freeboard between a building elevation and adjacent ponding features. The proposed building is not in compliance with the freeboard requirement with respect to either of the two proposed filtration basins. The site design will need to be modified in order to meet the City’s three foot freeboard requirement. 2. The applicant shall provide a copy of conditional approval from the RPBCWD as part of any future plan submittals. 3. Final SWPPP and ESCP plans will be subject to review and approval by staff prior to recording of the site plan agreement. 4. The applicant shall update the models (HydroCAD, MIDS and P8) per City and any watershed district comments and submit updated computations and models in their native forms with the final site plan submittal and final construction plans. 5. The applicant shall work with staff to optimize the stormwater design. 6. The applicant shall enter into an Operations and Maintenance Agreement for any proposed privately owned stormwater facilities which shall be recorded concurrently with the final site plan agreement. 548 1 | P a g e Life T ime Pickleball Development , Chanhassen, MN May 19th, 2023 To: Kristie Elfering; Elfering & Associates From: Katie Schmidt, PE Re: Initial Traffic Review Memorandum – Life Time Pickleball –Chanhassen, MN SSTS, LLC has conducted a trip generation and parking review for the proposed Life Time Pickleball Development in Chanhassen, MN. The location of the Pickleball Development is in the area of the temporary parking lot in the southwest quadrant of the Life Time Corporate Campus, as illustrated by Figure 1. The proposed Pickleball Development consists of 14 total courts with 8 indoor courts and 6 outdoor courts. It is noted the indoor court building will house the 8 courts and restrooms with no other uses. Parking for the Pickleball Development is proposed to be accommodated by cross parking in the existing parking lot for Life Time Corporate Office Building 3 directly to the east. This memorandum discusses the trip generation potential for the proposed pickleball use and the parking demand. Trip Generation The volume of vehicle trips generated by the proposed Pickleball Development has been estimated for the weekday AM and PM peak hours of adjacent street traffic and on a daily basis using the data methodology described in the Institute of Transportation Engineers’ Trip Generation Manual 1, 11th Edition. The ITE data does not have a specific Pickleball land use. Rather, the Tennis Court land use was used as very similar operations are expected with the same number of players per court. Table 1 summarizes the trip generation estimate for the Proposed Pickleball Development. Table 1 - Trip Generation for Apartments *Trip generation rate for AM is based on a correlation of AM/PM of generator for land use 491 (Tennis Club). As shown in Table 1, the Pickleball Development is estimated to generate the following: 1 Trip Generation Manual, Institute of Transportation Engineers (ITE), 11th Edition Trips Generated: Enter Exit Enter Exit Tennis Courts 490 14 courts 20 20 27 27 379 20 20 27 27 54Totals40 379 PM Peak Weekday ADT Land Use Land Use Code Size AM Peak* Figure 1 - Project Location 549 2 | P a g e Life T ime Pickleball Development , Chanhassen, MN • 40 trips (20 entering and 20 exiting) during the morning traffic peak, • 54 trips (27 entering and 27 exiting) during afternoon traffic peak hour, and • 379 trips per day. These estimates could be conservative as no reductions were taken for shared trips from the Life Time Campus. It is likely that some of the pickleball players could walk over from the health club and/or employees could play before/during/after their work day. Additionally, site generated trips during the winter would be reduced as the outdoor courts will not be open. Parking Considerations Per Chanhassen City Code, 48 parking stalls for the proposed Pickleball Development would be required. The code states that a Recreational Facility shall have 20 spaces plus two spaces per court. Similar to the trip generation estimates this requirement does not consider shared trips from the Life Time Campus. Cross parking directly to the east with the Life Time Corporate Office Building #3 (2932 Water Tower Pl) existing park lot is proposed. With the inclusion of some additional handicap parking spaces for the proposed development this existing parking lot will have 117 spaces. Due to hybrid work policies at Life Time Corporate this parking lot is underutilized. To provide a current snapshot of parking use in Life Time Corporate Office Building #3 lot, a parking inventory was taken on Monday, May 15th at 2 PM. During this timeframe 21 vehicles were parked in the lot and 96 spaces we empty. It is likely that there will be available capacity for cross parking for the Pickleball Development. Additionally, parking could be available in the southwest portion of the health club lot with the pickleball courts accessible by the stairs and sidewalk. The parking inventory indicated only 6 cars parked in this corner with 81 open spaces. On the weekends it is likely that the Life Time Corporate Office Building #3 parking lot will be empty as no employees will be working and more than ample space will be available for Pickleball parking. Conclusion The proposed Pickleball Development is estimated to generate 40 AM peak hour trips, 54 PM peak hour trips and 379 daily trips. This estimate could be high as it does not consider shared trips with Life Time Health Club guests or use by Life Time Corporate employees. Additionally, there is existing parking capacity for cross parking operations in the Life Time Corporate Office Building #3 parking lot. Please contact Katie Schmidt at katie@s2traffic.com or 952-212-7625 with any questions. 550 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA FINDINGS OF FACT AND RECOMMENDATION IN RE: Application of Life Time Fitness for Site Plan Review. On June 20 , 2023, the Chanhassen Planning Commission met at its regularly schedule meeting to consider the application of Life Time Fitness for a site plan review of Life Time Pickleball Facility for the property located at 2970 Water Tower Place. The Planning Commission conducted a public hearing on the proposed site plan was preceded by published and mailed notice. The Planning Commission heard testimony from all interested persons wishing to speak and now makes the following: FINDINGS OF FACT 1. The property is currently zoned Planned Unit Development (PUD). 2. The property is guided by the Land Use Plan for Office Industrial Use. 3. The legal description of the property is: Lot 1 Block 1 Arboretum Business Park 5th Addition 5. Site Plan: (1) Is consistent with the elements and objectives of the city's development guides, including the comprehensive plan, official road mapping, and other plans that may be adopted; (2) Is consistent with Chapter 20, Article II, Division 6. (3) Preserves the site in its natural state to the extent practicable by minimizing tree and soil removal and designing grade changes to be in keeping with the general appearance of the neighboring developed or developing or developing areas; (4) Creates a harmonious relationship of building and open space with natural site features and with existing and future buildings having a visual relationship to the development; 551 (5) Creates a functional and harmonious design for structures and site features, with special attention to the following: a. An internal sense of order for the buildings and use on the site and provision of a desirable environment for occupants, visitors and general community; b. The amount and location of open space and landscaping; c. Materials, textures, colors and details of construction as an expression of the design concept and the compatibility of the same with adjacent and neighboring structures and uses; and d. Vehicular and pedestrian circulation, including walkways, interior drives and parking in terms of location and number of access points to the public streets, width of interior drives and access points, general interior circulation, separation of pedestrian and vehicular traffic and arrangement and amount of parking. (6) Protects adjacent and neighboring properties through reasonable provision for surface water drainage, sound and sight buffers, preservation of views, light and air and those aspects of design not adequately covered by other regulations which may have substantial effects on neighboring land uses. 8. The planning report dated June 13, 2023, prepared by Eric Maass is incorporated herein. RECOMMENDATION The Planning Commission recommends that the City Council approve the site plan review subject to the conditions of the staff report. ADOPTED by the Chanhassen Planning Commission this _____ day of _____________, 202_. CHANHASSEN PLANNING COMMISSION BY:___________________________________ Its Chairman 552 CITY OF CHANHASSEN AFFIDAVIT OF MAILING NOTICE STATE OF MINNESOTA) ) ss. COLINTY OF CARVER ) I, Kim T. Meuwissen, being first duly sworn, on oath deposes that she is and was on June 8, 2023,the duly qualified and acting City Clerk of the City of Chanhassen, Minnesota; that on said date she caused to be mailed a copy of the attached notice to consider a request for a Site PIan Review to build an indoor Pickleball facility and outdoor courts for property located *2970 Water Tower Place. Property Owner: Lifetime Fitness, Applicant: Gage Thompson to the persons named on attached Exhibit "A", by enclosing a copy of said notice in an envelope addressed to such owner, and depositing the envelopes addressed to all such owners in the United States mail with postage fully prepaid thereon; that the names and addresses of such owners were those appearing as such by the records of the County Treasurer, Carver County, Minnesota, and by other appropriate records. . Meuwissen,City to before me 2023 Public 553 Subiect Parcel Disclaimer This map is neither a legally recorded map nor a survey and is not intended to be used as one. This map is a compilation of records, information and data located in various city, county, state and federal offices and other sources regarding the area shown, and is to be used for reference purposes only. The City does not warrant that the Geographic lnformation System (GlS) Data used to prepare this map are error free, and the City does not represent that the GIS Data can be used for navigational, tracking or any other purpose requiring exacting measurement of distance or direction or precision in the depiction of geographic features. The preceding disclaimer is provided pursuant to Minnesota Statutes 5466.03, Subd. 21 (2000), and the user of this map acknowledges that the City shall not be liable for any damages, and expressly waives all claims, and agrees to defend, indemnify, and hold harmless the City from any and all claims brought by User, its employees or agents, or third parties which arise out of the user's access or use of data provided. Disclaimer This map is neither a legally recorded map nor a survey and is not intended to be used as one. This map is a compilation of records, information and data located in various city, county, state and federal offices and other sources regarding the area shown, and is to be used for reference purposes only. The City does not warrant that the Geographic lnformation System (GlS) Data used to prepare this map are error free, and the City does not represent that the GIS Data can be used for navigational, tracking or any other purpose requiring exacting measurement of distance or direction or precision in the depiction of geographic features. The preceding disclaimer is provided pursuant to Minnesota Statutes 5466.03, Subd. 21 (2000), and the user of this map acknowledges that the City shall not be liable for any damages, and expressly waives all claims, and agrees to defend, indemnify, and hold harmless the City from any and all claims brought by User, its employees or agents, or third parties which arise out of the user's access or use of data provided. (Tax_name) <Tax_add_!1 > <Tax_add_!2> <Next Record ><<Tax_name)) <Tax_add_|1 > <Tax_add_12> Subject Parcel t! it i ! *-I I ! II Dfl :t 554 Notice of Public Hearing Chanh assen Plan Commission Meetin Date & Time:, June 20, 2023, at 6: 00 p.m. This hearing may not start until later in the order oftheon Tuesday Location:HallCouncil 7700 Market Blvd. Proposal:Consider a request for a Site Plan Review to build an indoor Pickleball facility and outdoor courts. Owner:Lifetime Fitness Property Location What Happens at the Meeting: The purpose of this public hearing is to inform you about the applicant's request and to obtain input from the neighborhood about this project. During the meeting, the Chair will lead the public hearing through the following steps:l. Staff will give an overview of the proposed project. 2. The applicant will present plans on the project. 3. Comments are received from the public. 4. Public hearing is closed and the planning Commission discusses the project. Questions & Comments: To view project documents before the meeting, please visit the city's proposed development webpage at: . lf you wish to talk to someone about this project, please contact Bob Generous by email at emaass@chanhassenmn.sov or by phone at952-227-l139. If you choose to submit written comments, please send one copy to staff in advance of the meeting. Staff will provide copies to the Planning Commission. The staff report for this item will be available online at the city,s Agendas & Minutes webpage the Thursday prior to the Planning Commission meeting. Sign up to receive email updates about this or other projects. Go to City Review Notice of Pu Chanhassen Plann blic Hearing Commission Date & Time:uneJ 6at 00Tuesday20,This not startp.m.hearing may lateruntil the the oforder the Location Hall Council 7700 Market Blvd.C Proposal:Consider a request for a Site Plan Review to build an indoor Pickleball facility and outdoor courts. Applicant: Owner:Lifetime Fitness Property Location 2970 Water Tower Place reverse side of What Happens at the Meeting: The purpose of this public hearing is to inform you about the applicant's request and to obtain input from the neighborhood about this project. During the meeting, the Chair will lead the public hearing through the following steps: Staff will give an overview of the proposed project. The applicant will present plans on the project. Comments are received from the public. Public hearing is closed and the planning Commission discusses the project. l. 2. 3. 4. Questions & Comments: To view project documents before the meeting, please visit the city's proposed development webpage at: . lf you wish to talk to someone about this project, please contact Bob Generous by email at emaass@chanhassenmn.gov or by phone at952-227-l139. If you choose to submit written comments, please send one copy to staff in advance of the meeting. Staff will provide copies to the planning Commission. The staff report for this item will be available online at the city's Agendas & Thursday prior to the Planning Minutes webpage the Commission meeting. sign up to receive email updates about this or other projects. Go to h ttps : //www. c h a n h asse n m n. q ov/i-wa nt-to/s u bsc ri be Review Applicant:@ge Thompson 2970 Water Tower Place A location map is on the reverse side ofthis notice. 2023, in 555 Tax name BALL RANCH CO LLC BOERGER BUILDING LLC CENTURY 2OOO PARTNERS ttP H ELSEN E PARTNERS LLC KCP RE LLC Tax add 11 6495 CITY WEST PKWY 2860 WATERTOWER PL 6495 CITY WEST PKWY 5685 GRANT LORENZ RD 5310 SAN VICENTE BLVD # 250 Tax add 12 EDEN PRAIRIE, MN 55344- CHANHASSEN, MN 55317-8004 EDEN PRAIRIE, MN 55344- EXCELSTOR, MN 55331-8363 LOS ANGELES, CA 90048. REGENTS OF UNIV OF MINNESOTA US BANK NA 319 15TH AVE SE PO BOX 460169 MINNEAPOLIS, MN 55455.0199 HOUSTON, TX 77056. LTF REAL ESTATE MP II LLC 2902 CORPORATE PLACE CHANHASSEN, MN 55317.4560 556 City Council Item July 17, 2023 Item Ordinance XXX: Consider a Six-Month Moratorium on Land Use Applications for Properties Zoned Central Business District (CBD) to Study Allowed Uses File No.Item No: G.2 Agenda Section GENERAL BUSINESS Prepared By Eric Maass, Planning Director Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council adopts the interim ordinance for a six-month moratorium on Land Use Applications for properties zoned Central Business District." Motion Type Simple Majority Vote of members present Strategic Priority Development & Redevelopment SUMMARY Staff has prepared the attached interim ordinance temporarily prohibiting development within the Central Business District (CBD). The interim ordinance is proposed to allow the city time to properly study the allowed uses within the CBD zoning district. The interim ordinance states that it will be in effect for a period of up to six (6) months or until the City Council adopts an updated ordinance, whichever occurs first. The interim ordinance would automatically expire upon the City Council adopting an ordinance updating the CBD zoning district. BACKGROUND DISCUSSION 557 BUDGET RECOMMENDATION Staff recommends adoption of the moratorium interim ordinance. ATTACHMENTS Interim Ordinance for Central Business District Cafe Zupas Letter to Mayor Ryan.pdf 558 1 227002v2 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. XXX AN INTERIM ORDINANCE TEMPORARILY PROHIBITING DEVELOPMENT IN A DESIGNATED AREA OF THE CITY OF CHANHASSEN THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS: SECTION 1. DEFINITIONS: The following terms when used in this ordinance shall mean: Comprehensive municipal plan: the definition in Minnesota Statutes § 462.352, Subd. 5 is adopted by reference. Designated Area: means all property zoned CBD, Central Business District, in the City of Chanhassen Official Controls:the definition in Minnesota Statutes § 462.352, Subd. 15 is adopted by reference. Plat: the definition in Minnesota Statutes § 462.352, Subd. 13 is adopted by reference. Subdivision: the definition in Minnesota Statutes § 462.352, Subd. 12 is adopted by reference. SECTION 2.INTENT: The City Council is directingstaff to complete an in-depth study of the official controls for the Designated Area to complement the current study being conducted by Hoisington Koegler Group, Inc. related to Downtown Design Guidelines and to propose such amendments to the Official Controls that the planning staff deems necessary. It is the intent of this ordinance to allow the City of Chanhassen time to complete an in-depth study concerning changes in official controls within the study area and in the interim to protect the planning process and the health, safety, and welfare of the citizens of the community. SECTION 3. TEMPORARY PROHIBITION: Pending the completion of the above- referenced study and adoption of appropriate official controls, no approval will be granted for any of the following in the Designated Area: Changes in official controls Comprehensive municipal plan amendments Plats Subdivisions Conditional use permits Interim use permits Variances 559 2 227002v2 Site plan approval Building permits for new buildings and structures Building permits that result in the expansion of the footprint or floor area of an existing building or structure. SECTION 4. EXEMPTIONS: This ordinance shall not apply to the following: (A)Building permits for work in the interior of an existing building. (B)Final plat approval of a subdivision that has been given preliminary approval prior to the effective date of this ordinance. (C)Zoning permits and sign permits. SECTION 5. EFFECTIVE DATE: Immediately upon passage and shall remain in effect until the date of the adoption of the official controls contemplated hereunder and the repeal of this ordinance or January 23, 2024, whichever occurs first. PASSED AND ADOPTED this _____ day of __________, 2023, by the City Council of the City of Chanhassen, Minnesota. Kim Meuwissen, City Clerk Elise Ryan, Mayor (Published in the Chanhassen Villager on ) 560 561 City Council Item July 17, 2023 Item Letter from Arbor Day Foundation Congratulating Chanhassen on receiving a 2022 Tree City USA Growth Award File No.Item No: J.1 Agenda Section CORRESPONDENCE DISCUSSION Prepared By Kim Meuwissen, City Clerk Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 562 Arbor Day Foundation 2022 Tree City USA Growth Award.pdf 563 Cov (CsponclenCc @ Arbor DavFoundation 2l I N 1 2th St . Linco n, NE 68508 . BBB-448-7337 . arbordalorg We inspire people to plant, nurture, and celebrate trees. Mayor Elise Ryan 7700 Market Blvd PO Box 147 Chanhassen, MN 55387 Dear Tree City USA Supporter, On behalf of the Arbor Day Foundation, I am thrilled to congratulate Chanhassen on receiving a2022 Tree City USA Growth Award. This award is presented to participating Tree City USA communities that have demonstrated increased levels of tree care and cornmunity engagement. Fourrded in 1916, Tree City USA is one of the Arbor Day Foundation's earliest programs. We partner with the U.S. Forest Service and the NationalAssociation of State Foresters to encourage tree planting in cities nationwide. Becoming a Tree City USA is an accomplishment in and of itself - but Chanhassen has gone above and beyond, taking initiative to create a greener future for its residents. This Growtlr Award is proof of that. I hope you are as excited as we are to share this accomplishment rvith your residents and local media. Enclosed in this packet is a press release for you to distribute at your convenience. We suggest announcing your recognition during your community's Arbor Day ceremony. Thank you for going the extra mile in helping us plant, nufture and celebrate trees. We hope to continue presenting this award to you for many years to come. Best Regards, Dan Lambe Arbor Day Foundation Chief Executive [@_-.fl66dT@ 12P,* 564 @ Arbor DayFoundatien' 2l 1 N 1 2th St. . Lincoln, NE 68508 . 888-448-7337 . arborday.org We inspire people to plant, nurture, and celebrate trees. FOR IMMEDIATE, RELEASE Contact: Jasmine Putney Arbor Day Foundation 402-216-9307 iputney@arborda)r.org About the Arbor Day Foundation Founded in l972,the Arbor Day Foundation has grown to become the largest nonprofit membership organization dedicated to planting trees, with more than one million members, supporters and valued partners. Since 1972, almost 500 million Arbor Day Foundation trees have b-een planted in neighborhoods. communities, cities and forests throughout the world. Our vision is to lead toward a world where trees are used to solve issues critical to survival. As one of the world's largest operating conservation foundations, the Arbor Day Foundation, through its members, partners and programs, educates and engages stakeholders and communities across the globe to involve themselves in its mission of planting, nurturing and celebrating trees. More information is available at arborday.org. SOY INK Arbor Day Foundation Names Chanhass en a 2022 Tree City USA@ Growth Award Recipient LINCOLN, Nebraska (611212023) - Chanhassen received a2022 Tree City USA Growth Award from the Arbor Day Foundation for its commitment to effective urban forest management. A Growth Award is bestowed to a community alongside their Tree City USA recognition for demonstrating environmental improvement and a higher level of tree care. The award recognizes major milestones and annual activities in five categories building ateam, measuring trees and forests, planning the work, performing the work, and building the community framework. "Tree City USA communities can experience the positive effects of a thriving urban canopy year after year," said Dan Lambe, chief executive of the Arbor Day Foundation. "The trees being planted and cared for by Chanhassen are ensuring that generations to come will enjoy a better quality of life. Additionally, participation in this program helps cultivate a sense of stewardship and pride for the trees the community plants and cares for." Trees are a vital part of every community. They help reduce energy consumption, cool temperatures, clean the air and water, raise property values, and provide a habitat for wildlife. More information on the program is available at arborday.org/TreeCityUSA. 565 Northland Salons, LLC. D B A M Y S A L O N S U I T E® LICENSE AGREEMENT DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 356566 PAGE 2 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT BASIC LICENSE PROVISIONS 1. DATE OF LICENSE AGREEMENT: 2. LICENSOR: Northland Salons, LLC DBA: MY SALON Suite 3. MANAGER: Northland Management Group, LLC 4. ADDRESS OF LICENSOR: Northland Salons, LLC. C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 Phone: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com 5. ADDRESS OF SPACE: 8951 Crossroads Blvd Chanhasssen, MN 55317 Salon Suite Number: ___ 6. LICENSEE’S NAME: 7. LICENSEE’S ADDRESS: TELEPHONE: EMAIL: 8. OCCUPANCY DATE: 9. TERM: (See Paragraph 2.1.) Unless sooner terminated as hereinafter provided, the initial term of this License shall be on or before (1) year beginning on the first day of the month following the Occupancy Date and will automatically renew on a (1) year basis thereafter unless Licensee provides Licensor with sixty (60) days advance written notice of Licensee’s intent not to renew the License. 10. WEEKLY LICENSE FEE: (See Paragraph 3.1) $ per week due each Monday during the Term. 11. MOVE-IN SPECIAL: (See Paragraph 3.1.1) $ per week for the first __ of the initial Term. 12. RETAINER: (See Paragraph 3.4) Licensee shall deposit with Licensor a retainer equal to two (2) weeks License Fee in the amount of $ . 13. USE OF LICENSED SPACE: (See Paragraph 4.) Licensee shall use the Licensed Space as a general beauty and spa complex and shall not use the Space for any other purpose without the prior written consent of Licensor, which consent may be granted or withheld in Licensor’s sole discretion. In the event of any conflict between the Basic License Provisions and the balance of this License, the latter shall control. Each of the terms contained in the Provisions shall be construed in conjunction with the remainder of this License, in particular, the referenced portions thereof. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 55318 jaimedb28@gmail.com 52 weeks 9522405407 206 2023-09-01 315.00 6/29/2023 275.00 630.00 Minnesota 737 7th St Chaska Jaime DeBoer 357567 PAGE 3 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSE AGREEMENT This License Agreement (“License”) dated the ____ ______(“Date”) is entered into by and between Northland Salons, LLC DBA: My Salon Suite ("Licensor"), and ("Licensee"). For good and valuable consideration, including the promises of the parties, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 1. Licensed Space: 1.1 Space. In consideration of the License Fees herein provided, and the terms, provisions and covenants hereof, Licensor hereby licenses to Licensee, and Licensee hereby licenses from Licensor, a salon suite known or to be known by the salon suite number specified in Item 4 of the Basic License Provisions (the “Space”) in the building known as My Salon Suite located at 8951 Crossroads Blvd, Chanhassen, MN 55317(the “Building”). Any reference to the term “Building” shall include the salon building, the land, and the common areas, unless the context requires otherwise. The License of the Space entitles Licensee to the non-exclusive right to use the common areas and parking lot, subject to the rights and considerations of other Licensees. This License constitutes a revocable license agreement between Licensee and Licensor. Licensee agrees that this License creates no tenancy, leasehold estate or any other property interest. Licensee hereby acknowledges and agrees that this License is subordinate to the terms of the lease agreement between the Licensor and its landlord. 2. Term: 2.1 Term. Unless sooner terminated as hereinafter provided, the term of this License shall be for (1) year beginning the first day of the month following (the "Occupancy Date") and unless renewed shall terminate upon expiration of this Term. 2.2 Renewal. Provided Licensee has never been in default hereunder, this License will automatically renew following the Initial Term for up to a maximum of three additional terms of (1) year each, (a “Renewal Term”) unless Licensee gives written notice to Licensor at least sixty (60) days prior to the end of the Initial Term or any Renewal Term that it will not renew the License, time being of the essence. Upon renewal, this License shall be extended upon the terms, covenants and conditions as provided in this License. 2.3 Renewal Option. In the event either the Licensor or the Licensee desires not to renew the License as provided for herein in Paragraph 2.2., then the deciding party shall give the other party written notice of its intention to not renew the License not later than sixty (60) days prior to the end of the then current Term, time being of the essence. 3. License Fee: 3.1 Weekly License Fee. Licensee shall pay Licensor $ in equal weekly installments payable upon the first Monday following the Occupancy Date, or the date that the Licensee occupies the Space, whichever is sooner, and is due at by no later than Noon on each Monday thereafter. If the Occupancy Date is not on a Monday, then the Weekly License Fee shall be pro-rated for the first week. The License Fee may increase a maximum of fifteen percent (15%) per year for each Renewal Term with Licensor giving Licensee notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term. If Licensor fails to give such notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term, then the increase shall automatically be deemed to be DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 2023-09-01 6/29/2023 315.00 Jaime DeBoer 358568 PAGE 4 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ten percent (10%). 3.1.1 Move-In Special. For promotional consideration, the Weekly License Fee shall be in the amount of $ ____ per week for the first __ of the initial Term of this License (the “Move-In Special”). If the Occupancy Date is not on a Monday, then the Move-In Special shall be pro-rated for the first week. 3.1.2 Payments. All payments shall be made to Northland Salons, LLC via ACH through QuickBooks Online (QBO). 3.2 Service Charge. If any installment of the Weekly License Fee or other amount which Licensee is obligated to pay under the terms of this License is not paid within five (5) days after it’s due date, said amount shall be subject to a penalty of ten percent (10%) of the amount due plus a service charge of one and one-half percent (1.5%), or such lesser percentage as may be the maximum permitted by law, for each month or fraction thereof until the Weekly License Fee is paid. 3.3 Insufficient Funds. Licensee agrees to pay the charge of $20.00 for each check or other payment provided by Licensee to Licensor that is returned to Licensor for lack of sufficient funds. 3.4 Retainer. Licensee, contemporaneously with the execution of this License, shall deposit with Licensor a Retainer equal to two (2) weeks Weekly License Fee in the amount of $ ___ . In the event that Licensee shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this License, the Retainer shall be returned to Licensee within thirty (30) days after the end of the License and after delivery of entire possession of the Space to Licensor in good condition, reasonable wear and tear accepted. It is understood and agreed that Licensor shall inspect the Space and has the right to make such repairs to the Space as deemed reasonably necessary, and deduct such repair costs from the Retainer. 4. Use of Licensed Space: 4.1 Use. The Space shall be used by Licensee as a general beauty and salon complex, to include massage services and shall not be used for any other purpose without the prior written consent of the Licensor. 4.2 Services Provided by Licensor. Licensor will provide basic janitorial services of common areas and restroom facilities, plus electricity, heating, cooling, water, sewage, HVAC service maintenance, security system and Wi-Fi for Licensee and Licensee's guests. 4.2.1 The Suite consists of the following items (the “Suite Equipment”): _____ Salon Suite: Salon Suite: Double-sided styling station with full-length mirror, hydraulic styling chair, state-of-the-art adjustable shampoo bowl and shampoo chair with storage cabinet, private color bar with sink and lower cabinet storage, upper cabinet with color tube dividers, cushion flooring, granite countertops, and a private lockable entrance. _____ Spa Suite: Upper and lower cabinet storage with sink, adjustable massage bed with storage, cushion flooring, granite countertops, and a private lockable entrance. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 275.00 630.00 X 52 weeks 359569 PAGE 5 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 4.3 Licensee Obligations. Licensor makes no representation regarding the condition of the Space and Licensee accepts the Space in its “As Is” condition. Licensee agrees to at all times keep and maintain the Space in a clean and professional condition. Licensee, at Licensee’s own expense, shall promptly repair any damage to the Space Equipment caused by any act or omission of Licensee or any agent, employee, customer, guest or invitee of Licensee. Licensee shall not bring in any furniture, fixtures and or appliances into their Space without prior written approval by the Licensor. Appliances, such as refrigerators and microwaves shall be either black or stainless steel. At the end of License, Licensee agrees to return the Space and Space Equipment in as good condition as at the beginning of the term of this License with some reasonable ordinary wear and tear accepted. 4.4 Licenses. Licensee shall possess and legally maintain at all times during its occupancy of the Space ANY LICENSING requirements to own and operate a cosmetology business in the State of Minnesota. Licensee bears full responsibility of knowledge and education of said licensing requirements. 4.5 Conduct. Licensee shall not use the Space in any manner constituting a violation of any ordinance, statute, regulation or order of any governmental authority or applicable state and/or federal laws or in violation of Licensor’s general rules (Exhibit A). Licensee shall use the Space in a safe, careful, proper and lawful manner and shall keep and maintain the Space in as good a condition as when Licensee first took possession thereof, and Licensee shall not commit, or allow being committed, any act of waste in, on or about the Space or the Building. Licensee shall not create, maintain or permit any nuisance in the Space or the Building, or permit any objectionable or offensive noise or odors to be emitted from the Space. If Licensee uses the Space in any manner which would invalidate any policy of insurance now or hereafter carried on the Building or increase the rate of premiums payable on any such insurance policy, Licensor may, at its option, require Licensee to discontinue such use or to reimburse Licensor as additional License Fee for any increase in premiums attributable to the use being made by Licensee. 4.6 Surrender. Any personal property or trade fixtures not removed within fifteen (15) days following the expiration or termination of the License may be removed and disposed of by Licensor without incurring any liability to Licensee. 5. Building Services: 5.1 Interruption of Services. Licensor does not represent or warrant the uninterrupted availability of utilities or Building services, which may be discontinued or temporarily diminished by reason of accident, emergency or unforeseeable act of God or other causes beyond Licensor’s control. Any such interruption shall not render Licensor liable to Licensee. 5.2 Repairs, Maintenance. Licensor shall be responsible for the repair and maintenance of the Building and those systems which are a part of the common building improvements, the cost of which shall be borne by Licensor unless made necessary by the negligence, misuse or default of Licensee, its employees, agents, customers or invitees, in which event Licensee shall reimburse Licensor for same. 5.3 Signage. Licensor will exclusively provide all signage. Licensee shall not apply any signs, decals, or covering of any kind to exterior windows or interior glass without prior written permission from the Licensor. 5.4 Fire and Other Casualty. If the Space is damaged or destroyed such that the Space is rendered unusable for a period of at least 60 days, Licensor has the option to terminate this License. If the DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 360570 PAGE 6 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT License is not terminated, Licensor shall repair or restore the Space, and License Fee shall be abated in proportion to the damaged area until the Space are restored. In no event shall Licensor be required to repair or replace Licensee’s inventory, fixtures, furnishings, equipment or improvements located in or installed on the Space. 6. Indemnification, Insurance: 6.1 Indemnification. Licensee shall indemnify and hold harmless Licensor and its agents, successors and assigns from and against all expense, injury, loss, claims or damage, including attorney’s fees and disbursements, to any person or property arising from, related to, or in connection with, Licensee’s use, occupancy, construction or repair of the Space, except injury, loss, claims or damage caused solely by the gross negligence or willful misconduct of Licensor. All property of Licensee and Licensee’s employees or guests in the Space shall be kept and stored at Licensee’s sole risk and Licensee shall hold Licensor harmless from any claims arising out of damage to such property. 6.2 Licensee Insurance. Licensee, at its own expense, shall maintain during the term of this License a policy for comprehensive general liability insurance, including personal injury and property damage, with contractual liability endorsement, in the amount of $500,000 for property damage and $500,000 per occurrence and $1,000,000 in the aggregate for personal injuries or deaths of persons occurring in or about the Space. Licensee, at its own expense, shall also maintain during the term of the License fire and extended coverage insurance covering the replacement cost of (i) all alterations, additions, partitions and improvements installed or placed on the Space by Licensee or by Licensor at the request of Licensee, (ii) all of Licensee’s personal property contained within the Space. Said policies shall (i) name the Licensor (Northland Salons, LLC) as an additional insured and insure Licensor’s contingent liability under or in connection with this License (except for the worker’s compensation policy, which instead shall include a waiver of subrogation endorsement in favor of Licensor), (ii) be issued by an insurance company which is acceptable to Licensor, and (iii) provide that said insurance shall not be cancelled unless thirty (30) days prior written notice has been given to Licensor. Said policy or policies or certificates thereof shall be delivered to Licensor by Licensee on or before the Occupancy Date and upon each renewal of said insurance. 7. Defaults and Remedies: 7.1 Defaults - Remedies By Licensee. 7.1.1 It shall be an Event of Default: (i) If Licensee does not pay in full when due any and all License Fee and, except as provided in subparagraph 7.1.3. below, Licensee fails to cure such default on or before the date that is 5 days after Licensor gives Licensee notice of default; (ii) If Licensee enters into or permits any Assignment or Subletting in violation of Paragraph 8.6 below; (iii) If Licensee fails to observe and perform or otherwise breaches any other provision of this License, and, except as provided in subparagraph 7.1.3 below, Licensee fails to cure the default on or before the date that is 7 days after Licensor gives Licensee notice of default. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 361571 PAGE 7 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT (iv) If Licensee becomes insolvent or makes a general assignment for the benefit of creditors or offers a settlement to creditors, or if a petition in bankruptcy or for reorganization or for an arrangement with creditors under any federal or state law is filed by or against Licensee, or a bill in equity or other proceeding for the appointment of a receiver for any of Licensee’s assets is commenced, or if any of the real or personal property of Licensee shall be levied upon; provided that any proceeding brought by anyone other than Licensor or Licensee under any bankruptcy, insolvency, receivership or similar law shall not constitute an Event of Default until such proceeding has continued unstayed for more than 30 consecutive days; or (v) If Licensee fails to observe and perform or otherwise breaches any provision of the general rules (Exhibit A) of Licensor, and such failure or breach continues after notice or is repeated within a 60 day period of time. 7.1.2 If an Event of Default occurs, Licensor shall have the following rights and remedies: (i) Licensor, without any obligation to do so, may elect to cure the default on behalf of Licensee, in which event Licensee shall reimburse Licensor upon demand for any sums paid or costs incurred by Licensor (together with an administrative fee of 15% thereof) in curing the default, plus interest at the rate at the prime rate published in the Wall Street Journal plus 5% (the “Interest Rate”) from the respective dates of Licensor’s incurring such costs, which sums and costs together with interest at the Interest Rate shall be deemed additional License Fee; (ii) To enter and repossess the Space, by opening locked doors if necessary, and removing all persons and all or any property, by action at law or otherwise, without being liable for prosecution or damages. Licensor may, at Licensor’s option, make Alterations and repairs in order to license the Space and license all or any part(s) of the Space for Licensee’s account. Licensee agrees to pay to Licensor on demand any deficiency (taking into account all costs incurred by Licensor) that may arise by reason of such re-licensing. In the event of re-licensing without termination of this License, Licensor may at any time thereafter elect to terminate this License for such previous breach; (iii) To accelerate the whole or any part of the License Fee for the balance of the Term, and declare the same to be immediately due and payable; and (iv) To terminate this License and the Term without any right on the part of Licensee to save the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken. 7.1.3 Any provision to the contrary in this subparagraph 7.1.3 notwithstanding, Licensor shall not be required to give Licensee the notice and opportunity to cure provided in subparagraph 7.1.1 above more than twice in any consecutive 12-month period, and thereafter Licensor may declare an Event of Default without affording Licensee any of the notice and cure rights provided under this License. 7.1.4 No waiver by Licensor of any breach by Licensee shall be a waiver of any subsequent breach, nor shall any forbearance by Licensor to seek a remedy for any breach by Licensee be a waiver by Licensor of any rights and remedies with respect to such or any subsequent breach. Efforts by Licensor to mitigate the damages caused by Licensee’s default shall not constitute a waiver of Licensor’s right to recover damages hereunder. No DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 362572 PAGE 8 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT right or remedy herein conferred upon or reserved to Licensor is intended to be exclusive of any other right or remedy provided herein or by law, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity. No payment by Licensee or receipt or acceptance by Licensor of a lesser amount than the total amount due Licensor under this License shall be deemed to be other than on account, nor shall any endorsement or statement on any check or payment be deemed an accord and satisfaction, and Licensor may accept such check or payment without prejudice to Licensor’s right to recover the balance of License Fee due, or Licensor’s right to pursue any other available remedy. 7.1.5 If Licensor commences an action against the other party arising out of or in connection with this License, the Licensor shall be entitled to have and recover from the other party reasonable attorneys’ fees, costs of suit, investigation expenses and discovery costs, including costs of appeal. 7.2 Default by Licensor Under Lease for Entire My Salon Suite. Licensor is a lessee of the entire Suite ("Licensor's Lease"). Pursuant to the provisions of Licensor's Lease, if Licensor defaults under Licensor's Lease, and if Licensor fails to cure such default within the time periods set forth in Licensor's Lease, if any, then the lessor thereunder, at its option, has the right to exercise any one or more of several remedies including termination of Licensor's Lease and re-letting the entire Suite to another lessee. In such a case, this License may terminate without prior notice. 8. Miscellaneous General Provisions: 8.1 Access to the Space. Licensor, its employees, and agents, shall have the right to enter the Space at all reasonable times for any purpose, including examining or inspecting same, showing the same to prospective licensees, and for making such repairs, alterations or improvements to the Space or to the building as Licensor may deem necessary or desirable. 8.2 Eminent Domain. If all or a substantial part of the Space is taken by right of eminent domain, this License shall terminate as of the date Licensor is entitled to all compensation awarded for the taking and Licensee shall have no claim against Licensor for the value of the unexpired term of the License. However, Licensee shall have the right to recover from the taking authority, but not from Licensor, such compensations may be awarded to Licensee on account of moving and relocation expenses and depreciation to and removal of Licensee’s trade fixtures and personal property. 8.3 Notices. Any notice required or permitted to be given under this License shall be deemed to have been given or served when made in writing and delivered in person or mailed by registered or certified mail, postage prepaid, to the party who is to receive such notice at the address specified in this License. When so mailed, the notice shall be deemed to have been given as of the date it was mailed. The addresses for notices and payments may be changed by written notice given to the other party. 8.3.1 Address for Notices. A party’s address shall be as follows or as set forth in a notice to the other party: LICENSOR: Northland Salons, LLC C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 TELEPHONE: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 363573 PAGE 9 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSEE: NAME: ADDRESS: CITY, STATE, ZIP: TELEPHONE: E-MAIL: 8.4 Governing Law and Venue. This License is being executed and delivered in the State of Minnesota and shall be construed and enforced in accordance with the State courts of Minnesota in Hennepin County. Before Licensee may commence litigation against Licensor, Licensee’s dispute must first be mediated. Mediation shall occur within 45 days of Licensee providing written notice of Licensee’s claim to Licensor, with Licensee’s claims and factual support therein identified. 8.5 Complete Agreement; Amendments; Headings. This License, including all Exhibits and Addenda, constitutes the entire agreement between the parties. It supersedes all previous understandings and agreements between the parties, and no oral or implied representation or understanding shall vary its terms. It may not be amended except by a written instrument executed by both parties. The topical headings in this License are inserted only as a matter of convenience and reference, and do not affect, define, limit or describe the scope or intent of this License. 8.6 Assignment and Subletting. Licensee shall not have the right to assign the License without the written consent of Licensor, which consent may be in the sole discretion of Licensor. Notwithstanding any assignment, however, the Licensee shall remain primarily liable under the License. Any assignment or sublicense without Licensor’s prior written consent shall at the Licensor’s option be a termination of this License. 8.7 Liability of Licensor; Disclaimer of Liability. Licensee acknowledges and agrees that the liability of Licensor under this License shall be limited to its interest in the Space and any judgments rendered against Licensor shall be satisfied solely out of the proceeds of sale of its interest in the Space, including the license fees generated thereby, which are actually received by Licensor. Licensee understands and voluntarily accepts any risks associated with Licensee’s services or any use of the Space or Building. Except where prohibited by law, Licensee agrees that Licensor and all of their affiliates and subsidiaries and their respective successors, assignees, officers, directors, owners, employees, agents and representatives will not be liable for any injury, including, without limitation, personal, bodily, or mental injury, economic loss, or any damage resulting from negligence, acts of God, acts of terrorism, and other acts of the Licensor, its employees, officers, managers, representatives, owners, partners, or affiliates. The Licensee expressly and specifically agrees to waive, and agrees not to make, any claim for damages, direct, indirect, punitive, special or consequential, including, but not limited to, lost business, revenue, profits or data, for any reason whatsoever arising out of or in connection with this License, any failure to furnish any service provided hereunder, any error or omission with respect thereto, from failure of any and all courier service to deliver on time or otherwise deliver any items (mail, packages, etc.), or any interruption of services. [Signatures on following page.] DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 Minnesota Jaime DeBoer 55318 9522405407 jaimedb28@gmail.com 737 7th St Chaska 364574 PAGE 10 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT IN WITNESS WHEREOF, the parties hereto have executed this License as of the dates written below. LICENSEE: LICENSOR: Northland Salons, LLC BY: BY: NAME: NAME: Rachel Kueppers TITLE: TITLE: Property Manager DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 Jaime DeBoer Massage therapist Jaime DeBoer 365575 PAGE 11 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT EXHIBIT A LICENSOR’S GENERAL RULES 1. Licensee shall at all times and in all manners conduct itself in a cooperative, cordial and professional manner and shall not do anything that shall disrupt the operations of Licensor or any of its other licensees. In addition, Licensee shall respond to all reasonable requests of Licensor related to the use and occupancy of the Space when Licensor, it its sole discretion, determines that the conduct of Licensee is in conflict with Licensor’s reasonable expectations concerning cooperation, professional conduct and compliance with these General Rules. 2. Licensee is strictly forbidden to bring his/her own children into the salon during the workday. Children of clients are permitted in the salon however they must be accompanied by an adult at all times. Client’s children must remain inside the suite during the client visit. 3. Any sidewalks, lobbies, passages, elevators and stairways shall not be obstructed or used by Licensee for any purpose other than ingress and egress from and to the Space. Licensor shall in all cases retain the right to control or prevent access by all persons whose presence, in the judgment of Licensor, shall be prejudicial to the safety, peace or character of the Space. 4. The bathrooms, toilets, urinals, sinks, faucets, plumbing or other service apparatus of any kind shall not be used for any purposes other than those for which they were installed, and no sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed therein or used in connection therewith or left in any lobbies, passages, or stairways. 5. Licensee shall not impair in any way the fire safety system and shall comply with all security, safety, fire protection and evacuation procedures and regulations established by Licensor or any governmental agency. 6. Windows, doors and transoms shall not be covered or obstructed by Licensee, and Licensee shall not install any window covering which would affect the exterior appearance of the Space, except as approved in writing by Licensor. If curtains are used to cover the suite door, the curtains must be neutral in color and approved by Licensor. Licensee shall not remove, without Licensor’s prior written consent, any shades, blinds or curtains in the Space. 7. Licensee shall not paint walls, flooring or suite furnishings. Licensee shall not hang, install, mount, suspend or attach anything from or to any sprinkler, plumbing, utility or other lines. If Licensee paints, hangs, installs, mounts, suspends or attaches anything from or to any doors, windows, walls, floors or ceilings, Licensor will repair using Licensee’s Retainer. Licensee shall not make repairs to the suite. The Licensor will repair any damage at the Licensee’s expense caused thereby or by the removal thereof at or prior to the expiration or termination of the License. 8. Licensee shall not change any locks nor place additional locks upon any doors. 9. Licensee shall not use nor keep in the Building any matter having an offensive odor, nor explosive or highly flammable material, nor shall any animals other than service animals as defined by the Minnesota Human Rights Act or ADA in the company of their masters be brought into or kept in or about the Property. 10. Licensee shall have the right, at Licensee’s sole risk and responsibility, to use only the common parking spaces located on the property as reasonably determined by the Building owner. Licensee shall comply with all parking regulations promulgated by the Building owner from time to time for the orderly use of the vehicle parking. Employee and Licensee vehicles shall not be parked in spaces marked for visitor parking or other specific use. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 366576 PAGE 12 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 11. Licensee and its guests shall not smoke in the Building or at the building entrances and exits. 12. Licensee shall provide Licensor with a written identification of any vendors engaged by Licensee to perform services for Licensee at the Space (examples: telecommunications installers/maintenance), and all vendors shall be subject to Licensor’s reasonable approval. Licensee assumes all responsibility for protecting its Space from theft and vandalism and Licensee shall see each day before leaving the Space that all lights are turned off and that the windows and the doors are closed and securely locked. 13. Licensee shall comply with any move-in/move-out rules provided by Licensor and with any rules provided by Licensor governing access to the Building outside of Normal Business Hours. Throughout the Term, no furniture, packages, equipment, supplies or merchandise of Licensee will be received in the Building, or carried up or down in the elevators or stairways, except during such hours as shall be designated by Licensor, and Licensor in all cases shall also have the exclusive right to prescribe the method and manner in which the same shall be brought in or taken out of the Building. 14. Licensee shall cause all of Licensee’s guests, customers and invitees to comply with these General Rules. 15. Licensor reserves the right to rescind, suspend or modify any rules or regulations and to make such other rules and regulations as, in Licensor’s reasonable judgment, may from time to time be needed for the safety, care, maintenance, operation and cleanliness of the Space. Notice of any action by Licensor referred to in this section, given to Licensee, shall have the same force and effect as if originally made a part of the foregoing License. 16. These General Rules are not intended to give Licensee any rights or claims in the event that Licensor does not enforce any of them against any other Building occupants or if Licensor does not have the right to enforce them against any other occupants and such non-enforcement will not constitute a waiver as to Licensee. DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 367577 PAGE 13 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ADDENDUM ONE (1) This addendum and items contained herewith shall be in full compliance and accord with License agreement as outlined above. The following provisional Items are also included: DocuSign Envelope ID: F1EBA371-0B23-4B80-9848-96F825A8F2B3 Licensee will receive the following Move-In Specials: - Free chandelier installation - Free accent wall painting - One hour of free handyman work - One week of License Fees free - Discount of $40/wk for the first Term - Discount of $20/wk for the second Term Licensee is responsible for the Massage Therapy Business Licensing requirements through the City of Chanhassen. Upon the approval of the Massage Therapy Business License, Licensee will be given access to the Space once the following are completed: - Copy of Driver's License of Massage Therapists operating within the Space provided to Licensor - Copy of Massage Therapy Business License provided to Licensor - Copy of Certificate of Liability Insurance provided to Licensor - Copy of Articles of Organization of MN Business provided to Licensor - Completed ACH Authorization Form - Remaining Retainer paid in full ($430.00) 368578 Northland Salons, LLC. D B A M Y S A L O N S U I T E® LICENSE AGREEMENT DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 336579 PAGE 2 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT BASIC LICENSE PROVISIONS 1. DATE OF LICENSE AGREEMENT: 2. LICENSOR: Northland Salons, LLC DBA: MY SALON Suite 3. MANAGER: Northland Management Group, LLC 4. ADDRESS OF LICENSOR: Northland Salons, LLC. C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 Phone: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com 5. ADDRESS OF SPACE: 8951 Crossroads Blvd Chanhasssen, MN 55317 Salon Suite Number: ___ 6. LICENSEE’S NAME: 7. LICENSEE’S ADDRESS: TELEPHONE: EMAIL: 8. OCCUPANCY DATE: 9. TERM: (See Paragraph 2.1.) Unless sooner terminated as hereinafter provided, the initial term of this License shall be on or before (1) year beginning on the first day of the month following the Occupancy Date and will automatically renew on a (1) year basis thereafter unless Licensee provides Licensor with sixty (60) days advance written notice of Licensee’s intent not to renew the License. 10. WEEKLY LICENSE FEE: (See Paragraph 3.1) $ per week due each Monday during the Term. 11. MOVE-IN SPECIAL: (See Paragraph 3.1.1) $ per week for the first __ of the initial Term. 12. RETAINER: (See Paragraph 3.4) Licensee shall deposit with Licensor a retainer equal to two (2) weeks License Fee in the amount of $ . 13. USE OF LICENSED SPACE: (See Paragraph 4.) Licensee shall use the Licensed Space as a general beauty and spa complex and shall not use the Space for any other purpose without the prior written consent of Licensor, which consent may be granted or withheld in Licensor’s sole discretion. In the event of any conflict between the Basic License Provisions and the balance of this License, the latter shall control. Each of the terms contained in the Provisions shall be construed in conjunction with the remainder of this License, in particular, the referenced portions thereof. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 52 weeks 2023-09-01 5644 Cedarwood St NE Prior Lake 660.00 55372 330.00 6/30/2023 N. GIOI LIFE, LLC 6122504502 Minnesota 207 Gioi2theworld@gmail.com 320.00 337580 PAGE 3 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSE AGREEMENT This License Agreement (“License”) dated the ____ ______(“Date”) is entered into by and between Northland Salons, LLC DBA: My Salon Suite ("Licensor"), and ("Licensee"). For good and valuable consideration, including the promises of the parties, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 1. Licensed Space: 1.1 Space. In consideration of the License Fees herein provided, and the terms, provisions and covenants hereof, Licensor hereby licenses to Licensee, and Licensee hereby licenses from Licensor, a salon suite known or to be known by the salon suite number specified in Item 4 of the Basic License Provisions (the “Space”) in the building known as My Salon Suite located at 8951 Crossroads Blvd, Chanhassen, MN 55317(the “Building”). Any reference to the term “Building” shall include the salon building, the land, and the common areas, unless the context requires otherwise. The License of the Space entitles Licensee to the non-exclusive right to use the common areas and parking lot, subject to the rights and considerations of other Licensees. This License constitutes a revocable license agreement between Licensee and Licensor. Licensee agrees that this License creates no tenancy, leasehold estate or any other property interest. Licensee hereby acknowledges and agrees that this License is subordinate to the terms of the lease agreement between the Licensor and its landlord. 2. Term: 2.1 Term. Unless sooner terminated as hereinafter provided, the term of this License shall be for (1) year beginning the first day of the month following (the "Occupancy Date") and unless renewed shall terminate upon expiration of this Term. 2.2 Renewal. Provided Licensee has never been in default hereunder, this License will automatically renew following the Initial Term for up to a maximum of three additional terms of (1) year each, (a “Renewal Term”) unless Licensee gives written notice to Licensor at least sixty (60) days prior to the end of the Initial Term or any Renewal Term that it will not renew the License, time being of the essence. Upon renewal, this License shall be extended upon the terms, covenants and conditions as provided in this License. 2.3 Renewal Option. In the event either the Licensor or the Licensee desires not to renew the License as provided for herein in Paragraph 2.2., then the deciding party shall give the other party written notice of its intention to not renew the License not later than sixty (60) days prior to the end of the then current Term, time being of the essence. 3. License Fee: 3.1 Weekly License Fee. Licensee shall pay Licensor $ in equal weekly installments payable upon the first Monday following the Occupancy Date, or the date that the Licensee occupies the Space, whichever is sooner, and is due at by no later than Noon on each Monday thereafter. If the Occupancy Date is not on a Monday, then the Weekly License Fee shall be pro-rated for the first week. The License Fee may increase a maximum of fifteen percent (15%) per year for each Renewal Term with Licensor giving Licensee notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term. If Licensor fails to give such notice at least sixty-five (65) days prior to the end of the Initial Term or the end of any Renewal Term, then the increase shall automatically be deemed to be DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF N. GIOI LIFE, LLC 2023-09-01 330.00 6/30/2023 338581 PAGE 4 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ten percent (10%). 3.1.1 Move-In Special. For promotional consideration, the Weekly License Fee shall be in the amount of $ ____ per week for the first __ of the initial Term of this License (the “Move-In Special”). If the Occupancy Date is not on a Monday, then the Move-In Special shall be pro-rated for the first week. 3.1.2 Payments. All payments shall be made to Northland Salons, LLC via ACH through QuickBooks Online (QBO). 3.2 Service Charge. If any installment of the Weekly License Fee or other amount which Licensee is obligated to pay under the terms of this License is not paid within five (5) days after it’s due date, said amount shall be subject to a penalty of ten percent (10%) of the amount due plus a service charge of one and one-half percent (1.5%), or such lesser percentage as may be the maximum permitted by law, for each month or fraction thereof until the Weekly License Fee is paid. 3.3 Insufficient Funds. Licensee agrees to pay the charge of $20.00 for each check or other payment provided by Licensee to Licensor that is returned to Licensor for lack of sufficient funds. 3.4 Retainer. Licensee, contemporaneously with the execution of this License, shall deposit with Licensor a Retainer equal to two (2) weeks Weekly License Fee in the amount of $ ___ . In the event that Licensee shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this License, the Retainer shall be returned to Licensee within thirty (30) days after the end of the License and after delivery of entire possession of the Space to Licensor in good condition, reasonable wear and tear accepted. It is understood and agreed that Licensor shall inspect the Space and has the right to make such repairs to the Space as deemed reasonably necessary, and deduct such repair costs from the Retainer. 4. Use of Licensed Space: 4.1 Use. The Space shall be used by Licensee as a general beauty and salon complex, to include massage services and shall not be used for any other purpose without the prior written consent of the Licensor. 4.2 Services Provided by Licensor. Licensor will provide basic janitorial services of common areas and restroom facilities, plus electricity, heating, cooling, water, sewage, HVAC service maintenance, security system and Wi-Fi for Licensee and Licensee's guests. 4.2.1 The Suite consists of the following items (the “Suite Equipment”): _____ Salon Suite: Salon Suite: Double-sided styling station with full-length mirror, hydraulic styling chair, state-of-the-art adjustable shampoo bowl and shampoo chair with storage cabinet, private color bar with sink and lower cabinet storage, upper cabinet with color tube dividers, cushion flooring, granite countertops, and a private lockable entrance. _____ Spa Suite: Upper and lower cabinet storage with sink, adjustable massage bed with storage, cushion flooring, granite countertops, and a private lockable entrance. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 320.00 660.00 X 52 weeks 339582 PAGE 5 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 4.3 Licensee Obligations. Licensor makes no representation regarding the condition of the Space and Licensee accepts the Space in its “As Is” condition. Licensee agrees to at all times keep and maintain the Space in a clean and professional condition. Licensee, at Licensee’s own expense, shall promptly repair any damage to the Space Equipment caused by any act or omission of Licensee or any agent, employee, customer, guest or invitee of Licensee. Licensee shall not bring in any furniture, fixtures and or appliances into their Space without prior written approval by the Licensor. Appliances, such as refrigerators and microwaves shall be either black or stainless steel. At the end of License, Licensee agrees to return the Space and Space Equipment in as good condition as at the beginning of the term of this License with some reasonable ordinary wear and tear accepted. 4.4 Licenses. Licensee shall possess and legally maintain at all times during its occupancy of the Space ANY LICENSING requirements to own and operate a cosmetology business in the State of Minnesota. Licensee bears full responsibility of knowledge and education of said licensing requirements. 4.5 Conduct. Licensee shall not use the Space in any manner constituting a violation of any ordinance, statute, regulation or order of any governmental authority or applicable state and/or federal laws or in violation of Licensor’s general rules (Exhibit A). Licensee shall use the Space in a safe, careful, proper and lawful manner and shall keep and maintain the Space in as good a condition as when Licensee first took possession thereof, and Licensee shall not commit, or allow being committed, any act of waste in, on or about the Space or the Building. Licensee shall not create, maintain or permit any nuisance in the Space or the Building, or permit any objectionable or offensive noise or odors to be emitted from the Space. If Licensee uses the Space in any manner which would invalidate any policy of insurance now or hereafter carried on the Building or increase the rate of premiums payable on any such insurance policy, Licensor may, at its option, require Licensee to discontinue such use or to reimburse Licensor as additional License Fee for any increase in premiums attributable to the use being made by Licensee. 4.6 Surrender. Any personal property or trade fixtures not removed within fifteen (15) days following the expiration or termination of the License may be removed and disposed of by Licensor without incurring any liability to Licensee. 5. Building Services: 5.1 Interruption of Services. Licensor does not represent or warrant the uninterrupted availability of utilities or Building services, which may be discontinued or temporarily diminished by reason of accident, emergency or unforeseeable act of God or other causes beyond Licensor’s control. Any such interruption shall not render Licensor liable to Licensee. 5.2 Repairs, Maintenance. Licensor shall be responsible for the repair and maintenance of the Building and those systems which are a part of the common building improvements, the cost of which shall be borne by Licensor unless made necessary by the negligence, misuse or default of Licensee, its employees, agents, customers or invitees, in which event Licensee shall reimburse Licensor for same. 5.3 Signage. Licensor will exclusively provide all signage. Licensee shall not apply any signs, decals, or covering of any kind to exterior windows or interior glass without prior written permission from the Licensor. 5.4 Fire and Other Casualty. If the Space is damaged or destroyed such that the Space is rendered unusable for a period of at least 60 days, Licensor has the option to terminate this License. If the DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 340583 PAGE 6 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT License is not terminated, Licensor shall repair or restore the Space, and License Fee shall be abated in proportion to the damaged area until the Space are restored. In no event shall Licensor be required to repair or replace Licensee’s inventory, fixtures, furnishings, equipment or improvements located in or installed on the Space. 6. Indemnification, Insurance: 6.1 Indemnification. Licensee shall indemnify and hold harmless Licensor and its agents, successors and assigns from and against all expense, injury, loss, claims or damage, including attorney’s fees and disbursements, to any person or property arising from, related to, or in connection with, Licensee’s use, occupancy, construction or repair of the Space, except injury, loss, claims or damage caused solely by the gross negligence or willful misconduct of Licensor. All property of Licensee and Licensee’s employees or guests in the Space shall be kept and stored at Licensee’s sole risk and Licensee shall hold Licensor harmless from any claims arising out of damage to such property. 6.2 Licensee Insurance. Licensee, at its own expense, shall maintain during the term of this License a policy for comprehensive general liability insurance, including personal injury and property damage, with contractual liability endorsement, in the amount of $500,000 for property damage and $500,000 per occurrence and $1,000,000 in the aggregate for personal injuries or deaths of persons occurring in or about the Space. Licensee, at its own expense, shall also maintain during the term of the License fire and extended coverage insurance covering the replacement cost of (i) all alterations, additions, partitions and improvements installed or placed on the Space by Licensee or by Licensor at the request of Licensee, (ii) all of Licensee’s personal property contained within the Space. Said policies shall (i) name the Licensor (Northland Salons, LLC) as an additional insured and insure Licensor’s contingent liability under or in connection with this License (except for the worker’s compensation policy, which instead shall include a waiver of subrogation endorsement in favor of Licensor), (ii) be issued by an insurance company which is acceptable to Licensor, and (iii) provide that said insurance shall not be cancelled unless thirty (30) days prior written notice has been given to Licensor. Said policy or policies or certificates thereof shall be delivered to Licensor by Licensee on or before the Occupancy Date and upon each renewal of said insurance. 7. Defaults and Remedies: 7.1 Defaults - Remedies By Licensee. 7.1.1 It shall be an Event of Default: (i) If Licensee does not pay in full when due any and all License Fee and, except as provided in subparagraph 7.1.3. below, Licensee fails to cure such default on or before the date that is 5 days after Licensor gives Licensee notice of default; (ii) If Licensee enters into or permits any Assignment or Subletting in violation of Paragraph 8.6 below; (iii) If Licensee fails to observe and perform or otherwise breaches any other provision of this License, and, except as provided in subparagraph 7.1.3 below, Licensee fails to cure the default on or before the date that is 7 days after Licensor gives Licensee notice of default. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 341584 PAGE 7 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT (iv) If Licensee becomes insolvent or makes a general assignment for the benefit of creditors or offers a settlement to creditors, or if a petition in bankruptcy or for reorganization or for an arrangement with creditors under any federal or state law is filed by or against Licensee, or a bill in equity or other proceeding for the appointment of a receiver for any of Licensee’s assets is commenced, or if any of the real or personal property of Licensee shall be levied upon; provided that any proceeding brought by anyone other than Licensor or Licensee under any bankruptcy, insolvency, receivership or similar law shall not constitute an Event of Default until such proceeding has continued unstayed for more than 30 consecutive days; or (v) If Licensee fails to observe and perform or otherwise breaches any provision of the general rules (Exhibit A) of Licensor, and such failure or breach continues after notice or is repeated within a 60 day period of time. 7.1.2 If an Event of Default occurs, Licensor shall have the following rights and remedies: (i) Licensor, without any obligation to do so, may elect to cure the default on behalf of Licensee, in which event Licensee shall reimburse Licensor upon demand for any sums paid or costs incurred by Licensor (together with an administrative fee of 15% thereof) in curing the default, plus interest at the rate at the prime rate published in the Wall Street Journal plus 5% (the “Interest Rate”) from the respective dates of Licensor’s incurring such costs, which sums and costs together with interest at the Interest Rate shall be deemed additional License Fee; (ii) To enter and repossess the Space, by opening locked doors if necessary, and removing all persons and all or any property, by action at law or otherwise, without being liable for prosecution or damages. Licensor may, at Licensor’s option, make Alterations and repairs in order to license the Space and license all or any part(s) of the Space for Licensee’s account. Licensee agrees to pay to Licensor on demand any deficiency (taking into account all costs incurred by Licensor) that may arise by reason of such re-licensing. In the event of re-licensing without termination of this License, Licensor may at any time thereafter elect to terminate this License for such previous breach; (iii) To accelerate the whole or any part of the License Fee for the balance of the Term, and declare the same to be immediately due and payable; and (iv) To terminate this License and the Term without any right on the part of Licensee to save the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken. 7.1.3 Any provision to the contrary in this subparagraph 7.1.3 notwithstanding, Licensor shall not be required to give Licensee the notice and opportunity to cure provided in subparagraph 7.1.1 above more than twice in any consecutive 12-month period, and thereafter Licensor may declare an Event of Default without affording Licensee any of the notice and cure rights provided under this License. 7.1.4 No waiver by Licensor of any breach by Licensee shall be a waiver of any subsequent breach, nor shall any forbearance by Licensor to seek a remedy for any breach by Licensee be a waiver by Licensor of any rights and remedies with respect to such or any subsequent breach. Efforts by Licensor to mitigate the damages caused by Licensee’s default shall not constitute a waiver of Licensor’s right to recover damages hereunder. No DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 342585 PAGE 8 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT right or remedy herein conferred upon or reserved to Licensor is intended to be exclusive of any other right or remedy provided herein or by law, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity. No payment by Licensee or receipt or acceptance by Licensor of a lesser amount than the total amount due Licensor under this License shall be deemed to be other than on account, nor shall any endorsement or statement on any check or payment be deemed an accord and satisfaction, and Licensor may accept such check or payment without prejudice to Licensor’s right to recover the balance of License Fee due, or Licensor’s right to pursue any other available remedy. 7.1.5 If Licensor commences an action against the other party arising out of or in connection with this License, the Licensor shall be entitled to have and recover from the other party reasonable attorneys’ fees, costs of suit, investigation expenses and discovery costs, including costs of appeal. 7.2 Default by Licensor Under Lease for Entire My Salon Suite. Licensor is a lessee of the entire Suite ("Licensor's Lease"). Pursuant to the provisions of Licensor's Lease, if Licensor defaults under Licensor's Lease, and if Licensor fails to cure such default within the time periods set forth in Licensor's Lease, if any, then the lessor thereunder, at its option, has the right to exercise any one or more of several remedies including termination of Licensor's Lease and re-letting the entire Suite to another lessee. In such a case, this License may terminate without prior notice. 8. Miscellaneous General Provisions: 8.1 Access to the Space. Licensor, its employees, and agents, shall have the right to enter the Space at all reasonable times for any purpose, including examining or inspecting same, showing the same to prospective licensees, and for making such repairs, alterations or improvements to the Space or to the building as Licensor may deem necessary or desirable. 8.2 Eminent Domain. If all or a substantial part of the Space is taken by right of eminent domain, this License shall terminate as of the date Licensor is entitled to all compensation awarded for the taking and Licensee shall have no claim against Licensor for the value of the unexpired term of the License. However, Licensee shall have the right to recover from the taking authority, but not from Licensor, such compensations may be awarded to Licensee on account of moving and relocation expenses and depreciation to and removal of Licensee’s trade fixtures and personal property. 8.3 Notices. Any notice required or permitted to be given under this License shall be deemed to have been given or served when made in writing and delivered in person or mailed by registered or certified mail, postage prepaid, to the party who is to receive such notice at the address specified in this License. When so mailed, the notice shall be deemed to have been given as of the date it was mailed. The addresses for notices and payments may be changed by written notice given to the other party. 8.3.1 Address for Notices. A party’s address shall be as follows or as set forth in a notice to the other party: LICENSOR: Northland Salons, LLC C/O Northland Management Group, LLC 8951 Crossroads Blvd Chanhassen, MN 55317 TELEPHONE: (612) 767-4509 E-mail: rkueppers@mysalonsuite.com DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 343586 PAGE 9 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT LICENSEE: NAME: ADDRESS: CITY, STATE, ZIP: TELEPHONE: E-MAIL: 8.4 Governing Law and Venue. This License is being executed and delivered in the State of Minnesota and shall be construed and enforced in accordance with the State courts of Minnesota in Hennepin County. Before Licensee may commence litigation against Licensor, Licensee’s dispute must first be mediated. Mediation shall occur within 45 days of Licensee providing written notice of Licensee’s claim to Licensor, with Licensee’s claims and factual support therein identified. 8.5 Complete Agreement; Amendments; Headings. This License, including all Exhibits and Addenda, constitutes the entire agreement between the parties. It supersedes all previous understandings and agreements between the parties, and no oral or implied representation or understanding shall vary its terms. It may not be amended except by a written instrument executed by both parties. The topical headings in this License are inserted only as a matter of convenience and reference, and do not affect, define, limit or describe the scope or intent of this License. 8.6 Assignment and Subletting. Licensee shall not have the right to assign the License without the written consent of Licensor, which consent may be in the sole discretion of Licensor. Notwithstanding any assignment, however, the Licensee shall remain primarily liable under the License. Any assignment or sublicense without Licensor’s prior written consent shall at the Licensor’s option be a termination of this License. 8.7 Liability of Licensor; Disclaimer of Liability. Licensee acknowledges and agrees that the liability of Licensor under this License shall be limited to its interest in the Space and any judgments rendered against Licensor shall be satisfied solely out of the proceeds of sale of its interest in the Space, including the license fees generated thereby, which are actually received by Licensor. Licensee understands and voluntarily accepts any risks associated with Licensee’s services or any use of the Space or Building. Except where prohibited by law, Licensee agrees that Licensor and all of their affiliates and subsidiaries and their respective successors, assignees, officers, directors, owners, employees, agents and representatives will not be liable for any injury, including, without limitation, personal, bodily, or mental injury, economic loss, or any damage resulting from negligence, acts of God, acts of terrorism, and other acts of the Licensor, its employees, officers, managers, representatives, owners, partners, or affiliates. The Licensee expressly and specifically agrees to waive, and agrees not to make, any claim for damages, direct, indirect, punitive, special or consequential, including, but not limited to, lost business, revenue, profits or data, for any reason whatsoever arising out of or in connection with this License, any failure to furnish any service provided hereunder, any error or omission with respect thereto, from failure of any and all courier service to deliver on time or otherwise deliver any items (mail, packages, etc.), or any interruption of services. [Signatures on following page.] DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF N. GIOI LIFE, LLC 55372 5644 Cedarwood St NE Minnesota Gioi2theworld@gmail.com Prior Lake 6122504502 344587 PAGE 10 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT IN WITNESS WHEREOF, the parties hereto have executed this License as of the dates written below. LICENSEE: LICENSOR: Northland Salons, LLC BY: BY: NAME: NAME: Rachel Kueppers TITLE: TITLE: Property Manager DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF Patrice Aksamit N. GIOI LIFE, LLC Owner 345588 PAGE 11 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT EXHIBIT A LICENSOR’S GENERAL RULES 1. Licensee shall at all times and in all manners conduct itself in a cooperative, cordial and professional manner and shall not do anything that shall disrupt the operations of Licensor or any of its other licensees. In addition, Licensee shall respond to all reasonable requests of Licensor related to the use and occupancy of the Space when Licensor, it its sole discretion, determines that the conduct of Licensee is in conflict with Licensor’s reasonable expectations concerning cooperation, professional conduct and compliance with these General Rules. 2. Licensee is strictly forbidden to bring his/her own children into the salon during the workday. Children of clients are permitted in the salon however they must be accompanied by an adult at all times. Client’s children must remain inside the suite during the client visit. 3. Any sidewalks, lobbies, passages, elevators and stairways shall not be obstructed or used by Licensee for any purpose other than ingress and egress from and to the Space. Licensor shall in all cases retain the right to control or prevent access by all persons whose presence, in the judgment of Licensor, shall be prejudicial to the safety, peace or character of the Space. 4. The bathrooms, toilets, urinals, sinks, faucets, plumbing or other service apparatus of any kind shall not be used for any purposes other than those for which they were installed, and no sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed therein or used in connection therewith or left in any lobbies, passages, or stairways. 5. Licensee shall not impair in any way the fire safety system and shall comply with all security, safety, fire protection and evacuation procedures and regulations established by Licensor or any governmental agency. 6. Windows, doors and transoms shall not be covered or obstructed by Licensee, and Licensee shall not install any window covering which would affect the exterior appearance of the Space, except as approved in writing by Licensor. If curtains are used to cover the suite door, the curtains must be neutral in color and approved by Licensor. Licensee shall not remove, without Licensor’s prior written consent, any shades, blinds or curtains in the Space. 7. Licensee shall not paint walls, flooring or suite furnishings. Licensee shall not hang, install, mount, suspend or attach anything from or to any sprinkler, plumbing, utility or other lines. If Licensee paints, hangs, installs, mounts, suspends or attaches anything from or to any doors, windows, walls, floors or ceilings, Licensor will repair using Licensee’s Retainer. Licensee shall not make repairs to the suite. The Licensor will repair any damage at the Licensee’s expense caused thereby or by the removal thereof at or prior to the expiration or termination of the License. 8. Licensee shall not change any locks nor place additional locks upon any doors. 9. Licensee shall not use nor keep in the Building any matter having an offensive odor, nor explosive or highly flammable material, nor shall any animals other than service animals as defined by the Minnesota Human Rights Act or ADA in the company of their masters be brought into or kept in or about the Property. 10. Licensee shall have the right, at Licensee’s sole risk and responsibility, to use only the common parking spaces located on the property as reasonably determined by the Building owner. Licensee shall comply with all parking regulations promulgated by the Building owner from time to time for the orderly use of the vehicle parking. Employee and Licensee vehicles shall not be parked in spaces marked for visitor parking or other specific use. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 346589 PAGE 12 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT 11. Licensee and its guests shall not smoke in the Building or at the building entrances and exits. 12. Licensee shall provide Licensor with a written identification of any vendors engaged by Licensee to perform services for Licensee at the Space (examples: telecommunications installers/maintenance), and all vendors shall be subject to Licensor’s reasonable approval. Licensee assumes all responsibility for protecting its Space from theft and vandalism and Licensee shall see each day before leaving the Space that all lights are turned off and that the windows and the doors are closed and securely locked. 13. Licensee shall comply with any move-in/move-out rules provided by Licensor and with any rules provided by Licensor governing access to the Building outside of Normal Business Hours. Throughout the Term, no furniture, packages, equipment, supplies or merchandise of Licensee will be received in the Building, or carried up or down in the elevators or stairways, except during such hours as shall be designated by Licensor, and Licensor in all cases shall also have the exclusive right to prescribe the method and manner in which the same shall be brought in or taken out of the Building. 14. Licensee shall cause all of Licensee’s guests, customers and invitees to comply with these General Rules. 15. Licensor reserves the right to rescind, suspend or modify any rules or regulations and to make such other rules and regulations as, in Licensor’s reasonable judgment, may from time to time be needed for the safety, care, maintenance, operation and cleanliness of the Space. Notice of any action by Licensor referred to in this section, given to Licensee, shall have the same force and effect as if originally made a part of the foregoing License. 16. These General Rules are not intended to give Licensee any rights or claims in the event that Licensor does not enforce any of them against any other Building occupants or if Licensor does not have the right to enforce them against any other occupants and such non-enforcement will not constitute a waiver as to Licensee. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 347590 PAGE 13 OF 13 INITIALS: Licensor______ Licensee______ MY SALON SUITE LICENSE AGREEMENT ADDENDUM ONE (1) This addendum and items contained herewith shall be in full compliance and accord with License agreement as outlined above. The following provisional Items are also included: DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF Licensee will receive the following Move-In Specials: - Free chandelier installation - Free accent wall painting, plus small wall (2ft x 10ft) - One hour of free handyman work - One week of License Fees free - Discount of $10/wk for the first Term Licensee is responsible for the Massage Therapy Business Licensing requirements through the City of Chanhassen. Licensee has 60 days to occupy the Space following the approval of the Massage Therapy Business License. The Occupancy Date is listed at September 1st, 2023 and will be adjusted accordingly. Licensee has the option to occupy the Space prior to September 1st, 2023, with notice given to Licensor. If Occupancy Date is adjusted, Licensee and Licensor will sign a License Amendment to indicate the revised terms. The License Agreement will terminate and the reservation deposit of $200.00 will be returned to Licensee in the event that the Massage Therapy Business License or Massage Therapy Background Investigations are not approved by the Chanhassen City Council. Upon the approval of the Massage Therapy Business License, Licensee will be given access to the Space once the following are completed: - Copy of Driver's License of Massage Therapists operating within the Space provided to Licensor - Copy of Massage Therapy Business License provided to Licensor - Copy of Certificate of Liability Insurance provided to Licensor - Copy of Articles of Organization of MN Business provided to Licensor - Completed ACH Authorization Form - Remaining Retainer paid in full ($460.00) 348591 Community Guidelines YOU AND YOUR VISITORS WILL NOT: ●Leave children unattended on the property. ●Do anything to disturb your neighbor, including playing loud music. ●Allow anyone other than your own visitor into the building. ●Use the hallways as a waiting area. ●Keep any pets on the premises. ●Burn candles or have any open flame on the premises. ●Do anything that will violate any law. ●Permit any nuisance on the premises. ●Make any alterations, additions, or improvements in or to your suite or the building without permission. ●Allow any persons other than those set forth in the lease to occupy your suite. ●Smoke or vape in your suite, inside the premises, or near the entrance to the premises. YOU AND YOUR VISITORS WILL: ●Follow all State Board and Health Department guidelines for safety, sanitation, and disinfection procedures. ●Keep the area outside of your suite clean. ●Take good care of the property, including the common areas, bathrooms, suites, and equipment we supply. ●Follow our zero-tolerance policy on drugs and alcohol use or possession on the premises. ●Close your suite door if the noise in your suite is loud enough to carry into others. ●Remove garbage regularly from your suite and place in the black-lid dumpster. ●Remove recycling regularly from your suite and place in yellow-lid dumpster. ●Permit the landlord to enter the suite during reasonable hours to inspect or make necessary repairs. ●Schedule all maintenance work through the property manager. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF 349592 The Suite Elite community goes far beyond the walls of your suites; join us to make the whole world a little brighter by contributing $2.00 a week for a good cause. Suite Elite Members have raised over $250,000 offering grants to Suite Elite Members through the PBA Covid Relief Fund, PBA Natural Disaster Fund and supporting national foundations like St. Jude Children's Research Hospital. Thank you for your support. Please know your donation is tax deductible. ________ (Initials) __ Yes! I am excited to donate $2 a week to the Suite Relief Fund. Count me in! ___ I would like to change the donation amount from $2 a week to $______ a week. ___ No, I do not want to donate $2 a week to the Suite Relief Fund. DocuSign Envelope ID: B30A1EFE-96F9-4743-89DE-EC50FF04F0BF X 350593