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HomeMy WebLinkAboutItem 09 Date: Item No. Airlake Airport Orderly Annexation Agreement Joint Resolution and Road Maintenance Joint Powers Agreement with Eureka Township Proposed Action Staff recommends adoption of the following motion: a) Approve a Joint Resolution Establishing an Orderly Annexation Agreement Between the City of Lakeville and Eureka Township; b) Approve a Joint Powers Agreement Between the City of Lakeville and Eureka Township for Road Maintenance on portions of 225th Street. Overview In January of 2018, the City Council approved a petition from the Metropolitan Airports Commission (MAC) for the annexation of 118 acres of Airlake Airport. After this approval, Eureka Township requested that any subsequent annexations be done through a mutually approved orderly annexation agreement process. Since May of this year, MAC and City staff have been working with Eureka Township representatives on the proposed terms of an orderly annexation agreement (OAA). In August, the City forwarded the attached OAA resolution to Eureka Township for their consideration. The proposed agreement proposes to annex the remainder of Airlake Airport west of Cedar Avenue, east of Highview Avenue, and north of 225th Street which comprises 165.38 acres. The proposed terms of the OAA are summarized in Attachment A. In addition, a Joint Powers Agreement has been prepared which would require the City to reimburse the Township 50% of road maintenance costs for the portion of 225th Street that will be adjacent to the City. The Eureka Township Board unanimously approved the proposed OAA and Joint Powers Agreement at their October 15th meeting. City staff recommends approval of both agreements. Primary Issues to Consider • What is the primary impact of the approval of this annexation? It will allow the MAC to extend City water and sewer infrastructure to serve the entire Airlake Airport. Supporting Information • Joint Resolution establishing an Orderly Annexation Agreement and Joint Powers Agreement for 225th Street Maintenance Financial Impact: Budgeted: Y☒ N☐ Source: Related Documents: Envision Lakeville Community Values: Diversified Economic Development Report Completed by: David L. Olson, Community & Economic Development Director October 21, 2019 Attachment A The proposed terms of the Orderly Annexation Agreement are as follows: 1) The City agrees to reimburse Eureka Township a portion of the existing property taxes on the area to annexed. The current amount of property taxes being collected for private hangers at Airlake Airport for taxes payable in 2019 is $13,844.96. The City agrees to reimburse the Township 90% of this amount in 2021, 70% in 2022, 50% in 2023, 30% in 2024, and 10% in 2024. Because this annexation was approved after July 1st of this year, Eureka Township will receive the full amount of property taxes in 2020. 2) The City is also proposing to enter into a Joint Powers Agreement with Eureka Township for road maintenance costs associated with 225th Street. After the proposed annexation is approved, the City limits will not be adjacent to .65 miles of 225th Street. The Joint Powers Agreement calls for the City to reimburse the Township for 50% of the actual contract maintenance cost for the .65 mile of City frontage on 225th Street. 1 202925v2 2 202925v2 3 202925v2 4 202925v2 S-1 202925v2 S-2 202925v2 A-1 202925v2 A-2 202925v2 C-1 202925v2 EXHIBIT B Map of the Property C-1 202925v2 203066v1 1 JOINT POWERS AGREEMENT BETWEEN THE CITY LAKEVILLE AND EUREKA TOWNSHIP CITY-TOWN LINE ROAD MAINTENANCE AGREEMENT 225TH STREET THIS AGREEMENT is entered into between the CITY OF LAKEVILLE, a Minnesota municipal corporation (hereinafter referred to as "City") and EUREKA TOWNSHIP, (hereinafter referred to as "Township"), with the parties collectively hereinafter referred to as the "Parties." WHEREAS, the City and Township intend to enter into a Joint Powers Agreement for the annexation of certain property owned by the Metropolitan Airports Commission (“MAC”) consisting of two parcels identified by PID Nos. 13-00400-02-011 and 13-00400-01-010 (“Annexation Property”); WHEREAS, the City previously annexed certain property owned by MAC identified by PID No. 22-00400-25-030 (“Annexed Property”). The Annexation Property and Annexed Property are hereinafter referred to as “MAC Property”); WHEREAS, the Parties desire to provide for the maintenance of those portions of 225th Street abutting the MAC Property consisting of approximately .65 miles as depicted in Exhibit A attached hereto (“Road Maintenance Area”); and WHEREAS, Minn. Stat. § 471.59 authorizes two or more governmental units to enter into agreements to jointly or cooperatively exercise any power common to the contracting parties or any similar power; and NOW, THEREFORE, in consideration of their mutual covenants the Parties agree as follows: 1. MAINTENANCE. Upon Annexation of the MAC Property, the Township shall be responsible for all maintenance and repair of the Road Maintenance Area. Maintenance shall include snow and ice removal, routine gravel maintence, dust control and drainage, consistent with the Township’s policies for similar roads within the Township. 2. COST SHARE. The City will reimburse the Township for 50% of the maintenance costs for the Road Maintenance Area. The City shall reimburse the Township within 35 days of the Township’s presentation of an itemized claim of the costs incurred for maintenance of the Road Maintenance Area. If any portion of an itemized claim is questioned by the City, the remainder of the claim shall be promptly paid, and accompanied by a written explanation of the amounts in question. Payment of any amounts in dispute will be made following good faith negotiation and documentation of actual costs incurred in carrying out the work. 203066v1 2 3. LIABILITY AND INDEMNITY. Each party shall be liable for the acts or omissions of its respective officers, agents and employees. Each party agrees to indemnify and hold harmless the other from any claims, losses, costs, expenses or damages, including reasonable attorney fees, resulting from the acts or omissions of the respective officers, agents or employees of the indemnifying party to the extent such acts or omissions relate to activities conducted by the indemnifying party under this Agreement or in the construction of the Project. Nothing herein shall be deemed a waiver of any statutory or common law limitations on liability available to either of the parties. For the purposes of determining total liability, the parties shall be considered a single governmental unit and their total liability shall not exceed the limits for a single governmental unit as specified in Minnesota Statutes, Section 466.04. 4. TERMINATION. Either party may terminate this Agreement for cause by giving seven days’ written notice of its intent to terminate to the other party or immediately upon a change in the road authority for the Road Maintenance Area. Such notice to terminate for cause shall specify the circumstances warranting termination of the Agreement. Cause shall mean a material breach of this Agreement and any supplemental agreements or amendments thereto. Upon notification, the receiving party shall have seven days to cure or respond to the notifying party of its intent to cure. If the notifying party is not satisfied with the response, and further discussion or efforts to resolve the dispute are not successful, either party may request the County board or engineer or county board to resolve the matter as provided in M. S. 164.14, Subd. 4. Termination of this Agreement shall not discharge any liability, responsibility or right of any party, which arises from the performance of or failure to adequately perform the terms of this Agreement prior to the effective date of termination. 5. NOTICES. For the purpose of delivery of any notice required by this Agreement, notice shall be effective if delivered certified or registered United States mail, return receipt requested, postage prepaid or hand delivered to: City of Lakeville: City of Lakeville Attention: City Administrator 20195 Holyoke Avenue Lakeville, Minnesota 55044 Township of Eureka: Township of Eureka Attention: Town Chair 25043 Cedar Avenue Farmington, Minnesota 55024 or at such other address as either party may notify the other in accordance with this Section. 6. MISCELLANEOUS. a. In the event that any provision contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. 203066v1 3 b. This Agreement contains the entire agreement between the parties and supersedes all oral agreements and representations between the parties relatin g to the subject matter thereof. c. All documents regarding the Project shall be handled in accordance with the Minnesota Data Practices Act. d. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, any books, records, documents, and accounting procedures and practices of the Township and Lakeville relevant to this Agreement are subject to examination by the Township, Lakeville, and either the Legislative Auditor or the State Auditor as appropriate. The Township and Lakeville agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. e. Each party, to the best of its respective knowledge, represents and agrees that no member, official or employee shall have any personal interest, direct or indirect, in this Agreement or the Project nor shall any member, official or employee participate in any decision relating to this Agreement or the Project which affects his or her personal financial interests or the interest of any corporation, partnership or association in which he or she is, directly or indirectly, interested. f. Any alteration, variation, modification or amendment of this Agreement shall be valid only if in writing and executed by both parties. g. If any part of this Agreement is rendered void, invalid, or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Agreement unless the part or parts that are void, invalid or otherwise unenforceable shall substantially impair the value of the entire Agreement with respect to either party. h. The titles of sections of this Agreement are inserted for convenience of reference only and shall be disregarded in constructing or interpreting any of the provisions hereof. i. Any alterations, variations, modifications, or waivers of the provisions of this Agreement shall only be valid when they have been reduced to writing and approved by both parties. j. This Agreement shall be interpreted under the laws of Minnesota. k. This Agreement may be executed in any number of counterparts, each one of which will constitute one and the same instrument. IN WITNESS THEREOF, the Parties have caused this Agreement to be executed by their duly authorized officials. 203066v1 4 CITY OF LAKEVILLE EUREKA TOWNSHIP BY: __________________________ BY: __________________________ Douglas P. Anderson, Mayor Its Chairperson AND _________________________ AND _________________________ Charlene Friedges, City Clerk Its Town Clerk 203066v1 5 EXHIBIT A ROAD MAINTENANCE AREA 0.15 MILES 0.5