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HomeMy WebLinkAbout06-03-2024 Agenda Packet AGENDA CITY COUNCIL MEETING June 3, 2024 - 6:00 PM City Hall Council Chambers Members of the public can participate in person at Lakeville City Hall, 20195 Holyoke Avenue. Members of the public may join the meeting via Teams Meeting, Meeting ID: 270 967 142 637 or by calling Toll Number 1-323-433-2142; Conference ID: 244 190 036#. The mayor will allow for public comments and questions at the appropriate time. The City Council is provided background information for agenda items in advance by staff and appointed commissions, committees, and boards. Decisions are based on this information, as well as City policy, practices, input from constituents, and a council member’s personal judgment. 1. Call to order, moment of silence and flag pledge 2. Roll Call 3. Citizen Comments 4. Additional agenda information 5. Presentations/Introductions a. Park and Recreation Quarterly Report b. Annual Arenas Report and Budget Presentation 6. Consent Agenda a. Check Register Summary b. Minutes of the 05/20/2024 City Council Meeting c. Resolution Authorizing Temporary Closing of City Streets for Pan-O-Prog Events d. Temporary On-Sale Liquor License to Lakeville Lions for Pan-O-Prog Events e. Extension of on-sale liquor license premise at B-52's for Pan-O-Prog events f. Extension of on-sale liquor license premise at Babe's Sportsbar and Grill for Pan-O-Prog events g. Acknowledge Receipt of Lakeville Arenas 2025 Budget h. Renewal of Liquor Licenses 2024 i. Contract for Installation of Downtown Parking Lot Lighting j. No Parking Resolution for Gateway Drive k. Agreement with Braun Intertec for Special Inspection and Testing Services at Grand Prairie Park (formerly Avonlea Community Park): CIP #24-20 Page 1 of 165 City Council Meeting Agenda June 3, 2024 Page 2 l. Joint Powers Agreement with Dakota County for Milling, Bituminous Overlay, Drainage Improvements and City Utility Repairs along County State Aid Highways 5 and 70 m. Approval of the ALF Ambulance 2025 Budget n. Preserve of Lakeville Third Addition Final Plat o. Resolution Approving Charitable Gambling Lakeville Lions 7. Action Items a. Public Hearing and Resolution for Welllhead Protection Plan b. Resolutions Adopting Assessments, Awarding Construction Contract and Authorizing Funding; and Supplemental Agreements for Professional Services for Ipava Avenue, Indiana Avenue and 175th Street Improvements 8. Unfinished Business 9. New Business 10. Announcements 11. Adjourn Page 2 of 165 Date: 6/3/2024 Park and Recreation Quarterly Report Proposed Action Staff recommends adoption of the following motion: Overview Supporting Information None Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: Report Completed by: Page 3 of 165 Date: 6/3/2024 Check Register Summary Proposed Action Staff recommends adoption of the following motion: Move to approve the Check Register Summary. Overview A summary of the claims paid during the period 05/09/2024 – 05/22/2024 is as follows: Checks 322577-322746 $921,056.26 ACH 16765-16924 $1,977,504.92 Electronic Funds Transfer (EFT) 20240266- 20240279 $1,669,400.36 Total $4,567,961.54 The City Council will receive a list of expenditures paid (claims detail) and it is available to the public upon request. Supporting Information 1. 5.21.24CKSUM 2. Check Register 5.21.24 for June 3,2024 Council Mtg Financial Impact: $4,567,961.54 Budgeted: Yes Source: Various Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Cheri Donovan, Assistant Finance Director Page 4 of 165 5/21/2024City of Lakeville 16:10:02R55CKS2LOGIS100 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/22/20245/9/2024 - Company Amount 551,107.8001000GENERAL FUND 3,024.7302000COMMUNICATIONS FUND 162.50031212022B GO TAXABLE BONDS HASSE 162.50032532022B TAXABLE GO REF BONDS 16A 33,483.6804000BUILDING FUND 27,444.4404100EQUIPMENT FUND 372,735.3504161ARENAS CAPITAL IMPROVEMENTS 9,000.0004200PARK DEDICATION FUND 32,998.8604401TRAIL IMPROVEMENT FUND 2,947.2604500PARK IMPROVEMENT FUND 151,603.71047002022 C PARK BONDS 34,515.47047202024 X PARK BONDS 18,155.3705300PAVEMENT MANAGEMENT FUND 219,941.8705500WATER TRUNK FUND 2,715.0005600SANITARY SEWER TRUNK FUND 12,285.6707450ENVIRONMENTAL RESOURCES FUND 2,192.13-07550 UTILITY FISCAL ADMINISTRATION 15,604.2807575STREET LIGHTING FUND 93,995.6607600WATER FUND 471,778.9007700SEWER FUND 893,430.5807800LIQUOR FUND 41,023.6007900MUNICIPAL RESERVES FUND 3,384.8708000ESCROW FUND - DEVELOPERS/BUILD 4,144.21-08910 ESCROW - DCA/SECTION 125 323,243.2108950DAKOTA 911 - OPERATING FUND 118,282.8708970LAKEVILLE ARENAS - OPERATIONS 1,141,269.7009800PAYROLL CLEARING FUND Report Totals 4,567,961.54 Page 5 of 165 MINUTES CITY COUNCIL MEETING May 20, 2024 - 6:00 PM City Hall Council Chambers 1.Call to order, moment of silence and flag pledge Mayor Hellier called the meeting to order at 6:00 p.m. 2.Roll Call Members Present: Mayor Hellier, Council Members Bermel, Lee, Volk, Wolter Staff Present: Justin Miller, City Administrator; Andrea McDowell Poehler, City Attorney; Julie Stahl, Finance Director; John Hennen, Parks & Recreation Director; Allyn Kuennen, Assistant City Administrator; Ann Orlofsky, City Clerk; Brad Paulson, Police Chief; Paul Oehme, Public Works Director; Tina Goodroad, Community Development Director 3.Citizen Comments None 4.Additional agenda information None 5.Presentations/Introductions None 6.Consent Agenda Motion was made by Bermel, seconded by Wolter, to approve the following: Voice vote was taken on the motion. Ayes - Hellier, Bermel, Lee, Volk, Wolter a.Check Register Summary b.Minutes of the 05/06/2024 City Council Meeting c.Agreement with Musco Sports Lighting, LLC. for Grand Prairie Park (formerly Avonlea Community Park) Site Lighting Materials: CIP #24-20 d.Agreement with ECSI for new CCTV system e.Agreement with RES PYRO for July 4th Fireworks Display f.Resolution Authorizing Issuance and Sale of General Obligation Bonds, Series 2024A g.Minutes of the 04/22/2024 Work Session h.Supplemental Agreement for Professional Services with WSB for 2024 Miscellaneous Drainage Improvements in Spyglass and Legacy Park Page 6 of 165 City Council Meeting Minutes May 20, 2024 Page 2 i.Grant Agreements with Dakota County for Aquatic Invasive Species Program Funding Assistance j.Joint Powers Agreement with Vermillion River Watershed Joint Powers Organization for City Projects 24-02 and 24-20 k.Cedar Creek Villas 2nd Addition Final Plat l.Preserve of Lakeville Third Addition Final Plat m.Ritter Meadows final plat n.Resolution Approving Charitable Gambling For Lakeville Lions 7.Action Items a.Superior Sand and Gravel Interim Use Permit The applicant, Dan Smith, proposed to excavate an aggregate deposit within a 100-foot- wide high-pressure gas main easement that runs north and south through approximately one-third of the property. This portion was recently abandoned by CenterPoint Energy. The request is to excavate, crush, and sort the aggregate within a two-year period. Additional time was requested to export the sorted aggregate and import fill material to bring the property to a final minimum grade, allowing for future development. The Interim Use Permit application proposed mining and fill activity through December 31, 2029. Planner Dempsey provided the staff report. On May 6, 2024, the City Council tabled action on Superior Sand and Gravel's interim use permit request to allow mining and excavation, grading, filling, and aggregate processing operations on property located in the northeast quadrant of Kenrick Avenue and 195th Street at 19250 Kenrick Avenue. Following the City Council motion and approval to table the item until the May 20, 2024, meeting, the applicant has since agreed to a revised and reduced time frame of mining, excavation, and fill/grading activity between May 2024 and December 31, 2026, provided the quantity of imported fill material exceeds the quantity of export material from the property during that period. If imported material exceeds exported material during this period, then one additional year of mining and excavation will be allowed until December 31, 2027. Stipulation S includes this new language. The Planning Commission held a public hearing at its April 25, 2024, meeting. Three individuals, one in person and two via email, provided comments. The Planning Commission recommended unanimous approval of the interim use permit subject to 19 stipulations. The City Council asked questions related to who will be responsible for regulating what the applicant is mining. Council asked to a stipulation that would require any loads leaving the property are wetted down, and covered for weather purposes. Page 7 of 165 City Council Meeting Minutes May 20, 2024 Page 3 Planner Dempsey asked that a motion be made to include that stipulation if the Council should require it. Motion was made by Bermel, seconded by Wolter, to approve an interim use permit to Superior Sand & Gravel with the amendment of adding a stipulation to include signage at the exit advising users to have their loads covered, and adopt the findings of fact. Roll call was taken on the motion. Ayes - Hellier, Bermel, Lee, Volk, Wolter b.Holman Interim Use Permit Applicant Debra Holman requested an application for an interim use permit to allow an apiary (keeping of honeybees) accessory for use on a single-family home located at 18005 Jacquard Path. The applicant also requested that the City Council consider shortening the time frame and lowering the cost for an apiary application. Larry Hill, a local beekeeper at Aspen Ridge Honey Farm, spoke on behalf of the applicant and provided some education about the flight pattern and harvest of bees. Mr. Hill has been a beekeeper for 24 years. There is no certification process to become a beekeeper, but classes are online through the University of Minnesota extension office. Larry has also mentored other beekeepers, and he is mentoring Debra Holman. Planner Frank Dempsey provided the staff report. The proposed property is located in the RS-2, Single Family Residential District. An apiary is allowed in a residential zoning district subject to 11-35-3.F.2 of the Zoning Ordinance. This is the first application submitted for an apiary on a residential property since the Zoning Ordinance was amended to allow them in 2017. The Planning Commission held a public hearing at its May 9, 2024, meeting. One person provided a comment at the public hearing, and two individuals sent emails following the public hearing. The Planning Commission recommended unanimous approval of the interim use permit subject to six stipulations. The Council discussed whether the applicants should be certified to an apiary for the keeping of bees, the Council acknowledged the emails that were submitted. Council asked for someone with bee knowledge to assist with the inspections when they occur and to review the ordinance. Motion was made by Lee, seconded by Wolter, to approve the Debra Holman interim use permit and adopt the findings of fact. Roll call was taken on the motion. Ayes - Hellier, Bermel, Lee, Volk, Wolter 8.Unfinished Business None 9.New Business None 10.Announcements Page 8 of 165 City Council Meeting Minutes May 20, 2024 Page 4 a.Next Scheduled Work Session, Tuesday, May 28, 2024 b.Next Scheduled City Council Meeting, June 3, 2024 11.Adjourn Motion was made by Wolter, seconded by Bermel, to adjourn. Voice vote was taken on the motion. Ayes - Hellier, Bermel, Lee, Volk, Wolter Respectfully Submitted, __________________________________ Ann Orlofsky, City Clerk ____________________________ Luke M. Heller, Mayor Page 9 of 165 Date: 6/3/2024 Resolution Authorizing Temporary Closing of City Streets for Pan-O-Prog Events Proposed Action Staff recommends the adoption of the following motion: Move to approve a resolution authorizing the temporary closing of city streets for Panorama of Progress events. Overview Each year, the Pan-O-Prog Board requests the temporary closing of certain streets in the downtown area for Pan-O-Prog events. These events include the Street Market, Cruise Night, Kiddie Parade, Car Show and Grand Parade. The resolution also authorizes temporarily closing streets near King Park for the 4th of July fireworks. In the event of inclement weather on July 4th causing the fireworks event to be postponed to July 5th, the same street closures would apply to the backup date. As in the past, a Dakota County Obstruction Permit is required to close 202nd Street from Dodd Boulevard to Highview Avenue for the Cruise and Grand Parade. The Police Department is working with Dakota County to obtain this permit. Primary Issues to Consider What impact will the street closures have on motorists? Signs are posted well in advance to alert motorists of the street closures. Information will also be provided in the local newspaper, the City’s website and on social media. Supporting Information 1. 2024 Pan-O-Prog Street Closure Resolution Addendum Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: A Sense of Community and Belonging Report Completed by: Lt. Jason Polinski, Lakeville Police Department Page 10 of 165 CITY OF LAKEVILLE RESOLUTION NO._________ RESOLUTION AUTHORIZING TEMPORARY CLOSING OF CITY STREETS FOR PAN-O-PROG EVENTS WHEREAS, the Panorama of Progress is a large event in Lakeville's downtown area, requiring the temporary closure of certain streets near and around the downtown area. NOW, THEREFORE, BE IT RESOLVED the city streets listed on the attached Exhibit A shall be temporarily closed by the Lakeville Street and Police Departments for certain Panorama of Progress events; and BE IT FURTHER RESOLVED July 05, 2024, shall be the back-up fireworks date if the event is postponed on July 4, 2024, due to inclement weather, and the road closing locations and times associated with the fireworks event shall apply on July 5th. BE IT FURTHER RESOLVED the Police Chief or his designee has the authority to temporarily close city streets not listed on the attached exhibit if necessary. ADOPTED by the Lakeville City Council this 3rd day of June 2024. CITY OF LAKEVILLE _________________________ Luke M Hellier, Mayor _________________________ Ann Orlofsky, City Clerk Page 11 of 165 Exhibit A STREET CLOSURE:DATE:TIME:PAN-O-PROG EVENT: DODD BOULEVARD (CR-9) 190th St to Highview Ave July 4th, 2024 (Thursday) 9:00 – 11:30 p.m.Fireworks Set-Up and Safety/Security Dodd Boulevard (CR-9) Block Access @ Inca Ave / Huxley Ave / 183rd St / Hyde Park Ave July 4th, 2024 (Thursday) 9:00 – 11:30 p.m.Fireworks Safety/Security 185th STREET (CR-60) Ipava Ave to Highview July 4th, 2024 (Thursday) 9:00 – 11:30 p.m.Fireworks Safety/Security HOWLAND AVENUE 209th St to Upper 209th St July 10th, 2024 (Wednesday) – July 14th, 2024 (Sunday) Continuous Closure Family Fun Fair & Carnival 208th STREET Holyoke Ave to Holt Ave July 10th, 2024 (Wednesday) – July 14th, 2024 (Sunday) Continuous Closure Street Market 209th STREET Holyoke Ave to Howland Ave July 12th, 2024 (Friday) 12:00 – 9:30 p.m.Race Car Alley HOLYOKE AVENUE Heritage Dr to 215th St (CR-70) July 12th, 2024 (Friday) 6:00 – 11:00 p.m.Cruise Night 202nd STREET (CR-50) Iberia Ave to Highview Ave July 12th, 2024 (Friday) 6:00 – 9:00 p.m.Cruise Night 210th STREET Holt Ave to Jacquard Ave July 12th, 2024 (Friday) 6:00 – 9:00 p.m.Cruise Night JACQUARD AVENUE 210th St to 215th St (CR-70) July 12th, 2024 (Friday) 6:00 – 9:00 p.m.Cruise Night 207th STREET Holyoke Ave to Howland Ave July 12th, 2024 (Friday) 4:00 p.m. until 1 a.m. (Saturday) Cruise Night and Adult Dance 207th STREET Holyoke Ave to Howland Ave July 13th, 2024 (Saturday) 12:00 p.m. until 1 a.m. (Sunday) Cruise Night, Car Show, Grand Parade, and Adult Dance HOLYOKE AVENUE Upper 206th St to 210th St July 13th, 2024 (Saturday) 9:00 a.m. until 11:00 p.m. Kiddie Parade, Car Show, and Grand Parade HOLYOKE AVENUE Heritage Dr to 215th St (CR-70) July 13th, 2024 (Saturday) 4:00 – 9:00 p.m.Grand Parade HERITAGE DRIVE Holyoke Ave to Idealic Ave July 13th, 2024 (Saturday) 4:00 – 9:00 p.m.Grand Parade IBERIA AVENUE Heritage Dr to 202nd St (CR-50) July 13th, 2024 (Saturday) 4:00 – 9:00 p.m.Grand Parade EB 210th STREET Dodd Blvd (CR-9) to Hamburg Ave July 13th, 2024 (Saturday) 3:00 – 9:00 p.m.Grand Parade HERON WAY Complete Circle July 13th, 2024 (Saturday) 3:00 – 9:00 p.m.Grand Parade 202nd STREET (CR-50) Iberia Ave to Highview Ave July 13th, 2024 (Saturday) 4:00 – 9:00 p.m.Grand Parade Page 12 of 165 Exhibit A Holyoke Avenue 207th St to 209th St. July 14th, 2024 (Sunday) 7:00am – 6:00pm Chalk Art Page 13 of 165 Date: 6/3/2024 Temporary On-Sale Liquor License to Lakeville Lions for Pan-O-Prog Events Proposed Action Staff recommends adoption of the following motion: Move to approve the issuance of a temporary on-sale liquor license to the Lakeville Lions Club subject to the stipulations provided in the staff report. Overview The Lions would like to hold their annual Beer, Brats & Bingo event on Thursday, July 11, at the Lakeville Area Arts Center. The event will include bingo and outside beer service. A site plan showing the layout of the fenced-in areas, the tent locations, and the food/alcohol distribution area has been provided with the application. In addition to Beer, Brats & Bingo, the Lions would like to host a beer garden with live music on Friday, Saturday, and Sunday. All events will be held at the Arts Center. The Lions will provide personnel at the entrance to identify and wristband those of legal age to consume alcohol. No one under the age of 21 will be allowed after 9:30 p.m. on Friday and Saturday. The Police Department has no objection to the issuance of a temporary on-sale liquor license, subject to the attached stipulations. The Lions have submitted a certificate of liquor liability insurance naming the City of Lakeville as an additional insured. Supporting Information 1. 2024 Lakeville Lions Beer Garden Schedule for Pan-O-Prog 2. Lion's Stipulations Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: A Sense of Community and Belonging Report Completed by: Ann Orlofsky, City Clerk Page 14 of 165 Page 15 of 165 Stipulations-Lakeville Lions ➢Fencing shall be erected around the site per the submitted site plan. ➢Portable toilets listed and placed per the submitted application and site plan ➢Notification, via letter, to surrounding neighbors expected to be impacted by the event advising them of the dates and times of the event and what to expect ➢Controlled access to the event with Lion’s security personnel to identify and wrist band those of legal age to consume alcohol ➢Persons under 21 years of age may attend the events, but are required to exit the event prior to 10:00 p.m. Persons of legal drinking age must wear a wrist band, and only persons wearing a wrist band will be allowed to purchase or consume alcohol. ➢All alcohol service shall cease at 10:45 p.m. on Thursday. ➢All alcohol service shall cease at midnight on Friday and Saturday. ➢All outdoor live music shall cease by midnight on Friday and Saturday. ➢Lion’s security shall assist the Police Department in clearing the establishment each night at closing time. The closing time must be prominently displayed throughout, so there is no confusion at the end of the evening when patrons are asked to leave. ➢For all events, the Lions shall hire uniformed police officers to supplement their security staff as required by the police department. ➢The Police Chief, Fire Chief or designee may direct the event manager to control the level of noise and/or terminate the event at any time. ➢Lions shall submit a tent plan to the Fire Inspector and comply with fire code requirements. Page 16 of 165 Date: 6/3/2024 Extension of on-sale liquor license premise at B-52's for Pan-O-Prog events Proposed Action Staff recommends adoption of the following motion: Move to approve the extension of B-52's Liquor License premise to include the fenced-in parking lot on July 11-13, 2024 subject to the stipulations provided in the staff report. Overview B-52's requests an extension of their liquor license premise to include the fenced-in parking lot with live music during their annual Pan-O-Prog events. These events have been held for several years without major issues. A site plan, schedule of events, and certificate of insurance have been provided. B-52's owner, Mark Reese, will send a letter to the surrounding neighbors advising them of the scheduled events. The police department reviewed the request and has no objection to the extension of the licensed premise, provided B-52's abides by the site plan and the attached list of stipulations. Supporting Information 1. B-52's Request 2. B-52 Site Plan 3. B-52's stipulations Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: A Sense of Community and Belonging Report Completed by: Ann Orlofsky, City Clerk Page 17 of 165 30 May 2024 Mayor Helier Council Members City of Lakeville 20751 Holyoke Ave Lakeville, MN 55044 Dear Mayor Helier and Council Members: B-52 Burgers and Brew respectfully requests an extension of our on-sale liquor license to allow the sale of alcoholic beverages and live entertainment in the fenced in parking lot on July 11th- 13th, 2024. Enclosed is a site plan, schedule of events, and a certificate of insurance. We are happy to do any additional requests. The on-site manager for the event will follow the authority of the Chief of Police, the Fire Chief or designees to control the level of noise or terminate any event due to security concerns or inclement or hazardous weather. Thank you for your consideration. We appreciate being a part of this fun and historic community event. Best Regards, Jason Saji B-52 Burgers and Brew 20751 Holyoke Ave. Lakeville, MN 55044 Page 18 of 165 Panorama of Progress 2024 | B-52 Event Schedule Thursday July 11th 2024 •Food and drinks are available inside and out until midnight, no drinks after midnight outside. 3 security, family fun event. •Band inside and outside until 11pm •Coloring stand, picnic tables, inflatable slide. No minors after 10PM. •No cover charges. Friday July 12th 2024 •Food and drinks are available inside and out until midnight, no drinks after midnight outside. 3 security, family fun event. •Band inside and outside until midnight •Coloring stand, picnic tables, inflatable slide. No minors after 10PM. •No cover charges. •Bar High top tables and chairs are removed at the conclusion of the cruise. Approximately 8PM. •4 Police Officers and security team of 3 as well as 2 managers dedicated to front of house operations Saturday July 13th 2024 •Food and drinks are available inside and out until midnight, no drinks after midnight outside. 3 security, family fun event. •Band inside and outside until midnight •Coloring stand, picnic tables, inflatable slide. No minors after 10PM. •No cover charges. •Bar High top tables and chairs are removed at the conclusion of the cruise. Approximately 8PM. •4 Police Officers and security team of 3 as well as 2 managers dedicated to front of house operations Provisions •Only the ages of 21 or older at 10PM. •ID Checks include no permission of those with any driver’s license restrictions •Radios among door, security, management, service staff and support staff are used for communication the full 3 days. Page 19 of 165 Stipulations •Barricade fencing shall be erected around the site per the submitted site plan. •Portable toilets listed and placed per the submitted site plan. •Controlled access to the event with B-52 security personnel to identify and stamp those of legal age to consume alcohol. •Persons under 21 years of age are required to exit by 10PM. •All outdoor live music shall cease by midnight. •All outside alcohol service shall cease at midnight. •Security shall assist the police department in clearing the establishment at midnight. •For all events, B-52 shall hire uniformed police officers to supplement their security staff as required by the police department. •The Police Chief, Fire Chief or designee may direct the event manager to control the level of noise and/or terminate the event at any time. Page 20 of 165 Patio 19 x 31 feet Garage Door Wells Fargo lot Starts at yellow line 3 parking spaces Offices Cold Trailer Picnic table Picnic table Picnic table Picnic table Picnic table Picnic table Tent Port-aPotty Port-aPotty Port-aPotty Score on Scotty Tent Swing set SLIDE Page 21 of 165 Stipulations-B52’s ➢Double fencing shall be erected around the site per the submitted site plan. ➢Portable toilets listed and placed per the submitted site plan ➢Notification, via letter, shall be sent to surrounding neighbors expected to be impacted by the event advising them of the event schedule. ➢Controlled access to the event with B52’s security personnel to identify and wrist band those of legal age to consume alcohol ➢Persons under 21 years of age may attend the event but are required to exit by 9:30 p.m. ➢All outdoor live music shall cease by midnight on Friday and Saturday. ➢All outside alcohol service shall cease at midnight on Thursday. ➢All alcohol service shall cease at midnight on Friday and Saturday. ➢B-52’s security shall assist the police department in clearing the establishment after midnight. ➢The closing time must be prominently displayed throughout so there is no confusion at the end of the evening when patrons are asked to leave. ➢For all events, B-52’s shall hire uniformed police officers to supplement their security staff as required by the police department. ➢The Police Chief, Fire Chief or designee may direct the event manager to control the level of noise and/or terminate the event at any time. ➢B-52’s shall submit a tent plan to the Fire Inspector and comply with fire code requirements. Page 22 of 165 Date: 6/3/2024 Extension of on-sale liquor license premise at Babe's Sportsbar and Grill for Pan-O-Prog events Proposed Action Staff recommends the adoption of the following motion: Move to approve the extension of Babe's Sportsbar and Grill's on-sale liquor license premise to include the fenced-in parking lot on July 11-13, 2024 subject to the stipulations provided in the staff report. Overview Babe's Sportsbar and Grill is requesting an extension of their liquor license premise to include the fenced-in parking lot with live music during their annual Pan-O-Prog events. These events have been held for several years without major issues. A site plan, schedule of events, and certificate of insurance have been provided. Babe's owner, Tom Tomaro, will send a letter to the surrounding neighbors advising them of the scheduled events. The police department reviewed the request and has no objection to the extension of the licensed premise, provided Babe's abides by the site plan and the attached list of stipulations. Supporting Information 1. Letter of Request 2. Schedule of Events 2024 3. Babe's Outdoor Site Plan 4. Babe's stipulations Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: A Sense of Community and Belonging Report Completed by: Ann Orlofsky, City Clerk Page 23 of 165 Page 24 of 165 Page 25 of 165 Page 26 of 165 Stipulations-Babe’s ➢Double fencing shall be erected around the site per the submitted site plan. ➢Portable toilets listed and placed per the submitted site plan ➢Notification, via letter, shall be sent to surrounding neighbors expected to be impacted by the event advising them of the event schedule. ➢Controlled access to the event with Babe’s security personnel to identify and wrist band those of legal age to consume alcohol ➢Persons under 21 years of age may attend the event but are required to exit by 9:30 p.m. ➢All outdoor live music shall cease by midnight on Friday and Saturday. ➢All outside alcohol service shall cease at midnight on Thursday. ➢All alcohol service shall cease at midnight on Friday and Saturday. ➢Babe’s security shall assist the police department in clearing the establishment after midnight. ➢The closing time must be prominently displayed throughout so there is no confusion at the end of the evening when patrons are asked to leave. ➢For all events, Babe’s shall hire uniformed police officers to supplement their security staff as required by the police department. ➢The Police Chief, Fire Chief or designee may direct the event manager to control the level of noise and/or terminate the event at any time. ➢Babe’s shall submit a tent plan to the Fire Inspector and comply with fire code requirements. Page 27 of 165 Date: 6/3/2024 Acknowledge Receipt of Lakeville Arenas 2025 Budget Proposed Action Staff recommends adoption of the following motion: Move to acknowledge receipt of the 2025 Lakeville Arenas Budget Overview As required by the Lakeville Arenas Joint Powers Agreement, both the City of Lakeville and ISD#194 are required to review and receive the annual Lakeville Arenas budget. Once both parties have acknowledged receipt of the budget and provided any comments, the Arenas Board will formally approve it. Supporting Information 1. 2025 Lakeville Arenas Budget Proposed - revised 05-15-2024 Financial Impact: $0.00 Budgeted: Yes Source: Taxes Envision Lakeville Community Values: Access to a Multitude of Natural Amenities and Recreational Opportunities Report Completed by: Cheri Donovan, Assistant Finance Director Page 28 of 165 1 Page 29 of 165 2 2025 Budget Proposed March 15, 2024 Table of Contents Page Letter of Transmittal ………………………………………………………. 3 2023 Budget Summary Revenue………………………………………………………………. 5-7 Expenditures…………………………………………………………...8-11 Capital Reserve Fund………………………………………………… 11 2024 Budget Estimate Revenue………………………………………………………………13-16 Expenditures………………………………………………………… 16-18 Net Revenue………………………………………………………… 19 Capital Reserve Fund………………………………………………. 20 2024 Budget Estimate Amendment………………………………… 21-23 2024 Capital Reserve Fund Amendment…………………………… 24 2025 Budget Revenue………………………………………………………………. 25-28 Salaries & Benefits…………………………………………………… 29-30 Commodities…………………………………………………………. 30-31 Other Services………………………………………………………... 31 Contracted Services…………………………………………………... 31 Utilities………………………………………………………………. 32 Debt Service…………………………………………………………. 32 Capital………………………………………………………………... 33 Net Revenue…………………………………………………………. 33 Capital Reserve Fund………………………………………………… 34 2025 Budget Detail……..……………………………………………. 35-37 2025 Capital Reserve Fund Budget…………………………………... 40 2025 Fee Schedule…………………………………………………………….39-40 Debt……………………………………………………………….……………41 Conclusion……………………………………………………………………. 41 Page 30 of 165 3 May 15, 2024 Lakeville Arenas Board members The Joint Powers Agreement requires the Board to approve an annual budget on a calendar year basis. The budget must set forth projected expenditures and revenues necessary to finance lease payments, fund the capital maintenance reserve and to maintain, operate, and manage the Arena Complexes. The budget must be submitted to the City and School District prior to June 1st. The Board must approve the budget prior to July 1. As such the proposed 2025 budget is hereby presented to the Board for their consideration and approval. The budget is comprised of the following funds for Lakeville Arenas to effectively manage its financial resources. • General (Operating) Fund. The General Fund accounts for the overall operations of the Lakeville Arenas. • Capital Reserve Fund. The Capital Reserve Fund was established to provide the financing of future equipment replacements and major facility repairs and improvements. The salient issues relative to the proposed budget for each of the respective funds are discussed in the sections attached hereto. Respectfully Submitted, _________________________________________ Joe Bergquist – Lakeville Arenas General Manager Page 31 of 165 4 2023 SUMMARY Page 32 of 165 5 2023 FINANCIAL SUMMARY The 2023 fiscal year marked the 16th full year of joint operation of Lakeville Arenas under a Joint Powers Agreement between the City of Lakeville and Lakeville Area Schools. The agreement has enabled the Lakeville Arenas organization to offer opportunities to serve our residents and customers, while minimizing the financial impact on tax payors. Lakeville Arenas has paid for all its operating expenses with the revenue generated from ice rentals and other sources related to operating the ice arenas. 2023 reflects yet another year of operations with no taxpayer subsidies used to pay for any of the daily operating expenses of the ice arenas. 2023 REVENUES Current revenue expansion by management continued in 2023 and exceeded expectations. Historically the ice arenas relied on ice rentals for 80-85 percent of the total revenue needed to operate. 2023 ice rental revenue increased 5% but was only 71% of total revenues collected, thus indicating success in growing other revenues. The additional revenue generated helped offset record high operating expenses caused by increased market labor rates and high inflation. 2023 Ice Rental Revenue Ice rental revenue increased by 5% which was primarily derived from a 4% increase in ice rental rates to help with higher expenses. Expansion of ice sales were limited due to the construction taking place at Hasse Arena in 2023 and management focused on other revenue streams for continued expansion and growth. 2017 2018 2019 2020 2021 2022 2023 Ice Rental - ISD 194 206,325 222,432 196,751 197,062 254,064 210,124 218,470 Ice Rental Other 271,389 253,187 287,498 61,172 228,408 402,052 442,215 Ice Rental - LHA 485,325 438,390 429,757 370,475 483,260 477,840 487,536 0 100,000 200,000 300,000 400,000 500,000 600,000 2023 ICE RENTAL REVENUE 1,179,792 1,147,365 1,188,662 776,049 1,110,622 1,414,268 1,608,487 Total Revenue - 500,000 1,000,000 1,500,000 2023 TOTAL REVENUE 2017 2018 2019 2020 2021 2022 2023 Page 33 of 165 6 2023 Programming & Admissions Revenue Programming and admissions revenue grew by 16% or $32,268 for a total of $235,459. Growth in Learn to Skate, public admissions, and arena programming provided most of the growth and offset a $9,784 decrease in dry-floor rentals due to construction in at Hasse. 2023 Welcome Center Revenues Net concessions revenue increased by 75% or $54,604; total welcome center revenue in 2023 were $141,275 compared to $85,521 in 2022. 2017 2018 2019 2020 2021 2022 2023 Dry floor Rentals 24,685 28,533 17,553 9,245 5,113 20,021 10,237 Arena Programming -----17,996 30,775 ISD 194 HS Game Gate Share 41,750 52,038 37,339 27,608 14,749 43,950 45,218 Admissions-Public Skating 12,207 12,207 23,066 6,030 11,959 35,971 45,883 Learn to Skate 53,183 58,260 62,503 33,128 73,061 85,253 103,346 Total Programing & Admisssions 131,825 151,038 140,461 76,011 104,882 203,191 235,459 (20,000) 30,000 80,000 130,000 180,000 230,000 2023 PROGRAMMING & ADMISSIONS REVENUE 2017 2018 2019 2020 2021 2022 2023 Skate Rental 7,422 8,324 8,554 3,570 2,808 5,217 3,117 Skate Sharpening 6,668 6,223 5,964 2,700 637 5,283 4,363 Net Pro Shop Product Sales -----2,535 6,705 Net Food & Beverage Sales 25,973 25,134 26,118 13,377 10,360 72,486 127,090 Total Welcome Center 40063 39681 40636 19,647 13,805 85,521 141,275 - 20,000 40,000 60,000 80,000 100,000 120,000 2023 WELCOME CENTER REVENUE Page 34 of 165 7 2023 Other Misc. Revenues Advertising revenues in 2023increasedby $11,058 or 28% compared to 2022. Investments values and interest showed significant improvements with total other revenues increasing 135% or $47,991. 2023 Total Revenue 2023 Total Revenue increased for the 3rd consecutive year. Total revenue increased $194,219 compared to 2022. Revenue has increased 497,865 since management began expanding revenue sources in 2021, which represents a 45% increase in operating revenue. 2017 2018 2019 2020 2021 2022 2023 Games-Vending Machines 5,713 6,598 6,376 5,146 881 1,677 3,149 Donations 4,861 1,502 51,189 31,304 24,465 6,202 3,310 Net Change in FV of Investments 2,197 5,485 13,276 10,266 (4,816)(15,802)8,647 Interest on Investments -----4,317 18,221 Advertising Sales / Other 32,094 29,052 22,718 4,966 5,673 39,147 50,205 Total Other Arena Revenues 44,865 42,637 93,559 51,682 26,203 35,541 83,532 (15,000) 5,000 25,000 45,000 65,000 85,000 105,000 2023 OTHER MISC. REVENUE 2017 2018 2019 2020 2021 2022 2023 Total Operating Revenue 1,179,792 1,147,365 1,188,662 776,049 1,110,622 1,414,268 1,608,487 Increase/Decrease over Prior Yr.(32,427)41,297 (412,613)334,573 303,646 194,219 Change -3%4%-35%43%27%14% (400,000) (200,000) - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 Page 35 of 165 8 OPERATING EXPENSES Total operating expenses in 2023 rose by $156,867 or 11%. Total expenses were $1,524,344 or 95% of total revenue compared to 2022 total expenses of $1,367,476 or 97% of total revenue. Major impacts in 2023 included a new 63,460 annual payment towards the debt service on the 2021 8.1m energy improvement project. An additional one-time expense of approximately $45,000 was incurred for Lakeville Arenas portion of the new financial and payroll systems at the city. Other major unbudgeted impacts included a battery pack replacement for a Zamboni, and a new overhead garage fire door on rink 2. 2023 Salary Expense 2023 Salary Expense rose as expected by $62,317 or 13% due to increased sales and workloads, addition of a part time custodian, and improved overall part time staffing. Full time staffing vacancies and difficulty finding applicants continued in 2023, which led to total salary expenses being below budget once again. Total salary expenses were 34% of total revenue in 2023 compared to 35% in 2022. Percent of revenue is a key indicator for measuring labor trends, setting benchmarks, and controlling labor expenses. 2017 2018 2019 2020 2021 2022 2023 TOTAL OPERATING EXPENSES 1,154,916 1,171,902 1,127,465 942,977 1,090,116 1,367,477 1,524,344 TOTAL OPERATING REVENUE 1,179,792 1,147,365 1,188,662 776,049 1,110,622 1,414,268 1,608,487 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 TOTAL EXPENSES TO REVENUE 2017 2018 2019 2020 2021 2022 2023 Salaries - Full Time - Overtime 30,539 ----19,767 22,356 Salary Expenses & Benefits 81,827 84,662 84,328 72,562 66,623 98,678 83,616 Salaries - Full Time 171,629 174,244 191,079 157,428 155,819 230,289 195,580 Salaries - Part Time 134,976 157,427 148,379 103,871 153,135 141,394 250,893 Total Salary & Benefit Expenses 418,971 416,333 423,786 333,861 375,577 490,128 552,445 Percent of Revenue 36%36%36%43%34%35%34% - 100,000 200,000 300,000 400,000 500,000 2023 SALARY EXPENSES Page 36 of 165 9 2023 Commodities Commodities were 8% of total revenue in 2023 compared to 6% in 2022. Most commodity expenses were for facility/equipment repairs and improvements and other projects performed by arena staff. 2023 staff projects included: remodeling of the concessions stand at Hasse Arena, interior painting of Hasse Arena to match the Lakeville South School colors, new concessions/pro-shop equipment for Hasse and Ames Arena, new water hog carpeting in the vestibules at Ames and Hasse, installation of new sound systems purchased by LHA for Hasse & Ames, removal of old rink dasher boards at Hasse, installation of new rubber at the east end of Hasse, cut and installed a new doorway and wall in Ames concessions, plumbed a new fill station for rink 2 Zamboni, and the installation expenses for new light show equipment purchased by the North High School Booster Club at Ames Arena. 2023 Other Charges & Services Other charges & services are primarily administrative overhead and professional services, which include items such as fiscal management agent fees, banking and credit card fees, annual audit, insurance, dues and subscriptions, and other miscellaneous expenses. Total other expenses increased in 2023 by $12,943 or 11% and totaled $131,733 compared to $118,790 in 2022. Significant increases included insurance premiums due to the Ames 2021 ice plant room addition and other improvements to both Ames and Hasse Arenas. Increases in credit card charges from additional welcome center sales and more use of credit cards for ice rentals. We also incurred additional fiscal management fees related to labor provided for the city’s new finance and payroll systems and HR upgrades. 2023 Contracted Expenses Contracted expenses in 2023 were 9% of total revenue compared to 12% in 2022. Expenses include repair and maintenance performed on facilities, grounds, and equipment, cleaning services, landscape services, and other areas where an outside contractor is used. 2023 expenses were $145,565 compared to $172,043 in 2022. Some of the decrease was due to the elimination of an outside cleaning company and less repairs at Hasse Arena while it was shut down during construction. Low snowfall and plowing expenses at the end of 2023 also impacted the savings. 2023 Utility Expenses Utilities in 2023 were down $48,821 or 10% due to Hasse Arena being closed for construction and a very mild fall and winter at the end of the year. Utilities were only 19% of the revenue compared to the normal average of around 24%. Total utilities in 2023 were $309,123 compared to $343,064 in 2022. 2017 2018 2019 2020 2021 2022 2023 Total Commodities 45,567 50,568 49,382 36,304 71,727 88,202 122,182 Total Other Expenses 74,526 80,078 77,081 71,530 80,284 118,790 131,733 Total Contracted Expenses 113,393 95,829 157,464 105,004 126,804 172,043 145,565 Total Utility Expenses 260,667 288,463 274,523 242,566 262,583 343,064 309,123 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2023 GENERAL OPERATING EXPENSES Page 37 of 165 10 2023 Interest & Debt Expenses Debt expenses increased in 2023 by $62,210 or 40%. Debt service included $12,875 for interest towards the new parking lot Ames in 2020, and $63,460 towards the 8.1m of debt service for the Energy Improvements Project at Ames and Hasse Arenas in 2021. 2023 was the first year of the annual contribution towards the energy improvements project debt service. 2023 Capital Expenses Capital expenditures from the arena’s operating fund in 2023 were $186,961 and rose by $45,836 or 32%, The difference was from unexpected capital repairs that were funded from the operating fund rather than the capital reserve fund. Purchases included an overhead fire rated Zamboni room door at Ames that failed and was replaced for approximately $18,000, 2 Zamboni battery packs costing approximately $11,000 each, and a used pickup truck for $6,000 that was purchased from the city. The annual transfer to the capital budget fund in 2023 remained at $140,000 being transferred for future capital expenses. 2023 Net Profit/(Loss) Lakeville Arenas is required to adopt a balanced budget annually as per Minnesota State Statute 412.711. Management budgets for a minimal margin with any surplus remaining in the general operating fund or transferred to the capital reserve fund. Over the past three years revenue has exceeded expectations from new or expanded revenue streams. Those profits have remained in the general operating fund to recoup the losses seen during the pandemic in 2020. Since then, Lakeville Arenas has been expanding current sources of revenue and adding new streams to recoup the funds lost during the 2020 pandemic. Total profits from 2021 through 2023 are $151,440, thus there is only $15,488 remaining to recoup from the pandemic losses. These additional revenues have also offset record high inflation & substantial increases in the marketplace labor rates, both of which would have otherwise been passed on to customers. In addition, the new revenue has funded additional staffing necessary for operating, maintaining, and repairing the facilities, and provided improvements to facilities and user amenities. New funds are also paying for the new annual debt service contribution of $63,460 towards the 2021 energy project. In 2023 and 2024 the added revenue is paying for approximately 100,000 of expenses related to the arenas portion of the city’s new payroll & HR software-system upgrades and financial software-system upgrades. 2017 2018 2019 2020 2021 2022 2023 Total Debt Expense 88,626 88,626 -3,353 12,142 14,125 76,335 Total Capital Expenses 153,166 152,005 145,229 150,359 161,000 141,125 186,961 Total Debt & Capital Expense 241,792 240,631 145,229 153,712 173,142 155,250 263,296 - 50,000 100,000 150,000 200,000 250,000 2023 Debt & Capital Expenses 2017 2018 2019 2020 2021 2022 2023 Net Income (Loss)24,876 (24,537)61,197 (166,928)20,506 46,791 84,143 Percent of Revnue 2%-2%5%-22%2%3%5% 24,876 (24,537) 61,197 (166,928) 20,506 46,791 84,143 2%-2%5% -22% 2%3%5% (200,000) (150,000) (100,000) (50,000) - 50,000 100,000 2023 Net Profit/Loss Page 38 of 165 11 Capital Reserve Fund The purpose of the Capital Reserve Fund is to provide a financial framework for replacement of the arena infrastructure as it ages including, but not limited to, ice resurfacers, vehicles, HVAC equipment, dehumidification, refrigeration systems, and other major expenses not afforded in the annual operating budget. The capital reserve fund saw an additional $250,00 in 2023 from the extension of the naming rights for Hasse Arena. Lakeville Arenas also purchased a new set of dasher boards and related rink equipment for Hasse Arena totaling $319,940 in 2023 after an inspection of the current boards determined they were unsafe and required approximately $60,000 of repairs. LAKEVILLE ARENA RESERVE FUND 2017 2018 2019 2020 2021 2022 2023 Actual Actual Actual Actual Actual Actual Actual Revenues Transfers from Operating Fund 142,000 150,000 130,000 130,000 135,000 140,000 140,000 Other/Grants 71,000 0 17,641 0 0 0 250,000 Interest on investments 3,533 5,747 7,225 3,622 2,145 3,937 9,993 Total Revenues 216,533 155,747 154,866 133,622 137,145 143,937 399,993 Total Exipemditures 240,832 159,286 270,409 49,662 177,699 41,893 319,940 Fund Balance January 1 360,341 336,042 332,503 216,960 300,920 260,366 362,410 Net increase/(decrease)(24,299)(3,539)(115,543)83,960 (40,554)102,044 80,053 Fund Balance December 31 336,042 332,503 216,960 300,920 260,366 362,410 442,463 Page 39 of 165 12 2024 ESTIMATED BUDGET AMENDMENT Proposed May 15, 2024 Page 40 of 165 13 2024 ESTIMATED BUDGET AMENDMENT During the annual budgeting process management prepares an estimated forecast and amendment for the current adopted budget that was prepared the prior year. Current actual financial year-to-date results are combined with current trends, forecasted market conditions, unexpected expenses, and other factors that may have changed since the original budget was approved and adopted. The estimated amended budget is then used to assist in forecasting and creating the next upcoming year’s budget. The following is a summary with details for the 2024 Estimated Budget with actual results from the 1st quarter 2024 combined with current or forecasted changes that will affect the original 2024 adopted budget. 2024 ESTIMATED REVENUE BUDGET 2024 Ice Rental Revenue The 2024 revenue estimate has been updated to reflect actual ice hours sold in the 1st quarter, hours currently reserved through September 2024, and actual hours sold from October through December 2023. The updated 2024 hours reflect an overall increase of indoor hours sold, however total ice revenue is expected to be below the 2024 adopted budget due to the outdoor rink not opening in January as hoped and budgeted. New internal programming for tournaments and summer day camps was delayed until 2025 due to construction and the need to hire a recreation programing manager to properly market, recruit, and operate the new tournaments and camps. Due to the expanded and new revenue growth management will not be increasing ice rental user fees for the 2024-2025 season. 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. Ice Rental - ISD 194 196,751 197,062 254,064 210,124 218,470 236,625 231,863 Ice Rental - LHA 429,757 370,475 483,260 477,840 487,536 583,853 502,175 Ice Rental Other 287,498 61,172 228,408 402,052 442,215 554,206 563,165 Total Ice Rentals 914,006 628,709 965,732 1,090,016 1,148,221 1,374,683 1,297,203 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2024 ICE RENTALS -ESTIMATED BUDGET Page 41 of 165 14 2024 Programming & Admissions Revenue Admissions are expected to increase based upon the current 2024 year to date results and 2023 actual results and trends. Arena programing is expected to continue its current growth with the success of the new Spring Mite League and plans for a fall league. High school game gate shares have been increased to reflect 2023 actual results and Learn-to-skate is being increased based on current spring growth and expected future growth trends. 2024 Welcome Center Revenue Welcome Center revenue has been increased by 15% to reflect 2024 1st quarter results and expected trends for the remaining months of the year. Welcome Center revenue has already outperformed the original adopted budget year-to-date with both arenas being open year-round. Pro-shop sales are also estimated to increase as custom apparel offerings are added, which is now possible with the purchase of a new heat press to decorate apparel. 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. Dry floor Rentals 17,553 9,245 5,113 20,021 10,237 9,762 600 Arena Programming ---17,996 30,775 31,123 53,114 ISD 194 HS Game Gate Share 37,339 27,608 14,749 43,950 45,218 39,110 48,825 Admissions-Public Skating 23,066 6,030 11,959 35,971 45,883 56,962 57,932 Learn to Skate 62,503 33,128 73,061 85,253 103,346 95,708 111,854 Total Programing & Admisssions 140,461 76,011 104,882 203,191 235,459 232,665 272,375 (30,000) 20,000 70,000 120,000 170,000 220,000 270,000 2024 PROGRAMMING & ADMISSIONS REVENUE ESTIMATED BUDGET 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. Skate Rental 8,554 3,570 2,808 5,217 3,117 6,929 3,139 Skate Sharpening 5,964 2,700 637 5,283 4,363 9,103 5,251 Net Pro Shop Product Sales ---2,535 6,705 5,043 7,867 Net Food & Beverage Sales 26,118 13,377 10,360 72,486 127,090 116,520 146,042 Total Welcome Center 40,636 19,647 13,805 85,521 141,275 137,595 162,299 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2024 Welcome Center Revenue -Estimated Budget Page 42 of 165 15 2024 Other Miscellaneous Revenue Other revenue is adjusted to reflect 2023 actual results. The original adopted budget relied on 2022 actuals, which included substantial negative impacts in investments and interest income following the pandemic. The estimated amended budget reflects improved 2023 actual results and current 1st quarter trends. Advertising revenue has also been increased to reflect the current year’s sales. 2024 Total Revenue After changes to adjust for more recent, accurate, and projected sales the total revenue for the 2024 estimated budget increases slightly. Changes made throughout the revenue categories provide a more accurate and realistic forecast for the remaining months of 2024 that management can use to better track progress and adjust spending if needed. 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. Donations/Other Misc.51,189 31,304 24,465 6,202 3,310 5,757 3,235 Games-Vending Machines 6,376 5,146 881 1,677 3,149 4,237 3,347 Net Change in FV of Investments 13,276 10,266 (4,816)(15,802)8,647 (10,678)9,527 Interest on Investments ---4,317 18,221 6,378 19,383 Advertising Sales / Other 22,718 4,966 5,673 39,147 50,205 42,601 49,213 Total Other Arena Revenues 93,559 51,682 26,203 35,541 83,532 48,295 84,705 (16,000) 4,000 24,000 44,000 64,000 84,000 2024 OTHER MISC. REVENUE -ESTIMATED BUDGET 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. TOTAL OPERATING REVENUE 1,188,662 776,049 1,110,622 1,414,268 1,608,487 1,793,238 1,816,532 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2024 TOTAL OPERATING REVENUE -ESTIMATED BUDGET Page 43 of 165 16 2024 ESTIMATED EXPENDITURES 2024 Estimated Salary Expenses Part-time operations staffing has improved substantially and provided some much-needed relief for management and part- time supervisory staff who have been covering and managing severe shortages over the past three years. Full-time staffing has continued to be challenging as there are only 3 of 7 positions currently filled. Some positions have been difficult to find qualified candidates for while others have had hiring pushed back due to delays in the pavilion rink construction and new program revenue. Management is optimistic that a full-time driver position will be filled before next winter’s peak season begins. Management also intends to hire a Recreation Programming Manager this summer to start planning, marketing, and implementing the new tournaments and mite camps in 2025. Full Time Positions 1. General Manager – Joe Bergquist 2. Operations Manager – Nick Ames 3. Driver Supervisor – Cory Mogen 4. Recreation Programs Manager – Vacant / Hiring in 2024 5. Driver Supervisor – Vacant / Hiring in 2024 6. Driver Supervisor – Vacant / Hiring in 2025 7. Driver Supervisor – Vacant / Hiring in 2025 or 2026 (dependent on revenue) 8. Custodian-Maintenance Worker – Hiring in 2025 2024 Estimated Salary Expense has been decreased slightly from the adopted budget to account for full-time staffing vacancies during the first half of the year. 2024 Estimated Commodities (Supplies) Commodities have all been increased by 3% from the adopted budget to account for the higher-than-expected inflation. Other significant increases in the estimated budget include office supplies/equipment, which has been increased due to copier leases expiring and replacing the current outdated machines. Newer larger models have been leased and a new wide format plotter printer has also been added. The new plotter will allow the Arenas to print its own advertising banners for dasher advertisements, in-ice advertisements, window signs, marketing posters, rafter banners, vehicle wraps, stickers, and other items needed that are currently being outsourced. It is expected to save thousands of dollars as well as create additional pro shop revenue by selling customized products and printing services for teams and user organizations. Operating supplies have been increased for purchasing new rental skates and a new heat press for decorating league, tournament, and pro-shop apparel. Building supplies are increased for projects and further user amenity improvements that are being performed by arena staff. Projects include concessions-pro-shop renovations, scoreboard replacements, landscaping improvements at both arenas, and other building/ equipment needs and repairs. 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. Total Employee Benefits-Other Expenses 84,328 72,562 66,623 98,678 83,616 177,172 139,937 Total Employee Salaries 339,458 261,299 308,954 391,450 468,829 599,863 604,315 Total Salary & Benefit Expenses 423,786 333,861 375,577 490,128 552,445 777,035 744,252 Percent of Revnue 35.7%43.0%33.8%34.7%34.3%43%41% - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2024 TOTAL SALARY EXPENSES -ESTIMATED BUDGET Page 44 of 165 17 2024 Estimated Other Charges & Services Estimated other charges and services in 2024 are adjusted 3% for inflation and insurance premiums have increased 30% due to additions and improvements to the facilities. Credit card charges are moved to new a GL account to reflect changes made last year after the original budget was completed. Additional fiscal management fees related to labor expenses for work on the city’s new financial and payroll systems that are being rolled out in 2024 are also included in the estimated budget. 2024 Estimated Contracted Expenses Estimated Contract Expenses have several estimated budget adjustments. Other contractual is dropping significantly due to the elimination of an outside cleaning service after the successful hiring of a part-time custodian. Equipment repair has increased for repairs needed to the Rink 2 Zamboni. Expenses also include approximately $50,000 of contract expense for the arena’s share of the new financial and payroll systems at the city. Approximately $18,000 of electric improvements and wiring has been added to accommodate the new video boards that LHA is purchasing and installing at both Ames and Hasse Arenas. 2024 Estimated Utility Expenses The original 2024 adopted budget used double digit increases experienced following the pandemic and at the start of the war in Ukraine. Utilities expenses have been adjusted down to reflect the most recent actual results and trends from over the past year. 2024 Estimated Interest & Debt Expenses Debt expenses have been adjusted slightly for the current changes. Debt service includes $12,250 for the arenas share of interest on the new Ames Parking Lot built in 2020, the annual payment of $63,460 that was added in 2023 towards the 8.1 million of debt service for the Energy Improvements Projects at Ames and Hasse Arenas in 2021. Lakeville Arenas’ total estimated interest and debt service for 2024 will be $75,710. 2024 Estimated Capital Expenses The annual transfer to the capital budget fund in 2024 will remain at $140,000 transferred for future capital expenses. The new estimated 2024 budget has an additional $10,000 added for purchasing a new enclosed trailer because the current exposed utility trailer needs significant repairs and is no longer adequate for transporting concessions inventory and other equipment to and from the arenas. 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. Total Commodities 49,382 36,304 71,727 88,202 122,182 125,135 165,046 Total Other Expenses 77,081 71,530 80,284 118,790 131,733 120,511 173,051 Total Contracted Expenses 157,464 105,004 126,804 172,043 145,565 154,795 178,373 Total Utility Expenses 274,523 242,566 262,583 343,064 309,123 385,431 323,332 TOTAL GENERAL EXPENSES 558,450 455,404 541,397 722,099 708,603 785,873 839,802 (50,000) 50,000 150,000 250,000 350,000 450,000 550,000 650,000 750,000 850,000 2024 OTHER OPERATING EXPENSES -ESTIMATED BUDGET Page 45 of 165 18 2024 Estimated Expenses Compared to Revenue 2024 Estimated Net Profit/(Loss) The 2024 estimated budget has been adjusted to reflect the most recent actual financial information. Lakeville Arenas is required to adopt a balanced budget annually as per Minnesota State Statute 412.711. Management budgets for a minimal margin with any surplus remaining in the general operating fund or transferred to the capital reserve fund. Over the past three years revenue has exceeded expectations from new or expanded revenue streams and those profits have remained in the general operating fund to recoup the losses seen during the pandemic in 2020. Any profits realized at the end of 2024 will again remain in the general operating. The estimated net earnings have been budgeted conservatively to a net zero to account for all possible scenarios but we are confident that we will once again exceed that margin with positive results. 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. Total Debt Interest & Expenses -3,353 12,142 14,125 76,335 76,960 75,710 Total Capital Expenses 145,229 150,359 161,000 141,125 186,961 140,000 150,000 Total Debt & Capital Expense 145,229 153,712 173,142 155,250 263,296 216,960 225,710 - 50,000 100,000 150,000 200,000 250,000 300,000 2024 TOTAL DEBT & CAPITAL EXPENSE -ESTIMATED BUDGET 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. Total Expenses 1,127,465 942,977 1,090,116 1,367,477 1,524,344 1,779,868 1,804,881 Total Operating Revenue 1,188,662 776,049 1,110,622 1,414,268 1,608,487 1,793,238 1,809,289 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2024 TOTAL EXPENSES to REVENUE -ESTIMATED BUDGET 2017 2018 2019 2020 2021 2022 2023 2024 Bgt.2024 Est. Net Income (Loss)24,876 (24,537)61,197 (166,928)20,506 46,791 84,143 13,370 91 Percent of Revnue 2%-2%5.1%-21.5%1.8%3.3%5.2%0.7%0.2% (160,000) (110,000) (60,000) (10,000) 40,000 90,000 140,000 2024 TOTAL NET PROFIT/LOSS-ESTIMATED BUDGET Page 46 of 165 19 2024 Capital Reserve Fund Estimate The purpose of the Capital Reserve Fund is to provide a financial framework for replacement of the arena infrastructure as it ages including, but not limited to, ice resurfacers, vehicles, HVAC equipment, dehumidification, refrigeration systems, and other major expenses not afforded in the annual operating budget. Delivery of the new Zamboni that was ordered in the spring of 2023 has been moved up to either fall or early winter. Therefore, the original adopted 2024 Capital Reserve Fund Budget will be amended to include the purchase of the new Zamboni in 2024 rather than 2025. Also added to the 2024 estimate and budget amendment is 120,000 for a skid steer and snow removal attachments and equipment needed for the new outdoor pavilion rink. Plows for the trucks will also be purchased and the combined equipment is expected to reduce or eliminate contacted snow plowing services by having staff performing the plowing. A new annual payment of $10,000 for naming rights for the new Hasse Outdoor Pavilion Rink is also expected and will be added to the capital reserve fund annually. 2017 2018 2019 2020 2021 2022 2023 2024 Budget 2024 Estimate Fund Balance Beginning of Year 458,898 514,313 501,313 562,510 395,582 416,088 462,881 547,025 547,025 Fund Balance End of Year 514,313 501,313 562,510 395,582 416,088 462,881 547,025 560,395 547,116 - 100,000 200,000 300,000 400,000 500,000 600,000 2024 OPERATING FUND BALANCE -ESTIMATED BUDGET 2017 2018 2019 2020 2021 2022 2023 2024 Bgt 2024 Est. Fund Balance January 1 360,341 336,042 332,503 216,960 300,920 260,366 362,410 362,410 442,463 Net increase/(decrease)(24,299)(3,539)(115,543)83,960 (40,554)102,044 80,053 143,937 (170,007) Fund Balance December 31 336,042 332,503 216,960 300,920 260,366 362,410 442,463 506,347 272,456 (200,000) (100,000) - 100,000 200,000 300,000 400,000 500,000 2024 CAPITAL RESERVE FUND BALANCE -ESTIMATED BUDGET Page 47 of 165 20 2024 ESTIMATED BUDGET AMENDED Proposed May 15, 2024 LAKEVILLE ARENAS 2023 2024 Adopted 2024 Amended Statement of Revenue & Expenses Actual Budget Change Budget Estimate OPERATING REVENUE Ice Rentals Ice Rental - LHA 487,536 583,853 (81,677) 502,175 Ice Rental - ISD 194 218,470 236,625 (4,762) 231,863 Ice Rental Other 442,215 554,206 8,959 563,165 Total Ice Rentals 1,148,221 1,374,683 (77,480) 1,297,203 Programing & Admissions Learn to Skate 103,346 95,708 16,146 111,854 Admissions-Public Skating 45,883 56,962 970 57,932 ISD 194 HS Game Gate Share 45,218 39,110 9,715 48,825 Arena Programming 30,775 31,123 21,991 53,114 Dry floor Rentals 10,237 9,762 (9,162) 600 Total Programs & Admissions 235,459 232,665 39,660 272,325 Welcome Center Sales Net Food & Beverage Sales 127,090 116,520 29,522 146,042 Net Pro Shop Product Sales 6,705 5,043 2,824 7,867 Skate Sharpening 4,363 9,103 (3,852) 5,251 Skate Rental 3,117 6,929 (3,790) 3,139 Total Welcome Center 141,275 137,595 24,704 162,299 Other Misc. Arena Revenues Games-Vending Machines 3,149 4,237 (890) 3,347 Advertising Sales / Other 50,205 42,601 6,612 49,213 Donations/Other Misc. 3,310 5,757 (2,522) 3,235 Interest on Investments 18,221 6,378 13,005 19,383 Change in FV of Investments 8,647 (10,678) 20,205 9,527 Total Other Arena Revenues 83,532 48,295 36,410 84,705 TOTAL OPERATING REVENUE 1,608,487 1,793,238 23,294 1,816,532 OPERATING EXPENDITURES PERSONNEL EXPENSES Employee Salary Expenses Salaries - Full Time 195,580 378,162 (50,936) 327,226 Salaries - Full Time - Overtime 22,356 13,687 (9,090) 4,597 Salaries - Part Time 250,893 208,014 38,916 246,930 Salaries - Part Time - Overtime - - 1,979 1,979 Page 48 of 165 21 LAKEVILLE ARENAS 2023 2024 Adopted 2024 Amended Statement of Revenue & Expenses Actual Budget Change Budget Estimate Salaries - Part Time/Temporary - - 36,159 36,159 Total Employee Salaries 468,829 599,863 17,028 616,890 Benefits & Other Expenses Pera (State Retirement Pension) 24,039 29,757 11,569 41,326 FICA 35,882 46,198 (811) 45,387 Hospitalization Insurance 4,580 47,220 (12,087) 35,133 Life and Disability 113 528 (358) 170 Long Term Disability 379 1,824 (1,096) 728 Workers Compensation Insurance 17,047 17,444 974 18,418 Unemployment Compensation 1,371 10,468 (10,468) - FSA Plan 44 480 (264) 216 Dental Insurance 161 5,136 (4,410) 726 Salary Contingency - 18,117 (18,117) - Total Benefits-Other Expenses 83,616 177,172 (35,068) 142,105 Total Personnel Expense 552,445 777,035 (18,040) 758,995 COMMODITIES Office Supplies / Equipment 3,792 3,877 6,915 10,792 Operating Supplies & Equipment 37,024 35,349 15,944 51,293 Motor Fuels 959 1,304 (131) 1,173 Cleaning Supplies / Equipment 9,928 11,929 (2,297) 9,632 Clothing 5,725 2,525 975 3,500 Chemicals (Condensing Towers) 7,191 6,060 6,349 12,409 Safety Supplies & Equipment 929 1,379 (892) 487 Equipment Parts & Supplies - 1,212 (1,212) - Building Repair Supplies & Equip. 45,830 32,325 17,761 50,086 Landscaping Materials & Equip. - 7,070 430 7,500 Signs (Ad Sales Sign Expenses) - 6,060 (6,060) - Small Tools/Equipment 10,336 11,615 (690) 10,925 Computer Supplies 468 4,430 2,818 7,248 Total Commodities 122,182 125,135 39,911 165,046 OTHER CHARGES & SERVICES Fiscal Management Fee 45,312 41,278 14,946 56,224 Bank Charges 210 17,639 (17,406) 233 Audit 7,300 6,948 1,052 8,000 Travel Expenses - 1,479 (1,479) - Use of Personal Auto - 712 (712) - Advertising & Marketing 335 - 345 345 Insurance 35,220 29,779 17,475 47,254 Postage & Shipping 19 - 20 20 Schools and Conferences 886 5,855 (1,041) 4,814 Misc. (Commissions-Donations) 297 4,279 2,924 7,203 Dues/Subscriptions 19,968 12,542 6,086 18,629 Credit Card Fees 22,186 - 22,264 22,264 Page 49 of 165 22 LAKEVILLE ARENAS 2023 2024 Adopted 2024 Amended Statement of Revenue & Expenses Actual Budget Change Budget Estimate Total Other Expenses 131,733 120,511 44,474 164,986 CONTRACT EXPENSES Other Contractual 29,353 30,618 (17,427) 13,191 Contract Auto Repair - 1,515 (1,515) - Equip. Repair and Maintenance 10,946 13,983 12,524 26,508 Building Repair and Maintenance 51,507 56,437 16,570 73,007 Contract Landscaping 225 - 5,232 5,232 Contract Cleaning - - - - Contract Data Processing 34,186 - 50,000 50,000 Snow Removal 19,348 52,242 (41,806) 10,436 Total Contracted Expenses 145,565 154,795 23,578 178,373 UTILITY EXPENSES Electric Service 193,803 236,541 (29,576) 206,965 Gas Service 74,496 115,208 (42,181) 73,027 Water 30,085 24,189 8,226 32,415 Waste Disposal 7,350 6,287 1,052 7,339 Telephone/IS 3,389 3,206 381 3,587 Total Utility Expenses 309,123 385,431 (62,099) 323,332 Gross Operating Expenses 1,261,048 1,562,908 27,824 1,590,731 Earnings before Int.-Debt-Capital 347,439 230,330 (4,529) 225,801 Interest and Debt Expenses Debt Service - 2020 Ames Parking 12,875 13,500 (1,250) 12,250 Debt Service - 2021 Energy Project 63,460 63,460 - 63,460 Debt Service - - - - Bad Debts - - - - Total Debt Interest & Expenses 76,335 76,960 (1,250) 75,710 Capital Expenses Capital Outlay Buildings 45,397 - - - Capital Outlay Machinery & Equip. - - 10,000 10,000 Capital Outlay Other - - - - Capital Outlay Computers 1,564 - - - Transfer to Capital Reserve Fund 140,000 140,000 (0) 140,000 Total Capital Expenses 186,961 140,000 10,000 150,000 Total Expenses 1,524,344 1,779,868 36,574 1,816,441 Net Income (Loss) 84,143 13,370 (13,279) 91 Fund Balance Beginning of Year 462,881 547,025 - 547,025 Fund Balance End of Year 547,025 560,395 (13,279) 547,116 Page 50 of 165 23 2024 ESTIMATED CAPITAL FUND BUDGET AMENDED Proposed May 15, 2024 LAKEVILLE ARENAS 2023 2024 2024 CAPITAL RESERVE FUND Actual Adopted Change Amended Revenues Transfers from Operating Fund 140,000 140,000 - 140,000 Other/Grants 250,000 - 10,000 10,000 Interest on investments 9,993 3,937 6,056 9,993 Total Revenues 399,993 143,937 16,056 159,993 Expenditures 2023 - Hasse Dashers 319,940 - - 2024 New Zamboni - - 210,000 210,000 2024 Skid Steer & Snow Removal - - 120,000 120,000 Total Expenditures 319,940 - 330,000 330,000 Fund Balance January 1 362,410 362,410 80,053 442,463 Net increase/(decrease) 80,053 143,937 (313,944) (170,007) Fund Balance December 31 442,463 506,347 (233,891) 272,456 Page 51 of 165 24 2025 BUDGET Proposed May 15, 2024 Page 52 of 165 25 2025 BUDGET PROPOSED The following is a summary with detail for the 2025 budget using the most recent actual results combined with forecasted future results based upon current trends, marketplace conditions, and planned activities. The 2025 budget includes the first full season of revenue for the new pavilion rink, new revenue for the spring/summer tournaments, and summer day camps. Forecasts for new rentals and program revenues are conservative, expenses are budgeted with a 3% increase across most categories. Full-time staffing is increased significantly for added workloads from the new pavilion rink, tournaments, camps, and other programs, however hiring for new positions will be phased in as revenue targets and goals are met or exceeded. 2025 BUDGET REVENUE 2025 Ice Rental Revenue 2025 ice rental revenue is expected to increase significantly from the opening of the new Hasse Pavilion Rink, launching of the new spring & summer tournaments, and summer camps. The budget reflects a conservative forecast with 400 new pavilion rink hours and 200 additional spring-summer tournament hours. As mentioned in the 2024 estimated budget summary, the 2024-2025 season will no longer see the originally budgeted ten-dollar increase. However, the 2025 summer rate and the 2025-2026 winter rate do have a five-dollar increase tentatively budgeted in 2025. Management is hopeful that revenue targets will continue to exceed expectations and allow for the five-dollar increase to be removed next year when developing the 2025 estimated budget amendment as was done this year for the increase originally budgeted for 2024-2025. Historically ice arenas in Minnesota have been dependent on ice rentals as the primary source of revenue to pay for operating expenses and new capital expenses, which can result in understaffing and maintenance shortfalls due to limited income. This has historically also been true for Lakeville Arenas as well, but as seen below the new revenue streams outside of ice sales that are being expanded or introduced by management has brought that dependency down to near 70%, of revenue compared to 80% or higher historically. This new revenue has allowed Lakeville Arenas to expand staffing to better maintain the facilities and serve its customers. In addition, the Arenas have also expanded and increased overall ice sales both in season and out of season, which is also providing extra revenue necessary to rehab or improve aging facilities and amenities. 2017 2018 2019 2020 2021 2022 2023 2024 Estimate 2025 Budget Ice Rental - LHA 485,325 438,390 429,757 370,475 483,260 477,840 487,536 502,175 545,610 Ice Rental - ISD 194 206,325 222,432 196,751 197,062 254,064 210,124 218,470 231,863 211,150 Ice Rental Other 271,389 253,187 287,498 61,172 228,408 402,052 442,215 563,165 658,850 Total Ice Rentals 963,039 914,009 914,006 628,709 965,732 1,090,016 1,148,221 1,297,203 1,415,610 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2025 ICE RENTAL REVENUE BUDGET Page 53 of 165 26 Ice Rentals 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Ice Rental - LHA 485,325 438,390 429,757 370,475 483,260 477,840 487,536 502,175 545,610 Ice Rental - ISD 194 206,325 222,432 196,751 197,062 254,064 210,124 218,470 231,863 211,150 Ice Rental Other 271,389 253,187 287,498 61,172 228,408 402,052 442,215 563,165 658,850 Total Ice Rentals 963,039 914,009 914,006 628,709 965,732 1,090,016 1,148,221 1,297,203 1,415,610 Percent of Revenue 82% 80% 77% 81% 87% 77% 71% 72% 72% Increase/Decrease over Prior Yr. (49,030) (3) (285,297) 337,023 124,284 58,205 148,982 118,407 Change -5% 0% -31% 54% 13% 5% 13% 9% 2025 Programming & Admissions Revenue Programming and admissions revenues include several areas that management has targeted for expanded or new revenue streams. Dry-floor revenues historically for indoor events have been eliminated due to the expansion of year-round ice at both areas. Outdoor events in the pavilion rink will result in a return for this revenue stream, however due to the unknown use and demand of it at this time we have chosen not to budget revenue during the first year of dry-floor rentals. Increases in Learn to Skate and admissions are budgeted based on current growth trends which are expected to continue again in 2025. Arena programming revenue is based upon prior year trending and budgeting conservatively due the first year of tournament and camp operations. However, it is expected to exceed the 2025 budget after a new programming manager is hired in 2024 and new summer day camps and spring & summer tournaments are planned and launched in 2025. 2017 2018 2019 2020 2021 2022 2023 2024 Est.2025 Bgt. Heritage Hours 270 295 300 326 310 363 372 375 375 ISD 194 Hours 688 714 673 486 1078 817 827 825 825 LHA Hours 1687 1548 1505 1367 2007 1970 1947 2025 2145 Other Hours 1485 1371 1634 1619 1223 1899 1961 2306 2706 Total Hours 4130 3928 4112 3798 4617 5049 5107 5531 6051 0 1000 2000 3000 4000 5000 6000 TOTAL ICE HOURS SOLD 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Dry floor Rentals 24,685 28,533 17,553 9,245 5,113 20,021 10,237 600 - ISD 194 HS Game Gate Share 41,750 52,038 37,339 27,608 14,749 43,950 45,218 48,825 48,825 Arena Programming -----17,996 30,775 53,114 76,670 Admissions-Public Skating 12,207 12,207 23,066 6,030 11,959 35,971 45,883 57,932 63,725 Learn to Skate 53,183 58,260 62,503 33,128 73,061 85,253 103,346 111,854 117,447 Total Programing & Admissions 131,825 151,038 140,461 76,011 104,882 203,191 235,459 272,325 306,667 - 50,000 100,000 150,000 200,000 250,000 300,000 2025 PROGRAMMING & ADMISSIONS REVENUE Page 54 of 165 27 Programing & Admissions 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Learn to Skate 53,183 58,260 62,503 33,128 73,061 85,253 103,346 111,854 117,447 Admissions-Public Skating 12,207 12,207 23,066 6,030 11,959 35,971 45,883 57,932 63,725 ISD 194 HS Game Gate Share 41,750 52,038 37,339 27,608 14,749 43,950 45,218 48,825 48,825 Arena Programming - - - - - 17,996 30,775 53,114 79,670 Dry floor Rentals 24,685 28,533 17,553 9,245 5,113 20,021 10,237 600 - Total Programs & Admissions 131,825 151,038 140,461 76,011 104,882 203,191 235,459 272,325 309,667 Percent of Revenue 11% 13% 12% 10% 9% 14% 15% 15% 16% Increase/Decrease over Prior Yr. 19,213 (10,577) (64,450) 28,871 98,309 32,268 36,866 37,343 Change 15% -7% -46% 38% 94% 16% 16% 14% 2025 Welcome Center Revenue Welcome center revenues are a historical revenue stream that management has targeted for significant expansion to help fund additional staffing needs. Revenues continue to exceed the budget’s expectations and currently the primary growth has been from concessions sales, which have increased nearly 400% over historical sales levels before the pandemic. Concessions are expected to grow another 15% in 2024 based on current year-to-date results and another 16% in 2025 but will likely exceed that with the added traffic from the pavilion rink, and new tournaments, leagues, and camp offerings. Pro-Shop revenues are budgeted conservatively based on previous results and trends and currently offers only a minimum variety of convenience items for sale. However, management does expect a growth period like concessions as new services and items will be added with the recent purchase of a heat press for printing apparel and a plotter printer which will be abl e to print stickers and decals for other custom products as well as vinyl banners for teams and organizations. Welcome Center Revenue 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Net Food & Beverage Sales 25,973 25,134 26,118 13,377 10,360 72,486 127,090 146,042 160,646 Net Pro Shop Product Sales - - - - - 2,535 6,705 7,867 8,654 Skate Sharpening 6,668 6,223 5,964 2,700 637 5,283 4,363 5,251 5,776 Skate Rental 7,422 8,324 8,554 3,570 2,808 5,217 3,117 3,139 3,296 Total Welcome Center 40,063 39,681 40,636 19,647 13,805 85,521 141,275 162,299 178,372 Percent of Revenue 3% 3% 3% 3% 1% 6% 9% 9% 9% Increase/Decrease over Prior Yr. (382) 955 (20,989) (5,842) 71,716 55,754 21,024 16,073 Change -1% 2% -52% -30% 519% 65% 15% 10% 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Skate Rental 7,422 8,324 8,554 3,570 2,808 5,217 3,117 3,139 3,296 Skate Sharpening 6,668 6,223 5,964 2,700 637 5,283 4,363 5,251 5,776 Net Pro Shop Product Sales -----2,535 6,705 7,867 8,654 Net Food & Beverage Sales 25,973 25,134 26,118 13,377 10,360 72,486 127,090 146,042 160,646 Total Welcome Center 40,063 39,681 40,636 19,647 13,805 85,521 141,275 162,299 178,372 - 30,000 60,000 90,000 120,000 150,000 180,000 2025 WELCOME CENTER REVENUE BUDGET Page 55 of 165 28 2025 Other Miscellaneous Revenue The primary source of miscellaneous revenue is from advertising sales, which has been estimated and budgeted based on 2023 actuals and the 2024 estimate. Because most of the current ads were sold at approximately the same time-period following the pandemic and the majority are 3-year agreements and set to expire at the end of 2024, we are not budging an increase at this time. However, management is confident that between new sales and expanded opportunities at the pavilion rink the current levels will be maintained in 2025 and most likely increased. Other Misc. Arena Revenues 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Games-Vending Machines 5,713 6,598 6,376 5,146 881 1,677 3,149 3,347 3,347 Advertising Sales / Other 32,094 29,052 22,718 4,966 5,673 39,147 50,205 49,213 49,213 Donations/Other Misc. 4,861 1,502 51,189 31,304 24,465 6,202 3,310 3,235 3,235 Interest on Investments - - - - - 4,317 18,221 19,383 19,383 Change in FV of Investments 2,197 5,485 13,276 10,266 (4,816) (15,802) 8,647 9,527 9,527 Total Other Arena Revenues 44,865 42,637 93,559 51,682 26,203 35,541 83,532 84,705 84,705 Percent of Revenue 4% 4% 8% 7% 2% 3% 5% 5% 4% Increase/Decrease over Prior Yr. (2,228) 50,922 (41,877) (25,479) 9,338 47,991 1,173 0 Change -5% 119% -45% -49% 36% 135% 1% 0% 2025 Total Operating Revenue Total operating revenue has increased by 52% since the pre-pandemic high in 2019 and 133% since the pandemic low in 2020. 2025 revenue is budgeted conservatively at 9% growth and should exceed it. 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Donations/Other Misc.4,861 1,502 51,189 31,304 24,465 6,202 3,310 3,235 3,235 Games-Vending Machines 5,713 6,598 6,376 5,146 881 1,677 3,149 3,347 3,347 Chg in FV of Investments 2,197 5,485 13,276 10,266 (4,816)(15,802)8,647 9,527 9,527 Interest on Investments -----4,317 18,221 19,383 19,383 Advertising Sales / Other 32,094 29,052 22,718 4,966 5,673 39,147 50,205 49,213 49,213 Total Other Arena Revenues 44,865 42,637 93,559 51,682 26,203 35,541 83,532 84,705 84,705 1 10,001 20,001 30,001 40,001 50,001 60,001 70,001 80,001 90,001 2025 OTHER MISCELLANEOUS REVENUE BUDGET 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Total Operating Revenue 1,179,7 1,147,3 1,188,6 776,049 1,110,6 1,414,2 1,608,4 1,816,5 1,988,3 Increase over prior yr.(32,427 41,297 (412,61 334,573 303,646 194,219 208,045 171,822 % Growth over prior yr.-3%4%-35%43%27%14%12%9% (500,000) - 500,000 1,000,000 1,500,000 2,000,000 2025 TOTAL OPERATING REVENUE BUDGET Page 56 of 165 29 2025 OPERATING EXPENDITURES 2025 LABOR EXPENSES Management will continue transitioning to a full-time staffing model as expanded revenue streams continue to grow, providing a more experienced and stable workforce needed for operating the expanded revenue business units. The 2025 budget includes filling the 2 vacant Driver Supervisor positions and adding a full-time Custodian Maintenance Worker. Full-time positions will be phased in as revenue goals are reached or exceeded. Full-time staffing for 2025 will be adjusted and updated as needed or during the 2025 estimate budgeting process. Long-term hiring goals and needs include a fulltime Office/Welcome Centers Manager and a fulltime Maintenance Manager / HVAC/Refrigeration Engineer. Arenas Full Time Position Goals 1. General Manager – Joe Bergquist 2. Operations Manager – Nick Ames 3. Driver Supervisor – Cory Mogen 4. Recreation Programs Manager – Vacant / Hiring in 2024 5. Driver Supervisor – Vacant / Hiring in 2024 6. Driver Supervisor – Vacant / Hiring in 2025 7. Driver Supervisor – Vacant / Hiring in 2025 or 2026 (dependent on revenue) 8. Custodian-Maintenance Worker – Vacant / Hiring in 2025 9. Office/Welcome Centers Manager – Hiring Goal 2026 or 2027 10. Maintenance Manager - HVAC/Refrigeration Engineer – Hiring Goal 2026 or 2027 PERSONNEL EXPENSES 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Employee Salary Expenses Salaries - Full Time 171,629 174,244 191,079 157,428 155,819 230,289 195,580 327,226 486,911 Salaries - Full Time - Overtime 30,539 - - - - 19,767 22,356 4,597 6,000 Salaries - Part Time 134,976 157,427 148,379 103,871 153,135 141,394 250,893 246,930 120,838 Salaries - Part Time - Overtime - 1,979 2,400 Salaries - Part Time/Temporary - 36,159 81,695 Total Employee Salaries 337,144 331,671 339,458 261,299 308,954 391,450 468,829 616,890 697,843 Percent of Revenue 29% 29% 29% 34% 28% 28% 29% 34% 36% Increase/Decrease over Prior Yr. (5,473) 7,787 (78,159) 47,655 82,496 77,379 148,061 80,953 Change -2% 2% -23% 18% 27% 20% 32% 13% 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Total Benefits-Other Expenses 81,827 84,662 84,328 72,562 66,623 98,678 83,616 142,105 215,924 Total Employee Salaries 337,144 331,671 339,458 261,299 308,954 391,450 468,829 616,890 697,843 Total Salary & Benefit Expenses 418,971 416,333 423,786 333,861 375,577 490,128 552,445 758,995 913,767 Percent of Revenue 36%36%36%43%34%35%34%42%47% (100,000) 100,000 300,000 500,000 700,000 900,000 2025 LABOR EXPENSES BUDGET Page 57 of 165 30 Benefits & Other Expenses 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Pera (State Retirement Pension) 17,932 15,984 14,348 18,205 17,635 23,986 24,039 41,326 51,844 FICA 22,534 24,484 25,162 19,509 23,625 29,912 35,882 45,387 52,881 Hospitalization Insurance 30,539 32,103 33,718 23,368 16,874 20,484 4,580 35,133 75,600 Life and Disability 2,293 569 99 96 151 138 113 170 420 Long Term Disability - - 383 324 300 457 379 728 1,260 Workers Compensation Insurance 7,415 7,233 8,762 9,380 6,693 11,846 17,047 18,418 22,060 Unemployment Compensation - 2,504 - 241 - 10,468 1,371 - - FSA Plan - - - - - 93 44 216 420 Dental Insurance 1,114 1,785 1,856 1,439 1,345 1,294 161 726 1,260 Salary Contingency - - - - - - - - 10,178 Total Benefits-Other Expenses 81,827 84,662 84,328 72,562 66,623 98,678 83,616 142,105 215,924 Percent of Revenue 7% 7% 7% 9% 6% 7% 5% 8% 11% Increase/Decrease over Prior Yr. 2,835 (334) (11,766) (5,939) 32,055 (15,062) 58,489 73,820 Change 3% 0% -14% -8% 48% -15% 70% 52% Total Personnel Expense 418,971 416,333 423,786 333,861 375,577 490,128 552,445 758,995 913,767 Percent of Revenue 36% 36% 36% 43% 34% 35% 34% 42% 47% Increase/Decrease over Prior Yr. (2,638) 7,453 (89,925) 41,716 114,551 62,317 206,550 154,773 Change -1% 2% -21% 12% 31% 13% 37% 20% 2025 TOTAL OTHER OPERATING EXPENSES 2025 COMMODITIES Commodity supplies for 2025 are currently budgeted to reflect the 2024 estimated amended budget with a 3% increase added across all expense accounts. Historically commodities have been 4-5 % of revenue, however they are now budgeted at 8-9 % to account for a significant increase in operating supplies related to new or expanded business revenue and increased and ongoing facility and repair or improvements now being performed by staff. COMMODITIES 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Office Supplies / Equipment 284 475 3,005 3,419 3,716 3,731 3,792 10,792 11,116 Operating Supplies & Equipment 10,764 19,493 15,475 10,572 19,958 31,460 37,024 51,293 52,832 Motor Fuels 1,201 345 565 223 463 872 959 1,173 1,208 2017 2018 2019 2020 2021 2022 2023 2024 Est.2025 Budget Total Contracted Expenses 113,393 95,829 157,464 105,004 126,804 172,043 145,565 176,393 132,576 Total Other Expenses 74,526 80,078 77,081 71,530 80,284 118,790 131,733 164,986 173,051 Total Commodities 45,567 50,568 49,382 36,304 71,727 88,202 122,182 165,046 169,997 Total Utility Expenses 260,667 288,463 274,523 242,566 262,583 343,064 309,123 323,332 363,846 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2025 OTHER OPERATING EXPENSES Page 58 of 165 31 Cleaning Supplies / Equipment 7,408 10,550 10,708 8,802 5,617 8,231 9,928 9,632 9,921 Clothing 2,363 1,871 2,473 - 4,851 36 5,725 3,500 3,605 Chemicals (Condensing Towers) - - - - - - 7,191 12,409 12,781 Safety Supplies & Equipment - - - 11,495 1,973 1,356 929 487 502 Equipment Parts & Supplies 4,267 3,409 2,688 541 2,549 758 - - - Building Repair Supplies & Equip. 18,389 12,120 14,012 952 20,284 32,562 45,830 50,086 51,589 Landscaping Materials & Equip. - - - - - - - 7,500 7,725 Small Tools/Equipment 891 2,305 305 260 5,432 4,957 10,336 10,925 11,253 Computer Supplies - - 151 40 6,884 4,239 468 7,248 7,465 Total Commodities 45,567 50,568 49,382 36,304 71,727 88,202 122,182 165,046 169,997 Percent of Revenue 4% 4% 4% 5% 6% 6% 8% 9% 9% Increase/Decrease over Prior Yr. 5,001 (1,186) (13,078) 35,422 16,475 33,980 42,864 4,951 Change 11% -2% -26% 98% 23% 39% 35% 3% 2025 OTHER CHARGES & SERVICES Other charges and services are budgeted to reflect the 2024 estimated amended budget proposed with a 3% increase added across all expense accounts, except for the Fiscal Agent Management fees. Fiscal management fees will be increased significantly due to the completed implementation of the new HR/payroll and financial systems and the new annual subscription and maintenance fees being charged by the city. OTHER CHARGES & SERVICES 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Fiscal Management Fee 32,292 33,000 33,792 34,500 34,896 36,588 45,312 56,224 61,027 Bank Charges 2,299 2,483 2,133 1,288 1,967 16,570 210 233 240 Audit 5,775 5,950 6,125 6,300 6,500 6,695 7,300 8,000 8,240 Use of Personal Auto - 335 230 12 - 122 - - - Advertising & Marketing 8,822 4,919 6,247 1,169 4,985 6,407 335 345 355 Insurance 19,322 19,942 19,151 19,792 19,335 25,134 35,220 47,254 48,672 Postage & Shipping - - 16 - - - 19 20 20 Schools and Conferences 241 1,966 - - - 662 886 4,814 4,958 Misc. (Commissions-Donations) - - - - - 11,925 297 7,203 7,419 Dues/Subscriptions 5,775 5,574 9,387 6,999 12,601 14,687 19,968 18,629 19,188 Credit Card Fees - 5,909 - - - - 22,186 22,264 22,932 Total Other Expenses 74,526 80,078 77,081 71,530 80,284 118,790 131,733 164,986 173,051 Percent of Revenue 6% 7% 6% 9% 7% 8% 8% 9% 9% Increase/Decrease over Prior Yr. 5,552 (2,997) (5,551) 8,754 38,506 12,943 33,253 8,066 Change 7% -4% -7% 12% 48% 11% 25% 5% 2025 CONTRACT EXPENSES Contract Expenses will be down significantly in 2025 from extra contract fees related to the arenas share of the new financial and payroll systems at the city in 2023 and 2024. Building repair and maintenance is budgeted to be down approximately $15,000 from the 2024 estimate budget and new video scoreboard installation. Snow removal is budgeted but will likely not be needed if Arenas staff are able to perform most of the plowing with the equipment purchased to plow and move snow on the outdoor rink and plows for the trucks. CONTRACT EXPENSES 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Other Contractual 16,483 12,575 10,939 8,838 20,880 59,029 29,353 13,191 13,587 Equip. Repair and Maintenance 8,551 7,643 3,402 12,873 15,464 17,059 10,946 26,508 27,303 Building Repair and Maintenance 74,262 60,184 122,114 72,231 72,912 73,561 51,507 73,007 65,348 Contract Landscaping 4,329 1,250 690 318 260 1,733 225 5,232 5,389 Contract Cleaning - - - - - - - - - Contract Data Processing - - - - - - 34,186 50,000 Snow Removal 9,768 14,177 20,319 10,744 17,288 20,661 19,348 10,436 28,139 Total Contracted Expenses 113,393 95,829 157,464 105,004 126,804 172,043 145,565 178,373 139,765 Percent of Revenue 10% 8% 13% 14% 11% 12% 9% 10% 7% Increase/Decrease over Prior Yr. (17,564) 61,635 (52,460) 21,800 45,239 (26,478) 32,808 (38,608) Change -15% 64% -33% 21% 36% -15% 23% -22% Page 59 of 165 32 2025 UTILITY EXPENSES Utility Expenses are budgeted with a 15% increase for electricity to account for added loads from increased ice use. The rest of the utilities have a 10% increase factored in to ensure any other additional loads to the facilities are covered in the budget. UTILITY EXPENSES 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Electric Service 189,161 213,062 187,768 171,312 179,093 212,123 193,803 206,965 238,010 Gas Service 43,098 43,017 57,458 41,714 56,885 95,835 74,496 73,027 80,330 Water 14,875 17,151 16,076 16,510 18,744 25,278 30,085 32,415 34,035 Waste Disposal 8,171 10,698 11,241 9,734 4,546 6,799 7,350 7,339 7,706 Telephone/IS 5,362 4,535 1,980 3,296 3,315 3,029 3,389 3,587 3,766 Total Utility Expenses 260,667 288,463 274,523 242,566 262,583 343,064 309,123 323,332 363,846 Percent of Revenue 22% 25% 23% 31% 24% 24% 19% 18% 19% Increase/Decrease over Prior Yr. 27,796 (13,940) (31,957) 20,017 80,481 (33,941) 14,209 40,514 Change 11% -5% -12% 8% 31% -10% 5% 13% 2025 TOTAL GROSS OPERATING EXPENSES 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Gross Operating Expenses 913,124 931,271 982,236 789,265 916,974 1,212,227 1,261,048 1,579,171 1,739,176 Percent of Revenue 77% 81% 83% 102% 83% 86% 78% 87% 89% Increase/Decrease over Prior Yr. 18,147 50,965 (192,971) 127,709 295,252 48,821 318,123 160,005 Change 2% 5% -20% 16% 32% 4% 25% 10% 2025 NET EARNINGS BEFORE INTEREST, DEBT & CAPITAL Earnings before Int.-Debt-Capital 266,668 216,094 206,426 (13,216) 193,648 202,041 347,439 230,118 224,553 Percent of Revenue 23% 19% 17% -2% 17% 14% 22% 13% 11% Increase/Decrease over Prior Yr. (50,574) (9,668) (219,642) 206,864 8,394 145,397 (117,321) (5,565) Change -19% -4% -106% -1565% 4% 72% -34% -2% 2025 INTEREST & DEBT EXPENSES No new interest or debt expenses are budgeted in 2025. Interest and Debt Expenses 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Debt Service - 2020 Ames Parking - - - - 12,142 14,125 12,875 12,250 12,250 Debt Service - 2021 Energy Project - - - - - - 63,460 63,460 63,460 Debt Service 88,626 88,626 - - - - - - - Bad Debts - - - 3,353 - - - - - Total Debt Interest & Expenses 88,626 88,626 - 3,353 12,142 14,125 76,335 75,710 75,710 Increase/Decrease over Prior Yr. 8% 8% 0% 0% 1% 1% 5% 4% 4% Change 0 (88,626) 3,353 8,789 1,983 62,210 (625) 0 Capital Expenses 0% -100% #DIV/0! 262% 16% 440% -1% 0% 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Total Debt Interest & Expenses 88,626 88,626 -3,353 12,142 14,125 76,335 75,710 75,710 Total Capital Expenses 153,166 152,005 145,229 150,359 161,000 141,125 186,961 150,000 140,000 Total Debt & Capital Expense 241,792 240,631 145,229 153,712 173,142 155,250 263,296 225,710 215,710 (30,000) 20,000 70,000 120,000 170,000 220,000 270,000 2025 INTEREST-DEBT & CAPITAL EXPENSES Page 60 of 165 33 2025 CAPITAL EXPENSES No new capital outlay expense is budgeted from the general fund for 2025. Capital Expenses 2017 2018 2019 2020 2021 2022 2023 2024 Est. 2025 Budget Capital Outlay Buildings - - 2,200 - 26,000 - 45,397 - - Capital Outlay Machinery & Equip. 11,166 2,005 13,029 15,853 - - - 10,000 - Capital Outlay Other - - - - - - - - - Capital Outlay Computers - - - 4,506 - 1,125 1,564 - - Transfer to Capital Reserve Fund 142,000 150,000 130,000 130,000 135,000 140,000 140,000 140,000 140,000 Total Capital Expenses 153,166 152,005 145,229 150,359 161,000 141,125 186,961 150,000 140,000 Increase/Decrease over Prior Yr. 13% 13% 12% 19% 14% 10% 12% 8% 7% Change (1,161) (6,776) 5,130 10,641 (19,875) 45,836 (36,961) (10,000) Total Expenses -1% -4% 4% 7% -12% 32% -20% -7% 2025 TOTAL REVENUE, EXPENDITURES & NET EARNINGS 2025 Net Profit/(Loss) Lakeville Arenas is required to adopt a balanced budget annually as per Minnesota State Statute 412.711. Management budgets for a minimal margin with any surplus remaining in the general operating fund or transferred to the capital reserve fund. The 2025 original budget net profit margin is budgeted conservatively due to unknown actual growth from expanded revenues and new business. Management is confident that the current margin set will be met or exceeded once again, provided there are no catastrophic changes to the economy and or the customer base of Lakeville Arenas. 2017 2018 2019 2020 2021 2022 2023 2024 Budget 2024 Est. 2025 Budget Total Operating Revenue 1,179,7 1,147,3 1,188,6 776,049 1,110,6 1,414,2 1,608,4 1,793,2 1,816,5 1,988,3 Total Expenses 1,154,9 1,171,9 1,127,4 942,977 1,090,1 1,367,4 1,524,3 1,779,8 1,816,4 1,976,1 - 500,000 1,000,000 1,500,000 2,000,000 REVENUE TO EXPENSES 2017 2018 2019 2020 2021 2022 2023 2024 Budget 2024 Est. 2025 Budget Net Income (Loss)24,876 (24,537)61,197 (166,928 20,506 46,791 84,143 13,370 91 12,217 24,876 (24,537) 61,197 20,506 46,791 84,143 13,370 91 12,217 (160,000) (130,000) (100,000) (70,000) (40,000) (10,000) 20,000 50,000 80,000 Net Income (Loss) Page 61 of 165 34 2025 General Operating Fund Balances 2025 Capital Reserve Fund Budget The purpose of the Capital Reserve Fund is to provide a financial framework for replacement of the arena infrastructure as it ages including, but not limited to, ice resurfacers, vehicles, HVAC equipment, dehumidification, refrigeration systems, and other major expenses not afforded in the annual operating budget. No capital reserve expenditures are budgeted for 2025 currently. 2017 2018 2019 2020 2021 2022 2023 2024 Est.2025 Budget Fund Balance Beginning of Year 458,898 514,313 459,237 520,434 353,506 416,088 462,881 547,025 547,116 Fund Balance End of Year 514,313 501,313 562,510 395,582 416,088 462,881 547,025 547,116 559,332 0 100,000 200,000 300,000 400,000 500,000 600,000 OPERATING FUND BALANCE 2023 2024 2025 Fund Balance January 1 362,410 442,463 272,456 Net increase/(decrease)80,053 (170,007)159,993 Fund Balance December 31 442,463 272,456 432,449 (300,000) (200,000) (100,000) - 100,000 200,000 300,000 400,000 500,000 CAPITAL RESERVE FUND BALANCE Page 62 of 165 35 2025 BUDGET Proposed May 15, 2024 LAKEVILLE ARENAS 2023 2024 2025 2026 2027 2028 2029 2030 Statement of Revenue & Expense Actual Estimate Budget Projected Projected Projected Projected Projected OPERATING REVENUE Ice Rentals Ice Rental - LHA 487,536 502,175 545,610 545,610 553,794 553,794 562,101 562,101 Ice Rental - ISD 194 218,470 231,863 211,150 211,150 214,317 214,317 217,532 217,532 Ice Rental Other 442,215 563,165 658,850 698,381 740,284 784,701 831,783 881,690 Total Ice Rentals 1,148,221 1,297,203 1,415,610 1,455,141 1,508,395 1,552,812 1,611,416 1,661,323 Programing & Admissions Learn to Skate 103,346 111,854 117,447 120,970 124,600 128,338 132,188 136,153 Admissions-Public Skating 45,883 57,932 63,725 65,637 67,606 69,634 71,723 73,875 ISD 194 HS Game Gate Share 45,218 48,825 48,825 50,290 51,798 53,352 54,953 56,602 Arena Programming 30,775 53,114 79,670 82,060 84,522 87,058 89,670 92,360 Dry floor Rentals 10,237 600 - - - - - - Total Programs & Admissions 235,459 272,325 309,667 318,957 328,526 338,382 348,533 358,989 Welcome Center Sales Net Food & Beverage Sales 127,090 146,042 160,646 165,465 170,429 175,542 180,808 186,233 Net Pro Shop Product Sales 6,705 7,867 8,654 8,913 9,181 9,456 9,740 10,032 Skate Sharpening 4,363 5,251 5,776 5,950 6,128 6,312 6,501 6,696 Skate Rental 3,117 3,139 3,296 3,395 3,497 3,602 3,710 3,821 Total Welcome Center 141,275 162,299 178,372 183,723 189,235 194,912 200,759 206,782 Other Misc. Arena Revenues Games-Vending Machines 3,149 3,347 3,347 3,447 3,551 3,657 3,767 3,880 Advertising Sales / Other 50,205 49,213 49,213 50,689 52,210 53,776 55,390 57,051 Donations/Other Misc. 3,310 3,235 3,235 3,332 3,432 3,535 3,641 3,750 Interest on Investments 18,221 19,383 19,383 19,964 20,563 21,180 21,816 22,470 Change in FV of Investments 8,647 9,527 9,527 9,813 10,107 10,410 10,723 11,044 Total Other Arena Revenues 83,532 84,705 84,705 87,246 89,864 92,559 95,336 98,196 Total Operating Revenue 1,608,487 1,816,532 1,988,354 2,045,068 2,116,020 2,178,665 2,256,045 2,325,291 2023 2024 Est. 2025 Budget PERSONNEL EXPENSES Employee Salary Expenses Salaries - Full Time 195,580 327,226 486,911 501,518 516,563 532,060 548,022 564,463 Salaries - Full Time - Overtime 22,356 4,597 6,000 6,180 6,365 6,556 6,753 6,956 Salaries - Part Time 250,893 246,930 120,838 124,463 128,197 132,043 136,004 140,084 Salaries - Part Time - Overtime - 1,979 2,400 2,472 2,546 2,623 2,701 2,782 Salaries - Part Time/Temporary - 36,159 81,695 84,146 86,670 89,270 91,948 94,707 Total Employee Salaries 468,829 616,890 697,843 718,779 740,342 762,552 785,429 808,992 Benefits & Other Expenses Pera (State Retirement Pension) 24,039 41,326 51,844 53,400 55,002 56,652 58,351 60,102 FICA 35,882 45,387 52,881 54,468 56,102 57,785 59,518 61,304 Page 63 of 165 36 LAKEVILLE ARENAS 2023 2024 2025 2026 2027 2028 2029 2030 Statement of Revenue & Expense Actual Estimate Budget Projected Projected Projected Projected Projected Hospitalization Insurance 4,580 35,133 75,600 77,868 80,204 82,610 85,088 87,641 Life and Disability 113 170 420 433 446 459 473 487 Long Term Disability 379 728 1,260 1,298 1,337 1,377 1,418 1,461 Workers Compensation Insurance 17,047 18,418 22,060 22,722 23,404 24,106 24,829 25,574 Unemployment Compensation 1,371 - - - - - - - FSA Plan 44 216 420 433 446 459 473 487 Dental Insurance 161 726 1,260 1,298 1,337 1,377 1,418 1,461 Salary Contingency - - 10,178 10,483 10,798 11,122 11,455 11,799 Total Benefits-Other Expenses 83,616 142,105 215,924 222,402 229,074 235,946 243,024 250,315 Total Personnel Expense 552,445 758,995 913,767 941,180 969,416 998,498 1,028,453 1,059,307 COMMODITIES Office Supplies / Equipment 3,792 10,792 11,116 11,449 11,793 12,146 12,511 12,886 Operating Supplies & Equipment 37,024 51,293 52,832 54,417 56,050 57,731 59,463 61,247 Motor Fuels 959 1,173 1,208 1,245 1,282 1,320 1,360 1,401 Cleaning Supplies / Equipment 9,928 9,632 9,921 10,219 10,525 10,841 11,166 11,501 Clothing 5,725 3,500 3,605 3,713 3,825 3,939 4,057 4,179 Chemicals (Condensing Towers) 7,191 12,409 12,781 13,165 13,560 13,966 14,385 14,817 Safety Supplies & Equipment 929 487 502 517 532 548 565 582 Building Repair Supplies & Equip. 45,830 50,086 51,589 53,137 54,731 56,373 58,064 59,806 Landscaping Materials & Equip. - 7,500 7,725 7,957 8,195 8,441 8,695 8,955 Small Tools/Equipment 10,336 10,925 11,253 11,590 11,938 12,296 12,665 13,045 Computer Supplies 468 7,248 7,465 7,689 7,920 8,157 8,402 8,654 Total Commodities 122,182 165,046 169,997 175,097 180,350 185,761 191,334 197,074 OTHER CHARGES & SERVICES Fiscal Management Fee 45,312 56,224 61,027 62,858 64,744 66,686 68,686 70,747 Bank Charges 210 233 240 247 255 262 270 278 Audit 7,300 8,000 8,240 8,487 8,742 9,004 9,274 9,552 Use of Personal Auto - - - - - - - - Advertising & Marketing 335 345 355 366 377 388 400 412 Insurance 35,220 47,254 48,672 50,132 51,636 53,185 54,780 56,424 Postage & Shipping 19 20 20 21 21 22 23 23 Schools and Conferences 886 4,814 4,958 5,107 5,260 5,418 5,580 5,748 Misc. (Commissions-Donations) 297 7,203 7,419 7,642 7,871 8,107 8,350 8,601 Dues/Subscriptions 19,968 18,629 19,188 19,763 20,356 20,967 21,596 22,244 Credit Card Fees 22,186 22,264 22,932 23,620 24,329 25,059 25,811 26,585 Total Other Expenses 131,733 164,986 173,051 178,243 183,590 189,098 194,771 200,614 CONTRACT EXPENSES Other Contractual 29,353 13,191 13,587 13,994 14,414 14,847 15,292 15,751 Equip. Repair and Maintenance 10,946 26,508 27,303 28,122 28,966 29,835 30,730 31,652 Building Repair and Maintenance 51,507 73,007 65,348 67,308 69,328 71,407 73,550 75,756 Contract Landscaping 225 5,232 5,389 5,550 5,717 5,888 6,065 6,247 Contract Cleaning - - - - - - - - Contract Data Processing 34,186 50,000 Snow Removal 19,348 10,436 28,139 28,983 29,853 30,748 31,671 32,621 Total Contracted Expenses 145,565 178,373 139,765 143,958 148,277 152,725 157,307 162,026 UTILITY EXPENSES Electric Service 193,803 206,965 238,010 245,150 252,505 260,080 267,882 275,919 Gas Service 74,496 73,027 80,330 82,739 85,222 87,778 90,412 93,124 Page 64 of 165 37 LAKEVILLE ARENAS 2023 2024 2025 2026 2027 2028 2029 2030 Statement of Revenue & Expense Actual Estimate Budget Projected Projected Projected Projected Projected Water 30,085 32,415 34,035 35,056 36,108 37,191 38,307 39,456 Waste Disposal 7,350 7,339 7,706 7,937 8,175 8,420 8,673 8,933 Telephone/IS 3,389 3,587 3,766 3,879 3,995 4,115 4,239 4,366 Total Utility Expenses 309,123 323,332 363,846 374,762 386,005 397,585 409,512 421,798 Gross Operating Expenses 1,261,048 1,590,731 1,760,428 1,813,241 1,867,638 1,923,667 1,981,377 2,040,818 Earnings before Int.-Debt-Capital 347,439 225,801 227,927 231,827 248,382 254,999 274,668 284,472 Interest and Debt Expenses Debt Service - 2020 Ames Parking 12,875 12,250 12,250 12,618 12,996 13,386 13,787 14,201 Debt Service - 2021 Energy Project 63,460 63,460 63,460 65,364 67,325 69,344 71,425 73,568 Debt Service - - - - - - - - Total Debt Interest & Expenses 76,335 75,710 75,710 77,981 80,321 82,730 85,212 87,769 Capital Expenses Capital Outlay Buildings 45,397 - - - - - - - Capital Outlay Machinery & Equip. - 10,000 - - - - - - Capital Outlay Computers 1,564 - - - - - - - Transfer to Capital Reserve Fund 140,000 140,000 140,000 144,200 148,526 152,982 157,571 162,298 Total Capital Expenses 186,961 150,000 140,000 144,200 148,526 152,982 157,571 162,298 Total Expenses 1,524,344 1,816,441 1,976,138 2,035,422 2,096,484 2,159,379 2,224,160 2,290,885 Net Income (Loss) 84,143 91 12,217 9,646 19,535 19,286 31,884 34,405 Fund Balance Beginning of Year 462,881 547,025 547,116 559,332 568,978 588,513 607,800 639,684 Fund Balance End of Year 547,025 547,116 559,332 568,978 588,513 607,800 639,684 674,090 Page 65 of 165 38 2024 ESTIMATED CAPITAL FUND BUDGET AMENDED Proposed May 15, 2024 LAKEVILLE ARENAS 2023 2024 2025 CAPITAL RESERVE FUND Actual Amended Budget Revenues Transfers from Operating Fund 140,000 140,000 140,000 Other/Grants 250,000 10,000 10,000 Interest on investments 9,993 9,993 9,993 Total Revenues 399,993 159,993 159,993 Expenditures 2023 - Hasse Dashers 319,940 - 2024 New Zamboni - 210,000 - 2024 Skid Steer & Snow Removal - 120,000 - Total Expenditures 319,940 330,000 - Fund Balance January 1 362,410 442,463 272,456 Net increase/(decrease) 80,053 (170,007) 159,993 Fund Balance December 31 442,463 272,456 432,449 Page 66 of 165 39 PRIME SEASON WINTER ICE RATES (Oct 1 - Mar 31)Fee With Tax Indoor Prime Ice Rental Rate (Hourly)$260.00 $281.13 Indoor Non-Prime Ice (School Days 5am-2pm) & (after 10pm)$160.00 $173.00 Indoor Fire Ice Sale = Last minute (varies-up to 30 days out)$160.00 $173.00 Outdoor Pavilion Rink Prime Ice Rental Rate (Hourly)$160.00 $173.00 Outdoor Pavilion Rink Non-Prime Ice (School Days 5am-2pm) & (after 10pm)$100.00 $108.13 Outdoor Pavilion Rink Fire Ice Sale = Last minute (varies-up to 30 days out)$100.00 $108.13 SHOULDER SEASON ICE RATES (Apr 1 - Sep 30)Fee With Tax Indoor Prime Ice Rental Rate (Hourly)$194.22 $210.00 Indoor Non-Prime Ice (After 10pm)$147.98 $160.00 Indoor Fire Ice Sale = Last minute (varies - up to 30 days out)$92.49 $100.00 Outdoor Pavilion Rink Dry-Floor Rental Rate (Hourly)$101.73 $110.00 Outdoor Pavilion Rink Fire Floor Sale = Last minute (varies-up to 30 days out)$69.36 $75.00 DRY-FLOOR FACILITY RENTALS (Mar 1 - Oct 31)Fee With Tax Outdoor Pavilion Rink Dry-Floor Rental Rate (Hourly)$101.73 $110.00 Outdoor Pavilion Rink Fire Floor Sale = Last minute (varies-up to 30 days out)$69.36 $75.00 Daily Facility Rental (24hr period)$1,202.31 $1,300.00 Food & Beverage Commission Fee 15% - Merchandise Sales Commission Fee 10% - Paid Attendance Commission Fee 10% - Table Rentals (Each)$9.25 $10.00 Chair Rentals (Each)$1.85 $2.00 Scissor Lift Per Day (Waiver Required)$184.97 $200.00 Manual Pallet Jack Per Day $18.50 $20.00 Dollies & Push Carts Per Day $9.25 $10.00 PUBLIC ACTIVITIES (Rates Include Taxes)Fee With Tax Public Open Indoor Skating (Cost per person - tax included)$9.25 $10.00 Public Open Indoor Hockey/Stick & Puck (Cost per person - tax included)$9.25 $10.00 Public Open Outdoor Skating/Hockey/Stick & Puck (Cost per person - tax included)$4.62 $5.00 Freestyle - Figure Skating Practice (Includes skater & instructor)$18.50 $20.00 Learn to Skate Lessons (Cost per daily session)$12.95 $14.00 OTHER FEES Fee With Tax Skate Rental (tax included)$4.62 $5.00 Skate Sharpening (tax included)$9.25 $10.00 Large Meeting Room Rentals (Per Hour)$32.37 $35.00 Open Skate Birthday Party Room = 2hrs $46.24 $50.00 Birthday Party Prime Ice Rental (includes ice, free skate rentals, meeting room)$263.58 $285.00 Birthday Party Shoulder Season Ice Rental (includes ice, free skate rentals, meeting room)$194.22 $210.00 (Side) Glass Breakage Fee (Does not apply to glass behind nets meant for shooting at)$500.00 $540.63 Event Cleaning Fees (HS Games, Tournaments, Special Events (Flat Fee)$300.00 $324.38 LR Cleaning/Damage Fee (Minimum charge, additional charges may apply)$25.00 $27.03 2024-2025 LAKEVILLE ARENAS BOARD APPROVED FEES Page 67 of 165 40 Paid Annually Paid Upfront Dasher Board Ads - 3yr agreements, 32"h x 96"w (Signage & installation included, no design)P aid Annually P aid Upfront Lakeview Bank Rink (Ames) & Hasse Indoor Rink (Bleacher Facing Ads)$1,200.00 $1,020.00 Lakeview Bank Rink (Ames) & Hasse Indoor Rink (Bleacher Viewable End Boards)$800.00 $680.00 LHA Rink 2 (Ames) & Hasse Pavilion Rink (Bleacher Facing Ads)$800.00 $680.00 LHA Rink 2 (Ames) & Hasse Pavilion Rink (Bleacher Viewable End Boards)$500.00 $425.00 Dasher Glass Ads - 3yr agreements, 72"h x486"w (Signage & installation included, no design)P aid Annually P aid Upfront Lakeview Bank Rink (Ames) & Hasse Indoor Rink (Bleacher Facing Ads)$800.00 $680.00 Lakeview Bank Rink (Ames) & Hasse Indoor Rink (Bleacher Viewable End Boards)$600.00 $510.00 LHA Rink 2 (Ames) & Hasse Pavilion Rink (Bleacher Facing Ads)$400.00 $340.00 LHA Rink 2 (Ames) & Hasse Pavilion Rink (Bleacher Viewable End Boards)$250.00 $212.50 Jumbo Wall Signs - 5yr agreements, 72"h x 72"w (Signage & installation included, no design)P aid Annually P aid Upfront Lakeview Bank Rink (Ames) & Hasse Indoor Rink (Bleacher Facing Ads)$2,400.00 $2,040.00 Lakeview Bank Rink (Ames) & Hasse Indoor Rink (Bleacher Viewable Ends of Rink)$1,200.00 $1,020.00 Ames LHA Rink 2 (Bleacher Facing Ads)$800.00 $680.00 Pavilion Rink Winds Screens (96' x 96") 2 sided facing bleachers and soccer fields $2,500.00 $2,125.00 Pavilion Rink Winds Screens (96' x 96") 1 sided End of Rinks & above bleachers $1,500.00 $1,275.00 Zamboni Sponsors - 5yr agreements (Signage design, production, & installation extra)P aid Annually P aid Upfront Lakeview Bank Rink (Ames) & Hasse Indoor Rink $3,000.00 $2,550.00 LHA Rink 2 & Pavilion Rink $2,400.00 $2,040.00 Scoreboard Sponsors - 5yr agreements (Signage design, production, & installation extra)P aid Annually P aid Upfront Lakeview Bank Rink (Ames) & Hasse Indoor Rink $2,500.00 $2,125.00 LHA Rink 2 & Pavilion Rink $1,500.00 $1,275.00 In Ice Advertisements - 3yr agreements (Signage design, production, & installation extra)P aid Annually P aid Upfront Lakeview Bank Rink (Ames) & Hasse Indoor Rink $2,500.00 $2,125.00 LHA Rink 2 & Pavilion Rink $1,500.00 $1,275.00 Player Benches- 3yr agreements (Signage design, production, & installation extra)P aid Annually P aid Upfront Lakeview Bank Rink (Ames) & Hasse Indoor Rink $2,500.00 $2,125.00 LHA Rink 2 & Pavilion Rink $1,500.00 $1,275.00 Bleacher Stairs- 3yr agreements (Signage design, production, & installation extra)P aid Annually P aid Upfront Lakeview Bank Rink (Ames) & Hasse Indoor Rink $2,500.00 $2,125.00 Hasse Elevator $2,500.00 $2,125.00 Visit Lakeville Lobby Restaurant & Lodging Map with QR Code Ads - 3yr. Agreement Ames & Hasse Lobby Maps with location ads and QR Code $500.00 $425.00 ADVERTISING/SPONSORSHIP RATES (3-5 Year Agreements) 2024-2025 LAKEVILLE ARENAS BOARD APPROVED ADVERTISING FEES COST PER YEAR Page 68 of 165 41 Arena Debt The Hasse Arena construction was originally financed with a Lease Revenue Bond issued by the Lakeville Housing and Redevelopment Authority in 2006. The debt is being repaid with property taxes levied by the City of Lakeville and Independent School District 194. The 2006 bonds were advance refunded by HRA Lease Revenue Refunding Bonds, Series 2016A. The HRA2016A debt was refunded in April 2022. See details below. In June 2020, the Lakeville City Council authorized the issuance of debt (approximately $770,000) for the Ames Arena parking lot improvements. The competitive sale took place on July 20 and closed on August 13. The bonds were issued with a premium of $145,777 which were used to reduce the amount of debt issued to $620,000. True interest cost was 0.83%. The debt principal will be paid by contributions from the Lakeville Hockey Association (LHA) and the Heritage Figure Skating Club (HFSC). The interest will be paid by Lakeville Arenas. Staff will be calculating an allocation of the premium so LHA and HFSC will be paying the par plus premium. On November 16, 2020, the Lakeville City Council authorized the issuance of debt (approximately $8 million) to fund the APEX energy savings improvement projects at both the Hasse and Ames Arenas. The competitive sale took place on January 19, 2021 and closed on February 16, 2021. The bonds were issued with a premium of $313,284 which was used to reduce the amount of debt issued to $7,770,000. True interest cost was 1.48%. The debt will be repaid using property taxes and revenues received from Independent School District #194 per a Joint Powers Agreement approved in August 2020. Per the JPA the debt and debt- related costs are paid 50/50 by the City and ISD#194. On February 7, 2022, the City Council authorized the issuance of Taxable General Obligation Bonds, Series 2022B, to refund the HRA Lease Revenue Refunding Bonds, Series 2016A (noted above) and provide funding for constructing a new outdoor rink at the Hasse Arena. The sale of the bonds was held on March 7, 2022, and closed on April 5, 2022. True interest cost was 2.69%. The refunding resulted in savings of approximately $130,000 over the term of the bonds. An amended and restated joint powers agreement to address the payment of the refunding portion of the 2022B bonds was approved by ISD#194 and the City of Lakeville in February 2022. Agreements are finalized with Lakeville Hockey Association (LHA) and Heritage Figure Staking Club (HFSC) for additional contributions to be used for debt repayment of the bonds issued for the new outdoor rink. Conclusion We are confident that we are well positioned to implement the 202 5 budget as proposed and have alternate plans in place for any unforeseen circumstances that could arise and affect the outcome of the budget in a negative manner. We have expected increases to revenues from the addition of tournaments and camp activities. Additional events for ice rentals on the outdoor rink have been budgeted conservatively due to the difficulty in forecasting new programs without historical experience or data. Therefore, we do expect the net revenue to be higher than currently proposed and will update it next year during the 2025 amended budget estimate. The proposed operating budget is consistent with the purpose of the Joint Powers Agreement to “…operate and manage the Arena Complex in the best interests of the community.” The organization will continue its efforts to undertake entrepreneurial endeavors to maximize the return on public investment. Respectfully submitted, Joe Bergquist Arenas General Manager Page 69 of 165 Date: 6/3/2024 Renewal of Liquor Licenses 2024 Proposed Action Staff recommends adoption of the following motion: Move to grant on-sale liquor, club liquor, wine, 3.2% malt liquor, on-sale brewpub, off-sale brewpub, taproom, and small brewer off-sale malt liquor licenses effective July 1, 2024, through June 30, 2025 for entities and licenses identified in the staff report, subject to providing the required certificate of insurance. Overview All liquor licenses expire on June 30th. In April, renewal application packets and invoices were mailed to each license holder. The applications were reviewed, and a spreadsheet documenting pertinent information is attached. All applicants indicated that real estate taxes, assessments, or other financial claims of the City or State have been paid on their property. Several license holders are working with their insurance agents to finalize liquor liability coverage for the 2024-2025 renewal period. Any licenses with unresolved issues will be held until everything is in order. Supporting Information 1. Renewal Spreadsheet 24-25 Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: A Sense of Community and Belonging Report Completed by: Ann Orlofsky, City Clerk Page 70 of 165 LIQUOR LICENSES 2024 LICENSEE LICENSE TYPE FEE LIQUOR LIABILITY WORK COMP TAXES PAID SALES TAX REPORT CATERING PERMIT PATIO 2 AM CLOSING GAMBLING ANGRY INCH BREWING TAPROOM BREWER 300 50 YES YES YES N/A NO YES NO NO B-52 BURGERS & BREW LIQUOR 7200 YES YES YES N/A YES YES NO LHA BABE’S SPORTSBAR LIQUOR 7200 YES YES YES N/A NO YES YES LFA BALDY’S BBQ LIQUOR 6450 YES YES YES YES NO YES YES LFA BALDY’S TAILGATE BAR LIQUOR 7200 YES YES YES YES YES LFA BARLEY & VINE LIQUOR 7200 YES YES YES N/A NO YES NO NO BOWLERO LIQUOR 7200 YES YES YES N/A NO NO YES NO BRACKETT’S CROSSING LIQUOR 7200 YES YES YES N/A NO YES NO NO BUFFALO WILD WINGS LIQUOR 7200 YES YES YES N/A NO YES NO LFA CARBONE’S LIQUOR 7200 YES YES YES N/A NO YES NO LIONS CHART HOUSE LIQUOR 6450 YES YES YES N/A YES NO LHA CRACKER BARREL BEER/WINE 1100 YES YES YES - CRYSTAL LAKE GOLF LIQUOR 6450 YES YES YES YES YES YES NO NO DAKOTA CURLING CLUB 700 YES YES YES N/A - EL PARIAN MEXICAN LIQUOR 7200 YES YES YES N/A NO YES YES NO EMAGINE THEATER LIQUOR 6450 YES YES YES YES NO NO NO NO GOODFELLAS LIQUOR 7200 YES YES N/A NO TEMP NO LHA GREEN MILL LIQUOR 7200 YES YES YES N/A YES YES NO LHA HARRY’S SCRATCH KITCHEN LIQUOR 7200 YES YES YES N/A YES YES NO LS FOOTBALL HY-VEE MARKET LIQUOR 7200 YES YES YES N/A YES YES NO NO JOY’S THAI CUISINE BEER/WINE 1100 YES N/A NO NO NO NO LAKEVILLE BREWING LIQUOR BREWER 7200 50 YES YES YES N/A YES YES NO VFW POST 210 LAKEVILLE LINKS LIQUOR 7200 YES YES YES NO NO NO NO LBC ON THE LAKE Wine/Beer 1100 Yes Yes Yes N/A Yes Yes NO NO LIFETIME FITNESS BEER/WINE 1100 YES YES YES N/A NO YES NO NO MI PUEBLO MEXICAN LIQUOR 6450 YES YES NO YES NO NO NORTHERN TAP HOUSE LIQUOR 7200 YES YES YES N/A NO YES NO LHA OLE PIPER LIQUOR 7200 YES YES YES N/A NO NO NO LHA Page 71 of 165 LIQUOR LICENSES 2024 PORTER HOUSE LIQUOR 7200 YES YES YES N/A NO YES NO NO RED’S SAVOY PIZZA BEER/WINE 1100 YES YES YES RUDY’S REDEYE GRILL LIQUOR 7200 YES YES YES N/A NO YES NO NO SAKURA SUSHI BEER 300 YES YES YES N/A NO NO NO NO SAWA JAPAN BEER/WINE 1100 YES YES YES N/A NO NO NO NO TERESA’S MEXICAN LIQUOR 7200 YES YES YES N/A NO YES NO NO THE BETTER HALF LIQUOR 6450 YES YES YES N/A NO NO NO LIONS LICENSEE LICENSE TYPE FEE LIQUOR LIABILITY WORK COMP TAXES PAID SALES TAX REPORT CATERER PERMIT PATIO 2 AM CLOSING GAMBLING HOLIDAY 3821 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A HY-VEE GROCERY 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A KWIK TRIP 343 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A KWIK TRIP 692 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A KWIK TRIP 694 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A SPEEDWAY 4169 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A SPEEDWAY 4189 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A SPEEDWAY 4337 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A SPEEDWAY 4490 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A SPEEDWAY 4528 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A SPEEDWAY 4768 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A CUB FOODS 1598 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A CUB FOODS 1656 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A CUB FOODS 1657 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A TARGET 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A WALMART 3.2 BEER 300 YES YES YES N/A N/A N/A N/A N/A LICENSEE LICENSE TYPE FEE LIQUOR LIABILITY WORK COMP TAXES PAID SALES TAX REPORT CATERER PERMIT PATIO 2 AM CLOSING GAMBLING BOARD & BRUSH CDPBL 300 YES YES YES N/A N/A N/A N/A N/A THE BONUS ROOM CDPBL 300 YES YES YES N/A N/A N/A N/A N/A Page 72 of 165 LIQUOR LICENSES 2024 FINAL FINAL FINAL LLC CDPBL 300 YES YES YES N/A N/A N/A N/A N/A Page 73 of 165 Date: 6/3/2024 Contract for Installation of Downtown Parking Lot Lighting Proposed Action Staff recommends adoption of the following motion: Motion to approve contract with Helm Electric to install recently purchased lighting equipment for downtown parking lot lights and Market Plaza. Overview The city-owned downtown parking lots and Market Square pole lights are deteriorated and need replacement. Several lights are not working, creating dark spaces that pose a safety risk for the public. Many acrylic lenses are broken on several fixtures, allowing for rain, snow, and debris to collect in the fixtures. The City Council approved the purchase of downtown parking lot light equipment at the February 20, 2024 City Council meeting. Staff received two electrical contractors' service rate quotes to install the lighting equipment. Helm Electric submitted the lowest quote. Staff recommends Helm Electric for the installation and replacement of parking lot lighting in the downtown, based on the attached fee schedule included in the contract. Supporting Information 1. TM Downtown Lighting_Helm 2024 v.2 2. Helm Service Rates 2024 3. Manor Service Rates 2024 Financial Impact: Not to exceed $20,000.00. Budgeted: No Source: Streetlight Operating Fund 7575.6280 Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Tom Breeggemann, Facility Supervisor Page 74 of 165 1 205418v1 FORM OF AGREEMENT BETWEEN CITY OF LAKEVILLE AND CONTRACTOR FOR NON-BID CONSTRUCTION CONTRACT THIS AGREEMENT made this 3rd day of June, 2024, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation (“Owner” or “City”) and HELM ELECTRIC INC., a Minnesota corporation (“Contractor”). Owner and Contractor, in consideration of the mutual covenants set forth herein, agree as follows: 1. 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 Agreement. B. Contractor’s Proposal dated 1/01/24-12/31/24 Exhibit A. C. Area Map Exhibit B. In the event of a conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts. Contract Document “A” has the first priority and Contract Document “C” has the last priority. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall install “Owner” provided lighting located on City properties and shared parking lots outlined in Contract Document “C” (Exhibit B). The Contractor shall provide the services, and perform the work in accordance with the Contract Documents. Contractor shall not begin any work until the City has received the signed contract and has reviewed and approved the insurance certificates. Contractor shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a contractor under similar circumstances. City shall not be responsible for discovering deficiencies in the accuracy of Contractor’s services. This contract may be terminated by the City at any time. 3. CONTRACT PRICE. Owner shall pay Contractor for completion of the Work, in accordance with the Contractor’s Proposal. Contractor is to invoice City per job location not to exceed $20,000 per location without approval from Facility Supervisor. Additional work performed without the City’s approval will not entitle Contractor to an increase in the Contract Price or an extension of the Contract Time. 4. PAYMENT PROCEDURES. A. Contractor shall submit Applications for Payment. Applications for Payment will be processed by the Facility Supervisor. All of the Contractor’s work and labor shall be subject to the inspection and approval of the Facility Supervisor. If any materials or labor are rejected by the Facility Supervisor as defective or unsuitable, then the materials shall be removed and replaced with other approved materials and the labor shall be done to the satisfaction Page 75 of 165 2 205418v1 and approval of the Facility Supervisor at the Contractor’s sole cost and expense. B. Progress Payments; Retainage. City shall make 95% progress payments on account of the Contract Price on the basis of Contractor’s Applications for Payment during performance of the Work or the Contractor shall have the options regarding retaining in accordance with Minnesota Statues 15.71 and 15.74. C. Payments to Subcontractors. (1) Prompt Payment to Subcontractors. Pursuant to Minn. Stat. § 471.25, Subd. 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor’s receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1 ½ percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. (2) Form IC-134 (attached) required from general contractor. Minn. Stat. § 290.92 requires that the City of Lakeville obtain a Withholding Affidavit for Contractors, Form IC-134, before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. D. Final Payment. Upon final completion of the Work, Owner shall pay the remainder of the Contract Price as recommended by the Facility Supervisor. Final completion of the Work, including final restoration and establishment of permanent cover (“Restoration”), occurs upon completion of all work under the Contract Documents as determined by the Facility Supervisor. 5. COMPLETION DATE. All Work must be completed by September 27th 2024. 6. CONTRACTOR’S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. Page 76 of 165 3 205418v1 C. Contractor is familiar with and is satisfied as to all federal, state, and local laws and regulations that may affect cost, progress, and performance of the Work. D. Contractor has carefully studied all: (1) reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in the General Conditions and (2) reports and drawings of a Hazardous Environmental Condition, if any, at the site. E. Contractor has obtained and carefully studied (or assumes responsibility for doing so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and Underground Facilities) at or contiguous to the Site which may affect cost, progress, or performance of the Work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor, including any specific means, methods, techniques, sequences, and procedures of construction expressly required by the Bidding Documents, and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Documents, and all additional examinations, investigations, explorations, tests, studies, and data with the Contract Documents. I. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. J. Subcontracts: (1) Unless otherwise specified in the Contract Documents, the Contractor shall, upon receipt of the executed Contract Documents, submit in writing to the Owner the names of the Subcontractors proposed for Page 77 of 165 4 205418v1 the work. Subcontractors may not be changed except at the request or with the consent of the Owner. (2) The Contractor is responsible to the Owner for the acts and omissions of the Contractor's subcontractors, and of their direct and indirect employees, to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the Owner and any subcontractor. (4) The Contractor shall bind every subcontractor by the terms of the Contract Documents. 7. WORKER’S COMPENSATION. The Contractor shall obtain and maintain for the duration of this Contract, statutory Worker’s Compensation Insurance and Employer’s Liability Insurance as required under the laws of the State of Minnesota. 8. INSURANCE. Prior to the start of the project, Contractor shall furnish to the City a certificate of insurance showing proof of the required insurance required under this Paragraph. Contractor shall take out and maintain or cause to be taken out and maintained until six (6) months after the City has accepted the public improvements, such insurance as shall protect Contractor and the City for work covered by the Contract including workers’ compensation claims and property damage, bodily and personal injury which may arise from operations under this Contract, whether such operations are by Contractor or anyone directly or indirectly employed by either of them. The minimum amounts of insurance shall be as follows: Commercial General Liability (or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile Liability $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Including Owned, Hired & Non-Owned Automobiles Workers Compensation Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Employer’s Liability with minimum limits are as follows: $500,000 – Bodily Injury by Disease per employee Page 78 of 165 5 205418v1 $500,000 – Bodily Injury by Disease aggregate $500,000 – Bodily Injury by Accident The Contractor’s insurance must be “Primary and Non-Contributory”. All insurance policies (or riders) required by this Contract shall be (i) taken out by and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall name the City, its employees and agents as additional insureds (CGL and umbrella only) by endorsement which shall be filed with the City. A copy of the endorsement must be submitted with the certificate of insurance. Contractor’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, or ten (10) days’ notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by this Contract. 9. WARRANTY. The Contractor warrants all public utility work to be performed by it pursuant to this Agreement against poor material and faulty workmanship. The warranty period is one year after utilities are accepted by the City. The Contractor shall be held responsible for any and all defects in workmanship and materials which may develop in any part of the contracted service, and upon proper notification by the City shall immediately replace, without cost to the City, any such faulty work. 10. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of Contractor’s negligence or its performance or failure to perform its obligations under this Contract. Contractor’s indemnification obligation shall apply to subcontractor(s), or anyone directly or indirectly employed or hired by Contractor, or anyone for whose acts Contractor may be liable. Contractor agrees this indemnity obligation shall survive the completion or termination of this Contract. 11. PERFORMANCE AND PAYMENT BONDS. Performance and Payment Bonds are not required. 12. MISCELLANEOUS. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. Owner and Contractor each binds itself, its partners, successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. Page 79 of 165 6 205418v1 C. Any provision or part of the Contract Documents held to be void or unenforceable under any law or regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon Owner and Contractor, who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. D. Data Practices/Records. (1) All data created, collected, received, maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. E. In providing services hereunder, Contractor shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. F. Assignment. Neither party may assign, sublet, or transfer any interest or obligation in this Contract without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. G. Waiver. In the particular event that either party shall at any time or times waive any breach of this Contract by the other, such waiver shall not constitute a waiver of any other or any succeeding breach of this Contract by either party, whether of the same or any other covenant, condition or obligation. H. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Contract. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Dakota County. I. Severability. If any provision, term or condition of this Contract is found to be or become unenforceable or invalid, it shall not affect the remaining provisions, terms and conditions of this Contract, unless such invalid or unenforceable provision, term or condition renders this Contract impossible to perform. Such remaining terms and conditions of the Contract shall continue in full force and effect and shall continue to operate as the parties’ entire contract. J. Entire Agreement. This Contract represents the entire agreement of the parties and is a final, complete and all-inclusive statement of the terms thereof, and supersedes and terminates any prior agreement(s), Page 80 of 165 7 205418v1 understandings or written or verbal representations made between the parties with respect thereto. K. If the work is delayed or the sequencing of work is altered because of the action or inaction of the Owner, the Contractor shall be allowed a time extension to complete the work but shall not be entitled to any other compensation. OWNER: CONTRACTOR: CITY OF LAKEVILLE Helm Electric Inc BY: BY: Richard Martinson Luke M. Hellier, Mayor Its: President DATE: DATE: 5-22-24 AND Ann Orlofsky, City Clerk DATE: Page 81 of 165 Electric Wiring Proposal Exhibit A 22008 Canton Ct Farmington MN 55024 952-461-2460 Proposal Submitted To: Phone Job Name Date 1-01-24 to 12-31-24 Specifications of Job Labor Rate as follows Straight Time 7:00AM - 3:30PM Mon-Fri $135.00 per/hr Time and Half after 8 hours worked or after 3:30PM Mon-Fri $202.50 per/hr Double Time after 10 hours worked, Sat, Sun, Holidays $270.00 per/hr Emergency response time 2hr Service calls non-emergency to be completed in 5 business days Travel Charge included in hourly rate Truck Charges included in hourly rate 15% Mark - up on all Material used No Lift Charges unless specialty lift is needed Due to global shortages on materials throughout our industry Helm Electric Inc. will not be held liable for delays beyond our control. In some cases, alternative solutions may be available for additional costs. Due to unstable pricing from our Venders, material cost will be held for 30 days from bid date. Any price increase may be added to the contract. Total payment due 30 days from invoice date. Helm Electric Inc may charge interest on late payments. Acceptance of Proposal: The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. To accept this proposal sign and date this copy. Date of Acceptance: Signature: Page 82 of 165 Exhibit B Page 83 of 165 Electric Wiring Proposal 22008 Canton Ct Farmington MN 55024 952-461-2460 Proposal Submitted To: Phone Job Name Date 1-01-24 to 12-31-24 Specifications of Job Labor Rate as follows Straight Time 7:00AM - 3:30PM Mon-Fri $135.00 per/hr Time and Half after 8 hours worked or after 3:30PM Mon-Fri $202.50 per/hr Double Time after 10 hours worked, Sat, Sun, Holidays $270.00 per/hr Emergency response time 2hr Service calls non-emergency to be completed in 5 business days Travel Charge included in hourly rate Truck Charges included in hourly rate 15% Mark - up on all Material used No Lift Charges unless specialty lift is needed Due to global shortages on materials throughout our industry Helm Electric Inc. will not be held liable for delays beyond our control. In some cases, alternative solutions may be available for additional costs. Due to unstable pricing from our Venders, material cost will be held for 30 days from bid date. Any price increase may be added to the contract. _________________________________________________________________________________________________________ Total payment due 30 days from invoice date. Helm Electric Inc may charge interest on late payments. Acceptance of Proposal: The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. To accept this proposal sign and date this copy. Date of Acceptance:____________________Signature:_________________________________________________________ Page 84 of 165 5350 Pioneer Creek Drive Suite 3 Maple Plain, MN 55359 (763) 479-4420Fax (763) 479-4170Phone 20195 Holyoke Ave Lakeville To m Breeggemann To m Breeggemann tbreeggemann@lakevillemn.gov Lakeville City Hall MN 55044- 5/10/2024 P9060 Time and Material Specs Job No Fax Number Contact Description Price Job: Proposal Proposal Number Proposal Date Attn: PhoneCustomer PO Time and Material Specifications: Current Wages- $135 per hour Overtime- Time and a half after 8 hrs. Double time- Time after 10 hours, weekends, and holidays. Materials: price of materials plus 20% Lift Rentals- $750 for the project 0.00Total Amount Due:Signature: _________________________________ We are a woman owned small business enterprise! Al l pricing is good for 30 days. Invoices paid via Credit Card will incur a 3% fee upon payment. We accept MC, VISA, AMEX Due to the volatility of the materials market and delivery there may be additional pricing. ** NOTICE ** Page 1 of 1 Page 85 of 165 Date: 6/3/2024 No Parking Resolution for Gateway Drive Proposed Action Staff recommends adoption of the following motion: Move to approve resolution for No Parking on Gateway Drive except 75’ north of the west business entrance drive. Overview Gateway Drive is a dead-end street north of Lakeville Blvd (County Road 50) and east of Cedar Aveune (County Road 23). Semi-trucks routinely use the Gateway Drive as a weekend and overnight parking area. The business owner on Gateway Drive has stated the semi-trucks have blocked the mailbox and have blocked their drive for transport deliveries. Gateway Drive is not intended to be used for semi-truck parking and could hamper emergency vehicle movements and the traveling public. Staff recommends the City Council adopt a No Parking resolution for Gateway Drive as shown on the attached exhibit. Supporting Information 1. Gateway Drive No Parking Exhbit 2. Gateway Drive No Parking Resolution Financial Impact: $1,000 Budgeted: Yes Source: Street Division Budget Envision Lakeville Community Values: Safety throughout the community Report Completed by: Paul Oehme, Public Works Director Page 86 of 165 Page 87 of 165 CITY OF LAKEVILLE RESOLUTION NO._________ NO PARKING RESOLUTION FOR GATEWAY DRIVE Resolution Approving No Parking on Gateway Drive WHEREAS, Gateway Drive is a dead-end street north of Lakeville Boulevard (County Road 50) and east of Cedar Avenue (County Road 23) in the commercial district; and WHEREAS, it has been observed semi-trucks routinely use Gateway Drive as an overnight parking area; and WHEREAS, semi-trucks have blocked the mailbox and transport trucks from accessing the business; and WHEREAS, Gateway Drive is not intended to be used for semi-truck parking and could hamper emergency vehicle movements and the traveling public; and NOW, THEREFORE, BE IT RESOLVED by the Lakeville City Council no parking is established on Gateway Drive except 75’ north of the western business drive. ADOPTED by the Lakeville City Council this 3rd day of June 2024 _________________________ Luke M Hellier, Mayor _________________________ Ann Orlofsky, City Clerk Page 88 of 165 Date: 6/3/2024 Agreement with Braun Intertec for Special Inspection and Testing Services at Grand Prairie Park (formerly Avonlea Community Park): CIP #24-20 Proposed Action Staff recommends adoption of the following motion: Move to approve agreement with Braun Intertec for Special Inspection and Testing Services at Grand Prairie Park. Overview The construction of Grand Prairie Park was one project as part of the successful Park Bond Referendum in November of 2021. The project includes items such as the construction of pickleball courts, athletic decks, splash pad, cricket pitch, trails, playground, challenge course, restroom building/shelters and baseball complex. With all of these components, special inspection and testing services for items such as soil, concrete, structural masonry, structural steel and fireproofing, paving and firestopping services is necessary. Braun Intertec has provided a proposal to complete these services at an estimated cost of $56,629.50. The services they provide will be under the terms of the Master Service Agreement Between Braun Intertec and the City of Lakeville dated September 20, 2021. Supporting Information 1. Braun Intertec Proposal Dated May 21, 2024 Financial Impact: $56,629.50 Budgeted: Yes Source: Park Bond Referendum/Park Dedication Envision Lakeville Community Values: Access to a Multitude of Natural Amenities and Recreational Opportunities Report Completed by: John Hennen, Parks and Recreation Director Page 89 of 165 Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com AA/EOE May 21, 2024 Revised Proposal QTB195904 City of Lakeville 20195 Holyoke Avenue Lakeville, Minnesota c/o Mr. Tim Wold SRF Consulting Group, Inc. 3701 Wayzata Boulevard, Suite 100 Minneapolis, MN 55416 Re: Revised Proposal for Special Inspection and Testing Services Avonlea Community Park Southwest Quadrant of 185th Street West and Cedar Avenue Lakeville, Minnesota Dear Mr. Wold: Braun Intertec Corporation is pleased to submit this proposal to provide special inspections and testing services for the Avonlea Community Park in Lakeville, Minnesota. Our Understanding of the Project We understand this project will include mass grading of several new sports fields, roadways and ponds. Within the site, the construction of three buildings, included a large grandstand, three bituminous parking lots, and a playground within the project boundary. The three buildings will be supported on cast in place spread footings and CMU foundation walls. The Main Building and the Field Support Building will be steel framed. The Grandstand Building will be steel framed and supported by CMU walls. Available Information This proposal was prepared using the following documents and information. ▪Project civil plans prepared by SRF Consulting Group, Inc., dated February 28, 2024 (Concept). ▪Project structural plans prepared by ERA Structural Engineers, dated January 23, 2024. ▪Project manual, dated February 27, 2024. ▪A geotechnical report by Braun Intertec, dated September 25, 2023. Project Approach and Staff Qualifications Special Inspections Braun Intertec has adopted the International Code Council (ICC) Model Program for Special Inspection to develop the guiding principles for our special inspection program. This model was selected because it Page 90 of 165 City of Lakeville Revised Proposal QTB195904 May 21, 2024 Page 2 was designed by the ICC to assist owners, contractors and building officials in the understanding, administration and enforcement of the special inspection requirements of the International Building Code (IBC). Currently, there are ICC certifications for soils, reinforced concrete, structural masonry, pre- tension/post-tension (pre-stressed) concrete, spray-applied fireproofing, structural steel and bolting, and structural welding. Qualifications and Experience An ICC certified special inspector is one who has successfully demonstrated their ability to understand the IBC, construction practices and how to read and understand construction documents. Through experience and examination, our ICC certified special inspectors have demonstrated their ability to provide special inspection services. Inspections and Reporting Our special inspectors summarize the nature, extent and results of special inspection activities at the time they are performed on Special Inspection Daily Report forms submitted electronically to the general contractor’s on-site personnel for review and records. These records can also be transmitted electronically to others who may want to review these documents on an agreed upon schedule. When unresolved discrepancies are noted, we will document the issues and work with the design and construction team to bring them to resolution. Special inspection final reports will be prepared and submitted upon completion as required by the requirements of the IBC. Communications Braun Intertec special inspectors will communicate the results of their inspections to the contractor and our supervising engineer each day special inspections are performed. We strive to have our special inspectors develop a working relationship with the project’s structural engineer-of-record. We may attempt contact with the structural engineering consultant periodically to review the work being performed and to request clarifications and direction on any item that may require it. Construction Materials Testing Qualified technicians working under the direction of a professional engineer will provide the services. Experience and certification information is available upon request once we are provided with schedule information. Concrete technicians assigned to the project are ACI Concrete Field Testing Technician – Grade I certified to conduct the required concrete testing. Soil technicians are certified to use a nuclear gauge for soil density testing, so test results can be determined on site and evaluated once the required laboratory testing is completed. Field test results will be verbally reported daily to the general contractor on site, with written field and laboratory reports distributed shortly after. Firestopping Observation Services This project requires 3rd party firestop special inspection of through-penetration firestopping and fire-resistive joint systems under the State Building Code and adopted 2020 Minnesota State Building Code, Section 1705.17 and Table 1604.5. Under 2020 Minnesota State Building Code, Chapter 16, Table 1604.5 – this project falls into a High-Rise Hazard, Risk Category III Hazard, or Risk Category IV Hazard, or the project specifications require the inspection service. Chapter 1705.17 requires inspection of installed firestop systems by a qualified independent testing agency. Page 91 of 165 City of Lakeville Revised Proposal QTB195904 May 21, 2024 Page 3 Our inspectors meet the requirements outlined in ASTM E2174, ASTM E2393, and ASTM E3038 for on-site inspection of installed firestops and have a minimum of 2 years of construction inspection experience. Our firestop inspectors are certificate holders issued by the International Firestopping Council (IFC) based on their testing requirements, and/or Factory Mutual (FM Global) according to their FM 4991 Designated Responsible Individual (DRI) testing requirement, and/or Underwriters Laboratory’s (UL) Designated Responsible Individual (DRI) testing requirement and having completed coursework and training on proper procedures for inspection of firestop systems by our internal firestop Inspection training program. Our special inspectors summarize the nature, extent and results of their special inspection activities at the time they are performed on Daily Inspection Forms that are submitted to the Authority Having Jurisdiction (AHJ or Building Official), Authorizing Authority (Architect of Record), general contractor’s on-site personnel for their review and records, the installer(s), and the main project manager managing the project for Braun Intertec. Inspection forms will be sequentially numbered and will contain information about one type (per approved submitted system/Engineering Judgment, by installer) of firestop system. If multiple firestop systems are inspected in one day, then separate inspection forms will be prepared for each firestop system. The daily special inspection reports will become the basis for our final written report. Scope of Services Services are performed under the direction of a licensed professional engineer, on a periodic basis, depending on the construction schedule and when they are requested by the general contractor. After reviewing available information, we understand our scope of services for the project will be limited to the tasks defined below. Soil Related Services ▪Observe and evaluate the soils exposed in excavations to determine if the soils are similar to those encountered with the geotechnical evaluation and suitable for support of fill, foundations, and pavements. Our engineer can provide consultation for conditions that appear to differ from the geotechnical evaluation. ▪Perform laboratory mechanical analyses (gradations) of prospective fill materials. ▪Perform laboratory Proctor tests to determine the maximum Proctor dry densities and optimum moisture contents of prospective fill materials. ▪Observe the placement and compaction of fill. ▪Test compacted fill placed below building footprints and oversizing areas, below slabs and/or pavements, adjacent to walls, and in utility trenches, to determine if the relative compaction was achieved. Page 92 of 165 City of Lakeville Revised Proposal QTB195904 May 21, 2024 Page 4 Concrete Related Services ▪Observe concrete reinforcement placement. ▪Sample and test the plastic concrete for slump, air content, temperature and prepare test cylinders for laboratory compressive strength testing with ACI level 1 field technicians. We will perform concrete testing on structural items as required by the IBC. Though not required by the IBC we have included testing for the interior slab on grade, exterior sidewalks, curb and gutter, and pavement, as requested. ▪Observe the concrete placement and test sample preparation. ▪Perform laboratory compressive strength testing of the concrete samples. Structural Masonry Related Services ▪Observe the structural masonry construction and grouting operation on a periodic basis. ▪Observe the preparation of grout and masonry block prism samples. Structural Steel and Fireproofing Related Services ▪Observe and test the structural steel welded and bolted connections in the field. ▪Observe and test the metal decking connections for orientation, sidelap fasteners, the hold down connections. ▪Observe and document the installation of the base plate anchor bolts. ▪Observe and test the spray-applied fireproofing for thickness, density and bond strength. ▪Observe and test application of intumescent paint. Paving Related Services ▪Observe test rolls of the pavement subgrade soils and/or aggregate base layer to determine if the materials tested are capable of supporting bituminous pavement. ▪Perform laboratory mechanical analyses (gradations) of imported pavement supporting materials. ▪Perform MnDOT Dynamic Cone Penetrometer (DCP) testing on class 5 material prior to paving. ▪Perform extraction, gradations and rice testing of all bituminous materials placed for roadways and parking lots. Page 93 of 165 City of Lakeville Revised Proposal QTB195904 May 21, 2024 Page 5 Firestopping Services ▪Perform observations on the installed through-penetration firestopping and fire-resistive joint systems. ▪Provide review of the approved construction documents. This is at minimum, ▪The most current drawing package ▪The firestop specifications section – CSI – 078400 ▪The approved firestop submittal, including all UL Listed assemblies and any engineering judgments to be used, and the product information ▪Management, including scheduling of our field personnel and communication with the contractor, owner, building official, fabricator and design team through our report distribution process. ▪Transmit the daily field inspection reports within 24 to 48-hour basis to the project team; the installer, general contractor, owner, building official, and design team. Engineering Consulting and Project Communication and Reporting Services ▪Provide engineering consulting services, review test results and observations reports, and prepare required final reports. ▪Management, including scheduling of our field personnel and communication with the contractor, owner, building official, and design team. ▪Transmit results to the project team on weekly basis to the contractor, owner, building official, fabricators and design team. Basis of Scope of Work The costs associated with the proposed scope of services were estimated using the following assumptions. If the construction schedule is modified or the contractor completes the various phases of the project at different frequencies or durations than shown in this proposal, we may need to adjust the overall cost accordingly. The scope of work and number of trips required to perform these services are as shown in the attached table. Notable assumptions in developing our estimate include: ▪This project will begin in the spring of 2024 and will be substantially complete by about the spring of 2025. ▪Assumptions regarding the number of trips for special inspections and testing are outlined in the attached cost estimate table. As the contractor’s schedule becomes available and designs are finalized, please review this proposed scope of work to determine if the project’s needs and budget will be met. Page 94 of 165 City of Lakeville Revised Proposal QTB195904 May 21, 2024 Page 6 ▪The earthwork mass grading phase of the project will be substantially complete in 2 weeks and the utility phase will be substantially completed in 2 weeks. We have assumed that periodic earthwork observation and testing will be required. ▪Concrete placements for the structure will be observed throughout the duration by our technician as required by the IBC and project documents. ▪The inspection of the reinforcement associated with structural concrete will be performed immediately prior to testing of the concrete with no additional trips or time incurred. ▪The masonry construction will require inspections to be completed every time grout is placed. Grout will be placed with high lift grout techniques. ▪We assume the structural steel fabricator will be AISC certified and review of quality control manual or inspections of the fabrication shop are not required. If this assumption is not correct, please call us and we will provide a cost estimate for the fabrication shop inspections. ▪Mandatory Pre-construction meeting with General Contractor and Firestopping Sub- Contractor(s). Inspection guidelines will be based on IBC code required ASTM E2174 and ASTM E2393 inspection standards. ▪Safe access to all locations where firestop installations are required. No special site-specific training or gear is required to complete our scope of services. ▪We have assumed 3 trips to inspect installed firestop systems as noted in the construction documents for the project. Firestop inspection trips include coordination time, travel, construction meetings (as requested), mandatory pre-installation meetings, preparation of daily written reports for each inspected firestop system by each installer. Actual installation phasing and sequencing may modify the number of visits. ▪Final firestopping report will be issued when firestopping is completed. ▪No special site specific training or gear is required to complete our scope of services. ▪You, or others you may designate, will provide us with current and approved plans and specifications for the project. Modification to these plans must also be sent to us so we can review their incorporation into the work. ▪We will require a minimum of 24 hours’ notice for scheduling inspections for a specific time. Shorter than 24 hours’ notice may impact our ability to perform the requested services, and the associated impacts will be the responsibility of others. Page 95 of 165 City of Lakeville Revised Proposal QTB195904 May 21, 2024 Page 7 Cost We will furnish the services described in this proposal for an estimated fee of $56,629.50. It should be noted that this proposal is contingent on the authorization of our authorization of services agreement (QTB196009) for preliminary grading work at this site. A tabulation showing hourly and unit rates associated with our proposed scope of services is attached. To the extent possible, units and hours were reviewed with representatives of the contractor to determine if time frames are consistent with their expectations for completing the various activities. The actual cost of our services will be based on the actual units or hours expended to meet the requirements of the project documents. This cost estimate was developed with the understanding that the scope of services defined herein will be required and requested during our normal work hours of 6:00 a.m. to 4:00 p.m., Monday through Friday. Services that we are asked to provide to meet the project requirements or the contractor’s construction schedule outside our normal business hours will be invoiced using an overtime rate factor. The factor for services provided outside our normal work hours or on Saturday will be 1.25 times the listed hourly rate for the service provided. The factor for services provided on Sunday or legal holidays will be 1.5 times the listed hourly rate for the service provided. We have not included premiums for overtime in our cost estimate; however, we recommend that allowances and contingencies be made for overtime charges based on conversations with the contractor. You will be billed only for services provided on a time and materials basis. Because our services are directly controlled by the schedule and performance of others, the actual cost may vary from our estimate. It is difficult to project all of the services and the quantity of services that may be required for any project. If services are required that are not discussed above, we will provide them at the rates shown in the attached table or, if not shown, at our current Schedule of Charges. We will invoice you on a monthly basis. General Remarks We will be happy to meet with you to discuss our proposed scope of services further and clarify the various scope components. We appreciate the opportunity to present this proposal to you. After reviewing this proposal, please sign and return one copy to our office as notification of acceptance and authorization to proceed. If anything in this proposal is not consistent with your requirements, please let us know immediately. Braun Intertec will not release any written reports until we have received a signed agreement. Also, ordering services from Braun Intertec constitutes acceptance of the terms of this proposal and the Master Services Agreement between Braun Intertec and the City of Lakeville. The proposed fee is based on the scope of services described and the assumption that our services will be authorized within 30 days and that others will not delay us beyond our proposed schedule. Page 96 of 165 City of Lakeville Revised Proposal QTB195904 May 21, 2024 Page 8 We understand that our services will be provided under the terms of the Master Service Agreement between Braun Intertec and the City of Lakeville, dated September 20, 2021. To have questions answered or schedule a time to meet and discuss our approach to this project further, please contact Joe Westphal at 952.995.2238 (jwestphal@braunintertec.com) or Richard Jett at 815.545.7059 (rjett@braunintertec.com). Sincerely, BRAUN INTERTEC CORPORATION Richard S. Jett, PE Project Engineer Joseph L. Westphal, PE Director, Senior Engineer Attachments: Project Proposal QTB195904 The proposal is accepted. We will reimburse you in accordance with this agreement, and you are authorized to proceed: Authorizer’s Firm Authorizer’s Signature Authorizer’s Name (please print or type) Authorizer’s Title Date Page 97 of 165 Client:Service Description:Work Site Address: Southwest quadrant of 185th Street West and Cedar Avenue Lakeville, MN 55044 SRF Consulting Group, Inc. Tim Wold 3701 Wayzata Boulevard Suite 100 Minneapolis, MN 55416 (763) 475-0010 Special Inspections and Construction Materials Testing Description Quantity Units Unit Price Extension Phase 1 Construction and Materials Testing Activity 1.1 Soil Observations and Testing $12,999.00 206 Excavation Observations 29.00 Hour 94.00 $2,726.00 Work Activity Detail Qty Units Hrs/Unit Extension Foundation Excavations 6.00 Trips 1.50 9.00 Site Grading 10.00 Trips 2.00 20.00 207 Compaction Testing - Nuclear 76.00 Hour 82.00 $6,232.00 Work Activity Detail Qty Units Hrs/Unit Extension Site Grading 10.00 Trips 2.00 20.00 Foundation Backfill 8.00 Trips 2.00 16.00 Utilities, Storm, Sanitary, Water Main 20.00 Trips 1.50 30.00 Sub-base Grading 5.00 Trips 2.00 10.00 1308 Nuclear moisture-density meter charge, per hour 70.00 Each 24.00 $1,680.00 1861 CMT Trip Charge 42.00 Each 25.00 $1,050.00 126 Project Engineer 2.00 Hour 160.00 $320.00 1318 Moisture Density Relationship (Standard), per sample 3.00 Each 185.00 $555.00 1162 Sieve Analysis with 200 wash, per sample 2.00 Each 136.00 $272.00 209 Sample pick-up 2.00 Hour 82.00 $164.00 Activity 1.2 Concrete Observations and Testing $15,536.00 260 Concrete Observations 13.00 Hour 94.00 $1,222.00 Work Activity Detail Qty Units Hrs/Unit Extension Footings & Column Pads - Main Building 2.00 Trips 1.00 2.00 Foundation Walls & Piers - Main Building 1.00 Trip 1.50 1.50 Footings & Column Pads - Field Support Building 1.00 Trips 1.00 1.00 Foundation Walls & Piers - Field Support Building 1.00 Trips 1.50 1.50 Footings & Column Pads - Grandstand 4.00 Trips 1.00 4.00 Foundation Walls & Piers - Grandstand 2.00 Trips 1.50 3.00 261 Concrete Testing 78.50 Hour 82.00 $6,437.00 Work Activity Detail Qty Units Hrs/Unit Extension Footings & Column Pads - Main Building 2.00 Trips 2.50 5.00 Foundation Walls & Piers - Main Building 1.00 Trip 3.00 3.00 Footings & Column Pads - Field Support Building 1.00 Trip 2.50 2.50 Foundation Walls & Piers - Field Support Building 1.00 Trip 3.00 3.00 Footings & Column Pads - Grandstand 4.00 Trips 2.50 10.00 Foundation Walls & Piers - Grandstand 2.00 Trips 3.00 6.00 Slab On Grade - Main Building 1.00 Trip 3.00 3.00 Slab On Grade - Field Support Building 1.00 Trip 3.00 3.00 Slab On Grade - Grandstand 6.00 Trips 3.00 18.00 Exterior Concrete (curb & Sidewalk)10.00 Trips 2.50 25.00 278 Concrete Cylinder Pick up 26.00 Hour 82.00 $2,132.00 Page 1 of 305/21/2024 10:00 AM Project Proposal QTB195904 Avonlea Community Park Page 98 of 165 1861 CMT Trip Charge 50.00 Each 25.00 $1,250.00 1364 Compressive strength of concrete cylinders (ASTM C 39),per specimen 145.00 Each 31.00 $4,495.00 Work Activity Detail Qty Units Hrs/Unit Extension Footings & Column Pads - Main Building 2.00 Sets 5.00 10.00 Foundation Walls & Piers - Main Building 1.00 Set 5.00 5.00 Footings & Column Pads - Field Support Building 1.00 Set 5.00 5.00 Foundation Walls & Piers - Field Support Building 1.00 Set 5.00 5.00 Footings & Column Pads - Grandstand 4.00 Sets 5.00 20.00 Foundation Walls & Piers - Grandstand 2.00 Sets 5.00 10.00 Slab On Grade - Main Building 1.00 Set 5.00 5.00 Slab On Grade - Field Support Building 1.00 Set 5.00 5.00 Slab On Grade - Grandstand 6.00 Sets 5.00 30.00 Exterior Concrete (Curb & Sidewalk)10.00 Sets 5.00 50.00 Activity 1.3 Masonry Observations and Testing $5,129.00 203 Masonry Observations 34.00 Hour 94.00 $3,196.00 Work Activity Detail Qty Units Hrs/Unit Extension Grand Stand Walls 10.00 Trips 3.00 30.00 Main Bldg Walls 1.00 Trip 2.00 2.00 Field Support Bldg Walls 1.00 Trip 2.00 2.00 1861 CMT Trip Charge 15.00 Each 25.00 $375.00 213 Masonry Sample Pick up 4.00 Hour 82.00 $328.00 1412 Compressive strength of grout (ASTM C 1019), per specimen 6.00 Each 78.00 $468.00 1409 Compressive strength - Hollow block prisms (ASTM C 1314), per specimen 3.00 Each 192.00 $576.00 1407 Net area determination (ASTM C 140) , per specimen 3.00 Each 62.00 $186.00 Activity 1.4 Structural Steel and Fireproofing Observations $3,303.00 605 ICC Structural Steel Technician 21.00 Hour 122.00 $2,562.00 1785 Adhesion/Cohesion Testing, per test 2.00 Each 55.00 $110.00 1784 Thickness/Density, laboratory determination 2.00 Each 68.00 $136.00 1664 NDE Trip charge 7.00 Each 25.00 $175.00 126 Project Engineer 2.00 Hour 160.00 $320.00 Activity 1.5 Pavement Observations & Testing $8,399.00 211 Proofroll Observations 12.00 Hour 106.00 $1,272.00 128 Senior Engineer 2.00 Hour 185.00 $370.00 1861 CMT Trip Charge 5.00 Each 25.00 $125.00 217 Compaction Testing - DCP 6.00 Hour 82.00 $492.00 209 Sample pick-up 12.00 Hour 82.00 $984.00 1162 Sieve Analysis with 200 wash, per sample 12.00 Each 136.00 $1,632.00 1528 Rice Specific Gravity, per sample 6.00 Each 80.00 $480.00 1530 Asphalt Content, per sample 8.00 Each 150.00 $1,200.00 1528 Rice Specific Gravity, per sample 6.00 Each 80.00 $480.00 1542 Thickness and Density of Bituminous Core 12.00 Each 52.00 $624.00 252 Bituminous Coring, two person 4.00 Hour 185.00 $740.00 Activity 1.6 Firestopping Special Inspections $4,739.50 5516 Pre-Con Meeting/Submittal Review (Includes Trip Charge)1.00 Each 1,350.00 $1,350.00 5519 Firestopping Inspection (Includes Trip Charge)3.00 Each 800.00 $2,400.00 654 Firestopping Project Manager 0.75 Hour 186.00 $139.50 Page 2 of 305/21/2024 10:00 AM Project Proposal QTB195904 Avonlea Community Park Page 99 of 165 Proposal Total:$56,629.50 5522 Firestopping Final Report 1.00 Each 850.00 $850.00 Activity 1.7 Project Management $6,524.00 238 Project Assistant 12.00 Hour 82.00 $984.00 125 Project Manager 12.00 Hour 160.00 $1,920.00 126 Project Engineer 18.00 Hour 160.00 $2,880.00 128 Senior Engineer 4.00 Hour 185.00 $740.00 Phase 1 Total:$56,629.50 Page 3 of 305/21/2024 10:00 AM Project Proposal QTB195904 Avonlea Community Park Page 100 of 165 Date: 6/3/2024 Joint Powers Agreement with Dakota County for Milling, Bituminous Overlay, Drainage Improvements and City Utility Repairs along County State Aid Highways 5 and 70 Proposed Action Staff recommends adoption of the following motion: Move to approve a Joint Power Agreement with Dakota County for Milling, Bituminous Overlay, Drainage Improvements and City Utility Repairs along County State Aid Highways 5 and 70, City Project 24-10. Overview The City of Lakeville and Dakota County are partnering to complete drainage improvements and City utility repairs along County State Aid Highway (CSAH) 5 (Kenwood Trail) from CSAH 46 (162nd Street) to the Lakeville/Burnsville border and CSAH 70 (210th Street) from the Dakota/Scott County line to 850 feet east of the Kensington Boulevard intersection, and along trails located along CSAH 31 (Pilot Knob Road) from the Lakeville/Farmington border to 170th Street and CSAH 46 (160th Street) from CSAH 23 (Cedar Avenue) to CSAH 31 (Pilot Knob Road). The work is part of the County's pavement preservation plan (mill and overlays) and is programmed for construction in 2024. Improvements include storm sewer, sanitary sewer and watermain repairs. The Joint Powers Agreement establishes City and County project responsibilities and cost participation. The County is the lead agency for design, construction and construction administration of the projects. The City's estimated cost is $50,000 and will be financed from the Pavement Management Fund, and the Sanitary Sewer and Water Operating Funds. Supporting Information 1. CITY OF LAKEVILLE - CONTRACT #DCA21378 (CP 5-57 70-24)_Final Financial Impact: $50,000 Budgeted: Yes Source: Multiple Sources Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Jon Nelson, Assistant City Engineer Page 101 of 165 Dakota County Contract #DCA21378 JOINT POWERS AGREEMENT FOR MILLING, BITUMINOUS OVERLAY, DRAINAGE IMPROVEMENTS, AND CITY UTILITY REPAIRS BETWEEN THE COUNTY OF DAKOTA AND THE CITY OF LAKEVILLE FOR DAKOTA COUNTY PROJECT NO. 5-57 & 70-24 CITY PROJECT NO. 24-10 SYNOPSIS: Dakota County Transportation Department and the City of Lakeville agree to include the necessary storm sewer, sanitary sewer, and watermain repairs in the resurfacing of County State Aid Highway (CSAH) 5 (Kenwood Trail) from CSAH 46 to CSAH 42, County Project 5-57 and CSAH 70 (210th Street/Juniper Way) from Scott County line to approximately 850-feet east of CSAH 5/Kensington Blvd, County Project 70-24, in Lakeville, Dakota County. Page 102 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 2 THIS JOINT POWERS AGREEMENT (“Agreement”), is made and entered into by and between the County of Dakota ("County"), a political subdivision of the State of Minnesota, and the City of Lakeville ("City"), a municipal corporation existing under the laws of the State of Minnesota, hereafter collectively referred to as “Parties”, and individually as “Party”, and witnesses the following: WHEREAS, under Minnesota Statutes Sections 162.17, Subd. 1 and 471.59, Subd. 1, two governmental units may enter into an agreement to cooperatively exercise any power common to the contracting parties, and one of the participating governmental units may exercise one of its powers on behalf of the other governmental units; and WHEREAS, to provide a safe and efficient transportation system, the County and the City are proceeding with Dakota County Project (DCP) 5-57 to resurface County State Aid Highway (CSAH) 5 from CSAH 46 to CSAH 42; and WHEREAS, the County and the City are also proceeding with DCP 70-24 to resurface CSAH 70 from the Scott County line to approximately 850-feet east of CSAH 5/Kensington Blvd., in Lakeville, (DCP 5-57 and DCP 70-24 together termed the “Project”); and WHEREAS, the City desires to repair storm sewer, sanitary sewer and watermain infrastructure along these sections of CSAH 5 and CSAH 70 (the “City Work”); and WHEREAS, to more efficiently deliver the Project, the County and the City mutually desire to partner with one another in exercising their joint powers to include the City Work in the Project and perform the City Work in conjunction therewith; and WHEREAS, the County and City have included these respective improvements in their Capital Improvement Programs and will jointly participate in the costs of said improvements per the Cost Sharing Policies within the Dakota County 2040 Transportation Plan (July 2021) and as further defined within this Agreement. Page 103 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 3 NOW, THEREFORE, it is agreed the County and City will share Project responsibilities as detailed in this Agreement and, in accordance with the County’s adopted Cost Sharing Policies within the Dakota County 2040 Transportation Plan (July 2021), jointly participate in Project costs as set forth herein. The above recitals are incorporated by reference and are made a part hereof as if fully set forth below. 1. Project Administration. The County shall be the lead agency for design, construction, construction administration, and maintenance of the Project. Subject to the requirements below, the County and the City shall each retain final decision-making authority within their respective jurisdictions. 2. County Highway Resurfacing. The County shall be solely responsible for the costs of the milling and bituminous overlay of both CSAH 5 from CSAH 46 to CSAH 42 (DCP 5-57), and CSAH 70 from the Scott County line to approximately 850-feet east of CSAH 5/Kensington Blvd (DCP 70-24), and trail pavement preservation associated with the Project in the City. 3. Storm Sewer Utility Repairs. The County and City shall share all costs associated with the repairs to storm sewer systems made as part of the Project. The County shall pay for 80% of the storm sewer utility repair costs, and the City shall pay for 20% of the storm sewer utility repair costs. The City shall be responsible for inspecting and approving this work. Further, the County and City shall be responsible for the maintenance of all such facilities after completion of the Project in accordance with terms and conditions of the current adopted Maintenance Agreement for Storm Sewer Systems (Dakota County Contract No. C0025412). 4. Sanitary Sewer and Watermain – City Utility Repairs. The City shall be solely responsible for: a) all costs associated with utility repairs to sanitary sewer and watermain systems made as part of the Project; b) inspecting and approving said utility work; and c) maintaining all such facilities after the completion of the Project. Page 104 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 4 5. Plans, Specifications and Award of Contract. The County shall prepare the complete milling and paving plans, specifications, and contract documents for County Projects 5-57 and 70-24 consistent with State Aid design standards and the Dakota County 2040 Transportation Plan (July 2021). The City shall be responsible for inventorying and identifying necessary storm sewer, sanitary sewer, and watermain system repairs, and preparing plans and specifications to be incorporated into the County’s plans and specifications. The utility repair plans shall be in accordance with City standards unless the City and County mutually agree on the alternative specifications. The County is the lead agency for bidding and award of the construction contract. The lead agency may award the contract for construction to the lowest responsive and responsible bidder in accordance with state law. If a bid is not awarded, this Agreement shall terminate for the specific project that is not awarded, and all costs incurred as of the date of termination shall be apportioned in accordance with the terms of this Agreement. The contract construction shall be performed in accordance with approved plans, specifications and special provisions which are made a part hereof by reference with the same force and effect as though fully set forth herein. 6. Construction Standards. All construction, including traffic control, shall be accomplished in accordance with applicable State Aid, County and City standards, specifications, and policies to the satisfaction of the County and City. The County and City reserves the right to inspect construction materials and methods as needed. 7. Cost Share. After application of all applicable cost sharing provisions of this Agreement and the Dakota County 2040 Transportation Plan (July 2021) Appendix A policies F.1 through F.19 and as defined in Section 2, 3 and 4 of this Agreement. Costs will be based on actuals at the time of construction. 8. Project Cost Updates. The lead agency must provide updated cost estimates showing the County and City shares of Project costs. Updated cost estimates will be provided by the lead agency at the following times: · prior to advertising a construction contract; · after bid opening (prior to contract award); Page 105 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 5 · during construction if total contract changes exceed $25,000; · once per year following the construction season until the Project is complete. Project cost estimate updates include actual and estimated costs for engineering, right-of-way acquisition, utility relocation, construction, and administration. The Parties acknowledge that Project cost estimates are subject to numerous variables causing the estimates to be subject to change and the updates are provided for informational purposes in good faith. Each agency is responsible for informing their respective council or board regarding Project cost estimates. 9. Payment. The County shall administer the contract and act as the paying agent for all payments to the Contractor. Payments to the Contractor will be made as Project work progresses and when certified by the County Engineer. The County will invoice the City for the City share of Project costs. Upon presentation of an itemized claim by one agency to the other, the receiving agency shall reimburse the invoicing agency for its share of the costs incurred under this Agreement upon receipt or within a maximum of 35 days from the presentation of the claim. If any portion of an itemized claim is questioned by the receiving agency, the remainder of the claim shall be promptly paid, and accompanied by a written explanation of the amounts in question. Payment of any outstanding amount will be made following good faith negotiation and documentation of actual costs incurred in carrying out the work. 10. Change Orders and Supplemental Agreements. Any change orders or supplemental agreements that affect any of the Project’s cost participation must be approved by the authorized representative of each Party prior to execution of work. The City’s appointed representative is Zach Johnson, City Engineer, and the County’s appointed representative is Todd Howard, Assistant County Engineer, or their successors. Both Parties shall endeavor to provide timely approval of change orders and supplemental agreements so as not to delay construction operations. Page 106 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 6 11. Amendments. Any amendments to this Agreement will be effective only after approval by each governing body and execution of a written amendment document by duly authorized officials of each body. 12. Effective Dates for Design and Construction of Project. This Agreement will be effective upon execution by duly authorized officials of each governing body and shall continue in effect until all work to be carried out in accordance with this Agreement has been completed. Absent an amendment, however, in no event will this Agreement continue in effect after December 31, 2025. 13. Final Acceptance. Final completion of the Project must be approved by both the County and the City. The contractor shall provide a maintenance bond for the City Work. The warranty period for materials and workmanship shall be two years from the date of final acceptance by the City, as approved by the City Engineer. The County shall include this requirement in the contract documents. 14. Pavement Maintenance. Upon acceptance of the Project, the City shall be responsible for all pavement maintenance within City-owned right-of-way. The County shall be responsible for all pavement maintenance within County-owned right-of-way unless necessitated by a failure of a City utility system or installation of new City-owned facilities. 15. Pavement Marking and Traffic Signing Maintenance. Pavement markings will be installed as applicable for the operation of the highway and intersections along the Project area as outlined in the plans. The City shall be responsible for all pavement marking and sign maintenance within City right-of-way and the County shall be responsible for all pavement marking and sign maintenance within the County right- of-way unless necessitated by installation of new City facilities. 16. Drainage Area and Stormwater or Drainage Facilities Maintenance. Upon final acceptance of the Project, maintenance of any drainage areas and any stormwater or drainage facilities shall be provided in accordance with the current adopted Maintenance Agreement for Storm Sewer Systems (Dakota County Contract No. C0025412). Page 107 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 7 17. Sidewalks and Trails. Upon final acceptance of the Project, maintenance of sidewalks and trails within County right-of-way shall be provided in accordance with the Dakota County 2040 Transportation Plan (July 2021). The County shall be responsible for the costs of trail resurfacing or reconstruction in accordance with County policies included in the Dakota County 2040 Transportation Plan (July 2021). 18. Subsequent Excavation. After completion of the Project, and after expiration of the warranty period regarding repair, if excavation within the County right-of-way is necessary to repair or install water, sanitary sewer, or other City utilities, the City shall apply for a permit from the County and shall be responsible to restore the excavated area and road surface to substantially the condition at the time of disturbance. If the City employs its own contractor for the above-described water, sanitary sewer or other utility repair or installation, the City shall hold the County harmless from any and all liability incurred due to the repair or installation of said water, sanitary sewer or other municipal utility including, but not limited to, the costs of repair as well as liability to third parties injured or damaged as a result of the work. If the City fails to have the highway properly restored, the County Engineer may have the work done and the City shall pay for the work within 35 days following receipt of a written claim by the County. 19. Rules and Regulations. The County and the City shall abide by Minnesota Department of Transportation standard specifications, rules, and contract administration procedures unless amended by the contract specifications. 20. Indemnification. The County agrees to defend, indemnify, and hold harmless the City against any and all claims, liability, loss, damage, or expense arising under the provisions of this Agreement and caused by or resulting from negligent acts or omissions of the County and/or those of County employees or agents. The City agrees to defend, indemnify, and hold harmless the County against any and all claims, liability, loss, damage, or expense arising under the provisions of this Agreement for which the City is responsible, including future operation and maintenance of facilities owned by the City and caused by or resulting from negligent acts or omissions of the City and/or those of City employees or agents. All Parties to this Agreement recognize that liability for any claims arising under this Agreement are subject to the provisions of the Page 108 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 8 Minnesota Municipal Tort Claims Law; Minnesota Statutes, Chapter 466. In the event of any claims or actions filed against either party, nothing in this Agreement shall be construed to allow a claimant to obtain separate judgments or separate liability caps from the individual parties. The County shall include the City as additional insured in the contract documents. 21. Employees of Parties. Any and all persons engaged in the work to be performed by the County shall not be considered employees of the City, for any purpose, including Worker’s Compensation, and any and all claims that may or might arise out of said employment context on behalf of said employees while so engaged. Any and all claims made by any third party as a consequence of any act or omission on the part of the County’s employees while so engaged on any of the work contemplated herein shall not be the obligation or responsibility of the City. Any and all persons engaged in the work to be performed by the City shall not be considered employees of the County for any purpose, including Worker’s Compensation, and any and all claims that may or might arise out of said employment context on behalf of said employee while so engaged. Any and all claims made by any third party as a consequence of any act or omissions of the part of the City’s employees while so engaged on any of the work contemplated herein shall not be the obligation or responsibility of the County. 22. Audits. Pursuant to Minnesota Statutes Sec. 16C.05, Subd. 5, any books, records, documents, and accounting procedures and practices of the County and the City relevant to this Agreement are subject to examination by the County or the City and either the Legislative Auditor or the State Auditor as appropriate. The County and the City agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. 23. Integration and Continuing Effect. The entire and integrated agreement of the Parties contained in this Agreement shall supersede all prior negotiations, representations or agreements between the City and the County regarding the Project; whether written or oral. All agreements for future maintenance or cost responsibilities shall survive and continue in full force and effect in accordance with the Dakota County Page 109 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 9 Transportation Plan after completion of the construction provided for in this Agreement. 24. Authorized Representatives. The authorized representatives for the purpose of the administration of this Agreement are: COUNTY OF DAKOTA Erin Laberee, Dakota County Engineer (or successor) 14955 Galaxie Avenue Apple Valley, MN 55124 Office: (952) 891-7100 Erin.Laberee@co.dakota.mn.us CITY OF LAKEVILLE Zach Johnson City Engineer 20195 Holyoke Avenue Lakeville, MN 55044 Office: (952) 985-4501 zjohnson@lakevillemn.gov All notices or communications required or permitted by this Agreement shall be either hand delivered or mailed by certified mail, return receipt requested, to the above addresses. Either Party may change its address by written notice to the other Party. Mailed notice shall be deemed complete two business days after the date of mailing. [SIGNATURE PAGE TO FOLLOW] Page 110 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 10 IN WITNESS THEREOF, the Parties have caused this Agreement to be executed by their duly authorized officials. CITY OF LAKEVILLE RECOMMENDED FOR APPROVAL: By City Engineer Mayor Date (SEAL) By City Clerk Date Page 111 of 165 Dakota County Contract #DCA21378 Dakota County Projects 5-57 and 70-24; City Project 24-10 May 31, 2024 Page | 11 COUNTY OF DAKOTA RECOMMENDED FOR APPROVAL: __________________________ By __ County Engineer Physical Development Director Date APPROVED AS TO FORM: Assistant County Attorney Date COUNTY BOARD RESOLUTION KS-_____________ No. ______ Date ___________ Page 112 of 165 Date: 6/3/2024 Approval of the ALF Ambulance 2025 Budget Proposed Action Staff recommends adoption of the following motion: Move to approve the ALF Ambulance 2025 Budget. Overview The Joint Powers Agreement states “On or before July 1 of each year, the annual operating budget for the following calendar year as recommended by the Board shall be submitted to each member City Council for approval or disapproval.” The ALF Ambulance Board, at its May 23, 2024, meeting, recommended City Council approval of the attached budget. Supporting Information 1. 2024-06-03 ALF Ambulance 2025 Budget Financial Impact: $0.00 Budgeted: No Source: Township/City Payments, Interest Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Julie Stahl, Finance Director Page 113 of 165 ALF AMBULANCE 2025 BUDGET Statement of Cash Flows 2023 2024 2024 2025 Actual Adopted Estimate Proposed Additions Townships  / City 1,500$        1,500$         1,500$          1,500$           Interest on investments  4,669          3,800           3,800            4,000             Market value adjustment 3,817           ‐               ‐                 ‐                      Total additions 9,986          5,300           5,300            5,500             Deductions Expenses      Other 443             500              500               500                     Total deductions 443             500              500               500                9,543          4,800           4,800            5,000             Distribution of  cash Apple Valley ‐               ‐               ‐                 ‐                 Lakeville ‐               ‐               ‐                 ‐                 Farmington ‐               ‐               ‐                 ‐                      Total distribution of  cash ‐               ‐               ‐                 ‐                 Net changes  in cash position 9,543          4,800           4,800            5,000             Cash balance, January 1202,188      211,414       211,731        216,531         Cash balance, December 31 211,731$    216,214$     216,531$      221,531$                                 Statement of Cash Flows  Net changes in cash before  distributions   Page 114 of 165 Date: 6/3/2024 Preserve of Lakeville Third Addition Final Plat Proposed Action Staff recommends adoption of the following motion: Move to approve the development contract for Preserve of Lakeville Third Addition. Overview The City Council approved the final plat of Preserve of Lakeville Third Addition of 20 single family lots on May 20, 2024. The property is located northeast of Kenwood Trail (CSAH 50), north of 190th Street, and south of 185th Street (CSAH 60). The developer has submitted the signed development contract in accordance with the requirement of the final plat resolution approved by the City Council. Supporting Information 1. Development Contract 2. Location map 3. Final Plat Preserve of Lakeville Third Addition Financial Impact: $0.00 Budgeted: No Source: Envision Lakeville Community Values: A Home for All Ages and Stages of Life Report Completed by: Frank Dempsey, Associate Planner Page 115 of 165 1 230972v5 Preserve of Lakeville Third Addition (reserved for recording information) DEVELOPMENT CONTRACT (Developer Installed Improvements) PRESERVE OF LAKEVILLE THIRD ADDITION CONTRACT dated ____________________, 2024, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation (“City”), and PROGRESSIVE LLC, a Minnesota limited liability company, (the “Developer”). 1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a plat for PRESERVE OF LAKEVILLE THIRD ADDITION (referred to in this Contract as the "plat"). The land is situated in the County of Dakota, State of Minnesota, and is legally described as: Outlot C, Preserve of Lakeville, Dakota County, Minnesota, according to the recorded plat thereof. 2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the plat on condition that the Developer enter into this Contract, furnish the security required by it, and record the plat with the County Recorder or Registrar of Titles within 180 days after the City Council approves the final plat. 3. RIGHT TO PROCEED. Within the plat or land to be platted, the Developer may not grade or otherwise disturb the earth or remove trees, unless a grading permit has been approved by the City Engineer Page 116 of 165 2 230972v5 Preserve of Lakeville Third Addition following approval of a preliminary plat by the City Council, construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings until all the following conditions have been satisfied: 1) this agreement has been fully executed by both parties and filed with the City Clerk, 2) the necessary security has been received by the City, 3) the necessary insurance for the Developer and its construction contractors has been received by the City, and 4) the plat has been filed with the Dakota County Recorder or Registrar of Titles’ office. 4. PHASED DEVELOPMENT. If the plat is a phase of a multi-phased preliminary plat, the City may refuse to approve final plats of subsequent phases if the Developer has breached this Contract and the breach has not been remedied. Development of subsequent phases may not proceed until Development Contracts for such phases are approved by the City. Park dedication charges referred to in this Contract are not being imposed on outlots, if any, in the plat that are designated in an approved preliminary plat for future subdivision into lots and blocks. Such charges will be calculated and imposed when the outlots are final platted into lots and blocks. 5. PRELIMINARY PLAT STATUS. If the plat is a phase of a multi-phased preliminary plat, the preliminary plat approval for all phases not final platted shall lapse and be void unless final platted into lots and blocks, not outlots, within two (2) years after preliminary plat approval. 6. CHANGES IN OFFICIAL CONTROLS. For two (2) years from the date of this Contract, no amendments to the City’s Comprehensive Plan, except an amendment placing the plat in the current metropolitan urban service area, or official controls shall apply to or affect the use, development density, lot size, lot layout or dedications of the approved plat unless required by state or federal law or agreed to in writing by the City and the Developer. Thereafter, notwithstanding anything in this Contract to the contrary, to the full extent permitted by state law, the City may require compliance with any amendments to the City’s Comprehensive Plan, official controls, platting or dedication requirements enacted after the date of this Contract. 7. DEVELOPMENT PLANS. The plat shall be developed in accordance with the following plans. The plans shall not be attached to this Contract. With the exception of Plans A, B, and C the plans Page 117 of 165 3 230972v5 Preserve of Lakeville Third Addition may be prepared, subject to the City Engineer’s approval, after entering the Contract, but before commencement of any work in the plat. The City Engineer may approve minor amendments to Plan B without City Council approval. The erosion control plan may also be approved by the Dakota County Soil and Water Conservation District. If the plans vary from the written terms of this Contract, the written terms shall control. The plans are: Plan A - Plat Plan B - Final Grading, Drainage, and Erosion Control Plan Plan C - Tree Preservation Plan Plan D - Plans and Specifications for Public Improvements Plan E - Street Lighting Plan 8. IMPROVEMENTS. The Developer shall install and pay for the following: A. Sanitary Sewer System B. Water System C. Storm Sewer System D. Streets E. Concrete Curb and Gutter F. Street Lights G. Site Grading, Stormwater Treatment/Infiltration Basins, and Erosion Control H. Underground Utilities I. Setting of Iron Monuments J. Surveying and Staking K. Sidewalks and Trails L. Retaining Walls The improvements shall be installed in accordance with the City subdivision ordinance; City standard specifications for utility and street construction; and any other ordinances including Section 11-16-7 of the City Code concerning erosion and drainage and Section 4-1-4-2 prohibiting grading, construction activity, Page 118 of 165 4 230972v5 Preserve of Lakeville Third Addition and the use of power equipment between the hours of 10 o’clock p.m. and 7 o’clock a.m. The Developer shall submit plans and specifications which have been prepared by a competent registered professional engineer to the City for approval by the City Engineer. The Developer shall instruct its engineer to provide adequate field inspection personnel to assure an acceptable level of quality control to the extent that the Developer’s engineer will be able to certify that the construction work meets the approved City standards as a condition of City acceptance. In addition, the City may, at the City’s discretion and at the Developer’s expense, have one or more City inspectors and a soil engineer inspect the work on a full or part-time basis. The Developer, its contractors and subcontractors, shall follow all instructions received from the City’s inspectors. The Developer’s engineer shall provide for on-site project management. The Developer’s engineer is responsible for design changes and contract administration between the Developer and the Developer’s contractor. The Developer or its engineer shall schedule a pre-construction meeting at a mutually agreeable time at the City with all parties concerned, including the City staff, to review the program for the construction work. In accordance with Minnesota Statutes 505.021, the final placement of iron monuments for all lot corners must be completed before the applicable security is released. The Developer’s surveyor shall also submit a written notice to the City certifying that the monuments have been installed following site grading, utility and street construction. 9. CONTRACTORS/SUBCONTRACTORS. City Council members, City employees, and City Planning Commission members, and corporations, partnerships, and other entities in which such individuals have greater than a 25% ownership interest or in which they are an officer or director may not act as contractors or subcontractors for the public improvements identified in Paragraph 8 above. 10. PERMITS. The Developer shall obtain or require its contractors and subcontractors to obtain all necessary permits, which may include: A. Dakota County for County Road Access and Work in County Rights-of-Way B. Minnesota Department of Health for Watermains C. MPCA NPDES Permit for Construction Activity D. MPCA for Sanitary Sewer and Hazardous Material Removal and Disposal Page 119 of 165 5 230972v5 Preserve of Lakeville Third Addition E. DNR for Dewatering F. City of Lakeville for Building Permits G. MCES for Sanitary Sewer Connections H. City of Lakeville for Retaining Walls 11. DEWATERING. Due to the variable nature of groundwater levels and stormwater flows, it will be the Developer’s and the Developer’s contractors and subcontractors responsibility to satisfy themselves with regard to the elevation of groundwater in the area and the level of effort needed to perform dewatering and storm flow routing operations. All dewatering shall be in accordance with all applicable county, state, and federal rules and regulations. DNR regulations regarding appropriations permits shall also be strictly followed. 12. TIME OF PERFORMANCE. The Developer shall install all required public improvements by November 30, 2024, with the exception of the final wear course of asphalt on streets. The final wear course on streets shall be installed between August 15th and October 15th the first summer after the base layer of asphalt has been in place one freeze thaw cycle. The Developer may, however, request an extension of time from the City. If an extension is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost increases and the extended completion date. Final wear course placement outside of this time frame must have the written approval of the City Engineer. 13. LICENSE. The Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the plat to perform all work and inspections deemed appropriate by the City in conjunction with plat development. 14. EROSION CONTROL. Prior to initiating site grading, the erosion control plan, Plan B, shall be implemented by the Developer and inspected and approved by the City. The City may impose additional erosion control requirements if they would be beneficial. All areas disturbed by the grading operations shall be stabilized per the MPCA Stormwater Permit for Construction Activity. Seed shall be in accordance with the City’s current seeding specification which may include temporary seed to provide ground cover as rapidly as possible. All seeded areas shall be fertilized, mulched, and disc anchored as necessary for seed retention. The parties recognize that time is of the essence in controlling erosion. If the Developer does not comply Page 120 of 165 6 230972v5 Preserve of Lakeville Third Addition with the MPCA Stormwater Permit for Construction Activity or with the erosion control plan and schedule or supplementary instructions received from the City, the City may take such action as it deems appropriate to control erosion. The City will endeavor to notify the Developer in advance of any proposed action, but failure of the City to do so will not affect the Developer’s and City’s rights or obligations hereunder. If the Developer does not reimburse the City for any cost the City incurred for such work within ten (10) days, the City may draw down the letter of credit to pay any costs. No development, utility or street construction will be allowed and no building permits will be issued unless the plat is in full compliance with the approved erosion control plan. The Developer is responsible for obtaining a MPCA Construction Permit and updating the SWPPP, including changes during construction, for the duration of the project. The permit requires that all erosion and sediment BMPs be clearly outlined in the project SWPPP. The Developer is responsible for the establishment of native vegetation around all stormwater management basins, along creeks and wetlands within the buffer areas and any disturbed areas (including outlots). Redundant silt fence is required along all wetlands and waterways that do not have an established 50-foot buffer. Additional erosion control measures may be required during construction as deemed necessary by City staff. Any additional measures shall be installed and maintained by the Developer. 15. GRADING. The plat shall be graded in accordance with the approved grading development and erosion control plan, Plan “B”. The plan shall conform to City of Lakeville specifications. Within thirty (30) days after completion of the grading and before the City approves individual building permits (except two (2) model home permits on lots acceptable to the Building Official), the Developer shall provide the City with an “as constructed” grading plan certified by a registered land surveyor or engineer that all storm water treatment/infiltration basins and swales, have been constructed on public easements or land owned by the City. The “as constructed” plan shall include field verified elevations of the following: a) cross sections of storm water treatment/infiltration basins; b) location and elevations along all swales, wetlands, wetland mitigation areas if any, locations and dimensions of borrow areas/stockpiles, and installed “conservation area” posts; and c) lot corner elevations and house pads, and all other items listed in City Code Section 10- Page 121 of 165 7 230972v5 Preserve of Lakeville Third Addition 3-5.NN. The City will withhold issuance of building permits until the approved certified grading plan is on file with the City and all erosion control measures are in place as determined by the City Engineer. The Developer certifies to the City that all lots with house footings placed on fill have been monitored and constructed to meet or exceed FHA/HUD 79G specifications. The soils observation and testing report, including referenced development phases and lot descriptions, shall be submitted to the Building Official for review prior to the issuance of building permits. Before a building permit is issued, a cash escrow of $1,000.00 per lot shall be furnished to the City to guarantee compliance with the erosion control and grading requirements and the submittal of an as-built certificate of survey. Prior to the release of the required individual lot grading and erosion control security that is submitted with the building permit, an as-built certificate of survey for single family lots must be submitted to verify that the final as-built grades and elevations of the specific lot and all building setbacks are consistent with the approved grading plan for the development, and amendments thereto as approved by the City Engineer, and that all required property monuments are in place. If the final grading, erosion control and as-built survey is not timely completed, the City may enter the lot, perform the work, and apply the cash escrow toward the cost. Upon satisfactory completion of the grading, erosion control and as-built survey, the escrow funds, without interest, less any draw made by the City, shall be returned to the person who deposited the funds with the City. Preserve of Lakeville Third Addition contains more than one acre of site disturbance. A National Pollution Discharge Elimination System General Stormwater Permit for construction activity is required from the Minnesota Pollution Control Agency for areas exceeding one acre being disturbed by grading. A copy of the Notice of Stormwater Permit Coverage must be submitted to the City upon receipt from the MPCA. 16. CLEAN UP. The Developer shall clean dirt and debris from streets that has resulted from construction work by the Developer, home builders, subcontractors, their agents or assigns. Prior to any construction in the plat, the Developer shall identify in writing a responsible party and schedule for erosion control, street cleaning, and street sweeping. Page 122 of 165 8 230972v5 Preserve of Lakeville Third Addition 17. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction required by this Contract and final acceptance by the City, the improvements lying within public easements shall become City property without further notice or action. 18. CITY ENGINEERING ADMINISTRATION, CONSTRUCTION OBSERVATION AND AS-BUILT RECORD DRAWING PREPARATION. The Developer shall pay a fee for in-house engineering administration. City engineering administration will include monitoring of construction observation, consultation with Developer and its engineer on status or problems regarding the project, coordination for final inspection and acceptance, project monitoring during the warranty period, and processing of requests for reduction in security. Fees for this service shall be three percent (3%) of construction costs identified in the Summary of Security Requirements if using a letter of credit, assuming normal construction and project scheduling. The Developer shall pay for construction observation and as-built record drawing preparation performed by the City’s in- house engineering staff or consulting engineer. Construction observation shall include part or full time inspection of proposed public utilities and street construction and will be billed on hourly rates estimated to be five percent (5%) of the estimated construction cost. Construction as-built record drawing preparation shall include field surveying, preparation of as-built record drawings and updating the City’s GIS database and will be billed on hourly rates estimated to be one half of a percent (0.5%) of the estimated construction cost. 19. STORM SEWER. Previous additions of The Preserve preliminary plat included the construction of stormwater management basins to provide water quality treatment and rate control of the stormwater runoff generated from Preserve of Lakeville Third Addition. The Developer shall install public storm sewer systems within the subdivision to collect and convey stormwater runoff generated from within the public right-of-way and lots to the public stormwater management basins located within Outlot E, Preserve of Lakeville. Draintile construction is required in areas of non-granular soils within Preserve of Lakeville Third Addition for the street sub-cuts and lots. Any additional draintile construction, including perimeter draintile Page 123 of 165 9 230972v5 Preserve of Lakeville Third Addition required for building footings, which is deemed necessary during construction shall be the Developer’s responsibility to install and finance. The Storm Sewer Charge has not been collected on the parent parcel and must be paid with the Preserve of Lakeville Third Addition final plat, calculated as follows: 375,030.00 s.f. x $0.178/s.f. = $66,755.34 Net Area Preserve of Lakeville Third Addition 2024 Unit Rate (Single-Family) Storm Sewer Charge Preserve of Lakeville Third Addition 20. SANITARY SEWER. The Developer shall construct and extend public sanitary sewer within the subdivision from an existing stub located within Ixonia Avenue, north of the 189th Street intersection. The Developer is responsible for providing the City an appropriately executed temporary construction easement and/or right-of-entry from the property owner of 9940 185th Street (PID No. 22- 01800-81-012), and granting to the City a temporary utility easement over the sanitary sewer located north of the plat boundary so that future sanitary sewer connections do not impact Ixonia Avenue. The Developer is eligible for credit for sanitary sewer improvements extended beyond the plat boundary. The City shall provide the Developer with a $4,200.00 credit applied to the cash requirements. The Sanitary Sewer Availability Charge has not been collected on the parent parcel and shall be paid by the Developer with the final plat. The fee will be based on the current rate in effect at the time of final plat approval, calculated as follows: 20 units x $327.00 = $6,540.00 Total Units Preserve of Lakeville Third Addition 2024 Unit Rate Sanitary Sewer Availability Charge Preserve of Lakeville Third Addition 21. WATERMAIN. The Developer shall extend public watermain within the subdivision from an existing stub located within Ixonia Avenue, north of the 189th Street intersection. The Developer is responsible for providing the City an appropriately executed temporary construction easement and/or right-of-entry from the property owner of 9940 185th Street (PID No. 22- 01800-81-012), and granting to the City a temporary utility easement over the watermain located north of the plat boundary, so that future watermain connections do not impact Ixonia Avenue. Page 124 of 165 10 230972v5 Preserve of Lakeville Third Addition The Developer is eligible for credit for watermain improvements extended beyond the plat boundary. The City shall provide the Developer an $11,650.00 credit applied to the cash requirements. 22. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, utility and street construction shall be from a single construction entrance at 190th Street and Ixonia Avenue. Access to the existing adjacent local roadways shall not be permitted for the development construction, unless approved by the City Engineer. 23. SITE CONDITIONS. The Preserve of Lakeville Third Addition site is vacant and was initially graded with previous additions of The Preserve preliminary plat. 24. IXONIA AVENUE IMPROVEMENTS. The Developer shall remove the temporary cul-de- sac for the roadway extension and restore the temporary easement area with the final plat improvements. The Developer shall install “Future Street” extension signs and barricades at the north end of Ixonia Avenue until the roadway is extended north in the future. The Developer shall grant to the City a temporary turnaround easement in a recordable form approved by the City over the temporary cul-de-sac at the north terminus of Ixonia Avenue. The Developer shall grant to the City a temporary utility easement in a recordable form approved by the City over the sanitary sewer and watermain located north of the plat boundary (north of the Ixonia Avenue terminus) so that future utility connections do not impact any existing public streets. 25. PARKS, TRAILS, AND SIDEWALKS. The Developer shall install five-foot-wide concrete sidewalks, with pedestrian curb ramps along both sides of Ixonia Avenue. The Park Dedication requirement has not been collected on the parent parcel and shall be satisfied by the Developer through a cash contribution with the final plat, calculated as follows: 20 units x $5,774.00 = $115,480.00 Total Units Preserve of Lakeville Third Addition 2024 Unit Rate Park Dedication Fee Preserve of Lakeville Third Addition 26. TRAFFIC CONTROL SIGNS AND STREET LIGHT OPERATION COSTS. The Developer shall pay a cash fee in the amount of $1,450.00 for traffic control signs which is due at the time of final plat Page 125 of 165 11 230972v5 Preserve of Lakeville Third Addition approval. If the street signs are installed during frost conditions, the Developer shall pay an additional $150.00 for each street sign location. The Developer shall pay a cash fee for one-year of streetlight operating expenses at the time of final plat approval, calculated as follows: 20 units x $40.48/unit = $809.60 Total Units Preserve of Lakeville Third Addition 2024 Unit Rate Streetlight Operating Fee Preserve of Lakeville Third Addition 27. ENVIRONMENTAL RESOURCES EXPENSES. The Developer shall pay a cash fee for one-year of environmental resources management expenses at the time of final plat approval, calculated as follows: 20 units x $59.16/unit = $1,183.20 Total Units Preserve of Lakeville Third Addition 2024 Unit Rate Environmental Resources Management Fee Preserve of Lakeville Third Addition 28. LANDSCAPING. Unless the lot already has two (2) trees on it, the Developer or lot purchaser shall plant sufficient trees so that there are at least two (2) trees on every lot in the plat, one of which must be planted in the front yard. Trees that are chosen by the Developer or property owner cannot cause a public nuisance, such as cotton producing trees, or trees that may become a public hazard due to insect infestation or weak bark. The minimum deciduous tree size shall be two and one-half (2½) inches caliper, balled and burlapped. Evergreen trees must be at least eight feet (8’) tall. The trees may not be planted in the right- of-way. The Developer or lot purchaser shall sod the front yard, boulevard, and side yards to the rear of the structure on every lot. Weather permitting, the trees, sod, and seed shall be planted within sixty (60) days after a home has received a certificate of occupancy. Before a building permit is issued, a cash escrow of $1,000.00 per lot shall be furnished the City to guarantee compliance with the landscaping requirements. If the landscaping is not completed in a timely manner, the City may enter the lot, perform the work, and apply the cash escrow toward the cost. Upon satisfactory completion of the landscaping the escrow funds, without interest, less any draw made by the City, shall be returned to the person who deposited the funds with the City. All trees shall be warranted to be alive, of good quality, and disease free for twelve (12) months after planting. Any replacements shall be warranted for twelve (12) months Page 126 of 165 12 230972v5 Preserve of Lakeville Third Addition from the time of planting. The Developer or property owner is responsible for contacting the City when all the landscaping has been installed to set up an inspection. Fifty percent (50%) of the security will be released when all the landscaping has been installed and inspected by City staff and the remaining fifty percent (50%) will be released one year after the landscaping inspection and any warranty work has been completed. All trees shall be warranted to be alive, of good quality, and disease free for twelve (12) months after planting. Any replacements shall be warranted for twelve (12) months from the time of planting. The Developer or property owner is responsible for contacting the City when all the landscaping has been installed to set up an inspection. 29. TREE PRESERVATION. The Preserve of Lakeville Third Addition was initially graded with previous additions of The Preserve preliminary plat. The plan is consistent with the approved preliminary tree preservation plan. The Developer shall install measures to protect significant trees as identified in the City’s Tree Preservation Ordinance. Any tree designated as “save” that is damaged or removed requires replacement at a ratio of 2:1 per the City’s Subdivision Ordinance. The Developer will post security for tree preservation for each lot containing a tree designated as “save”, calculated as follows: Block 2: Lots 1, 2, 3 and 4; and Block 3: Lots 1-12 (16 total lots) 16 Lots/Outlots x $1,500 = $24,000 Total Units Preserve of Lakeville Third Addition 2024 Unit Rate Tree Preservation Security Preserve of Lakeville Third Addition 30. WETLAND. The wetland delineation and replacement plan were approved with Preserve of Lakeville. There are no additional impacts associated with Preserve of Lakeville Third Addition. All wetlands, wetland buffers, stormwater management basins and natural areas have been deeded to the City as outlots with previous additions of The Preserve preliminary plat. The Developer shall install Natural Area signs (14 locations) at locations approved by City staff along adjacent property lines (prior to installation). 31. SPECIAL PROVISIONS. The following special provisions shall apply to plat development: Page 127 of 165 13 230972v5 Preserve of Lakeville Third Addition A. Implementation of the recommendations listed in the April 26, 2024, Planning Report, and May 1, 2024, Engineering Report. B. Prior to City Council approval of the final plat, the Developer shall furnish a boundary survey of the proposed property to be platted with all property corner monumentation in place and marked with lath and a flag. Any encroachments on or adjacent to the property shall be noted on the survey. The Developer shall post a $2,000.00 security for the final placement of interior subdivision iron monuments at property corners. The security was calculated as follows: 20 lots/outlots at $100.00 per lot/outlot. The security will be held by the City until the Developer's land surveyor certifies that all irons have been set following site grading and utility and street construction. In addition, the certificate of survey must also include a certification that all irons for a specific lot have either been found or set prior to the issuance of a building permit for that lot. C. The Developer shall pay a cash fee for the preparation of addressing, property data, and City base map updating. This fee is $90.00 per lot/outlot for a total charge of $1,800.00. D. The Developer shall be responsible for the cost of street light installation consistent with a street lighting plan approved by the City. Before the City signs the final plat, the Developer shall post a security for street light installation consistent with the approved plan. The estimated amount of this security is $3,800.00 and consists of two (2) post-top street lights at $1,200.00, and one (1) mast arm light at $1,400.00 each. E. The Developer is required to submit the final plat in electronic format. The electronic format shall be either AutoCAD.DWG file or a .DXF file. All construction record drawings (e.g., grading, utilities, streets) shall be in electronic format in accordance with standard City specifications. 32. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the terms of this Contract, payment of real estate taxes including interest and penalties, payment of special assessments, payment of the costs of all public improvements, and construction of all public improvements, the Developer shall furnish the City with a cash escrow, or letter of credit, in the form attached hereto, from a bank ("security") for $1,069,513.31. The amount of the security was calculated as follows: Page 128 of 165 14 230972v5 Preserve of Lakeville Third Addition CONSTRUCTION COSTS: A. Sanitary Sewer $178,296.70 B. Watermain 151,729.50 C. Storm Sewer 145,716.70 D. Streets 425,289.50 E. Erosion Control and Restoration 29,562.50 CONSTRUCTION SUB-TOTAL $930,594.90 OTHER COSTS: A. Developer’s Design (3.0%) $27,917.85 B. Developer’s Construction Survey (2.5%) 23,264.87 C. City Legal Expenses (Est. 0.5%) 4,652.97 D. City Construction Observation (Est. 5.0%) 46,529.75 E. City Record Drawings (0.5%) 4,652.97 F. Natural Area Signs (14 Locations) 2,100.00 G. Tree Preservation 24,000.00 H. Street Lights 3,800.00 I. Lot Corners/Iron Monuments 2,000.00 OTHER COSTS SUB-TOTAL $138,918.41 TOTAL SECURITIES: $1,069,513.31 This breakdown is for historical reference; it is not a restriction on the use of the security. The bank shall be subject to the approval of the City Administrator. The City may draw down the security, on five (5) business days written notice to the Developer, for any violation of the terms of this Contract or without notice if the security is allowed to lapse prior to the end of the required term. If the required public improvements are not completed at least thirty (30) days prior to the expiration of the security, the City may also draw it down without notice. If the security is drawn down, the proceeds shall be used to cure the default. Upon receipt of proof satisfactory to the City that work has been completed and financial obligations to the City have been satisfied, with City approval the security may be reduced from time to time by ninety percent (90%) of the financial obligations that have been satisfied. Ten percent (10%) of the amounts certified by the Developer's engineer shall be retained as security until all improvements have been completed, all Page 129 of 165 15 230972v5 Preserve of Lakeville Third Addition financial obligations to the City satisfied, the required "as constructed" plans have been received by the City, a warranty security is provided, and the public improvements are accepted by the City Council. The City’s standard specifications for utility and street construction outline procedures for security reductions. 33. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash requirements under this Contract which must be furnished to the City prior to the City Council signing the final plat: A. Park Dedication 115,480.00 B. Sanitary Sewer Availability Charge 6,540.00 C. Storm Sewer Charge 66,755.34 D. Traffic Control Signs 1,450.00 E. Street Light Operating Fee 809.60 F. Environmental Resources Expenses 1,183.20 G. City Base Map Updating 1,800.00 H. City Engineering Administration (3% for letters of credit) 27,917.85 TOTAL CASH REQUIREMENTS $221,935.99 CREDITS TO CASH REQUIREMENTS Sanitary Sewer Improvements (Sanitary Sewer Fund) $4,200.00 Watermain Improvements (Water Fund) 11,650.00 SUBTOTAL - CREDITS TO THE CASH REQUIREMENTS $15,850.00 TOTAL CASH REQUIREMENTS $206,085.99 34. WARRANTY. The Developer warrants all improvements required to be constructed by it pursuant to this Contract against poor material and faulty workmanship. The warranty period for streets is one year. The warranty period for underground utilities is two years and shall commence following completion and acceptance by the City. The one year warranty period on streets shall commence after the final wear course has been installed and accepted by the City. The Developer shall post maintenance bonds in the amount of twenty-five percent (25%) of final certified construction costs to secure the warranties. The City shall retain ten percent (10%) of the security posted by the Developer until the maintenance bonds are furnished to the City or until the warranty period expires, whichever first occurs. The retainage may be used Page 130 of 165 16 230972v5 Preserve of Lakeville Third Addition to pay for warranty work. The City’s standard specifications for utility and street construction identify the procedures for final acceptance of streets and utilities. 35. RESPONSIBILITY FOR COSTS. A. Except as otherwise specified herein, the Developer shall pay all costs incurred by it or the City in conjunction with the development of the plat, including but not limited to Soil and Water Conservation District charges, legal, planning, engineering and construction observation inspection expenses incurred in connection with approval and acceptance of the plat, the preparation of this Contract, review of construction plans and documents, and all costs and expenses incurred by the City in monitoring and inspecting development of the plat. B. The Developer shall hold the City and its officers, employees, and agents harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from plat approval and development. The Developer shall indemnify the City and its officers, employees, and agents for all costs, damages, or expenses which the City may pay or incur in consequence of such claims, including attorneys' fees. C. The Developer shall reimburse the City for costs incurred in the enforcement of this Contract, including engineering and attorneys' fees. D. The Developer shall pay, or cause to be paid when due, and in any event before any penalty is attached, all special assessments referred to in this Contract. This is a personal obligation of the Developer and shall continue in full force and effect even if the Developer sells one or more lots, the entire plat, or any part of it. E. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Contract within thirty (30) days after receipt. If the bills are not paid on time, the City may halt plat development and construction until the bills are paid in full. Bills not paid within thirty (30) days shall accrue interest at the rate of eighteen percent (18%) per year. Additionally, the Developer shall pay in full all bills submitted to it by the City prior to any reductions in the security for the development. Page 131 of 165 17 230972v5 Preserve of Lakeville Third Addition F. In addition to the charges and special assessments referred to herein, other charges and special assessments may be imposed such as but not limited to City or MCES sewer availability charges ("SAC"), City water connection charges, City sewer connection charges, and building permit fees. 36. DEVELOPER’S DEFAULT. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall promptly reimburse the City for any expense incurred by the City, provided the Developer, except in an emergency as determined by the City, is first given notice of the work in default, not less than forty-eight (48) hours in advance. This Contract is a license for the City to act, and it shall not be necessary for the City to seek a Court order for permission to enter the land. When the City does any such work, the City may, in addition to its other remedies, assess the cost in whole or in part. 37. MISCELLANEOUS. A. The Developer represents to the City that the plat complies with all city, county, metropolitan, state, and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that the plat does not comply, the City may, at its option, refuse to allow construction or development work in the plat until the Developer does comply. Upon the City's demand, the Developer shall cease work until there is compliance. B. Third parties shall have no recourse against the City under this Contract. C. Breach of the terms of this Contract by the Developer shall be grounds for denial of building permits, including lots sold to third parties. D. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Contract is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Contract. E. Grading, curbing, and one lift of asphalt shall be installed on all public and private streets prior to issuance of any building permits, except two (2) model homes on lots acceptable to the Building Page 132 of 165 18 230972v5 Preserve of Lakeville Third Addition Official. Approval of an administrative permit in compliance with Chapter 27 of the City’s zoning ordinance is required prior to the construction of any model homes. F. If building permits are issued prior to the acceptance of public improvements, the Developer assumes all liability and costs resulting in delays in completion of public improvements and damage to public improvements caused by the City, Developer, its contractors, subcontractors, material men, employees, agents, or third parties. No sewer and water connections or inspections may be conducted and no one may occupy a building for which a building permit is issued on either a temporary or permanent basis until the streets needed for access have been paved with a bituminous surface and the utilities are accepted by the City Engineer. G. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Contract. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Contract shall not be a waiver or release. H. This Contract shall run with the land and may be recorded against the title to the property. In the event this Contract is recorded, upon request by Developer, the City covenants to provide a recordable Certificate of Completion within a reasonable period of time following the request, upon the completion of the work and responsibilities required herein, payment of all costs and fees required and compliance with all terms of the Contract. A release of this Contract may be provided in the same manner and subject to the same conditions as a Certificate of Completion provided there are no outstanding or ongoing obligations of Developer under the terms of this Contract. The Developer covenants with the City, its successors and assigns, that the Developer is well seized in fee title of the property being final platted and/or has obtained consents to this Contract, in the form attached hereto, from all parties who have an interest in the property; that there are no unrecorded interests in the property being final platted; and that the Developer will indemnify and hold the City harmless for any breach of the foregoing covenants. Page 133 of 165 19 230972v5 Preserve of Lakeville Third Addition I. Insurance. Developer and Contractor shall provide a copy of the Development Contract to their insurance professional for verification that the certificate of insurance is in compliance with the requirements of the Development Contract. Prior to execution of the final plat, Developer and its general contractor shall furnish to the City a certificate of insurance showing proof of the required insurance required under this Paragraph. Developer and its general contractor shall take out and maintain or cause to be taken out and maintained until six (6) months after the City has accepted the public improvements, such insurance as shall protect Developer and its general contractor and the City for work covered by the Contract including workers’ compensation claims and property damage, bodily and personal injury which may arise from operations under this Contract, whether such operations are by Developer and its general contractor or anyone directly or indirectly employed by either of them. The minimum amounts of insurance shall be as follows: Commercial General Liability (or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile Liability $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Including Owned, Hired & Non-Owned Automobiles Workers Compensation Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Employer’s Liability 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 The Developer’s and general contractor’s insurance must be “Primary and Non-Contributory”. Page 134 of 165 20 230972v5 Preserve of Lakeville Third Addition All insurance policies (or riders) required by this Contract shall be (i) taken out by and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall name the City, its employees and agents as additional insureds (CGL and umbrella only) by endorsement which shall be filed with the City and (iii) shall identify the name of the plat. A copy of the endorsement must be submitted with the certificate of insurance. Developer’s and general contractor’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, or ten (10) days’ notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Developer’s or general contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by this Contract. J. Indemnification. To the fullest extent permitted by law, Developer agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of Developer’s negligence or its performance or failure to perform its obligations under this Contract. Developer’s indemnification obligation shall apply to Developer’s general contractor, subcontractor(s), or anyone directly or indirectly employed or hired by Developer, or anyone for whose acts Developer may be liable. Developer agrees this indemnity obligation shall survive the completion or termination of this Contract. K. Each right, power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order Page 135 of 165 21 230972v5 Preserve of Lakeville Third Addition as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. L. The Developer may not assign this Contract without the written permission of the City Council. The Developer's obligation hereunder shall continue in full force and effect even if the Developer sells one or more lots, the entire plat, or any part of it, until the City’s issuance of a Certificate of Completion and Release. M. Retaining walls that require a building permit shall be constructed in accordance with plans and specifications prepared by a structural or geotechnical engineer licensed by the State of Minnesota. Following construction, a certification signed by the design engineer shall be filed with the Building Official evidencing that the retaining wall was constructed in accordance with the approved plans and specifications. All retaining walls identified on the development plans and by special conditions referred to in this Contract shall be constructed before any other building permit is issued for a lot on which a retaining wall is required to be built. N. Should the Developer convey any lot or lots in the Development to a third party, the City and the owner of that lot or those lots may amend this Development Contract or other city approvals or agreements for development or use of those lots without the approval or consent of the Developer or other lot owners in the Development. Private agreements between the owners of lots within the Development for shared service or access and related matters necessary for the efficient use of the Development shall be the responsibility of the lot owners and shall not bind or restrict City authority to approve applications from any lot owner in the Development. 38. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at the following address: 21025 Edmonton Avenue, Farmington, MN 55024. Notices to the City shall be in writing and shall be either hand delivered to the City Administrator, or mailed to the City by certified mail in care of the City Administrator at the following address: Lakeville City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota 55044. Page 136 of 165 22 230972v5 Preserve of Lakeville Third Addition CITY OF LAKEVILLE BY: ___________________________________________ Luke M. Hellier, Mayor (SEAL) AND __________________________________________ Ann Orlofsky, City Clerk STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2024, by Luke M. Hellier and by Ann Orlofsky, the Mayor and City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. ______________________________________________ NOTARY PUBLIC Page 137 of 165 Page 138 of 165 Page 139 of 165 Page 140 of 165 EXHIBIT CPage 141 of 165 Date: 6/3/2024 Resolution Approving Charitable Gambling Lakeville Lions Proposed Action Staff recommends adoption of the following motion: Move to approve a resolution granting approval to Lakeville Lions to conduct off-site gambling at the Lakeville Area Arts Center for Pan-O-Prog. Overview The Lakeville Lions have applied to the State of Minnesota Gambling Control Board to conduct pull-tabs at the Lakeville Area Arts Center, 20965 Holyoke Avenue, from July 11 to July 13, 2024. The application requires a resolution of approval by the City Council. Lakeville Lions is a qualified organization that meets all city and state requirements for lawful gambling. Supporting Information None Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: A Sense of Community and Belonging Report Completed by: Ann Orlofsky, City Clerk Page 142 of 165 CITY OF LAKEVILLE RESOLUTION NO._________ RESOLUTION APPROVING CHARITABLE GAMBLING LAKEVILLE LIONS WHEREAS, the City of Lakeville received an application from the Lakeville Lions to conduct off-site gambling at the Lakeville Area Arts Center for the Pan-O-Prog and WHEREAS, the Lakeville Lions is a qualified organization. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeville grants approval to the Lakeville Lions to conduct off-site gambling on July 11 - July 13, 2024, at the Lakeville Area Arts Center, 20965 Holyoke Avenue, for Pan-O-Prog. DATED this 3rd day of June 2024. CITY OF LAKEVILLE _________________________ Luke M Hellier, Mayor _________________________ Ann Orlofsky, City Clerk Page 143 of 165 Date: 6/3/2024 Public Hearing and Resolution for Welllhead Protection Plan Proposed Action Staff recommends adoption of the following motion: Move to approve adoption of the wellhead protection plan Overview At the April 15, 2024 City Council meeting staff discussed the draft Wellhead protection plan. Since the April 15th Council meeting no additional comments have been received. Wellhead Protection Plans (WHPP) are required under the Federal Safe Drinking Water Act and Minnesota Wellhead Protection Rules (Minnesota Rules 4720.5100-4720.5590). In Minnesota, wellhead protection plans are prepared in two parts and the rules require that WHPPs be amended at least every 10 years. Part 1 of a Wellhead Protection Plan includes the following: • Identification of the portion of an aquifer from which a public water supply well captures water within 10 years. The boundary of this area shown on a map is called the Wellhead Protection Area (WHPA). If a system, such as Lakeville’s, has multiple water supply wells, a WHPA is delineated for each well and the areas are combined to form a composite WHPA. • Delineation of an area defined by geographically identifiable boundaries that encompasses a WHPA. This area is called the Drinking Water Supply Management Area (DWSMA). • Classification of well and aquifer vulnerability, which indicate the potential for a well or aquifer to be impacted by contamination from the surface. • Well vulnerability is classified based on well construction, geology penetrated by the well, and water quality in the well. • Aquifer vulnerability is classified based on geology present within the DWSMA, how long it takes for water to move from the surface into the aquifer, and water quality in the aquifer. An open house for Part 1 of the Wellhead Protection plan was held on October 25, 2022 and the plan completed in 2023. Part 2 of the Wellhead Protection Plan has been drafted and includes the following: Page 144 of 165 • A potential contaminant source inventory (PCSI) within the DWSMA. • This inventory identifies potential contaminant source such as petroleum or chemical storage tanks, known contaminant spill locations, known dump sites, waste or wastewater disposal locations, hazardous waste generators, wells, and more. • Land use issues, problems, or opportunities that may affect the quantity or quality of water in the aquifer used by the public water supply wells. • The City’s water emergency and conservation plan. • A city’s existing conservation plans (e.g., outdoor water use restrictions in the summer) are incorporated into the Wellhead Protection Plan. • Management actions to address potential contaminant sources in the DWSMA that pose a risk to the aquifer and the public water supply. The Wellhead Protection Plan also includes an implementation schedule for the management actions. The Wellhead Protection plan, Part 2 can be found on the City’s website, Wellhead Protection. Staff is requesting a public hearing be held to obtain any additional comments and approval of the wellhead protection plan is recommended. Supporting Information 1. Resolution Financial Impact: N/A Budgeted: Yes Source: N/A Envision Lakeville Community Values: Safety Throughout the Community Report Completed by: Paul Oehme, Public Works Director Page 145 of 165 CITY OF LAKEVILLE RESOLUTION NO. 24- Resolution Approving the Wellhead Protection Plan WHEREAS, Wellhead Protection Plans (WHPP) are required under the Federal Safe Drinking Water Act and Minnesota Wellhead Protection Rules (Minnesota Rules 4720.5100- 4720.5590); and WHEREAS, the Wellhead Protection Plan is designed to protect the groundwater aquifers that supply the Lakeville municipal drinking water wells; and WHEREAS, Wellhead protection is a way to prevent drinking water from becoming polluted by identifying potential sources of contamination in the area which supplies water to a public well and managing the identified potential sources of the contamination; and WHEREAS, the goal of this plan is to help ensure that Lakeville continues to provide its residents with a safe and abundant supply of clean drinking water for generations to come.; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota approves the Wellhead Protection Plan. ADOPTED by the Lakeville City Council this 3rd day of June 2024 CITY OF LAKEVILLE ______________________________ Luke M. Hellier, Mayor ATTEST: _________________________________ Ann Orlofsky, City Clerk Page 146 of 165 Date: 6/3/2024 Resolutions Adopting Assessments, Awarding Construction Contract and Authorizing Funding; and Supplemental Agreements for Professional Services for Ipava Avenue, Indiana Avenue and 175th Street Improvements Proposed Action Staff recommends adoption of the following motion: Move to approve 1) resolution adopting assessments; 2) resolution awarding contract to OMG Midwest Inc.; 3) resolution authorizing funding and 2024 budget amendments and transfers; and 4) supplemental agreements for professional services for Ipava Avenue, Indiana Avenue, and 175th Street Improvements, City Project 24-03. Overview The Ipava Avenue, Indiana Avenue and 175th Street Improvements project is partially funded with property tax levies, of which a portion is financed through assessments to benefiting property owners. Pursuant to the requirements of Minnesota Statues, Chapter 429 for local improvements, two public hearings are required. The City Council held the first public hearing (improvement hearing) on December 4, 2023. Notice of the second public hearing (assessment hearing) was published and mailed to affected property owners. Staff will share a presentation providing a summary of the Ipava Avenue, Indiana Avenue and 175th Street Improvements project including project cost, description of the assessment area, amount to be assessed and overview of the City's adopted Assessment Policy. On Thursday, April 11, 2024, the City received four bids for City Project 24-03 ranging from a low bid of $2,169,252.35 submitted by OMG Midwest to a high bid of $2,824,283.06. The engineer's construction estimate was $2,675,747.55. The total estimated project cost is $2,630,353; funding sources are named in the attached Project Financing. Bolton & Menk and Braun Intertec supplemental agreements identify the scope of services and estimated costs to provide construction services (construction staking, materials testing) to deliver the project. The supplemental agreements are subject to the Master Services Agreements dated September 20, 2021. Supporting Information 1. Resolution Adopting Assessments 2. Final Assessment Roll 3. Resolution Awarding Construction Contract 4. Bid Summary 5. Resolution Authorizing Funding and 2024 Budget Amendments and Transfers 6. Project Financing Page 147 of 165 7. Bolton & Menk Supplemental Agreement 8. Braun Intertec Supplemental Agreement Financial Impact: $2,630,353 Budgeted: Yes Source: Multiple Sources Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Alanna Sobottka, Civil Engineer Page 148 of 165 CITY OF LAKEVILLE RESOLUTION NO. 24- Resolution Adopting Assessments for City Project 24-03 Ipava Avenue and Indiana Avenue Improvements WHEREAS, pursuant to proper notice duly given as required by law, the City Council has met, heard, and passed upon all objections to the proposed assessment for Ipava Avenue Improvements (from Indiana Avenue to 185th Street) and Indiana Avenue Improvements (from Ipava Avenue to Dodd Boulevard), City Project 24-03. NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota: 1. Such proposed assessments in a total amount of $40,842.00, copies of which are attached hereto and made a part hereof, are hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included in the hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessments shall be considered payable in equal annual principal installments over a period of ten (10) years for No. 221431, the first of the installments to be payable on or before the first Monday in January 2025. The assessments shall bear interest at the rate of 3.00% percent per annum from November 16, 2024. To the first installment shall be added interest on the entire assessment from November 16, 2024 until December 31, 2025. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. The owner of any property may, prior to certification of the assessment to the county auditor, pay the whole or portion of the assessment on such property. No interest will be charged if the entire assessment is paid by November 15, 2024. No partial payments will be accepted after November 15, 2024. Payments made between November 16, 2024 and December 15, 2024 will include daily interest accrued from November 16 to the date of the payment. The first-year installment payments will be due with taxes payable 2025 and will include interest accrued from November 16, 2024 – December 31, 2025. The property owner may at any time pay the entire amount of the assessment remaining unpaid. 4. The clerk shall forthwith transmit a certified duplicate of this assessment to the county auditor to be extended on the property tax lists of the county. Such assessments shall be collected and paid over in the same manner as other municipal taxes. ADOPTED by the Lakeville City Council this 3rd day of June 2024. ______________________________ Luke M. Hellier, Mayor Ann Orlofsky, City Clerk Page 149 of 165 Project Name:Ipava Avenue and Indiana Avenue Improvements Date:5/1/2024 City Project No.24-03 Project Location: BUSINESS NAME ASSESSMENT CLASS 1 22-44425-01-010 Independent School District 194 17630 JUNIPER PATH STE A LAKEVILLE MN 55044 18610 IPAVA AVE Independent School District 194 F.F.1,239 32.96$ 40,842.00$ Final Assessment Roll Ipava Avenue and Indiana Avenue Improvements CALCULATED ASSESSMENT Ipava Avenue from Indiana Avenue to 185th Street Indiana Avenue from Ipava Avenue to Dodd Boulevard STREET AND STORM SEWER ASSESSEMENT MAP ID PID FEE OWNER FEE OWNER ADDRESS CITY/STATE/ZIP CODE PROPERTY NUMBER PROPERTY STREET FRONT FEET RATE Page 150 of 165 CITY OF LAKEVILLE RESOLUTION NO. 24- Resolution Awarding Contract for Ipava Avenue, Indiana Avenue and 175th Street Improvements City Project 24-03 WHEREAS, the City of Lakeville received sealed bids on Thursday, April 11, 2024, at 10:30 a.m. for Ipava Avenue, Indiana Avenue and 175th Street Improvements, City Project 24-03; and WHEREAS, the lowest responsible bid was from OMG Midwest, Inc. dba Minnesota Paving & Materials. NOW, THEREFORE, BE IT RESOLVED that the City Council of Lakeville, Minnesota: Hereby award the contract to the lowest responsible bidder that meets all the bid requirements, OMG Midwest, Inc. dba Minnesota Paving & Materials, with a bid in the amount of $2,169,252.35. The construction is proposed to be completed as specified in the contract documents. ADOPTED by the Lakeville City Council this 3rd day of June 2024. ______________________________ Luke M. Hellier, Mayor Ann Orlofsky, City Clerk Page 151 of 165 Base Bid Avgerage Average Item Description Estimated Unit Total Unit Total Unit Total Unit Total Unit Total Unit Total # Quantity Units Price Price Price Price Price Price Price Price Price Price Price Price 1 MOBILIZATION 1 LUMP SUM $155,000.00 $155,000.00 $53,963.96 $53,963.96 $89,800.00 $89,800.00 $89,584.00 $89,584.00 $265,000.00 $265,000.00 $124,586.99 $124,586.99 2 CLEARING 25 TREE $350.00 $8,750.00 $501.47 $12,536.75 $199.50 $4,987.50 $190.00 $4,750.00 $526.00 $13,150.00 $354.24 $8,856.06 3 GRUBBING 25 TREE $150.00 $3,750.00 $250.73 $6,268.25 $157.50 $3,937.50 $150.00 $3,750.00 $263.00 $6,575.00 $205.31 $5,132.69 4 REMOVE SIGN 17 EACH $500.00 $8,500.00 $25.07 $426.19 $26.25 $446.25 $25.00 $425.00 $42.00 $714.00 $29.58 $502.86 5 SALVAGE SIGN 20 EACH $150.00 $3,000.00 $25.07 $501.40 $26.25 $525.00 $25.00 $500.00 $42.00 $840.00 $29.58 $591.60 6 REMOVE CURB & GUTTER 4593 LIN FT $8.00 $36,744.00 $12.89 $59,203.77 $9.26 $42,531.18 $9.16 $42,071.88 $11.00 $50,523.00 $10.58 $48,582.46 7 SAWING CONCRETE PAVEMENT (FULL DEPTH) 544 LIN FT $4.00 $2,176.00 $4.12 $2,241.28 $1.00 $544.00 $3.50 $1,904.00 $5.00 $2,720.00 $3.41 $1,852.32 8 SAWING BITUMINOUS PAVEMENT (FULL DEPTH) 2016 LIN FT $3.00 $6,048.00 $3.07 $6,189.12 $1.00 $2,016.00 $2.50 $5,040.00 $2.00 $4,032.00 $2.14 $4,319.28 9 REMOVE CONCRETE MEDIAN 290 SQ YD $12.00 $3,480.00 $12.86 $3,729.40 $16.00 $4,640.00 $15.12 $4,384.80 $17.00 $4,930.00 $15.25 $4,421.05 10 REMOVE CONCRETE PAVEMENT 40 SQ YD $12.00 $480.00 $20.86 $834.40 $25.00 $1,000.00 $0.01 $0.40 $22.00 $880.00 $16.97 $678.70 11 REMOVE BITUMINOUS PAVEMENT 920 SQ YD $8.00 $7,360.00 $10.02 $9,218.40 $9.00 $8,280.00 $3.75 $3,450.00 $15.00 $13,800.00 $9.44 $8,687.10 12 EXCAVATION - COMMON 3340 CU YD $30.00 $100,200.00 $25.00 $83,500.00 $34.00 $113,560.00 $11.47 $38,309.80 $34.00 $113,560.00 $26.12 $87,232.45 13 EXCAVATION - SUBGRADE CORRECTION 916 CU YD $30.00 $27,480.00 $38.00 $34,808.00 $23.00 $21,068.00 $26.11 $23,916.76 $45.00 $41,220.00 $33.03 $30,253.19 14 RECLAIMED AGGREGATE BASE (SUBGRADE CORRECTION) 916 CU YD $10.00 $9,160.00 $30.00 $27,480.00 $18.00 $16,488.00 $8.54 $7,822.64 $23.00 $21,068.00 $19.89 $18,214.66 15 EXPLORATORY EXCAVATION 35 HOUR $430.00 $15,050.00 $389.27 $13,624.45 $225.00 $7,875.00 $253.37 $8,867.95 $391.00 $13,685.00 $314.66 $11,013.10 16 FINISH GRADING 26670 SQ YD $1.00 $26,670.00 $1.05 $28,003.50 $1.20 $32,004.00 $1.85 $49,339.50 $2.00 $53,340.00 $1.53 $40,671.75 17 COMMON LABORERS 75 HOUR $90.00 $6,750.00 $45.35 $3,401.25 $50.00 $3,750.00 $80.00 $6,000.00 $100.00 $7,500.00 $68.84 $5,162.81 18 STREET SWEEPER (WITH PICKUP BROOM) 75 HOUR $175.00 $13,125.00 $106.98 $8,023.50 $75.00 $5,625.00 $192.00 $14,400.00 $100.00 $7,500.00 $118.50 $8,887.13 19 WATER 300 MGAL $45.00 $13,500.00 $31.59 $9,477.00 $10.00 $3,000.00 $62.50 $18,750.00 $56.00 $16,800.00 $40.02 $12,006.75 20 FULL DEPTH RECLAMATION (12") 26670 SQ YD $4.50 $120,015.00 $1.30 $34,671.00 $2.10 $56,007.00 $1.66 $44,272.20 $2.00 $53,340.00 $1.77 $47,072.55 21 MILL BITUMINOUS SURFACE (2.0") 31560 SQ YD $2.00 $63,120.00 $1.52 $47,971.20 $1.40 $44,184.00 $2.18 $68,800.80 $3.00 $94,680.00 $2.03 $63,909.00 22 MILL BITUMINOUS SURFACE - SUBGRADE CORRECTION 3156 SQ YD $3.50 $11,046.00 $4.58 $14,454.48 $3.00 $9,468.00 $30.44 $96,068.64 $28.00 $88,368.00 $16.51 $52,089.78 23 MILL AND PATCH BITUMINOUS PAVEMENT 510 SQ YD $27.00 $13,770.00 $69.00 $35,190.00 $65.00 $33,150.00 $35.23 $17,967.30 $49.00 $24,990.00 $54.56 $27,824.33 24 BITUMINOUS MATERIAL FOR TACK COAT 30286 GAL $3.00 $90,858.00 $0.01 $302.86 $0.01 $302.86 $0.01 $302.86 $0.01 $302.86 $0.01 $302.86 25 TYPE SP 9.5 WEARING COURSE MIXTURE (3,C) 6430 TON $85.00 $546,550.00 $81.00 $520,830.00 $76.00 $488,680.00 $85.85 $552,015.50 $85.00 $546,550.00 $81.96 $527,018.88 26 TYPE SP 12.5 NON WEARING COURSE MIXTURE (3,C) 3690 TON $95.00 $350,550.00 $81.00 $298,890.00 $76.00 $280,440.00 $78.46 $289,517.40 $80.00 $295,200.00 $78.87 $291,011.85 27 IRRIGATION SYSTEM REPAIR 35 EACH $350.00 $12,250.00 $100.29 $3,510.15 $300.00 $10,500.00 $400.00 $14,000.00 $285.00 $9,975.00 $271.32 $9,496.29 28 4" CONCRETE MEDIAN 4970 SQ FT $10.00 $49,700.00 $6.08 $30,217.60 $7.00 $34,790.00 $8.20 $40,754.00 $8.00 $39,760.00 $7.32 $36,380.40 29 CONCRETE CURB AND GUTTER DESIGN B618 5290 LIN FT $36.00 $190,440.00 $36.44 $192,767.60 $33.00 $174,570.00 $37.13 $196,417.70 $36.00 $190,440.00 $35.64 $188,548.83 30 CONCRETE MEDIAN NOSE 2 EACH $1,500.00 $3,000.00 $2,279.19 $4,558.38 $760.00 $1,520.00 $500.00 $1,000.00 $2,640.00 $5,280.00 $1,544.80 $3,089.60 31 7" CONCRETE APRON 40 SQ FT $20.00 $800.00 $26.34 $1,053.60 $12.00 $480.00 $16.07 $642.80 $29.00 $1,160.00 $20.85 $834.10 32 TRAFFIC CONTROL 1 LUMP SUM $50,000.00 $50,000.00 $24,822.81 $24,822.81 $29,000.00 $29,000.00 $50,000.00 $50,000.00 $75,000.00 $75,000.00 $44,705.70 $44,705.70 33 INSTALL SIGN 20 EACH $750.00 $15,000.00 $200.59 $4,011.80 $210.00 $4,200.00 $210.00 $4,200.00 $237.00 $4,740.00 $214.40 $4,287.95 34 RIGID PVC LOOP DETECTOR 6' X 6' 11 EACH $1,250.00 $13,750.00 $1,394.09 $15,334.99 $1,350.00 $14,850.00 $1,390.00 $15,290.00 $1,460.00 $16,060.00 $1,398.52 $15,383.75 35 EROSION CONTROL SUPERVISOR 1 LUMP SUM $5,000.00 $5,000.00 $6,720.01 $6,720.01 $1,500.00 $1,500.00 $500.00 $500.00 $1,500.00 $1,500.00 $2,555.00 $2,555.00 36 STORM DRAIN INLET PROTECTION 114 EACH $150.00 $17,100.00 $201.33 $22,951.62 $216.00 $24,624.00 $150.00 $17,100.00 $0.01 $1.14 $141.84 $16,169.19 37 SEDIMENT CONTROL LOG TYPE STRAW 2400 LIN FT $4.00 $9,600.00 $3.04 $7,296.00 $4.50 $10,800.00 $2.95 $7,080.00 $3.00 $7,200.00 $3.37 $8,094.00 38 SILT FENCE TYPE MS 5214 LIN FT $3.00 $15,642.00 $2.53 $13,191.42 $3.70 $19,291.80 $2.60 $13,556.40 $2.00 $10,428.00 $2.71 $14,116.91 39 COMMON TOPSOIL BORROW 780 CU YD $45.00 $35,100.00 $49.77 $38,820.60 $52.00 $40,560.00 $71.46 $55,738.80 $55.00 $42,900.00 $57.06 $44,504.85 40 FERTILIZER TYPE 3 40 POUND $1.00 $40.00 $2.03 $81.20 $2.81 $112.40 $2.25 $90.00 $2.10 $84.00 $2.30 $91.90 41 SEED MIX TYPE 1 SPECIAL 380 POUND $10.00 $3,800.00 $6.18 $2,348.40 $6.75 $2,565.00 $5.70 $2,166.00 $6.20 $2,356.00 $6.21 $2,358.85 42 HYDRAULIC BONDED FIBER MATRIX 3290 POUND $1.00 $3,290.00 $1.91 $6,283.90 $7.50 $24,675.00 $1.30 $4,277.00 $2.00 $6,580.00 $3.18 $10,453.98 43 RAPID STABILIZATION METHOD 3 4 MGAL $750.00 $3,000.00 $800.25 $3,201.00 $1.38 $5.52 $625.00 $2,500.00 $832.00 $3,328.00 $564.66 $2,258.63 44 12" SOLID LINE - LATEX 21 LIN FT $3.00 $63.00 $2.51 $52.71 $2.62 $55.02 $2.70 $56.70 $2.60 $54.60 $2.61 $54.76 45 24" SOLID LINE - LATEX 169 LIN FT $4.00 $676.00 $3.76 $635.44 $3.94 $665.86 $3.20 $540.80 $3.80 $642.20 $3.68 $621.08 46 4" BROKEN LINE - LATEX 3702 LIN FT $0.15 $555.30 $0.25 $925.50 $0.26 $962.52 $0.25 $925.50 $0.27 $999.54 $0.26 $953.27 47 4" DOUBLE SOLID LINE - LATEX 4393 LIN FT $0.65 $2,855.45 $0.50 $2,196.50 $0.52 $2,284.36 $0.50 $2,196.50 $0.52 $2,284.36 $0.51 $2,240.43 48 4" SOLID LINE - LATEX 7538 LIN FT $0.35 $2,638.30 $0.25 $1,884.50 $0.26 $1,959.88 $0.25 $1,884.50 $0.27 $2,035.26 $0.26 $1,941.04 49 6" SOLID LINE - LATEX 98 LIN FT $1.00 $98.00 $1.00 $98.00 $1.05 $102.90 $0.30 $29.40 $1.10 $107.80 $0.86 $84.53 50 CROSSWALK BLOCKS - LATEX 2119 SQ FT $2.50 $5,297.50 $2.01 $4,259.19 $2.10 $4,449.90 $2.20 $4,661.80 $2.10 $4,449.90 $2.10 $4,455.20 51 PAVEMENT MESSAGE - LATEX 604 SQ FT $3.75 $2,265.00 $3.51 $2,120.04 $3.67 $2,216.68 $3.70 $2,234.80 $3.60 $2,174.40 $3.62 $2,186.48 52 REMOVE CASTING (STORM) 17 EACH $165.00 $2,805.00 $250.18 $4,253.06 $100.00 $1,700.00 $250.00 $4,250.00 $165.00 $2,805.00 $191.30 $3,252.02 53 REMOVE DRAINAGE STRUCTURE 10 EACH $820.00 $8,200.00 $379.89 $3,798.90 $1,600.00 $16,000.00 $400.00 $4,000.00 $452.00 $4,520.00 $707.97 $7,079.73 54 REMOVE TRASH GUARD 3 EACH $500.00 $1,500.00 $140.34 $421.02 $575.00 $1,725.00 $75.00 $225.00 $291.00 $873.00 $270.34 $811.01 55 REMOVE DRAINAGE STRUCTURE TOP SLAB 5 EACH $1,500.00 $7,500.00 $325.27 $1,626.35 $830.00 $4,150.00 $300.00 $1,500.00 $259.00 $1,295.00 $428.57 $2,142.84 56 SALVAGE DRAINAGE STRUCTURE TOP SLAB 2 EACH $1,000.00 $2,000.00 $325.27 $650.54 $770.00 $1,540.00 $300.00 $600.00 $223.00 $446.00 $404.57 $809.14 57 REMOVE SEWER PIPE (STORM) 175 LIN FT $24.00 $4,200.00 $27.80 $4,865.00 $14.50 $2,537.50 $12.00 $2,100.00 $9.00 $1,575.00 $15.83 $2,769.38 Apparent Low Bid Apparent 2nd Low Apparent 3rd Low 24-03 Ipava, Indiana, and 175th St Rehabilitation Project Bid Tabulation and Comparison Engineer's Estimate Northwest Asphalt Bituminous RoadwaysOMG Midwest McNamara Contracting Prepared by Sobottka, Alanna 4/11/2024 Page 1 Page 152 of 165 58 12" RC PIPE SEWER CLASS V 56 LIN FT $90.00 $5,040.00 $75.07 $4,203.92 $72.00 $4,032.00 $67.00 $3,752.00 $90.00 $5,040.00 $76.02 $4,256.98 59 15" RC PIPE SEWER CLASS III 18 LIN FT $85.00 $1,530.00 $160.00 $2,880.00 $81.00 $1,458.00 $84.00 $1,512.00 $98.00 $1,764.00 $105.75 $1,903.50 60 18" RC PIPE SEWER CLASS III 76 LIN FT $90.00 $6,840.00 $94.72 $7,198.72 $82.00 $6,232.00 $77.00 $5,852.00 $105.00 $7,980.00 $89.68 $6,815.68 61 27" RC PIPE SEWER CLASS III 24 LIN FT $250.00 $6,000.00 $158.29 $3,798.96 $115.00 $2,760.00 $123.00 $2,952.00 $167.00 $4,008.00 $140.82 $3,379.74 62 CLEAN PIPE SEWER 654 LIN FT $2.00 $1,308.00 $12.12 $7,926.48 $11.50 $7,521.00 $10.00 $6,540.00 $23.00 $15,042.00 $14.16 $9,257.37 63 CONNECT TO EXISTING STORM SEWER 18 EACH $1,260.00 $22,680.00 $684.77 $12,325.86 $900.00 $16,200.00 $1,000.00 $18,000.00 $1,095.00 $19,710.00 $919.94 $16,558.97 64 CONNECT TO EXISTING DRAINAGE STRUCTURE 1 EACH $2,500.00 $2,500.00 $2,216.01 $2,216.01 $1,450.00 $1,450.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $1,666.50 $1,666.50 65 ADJUST FRAME & RING CASTING (STORM) 64 EACH $485.00 $31,040.00 $327.26 $20,944.64 $300.00 $19,200.00 $495.00 $31,680.00 $920.00 $58,880.00 $510.57 $32,676.16 66 CASTING ASSEMBLY (STORM) 22 EACH $1,000.00 $22,000.00 $867.54 $19,085.88 $950.00 $20,900.00 $942.00 $20,724.00 $1,220.00 $26,840.00 $994.89 $21,887.47 67 CONSTRUCT DRAINAGE STRUCTURE DESIGN SPEC 1 (2'X3') 3 EACH $3,500.00 $10,500.00 $2,988.73 $8,966.19 $4,250.00 $12,750.00 $2,078.00 $6,234.00 $3,400.00 $10,200.00 $3,179.18 $9,537.55 68 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4020 1 EACH $9,500.00 $9,500.00 $5,158.75 $5,158.75 $8,900.00 $8,900.00 $6,231.00 $6,231.00 $6,585.00 $6,585.00 $6,718.69 $6,718.69 69 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4022 5 EACH $3,000.00 $15,000.00 $5,158.75 $25,793.75 $5,700.00 $28,500.00 $3,735.00 $18,675.00 $6,585.00 $32,925.00 $5,294.69 $26,473.44 70 CONSTRUCT DRAINAGE STRUCTURE DESIGN 60-4022 1 EACH $6,000.00 $6,000.00 $6,840.30 $6,840.30 $7,200.00 $7,200.00 $5,746.00 $5,746.00 $11,230.00 $11,230.00 $7,754.08 $7,754.08 71 RECONSTRUCT DRAINAGE STRUCTURE 3 EACH $2,500.00 $7,500.00 $779.27 $2,337.81 $1,500.00 $4,500.00 $1,350.00 $4,050.00 $2,280.00 $6,840.00 $1,477.32 $4,431.95 72 INSTALL DRAINAGE STRUCTURE TOP SLAB 2 EACH $1,000.00 $2,000.00 $922.95 $1,845.90 $415.00 $830.00 $750.00 $1,500.00 $908.00 $1,816.00 $748.99 $1,497.98 73 4' DIA. TOP SLAB W/ 2'X3' OPENING 4 EACH $2,000.00 $8,000.00 $922.95 $3,691.80 $940.00 $3,760.00 $1,095.00 $4,380.00 $1,590.00 $6,360.00 $1,136.99 $4,547.95 74 4' DIA. TOP SLAB W/ 27" DIA. OPENING 1 EACH $2,500.00 $2,500.00 $922.95 $922.95 $3,850.00 $3,850.00 $1,095.00 $1,095.00 $1,590.00 $1,590.00 $1,864.49 $1,864.49 75 FILL SUMP DRAINAGE STRUCTURE 2 EACH $600.00 $1,200.00 $893.05 $1,786.10 $1,250.00 $2,500.00 $850.00 $1,700.00 $1,765.00 $3,530.00 $1,189.51 $2,379.03 76 GROUT REPAIR - ADJUSTMENT RINGS 3 EACH $300.00 $900.00 $422.67 $1,268.01 $275.00 $825.00 $400.00 $1,200.00 $800.00 $2,400.00 $474.42 $1,423.25 77 GROUT REPAIR - STRUCTURE INTERIOR 48 EACH $1,000.00 $48,000.00 $389.63 $18,702.24 $575.00 $27,600.00 $500.00 $24,000.00 $593.00 $28,464.00 $514.41 $24,691.56 78 REMOVE VALVE BOX 3 EACH $350.00 $1,050.00 $342.38 $1,027.14 $770.00 $2,310.00 $200.00 $600.00 $417.00 $1,251.00 $432.35 $1,297.04 79 REMOVE GATE VALVE & BOX 1 EACH $500.00 $500.00 $684.77 $684.77 $770.00 $770.00 $375.00 $375.00 $555.00 $555.00 $596.19 $596.19 80 REMOVE WATERMAIN 20 LIN FT $15.00 $300.00 $34.24 $684.80 $30.00 $600.00 $25.00 $500.00 $8.50 $170.00 $24.44 $488.70 81 6" DUCTILE IRON WATERMAIN 20 LIN FT $100.00 $2,000.00 $172.56 $3,451.20 $70.00 $1,400.00 $69.00 $1,380.00 $103.00 $2,060.00 $103.64 $2,072.80 82 VALVE BOX 3 EACH $1,700.00 $5,100.00 $114.45 $343.35 $1,150.00 $3,450.00 $2,720.00 $8,160.00 $1,535.00 $4,605.00 $1,379.86 $4,139.59 83 6" GATE VALVE & BOX 1 EACH $3,250.00 $3,250.00 $3,929.32 $3,929.32 $6,200.00 $6,200.00 $4,820.00 $4,820.00 $3,700.00 $3,700.00 $4,662.33 $4,662.33 84 ADJUST VALVE BOX 15 EACH $500.00 $7,500.00 $434.18 $6,512.70 $785.00 $11,775.00 $572.00 $8,580.00 $354.00 $5,310.00 $536.30 $8,044.43 85 BOLT & VALVE BOX REPLACEMENT 15 EACH $5,000.00 $75,000.00 $1,563.77 $23,456.55 $4,100.00 $61,500.00 $3,360.00 $50,400.00 $4,535.00 $68,025.00 $3,389.69 $50,845.39 86 CONNECT TO EXISTING WATERMAIN 4 EACH $1,500.00 $6,000.00 $813.16 $3,252.64 $1,250.00 $5,000.00 $1,250.00 $5,000.00 $2,055.00 $8,220.00 $1,342.04 $5,368.16 87 WATERMAIN FITTINGS 200 POUND $12.00 $2,400.00 $8.39 $1,678.00 $14.00 $2,800.00 $14.50 $2,900.00 $26.00 $5,200.00 $15.72 $3,144.50 88 ADJUST FRAME & RING CASTING 13 EACH $750.00 $9,750.00 $863.25 $11,222.25 $225.00 $2,925.00 $800.00 $10,400.00 $884.00 $11,492.00 $693.06 $9,009.81 89 INSTALL CHIMNEY SEAL 13 EACH $500.00 $6,500.00 $173.51 $2,255.63 $250.00 $3,250.00 $190.00 $2,470.00 $764.00 $9,932.00 $344.38 $4,476.91 90 REMOVE CONCRETE WALK 3950 SQ FT $2.00 $7,900.00 $2.31 $9,124.50 $1.90 $7,505.00 $2.54 $10,033.00 $4.00 $15,800.00 $2.69 $10,615.63 91 REMOVE BITUMINOUS WALK 3540 SQ FT $2.00 $7,080.00 $2.32 $8,212.80 $0.95 $3,363.00 $1.27 $4,495.80 $6.00 $21,240.00 $2.64 $9,327.90 92 EXCAVATION - COMMON 490 CU YD $30.00 $14,700.00 $30.81 $15,096.90 $20.00 $9,800.00 $39.00 $19,110.00 $45.00 $22,050.00 $33.70 $16,514.23 93 EXCAVATION - SUBGRADE CORRECTION 96 CU YD $33.00 $3,168.00 $43.67 $4,192.32 $42.00 $4,032.00 $39.00 $3,744.00 $51.00 $4,896.00 $43.92 $4,216.08 94 RECLAIMED AGGREGATE BASE (SUBGRADE CORRECTION) 83 CU YD $24.00 $1,992.00 $41.69 $3,460.27 $33.00 $2,739.00 $14.95 $1,240.85 $56.00 $4,648.00 $36.41 $3,022.03 95 AGGREGATE BASE CLASS 5 96 CU YD $32.00 $3,072.00 $98.69 $9,474.24 $80.00 $7,680.00 $54.86 $5,266.56 $52.00 $4,992.00 $71.39 $6,853.20 96 FULL DEPTH RECLAMATION (8") 2460 SQ YD $4.50 $11,070.00 $2.89 $7,109.40 $4.00 $9,840.00 $3.95 $9,717.00 $2.00 $4,920.00 $3.21 $7,896.60 97 TYPE SP 9.5 WEARING COURSE MIXTURE (2,B) 3.0" THICK 490 TON $85.00 $41,650.00 $110.13 $53,963.70 $87.00 $42,630.00 $98.40 $48,216.00 $89.00 $43,610.00 $96.13 $47,104.93 98 4" CONCRETE WALK 1890 SQ FT $8.00 $15,120.00 $8.10 $15,309.00 $7.60 $14,364.00 $7.73 $14,609.70 $10.00 $18,900.00 $8.36 $15,795.68 99 6" CONCRETE WALK 4390 SQ FT $15.00 $65,850.00 $14.18 $62,250.20 $18.00 $79,020.00 $15.86 $69,625.40 $16.00 $70,240.00 $16.01 $70,283.90 100 ADA COMPLIANCE SUPERVISOR 1 LUMP SUM $5,000.00 $5,000.00 $1.01 $1.01 $250.00 $250.00 $1,500.00 $1,500.00 $1.00 $1.00 $438.00 $438.00 101 TRUNCATED DOMES 500 SQ FT $66.00 $33,000.00 $68.88 $34,440.00 $50.00 $25,000.00 $63.00 $31,500.00 $72.00 $36,000.00 $63.47 $31,735.00 102 ROOT BARRIER 1340 LINFT $19.00 $25,460.00 $7.11 $9,527.40 $12.50 $16,750.00 $15.00 $20,100.00 $16.00 $21,440.00 $12.65 $16,954.35 TOTALS BASE BID $2,675,747.55 $2,169,252.35 $2,214,623.63 $2,344,795.44 $2,824,283.06 $2,388,238.62 Prepared by Sobottka, Alanna 4/11/2024 Page 2 Page 153 of 165 CITY OF LAKEVILLE RESOLUTION NO. 24- Resolution Authorizing Funding and 2024 Budget Amendments and Transfers for Ipava Avenue, Indiana Avenue and 175th Street Improvements City Project 24-03 WHEREAS, the Ipava Avenue, Indiana Avenue and 175th Street Improvements, City Project 24- 03, is programed in the adopted Lakeville 5-year Capital Improvement Plan (2024-2028). NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota: The estimated project cost is $2,630,353 and anticipated funding sources are listed below. City staff is hereby authorized to amend the 2024 budgets (if needed as the project is completed) and make the appropriate transfers between funds with respect to the project funding sources up to 10% above the estimated costs. Funding transfers may include loans between funds to cover engineering and other costs incurred on the project in advance of receiving other funding. ADOPTED by the Lakeville City Council this 3rd day of June 2024. ______________________________ Luke M. Hellier, Mayor Ann Orlofsky, City Clerk Page 154 of 165 Supporting Information •Project Costs: Total •Project Costs: By Type Street and storm sewer improvements will be financed with debt issuance/bonds; principal and interest payments will be repaid with property tax levies beginning in 2025. Watermain rehabilitation will be funded by the Water Operating Fund and sanitary sewer rehabilitation will be funded by the Sanitary Sewer Operating Fund. Trail improvements and pedestrian crossing enhancements at intersections will be funded by the Park Dedication Fund. •Assessments: Terms and Conditions o Interest rate: 3.00% o Term: 10 years (Determined by actual assessment amount per City Policy) o First payment due with taxes payable 2025 Cost Type Am ount Constr uction Contr act (OM G M idwest )2,169,252$ Engineer ing (D esign/I nspect ion/Administ r at ion)281,536 Bonding 69,450 Cont ingency (5% of cont r act )96,900 Ot her cost s 13,214 2,630,353$ Fundi ng Sour ce Am ount Cit y of Lakeville (Pr oper t y t axes)2,247,304$ Special Assessment s 40,842 W at er Oper ating Fund 53,714 Sanit ar y Sewer Oper at ing Fund 15,829 Par k Dedicat ion Fund 272,663 2,630,353$ Page 155 of 165 1224 Nicollet Avenue Burnsville, MN 55337 Phone: (952) 890-0509 Bolton-Menk.com April 24th, 2024 Zach Johnson, PE City Engineer 20195 Holyoke Avenue Lakeville, MN 55044 RE: Indiana Avenue, Ipava Avenue, and 175th Street W Rehabilitation Construction Engineering, Construction Staking, and As-Built Surveying City Project No.: 24-03 BMI Project No.: 0N1.131929 Mr. Johnson, Thank you for the opportunity to submit this proposal to complete construction engineering, construction staking, and as-built surveying services for the Ipava Avenue, Indiana Avenue, and 175th Street W Rehabilitation Project, City Project No. 24-03. Project Understanding We worked closely with City staff to perform preliminary and final design on this project and have a strong understanding of the project scope and construction services needs. The project areas generally include the following components: · Bituminous Milling · Bituminous Street Reclamation · Bituminous Trail Reclamation · Spot Utility Repairs · Spot Curb and Gutter Replacement · Pedestrian Ramp Upgrades · Intersection Improvements · Bituminous Paving It is our understanding that the City of Lakeville will contract directly with a geotechnical firm to provide construction materials testing. Design Modifications Bolton and Menk staff worked with City staff to make several design modifications through the tail end of the final design phase and will continue to work with City staff on any design related modifications required throughout construction. This task includes preparing any construction related plan revisions and modifications. Construction Administration City staff have requested that we include a limited number of Construction Engineering hours in this proposal to provide any necessary assistance throughout the duration of construction. These services may include answering technical questions or visiting the project site to review site conditions. We have included 40 hours in this proposal. However, the services will be provided on an as-needed basis and may require less time than the amount allotted. Page 156 of 165 Construction Staking Our survey team will set or re-establish necessary control points within the project area for use during construction. Construction staking requests are accommodated during the construction season within 48 hours of the request. Items anticipated to require construction staking include storm sewer structures, storm sewer pipe, new trail and walk alignment and grade, and concrete curb and gutter. Our survey crews will complete construction staking, as required, and document all survey points installed. As-Built Survey and Record Plans An as-built survey of all modified structures within the project areas will be completed by Bolton & Menk survey staff. Structures with no repairs called out on the plans will not be accounted for. Additionally, City staff completing construction inspections will provide field notes for Bolton & Menk to prepare record plans for the project. A final pdf set of these drawings will be provided to the City for their records. Proposed Fee $43,000 In accordance with the City of Lakeville’s project requirements, Bolton & Menk proposes to complete the scope of work as described above for a not-to-exceed hourly fee of $43,000. The fee breakdown for individual work tasks is tabulated below. Task Amount Design Modifications $10,000 Construction Administration $7,500 Construction Staking $21,000 As-Built Survey and Record Plans $4,500 Thank you, again, for inviting Bolton & Menk to offer you this proposal, as well as your continued consideration of our services to the City of Lakeville. We look forward to continuing to work with you and the City on this project. If you have any questions regarding our proposal, please do not hesitate to contact us. Sincerely, Bolton & Menk, Inc. Eric Seaburg, PE Jason Malecha, PE Principal Engineer Project Engineer Luke Hellier Mayor, City of Lakeville Ann Orlofsky City Clerk, City of Lakeville Page 157 of 165 AA/EOE Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com April 11, 2024 Proposal QTB194895 Mr. Stephen Ferraro City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Re: Proposal for Construction Materials Testing Services Indiana Avenue, Ipava Avenue, and 175th Street Rehabilitation City Improvements Project No. 24-03 Indiana Avenue from Ipava Avenue to Dodd Boulevard Ipava Avenue from Indiana Avenue to 185th Street 175th Street from Jonquil Avenue to Ipava Avenue Lakeville, Minnesota Dear Mr. Ferraro: Braun Intertec Corporation is pleased to submit this proposal to provide construction materials testing services for the Indiana Avenue, Ipava Avenue, and 175th Street Rehabilitation Project in Lakeville, Minnesota. We have completed the geotechnical evaluation for this project, so we have a unique understanding of the site and construction challenges. We can aid the construction team by applying this experience and transferring our knowledge developed during the design phase which will provide professional continuity to the construction. Our work on the project to date gives us familiarity with the project team and design development which allows us to understand some of the considerations used when developing the project’s design. Since our inception in 1957, we have grown into one of the largest employee-owned engineering firms in the nation. With more than 1,000 employee owners, retaining our firm gives you access to a diverse range of services and professionals you can consult with if the unforeseen occurs. The size of our company also allows us to respond quickly when schedule constraints occur. Our Understanding of Project This project will include full depth reclamation on Ipava Avenue and bituminous mill and overlay on Indiana Avenue and 175th Street along with rehabilitation of trails along Indiana Avenue and 175th Street. This project will also include subgrade preparation, placement of reclaimed aggregate base (in the full depth reclaim area), spot concrete curb and gutter, sidewalk, and driveways along with a new bituminous trail and roadway pavement. Minor improvements to the storm and water main utilities will also be part of this project. Page 158 of 165 City of Lakeville Proposal QTB194895 April 11, 2024 Page 2 Available Project Information This proposal was prepared using the following documents and information.  Project plans and specifications prepared by Bolton & Menk, Inc., dated March 13, 2024. Scope of Services Services are performed under the direction of a licensed professional engineer. Testing services will be performed on an on-call, as-needed basis as requested and scheduled by you or your on-site project representative. After reviewing available information to determine compliance with project plans and/or specifications and other design or construction documents, our scope of services for the project will be limited to the tasks defined below. Soil Related Services  Observe and evaluate the soils exposed in the bottoms of excavations to determine if the soils are similar to those encountered with the geotechnical evaluation and suitable for support of pavements. Our engineer can provide consultation for conditions that appear to differ from the geotechnical evaluation.  Measure the in-place dry density, moisture content and relative compaction of fill placed for pavement support and utility backfill for compliance with the project documents. This task includes performing laboratory Proctor tests to provide maximum dry densities from which the relative compaction of fill can be determined, as well as the use of a nuclear density gauge to measure in-place dry densities and moisture contents.  Sample and test full depth reclamation materials for compliance with the project documents. This task includes laboratory gradation and asphalt content testing of these materials.  Perform MnDOT full depth reclaim dynamic cone penetrometer (DCP) tests on full depth reclamation material. Concrete Related Services  Sample and test fresh concrete associated with pavement and/or curb-and-gutter for compliance with the project documents and cast test cylinders for laboratory compressive strength testing. We assume that we will be able to appropriately dispose of excess concrete (and associated wash water) on site at no additional cost to us.  Measure and report the compressive strength of the concrete test cylinders for compliance with the project documents. A set of three cylinders will be tested at 28 days for each set cast. If field cure cylinders are requested, each additional cylinder will be charged at the unit price listed in our cost estimate. Page 159 of 165 City of Lakeville Proposal QTB194895 April 11, 2024 Page 3 Bituminous Related Services  Sample and test bituminous pavement materials for compliance with the project documents. This task includes Rice specific gravity, Gyratory density, fine aggregate angularity, percent crushed, asphalt content and extracted aggregate gradation tests of the bituminous.  Measure the in-place wet density of the fresh bituminous wear course with a nuclear density gauge to observe and document the contractor’s roll pattern.  Perform bituminous coring and core testing. We will provide a two-man crew to mark and cut cores at random locations on non-wear (base) bituminous paving. Results will be analyzed for compliance with the project documents. We will patch the core holes with hot mix bituminous. Consulting, Project Communication and Reporting Services  Project management, including scheduling of our field personnel.  Review observation and test reports and communicating with you and the parties you may designate such as the project contractor(s), and other project team members, as needed.  Transmit test results to the project team on a weekly basis. Basis of Scope of Work The costs associated with the proposed scope of services were estimated using the following assumptions. If the construction schedule is modified or the contractor completes the various phases of the project at different frequencies or durations than shown in this proposal, we may need to adjust the overall cost accordingly. The scope of work and number of trips required to perform these services are as shown in the attached table. Notable assumptions in developing our estimate include:  We assume it will take eight trips to complete the nuclear density gauge testing on this project.  We assume compaction testing on full depth reclamation material will be performed using the Dynamic Cone Penetration (DCP) method; a minimum of three tests will be conducted each trip with six trips assumed.  We assume eighteen sets of concrete tests will be required to complete the project.  We assume the rebar observations before concrete placements will be completed by the project representative’s construction oversight manager.  We assume bituminous paving will be completed in fifteen days for this project.  We assume City of Lakeville personnel will observe the test rolling of soils and full depth reclaim for this project. Page 160 of 165 City of Lakeville Proposal QTB194895 April 11, 2024 Page 4 We assume the project engineer of record will review and approve contractor’s quality control submittals and test results. You, or others you may designate, will provide us with current and approved plans and specifications for the project. Modification to these plans must also be sent to us so we can review their incorporation into the work. We will require a minimum of 24 hours’ notice for scheduling inspections for a specific time. Shorter than 24 hours’ notice may impact our ability to perform the requested services, and the associated impacts will be the responsibility of others. If the work is completed at different rates than described above, this proposal should be revised. If the pace of construction is different than described above, this proposal should be revised. Cost and Invoicing We will furnish the services described herein for an estimated fee of $36,218. Our estimated costs are based on industry averages for construction production. Depending on the contractor’s performance, our costs may be significantly reduced or slightly higher than estimated. A tabulation showing our estimated hourly and/or unit rates associated with our proposed scope of services is also attached. The actual cost of our services will be based on the actual units or hours expended to meet the requirements of the project documents. This cost estimate was developed with the understanding that the scope of services defined herein will be required and requested during our normal work hours of 6:00 a.m. to 4:00 p.m., Monday through Friday. Services that we are asked to provide to meet the project requirements or the contractor’s construction schedule outside our normal business hours will be invoiced using an overtime rate factor. The factor for services provided outside our normal work hours or on Saturday will be 1.25 times the listed hourly rate for the service provided. The factor for services provided on Sunday or legal holidays will be 1.5 times the listed hourly rate for the service provided. We have not included premiums for overtime in our cost estimate; however, we recommend that allowances and contingencies be made for overtime charges based on conversations with the contractor. You will be billed only for services provided on a time and materials basis. Because our services are directly controlled by the schedule and performance of others, the actual cost may vary from our estimate. It is difficult to project all of the services and the quantity of services that may be required for any project. If services are required that are not discussed above, we will provide them at the rates shown in the attached table or, if not shown, at our current Schedule of Charges. We will invoice you on a monthly basis. Page 161 of 165 City of Lakeville Proposal QTB194895 April 11, 2024 Page 5 General Remarks We will be happy to meet with you to discuss our proposed scope of services further and clarify the various scope components. We appreciate the opportunity to present this proposal to you. After reviewing this proposal, please sign and return one copy to our office as notification of acceptance and authorization to proceed. If anything in this proposal is not consistent with your requirements, please let us know immediately. Braun Intertec will not release any written reports until we have received a signed agreement. Also, ordering services from Braun Intertec constitutes acceptance of the terms of this proposal. The proposed fee is based on the scope of services described and the assumption that our services will be authorized within 30 days and that others will not delay us beyond our proposed schedule. Page 162 of 165 City of Lakeville Proposal QTB194895 April 11, 2024 Page 6 Our services will be provided under the terms of the Master Agreement for Professional Engineering Services dated September 20, 2021. To have questions answered or schedule a time to meet and discuss our approach to this project further, please contact John Rutherford at 612.718.8461 (jrutherford@braunintertec.com) or Andrew Valerius at 952.995.2242 (avalerius@braunintertec.com). Sincerely, BRAUN INTERTEC CORPORATION John P. Rutherford Senior Project Manager Andrew M. Valerius Account Leader, Senior Project Manager Charles M. Cadenhead, Jr., PE Vice President, Principal Engineer Attachment: Cost Estimate Table The proposal is accepted. We will reimburse you in accordance with this agreement, and you are authorized to proceed: Authorizer’s Firm Authorizer’s Signature Authorizer’s Name (please print or type) Authorizer’s Title Date Page 163 of 165 Client:Service Description:Work Site Address: Indiana Avenue from Ipava Avenue to Dodd Boulevard Ipava Avenue from Indiana Avenue to 185th Street 175th Street from Jonquil Avenue to Ipava Avenue Lakeville, MN 55044 City of Lakeville Stephen Ferraro 20195 Holyoke Ave Lakeville, MN 55044 (952) 985-4400 Construction Materials Testing Description Quantity Units Unit Price Extension Phase 1 Construction Materials Testing Activity 1.1 Soil Testing $6,340.00 207 Compaction Testing - Nuclear 15.00 Hour 82.00 $1,230.00 Work Activity Detail Qty Units Hrs/Unit Extension Subgrade Preparation 3.00 Trips 2.50 7.50 Utility Backfill - Storm Sewer & Watermain 3.00 Trips 2.50 7.50 1308 Nuclear moisture-density meter charge, per hour 15.00 Each 24.00 $360.00 217 Compaction Testing - DCP's 18.00 Hour 82.00 $1,476.00 Work Activity Detail Qty Units Hrs/Unit Extension Full Depth Reclamation 6.00 Trips 3.00 18.00 1530AG Asphalt Content of Aggregate Base, per sample 2.00 Each 150.00 $300.00 209 Sample pick-up 4.00 Hour 82.00 $328.00 1318 Moisture Density Relationship (Proctor)4.00 Each 185.00 $740.00 126 Project Engineer 4.00 Hour 160.00 $640.00 1162 Sieve Analysis with 200 wash, per sample 6.00 Each 136.00 $816.00 1861 CMT Trip Charge 18.00 Each 25.00 $450.00 Activity 1.2 Concrete Testing $6,884.00 261 Concrete Testing 45.00 Hour 82.00 $3,690.00 Work Activity Detail Qty Units Hrs/Unit Extension Curb & Gutter 8.00 Trips 2.50 20.00 Flatwork 10.00 Trips 2.50 25.00 1364 Compressive strength of concrete cylinders, per specimen 54.00 Each 31.00 $1,674.00 Work Activity Detail Qty Units Hrs/Unit Extension Curb & Gutter 8.00 Sets 3.00 24.00 Flatwork 10.00 Sets 3.00 30.00 278 Concrete Cylinder Pick up 10.00 Hour 82.00 $820.00 Work Activity Detail Qty Units Hrs/Unit Extension Concrete Cyinder Pickup 10.00 Trips 1.00 10.00 1861 CMT Trip Charge 28.00 Each 25.00 $700.00 Activity 1.3 Pavement Testing $18,234.00 2689 MnDOT Bituminous Verification, per sample 15.00 Each 679.00 $10,185.00 209 Sample pick-up 6.00 Hour 82.00 $492.00 Work Activity Detail Qty Units Hrs/Unit Extension Sample Pickup - Non-wear Course 4.00 Trips 1.50 6.00 207 Compaction Testing - Nuclear 33.00 Hour 82.00 $2,706.00 Work Activity Detail Qty Units Hrs/Unit Extension Roll Pattern / Sample Pickup - Wear Course 11.00 Trips 3.00 33.00 1308 Nuclear moisture-density meter charge, per hour 33.00 Each 24.00 $792.00 Page 1 of 204/11/2024 09:58 AM Project Proposal QTB194895 Indiana Ave, Ipava Ave, & 175th St. Rehab 24-03 Page 164 of 165 Proposal Total:$36,218.00 252 Bituminous Coring - Two Person Crew 16.00 Hour 185.00 $2,960.00 Work Activity Detail Qty Units Hrs/Unit Extension Mark & Core Bituminous Pavement - Non-wear Course 4.00 Trips 4.00 16.00 1542 Thickness and Density of Bituminous Core 12.00 Each 52.00 $624.00 1861 CMT Trip Charge 19.00 Each 25.00 $475.00 Activity 1.4 Project Management $4,760.00 226 Project Manager 20.00 Hour 160.00 $3,200.00 228 Senior Project Manager 4.00 Hour 185.00 $740.00 238 Project Assistant 10.00 Hour 82.00 $820.00 Phase 1 Total:$36,218.00 Page 2 of 204/11/2024 09:58 AM Project Proposal QTB194895 Indiana Ave, Ipava Ave, & 175th St. Rehab 24-03 Page 165 of 165