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09/15/2015 - City Council Regular
AGENDA EAGAN CITY COUNCIL EAGAN MUNICIPAL CENTER BUILDING SEPTEMBER 15, 2015 6:30 P.M. I. ROLL CALL AND PLEDGE OF ALLEGIANCE II. ADOPT AGENDA 111. RECOGNITIONS AND PRESENTATIONS IV. CONSENT AGENDA (Consent items are acted on with one motion unless a request is made for an item to be pulled for discussion) A. APPROVE MINUTES B. PERSONNEL ITEMS C. APPROVE Check Registers D. APPROVE Contracts E. APPROVE Change Order #1 for the Fire Station Four Remodel F. APPROVE the Police Liaison Services Agreement with School District #196 G. APPROVE Ordinance Amendment to City Code Chapter 10 Relative to Off -Leash Dog Area (OLDA) Collar and Permit Length H. APPROVE Policy for Public Art and Memorial Installations in City Owned Public Spaces I. SCHEDULE public hearing for October 20, 2015 on intent to issue bonds to finance projects in the 2016-2020 Facilities Capital Improvement Plan J. Item removed K. ACKNOWLEDGE Withdrawal of Bramer IUP application for short-term rentals L. RECEIVE Final Assessment Report for Project No. 1123 — Cedar Heights — Street Improvements and Schedule Public Hearing for October 20, 2015 M. RECEIVE Final Assessment Report for Project No. 1166 — St Charles Wood — Street Improvements and Schedule Public Hearing for October 20, 2015 N. RECEIVE Final Assessment Report for Project No. 1168 — Waters Edge — Street Improvements and Schedule Public Hearing for October 20, 2015 0. RECEIVE Final Assessment Report for Project No. 1074 - Braun Sunrise Addition — Street Improvements and Schedule Public Hearing for October 20, 2015 P. APPROVE Inflow & Infiltration (01) Program Surcharge Appeals Q. APPROVE Credit of Sanitary Sewer Portion of Utility Bill for 2864 Eagandale Boulevard R. DECLARE unclaimed bicycles, unclaimed property and miscellaneous City property to be surplus S. AUTHORIZE Final Payment of Contract 12-05 to MP Nexlevel LLC. And Close Out Contract T. CONSENT for Approval to Enter Lease Agreement for Conduit with Arvig Enterprises, Inc U. APPROVE Contract with QBS for a PCI Reassessment of the City's Credit Card Payment Security, Policies and Procedures. V. APPROVE Contract with FRSecure for an Information Security Scan and Assessment. V. PUBLIC HEARINGS A. VARIANCE —Wyatt Sharing & Caring —A Variance to the Tree Preservation Ordinance located at 510 Lone Oak Road — WITHDRAWN PER APPLICANT'S REQUEST VI. OLD BUSINESS VI1. NEW BUSINESS VIII. LEGISLATIVE / INTERGOVERNMENTAL AFFAIRS UPDATE IX. ECONOMIC DEVELOPMENT AUTHORITY A. CALL TO ORDER B. ADOPT AGENDA C. CONSENT AGENDA 1. APPROVE EDA Minutes 2. AUTHORIZE Braun Intertec to undertake environmental remediation for Outlot A, Paragon Addition, in the Cedar Grove Redevelopment Area D. OLD BUSINESS E. NEW BUSINESS 1. PUBLIC HEARING to consider Preliminary Real Estate Purchase Agreement with Inland Group (CAP Acquisitions, LLC) for Outlot A in the Cedar Grove Redevelopment District F. OTHER BUSINESS G. ADJOURN X. ADMINISTRATIVE AGENDA A. City Attorney B. City Council Comments C. City Administrator D. Director of Public Works E. Director of Community Development XI. VISITORS TO BE HEARD (for those persons not on the agenda) XII. CLOSED SESSION XIII. ADJOURNMENT #b� City of EaRan demo TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY ADMINISTRATOR OSBERG DATE: SEPTEMBER 11, 2015 SUBJECT: AGENDA INFORMATION FOR SEPTEMBER 15, 2015 CITY COUNCIL MEETING ADOPT AGENDA After approval is given to the September 15, 2015 City Council agenda, the following items are in order for consideration. Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA The following items referred to as consent items require one (1) motion by the City Council. If the City Council wishes to discuss any of the items in further detail, those items should be removed from the Consent Agenda and placed under Old or New Business unless the discussion required is brief. A. Approve Minutes Action To Be Considered: To approve the minutes of September 1, 2015 Special City Council meeting as presented or modified. Attachments: (1) CA -1 September 1, 2015 Minutes MINUTES OF A REGULAR MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota SEPTEMBER 1, 2015 A Listening Session was held at 6:00 p.m. prior to the regular City Council meeting. Present were Mayor Maguire and Councilmembers Bakken, Fields, Hansen and Tilley. Theresa Eisele addressed the Council regarding traffic concerns at the intersection of Diffley Road and Braddock Trail. A regular meeting of the Eagan City Council was held on Tuesday, September 1, 2015 at 6:30 p.m. at the Eagan Municipal Center. Present were Mayor Maguire and Councilmembers Bakken, Fields, Hansen and Tilley. Also present were City Administrator Osberg, Director of Communications Garrison, Director of Community Development Hohenstein, City Planner Ridley, Director of Public Works Matthys, Parks and Recreation Director Johnson, Police Chief McDonald, Fire Chief Scott, and Executive Assistant Stevenson. AGENDA Councilmember Tilley moved, Councilmember Fields Hansen seconded a motion to approve the agenda as presented. Aye: 5 Nay: 0 RECOGNITIONS AND PRESENTATION There were no recognitions and presentations to be heard. CONSENT AGENDA Councilmember Bakken moved, Councilmember Fields seconded a motion to approve the Consent Agenda as modified: Aye: 5 Nay: 0 A. It was recommended to approve the minutes of August 11, 2015 Special City Council meeting, and August 18, 2015 regular City Council meeting as presented or modified. B. Personnel Items 1. It was recommended to acknowledge staff correction to previous Council Action taken on July 21, 2015 to re-classify lieutenants. 2. It was recommended to authorize the hiring of Charlie Fredricks for Streets Engineering Technician I. 3. It was recommended to approve policy revisions to the Health Care Savings Plan. C. It was recommended to ratify the check register dated August 14 and 21, 2015 as presented. D. It was recommended to approve the ordinary and customary contracts with Cornerstone Parking Group, School District 191, Stevens Drilling & Environmental Services Inc., Wal-Mart Stores, Inc./Sam's West, Inc. E. It was recommended to reschedule the December 1, 2015 regular City Council meeting to November 30, 2015. F. It was recommended to approve an Easement Vacation of public drainage and utility easements located on Lot 1, Block 1, Leibel Addition. It was recommended to approve a Final Subdivision (Cedar Grove Townhomes 2nd Addition) to create six (6) townhome lots upon approximately 0.8 acres located at the southeast corner of Cedar Grove Parkway and City Council Meeting Minutes September 1, 2015 2 page Gold Trail, and it was recommended to approve a Final Planned Development for development of six (6) townhome dwelling units upon Lot 1, Block 1, Cedar Grove Townhomes 2"d Addition located at the southeast corner of Cedar Grove Parkway and Gold Trail. G. It was recommended to approve a Final Plat (Cedar Grove Townhomes 3�d Addition) located south of Cedar Grove Parkway and east of Nicols Road. H. It was recommended to direct preparation of a City Code Amendment to clarify permissible rental of residential -zoned properties. I. Item pulled for further discussion. J. It was recommended to approve Change Order No. 1 to Contract 15-15 (Yankee Doodle Road (CSAH 28) / Promenade Avenue / O'Leary Lane — Intersection Improvements), and authorize the Mayor and City Clerk to execute all related documents. K. It was recommended to approve the plans and specifications for Contract 15-23 (Well No. 3 Restoration —Trunk Water Improvements), and authorize the advertisement for a bid opening to be held at 11:00 a.m. on Thursday, September 24, 2015 at the Utility Building, located at 3419 Coachman Point, Eagan, MN 55122. L. It was recommended to approve the hiring of Leo A Daly architects to prepare plans and specifications for the Civic Arena storage building. M. It was recommended to approve a resolution to accept a donation of %528.23 in cash from Honeywell for the purpose of purchasing audio visual equipment for use at the Eagan Civic Arena and to authorize the necessary budget adjustment and direct the Mayor and City Clerk to sign the appropriate documents. N. It was recommended to adopt a resolution authorizing acceptance of $50 donation from an Eagan Citizen. O. It was recommended to adopt a resolution approving an Exempt Permit for The Open Door to conduct a raffle on October 4, 2015 at Lost Spur Golf and Event Center, 2750 Sibley Memorial Highway. Mayor Maguire pulled Item I. — Adopt Findings of Fact for Denial — Prestige Preschool, for separate action. The applicant, Jon Fahning of Shingobee Builders addressed the Council asking to have Item I. pulled for further discussion. He noted they would like the opportunity to provide documentation of accurate and factual information as it relates to the project and the conditions in which the denial of the Development Amendment was voted upon. Councilmember Bakken and others stated their reasons for supporting a denial. Councilmember Tilley moved, Councilmember Hansen seconded the motion for reconsideration of the Findings of Fact for Denial. Aye: 2 Nay: 3 (Maguire, Bakken, and Fields opposed) Councilmember Fields moved, Councilmember Bakken seconded the motion to adopt Findings of Fact, Conclusion and Resolution of Denial of a request for Planned Development Amendment to allow a single -story 10,400 sq. ft. childcare facility located at 4150 Knob Drive. Aye: 5 Nay: 0 City Council Meeting Minutes September 1, 2015 3 page PUBLIC HEARINGS Boulder Lakes Addition — Easement Vacation City Administrator Osberg introduced the item noting on July 16, 2015, City staff received a petition from Greg Miller, representing Interstate Partners, requesting the vacation of an existing drainage and utility easement over all of Outlot B, Boulder Lakes, north of Lone Oak Road and east of Ames Crossing Road, in northeast Eagan. Osberg noted the Council is being asked to close the public hearing and continue action to coincide with future City Council consideration of the Boulder Lakes 3rd Addition final plat and subdivision. Public Works Director Matthys gave a staff report. Mayor Maguire opened the public hearing. There being no public comment, he turned the discussion back to the Council. Councilmember Tilley moved, Councilmember Fields seconded a motion to close the public hearing to consider vacating a public drainage and utility easement over all of Outlot B, Boulder Lakes, and continue action to coincide with future City Council consideration of the Boulder Lakes 3rd Addition final plat and subdivision. Aye: 5 Nay: 0 Certification of Delinquent Utilities City Administrator Osberg noted at the August 3, 2015 City Council meeting, a public hearing was scheduled for September 1, 2015. The public hearing is to consider approving final assessment for the delinquent utility bills and authorize certification to Dakota County for collection with property taxes. The City currently has approximately 959 utility bill accounts with delinquent balances. Mayor Maguire opened the public hearing. There being no public comment, he turned the discussion back to the Council. Councilmember Fields moved, Councilmember Tilley seconded a motion to close the public hearing and approve the final assessment roll for delinquent utility bills and authorize its certification to Dakota County for collection with property taxes. Aye: 5 Nay: 0 Certify Delinquent Nuisance Abatement Bills City Administrator Osberg noted the City Code allows for collection of delinquent nuisance abatement bills through certification to property taxes. At the August 3, 2015 City Council meeting, a public hearing was scheduled for September 1, 2015. The City currently has one property with delinquent false alarm invoices, six properties with delinquent mowing and noxious weed removal, and two diseased tree removal invoices. Mayor Maguire opened the public hearing. There being no public comment, he turned the discussion back to the Council. City Council Meeting Minutes September 1, 2015 4 page Councilmember Hansen moved, Councilmember Tilley seconded a motion to close the public hearing and approve the final assessment roll for delinquent nuisance abatement bills and authorize its certification to Dakota County. Aye: 5 Nay: 0 There are no old business items to be heard. OLD BUSINESS NEW BUSINESS Conditional Use Permit — LeMay Lake Apartments City Administrator Osberg introduced the item noting the applicant is proposing a new clubhouse building and associated site improvements in the central portion of the site, in the area of the swimming pool. The Council is being asked to consider approval of a conditional use permit to allow an increase of impervious surface coverage in a Shoreland Overlay District of LeMay Lake, upon property located at 3005 Eagandale Place. City Planner Ridley gave a staff report. Griffin Jameson, on behalf of the applicant was available for questions. Mayor Maguire opened the public comment, there being no public comment, he turned the discussion back to the Council. Councilmember Fields moved, Councilmember Tilley seconded a motion to approve a Conditional Use Permit to allow an increase of impervious surface coverage in a Shoreland Overlay District of LeMay Lake, upon property located at 3005 Eagandale Place, subject to the following conditions: Aye: 5 Nay: 0 1. This Conditional Use Permit shall be recorded at Dakota County within 60 days of approval by the City Council with the following exhibit: • Site Plan dated July 15, 2015 • Landscape Plan dated July 15, 2015 Prior to receiving city approval to permit land disturbing activity: The property owner shall enter into a long-term stormwater management system maintenance agreement with the City, detailing the inspection and maintenance required to occur to ensure proper operation and performance of the permanent stormwater management system, in a form acceptable to the City Attorney. This Agreement shall be filed in the property records with Dakota County Recorder's Office, at the applicant's expense. The applicant shall provide the City with soil boring logs from a minimum of two soil - borings within any proposed infiltration area, extending a minimum of 10' below the bottom of the proposed infiltration feature, to evaluate and ensure suitability for infiltration. If the soil boring logs indicate incompatibility of existing sub -soil permeability with the submitted and reviewed design plans for meeting stormwater retention/mitigation requirements, the applicant shall revise the design and/or construction plans (e.g. over- excavation/soil-amendment depth, etc.) to ensure requirements are fully met. City Council Meeting Minutes September 1, 2015 5 page The applicant shall provide construction details of proposed infiltration basins for City review/acceptance by the City Engineer and include in construction plans. Construction details shall include infiltration basin cross-section(s), construction sequencing/protection/restoration notes, sizing/volume tables, details for stable inlets/outlets/emergency overflows, pre-treatment features, soil amendment criteria, live planting/seeding/temporary & permanent erosion -control details, etc., to ensure infiltration practice is properly designed, constructed, planted, and adequately protected during / after construction to prevent clogging, and able to be properly maintained to function as intended. These graphical details and notes shall be prominently included in all applicable plan sheets (e.g. Grading, Utility, Landscape Plan sheets, etc.). The property owner shall provide clear assurances to the City that by final grading, prior to installation of any irrigation and plantings, the disturbed areas that are to be revegetated shall have protected and/or restored soil permeability to non -compacted soil conditions to a 12 -inch depth with no less than 5% soil organic matter content, to comply with impervious mitigation requirements. During infiltration practice over -excavation and sub -soil work, the applicant shall ensure that a Certified Soil Scientist will be present to verify and document that for each infiltration practice area sub -soils are suitable for a saturated condition infiltration rate of 1 -inch per hour or greater (but less than 8.0 -inch per hour). If the sub -soil infiltration rates are less than 1 -inch per hour (or greater than 8.0 -inch per hour), the applicant shall immediately notify the City Engineer and revise the volume control practice(s) as necessary (e.g. over-excavation/soil-amendment depth, etc.) to ensure volume control requirements are fully met. At completion of final grading within each surface infiltration basin, but prior to planting, the applicant shall ensure that a soil scientist will be present to verify and document that the infiltration practice is suitable to infiltrate a minimum of 1 -inch per hour or greater in saturated conditions. Documentation shall be provided to the City within 48 -hours after infiltration testing. The applicant shall provide the City Water Resources staff with 24-hour advance notice of the occurrence of infiltration verifications and also prior to any soil backfilling within any of the infiltration practices. Conditional Use Permit & Variances — New Horizon Academy City Administrator Osberg introduced the item noting the Council is being asked to consider approval of a conditional use permit to allow the development of an approximately 11,900 sq. ft. two-story childcare facility, and to approve a 40' variance to the required 50' structure setback from a major thoroughfare upon property located at 4585 Erin Lane. City Planner Ridley gave a staff report noting clarification from the applicant has been received, the green space issue is now at the required minimum of 30%, the height of the landscaping condition has been met. A. Peter Hilger, representing New Horizon spoke to green space, trash enclosure, landscaping, paved walkways and parking calculations and was available for questions. Mayor Maguire opened the public comment, there being no public comment, he turned the discussion back to the Council. The Council discussed the conditional use permit and variance. City Council Meeting Minutes September 1, 2015 6 page Councilmember Fields moved, Councilmember Hansen seconded a motion to approve a Conditional Use Permit to allow the development of an approximately 11,900 sq. ft., two-story childcare facility with 31 parking stalls, upon property located at 4585 Erin Lane, subject to the following conditions: Aye:5 Nay:O 1. This Conditional Use Permit shall be recorded at Dakota County within 60 days of approval by the City Council and proof of its recording provided to the City. 2. This CUP shall supersede and replace prior CUP's granted to this property. 3. The applicant shall submit a revised Site Plan to reduce the amount of impervious surface coverage to meet the 30% minimum requirement. 4. The property shall be developed in accordance with the Site Plan, as revised. 5. There shall be no more than two school buses/vans kept on the property, and such vehicles must be parked within a standard parking stall. 6. The trash enclosure shall be constructed of brick to match the building, with an opaque gate that is compatible with the building finish materials. The overhead door shall be painted an earth tone to match the building. 7. Building address numbers shall be installed consistent with the provisions of Section 2.78 of City Code. 8. This development shall be responsible for the acquisition of all regulatory agency permits required by the affected agency prior to the issuance of a building permit. 9. The Landscape Plan shall be revised to establish buffers between the building and public rights- of-way, especially along TH 77. The plantings shall achieve 75% opacity year round at maturity. 10. A revised Landscape Plan shall be submitted to add foundation plantings and to provide screening of any ground transformers. 11. Automatic irrigation shall be provided for all landscaped areas. A financial guarantee for installation of the landscaping shall be provided in accordance with the City's landscape ordinance, at the time of Building Permit. 12. The Building Elevations provided at the time of Building Permit shall include four sided architecture and meet material finish requirements per CSC zoning standards. 13. Mechanical equipment shall be screened per City Code requirements with a 30" minimum parapet height. The elevation plans shall also indicate that equipment is placed 20' from the edge of buildings as required by City Code, and depicted on final drawings for Building Permit. 14. The applicant shall submit a revised Site Lighting Plan that provides the specifications for the fixtures and average to minimum calculations for the entire site. The fixtures shall have full cutoff performance which are "nighttime friendly". 15. The applicant shall revise the Site Lighting Plan so that the parking lot and drive aisle lighting achieves a minimum of 0.5 footcandles. 16. The revised Site Lighting Plan shall have an average -to -minimum uniformity ratio not greater than 4:1. 17. All signage shall comply with City Sign Code requirements. 18. The building signs shall consist of either individual channel letters or backlit letters. 19. The monument sign base shall be constructed of the same materials used for the principal building. 20. Any utility services to be removed shall be performed in a manner acceptable to the City Engineer. 21. Any damage to the street, curb and gutter, and boulevard of Erin Lane shall be restored in a manner acceptable to the City Engineer. City Council Meeting Minutes September 1, 2015 7 page 22. This development shall meet the City's Post Construction Stormwater Management Requirements (City Code §4.34) for stormwater management and surface water quality, including Runoff Rate Control and 1.1" Volume Control on the site's new and fully -reconstructed impervious surface area (including effective soil remediation for the site's disturbed soils that are to be revegetated). 23. The applicant shall provide adequately sized pre-treatment (forebays, catch basin 4' sumps, etc.) at, or immediately upstream of, all stormwater management facility inlets to provide for effective capture and easily -accessible cleanout of fine -sand sized particles. Details shall be included in applicable plan sheet(s). 24. Prior to receiving city approval to permit land disturbing activity, the applicant shall provide the City with soil boring logs from a minimum of two soil -borings within any proposed infiltration area, extending a minimum of 10' below the bottom of the proposed infiltration feature, to evaluate and ensure suitability for infiltration. If the soil boring logs indicate incompatibility of existing sub -soil permeability with the submitted and reviewed design plans for meeting volume control requirements, the applicant shall revise the design and/or construction plans (e.g. over- excavation/soil-amendment depth, etc.) to ensure volume control requirements are fully met. 25. Prior to receiving city approval to permit land disturbing activity, the applicant shall provide construction details of proposed sub -surface infiltration system for City review/acceptance by the City Engineer and include in construction plans. Construction details shall include infiltration system cross-section(s), appropriate base construction specifications for infiltration, construction sequencing/protection/restoration notes, sizing/volume tables, details for inlets/outlets, unobstructed inspection/maintenance access to inlets/outlets/header row/pipe gallery, etc., to ensure sub -surface infiltration system is properly designed, constructed, and adequately protected during / after construction to prevent clogging, and able to be properly accessed, inspected and maintained to function as intended. These graphical details and notes shall be prominently included in all applicable plan sheets (e.g. Grading Plan, Utility Plan, etc.). 26. Prior to receiving city approval to permit land disturbing activity, the property owner shall provide detailed Soil Management Strategies for City review, and acceptance by the City Engineer, that provide clear assurances that by final grading, prior to installation of any irrigation and plantings, the disturbed areas that are to be revegetated will have protected and/or restored soil permeability to non -compacted soil conditions in the top 12" of soil with no less than 5% soil organic matter content, to comply with Volume Control requirements. These graphical details and notes on soil protection/restoration shall be included in the Stormwater Management Plan and prominently included in all applicable plan sheets (e.g. Erosion & Sediment Control Plan, Grading & Drainage Plan, Utility Plan, Landscape Plan, etc.). Documentation (e.g. representative on-site soil samples) shall be provided to City Water Resources staff to verify approved soil management strategy compliance. 27. Prior to receiving city approval to permit land disturbing activity, the property owner shall enter into a long-term stormwater management system maintenance agreement with the City, detailing the inspection and maintenance required to occur to ensure proper operation and performance of the permanent stormwater management system, in a form acceptable to the City Attorney. 28. During sub -surface infiltration system area over -excavation and sub -soil work, the applicant shall ensure that a Certified Soil Scientist will be present to verify and document that practice area sub -soils are suitable for a saturated condition infiltration rate of 1 -inch per hour or greater (but less than 8.0 -inch per hour). If the sub -soil infiltration rates are less than 1 -inch per hour (or greater than 8.0 -inch per hour), the applicant shall immediately notify the City Engineer and revise the volume control practice(s) as necessary (e.g. over-excavation/soil-amendment depth, City Council Meeting Minutes September 1, 2015 8 page etc.) to ensure volume control requirements are fully met. At completion of structural/compacted base within each subsurface infiltration system, the applicant shall ensure that a soil scientist will be present to verify and document that the subsurface infiltration system's structural/compacted base is suitable to infiltrate a minimum of 1 -inch per hour or greater in saturated conditions. Documentation shall be provided to the City within 48 -hours after infiltration testing. The applicant shall provide the City Water Resources staff with 24-hour advance notice of the occurrence of infiltration verifications and also prior to any sub -surface chamber placement or backfilling within any of the infiltration practices. 29. Before the city issues a Certificate of Occupancy on the development site, the applicant shall provide the City Engineer as -built plans that demonstrate that all constructed stormwater conveyance structures, stormwater management facilities (sumps, infiltration practices, etc.), and soil management strategies conform to design and/or construction plans, as approved by the City. As -built volumes (for retention) shall be provided for all infiltration practices. The applicant shall submit to the City Engineer certification that the stormwater management facilities have been installed in accordance with the plans and specifications approved. This certification shall be provided by a Professional Engineer licensed in the State of Minnesota. Councilmember Fields moved, Councilmember Hansen seconded a motion to approve a 40' Variance to the required 50' structure setback from a major thoroughfare upon property located at 4585 Erin Lane, subject to the following conditions: Aye: 5 Nay: 0 If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. The Applicant shall obtain an approved Building Permit. Planned Development Amendment (Boulder Lake, Outlot B) — Interstate Partners City Administrator Osberg introduced the item noting the Council is being asked to approve a Planned Development Amendment to change the use and Site Plan from two multi -story office buildings to two office/warehouse buildings, upon Outlot B, Boulder Lakes. The applicant is proposing to modify the use and Site Plan to allow two single -story office/warehouse buildings totaling 225,756 s.f. City Planner Ridley gave a staff report. Greg Miller, applicant, was available for questions. Mayor Maguire opened the public comment, there being no comment, he turned the discussion back to the Council. Councilmember Fields moved, Councilmember Tilley seconded a motion to approve a Planned Development Amendment to change the use and Site Plan from two multi -story office buildings to two office/warehouse buildings, upon Outlot B, Boulder Lakes, subject to the following conditions: Aye: 5 Nay: 0 1. An Amendment to the Boulder Lakes Preliminary Planned Development Agreement shall be executed and recorded with the Dakota County Recorder's office. Proof of recording shall be City Council Meeting Minutes September 1, 2015 9 page provided to the City. The PD Amendment Agreement shall require the use on the remaining lots within the PD to be preserved as set forth in the original PD Agreement to maintain compatibility with the Major Office land use and Research and Development zoning designations. The PD Amendment Agreement shall include the following exhibits: a) Site Plan 2. A Final Planned Development Agreement shall be executed and recorded with the Dakota County Recorder's office prior to issuance of a building permit. Proof of recording shall be provided to the City. The Final Planned Development Agreement shall include the following exhibits: a) Final Site Plan b) Final Building Elevations c) Final Landscape Plan d) Final Signage Plan e) Final Site Lighting Plan 3. The property shall be platted. 4. This development shall be subject to RD, Research and Development, zoning district setback requirements. 5. Parking setbacks shall be provided in accordance with the City's zoning code. 6. This site shall provide a minimum 58.5% green space. 7. Parking stalls not be less than 9 feet in width and 19 feet in depth. 8. If additional parking spaces are required by an actual tenant in either building that exceeds the number of parking stalls provided, any additional parking provided in the future shall not reduce total green space. 9. Unless the applicant has determined that actual tenant parking needs exceed minimum City Code requirements, parking should be reduced to minimize impervious coverage and the additional stalls may shown as future proof of parking. 10. A detailedlandscape plan shall be submitted at the time of Final Planned Development for each building, overlaid on the grading and utility plans and including a landscape schedule and planting specifications and notes. 11. Outdoor storage shall be prohibited. 12. Monument signage shall be consistent in design with other signage in this Planned Development, and City Code standards. 13. Building Signage shall be consistent with City Code requirements. 14. Building address numbers shall be installed consistent with the provisions of Section 2.78 of City Code 15. Building architecture and materials shall comply with the City's architectural standards ordinance. Final Building Elevations shall be revised to provide the minimum 65% Class materials ratio on the three exterior facing elevations of each building. The buildings shall utilize some common architectural features and materials consistent with the other buildings in this Planned Development. 16. Trash and recyclables storage shall be contained internally within each tenant space. Outdoor trash enclosures, Dumpsters, or recycling containers or compactors shall not be allowed. 17. The Applicant shall utilize the same lighting fixtures, or if the same product is not available, provide as close a match as possible to the other developed lots in this Planned Development, and document the comparison to demonstrate the consistency. 18. The Site Lighting Plan shall be revised to provide a minimum 0.5 footcandles throughout all parking lot areas, and an average to minimum ratio that does not exceed 4.0 footcandles. City Council Meeting Minutes September 1, 2015 10 page 19. The Planting Plan shall be titled as Landscape Plan and show required landscaping to meet City Code requirements. A separate Combined or Overall Planting Plan shall also be provided showing both the required Landscaping and proposed Tree Mitigation Plantings on one plan sheet. 20. The Landscape Plan shall include a greater variety of tree species to minimize susceptibility to disease and pests. 21. The Tree Mitigation Plan shall be revised to omit required landscape trees, and provide for required mitigation. 22. This development should provide for its share of the outstanding mitigation of 65 tree from the initial site development, to be identified on the revised Final Tree Mitigation Plan, and subject to review and approval of the City Forester. 23. The applicant shall fulfill tree mitigation requirements through the installation of 327 Category B trees or equivalent Category A or C trees, or cash amount, and its share of the outstanding mitigation of 65 tree from the initial site development. The mitigation shall be identified on the revised Final Tree Mitigation Plan, and subject to review and approval of the City Forester. Installation of tree mitigation shall be accomplished with the Building Permit, and corresponding financial guarantee provided in accordance with City Code. 24. The applicant shall ensure the survival of preserved trees via protection of the tree's critical root zones through the placement of required Tree Protective measures (i.e. orange colored silt fence or 4 foot polyethylene laminate safety netting), to be installed at the Drip Line or at the perimeter of the Critical Root Zone, whichever is greater. 25. The applicant shall contact the City Forestry Division and set up a pre -construction site inspection at least five days prior to the issuance of the grading permit to ensure compliance with the approved Tree Preservation Plan and placement of the Tree Protection Fencing. 26. All ground and roof -mounted mechanical equipment shall be screened in accordance with the provisions of the City's zoning code. 27. All public and private streets, drainage systems, and utilities necessary to provide service to this development shall be designed and certified by a registered professional engineer in accordance with City adopted codes, engineering standards, guidelines, and policies. 28. A detailed land disturbance and erosion control plan shall be prepared in accordance with current City land disturbance and erosion control regulations at the time of Building Permit. 29. All erosion/ sediment control plans submitted for development and grading permits shall be prepared by a designer who has received current Minnesota Department of Transportation (MNDOT) training, or approved equal training as determined by the City Engineer in designing stormwater pollution prevention plans. Also, all personnel responsible for the installation of erosion/ sediment control devices, and the establishment of vegetation for the development, shall have received Erosion/Sediment Control Inspector/Installer certification through the University of Minnesota, or approved equal training as determined by the City Engineer. 30. The relocation of the public storm sewer on the property shall be in accordance with City Engineering standards. Public drainage & utility easement shall dedicated over the relocated storm sewer, in accordance with City standards. 31. The applicant shall fully meet Minn. Rules Ch. 8420 (Wetland Conservation Act requirements) and City Code §11.67 (Wetlands Protection and Management Regulations). 32. This development shall meet the City's Stormwater Management Requirements (City Code §4.34) for stormwater management and surface water quality, including Runoff Rate Control and 1.1" Volume Control on the site's new and fully -reconstructed impervious surface area (including effective soil remediation for the site's disturbed soils that are to be revegetated). City Council Meeting Minutes September 1, 2015 11 page 33. The applicant shall provide unobstructed equipment access paths (without obstructions from grading, private utilities, trees/branches, large shrubs, etc.), from street -edge to all surface stormwater facilities' inlets/outlets. The unobstructed equipment access path shall be capable of supporting typical maintenance / excavation equipment, for periodic maintenance access to the surface storm water facilities. 34. The applicant shall provide adequately sized pre-treatment (forebays, catch basin 4' sumps, etc.) at, or immediately upstream of, all stormwater management facility inlets to provide for effective capture and easily -accessible cleanout of fine -sand sized particles. Details shall be included in applicable plan sheet(s). 35. Prior to receiving city approval to permit land disturbing activity: a) The applicant shall provide the City with soil boring logs from a minimum of two soil - borings within any proposed infiltration area, extending a minimum of 10' below the bottom of the proposed infiltration feature, to evaluate and ensure suitability for infiltration. If the soil boring logs indicate incompatibility of existing sub -soil permeability with the submitted and reviewed design plans for meeting volume control requirements, the applicant shall revise the design and/or construction plans (e.g. over-excavation/soil- amendment depth, etc.) to ensure volume control requirements are fully met. b) The applicant shall provide construction details of proposed infiltration basins for City review/acceptance by the City Engineer and include in construction plans. Construction details shall include infiltration basin cross-section(s), construction sequencing/protection/restoration notes, sizing/volume tables, details for stable inlets/outlets/emergency overflows, unobstructed inspection/maintenance access areas to inlets/outlets, soil amendment criteria, live planting/seeding/temporary & permanent erosion -control details, etc., to ensure infiltration practice is properly designed, constructed, planted, and adequately protected during / after construction to prevent clogging, and able to be properly maintained (e.g. unobstructed equipment access, etc.) to function as intended. These graphical details and notes shall be prominently included in all applicable plan sheets (e.g. Erosion & Sediment Control Plan, Grading Plan, Utility Plan, Landscape Plan, etc.). c) The applicant shall provide construction details of proposed sub -surface infiltration systems for City review/acceptance by the City Engineer and include in construction plans. Construction details shall include infiltration system cross-section(s), construction sequencing/protection/restoration notes, sizing/volume tables, details for inlets/outlets, unobstructed inspection/maintenance access to inlets/outlets, header row and pipe gallery, etc., to ensure sub -surface infiltration system is properly designed, constructed, and adequately protected during / after construction to prevent clogging, and able to be properly accessed, inspected and maintained to function as intended. These graphical details and notes shall be prominently included in all applicable plan sheets (e.g. Grading Plan, Utility Plan, etc.). d) The property owner shall provide detailed Soil Management Strategies for City review, and acceptance by the City Engineer, that provide clear assurances that by final grading, prior to installation of any irrigation and plantings, the disturbed areas that are to be revegetated will have protected and/or restored soil permeability to non -compacted soil conditions with no less than 5% soil organic matter content, to comply with Volume Control requirements. These graphical details and notes on soil protection/restoration shall be prominently included in all applicable plan sheets (e.g. Erosion & Sediment Control Plan, Grading Plan, Utility Plan, Landscape Plan, etc.) and also clearly described in the Stormwater Management Plan. Documentation (e.g. soil organic matter/bulk density testing of representative on-site City Council Meeting Minutes September 1, 2015 12 page soil samples) shall be provided to City Water Resources staff to verify approved soil management strategy compliance, prior to installation of irrigation or landscape plantings. e) The property owner shall enter into a long-term stormwater management system maintenance agreement with the City, detailing the inspection and maintenance required to occur to ensure proper operation and performance of the permanent stormwater management system, in a form acceptable to the City Attorney. 36. During infiltration practice over -excavation and sub -soil work, the applicant shall ensure that a Certified Soil Scientist will be present to verify and document that for each infiltration practice area sub -soils are suitable for a saturated condition infiltration rate of 1 -inch per hour or greater (but less than 8.0 -inch per hour). If the sub -soil infiltration rates are less than 1 -inch per hour (or greater than 8.0 -inch per hour), the applicant shall immediately notify the City Engineer and revise the volume control practice(s) as necessary (e.g. over-excavation/soil-amendment depth, etc.) to ensure volume control requirements are fully met. At completion of final grading within each surface infiltration basin, but prior to planting, the applicant shall ensure that a soil scientist will be present to verify and document that the infiltration practice is suitable to infiltrate a minimum of 1 -inch per hour or greater in saturated conditions. At completion of compacted base within each subsurface infiltration system, the applicant shall ensure that a soil scientist will be present to verify and document that the subsurface infiltration system's compacted base is suitable to infiltrate a minimum of 1 -inch per hour or greater in saturated conditions. Documentation shall be provided to the City within 48 -hours after infiltration testing. The applicant shall provide the City Water Resources staff with 24-hour advance notice of the occurrence of infiltration verifications and also prior to any soil backfilling within any of the infiltration practices. 37. Before the city issues a Certificate of Occupancy on the development site, the applicant shall provide the City Engineer as -built plans that demonstrate that all constructed stormwater conveyance structures, stormwater management facilities (sumps, infiltration practices, etc.), and soil management strategies conform to design and/or construction plans, as approved by the City. As -built volumes (for retention) shall be provided for all infiltration practices. The applicant shall submit to the City Engineer certification that the stormwater management facilities have been installed in accord with the plans and specifications approved. This certification shall be provided by a Professional Engineer licensed in the State of Minnesota. 38. This development shall dedicate 10 -foot drainage and utility easements centered over all lot lines and, in addition, where necessary to accommodate existing or proposed utilities for drainage ways within the plat. The development shall dedicate easements of sufficient width and location as determined necessary by engineering standards. 39. The developer shall provide private utility easements and/or maintenance agreements for all private water mains, in a form acceptable to the City Attorney, prior to the issuance of a Building Permit. 40. This development shall provide hydrant spacing and locations in accordance with City Fire Department and Public Works standards. 41. The applicant shall submit a proposal/infrastructure plan to be approved by staff to provide telecommunications fiber to the premises (FTTP). This development shall include the installation of fiber optic cable, or a conduit for future installation, in its construction plans at the time of Building Permit. 42. The developer shall provide private cross -easements for ingress/egress and shared parking, in a form acceptable to the City Attorney, prior to the issuance of a Building Permit. 43. This development shall be responsible for the acquisition of all regulatory agency permits required by the affected agency prior to the issuance of a Building Permit. City Council Meeting Minutes September 1, 2015 13 page 44. This development is responsible for cash park dedication, payable at the time of Building Permit at the rates then in effect. Trail dedication was satisfied in full with the initial development through Public Improvement Project No. 952. Councilmember Fields moved, Councilmember Bakken seconded a motion to approve vacating a public drainage and utility easement over all of Outlot B, Boulder Lakes. Aye: 5 Nay: 0 Councilmember Fields moved, Councilmember Bakken seconded a motion to approve a Final Plat of 43.02 acres to create one lot located on Outlot B, Boulder Lakes Addition. Aye: 5 Nay: 0 Rezoning and Cancellation of Development Agreement — Red Pine Crossing City Administrator Osberg introduced the item noting the Council is being asked to approve a rezoning for 9.82 acres located southeast of Red Pine Lane and Hwy 3 and to cancel the development agreement related to the Red Pine Crossing development and subdivision. City Planner Ridley gave a staff report. Mayor Maguire opened the public comment, there being no comment he turned the discussion back to the Council. Councilmember Hansen moved, Councilmember Tilley seconded a motion to approve a Rezoning for 9.82 acres located southeast of Red Pine Lane and Hwy 3 to Neighborhood Business. Aye: 5 Nay: 0 Councilmember Hansen moved, Councilmember Tilley seconded a motion to cancel the development agreement related to the Red Pine Crossing development and subdivision dated February 17, 2009. Aye:5 Nay:O Certification of the Preliminary 2016 Budget and Property Tax Levy, and setting of Public Meeting Date on Which the Budget and Levy will be Discussed City Administrator Osberg introduced the item noting the Council is being asked to set the public hearing of the Payable 2016 levy and budget as Monday, November 30, 2015. Osberg noted we are proposing a levy of $31,688,284, and a preliminary General Fund budget of $32,158,700. The City Council is required by law to certify the proposed payable 2016 budget and property tax levy on or before September 30. Finance Director Pepper was available for questions. Mayor Maguire asked if anyone in the audience would like to comment on the preliminary 2016 budget or property tax levy and setting of public meeting date on which the budget and levy will be discussed. There being no public comment, he turned the discussion back to the Council. Councilmember Tilley moved, Councilmember Hansen seconded a motion to approve the preliminary payable 2016 property tax levy as following: Operating $25,237,900, Capital $5,125,717, Debt Service $205,052, Community Center deb service $1,119,615 for a total levy of $31,688,284. Aye: 5 Nay: 0 City Council Meeting Minutes September 1, 2015 14 page Councilmember Tilley moved, Councilmember Hansen seconded a motion to approve the preliminary 2016 General Fund budget, including contingency, of $32,158,700. Aye: 5 Nay: 0 Councilmember Tilley moved, Councilmember Hansen seconded a motion to set the date for the public hearing of the 2016 levy and budget as November 30, 2015, and announced the next regularly scheduled meeting at which the levy and budget will be discussed is the City Council meeting of Monday, November 30 at 6:30 p.m., right here in the Council Chambers. The public will be allowed to speak at this meeting and is welcomed and encouraged by the Council. Aye: 5 Nay: 0 City Administrator Osberg noted the Virtual Budget Open House is scheduled for Monday, November 16th at 7:00 p.m. LEGISLATIVE / INTERGOVERNMENTAL AFFAIRS UPDATE There was no legislative/intergovernmental affairs update. ADMINISTRATIVE AGENDA There were no comments to be heard. There were no visitors to be heard. VISITORS TO BE HEARD ADJOURNMENT Councilmember Tilley moved, Councilmember Hansen seconded a motion to adjourn the meeting at 7:45 Aye:5 Nay:0 Date Mayor City Clerk Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA B. Personnel Items Item 1 Action to be Considered: Accept the resignation/retirement of Janet Bolger, part time Confidential Records Retention Specialist. y_[4iC►1i ➢ Mrs. Bolger is retiring from the City of Eagan with over nine year of service. She previously worked for the City of Mendota Heights. ➢ Per the 2016 budget, the vacated hours shall be reallocated commencing January 1, 2016. Item 2 Action to be Considered: Authorize the hiring of Charlie Fredericks, Streets Engineering Technician, 30 hours per week, benefit eligible, per City policies. Item 3 Action to be Considered: Authorize the hiring of Clerical Technician 4 in the Utilities Division to be named. ➢ This Clerical Technician 4 position will be recognized in the Teamsters Union — Clerical Unit. ➢ This position replaces the position of Systems Analysis in the Utilities Division that was previously vacated. Item 4 Action to be Considered: Accept the resignation of the following seasonal employees: BIERMEIER, JOSHUA R BIRD, JASON A EDWARDS, ROBERT C FASTE, SARAH J GALATOWITSCH, NIKKI R GALATOWITSCH, PETER J GORDER, MICHAEL P GRIDER, CHERYL HONCHARENKO, MARCUS J HUSS, THOMAS J IMMEN, WILLIAM P KA, SODAN D KIECKER, MITCHELL E KOSEL, BENJAMIN A MORSE, DAVID I OSSELL, RYAN PEDERSTUEN, TYLER G PODPESKAR, DANIEL M PODPESKAR, JOSHUA L RICHARD, EMMA E ROTHSCHILLER, BROCK D RUSSELL, CHRISTOPHER J SARNE, ANTHONY J SELVESTRA, DREW A SIMPSON, NOAH T STALCAR, JEREMY J Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA C. Ratify Check Registers Action To Be Considered: To ratify the check register dated August 28 and September 4, 2015 as presented. Attachments: (2) CC -1 Check register dated August 28, 2015 CC -2 Check register dated September 4, 2015 Agenda Information Memo September 15, 2015, Eagan City Council Meeting CONSENT AGENDA D. Approve Contracts Action To Be Considered: To approve the ordinary and customary contract listed below. Facts: ➢ The contract listed below is in order for Council approval. Following approval, the contract will be electronically executed by the Mayor and City Clerk. Contracts to be approved: ➢ Amended contract with J. Benson Construction Corp. for smoke abatement repairs at Old Town Hall. Attachments: (0) The contract is available from the City Clerk's Office. Agenda Information Memo September 15, 2015, Eagan City Council Meeting CONSENT AGENDA E. APPROVE change order #1 for the Fire Station Four Remodel. Action To Be Considered: Approve change order #1 for the Fire Station Four Remodel Project. Facts: ➢ At the May 5, 2015 City Council Meeting a contract was awarded to Kue Contractors for the remodel and expansion project of Fire Station Four at 4200 Dodd Road. ➢ Since the construction started there have been several changes to the contract needed to continue to the project and meet the December 2015 deadline. ➢ The cost of the changes made total $69,622 and are comprised of the following: 1. Provide missing conduit: $410.00 2. Provide new curb and utility revisions as a result of the city staff review of project: $7,974 3. Provide a plate for a missing bond beam: $257 4. Landscape revisions that include adding trees on the east property line to help shield a neighbor's home from the lights of departing emergency vehicles: $6,794 S. Revisions to the concrete work to provide replacement sidewalks (where needed) and a concrete front apparatus apron to replace the asphalt that was less than 4" thick and in need of replacement soon: $41,211 6. Add an electrical receptacle for irrigation control box: $199 7. Pinning of concrete floor infills in apparatus bay: $500 8. Add a plastic laminate shelve for door access control battery back-up system: $465 9. Add a concrete gutter in rear parking lot to accommodate rain run off (reviewed with Public Works Director): $14,812 10. Change louver screen for roof top units to more cost effective method: deduct ($3,000) ➢ The cost of these changes will be taken out of the project contingency fund. Attachments: CE -1 Cover Letter from CNH Architects CE -2 Change Order #1 from CNH Architects 7300 WEST 147TH STREET SUITE 504 APPLE VALLEY, MN 55124-7580 (952) 431-4433 MEMORANDUM: PROJECT: Eagan Fire Station #4 — Addition and Remodeling CNH NO: 14095 DATE: September 9, 2015 TO: City of Eagan - Mayor and City Council SUBJECT: Change Order #01 Review The following is a summary of the items being submitted as Change Order #01 for the Eagan Fire Station #4 — Addition and Remodeling project. Background: The construction on Fire Station #4 begun in early July and has been progressing on schedule for the past 8 weeks. During the work to this point, there are several items that have been identified as either providing long-term value to the Fire Station #4 facility or were items discovered upon the exposing of the existing site or building conditions that require adjustments to the work scope. These items have been priced by the general contractor and combined into the attached Change Order #01. Description of Changes: The main changes are incorporated in the attached Change Order #01 fall into three basic categories: A. Site Paving: The first group of upgrades includes the replacement of aging asphalt pavement between the apparatus bays and the street, replacement of cracked sidewalks and the addition of concrete parking lot gutter. These changes were based on the conditions identified when site demolition began as well as recommendations from city public works and engineering staff to create efficiency in facility maintenance work or to provide extended durability for this city facility. B. Landscape Upgrade: This category includes adjustments to tree removal for the expanded parking lot and the addition of landscaping along the east side of the fire station to provide screening to address the neighboring property owner's concerns. C. Miscellaneous Minor Changes: These items are a variety of minor items that are being recommended to address items including minor equipment location revisions, existing building elements that were not built as indicated in the original construction drawings, and the opportunity to switch to a rooftop mechanical equipment screen system that provided savings to the project while maintaining quality. Pricing: The following are the itemized pricing for each Proposal Request item included in this Change Order. All prices have been reviewed by CNH Architects and our consultant team and have been determined to be within appropriate unit costs for the work proposed. P:\PROJECTS\2014\14095\5 -CONSTRUCTION ADMIN\CHANGE ORDERS & PAY APPS\CHANGE ORDER #01 RECOMMENDATION TO COUNCIL.DOCX A. Site Paving a. PR #02 — Provide new concrete curb and utility revisions $7,974 b. PR #06 — Combined concrete and sidewalk replacement $41,211 c. PR #11 —Concrete gutter and entrance drive revisions $14,812 B. Landscape Upgrade a. PR #03 — Hydrant location and tree removal changes No cost b. PR #05R1 — Landscape screening revisions $6,794 C. Miscellaneous Minor Changes a. PR #01 — Delete data points and provide conduit $410 b. PR #04 — Provide steel plate at missing bond beam $257 c. PR 407 — Sprinkler controls receptacle in Dayroom $199 d. PR #08 — Pinning of concrete floor infills in Apparatus Bays $500 e. PR #10 — Plastic laminate shelf at Staging $465 f. PR #13 — Louver screen alternate for deduct ($3,000) Total Add $69,622 New Contract Total $1,308,209 Conclusion: The items in the Change Order represent recommended improvements to the Fire Station #4 project to provide long-term durability improvements, simplify operational maintenance and generally improve the project. As noted above CNH Architects, our team, and staff have reviewed the pricing shown above and are comfortable as being appropriate for the work involved. CNH Architects recommends approval of this Change Order as in the best interest of staff operations and long-term value for Fire Station #4. Respectfully Submitted, 6 Quinn S. Hutson, AIA, LEED AP Principal CNH Architects, Inc. P:\PROJECTS\2014\14095\5 - CONSTRUCTION ADMIN\CHANGE ORDERS & PAY APPS\CHANGE ORDER #01 RECOMMENDATION TO COUNCIL.DOCX PROJECT (Name and address): CHANGE ORDER NUMBER: 001 OWNER: ❑ Eagan Fire Station #4 DATE: September 8, 2015 ARCHITECT: El 4200 Dodd Road . PR#3 Hydrant location and tree removal changes. $0.00 Eagan, MN 55123 PR#4 Plate at missing bond beam. $257.00 CONTRACTOR: ❑ TO CONTRACTOR (Name and address): ARCHITECT'S PROJECT NUMBER: 14095 FIELD: Kue Contractors, Inc. CONTRACT DATE: May 11, 2015 OTHER: El 130 Central Ave. S CONTRACT FOR: General Construction PR#10 Plastic laminate shelf at Staging. $465.00 PO Box 408 PR#11 Concrete gutter and entrance drive revisions. $14,812.00 Watkins, MN 55389 Total Add $69,622.00 THE CONTRACT IS CHANGED AS FOLLOWS: (Include, where applicable, any undisputed amount attributable to previously executed Construction Change Directives) PR #1 Delete data points and provide conduit. $410.00 PR #2 Provide new curb and utility revisions. $7,974.00 PR#3 Hydrant location and tree removal changes. $0.00 PR#4 Plate at missing bond beam. $257.00 PR#5R1 Landscape screening revisions. $6,794.00 PR#6 Combined concrete and sidewalk replacement. $41,211.00 PR#7 Sprinkler controls receptacle in Dayroom. $199.00 PR#8 Pinning of concrete floor infills at App Bay. $500.00 PR#10 Plastic laminate shelf at Staging. $465.00 PR#11 Concrete gutter and entrance drive revisions. $14,812.00 PR#13 Louver screen alternate for deduct. ($3,000.00) Total Add $69,622.00 The original Contract Sum was $ 1,238,587.00 The net change by previously authorized Change Orders $ 0.00 The Contract Sum prior to this Change Order was $ 1,238,587.00 The Contract Sum will be increased by this Change Order in the amount of $ 69,622.00 The new Contract Sum including this Change Order will be $ 1,308,209.00 The Contract Time will be increased by Zero (0) days. The date of Substantial Completion as of the date of this Change Order therefore is December 18, 2015. NOTE: This Change Order does not include changes in the Contract Sum, Contract Time or Guaranteed Maximum Price which have been authorized by Construction Change Directive until the cost and time have been agreed upon by both the Owner and Contractor, in which case a Change Order is executed to supersede the Construction Change Directive. NOT VALID UNTIL SIGNED BY THE ARCHITECT, CONTRACTOR AND OWNER. CNH Architects, Inc. Kue Contractors, Inc. City of Eagan ARCHITECT (Firm name) CONTRACTOR (Firm name) OWNER (Firm name) 7300 West 147th Street, Suite 504, Apple Valley, MN 55124 (Typed n me) DATE 130 Central Ave. S, PO Box 408, Watkins, 3830 Pilot Knob Road, Eagan, MN 55122 MN 55389 ADDRESS ADDRESS BY (Signature) BY (Signature) (Typed name) (Typed name) DATE DATE AIA Document G701 T — 2001. Copyright ©1979, 1987, 2000 and 2001 by The American Institute of Architects. bill rights reserved q Thisdocumentwas nrwVunui Mi 414 �nfn.�aro flf nc•na•na nn nUfnuMM F candor flrrlor �In ZnnFnn Qnnn a �s.tnti ov..irm nn n1 /17/9MR on.ito not fnr rocalo Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA F. Approve the Police Liaison Services Agreement Between The City Of Eagan And Independent School District (ISD) #196 Action To Be Considered: Approve the agreement between the City of Eagan and ISD #196. Facts: ➢ The City of Eagan and ISD #196 have partnered to establish a school resource officer program in three schools. ➢ The School District wishes to continue this relationship, and agrees to pay the city $77,119.56 for Eagan Police Officers to continue working in the schools for the 2015- 2016 school year. ➢ The School District increased funding for liaison services by one percent from the 2014- 2015 school year. Attachment (1) CF -1 Police Liaison Services Agreement POLICE LIAISON SERVICES AGREEMENT: SCHOOL DISTRICT NO. 196 AND CITY OF EAGAN THIS AGREEMENT is made and entered into this day of , 2015 by and between SCHOOL DISTRICT NO. 196, a Minnesota municipal corporation, (hereinafter "School District") and CITY OF EAGAN, a Minnesota municipal corporation, (hereinafter "City"). RECITALS WHEREAS, the parties enter into this Agreement pursuant to Minnesota Statutes §126C.44; and WHEREAS, for purposes of this Agreement, the School District's participating secondary schools within the City consist of the following schools: Black Hawk Middle School, Dakota Hills Middle School and Eagan High School. NOW THEREFORE, the parties hereto agree as follows: 1. The City agrees to provide a state certified police officer to perform an average of 20 hours per week police liaison services to each of the School District's secondary schools for the purpose of assisting in the establishment and trained coordination of a cooperative community approach among the School District's schools, students, parents, police and other community resources to address the needs of the students and community members. The City's police liaison services shall include, but. not limited to: a. Prevention of delinquency; b. Protection of life and property; and C. Law enforcement. 2. The School District shall pay the City the amount of $77,119.56 for the City's police liaison services to the School District. 3. The parties agree and acknowledge that the police officers who are assigned to provide police liaison services in the schools are, and will continue to be, members and employees of the City and its police department. The police officers shall not become an agent or employee of the School District by virtue of this Agreement and shall not make any representations to the contrary. The officers shall operate under the direct administration and supervision of the police department but will work in cooperation with school administrators to further mutually agreed goals involving the police department, schools and students. The officers shall not have disciplinary authority within the schools or be considered educational service providers, but shall be limited to their police functions. 4. The amount to be paid by the School District as specified in Paragraph 2 herein shall be payable for the 2015-2016 school year upon approval of this Agreement by both parties. 5. This Agreement is effective for the 2015-2016 school year. Upon the expiration of the 2015-2016 school year, this Agreement shall automatically terminate. 6. Each party shall be liable for the acts and omissions of its own agents and employees and not the acts and omissions of the other party's agents and employees. The parties' liability shall be limited by the provisions of the Municipal Tort Claims Act, Minn. Ch. 466 or other applicable law. 7. The parties agree that all government data collected, shared or received as a result of the parties' duties under this Agreement shall be handled and maintained in accordance with all applicable federal, state and local laws, rules and regulations governing government data, including, but not limited to the provisions of the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. The parties understand and agree that any sharing of data between them must occur in accordance with the law governing the dissemination of data, including, but not limited to, specific laws and governing the sharing of data on students and minors. INDEPENDENT SCHOOL DISTRICT NO.196: By: Rob Duchscher Its: Chairperson By: Gary Huusko Its: Clerk STATE OF MINNESOTA ) ss. COUNTY OF ) On this _ day of . 2015, before me a Notary Public within and for said County, personally appeared ROB DUCHSCHER and GARY HUUSKO, to me personally known, who each being duly sworn by me, did say that they are the Chairperson and Clerk of Independent School District No. 196 and that said instrument was signed and sealed on behalf of said School District by authority of the School Board and said Chairperson and Clerk acknowledged said instrument to be the free act and deed of the School District. Notary Public CITY OF EAGAN: By: Mike Maguire Its: Mayor By: Christina Scipioni Its: City Clerk STATE OF MINNESOTA ) ss. COUNTY OF ) On this _ day of , 2015 before me a Notary Public within and for said County, personally appeared MIKE MAGUIRE and CHRISTINA SCIPIONI to me personally known, who being each by me duly sworn, each did say that they are respectively the Mayor and Clerk of the City of Eagan, the municipality named in the foregoing instrument, and that the seal affixed on behalf of said municipality by authority of its City Council and said Mayor and Clerk acknowledged said instrument to be the free act and deed of said municipality. Notary Public Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA G. Approve Ordinance Amendment To City Code Chapter 10 Relative To Off -Leash Dog Area (OLDA) Collar And Permit Length. Action To Be Considered: Approve ordinance amendment to City Code Chapter 10 to allow two year permits for the Off Leash Dog Area (OLDA) and change permit from a dog collar to a tag. Facts: The Off -Leash Dog Area (OLDA) opened in the fall of 2012 at Thresher Fields Park. ➢ Currently the OLDA permits expire at the end of each calendar year. ➢ Dog License renewal is every even year and is managed by Animal Control. ➢ Changing this OLDA permit to a two year renewal to coincide with the Dog License renewal will make it more convenient for residents to renew both permits at the same time. OLDA users feedback has also indicated a desire for an OLDA dog tag instead of a collar. ➢ The Council directed preparation of an ordinance amendment on August 18, 2015. ➢ The Advisory Parks Commission has been notified through an information memo. Attachments: (1) CG -1 Proposed Ordinance Change. ORDINANCE NO. 2ND SERIES AN ORDINANCE OF THE CITY OF EAGAN, MINNESOTA, AMENDING EAGAN CITY CODE CHAPTER TEN ENTITLED "PUBLIC PROTECTION, CRIMES AND OFFENSES" BY AMENDING SECTION 10.23 REGARDING OFF -LEASH DOG AREA PERMIT; AND BY ADOPTING BY REFERENCE EAGAN CITY CODE CHAPTER 1 AND SECTION 10.99 The City Council of the City of Eagan does ordain: Section 1. Chapter 10 of the Eagan City Code is hereby amended by revising Section 10.23, Subd. 3 (13)(3) & (4)to read as follows: Subd. 3. Unlawful acts (animals in the park). It is unlawful for any person, in any park or recreation area, to: B. Bring any dog, cat or other creature unless caged or kept on a leash not more than six feet in length. This clause shall not apply to any dog within an off -leash dog area, provided the following requirements are met: 3. An off -leash dog area permit for the dog has been issued by the city and is valid and in effect for the current ea ewe term of the permit; 4. The dog is wearing the city -issued cella permit tai for its off -leash dog area permit; Section 2. Eagan City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code Including 'Penalty for Violation"' and Section 10.99, entitled "Violation a Misdemeanor" are hereby adopted in their entirety by reference as though repeated verbatim. Section 3. Effective Date. This ordinance shall take effect upon its adoption and publication according to law. ATTEST: By: Christina M. Scipioni Its: City Cleric Date Ordinance Adopted: Date Ordinance Published in the Legal Newspaper: CITY OF EAGAN City Council By: Mike Maguire Its: Mayor Agenda Information Memo September 15, 2015, Eagan City Council Meeting CONSENT AGENDA H. Approve Policy For Public Art And Memorial Installations In City Owned Public Spaces. Action To Be Considered: To approve a policy for consideration, placement and removal of public art and memorial installations in City owned public spaces. Facts: As a follow-up to Council discussions regarding the work of the Arts Vision Committee on January 13, 2015, a "Policy for Public Art and Memorial Installations in City Owned Public Spaces" is presented for Council consideration. ➢ This policy provides a process and criteria for consideration of artwork before placement in City owned public spaces. ➢ This policy is largely modeled on the policy currently in place for art placement in Eagan parks. Attachments: (1) CH -1 Public Art and Memorial Installations in City Owned Public Spaces Draft Policy City of Eagan Policy for Public Art and Installation in City Owned or Managed Spaces Statement of Purpose The purpose of this policy is to encourage the display of public art in the City of Eagan and to provide a mechanism for the inclusion of public art and memorial structures throughout the city's public spaces. Public art plays a vital role in supporting a community cultural identity. Public art can also acknowledge and celebrate the City's history through commemorative art, memorials, and interpretive projects. "Sense of Place" Guiding Principles Art in Eagan's buildings and grounds, both interior and exterior, should principally contribute to a Sense of Place. In doing so, artwork should: • Draw attention and be memorable • Express a range of community points of view • Offer unique communal & individual experiences • Evoke emotional responses & convey meanings • Engender a unique identity • Enhance community connections • Weave into Eagan's fabric Consideration shall be given to artwork that: • Acts as a landmark, meeting place, or part of the way finding system. • Enhances connections to nature and parks. • Promotes the integration of art with urban, landscaping, and architectural design. • Recognizes ethnic diversity. • Encourages innovation and artistic excellence in public art Process for Selection Artwork may be acquired through donation, open competition, invitational competition or direct selection. The process for evaluating proposals, other than direct selection, is as follows: 1. Proposals for placement of artwork must be made in writing to the Director of Parks & Recreation. 2. Public comment period will be announced at an Advisory Parks & Recreation Commission (APrC) meeting. 3. APrC evaluates proposal based upon criteria in this policy and makes recommendation to Eagan City Council. 4. Consideration by the City Council. Required Proposal Information The written proposal must include: 1. A photo or drawing of the artwork. 2. Estimated value of the artwork. 3. Description of materials used to create the artwork, including materials needed to display/secure in the selected location. 4. Dimensions of artwork, including base or mounting structure required for installation, if applicable. 5. Description, including materials, dimensions, wording and location, of interpretive signage for the structure, if applicable. 6. Statement of how the work addresses Eagan's public artwork guiding principles and contributes to a Sense of Place. Consideration should also be made as to how the artwork relates to the site and/or any historical context. 7. Statement of probable lifespan of artwork and annual maintenance needed to maintain artwork integrity. 8. Statement as to whether the work is unique or duplicates other work by the same artist. 9. Statement regarding the significance of any person or event to be memorialized in relationship to the community and to the proposed site. (Memorial proposals only) Criteria for Review The APrC will review proposed artwork and make a recommendation based upon the following criteria: 1. Artwork should primarily reflect "Sense of Place Guiding Principles". 2. The proposed artwork should be compared with the artists' best work and the best works in the City collection. The acquisition should strengthen, rather than dilute the City's collection. 3. If the artwork is to be installed outdoors, the physical condition of the artwork should be considered in terms of durability in an outdoor setting. Any requirements for immediate or future conservation should be noted. 4. The artwork should be compatible in scale, material, form and content with its surroundings and form an overall relationship with the site. 5. The City's overall collection shall strive for diversity in style, scale, media, and artists. There shall be encouragement of exploratory types of work as well as established art forms. Proposals for temporary artwork will be considered. 6. Art commemorating a person or event will be judged on the significance of the person or event in relation to local social, cultural or historical context and must represent broad community values. 7. Artwork with messages that are exclusively religious in nature will not be accepted. 8. Artwork with messages that are exclusively political in nature will only be considered if the political message is of a historical context. 9. If proposal accepted by the City is to be a fabrication of a concept or design, then the final product must match the approved concept or design. 10. Any person to be memorialized shall have been deceased for a minimum of five years prior to Council approval. Conflicts of Interest Any member of the APrC with a connection or interest in one of the artists or pieces of art must disclose this conflict of interest. Public Review and Comment Period Each proposal will be announced to the public at an APrC regular meeting and then made available for public review and comment at Eagan City Hall for a minimum of 30 days before proposal is evaluated by the APrC. Ownership, Maintenance and Site Selection The placement of all artwork must comply with applicable State law and City Ordinances. In addition, all artwork must meet the following guidelines before being considered for placement: 1. Absolute ownership and control of permanently installed artwork must be conveyed to the City, including all drawings, proposals, sketches, and other conceptualizations of the artwork. All intellectual property rights, including patents, copyrights and moral rights, must be assigned to the City. Donations will not be accepted where a condition of donations requires permanent exhibition. 2. In the judgment of the majority of the City Council, the artwork must be appropriate for display to the general public. 3. Cost of on-going maintenance and repair anticipated throughout the lifespan of the artwork must fall within normal City budget allocations. 4. For temporary artwork, indicate the duration of the installation, as appropriate for the selected site. Temporary artwork should be installed for no longer than 24 months. Maintenance of temporary artwork is the responsibility of the artist or must be included in the commission/acquisition estimate. (Note: temporary artwork may be a horticultural art installation or something else temporal that is purchased and not loaned.) 5. Donations that require the City to pay installation, framing, restoration, or repair are not encouraged. 6. Artist or provider may request a specific site. However, each placement will be evaluated based upon suitability of the artwork for the site. The APrC will make a recommendation to the Council concerning an appropriate site for each piece of artwork. Removal The City shall remove and dispose of artwork in its collection when it finds such action to be in the public interest based upon the following: 1. As a means of improving the quality of the City's collection a. The artwork has no relevance to the collection or serves no exhibition function. b. The artwork has a duplicate in the collection. c. The artwork no longer meets the current standards for public art. 2. Due to concerns for public safety, when artwork becomes a hazard or a public liability. 3. The artwork is in a seriously deteriorated condition. 4. Removal should not be based on current fashion or taste. Attention should be paid to maintaining a collection which forms a continuum of the City's visual art history. Prior to removal, written notice should be given to the artist. Recommendations for removal shall be made to the APrC, which in turn will then make a recommendation based upon the public benefit of removal or disposal to the City Council for final action. Each request for removal will be announced to the public at an APrC regular meeting and then made available for public review and comment at Eagan City Hall for a minimum of 30 days before action is taken by the APrC. Once approval for removal is granted, the structure shall be disposed of in accordance with Minnesota Law. Agenda Information Memo September 15, 2015, Eagan City Council Meeting CONSENT AGENDA Schedule public hearing for October 20, 2015 on intent to issue bonds to finance projects in the 2016-2020 Facilities Capital Improvement Plan Action to be Considered: To schedule a public hearing for October 20, 2015 on the City's intent to issue bonds to finance the projects in the 2016-2020 Facilities Capital Improvement Plan. Facts: ➢ At its August 3 meeting, the City Council adopted the 2016-2020 Facilities Capital Improvement Plan (CIP) comprised of the following projects, which are estimated to total $24,259,296: o New Fire Station 1, to be constructed in 2016 ($5,732,418); o Central Maintenance facility expansion/remodel, to be constructed in two phases in 2016 and 2018 ($9,214,113 total); and o City Hall and Police facility expansion/remodel, to be constructed in 2018 ($9,312,765). ➢ At the September 8 Council workshop, new estimates for both projects were presented: o Fire Station 1 project costs increased by $185,479 to $5,917,896; and o Phase 1 costs of the Central Maintenance Facility project increased by $313,023. In addition, $863,000 of costs originally slated for Phase 2 in 2018 were moved up to Phase 1. The combined increase for Phase 1 of $1,176,023 raises the total Phase 1 project cost to $5,495,371 ➢ The projects are to be financed by capital improvement bonds, as provided for under Minnesota Statutes, Section 475.521. ➢ The statute requires that a properly noticed public hearing be held on the City's intent to issue bonds. ➢ The CIP document has been posted on the City's website since July 10; to date, the Finance Department has received no questions or comments on the CIP. ➢ Under MS section 475.521, bonds issued for a Capital Improvement Plan are subject to a reverse referendum. If a petition requesting a vote on the issuance of bonds is signed by at least 1,315 voters (5% of the votes cast in the last general election), and that petition is received by November 19 (30 days after the public hearing), then voter approval by way of an election would be required to issue the bonds. Attachments: (2) CI -1 2016-2020 Facilities Capital Improvement Plan CI -2 Minnesota Statutes, Section 475.521 Table of Contents I. INTRODUCTION.......................................................................................3 II. PURPOSE.................................................................................................3 III. CAPITAL IMPROVEMENT PLANNING PROCESS........................................4 IV. PROJECTS SUMMARY..............................................................................5 V. FINANCING THE CAPITAL IMPROVEMENT PLAN......................................12 ESTIMATED PROJECT COSTS...........................................APPENDIX A FINANCING PLAN...........................................................APPENDIX B SOURCES AND USES SCHDULES......................................APPENDIX C Page 2 City of Eagan, Minnesota Facilities Capital Improvement Plan 2016-2020 I. INTRODUCTION The Eagan City Council wishes to complete certain facilities capital improvement projects over the next five years, financed in large part by bonds to be repaid through ad valorem tax levies. Minnesota Statutes, Section 475.521 "Capital Improvement Bonds" generally exempts, under certain conditions, municipalities issuing bonds under a capital improvement program from the referendum election requirement of Section 475.58. The facilities will also be funded in part by cash appropriations. The City also prepares separate Capital Improvement Plans for its parks system, its streets and utilities infrastructure, and its vehicles and equipment. Those plans are not included in this document. A capital improvement as defined by MS Section 475.521 is an "acquisition or betterment of public lands, buildings, or other improvements for the purpose of a city hall, town hall, library, public safety facility, and public works facility," with a useful life of 5 years or more. Capital improvements under the Statute do not include light rail transit or related activities, parks, road/bridges, administrative buildings other than city or town hall, or land for those facilities. This Facilities Capital Improvement Plan ("CIP") is a document designed to anticipate capital improvement expenditures and schedule them over a five- year period. As potential expenditures are reviewed, the benefits, costs, alternatives and impact on operating expenditures are considered as well. The CIP also matches expenditures with anticipated income. This CIP is intended to fully comply with the requirements of MS Section 475.521. Page 3 The City of Eagan (the "City") believes the capital improvement process is an important element of responsible fiscal management. Major capital expenditures can be anticipated and coordinated so as to minimize potentially adverse financial impacts caused by the timing and magnitude of capital outlays. This coordination of capital expenditures is important to the City in achieving its goals of adequate physical public assets, preservation of public assets and sound fiscal management. Good planning is essential for the wise and prudent use of limited financial resources. The CIP is designed for an annual update. In this manner, it becomes an ongoing fiscal planning tool that continually anticipates future capital expenditures and funding sources. III. CAPITAL IMPROVEMENT PLANNING PROCESS The capital improvement planning process is as follows: • City Council authorizes the preparation of the CIP. • City staff assembles the capital expenditures to be undertaken within the next five years, as well as potential financing and revenue sources. • City Council then reviews the expenditures according to their priority, fiscal impact, and available funding. From this information, a preliminary CIP is prepared. • City Council conducts a public hearing on the CIP to solicit input from citizens, local business owners, and other interested parties. Changes may be made based on that input, and a final project dist is established. • City Council then prepares a CIP based on the available funding sources. If general obligation bonding is necessary, the City works with its financial advisor and bond attorney to prepare a bond sale and repayment schedule. Once the funding becomes available, including proceeds from the bond sales, the individual capital expenditures can be made. In subsequent years, the process of updating the plan to cover the next five years is repeated. For the City to use its authority to finance expenditures under Section 475.521, it must meet the requirements provided therein. Specifically, the City Council Page 4 must approve the sale of capital improvement bonds by three-fifths majority. In addition, it must hold a public hearing for public input. Notice of such hearing must be published in the official newspaper of the municipality at least 14, but not more than 28 days prior to the date of the public hearing. In addition, the notice may be posted on the City's official web site. The governing body considers adoption of the CIP following the public hearing. Although a referendum is not required, a reverse referendum is allowable. If a petition bearing the signatures of at least 5 percent of the votes cast in the last general election requesting a vote on the issuance of bonds is received by the municipal clerk within 30 days after the public hearing, a referendum vote on the issuance of the bonds shall be called. If a vote is taken and the referendum passes, the taxes would be levied on market value rather than tax capacity. IV. PROJECTS SUMMARY The expenditures to be undertaken with this Facilities CIP are limited to those listed below. Other public improvement projects, including streets, utilities and parks projects, as well as vehicles and equipment purchases, are considered in other Eagan CIP plans. The following expenditure estimates have been submitted for inclusion in this CIP: 2016 Estimated Expenditures ® New Fire Station 1 construction: $5,732,418 o Central Services Maintenance remodel/expansion—Phase 1: $5,182,341 2018 Estimated Expenditures ® Central Services Maintenance remodel/expansion—Phase 2: $4,031,772 ® City Hall and Police remodel/expansion: $9,312,765 The total of these projects is $24,259,296. Page 5 Per requirements of the Statute, the City must consider the following criteria for each project and the overall plan: 1. Condition of the City's infrastructure and need for the project 2. Demand for the improvement 3. Cost of the improvement 4. Availability of public resources 5. Level of overlapping debt 6. Cost/benefit of alternative uses of funds 7. Operating costs of the proposed improvements 8. Options for shared facilities with other cities or local governments Findings are as follows: New Fire Station 1 1. Condition of City's infrastructure and need for the project — This project will result in reducing the number of Eagan fire stations from five to three. The project contemplates consolidating three existing fire stations (#s 1, 3 and 5) into a new fire station, located at the corner of Blackhawk and Diffley Roads near 1-35E, where full-time and duty crew firefighters can be housed, and have easy freeway access to reduce response times. As the number of volunteer firefighters continues to dwindle, there are not enough to fully staff five fire stations. Expansion or remodeling of any of the existing three fire stations in the western part of the city is not feasible, and none of them are ideally located for fast response times to the entire western half of the city. 2. Demand for the improvement — The dwindling count of volunteer firefighters dictates the need for consolidation. The proposed new location, along with the potential for firefighters to be located at the station instead of having to drive to it when calls come in, should also result in improved response times to most addresses in its vicinity. 3. Cost of the improvement— In 2013, the City landbanked the property on which the proposed fire station will be constructed. The property cost was $625,000. The original architect plans had an estimated project cost of Page 6 $6,741,505. Through staff review, $1,009,087 in costs have been cut from the original plans, reducing the estimated cost of construction to $5,732,418. 4. Availability of public resources — The City will attempt to sell Fire Station 5 in the southwestern part of the City. Proceeds from the sale would reduce the net overall project cost. The City does not own the property on which Fire Station 3 sits, so it is not able to sell it. The existing Fire Station 1 property is in a residential area with very limited possibilities for reuse if not for a public purpose. If it were demolished and the property sold, the City would net little, if anything, from the sale. In addition, the City Council has instructed staff to place on its agenda the authorization to utilize $3.1 million in excess General Fund balance to reduce the amount of the bonds required for the projects in this CIP. 5. Level of overlapping debt — The City's current debt profile is considered low. Moody's and Standard and Poor's have both cited Eagan's low debt levels as support for their AAA/Aaa ratings (highest possible on their scales). Direct City debt and overlapping debt of the Eagan school districts, Dakota County and Metropolitan Council as of December 31, 2014 is as follows: Currently, the City is levying to pay back bonds on the Community Center and to pay back funds borrowed internally for construction of Northwood Parkway and Duckwood Drive bridges over I -35E, as well as a pedestrian bridge related to a center -running bus rapid transit stop at the Cedar Grove Page 7 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable Debt Overlapping Debt "School Districts: I.S.D. No. 191 - Burnsville $ 103,405,000 11.7 % ' $ 12,098,385 I.S.D, No. 196- RosemounVAV/Eagan 96,477,253 32.9 31,741,016 I.S.D. No, 197 - West St Paul 55,305,000 32.3 17,863,515 Dakota County 26,565,000 16.5 4,383,225 Regional: Metropolitan Council 21,040,000 2.2` 462,880 Subtotal, Overlapping Debt 66,549,021 Direct Debt City of Eagan 14,195,000 100.0 14,195,000 Total Direct and Overlapping Debt $ 80,744,021 Currently, the City is levying to pay back bonds on the Community Center and to pay back funds borrowed internally for construction of Northwood Parkway and Duckwood Drive bridges over I -35E, as well as a pedestrian bridge related to a center -running bus rapid transit stop at the Cedar Grove Page 7 Transit Station. Those two levies are set to expire in the next few years. The debt for this project and others in this CIP will be structured such that when the payments on the Community Center and bridges are done, the same amount or less will then be levied for these projects in this CIP. Essentially, the capital tax levy after the new bonds are issued is expected to be at the same level as, or less than, the current capital tax levy. 6. Cost/benefit of alternative uses of funds — The trend, both locally and nationally, is that it is getting harder every year to recruit and retain volunteer firefighters. The number of volunteer firefighters in Eagan has been dropping for several years and the trend is expected to continue. It is now difficult to staff five stations with volunteers. Consolidation of fire stations must be a part of the solution. As noted earlier, remodeling any of the existing Stations 1, 3, or 5 to accommodate full-time staff and duty crews stationed at the facilities is not feasible. To improve fire call response times, the City needs at least two stations that can house full-time and/or part-time duty crew staff to augment its volunteers. 7. Operating costs of the proposed improvements — Annual operating costs are estimated at $25,000 above current maintenance costs on the existing fire stations. 8. Options for shared facilities with other cities or local governments — As time is of the essence in any emergency, it is important to have stations that are strategically located to facilitate a fast response. Sharing existing facilities in other cities is not an option in responding to calls in a timely manner. It should be noted that Eagan has existing mutual aid agreements with all its neighboring cities in the case of calls that require a significant response and/or are of an extended duration. Such agreements will stay in place with the construction of the new fire station. Page 8 Central Services Maintenance Remodel/Expansion 1. Condition of City's infrastructure and need for the project–This project will increase the useful life of City assets and improve operations efficiency by doubling the heated space for storage of vehicles and equipment, enhancing cold storage and salt storage, and adding a vehicle wash bay. Currently, with so much equipment packed into the existing facility space, drive-through lanes are blocked and many vehicles and pieces of equipment are inaccessible without moving one or more items. Worker safety and productivity will be improved by enhancing interior lighting and increasing employee work space for vehicle maintenance, sign shop, welding/fabrication, carpentry, and small engine repairs. In addition, the aging office space will be remodeled to achieve ergonomic improvements and meet ADA requirements. 2. Demand for the improvement –The existing maintenance facility was constructed in 1985 and expanded in 1989 when the City was at its peak of growth. The proposed project is the final phase of the original expansion plans. In order to attract and retain good workers, a safe and pleasant work environment that fosters productivity is desirable. 3. Cost of the improvement – Phase 1, originally estimated at a cost of $5,472,245, was reduced in scope through staff review by $289,904, lowering the revised Phase 1 cost to $5,182,341. Similar reductions proposed by staff have reduced the original Phase 2 cost of $4,514,562 by $482,790 to $4,031,772. Total cost of both phases is estimated at $9,214,113. 4. Availability of public resources – As noted in the Fire Station 1 discussion on page 7, the City Council has instructed staff to place on its agenda the authorization to utilize $3.1 million in excess General Fund balance to reduce the amount of the bonds required for the projects in this CIP. The $3.1 million specifically will reduce the amount of bonds to be issued for project work scheduled in 2016—that is, the new fire station and Phase 1 of this maintenance facility. In addition, $1.25 million of the Central Services Maintenance facility project costs are related to public utilities, and will be funded by the Public Utilities enterprise fund, further reducing the amount of bonds to be issued. Page 9 5. Level of overlapping debt – See comments in the Fire Station 1 discussion on page 7. 6. Cost/benefit of alternative uses of funds – One alternative use of funds would be to not do anything and, thus, reduce property taxes. This may result in a deterioration of services to the citizenry over the years, as well as higher vehicle and equipment costs due to greater exposure to the elements. Doing nothing will likely decrease worker safety. Another alternative would be to hire additional maintenance staff to make up for the inefficiencies and unproductivity resulting from current conditions. In addition, more frequent purchases of vehicles and equipment would be required because their useful lives would be shorter if the equipment is not garaged. Generally, the Council believes it is in the best interests of the public, the City's assets and City staff that the City be good stewards of its vehicles and equipment, and take reasonable steps to protect and care for its workers. 7. Operating costs of the proposed improvements – Annual operating costs for building maintenance are estimated to increase $9,400 after the proposed improvements are made. 8. Options for shared facilities with other cities or local governments –The maintenance facility is essential to City operations. When snow and ice create hazardous road conditions, it is important to have a local base for snowplows so that they can readily access city streets. It would be impractical to share such facilities with another city. City Hall and Police Remodel/Expansion 1. Condition of City's infrastructure and need for the project –This 2018 project will remodel the workspaces in both City Hall and the Police Department to meet current staffing needs. Additional office space and meeting space will be created, as well as an expansion of both male and female locker rooms in the Police Department. Further, a garage for Police vehicles—which comprises one-half of the total project cost—will be built for the safety of Page 10 Police staff entering and leaving the building and to protect and extend the useful lives of Police vehicles. The City Hall/Police facility was expanded in 1995 and was designed at that time with a 20 -year outlook. 2. Demand for the improvement — Compared to 20 years ago, much more of the business of today's Police Department involves detective work. For example, investigating stolen identities and internet crimes involves staff working in the office instead of patrolling the streets. As a result, the Police Department needs more office space than ever, and it appears the nature of crimes will continue this trend. In addition, as officers come and go from the building, there seems to be a greater risk to their safety than there was 20 years ago, hence the need for a secure garage facility. The needs of staff at City Hall have increased, too. The Information Technologies department has more than doubled in size since 1995. Communications staff has increased as well. 3. Cost of the improvement — The original estimate, including contingency and anticipated inflation through 2018, was $9,902,765. Staff has proposed reducing the size of the Police parking garage, resulting in a cost reduction of $590,000, which puts the revised project cost at $9,312,765. 4. Availability of public resources — At this time, no other sources of public funds have been identified other than a levy for debt service. This project is scheduled for 2018. In the event the General Fund accumulates funds over and above the City Council's established fund balance targets by 2018, such funds could potentially be utilized to reduce the amount of borrowing required for this project. 5. Level of overlapping debt — See comments in the Fire Station 1 discussion on page 7. 6. Cost/benefit of alternative uses of funds — One alternative the City Council considered was utilization of the vacant Fire Administration building across the street from City Hall. It has been determined that if the Fire Administration building can be sold for a reasonable price, it will be less costly to add on to the proposed City Hall/Police expansion than to remodel Fire Administration to fit the City's space needs. Because the project is not Page 11 scheduled until 2018, the City will have the opportunity to try to sell the Fire Administration building in the meantime. If it does not sell before 2018, the Council may reconsider using it in lieu of a portion of the proposed building expansion. As with the proposed Central Services maintenance facility discussed on page 10, other alternatives include reduction of taxes for operations through reduced service levels, though that would likely be offset to some extent by more frequent purchase of vehicles and equipment because of their exposure to the weather. Again, the Council believes it is in the best interests of the public, the City's assets and City staff that the City be good stewards of its vehicles and equipment, and take reasonable steps to protect and care for its workers. 7. Operating costs of the proposed improvements —Annual operating costs for building maintenance are estimated to increase $39,000 as a result of the proposed improvements. 8. Options for shared facilities with other cities or local governments — As with the maintenance facility, the City Hall and Police facilities are essential to the residents and business who conduct business at the City and who receive the public protection of the Police Department. It is not feasible to share a City Hall or Police headquarters with another city at this point. V. FINANCING THE CAPITAL IMPROVEMENT PLAN The City Council has expressed its desire to maintain or reduce the current capital -related tax burden on a going -forward basis; the Council does not want the non-operating tax levy to increase as a result of these CIP projects. Currently, two significant levies totaling about $2.3 million annually are set to expire in the near future. The $1.1 million annual levy for payment of the Community Center/Central Park bonds will expire in 2020. The $1.2 million annual levy to pay back internal loans for the 1-35E overpasses and the proposed Cedar Grove transit station pedestrian bridge is set to expire in 2018. By cutting the overpasses levy in half and extending it three more years, and with making Page 12 interest -only payments on the proposed bonds for a short time, the Council's goal of maintaining or reducing the overall non-operating tax levy can be achieved, assuming interest rates do not skyrocket in the near future. MS Section 475.521 places a maximum on the amount of annual debt service on all bonds issued under this authority to not equal or exceed 0.16% of the estimated market value of property in the municipality. For the City's 2014 estimated market valuation, this maximum annual debt service would be approximately $10.6 million. The projected debt service for bonds issued under this statute for the CIP is approximately $2 million. Appendix A itemizes the projects and associated cost estimates contemplated under this 2016-2020 Facilities CIP. Appendix B shows the financing plan, including the levy reductions from the two levies that will be expiring, and the levy impact of the new debt issues proposed for 2016 and 2018. The far right-hand column indicates the levy going forward will remain at $2.3 million annually through 2021 (including debt not issued under this statute) and then drop to $1.9 million thereafter (debt service for bonds issued under this statute). Appendix C is a schedule of Sources and Uses for the 2016 and 2018 bond issues based on current estimates. Continuation of the Capital Improvement Plan This Capital Improvement Plan should be reviewed annually by the City Council using the process outlined in this Plan. It should review proposed expenditures, make priority decisions, and seek funding for those expenditures it deems necessary for the City. If deemed appropriate, the Council should prepare an update to this Plan. Page 13 APPENDIX A Estimated Project Costs 2016 2017 2018 2019 2020 New Fire Station 1 $ 5,732,418 - - - Central Services Maintenance expansion/remodel 5,182,341 $ 4,031,772 - - Police and City Hall expansion/remodel 9,312,765 - $ 10,914,759 $ 13,344,537 Page 14 r 6' Financing Plan Assumptions: 1) The 2016 Bonds finance net project proceeds of $6,517,759 2) Interest rates for the 2016 Bonds are current NBQ rates + 50bp 3) The 2018 Bonds finance net project proceeds of $13,344,537 4) Interest rates for the 2018 Bonds are current NBQ rates + 100bp 5) The 2018 Bonds have 3 years of capitalized interest with principal beginning in 2022 6) Debt service shown for the bridges/exchanges has been provided by the City 7) Debt service for the 2009B Bonds, 2016 Bonds and 2018 Bonds are show n at the 105% overlevy Page 15 Existing Debt Service Projected Future Debt Service Payment 2009B GO Fac Ref Bridges/ Total Existing $9,840,000 $15,175,000 Levy Year Date Bonds Exchanges Debt Service 2016 Bonds 2018 Bonds TOTAL 2014 02/01/20161 1,120,927.50 1,200,000.00 2,320,927.50 2,320,927.50 2015 02/01/2017 1,119,615.00 612,000.00 1,731,615.00 180,287.18 1,911,902.18 2016 02/01/2018 1,122,765.00 624,420.00 1,747,185.00 520,844.63 2,268,029.63 2017 02/01/2019 1,124,970.00 636,725.00 1,761,695.00 506,842.88 2,268,537.88 2018 02/01/2020 1,113,210.00 649,459.00 1,762,669.00 507,682.88 2,270,351.88 2019 02/01/2021 1,119,300.00' 662,448.00 1,781,748.00 486,696.00 2,268,444.00 2020 02/01/2022 675,697.45 675,697.45 486,417.76 1,106,579.25 2,268,694.45 2021 02/01/2023' 646,031.00 646,031.00 485,315.25 1,137,003.00 2,268,349.25 2022 02/01/2024' 488,759.25 1,412,118.75' 1,900,878.00 2023 02/01/2025 486,244.50 1,410,297.00 1,896,541.50 2024 02/01/2026 488,381.25 1,411,425.75 1,899,807.00 2025 02/01/2027 484,344.00 1,410,454.50 1,894,798.50 2026 02/01/2028 485,079.00 1,412,554.501 1,897,633.50 2027 02/01/2029 484,827.00 1,411,746.00 1,896,573.00 2028 02/01/2030 488,276.25 1,414,134.75 1,902,411.00 2029 02/01/2031 485,554.13 1,413,200.25 1,898,754.38 2030 02/01/2032 487,512.38 1,412,462.63 1,899,975.00 2031 02/01/2033 483,443.63 1,414,176.75 1,897,620.38 2032 02/01/2034 484,031.63 1,413,357.75 1,897,389.38 2033 02/01/2035, 483,813.75 1,414,612.50 1;898,426.25 2034 02/01/2036 488,024.25 1,412,987.63 1,901,011.88 2035 02/01/2037 485,940.00 1,419,579.00 1,905,519.00 Total $6,720,787.50 $5,706,780.45 $12,427,567.95 $9,978,317.56 $22,026,690.00 $44,432,575.51 Assumptions: 1) The 2016 Bonds finance net project proceeds of $6,517,759 2) Interest rates for the 2016 Bonds are current NBQ rates + 50bp 3) The 2018 Bonds finance net project proceeds of $13,344,537 4) Interest rates for the 2018 Bonds are current NBQ rates + 100bp 5) The 2018 Bonds have 3 years of capitalized interest with principal beginning in 2022 6) Debt service shown for the bridges/exchanges has been provided by the City 7) Debt service for the 2009B Bonds, 2016 Bonds and 2018 Bonds are show n at the 105% overlevy Page 15 Qmt $6,660,000 City of Eagan, Minnesota General Obligation Capital Improvement Plan Bonds, Series 2016 Option 3 - May 29, 2015 Sources & Uses Dated 04/01/2016 i Delivered 04/01/2016 Sources Of Funds ParAmount of Bonds............................................................................................................................................. $6,660,000.00 CityCash Contribution............................................................................................................................................ 3,147,000.00 UtilityFunds............................................................................................................................................................ 1,250,000.00 TotalSources...................................................................................................................................................... $11,057,000.00 Uses Of Funds NewFre Station.................................................................................................................................................... 5,732.418.00 CSMPhase 1.......................................................................................................................................................... 5,182,341.00 Costsof Issuance.................................................................................................................................................. 75.000.00 Total Underwriter's Discount (1.000%)................................................................................................................ 66,600.00 RoundingAmount................................................................................................................................................... 641.00 TotalUses............................................................................................................................................................ $11,057,000.00 $15,175,000 City of Eagan, Minnesota General Obligation Capital Improvement Plan Bonds, Series 2018 Option 3 - May 29, 2015 Sources & Uses Dated 04/01/2018 1 Delivered 04/01/2018 Sources Of Funds ParAmount of Bonds............................................................................................................................................. $15,175,000.00 TotalSources...................................................................................................................................................... $15,175,000.00 Uses Of Funds Police/City Hall........................................................................................................................................................ 9,312,765.00 CSMPhase 2.......................................................................................................................................................... 4,031,772.00 Deposit to Capitalized Interest (CIF) Fund.............................................................................................................. 1,597,674.17 Total Underwriter's Discount (1.000%)................................................................................................................ 151,750.00 Costsof Issuance.................................................................................................................................................. 80,000.00 RoundingAmount................................................................................................................................................... 1,038.83 TotalUses............................................................................................................................................................ $15,175,000.00 Page 16 MINNESOTA STATUTES 2014 475.521 475.521 CAPITAL IMPROVEMENT BONDS. Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given (a) "Bonds" mean an obligation defined under section 475.51. (b) "Capital improvement" means acquisition or betterment of public lands, buildings or other im- provements for the purpose of a city hall, town hall, library, public safety facility, and public works facility. An improvement must have an expected useful life of five years or more to qualify. Capital improvement does not include light rail transit or any activity related to it, or a park, road, bridge, administrative building other than a city or town hall, or land for any of those facilities. For purposes of this section, "capital im- provement" includes expenditures for purposes described in this paragraph that have been incurred by a mu- nicipality before approval of a capital improvement plan, if such expenditures are included in a capital im- provement plan approved on or before the date of the public hearing under subdivision 2 regarding issuance of bonds for such expenditures. (c) "Municipality" means a home rule charter or statutory city or a town described in section 368.0 1, subdivision 1 or 1a. Subd. 2, Election requirement. (a) Bonds issued by a municipality to finance capital improvements under an approved capital improvements plan are not subject to the election requirements of section 475.58. The bonds must be approved by an affirmative vote of three-fifths of the members of a five -member governing body. In the case of a governing body having more or less than five members, the bonds must be approved by a vote of at least two-thirds of the members of the governing body. (b) Before the issuance of bonds qualifying under this section, the municipality must publish a notice of its intention to issue the bonds and the date and time of the hearing to obtain public continent on the matter. The notice must be published in the official newspaper of the municipality or in a newspaper of general circulation in the municipality. Additionally, the notice may be posted on the official Web site, if any, of the municipality, The notice must be published at least 14 but not more than 28 days before the date of the hearing. (c) A municipality may issue the bonds only after obtaining the approval of a majority of the voters voting on the question of issuing the obligations, if a petition requesting a vote on the issuance is signed by voters equal to five percent of the votes cast in the municipality in the last municipal general election and is filed with the cleric within 30 days after the public hearing. If the municipality elects not to submit the question to the voters, the municipality shall not propose the issuance of bonds under this section for the same purpose and in the same amount for a period of 365 days from the date of receipt of the petition. If the question of issuing the bonds is submitted and not approved by the voters, the provisions of section 475.58, subdivision la, shall apply, Subd. 3. Capital improvement plan. (a) A municipality may adopt a capital improvement plan. The plan must cover at least a five-year period beginning with the date of its adoption, The plan must set forth the estimated schedule, timing, and details of specific capital improvements by year, together with the estimated cost, the need for the improvement, and sources of revenue to pay for the improvement. In preparing the capital improvement plan, the governing body must consider for each project and for the overall plan: (1) the condition of the municipality's existing infrastructure, including the projected need for repair or replacement; Copyright 0 2014 by the Revisor of Statutes, State of Minnesota, All Rights Reserved, Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA K. Interim Use Permit Withdrawal — Tyson & Stephanie Bramer Action To Be Considered: To acknowledge the withdrawal of the Interim Use Permit application for short-term rentals at 3672 Pinecrest Court. Required Vote For Approval: Majority of Council Members Present Facts: ➢ At their May 5, 2015 regular meeting, the City Council continued this item to the September 15, 2015 Council meeting. ➢ The City Council considered short-term rentals, generally, at a Work Session held August 11, 2015 and determined that they were not interested in supporting short-term rentals in single family residential districts. ➢ The Bramers formally withdrew their application on August 21, 2015. Attachments: (1) CK -1 Withdrawal email From: Stephanie B To: Mike Ridlev Subject: Application Request Date: Friday, August 21, 2015 11:58:10 AM Mike, This email is to confirm we will be withdrawing our request for a interim use permit. Thanks, Stephanie & Tyson Bramer Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA L. Project 1123, Cedar Heights Addition Final Assessment Roll Action To Be Considered: Receive the Final Assessment Roll for Project 1123 (Cedar Heights Addition - Street Improvements) and schedule a public hearing to be held on October 20, 2015. FACTS: ➢ Project 1123 provided 1,800 feet of street improvements within the Cedar Heights neighborhood in southwest Eagan as outlined and discussed in the feasibility report and approved by the City Council at the public hearing held on December 2, 2014. ➢ The project, constructed under Contract 15-02, has been completed, all costs tabulated and the final assessment roll prepared. The assessments are based upon the City of Eagan's current Special Assessment Policy for all such assessable properties. ➢ The roll is now being presented to the Council for their consideration of scheduling a public hearing to formally present the final costs to be levied against the benefited properties. ➢ An informational neighborhood meeting will be scheduled prior to the final assessment hearing with the affected property owners to address any concerns. Attachments: (0) Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA M. Project 1166, St. Charles Wood Final Assessment Roll Action To Be Considered: Receive the Final Assessment Roll for Project 1166 (St. Charles Wood - Street Improvements) and schedule a public hearing to be held on October 20, 2015. FACTS: ➢ Project 1166 provided for approximately 1,000 feet of street improvements within the St. Charles Wood neighborhood in southwest Eagan, as outlined and discussed in the feasibility report and approved by the City Council at the public hearing held on December 2, 2014. ➢ The project, constructed under Contract 15-02, has been completed, all costs tabulated and the final assessment roll prepared. The assessments are based upon the City of Eagan's current Special Assessment Policy for all such assessable properties. ➢ The roll is now being presented to the Council for their consideration of scheduling a public hearing to formally present the final costs to be levied against the benefited properties. ➢ An informational neighborhood meeting will be scheduled prior to the final assessment hearing with the affected property owners to address any concerns. Attachments: (0) Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA N. Project 1168, Waters Edge Final Assessment Roll Action To Be Considered: Receive the Final Assessment Roll for Project 1168 (Waters Edge - Street Improvements) and schedule a public hearing to be held on October 20, 2015. FACTS: ➢ Project 1168 provided for approximately 900 feet of street improvements within the Waters Edge neighborhood in southwest Eagan as outlined and discussed in the feasibility report and approved by the City Council at the public hearing held on December 2, 2014. ➢ The project, constructed under Contract 15-02, has been completed, all costs tabulated and the final assessment roll prepared. The assessments are based upon the City of Eagan's current Special Assessment Policy for all such assessable properties. ➢ The roll is now being presented to the Council for their consideration of scheduling a public hearing to formally present the final costs to be levied against the benefited properties. ➢ An informational neighborhood meeting will be scheduled prior to the final assessment hearing with the affected property owners to address any concerns. Attachments: (0) Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA 0. Project 1074, Braun Sunrise Addition Final Assessment Roll Action To Be Considered: Receive the Final Assessment Roll for Project 1074 (Braun Sunrise Addition - Street Improvements) and schedule a public hearing to be held on October 20, 2015. FACTS: ➢ Project 1074 provided 410 feet of street improvements within the Braun Sunrise Addition in central Eagan as outlined and discussed in the feasibility report and approved by the City Council at the public hearing held on December 16, 2014. ➢ The project, constructed under Contract 15-02, has been completed, all costs tabulated and the final assessment roll prepared. The assessments are based upon the City of Eagan's current Special Assessment Policy for all such assessable properties. ➢ The roll is now being presented to the Council for their consideration of scheduling a public hearing to formally present the final costs to be levied against the benefited properties. ➢ An informational neighborhood meeting will be scheduled prior to the final assessment hearing with the affected property owners to address any concerns. Attachments: (0) Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA P. Inflow & Infiltration (I&I) Program Surcharge Appeals Action To Be Considered: Approve the recommendations of the Public Works Committee regarding various appeals to Inflow & Infiltration (I&I) Program surcharges. Facts: On September 1, 2009, the City Council adopted an amendment to City Ordinance 3.40 regarding the Rules and Regulations relating to Sanitary Sewer Service that requires compliance with a mandatory inspection program and any related corrective work orders. ➢ On December 15, 2009, the City Council implemented the Inflow and Infiltration (I&I) Inspection Program/Policy to eliminate clearwater flow from the sanitary sewer system. ➢ Part of the amendments, and accordingly the I&I Inspection, incorporated fee schedules that provided surcharges be placed against utility billing accounts for those properties that either didn't schedule an inspection or did not complete a resulting corrective work order within the prescribed time frame. ➢ The Surcharge Fee is $150 per month for Single Family properties and $500 per month for all others. As of this year, the City has levied approximately 1600 surcharges (252 of these being removed) totaling over $200,000. Several of these surcharges represent multiple months for the same property. ➢ To date, staff has received 75 surcharge appeals (0.3% of all I&I inspected properties). In anticipation of such appeals, the Council directed the Public Works Committee to review any appeals and provide their recommendation back to the Council under the Consent Agenda. Staff has recently heard from 3 of these properties who want to appeal their remaining surcharge(s). ➢ At the September 1, 2015, Public Works Committee meeting, the Committee addressed the following surcharge appeals with the corresponding recommendations for the Council's action. As a result of their review, the appeals are recommended to be granted with related surcharges waived. o Andrea Sanchez, 1522 Aspen Drive — Remove $150 surcharge (utility account) o Julie Adu-Gyamfi, 3812 Willow Way— Remove $150 surcharge (utility account) o Brian Weigel, 1951 Berkshire Drive — Remove $150 surcharge (utility account) Attachments: (0) Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA Q. Cloverleaf Cold Storage Sewer Credit Request Action To Be Considered: Approve the recommendation of the Public Works Committee regarding a request from Cloverleaf Cold Storage, 2864 Eagandale Boulevard, to credit the sanitary sewer portion of their November, 2014, utility bill $3,144.82. Facts: ➢ Cloverleaf Cold Storage provides USDA inspected refrigerated warehouse services at 16 sites in 8 states. Their Eagan facility, located at 2864 Eagandale Boulevard, has 3 million cubic feet of mixed storage including a dry warehouse, a cooler and a freezer. ➢ There are water customers within the City of Eagan that utilize water for purposes that do not involve the discharging of the used water into the sanitary sewer. Examples include Coca Cola for the production of their product and Thomson Reuters for the cooling tower utilized by their HVAC system, most notably for the cooling of their significant computer system. Cloverleaf Cold Storage has a similar situation due to their use of a cooling tower as part of their refrigeration/freezer system. ➢ Sanitary sewer charges on City of Eagan utility bills are typically based upon the metered amount of water used by the individual property/user. Sanitary sewer charges are in accordance with the costs charged to the City by the Met Council Environmental Services and are typically 3 to 4 times the cost of the water. Customers with significant water usage, much of which may not be discharged into the sanitary sewer, often utilize a metering system to subtract the non-sewered water from the metered water to reduce the cost of the sanitary charge on their utility bill. ➢ Cloverleaf utilized a deduct meter in the past to account for the portion of their metered water that was not discharged into the sanitary sewer. The City of Eagan is not responsible for the maintenance or operation of the deduct meter. ➢ In the fall of 2014, Utilities staff helped Cloverleaf correct plumbing issues at their Eagan facility to enable the water meter for the cooling tower to become a "water only" account to avoid paying sanitary sewer charges. ➢ At some point between April 2007 and November 2014, the deduct meter utilized by Cloverleaf was replaced or began to malfunction. As a result, it is possible that some of the sanitary sewer charges on their utility bills were not reflective of the actual use. ➢ Cloverleaf is asking the City to split the $6,289.65 sanitary sewer charge from the November utility bill. The sewer charge addresses the final period of time before the plumbing correction. Cloverleaf claims the metered water was used for the cooling tower and never went down the sewer. ➢ At the September 1, 2015, Public Works Committee meeting, the Committee addressed the following surcharge appeals with the corresponding recommendations for the Council's action. As a result of their review, the request is recommended to be granted with 50% of the sanitary sewer charge being refunded. Attachments: (0) Agenda Information Memo September 15, 2015, Eagan City Council Meeting CONSENT AGENDA R. Declare bicycles, unclaimed property and miscellaneous City property to be surplus. Action To Be Considered: To declare bicycles, unclaimed property and miscellaneous City property to be surplus. Facts: ➢ Throughout the year, the City acquires a variety of unclaimed bicycles, unclaimed property and other miscellaneous property. After the items are declared to be surplus by the City Council, State Law permits the City to sell them. ➢ The City Council approved an agreement with PropertyRoom.com, an online auction service specializing in the disposition of unclaimed surplus property. Prior to the sale of the property through PropertyRoom.com, the appropriate legal notice will be published in Sun Thisweek Newspaper. ➢ Before the designation of surplus property, a list of the items is circulated to all departments and, if there remains any public use for the property, it is reallocated to the appropriate department instead of being sold. ➢ In some cases, if items have little or no value due to their condition, disposal is the best option. Per the City's Policy for the Sale of Surplus City Property, surplus property that is damaged or has nominal or no value may be deemed refuse or may be recycled. Attachments: (1) CR -1 Surplus Property List City of Eagan Surplus List September 15, 2015 • A+ t -shirt, XL, white t -shirt, picture gold chain • Seven Souls t -shirt, blue & cream polo, XL • Big B Allsport, XXL, solid blue jersey • Windham Pointe, XL, red polo with pocket • Basic Equipment, XL, green shirt • Sean John, XL, navy blue t -shirt, Sean John graphic • Militree, XXL, gray t -shirt, pink graphic • Able, XL, brown shirt, triangle pattern • Seven Souls t -shirt, red/yel/blk polo, M • Platinum Fubu, XL • Platinum Fubu, L, light bl, Harlem Globetrotters • Chino, 3XL, camo • Griffin, 4XL, white • AK:cess, 2XL, blk, pink, white • South Pole, 2XL, blk t -shirt • Seven Souls, L, blue, polo • White, 3XL, A+ T-shirt "Old School" • Blk M, Rocawear t -shirt "Teamioc" • Gray Ralph Lauren duffle bag • Orange 2XL Fubu Jersey "Fat Albert" • Red XL Fubu Jersey "Fat Albert" • Black 2XL Fubu Jersey "Fat Albert" • Orange XL Fubu Jersey "Fat Albert" • Black XL Fubu Jersey "Fat Albert" • American Flag Bandanas • Blue Bandanas • Orange Bandanas • Snoopy cell phone cases, pink, orange, blue • White gold with diamonds (stones) watch • Band watches, 1 green, 1 blue (9650700) • Silver skull belt buckle with hair strands • Barred glasses, 2 black, 1 white • Red stocking cap • Red bill stocking caps • Re:Verm body spray • Belt buckles skull • J. G. Hook Wallets • Mexican Flag • Gold belt buckle • Silver cat belt buckle • Blue UCLA sz 60 Jersey #32 • Black L Fubu jersey "Fat Albert" • Red S, Studio Works t -shirt • Yellow Flowered Bandana • White stocking caps • White stocking cap with bill • Blue Sean John t -shirt L • Camo Chino t -shirt 2XL • AKcess, XL, white t -shirt, blk graphic • Seven Souls, L, red, blue, orange polo • Black & red duffle bag w/compass design • Black & gray Leeds backpack • Garmin Nuvi • Silver Ring • Earrings • Coleman Tent in Bag • Fold -up Chair in Bag • Plano Tackle Box Full of Tackle • Garmin GPS • Promaster Camera Bag • Toshiba Portable DVD Player • Garmin GPS • Cannon ip 2600 Printer • Black Purse • Maroon Bag • Black Women's Wallet • Misc. Tools • Multi Media Receiver • Multi Media Receiver • Sony Car Stereo • PSP Go • JVC Movie Camera • Garmin Nuvi GPS • Parrot Hands Free Calling • 1 pair Pants • 1 pair Nike Shoes • Yard Machine Trimmer • Wii System and Accessories • Paul Mitchell Hair Styling Tool • Baltic Amber Home Ambience Diffuser • Craftsman Car Jack • Disc Golf Bag w/9 Discs • 2 Purses, 2 Shirts, 2 Mittens • 4 Nintendo Games, HDMI Cord, 6 Wii Games, 4 CD Movies • Glass Baking Tray and Tin Baking Tray • Belkin iPod Tuner • Cannon Power Shot SX1301S Camera • MSI Wnd Notebook Computer • Discovery Projector • DVD "Vexhile" • Ink Pens • Radar Detector • 2 Paintball Guns • Oral B Electric Toothbrush • Wireless Router • DVD "Twelve" • DVD "Spin" • Electrolux Vacuum • xBox 360 • Backpack • Garmin Nuvi 1490 (X2) • Bluetooth Wireless Headset • 2 Men's Belts • Yellow Purse • Brown Purse • Costume Jewelry • Box of Purses • Misc. Clothing • Misc. Clothing • Blue Bin w/Clothes & Misc. Items • Welder • Compound Bow in Case • Brown Purse • Black Leather Purse • Black Canvas Purse 0 Tom Tom GPS • Oakley Sunglasses • HP R927 Photo Smart Camera • PS 3 Bluetooth Head set • 2 DVD Movies • 2 Wall Plates Oak • Clothing and Water Bottle • Clothing • 5 pairs Shoes • 1 pair Shoes • Jacket • Clothing • 1pair Shoes 0 Clothing • Pedal Pushers • Accessories • 12 pair Shoes • Silver Necklace • Freshwater Pearl Necklace, 10 CT Gold Ring, Diamond Bracelet • iPod w/ear buds • Samari knife/sword • Samari knife/sword • Long black knife/sword w/asian lettering i Long black knife/sword • Nylon Sheath w/ 2 pockets holding #3 & #4 • Huffy Trail Runner 24" Girls Pink & Grey Next 20" Blue bike • 26" Boys Blue and Silver bike • 26" Boys Painted Black bike • Next 24" Girls Power Climber Pink bike • Kent Trouble 20" Girls White bike • Magna Grey bike • Gt Timberline 26" Boys Blue bike • Trek 4300 26" Boys Blue Silver bike • Magna Vermillion 26" Boys Green bike • Ventura Coast King 26" bike • Girls Red bike • Mongoose D&R AL 26" Boys Silver bike • Schwinn Ranger 24"Girls Purple/White bike • Specialized Hard Rock 26" Boys Yellow bike • Roadmaster Chaomium Edition 26" Green bike • Schwinn Criss Cross 26" Girls Purple bike • Triax PK 7 26" Boys Silver bike • Roadmaster Granite 24" Boys Gray bike • X Games Street Stock 20" Boys Silver bike • Magna Glacier PT 24" Girls Blue & Grey bike • Trek Mountain Track 830 26" Boys bike • Purple w/blk,purple & Red cable locks bike • Diamond Back Sorrento 26" Boys Black bike • Schwinn Mirada 26" Blue bike • Murry Ultra Terrain 26" Grey bike • Next Citaus FX20 20" Boys Green bike • Next Power Climber 26" Blue bike • Huffy Stalker 26" Black bike • Magna Excitor 24" Boys Blue bike • Magna MN Tamer 20" Boys Purple bike • Trek 510 27" Blue bike • Stage One Le Tour De France 25" Yellow/White bike • Huffy Expedition 26" Boys Blue bike • USA Team USA Red White & Black 20" Boys bike • Kent Free style 18" Boys Yellow bike • Next Feel the Heat 20" Boys Lime Green bike • Magna Great Divide 26" Boys Blue/Silverbike Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA Authorize Final Payment of Contract 15-05 to MP Nexlevel LLC, Inc. and Close Out Contract Action To Be Considered: Authorize Final Payment of Contract 15-05 to MP Nexlevel LLC, Inc. and Close Out Contract. Facts: ➢ On February 3rd, 2015 Council awarded MP Nexlevel LLC, Inc. contract 15-05 base and alternate bids to move existing AccessEagan facilities to the new DataBank data center. The base bid and alternate total was $159,458.41. DataBank agreed to contribute $12,825 to cover the difference between winter and summertime rates. ➢ Connecting AccessEagan fiber into the DataBank data center provides the network with greater stability and more options to bring on new service providers to the Eagan market. This facility will allow AccessEagan to make easier cross -connection within the DataBank "Meet Me Rooms (MMR)" to other telcos. AccessEagan will place it's fiber into two DataBank MMR's (north and south entrance) and store its equipment in one of the MMR's. ➢ While work was being performed in the field it was determined that the City had additional pipe in the ground and was given a credit of $5,671. The final payment to MP Nexlevel LLC, Inc. should be $153,787.41. Attachments: The contract is available from the City Clerk's Office. Agenda Information Memo September 15, 2015 Eagan City Council Meeting ,Ito] 10 M4►1i_TC14L1I P T. Approve conduit lease agreement with Arvig Enterprises, Inc. Action To Be Considered: Approve conduit lease agreement with Arvig Enterprises, Inc. Facts: ➢ As part of the fiber relocation into Data Bank facilities in April, 2015, the City ran two additional 1 %" conduits to the DataBank data center because of the congested right-of-way in this corridor. ➢ These additional conduits are located on the northeast corner of Yankee Doodle Road and Lexington Blvd. The conduits head north along the east side of Lexington Blvd. to the northeast corner of Neil Armstrong Blvd. ➢ Arvig will be intercepting one of the two conduits at each location listed above and placing a vaults over top the conduit. ➢ Arvig agrees to pay the City $2,002.50 on an annual basis for a 10 year term. In addition, Arvig agrees to pay any inspection and installation project management fees associated with the project, not to exceed $3,000. Attachments: The contract is available from the City Clerk's Office. Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA U. Approve Contract with Quality Business Solutions (QBS) for a Payment Card Industry (PCI) Reassessment of the City's Credit Card Payment Security, Policies and Procedures Action To Be Considered: Approve Contract with Quality Business Solutions (QBS) for a Payment Card Industry (PCI) Reassessment of the City's Credit Card Payment Security, Policies and Procedures Facts: ➢ On June 7, 2011 Council approved a contract to engage QBS to perform a PCI assessment of the City's credit card payment network. They recommended new security practices, and assisted the City with creating new policies and procedures for credit card transactions. ➢ In November of 2013, the City became compliant in the PCI -DSS version 2.0 SAQ- C requirement. Since then, the Payment Card Industry has come out with new PCI -DSS version 3.0 requirements. The City recommends utilizing QBS to reassess the City's credit card transaction network and provide recommendations based off of the new requirements. ➢ A contract is proposed with QBS to provide the following services: (a) Reassess the changes of PCI -DSS version 2.0 to version 3.0, (b) update the City's PCI security policy to reflect the new changes, (c) and provide annual security awareness training for users whose job requires them to handle credit card transactions. ➢ QBS will charge the City $6,000to perform the aforementioned services, which is included in the 2015 Information Technologies budget Attachments: The contract is available from the City Clerk's Office. Agenda Information Memo September 15, 2015 Eagan City Council Meeting CONSENT AGENDA V. Approve Contract with FRSecure LLC for an Information Security Scan and Assessment Action To Be Considered: Approve Contract with FRSecure LLC for an Information Security Scan and Assessment Facts: ➢ As part of new requirements from the BCA and the Minnesota State Legislature, government entities shall conduct a comprehensive security assessment of any personal information maintained by the government entity. ➢ This audit will review the City's network architecture and management practices, perform a thorough vulnerability scan of the internal network, prioritize the risks identified and provide a roadmap for the IT staff to remediate risks found. ➢ In addition, this security assessment will help identify security risks within our SCADA network as well. Although no requirements are in place for annual security auditing of this network, the City's IT staff is being proactive as this network is a potential high risk target. ➢ The total estimated cost for the security scan and assessment $16,612.50 and it is a 2015 budgeted item. Attachments: The contract is available from the City Clerk's Office. AGENDA CITY OF EAGAN REGULAR MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY EAGAN MUNICIPAL CENTER SEPTEMBER 15, 2015 A. CALL TO ORDER B. ADOPT AGENDA C. CONSENT AGENDA 1. APPROVE EDA Minutes 2. AUTHORIZE Braun Intertec to undertake environmental remediation for Outlot A, Paragon Addition, in the Cedar Grove Redevelopment Area D. OLD BUSINESS E. NEW BUSINESS 1. PUBLIC HEARING to consider Preliminary Real Estate Purchase Agreement with Inland Group (CAP Acquisitions, LLC) for Outlot A in the Cedar Grove Redevelopment District F. OTHER BUSINESS G. ADJOURN Agenda Information Memo September 15, 2015 Eagan Economic Development Authority Meeting NOTICE OF CONCURRENT ACTIONS The Council acting as the Board of Commissioners of the Economic Development Authority ("EDA") may discuss and act on the agenda items for the EDA in conjunction with its actions as a Council. A. CALL TO ORDER ACTION TO BE CONSIDERED: To convene a meeting of the Economic Development Authority to run concurrent with the City Council meeting. B. ADOPT AGENDA ACTION TO BE CONSIDERED: To adopt the Agenda as presented or modified. C. CONSENT AGENDA ACTION TO BE CONSIDERED: To approve the Consent Agenda as presented or modified. 1. APPROVAL OF MINUTES EDAC-1 Minutes of the September 1, 2015 EDA meeting. 2. AUTHORIZE BRAUN INTERTEC TO UNDERTAKE ENVIRONMENTAL REMEDIATION FOR OUTLOT A, PARAGON ADDITION, IN THE CEDAR GROVE REDEVELOPMENT AREA — As a part of preparing for the potential sale of Outlot A to Inland Group, staff had its environmental consultant for the project, Braun Intertec, perform an updated review of the site to determine whether environmental conditions remain since the original performance of the Phase I Environmental Study that followed the original acquisitions in the area. While some of the original conditions have been mitigated, soil vapor testing revealed that levels of some materials will require additional mitigation as a part of the proposed development of the property. This is not unusual in the district, as some vapor mitigation was involved in both the TCPO and Flats projects. This action would authorize Braun to prepare a Response Action Plan (RAP) and facilitate the necessary mitigation activities if and when development proceeds at the site. FIM91U4-:11F-R1P1**1 There are no Old Business items at this time. E. NEW BUSINESS 1. PUBLIC HEARING TO CONSIDER PRELIMINARY REAL ESTATE PURCHASE AGREEMENT WITH INLAND GROUP (CAP ACQUISITIONS, LLC) FOR OUTLOT A IN THE CEDAR GROVE REDEVELOPMENT DISTRICT ACTION TO BE CONSIDERED: 1) To close the public hearing and direct the preparation of findings of fact to approve a real estate purchase agreement between the Eagan EDA and CAP Acquisitions, LLC for Outlot A in the Cedar Grove Redevelopment District pursuant to the Preliminary Real Estate Purchase Agreement presented. And 2) To authorize staff to proceed with a Final Plat of Outlot A to in preparation for its sale to the developer. FACTS: • At its meeting of August 18, 2015, the Eagan Economic Development Authority Board received a presentation regarding a proposal the Inland Group, who submitted an offer to acquire Outlot A, the 4 acre parcel located at the west end the redevelopment district, between the parking garage and the transit station. Inland proposes to build a 5 story, 161 unit 55+ active senior market rate apartment property, as a part of their Affinity product line. Amenities and features of the product as proposed are outlined in the attachments. The concept plan submitted by Inland for consideration at the EDA meeting on August 18 meets the percentage standards for primary and secondary materials as outlined for the district in the City Code. • Although the Affinity project will cover about three acres, Inland has proposed and the Finance Committee is recommending that the entire four acre outlot be sold to the developer. As a part of the Planned Development application process, the developer will identify its intended future use of the remainder of the site for expansion or a use complementary to their project and the redevelopment district. • The project will provide underground resident parking and an area for guest parking within the entry court area of the development. At this time, Inland indicates that they do not expect to need off-site parking in the EDA's garage and the Finance Committee's is open to that expectation. Staff proposed that a condition of purchase be that overnight use of the parking garage be monitored and, if it is found that off-site parking by residents or guests is occurring regularly, a mechanism be available in the agreement for Inland to pay for those spaces in the same manner as the outlet center and hotel projects have done. • At its meeting on the 18t", the EDA also directed staff and the City Attorney to prepare a purchase agreement based on the basic terms outlined at that time. At its meeting of September 1, 2015, the EDA scheduled a public hearing for the consideration of that agreement on September 15, 2015. A public hearing is required when a public entity considers the sale of property to a private party. The agreement has been negotiated and executed by CAP Acquisitions LLC, the public hearing has been noticed and the matter is in order for consideration at this time. • The EDA has also authorized the City Attorney to request an opinion of the market value range of proposed sale by the City's appraiser, BRKW. The appraiser has confirmed that the proposed purchase price of $1,725,000 or $10,700 per unit is within the fair market range for a sale of property for this use. As part of the consideration of the sale of publicly owned property, the Advisory Planning Commission considers the proposed use of the property and makes a finding as to its conformance with the City's Comprehensive Guide Plan. The APC will consider this item at its meeting of September 21, 2015. If it is approved, one of the conditions of the purchase agreement is that the developer proceeds with the formal development application and review process of the Advisory Planning Commission and City Council. The sale of the property will be contingent upon approval of that application. ATTACHMENTS: EDAN13I-1 Location map EDAN13I-2 Redevelopment concept site plan approved at August 18, 2015 EDA Meeting EDANBI-3 Purchase agreement F. OTHER BUSINESS There are no other items at this time. G. ADJOURNMENT ACTION TO BE CONSIDERED: To adjourn the EDA Meeting. MINUTES OF A MEETING OF THE EAGAN ECONOMIC DEVELOPMENT AUTHORITY Eagan, Minnesota September 1, 2015 A meeting of the Eagan Economic Development Authority was held on Tuesday, September 1, 2015 at the Eagan Municipal Center. Present were President Maguire, Commissioner Bakken, Commission Fields, Commissioner Hansen, and Commissioner Tilley. Also present were Executive Director Osberg, City Attorney Dougherty, and Community Development Director Hohenstein. CALL TO ORDER President Maguire called the Economic Development Authority meeting to order. ADOPT AGENDA Commissioner Bakken moved, Commissioner Fields seconded a motion to approve the agenda as presented. Aye:5 Nay:0 CONSENT AGENDA Commissioner Fields moved, Commissioner Bakken seconded a motion to approve the Consent Agenda as presented. Aye: 5 Nay: 0 1. It was recommended to approve the minutes of August 18, 2015. 2. It was recommended to approve the decertification of Southeast Eagan TIF District. 3. It was recommended to schedule a Public Hearing on September 15, 2015 to consider the sale of Outlot A in the Cedar Grove Redevelopment District to Inland Group (CAP Acquisition, LLC) for development of an apartment project. There was no Old Business. There was no New Business. There was no Other Business. OLD BUSINESS NEW BUSINESS OTHER BUSINESS ADJOURNMENT Commissioner Fields moved, Commissioner Bakken seconded a motion to adjourn the meeting. Aye: 5 Nay: 0 Date David M. Osberg, Executive Director ii o r ;` � ,� � 111111► � ■■ �� ��► � � NINO Bill lir :: e� "; ire ■► s ..■.■� 111 it rw ►II,� II ;��®`�,e, e� ON ■■ME :.:::ii:.®■ .. ■� � /1 ISI •' s��it ei �S�Iet� ®����ii��,�®�■�■ ■ ■� .■ 11 ;Ij�, �ee��.�,�■�e ■■■■■■■��■■,1: a WIN WE = ♦itrrr■ �i � ume hum rl ' ■ � ■ ■ ss���e r e o o e c i Project N. Request: Case No: Legi C F ----L- 0 500 uo]...Fe'mrm:g- {g69'82CBD5 �4d 1OZ86 em •aueryotls •OOZ alins'ane aplvanu m ZB9 a 1 n} o a} y o/ e uoslo+wo.a}sAu ViOS3NNIW NVOVA Q aHOH SIOOIN'R ),VM>ladd 3AOUD HVCIAO NVOV3 V3 AilNIJ=IV w MH Q vo�� I . a AVM AATIVA HBAN ' 5 1 1 I 1 I , I I I I I ISI I _ I Q I I� LL I I _ J 2 I I J%L II i o I I I II 1 1 I 1 i a O+U::, z 0 51 0 z s N Eollsv V 0 + Um�, " E _� NV9Va IV AIINI"JV:: ffl.� FE, 'it tl M�M N 6B .. ......... A 101 No. a, LouL.J. U.. a, OR IN j. t2l'! AMU f1 a li m -m. 4y a Ern 12 -1 27V 9T I MR., tl8 EM 0 Wa: I " UP 7, PIN -1 p. THIN 112! V 01, 1) a Ci Ig 4 1 u M. AM � ` NV;G7�MlNLJ:J:: v � /. .. y�\ � ��� \. \ � /� � � \ \ \ / / \����/ .: � 'INN won ���, \,� � // /� All SALE AND PURCHASE AGREEMENT THIS SALE AND PURCHASE AGREEMENT (the "Agreement"), is made as of August 2013 (the "Effective Date" of this Agreement) between the Eagan Economic Development Authority, a public body corporate and politic and a political subdivision of the State of Minnesota (the "Seller") and CAP Acquisitions, LLC [This entity is not registered to conduct business in the State of Minnesota], and its assigns (the "Buyer"). follows: In consideration of the mutual covenants and agreements hereinafter contained, the parties agree as 1.) SALE AND PURCHASE OF REAL PROPERTY. Seller shall sell to Buyer, and Buyer shall purchase from Seller the following property (the "Real Property"): A parcel of land located in the City of Eagan, County of Dakota, State of Minnesota containing approximately 4.0 acres and legally described as Outlot A, Paragon Addition. 2.) PURCHASE PRICE AND MANNER OF PAYMENT. The purchase price ("Purchase Price") to be paid by Buyer to Seller for the Real Property shall be One Million Seven Hundred Twenty-five Thousand Dollars ($1,725,000.00). 3.) EARNEST MONEY. Fifty Thousand and No/100 Dollars ($50,000,00) as earnest money paid no later than three (3) business days after the Effective Date (the "Earnest Money") to the Title Company, as defined herein. The balance of the Purchase Price, plus or minus any prorations and other adjustments required hereunder, shall be paid in cash, wire transfer, or guaranteed funds on the Closing Date. 4.) CONDITIONS TO BUYER'S OBLIGATIONS The obligations of Buyer under this Agreement are conditioned upon satisfaction or waiver by Buyer of each of the following by the respective dates indicated: (a) Access. Seller shall allow Buyer and Buyer's agent's access to the Real Property without charge and at all reasonable times for the purpose of investigation and testing. Buyer shall pay all costs and expenses of such investigation and testing and shall indemnify, defend and hold Seller and the Real Property harmless from all costs and liabilities relating to Buyer's activities; provided that Buyer shall not be responsible for existing conditions on the Real Property nor the cost of investigations or studies completed by Seller before the Effective Date. Buyer shall further repair any damage to the Real Property caused by or occurring as a result of Buyer's testing. (b) Cooperations Seller shall, without charge to Buyer, cooperate in Buyer's attempts to obtain all governmental approvals and permits necessary in Buyer's judgment in order to allow the lawful use of the Real Property for Buyer's intended purposes. Nothing in this Agreement shall be deemed a waiver of the Eagan City Council's right to exercise its legislative discretion to approve or reject any development proposal presented to the City by Buyer. (c) Documents. Within ten (10) days after the date of this Agreement, Seller shall deliver to Buyer true and correct copies of all of the Documents (as hereinafter defined) for Buyer's examination and analysis. (d) Document Review. Buyer shall have determined in its sole discretion, that it is satisfied with its examination and analysis of all contracts, agreements, plans, warranties and all other documents in connection with the Real Property (together with any amendments thereto), including, without limitation, the following (all of which are collectively referred to herein as the "Documents"): (i) Phase I ESA. Copies of any environmental reports, including any Phase I Environmental Site Assessments and/or Phase 11 Environmental Site Assessments, concerning all or part of the Real Property that are in Seller's possession or control. (ii) Surveys and MaMs, To the extent available, surveys, plats or other depictions relating to the Real Property and copies of all wetland analyses, planning studies, aerial photographs, topographical maps or studies, engineering studies and plans and mylars. (iii) Title Insurance Policies. All title insurance policies with exception documents related to the Real Property. (e) Governmental Approvals. Buyer shall have obtained, at its sole cost and expense, all governmental permits, approvals and licenses from all applicable governmental authorities as Buyer deems necessary in its sole discretion for its intended development, construction and use of the Real Property, including without limitation obtaining approvals for rezoning, preliminary planned development and preliminary subdivision, and final approvals from the Planning Commission, Economic Development Authority and City Council. (f) Plattine. Buyer shall have replatted the Property into a single lot at Buyer's sole cost and expense. (g) Title. Title shall have been found acceptable by Buyer in its sole discretion, or been made acceptable, in accordance with the requirements and terms of Section 6 below. (h) Financing. Buyer shall have obtained financing for the purchase of the Real Property on terms satisfactory to Buyer in Buyer's sole discretion. (i) Stor Water. Buyer shall have received appropriate assurances that all storm water shall be permitted to be discharged in the area pond and no area fee shall be charged to the Buyer. 0) Roads and Utilities. Buyer shall be satisfied that the Real Property has appropriate road access and available utilities. (k) Miscellaneous. There shall exist no moratorium, no levied or pending assessments, no unresolved adequate public facility issues, and no other governmental actions preventing the issuance of building permits for building residential units on the Real Property. (1) Representations and Warranties. The representations and warranties of Seller contained in this Agreement will be true now and on the Closing Date as if made on the Closing Date, If any condition set forth in this Section 4 has not been satisfied or waived by Buyer within one hundred eighty (180) days of the Effective Date (the "Inspection Deadline"), then Buyer may, at Buyer's option, terminate this Agreement. Upon receipt of such notice from Buyer, Seller shall promptly return the Earnest Money to Buyer. Upon such termination and return, neither Seller nor Buyer shall have any further rights or obligations under this Agreement except for the covenants made in Section 11 (the "Surviving Covenants"). If Buyer has not terminated this Agreement on or before the Inspection Deadline, then Buyer shall be deemed to have waived the contingencies set forth herein. 5.) C DITIO S TO SELLER'S OBLIG TIONS. The obligations of Seller under this Agreement are conditioned upon Buyer obtaining, at Buyer's sole cost and expense, approval by the Eagan City Council to construct approximately 161 market rate senior housing apartments with building finishes that meet or exceed the Cedar Grove Zoning District standards (the "Development Proposal"). 6.) TITLE MATTERS. Title examination shall be conducted as follows: (a) Title Evidence. Immediately following the Effective Date, Seller shall obtain the following title evidence (collectively, the "Title Evidence"): (i) Title Insurance Commitment A commitment ("Title Commitment") from Chicago Title or such other title company selected by Buyer (the "Title Company") for an ALTA Form B 2006 Owner's Policy of Title Insurance committing to insure a marketable title to the Real Property in Buyer; deleting so-called "standard exceptions" related to survey matters, parties in possession, and liens for labor, materials and services; including affirmative insurance regarding appurtenant easements, separate real estate taxation, and contiguity, in the amount of the Purchase Price, and issued by the Title Company. The cost of the Title Commitment shall be paid by the Seller. The Title Commitment shall include complete and accurate copies of all matters described in Schedule B thereof; and (ii) Survey. A current survey of the Real Property, certified to Seller, Buyer, Title Company and Buyer's lender, prepared in accordance with ALTA/ACSM standards and such other requirements as requested by Buyer or Buyer's lender (the "Survey"). Seller shall deliver a copy of the survey to Buyer, and Buyer shall have five (5) days following receipt thereof, to either approve or disapprove of the composition of the Real Property as depicted therein. if the Buyer disapproves of the survey, the parties shall confer as to reconciling the issues with the survey. The cost of the Survey shall be paid by the Seller. (b) Buyer'sjections. Within thirty (30) days after receiving the last item of the Title Evidence, Buyer shall notify Seller of any objections ("Objections") to matters disclosed in the Title Evidence. Buyer shall be deemed to have automatically made Objections to any mortgage, judgment, tax lien, mechanic's lien and any other monetary lien against the Real Property (collectively "Monetary Liens"). With respect to any update to the Title Commitment and/or the Survey, Buyer shall have 10 days after Buyer's receipt of the applicable updated Title Commitment and/or Survey to notify Seller of any Objections; provided that Buyer shall not have the right to object to any matters that were shown on a previous Title Commitment and/or Survey and not timely objected to by Buyer. Seller shall use reasonable efforts to correct any Objections which shall include, if applicable, payment of the Monetary Liens out of proceeds from Closing on the Closing Date if they are not satisfied prior thereto. At Closing, Buyer shall have the right to require endorsement(s) to the Title Policy. If the Objections are not cured prior to the Closing 4 Date, Buyer will have the option to do any of the following by notice provided to Seller: (i) Terminate. Terminate this Agreement pursuant to Section 4 herein, on or before the Closing Date. Upon receipt of such notice from Buyer, Seller shall promptly return the Earnest Money to Buyer. Upon such return, neither Seller nor Buyer shall have any further rights or obligations under this Agreement, except for the Surviving Covenants; or (ii) Waive. Waive the Objections and close the transaction contemplated by this Agreement as if such Objections had not been made. (c) TTjtle Policy. If the Closing occurs, Title Company shall issue an owner's title insurance policy ("Title Policy") pursuant to the Title Commitment, or a suitable mark up of the Title Commitment initiated by the Title Company undertaking to issue such a Title Policy within a reasonable time in the form required by the Title Commitment as approved by Buyer. 7.) CLOSING PROCEDURES. (a) CLOSING DATE. The closing of the purchase and sale contemplated by this Agreement (the "Closing") shall occur no later than sixty (60) days after the expiration of the Inspection Deadline (the "Closing Date"). The Closing shall take place at 10:00 a.m. local time at the office of Title Company, or such other location as determined by the Buyer. (i) First Extension. Buyer may extend the Closing Date (as defined in Section 7 herein) an additional thirty (30) days by providing written notice to Seller on or before the Closing Date and depositing Twenty-five Thousand and no/100 Dollars ($25,000.00) with Title Company on or before the expiration. This extension payment and the Earnest Money are non-refundable, but will be applied toward the Purchase Price. (ii) Second Extension. Buyer may extend the Closing Date (as defined in Section 7 herein) an additional thirty (30) days by providing written notice to Seller on or before the Closing Date and depositing Twenty -rive Thousand and no/100 Dollars ($25,000.00) with Title Company on or before the expiration. This extension payment is non-refundable, but will be applied toward the Purchase Price. (iii) Third Extension. Buyer may extend the Closing Date (as defined in Section 7 herein) (as defined in Section 7 herein) an additional thirty (30) days by providing written notice to Seller on or before the Closing Date and depositing Twenty-five Thousand and no/100 Dollars ($25,000.00) with Title Company on or before the expiration. This extension payment is non-refundable, but will be applied toward the Purchase Price. (b) Seller's Closing Documents. On the Closing Date, Seller shall execute and/or deliver to Buyer the following (collectively, the "Seller's Closing Documents"): (i) Deed. A Limited Warranty Deed (the "Deed"), in recordable form, conveying marketable title to the Real Property to Buyer, free and clear of all encumbrances, other than those encumbrances not objected to or waived pursuant to Section 6. The deed must incorporate a covenant running with the land as required by MINN. STAT. § 469.105. At closing Seller shall provide to the Title Company a release of the covenant required by Minn. Stat. 469.105 in the form and text of Exhibit "A" which shall be held by the Title Company only until receiving confirmation from Buyer that it has begun work on the Real Property, which may include but is not limited to site excavation, clearing, grading or soil correction Immediately thereafter, Title Company shall record the Seller's release and provide evidence of the same to Buyer. The obligations of Seller under this Section 7(b)(1) shall survive and be enforceable after Closing; (ii) Title Policy. The Title Policy, or a suitably marked -up Title Commitment, as provided for in Section 6, herein; (iii) Seller's Affidavit. An Affidavit by Seller indicating that on the Closing Date there are no outstanding, unsatisfied judgments, tax liens, or bankruptcies against or involving Seller or the Real Property; that there has been no skill, labor, or material furnished to the Real Property for which payment has not been made or for which mechanics' liens could be filed; and there are no other unrecorded interests in the Real Property, together with whatever standard owner's affidavit as may be required by the Title Company to issue the Title Policy; (iv) FiRPTA Affidavit. A nonforeign affidavit, properly executed and in recordable form, containing such information as is required by IRC Section 1445(b)(2) and its regulations; (v) Original Documents. Seller shall deliver to Buyer all original Documents (or suitable copies thereof} that may be necessary for Buyer to develop and operate the Real Property. Where necessary to comply with statutory record retention requirements, Seller may retain originals of records and provide copies to Buyer; and (vi) Other Documeltts. All other documents reasonably determined by Buyer or the Title Company to be necessary to transfer the Real Property to Buyer. (c) Buyer's Closing Documents. On the Closing Date, Buyer will execute and/or deliver to Seller the following (collectively, 'Buyer's Closing Documents"): (i) Purchase Price. The balance of the Purchase Price to be paid as required by Section 2 hereof, and (ii) Title Documents. Such affidavits of Buyer or other documents as may be reasonably required by the Title Company in order to record Seller's Closing Documents and issue the Title Policy. 8.) PRORATIONS. Seller and Buyer shall make the following prorations and allocations at the . Closing; (a) Title Insurance and Closing Fee. Seller shall pay the cost of the Title Commitment. Buyer shall pay the cost of the premium for the Title Policy. Buyer will pay all reasonable and customary closing fees or charges imposed by the Title Company or its designated closing agent. (b) Deed Tax. Seller shall pay all state deed tax due on the Deed to be delivered by Seller under this Agreement. (c) Real Estate Taxes and Special Assessments Seller shall pay or cause to be paid all general real estate taxes payable for the Real Property in the years prior to the year in which the Closing occurs, and any deferred or Green Acres real estate taxes. Seller and Buyer shall prorate the general real estate taxes payable for the Real Property in the year of closing as of the Closing Date based upon the calendar year. Seller shall pay, on or before the Closing Date, all special assessments levied, "pending," deferred or constituting a lien against the Real Property as of the Closing Date, including, without limitation, all installments of special assessments, including interest, payable in the year of Closing. Nothing in this subparagraph shall be deemed a waiver of the City's ability to lawfully impose future special assessments on the Real Property as well as any assessments that may be agreed to by Buyer as part of the development of the Real Property. Buyer shall be responsible for any sanitary area charges, water area charges, water quality and other established City fees associated with its development of the Real Property. (d) Recording Costs. Seller will pay the cost of recording all documents necessary to place record title in Seller in the condition warranted by Seller in this Agreement. Buyer will pay the cost of recording all other documents. (e) Attorneys' Fees. Seller and Buyer shall each pay its own attorneys' fees in connection with the preparation and negotiation of this Agreement and the Closing, except that a party defaulting under this Agreement or any of its respective Closing Documents shall pay the reasonable attorneys' fees and court costs incurred by the nondefaulting party to enforce its rights regarding such default. 9.) OPERATION PRIOR TO CLOSING. During the period from the Effective Date through the Closing Date (the "E.xecutory Period"), Seller shall not execute any contracts, leases, or other agreements regarding the Real Property, nor perform any act that would impair or encumber the title to the Real Property or affect the condition of the Real Property. 10.) REPRESENTATIONS. ARRANTIES BL SELLER Seller represents and warrants to Buyer as follows, which representations and warranties shall be true and correct as of the Closing: (a) Organization: Authority. Seller has the requisite power and authority to execute and perform this Agreement and any Seller's Closing Documents to be signed by it; such documents have been (or will be prior to Closing) duly authorized by all necessary action on the part of Seller and at the Closing shall have been duly executed and delivered; such execution, delivery, and performance by Seller of such documents does not conflict with or result in a violation of any judgment, order, or decree of any court or arbiter to which Seller is a party, or any agreement by which Seller is bound; and such documents are and shall be valid and binding obligations of Seller, enforceable in accordance with their terms. (b) Title to Real Property. Seller owns the Real Property and has good marketable title, free and clear of all encumbrances, except those encumbrances listed in the Title Commitment. (c) Mechanic's Liens. All labor and materials which have been provided to the Real Property have been fully paid for or will be fully paid for, prior to the Closing Date. (d) Utilities. Gas, sanitary, and storm sewer and water lines are available to the Real Property. Seller has received no notice of actual or threatened reduction or curtailment of any utility service now supplied to the Real Property. (e) Rights of Others to Purchase Real Property! Seller has not entered into any other contracts, agreements or understandings, whether oral or written, for the sale of all or any portion of the Real Property, and there are no existing rights of first refusal or options to purchase all or any portion of the Real Property, or any other rights of others that might prevent the consummation of this Agreement. (f) Storage Tanks. There are no above -ground or underground tanks are located in or about the Real Property. (g) Wells and Septic. Seller knows of no wells on the Real Property. At the time of Closing, Seller will deliver any required well certificate pursuant to applicable laws. There is no "individual sewage treatment system" within the meaning of Minn. Stat. Section 115.55 on or serving the Real Property. Sewage generated at the Real Property goes to a facility permitted by the Minnesota Pollution Control Agency. (h) Assessments. Seller has not received any notice of any actual or proposed special assessments or reassessments of the Real Property. (1) Litigation and Other Matters. Seller has received no notice, and has no knowledge of any pending notice, of a violation of any statutes, ordinances, regulations, judicial decrees, or orders, or the pendency of any lawsuits, administrative or arbitration hearings, governmental investigations, proceedings, applications, petitioners, or other matters affecting the Real Property or the use thereof. 0) Rights of Others to Purchase Real Property. Seller has not entered into any other contracts, agreements or understandings, whether oral or written, for the sale of all or any portion of the Real Property, and there are no existing rights of first refusal or options to purchase all or any portion of the Real Property, or any other rights of others that might prevent the consummation of this Agreement. (k) Condemnation. Seller has not received any notice of any pending condemnation, eminent domain or other similar action, suit or proceeding that would affect the Real Property. (1) Hazardous Substances. Except as set forth in the Phase I and Phase 11 reports on file with the City of Eagan, there are no Hazardous Substances stored, deposited or located within the property or under the surface of the property. For purposes of this warranty and representation, the term "Hazardous Substances" means asbestos and asbestos -containing materials, polychlorinated biphenyls, nuclear fuel or materials, chemical waste, radioactive materials, explosives, known carcinogens, petroleum products, or other dangerous, toxic, or hazardous pollutant, contaminant, chemical, material or substance defined as hazardous or as a pollutant or contaminant in, or the release or disposal of which is regulated by, any Environmental Laws. For purposes of this Agreement, the term "Environmental Laws" shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. §§ 9601-9657, as amended, and any other federal, state and local laws, rules and regulations dealing with Hazardous Substances, the environment or public health. Seiler discloses to the Buyer that the Phase I Environmental Reports disclose traces of tetrachloreathene (PCE) that may require the installation of a vapor mitigation system. If vapor mitigation system is necessary, Seller shall be responsible for the cost of such vapor mitigation system and any other remediation necessary to satisfy the Minnesota Pollution Control Agency relative to any Hazardous Substances that may be located on the Property. (m) FIRPTA. Seller is not a "foreign person," "foreign partnership," "foreign trust" or "foreign estate," as those terms are defined in Section 1445 of the Internal Revenue Code. (n) Airport Zoning Ordinance. For the purposes of satisfying any applicable requirements of Minn. Stat. § 360.065, a copy of any airport zoning regulations affecting the Real Property can be reviewed or obtained at the Office of the Dakota County Recorder. Except for the warranties, covenants and representations explicitly set forth in this Agreement, Seller and Buyer agree that Buyer will accept possession of the Real Property in its AS -IS condition, WITH ALL FAULTS, and the sale of the Real Property to Buyer shall be without any other representation, covenant or warranty of any kind, express or implied, and Buyer, for Buyer, Buyer's agents, attorneys, representatives, heirs and assigns does hereby disclaim and renounce any other representation or warranty. The representations and warranties in this Section 10 shall survive the Closing. 11.) REPRESENTATIONS. WARRANTIES AND INDEMNITY BY BUYER Buyer represents and warrants to Seller that Buyer has the power and authority to execute this Agreement and any Buyer's Closing Documents signed by it; that all such documents have been authorized by all necessary action on the part of Buyer and at the Closing shall have been duly executed and delivered; that the execution, delivery, and performance by Buyer of such documents does not conflict with or violate any judgment, order or decree of any court or arbiter or any agreement by which Buyer is bound; and that all such documents are valid and binding obligations of Buyer and are enforceable in accordance with their terms. Buyer will indemnify Seller and its successors and assigns against, and will hold Seller and its successors and assigns harmless from, any expenses or damages, including reasonable attorneys' fees that Seller incurs because of the breach of any of the above representations and warranties, whether such breach is discovered before or after Closing, for two (2) years after the Closing Date, 12.) CONDEMNATION. If, prior to the Closing Date, any governmental entity commences any eminent domain proceedings ("Proceedings") against all or any part of the Real Property, Seller shall give notice to Buyer of such fact, and, at Buyer's option (to be exercised by notice to Seller within thirty (30) days after Seller's notice), this Agreement shall terminate, in which event Title Company shall promptly return the Earnest Money to Buyer. Upon such termination and return, neither Seller nor Buyer shall have any further rights or obligations under this Agreement, except for the Surviving Covenants. If Buyer does not give such notice, then there shall be no reduction in the Purchase Price, provided, however, that Seller shall assign to Buyer at the Closing Date all of Seller's right, title, and interest in and to any award made or to be made in the Proceedings. Prior to the Closing Date, Seller shall not designate counsel, appear in, or otherwise act with respect to the Proceedings without Buyer's prior written consent. 13.) ASSIGNMENT. Buyer reserves the right, at Buyer's sole discretion, to assign all or part of its interest in and to this Agreement to an affiliate of Buyer. Notwithstanding the foregoing, neither Seller nor Buyer may assign its rights under this Agreement for any other purpose, without the prior written consent of the other party. 14.) SURVIVAL. All of the covenants, representations and warranties made in this Agreement which either by their terms expressly survive Closing, or are contained in any schedule, exhibit, certificate, or document delivered at Closing, will survive and be enforceable after the Closing. 15.) NOTICES. Any notice required or permitted to be given under any provision of this Agreement shall be in writing and shall be deemed to have been given in accordance with this Agreement, if it is mailed, by United States certified mail, return receipt requested, postage prepaid, or if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed as follows: If to Seller: Eagan Economic Development Authority Attn: David M. Osberg 3830 Pilot Knob Road Eagan, MN 55122 With a copy to: Dougherty, Molenda, Solfest Hills & Bauer P.A. Attn: Robert B. Bauer 14985 Glazier Avenue, Suite 525 Apple Valley, MN 55124 If to Buyer: CAP Acquisitions, LLC 120 West Catado, Suite 100 Spokane, WA 99201 Notice shall be effective, and the time for response to any notice by the other party shall commence to run, one (1) business day after any such mailing or deposit. Either Seller or Buyer may change its address for the service of notice by giving notice of such change to the other party, in any manner above specified, ten (10) days prior to the effective date of such change. Notwithstanding the foregoing, any party may give any other party written notice hereunder by any means other than by United States registered or certified mail or overnight courier, which is reasonably calculated to reach the other party, including but not Iimited to hand delivery, email transmission or facsimile transmission, provided that any such notice shall be deemed to have been given and shall be effective only when actually received by the addressee, proof of which shall be furnished by the party sending such notice 16.) CAPTIONS: EXHIBITS. The section and paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. All schedules, exhibits, addenda or attachments referred to herein are hereby incorporated in and constitute a part of this Agreement. 17.) ENTIRE AGREEMENT: MODIFICATION This written Agreement constitutes the complete agreement between Seller and Buyer and supersedes any prior oral or written agreements between them regarding the Real Property. There are no oral agreements that change this Agreement, and no amendment of any of its terms will be effective unless in writing and executed by both Seller and Buyer. 18.) BINDING EFFECT. This Agreement binds and benefits Seller and Buyer and their respective successors and assigns. 19.) CONTROLLING LAW. This Agreement has been made under, and will be interpreted and controlled by, the laws of the State of Minnesota. 20.) WAIVER. No waiver of the provisions of this Agreement shall be effective unless in writing, executed by the party to be charged with such waiver. No waiver shall be deemed a continuing waiver or waiver in respect of any subsequent breach or default, either of similar or different nature, unless expressly stated in writing. G7 21.) COUNTERPARTS. This Agreement may be executed in any number of counterparts and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute but one Agreement. 22.) FACSIMILE SIGNATURES. This Agreement may be executed with signatures transmitted by facsimile or email and shall constitute a binding agreement with such signatures. Nonetheless, any party providing facsimile or emailed signatures shall provide the other party with the original signatures within five (5) business days after providing the facsimile signature page(s). 23.) SEVERABILITY. if any provision of this Agreement is invalid or unenforceable, such provision shall be deemed to be modified to be within the limits of enforceability or validity, if feasible; however, if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforceable. 24.) LIMITATION OF LIABILITY. Upon Closing, Buyer shall neither assume nor undertake to pay, satisfy or discharge any liabilities, obligations or commitments of any Seller other than those specifically agreed to between the parties and set forth in this Agreement. 25.) REMEDIES. Time is of the essence of this Agreement. If Seller fails to perform any of its obligations under this Agreement, Buyer may (i) terminate this Agreement and obtain a full refund of all the Earnest Money and any extension payments that may have been paid under Section 7; and/or (ii) seek and recover from Seller specific performance of this Agreement. If any action is brought to specifically enforce this Agreement, Seller shall waive the defense that there is an adequate remedy at law. If Buyer defaults in performance of its obligations under this Agreement, Seller shall have the right to terminate this Agreement in the manner provided by Minn. Stat. Sec. 559.21 and to obtain the Earnest Money and any extension payments that may have been paid under Section 7 (to the extent paid by Buyer) as liquidated damages. Such termination of this Agreement and receipt of the Earnest Money and extension payments will be the only remedies available to Seller for such default by Buyer, and Buyer will not be liable for damages or specific performance. 26.) Except as otherwise specified elsewhere herein, all rights, powers or remedies afforded the parties hereunder or at law shall be cumulative and the exercise of one shall not bar exercise of another. The provisions of this Section 25 shall survive the Closing or earlier termination of this Agreement. REAL ESTATE BROKERS. Seller represents to Buyer that it has entered into an Amended and Restated Preliminary Development Agreement with Pratt Development, Inc. ("Seller's Broker") in connection with the transactions contemplated by this Agreement. Buyer represents to Seller that it has engaged CBRE/L Land Services Group in connection with the transactions contemplated by this Agreement. All broker's fees, finder's fees, commissions or other similar fees to be paid to Seller's broker, Buyer's broker and/or any employees or agents thereof in connection with the transactions contemplated by this Agreement shall be paid by Seller at Closing from Seller's proceeds therefrom. The provisions of this Section 26 shall survive the Closing. 27.) 1031 EXCF{ANGE. Buyer hereby represents, and Seller acknowledges, that Buyer may desire to structure the transaction evidenced hereby as part of an exchange of properties of like -kind within the contemplation of Section 1031 of the Internal Revenue Code. Seller hereby agrees to cooperate with Buyer in structuring such a like -kind exchange provided that; (i) such cooperation shall be without cost or expense to Seller; (ii) Buyer shall structure the transaction as an exchange agreement involving a "Qualified Intermediary" as defined in the regulations issued under Section 1031 of the Internal Revenue Code; and (iii) the structure of the transaction shall not require Seller to hold title (as a conduit or otherwise) to any property other than the Property. 28.) RAMP USAGE. The Development Proposal has limited visitor parking and it is anticipated that guests may use the adjacent Cedar Grove Parking Garage (hereinafter the "stamp"). If it is discovered that occupants and invitees of Buyer's Development Proposal are consistently and routinely utilizing parking stalls within the Ramp, then Buyer shall meet and confer with the Seller and propose reasonable mitigation measures intended to cause the occupants and invitees of the Development Proposal to use on-site parking stalls on the Real Property. If the Buyer and Seller are unable to resolve the excessive Ramp usage, they shall submit the dispute to mediation, with the parties sharing equally the costs thereof. If the Parties cannot agree on a mediator, one shall be appointed by the district court. If the dispute is not resolved through mediation, the venue for any dispute shall be the district court of Dakota County, Minnesota. This obligation shall survive the Closing. Seller and Buyer have executed this Agreement as of the date set forth above. BUYER: CAP Acquisitions, LLC B: Y Its: SELLER: Eagan Economic Development Authority By: Mike Maguire Its: President By: David M. ®sberg Its: Executive Director EXHIBIT "A19 TO SALE AND PURCHASE AGREEMENT RELEASE OF COVENANT I, David M. Osberg, as the Executive Director of the Eagan Economic Development Authority hereby certifies that Inland , a , has satisfied the requirements of Minn. Stat. §469.105, Subd. (5) and the covenant described in that certain Limited Warranty deed dated and recorded on as Dakota County Recorder Document No. is hereby released and terminated. Eagan Economic Development Authority David M. Osberg Its: Executive Director STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) This instrument was acknowledged before me this day of , 2015 by David M. Osberg, the Executive Director of the Eagan Economic Development Authority. Notary Public