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2023-01-26 City Council Agenda Packet
Corcoran City Council Agenda January 26, 2023 - 7:00 pm 1.Call to Order / Roll Call 2.Pledge of Allegiance 3.Agenda Approval 4.Commission Representatives* 5.Open Forum – Public Comment Opportunity 6.Presentations/Recognitions 7.Consent Agenda a.Memo: 2023-01-12 Draft Council Minutes* b.Memo: 2023-01-12 Draft Council Work Session Minutes* c.Memo: 2022-07-14 Draft Council Work Session Minutes* d.Financial Claims* e.Construction Hours Review – Annually After Change in 2021* f.City Center Drive and 79th Place – Mass Grading and Stormwater Improvements – Pay Request 2* g.Work Session Topics – Joint Session and Cook Lake Highland PUD Amendments* h.Vollrath Agricultural Preserve* i.Test Well #2 - Change Order 1 & Pay Request 3 FINAL* j.Trail Haven Bridge Replacement – Construction Materials Testing Quote* k.MNDOT Agency Agreement* l.2022 Financial Management Plan Adoption* 8.Planning Business a.Pioneer Trail Industrial Park* b.Accessory Structure Options* 9.Unfinished Business – Public Comment Opportunity a.Water Supply System Discussion i.Financial Analysis* ii.Water Supply Bid Award Update—Water Tower and Treatment Facility* iii.Water Tower – Purchase Agreement Amendment, Financial Agreement and Authorization to Close* b.Public Hearing Tax Abatement Bonds* c.Set Sale of 2023A Bonds* d.Holiday Toy and Food Drive – Budget and Date Selection* e.REU Credit Policy* 10.New Business – Public Comment Opportunity a.Northwest Trails – Trail Alignment* b.Organizational Updates and Employee Retention* 11.Staff Reports a.Planning Project Update* 12.2023 City Council Schedule* 13.Adjournment HYBRID MEETING OPTION AVAILABLE The public is invited to attend the regular Council meetings at City Hall. Meeting Via Telephone/Other Electronic Means Call-in Instructions: +1 312 626 6799 US Enter Meeting ID: 838 7860 4604 Press *9 to speak during the Public Comment Sections in the meeting. Video Link and Instructions: https://us02web.zoom.us/j/83878604606 visit http://www.zoom.us and enter Meeting ID: 838 7860 4606 Participants can utilize the Raise Hand function to be recognized to speak during the Public Comment sections in the meeting. Participant video feeds will be muted. In-person comments will be received first, with the hybrid electronic means option following. For more information on options to provide www.corcoranmn.gov * *Includes Materials - Materials relating to these agenda items can be found in the Council Chambers Agenda Packet book located by the entrance. The complete Council Agenda Packet is available electronically on the City website at www.corcoranmn.gov. STAFF REPORT Agenda Item: 4. Council Meeting: January 26, 2023 Prepared By: Michelle Friedrich Topic: Commission Representatives Action Required: None – Informational Summary: The advisory commission representatives for the January 26, 2023, Council meeting are as follows: • Planning Commission: Mark Lanterman • Parks and Trails Commission: Judy Strehler Financial/Budget: N/A Council Action: N/A Attachments: N/A STAFF REPORT Agenda Item : 7a. Council Meeting: Prepared By: Topic: Action Required: Summary : STAFF REPORT Agenda Item : 7b . Council Meeting: Prepared By: Topic: Action Required: Summary : STAFF REPORT Agenda Item : 7c . Council Meeting: Prepared By: Topic: Action Required: Summary : Agenda Item 7d. Council Meeting Date:1/26/2023 Prepared By:Maggie Ung Amount Project name $0.00 -$ $669,522.72 669,522.72$ 146,238.29$ 815,761.01$ Date Paid to Amount Description 1/6/2023 RevTrak 28.31$ Credit Card Chargeback 1/10/2023 InvoiceCloud 1,061.02$ Credit Card Processing Fee 1/12/2023 MN Dept of Revenue 330.32$ Fuel Tax 1/13/2023 ADP 110,386.86$ Net Payroll and Taxes 1/17/2023 ADP 21.42$ Net Payroll and Taxes 1/17/2023 MN PERA 23,986.60$ Employee Pension 1/18/2023 State of MN - Empower 5,648.72$ Employee Deferred Comp/Healthcare Savings 1/18/2023 Optum Bank 4,341.04$ Employee HSA 1/19/2023 MN Dept of Revenue 434.00$ Sales Tax Total 146,238.29$ TOTAL EXPENDITURES FOR APPROVAL Auto Deductions / Electronic Fund Transfer / Other Disbursements ALL OTHER FINANCIAL CLAIMS Check Register (See attached Check Detail Registers) Total Checks Total of Auto Deductions Total Total Fund #500 = (See attached Payments Detail) FINANCIAL CLAIMS CHECK RANGE FUND #500 ESCROW CLAIMS Paid to SEE THE REGISTER FOR #500 CLAIMS INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 1/9Page: 01/20/2023 10:54 AM User: mung DB: Corcoran CHECK DATES 01/10/2023 - 01/26/2023 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK CHECK REGISTER - COUNCIL Check AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 33260 33260570.00 01/10/2301102023WATER TOWER LAND PURCHASE REVIEW FHENNEPIN COUNTY TREASURER01/10/23601-49400-50430 570.00 Total For Check 33260 Check 33261 33261363.16 01/26/23622594972PAYROLL PERIOD #26ADP, LLC12/30/22100-41900-50300 3326133.06 01/26/23623020807PAYROLL PERIOD #26ADP, LLC01/06/23100-41900-50300 33261328.12 01/26/23623576571PAYROLL PERIOD #1ADP, LLC01/13/23100-41900-50300 3326191.25 01/26/23623576571 ADJPAYROLL PERIOD #26 ADJUSTMENTADP, LLC01/13/23100-41900-50300 815.59 Total For Check 33261 Check 33262 332622,000.00 01/26/23BCO22-0004BCO22-0004 PARTIAL ESCROW REFUNDALLIANT FINANCE LLC01/12/23100-00000-22206 2,000.00 Total For Check 33262 Check 33263 3326323.50 01/26/2313387WOODGRAIN SIGN/PLASTIC SIGNSALTA01/11/23100-42100-50200 23.50 Total For Check 33263 Check 33264 33264252.71 01/26/231XNY-MCW4-NRP4OFFICE SUPPLIESAMAZON CAPITAL SERVICES01/16/23100-41900-50200 33264252.72 01/26/231V9G-P7VG-GRGKAMERICAN FLAGSAMAZON CAPITAL SERVICES01/15/23100-41900-50210 3326468.38 01/26/231JC9-PVJY-VTRQDESK CALENDARAMAZON CAPITAL SERVICES12/28/22100-42100-50200 3326470.88 01/26/231NL6-HNMJ-974CWALL CALENDARAMAZON CAPITAL SERVICES12/25/22100-42100-50200 33264220.83 01/26/231DRW-4NTF-F1CGNALOXONE OVERDOSE KITAMAZON CAPITAL SERVICES01/14/23100-42151-50210 33264702.04 01/26/231VL3-QCJ1-G4DYPARKS AND RECREATION SUPPLIESAMAZON CAPITAL SERVICES12/30/22100-45100-50210 1,567.56 Total For Check 33264 Check 33265 332651,119.25 01/26/23010620232022 EXPENSE REIMBURSEMENTAMELIA FADDEN01/06/23100-00000-21710 1,119.25 Total For Check 33265 Check 33266 33266184.00 01/26/2310243985HYDRAULIC FLUIDASPEN EQUIPMENT COMPANY12/28/22100-43100-50220 33266908.02 01/26/2310243515CUTTING KIT, SEAL KITASPEN EQUIPMENT COMPANY12/20/22100-43100-50220 1,092.02 Total For Check 33266 Check 33267 332671,464.98 01/26/232220733ULS DYED FUELBEAUDRY OIL COMPANY12/23/22100-43100-50212 1,464.98 Total For Check 33267 Check 33268 33268384.82 01/26/23REFUND ADJREFUND ADJUSTMENTBOYER FORD TRUCKS INC01/09/23100-42100-50220 33268(60.80)01/26/23003P32381CORE (2)BOYER FORD TRUCKS INC01/12/23100-43100-50220 33268384.82 01/26/23REFUND ADJREFUND ADJUSTMENTBOYER FORD TRUCKS INC01/09/23100-43100-50220 708.84 Total For Check 33268 Check 33269 332691,105.00 01/26/23B325121MASS GRADING AND POND CITY CENTER BRAUN INTERTEC CORP01/11/23408-48010-50530 1,105.00 Total For Check 33269 Check 33270 332701,960.39 01/26/2301-2023GAS BILL 11/29-12/28/22CENTERPOINT ENERGY 01/03/23100-43100-50380 1,960.39 Total For Check 33270 Check 33271 2/9Page: 01/20/2023 10:54 AM User: mung DB: Corcoran INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN CHECK DATES 01/10/2023 - 01/26/2023 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK CHECK REGISTER - COUNCIL Check AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 33271 3327116.80 01/26/2301062023GAS BILL 800014143-4CENTERPOINT ENERGY 01/06/23100-41900-50381 33271329.81 01/26/2301062023GAS BILL 800014143-4CENTERPOINT ENERGY 01/06/23100-45200-50381 346.61 Total For Check 33271 Check 33272 33272133.06 01/26/234143128297CITY HALL MATSCINTAS - 47001/11/23100-41900-50400 3327216.20 01/26/234142285179LARGE BLUE TOWELSCINTAS - 47001/04/23100-42100-50400 33272132.52 01/26/234142285258TOWELS/CRT BLUECINTAS - 47001/04/23100-43100-50400 3327218.20 01/26/234142285252MICROFIBER WIPECINTAS - 47001/04/23100-43100-50400 3327287.81 01/26/234143128298CRT BLUECINTAS - 47001/11/23100-43100-50400 33272194.17 01/26/234142285352UNIFORMSCINTAS - 47001/04/23100-43100-50417 33272194.17 01/26/234143128404UNIFORMSCINTAS - 47001/11/23100-43100-50417 776.13 Total For Check 33272 Check 33273 33273139.18 01/26/2301052022CITY HALL/POLICE INTERNETCOMCAST - 002320201/05/23100-41900-50321 33273139.17 01/26/2301052022CITY HALL/POLICE INTERNETCOMCAST - 002320201/05/23100-42100-50321 278.35 Total For Check 33273 Check 33274 33274295.05 01/26/23163471104INTERNETCOMCAST - 93089903501/01/23100-43100-50380 295.05 Total For Check 33274 Check 33275 33275225.28 01/26/2301052023PHONE SERVICECOMCAST 004489301/05/23100-43100-50321 225.28 Total For Check 33275 Check 33276 332762,085.45 01/26/231096018SALTCOMPASS MINERALS12/16/22100-43125-50210 332762,092.27 01/26/231097345SALTCOMPASS MINERALS12/19/22100-43125-50210 4,177.72 Total For Check 33276 Check 33277 332771,622.00 01/26/23342178MONTHLY BILLING FOR JANUARY 2023COMPUTER INTEGRATION TECH01/13/23100-41900-50321 33277885.00 01/26/23342438MONTHLY BILLING FOR FEBRUARY 2023 COMPUTER INTEGRATION TECH01/13/23100-41920-50210 33277300.00 01/26/233425701 YEAR UCC CERTIFICATE (ORDER #664COMPUTER INTEGRATION TECH01/12/23100-41920-50210 33277840.00 01/26/23342005SUPPORT SERVICESCOMPUTER INTEGRATION TECH12/30/22100-41920-50300 3,647.00 Total For Check 33277 Check 33278 33278215.98 01/26/2359786K9 VET CARECORCORAN PET CARE CENTER, LL12/28/22100-42100-50438 215.98 Total For Check 33278 Check 33279 33279240.00 01/26/2361869EMPLOYEE JACKETSCORPORATE CONNECTION01/04/23100-41900-50210 240.00 Total For Check 33279 Check 33280 3328082.20 01/26/23100X07564904PD OFFICE WATERCULLIGAN BOTTLED WATER12/31/22100-42100-50210 82.20 Total For Check 33280 Check 33281 332818,152.00 01/26/237439CORCORAN TEST WELL #2 FINAL PAYMENEH RENNER & SONS INC12/02/22601-00000-16500 332812,522.55 01/26/237439CORCORAN TEST WELL #2 FINAL PAYMENEH RENNER & SONS INC12/02/22601-00000-20610 3/9Page: 01/20/2023 10:54 AM User: mung DB: Corcoran INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN CHECK DATES 01/10/2023 - 01/26/2023 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK CHECK REGISTER - COUNCIL Check AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 33281 10,674.55 Total For Check 33281 Check 33282 3328218,863.81 01/26/233042023 MEMBER ASSESSMENTELM CREEK WATERSHED MGMT COM12/31/22100-41900-50433 18,863.81 Total For Check 33282 Check 33283 332831,203.75 01/26/23BP22-0032ESCROW REFUND BP22-0032GIDEON J SLABAUGH01/19/23100-00000-22205 1,203.75 Total For Check 33283 Check 33284 3328467.50 01/26/232120315SUPPORT SERVICESGOPHER STATE ONE CALL12/31/22601-49400-50380 3328467.50 01/26/232120315SUPPORT SERVICESGOPHER STATE ONE CALL12/31/22602-49450-50380 135.00 Total For Check 33284 Check 33285 33285170.00 01/26/2302728232023 MEMBERSHIP DUES - PETERSONGOVERNMENT FINANCE OFFICERS 01/13/23100-41500-50433 170.00 Total For Check 33285 Check 33286 3328675.00 01/26/231000196880JAIL CHARGES DEC 2022HENN CO SHERIFF12/31/22100-42100-50305 75.00 Total For Check 33286 Check 33287 332877.50 01/26/231000197306VIEW RECORDED DOCUMENTSHENNEPIN COUNTY ACCOUNTS REC01/05/23100-42400-50300 7.50 Total For Check 33287 Check 33288 332881,567.22 01/26/231000196907PD RADIO LEASE FEES DECEMBER 2022HENNEPIN COUNTY INFO TECH01/04/23100-42100-50323 33288308.88 01/26/231000196974RADIO FLEET FEE 12/2022HENNEPIN COUNTY INFO TECH01/05/23100-43100-50323 1,876.10 Total For Check 33288 Check 33289 33289100.00 01/26/23003401012300DECEMBER 2022 CAR WASHHOLIDAY COMPANIES01/01/23100-42100-50403 100.00 Total For Check 33289 Check 33290 33290350.00 01/26/2310220MEMBERSHIP DUESI-94 WEST CHAMBER11/01/22100-41900-50433 350.00 Total For Check 33290 Check 33291 33291990.00 01/26/23BC1682023 BENNEFITS CONNECT SERVICEINTEGRITY EMPLOYEE BENEFITS01/04/23100-41900-50300 990.00 Total For Check 33291 Check 33292 332924,610.58 01/26/2337629SNO-SHOCK BLADEKRIS ENGINEERING01/03/23100-43100-50220 4,610.58 Total For Check 33292 Check 33293 3329330.00 01/26/23012023MN MAYOR ASSOCIATION MEMBERSHIPLEAGUE OF MINNESOTA CITIES09/01/22100-41900-50433 30.00 Total For Check 33293 Check 33294 332941,710.00 01/26/23374316PEACE OFFICER TRAINING LEAGUE OF MINNESOTA CITIES12/30/22100-42100-50207 1,710.00 Total For Check 33294 INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 4/9Page: 01/20/2023 10:54 AM User: mung DB: Corcoran CHECK DATES 01/10/2023 - 01/26/2023 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK CHECK REGISTER - COUNCIL Check AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 33295 33295162.53 01/26/2320158WORKER'S COMPENSATION CLAIM # 0048LEAGUE OF MN CITIES INSUR.TR01/03/23100-42100-50365 162.53 Total For Check 33295 Check 33296 3329653.24 01/26/2301/12/2023UB REFUND FOR INACTIVE ACCOUNTSLENNAR01/12/23601-00000-22200 3329666.63 01/26/2301/12/2023UB REFUND FOR INACTIVE ACCOUNTSLENNAR01/12/23601-00000-22200 3329644.22 01/26/2301/12/2023UB REFUND FOR INACTIVE ACCOUNTSLENNAR01/12/23601-00000-22200 332963.43 01/26/2301/12/2023UB REFUND FOR INACTIVE ACCOUNTSLENNAR01/12/23601-00000-22200 167.52 Total For Check 33296 Check 33297 3329721.29 01/26/2301/12/2023UB REFUND FOR INACTIVE ACCOUNTSLENNAR01/12/23601-00000-22200 33297118.94 01/26/2301/12/2023UB REFUND FOR INACTIVE ACCOUNTSLENNAR01/12/23601-00000-22200 3329765.83 01/26/2301/12/2023UB REFUND FOR INACTIVE ACCOUNTSLENNAR01/12/23601-00000-22200 3329743.44 01/26/2301/12/2023UB REFUND FOR INACTIVE ACCOUNTSLENNAR01/12/23601-00000-22200 249.50 Total For Check 33297 Check 33298 3329842.11 01/26/2301/12/2023UB REFUND FOR INACTIVE ACCOUNTSLENNAR HOME01/12/23601-00000-22200 42.11 Total For Check 33298 Check 33299 332998.33 01/26/2370606CH559 - 2014 FORD INTERCEPTOR VIN LITHGOW AUTOMOTIVE01/11/23100-41900-50221 3329940.00 01/26/2370606CH559 - 2014 FORD INTERCEPTOR VIN LITHGOW AUTOMOTIVE01/11/23100-41900-50403 33299777.41 01/26/23706092020 FORD INTERCEPTOR VIN 2485 (SQLITHGOW AUTOMOTIVE01/11/23100-42100-50400 825.74 Total For Check 33299 Check 33300 3330058,386.64 01/26/232-23461ST QTR 2023 FIRE PROTECTIONLORETTO FIRE DEPARTMENT01/04/23100-42200-50300 58,386.64 Total For Check 33300 Check 33301 333013.39 01/26/2301/17/2023UB REFUND FOR ACCOUNT: 20020162-79M/I HOMES01/17/23601-00000-22200 3.39 Total For Check 33301 Check 33302 333024.28 01/26/2301/17/2023UB REFUND FOR ACCOUNT: 20020097-80M/I HOMES01/17/23601-00000-22200 333020.01 01/26/2301/17/2023UB REFUND FOR ACCOUNT: 20019304-74M/I HOMES01/17/23601-00000-22200 33302368.62 01/26/2301/17/2023UB REFUND FOR ACCOUNT: 20007252-23M/I HOMES01/17/23601-00000-22200 3330241.70 01/26/2301/17/2023UB REFUND FOR ACCOUNT: 20007982-81M/I HOMES01/17/23601-00000-22200 333020.12 01/26/2301/17/2023UB REFUND FOR ACCOUNT: 20020138-79M/I HOMES01/17/23601-00000-22200 333022.85 01/26/2301/17/2023UB REFUND FOR ACCOUNT: 20020123-79M/I HOMES01/17/23601-00000-22200 333028.15 01/26/2301/17/2023UB REFUND FOR ACCOUNT: 20020112-80M/I HOMES01/17/23601-00000-22200 425.73 Total For Check 33302 Check 33303 333034,913.30 01/26/2300061CLASS 5 DELIVERY FROM FEHNMACCOY SPECIALIZED CARRIERS06/02/22100-43122-50400 333034,606.63 01/26/2300062CLASS 5 DELIVERY FROM FEHNMACCOY SPECIALIZED CARRIERS06/02/22100-43122-50400 9,519.93 Total For Check 33303 Check 33304 3330440.00 01/26/2312312022LEGAL FEES DECEMBER 2022MADDEN, GALANTER, HANSEN LLP01/06/23100-41600-50300 40.00 Total For Check 33304 Check 33305 INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 5/9Page: 01/20/2023 10:55 AM User: mung DB: Corcoran CHECK DATES 01/10/2023 - 01/26/2023 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK CHECK REGISTER - COUNCIL Check AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 33305 33305307.07 01/26/2312082022WATER USAGE 2022 4TH QTRCITY OF MAPLE GROVE12/08/22601-49400-50310 307.07 Total For Check 33305 Check 33306 33306645.00 01/26/232026THERAPY SESSION/MANDATORY CHECK INMARIE RIDGEWAY LICSW, LLC01/01/23100-41900-50300 645.00 Total For Check 33306 Check 33307 33307600.00 01/26/2315044PUBLIC SAFETY ASSESSMENTMARTIN-MCALLISTER12/31/22100-42100-50300 600.00 Total For Check 33307 Check 33308 33308600.00 01/26/230113232022 CELL PHONE REIMBURSEMENT (12 MATTSON, KEVIN01/13/23100-43100-50321 600.00 Total For Check 33308 Check 33309 33309167.40 01/26/23014885RESTRAINT LANYARD/EXTENSION D RINGMC TOOL & SAFETY11/02/22602-49450-50210 167.40 Total For Check 33309 Check 33310 3331025.00 01/26/230120232023 MCFOA REGION VI MEETING - FRIMCFOA REGION VI01/19/23100-41400-50207 25.00 Total For Check 33310 Check 33311 33311517.40 01/26/2300007782SHARED SIGNAL/LIGHTIMGCITY OF MEDINA01/06/23100-43100-50381 517.40 Total For Check 33311 Check 33312 333122.37 01/26/2310243MOUSE TRAPSMENARDS MAPLE GROVE01/03/23100-42100-50210 3331231.98 01/26/239986KEY SETMENARDS MAPLE GROVE12/29/22100-45200-50210 34.35 Total For Check 33312 Check 33313 3331310.00 01/26/23INV2195418COPIER BASE RATEMETRO SALES INC01/01/23100-41920-50210 10.00 Total For Check 33313 Check 33314 3331446,857.01 01/26/233552PERMITS FINALED DECEMBER 2022METRO WEST INSPECTION SERVIC01/10/23100-42400-50300 46,857.01 Total For Check 33314 Check 33315 33315537.00 01/26/23414993MEDICAL TESTINGMINNESOTA OCCUPATIONAL HEALT12/30/22100-42100-50300 33315287.00 01/26/23414993MEDICAL TESTINGMINNESOTA OCCUPATIONAL HEALT12/30/22100-43100-50300 824.00 Total For Check 33315 Check 33316 33316525.00 01/26/2314093ETI CONFERENCE - BURNSMN CHIEFS OF POLICE ASSOC01/05/23100-42100-50207 525.00 Total For Check 33316 Check 33317 3331713,877.31 01/26/23DECEMBER2022Q4 2022 BUILDING PERMIT SURCHARGEMN DEPT OF LABOR & INDUSTRY12/31/22100-00000-20802 13,877.31 Total For Check 33317 Check 33318 3331825.00 01/26/2310639JOB POSTING - SEASONAL PROGRAM COOMN RECREATION/PARK FOUNDATIO01/18/23100-45100-50300 INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 6/9Page: 01/20/2023 10:55 AM User: mung DB: Corcoran CHECK DATES 01/10/2023 - 01/26/2023 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK CHECK REGISTER - COUNCIL Check AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 33318 25.00 Total For Check 33318 Check 33319 33319214.24 01/26/234498592022 FORD EXPLORER WIPER BLADESNAPA AUTO PARTS - Corcoran01/04/23100-42100-50220 33319(77.94)01/26/23450856SCRAPER AND SNOW BRUSH (CREDIT)NAPA AUTO PARTS - Corcoran01/11/23100-42100-50220 136.30 Total For Check 33319 Check 33320 33320384.62 01/26/2301262023DEPENDENT CARE REIMBURSEMENTNATALIE DAVIS MCKEOWN01/18/23100-00000-21710 384.62 Total For Check 33320 Check 33321 3332152,323.40 01/26/2340012182023 GMC SIERRA 2500HD VIN 3205NORTH COUNTRY CHEVROLET01/13/23416-43100-50550 52,323.40 Total For Check 33321 Check 33322 333221,250.00 01/26/237324ANNUAL CONTINUING DISCLOSURE FOR FNORTHLAND SECURITIES, INC.01/11/23100-41900-50300 1,250.00 Total For Check 33322 Check 33323 3332316.64 01/26/239006524PRETAINERNUSS TRUCK & EQUIPMENT01/03/23100-43100-50220 33323135,980.03 01/26/23011920232022 MACK GR64FR VIN 3463NUSS TRUCK & EQUIPMENT01/19/23416-43100-50580 135,996.67 Total For Check 33323 Check 33324 3332421,128.96 01/26/232023-12023 1ST BENCHMARKNW TRAILS ASSOCIATION01/01/23100-45200-50530 21,128.96 Total For Check 33324 Check 33325 33325(11,558.80)01/26/23PAY 2MASS GRADING & STORMWATER CITY CENPARK CONSTRUCTION COMPANIES01/09/23408-00000-20610 33325231,176.00 01/26/23PAY 2MASS GRADING & STORMWATER CITY CENPARK CONSTRUCTION COMPANIES01/09/23408-48010-50530 219,617.20 Total For Check 33325 Check 33326 33326419.59 01/26/2301192023FSA REIMBURSEMENTMIKE PRITCHARD01/19/23100-00000-21710 419.59 Total For Check 33326 Check 33327 33327407.24 01/26/230894-006056073CITY HALL GARBAGE 3-0894-3468541REPUBLIC SERVICES12/31/22100-41900-50380 33327287.73 01/26/230894-006056991PUBLIC WORKS GARBAGE 3-0894-346965REPUBLIC SERVICES12/31/22100-43100-50380 33327118.74 01/26/230894-006058268WILDFLOWER PARK GARBAGE 3-0894-347REPUBLIC SERVICES12/31/22100-45200-50380 33327404.79 01/26/230894-006055901CITY PARK GARBAGEREPUBLIC SERVICES12/31/22100-45200-50380 1,218.50 Total For Check 33327 Check 33328 33328185.00 01/26/23A44245EXTERIOR NORTH DOOR REPAIR RUSSELL SECURITY RESOURCE IN01/13/23100-41900-50401 185.00 Total For Check 33328 Check 33329 33329422.40 01/26/2361905COAL SLAGSPESCO, INC06/07/22100-43125-50210 422.40 Total For Check 33329 Check 33330 3333095.00 01/26/23010323DOT PHYSICALST MICHAEL SPINAL REHAB CENT11/28/22100-43100-50300 95.00 Total For Check 33330 INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 7/9Page: 01/20/2023 10:55 AM User: mung DB: Corcoran CHECK DATES 01/10/2023 - 01/26/2023 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK CHECK REGISTER - COUNCIL Check AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 33331 333311,722.85 01/26/2301-2023JANUARY 2023 LIFE INSURANCE PREMIUSTANDARD INSURANCE COMPANY01/01/23100-00000-21709 1,722.85 Total For Check 33331 Check 33332 3333243.99 01/26/23I1607723RADIO HOLDERSTREICHER'S POLICE EQUIPMENT12/27/22100-42100-50417 33332199.99 01/26/23I1607774UNIFORMSSTREICHER'S POLICE EQUIPMENT12/27/22100-42100-50417 33332(43.99)01/26/23CM294702RADIO HOLDER RETURNSTREICHER'S POLICE EQUIPMENT12/23/22100-42100-50417 33332119.98 01/26/23I1610369UNIFORMS/SHIRTS - EDSTROMSTREICHER'S POLICE EQUIPMENT01/10/23100-42100-50417 333321,546.69 01/26/23I1610653POLICE GEAR/CHEST PROTECTOR, FOREASTREICHER'S POLICE EQUIPMENT01/11/23100-42100-50417 33332700.00 01/26/23I1610617POLICE GEAR/FACESHIELD (4)STREICHER'S POLICE EQUIPMENT01/11/23100-42100-50417 2,566.66 Total For Check 33332 Check 33333 33333(250.00)01/26/2301012023UNION DUES JAN 2023TEAMSTER LOCAL 32001/01/23100-00000-20205 33333400.68 01/26/2301012023UNION DUES JAN 2023TEAMSTER LOCAL 32001/01/23100-00000-21707 150.68 Total For Check 33333 Check 33334 33334295.45 01/26/2312-2022DECEMBER 2022 DRY CLEANINGTIDE CLEANERS01/01/23100-42100-50417 295.45 Total For Check 33334 Check 33335 33335118.60 01/26/233609221-202212-PD INVESTIGATIONS - DECEMBER 2022TRANSUNION RISK & ALTERNATIV01/01/23100-42100-50300 118.60 Total For Check 33335 Check 33336 3333610.67 01/26/2301122023JETS PIZZA/LEADERSHIP TRAINING CREDIT CARD PURCHASES01/12/23100-41320-50207 3333621.34 01/26/2301122023JETS PIZZA/LEADERSHIP TRAINING CREDIT CARD PURCHASES01/12/23100-41400-50207 3333610.67 01/26/2301122023JETS PIZZA/LEADERSHIP TRAINING CREDIT CARD PURCHASES01/12/23100-41500-50207 3333670.00 01/26/23153952022 MNGFOA MEMBERSHIP - BARNHARTCREDIT CARD PURCHASES12/31/22100-41500-50433 3333670.00 01/26/23153972023 MNGFOA MEMBERSHIP - BARNHARTCREDIT CARD PURCHASES01/03/23100-41500-50433 3333670.00 01/26/23153932023 MNGFOA MEMBERSHIP - UNGCREDIT CARD PURCHASES01/03/23100-41500-50433 3333670.00 01/26/23153942023 MNGFOA MEMBERSHIP - PETERSONCREDIT CARD PURCHASES01/03/23100-41500-50433 33336153.43 01/26/2302052897676#10 DIE CUT WINDOW ENVELOPESCREDIT CARD PURCHASES01/14/23100-41900-50200 33336463.00 01/26/2326600FIREARMS PARTSCENTURION ARMS01/10/23100-42100-50207 33336131.86 01/26/2301082022TRAINING MEALCREDIT CARD PURCHASES01/08/23100-42100-50207 3333645.39 01/26/2330003TRAINING MEALCREDIT CARD PURCHASES01/10/23100-42100-50207 3333691.76 01/26/2384TRAINING MEALCREDIT CARD PURCHASES01/10/23100-42100-50207 33336220.10 01/26/2369-2TRAINING MEALCREDIT CARD PURCHASES01/09/23100-42100-50207 33336194.70 01/26/23306TRAINING MEALCREDIT CARD PURCHASES01/09/23100-42100-50207 33336153.32 01/26/233/3003PD TRAINING CREDIT CARD PURCHASES01/09/23100-42100-50207 33336268.34 01/26/233293471451PD TRAINING/LODGINGCREDIT CARD PURCHASES01/10/23100-42100-50207 33336268.34 01/26/233293471451-2PD TRAINING/LODGING CREDIT CARD PURCHASES01/10/23100-42100-50207 33336268.34 01/26/233293471451-3PD TRAINING/LODGINGCREDIT CARD PURCHASES01/10/23100-42100-50207 33336268.34 01/26/233293471451-4PD TRAINING/LODGINGCREDIT CARD PURCHASES01/10/23100-42100-50207 33336268.34 01/26/233293471451-5PD TRAINING/LODGINGCREDIT CARD PURCHASES01/10/23100-42100-50207 33336268.34 01/26/233293471451-6PD TRAINING/LODGINGCREDIT CARD PURCHASES01/10/23100-42100-50207 33336268.34 01/26/233293471451-7PD TRAINING/LODGING CREDIT CARD PURCHASES01/10/23100-42100-50207 3333653.35 01/26/2301122023JETS PIZZA/LEADERSHIP TRAINING CREDIT CARD PURCHASES01/12/23100-42100-50207 33336100.97 01/26/239097KITCHEN SUPPLIES (FORKS, PLATES)CREDIT CARD PURCHASES12/28/22100-42100-50210 3333660.00 01/26/23583067SHIFT SCHEDULINGFLEETIO01/09/23100-42100-50300 333361,379.57 01/26/232023410019395GUNS/RAIL MOUNTCREDIT CARD PURCHASES01/09/23100-42100-50417 3333610.67 01/26/2301122023JETS PIZZA/LEADERSHIP TRAINING CREDIT CARD PURCHASES01/12/23100-42400-50207 3333642.63 01/26/2301122023JETS PIZZA/LEADERSHIP TRAINING CREDIT CARD PURCHASES01/12/23100-43100-50207 INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 8/9Page: 01/20/2023 10:55 AM User: mung DB: Corcoran CHECK DATES 01/10/2023 - 01/26/2023 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK CHECK REGISTER - COUNCIL Check AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 33336 33336194.17 01/26/234143828652UNIFORMSCINTAS - 47001/18/23100-43100-50417 3333610.67 01/26/2301122023JETS PIZZA/LEADERSHIP TRAINING CREDIT CARD PURCHASES01/12/23100-45100-50207 33336197.30 01/26/23093487SHOP WITH A COPCREDIT CARD PURCHASES12/07/22202-42100-50210 333361,831.40 01/26/2312072022SHOP WITH A COPCREDIT CARD PURCHASES12/07/22202-42100-50210 7,535.35 Total For Check 33336 Check 33337 33337246.66 01/26/239923894883PD/CH CELL PHONEVERIZON WIRELESS12/26/22100-41900-50321 333371,327.50 01/26/239923894883PD/CH CELL PHONEVERIZON WIRELESS12/26/22100-42100-50321 1,574.16 Total For Check 33337 Check 33338 3333873.77 01/26/23919427MACK DUMP TRUCK RADIAL PATCHWESTSIDE WHOLESALE TIRE01/03/23100-43100-50220 73.77 Total For Check 33338 Check 33339 3333924.25 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-00000-22205 33339264.95 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-00000-22205-007 33339300.75 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-00000-22205-056 333391,043.51 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-00000-22205-065 33339319.20 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-00000-22205-087 33339267.45 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-00000-22205-098 333392,825.65 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-41900-50381 3333960.09 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-42151-50381 33339219.58 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-43100-50381 33339118.88 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23100-45200-50381 3333993.43 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23601-49400-50380 33339331.81 01/26/2335030183718UTILITY SERVICESWRIGHT-HENNEPIN COOP ELECT01/10/23602-49450-50380 5,869.55 Total For Check 33339 Check 33340 3334017,780.75 01/26/23R-020743-000-6HACKAMORE RD FINAL DESIGNWSB12/31/22419-43100-50300 17,780.75 Total For Check 33340 Check 33341 33341311.89 01/26/239008138872SUPPLIESZEP SALES & SERVICE12/30/22100-41900-50210 311.89 Total For Check 33341 9/9Page: 01/20/2023 10:55 AM User: mung DB: Corcoran INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN CHECK DATES 01/10/2023 - 01/26/2023 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK CHECK REGISTER - COUNCIL Check AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number 227,520.13 Fund 100 GENERAL FUND 2,028.70 Fund 202 POLICE DONATION FUND 220,722.20 Fund 408 PAVEMENT MANAGEMENT 188,303.43 Fund 416 CAPITAL-EQUIPMENT CERTS 17,780.75 Fund 419 HACKAMORE UPGRADE (LENNAR) 12,600.80 Fund 601 WATER 566.71 Fund 602 SEWER Fund Totals: 669,522.72 Total For All Funds: Agenda Item: 7e. Page 1 of 3 8200 County Road 116 Corcoran, MN 55340 763-420-2288 www.corcoranmn.gov MEMO Meeting Date: January 26, 2023 To: City Council From: Natalie Davis McKeown, Planner Re: Construction Hours Update ____________________________________________________________________ The City Council requested an update on enforcement of the construction hours updated in 2021 within the noise nuisance section of City Code (Chapter 82.04, Subd. 5). Staff confirmed that the police documented 14 called-in suspected construction hour violations in 2022. Of these calls, 7 violations to the construction hours ordinance were confirmed. Additionally, 1 violation was found during active police patrol. The police utilize an educational approach first and inform individuals of the allowed construction hours. In all instances, individual workers complied with a request to stop by the police, and specific individuals were not involved in a documented complaint twice. No one was formally charged for the 8 confirmed violations. Hypothetically, if an individual was found to be in violation of the ordinance more than once, then they would be charged at that time. Most called-in complaints were within the Bellwether and Amberly developments. However, confirmed violations were also found in Ravinia, Tavera, and Rush Creek Reserve. On average, the police receive 2 calls a month regarding construction hours since June of 2022. Staff met with residents in Bellwether and representatives of Pulte to discuss the frequency of violations reported specific to this area. Pulte confirmed they informed allof their subcontractors of the construction hours. Pulte is willing to work with the City to put up signs that state the construction hours at the entrances into Bellwether and Amberly to try to further inform employees of subcontractors that may not be aware of the hours for whatever reason. Agenda Item 11b. Page 2 of 3 Staff looked into creating City signs providing the allowed construction hours. The City of Minnetrista utilizes this approach and confirmed their overall success with achieving compliance since the signs were implemented. Staff is working with Gopher Signs to design the signs for Corcoran (see image below); an initial 10 signs are currently under production to be posted at all residential developments with a focus on implementing this process with Bellwether and Amberly first. The signs are expected to be available by mid-February. The City of Minnetrista uses a contract for developers to rent the construction hours signs. Staff intends to use a similar model for Corcoran as well. A copy of Minnetrista’s contract is enclosed for reference, and staff will customize this contract to be specific to Corcoran. While there was some discussion of developing a penalty scheme applicable to the developer within the City’s standard Development Agreement, staff could not find another example of this being done by another city. It is unclear how exactly this would work in a way that would be upheld within the court system, especially if someone is completing work that can be argued to be construction-related but is not a subcontractor Agenda Item 11b. Page 3 of 3 of the developer. Staff believes it makes sense to first see if the frequency of construction hours complaints is reduced with the implementation of signs before dedicating additional resources to the development, implementation, and enforcement of a stricter penalty scheme. If the Council disagrees with this assessment, the Council should direct staff to move forward with revising the Development Agreement to include a penalty scheme for construction hour violations moving forward. Attachments 1. City of Minnetrista’s Construction Sign Contract Municipal Offices 7701 County Road 110 West Minnetrista, MN 55364-9552 Email: minnetrista@ci.minnetrista.mn.us OFFICE: (952) 446-1660 FAX: (952) 446-1311 WEBSITE: www.ci.minnetrista.mn.us Date: ___________________ Company Name/Address: _____________________________ _____________________________ _____________________________ _____________________________ RE: Construction Work Hour Sign Rental for __________________________________________ Development Name The City of Minnetrista has received your request to rent one construction work hour sign, four u-channel mounting posts, and mounting hardware. A $350.00 Deposit is required to rent the sign. In the event that the sign is returned with considerable damage, the deposit will be forfeited, per Management discretion. Any remaining amount will be returned to you when you have returned the sign to the City. Condition of sign at time of pick up Initials: ________ _________ City Applicant ⃝ New ⃝ Good ⃝ Fair ⃝ Poor Comments: _____________________________________________________________________________________ _______________________________________________________________________________ Condition of sign at time of return Initials: ________ _________ City Applicant ⃝ New ⃝ Good ⃝ Fair ⃝ Poor Comments: _____________________________________________________________________________________ _______________________________________________________________________________ Please have the responsible party sign below thereby indicating that you have read and agree to the terms of renting a City construction work hour sign and return the original with the $350.00 Deposit payable to the City of Minnetrista. If you have any question, please call me at (952) 241-2528. Sincerely, Renae Neumann Utility Billing/Public Works ____________________________________ Signature of Responsible Party Memo To: Kevin Mattson, PE, PW Director From: Steve Hegland, PE Project/File: 227704747 Date: January 9, 2023 Subject: Pay Application #2 to Park Construction Company – Mass Grading and Stormwater Pond for City Center Drive and 79th Place Council Action Requested Staff is recommending Council Approve Pay Application #2 for the Mass Grading and Stormwater Pond for City Center Drive and 79th Place to Park Construction Company in the amount of $219,617.20. This approval is conditional until it is also approved by the St. Therese Development per the terms of the Cost Share Agreement. Summary The grading portion of this project has begun with Park Construction Company begun grading on the southern portion of the site and having prepared the building pad for the St. Therese Development in accordance with Change Order #1 which was approved in December. The signed payment request form and pay application is attached for review. The contractor has stopped grading operations for the winter and will resume grading the remainder of the site in the spring when conditions allow. The St. Therese development will be beginning construction on the southern portion of their building this winter. Attached is a summary of the work completed to date. Total Contract Value to Date $1,451,685.40 Work Completed to Date $401,244.15 5% Retainage $20,062.21 Amount Paid to Date $161,564.74 Total Pay App #2 $219,617.20 Engineer’s Recommendation We recommend approving Pay Application #2 to Park Construction Company in the amount of $219,617.20. Agenda Item: 7f. STAFF REPORT Agenda Item: 7g. Council Meeting: January 26, 2023 Prepared By: Jessica Beise Topic: Work Session Topics Action Required: Schedule Work Sessions Summary: At the January 12, 2023 meeting, Council discussed work sessions and formalizing topics closer to the scheduled work session dates. Council noted if work sessions were needed, work session topics would be determined and included in the scheduled work session meeting. Staff recommends hosting a Joint Work Session on February 9, 2023, at 5:30 pm with the Planning Commission and the Parks and Trails Commission. Staff has been contracted by Cook Lake Highland regarding some potential PUD amendments and recommends hosting a work session to provide feedback before an application is submitted. Cook Lake Highlands is reacting to market conditions. Staff envisions the work session taking place on February 23, 2023 , at 5:00 pm. Financial/Budget: N/A Options: 1. Authorize staff to move forward with work sessions topics as presented. 2. Provide different work session topics. 3. Decline to schedule work sessions on the topics. Recommendation: Authorize staff to move forward with work sessions topics as presented. Council Action: Authorize staff to move forward with work sessions topics as presented. Attachments: None STAFF REPORT Agenda Item: 7h. Council Meeting: January 26, 2023 Prepared By: Natalie Davis McKeown Topic: Agriculture Preserve Application (City File No. 22-077) Action Required: Approval 60-Day Review Deadline: January 29, 2023 1.Application Request Jerald Vollrath requests City approval for initiation of the Metropolitan Agricultural Preserve program on one parcel consisting of 68.6 acres of land owned by Jerald Vollrath, Jason Vollrath, and Trent Vollrath, at 22903 Strehler Road (PID 20-119-23-22- 0003). 2.Background 22903 Strehler Road is currently enrolled in the Agricultural Preserve program and is set to expire on January 22, 2023. An amendment to the 2040 Future Land Use is required to guide this parcel as Agricultural Preserve. The property is zoned as Rural Residential and is outside the Metropolitan Urban Service Area (MUSA) shown on the City’s Comprehensive Plan. 3.Analysis of Request The property owner is applying to commence enrollment in the Ag Preserve program without an initiation of expiration. This is consistent with the requirements of Minnesota State Statute §473H. 4.Recommendation Move to adopt Resolutions 2023-06 approving designation. Attachments: 1.Resolution 2023-06 2.Aerial Location Map 3.2040 Land Use Map City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-06 Page 1 of 3 Motion By: Seconded By: A RESOLUTION APPROVING A REQUEST FOR METROPOLITAN AGRICULTURAL PRESERVE DESIGNATION FOR 68.6 ACRES OF LAND OWNED BY JERALD, VOLLRATH, JASON VOLLRATH, AND TRENT VOLLRATH AT 22903 STREHLER ROAD (PID 20-119-23-22-0003) (CITY FILE 22-077) WHEREAS, the property owners at 22903 Strehler Road are requesting approval of designation for 68.6 acres of land in one parcel for property legally described as follows: See Attachment 1. WHEREAS, the above described parcel is located outside of the Metropolitan Urban Service Area (MUSA); WHEREAS, the owner of the described parcel has made an official application for their designation as an agricultural preserve attached to this resolution as Attachment A; WHEREAS, the property owners request the City of Corcoran to submit an Affidavit of “Authority” attached to this resolution as Attachment B; and WHEREAS, the requirements regarding size, covenants, development density and other stipulations of the act are deemed legally satisfied. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORCORAN, MINNESOTA, that the property is hereby designated as Agricultural Preserve. BE IT FUTHER RESOLVED, the property be classified as “Agricultural Preserve” in the 2040 Future Land Use Plan of the Comprehensive Plan and the related zoning district which will create more stringent zoning rules for the duration of the requested designation. No subdivisions can occur unless and until said properties are removed from the Ag Preserve Program. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-02 Page 2 of 3 VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee – Mayor ATTEST: ____________________________________ City Seal Michelle Fredrick – City Clerk City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-02 Page 3 of 3 ATTACHMENT 1 That part of the West Half of the Northwest Quarter of Section 20, Township 119, Range 23, Hennepin County, Minnesota, lying South of the North 700.00 feet thereof. Hennepin County Property Map Date: 12/5/2022 Comments: 1 inch = 800 feet PARCEL ID: 2011 92322 0003 OWNER NAME: Tre nt E Vollrath Et Al PARCEL ADDRESS: 5 2 Ad dress Una ssigned,Corcoran MN 00000 PARCEL AREA: 6 8.6 acres, 2,988 ,083 sq ft A-T-B: Torren s SALE PRICE: $19 2,2 13 SALE DATE: 12/2020 SALE CODE: Excluded From Ratio Studies ASSESSED 2021, PAYABLE 2022 PRO PERTY TYPE: Ag Preserve H OMESTEAD: Ho me stead MARKET VALU E: $462,000 TAX TOTAL: $1,192.10 ASSESSED 2022, PAYABLE 2023 PROPERTY TYPE: Ag Preserve HOMESTEAD: Non-Ho mestead MARKET VALUE: $470 ,20 0 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is not suitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2022 Memo To: Kevin Mattson, Public Works Director From: Kent Torve, PE, City Engineer File: 227704919 Date: January 26, 2023 Reference: Corcoran Test Well #2 – Change Order 1 & Final Payment BACKGROUND E.H. Renner & Sons (Renner) began work for the construction of Test Well #2 in August 2022. Due to unexpected geology, test pumping of the well was not possible, and it became necessary to seal the test well. This was completed as Change Order 1 in the amount of $8,152.00 and was completed on a unit price basis. Renner has completed the worked on the Test Well #2 including well sealing and has submitted the final payment request in the amount of $10,674.55. Final payment includes work completed to date in the amount of $8,152.00 and release of the 5% retainage in the amount of $2,522.55, as included in the attached payment request form. Also included is the lien waiver required for project closeout. BUDGET IMPACT The work completed is within the previously approved budget for the project. RECOMMENDATION We recommend payment for the work completed to date combined with retainage in the amount of $10,674.55. ATTACHMENTS Final Payment Request Agenda Item: 7i. Memo To:Kevin Mattson, PE Public Works From:Kent Torve, PE Steve Hegland, PE Project/File: 227704115 Date: January 18, 2023 Reference: Trail Haven Construction Materials Testing Proposals Background and Purpose For the Trail Haven Bridge Replacement project the city is required to complete testing of construction materials throughout the project to ensure conformance with project specifications and MN State Aid requirements. We solicited proposals from 2 local testing firms, and received 2 proposals: Haugo Geotechnical Services: $5,110 Braun Intertec:$7,834 While the estimated testing cost for Haugo Geotechnical Services was lower, they indicated that they did not have a laboratory that is accredited by the AASHTO Resource for all test procedures performed, which is a requirement of the MnDOT 2020 Schedule of Materials Control which was specific to this project. Additionally, the City has used Braun Intertec on previous State Aid funded projects due to their expertise with this program. Because of this we would recommend entering into an agreement with Braun Intertec for construction materials testing for the project. Action Requested Staff is requesting Council review the information presented and consider the following: ·Review and approve of the attached Proposal for Construction Materials Testing Services provided by Braun Intertec Agenda Item: 7j. AA/EOE Braun Intertec Corporation 11001 Hampshire Avenue S Minneapolis, MN 55438 Phone: 952.995.2000 Fax: 952.995.2020 Web: braunintertec.com January 16, 2023 Proposal QTB171504 Nicholas Wyers, PE Stantec Consulting Services, Inc. 1800 Pioneer Creek Center Maple Plain, MN 55359 Re: Proposal for Construction Materials Testing Services Corcoran – Trail Haven Bridge Replacement S.A.P. 215-107-002, Bridge Number 27J78 Stantec Project No. 227704119 Corcoran, Minnesota Dear Mr. Wyers: Braun Intertec Corporation is pleased to submit this proposal to provide construction materials testing services for the Trail Haven Bridge Replacement project in Corcoran, Minnesota. Since our inception in 1957, we have grown into one of the largest employee owned engineering firms in the nation. With more than 1,000 employee owners, retaining our firm gives you access to a diverse range of services and professionals you can consult with if the unforeseen occurs. The size of our company also allows us to respond quickly when schedule constraints occur. Our Understanding of Project We understand this project will include removal of the existing roadway for the installation of a new flow path for Rush Creek. The creek will be temporarily routed around the work area to install new precast culvert sections. The road will then be reconstructed with a small amount of aggregate base, geotextile barriers, select granular materials. The project is located on Trail Haven Road over Rush Creek in Corcoran, Minnesota. This is a City of Corcoran project with state-aid funding. Projects that are constructed with state-aid funding are required to perform Quality Control and Quality Assurance (QC/QA) testing in accordance with the Minnesota Department of Transportation’s (MnDOT’s) 2020 Standard Specifications for Construction and MnDOT’s Schedule of Materials Control. This project is using MnDOT’s 2022 State Aid for Local Transportation (SALT) Schedule of Materials Control. Personnel with MnDOT certifications must complete the monitoring and testing. Braun Intertec will perform the QA field testing on the project as listed in our scope of services and as shown on our attached cost estimate table. The contractor will be responsible for performing all of the required QC testing and submitting all the documentation upon completion of the project. An audit of the project could be conducted upon completion. The audit may include reviewing tests and paperwork provided by your QC/QA representative. Stantec Consulting Services, Inc. Proposal QTB171504 January 16, 2023 Page 2 Available Project Information This proposal was prepared using the following documents and information. Project plans prepared by Stantec, dated October 24, 2022. Project manual prepared by Stantec, dated November 2022. The Request for Proposals by Stantec, emailed January 6, 2023. Project specified 2020 Edition of the Minnesota Department of Transportation “Standard Specifications for Construction”. Braun Intertec Project Personnel For this project, we will provide technicians that are MnDOT certified in each specialized field. For the proposed scope of services, our staff will have the following certifications: Aggregate Production Grading & Base I Accredited Laboratory In the 2020 Schedule of Material Control, which is part of this project’s testing requirements, MnDOT requires laboratories performing acceptance tests for payment to be accredited by the AASHTO Resource (formerly AASHTO Materials Reference Laboratory [AMRL]) for all test procedures performed. Braun Intertec is one of the few independent testing companies that is accredited in the metro area/state. With Braun Intertec’s Metro Material Laboratory typically operating 24 hours a day, laboratory test results are delivered in a timely manner. Scope of Services Services are performed under the direction of a licensed professional engineer. Testing services will be performed on an on-call, as-needed basis as requested and scheduled by you or your on-site project representative. After reviewing available information to determine compliance with project plans and/or specifications and other design or construction documents, our scope of services for the project will be limited to the tasks defined below. Soil Related Services Perform nuclear gauge density tests on subgrade preparation, common embankment, select granular borrow, and utility backfill materials. Perform Dynamic Cone Penetrometer (DCP) tests on aggregate base materials. Stantec Consulting Services, Inc. Proposal QTB171504 January 16, 2023 Page 3 Perform gradation tests on aggregate base, coarse filter aggregate, and embankment materials. Perform laboratory standard Proctor tests on backfill and fill materials. Perform laboratory testing of topsoil materials. Prepare the preliminary and final grading and base report. Reporting and Project Management Test results will be issued weekly for the project as the various tasks are performed. If, at any time, there are failing tests which do not appear to be in accordance with the plans and specifications or MnDOT’s Schedule of Materials Control, we will notify the engineer’s representative and any others that we are directed to notify. Before the final project closeout, we will issue a final report. The report will include the following: Braun Intertec technician roster for technicians that conducted testing on the project. Completed MnDOT Materials Certification Exceptions Summary for items tested by Braun Intertec. Completed Preliminary and Final Grading and Base Report. Moisture, Density, Proctor, DCP, topsoil, and Gradation tests. Basis of Scope of Work The costs associated with the proposed scope of services were estimated using the following assumptions. If the construction schedule is modified or the contractor completes the various phases of the project at different frequencies or durations than shown in this proposal, we may need to adjust the overall cost accordingly. The scope of work and number of trips required to perform these services are as shown in the attached table. Notable assumptions in developing our estimate include: We assume it will take eight trips to complete the nuclear density gauge testing on this project. We assume compaction testing on aggregate base and full depth reclaim material will be performed using the Dynamic Cone Penetration (DCP) method; a minimum of two tests will be conducted each trip with two trips assumed. Stantec Consulting Services, Inc. Proposal QTB171504 January 16, 2023 Page 4 We assume your full-time on-site construction observer will observe excavated bottoms prior to placement of the precast concrete culvert sections. This scope of work is not included in our estimate. Braun Intertec can assist with engineering recommendations if unforeseen circumstances are encountered. We understand through conversations, your full-time on-site construction observer will observe the test rolling for this project if any are required, We assume the project engineer of record will review and approve contractor’s quality control submittals and test results. You, or others you may designate, will provide us with current and approved plans and specifications for the project. Modification to these plans must also be sent to us so we can review their incorporation into the work. We will require a minimum of 24 hours’ notice for scheduling inspections for a specific time. Shorter than 24 hours’ notice may impact our ability to perform the requested services, and the associated impacts will be the responsibility of others. If the work is completed at different rates than described above, this proposal should be revised. If the pace of construction is different than described above, this proposal should be revised. Cost and Invoicing We will furnish the services described herein for an estimated fee of $7,834. Our estimated costs are based on industry averages for construction production. Depending on the contractor’s performance, our costs may be significantly reduced or slightly higher than estimated. A tabulation showing our estimated hourly and/or unit rates associated with our proposed scope of services is also attached. The actual cost of our services will be based on the actual units or hours expended to meet the requirements of the project documents. This cost estimate was developed with the understanding that the scope of services defined herein will be required and requested during our normal work hours of 6:00 a.m. to 4:00 p.m., Monday through Friday. Services that we are asked to provide to meet the project requirements or the contractor’s construction schedule outside our normal business hours will be invoiced using an overtime rate factor. The factor for services provided outside our normal work hours or on Saturday will be 1.25 times the listed hourly rate for the service provided. The factor for services provided on Sunday or legal holidays will be 1.5 times the listed hourly rate for the service provided. We have not included premiums for overtime in our cost estimate; however, we recommend that allowances and contingencies be made for overtime charges based on conversations with the contractor. You will be billed only for services provided on a time and materials basis. Stantec Consulting Services, Inc. Proposal QTB171504 January 16, 2023 Page 5 Because our services are directly controlled by the schedule and performance of others, the actual cost may vary from our estimate. It is difficult to project all of the services and the quantity of services that may be required for any project. If services are required that are not discussed above, we will provide them at the rates shown in the attached table or, if not shown, at our current Schedule of Charges. We will invoice you on a monthly basis. General Remarks We will be happy to meet with you to discuss our proposed scope of services further and clarify the various scope components. We appreciate the opportunity to present this proposal to you. After reviewing this proposal, please sign and return one copy to our office as notification of acceptance and authorization to proceed. If anything in this proposal is not consistent with your requirements, please let us know immediately. Braun Intertec will not release any written reports until we have received a signed agreement. Also, ordering services from Braun Intertec constitutes acceptance of the terms of this proposal (including the attached General Conditions). The proposed fee is based on the scope of services described and the assumption that our services will be authorized within 30 days and that others will not delay us beyond our proposed schedule. Stantec Consulting Services, Inc. Proposal QTB171504 January 16, 2023 Page 6 We include the Braun Intertec General Conditions, which provide additional terms and are a part of our agreement. To have questions answered or schedule a time to meet and discuss our approach to this project further, please contact Jacob Collins at 612.418.8570 (jacollins@braunintertec.com) or Andrew Valerius at 952.995.2242 (avalerius@braunintertec.com). Sincerely, BRAUN INTERTEC CORPORATION Jacob D. Collins Project Manager Andrew M. Valerius Account Leader, Senior Project Manager Charles M. Cadenhead Jr., PE Vice President, Principal Engineer Attachments: Project Proposal – QTB171504 General Conditions (1/1/18) The proposal is accepted. We will reimburse you in accordance with this agreement, and you are authorized to proceed: Authorizer’s Firm Authorizer’s Signature Authorizer’s Name (please print or type) Authorizer’s Title Date Client:Service Description:Work Site Address: Trail Haven Road over Rush Creek Approximately 0.5 Miles South of County Road 117 Corcoran, MN 55340 Stantec Consulting Services Inc. Nick Wyers 1800 Pioneer Creek Center Maple Plain, MN 55359 (651) 636-4600 Construction Materials Testing State Aid Project No. 215-107-002 Bridge No. 27J78 Stantec Project No. 227704119 Proposal Total:$7,834.00 Description Quantity Units Unit Price Extension Phase 1 Construction and Materials Testing Activity 1.1 Soil Testing $6,180.00 207 Compaction Testing - Nuclear 24.00 Hour 88.00 $2,112.00 Work Activity Detail Qty Units Hrs/Unit Extension Backfill Culvert/Select/Subgrade/Embankment 8.00 Trips 3.00 24.00 1308 Nuclear moisture-density meter charge, per hour 24.00 Each 24.00 $576.00 217 Compaction Testing - DCP 7.00 Hour 88.00 $616.00 Work Activity Detail Qty Units Hrs/Unit Extension Roadway DCP Testing 2.00 Trips 3.50 7.00 209 Sample pick-up 4.00 Hour 88.00 $352.00 1228 Topsoil Testing with nutrients, per sample 1.00 Each 390.00 $390.00 1162 Sieve Analysis with 200 wash, per sample 6.00 Each 142.00 $852.00 1318 Moisture Density Relationship (Standard), per sample 3.00 Each 194.00 $582.00 1861 CMT Trip Charge 14.00 Each 50.00 $700.00 Activity 1.2 Project Management $1,654.00 238 Project Assistant 3.00 Hour 88.00 $264.00 226 Project Manager 7.00 Hour 170.00 $1,190.00 228 Senior Project Manager 1.00 Hour 200.00 $200.00 Phase 1 Total:$7,834.00 Page 1 of 101/16/2023 03:33 PM Project Proposal QTB171504 Corcoran - Trail Haven Bridge Replacement - SAP 215-107-002 General Conditions GC Page 1 of 2 Section 1: Agreement 1.1 Our agreement with you consists of these General Conditions and the accompanying written proposal or authorization (“Agreement”). This Agreement is the entire agreement between you and us. It supersedes prior agreements. It may be modified only in a writing signed by us, making specific reference to the provision modified. 1.2 The words “you,” “we,” “us,” and “our” include officers, employees, and subcontractors. 1.3 In the event you use a purchase order or other documentation to authorize our scope of work (“Services”), any conflicting or additional terms are not part of this Agreement. Directing us to start work prior to execution of this Agreement constitutes your acceptance. If, however, mutually acceptable terms cannot be established, we have the right to terminate this Agreement without liability to you or others, and you will compensate us for fees earned and expenses incurred up to the time of termination. Section 2: Our Responsibilities 2.1 We will provide Services specifically described in this Agreement. You agree that we are not responsible for services that are not expressly included in this Agreement. Unless otherwise agreed in writing, our findings, opinions, and recommendations will be provided to you in writing. You agree not to rely on oral findings, opinions, or recommendations without our written approval. 2.2 In performing our professional services, we will use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of our profession practicing in the same locality. If you direct us to deviate from our recommended procedures, you agree to hold us harmless from claims, damages, and expenses arising out of your direction. If during the one year period following completion of Services it is determined that the above standards have not been met and you have promptly notified us in writing of such failure, we will perform, at our cost, such corrective services as may be necessary, within the original scope in this Agreement, to remedy such deficiency. Remedies set forth in this section constitute your sole and exclusive recourse with respect to the performance or quality of Services. 2.3 We will reference our field observations and sampling to available reference points, but we will not survey, set, or check the accuracy of those points unless we accept that duty in writing. Locations of field observations or sampling described in our report or shown on our sketches are based on information provided by others or estimates made by our personnel. You agree that such dimensions, depths, or elevations are approximations unless specifically stated otherwise in the report. You accept the inherent risk that samples or observations may not be representative of things not sampled or seen and further that site conditions may vary over distance or change over time. 2.4 Our duties do not include supervising or directing your representatives or contractors or commenting on, overseeing, or providing the means and methods of their services unless expressly set forth in this Agreement. We will not be responsible for the failure of your contractors, and the providing of Services will not relieve others of their responsibilities to you or to others. 2.5 We will provide a health and safety program for our employees, but we will not be responsible for contractor, owner, project, or site health or safety. 2.6 You will provide, at no cost to us, appropriate site safety measures as to work areas to be observed or inspected by us. Our employees are authorized by you to refuse to work under conditions that may be unsafe. 2.7 Unless a fixed fee is indicated, our price is an estimate of our project costs and expenses based on information available to us and our experience and knowledge. Such estimates are an exercise of our professional judgment and are not guaranteed or warranted. Actual costs may vary. You should allow a contingency in addition to estimated costs. Section 3: Your Responsibilities 3.1 You will provide us with prior environmental, geotechnical and other reports, specifications, plans, and information to which you have access about the site. You agree to provide us with all plans, changes in plans, and new information as to site conditions until we have completed Services. 3.2 You will provide access to the site. In the performance of Services some site damage is normal even when due care is exercised. We will use reasonable care to minimize damage to the site. We have not included the cost of restoration of damage in the estimated charges. 3.3 You agree to provide us, in a timely manner, with information that you have regarding buried objects at the site. We will not be responsible for locating buried objects at the site. You agree to hold us harmless, defend, and indemnify us from claims, damages, losses, penalties and expenses (including attorney fees) involving buried objects that were not properly marked or identified or of which you had knowledge but did not timely call to our attention or correctly show on the plans you or others furnished to us. 3.4 You will notify us of any knowledge or suspicion of the presence of hazardous or dangerous materials present on any work site or in a sample provided to us. You agree to provide us with information in your possession or control relating to such materials or samples. If we observe or suspect the presence of contaminants not anticipated in this Agreement, we may terminate Services without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 3.5 Neither this Agreement nor the providing of Services will operate to make us an owner, operator, generator, transporter, treater, storer, or a disposal facility within the meaning of the Resource Conservation Recovery Act, as amended, or within the meaning of any other law governing the handling, treatment, storage, or disposal of hazardous substances. You agree to hold us harmless, defend, and indemnify us from any damages, claims, damages, penalties or losses resulting from the storage, removal, hauling or disposal of such substances. 3.6 Monitoring wells are your property, and you are responsible for their permitting, maintenance, and abandonment unless expressly set forth otherwise in this Agreement. 3.7 You agree to make all disclosures required by law. In the event you do not own the project site, you acknowledge that it is your duty to inform the owner of the discovery or release of contaminants at the site. You agree to hold us harmless, defend, and indemnify us from claims, damages, penalties, or losses and expenses, including attorney fees, related to failures to make disclosures, disclosures made by us that are required by law, and from claims related to the informing or failure to inform the site owner of the discovery of contaminants. Section 4: Reports and Records 4.1 Unless you request otherwise, we will provide our report in an electronic format. 4.2 Our reports, notes, calculations, and other documents and our computer software and data are instruments of our service to you, and they remain our property. We hereby grant you a license to use the reports and related information we provide only for the related project and for the purposes disclosed to us. You may not transfer our reports to others or use them for a purpose for which they were not prepared without our written approval. You agree to indemnify, defend, and hold us harmless from claims, damages, losses, and expenses, including attorney fees, arising out of such a transfer or use. 4.3 If you do not pay for Services in full as agreed, we may retain work not yet delivered to you and you agree to return to us all of our work that is in your possession or under your control. 4.4 Samples and field data remaining after tests are conducted and field and laboratory equipment that cannot be adequately cleansed of contaminants are and continue to be your property. They may be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. 4.5 Electronic data, reports, photographs, samples, and other materials provided by you or others may be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. GC Revised 1/1/2018 Page 2 of 2 Section 5: Compensation 5.1 You will pay for Services as stated in this Agreement. If such payment references our Schedule of Charges, the invoicing will be based upon the most current schedule. An estimated amount is not a firm figure. You agree to pay all sales taxes and other taxes based on your payment of our compensation. Our performance is subject to credit approval and payment of any specified retainer. 5.2 You will notify us of billing disputes within 15 days. You will pay undisputed portions of invoices upon receipt. You agree to pay interest on unpaid balances beginning 30 days after invoice dates at the rate of 1.5% per month, or at the maximum rate allowed by law. 5.3 If you direct us to invoice a third party, we may do so, but you agree to be responsible for our compensation unless the third party is creditworthy (in our sole opinion) and provides written acceptance of all terms of this Agreement. 5.4 Your obligation to pay for Services under this Agreement is not contingent on your ability to obtain financing, governmental or regulatory agency approval, permits, final adjudication of any lawsuit, your successful completion of any project, receipt of payment from a third party, or any other event. No retainage will be withheld. 5.5 If you do not pay us in accordance with this Agreement, you agree to reimburse all costs and expenses for collection of the moneys invoiced, including but not limited to attorney fees and staff time. 5.6 You agree to compensate us in accordance with our Schedule of Charges if we are asked or required to respond to legal process arising out of a proceeding related to the project and as to which we are not a party. 5.7 If we are delayed by factors beyond our control, or if project conditions or the scope or amount of work changes, or if changed labor conditions result in increased costs, decreased efficiency, or delays, or if the standards or methods change, we will give you timely notice, the schedule will be extended for each day of delay, and we will be compensated for costs and expenses incurred in accordance with our Schedule of Charges. 5.8 If you fail to pay us in accordance with this Agreement, we may consider the default a total breach of this Agreement and, at our option, terminate our duties without liability to you or to others, and you will compensate us for fees earned and expenses incurred up to the time of termination. 5.9 In consideration of our providing insurance to cover claims made by you, you hereby waive any right to offset fees otherwise due us. Section 6: Disputes, Damage, and Risk Allocation 6.1 Each of us will exercise good faith efforts to resolve disputes without litigation. Such efforts will include, but not be limited to, a meeting(s) attended by each party’s representative(s) empowered to resolve the dispute. Before either of us commences an action against the other, disputes (except collections) will be submitted to mediation. 6.2 Notwithstanding anything to the contrary in this Agreement, neither party hereto shall be responsible or held liable to the other for punitive, indirect, incidental, or consequential damages, or liability for loss of use, loss of business opportunity, loss of profit or revenue, loss of product or output, or business interruption. 6.3 You and we agree that any action in relation to an alleged breach of our standard of care or this Agreement shall be commenced within one year of the date of the breach or of the date of substantial completion of Services, whichever is earlier, without regard to the date the breach is discovered. Any action not brought within that one year time period shall be barred, without regard to any other limitations period set forth by law or statute. We will not be liable unless you have notified us within 30 days of the date of such breach and unless you have given us an opportunity to investigate and to recommend ways of mitigating damages. You agree not to make a claim against us unless you have provided us at least 30 days prior to the institution of any legal proceeding against us with a written certificate executed by an appropriately licensed professional specifying and certifying each and every act or omission that you contend constitutes a violation of the standard of care governing our professional services. Should you fail to meet the conditions above, you agree to fully release us from any liability for such allegation. 6.4 For you to obtain the benefit of a fee which includes a reasonable allowance for risks, you agree that our aggregate liability for all claims will not exceed the fee paid for Services or $50,000, whichever is greater. If you are unwilling to accept this allocation of risk, we will increase our aggregate liability to $100,000 provided that, within 10 days of the date of this Agreement, you provide payment in an amount that will increase our fees by 10%, but not less than $500, to compensate us for the greater risk undertaken. This increased fee is not the purchase of insurance. 6.5 You agree to indemnify us from all liability to others in excess of the risk allocation stated herein and to insure this obligation. In addition, all indemnities and limitations of liability set forth in this Agreement apply however the same may arise, whether in contract, tort, statute, equity or other theory of law, including, but not limited to, the breach of any legal duty or the fault, negligence, or strict liability of either party. 6.6 This Agreement shall be governed, construed, and enforced in accordance with the laws of the state in which our servicing office is located, without regard to its conflict of laws rules. The laws of the state of our servicing office will govern all disputes, and all claims shall be heard in the state or federal courts for that state. Each of us waives trial by jury. 6.7 No officer or employee acting within the scope of employment shall have individual liability for his or her acts or omissions, and you agree not to make a claim against individual officers or employees. Section 7: General Indemnification 7.1 We will indemnify and hold you harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by our negligent acts or omissions or those negligent acts or omissions of persons for whom we are legally responsible. You will indemnify and hold us harmless from and against demands, damages, and expenses of others to the comparative extent they are caused by your negligent acts or omissions or those negligent acts or omissions of persons for whom you are legally responsible. 7.2 To the extent it may be necessary to indemnify either of us under Section 7.1, you and we expressly waive, in favor of the other only, any immunity or exemption from liability that exists under any worker compensation law. 7.3 You agree to indemnify us against losses and costs arising out of claims of patent or copyright infringement as to any process or system that is specified or selected by you or by others on your behalf. Section 8: Miscellaneous Provisions 8.1 We will provide a certificate of insurance to you upon request. Any claim as an Additional Insured shall be limited to losses caused by our negligence. 8.2 You and we, for ourselves and our insurers, waive all claims and rights of subrogation for losses arising out of causes of loss covered by our respective insurance policies. 8.3 Neither of us will assign or transfer any interest, any claim, any cause of action, or any right against the other. Neither of us will assign or otherwise transfer or encumber any proceeds or expected proceeds or compensation from the project or project claims to any third person, whether directly or as collateral or otherwise. 8.4 This Agreement may be terminated early only in writing. You will compensate us for fees earned for performance completed and expenses incurred up to the time of termination. 8.5 If any provision of this Agreement is held invalid or unenforceable, then such provision will be modified to reflect the parties' intention. All remaining provisions of this Agreement shall remain in full force and effect. 8.6 No waiver of any right or privilege of either party will occur upon such party's failure to insist on performance of any term, condition, or instruction, or failure to exercise any right or privilege or its waiver of any breach. January 13, 2023 HGTS Proposal 23-0019 Mr. Nick Wyers Stantec 1800 Pioneer Creek Center Maple Plain, MN 55359-9000 Re: Proposal for Construction Materials Testing, Trailhaven Road Bridge Replacement, Corcoran, Minnesota. Dear Mr. Wyers; We are pleased to present this cost estimate for construction materials testing services during the construction of the Trailhaven Road Bridge Replacement in Corcoran, MN. Project Stantec, on behalf of The City of Corcoran is requesting a proposal for construction materials testing during the construction of the Trail Haven Road Bridge Replacement (SAP 215-107-002) in Corcoran, MN. It is our understanding the project will consist of replacing the existing culvert on Trailhaven Road over Rush Creek with a new box culvert. To aid in preparing this proposal we were provided with a set of plans and specifications titled “Bridge No. 27J78 Replacement on Trailhaven Road” prepared by Stantec and dated November 2022. Our fees were based on the 2022 MnDOT SALT Schedule of Materials Control and the estimated quantities provided in the plans and specifications. Scope of Services Qualified technicians will perform the proposed field tests under the direction of a licensed professional engineer. Our services will be performed on an as-needed basis as scheduled by you or your authorized representative. Based on a review of available information and discussions with you, our services will be limited to the following tasks. • Perform compaction testing on embankment fill and culvert backfill • Perform compaction testing on the aggregate base. • Collect soil samples for laboratory proctors and gradations. • Provide management services including review of field reports and communication with project team members. Cost We will provide the above-mentioned services for an estimated fee of $5,110. The project estimate, attached, provides a summary of the estimated hourly and unit rates associated with our scope of services. Since or services are directly controlled by the schedule of others, the actual cost of our services may vary from this estimate. The cost of our services will be based on the actual hours and/or units tested for the project. Our services will be provided over several invoicing periods. We will submit partial progress invoices as the project proceeds. Our invoices will be payable upon receipt in accordance with our attached General Conditions. General Thank you for the opportunity to provide this cost estimate to you. If it is acceptable, please sign and return one copy to us and retain one copy for your records. We are also including a copy of our General Conditions which provide additional terms and are part of this agreement. If you have any questions regarding this proposal, please contact Lucas Mol (lmol@haugogts.com) at 612-297-4108. Sincerely, Haugo Geotechnical Services Lucas Mol Project Manager Attachments: Project Estimate General Conditions Authorization to Proceed By: ___________________________________ Date: _________________________________ TRIPS HOURS PER TRIP QTY UNITS PRICE($)SUM($) CODES SOIL OBSERVATIONS 203C/D EXCAVATING/FOOTING/PADS HOUR 86 225 HELICAL OBSERVATION HOUR 86 209 PROOFROLL-SUBBASE HOUR 86 COMPACTION TESTING 201 BUILDING PAD CORRECTION HOUR 76 201 CULVERT BACKFILL 6 3 18 HOUR 76 1368 201B SELECT GRANULAR EMBANKMENT 1 3 3 HOUR 76 228 201A COMMON EMBANKMENT 1 3 3 HOUR 76 228 201A SUBGRADE 1 3 3 HOUR 76 228 208 AGGREGATE BASE 1 3 3 HOUR 86 258 CONCRETE TESTING 101C BUILDING FOOTINGS/PADS HOUR 76 101E WALLS HOUR 76 101D INTERIOR SLABS HOUR 76 101E PIERS HOUR 76 101A/B EXTERIOR CONCRETE HOUR 76 SPECIAL INSPECTIONS 161 FOOTINGS/PADS REINFORCEMENT HOUR 86 161 WALL REINFORCEMENT HOUR 86 161 PIER REINFORCEMENT HOUR 86 151 MASONRY INSPECTIONS HOUR 86 151 GROUTING INSPECTIONS HOUR 86 162/163 BOLTING/WELDING INSPECTIONS HOUR 120 164 FIRE PROOFING INSPECTIONS HOUR 120 COMPRESSIVE STRENGTH TESTING 102 STRUCTURAL CONCRETE CYLINDERS TEST 20 102 CONCRETE CYLINDERS TEST 20 157 MASONRY GROUT TEST 30 156 MASONRY BLOCK PRISMS TEST 165 159 MASONRY NET AREA TEST 130 107 GYPSUM CONCRETE CUBES TEST 20 105 SAMPLE PICK-UP 3 TEST 76 228 SIEVE ANALYSIS / PROCTORS 401/402 STANDARD/MODIFIED PROCTOR 2 TEST 140 280 403 SIEVE ANALYSIS 5 TEST 140 700 BITUMINOUS 303 EXTRACTION / GRADATION / AIR VOIDS TEST 425 304 CORE THICKNESS / DENSITY TEST 25 PROJECT DETAILS 110 TRIP CHARGE 13 TRIPS 40 520 612 PROJECT ENGINEER HOUR 120 602 PROJECT MANAGER 8 HOUR 120 960 609 PROJECT ASSISTANT 2 HOUR 56 112 TOTAL 5,110.00$ we will provide them in accordance with our standard fee schedule. Our services are directly controlled by the schedule of others, the actual cost of our services may vary from our estimate. Invoices for our services will be based on the actual numbers of hours spent on the project and the tests performed. It is difficult to predict all of the services and the quantity of services that may be required. If services are required that are not shown above, we will Table 1 Summary of Estimated Costs Corcoran, MN Project: Client: HGTS Project #23-0019 City of Corcoran Trail Haven Bridge Replacemen HAUGO GEOTECHNICAL SERVICES 2825 CEDAR AVE S, MINNEAPOLIS, MN 55407 WEBSITE: www.haugogts.com Location: General Conditions Our agreement ("Agreement") with you consists of these General Conditions and the accompanying written proposal or authorization. Section I: Our Responsibilities LI We will provide the services specifically described in our Agreement with you. You agree that we are not responsible for services that are not fairly included in our specific undertaking. Unless otherwise agreed in writing, our findings, opinions, �nd recommendations will be provided to you in writing. You agree not to rely on oral findings, opinions, or recommendations without our written approval. l.2 1n performing our professional services, we will use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of our profession practicing in the same locality. If you direct us to deviate from our recommended procedures, you agree to hold us hannless from claims, damages, and e)!.penses arising out of your direction. 1.3 We will reference our field observations and sampling to available reference points, but we will not survey, set, or check the accuracy of those points unless we accept that duty in writing. Locations of field observations or sampling described in om report or shown on our sketches are based on information provided by oth;rs or estimates made by our personnel. You agree that such dimensions, depths, or elevations are approximations unless specifically stated otherwise in the report. You accept the inherent risk that samples or observations may not be representative of things not sampled or seen and, further, that site conditions may change over time. 1.4 Our duties do not include supervising your contractors or commenting on, overseeing, or providing the means and methods of their work, unless we accept such duties in writing. We will not be responsible for the failure of your contractors to perform in accordance with their undertakings, and the providing of our services will not relieve others of d1eir responsibilities to you or to others. 1.5 We will provide a health and safety program for our employees, but we will not be responsible for contractor, job, or site health or safety unless we accept that duty in writing. 1.6 You will provide, at no cost to us, appropriate site safety measures as to work areas to be observed or inspected by us. Our employees are authorized by you to refuse to work under conditions that may be unsafe. 1. 7 Estimates of our fees or other project costs will be based on information available to us and on our experience and knowledge. Such estimates are an exercise of our professional judgment and are not guaranteed or warranted. Actual costs may vary. You should allow a contingency in addition to estimated costs. Section 2: Your Responsibilities 2.1 You will provide ns with prior gcotechnical and other reports, specifications, plans, and information to which you have access about the site. You agree to provide us with all plans, changes in plans. and new infonnation as to site conditions until we have completed our work. 2.2 You will provide access to the site. In the course of our work some site damage is nonnal even when due care is exercised. We will use reasonable care to minimize damage to the site. We have not included the cost of restoration of nom1al damage in the estimated charges. 2.3 You agree to provide us, in a timely manner, with infom1ation that you have regarding buried objects at the site. We will not be responsible for locating buried objects at the site unless we accept that duty in writing. You agree to hold us harmless from claims, damages, losses, and related expenses involving buried objects of which you had knowledge but did not timely call to our attention or COll'ectly show on the plans you or others on your behalf furnished to us. 2.4 You will notify us of any knowledge or suspicion of the presence of hazardous or dangerous materials in a sample provided to us. You agree to provide us with information in your possession or control relating to contamination at the work site. If we observe or suspect the presence of contaminants not anticipated in our Agreement, we may tenninate our work without liability to you or to others, and we will be paid for the services we have provided. 2.5 Neither this Agreement nor the providing of services will operate to make us an owner, operator, generator, transporter, treater, storer, or a disposal facility within the meaning of the Resource Conservation Recovery Act, as amended, or within the meaning of any other law governing the handling, treatment, storage, or disposal of hazardous materials. You agree to hold us hannless and indemnify us from any such claim or loss. 2.6 Monitoring wells are your property, and you are responsible for their permitting, maintenance, and abandonment unless we accept that duty in writing. 2. 7 You agree to make disclosures required by law. 1n the event you do not own the site, you acknowledge that it is your duty to infonn the owner of the discovery or release of contaminants at the site. You agree to hold us harmless and indemnify us from claims related to disclosures made by us that are required by law and from claims related to the informing or failure to infonn the site owner of the discovery of contaminants. Section 3: Reports and Records 3.1 We will furnish reports to you in duplicate. We will retain analytical data for seven years and financial data for three years. 3.2 Our reports, notes, calculations, and other documents and our computer software and data are instruments of our service to you, and they remain our property but are subject to a 1 icense to you for your use in the related project for the purposes disclosed to us. You may not transfer our reports to others or use thcri1 for a purpose for which they were not prepared without our written approval, which will not be unreasonably withheld. You agree to indemnify and hold us hannless from claims, damages, losses, and expenses, including attorney fees, arising out of such a transfer or use. At your request, we will provide endorsements of our reports or letters of reliance, but only if the recipients agree to be bound by the terms of our agreement with you and only if we are paid the administrative fee stated in qµr then cull'ent Schedule of Charges. 3.3 Because electronic documents may be modified intentionally or inadvertently, you agree that we will not be liable for damages resulting from change in an electronic document occu1Ting after we transmit it to you. 1n case of any difference or ambiguity between an electronic and a paper document, the paper document shall govern. 3.4 If you do not pay for our services in full as agreed, we may retain work not yet delivered to you and you agree to return to us all of our work that is in your possession or under your control. You agree not to use or rely upon our work for any purpose whatsoever until it is paid for in full. Page 1 of2 HAUGD -~1#1 3.5 Samples remaining after tests are conducted and field and laboratory equipment tbat cannot be adequately cleansed of contaminants are and continue to be your property. They will be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. Section 4: Compensation 4.1 You will pay for services as agreed upon or according to our then current Schedule of Charges if there is no otp.er written agreement as to price. An estimated cost is nol a film figure. You agree to pay all sales taxes and other taxes based on your payment of our compensation. Our pe1formance is subject to credit approval and payment of any specified retainer. 4.2 You will notify us of billing disputes within 15 days. You will pay undisputed portions of invoices on 1eccipt. You agree to pay interest on unpaid balances beginning 30 days after invoice dates at the rate of 1 .5% per month, or at the maximum rate allowed by law. 4.3 If you direct us to invoice another, we will do so, but you agree to be responsible for our compensation unless you provide us with that person's written acceptance of all terms of our Agreement and we agree to extend credit to that person and to release you. 4.4 , You agree to compensate us in accordance with our fee schedule if we are asked or required to respond to legal process arising out of a proceeding related to the project and as to which we are not a party. 4.5 lf we are delayed by factors beyond our control, or if project conditions or the scope or a.mount of work change, or if changed labor union conditions result in increased costs, decreased efficiency, or delays, or if the standards or methods change, we will give you timely notice and we will receive an equitable adjustment of our compensation. If you and we do not reach agreement on such compensation within 30 days of our written application, we may terminate without liability to you or others. 4.6 If you fail to pay us within 60 days following invoice date, we may consider the default a total breach of our Agreement and, at our option, terminate our duties without liability to you or to others. 4.7 Tn consideration of our providing insurance to cover claims made by you, you hereby waive any right of offset as to fees otherwise due us. Section 5: Disputes, Damage, and Risk Allocation 5.1 Each of us will exercise good faith efforts to resolve disputes without litigation. Such efforts will include, but not be limited to, a meeting(s) attended by each party's representative(s) empowered to resolve the dispute. Before either of us commences an action against the other, disputes (except collections) will be submitted to mediation. 5.2 Neither of us will be liable for special, incidental, consequential, or punitive damages, including but not limited to those arising from delay, loss of use, loss of profits or revenue, loss of financing commitments or fees, or the cost of capital. 5.3 We will not be liable for damages unless suit is commenced within two years oflhe date of injury or loss or within two years of the date of the completion of our services, whichever is earlier. We will not be liable unless you have notified us of the discovery of the claimed breach of contract, negligent act, or omission within 30 days of the date of discovery and unless you have given us an opportunity to investigate and to recommend ways of mitigating damages. 5.4 For you to obtain the benefit of a fee which includes a reasonable allowance for risks, you agree that our aggregate liability will not exceed the fee paid for our services or S50,000, whichever is greater, and you agree to indemnify us from all liability to others in excess of that amount. If you are unwilling to accept this allocation of risk, we will increase our aggregate liability to $100,000 provided that, within 10 days of the date of our Agreement, you provide payment in an amount that will increase our fees by 100/o, but not less than $500, to compensate us for the greater risk unde1taken. This increased fee is not the purchase of insurance. 5.5 If you do not pay us within 60 days of invoice date, or if you make a claim against us that is resolved in our favor, you agree to reimburse our expenses, including but not limited to attorney fees, staff time; expert witness fees, and other costs of collection or litigation. 5.6 The law of the state in which our servicing office is located will govern all ,disputes. Each of us waives trial by jury. No employee acting within the scope of employment shall have individual liability for his or her acts or omissions, and you agree not make a claim against individual employees. Section 6: General Indemnification 6.1 We will indemnify and hold you harmless from and against demands, damages, and expenses to the comparative extent they are caused by our negligent acts or omissions or those negligent acts or omissions of persons for whom we are legally responsible. You will indemnify and hold us harmless from and against demands, damages, and expenses to the comparative extent they are caused by your negligent acts or omissions or those negligent acts or omissions of persons for whom you are legally responsible. 6.2 To the extent it may be necessary to indemnify either of us under Section 6.1, you and we expressly waive, in favor of the other only, any inununity or exemption from liability that exists under any worker compensation law. 6.3 You agree to indemnify us against losses and costs arising out of claims of patent or copyright infringement as to any process or system that is specified or selected by you or by others on your behalf Section 7: Miscellaneous Provisions 7.1 We will provide a certificate of insurance to you upon request. Any claim as an Additional Insured shall be limited to losses caused by our sole negligence. 7.2 This Agreement is our entire agreement. It supersedes prior agreements. Tt may be modified only in a w1iting, making specific reference to the provision modified. 7.3 Neither of us will assign or transfer any interest, any claim, any cause of action, or any right against the other. Neither of us will assign or otherwise transfer or encumber any proceeds or expected proceeds or compensation from the project or project cla'in1s to any third person, whether directly or as collateral or otherwise. 7.4 Our Agreement may be terminated early only in writing. We will receive an equitable adjustment of our compensation in the event of early termination. Page 2 of2 GC STAFF REPORT Agenda Item : 7k . Council Meeting: January 26, 2023 Prepared By: Jessica Beise Topic: MNDOT Agency Agreement Action Required: Approval Summary: MNDOT has requested that the City enter into an agency agreement as they are looking to utilize Federal funds for road construction projects. Financial/Bu dget: N/A Options: 1. Adopt Resolution 2023-08 Adopting Agency Agreement. 2. Decline to adopt Resolution 2023-08 Adopting Agency Agreement. Council Action: Consider a motion to adopt Resolution 2023-08 Adopting Agency Agreement. Attachments: 1. Resolution 2023-08 Adopting Agency Agreement 2. Agency Agreement 1502123 City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-08 Page 1 of 2 Motion By: Seconded By: A RESOLUTION APPROVING AGENCY AGREEMENT BE IT RESOLVED, that pursuant to Minnesota Stat. Sec. 161.36, the Commissioner of Transportation be appointed as Agent of the local agency to accept as its agent, federal aid funds which may be made available for eligible transportation related projects. BE IT FURTHER RESOLVED, the Mayor and the City Administrator are hereby authorized and directed for and on behalf of the local agency to execute and enter into an agreement with the Commissioner of Transportation prescribing the terms and conditions of said federal aid participation as set forth and contained in “Minnesota Department of Transportation Agency Agreement No. 1052123“, a copy of which said agreement was before the City Council/County Board and which is made a part hereof by reference. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee – Mayor ATTEST: ____________________________________ City Seal Michelle Fredrick – City Clerk MnDOT Contract No. 1052123 Updated November 7, 2022 1 STATE OF MINNESOTA AGENCY AGREEMENT for FEDERAL PARTICIPATION IN CONSTRUCTION This Agreement is entered into by and between City of Corcoran (“Local Government”) and the State of Minnesota acting through its Commissioner of Transportation (“MnDOT”). RECITALS 1. Pursuant to Minnesota Statutes Section 161.36, the Local Government desires MnDOT to act as the Local Government’s agent in accepting federal funds on the Local Government’s behalf for the construction, improvement, or enhancement of transportation financed either in whole or in part by Federal Highway Administration (“FHWA”) federal funds, hereinafter referred to as the “Project(s)”; and 2. This Agreement is intended to cover all federal aid projects initiated by the Local Government and therefore has no specific State Project number associated with it, and 2.1. The Assistance Listing Number (ALN) is 20.205, 20.224, 20.933 or another Department of Transportation ALN as listed on SAM.gov and 2.2. This project is for construction, not research and development. 2.3. MnDOT requires that the terms and conditions of this agency be set forth in an agreement. AGREEMENT TERMS 1. Term of Agreement; Prior Agreement 1.1. Effective Date. This Agreement will be effective on the date that MnDOT obtains all required signatures under Minn. Stat. §16C.05, Subd. 2. This Agreement will remain effective until it is superseded or terminated pursuant to section 14. 2. Local Government’s Duties 2.1. Designation. The Local Government designates MnDOT to act as its agent in accepting federal funds on its behalf made available for the Project(s). Details on the required processes and procedures are available on the State Aid Website. 2.2. Staffing. 2.2.1. The Local Government will furnish and assign a publicly employed and licensed engineer, (“Project Engineer"), to be in responsible charge of the Project(s) and to supervise and direct the work to be performed under any construction contract let for the Project(s). In the alternative, where the Local Government elects to use a private consultant for construction engineering services, the Local Government will provide a qualified, full‐time public employee of the Local Government to be in responsible charge of the Project(s). The services of the Local Government to be performed hereunder may not be assigned, sublet, or transferred unless the Local Government is notified in writing by MnDOT that such action is permitted under 23 CFR 1.33 and 23 CFR 635.105 and state law. This written consent will in no way relieve the Local Government from its primary responsibility for performance of the work. MnDOT Contract No. 1052123 2 2.2.2. During the progress of the work on the Project(s), the Local Government authorizes its Project Engineer to request in writing specific engineering and/or technical services from MnDOT, pursuant to Minnesota Statutes Section 161.39. Such services may be covered by other technical service agreements. If MnDOT furnishes the services requested, and if MnDOT requests reimbursement, then the Local Government will promptly pay MnDOT to reimburse the state trunk highway fund for the full cost and expense of furnishing such services. The costs and expenses will include the current MnDOT labor additives and overhead rates, subject to adjustment based on actual direct costs that have been verified by audit. Provision of such services will not be deemed to make MnDOT a principal or co‐ principal with respect to the Project(s). 2.3. Pre‐letting. The Local Government will prepare construction contracts in accordance with Minnesota law and applicable Federal laws and regulations. 2.3.1. The Local Government will solicit bids after obtaining written notification from MnDOT that the FHWA has authorized the Project(s). Any Project(s) advertised prior to authorization without permission will not be eligible for federal reimbursement. 2.3.2. The Local Government will prepare the Proposal for Highway Construction for the construction contract, which will include all federal‐aid provisions supplied by MnDOT. 2.3.3. The Local Government will prepare and publish the bid solicitation for the Project(s) as required by state and federal laws. The Local Government will include in the solicitation the required language for federal‐aid construction contracts as supplied by MnDOT. The solicitation will state where the proposals, plans, and specifications are available for the inspection of prospective bidders and where the Local Government will receive the sealed bids. 2.3.4. The Local Government may not include other work in the construction contract for the authorized Project(s) without obtaining prior notification from MnDOT that such work is allowed by FHWA. Failure to obtain such notification may result in the loss of some or all of the federal funds for the Project(s). All work included in a federal contract is subject to the same federal requirements as the federal project. 2.3.5. The Local Government will prepare and sell the plan and proposal packages and prepare and distribute any addenda, if needed. 2.3.6. The Local Government will receive and open bids. 2.3.7. After the bids are opened, the Local Government will consider the bids and will award the bid to the lowest responsible bidder or reject all bids. If the construction contract contains a goal for Disadvantaged Business Enterprises (DBEs), the Local Government will not award the bid until it has received certification of the Disadvantaged Business Enterprise participation from the MnDOT Office of Civil Rights. 2.3.8. The Local Government must disclose in writing any potential conflict of interest to the Federal awarding agency or MnDOT in accordance with applicable FHWA policy. 2.4. Contract Administration. 2.4.1. The Local Government will prepare and execute a construction contract with the lowest responsible bidder, hereinafter referred to as the “Contractor,” in accordance with the special provisions and the latest edition of MnDOT’s Standard Specifications for Construction when the contract is awarded and all amendments thereto. All contracts between the Local Government and third parties or subcontractors must contain all applicable provisions of this Agreement, including the applicable federal contract clauses, which are identified in Appendix II of 2 CFR 200, Uniform Administrative MnDOT Contract No. 1052123 3 Requirements, Cost Principles and Audit Requirements for Federal Awards, and as identified in Section 18 of this Agreement. 2.4.2. The Project(s) will be constructed in accordance with the plans, special provisions, and standard specifications of each Project. The standard specifications will be the latest edition of MnDOT Standard Specifications for Highway Construction and all amendments thereto. The plans, special provisions, and standard specifications will be on file at the Local Government Engineer’s Office. The plans, special provisions, and specifications are incorporated into this Agreement by reference as though fully set forth herein. 2.4.3. The Local Government will furnish the personnel, services, supplies, and equipment necessary to properly supervise, inspect, and document the work for the Project(s). The services of the Local Government to be performed hereunder may not be assigned, sublet, or transferred unless the Local Government is notified in writing by MnDOT that such action is permitted under 23 CFR 1.33 and 23 CFR 635.105 and state law. This written consent will in no way relieve the Local Government from its primary responsibility for performance of the work. 2.4.4. The Local Government will document quantities in accordance with the guidelines set forth in the Construction Section of the Electronic State Aid Manual that are in effect at the time the work was performed. 2.4.5. The Local Government will test materials in accordance with the Schedule of Materials Control in effect at the time each Project was let. The Local Government will notify MnDOT when work is in progress on the Project(s) that requires observation by the Independent Assurance Inspector, as required by the Independent Assurance Schedule. 2.4.6. The Local Government may make changes in the plans or the character of the work, as may be necessary to complete the Project(s), and may enter into Change Order(s) with the Contractor. The Local Government will not be reimbursed for any costs of any work performed under a change order unless MnDOT has notified the Local Government that the subject work is eligible for federal funds and sufficient federal funds are available. 2.4.7. The Local Government will request approval from MnDOT for all costs in excess of the amount of federal funds previously approved for the Project(s) prior to incurring such costs. Failure to obtain such approval may result in such costs being disallowed for reimbursement. 2.4.8. The Local Government will prepare reports, keep records, and perform work so as to meet federal requirements and to enable MnDOT to collect the federal aid sought by the Local Government. Required reports are listed in the MnDOT State Aid Manual, Delegated Contract Process Checklist, available from MnDOT’s authorized representative. The Local Government will retain all records and reports and allow MnDOT or the FHWA access to such records and reports for six years. 2.4.9. Upon completion of the Project(s), the Project Engineer will determine whether the work will be accepted. 2.5. Limitations. 2.5.1. The Local Government will comply with all applicable Federal, State, and local laws, ordinances, and regulations. 2.5.2. Nondiscrimination. It is the policy of the Federal Highway Administration and the State of Minnesota that no person in the United States will, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance (42 U.S.C. 2000d). Through expansion of the mandate for nondiscrimination in Title VI and through parallel legislation, the proscribed bases of discrimination MnDOT Contract No. 1052123 4 include race, color, sex, national origin, age, and disability. In addition, the Title VI program has been extended to cover all programs, activities and services of an entity receiving Federal financial assistance, whether such programs and activities are Federally assisted or not. Even in the absence of prior discriminatory practice or usage, a recipient in administering a program or activity to which this part applies is expected to take affirmative action to assure that no person is excluded from participation in, or is denied the benefits of, the program or activity on the grounds of race, color, national origin, sex, age, or disability. It is the responsibility of the Local Government to carry out the above requirements. 2.5.3. Utilities. The Local Government will treat all public, private or cooperatively owned utility facilities which directly or indirectly serve the public and which occupy highway rights of way in conformance with 23 CFR 645 “Utilities”, which is incorporated herein by reference. 2.6. Maintenance. The Local Government assumes full responsibility for the operation and maintenance of any facility constructed or improved under this Agreement. 3. MnDOT’s Duties 3.1. Acceptance. MnDOT accepts designation as Agent of the Local Government for the receipt and disbursement of federal funds and will act in accordance herewith. 3.2. Project Activities. 3.2.1. MnDOT will make the necessary requests to the FHWA for authorization to use federal funds for the Project(s) and for reimbursement of eligible costs pursuant to the terms of this Agreement. 3.2.2. MnDOT will provide to the Local Government copies of the required Federal‐aid clauses to be included in the bid solicitation and will provide the required Federal‐aid provisions to be included in the Proposal for Highway Construction. 3.2.3. MnDOT will review and certify the DBE participation and notify the Local Government when certification is complete. If certification of DBE participation (or good faith efforts to achieve such participation) cannot be obtained, then Local Government must decide whether to proceed with awarding the contract. Failure to obtain such certification will result in the Project becoming ineligible for federal assistance, and the Local Government must make up any shortfall. 3.2.4. MnDOT will provide the required labor postings. 3.3. Authority. MnDOT may withhold federal funds, where MnDOT or the FHWA determines that the Project(s) was not completed in compliance with federal requirements. 3.4. Inspection. MnDOT, the FHWA, or duly authorized representatives of the state and federal government will have the right to audit, evaluate and monitor the work performed under this Agreement. The Local Government will make all books, records, and documents pertaining to the work hereunder available for a minimum of six years following the closing of the construction contract. 4. Time 4.1. The Local Government must comply with all time requirements described in this Agreement. In the performance of this Agreement, time is of the essence. 4.2. The period of performance is defined as beginning on the date of federal authorization and ending on the date defined in the federal financial system or federal agreement (“end date”). No work completed after the end date will be eligible for federal funding. Local Government must submit all contract close out paperwork to MnDOT at least twenty‐four months prior to the end date. 5. Payment MnDOT Contract No. 1052123 5 5.1. Cost. The entire cost of the Project(s) is to be paid from federal funds made available by the FHWA and by other funds provided by the Local Government. The Local Government will pay any part of the cost or expense of the Project(s) that is not paid by federal funds. MnDOT will receive the federal funds to be paid by the FHWA for the Project(s), pursuant to Minnesota Statutes § 161.36, Subdivision 2. MnDOT will reimburse the Local Government, from said federal funds made available to each Project, for each partial payment request, subject to the availability and limits of those funds. 5.2. Indirect Cost Rate Proposal/Cost Allocation Plan. If the Local Government seeks reimbursement for indirect costs and has submitted to MnDOT an indirect cost rate proposal or a cost allocation plan, the rate proposed will be used on a provisional basis. At any time during the period of performance or the final audit of a Project, MnDOT may audit and adjust the indirect cost rate according to the cost principles in 2 CFR Part 200. MnDOT may adjust associated reimbursements accordingly. 5.3. Reimbursement. The Local Government will prepare partial estimates in accordance with the terms of the construction contract for the Project(s). The Project Engineer will certify each partial estimate. Following certification of the partial estimate, the Local Government will make partial payments to the Contractor in accordance with the terms of the construction contract for the Project(s). 5.3.1. Following certification of the partial estimate, the Local Government may request reimbursement for costs eligible for federal funds. The Local Government’s request will be made to MnDOT and will include a copy of the certified partial estimate. 5.3.2. Upon completion of the Project(s), the Local Government will prepare a final estimate in accordance with the terms of the construction contract for the Project(s). The Project Engineer will certify the final estimate. Following certification of the final estimate, the Local Government will make the final payment to the Contractor in accordance with the terms of the construction contract for the Project(s). 5.3.3. Following certification of the final estimate, the Local Government may request reimbursement for costs eligible for federal funds. The Local Government’s request will be made to MnDOT and will include a copy of the certified final estimate along with the required records. 5.3.4. Upon completion of the Project(s), MnDOT will perform a final inspection and verify the federal and state eligibility of all payment requests. If the Project is found to have been completed in accordance with the plans and specifications, MnDOT will promptly release any remaining federal funds due the Local Government for the Project(s). If MnDOT finds that the Local Government has been overpaid, the Local Government must promptly return any excess funds. 5.3.5. In the event MnDOT does not obtain funding from the Minnesota Legislature or other funding source, or funding cannot be continued at a sufficient level to allow for the processing of the federal aid reimbursement requests, the Local Government may continue the work with local funds only, until such time as MnDOT is able to process the federal aid reimbursement requests. 5.4. Matching Funds. Any cost sharing or matching funds required of the Local Government in this Agreement must comply with 2 CFR 200.306. 5.5. Federal Funds. Payments under this Agreement will be made from federal funds. The Local Government is responsible for compliance with all federal requirements imposed on these funds and accepts full financial responsibility for failure to comply with any federal requirements including, but not limited to, 2 CFR Part 200. If, for any reason, the federal government fails to pay part of the cost or expense incurred by the Local Government, or in the event the total amount of federal funds is not available, the Local Government will be responsible for any and all costs or expenses incurred under this Agreement. The Local Government further agrees to pay any and all lawful claims arising out of or incidental to the performance of the work covered by this Agreement in the event the federal government does not pay the same. MnDOT Contract No. 1052123 6 5.6. Closeout. The Local Government must liquidate all obligations incurred under this Agreement for each Project and submit all financial, performance, and other reports as required by the terms of this Agreement and the Federal award at least twenty‐four months prior to the end date of the period of performance for each Project. MnDOT will determine, at its sole discretion, whether a closeout audit is required prior to final payment approval. If a closeout audit is required, final payment will be held until the audit has been completed. Monitoring of any capital assets acquired with funds will continue following project closeout. 6. Conditions of Payment. All services provided by Local Government under this Agreement must be performed to MnDOT’s satisfaction, as determined at the sole discretion of MnDOT’s Authorized Representative, and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Local Government will not receive payment for work found by MnDOT to be unsatisfactory or performed in violation of federal, state, or local law. 7. Authorized Representatives 7.1. MnDOT's Authorized Representative is: Name: Kristine Elwood, or her successor. Title: State Aid Engineer Phone: 651‐366‐4831 Email: Kristine.elwood@state.mn.us MnDOT’s Authorized Representative has the responsibility to monitor Local Government’s performance and the authority to accept the services provided under this Agreement. If the services are satisfactory, MnDOT's Authorized Representative will certify acceptance on each invoice submitted for payment. 7.2. The Local Government’s Authorized Representative is: Name: Jessica Beise or their successor. Title: Corcoran City Administrator Phone: 763‐400‐7029 Email: jbeise@corcoranmn.gov If the Local Government’s Authorized Representative changes at any time during this Agreement, the Local Government will immediately notify MnDOT. 8. Assignment Amendments, Waiver, and Agreement Complete 8.1. Assignment. The Local Government may neither assign nor transfer any rights or obligations under this Agreement without the prior written consent of MnDOT and a fully executed Assignment Agreement, executed and approved by the same parties who executed and approved this Agreement, or their successors in office. 8.2. Amendments. Any amendment to this Agreement must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original agreement, or their successors in office. 8.3. Waiver. If MnDOT fails to enforce any provision of this Agreement, that failure does not waive the provision or MnDOT’s right to subsequently enforce it. 8.4. Agreement Complete. This Agreement contains all negotiations and agreements between MnDOT and the Local Government. No other understanding regarding this Agreement, whether written or oral, may be used to bind either party. MnDOT Contract No. 1052123 7 8.5. Severability. If any provision of this Agreement, or the application thereof, is found to be invalid or unenforceable to any extent, the remainder of the Agreement, including all material provisions and the application of such provisions, will not be affected and will be enforceable to the greatest extent permitted by the law. 8.6. Electronic Records and Signatures. The parties agree to contract by electronic means. This includes using electronic signatures and converting original documents to electronic records. 8.7. Certification. By signing this Agreement, the Local Government certifies that it is not suspended or debarred from receiving federal or state awards. 9. Liability and Claims 9.1. Tort Liability. Each party is responsible for its own acts and omissions and the results thereof to the extent authorized by law and will not be responsible for the acts and omissions of any others and the results thereof. The Minnesota Tort Claims Act, Minnesota Statutes Section 3.736, governs MnDOT liability. 9.2. Claims. The Local Government acknowledges that MnDOT is acting only as the Local Government’s agent for acceptance and disbursement of federal funds, and not as a principal or co‐principal with respect to the Project. The Local Government will pay any and all lawful claims arising out of or incidental to the Project including, without limitation, claims related to contractor selection (including the solicitation, evaluation, and acceptance or rejection of bids or proposals), acts or omissions in performing the Project work, and any ultra vires acts. To the extent permitted by law, the Local Government will indemnify, defend (to the extent permitted by the Minnesota Attorney General), and hold MnDOT harmless from any claims or costs arising out of or incidental to the Project(s), including reasonable attorney fees incurred by MnDOT. The Local Government’s indemnification obligation extends to any actions related to the certification of DBE participation, even if such actions are recommended by MnDOT. 10. Audits 10.1. Under Minn. Stat. § 16C.05, Subd.5, the books, records, documents, and accounting procedures and practices of the Local Government, or any other party relevant to this Agreement or transaction, are subject to examination by MnDOT and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this Agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and program retention requirements, whichever is later. The Local Government will take timely and appropriate action on all deficiencies identified by an audit. 10.2. All requests for reimbursement are subject to audit, at MnDOT’s discretion. The cost principles outlined in 2 CFR 200.400‐.476 will be used to determine whether costs are eligible for reimbursement under this Agreement. 10.3. If Local Government expends $750,000 or more in Federal Funds during the Local Government’s fiscal year, the Local Government must have a single audit or program specific audit conducted in accordance with 2 CFR Part 200. 11. Government Data Practices. The Local Government and MnDOT must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by MnDOT under this Agreement, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Local Government under this Agreement. The civil remedies of Minn. Stat. §13.08 apply to the release of the data referred to in this clause by either the Local Government or MnDOT. 12. Workers Compensation. The Local Government certifies that it is in compliance with Minn. Stat. §176.181, Subd. 2, pertaining to workers’ compensation insurance coverage. The Local Government’s employees and agents will not be considered MnDOT employees. Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission MnDOT Contract No. 1052123 8 on the part of these employees are in no way MnDOT’s obligation or responsibility. 13. Governing Law, Jurisdiction, and Venue. Minnesota law, without regard to its choice‐of‐law provisions, governs this Agreement. Venue for all legal proceedings out of this Agreement, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 14. Termination; Suspension 14.1. Termination by MnDOT. MnDOT may terminate this Agreement with or without cause, upon 30 days written notice to the Local Government. Upon termination, the Local Government will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed. 14.2. Termination for Cause. MnDOT may immediately terminate this Agreement if MnDOT finds that there has been a failure to comply with the provisions of this Agreement, that reasonable progress has not been made, that fraudulent or wasteful activity has occurred, that the Local Government has been convicted of a criminal offense relating to a state agreement, or that the purposes for which the funds were granted have not been or will not be fulfilled. MnDOT may take action to protect the interests of MnDOT of Minnesota, including the refusal to disburse additional funds and/or requiring the return of all or part of the funds already disbursed. 14.3. Termination for Insufficient Funding. MnDOT may immediately terminate this Agreement if: 14.3.1. It does not obtain funding from the Minnesota Legislature; or 14.3.2. If funding cannot be continued at a level sufficient to allow for the payment of the services covered here. Termination must be by written or fax notice to the Local Government. MnDOT is not obligated to pay for any services that are provided after notice and effective date of termination. However, the Local Government will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed to the extent that funds are available. MnDOT will not be assessed any penalty if the Agreement is terminated because of the decision of the Minnesota Legislature, or other funding source, not to appropriate funds. MnDOT will provide the Local Government notice of the lack of funding within a reasonable time of MnDOT’s receiving that notice. 14.4. Suspension. MnDOT may immediately suspend this Agreement in the event of a total or partial government shutdown due to the failure to have an approved budget by the legal deadline. Work performed by the Local Government during a period of suspension will be deemed unauthorized and undertaken at risk of non‐payment. 15. Data Disclosure. Under Minn. Stat. § 270C.65, Subd. 3, and other applicable law, the Local Government consents to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax identification number, already provided to MnDOT, to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could result in action requiring the Local Government to file state tax returns and pay delinquent state tax liabilities, if any. 16. Fund Use Prohibited. The Local Government will not utilize any funds received pursuant to this Agreement to compensate, either directly or indirectly, any contractor, corporation, partnership, or business, however organized, which is disqualified or debarred from entering into or receiving a State contract. This restriction applies regardless of whether the disqualified or debarred party acts in the capacity of a general contractor, a subcontractor, or as an equipment or material supplier. This restriction does not prevent the Local Government from utilizing these funds to pay any party who might be disqualified or debarred after the Local Government’s contract award on this Project. 17. Discrimination Prohibited by Minnesota Statutes §181.59. The Local Government will comply with the provisions of Minnesota Statutes §181.59 which requires that every contract for or on behalf of the State of Minnesota, or MnDOT Contract No. 1052123 9 any county, city, town, township, school, school district or any other district in the state, for materials, supplies or construction will contain provisions by which Contractor agrees: 1) That, in the hiring of common or skilled labor for the performance of any work under any contract, or any subcontract, no Contractor, material supplier or vendor, will, by reason of race, creed or color, discriminate against the person or persons who are citizens of the United States or resident aliens who are qualified and available to perform the work to which the employment relates; 2) That no Contractor, material supplier, or vendor, will, in any manner, discriminate against, or intimidate, or prevent the employment of any person or persons identified in clause 1 of this section, or on being hired, prevent or conspire to prevent, the person or persons from the performance of work under any contract on account of race, creed or color; 3) That a violation of this section is a misdemeanor; and 4) That this contract may be canceled or terminated by the state of Minnesota, or any county, city, town, township, school, school district or any other person authorized to contracts for employment, and all money due, or to become due under the contract, may be forfeited for a second or any subsequent violation of the terms or conditions of this Agreement. 18. Federal Contract Clauses 18.1. Appendix II 2 CFR Part 200. The Local Government agrees to comply with the following federal requirements as identified in 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, and agrees to pass through these requirements to its subcontractors and third‐party contractors, as applicable. In addition, the Local Government shall have the same meaning as “Contractor” in the federal requirements listed below. 18.1.1. Contracts for more than the simplified acquisition threshold, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. 18.1.2. All contracts in excess of $10,000 must address termination for cause and for convenience by the non‐Federal entity including the manner by which it will be effected and the basis for settlement. 18.1.3. Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 CFR Part 60‐1.3 must include the equal opportunity clause provided under 41 CFR 60‐1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 CFR Part, 1964‐1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” 18.1.4. Davis‐Bacon Act, as amended (40 U.S.C. 3141‐3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non‐Federal entities must include a provision for compliance with the Davis‐Bacon Act (40 U.S.C. 3141‐3144, and 3146‐3148) as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non‐Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non‐Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti‐Kickback” Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR Part 3, “Contractors and Subcontractors on Public MnDOT Contract No. 1052123 10 Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non‐Federal entity must report all suspected or reported violations to the Federal awarding agency. 18.1.5. Contract Work Hours and Safety Standards Act (40 U.S.C. 3701‐3708). Where applicable, all contracts awarded by the non‐Federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. 18.1.6. Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of “funding agreement” under 37 CFR § 401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. 18.1.7. Clean Air Act (42 U.S.C. 7401‐7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251‐ 1387), as amended ‐ Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non‐Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401‐7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251‐1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). 18.1.8. Debarment and Suspension (Executive Orders 12549 and 12689) ‐ A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. 18.1.9. Byrd Anti‐Lobbying Amendment (31 U.S.C. 1352) ‐ Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non‐Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non‐Federal award. MnDOT Contract No. 1052123 11 18.1.10. Local Government will comply with 2 CFR § 200.323. 18.1.11. Local Government will comply with 2 CFR § 200.216. 18.1.12. Local Government will comply with 2 CFR § 200.322. 18.2. Drug‐Free Workplace. The Local Government will comply with the Drug‐Free Workplace requirements under subpart B of 49 C.F.R. Part 32. 18.3. Title VI/Non‐discrimination Assurances. The Local Government hereby agrees that, as a condition of receiving any Federal financial assistance under this Agreement, it will comply with Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. § 2000d), related nondiscrimination statutes (i.e., 23 U.S.C. § 324, Section 504 of the Rehabilitation Act of 1973 as amended, and the Age Discrimination Act of 1975), and applicable regulatory requirements to the end that no person in the United States shall, on the grounds of race, color, national origin, sex, disability, or age be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under any program or activity for which the Local Government receives Federal financial assistance. The Local Government hereby agrees to comply with all applicable US DOT Standard Title VI/Non‐ Discrimination Assurances contained in DOT Order No. 1050.2A, and in particular Appendices A and E, which can be found at: https://edocs‐ public.dot.state.mn.us/edocs_public/DMResultSet/download?docId=11149035. If federal funds are included in any contract, the Local Government will ensure the appendices and solicitation language within the assurances are inserted into contracts as required. State may conduct a review of the Local Government’s compliance with this provision. The Local Government must cooperate with State throughout the review process by supplying all requested information and documentation to State, making Local Government staff and officials available for meetings as requested, and correcting any areas of non‐ compliance as determined by State. 18.4. Buy America. The Local Government must comply with the Buy America domestic preferences contained in the Build America, Buy America Act (Sections 70901‐52 of the Infrastructure Investment and Jobs Act, Public Law 117‐58) and as implemented by US DOT operating agencies. 18.5. Federal Funding Accountability and Transparency Act (FFATA) 18.5.1. This Agreement requires the Local Government to provide supplies and/or services that are funded in whole or in part by federal funds that are subject to FFATA. The Local Government is responsible for ensuring that all applicable requirements, including but not limited to those set forth herein, of FFATA are met and that the Local Government provides information to the MnDOT as required. a. Reporting of Total Compensation of the Local Government’s Executives. b. The Local Government shall report the names and total compensation of each of its five most highly compensated executives for the Local Government’s preceding completed fiscal year, if in the Local Government’s preceding fiscal year it received: i. 80 percent or more of the Local Government’s annual gross revenues from Federal procurement contracts and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR 170.320 (and subawards); and ii. $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and iii. The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities MnDOT Contract No. 1052123 12 Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at https://www.sec.gov/answers/execomp.htm). Executive means officers, managing partners, or any other employees in management positions. c. Total compensation means the cash and noncash dollar value earned by the executive during the Local Government’s preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)): i. Salary and bonus. ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments. iii. Earnings for services under non‐equity incentive plans. This does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees. iv. Change in pension value. This is the change in present value of defined benefit and actuarial pension plans. v. Above‐market earnings on deferred compensation which is not tax qualified. 18.5.2. Other compensation, if the aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000. 18.5.3. The Local Government must report executive total compensation described above to the MnDOT by the end of the month during which this Agreement is awarded. 18.5.4. The Local Government will obtain a Unique Entity Identifier number and maintain this number for the term of this Agreement. This number shall be provided to MnDOT on the plan review checklist submitted with the plans for each Project. 18.5.5. The Local Government’s failure to comply with the above requirements is a material breach of this Agreement for which the MnDOT may terminate this Agreement for cause. The MnDOT will not be obligated to pay any outstanding invoice received from the Local Government unless and until the Local Government is in full compliance with the above requirements. [THE REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK.] MnDOT Contract No. 1052123 13 City of Corcoran Local Government certifies that the appropriate person(s) have executed the contract on behalf of the Local Government as required by applicable articles, bylaws, resolutions or ordinances. By: Title: Date: By: Title: Date: DEPARTMENT OF TRANSPORTATION By: Title: Date: COMMISSIONER OF ADMINISTRATION By: Date: STAFF REPORT Agenda Item : 7l . Council Meeting: January 26, 2023 Prepared By : Maggie Ung Topic : 2022 Financial Management Plan Action Required: Accept Plan Su mm ar y : Staff is recommending Council accept the last version presented of the 2022 Financial Management Plan as the final document for the year. The document is for planning purposes only and is a guidance document for future planning of the City. Staff will begin working with Northland Securities on a 2023 Financial Management Plan as new information is received on the water supply planning process and other needed changes. Fi n anc i al/B udg et: No impact on the budget or financials. The 2022 Financial Management Plan is a guiding document for the Council to use when making financial decisions. Op t i on s : 1.Accept the 2022 Financial Management Plan as presented. 2.Send back to staff for further review. Rec o mm endat i o n Accept the 2022 Financial Management Plan as presented. Co un c i l A c t i on: Consider a motion to accept the 2022 Financial Management Plan as presented. A tt ac h m ent s : 1.2022 Financial Management Plan 2022 Financial Management Plan As of November 3, 2022 Northland Securities, Inc. 150 South Fifth Street, Suite 3300 Minneapolis, MN 55402 (800) 851-2920 Member FINRA and SIPC Registered with SEC and MSRB i CONTENTS Letter of Transmittal Introduction and Summary 1Introduction and Summary ............................................................................................................1Study Approach ..................................................................................................................................1Revenue Sufficiency ...........................................................................................................................2Rate Calculations ................................................................................................................................3City Tax Rate .................................................................................................................................3Utility Rates ..................................................................................................................................5Organization of the Plan .................................................................................................................6TABLE 1 - Property Tax Levy and Tax Rate ................................................................................7TABLE 2 - Projected City Taxes Payable for Example Properties ......................................8CHART 1 - Annual Change in Property Tax Levy and Rate .................................................9CHART 2 - City Tax Capacity (Tax Base) ......................................................................................9CHART 3 - Fund Balance ...............................................................................................................10CHART 4 - Cash Balances .............................................................................................................10CHART 5 - Water Fund Cash Balances ....................................................................................11CHART 6 - Sewer Fund Cash Balances ....................................................................................11CHART 7 - CIP Use of Funds .......................................................................................................12CHART 8 - CIP Source of Funds .................................................................................................12 Background 13Summary .............................................................................................................................................13TABLE 3 - Customer Units and Water Volume Sold ...........................................................14CHART 9 - New Construction and Connection to Municipal Utilities .........................17CHART 10 - Acres of Land Platted ............................................................................................17 Capital Improvement Plan and Debt 18Overview of Plan ..............................................................................................................................18Equipment and Vehicles .......................................................................................................18Water Improvements .............................................................................................................18Sewer Improvements .............................................................................................................18Street Improvements .............................................................................................................18Facility and Parks .....................................................................................................................18Bond Terms ........................................................................................................................................20TABLE 4 -Capital Improvement Plan ........................................................................................21TABLE 5 - Debt Service ..................................................................................................................23 Contents ii Contents TABLE 6 - Bonds Outstanding ....................................................................................................24CHART 11 - CIP Use of Funds .....................................................................................................25CHART 12 - CIP Source of Funds ...............................................................................................25CHART 13 - Annual Debt Service ..............................................................................................26CHART 14 - Bonds Outstanding ................................................................................................26CHART 15 - Debt Outstanding by Type ..................................................................................27CHART 16 - Bonds Outstanding Existing and New ............................................................27 Financial Plans 28Background ........................................................................................................................................28Summary of Key Factors and Assumptions ...........................................................................28Total Governmental Funds Combined ....................................................................................30CHART 17 - Total Sources and Uses of Funds ................................................................31CHART 18 - Cash Balance and Fund Balance .................................................................31TABLE 7 - Finance Plan ............................................................................................................32General Fund Financial Plan ........................................................................................................33Figure 2 - Tax Levy Revenue ..................................................................................................33CHART 19 - Cash Balance and Fund Balance .................................................................35CHART 20 - Source and Use of Funds ...............................................................................35CHART 21 - % Change in Source and Use of Funds ....................................................35CHART 22 - Use of Funds by purpose ..............................................................................35TABLE 8 - Finance Plan ............................................................................................................36Debt Service Funds Financial Plan ............................................................................................37CHART 23 - Cash Balance and Fund Balance .................................................................38CHART 24 - Source and Use of Funds ...............................................................................38CHART 25 - % Change in Source and Use of Funds ....................................................38CHART 26 - Use of Funds by purpose ..............................................................................38TABLE 9 - Finance Plan ............................................................................................................39Special Revenue Funds Financial Plan .....................................................................................40TABLE 10 - Finance Plan .........................................................................................................41Capital Projects Funds Financial Plan ......................................................................................42TABLE 11 - Finance Plan .........................................................................................................43Capital Equipment Fund Financial Plan ..................................................................................44TABLE 12 - Finance Plan .........................................................................................................45Facilities Fund....................................................................................................................................46TABLE 13 - Finance Plan .........................................................................................................47Water Fund Financial Plan ............................................................................................................48CHART 27 - Cash Balance by Purpose ..............................................................................50CHART 28 - Ending Unrestricted Net Assets ..................................................................50CHART 29 - Revenue and Expense .....................................................................................50CHART 30 - Customers and Volume ..................................................................................50 iii TABLE 14 - Finance Plan .........................................................................................................51TABLE 15 - Projected Water Revenues ..............................................................................53TABLE 16 - Cash Balances ......................................................................................................56Sewer Fund Financial Plan ...........................................................................................................57CHART 31 - Cash Balance by Purpose ..............................................................................59CHART 32 - Ending Unrestricted Net Assets ..................................................................59CHART 33 - Revenue and Expense .....................................................................................59CHART 34 - Customers and Volume ..................................................................................59TABLE 17 - Finance Plan .........................................................................................................60TABLE 18 - Projected Water Revenues ..............................................................................62TABLE 19 - Cash Balances ......................................................................................................64 Appendix 65TABLE A - Utility Fee Schedule ...................................................................................................65TABLE B - Property Tax Levy Planned for Debt Service .....................................................68TABLE C - Planned Staff Additions ............................................................................................69 iv 150 South Fifth Street, Suite 3300, Minneapolis, MN 55402 Main: (612) 851-5900 / Direct: (612) 851-4964 / Email: tomdal@northlandsecurities.com Member FINRA and SIPC | Registered with SEC and MSRB November 3, 2022 Jessica Beise City Administrator City of Corcoran, MN 8200 Co. Rd. 116 Corcoran, MN 55340 RE: 2022 Financial Management Plan Dear Jessica: Northland Securities is pleased to present the City of Corcoran with this 2022 Financial Management Plan (the “Plan”). In the months ahead, as you have requested, Northland is prepared to work with city staff to update assumptions within the Plan to reflect activity that is anticipated in the coming months may impact the assumptions in the Plan. We appreciate the continued opportunity to provide service to the City. Sincerely, NORTHLAND SECURITIES, INC. Tammy Omdal Managing Director 1 Introduction and SummaryINTRODUCTION AND SUMMARY The Financial Management Plan (the “Plan”) is intend- ed to serve as a guide for the on-going financial man- agement of the City of Corcoran (the “City”). The Plan was first prepared in year 2012 and has been updated annually. The Plan contains proposed strategies and identifica- tion of key factors and objectives to monitor with re- spect to future financial performance. Information is included on estimated future property tax levies and municipal fees and charges necessary to fund planned city services, capital improvement plans, and debt ser- vice. The objectives of the study for the Plan are as follows: • Revenue Sufficiency - Develop and populate a forecasting model that will determine the level of revenue needed to satisfy general government and utility enterprises operations, capital improve- ments, and debt service while maintaining ade- quate reserves for future service and capital needs of the City. • Rate Calculations - Model projected future tax ca- pacity tax rates for the City and proposed rates and structure for billing water and sewer services (the “Utilities”) to meet defined revenue sufficiency objectives. The Plan includes anticipated capital improvements for years 2023-2027 (the “CIP”). Estimates were pre- pared by the City as to cost and timing of projects. While the specific timing of future improvements can sometimes be uncertain, awareness of the funding de- mands for projects is important when considering an- nual tax levies, rates for fees and charges, and reserves for future capital. Future development will provide increased revenue from charge for services and tax revenue. This will in- clude increased revenue to the Utilities, with revenue from both development fees and usage fees. It will also provide additional property value and potential for property tax revenue to pay for services. The rate of future development and addition of tax- payers and customers of the Utilities has been and continues to be a significant variable for the Plan. The City should continue to monitor actual development that occurs against the anticipated rate of develop- ment assumed in the Plan. The rate of development will impact the projected revenues and timing includ- ed in the Plan. Information on projected housing units to be added is included later in the Plan. Study Approach The following steps were taken as part of the study for the Plan: • City provided historical financial data along with current budget plans and capital improvement plans. • City provided the assumptions for future residen- tial units to be constructed and connected to the Utilities. • Information provided by the City was organized, analyzed, and used to support the development of the Plan. 2 Introduction and Summary • The prior year data included in the Plan is recon- ciled with the City’s annual audited financial state- ments. • City staff offered input and feedback on the as- sumptions, different options for levies and rates and desired outcomes for the Plan. • The study did not include a review and compari- son to other cities for tax rates and fees and charg- es. Revenue Sufficiency The Study evaluated the sufficiency of revenues to meet current and projected financial requirements over future years for the various financial “Funds” the City maintains. The Plan determines the tax levies and rates necessary in each year of the projection period to provide revenue sufficiency. In year 2017, Moody’s Investor Service upgraded the City’s rating for general obligations bonds to ‘Aa3’ from ‘A1’. In doing so the rating agency recognized the City’s credit strength and strong financial operations resulting in growing reserves. The maintenance and continued relative growth of reserves through revenue sufficiency remains an important credit factor for the City. The City should continue to actively manage its funds to achieve its policy goals and to maintain sufficient balances within the funds to meet its needs including the need for cash reserves. Governmental Funds The City has an adopted policy to maintain a mini- mum balance in the General Fund equivalent to 35% of annual expenditures. The goal of the Plan is to iden- tify revenue sufficient to meet closer to 50% of annual expenditures, recognizing the need for the City to cash flow its expenditures between the semi-annual tax dis- bursements it receives from the County, among other needs for cash balance. The City evaluates ending fund balances at year-end and makes decisions on the level of funds that is need- ed and appropriate. While the Plan provides for the General Fund to be at the 50% level, the City should continue to consider its fund balance needs annually. The City desires to manage its budget so that growth in net tax capacity from new development will pro- vide revenue sufficiency for the City to maintain an approximate constant tax rate. Achieving a constant city tax rate (equal to the estimat- ed net tax capacity rate to be certified for tax year 2023, for example) will represent a challenge for the City given the significant demands for expanded munciipal services to support the growth that is rapidly occcur- ing within the City. The City will likely need to adjust timing for planned staffing additions (see Appendix, Table C for staffing plans) and transfers from the Gen- eral Fund to the Capital Projects Fund based on actual tax base growth and other needs that may arise in the General Fund. Enterprise Funds For purposes of the Plan, the revenue objective for the Water Fund and the Sewer Fund focused on providing revenue sufficient to achieve projected year-end cash balance to cover the following purposes: • Three-months of operating expense • Following-year debt service payments 3 Introduction and Summary • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and oth- er reserve purposes The graphics and tables that follow in the Introduction and Summary section of the Plan provide a summary of key financial information for the funds. Funding Depreciation for the Utilities The funding of depreciation, or setting aside of funds to replace depreciated infrastructure, is an important element for establishment of sufficient rates for the Utilities. The Study focused on the City’s asset man- agement practices to maintain and expand infrastruc- ture at future estimated costs. Rather than focus on “funding depreciation” it is better to gain a strong understanding of the expected future costs and, maybe more importantly, their timing, and plan for replacement of infrastructure and facilities. Using a planned schedule for capital improvements and the incorporation of those plans into the Study does that. Capital improvement plans combined with financial management targets are critical element that allows for the setting of rates that meet City goals. Financial management targets begin with criteria for evaluating overall financial condition. For instance, do projections show sufficient revenues to cover planned operating and capital improvement expenses? The Utilities must do better than break even, but by how much? The Plan helps to answer these question by allocating projected year-end cash balance to defined purposes. One of the purposes is for planned capital acquisition and reserves for future capital. The Plan provides a second criteria to evaluate reve- nue sufficiency for the Utilities. The Plan sets a target (a floor) to maintain an unrestricted net position in the Water Fund and the Sewer Fund no lower than 50% of the subsequent year’s estimated expenditures. The majority of revenue for municipal utility opera- tions comes from user charges, maintaining an unre- stricted net position that is equal to at least 50% of ex- penditures will help to ensure that sufficient resources are available to fund basic functions between receipts of user charges. The target (or floor) for ending unrestricted net posi- tion is meant to be an equivalent of the target for an unrestricted fund balance for the General Fund. Equity is reported as a fund balance in the General Fund and as a net asset within the Water Fund and the Sewer Fund. Fund balance and net assets are the difference between fund assets and liabilities reflected on the bal- ance sheet or statement of net assets. Rate Calculations The Study focused on preparing projections for future annual tax capacity rates for the City, and reviewing the rates for the fees and charges of the Utilities. The Study did not include a review and analysis of other fees and charges, only the fees for the Utilities. City Tax Rate Future tax levies increases are projected to be neces- sary to fund planned expenditures and to maintain adequate cash balances across all City funds. A summary of the projected City tax levy amounts is shown in the Figure 1 on the next page, along with the corresponding estimated City tax rate. 4 Introduction and Summary Future City Tax Levy is estimated based on assump- tions in the Plan for changes to the City’s tax capacity from growth in the taxable market value of property within the City. The Plan anticipates a significant in- crease in tax capacity (from increasing taxable market value) for tax collection year 2025 from the planned new multi-family development next to city hall, which along with tax base growth from new single family housing units is projected to help the City strive for achieving a constant city tax rate in future years. The key assumptions for the Plan that impact the city tax rate include the following: • Taxable market value within the City is projected to increase by approximately 3.0% annually. Based on recent years this is a conservative estimate. Be- cause the Plan is focused on the long-term, the as- sumption is meant to be conservative. • Fiscal disparities contribution and corresponding distribution of tax revenue are estimated to remain constant (at preliminary Pay 2023 amounts) over the planning period. The actual impact of the met- ro-wide fiscal disparities program varies from year to year. • City will increase the tax levy to support addition- al planned spending in the General Fund related to growth of the community. Details on the specific items, which includes staff positions, is included in the Finance Plan section for the General Fund and in the Appendix. • General fund non-tax revenue is estimated to in- crease by 2.0% and current expenditures by 3.0%. There are no assumed major changes to non-tax revenue. Based on current economic conditions (inflationary pressures) the 3.0% assumption for expenditures is low but the focus of the Plan is long-term. • City estimates it will average approximately 345 new housing units (constructed) annually over the next decade between 2022-2031. The Plan assumes more rapid growth over the near term. For pur- poses of estimating market value of property, the average new home is estimated at $500,000, with valuation inflated 3.0% annually. • The Plan assumes an increase in taxable market val- ue from construction of new commercial property in the City. The increase in taxable market value from commercial property for tax collection year 2023 is from Hennepin County. The City provided the estimate for year 2024 based on approved com- mercial development. For future years, new com- Figure 1. Tax Collection Year City Tax Levy % Change Tax Levy City Tax Rate % Change Tax Rate 2021 Certified $5,045,377 8.3%0.4352 -3.3% 2022 Certified $5,699,429 13.0%0.4319 -0.8% 2023 $7,166,425 25.7%0.4197 -2.8% 2024 $7,913,616 10.4%0.4197 0.0% 2025 $10,451,366 32.1%0.4197 0.0% 2026 $11,321,595 8.3%0.4197 0.0% 2027 $12,183,006 7.6%0.4197 0.0% 5 Introduction and Summary mercial value of $1.0 million per year is assumed. This is intended to be a conservative assumption for planning purposes. • The construction of new multi-family housing units in southeast Corcoran is anticipated at 204 units in 2023 for first taxes payable in year 2025. • For planning purposes, it is assumed the City will issue bonds to finance a new municipal building in 2026 with a preliminary estimated $25 million proj- ect cost. The Plan anticipates that debt service will be paid from taxes (80%), water revenues (10%) and sewer revenues (10%). The final allocation of costs will require further review. The increase to the City’s tax levy beginning in year 2026 is esti- mated at approximately $1.1 million for payment of debt service for the project. The table and graphics that follow provide historical and projected City property tax levies and tax rates along with tax capacity. A detailed break down of the debt service levy by bond series is provided as an Ap- pendix. Utility Rates The City currently has a two-part rate structure for charging fees for water and sewer services, comprised of both a fixed and variable charges. This two-part structure is recommended by generally accepted prac- tices and is a practice followed by most cities within the Twin Cities metropolitan area. This structure re- covers a portion of system costs in a fixed charge, rec- ognizing that the Utilities have certain fixed costs and customer service costs that are incurred year-round. These fixed costs are incurred regardless of the level of water usage. Over the next five years it is projected that approxi- mately 40% of the Water Fund expenses, including depreciation, will be fixed and for the Sewer Fund it is estimated at under 30%. The percentages vary some- what from year to year. Fixed expenses as a percent of total expenses is projected to decrease somewhat over time as the number of customers increase and volume of water usage grows. For usage or metered volume-based rates, based on the results of the study, there are no recommended changes in the structure. As the number of customers increases potential changes to the structure may be needed. The Plan anticipates the City adopts planned increases to rates for water and sewer services as proposed in the Plan. This includes increasing the water and sew- er services fees by 3.0% annually, with the exception of the base charge for water services which assumes a 5.0% annual fee increase (to account for the annual fee increase for the charge from Maple Grove, among other factors). Beginning in 2022, the City adopted a new trunk line availability charge (TLAC) for water treatment and storage. The City now has two availability charges: 1) watermain and raw water TLAC; and 2) a treatment & storage TLAC. The Plan anticipates all TLAC and connectino charges for water and sewer services will adjust by 3.0% annually. Appendix, Table A, includes information on estimated fee amounts by year for water and sewer services 6 Introduction and SummaryOrganization of Plan The Plan is organized into seven sections: 1. Introduction and Summary provides information on the study approach, revenue sufficiency, and rate calculations. 2. Background provides historical and statistical con- text for the Utilities. 3. CIP and Debt provides information on the City’s plans for equipment, facilities, and maintaining and expanding the water and sewer systems. This includes estimates on project costs, timing, and sources of funds. Information on outstanding debt obligation and debt service is included. 4. Financial Plans provides the financial plans (pro forma) for the City funds, including the Water Fund and the Sewer Fund. The financial plans in- clude historical, current, and projected sources and uses of funds and estimated ending cash balances. Financial plans take into account capital improve- ment plans, both existing and planned debt issu- ance, and proposed rates. 5. Appendices provide additional data and graphics. 7 Introduction and SummaryTABLE 1 2021 2022 2023 2024 2025 2026 2027 Property Tax Levy by Payable Year General Fund 4,447,791 5,139,711 6,362,123 6,846,001 8,496,316 8,102,358 8,636,781 Debt Service Equipment 264,259 225,488 470,544 474,586 734,566 923,987 962,522 Debt Service Facilities 333,327 334,231 333,758 593,028 1,220,483 2,295,251 2,583,704 Total Property Tax Levy 5,045,377 5,699,429 7,166,425 7,913,616 10,451,366 11,321,595 12,183,006 Less Fiscal Disparities Distribution 288,761 291,939 312,812 312,812 312,812 312,812 312,812 Net Spread Levy 4,756,616 5,407,490 6,853,613 7,600,804 10,138,554 11,008,783 11,870,194 Tax Capacity (TC) Gross Tax Capacity (TC) Real Property 10,907,850 12,591,754 16,295,139 18,075,452 24,122,083 26,195,556 28,248,018 Gross Tax Capacity (TC) Personal Property 540,846 502,552 627,223 627,223 627,223 627,223 627,223 Total Gross TC 11,448,696 13,094,306 16,922,362 18,702,675 24,749,306 26,822,779 28,875,241 Less Tran Line TC 2,567 2,577 2,579 2,579 2,579 2,579 2,579 Less Fiscal Disparities TC 516,672 571,958 589,855 589,855 589,855 589,855 589,855 Less Tax Increment Financing TC ------- Net Tax Capacity 10,929,457 12,519,771 16,329,928 18,110,241 24,156,872 26,230,345 28,282,807 City Tax Rate 0.43521 0.43192 0.41970 0.4197 0.4197 0.4197 0.4197 Total Property Tax Levy Annual % Change 8.3%13.0%25.7%10.4%32.1%8.3%7.6% Net Tax Capacity Annual % Change 12.4%14.6%30.4%10.9%33.4%8.6%7.8% City Tax Rate Annual % Change -3.3%-0.8%-2.8%0.0%0.0%0.0%0.0% City Tax Rate Annual % Change without Adjustments -3.3%-0.8%-2.8%0.0%0.0%0.0%0.0% ProjectedCertified City of CorcoranSummary of Property Tax Levy, Tax Capacity, and Tax Rate 8 Introduction and SummaryTABLE 2 City of Corcoran Projected City Taxes Payable for Example Properties 2023 2024 2025 2026 2027 10.00%10.00%3.00%3.00%3.00% Residential Example 1 250,000 275,000 302,500 311,575 320,922 330,550 Residential Example 2 500,000 550,000 605,000 623,150 641,845 661,100 Residential Example 3 700,000 770,000 847,000 872,410 898,582 925,540 Residential Example 4 1,000,000 1,100,000 1,210,000 1,246,300 1,283,689 1,322,200 Commercial Example 1 1,000,000 1,100,000 1,210,000 1,246,300 1,283,689 1,322,200 Commercial Example 2 2,000,000 2,200,000 2,420,000 2,492,600 2,567,378 2,644,399 Commercial Example 3 3,000,000 3,300,000 3,630,000 3,738,900 3,851,067 3,966,599 Commercial Example 4 4,000,000 4,400,000 4,840,000 4,985,200 5,134,756 5,288,799 Residential Example 1 1,016 1,102 1,228 1,269 1,312 1,356 Residential Example 2 2,160 2,361 2,649 2,745 2,843 2,944 Residential Example 3 3,239 3,515 3,919 4,052 4,190 4,331 Residential Example 4 4,859 5,246 5,823 6,014 6,210 6,412 Commercial Example 1 8,638 9,233 10,157 10,461 10,775 11,098 Commercial Example 2 17,277 18,467 20,313 20,923 21,550 22,197 Commercial Example 3 25,915 27,700 30,470 31,384 32,326 33,295 Commercial Example 4 34,553 36,933 40,627 41,845 43,101 44,394 Residential Example 1 86 126 42 43 44 Residential Example 2 201 289 95 98 101 Residential Example 3 276 404 133 137 141 Residential Example 4 387 577 190 196 202 Commercial Example 1 595 923 305 314 323 Commercial Example 2 1,190 1,847 609 628 647 Commercial Example 3 1,785 2,770 914 942 970 Commercial Example 4 2,380 3,693 1,219 1,255 1,293 Annual Percent Change in Market Value of Example Properties:Annual Change in Total City Tax Payable $City Tax Payable $Valuation $ 9 Introduction and Summary -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 2020 2021 2022 2023 2024 2025 2026 2027Annual Percent ChangeCHART 1 Property Tax Levy Annual % Change Tax Rate Annual % Change City plans to strive to maintain a relatively constant tax rate from year-to-year $0 $5 $10 $15 $20 $25 $30 2020 2021 2022 2023 2024 2025 2026 2027MillionsCHART 2 Total Tax Capacity New Construction City Total Tax Capacity is projected to increase driven by new construction and projected valuation increases for property Tax capacity is the valuation of property based on market value and class rates on which property taxes are determined 10 Introduction and Summary 0% 10% 20% 30% 40% 50% 60% 70% 2021 2022 2023 2024 2025 2026 2027General Fund -Fund Balance as % of ExpenseCHART 3 Ending Fund Balance for General Fund is projected to continue to meet City policy to maintain a minimum balance in the General Fund equivalent to 35% of annual expenditures $0 $5 $10 $15 $20 $25 $30 $35 2020 2021 2022 2023 2024 2025 2026 2027Ending Cash BalanceMillionsCHART 4 Total Governmental Funds General Fund Enterprise Funds Ending Cash Balances are projected to be at levels sufficient to meet City objectives Cash balances vary due to timing of capital projects and debt service and timing of receipt of funds, including bond proceeds. 11 Introduction and Summary $0 $5 $10 $15 $20 $25 $30 Actual2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Ending Cash BalanceMillionsCHART 5Water Fund Minimum Cash for operating cash flow, following year debt service, pay-go capital Projected Cash Position with Future Rate Adjustments WWaatteerr FFuu nndd eennddiinngg ccaasshh bb aallaannccee ii ss pp rroojjeecc tteedd ttoo iinncc rreeaassee ff rroomm ccoolllleeccttoo nn ooff ddeevveelloopp mmeenntt rreell aatteedd rreevveennuu ee ww hhiicchh wwii llll bbee ssppeenntt oonn ffuuttuurree ii mmpprr oovveemmeenntt pp rroojjeecc ttss The Plan anticipates use of cash (pay-go) in year 2031 for treatment plant improvement project. $0 $5 $10 $15 $20 $25 $30 Actual2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031Ending Cash BalanceMillionsCHART 6Sewer Fund Minimum Cash for operating cash flow, following year debt service, pay-go capital Projected Cash Position with Future Rate Adjustments SSee ww eerr FFuunndd eennddiinngg ccaasshh bb aall aannccee iiss pprroo jjeecctteedd ttoo iinn cc rreeaassee ffrroomm ccooll lleecc ttoonn ooff ddeevveellooppmm eenn tt rreellaatteedd rr eevveennuuee wwhhiicchh wwii llll bbee sspp eenntt oonn ffuu ttuurree iimmpp rroovveemmeenntt pprroo jj eeccttss The Plan anticipates use of cash (pay-go) in year 2027 for NE to SE Trunk Sewer Line project. The increase in the Water Fund and Sewer Fund Year- End Cash Balance is planned. The difference between Pro- jected Cash Position and Minimum Cash Position represents the net amount of cash projected to be available as reserves for future capi- tal improvements. The City collects development fees at time of platting and building permit, use of the funds col- lected occurs over time to pay for financing of projects. Connection and availability charges from development will pay for future capital improvements to support de- velopment both programmed and not yet programmed in the CIP. 12 Introduction and Summary 0% 20% 40% 60% 80% 100% 120% 140% 160% 2022 2023 2024 2025 2026Cumulative % Increase from Year 2021CHART 7Tax Levy and Tax Base Cumulative %Increase in Tax Levy Cumulative %Increase in Net Tax Capacity Cumulative increase in Tax Levy is projected to be less than the cumulative increase in Net Tax Capacity 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2021 2022 2023 2024 2025 2026 2027Total Annual Tax Levy as % of TotalCHART 8Tax Levy by Purpose General Fund Tax Levy Debt Service Tax Levy Tax Levy for Debt Service is projected to increase with planned issuance of new debt for projects 13 Background BACKGROUND The City of Corcoran is located on the western edge of the Twin Cities Metropolitan area in Hennepin Coun- ty. The population is estimated at 6,770 (U.S. Census Bureau as of July 1, 2021). Population will continue to increase due to development of residential property within the City. The land area for the City encompass- es just under 36 square miles and includes area for fu- ture residential development. Commercial and industrial development in the City is expected to continue to expand due to access to mu- nicipal water and sewer services and the expansion of transportation corridors. In 2012 the City successfully financed and implemented a major improvement proj- ect to first bring and then expand municipal water and sewer services to the City. The project provided for connection to the metropolitan disposal system. The City forecasts continued development of both residen- tial and commercial property. The City’s development plan for its downtown area provides an opportunity for additional economic de- velopment. In recent years the City completed con- struction of street improvements and utility infrastruc- ture in the downtown area. The table that follows provides the estimated number of housing units along with municipal utility connec- tions units for commercial property in the downtown area the City projects to be added over the next twenty- years. The assumptions on units is an important input to the Plan and is updated on annual basis by the City. The City is in the process of planning for water ser- vice to serve the northeast area of the City. The access to water purchased from Maple Grove is limited. The City is planning on investments for a water treatment plant and water tower in the near term. 14 Background Table 3 Page 1 of 3 for Table 3 City of Corcoran Growth Projections 2021 2022 2023 2024 2025 2026 2027 Residential (Ravinia)SE District 90 22 4 ---- Residential (Bass Lake Crossing)SE District 20 ------ Residential (Bass Lake Crossing South)SE District 14 ------ Commercial SE District 1 1 1 1 1 1 1 Residential (Tavera)SE District 3 120 100 100 75 50 35 Residential (Rush Creek Reserve)SE District 10 73 50 40 20 9 - Residential (Walcott-Glen project)SE District 10 80 165 220 245 275 250 Residential (Amberly/Bellweather)NE District 85 155 130 50 10 -- Residential (Other)NE District --115 10 --- Multi-Family --204 ---- Residential (Greater Corcoran)5 5 5 5 5 5 5 Total Annual Units Constructed (Year of Building Permit)238 456 774 426 356 340 291 Annual New Units Added: Residential (Ravinia)SE District 85 90 22 4 --- Residential (Bass Lake Crossing)SE District 31 20 ----- Residential (Bass Lake Crossing South)SE District 24 14 ----- Commercial SE District 1 1 1 1 1 1 1 Residential (Tavera)SE District -3 120 100 100 75 50 Residential (Rush Creek Reserve)SE District 10 73 50 40 20 9 Residential (Amberly/Bellweather)SE District 10 80 165 220 245 275 Residential (Bellweather)NE District 91 85 155 130 50 10 - Residential (Other)NE District ---115 10 -- Multi-Family ---204 --- Residential (Greater Corcoran)7 5 5 5 5 5 5 Total Utility Billing Customer Units Added 239 238 456 774 426 356 340 Northeast Corcoran 37 160 63 40 40 40 40 Southeast Corcroan 40 194 85 135 60 60 48 Total Acres Platted 77 354 148 175 100 100 88 Acres Platted (Trunk) PROJECTED UNITS - BASED ON YEAR OF BUILDING PERMIT ESTIMATED UNITS FOR FINANCIAL PLANNING PURPOSES (PLAN ASSUMES UNITS ADDED AS UTILITY CUSTOMER IN YEAR AFTER BUILDING PERMIT ISSUED) 15 Background Table 3 Page 2 of 3 for Table 3 City of Corcoran Growth Projections 2021 2022 2023 2024 2025 2026 2027 CUSTOMER UNITS Customer Units Added Per Year by Type and Area Residential SE District 140 147 295 319 360 340 334 Residential NE District 91 85 155 245 60 10 0 Greater Corcoran 7 5 5 5 5 5 5 Subtotal Residential 238 237 455 569 425 355 339 Commercial SE District 1 1 1 1 1 1 1 Multi-Family 0 0 0 204 0 0 0 Total Units Added 239 238 456 774 426 356 340 Total Customer Units by Type Residential SE District 547 694 989 1,308 1,668 2,008 2,342 Residential NE District 190 275 430 675 735 745 745 Greater Corcoran 7 12 17 22 27 32 37 Subtotal Residential 744 981 1,436 2,005 2,430 2,785 3,124 Commercial SE District 31 32 33 34 35 36 37 Multi-Family 0 0 0 204 204 204 204 Grand Total Units 775 1,013 1,469 2,243 2,669 3,025 3,365 CUSTOMER WATER VOLUMES Residential average gallons per year per REU 85 85 85 85 85 85 85 Multi-Family average gallons per year per REU 75 75 75 75 75 75 75 Commercial average gallons per year per REU 38 38 38 38 38 38 38 Total Purchased Water Volume (1,000 Gal) Residential SE District 46,495 58,990 84,065 111,180 141,780 170,680 199,070 Residential NE District 16,150 23,375 Greater Corcoran 595 1,020 1,445 1,870 2,295 2,720 3,145 Subtotal Residential 63,240 83,385 85,510 113,050 144,075 173,400 202,215 Commercial SE District 1,178 1,216 1,254 1,292 1,330 1,368 1,406 Multi-Family ---15,300 15,300 15,300 15,300 Municipal Water Usage (10% of total)6,442 8,460 8,676 12,964 16,071 19,007 21,892 Total Purchased Water Volume (1,000 Gal)70,860 93,061 95,440 142,606 176,776 209,075 240,813 Total City Water Produced Volume (1,000 Gal) Residential SE District Residential NE District 36,550 57,375 62,475 63,325 63,325 Greater Corcoran Subtotal Residential --36,550 57,375 62,475 63,325 63,325 Commercial SE District Multi-Family Municipal Water Usage (15% of total) Total City Water Produced Volume (1,000 Gal)--36,550 57,375 62,475 63,325 63,325 Average Estimated Annual Volume Per Customer SUMMARY OF PROJECTED CUSTOMER UNITS AND VOLUME USED FOR PLAN 16 Background Table 3 Page 3 of 3 for Table 3 City of Corcoran Growth Projections 2021 2022 2023 2024 2025 2026 2027 Residential SE District 46,495 58,990 84,065 111,180 141,780 170,680 199,070 Residential NE District 16,150 23,375 36,550 57,375 62,475 63,325 63,325 Greater Corcoran 595 1,020 1,445 1,870 2,295 2,720 3,145 Subtotal Residential 63,240 83,385 122,060 170,425 206,550 236,725 265,540 Commercial SE District 1,178 1,216 1,254 1,292 1,330 1,368 1,406 Multi-Family ---15,300 15,300 15,300 15,300 Municipal Water Usage (15% of total) Total Water Volume Billed (1,000 Gal)64,418 84,601 123,314 187,017 223,180 253,393 282,246 Notes to Table 3: 1. The Plan assumes the following volume of water sold by billing tier, as shown below. As volumes sold increase, this assumption will need to be modified. Tier 1: Water usage 0 to 4,999 gallons 82%Tier 2: Water usage 5,000 to 8,999 gallons 15% Tier 3: Water usage 9,000 to 19,999 gallons 3% Tier 4: Water usage 20,000 gallons over 0% 3. Table 3 does not include customer units in greater Corcoran that are not sewered. Total Water Billed to Customers (1,000 Gal) 2. NE District is projected to be served by a City water system beginning in year in 2023. Prior to year 2023, property in the NE District will be served by water purchased from Maple Grove. 17 Background 0 100 200 300 400 500 600 2022 2023 2024 2025 2026 2027Residential Equivalent UnitsResidential Commercial (Other) Projections for future growth from residential and commercial development drive the revenue assumptions in the Plan CHART 9 0 20 40 60 80 100 120 140 160 180 2022 2023 2024 2025 2026 2027Acres of Land PlattedProjection for future acres of land platted for development impacts the revenue assumptions in the Plan CHART 10 18 CIP and DebtCAPITAL IMPROVEMENT PLAN (CIP) AND DEBT The City annually reviews its plans for capital acqui- sition and improvements and updates its multi-year plan. The CIP in the Plan provides details on costs by year and proposed funding sources. The debt service study, included in the Plan, provides information on current debt service and estimated future debt. The CIP provides an important input into preparing the financial plans for the individual City funds. Equipment and Vehicles Over the next five years the City anticipates spending an average of approximately $1.10 million per year on equipment and vehicles. The Plan includes anticipated bonding in year 2022 and 2024 for equipment and ve- hicles. The City plans to continue to incrementally increasing tax levy in the General Fund to support a transfer to the Equipment Fund. Annual sale of capital assets is estimated to provide approximately $75,000 for new equipment and vehicles. Water Improvements Water improvements are included in the CIP for the implementation of a water system for the northeast area of the City estimated at $19,000,000 in year 2023. Additional wells and treatment improvements are an- ticipated in future years in the estimated amount of $21,800,000 between years 2024-2031. The Plan anticipates the southeast area of the City will continue to be served under terms of an agreement with Maple Grove for purchase of municipal water until demand passes capacity. Future improvements in southeast Corcoran will need to be undertaken at some point in the future. The CIP does not include water improvement projects that are anticipated to be constructed and financed by private development and contributed to the City. These projects will be paid entirely by private funds with infrastructure then contributed to the City. Sewer Improvements The Plan includes planned construction of a north- east-southeast trunk line in year 2027 in the estimated amount of $10,000,000. Street Improvements The CIP includes street improvements for Hacka- more Road, Horshoe Bend, and City Center Drive & Development in year 2023 in the estimated amount of $6,950,000. These improvements are anticipated to be financed through issuance of general obligation bonds in 2023. Improvement to Gravel Roads Council has discussed a need to establish a plan to be- gin paving gravel roads. A dedicated revenue source is likely needed for this to take place and should be discussed and included in future Plans. Facility and Parks A future municipal building or expansion of the ex- isting building is planned for approximately $25 mil- lion in year 2026; this is a “placeholder” year. The Plan anticipates that the debt on the municipal building will be paid 80% from tax levy and 20% from water 19 CIP and Debtand sewer revenues. The annual debt service expense is included in the financial plans for the Debt Service Fund, including the transfers in of revenues from the Water Fund and Sewer Fund, respectively. The annual debt service is estimated at approximately $1.6 million for a $25.375 million bond issuance, which includes funds for project construction and cost of issuance of the bonds. The annual tax levy for debt service, after accounting for use of utility revenues, is estimated at approximately $1.1 million beginning in 2026. Future Park Improvements The City is planning for various park improvements including City Park as well as other park planning as outlined in the 2040 Comprehensive Plan. These im- provements will be paid with park dedication funds and completed as funds allow. • Town Center Park and Linear Park • Phase 1 of the City Park Improvement Project • Open space park near Ravinia Development • Open space park near Bellwether Development • Neighborhood park near Bellwether Development • County Road trail improvements The Plan includes $4.5 million for park facilities in year 2023 to be funded from general obligation bond issu- ance in 2023. Bond Issuance The City’s outstanding general obligation bonds are rated as ‘Aa3’ by Moody’s Investors Service. The posi- tive credit strengths include strong financial opera- tions resulting in growing reserves. The strong bond rating means a lower cost of borrowing for the City. The City anticipates the issuance of bonds to finance certain capital improvements. The tables and graphics that follows provide a summary of existing and future estimated debt service payments (principal and inter- est) and funding sources, along with a summary of debt outstanding by year. The annual debt service on “new” bonds to be issued is also included in the financial plans for the Debt Ser- vice Fund, Water Fund, and the Sewer Fund. The pre- liminary estimates for debt service are based on the following estimated new bond issues: • Year 2023, G.O. Bonds, $8,670,000 to finance street and park improvements payable from tax levy, with the bonds sized for capitalized interest. • Year 2023, G.O. Bonds, $16,300,000 to finance water system improvements over a 30 year term payable from net revenues of the Water Fund. • Year 2024, G.O. Bonds, $1,850,000 to finance equip- ment and vehicle acquisition over a 10 year term payable from tax levy. • Year 2026, G.O. Bonds $25,375,000 to finance mu- nicipal buildings over a 25 year term payable from tax levy and net revenues of the Water Fund and the Sewer Fund. The estimated split is 80% pay- able from tax levy and 20% payable from the utility revenues. • Year 2026, G.O. Bonds, $2,040,000 to finance equip- ment and vehicle acquisition over a 10 year term payable from tax levy. 20 CIP and DebtBond Terms The final sizing, structuring, and interest rates will depend on project specifics and market conditions at time of issuance. The amounts shown in the Plan are preliminary and for planning purposes only. The bond issuance sizes include capital acquisition and construction costs, cost of issuance of bonds, and capi- talized interest funds, if applicable. The debt service for the new bonds is based on the terms stated above and a conservatively estimated 4-5% interest rate on the bonds. 21 CIP and DebtTABLE 4 Page 1 of 2 of Table 4 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Use of FundsPublic Safety 485,000 160,000 400,000 412,000 424,360 437,091 450,204 463,710 477,621 491,950Public Works 1,137,000 235,000 700,000 721,000 742,630 764,909 787,856 811,492 835,837 860,912Administration-100,000 100,000 103,000 106,090 109,273 112,551 115,927 119,405 122,987Total1,622,000 495,000 1,200,000 1,236,000 1,273,080 1,311,272 1,350,611 1,391,129 1,432,863 1,475,849 Source of FundsBond proceeds 1,760,000 1,800,000 2,000,000Sale of assets 152,000 10,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000Cash from fund (290,000)485,000 (675,000)1,161,000 (801,920)1,236,272 1,275,611 1,316,129 1,357,863 1,400,849Total1,622,000 495,000 1,200,000 1,236,000 1,273,080 1,311,272 1,350,611 1,391,129 1,432,863 1,475,849- Use of FundsPreliminary planning for water systemWater system 500,000 19,000,000 750,000 750,000 20,350,000Total500,000 19,000,000 ---750,000 --750,000 20,350,000 Source of FundsBond proceeds 16,000,000 --Federal Funds 3,000,000Cash from fund 500,000 750,000 750,000 20,350,000Total500,000 19,000,000 ---750,000 --750,000 20,350,000 Use of FundsNE to SE Trunk Sewer 10,000,000NE Trunk Sewer 1,000,000Total-1,000,000 ---10,000,000 ---- Source of FundsBond proceeds --Cash from fund 1,000,000 10,000,000Total-1,000,000 ---10,000,000 ---- Use of FundsHackamore Road 1,750,000Horshoe Bend 200,000City Center Drive & Develpoment 5,000,000Total-6,950,000 -------- Source of FundsBond proceeds 3,480,000Sale of assets 600,000Municipal State Aid 2,200,000Sale of property 670,000Total-6,950,000 -------- Capital Improvement Plan Equipment and Vehicles Sewer Improvements Water Improvements Street Improvements 22 CIP and DebtTABLE 4 Page 2 of 2 of Table 4 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Capital Improvement Plan Use of FundsMunicipal building improvements 25,000,000Park facilities 4,500,000Total-4,500,000 --25,000,000 ----- Source of FundsBond proceeds 4,500,000 25,000,000Total-4,500,000 --25,000,000 ----- Total Use of FundsEquipment and Vehicles 1,622,000 495,000 1,200,000 1,236,000 1,273,080 1,311,272 1,350,611 1,391,129 1,432,863 1,475,849Water Improvements 500,000 19,000,000 ---750,000 --750,000 20,350,000Sewer Improvements -1,000,000 ---10,000,000 ----Street Improvements -6,950,000 --------Facility and Parks -4,500,000 --25,000,000 -----Total Use of Funds 2,122,000 31,945,000 1,200,000 1,236,000 26,273,080 12,061,272 1,350,611 1,391,129 2,182,863 21,825,849 Total Source of FundsBond proceeds 1,760,000 23,980,000 1,800,000 -27,000,000 -----Sale of assets 152,000 610,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000Municipal State Aid -2,200,000 --------Federal Funds -3,000,000 --------Other Funds -670,000 --------Cash from funds 210,000 1,485,000 (675,000)1,161,000 (801,920)11,986,272 1,275,611 1,316,129 2,107,863 21,750,849Total Source of Funds 2,122,000 31,945,000 1,200,000 1,236,000 26,273,080 12,061,272 1,350,611 1,391,129 2,182,863 21,825,849 Notes: 1. Project costs and bond proceeds shown in this table do not include cost of issuance of the bonds and capitalized interest. Facility and Parks Total Capital Improvement Plan 23 CIP and DebtTABLE 5 Par Amount of Bonds 2022 2023 2024 2025 2026 2027 2028 2029 2030 Debt ServiceG.O. 2012A Certificates (Equipment)410,000 ---------G.O. 2012B CIP Bonds (Public Works Bldg)4,000,000 ---------G.O. 2014A Bonds (Equipment)442,000 ---------G.O. 2016A Bonds (DT Project, and Equipment)2,915,000 296,680 301,380 300,930 295,430 294,880 259,580 61,420 60,100 58,780G.O. 2018A Bonds (Park, and Equipment)1,835,000 180,900 181,775 177,575 178,300 178,875 174,375 179,725 101,050 103,380G.O. 2020A Bonds (Equipment)805,000 95,300 98,650 96,950 100,200 98,400 96,600 99,750 97,850 95,950G.O. 2020B Bonds (Refund 2012B)3,365,000 198,340 210,290 212,040 218,640 220,090 221,440 222,690 218,890 225,990G.O. 2022A Bonds (Equipment)1,800,000 -78,839 234,338 232,438 235,238 232,738 234,938 236,738 233,238PROJECTED G.O. 2023 Bonds (Streets and Park)8,670,000 ---529,740 416,625 827,928 826,810 829,728 826,400PROJECTED G.O. 2024 Bonds (Equipment)1,850,000 ---105,117 245,700 243,600 246,200 248,400 245,300PROJECTED G.O. 2026 Bonds (Facilities)25,375,000 -----1,777,067 1,603,300 1,607,700 1,606,000PROJECTED G.O. 2026A Bonds (Equipment)-----261,800 246,300 249,100 246,600Total771,220 870,934 1,021,833 1,659,865 1,689,808 4,095,127 3,721,133 3,649,555 3,641,638 Source of Funds Tax levy 1 559,718 804,302 1,067,615 1,955,050 3,219,238 3,546,225 3,465,612 3,463,522 3,374,934Special assessments (collected in current year)95,668 104,006 104,006 104,006 104,006 104,006 104,006 -- Transfer in from Water Fund 3 89,295 63,255 62,855 62,455 239,762 183,970 184,010 183,440 183,220 Transfer in from Sewer Fund 4 89,787 55,347 54,747 54,097 219,597 201,520 201,260 200,390 199,840Capitalized interest funds (from bond proceeds)44,970 346,015 ------- Debt service funds draw (increase) in fund balance 2 (108,218)(501,992)(267,390)(515,743)(2,092,795)59,405 (233,755)(197,797)(116,356)Total Governmental Debt 771,220 870,934 1,021,833 1,659,865 1,689,808 4,095,127 3,721,133 3,649,555 3,641,638 Debt ServiceG.O. 2014B Bonds 3,130,000 219,275 214,925 220,425 220,700 220,825 215,875 215,850 215,456 214,688G.O. 2020A Bonds (Water Portion)1,145,000 126,850 124,750 127,600 125,400 128,150 125,850 128,500 126,100 123,700PROJECTED G.O. 2023 Bonds (Water)16,300,000 --1,442,086 1,051,830 1,052,186 1,052,060 1,051,363 1,054,828 1,052,345Subtotal346,125 339,675 1,790,111 1,397,930 1,401,161 1,393,785 1,395,713 1,396,384 1,390,733Note Payable to Maple Grove, 2014 300,000 36,863 36,997 37,139 37,289 37,447 37,613 14,845 --Note Payable to Maple Grove, 2016 117,790 11,779 11,779 11,779 11,779 11,779 11,779 ---Subtotal 48,642 48,776 48,918 49,068 49,226 49,392 14,845 --Total 394,767 388,451 1,839,029 1,446,998 1,450,387 1,443,177 1,410,557 1,396,384 1,390,733 Source of FundsWater Fund 275,731 273,755 1,716,547 1,326,539 1,329,527 1,326,952 1,291,804 1,277,483 1,271,870Sewer Fund 119,036 114,696 122,483 120,458 120,860 116,225 118,754 118,900 118,863Total Proprietary Debt 394,767 388,451 1,839,029 1,446,998 1,450,387 1,443,177 1,410,557 1,396,384 1,390,733 Notes: 3. Transfers from Water/Sanitary Sewer pay a pro-rata share of Governmental Debt that benefits the utility services. This includes 2016A Bonds and 2025A Bonds. City of CorcoranDebt Service (Principal and Interest Payments) and Source of Funds 1. Collection of the tax levy is in the calendar year prior to the payment of debt service. This results in draws and (increases) in fund balance of the debt service funds.2. Difference is due to timing of collection of tax levies and assessments and debt payment dates. Tax levies and assessments are collected in year prior to principal payment. PROPRIETARY DEBT GOVERNMENTAL DEBT 24 CIP and DebtTABLE 6 Original Par Amount of Bonds 2022 2023 2024 2025 2026 2027 GOVERNMENTAL DEBT Debt ServiceG.O. 2016A Bonds (DT Project, and Equipment)2,915,000 1,645,000 1,375,000 1,100,000 825,000 545,000 295,000G.O. 2018A Bonds (Park, and Equipment)1,835,000 1,445,000 1,305,000 1,165,000 1,020,000 870,000 720,000G.O. 2020A Bonds (Equipment)805,000 725,000 640,000 555,000 465,000 375,000 285,000G.O. 2020B Bonds (Refund 2012B)3,365,000 3,220,000 3,060,000 2,895,000 2,720,000 2,540,000 2,355,000G.O. 2022A Bonds (Equipment)1,800,000 1,800,000 1,800,000 1,630,000 1,455,000 1,270,000 1,080,000PROJECTED G.O. 2023A Bonds (Streets)8,670,000 -8,670,000 8,670,000 8,620,000 8,150,000 7,665,000PROJECTED G.O. 2024A Bonds (Equipment)1,850,000 --1,850,000 1,855,000 1,680,000 1,500,000PROJECTED G.O. 2026A Bonds (Facilities)25,375,000 ----25,375,000 24,770,000PROJECTED G.O. 2026A Bonds (Equipment)2,040,000 ----2,040,000 1,870,000Total8,835,000 16,850,000 17,865,000 16,960,000 42,845,000 40,540,000 PROPRIETARY DEBT Debt ServiceG.O. 2014B Bonds 3,130,000 2,215,000 2,070,000 1,915,000 1,755,000 1,590,000 1,425,000G.O. 2020A Bonds (Water Portion)1,145,000 1,040,000 935,000 825,000 715,000 600,000 485,000PROJECTED G.O. 2023A Bonds (Water)16,300,000 -16,300,000 15,980,000 15,695,000 15,400,000 15,095,000Subtotal3,255,000 19,305,000 18,720,000 18,165,000 17,590,000 17,005,000Note Payable to Maple Grove, 2014 300,000 172,489 144,117 114,183 82,604 49,287 14,138Note Payable to Maple Grove, 2016 117,790 58,895 47,116 35,337 23,558 11,779 -Subtotal 231,384 191,233 149,520 106,162 61,066 14,138Total3,486,384 19,496,233 18,869,520 18,271,162 17,651,066 17,019,138 City of CorcoranDebt Outstanding at Year-End 25 CIP and Debt $0 $5 $10 $15 $20 $25 $30 $35 2023 2024 2025 2026 2027 2028 2029 2030 2031Capital Improvement Project SpendingMillionsFacility and Parks Street Improvements Sewer Improvements Water Improvements Equipment and Vehicles With the exception of equipment and vehicles, annual spending on capital is projected to vary from year to year CHART 11 $0 $5 $10 $15 $20 $25 $30 $35 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031Source of Fundsfor Capital ImprovementsMillionsBond proceeds Sale of assets Municipal State Aid Federal Funds Other Funds Cash from funds Bonding to finance capital improvements is planned along with other sources of revenue CHART 12 26 CIP and Debt $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2022 2023 2024 2025 2026 2027Annual Debt ServiceMillionsProprietary Funds Governmental Funds Increase in debt service payments is planned as the City undertakes planned improvements to facilities and utility infrastructure CHART 13 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2022 2023 2024 2025 2026 2027 Revenue for Existing/New Debt ServiceMillionsCHART 14 Tax levy Special assessments Utility funds Other funds About half of City debt is projected to be payable from net revenue from utility funds Other funds includes interest income, capitalized interest funds, and use of fund balance. 27 CIP and Debt $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 2022 2023 2024 2025 2026 2027Debt Outstanding (Existing and Planned)MillionsCHART 15 Governmental Funds Proprietary Funds City debt outstanding both for governmental and proprietary (utilities) is planned to increase with construction of facilities and other improvements as the City grows $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 2022 2023 2024 2025 2026 2027Debt OutstandingMillionsCHART 16 Existing Planned Debt City debt outstanding is planned to increase with construction of facilities and other improvements as the City grows 28 Financial Plans FINANCIAL PLANS Background Financial plans have been prepared for each of the fol- lowing type of funds: Governmental Funds • General Fund • Debt Service Funds • Special Revenue Funds • Capital Projects Funds • Capital Equipment Fund • Capital Facilities Fund Proprietary Funds (Enterprise Funds) • Water Fund • Sewer Fund Governmental Funds are used to account for most typ- ical municipal functions of the City. The acquisition, use, and balances of the City’s expendable financial re- sources and the related current liabilities (except those accounted for in Proprietary Funds), are accounted for through the Governmental Funds. Proprietary Funds (Enterprise Funds) are used to ac- count for the City’s ongoing municipal utility opera- tions that are similar to businesses found in the private sector. These funds are considered self-supporting in that the services rendered by them are financed through user charges. The financial plans, for the Pro- prietary Funds, include assets and liabilities in addi- tion to the revenues and expenditures. For the Proprie- tary Funds, there is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. Summary of Key Factors and Assumptions The key factors or assumptions used to develop the financial plans are as follows: • 3.0% annual increase in operating expense for the Governmental Funds. • 2.0% annual increase in non-property tax revenue for the Governmental Funds. • Annual projected increase in property tax levies to be set at a level sufficient to maintain sufficient fund balance levels per City. Maintaining a con- stant tax rate is currently projected to require the City to adjust its plans for staffing additions and other spending. • Fiscal disparities distribution of property taxes and contribution of property tax capacity is assumed to be at the same levels as estimated for Pay 2023. The actual amounts will vary by year and will impact the projections shown in the Plan. • Maintain a minimum balance in the General Fund equal to approximately 45% of current expendi- tures (which is greater than the 35% minimum per policy), recognizing the need for cash flow and contingency. • 3.0% average annual rate increase for water and sewer services, with the exception of the base fee for water which is 5.0%. The annual percent rate increase is approximate and reflects the anticipat- ed cost increases and project needs. 29 Financial Plans • A new availability charge for water treatment and storage was adopted in 2022 for both Northeast Corcoran and Southeast Corcoran. • 1.0% annual investment income rate for all City Funds. • Maintain cash in the Water Fund and Sewer Fund sufficient to achieve projected year-end cash bal- ance to cover the following purposes: - Three-months of operating expense - Following-year debt service payments - Following year capital acquisition (planned to be paid from cash) - Reserves for future capital improvements and other reserve purposes • Maintain positive balances in all other City funds and amounts sufficient to meet specific cash flow requirements of the funds. 30 Financial Plans Expense Personnel and other operating costs overall have been and are projected to remain stable in the near term with planned increases in the future to address the de- mands of a growing community. The financial plans anticipate includes projected staff- ing increases in the General Fund. These increases are detailed in the General Fund financial plan that fol- lows and in the Appendix. Approximately 26+ new full time equivalent (FTE) are planned to be added between years 2023-2027. The timing of staff additions will need to be modified to achieve the City’s objective to maintain a constant city tax rate from year-to-year. Transfers To and From Other Funds Transfers between funds for future years include the following: • Transfers from the Water Fund and Sewer Fund to the General Fund to pay an allocated share of op- erating costs. • Transfer from the Water Fund and Sewer Fund to the Debt Service Fund to pay an allocated share of the debt services for the 2016A Bonds and the bonds anticipated to be issued in 2025 to pay for municipal building improvements. • The Plan includes annual transfers of cash (tax levy) from the General Fund to the Equipment Fund, Facilities Fund, and Storm Water Fund for capital projects. TOTAL GOVERNMENTAL FUNDS COMBINED The table that follows provides total sources and uses of funds for the following Governmental Funds com- bined. Individual financial plans are then provided for each of the following funds: • General Fund • Debt Service Funds • Special Revenue Funds • Capital Projects Fund • Capital Equipment Fund • Capital Facilities Fund The City’s annual financial statements include a break- down of individual funds for the Debt Service Fund, Special Revenue Fund, and Capital Projects Fund. For example, the City maintains separate debt service funds for each bond series issued. For capital projects, the City establishes a specific “Capital Projects Fund” for each individual project. For purposes of the Plan, this level of detail is not included. Revenue Annual source of funds from non-property tax levy sources has been stable for the City and is expected to remain so in the future. The City does not receive local government aid (LGA) from the state. Property tax levy increases will be needed to pay for increased operating costs and debt service related to planned capital improvements. TOTAL GOVERNMENTAL FUNDS 31 Financial Plans $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 2020 2021 2022 2023 2024 2025 2026 2027Source and Use of FundsMillionsCHART 17Total Governmental Funds Source of Funds Use of Funds Minimum fund balance policy objectives of the City are projected to be met with source of funds sufficient to cover use of funds and provide sufficient reserves $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2020 2021 2022 2023 2024 2025 2026 2027Year-End Fund BalanceMillionsCHART 18Total Governmental Funds Future years include projected increase in fund balance to support planned increase in the City's budget consistent with City's policy for maintaining adequate fund balance TOTAL GOVERNMENTAL FUNDS 32 Financial Plans TABLE 7 Current Year 2020 2021 2022 2023 2024 2025 2026 2027 Revenue Charges for service 249,889 979,371 1,381,614 322,410 328,674 335,060 341,572 348,211Assessments114,386 176,304 104,006 104,006 104,006 104,006 104,006 104,006Licenses and permits 1,245,432 1,486,873 1,312,000 1,326,850 1,366,656 1,407,655 1,449,885 1,493,381 Intergovernmental 748,951 398,516 312,945 2,538,245 348,392 358,844 369,609 380,698Investment Income 59,504 1,237 54,702 87,407 108,307 151,706 164,114 193,042Fines and forfeitures 18,829 11,758 40,000 25,000 25,750 26,523 27,318 28,138 Cable franchise fees 50,059 56,691 53,000 59,000 60,770 62,593 64,471 66,405Misc - Other 298,631 2,361,737 1,153,891 2,171,448 3,340,977 2,034,980 1,712,244 1,639,447Bond proceeds 4,170,000 -1,804,970 8,326,015 1,800,000 -27,000,000 - Sale of capital assets -104,940 152,000 1,280,000 75,000 75,000 75,000 75,000Transfer in from General Fund 537,000 -354,417 350,000 250,000 250,000 250,000 900,000Transfer in from Utility Funds 283,952 269,164 633,230 654,102 679,877 706,941 1,079,267 1,036,394 Subtotal Non Property Tax Funds 7,776,633 5,846,591 7,356,775 17,244,483 8,488,409 5,513,308 32,637,486 6,264,721--------Property tax levy 4,643,582 5,079,375 5,699,429 7,166,425 7,913,616 10,451,366 11,321,595 12,183,006--------Total Source of Funds 12,420,215 10,925,966 13,056,204 24,410,909 16,402,025 15,964,674 43,959,081 18,447,727 -------- Expense --------Current expenditures 5,452,211 6,268,230 7,211,521 8,629,500 9,004,103 10,225,133 10,573,829 10,638,674 Capital outlay 1,638,834 5,066,351 1,646,960 11,969,960 1,224,960 1,260,960 26,298,040 1,336,232Debt service 1,071,298 4,191,272 771,220 870,934 1,021,833 1,659,865 1,689,808 4,095,127Transfer out to Equip Fund 150,000 -300,000 325,000 250,000 250,000 250,000 900,000 Transfer out to Storm Water Fund --35,000 10,000 45,000 50,000 55,000 60,000Transfer out to Capital Projects Fund 200,000 -29,417 -----Transfer out to Facilities Fund 187,000 -25,000 25,000 ---- Total Use of Funds 8,699,343 15,525,853 10,019,118 21,830,394 11,545,895 13,445,957 38,866,676 17,030,033--------Net Change in fund balance 3,720,872 (4,599,887)3,037,086 2,580,515 4,856,129 2,518,717 5,092,405 1,417,694-------- Ending Fund Balance 11,889,974 7,290,087 10,327,173 12,907,687 17,763,817 20,282,533 25,374,938 26,792,632-------- Ending Cash Balance 13,274,213 10,159,252 13,196,338 15,776,853 20,632,982 23,151,699 28,244,104 29,661,798 City of CorcoranTotal Governmental Funds CombinedFinancial Plan ProjectedPrior Year Actuals 33 Financial Plans GENERAL FUND The General Fund is the primary fund used by the City. This fund is used to record all resource inflows and outflows that are not associated with special-pur- pose funds. The activities being paid for through the General Fund constitute the core administrative and operational tasks of the City. Revenue Annual source of non-tax revenue for the General Fund has been stable and is projected to remain sta- ble. Licenses and permits provides the single largest source of non-tax revenue to the General Fund. The City does not receive local government aid (LGA) from the state. The next largest sources of non-tax revenue are charg- es for services and intergovernmental. Tax Levy Revenue Property tax levy revenue is estimated to increase each year. In addition to funding general city operations, transfers to other funds for facility, equipment, and other capital improvements, property tax levy pro- vides revenue to meet fund balance goals for contin- gency. Figure 2 provides the projected General Fund prop- erty tax levy by year, along with the annual percent changes. The General Fund Tax Levy amounts are esti- mated at levels to achieve the City’s desire to maintain a relatively constant city tax rate from year-to-year. Non-Tax Revenue Non-tax revenue includes charges for services, license and permits, intergovernmental, transfers in from the utility funds, among other sources of non-tax revenue. The financial plan for the General Fund is based on the following key assumptions for non-tax revenues: • Non-tax revenues increase of 2.0% annually. • Annual investment income rate of 1.0%. Intergovernmental Revenue in 2020-2021 has been higher due to receipt of federal funds for Corona virus aid. Expense The General Fund is used to account for the expense of providing general government services for the City. The largest use of funds in current expenditures is for the cost of personnel, including salary and wages, and benefits. Other costs including operating materials and supplies, equipment, and other professional services. Figure 2. Tax Collection Year General Fund Tax Levy % Change in Tax Levy 2021 4,447,791 8.4% 2022 5,139,711 15.6% 2023 6,362,123 23.8% 2024 6,846,001 7.6% 2025 8,496,316 24.1% 2026 8,102,358 -4.6% 2027 8,636,781 6.6% GENERAL FUND 34 Financial Plans The financial plan for the General Fund is based on the following key assumptions: • Current expenditures (includes personnel costs) increase by 3.0% annually for inflation and then adjusted to a level that would be needed to main- tain a constanst city tax rate from year-to-year. • Increase in staff (FTE) and position changes are planned (see Appendix for further details by po- sition), with a portion of the costs to be allocated to the Water and Sewer Funds for certain posi- tions. The FTEs that may be paid either in full or part from the General Fund, depending on avail- able revenues, are listed below. The dollar amount show below is equal to the estimated portion of the cost of the FTEs to be paid from the General Fund. - 2.46 FTE, $257,000 in 2023 - 6.58 FTE, $751,375 in 2024 - 7.85 FTE, $926,500 in 2025 - 4.30 FTE, $567,000 in 2026 - 1.8 FTE, $245,000 in 2027 Transfers To and From Other Funds The Water Fund and the Sewer Fund transfer revenue in to the General Fund to pay an allocated share of operating costs. This transfer is projected to continue with annual inflationary adjustments. Transfers out to other funds includes the following: • Increase in transfer out to the Equipment Fund to pay for a portion of planned equipment and ve- hicle acquisitions as included in the CIP. • Increase in transfer out to the Storm Water Fund to begin to build a balance of funds for project costs. • Additional transfers out of funds from the General Fund to the Capital Projects Funds, including the Facilities Fund, may occur to the extent annual rev- enue is available in excess of annual expenditures, after first maintaining a minimum fund balance in the General Fund equal to 40-50% of current ex- penditures. Fund Balance The maintenance of the City’s reserves, including growing fund balance (reserves), is important to the maintaining the City’s credit rating on its outstanding bonds. Fund balance for the General Fund is projected to re- main at approximately 40-50% of expenditures. City has formally adopted a fund balance policy for the General Fund. The City’s policy is to maintain a mini- mum of 35% of budgeted operating expenditures for cash-flow timing needs. Fund balance in excess of the minimum is a credit positive with respect to maintain- ing the City’s credit rating from Moody’s. GENERAL FUND 35 Financial Plans $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2020 2021 2022 2023 2024 2025 2026 2027MillionsCHART 19General Fund Fund Balance Minimum Fund Balance Fund Balance is planned to be above City policy for minimum balance $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2020 2021 2022 2023 2024 2025 2026 2027Source and Use of FundsMillionsCHART 20General Fund Property Tax Revenue Non-Property Tax Revenues Use of Funds Property tax revenue provides the majority of source of funds for the General Fund -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 2021 2022 2023 2024 2025 2026 2027Annual % Change in Source and Use of FundsCHART 21General Fund Property Tax Revenue Non-Property Tax Revenues Use of Funds Non-Property Tax Revenues fluctuate mostly due to Intergovernmental Revenues and Licenses and Permits Revenue related to Projects, both City and Private Construction $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2023 2024 2025 2026 2027Use of FundsMillionsCHART 22General Fund Current expenditures Increase in positions (cumulative) Transfers to Equipment Fund Transfers to Other Funds City is planning to add positions over the next several years in response to growth in the community and service demands 36 Financial Plans TABLE 8 Current Year202020212022 2023 2024 2025 2026 2027 RevenueCharges for service 220,439 138,750 243,980 285,565 291,276 297,102 303,044 309,105Assessments-34,802 ----Licenses and permits 1,245,432 1,486,873 1,312,000 1,326,850 1,366,656 1,407,655 1,449,885 1,493,381Intergovernmental748,951 397,969 312,945 338,245 348,392 358,844 369,609 380,698Investment Income 16,945 (1,542)8,000 11,500 11,615 11,731 11,848 11,967Fines and forfeitures 18,118 7,558 40,000 25,000 25,750 26,523 27,318 28,138Cable franchise fees 50,059 56,691 53,000 59,000 60,770 62,593 64,471 66,405Misc - Other 68,307 116,324 9,000 17,000 17,510 18,035 18,576 19,134Transfer in from Utility Funds 218,872 269,164 454,148 535,500 562,275 590,389 619,908 650,904Subtotal Non Property Tax Funds 2,587,123 2,506,589 2,433,073 2,598,660 2,684,244 2,772,872 2,864,660 2,959,731 Property tax levy 4,087,767 4,481,789 5,139,711 6,362,123 6,846,001 8,496,316 8,102,358 8,636,781 Total Source of Funds 6,674,890 6,988,378 7,572,784 8,960,783 9,530,245 11,269,188 10,967,018 11,596,512 ExpenseCurrent expenditures 5,432,689 6,240,628 7,183,367 8,600,783 8,974,811 10,195,255 10,543,354 10,607,590Capital outlay 54,731 77,965 ------Transfer out to Equip Fund 150,000 300,000 325,000 250,000 250,000 250,000 900,000Transfer out to Storm Water Fund 35,000 10,000 45,000 50,000 55,000 60,000Transfer out to Capital Projects Fund 200,000 29,417Transfer out to Facilities Fund 187,000 25,000 25,000 --Total Use of Funds 6,024,420 6,318,593 7,572,784 8,960,783 9,269,811 10,495,255 10,848,354 11,567,590 Net Change in fund balance 650,470 669,785 --260,434 773,933 118,664 28,922 Ending Fund Balance 2,921,480 3,591,265 3,591,265 3,591,265 3,851,699 4,625,631 4,744,295 4,773,217 Ending Cash Balance 4,244,063 5,438,932 5,438,932 5,438,932 5,699,366 6,473,298 6,591,962 6,620,884 Fund Balance Minimum per Policy (35%)1,901,441 2,184,220 2,514,178 2,920,324 2,788,253 2,891,133 2,814,518 2,759,300Fund Balance in Excess (Shortfall)1,020,039 1,407,045 1,077,087 670,941 1,063,446 1,734,498 1,929,778 2,013,917Fund Balance as % of Current Expenditures 54%58%50%42%43%45%45%45% ProjectedPrior Year Actuals City of CorcoranGeneral FundFinancial Plan 37 Financial Plans Revenue The Debt Service Funds include the following source of funds: special assessments, interest income, trans- fers in from other funds, property tax levy, and bond proceeds for any capitalized interest funds. General obligation equipment certificates will be re- paid from property tax levy. Prior year and future pro- jected tax levy amounts for repayment of equipment certificates are included in the Plan. Over the next five years, the Plan anticipates the issu- ance of general obligation bonds in years 2023, 2024, and 2026 that will be accounted for in the Debt Service Funds. Future debt will be supported by a combina- tion of tax levy, special assessments, and transfers in of revenue from the Water Fund and the Sewer Fund. Expense The use of funds is for the payment of debt, including principal and interest payments. Transfers From Other Funds The City is to transfer revenue from the Water Fund and Sewer Fund to the Debt Service Fund used to ac- count of the 2016A Bonds. DEBT SERVICE FUND The Debt Service Fund includes the combined funds used to account for all of the City’s governmental debt service. At the end of 2021, the City reported total general obli- gation bonds payable (reported as Governmental Debt) of $7,655,000. The Water Fund and the Sewer Fund also report debt outstanding, which is accounted for separately as a liability for Proprietary Funds. At the end of 2021, the City reported total general obligation bonds payable in the proprietary funds of $3,505,000. In addition to bonds outstanding, the Water Fund re- ported $270,057 in outstanding notes payable to Maple Grove for connections to the water system. The year-end cash balance in the Debt Service Funds fluctuates due to the timing of collection of revenue, for example tax levy, in the year prior to debt service payments coming due. The City is required to have cash available in the re- spective debt service funds equal to 105% of the debt service payments coming due for a specific bond se- ries. For example, the year-end cash balance includes cash from collection of special assessments and tax levy in current year to pay the following February 1st debt payments. The City receives a tax settlement from the County in June and December of each year. The first half tax settlement is available to cover the August 1st debt payments and the second tax settlement is available to cover the February 1st payments. DEBT SERVICE FUND 38 Financial Plans $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2021 2022 2023 2024 2025 2026 2027 Ending Cash BalanceMillionsCHART 23Debt Service Funds Cash Balance is projected to grow as debt issuance increases and be sufficient to cover all debt service payments due Fund balance and cash balance fluctuates due to timing of collection of revenue and when payments are due, balances also fluctuate due to amortization of existing debt and issuance of new debt. City did not transfer revenue from the Utilty Funds to the Debt Service Funds in 2021, resulting in lower ending cash balance, transfer will be made in 2022. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2021 2022 2023 2024 2025 2026 2027Source and Use of FundsMillionsCHART 24Debt Service Funds Property Tax Revenue Non-Property Tax Revenues Use of Funds City is planning to issue new debt in 2023, 2024, and 2026 Difference between revenues and use of funds (for debt service) fluctuates due to timing of collection of revenue and when payments are due, use of funds also fluctuates due to amortization of existing debt and issuance of new debt. Year 2021 included use of prior years bond proceeds for the refunding of the 2012B Bonds. -150% -100% -50% 0% 50% 100% 150% 200% 250% 300% 350% 2021 2022 2023 2024 2025 2026 2027Annual % Change in Source and Use of FundsCHART 25Debt Service Funds Property Tax Revenue Use of Funds Property Tax Revenue needed for debt service is projected to increase over the next five years with issuance of new debt supported by tax levy $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031Debt Service PaymentsMillionsCHART 26 Debt Service Fund Existing Debt New Debt City is planning to issue new debt for equipment, streets, and facilities over the next several years in response to growth in the community and service demands 39 Financial Plans TABLE 9 Current Year202020212022 2023 2024 2025 2026 2027 RevenueAssessments 109,922 95,668 104,006 104,006 104,006 104,006 104,006 104,006 Bond proceeds 3,365,000 44,970 346,015 -Transfer in from General FundTransfer in from Utility Funds 65,080 179,082 118,602 117,602 116,552 459,358 385,490 Transfer in from Capital Proj FundSubtotal Non Property Tax Funds 3,618,541 95,467 328,058 568,623 221,608 220,558 563,364 489,496 Property tax levy 555,815 597,586 559,718 804,302 1,067,615 1,955,050 3,219,238 3,546,225 Total Source of Funds 4,174,356 693,053 887,776 1,372,926 1,289,223 2,175,608 3,782,602 4,035,721 ExpenseDebt service 1,071,298 4,191,272 771,220 870,934 1,021,833 1,659,865 1,689,808 4,095,127 Total Use of Funds 1,071,298 4,191,272 771,220 870,934 1,021,833 1,659,865 1,689,808 4,095,127 Net Change in fund balance 3,103,058 (3,498,219)116,556 501,992 267,390 515,743 2,092,795 (59,405) Ending Fund Balance 3,554,789 56,570 173,126 675,118 942,508 1,458,251 3,551,045 3,491,640 Ending Cash Balance 3,550,535 50,150 166,706 668,698 936,088 1,451,831 3,544,626 3,485,221 ProjectedPrior Year Actuals City of Corcoran Debt Service FundsFinancial Plan 40 Financial Plans SPECIAL REVENUE FUNDS The financial plan for the Special Revenue Funds as in- cluded in the Plan provides sources and uses of funds on a combined basis for the following special revenue funds. The funds included are as follows: • Fund 201 Reserve Donation • Fund 202 Police Donation • Fund 204 Firearms Safety • Fund 205 DWI Forfeiture • Fund 206 Drug Forfeiture • Fund 207 Truck Safety • Fund 208 Lawful Gambling • Fund 209 Emergency Sirens Revenue The source of funds for the special revenue funds come from donations, charges for services, and other miscellaneous revenue sources which are generally restricted for the purpose they were collected. There is no property tax levy that is recorded to the special revenue funds. Expense The use of funds is restricted for the purpose of the funds collected. Transfers To and From Other Funds There are no transfers. 41 Financial Plans TABLE 10 Current Year202020212022 2023 2024 2025 2026 2027 Revenue Charges for service 29,450 35,764 36,300 36,845 37,398 37,959 38,528 39,106 Intergovernmental Investment Income 1,481 (60)6,090 6,419 6,757 7,105 7,462 7,830 Developer payment Misc - Other 39,988 42,913 43,557 44,210 44,873 45,546 46,229 46,923 Transfer in from General Fund Transfer in from Utility Funds Transfer in from Capital Proj Fund Subtotal Non Property Tax Funds 71,630 82,817 85,948 87,474 89,028 90,609 92,220 93,859 Property tax levy Total Source of Funds 71,630 82,817 85,948 87,474 89,028 90,609 92,220 93,859 ExpenseCurrent expenditures 19,522 27,602 28,154 28,717 29,291 29,877 30,475 31,084Capital outlay -24,960 24,960 24,960 24,960 24,960 24,960 24,960Transfer out to Equip FundTransfer out to Storm Water Fund Transfer out to Water Fund Transfer out to Capital Projects Fund Transfer out to Facilities Fund Total Use of Funds 19,522 52,562 53,114 53,677 54,251 54,837 55,435 56,044 Net Change in fund balance 52,108 30,255 32,834 33,797 34,776 35,772 36,785 37,815 Ending Fund Balance 237,090 267,345 300,179 333,975 368,751 404,524 441,309 479,123 Ending Cash Balance 237,402 609,049 641,883 675,679 710,455 746,228 783,013 820,827 City of CorcoranSpecial Revenue FundsFinancial Plan ProjectedPrior Year Actuals 42 Financial Plans geted transfers to and from the Capital Projects Funds based on available resources.CAPITAL PROJECTS FUNDS The financial plan for the Capital Projects Funds, as in- cluded in the Plan, provides sources and uses of funds on a combined basis for all of the City’s capital proj- ects funds, with two exceptions. For purposes of the Plan, the Capital Equipment Fund (416) and the Facili- ties Fund / City Hall (400) are not included as part of the Capital Projects Funds. Separate financial plans are provided for equipment and facilities. Revenue The majority of the source of funds comes from charg- es for service, special assessments, investment income, intergovernmental, and bond proceeds. Prior to year 2021, the City collected revenue from de- veloper payment for Hackamore Road improvements. Hackamore Road will be funded from a combination of developer payments and bond proceeds supported by tax levy. The issuance of bonds for Hackamore Road is planned for year 2023. Expense The projected use of funds is for capital projects as in- cluded in the CIP. This includes construction of street and facility improvements, among other public im- provements. Transfers To and From Other Funds The financial plan does not include annual transfers to and from other funds for the Capital Projects Funds (transfers for the Facility Fund (400) and the Equip- ment Fund (416) are included in the financial plans for these funds). The City Council may approve un-bud- 43 Financial Plans TABLE 11 Current Year202020212022 2023 2024 2025 2026 2027 RevenueCharges for service 804,857 1,101,334Assessments4,464 45,834Intergovernmental547 -2,200,000 ---- Investment Income 35,306 2,844 41,406 64,141 85,885 119,530 140,439 158,318Other / Park Dedication 55,353 2,202,500 1,101,334 2,110,238 3,278,594 1,971,398 1,647,438 1,573,390 Bond proceeds -3,480,000 ----Sale of capital assets --1,270,000 ----Transfer in from General Fund 200,000 29,417 -----Subtotal Non Property Tax Funds 295,123 3,056,582 2,273,491 9,124,379 3,364,479 2,090,928 1,787,877 1,731,708 Property tax levy Total Source of Funds 295,123 3,056,582 2,273,491 9,124,379 3,364,479 2,090,928 1,787,877 1,731,708 ExpenseCapital outlay 793,864 3,742,349 -6,950,000 ----Total Use of Funds 793,864 3,742,349 -6,950,000 ---- Net Change in fund balance (498,741)(685,767)2,273,491 2,174,379 3,364,479 2,090,928 1,787,877 1,731,708 Ending Fund Balance 4,197,469 3,511,702 5,785,193 7,959,572 11,324,051 13,414,979 15,202,856 16,934,564 Ending Cash Balance 4,201,596 4,140,628 6,414,119 8,588,498 11,952,977 14,043,905 15,831,782 17,563,490 Notes:1. The revenue from charges for services is from developer payments for improvement project. 2. Park Dedication Revenue is estimated as follows:Park Dedication Fee Estimate by Property Classification: Single Family 4,628 4,628 4,628 4,628 4,628 4,628Multi-Family 3,141 3,141 3,141 3,141 3,141 3,141Commercial-Industrial 4,498 4,498 4,498 4,498 4,498 4,498 Units Added by Property Classification Subject to Park Dedication Fee:Single Family 237 455 569 425 355 339Multi--204 --- CI 1 1 1 1 1 1 Park Dedication Revenue by Property Classification:Single Family 1,096,836 2,105,740 2,633,332 1,966,900 1,642,940 1,568,892Multi--640,764 ---CI 4,498 4,498 4,498 4,498 4,498 4,498Total1,101,334 2,110,238 3,278,594 1,971,398 1,647,438 1,573,390 City of CorcoranCapital Projects Funds (not including Facilities Improvement Fund (400) and Equipment-Cert Fund 416) Financial Plan ProjectedPrior Year Actuals 44 Financial Plans CAPITAL EQUIPMENT FUND (416) The City uses the Capital Equipment Fund to record all revenue and expense related to the acquisition of equipment and vehicles. Revenue The source of revenue has historically come from the issuance of bonds. Beginning in year 2015, the City implemented a plan to begin to transition to fund equipment and vehicle acquisition on a pay-go basis to eliminate the need to borrow (issue bonds) and incur interest expense. The Plan assumes the City will continue to transfer cash from the General Fund to the Equipment Fund to allow the City to limit issuance of debt for these types of purchases. Other sources of funds includes sale of capital assets, estimated at $75,000 annually and investment income. The Plan anticipates issuance of general obligation bonds (equipment certificates) for equipment and ve- hicle acquisitions in years 2024 and 2026. Future bond issuance after year 2026 will depend on the future available cash and future capital acquisition plans. Expense The projected use of funds is for planned capital acqui- sition of equipment and vehicles. Transfers To and From Other Funds The transfer in shown in the financial plan comes from the transfer of cash (tax levy) from the General Fund. 45 Financial Plans TABLE 12 Current Year202020212022 2023 2024 2025 2026 2027 RevenueIntergovernmentalInvestment Income 1,154 31 (339)5,558 4,013 13,303 4,326 14,889Misc - Other 57,601Bond proceeds 805,000 1,760,000 -1,800,000 -2,000,000 -Sale of capital assets 104,940 152,000 10,000 75,000 75,000 75,000 75,000 Transfer in from General Fund 150,000 300,000 325,000 250,000 250,000 250,000 900,000 Transfer in from Utility Funds Transfer in from Capital Proj Fund Subtotal Non Property Tax Funds 1,013,755 104,971 2,211,661 340,558 2,129,013 338,303 2,329,326 989,889 Property tax levy Total Source of Funds 1,013,755 104,971 2,211,661 340,558 2,129,013 338,303 2,329,326 989,889 Expense Capital outlay 593,915 675,914 1,622,000 495,000 1,200,000 1,236,000 1,273,080 1,311,272 Total Use of Funds 593,915 675,914 1,622,000 495,000 1,200,000 1,236,000 1,273,080 1,311,272 Net Change in fund balance 419,840 (570,943)589,661 (154,442)929,013 (897,697)1,056,246 (321,384) Ending Fund Balance 502,084 (68,859)520,802 366,360 1,295,373 397,676 1,453,923 1,132,539 Ending Cash Balance 504,935 (33,899)555,762 401,320 1,330,333 432,636 1,488,883 1,167,499 City of CorcoranEquipment Fund (416) Financial Plan ProjectedPrior Year Actuals 46 Financial Plans CAPITAL FACILITIES FUND / CITY HALL (400) The City established this fund to record transactions related to improvements to City Hall in 2020 and a new municipal building or significant expansion in 2026. Revenue The source of revenue has come from a combination of transfer in of cash from other City funds. Bond issu- ance is anticipated in 2026 to provide funds for a new municipal building or significant expansion of the ex- isting building. The exact timing and scope of the proj- ect is uncertain. The placeholder amount included in year 2026 is $25 million. Expense The projected use of funds will be to pay for capital project spending, including planning for the improve- ments. Transfers To and From Other Funds Transfer in of cash has come from the General Fund and other funds to pay for facility improvement costs. 47 Financial Plans TABLE 13 Current Year202020212022 2023 2024 2025 2026 2027 Revenue Intergovernmental Investment Income 3,461 165 (456)(211)37 38 38 38 Misc - OtherBond proceeds --4,500,000 --25,000,000 - Sale of capital assets Transfer in from General Fund 187,000 -25,000 25,000 ---- Transfer in from Utility Funds ------Transfer in from Capital Proj Fund ------Subtotal Non Property Tax Funds 190,461 165 24,544 4,524,789 37 38 25,000,038 38 Property tax levy Total Source of Funds 190,461 165 24,544 4,524,789 37 38 25,000,038 38 ExpenseCapital outlay 196,324 545,163 -4,500,000 --25,000,000 - Total Use of Funds 196,324 545,163 -4,500,000 --25,000,000 - Net Change in fund balance (5,863)(544,998)24,544 24,789 37 38 38 38 Ending Fund Balance 477,062 (67,936)(43,392)(18,603)(18,565)(18,528)(18,490)(18,451) Ending Cash Balance 535,682 (45,608)(21,064)3,725 3,763 3,800 3,838 3,877 City of Corcoran Facilities Improvement Fund (Fund 400)Financial Plan ProjectedPrior Year Actuals 48 Financial Plans With proposed annual rate adjustments, the Water Fund is projected to maintain adequate cash balance over the planning period. For purposes of the Plan, the revenue objective focused on providing revenue suf- ficient to achieve projected year-end cash balance to cover the following purposes: • Three-months of operating expense • Following-year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and oth- er reserve purposes The Plan anticipates the issuance bonds in 2023 to fi- nance water system improvements in the northeast area of the City. Expense The use of funds is to pay for the operation and capital improvements, and related debt service, for providing municipal water services, including depreciation of capital assets. The City has an agreement with the City of Maple Grove which provides for payment to Maple Grove for water connections and distribution in the southeast area of the City. Approximately 40% of the Water Fund expenses are estimated to be fixed costs, this amount fluctuates somewhat from year to year and has been declining as the number of customers using the system has in- creased. The City anticipates the addition of approximately 1.61 FTE (allocated portion) over the next five years paid by WATER FUND The Water Fund was established as a Proprietary Fund for the accounting for costs of providing municipal water services to residents and businesses. The Water Fund is considered self-supporting in that the services rendered are financed through user charges. The financial plan includes assets and liabilities in ad- dition to the revenues and expenditures. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. Revenue The source of funds are charges for services, special assessments, developer fees and payments, and bond proceeds. A schedule of fees and charges is included in an Appendix. Future growth from development, which impacts the projection of operating and non-operating revenue for the Water Fund, is assumed to be the following over the next decade: - Nearly 965 acres platted between 2022-2027 - 2,590 new customer units to be added between 2022-2027 Details on the estimated acres platted per year and cus- tomer units added is shown in Table 3. Development will provide increasing revenue to the Water Fund. The Plan estimates annual rate adjustments of 3.0%. The actual increase that may be needed in the future will depend on growth in customers. A new availabil- ity charge for water treatment and storage (on a per acre basis) was adopted in 2022. 49 Financial Plans the Water Fund. The cost of the FTE’s is included in the financial plan. Annual debt service payments on bonds issued to fi- nance water improvements are supported by net rev- enues of the Water Fund. The Water Fund pays a por- tion of the debt on the 2014B Bonds. The portion of the 2014B Bonds payable from water revenues is re- ported as a liability of the Water Fund. As payments on the debt are made the liability in the Water Fund is reduced. Interest is recorded as an expense. In addition to this liability, it is anticipated cash from the Water Fund will be transferred to the Governmen- tal Debt Service Funds to pay a portion of the 2016A Bonds. Beginning in year 2026, the Water Fund is also projected to begin transferring funds to pay an allo- cated portion (10%) of the debt on the planned bonds for municipal facilities improvements. The Water Fund reports a debt obligation for the Notes payable to the City of Maple Grove for water connec- tion charges. As payment is made on the Notes the liability in the Water Fund is reduced. The interest expense on the Note issued in 2014 is recorded as an expense in the Water Fund. There is no interest pay- able on the Note issued in 2016. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. For purposes of the Plan, capital is depreciated over a 55 year term. Transfers To and From Other Funds The Water Fund transfers funds annually to the Gen- eral Fund to pay for operational support. Special assessment revenue from assessments levied to finance connection fees and availability charges for water services are deposited directly in the Water Fund. As noted above, cash from the Water Fund is to be transferred to the City’s Governmental Debt Service Funds to pay allocated portions of debt service. 50 Financial Plans $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Ending Cash BalanceMillionsCHART 27Water Fund For future capital improvements and reserves For following year debt service For following year pay-go capital For 3-months of operating cash Ending cash balance will decline as the City spends down development fees (reserves) collected to service debt issued to finance water improvement projects to support development 0% 100% 200% 300% 400% 500% 600% 700% 800% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Ending unrestricted net position as % of expenseEnding Net PositionMillionsCHART 28Water Fund Ending unrestricted net position ($) Ending unrestricted net position as percent of expense (%) Water Fund is projected to accumulate cash from development charges to pay for future planned capital resulting in an increase in net position $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030MillionsCHART 29Water Fund Revenue Expense Revenues will exceed expenses due to the timing of collection of development related revenues and the use of these funds for capital improvements, including water treatment and storage 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 50 100 150 200 250 300 350 400 Total Volume Billed (Thousands of Gallons)CHART 30 Volume Billed New customers to be added will increase water volumes 51 Financial Plans Table 14 Page 1 of 2 of Table 14 City of Corcoran Water Fund Financial PlanCurrent Year 2020 2021 2022 2023 2024 2025 2026 2027 REVENUE Charges for services 287,892 470,871 544,998 874,731 1,343,499 1,559,364 1,792,903 2,062,826 Special assessments Developer contributions (trunk line)303,582 373,626 8,110,109 3,445,282 3,760,536 2,436,706 2,509,810 2,340,261 Connection fees 281,017 337,895 292,648 583,459 2,330,613 765,077 528,354 487,794 Connection fees payable to MG -708,288 914,868 1,015,049 1,173,457 1,144,361 1,158,815 Other revenues 74,675 ------ Investment income 24,849 2,014 34,322 107,850 115,133 158,329 177,596 194,673Total Revenue 897,340 1,259,081 9,690,365 5,926,191 8,564,830 6,092,932 6,153,024 6,244,368 EXPENSESVariableCurrent oper expenses 128,923 356,361 104,411 175,043 261,607 292,705 312,487 333,361Current oper expenses for NE Dist -312,863 340,673 345,308 345,308 345,308Purchased water (from Maple Grove)151,640 -148,585 353,753 460,439 571,796 691,527 769,511Water meters 80,000 -103,365 173,942 149,652 147,194 129,696 115,161 Capital maintenance 25,750 ------- Connections paid to Maple Grove -708,288 914,868 1,015,049 1,173,457 1,144,361 1,158,815 Subtotal Variable Expenses 386,313 356,361 1,064,649 1,930,469 2,227,420 2,530,461 2,623,378 2,722,155Fixed Transfer to General Fund 109,436 134,582 227,074 267,750 275,783 284,056 292,578 301,355 Transfer to Debt Service Funds 25,640 89,295 63,255 62,855 62,455 239,762 183,970Interest and fiscal exp bonds 70,170 49,758 59,589 55,279 1,172,928 813,072 798,701 783,760Interest exp notes payable to MG 8,624 11,335 9,969 8,624 7,206 5,709 4,130 2,464Depreciation106,461 142,927 152,018 497,472 497,472 497,472 497,472 511,109Subtotal Fixed Expenses 320,331 338,602 537,945 892,381 2,016,244 1,662,764 1,832,643 1,782,658 Total Expense 706,644 694,963 1,602,594 2,822,850 4,243,664 4,193,225 4,456,021 4,504,813 CHANGE IN NET POSITION 190,696 564,118 8,087,771 3,103,341 4,321,166 1,899,707 1,697,003 1,739,555 Net Position, January 1 4,637,901 4,251,080 4,815,198 12,902,969 16,006,310 20,327,476 22,227,184 23,924,186Prior Period Adjustment (577,517)Net Position, December 31 4,251,080 4,815,198 12,902,969 16,006,310 20,327,476 22,227,184 23,924,186 25,663,741 Prior Year Actuals Projected 52 Financial Plans Table 14 Page 2 of 2 of Table 14 City of Corcoran Water Fund Financial PlanCurrent Year 2020 2021 2022 2023 2024 2025 2026 2027 Prior Year Actuals Projected ASSETS Cash 4,254,564 3,432,211 10,785,044 11,513,321 15,832,862 17,759,599 19,467,280 20,426,516Accounts receivable 16,623 100,663 20,000 20,000 20,000 20,000 20,000 20,000Special assessments receivable 222,703 192,662 154,647 116,632 78,617 40,602Other current assets 2,396 2,430 2,000 2,000 2,000 2,000 2,000 2,000Capital assets 4,454,478 4,596,291 5,096,291 24,096,291 24,096,291 24,096,291 24,096,291 24,846,291Less accumulated depreciation (522,297)(665,225)(817,243)(1,314,715)(1,812,188)(2,309,660)(2,807,133)(3,318,242)Total Assets 8,428,467 7,659,032 15,240,740 34,433,529 38,217,583 39,608,831 40,778,438 41,976,565 LIABILITIESAccounts payable 307,731 42,763 10,000 10,000 10,000 10,000 10,000 10,000 Other liabilities / Due to Other Govts 1,219,072 260,328 15,000 15,000 15,000 15,000 15,000 15,000 Bond premium amortized 106,426 77,086 76,386 75,686 74,986 74,286 73,586 72,886Notes payable to Maple Grove 309,158 270,057 231,384 191,233 149,520 106,162 61,066 14,138Bonds payable, net of premiums 2,235,000 2,172,500 2,005,000 18,135,300 17,640,600 17,176,200 16,694,600 16,200,800Total Liabilities 4,177,387 2,822,734 2,337,770 18,427,219 17,890,106 17,381,648 16,854,252 16,312,824 Net investment in capital assets 1,974,737 1,681,480 2,197,662 4,570,590 4,568,517 4,536,145 4,520,972 5,254,363Unrestricted net assets 2,276,343 3,133,718 10,705,307 11,435,721 15,758,959 17,691,039 19,403,214 20,409,378Total Net Position 4,251,080 4,815,198 12,902,969 16,006,310 20,327,476 22,227,184 23,924,186 25,663,741 Total Liabilities and Net Position 8,428,467 7,637,932 15,240,740 34,433,529 38,217,583 39,608,831 40,778,438 41,976,565 53 Financial Plans TABLE 15 Page 1 of 3 of Table 15 2022 2023 2024 2025 2026 2027 WATER CHARGES FOR SERVICE (REVENUE) ResidentialWater Base Charge 242,503 372,728 546,403 695,466 836,837 985,560Usage Charges:Tier 1: Water usage 0 to 4,999 gallons 150,427 231,206 339,589 431,896 520,227 611,857Tier 2: Water usage 5,000 to 8,999 gallons 33,146 50,899 74,646 95,116 114,338 134,629Tier 3: Water usage 9,000 to 19,999 gallons 8,280 12,743 18,662 23,733 28,549 33,617Tier 4: Water usage 20,000 gallons over ------Water Volume Billed 191,852 294,848 432,897 550,745 663,114 780,103 Multi-ResidentialWater Base Charge --55,594 58,385 61,298 64,358Usage ChargesTier 1: Water usage 1,000 gallons +--44,676 46,971 49,266 51,714 CommercialWater Base Charge 9,777 10,585 11,453 12,377 13,366 14,426Usage ChargesTier 1: Water usage 1,000 gallons +3,222 3,486 3,773 4,083 4,405 4,752 Other Charges Meter Charges 97,644 193,084 248,705 191,336 164,617 161,913 Total Charges for Services 544,998 874,731 1,343,499 1,559,364 1,792,903 2,062,826 City of CorcoranProjected Water Revenues 54 Financial Plans TABLE 15 Page 2 of 3 of Table 15 2022 2023 2024 2025 2026 2027 City of CorcoranProjected Water Revenues Single Family Residential 106,760 200,524 1,068,813 269,604 46,282 -Multi-Family Residential --835,400 ---Commercial/Other ------Maple Grove Connection - Residential 242,760 -----Maple Grove Connection - Commercial/Other ------ Single Family Residential 184,632 381,642 425,068 494,100 480,658 486,337Multi-Family Residential ------Commercial/Other 1,256 1,294 1,333 1,373 1,414 1,456Maple Grove Connection - Residential 419,832 867,802 966,570 1,123,524 1,092,930 1,105,841Maple Grove Connection - Commercial/Other 45,696 47,067 48,479 49,933 51,431 52,974 Northeast Corcoran / Water Availability 1,795,616 728,236 476,244 490,532 505,248 520,404Northeast Corcoran / Treatment and Storage 2,900,029 1,176,141 769,160 792,236 816,004 840,484Southeast Corcoran / Water Availability 1,650,583 744,889 1,215,843 557,826 574,560 473,438Southeast Corcoran / Treatment and Storage 1,763,881 796,017 1,299,289 596,112 613,998 505,934 Total Non-Operating Revenues 9,111,045 4,943,609 7,106,198 4,375,240 4,182,525 3,986,869 WATER NON-OPERATING (DEVELOPMENT) REVENUES Northeast Water Connection Charges (paid with building permit on per unit basis) Southeast Water Connection Charges (paid with building permit on per unit basis) Trunk Line Availability Charges (paid at time of development on per acre basis) 55 Financial Plans TABLE 15 Page 3 of 3 of Table 15 2022 2023 2024 2025 2026 2027 City of CorcoranProjected Water Revenues Charges for water usage 195,075 298,334 481,345 601,799 716,785 836,570Base service charges 252,280 383,313 613,449 766,228 911,501 1,064,343Charge for meter 97,644 193,084 248,705 191,336 164,617 161,913Total Charges for Services 544,998 874,731 1,343,499 1,559,364 1,792,903 2,062,826 Water connection charges (City)292,648 583,459 2,330,613 765,077 528,354 487,794Water connection charges (Maple Grove)708,288 914,868 1,015,049 1,173,457 1,144,361 1,158,815Total Connection Fees 1,000,936 1,498,327 3,345,662 1,938,534 1,672,715 1,646,608 Water trunk line availability charges (City)8,110,109 3,445,282 3,760,536 2,436,706 2,509,810 2,340,261 Grand Total 9,656,043 5,818,340 8,449,697 5,934,603 5,975,428 6,049,695 Details for Total Charges for Services:Residential usage and base charges 434,355 667,576 979,299 1,246,211 1,499,951 1,765,663Multi-Residential usage and base charges --100,270 105,356 110,564 116,072Commercial usage and base charges 9,777 10,585 11,453 12,377 13,366 14,426Meter charges 97,644 193,084 248,705 191,336 164,617 161,913Total Charges for Services 541,776 871,245 1,339,726 1,555,281 1,788,498 2,058,074 Total Charges for Services is calculated based on assumptions for fee schedule and customer units and volume in the Plan. SUMMARY OF REVENUE BY TYPE AND CUSTOMER CLASSIFICATION 56 Financial Plans Table 16 City of Corcoran Water Fund Source and Use of CashActual 2021 2022 2023 2024 2025 2026 2027 Use of Cash Operations & Maintenance 356,361 1,064,649 1,930,469 2,227,420 2,530,461 2,623,378 2,722,155Capital Improvements 141,813 500,000 19,000,000 ---750,000Interfund Transfers (not incl for debt)134,582 227,074 267,750 275,783 284,056 292,578 301,355Debt Service (incl transfers for debt)162,694 365,026 337,010 1,779,402 1,388,994 1,569,288 1,510,922Total Use of Cash 795,450 2,156,749 21,535,229 4,282,604 4,203,511 4,485,244 5,284,432 Source of CashCharges for services and other operating revenue 547,560 579,321 982,582 1,458,632 1,717,692 1,970,499 2,257,499Development related fees 711,521 9,111,045 4,943,609 7,106,198 4,375,240 4,182,525 3,986,869Bond Proceeds --16,300,000 ----Interfund Transfers -------Total Source of Cash 1,259,081 9,690,365 22,226,191 8,564,830 6,092,932 6,153,024 6,244,368 Net Change in Other Assets and Liabilities Contributing (Reducing) Cash (1,285,984)(180,783)37,315 37,315 37,315 39,902 (700) Change in Cash Balance (822,353)7,352,833 728,277 4,319,541 1,926,736 1,707,682 959,236 Ending Cash and Investments 3,432,211 10,785,044 11,513,321 15,832,862 17,759,599 19,467,280 20,426,516 Ending Cash by Purpose For future capital / trunk fee reserve 2,680,427 10,153,856 10,693,694 13,496,606 15,737,989 16,492,147 18,235,055For following year pay-go capital 500,000 ----750,000 -For 3-months of operating cash 89,090 266,162 482,617 556,855 632,615 655,844 680,539For following year debt service 162,694 365,026 337,010 1,779,402 1,388,994 1,569,288 1,510,922 Ending Cash and Investments 3,432,211 10,785,044 11,513,321 15,832,862 17,759,599 19,467,280 20,426,516 Page 1 57 Financial Plans Fund is projected to maintain adequate cash balance over the planning period. For purposes of the Plan, the revenue objective focused on providing revenue suf- ficient to achieve projected year-end cash balance to cover the following purposes: • Three-months of operating expense • Following-year debt service payments • Following year capital acquisition (planned to be paid from cash) • Reserves for future capital improvements and oth- er reserve purposes The Plan does not anticipate the issuance of bonds to finance sewer improvements. Expense The use of funds is to pay for the operation and capital improvements, and related debt service, for providing sewer services, including depreciation of capital as- sets. Approximately 25-30% of the Water Fund expenses are estimated to be fixed costs, this amount fluctuates somewhat from year to year and has been declining as the number of customers using the system has in- creased. The City anticipates the addition of approximately 1.61 FTE (allocated portion) over the next five years paid by the Sewer Fund. The cost of the FTE’s is in- cluded in the financial plan. Annual debt service payments on bonds issued to fi- nance sewer related improvements are supported by net revenues of the Sewer Fund. The Sewer Fund pays a portion of the debt on the 2014B Bonds. The portion SEWER FUND The Water Fund was established as a Proprietary Fund for the accounting for costs of providing municipal water services to residents and businesses. The Water Fund is considered self-supporting in that the services rendered are financed through user charges. The financial plan includes assets and liabilities in ad- dition to the revenues and expenditures. There is a capitalization of certain expenses and the subsequent depreciation of the capitalized costs. Source of Funds The source of funds are charges for services, special assessments, developer fees and payments, and bond proceeds. A schedule of fees and charges is included in an Appendix. Future growth from development, which impacts the projection of operating and non-operating revenue for the Sewer Fund, is assumed to be the following over the next decade: - Nearly 965 acres platted between 2022-2027 - 2,590 new customer units to be added between 2022-2027 Details on the estimated acres platted per year and cus- tomer units added is shown in Table 3. Development will provide increasing revenue to the Water Fund. The Plan estimates annual rate adjustments of 3.0%. The actual increase that may be needed in the future will depend on growth in customers. With proposed annual rate adjustments, the Sewer 58 Financial Plans of the 2014B Bonds payable from sewer revenues is re- ported as a liability of the Sewer Fund. In addition to this liability, the Sewer Fund transfers revenue to the Governmental Debt Service Funds to pay a portion of the 2016A Bonds. Beginning in year 2026, the Sewer Fund is also projected to begin transferring funds to pay a portion of the debt on the planned bonds for mu- nicipal facilities improvements. Depreciation is reported as an expense and is adjusted for anticipated annual depreciable capital acquisitions. For purposes of the Plan, capital is depreciated over a 55 year term. The City is planning for sewer extension project esti- mated at $10.0 million in 2027, the North Sewer Con- nection Project. The plan is to use cash to pay for this project. The exact timing will depend on growth. Transfers To and From Other Funds The Sewer Fund transfers funds annually to the Gen- eral Fund to pay for operational support. As noted above, cash from the Sewer Fund is to be transferred to the City’s Governmental Debt Service Funds to pay allocated portions of debt service. 59 Financial Plans $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Ending Cash BalanceMillionsCHART 31Sewer Fund For future capital improvements and reserves For following year pay-go capital For following year debt service For 3-months of operating cash Ending cash balance will decline as the City spends down development fees (reserves) collected to service debt issued to finance sewer improvement projects to support development 0% 50% 100% 150% 200% 250% 300% 350% 400% 450% 500% $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Ending unrestricted net position as % of expenseEnding Net PositionMillionsCHART 32Sewer Fund Ending unrestricted net position ($) Ending unrestricted net position as percent of expense (%) Sewer Fund is projected to accumulate cash from development charges to pay for future planned capital resulting in changes in net postion over time $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030MillionsCHART 33Sewer Fund Revenue Expense Revenues will exceed expenses due to the timing of collection of development related revenues and the use of these funds for capital improvements, including water treatment and storage 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 50 100 150 200 250 Volume Billed in Thousands of GallonsCHART 34Sewer Fund Volume Billed New customers to be added will increase sewer flow billed 60 Financial Plans TABLE 17 Page 1 of 2 of Table 17 City of Corcoran Sewer Fund Financial Plan Current Year202020212022 2023 2024 2025 2026 2027 REVENUECharges for services 206,037 346,950 521,664 780,108 1,223,552 1,500,240 1,752,810 2,009,185Special assessments Developer contributions (trunk line charges)2,621,370 1,128,826 1,372,443 809,170 833,450 755,436Connection fees 336,117 877,639 289,619 577,415 960,277 571,844 491,049 482,735 Connection fees payable to Met Council 334,276 576,520 576,520 1,151,820 1,486,930 1,140,510 978,950 962,221Other revenues 24,608 57,160 ------Investment income 7,496 724 15,239 37,191 42,798 61,690 74,829 87,185 Total Revenue 908,534 1,858,993 4,024,412 3,675,360 5,086,001 4,083,454 4,131,089 4,296,762 EXPENSESVariableCurrent operating expenses 28,926 72,725 74,907 144,654 230,306 260,465 279,279 299,158Current operating expenses for NE DistrictDisposal charges ($2.81 plus inflator after 2022)46,594 74,556 139,713 204,977 396,900 497,077 592,409 692,702Connections paid to Met Council 334,276 576,520 576,520 1,151,820 1,486,930 1,140,510 978,950 962,221 Subtotal Variable Expenses 409,796 723,801 791,140 1,501,451 2,114,136 1,898,052 1,850,638 1,954,080Fixed Transfer to General Fund 109,436 134,582 227,074 267,750 275,783 284,056 292,578 301,355Transfer to Debt Service Funds 39,440 89,787 55,347 54,747 54,097 219,597 201,520Interest expense on bonds 44,373 42,113 36,536 34,396 32,183 29,858 27,460 25,025Depreciation208,951 208,951 208,951 227,133 227,133 227,133 227,133 408,951Subtotal Fixed Expenses 402,200 385,646 562,348 584,626 589,845 595,144 766,767 936,851 Total Expense 811,996 1,109,447 1,353,488 2,086,077 2,703,981 2,493,196 2,617,405 2,890,932 CHANGE IN NET POSITION 96,538 749,546 2,670,925 1,589,283 2,382,020 1,590,258 1,513,683 1,405,830 Net Position, January 1 5,422,429 5,518,967 6,268,513 8,939,438 10,528,721 12,910,741 14,500,999 16,014,682 Net Position, December 31 5,518,967 6,268,513 8,939,438 10,528,721 12,910,741 14,500,999 16,014,682 17,420,512 ProjectedPrior Year Actuals 61 Financial Plans TABLE 17 Page 2 of 2 of Table 17 City of Corcoran Sewer Fund Financial Plan Current Year202020212022 2023 2024 2025 2026 2027 ProjectedPrior Year Actuals ASSETSCash 1,243,873 2,031,865 4,958,798 5,706,421 8,225,274 9,977,217 11,624,633 3,348,213Accounts receivable 25,194 125,010 20,000 20,000 20,000 20,000 20,000 20,000Special assessments receivable 55,676 48,166 36,659 25,152 25,152Other current assets 599 12,074 2,000 2,000 2,000 2,000 2,000 2,000Capital assets 6,395,158 6,395,158 6,395,158 7,395,158 7,395,158 7,395,158 7,395,158 17,395,158 Less accumulated depreciation (700,274)(909,226)(1,118,177)(1,345,310)(1,572,443)(1,799,575)(2,026,708) (2,435,659)Total Assets 7,020,226 7,703,047 10,294,438 11,803,421 14,095,141 15,594,799 17,015,082 18,329,712 LIABILITIESAccounts payable 85,554 640 85,000 85,000 85,000 85,000 85,000 85,000Other liabilities 18,677 114,947 20,000 20,000 20,000 20,000 20,000 20,000Bond premium amortized (12,972)(13,553)Bonds payable, net of premiums 1,410,000 1,332,500 1,250,000 1,169,700 1,079,400 988,800 895,400 804,200Total Liabilities 1,501,259 1,434,534 1,355,000 1,274,700 1,184,400 1,093,800 1,000,400 909,200 Net investment in capital assets 4,297,856 4,166,985 4,026,981 4,880,148 4,743,315 4,606,783 4,473,050 14,155,299Unrestricted net assets 1,221,111 2,101,528 4,912,457 5,648,573 8,167,426 9,894,217 11,541,633 3,265,213Total Net Position 5,518,967 6,268,513 8,939,438 10,528,721 12,910,741 14,500,999 16,014,682 17,420,512 Total Liabilities and Net Position 7,020,226 7,703,047 10,294,438 11,803,421 14,095,141 15,594,799 17,015,082 18,329,712 62 Financial Plans Table 18 Page 1 of 2 of Table 18 2021 2022 2023 2024 2025 2026 2027 SEWER CHARGES FOR SERVICES Residential Sewer Base Charge $258,733 $347,980 $524,659 $754,527 $941,897 $1,111,885 $1,284,644Usage Charges:Tier 1: Sewer volume $117,974 $158,807 $239,604 $344,514 $429,624 $507,775 $586,843 Multi-ResidentialSewer Base Charge $0 $0 $0 $76,770 $79,073 $81,445 $83,888Usage ChargesTier 1: Sewer volume $0 $0 $0 $30,929 $31,824 $32,819 $33,813Sewer Volume Billed $0 $0 $0 $30,929 $31,824 $32,819 $33,813 CommercialSewer Base Charge $10,781 $11,351 $12,058 $12,795 $13,566 $14,373 $15,216Usage ChargesTier 1: Water usage 1,000 gallons +$3,381 $3,526 $3,787 $4,018 $4,256 $4,514 $4,780 Total Charges for Services $390,869 $521,664 $780,108 $1,223,552 $1,500,240 $1,752,810 $2,009,185 Single Family Residential $108,745 $105,655 $198,447 $323,082 $81,498 $13,990 $0Multi-Residential $0 $0 $0 $215,212 $0 $0 $0Commercial/Other $0 $0 $0 $0 $0 $0 $0MCES connection charge (per unit)$226,135 $211,225 $396,738 $645,918 $162,930 $27,970 $0 Single Family Residential $167,300 $182,721 $377,689 $420,665 $488,988 $475,660 $481,294Multi-Residential $0 $0 $0 $0 $0 $0 $0Commercial/Other $1,195 $1,243 $1,280 $1,319 $1,358 $1,399 $1,441MCES connection charge (per unit)$347,900 $365,295 $755,082 $841,012 $977,580 $950,980 $962,221 Corcoran (NE and SE)$555,135 $2,621,370 $1,128,826 $1,372,443 $809,170 $833,450 $755,436 Total Non-Operating Revenues $1,406,410 $3,487,509 $2,858,061 $3,819,650 $2,521,524 $2,303,449 $2,200,392 City of CorcoranProjected Sewer Revenues Northeast Sewer Connection Charges (paid with building permit on per unit basis) Southeast Sewer Connection Charges (paid with building permit on per unit basis) Trunk Line Availability Charges (paid at time of development on per acre basis) SEWER NON-OPERATING (DEVELOPMENT) REVENUES 63 Financial Plans Table 18 Page 2 of 2 of Table 18 2021 2022 2023 2024 2025 2026 2027 City of CorcoranProjected Sewer Revenues Charges for sewer volume $121,355 $162,333 $243,391 $379,461 $465,704 $545,108 $625,437Base service charges $269,514 $359,331 $536,717 $844,091 $1,034,536 $1,207,702 $1,383,748Total Charges for Services $390,869 $521,664 $780,108 $1,223,552 $1,500,240 $1,752,810 $2,009,185 Sewer connection charges (City)$277,240 $289,619 $577,415 $960,277 $571,844 $491,049 $482,735Sewer connection charges (MCES)$574,035 $576,520 $1,151,820 $1,486,930 $1,140,510 $978,950 $962,221Total Connection Charges $851,275 $866,139 $1,729,235 $2,447,207 $1,712,354 $1,469,999 $1,444,956 Sewer trunk line availability charges $555,135 $2,621,370 $1,128,826 $1,372,443 $809,170 $833,450 $755,436 Grand Total $1,223,244 $3,432,653 $2,486,349 $3,556,273 $2,881,255 $3,077,309 $3,247,356 Residential usage and base charges $376,708 $506,787 $764,263 $1,099,041 $1,371,521 $1,619,660 $1,871,487Multi-Residential usage and base charges $0 $0 $0 $107,699 $110,897 $114,264 $117,701Commercial usage and base charges $14,161 $14,877 $15,845 $16,813 $17,822 $18,887 $19,996Total Charges for Services $390,869 $521,664 $780,108 $1,223,552 $1,500,240 $1,752,810 $2,009,185 SUMMARY OF REVENUE BY TYPE AND CUSTOMER CLASSIFICATION 64 Financial Plans Table 19 Sewer Fund Projected Year End Cash Balance Actual 2021 2022 2023 2024 2025 2026 2027 Use of Cash: Operations & Maintenance 709,506 973,419 1,507,687 2,121,568 1,905,676 2,024,659 1,944,781Capital Improvements --1,000,000 ---10,000,000Interfund Transfers (not incl for debt)109,436 134,582 227,074 267,750 275,783 284,056 292,578Debt Service (incl transfers for debt)159,053 119,036 204,483 177,830 175,205 174,957 335,822Total Use of Cash 977,995 1,227,037 2,939,244 2,567,148 2,356,663 2,483,673 12,573,181 Source of Cash: Charges for services and other operating revenue 404,834 536,903 817,299 1,266,351 1,561,930 1,827,640 2,096,370Development related fees 1,454,159 3,487,509 2,858,061 3,819,650 2,521,524 2,303,449 2,200,392Bond Proceeds -------Interfund Transfers -------Total Source of Cash 1,858,993 4,024,412 3,675,360 5,086,001 4,083,454 4,131,089 4,296,762 Net Change in Other Assets and Liabilities Increasing/(Reducing) Cash (93,006)129,557 11,507 -25,152 -- Beginning Cash Balance 1,243,873 2,031,865 4,958,798 5,706,421 8,225,274 9,977,217 11,624,633 Change in Cash Balance 787,992 2,926,933 747,623 2,518,853 1,751,943 1,647,416 (8,276,419)Ending Cash and Investments 2,031,865 4,958,798 5,706,421 8,225,274 9,977,217 11,624,633 3,348,213 Ending Cash by Purpose For future capital / trunk fee reserve 1,695,435 3,596,407 5,125,016 7,517,052 9,325,592 943,510 2,526,196For following year pay-go capital -1,000,000 ---10,000,000 -For 3-months of operating cash 177,377 243,355 376,922 530,392 476,419 506,165 486,195For following year debt service 159,053 119,036 204,483 177,830 175,205 174,957 335,822Ending Cash and Investments 2,031,865 4,958,798 5,706,421 8,225,274 9,977,217 11,624,633 3,348,213 65 Appendix Appendix Table A Page 1 of 3 for Table A City of Corcoran Fees and Charges 2021 2022 2023 2024 2025 2026 2027 Annual % adjustment to base and usage Water fees:5.0%5.0%5.0%5.0%5.0% Annual % adjustment to base and usage Sewer fees:3.0%3.0%3.0%3.0%3.0% Annual % adjustment to Water connection fee:3.0%3.0%3.0%3.0%3.0% Annual % adjustment to Sewer connection fee:3.0%3.0%3.0%3.0%3.0% Annual % adjustment to Southeast Water TLAC fee:3.0%3.0%3.0%3.0%3.0% Annual % adjustment to Northeast Water TLAC fee:3.0%3.0%3.0%3.0%3.0% Annual % adjustment to Sewer TLAC fee:3.0%3.0%3.0%3.0%3.0% RESIDENTIAL Water Base Charge $20.00 $20.60 $21.63 $22.71 $23.85 $25.04 $26.29 Sewer Base Charge $28.98 $29.56 $30.45 $31.36 $32.30 $33.27 $34.27 Usage Charges Tier 1: Water usage 0 to 4,999 gallons $2.14 $2.20 $2.31 $2.43 $2.55 $2.68 $2.81 Tier 2: Water usage 5,000 to 8,999 gallons $2.57 $2.65 $2.78 $2.92 $3.07 $3.22 $3.38 Tier 3: Water usage 9,000 to 19,999 gallons $3.21 $3.31 $3.48 $3.65 $3.83 $4.02 $4.22 Tier 4: Water usage 20,000 gallons over $4.28 $4.28 $4.49 $4.71 $4.95 $5.20 $5.46 Sewer (sewer based on winter water usage) per 1,000 gallons $2.87 $2.93 $3.02 $3.11 $3.20 $3.30 $3.40 MULTI-RESIDENTIAL (7+Units) Water Base Charge $20.00 $20.60 $21.63 $22.71 $23.85 $25.04 $26.29 Sewer Base Charge $28.98 $29.56 $30.45 $31.36 $32.30 $33.27 $34.27 Usage Charges Tier 1: Water usage $2.14 $2.65 $2.78 $2.92 $3.07 $3.22 $3.38 Sewer (sewer based on winter water usage) per 1,000 gallons $2.87 $2.90 $3.02 $3.11 $3.20 $3.30 $3.40 NON-RESIDENTIAL Water Base Charge (Less 3" Meter)$24.72 $25.46 $26.73 $28.07 $29.47 $30.94 $32.49 Sewer Base Charge $28.98 $29.56 $30.45 $31.36 $32.30 $33.27 $34.27 Usage Charges Tier 1: Water usage 1,000 gallons +$2.57 $2.65 $2.78 $2.92 $3.07 $3.22 $3.38 Sewer per 1,000 gallons $2.87 $2.90 $3.02 $3.11 $3.20 $3.30 $3.40 66 Appendix Appendix Table A Page 2 of 3 for Table A City of Corcoran Fees and Charges 2021 2022 2023 2024 2025 2026 2027 Maple Grove Water Usage Charge per 1,000 gallons $2.14 $2.25 $2.36 $2.48 $2.60 $2.73 $2.87 Meter Charge (Cost Plus 10%)$400 $412 $424 $437 $450 $464 $478 CONNECTION CHARGES Sewer Connection Charges Single Family Residential $1,195 $1,243 $1,280 $1,319 $1,358 $1,399 $1,441 Multi-Residential (7+Units)$955 $995 $1,024 $1,055 $1,087 $1,119 $1,153 Non-Residential $1,195 $1,243 $1,280 $1,319 $1,358 $1,399 $1,441 MCES connection charge (per unit)$2,485 $2,485 $2,560 $2,636 $2,716 $2,797 $2,881 Water Connection Charges Northeast Corcoran Single Family Residential Connection $1,219 $1,256 $1,294 $4,363 $4,493 $4,628 $4,767 Multi-Residential Connection $975 $1,004 $1,034 $4,095 $4,218 $4,345 $4,475 Non-Residential Connection $1,219 $1,256 $1,294 $13,452 $13,856 $14,272 $14,700 Maple Grove Residential Connection $2,720 $2,856 $2,942 Maple Grove Commercial/Other Connection $10,880 $11,424 $11,767 Southeast Corcoran Single Family Residential Connection $1,195 $1,256 $1,294 $1,333 $1,373 $1,414 $1,456 Multi- Residential Connection $955 $1,004 $1,034 $1,066 $1,098 $1,131 $1,165 Non-Residential Connection $1,195 $1,256 $1,294 $1,333 $1,373 $1,414 $1,456 Maple Grove Residential Connection $2,591 $2,856 $2,942 $3,030 $3,121 $3,215 $3,311 Maple Grove Commercial/Other Connection $10,364 $11,424 $11,767 $12,120 $12,483 $12,858 $13,244 OTHER FEES 67 Appendix Appendix Table A Page 3 of 3 for Table A City of Corcoran Fees and Charges 2021 2022 2023 2024 2025 2026 2027 AVAILABILITY CHARGES* Sewer availability charge per acre of land $7,189 $7,405 $7,627 $7,856 $8,092 $8,335 $8,585 Northeast Corcoran* Watermain & Raw Water - Trunk Line Availability Charge (TLAC) - per acre: Northeast $16,789.00 $11,222.60 $11,559.30 $11,906.10 $12,263.30 $12,631.20 $13,010.10 Treatment & Storage - Trunk Line Availability Charge (TLAC) - per acre: Northeast $18,125.18 $18,668.90 $19,229.00 $19,805.90 $20,400.10 $21,012.10 Southeast Corcoran* Watermain & Raw Water - Trunk Line Availability Charge (TLAC) - per acre: Southeast $7,475.00 $8,508.16 $8,763.40 $9,026.30 $9,297.10 $9,576.00 $9,863.30 Treatment & Storage - Trunk Line Availability Charge (TLAC) - per acre: Southeast $9,092.17 $9,364.90 $9,645.80 $9,935.20 $10,233.30 $10,540.30 Notes to Table A: 3. This schedule does not include all city fees for water and sewer. For purpose of financial planning, the schedule only includes fees for the most frequent and material sources of revenue to the City. 1. Fee schedule is based on Corcoran constructing its own water system to serve northeast Corcoran beginning in year 2023. Changes to northeast water connection charges are based on this assumption. 2. After year 2030, for purposes of preparing financial plans, it is assumed that rates continue to be adjusted by the same percentage changes shown in year 2024. * Prior to 5/12/2022, the City had just one TLAC charge for water trunk line availablity. Effective 5/12/2022, the City adjusted the amount charged for availability of water services to include two separate charges, as described here. In addition, effective 5/12/2022, at time of adopting a new "Treatment & Storage" charge, the City adopted adjustments to the amount charged for Watermain & Raw Water TLAC. The amounts shown for year 2022 reflect the rates as of of 5/12/2022. 68 Appendix Appendix Table B Combined Total Levy Collection Year EXISTING 2016A Bonds - Equipment EXISTING 2018A Bonds - Equipment Portion EXISTING 2020 Bonds - Equipment EXISTING 2022 Bonds - Equipment NEW 2024 Bonds - Equipment NEW 2026 Bonds - Equipment Subtotal EXISTING G.O. 2012B CIP Bonds, Refunded with 2020B EXISTING 2018A Bonds - Abatement (Parks) NEW 2023A for Street and Park improvement s NEW 2026A Bonds for Municipal Building Subtotal Total Estimated Levy (with coverage) 2 2022 39,690 81,323 104,475 ---225,488 222,485 111,746 --334,231 559,718202338,955 79,275 102,690 249,624 --470,544 224,375 109,384 --333,758 804,302202438,220 82,478 106,155 247,734 --474,586 231,410 107,021 254,598 -593,028 1,067,615202537,485 80,273 104,265 250,884 261,660 -734,566 232,985 109,909 877,590 -1,220,483 1,955,0502026-78,068 102,375 248,364 259,560 235,620 923,987 234,455 107,389 876,808 1,076,600 2,295,251 3,219,238202781,113 105,735 250,884 262,500 262,290 962,522 235,820 110,119 880,493 1,357,272 2,583,704 3,546,2252028103,740 252,984 265,020 265,440 887,184 231,830 107,441 877,685 1,361,472 2,578,427 3,465,6122029101,745 249,414 261,870 262,920 875,949 238,340 110,014 878,756 1,360,464 2,587,573 3,463,5222030-250,884 263,760 265,440 780,084 241,490 107,084 883,460 1,362,816 2,594,849 3,374,9342031-249,047 265,230 262,290 776,567 244,157 109,405 886,276 1,359,960 2,599,797 3,376,3642032--261,030 264,180 525,210 246,761 111,563 887,127 1,360,464 2,605,914 3,131,1242033--256,620 265,650 522,270 249,076 108,281 885,932 1,364,160 2,607,449 3,129,7192034---266,700 266,700 246,073 -893,114 1,362,480 2,501,667 2,768,3672035---262,080 262,080 247,858 892,366 1,363,992 2,504,216 2,766,2962036-----254,814 894,695 1,364,328 2,513,837 2,513,8372037-----261,366 894,537 1,363,488 2,519,391 2,519,3912038------876,070 1,365,672 2,241,742 2,241,7422039-------1,366,512 1,366,512 1,366,5122040-------1,366,008 1,366,008 1,366,0082041-------1,368,360 1,368,360 1,368,3602042-------1,369,200 1,369,200 1,369,2002043-------1,368,528 1,368,528 1,368,5282044-------1,370,544 1,370,544 1,370,5442045-------1,370,880 1,370,880 1,370,8802046-------1,373,736 1,373,736 1,373,7362047-------1,374,744 1,374,744 1,374,7442048-------1,373,904 1,373,904 1,373,9042049-------1,375,416 1,375,416 1,375,4162050-------1,349,712 1,349,712 1,349,712Total262,079 723,503 932,085 2,249,822 2,357,250 2,612,610 9,381,348 4,527,472 1,637,769 12,639,505 33,850,712 52,655,458 62,036,806 Notes: 2/ The 2018A Bonds includes tax abatement levy. City of Corcoran Property Tax Levy Planned for Debt Service 1/ The tax levy amounts above include the 5% overlevy (for delinquent property taxes). Debt Service Levy for Equipment Debt Service Levy for Facilities, Parks, and Street Improvements (Includes Tax Abatement) 69 Appendix APPENDIX TABLE C Planned Staffing Additions and Changes YEAR DESCRIPTION FTE AMOUNT GENERAL FUND WATER FUND SEWER FUND 2023 PT Rec. Prog. (increase to .46 FTE)0.21 $10,000 $10,000 $0 $02023Planning Admin. Asst. (move to FT)0.50 $50,000 $50,000 $0 $02023Police Officer 1.00 $130,000 $130,000 $0 $02023Police Officer 0.25 $35,000 $35,000 $0 $02023PT CSO (increase to 1.25 FTE)0.25 $6,000 $6,000 $0 $02023Fire Commander 0.25 $26,000 $26,000 $0 $02023PW Utility Supt.1.00 $135,000 $0 $67,500 $67,5002023 Total 3.46 $392,000 $257,000 $67,500 $67,5002024Fire Commander 0.75 $140,000 $140,000 $0 $02024.75 of the 2nd Police Officer Hire 0.75 $100,000 $100,000 $0 $02024IT Manager 1.00 $133,000 $116,375 $8,313 $8,3132024Rec. Prog. (increase to .75 FTE)0.50 $26,000 $26,000 $0 $02024PT PD Records Tech 0.50 $30,000 $30,000 $0 $02024Fire Inspector 1.00 $100,000 $100,000 $0 $02024Planner 2 1.00 $115,000 $115,000 $0 $02024PW Water Treatment Operator 1.00 $115,000 $0 $57,500 $57,5002024PW Maintenance Worker 1.00 $105,000 $84,000 $10,500 $10,5002024Communications Assistant to FT 0.50 $50,000 $40,000 $5,000 $5,0002024 Total 8.00 $914,000 $751,375 $81,313 $81,3132025Finance Director (enhanced role)$20,000 $16,000 $2,000 $2,0002025Accountant1.00 $105,000 $73,500 $15,750 $15,7502025PW Mechanic 1.00 $110,000 $99,000 $5,500 $5,5002025CSO (change to FT with PT)0.25 $21,000 $21,000 $0 $02025PT Fire Duty Crew 2.00 $200,000 $200,000 $0 $02025PW Parks Supervisor 1.00 $137,000 $137,000 $0 $02025Police Officer 1.00 $125,000 $125,000 $0 $02025Police Officer 1.00 $125,000 $125,000 $0 $02025Senior Planner 1.00 $130,000 $130,000 $0 $02025 Total 8.25 $973,000 $926,500 $23,250 $23,2502026PW Maintenance Worker 1.00 $110,000 $88,000 $11,000 $11,0002026Police Lieutenant 1.00 $150,000 $150,000 $0 $02026Drug Task Force 1.00 $137,000 $137,000 $0 $02026Human Resources Manager 1.00 $137,000 $137,000 $0 $02026PD Records Tech (move to FT)0.50 $55,000 $55,000 $0 $02026 Total 4.50 $589,000 $567,000 $11,000 $11,0002027Police Officer 1.00 $130,000 $130,000 $0 $02027PW Maintenance Worker 1.00 $115,000 $92,000 $11,500 $11,5002027 Total 2.00 $245,000 $222,000 $11,500 $11,500 Grand Total 26.21 $3,113,000 $2,723,875 $194,563 $194,563 Note: This is a listing of all identified positions and costs included in the Plan. The timing and actual positions to be added in future years will be managed within the available resources and may be different in positions, timing, and amounts as shown here. Northland Securities, Inc.150 South Fifth Street , Suite 3300Minneapolis, MN 55402 Toll Free 1-800-851-2920 Main 612-851-5900www.northlandsecurities.comMember FINRA and SIPC | Registered with SEC and MSRB City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 6 of 7 ATTACHMENT A Parcel A: The West 561.81 feet of the Southwest Quarter of the Southeast Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, EXCEPT that part taken for State Highway No. 55. And That part of the Southeast Quarter of the Southwest Quarter of said Section 32 described as follows: Commencing at a point on the west line of said Southeast Quarter of the Southwest Quarter a distance of 455.00 feet South of the northwest corner thereof; thence East parallel with the north line of said Southeast Quarter of the Southwest Quarter a distance of 240.00 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 265.00 feet to the actual point of beginning of the tract of land to be herein described; thence North parallel with said west line a distance of 30.00 feet; thence East parallel with said north line 253.04 feet, more or less, to a line drawn parallel with and distant 1155.00 feet East of said west line; thence North parallel with said west line 365.00 feet to said north line; thence East along said north line a distance of 172.55 feet, more or less, to the northeast corner of said Southeast Quarter of the Southwest Quarter; thence South along the east line thereof to the southeast corner of said Southeast Quarter of the Southwest Quarter; thence West along the south line thereof to a line drawn parallel with said west line from the actual point of beginning; thence North parallel with said west line to the actual point of beginning. EXCEPT that part thereof lying within a radius of 60.00 feet of the actual point of beginning. Also EXCEPT that part taken for State Highway No. 55. Parcel B: That part of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of said Southeast Quarter of the Southwest Quarter a distance of 455.0 feet South of the Northwest corner thereof; thence East parallel with the North line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter a distance of 240.0 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 131.21 feet to the actual point of beginning of the tract of land to be herein described; thence continue East along last mentioned line a distance of 133.79 feet to a point hereafter known as Point A; thence South parallel with said West line a distance of 362.0 feet to a line City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 7 of 7 drawn parallel with and 757.0 feet South of said North line; thence West parallel with said North line a distance of 133.79 feet to a line drawn parallel with said West line from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Except the Northerly 30.0 feet thereof. Also except that part thereof lying within a radius of 60.0 feet of Point A, described above. Parcel C: That part of the West 901.96 feet of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail. Except for the North 757.00 feet thereof. Also except the right of way for State Highway Number 55. And also except any part thereof contained within the description of the land in the Contract for Deed recorded November 6, 1996 in the office of the Hennepin County Recorder as Document No. 6658801. Also that part of the Southwest Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail and lying South of the North 757.00 feet thereof. ABSTRACT PROPERTY Page 1 of 2 STAFF REPORT Agenda Item: 8a. City Council Meeting: January 26, 2023 Prepared By: Nicholas Ouellette through Kendra Lindahl Topic: Rezoning, Preliminary Planned Unit Development (PUD) Plan and Preliminary Plat for “Pioneer Trail Industrial Park” (PIDs 32-119-23-34-0013, 32-119-23-34-0007, 32-119-23- 43-0005 and 32-119-23-43-0006) (City file no. 22-039) Action Required: Approval Review Deadline: March 1, 2023 1. Request The applicant, Joseph Radach of Contour Development LLC, has submitted a request for review of a rezoning to planned unit development (PUD), preliminary PUD plan and preliminary plat to develop a five- lot industrial park. Key application materials are attached as part of this packet; however, due to size limitations not every item is included. The complete application is available at city hall. 2.Background On January 12, 2023, the City Council tabled this item. A link to review the January 12, 2023 City Council packet is available here: https://www.corcoranmn.gov/common/pages/DisplayFile.aspx?itemId=19248442 3.Recommendation Move to adopt the following, as recommended by the Planning Commission: a.Ordinance 2023-477 approving rezoning b.Resolution 2023-02 with findings of fact for rezoning c.Resolution 2023-03 approving preliminary PUD (which includes amendments made by the City Council on January 12, 2023) d.Resolution 2023-04 approving preliminary plat Figure A: Site Location Page 2 of 2 Attachments 1. Ordinance 2023-477 Approving Rezoning 2. Resolution 2023-02 with Findings of Fact for Rezoning 3. Resolution 2023-03 Approving the Preliminary PUD Plan 4. Resolution 2023-04 Approving the Preliminary Plat 5. Resolution 2023-02 Denying the Request City of Corcoran January 26, 2023 County of Hennepin State of Minnesota ORDINANCE NO. 2023-477 Page 1 of 3 Motion By: Seconded By: AN ORDINANCE AMENDING TITLE X (ZONING ORDINANCE) OF THE CITY CODE TO CLASSIFY CERTAIN LAND LOCATED AT 6210 PIONEER TRAIL (PID 32-119-23-34-0013, 32-119-23-34-0007, 32-119-23-43-0005 AND 32-119-23-43-0006) (CITY FILE NO. 22-039) THE CITY OF CORCORAN ORDAINS: Section 1. Amendment of the City Code. Title X of the City Code of the City of Corcoran, Minnesota, is hereby amended by changing the classification of the City of Corcoran Zoning Map from Light Industrial (I-1) and Urban Reserve (UR) to Planned Unit Development (PUD), legally described as follows: See Attachment A Section 2. This amendment shall take effect upon adoption of the resolution approving the final PUD plan for this project. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee - Mayor ATTEST: ____________________________________ City Seal Michelle Friedrich – City Clerk City of Corcoran January 26, 2023 County of Hennepin State of Minnesota ORDINANCE NO. 2023-477 Page 2 of 3 ATTACHMENT A Parcel A: The West 561.81 feet of the Southwest Quarter of the Southeast Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, EXCEPT that part taken for State Highway No. 55. And That part of the Southeast Quarter of the Southwest Quarter of said Section 32 described as follows: Commencing at a point on the west line of said Southeast Quarter of the Southwest Quarter a distance of 455.00 feet South of the northwest corner thereof; thence East parallel with the north line of said Southeast Quarter of the Southwest Quarter a distance of 240.00 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 265.00 feet to the actual point of beginning of the tract of land to be herein described; thence North parallel with said west line a distance of 30.00 feet; thence East parallel with said north line 253.04 feet, more or less, to a line drawn parallel with and distant 1155.00 feet East of said west line; thence North parallel with said west line 365.00 feet to said north line; thence East along said north line a distance of 172.55 feet, more or less, to the northeast corner of said Southeast Quarter of the Southwest Quarter; thence South along the east line thereof to the southeast corner of said Southeast Quarter of the Southwest Quarter; thence West along the south line thereof to a line drawn parallel with said west line from the actual point of beginning; thence North parallel with said west line to the actual point of beginning. EXCEPT that part thereof lying within a radius of 60.00 feet of the actual point of beginning. Also EXCEPT that part taken for State Highway No. 55. Parcel B: That part of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of said Southeast Quarter of the Southwest Quarter a distance of 455.0 feet South of the Northwest corner thereof; thence East parallel with the North line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter a distance of 240.0 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 131.21 feet to the actual point of beginning of the tract of land to be herein described; thence continue East along last mentioned line a distance of 133.79 feet to a point hereafter known as Point A; thence South parallel with said West line a distance of 362.0 feet to a line City of Corcoran January 26, 2023 County of Hennepin State of Minnesota ORDINANCE NO. 2023-477 Page 3 of 3 drawn parallel with and 757.0 feet South of said North line; thence West parallel with said North line a distance of 133.79 feet to a line drawn parallel with said West line from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Except the Northerly 30.0 feet thereof. Also except that part thereof lying within a radius of 60.0 feet of Point A, described above. Parcel C: That part of the West 901.96 feet of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail. Except for the North 757.00 feet thereof. Also except the right of way for State Highway Number 55. And also except any part thereof contained within the description of the land in the Contract for Deed recorded November 6, 1996 in the office of the Hennepin County Recorder as Document No. 6658801. Also that part of the Southwest Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail and lying South of the North 757.00 feet thereof. ABSTRACT PROPERTY City of Corcoran January 26, 2023 County of Hennepin State of Minnesota ORDINANCE NO. 2023-02 Page 1 of 4 Motion By: Seconded By: APPROVING FINDINGS OF FACT FOR REZONING FOR THE PROPERTIES LOCATED AT 6210 PIONEER TRAIL (PID 32-119-23-34-0013, 32-119-23-34-0007, 32-119-23-43-0005 AND 32-119-23-43-0006) (CITY FILE NO. 22-039) WHEREAS, Contour Development, LLC, (the “applicant”) has requested approval to rezone 56.86 acres legally described as follows: See Attachment A WHEREAS, the Planning Commission has reviewed the request at a duly called Public Hearing, and; WHEREAS, the City Council has adopted an ordinance rezoning the affected parcels from Light Industrial (I-1) and Urban Reserve (UR) to Planned Unit Development (PUD); NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORCORAN, MINNESOTA, that it should and hereby does support the request for reclassification of the property, based on the following findings and conditions: 1. The planned development is not in conflict with the Comprehensive Plan. The proposed development is guided for industrial development as proposed. The plan develops the site in advance of municipal services being able to service the area; however, utility corridors for the future services will be dedicated to the City by the applicant. 2. The planned development is not in conflict with the intent of the underlying zoning district. Three parcels are zoned I-1 district and the smallest parcel is zoned UR district. The proposed development is not in conflict with the intent of the zoning district. 3. The planned development is not in conflict with other applicable provisions of the City’s Zoning Ordinance, except that PUD flexibility is requested as noted in the staff report. The PUD allows the applicant to request flexibility from the performance standards in the ordinance in exchange for a high-quality development than might otherwise be expected. 4. The planned development or unit thereof is of sufficient size, composition, and arrangement that its construction, marketing, and/or operation is feasible as a complete unit without dependence upon any other subsequent unit or phase. The Pella and Park Place Storage projects will begin construction this year and the remaining three lots will be developed in future phases. 5. The planned development will not create an excessive burden on parks, schools, streets and other public facilities and utilities which serve or are proposed to serve the planned development. The developer is providing sidewalks consistent with the City’s Comprehensive Plan. The developer is also constructing a new street to provide access to the development as required by the Southwest District Plan. Municipal sanitary sewer and water are not available to serve the site. The applicant is proposing private well and septic to serve the site until municipal services are available and has requested PUD City of Corcoran January 26, 2023 County of Hennepin State of Minnesota ORDINANCE NO. 2023-02 Page 2 of 4 flexibility to allow development in the MUSA in advance of municipal sewer and water. The applicant has provided utility corridors along 62nd Avenue to accommodate the future municipal services. 6. The planned development will not have an adverse impact on the reasonable enjoyment of the neighborhood property. The property is zoned Light Industrial. The development does comply with setback and landscape screening requirements from adjacent residential properties to the northeast and northwest. 7. The quality of the building and site design proposed by the PUD plan shall substantially enhance the aesthetics of the site, shall demonstrate higher standards, more efficient and effective uses of streets, utilities and public facilities, it shall maintain and enhance any natural resources within the development, and create a public benefit that is greater than what would have been achieved through the strict application of the primary zoning regulations. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee - Mayor ATTEST: ____________________________________ City Seal Michelle Friedrich – City Clerk City of Corcoran January 26, 2023 County of Hennepin State of Minnesota ORDINANCE NO. 2023-02 Page 3 of 4 ATTACHMENT A Parcel A: The West 561.81 feet of the Southwest Quarter of the Southeast Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, EXCEPT that part taken for State Highway No. 55. And That part of the Southeast Quarter of the Southwest Quarter of said Section 32 described as follows: Commencing at a point on the west line of said Southeast Quarter of the Southwest Quarter a distance of 455.00 feet South of the northwest corner thereof; thence East parallel with the north line of said Southeast Quarter of the Southwest Quarter a distance of 240.00 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 265.00 feet to the actual point of beginning of the tract of land to be herein described; thence North parallel with said west line a distance of 30.00 feet; thence East parallel with said north line 253.04 feet, more or less, to a line drawn parallel with and distant 1155.00 feet East of said west line; thence North parallel with said west line 365.00 feet to said north line; thence East along said north line a distance of 172.55 feet, more or less, to the northeast corner of said Southeast Quarter of the Southwest Quarter; thence South along the east line thereof to the southeast corner of said Southeast Quarter of the Southwest Quarter; thence West along the south line thereof to a line drawn parallel with said west line from the actual point of beginning; thence North parallel with said west line to the actual point of beginning. EXCEPT that part thereof lying within a radius of 60.00 feet of the actual point of beginning. Also EXCEPT that part taken for State Highway No. 55. Parcel B: That part of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of said Southeast Quarter of the Southwest Quarter a distance of 455.0 feet South of the Northwest corner thereof; thence East parallel with the North line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter a distance of 240.0 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 131.21 feet to the actual point of beginning of the tract of land to be herein described; thence continue East along last mentioned line a distance of 133.79 feet to a point hereafter known as Point A; thence South parallel with said West line a distance of 362.0 feet to a line City of Corcoran January 26, 2023 County of Hennepin State of Minnesota ORDINANCE NO. 2023-02 Page 4 of 4 drawn parallel with and 757.0 feet South of said North line; thence West parallel with said North line a distance of 133.79 feet to a line drawn parallel with said West line from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Except the Northerly 30.0 feet thereof. Also except that part thereof lying within a radius of 60.0 feet of Point A, described above. Parcel C: That part of the West 901.96 feet of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail. Except for the North 757.00 feet thereof. Also except the right of way for State Highway Number 55. And also except any part thereof contained within the description of the land in the Contract for Deed recorded November 6, 1996 in the office of the Hennepin County Recorder as Document No. 6658801. Also that part of the Southwest Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail and lying South of the North 757.00 feet thereof. ABSTRACT PROPERTY City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 1 of 7 Motion By: Seconded By: APPROVING PRELIMINARY PLANNED UNIT DEVELOPMENT PLAN FOR “PIONEER TRAIL INDUSTRIAL PARK” LOCATED AT 6210 PIONEER TRAIL (PID 32-119-23-34-0013, 32-119-23-34-0007, 32-119-23-43-0005 AND 32-119-23-43-0006) (CITY FILE NO. 22-039) WHEREAS, Contour Development, LLC, (the “applicant”) has requested approval of “Pioneer Trail Industrial Park” an industrial subdivision on property legally described as: See Attachment A WHEREAS, the Planning Commission has reviewed the plan at a duly called Public Hearing, and; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORCORAN, MINNESOTA, that the Corcoran City Council hereby approves the request for preliminary PUD plan, subject to the following conditions: 1.A preliminary planned unit development (PUD) plan is approved for “Pioneer Trail Industrial Park”, in accordance with the plans and application received by the City on June 21, 2022 and revisions received on June 23, 2022, September 20, 2022, November 1, 2022, December 1, 2022, December 5, 2022, December 12, 2022 and December 14, 2022, except as amended by this resolution. 2.The preliminary PUD plan is approved based on the finding that the proposed project is consistent with the City’s Comprehensive Plan and the PUD standards in the ordinance. 3. Approval is contingent upon City Council approval of the requested rezoning and preliminary plat (Ordinance 2023-477 and Resolution 2023-04). 4.The applicant shall comply with all requirements of the Public Safety Memo dated October 5, 2022. 5. The applicant shall comply with all requirements of the City Engineer’s memo dated November 21, 2022. 6.The applicant shall comply with all requirements of the May 26, 2022 EAW Record of Decision. 7.The applicant is subject to review and approval by Hennepin County. The applicant is required to secure all permits and approvals from the County. 8.PUD flexibility is granted for the following: a.Development in advance of City services (water and sanitary sewer) being available to serve the project. b.Reduced parking setback of 70 feet from Highway 55 where 100 feet is required. c.Reduced parking setback of 18 feet from 62nd Avenue where 50 feet is required for Lots 1, 2 and 3, Block 1 and Lots 1 and 2, Block 2. Added Packet Agenda Item: 8a. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 2 of 7 d.Reduced parking and building setback of 36 feet from 62nd Avenue for the lots north of 62nd Avenue. e.Wall signage on the north and south façade of buildings for Lots 1, 2 and 3, Block 1 where only one wall sign is allowed at the primary entrance of each tenant space, not to exceed 10% of the primary building face. The 10% wall sign area would be split between the north and south elevations. f.Reduced parking and building setback of 36 feet from 62nd Avenue for the lots north of 62nd Avenue. g.Insulated metal panels as a primary building façade for Lots 1 and 2, Block 2 north of 62nd Avenue. h.Landscape tree requirement to be applied across the whole site. i.Reduced number of landscape shrubs for Lots 1 and 2, Block 2 north of 62nd Avenue. j.Impervious area to be calculated on a project-wide basis not to exceed 80%. This will allow some lots as much 80% impervious area. k.Creation of an outlot without frontage (Outlot A for the City well site). 9.All allowed uses in the I-1 zoning district shall be permitted in this PUD, subject to the standards in Section 1040.125 of the Zoning Ordinance. a.The request for PUD flexibility for the gas station on Lot 1 is denied. b.The present plan does not meet warrants for a traffic signal without the proposed gas station. c.This is a multi-phase project and the traffic warrants will be evaluated with each phase and if warrants for the signal are met by users in this development during any phase, the applicant and/or applicant’s successors and assigns shall be responsible for the full cost of the signal. d.When municipal sanitary sewer and water become available, the users shall connect within one year in accordance with City policies. e.All sanitary sewer and water trunk line area charges (TLAC) and connection charges shall be due when the connection is made. 10.Park dedication shall be satisfied by cash-in-lieu of land for the industrial park. Park dedication be based on the park dedication ordinance in place at the time the final plat is approved for each phase. 11.Prior to submittal of the PUD final plan and final plat: a.Plans must be revised to show details for trash enclosures to ensure compliance with 1060.020 of the Zoning Ordinance. The trash enclosures must be clearly shown on the site plans. b.Plans must be revised to rename the proposed street to 62nd Avenue from Kimberly Lane. c.Plans must show mechanical equipment screening in compliance with Section 1060.030 of the Zoning Ordinance. d.Parking for Lot 2 and 3, Block 1 is granted PUD flexibility to require a minimum of one space per 2,000 sq. ft. for warehouse uses. This would require 126 parking stalls for phase 1 and II on Lot 3. Proof of parking for 46 shall be preserved. The City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 3 of 7 parking demand shall be reevaluated with the Phase II construction to ensure that adequate parking is provided. The City may require construction of the proof of parking stalls if a parking demand is documented. e. The landscape plan must be revised. The landscape plan dated November 1, 2022 provides a total of 624 overstory trees and 910 shrubs. i. The code requires 487 overstory trees and the applicant has provided 624 overstory trees. The trees are planted across the site and not all lots comply with the minimum landscaping requirements on individual lots. ii. Plans show and additional 137 trees on Lot 3, Block 1. This is a PUD benefit. iii. PUD flexibility is shown on plans allowing 117 trees required for Lot 2, Block 2 located on Lot 1, Block 2. iv. PUD flexibility is shown on plans allowing 173 shrubs for Lot 2, Block 2 where 691 shrubs are required. v. Landscaping three feet high shall be provided for parking areas with four or more stalls to screen vehicle headlights from adjacent residential and public streets. The plans must be revised to provide shrubs for all parking along the new public street (62nd Avenue). vi. Trees are proposed within the wetland buffer areas. The applicant shall specify the tree species proposed for wetland buffer areas to ensure long- term viability. vii. The final landscape details shall be provided with PUD final plan application. viii. The applicant shall provide revised plans to show wetland buffer seeding. ix. A wetland buffer planting and maintenance plan must be submitted for review and approval by the City. x. The applicant shall add a double row of landscaping and/or solid wall low- maintenance fencing on the north side of 62nd Avenue a minimum of 300 feet from Pioneer Trail to provide screening for the existing homes on Wagon Wheel. The applicant shall work with staff to shift the street south, if possible, to accommodate the landscaping. f. The applicant is encouraged to revise the plans to: i. Provide native grass landscaping in open space areas in lieu of turf grass. ii. Relocate proposed trees from where native grass landscaping is installed to areas where trees can provide more effective screening from residential properties. iii. Consider shifting the required trees away from septic systems and relocated elsewhere on site. g. Snow storage areas must be clearly shown on plans. h. A chloride management plan shall be provided. i. The applicant shall revise Pella architecture plans to clarify if the painted yellow pre- cast concrete is integrally colored. The applicant is encouraged to utilize integrally colored and other durable building materials. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 4 of 7 j. The light pole height and fixture details must be provided for freestanding and building lighting in compliance with the standards in Section 1060 of the Zoning Ordinance. k. The applicant shall provide plans showing the planned grading, utilities and landscaping to ensure no conflicts. i. The applicant shall provide plans showing how the proposed building on Lot 2, Block 1 will connect to the proposed septic drainage fields on Lot 3, Block 1. This septic connection must be protected throughout all phases of construction. l. The small utility corridor between the sidewalk and roadway along the south side of 62nd Avenue shall be relocated south of the sidewalk in front of Lot 3, Block 1. m. The stormwater management plan shall be revised to account for the added impervious surface from the Pioneer Trail turn lanes. n. The association of building owner is responsible for ensuring sidewalks in the development area and for maintenance of all common areas. Association documents must be provided for review and approval with the PUD final plan application. 12. The sidewalk shall be constructed on the south side of the street at the time a street is constructed as required by Section 945 of the City Code. 13. All permanent wetland buffer monuments must be erected along the wetland buffer line as required by Section 1050.010, Subd. 7 of the Zoning Ordinance. a. The applicant shall work with City staff to finalize the location of wetland buffer monuments. b. Wetland signs shall be purchased from the City. c. The final locations must be inspected and approved by City staff. d. Monument signs shall be installed prior to approval of the building permit. 14. Drainage and utility easements must be provided over all wetlands, wetland buffers and ponds. 15. Drainage and utility easements shall be provided along the perimeter of all lots. 16. All utility facilities shall be located underground. 17. A sign permit is required for any signage. All signage must comply with Chapter 84 of the City Code, except where PUD flexibility has been requested and granted for wall signage on Lots 1, 2 and 3, Block 1. a. Wall signs on the north, west and east sides of the building shall not be lit between 9:00 p.m. – 6:00 a.m. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 5 of 7 18. The development shall comply with the City’s requirements regarding fire access, fire protection and fire flow calculations, the location of fire hydrant, fire department connections and fire lane signage. 19. Parking shall be reviewed with building permit and must comply with ordinance standards for the proposed use, except where PUD flexibility is requested. 20. No parking shall be permitted on either side of 62nd Avenue. 21. The applicant shall document that the existing septic field and easement for Medina Electric are necessary and that the easement holder does not want the easement released. a. If the easement can be released, 62nd Avenue should extend as far east as conditions allow. b. If the easement cannot be released, additional agreements will be required for roadway encroachment into the easement. 22. The applicant must provide a temporary cul-de-sac easement for the new public street. 23. The new public street shall follow the City’s street naming policy. 24. An access easement shall be provided to Outlot A from 62nd Avenue. 25. An encroachment agreement shall be required for all site improvements or items placed within the City rights-of-way or easements. 26. The applicant must enter into a stormwater maintenance agreement prior to release of final plat. 27. The applicant shall deed Outlot A to the City. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee - Mayor ATTEST: ____________________________________ City Seal Michelle Friedrich – City Clerk City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 6 of 7 ATTACHMENT A Parcel A: The West 561.81 feet of the Southwest Quarter of the Southeast Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, EXCEPT that part taken for State Highway No. 55. And That part of the Southeast Quarter of the Southwest Quarter of said Section 32 described as follows: Commencing at a point on the west line of said Southeast Quarter of the Southwest Quarter a distance of 455.00 feet South of the northwest corner thereof; thence East parallel with the north line of said Southeast Quarter of the Southwest Quarter a distance of 240.00 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 265.00 feet to the actual point of beginning of the tract of land to be herein described; thence North parallel with said west line a distance of 30.00 feet; thence East parallel with said north line 253.04 feet, more or less, to a line drawn parallel with and distant 1155.00 feet East of said west line; thence North parallel with said west line 365.00 feet to said north line; thence East along said north line a distance of 172.55 feet, more or less, to the northeast corner of said Southeast Quarter of the Southwest Quarter; thence South along the east line thereof to the southeast corner of said Southeast Quarter of the Southwest Quarter; thence West along the south line thereof to a line drawn parallel with said west line from the actual point of beginning; thence North parallel with said west line to the actual point of beginning. EXCEPT that part thereof lying within a radius of 60.00 feet of the actual point of beginning. Also EXCEPT that part taken for State Highway No. 55. Parcel B: That part of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of said Southeast Quarter of the Southwest Quarter a distance of 455.0 feet South of the Northwest corner thereof; thence East parallel with the North line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter a distance of 240.0 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 131.21 feet to the actual point of beginning of the tract of land to be herein described; thence continue East along last mentioned line a distance of 133.79 feet to a point hereafter known as Point A; thence South parallel with said West line a distance of 362.0 feet to a line City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 7 of 7 drawn parallel with and 757.0 feet South of said North line; thence West parallel with said North line a distance of 133.79 feet to a line drawn parallel with said West line from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Except the Northerly 30.0 feet thereof. Also except that part thereof lying within a radius of 60.0 feet of Point A, described above. Parcel C: That part of the West 901.96 feet of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail. Except for the North 757.00 feet thereof. Also except the right of way for State Highway Number 55. And also except any part thereof contained within the description of the land in the Contract for Deed recorded November 6, 1996 in the office of the Hennepin County Recorder as Document No. 6658801. Also that part of the Southwest Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail and lying South of the North 757.00 feet thereof. ABSTRACT PROPERTY City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 1 of 7 Motion By: Seconded By: APPROVING PRELIMINARY PLANNED UNIT DEVELOPMENT PLAN FOR “PIONEER TRAIL INDUSTRIAL PARK” LOCATED AT 6210 PIONEER TRAIL (PID 32-119-23-34-0013, 32-119-23-34-0007, 32-119-23-43-0005 AND 32-119-23-43-0006) (CITY FILE NO. 22-039) WHEREAS, Contour Development, LLC, (the “applicant”) has requested approval of “Pioneer Trail Industrial Park” an industrial subdivision on property legally described as: See Attachment A WHEREAS, the Planning Commission has reviewed the plan at a duly called Public Hearing, and; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORCORAN, MINNESOTA, that the Corcoran City Council hereby approves the request for preliminary PUD plan, subject to the following conditions: 1. A preliminary planned unit development (PUD) plan is approved for “Pioneer Trail Industrial Park”, in accordance with the plans and application received by the City on June 21, 2022 and revisions received on June 23, 2022, September 20, 2022, November 1, 2022, December 1, 2022, December 5, 2022, December 12, 2022 and December 14, 2022, except as amended by this resolution. 2. The preliminary PUD plan is approved based on the finding that the proposed project is consistent with the City’s Comprehensive Plan and the PUD standards in the ordinance. 3. Approval is contingent upon City Council approval of the requested rezoning and preliminary plat (Ordinance 2023-477 and Resolution 2023-04). 4. The applicant shall comply with all requirements of the Public Safety Memo dated October 5, 2022. 5. The applicant shall comply with all requirements of the City Engineer’s memo dated November 21, 2022. 6. The applicant shall comply with all requirements of the May 26, 2022 EAW Record of Decision. 7. The applicant is subject to review and approval by Hennepin County. The applicant is required to secure all permits and approvals from the County. 8. PUD flexibility is granted for the following: a. Development in advance of City services (water and sanitary sewer) being available to serve the project. b. Reduced parking setback of 70 feet from Highway 55 where 100 feet is required. c. Reduced parking setback of 18 feet from 62nd Avenue where 50 feet is required for Lots 1, 2 and 3, Block 1 and Lots 1 and 2, Block 2. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 2 of 7 d. Reduced parking and building setback of 36 feet from 62nd Avenue for the lots north of 62nd Avenue. e. Wall signage on the north and south façade of buildings for Lots 1, 2 and 3, Block 1 where only one wall sign is allowed at the primary entrance of each tenant space, not to exceed 10% of the primary building face. The 10% wall sign area would be split between the north and south elevations. f. Reduced parking and building setback of 36 feet from 62nd Avenue for the lots north of 62nd Avenue. g. Insulated metal panels as a primary building façade for Lots 1 and 2, Block 2 north of 62nd Avenue. h. Landscape tree requirement to be applied across the whole site. i. Reduced number of landscape shrubs for Lots 1 and 2, Block 2 north of 62nd Avenue. j. Impervious area to be calculated on a project-wide basis not to exceed 80%. This will allow some lots as much 80% impervious area. k. Creation of an outlot without frontage (Outlot A for the City well site). 9. All allowed uses in the I-1 zoning district shall be permitted in this PUD, subject to the standards in Section 1040.125 of the Zoning Ordinance. 10. Park dedication shall be satisfied by cash-in-lieu of land for the industrial park. Park dedication be based on the park dedication ordinance in place at the time the final plat is approved for each phase. 11. Prior to submittal of the PUD final plan and final plat: a. Plans must be revised to show details for trash enclosures to ensure compliance with 1060.020 of the Zoning Ordinance. The trash enclosures must be clearly shown on the site plans. b. Plans must be revised to rename the proposed street to 62nd Avenue from Kimberly Lane. c. Plans must show mechanical equipment screening in compliance with Section 1060.030 of the Zoning Ordinance. d. Parking for Lot 2 and 3, Block 1 is granted PUD flexibility to require a minimum of one space per 2,000 sq. ft. for warehouse uses. This would require 126 parking stalls for phase 1 and II on Lot 3. Proof of parking for 46 shall be preserved. The parking demand shall be reevaluated with the Phase II construction to ensure that adequate parking is provided. The City may require construction of the proof of parking stalls if a parking demand is documented.”. e. The landscape plan must be revised. The landscape plan dated November 1, 2022 provides a total of 624 overstory trees and 910 shrubs. i. The code requires 487 overstory trees and the applicant has provided 624 overstory trees. The trees are planted across the site and not all lots comply with the minimum landscaping requirements on individual lots. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 3 of 7 ii. Plans show and additional 137 trees on Lot 3, Block 1. This is a PUD benefit. iii. PUD flexibility is shown on plans allowing 117 trees required for Lot 2, Block 2 located on Lot 1, Block 2. iv. PUD flexibility is shown on plans allowing 173 shrubs for Lot 2, Block 2 where 691 shrubs are required. v. Landscaping three feet high shall be provided for parking areas with four or more stalls to screen vehicle headlights from adjacent residential and public streets. The plans must be revised to provide shrubs for all parking along the new public street (62nd Avenue). vi. Trees are proposed within the wetland buffer areas. The applicant shall specify the tree species proposed for wetland buffer areas to ensure long- term viability. vii. The final landscape details shall be provided with PUD final plan application. viii. The applicant shall provide revised plans to show wetland buffer seeding. ix. A wetland buffer planting and maintenance plan must be submitted for review and approval by the City. x. The applicant shall add a double row of landscaping and/or solid wall low- maintenance fencing on the north side of 62nd Avenue a minimum of 300 feet from Pioneer Trail to provide screening for the existing homes on Wagon Wheel. The applicant shall work with staff to shift the street south, if possible, to accommodate the landscaping. f. The applicant is encouraged to revise the plans to: i. Provide native grass landscaping in open space areas in lieu of turf grass. ii. Relocate proposed trees from where native grass landscaping is installed to areas where trees can provide more effective screening from residential properties. iii. Consider shifting the required trees away from septic systems and relocated elsewhere on site. g. Snow storage areas must be clearly shown on plans. h. A chloride management plan shall be provided. i. The applicant shall revise Pella architecture plans to clarify if the painted yellow pre- cast concrete is integrally colored. The applicant is encouraged to utilize integrally colored and other durable building materials. j. The light pole height and fixture details must be provided for freestanding and building lighting in compliance with the standards in Section 1060 of the Zoning Ordinance. k. The applicant shall provide plans showing the planned grading, utilities and landscaping to ensure no conflicts. i. The applicant shall provide plans showing how the proposed building on Lot 2, Block 1 will connect to the proposed septic drainage fields on Lot 3, Block City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 4 of 7 1. This septic connection must be protected throughout all phases of construction. l. The small utility corridor between the sidewalk and roadway along the south side of 62nd Avenue shall be relocated south of the sidewalk in front of Lot 3, Block 1. m. The stormwater management plan shall be revised to account for the added impervious surface from the Pioneer Trail turn lanes. n. The association of building owner is responsible for ensuring sidewalks in the development area and for maintenance of all common areas. Association documents must be provided for review and approval with the PUD final plan application. 12. The sidewalk shall be constructed on the south side of the street at the time a street is constructed as required by Section 945 of the City Code. 13. All permanent wetland buffer monuments must be erected along the wetland buffer line as required by Section 1050.010, Subd. 7 of the Zoning Ordinance. a. The applicant shall work with City staff to finalize the location of wetland buffer monuments. b. Wetland signs shall be purchased from the City. c. The final locations must be inspected and approved by City staff. d. Monument signs shall be installed prior to approval of the building permit. 14. Drainage and utility easements must be provided over all wetlands, wetland buffers and ponds. 15. Drainage and utility easements shall be provided along the perimeter of all lots. 16. All utility facilities shall be located underground. 17. A sign permit is required for any signage. All signage must comply with Chapter 84 of the City Code, except where PUD flexibility has been requested and granted for wall signage on Lots 1, 2 and 3, Block 1. a. Wall signs on the north, west and east sides of the building shall not be lit between 9:00 p.m. – 6:00 a.m. 18. The development shall comply with the City’s requirements regarding fire access, fire protection and fire flow calculations, the location of fire hydrant, fire department connections and fire lane signage. 19. Parking shall be reviewed with building permit and must comply with ordinance standards for the proposed use, except where PUD flexibility is requested. 20. No parking shall be permitted on either side of 62nd Avenue. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 5 of 7 21. The applicant shall document that the existing septic field and easement for Medina Electric are necessary and that the easement holder does not want the easement released. a. If the easement can be released, 62nd Avenue should extend as far east as conditions allow. b. If the easement cannot be released, additional agreements will be required for roadway encroachment into the easement. 22. The applicant must provide a temporary cul-de-sac easement for the new public street. 23. The new public street shall follow the City’s street naming policy. 24. An access easement shall be provided to Outlot A from 62nd Avenue. 25. An encroachment agreement shall be required for all site improvements or items placed within the City rights-of-way or easements. 26. The applicant must enter into a stormwater maintenance agreement prior to release of final plat. 27. The applicant shall deed Outlot A to the City. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee - Mayor ATTEST: ____________________________________ City Seal Michelle Friedrich – City Clerk City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 6 of 7 ATTACHMENT A Parcel A: The West 561.81 feet of the Southwest Quarter of the Southeast Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, EXCEPT that part taken for State Highway No. 55. And That part of the Southeast Quarter of the Southwest Quarter of said Section 32 described as follows: Commencing at a point on the west line of said Southeast Quarter of the Southwest Quarter a distance of 455.00 feet South of the northwest corner thereof; thence East parallel with the north line of said Southeast Quarter of the Southwest Quarter a distance of 240.00 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 265.00 feet to the actual point of beginning of the tract of land to be herein described; thence North parallel with said west line a distance of 30.00 feet; thence East parallel with said north line 253.04 feet, more or less, to a line drawn parallel with and distant 1155.00 feet East of said west line; thence North parallel with said west line 365.00 feet to said north line; thence East along said north line a distance of 172.55 feet, more or less, to the northeast corner of said Southeast Quarter of the Southwest Quarter; thence South along the east line thereof to the southeast corner of said Southeast Quarter of the Southwest Quarter; thence West along the south line thereof to a line drawn parallel with said west line from the actual point of beginning; thence North parallel with said west line to the actual point of beginning. EXCEPT that part thereof lying within a radius of 60.00 feet of the actual point of beginning. Also EXCEPT that part taken for State Highway No. 55. Parcel B: That part of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of said Southeast Quarter of the Southwest Quarter a distance of 455.0 feet South of the Northwest corner thereof; thence East parallel with the North line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter a distance of 240.0 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 131.21 feet to the actual point of beginning of the tract of land to be herein described; thence continue East along last mentioned line a distance of 133.79 feet to a point hereafter known as Point A; thence South parallel with said West line a distance of 362.0 feet to a line City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-03 Page 7 of 7 drawn parallel with and 757.0 feet South of said North line; thence West parallel with said North line a distance of 133.79 feet to a line drawn parallel with said West line from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Except the Northerly 30.0 feet thereof. Also except that part thereof lying within a radius of 60.0 feet of Point A, described above. Parcel C: That part of the West 901.96 feet of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail. Except for the North 757.00 feet thereof. Also except the right of way for State Highway Number 55. And also except any part thereof contained within the description of the land in the Contract for Deed recorded November 6, 1996 in the office of the Hennepin County Recorder as Document No. 6658801. Also that part of the Southwest Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail and lying South of the North 757.00 feet thereof. ABSTRACT PROPERTY City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-04 Page 1 of 4 Motion By: Seconded By: APPROVING PRELIMIINARY PLAT FOR “PIONEER TRAIL INDUSTRIAL PARK” LOCATED AT 6210 PIONEER TRAIL (PID 32-119-23-34-0013, 32-119-23-34-0007, 32-119-23-43-0005 AND 32-119-23-43-0006) (CITY FILE NO. 22-039) WHEREAS, Contour Development, LLC, (the “applicant”) has requested approval of “Pioneer Trail Industrial Park” an industrial subdivision on the property legally described as follows: See Attachment A WHEREAS, the Planning Commission has reviewed the plan at a duly called Public Hearing, and; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORCORAN, MINNESOTA, that the Corcoran City Council hereby approves the request for preliminary plat, subject to the following conditions: 1. A preliminary plat is approved to create five lots and one outlot, “Pioneer Trail Industrial Park”, in accordance with the plans and application received by the City on June 21, 2022 and revisions received on June 23, 2022, September 20, 2022, November 1, 2022, December 1, 2022, December 5, 2022, December 12, 2022 and December 14, 2022, except as amended by this resolution. 2. Approval is contingent upon City Council approval of the preliminary PUD plan for “Pioneer Trail Industrial Park”. The applicant shall comply with all conditions of the preliminary PUD plan approval (Resolution 2023-03). 3. Park dedication is due as required by the PUD approvals, prior to the release of the final plat for recording. 4. The applicant shall comply with all requirements of the City Engineer’s memo, dated November 21, 2022. 5. The preliminary plat zoning table shall be updated to note the current zoning is Urban Reserve (UR) for the smallest parcel (22733 Wagon Wheel Lane). 6. Approval shall expire within one year of the date of approval unless the applicant has filed a complete application for approval of the final plat. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-04 Page 2 of 4 Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee - Mayor ATTEST: ____________________________________ City Seal Michelle Friedrich – City Clerk City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-04 Page 3 of 4 ATTACHMENT A Parcel A: The West 561.81 feet of the Southwest Quarter of the Southeast Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, EXCEPT that part taken for State Highway No. 55. And That part of the Southeast Quarter of the Southwest Quarter of said Section 32 described as follows: Commencing at a point on the west line of said Southeast Quarter of the Southwest Quarter a distance of 455.00 feet South of the northwest corner thereof; thence East parallel with the north line of said Southeast Quarter of the Southwest Quarter a distance of 240.00 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 265.00 feet to the actual point of beginning of the tract of land to be herein described; thence North parallel with said west line a distance of 30.00 feet; thence East parallel with said north line 253.04 feet, more or less, to a line drawn parallel with and distant 1155.00 feet East of said west line; thence North parallel with said west line 365.00 feet to said north line; thence East along said north line a distance of 172.55 feet, more or less, to the northeast corner of said Southeast Quarter of the Southwest Quarter; thence South along the east line thereof to the southeast corner of said Southeast Quarter of the Southwest Quarter; thence West along the south line thereof to a line drawn parallel with said west line from the actual point of beginning; thence North parallel with said west line to the actual point of beginning. EXCEPT that part thereof lying within a radius of 60.00 feet of the actual point of beginning. Also EXCEPT that part taken for State Highway No. 55. Parcel B: That part of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of said Southeast Quarter of the Southwest Quarter a distance of 455.0 feet South of the Northwest corner thereof; thence East parallel with the North line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter a distance of 240.0 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 131.21 feet to the actual point of beginning of the tract of land to be herein described; thence continue East along last mentioned line a distance of 133.79 feet to a point hereafter known as Point A; thence South parallel with said West line a distance of 362.0 feet to a line City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-04 Page 4 of 4 drawn parallel with and 757.0 feet South of said North line; thence West parallel with said North line a distance of 133.79 feet to a line drawn parallel with said West line from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Except the Northerly 30.0 feet thereof. Also except that part thereof lying within a radius of 60.0 feet of Point A, described above. Parcel C: That part of the West 901.96 feet of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail. Except for the North 757.00 feet thereof. Also except the right of way for State Highway Number 55. And also except any part thereof contained within the description of the land in the Contract for Deed recorded November 6, 1996 in the office of the Hennepin County Recorder as Document No. 6658801. Also that part of the Southwest Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail and lying South of the North 757.00 feet thereof. ABSTRACT PROPERTY City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-02 Page 1 of 4 Motion By: Seconded By: DENYING THE REQUEST FOR A REZONING, PRELIMINARY PLAT AND PRELIMINARY PLANNED UNIT DEVELOPMENT PLAN FOR “PIONEER TRAIL INDUSTRIAL PARK” ON THE PROPERTY LOCATED AT 6210 PIONEER TRAIL (PID 32-119-23-34-0013, 32-119-23- 34-0007, 32-119-23-43-0005 AND 32-119-23-43-0006) (CITY FILE NO. 22-039) WHEREAS, Contour Development, LLC, (the “applicant”) has requested approval of a rezoning, preliminary plat and preliminary planned unit development (PUD) plan for “Pioneer Trail Industrial Park” an industrial subdivision on the 56.86-acre property legally described as follows: See Attachment A WHEREAS, the Planning Commission has reviewed the plan at a duly called Public Hearing, and; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORCORAN, MINNESOTA, that the Corcoran City Council hereby dies deny the request, based on the following findings and conditions: 1. The PUD flexibility requested by the applicant results in deviations from the applicable provisions of the Zoning Ordinance that are not offset by the PUD benefits proposed by the applicant and, therefore, are in conflict with the applicable PUD provisions of the ordinance. 2. The planned development will have an adverse impact on the reasonable enjoyment of the neighborhood property. The property is zoned Light Industrial, but the developer has not provided adequate landscaping to buffer the development from the residential properties to the northwest, north and northeast. 3. The quality of the building and site design proposed by the PUD plan does not substantially enhance the aesthetics of the site, demonstrate higher standards, more efficient and effective uses of streets, utilities and public facilities and create a public benefit that is greater than what would be achieved through the strict application of the primary zoning regulations. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-02 Page 2 of 4 Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee - Mayor ATTEST: ____________________________________ City Seal Michelle Friedrich – City Clerk City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-02 Page 3 of 4 ATTACHMENT A Parcel A: The West 561.81 feet of the Southwest Quarter of the Southeast Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, EXCEPT that part taken for State Highway No. 55. And That part of the Southeast Quarter of the Southwest Quarter of said Section 32 described as follows: Commencing at a point on the west line of said Southeast Quarter of the Southwest Quarter a distance of 455.00 feet South of the northwest corner thereof; thence East parallel with the north line of said Southeast Quarter of the Southwest Quarter a distance of 240.00 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 00 minutes) a distance of 58.62 feet; thence East tangent to said curve a distance of 265.00 feet to the actual point of beginning of the tract of land to be herein described; thence North parallel with said west line a distance of 30.00 feet; thence East parallel with said north line 253.04 feet, more or less, to a line drawn parallel with and distant 1155.00 feet East of said west line; thence North parallel with said west line 365.00 feet to said north line; thence East along said north line a distance of 172.55 feet, more or less, to the northeast corner of said Southeast Quarter of the Southwest Quarter; thence South along the east line thereof to the southeast corner of said Southeast Quarter of the Southwest Quarter; thence West along the south line thereof to a line drawn parallel with said west line from the actual point of beginning; thence North parallel with said west line to the actual point of beginning. EXCEPT that part thereof lying within a radius of 60.00 feet of the actual point of beginning. Also EXCEPT that part taken for State Highway No. 55. Parcel B: That part of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota, described as follows: Commencing at a point on the West line of said Southeast Quarter of the Southwest Quarter a distance of 455.0 feet South of the Northwest corner thereof; thence East parallel with the North line of said Southeast Quarter of the Southwest Quarter of the Southwest Quarter a distance of 240.0 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 173.04 feet; thence on a tangential curve to the left having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence on a tangential curve to the right having a radius of 111.96 feet (delta angle of 30 degrees 30 minutes) a distance of 58.62 feet; thence East tangent to last mentioned curve a distance of 131.21 feet to the actual point of beginning of the tract of land to be herein described; thence continue East along last mentioned line a distance of 133.79 feet to a point hereafter known as Point A; thence South parallel with said West line a distance of 362.0 feet to a line City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-02 Page 4 of 4 drawn parallel with and 757.0 feet South of said North line; thence West parallel with said North line a distance of 133.79 feet to a line drawn parallel with said West line from the actual point of beginning; thence North along said parallel line to the actual point of beginning. Except the Northerly 30.0 feet thereof. Also except that part thereof lying within a radius of 60.0 feet of Point A, described above. Parcel C: That part of the West 901.96 feet of the Southeast Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail. Except for the North 757.00 feet thereof. Also except the right of way for State Highway Number 55. And also except any part thereof contained within the description of the land in the Contract for Deed recorded November 6, 1996 in the office of the Hennepin County Recorder as Document No. 6658801. Also that part of the Southwest Quarter of the Southwest Quarter of Section 32, Township 119, Range 23, Hennepin County, Minnesota lying East of the centerline of Pioneer Trail and lying South of the North 757.00 feet thereof. ABSTRACT PROPERTY Page 1 of 3 STAFF REPORT Agenda Item : 8b. City Council Meeting: January 26, 2023 Prepared By : Jessica Beise Topic : Accessory Structure Options Action Required: Direction 1. Request Mayor McKee was approached by residents Byron Moyle and Erin Shanahan to look at options for accessory structures. The residents provided feedback and below is an analysis of potential options provided by Mayor McKee. The residents are seeking feedback from the Council on potential options. 2. Background A fire burned down the accessory structure at 9425 County Road 101. The residents would like to build a building that exceeds the accessory structure allowances. The residents would propose a building that is 60’ x 80’ which would be 4800 square feet where 2,969 square feet would be allowed under the current code. 3.Context and Analysis Zoning and Land Use The property is currently in Urban Reserve. Setbacks for accessory buildings in the urban residential zoning districts shall comply with the following: a. Front – no accessory building shall be located in the front yard b. Side – 10 feet c. Rear – 10 feet Additional considerations for accessory structures include how accessory structures are calculated. Attached garages with a footprint of less than 1,000 square feet shall not be considered as part of the maximum footprint for purposes of the detached accessory structure calculations. However, attached accessory space in excess of the initial 1,000 square feet shall be counted towards the maximum allowable detached accessory building footprint. Except in the UR and RR districts, a conditional use permit is required for construction of more than one detached accessory building with a footprint in excess of 200 square feet. Page 2 of 3 The maximum allowable total or accumulated footprint (total footprint of all accessory structures) for detached accessory buildings in the Urban Reserve and Rural Residential districts shall be as follows: Currently a conditional use permit may be granted for parcels that exceed 10 acres of land. Building Standards Building height per section 1070.020 of code cannot exceed 13.5 feet. The proposed materials would need to in compliance with section 1070.020 of the code. Home Occupation If a business were to be operated out the accessory structure it would need to app ly for a Conditional Home Occupation License. Variance, CUP and Alternate Options Variance standards would be challenging to meet as at this time there are no known hardships. Staff would have to look into if a CUP would be possible. Staff would have to review if solar would be possible on the accessory structure. It would be possible potentially to add some storage to the attached garage and stay below 1,000 square ft. It would be possible to have cantilevered over hangs to provide additional covered storage without impacting the footprint of the building. These would have to ben engineered. 4.Summary of Discussion Items Page 3 of 3 There has not been a formal application submitted but rather a request for the Council to provide feedback. As there is no formal application, the feedback given would be similar to a sketch plan that would be advisory in nature. Council should consider the following topics for discussion: 1.Is Council interested in reviewing the ordinance on accessory structures? a.If so, are there specific parameters? i.Would Council consider a 4,800 square foot building on a parcel under 10 acres? b.Who would pay for this project? i.Staff would recommend taking a $5,000 escrow like we did for the Westside Tire I-1 ordinance amendment. The applicant would prefer City Planner Lindahl assist in this project. In the past residents have requested amendments and the City has not initiated ordinance changes at the City’s cost for a specific change that benefits few properties. The City has reviewed ordinance changes that are City initiatives at the City’s cost on the City’s timeline. c.Where does this fall in the priority of ordinance amendments? 2.Is the Council interested in pursuing alternative routes such as additional attached accessory structure or a cantilevered overhang? Attachments: 1.Narrative 2.Maps 3.Plans 1. We conducted an assessment for drainage purposes and concluded that it would make more sense to add onto the square footage of the detached building, rather than add on to the garage. 2. As we plan to be more environmentally conscious, the roof of the building provides us with the ability to install a solar grid, which in turn, allows us to consume less power. 3. As you know, we have almost 7 acres of property that we maintain. The additional square footage to the building provides us with the much needed opportunity to park our equipment inside, monitor any leaks, and make repairs. This creates less environmental damage into wetlands resulting from leaking machinery. In addition, having space for equipment also allows us to help our neighbors in the winter months, including the neighbor across the street who is handicapped - we have been plowing his driveway since we moved in. 4. Since we moved in two a half years ago, we have made many improvements to the property, including a great deal of landscaping. We have created a wildflower field in the front pasture that can be seen from 101. It is quite beautiful and people stop on the road to take photos of it. It is a nice way to welcome people to Corcoran as we are right on the 101&30 intersection. 5. By putting a home office into the building instead of the main residence will allow for better work/life balance and a separate space for my wife to work as she is full time work from home. Our main goal with the building to be environmentally conscious and to preserve the natural beauty of Corcoran. Financial Management Plan Review of Development Scenarios and Impact on Water and Sewer Funds January 26, 2023 Tammy Omdal Managing Director, Northland Securities Agenda Item: 9a. Scenario Development Analyze the financial impact of modified development assumptions on the Long-Term Financial Plan, dated November 3, 2022 (Plan) Focus on impact on the Water and Sewer Funds, specifically Modify development assumptions for a new scenario (Scenario B) to be based on a more conservative scenario for development 2 Scenarios Scenario A is based on information and assumptions contained in the Plan, inclusive of only one change and that is for the estimated debt to be issued in 2023 based on updated project cost estimates Scenario B is based on modified assumptions for growth (more conservative), revenues, and capital spending compared to Scenario A 3 Comparison of Scenario A and B 4 If development does not occur as anticipated, City would not proceed with planned capital improvements in future years Scenario A includes water and sewer system improvements (in years 2027, 2030, and 2031) to support development Scenario A assumes pay-go funding for capital projects (no debt issuance) Estimated fees charged to utility customers to provide revenue to support expenses is the same for Scenarios A and B Approximately 5% annually for water services and 3% for sewer services Comparison of Scenario A and B 5 Under either scenario, City would not need to levy ad valorem taxes to support the Water and Sewer Funds Water and sewer revenues are projected to be sufficient under both scenarios to cover expenses and projected cash needs $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 1 Water and Sewer Funds Projected Ending Cash Balance SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 2 Water and Sewer Funds Projected Ending Cash Available for Future Capital Improvements / Reserves SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Customer UnitsChart 3 Water and Sewer Funds Projected Equivalent Customer Units for Water and Sewer Utilities SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Water Volume Sold in Millions of GallonsChart 4 Water and Sewer Funds Projected Water Volume Sold SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development 0 20 40 60 80 100 120 140 160 180 200 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Acres PlattedChart 5 Water and Sewer Funds Projected Acres Platted SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 6 Water and Sewer Funds Projected Revenue from Development (Availability and Connection Charges) SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 7 Water and Sewer Funds Projected Annual Debt Service as Percent of Projected Total Ending Cash SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 8 Water and Sewer Funds Projected Annual Debt Service Payments SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 9 Water and Sewer Funds Projected Bonds Outstanding Payable form Water and Sewer Revenues SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 10 Water and Sewer Funds Projected Annual Capital Improvement Project Spending SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 11 Water and Sewer Funds Projected Bond Issuance by Year SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 12 Water Fund Projected Annual Rate Adjustments for Water Base and Usage Charges SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 13 Sewer Fund Projected Annual Rate Adjustments for Sewer Base and Usage Charges SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development Summary Development will drive revenues and need for capital improvements Water and Sewer Funds are projected to maintain sufficient cash and remain in sound financial condition 19 Northland Securities, Inc. 150 South Fifth Street, Suite 3300 Minneapolis, Minnesota 55402 800-851-2920 Member FINRA and SIPC Registered with SEC and MSRB www.northlandsecurities.com/public_finance Questions 20 Tammy Omdal Managing Director 612-851-4964 tomdal@northlandsecurities.com STAFF REPORT Agenda Item : 9ai . Council Meeting: Prepared By: Topic: Action Required: Summary : Financi al/Bud get: Options: Recommendation Council Acti on: Attac hments: Northland Securities, Inc. 150 South Fifth Street, Suite 3300, Minneapolis, MN 55402 Toll Free 1-200-851-2920, Main 612-851-5900, www.northlandsecurities.com Member FINRA and SIPC | Registered with SEC and MSRB MEMORANDUM To:City of Corcoran From: Tammy Omdal, Managing Director Date:January 17, 2023 Re:Impact of Development Assumptions on the City’s Long-Term Financial Plan Northland was asked to analyze the financial impact of modified development assumptions on the City’s Long-Term Financial Plan, dated as of November 3, 2022 (the “Plan) and impact on the Water and Sewer Funds, specifically. The modified development assumptions are based on a more conservative scenario for development compared to the assumptions in the Plan. The growth assumptions in the Plan were prepared by city staff and are believed to be moderately conservative estimates for growth. For purposes of the analysis and comparison of scenarios, the scenarios are described as follows: Scenario A is based on information and assumptions contained in the Plan, inclusive of only one change and that is for the estimated debt to be issued in 2023 based on updated project cost estimates. Scenario B is based on modified assumptions for growth (more conservative), revenues, and capital spending as compared to Scenario A. If development does not occur as anticipated (Scenario A) and development between 2023-2032 is significantly less (Scenario B), City would not proceed with planned capital improvements. Scenario A includes water and sewer system improvements (in years 2027, 2030, and 2031) to support development. Scenario A assumes pay-go funding for these projects (no debt issuance). The estimated fees charged to utility customers to provide revenue to support expenses is the same for Scenarios A and B, approximately 5% annually for water services and 3% for sewer services. Under either scenario, City would not need to levy ad valorem taxes to support the Water and Sewer Funds. Revenues are projected to be sufficient under both scenarios to cover expenses and projected cash needs. Agenda Item: 9ai1. Corcoran LTFP January 17, 2023 Page 2 The graphs that follow provide a summary of key information to compare the scenarios. For purpose of presentation data is combined for the Water Fund and the Sewer Fund and presented in total. The graphs include the following information provided for years 2023-2032: Graph 1 (Ending Cash): Provides comparison of estimated ending cash balance for the two scenarios. Based on a more conservative assumption for growth, along with other adjustments for Scenario B, it is estimated that the combined ending cash balance projected for year 2032 would be approximately $15.1 million less under Scenario B compared to Scenario A, or approximately $30.5 million compared to $15.4 million. Graph 2 (Reserves for Capital): Provides comparison of combined estimated cash available for future capital improvements or reserve of cash from collection of development charges (connection and availability charges). Based on a more conservative assumption for growth, along with other adjustments for Scenario B, it is estimated that there would be approximately $14.6 million less in available funds for future projects by year 2032. This may result in the City needing to consider issuance of debt for future capital improvements beyond year 2032, depending on timing of development after year 2032. Graph 3 (Customer Units): Provides comparison of equivalent customer units of the utilities as estimated under Scenario A compared to Scenario B. Scenario A estimates 4,244 customers by year 2032 compared to 2,358 for Scenario B. Graph 4 (Water Volume Sold): Provides comparison of estimated water volume sold annually as estimated under Scenario A compared to Scenario B. Scenario A estimates City will sell (in millions of gallons) approximately 360,740 by year 2032 compared to 200,430 for Scenario B. Graph 5 (Acres Platted): Provides comparison of estimated acres platted under Scenario A compared to Scenario B. Under Scenario A the assumption is approximately 986 acres would be platted by year 2032 compared to approximately 292 acres for Scenario B. Graph 6 (Revenue from Connection and Availability Charges): Provides comparison of estimated revenue from connection and availability charges for Scenario A compared to Scenario B. Under Scenario A the assumption is the collection of approximately $47.4 million in connection and availability charges by year 2032 compared to $7.4 for Scenario B. Graph 7 (Debt Services as Percent of Ending Cash): Provides comparison of estimated annual debt service as a percent of ending cash balance for Scenario A compared to Scenario B. Year 2023 is estimated to be the only year of debt issuance for both Scenario A and B. For Scenario A it is estimated that as of year 2032 debt service as a percent of ending cash balance will be approximately 7.3%. Under Scenario B, the more pessimistic scenario for development, it is Corcoran LTFP January 17, 2023 Page 3 estimated that annual debt service would be equal to approximately 21% of the ending cash balance as of year 2032. Graph 8 (Annual Debt Service): Provides comparison of estimated annual debt service for Scenario A compared to Scenario B. Annual debt service is assumed to be the same under both Scenarios A and B. Annual debt service as of year 2032 is estimated at approximately $1.5 million annually. Capital improvement spending is greater under Scenario A compared to Scenario B, For Scenario A, it is assumed that development will drive the need and support the cost of capital improvement spending (through collection of development charges) without debt issuance after year 2023. Actual timing of development will determine if the assumption (pay-go versus debt issuance) will be possible. Graph 9 (Bonds Outstanding): Provides comparison of estimated bonds outstanding payable from water and sewer revenues for Scenarios A and B. Bonds outstanding are estimated to be the same for both scenarios. Total bonds outstanding by year 2032 is estimated at approximately $18.1 million. Scenario B assumes no additional capital spending after year 2023. Scenario A assumes the City will have collected cash from development charges sufficient to pay for improvements on a pay-go basis and no issuance of debt between years 2024-2032. Graph 10 (Capital Improvements): Provides estimated capital improvement spending on water and sewer. Planned spending is higher under Scenario A, with spending on water and sewer improvements between 2023-2032 estimated at nearly $52 million. This includes for treatment and storage facilities as well as trunk expansion, among other improvements. Scenario B does not include any capital spending between years 2024-2032. Without development, the improvements will not be necessary. Graph 11 (Bond Issuance): Provides estimated bond issuance to support capital improvement spending on water and sewer. Scenario A includes bond issuance in 2023 only with future improvements estimated to be paid from cash collected from estimated development under Scenario A. Scenarios A and B both include $21,605,000 of bond issuance in 2023, with no bond issuance between 2024-2032. Graphs 12 and 13 (Rate Adjustments): Provides comparison of estimated annual rate increases for water and sewer services, including to base charge and usage charges. The analysis estimates the rate increases for water services to be approximately 5% annually and for sewer services approximately 3.0% annually, for both Scenarios A and B. Corcoran LTFP January 17, 2023 Page 4 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 1 Water and Sewer Funds Projected Ending Cash Balance SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 2 Water and Sewer Funds Projected Ending Cash Available for Future Capital Improvements / Reserves SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development Corcoran LTFP January 17, 2023 Page 5 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Customer UnitsChart 3 Water and Sewer Funds Projected Equivalent Customer Units for Water and Sewer Utilities SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Water Volume Sold in Millions of GallonsChart 4 Water and Sewer Funds Projected Water Volume Sold SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development Corcoran LTFP January 17, 2023 Page 6 0 20 40 60 80 100 120 140 160 180 200 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032Acres PlattedChart 5 Water and Sewer Funds Projected Acres Platted SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 6 Water and Sewer Funds Projected Revenue from Development (Availability and Connection Charges) SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development Corcoran LTFP January 17, 2023 Page 7 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 7 Water and Sewer Funds Projected Annual Debt Service as Percent of Projected Total Ending Cash SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 8 Water and Sewer Funds Projected Annual Debt Service Payments SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development Corcoran LTFP January 17, 2023 Page 8 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 9 Water and Sewer Funds Projected Bonds Outstanding Payable form Water and Sewer Revenues SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 10 Water and Sewer Funds Projected Annual Capital Improvement Project Spending SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development Corcoran LTFP January 17, 2023 Page 9 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 11 Water and Sewer Funds Projected Bond Issuance by Year SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 12 Water Fund Projected Annual Rate Adjustments for Water Base and Usage Charges SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development Corcoran LTFP January 17, 2023 Page 10 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Chart 13 Sewer Fund Projected Annual Rate Adjustments for Sewer Base and Usage Charges SCENARIO A: Base Scenario for Future Development SCENARIO B: More Pessimistic Scenario for Future Development To: Kevin Mattson, Public Works Director From: Kent Torve, PE, City Engineer File: 227704426 Date: January 19th, 2023 Reference: Corcoran Water Supply, Treatment & Storage Project – Present Bids for WTP and Water Tower Projects STATUS UPDATE Bids for the Water Treatment Plant and the Water Tower were opened on November 29th, 2022 and Bid Results were presented to the City Council at the December 8th, 2022 City Council meeting. At that meeting, the City Council did not make a decision on the project and requested additional financial information which is being provided by City Staff. This memo provides additional information on the projects and the alternates to be considered by the City Council as they review the bids and consider moving forward with the Water Treatment Plant and Water Tower Projects. Because the contractors on the project were required to hold their bid pricing for 60-days, a decision will need to be made at the January 26th City Council Meeting or the prices will lapse and the project will need to be re- bid. Water Tower Bid Results The City received three qualified bids on the Water Tower Project with Phoenix Fabricators from Avon, Indiana as the apparent low bidder on the base project and all variations of the alternates. Below is a brief summary and results table of the Base Bid and Alternates to be considered by the City Council. As Phoenix Fabricators would be the apparent low bidder under all variations, only their bid results are presented but a complete bid tab is provided as an attachment to this memo. Summary Base Bid Site Work – The base bid is for the site work for the facility. The site work is the same for all of the tower sizing alternatives. Base Bid 750,000 Gallon Composite Tank – This is the bid to construct the 750,000 gallon composite tank. Alternate A 1,000,000 Gallon Composite Tank – This is the bid to construct 1,000,000 gallon composite tank. Alternate B 750,000 Gallon Composite Tank – This is the cost savings by allowing non-domestic fittings on the 750,000 gallon tank project. Alternate C 1,000,000 Gallon Composite Tank– This is the cost savings by allowing non-domestic fittings on the 1,000,000 gallon tank project. Agenda Item: 9aii. Results Bid Item Cost Base Bid - Site Work $ 690,817.00 Base Bid – 750,000 Composite Tank $ 3,553,231.00 Alternate A – 1,000,000 Gallon Composite Tank $ 4,012,569.00 Alternate B – 750,000 Gallon Composite Tank ($ 6,000) Alternate C – 1,000,000 Gallon Composite Tank ($ 6,000) Recommendation If the City Council chooses to move forward with the Water Tower Project, we would recommend awarding to construct the 1,000,000 gallon composite tank option which is the Base Bid Site Work Project and Bid Alternate A for a Total Cost of $4,703,386.00 to Phoenix Fabricators. While the project was bid to allow for non domestic fittings, the City historically has found value in the domestic fittings and would not recommend those alternates for this project. If the City Council elects to award the 750,000 gallon composite tank option, we would recommend awarding the Base Bid Site Work and Base Bid Tower for a Total Cost of $4,244,048.00 to Phoenix Fabricators. Water Treatment Plant Bid Results The City received five qualified bids on the water treatment plant project. Rice Lake Construction Group from Deerwood, Minnesota was the apparent low bidder for the water treatment plant project for the base bid and all of the bid alternates of the project. Below is a brief summary and results table of the Base Bid and Alternates to be considered by the City Council. As Rice Lake Construction Group would be the apparent low bidder under all variations, only their bid results are presented but a complete bid tab is provided as an attachment to this memo. Summary Base Bid Item 1 – This is the cost to construct the two-filter cell water treatment facility and all of the site improvements. Base Bid Item 2 – This is the allowance to allow for City Staff to address minor field changes on the facility. Bid Alternate Item 3 – This is the cost to include the architectural dormers on the two-filter cell facility. Bid Alternate Item 4 – This is the additional cost beyond the base bid to construct a three-filter cell facility. Bid Alternate Item 5 – This is the cost to include the architectural dormers on the three-filter cell facility. Bid Alternate Item 6 – A significant investment will be made into a new SCADA (control) system for the water treatment facility. This Bid Item is to upgrade the existing controls at the existing lift station facilities to work with the new control system. Bid Alternate Item 7 – This Bid Item is to include the SCADA system with the new water tower. This was included with this project to ensure one system is used across the entire City system. Bid Alternate Item 8 – This is the cost savings to allow for non-domestic pipe and fittings on the two-filter cell facility. Bid Alternate Item 9 – This is the cost savings to allow for non-domestic pipe and fittings on the three-filter cell facility. Results Bid Item Cost Base Bid Item 1 – Two-Filter Cell Facility $ 15,149,400.00 Base Bid Item 2 – General Allowance $ 50,000.00 Alternate Bid Item 3 – Two-Filter Cell Architectural Dormers $ 71,000.00 Alternate Bid Item 4 – Three-Filter Cell Facility (Additional Cost) $ 2,394,800.00 Alternate Bid Item 5 – Three-Filter Cell Architectural Dormers $ 98,000.00 Alternate Bid Item 6 – Lift Station SCADA Integration $ 184,000.00 Alternate Bid Item 7 – Water Tower SCADA Integration $ 61,000.00 Alternate Bid Item 8 – Non-Domestic Materials Two-Cell ($ 923,000.00) Alternate Bid Item 9 – Non-Domestic Materials Three-Cell (Additional Deduct) ($ 188,000.00) Recommendation If the City Council determines to move forward with the Water Treatment Plant, we would recommend that they award the Bid Alternates 6 and 7 under any scenario. Alternate 6 will allow Public Works and the system operators the tools to monitor and run these systems from one control system. Alternate 7 is needed in order for the water treatment plant to communicate with the water tower. Additionally, as this project was being bid it was recognized that there could be significant project value by allow for non-domestic pipe and fittings to be used. While the City has historically found value in domestic materials, based on the bids provided we would recommend awarding Alternate Bid Items 8 and 9 on the project as we feel the value of these materials are not present for this project. Alternates 3 and 5 were provided for the architectural dormer additions for both the two and three-filter cell options. The City Council has the discretion to review the bids and consider and award any of the alternates provided but below are considerations for the City Council for a two-filter cell and three-filter cell facility based on the recommendations above. We would recommend the three-filter cell facility based on the value it brings for the additional capacity but the City Council should review and fully consider the bids presented. Two-Filter Cell Facility (Base Bid Items 1 and 2 along with Alt. Bid Items 6, 7 and 8) - $14,521,400.00 Architectural Dormer Addition (Alternate Bid Item 3) - $71,000.00 Three-Filter Cell Facility (Base Bid Items 1 and 2 along with Alt. Bid Items 4, 6, 7, 8 and 9) - $16,728,200.00 Architectural Dormer Addition (Alternate Bid Item 5) - $98,000.00 COUNCIL ACTION REQUESTED Staff is requesting Council review the Bids that were presented and determine whether to award Bids on the Water Tower and Water Treatment Facility with the select alternates as provided above. Because the contractors on the project were required to hold their bid pricing for 60-days, a decision will need to be made at the January 26th City Council Meeting or the prices will lapse. ATTACHMENTS WTP Bid Tab Summary Tower Bid Tab Summary Stantec Consulting Services Inc. 733 Marquette Avenue, Suite 1000, Minneapolis, MN 55402 November 29, 2022 Honorable Mayor and City Council City of Corcoran City Hall 8200 County Road 116 Corcoran, MN 55340 Re: Water Tower Stantec Project No. 227705274 Bid Results Dear Honorable Mayor and City Council: Bids were opened for the Project stated above on November 29, 2022. Transmitted herewith is a copy of the Bid Tabulation for your information and file. Copies will also be distributed to each Bidder once the Project has been awarded. There was a total of 3 Bids. The following summarizes the results of the Bids received: Contractor Total Base Bid Site Work & Alt Bid A Low Phoenix Fabricators $4,244,048.00 $4,703,386.00 #2 Landmark Structures, LP $5,042,000.00 $5,741,000.00 #3 Caldwell Tanks, Inc. $6,182,000.00 $6,729,000.00 The low Bidder on the Project was Phoenix Fabricators with a Total Base Bid of $4,244,048.00. PThese Bids have been reviewed and found to be in order. If the City Council wishes to award the Project to the low Bidder, then Phoenix Fabricators should be awarded the Project on the Total Base Bid of $4,244,048.00. If the City wishes to award the Part 1 – Site Work plus Alternate No. 1 to the low Bidder, then Phoenix Fabricators should be awarded the Adjusted Total Base Bid of $4,703,386.00. Should you have any questions, please feel free to contact me at 612-712-2069. Sincerely, STANTEC CONSULTING SERVICES INC. Daryl Kirschenman, P.E. Enclosure Project Name: City Project No.: Bid Opening:Owner: License No. 46703 BID TABULATION Item Num Item Units Qty Unit Price Total Unit Price Total Unit Price Total BASE BID: PART 1 - SITEWORK 1 MOBILIZATION LS 1 $185,000.00 $185,000.00 $95,000.00 $95,000.00 $160,000.00 $160,000.00 2 TRAFFIC CONTROL LS 1 $4,000.00 $4,000.00 $5,000.00 $5,000.00 $15,000.00 $15,000.00 3 SALVAGE, STOCKPILE AND RESPREAD TOPSOIL LS 1 $6,500.00 $6,500.00 $25,000.00 $25,000.00 $12,000.00 $12,000.00 4 TEMPORARY ROCK CONSTRUCTION ENTRANCE PLACEMENT AND REMOVALLS1 $4,000.00 $4,000.00 $5,000.00 $5,000.00 $16,000.00 $16,000.00 5 COMMON TOPSOIL BORROW (LV)CY 50 $40.00 $2,000.00 $15.00 $750.00 $125.00 $6,250.00 6 CONNECT TO EXISTING 20" PVC WATER MAIN EA 1 $5,700.00 $5,700.00 $10,000.00 $10,000.00 $12,000.00 $12,000.00 7 20" PVC WATERMAIN, C900 LF 355 $265.00 $94,075.00 $250.00 $88,750.00 $500.00 $177,500.00 8 20" GATE VALVE EA 1 $31,000.00 $31,000.00 $31,000.00 $31,000.00 $38,500.00 $38,500.00 9 20" DIP WATERMAIN, CL. 52. INCL. POLY WRAP LF 18 $397.00 $7,146.00 $250.00 $4,500.00 $500.00 $9,000.00 10 6" DIP WATER MAIN, CL. 52, INCL. POLY WRAP LF 55 $117.00 $6,435.00 $100.00 $5,500.00 $125.00 $6,875.00 11 6" GATE VALVE AND BOX EA 2 $4,000.00 $8,000.00 $4,000.00 $8,000.00 $3,400.00 $6,800.00 12 6" HYDRANT EA 2 $8,512.00 $17,024.00 $10,000.00 $20,000.00 $8,400.00 $16,800.00 13 DUCTILE IRON FITTINGS LB 4000 $15.00 $60,000.00 $12.00 $48,000.00 $25.00 $100,000.00 14 4' x 6' OVERFLOW SPLASH PAD EA 1 $1,800.00 $1,800.00 $5,310.00 $5,310.00 $6,000.00 $6,000.00 15 CONCRETE SIDEWALK SY 20 $75.00 $1,500.00 $200.00 $4,000.00 $175.00 $3,500.00 16 8" BOLLARD EA 2 $1,000.00 $2,000.00 $750.00 $1,500.00 $1,250.00 $2,500.00 17 CONCRETE DRIVEWAY APRON LS 1 $8,000.00 $8,000.00 $20,000.00 $20,000.00 $23,000.00 $23,000.00 18 GEOTEXTILE FABRIC TYPE V NON WEAR SY 1750 $2.60 $4,550.00 $4.00 $7,000.00 $10.00 $17,500.00 19 AGGREGATE BASE TN 1625 $49.00 $79,625.00 $30.00 $48,750.00 $50.00 $81,250.00 20 BITUMINOUS WEAR SPWEA340b TN 175 $190.00 $33,250.00 $140.00 $24,500.00 $230.00 $40,250.00 21 BITUMINOUS BASE SPNWB330b TN 225 $195.00 $43,875.00 $140.00 $31,500.00 $230.00 $51,750.00 22 BITUMINOUS RIBBON CURB LF 510 $31.00 $15,810.00 $30.00 $15,300.00 $35.00 $17,850.00 23 B618 CURB LF 410 $47.00 $19,270.00 $36.00 $14,760.00 $35.00 $14,350.00 24 SILT FENCE, MS LF 1250 $4.50 $5,625.00 $10.00 $12,500.00 $12.00 $15,000.00 25 INFILTRATION BASIN, FILTER FABRIC, 6' DRAIN TILE AND 6' FLARED END SECTION LS 1 $8,500.00 $8,500.00 $9,100.00 $9,100.00 $25,000.00 $25,000.00 26 MnDOT SEED MIXTURE 25-131 AC 1.4 $8,220.00 $11,508.00 $15,000.00 $21,000.00 $15,000.00 $21,000.00 27 2.5" B&B DECIDUOUS TREE EA 11 $820.00 $9,020.00 $600.00 $6,600.00 $700.00 $7,700.00 28 6' HT CONIFEROUS TREE EA 10 $670.00 $6,700.00 $500.00 $5,000.00 $1,000.00 $10,000.00 29 SHRUB 5 GAL. CONTAINER EA 56 $100.00 $5,600.00 $160.00 $8,960.00 $400.00 $22,400.00 30 PERENNIAL 1 GAL. CONTAINER EA 118 $28.00 $3,304.00 $40.00 $4,720.00 $300.00 $35,400.00 TOTAL PART 1 - SITE WORK $690,817.00 $587,000.00 $971,175.00 BASE BID - 750,000 GALLON COMPOSITE TANK 31 750,000 GALLON COMPOSITE ELEVATED TANK WITH ACCESSORIES, ELECTRICAL, CONTROL ENCLOSURE, TANK MIXER, AND MATERIALS TESTING. OTHER ITEMS NOT SPECIFICALLY IDENTIFIED SHALL BE INCIDENTAL TO THE PROJECT AND INCLUDED IN THE LUMP SUM AMOUNT. THIS SHALL INCLUDE ALL APPLICABLE SALES TAXES. THE SCOPE OF WORK FOR THE BASE BID IS SHOWN IN THE DRAWINGS AS INDICATED IN THE SHEET INDEX AND NOTED ON THE DRAWINGS. LS 1 $3,327,631.00 $3,327,631.00 $4,292,000.00 $4,292,000.00 $5,026,825.00 $5,026,825.00 32 LOGO ALLOWANCE ***1 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 33 STRUCTURAL FILL BELOW FOUNDAITON CY 600 $51.00 $30,600.00 $40.00 $24,000.00 $115.00 $69,000.00 34 COMMON EXCAVATION AND SITE GRADING LS 1 $170,000.00 $170,000.00 $114,000.00 $114,000.00 $90,000.00 $90,000.00 TOTAL BASE BID - 750,000 GALLON COMPOSITE TANK $3,553,231.00 $4,455,000.00 $5,210,825.00 ALTERNATE A - 1,000,000 GALLON COMPOSITE TANK 35 1,000,000 GALLON COMPOSITE ELEVATED TANK WITH ACCESSORIES, ELECTRICAL, CONTROL ENCLOSURE, TANK MIXER, MATERIALS TESTING. OTHER ITEMS NOT SPECIFICALLY IDENTIFIED SHALL BE INCIDENTAL TO THE PROJECT AND INCLUDED IN THE LUMP SUM AMOUNT. THIS SHALL INCLUDE ALL APPLICABLE SALES TAXES. THE SCOPE OF THE BID ALTERNATE INCLUDES ALL DRAWINGS WITH AN “A” SUFFIX AFTER THE DRAWING NUMBER AS INDICATED IN THE SHEET INDEX AND AS NOTED ON THE DRAWINGS WHICH SHALL REPLACE THE BASE BID DRAWINGS OF THE SAME NUMBER. LS 1 $3,825,494.00 $3,825,494.00 $4,991,000.00 $4,991,000.00 $5,539,950.00 $5,539,950.00 36 LOGO ALLOWANCE LS 1 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 37 STRUCTURAL FILL BELOW FOUNDAITON CY 825 $51.00 $42,075.00 $40.00 $33,000.00 $115.00 $94,875.00 38 COMMON EXCAVATION AND SITE GRADING LS 1 $120,000.00 $120,000.00 $105,000.00 $105,000.00 $98,000.00 $98,000.00 TOTAL ALTERNATE A - 1,000,000 GALLON COMPOSITE TANK $4,012,569.00 $5,154,000.00 $5,757,825.00 ALTERNATE B - 750,000 GALLON COMPOSITE TANK 39 NON-DOMESTIC PIPE AND FITTINGS COST DEDUCT LS 1 ($6,000.00)($6,000.00)$6,000.00 $6,000.00 $62,500.00 $62,500.00 TOTAL ALTERNATE B - 750,000 GALLON COMPOSITE TANK ($6,000.00)$6,000.00 $62,500.00 ALTERNATE C - 1,000,000 GALLON COMPOSITE TANK 40 NON-DOMESTIC PIPE AND FITTINGS COST DEDUCT LS 1 ($6,000.00)($6,000.00)$6,000.00 $6,000.00 $62,500.00 $62,500.00 TOTAL ALTERNATE C - 1,000,000 GALLON COMPOSITE TANK ($6,000.00)$6,000.00 $0.00 BASE BID SUMMARY: TOTAL PART 1 - SITE WORK $690,817.00 $587,000.00 $971,175.00 TOTAL BASE BID - 750,000 GALLON COMPOSITE TANK $3,553,231.00 $4,455,000.00 $5,210,825.00 TOTAL BASE BID $4,244,048.00 $5,042,000.00 $6,182,000.00 BASE BID SUMMARY: TOTAL PART 1 - SITE WORK $690,817.00 $587,000.00 $971,175.00 TOTAL ALTERNATE A - 1,000,000 GALLON COMPOSITE TANK $4,012,569.00 $5,154,000.00 $5,757,825.00 TOTAL BASE BID PLUS ALTERNATE A $4,703,386.00 $5,741,000.00 $6,729,000.00 TOTAL ALTERNATE B - 750,000 GALLON COMPOSITE TANK ($6,000.00)$6,000.00 $62,500.00 TOTAL ALTERNATE C - 1,000,000 GALLON COMPOSITE TANK ($6,000.00)$6,000.00 $62,500.00 Phone: Email:jessica.bradbury@phoenixtank.com estimating@teamlandmark.com sales@caldwelltanks.com Signed By:Kurt Fuller Christopher Lamon Conrad R. Spangler, III Title:Executive VP CEO Sales Manager Bid Bond Bid Bond Bid Bond Yes Yes Yes 1 1 1 (502) 964-3361 CORCORAN WATER TOWER Landmark Structures, LP 1665 Harmon Rd. Ft. Worth, TX 76177 Caldwell Tanks, Inc. 4000 tower Rd. Louisville, KY 40219 Responsible Contractor Certification: Contractor Name and Address: (817) 439-8888 Addenda Acknowledged: Bid Security: Phoenix Fabricators 182 S. County Rd. 900 East Avon, IN 46123 (317) 271-7002 227705274 Bidder No. 3Bidder No. 1 Stantec Project No.: I hereby certify that this is an exact reproduction of bids received. Bidder No. 2 Phoenix Fabricators Landmark Structures, LP Daryl Kirschenman, PE City of CorcoranTuesday, November 29, 2022 at 11:00 AM CST Caldwell Tanks, Inc. 227705274-BidTab.xlsm BT-1 Project Name: City Project No.: Bid Opening: BID TABULATION Item Num Item Units Qty BASE BID: PART 1 - SITEWORK 1 MOBILIZATION LS 1 2 TRAFFIC CONTROL LS 1 3 SALVAGE, STOCKPILE AND RESPREAD TOPSOIL LS 1 4 TEMPORARY ROCK CONSTRUCTION ENTRANCE PLACEMENT AND REMOVALLS1 5 COMMON TOPSOIL BORROW (LV)CY 50 6 CONNECT TO EXISTING 20" PVC WATER MAIN EA 1 7 20" PVC WATERMAIN, C900 LF 355 8 20" GATE VALVE EA 1 9 20" DIP WATERMAIN, CL. 52. INCL. POLY WRAP LF 18 10 6" DIP WATER MAIN, CL. 52, INCL. POLY WRAP LF 55 11 6" GATE VALVE AND BOX EA 2 12 6" HYDRANT EA 2 13 DUCTILE IRON FITTINGS LB 4000 14 4' x 6' OVERFLOW SPLASH PAD EA 1 15 CONCRETE SIDEWALK SY 20 16 8" BOLLARD EA 2 17 CONCRETE DRIVEWAY APRON LS 1 18 GEOTEXTILE FABRIC TYPE V NON WEAR SY 1750 19 AGGREGATE BASE TN 1625 20 BITUMINOUS WEAR SPWEA340b TN 175 21 BITUMINOUS BASE SPNWB330b TN 225 22 BITUMINOUS RIBBON CURB LF 510 23 B618 CURB LF 410 24 SILT FENCE, MS LF 1250 25 INFILTRATION BASIN, FILTER FABRIC, 6' DRAIN TILE AND 6' FLARED END SECTION LS 1 26 MnDOT SEED MIXTURE 25-131 AC 1.4 27 2.5" B&B DECIDUOUS TREE EA 11 28 6' HT CONIFEROUS TREE EA 10 29 SHRUB 5 GAL. CONTAINER EA 56 30 PERENNIAL 1 GAL. CONTAINER EA 118 TOTAL PART 1 - SITE WORK BASE BID - 750,000 GALLON COMPOSITE TANK 31 750,000 GALLON COMPOSITE ELEVATED TANK WITH ACCESSORIES, ELECTRICAL, CONTROL ENCLOSURE, TANK MIXER, AND MATERIALS TESTING. OTHER ITEMS NOT SPECIFICALLY IDENTIFIED SHALL BE INCIDENTAL TO THE PROJECT AND INCLUDED IN THE LUMP SUM AMOUNT. THIS SHALL INCLUDE ALL APPLICABLE SALES TAXES. THE SCOPE OF WORK FOR THE BASE BID IS SHOWN IN THE DRAWINGS AS INDICATED IN THE SHEET INDEX AND NOTED ON THE DRAWINGS. LS 1 32 LOGO ALLOWANCE ***1 33 STRUCTURAL FILL BELOW FOUNDAITON CY 600 34 COMMON EXCAVATION AND SITE GRADING LS 1 TOTAL BASE BID - 750,000 GALLON COMPOSITE TANK ALTERNATE A - 1,000,000 GALLON COMPOSITE TANK 35 1,000,000 GALLON COMPOSITE ELEVATED TANK WITH ACCESSORIES, ELECTRICAL, CONTROL ENCLOSURE, TANK MIXER, MATERIALS TESTING. OTHER ITEMS NOT SPECIFICALLY IDENTIFIED SHALL BE INCIDENTAL TO THE PROJECT AND INCLUDED IN THE LUMP SUM AMOUNT. THIS SHALL INCLUDE ALL APPLICABLE SALES TAXES. THE SCOPE OF THE BID ALTERNATE INCLUDES ALL DRAWINGS WITH AN “A” SUFFIX AFTER THE DRAWING NUMBER AS INDICATED IN THE SHEET INDEX AND AS NOTED ON THE DRAWINGS WHICH SHALL REPLACE THE BASE BID DRAWINGS OF THE SAME NUMBER. LS 1 36 LOGO ALLOWANCE LS 1 37 STRUCTURAL FILL BELOW FOUNDAITON CY 825 38 COMMON EXCAVATION AND SITE GRADING LS 1 TOTAL ALTERNATE A - 1,000,000 GALLON COMPOSITE TANK ALTERNATE B - 750,000 GALLON COMPOSITE TANK 39 NON-DOMESTIC PIPE AND FITTINGS COST DEDUCT LS 1 TOTAL ALTERNATE B - 750,000 GALLON COMPOSITE TANK ALTERNATE C - 1,000,000 GALLON COMPOSITE TANK 40 NON-DOMESTIC PIPE AND FITTINGS COST DEDUCT LS 1 TOTAL ALTERNATE C - 1,000,000 GALLON COMPOSITE TANK BASE BID SUMMARY: TOTAL PART 1 - SITE WORK TOTAL BASE BID - 750,000 GALLON COMPOSITE TANK TOTAL BASE BID BASE BID SUMMARY: TOTAL PART 1 - SITE WORK TOTAL ALTERNATE A - 1,000,000 GALLON COMPOSITE TANK TOTAL BASE BID PLUS ALTERNATE A TOTAL ALTERNATE B - 750,000 GALLON COMPOSITE TANK TOTAL ALTERNATE C - 1,000,000 GALLON COMPOSITE TANK Phone: Email: Signed By: Title: CORCORAN WATER TOWER Responsible Contractor Certification: Contractor Name and Address: Addenda Acknowledged: Bid Security: Tuesday, November 29, 2022 at 11:00 AM CST I hereby certify that this is an exact reproduction of bids received. Daryl Kirschenman, PE 227705274-BidTab.xlsm BT-2 Stantec Consulting Services Inc. 733 Marquette Avenue, Suite 1000, Minneapolis, MN 55402 November 29, 2022 Honorable Mayor and City Council City of Corcoran City Hall 8200 County Road 116 Corcoran, MN 55340 Re: Water Treatment Plant Stantec Project No. 227704426 Bid Results Dear Honorable Mayor and City Council: Bids were opened for the Project stated above on November 29, 2022. Transmitted herewith is a copy of the Bid Tabulation for your information and file. Copies will also be distributed to each Bidder once the Project has been awarded. There was a total of 5 Bids. The following summarizes the results of the Bids received: Contractor Total Base Bid Alternate Bid No. 1 Low Rice Lake Construction Group $15,199,400.00 See Bid Tab #2 Magney Construction, Inc. $16,045,000.00 See Bid Tab #3 Gridor Constr., Inc. $16,164,600.00 See Bid Tab #4 Shaw-Lundquist Associates, Inc. $16,348,312.00 See Bid Tab #5 Market and Johnson $16,586,000.00 See Bid Tab The low Bidder on the Project was Rice Lake Construction Group with a Total Base Bid of $15,199,400.00. These Bids have been reviewed and found to be in order. If the City Council wishes to award the Project to the low Bidder, then Rice Lake Construction Group should be awarded the Project on the Total Base Bid of $15,199,400.00. If the City wishes to award the Base Bid Plus Alternate Bid Items to the low Bidder, then the Alternate Bid Items would need to be selected to determine the lowest bidder. Should you have any questions, please feel free to contact me at 763-252-6945. Sincerely, STANTEC CONSULTING SERVICES INC. Ash Hammerbeck, P.E. Enclosure Project Name: City Project No.:Stantec Project No.: Bid Opening:Owner: License No. 54844 BID TABULATION Item Num Item Units Qty Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total BASE BID 1 THE BASE BID SHALL INCLUDE ALL WORK AND COSTS ASSOCIATED WITH THE CONSTRUCTION OF THE 2- FILTER CELL WATER TREATMENT PLANT AND WELL EQUIPMENT, COMPLETE WITH ALL STRUCTURAL, ARCHITECTURAL, PUMPING, PIPING, MECHANICAL, ELECTRICAL, CHEMICAL FEED, PROCESS CONTROL, INSTRUMENTATION, SYSTEM HARDWARE, INTEGRATION, SITEWORK, AND COORDINATION WITH SYSTEM SUPPLIERS. OTHER ITEMS NOT SPECIFICALLY IDENTIFIED SHALL BE INCIDENTAL TO THE PROJECT AND INCLUDED IN THE LUMP SUM BASE BID AMOUNT. THIS SHALL INCLUDE ALL APPLICABLE SALES TAXES. THE SCOPE OF WORK FOR THE BASE BID IS SHOWN IN THE DRAWINGS AS INDICATED IN THE SHEET INDEX AND NOTED ON THE DRAWINGS. LS 1 $15,149,400.00 $15,149,400.00 $15,995,000.00 $15,995,000.00 $16,114,600.00 $16,114,600.00 $16,298,312.00 $16,298,312.00 $16,586,000.00 $16,586,000.00 2 GENERAL ALLOWANCE LS 1 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 TOTAL BASE BID $15,199,400.00 $16,045,000.00 $16,164,600.00 $16,348,312.00 $16,636,000.00 ALTERNATE BID ITEMS: 3 ARCHITECTURAL DORMER OPTION, 2-FILTER CELL FACILITY LS 1 $71,000.00 $71,000.00 $55,000.00 $55,000.00 $70,000.00 $70,000.00 $35,120.00 $35,120.00 $39,000.00 $39,000.00 4 ALL WORK AND COSTS ASSOCIATED WITH THE CONSTRUCTION OF THE 3-FILTER CELL WATER TREATMENT PLANT INCLUDING ALL STRUCTURAL, ARCHITECTURAL, PUMPING, PIPING, MECHANICAL, ELECTRICAL, CHEMICAL FEED, PROCESS CONTROL, INSTRUMENTATION, SYSTEM HARDWARE, INTEGRATION, SITEWORK, INCIDENTALS, AND SALES TAXES. THESE COSTS SHALL BE INCLUDED AS A COST ADDITION TO THE BASE BID 2-FILTER CELL FACILITY. THE SCOPE OF THE BID ALTERNATE INCLUDES ALL DRAWINGS WITH AN “A” SUFFIX AFTER THE DRAWING NUMBER AS INDICATED IN THE SHEET INDEX AND AS NOTED ON THE DRAWINGS WHICH SHALL REPLACE THE BASE BID DRAWINGS OF THE SAME NUMBER. LS 1 $2,394,800.00 $2,394,800.00 $18,476,000.00 $18,476,000.00 $2,224,000.00 $2,224,000.00 $2,567,232.00 $2,567,232.00 $2,388,000.00 $2,388,000.00 5 ARCHITECTURAL DORMER OPTION, 3-FILTER CELL FACILITY LS 1 $98,000.00 $98,000.00 $75,000.00 $75,000.00 $35,000.00 $35,000.00 $19,254.00 $19,254.00 $62,000.00 $62,000.00 6 LIFT STATION SCADA INTEGRATION LS 1 $184,000.00 $184,000.00 $184,000.00 $184,000.00 $185,000.00 $185,000.00 $175,960.00 $175,960.00 $165,000.00 $165,000.00 7 WATER TOWER SCADA INTEGRATION LS 1 $61,000.00 $61,000.00 $62,000.00 $62,000.00 $68,000.00 $68,000.00 $62,540.00 $62,540.00 $56,000.00 $56,000.00 8 NON-DOMESTIC PIPE AND FITTINGS COST DEDUCT, 2- FILTER CELL FACILITY LS 1 ($923,000.00) ($923,000.00) ($950,000.00) ($950,000.00) ($1,000,000.00) ($1,000,000.00) ($981,116.00) ($981,116.00) ($955,000.00) ($955,000.00) 9 NON-DOMESTIC PIPE AND FITTINGS COST DEDUCT, 3- FILTER CELL FACILITY LS 1 ($188,000.00) ($188,000.00) ($1,100,000.00) ($1,100,000.00) ($190,000.00) ($190,000.00) ($123,296.00) ($123,296.00) ($1,027,000.00) ($1,027,000.00) Phone: Email:estimating@ricelake.org Mark@magneyconstruction.com estimating@gridor.com tmeyers@shawlundquist.com bidding@market-Johnson.com Signed By:Wade Leonard Mark Magney G.H. Theisen Thomas J. Meyers Kevin Renley Title:President President President Vice President President Signed Responsible Contractor Certificate:Yes Yes Yes Yes Yes Bid Bond Bid Bond Bid Bond Bid Bond Bid Bond 1,2,3,4,5,6 1,2,3,4,5,6 1,2,3,4,5,6 1,2,3,4,5,6 1,2,3,4,5,6 2757 West Service Road St. Paul, MN 55121 (651) 454-0670 Ash Hammerbeck, PE Bidder No. 4 3990 27th St. SE Buffalo, MN 55313 (763) 559-3734 I hereby certify that this is an exact reproduction of bids received. Water Treatment Plant City of Corcoran, MinnesotaThursday, November 17, 2022 at 2:00 PM CST 227704426 1401 Park Road Shanhassen, MN 55317 (952) 474-1674 Contractor Name and Address: Addenda Acknowledged: Bid Security: Rice Lake Construction Group 22360 County Road 12 Deerwood, MN 56444 (218) 546-5519 Bidder No. 5 Market and Johnson Gridor Constr., Inc. Bidder No. 1 Shaw-Lundquist Assoiciates, Inc.Magney Construction, Inc. Magney Construction, Inc.Shaw-Lundquist Associates, Inc. Bidder No. 2 Rice Lake Construction Grp Gridor Constr., Inc. Bidder No. 3 (715) 834-1213 Market and Johnson 2350 Galloway St. Eau Claire, WI 54703 227704426-Bid Tab.xlsm BT-1 STAFF REPORT Agenda Item : 9aiii . Council Meeting: Prepared By: Topic: Action Required: Summary : Financi al/Bud get: Options: Rec o mmendation Council Acti on: Attac hments: 1 FIRST AMENDMENT TO PURCHASE AGREEMENT This First Amendment to Purchase Agreement (this "First Amendment") is made and entered into by and between the City of Corcoran, a Minnesota municipal corporation ("Buyer"), and Hope Ministries International, Inc., a Minnesota non-profit corporation ("Seller"). Buyer and Seller are sometimes collectively referred to herein as the “parties" and individually as a “party”. This First Amendment amends certain terms of the Purchase Agreement executed by the parties and dated November 16, 2022 (the “Agreement”). RECITALS WHEREAS, the parties entered into the Agreement, which contemplated terms of the purchase and sale of the Subject Property, as defined therein, on November 16, 2022; and WHEREAS, Buyer and Seller are presently engaged in the process of investigating and clearing title encumbrances per the terms of the Agreement and are seeking plat approval for the Subject Property from Hennepin County; and WHEREAS, the parties have been informed that Hennepin County review of the approved plat will not be complete by the contemplated maximum closing date set forth in the Agreement; and WHEREAS, the parties mutually desire to extend the deadline for closing on the purchase and sale of the Subject Property; and WHEREAS, Seller is contemporaneously seeking government approvals for land use application project number 22-074, (the “Project”) to develop portions of four parcels of real property owned by Seller and legally described as: Parcel 1: Lot 1, Block 1, Hope Place, according to the recorded plat thereof, Hennepin County, Minnesota. Parcel 2: Lot 1, Block 2, Hope Place, according to the recorded plat thereof, Hennepin County, Minnesota. Parcel 3: Outlot A, Hope Place, according to the recorded plat thereof, Hennepin County, Minnesota. Parcel 4: Outlot C, Serenity Meadows, according to the recorded plat thereof, Hennepin County, Minnesota (Abstract Property). Agenda Item: 9aiii1. 2 (collectively the “Development Property”) WHEREAS, Seller is responsible for the costs of obtaining an Environmental Assessment Worksheet (the “EAW”) as a part of the Project; and WHEREAS, Seller and Buyer have entered into a separate agreement which contemplates that Buyer will cover the costs of the EAW, and be reimbursed for those costs at the Closing of the transaction to purchase the Subject Property via a credit against the purchase price in the same amount (the “Financing Agreement”). NOW, THEREFORE, in consideration of the mutual terms, covenants, conditions and agreements hereinafter contained the parties hereto agree as follows: 1. Section 1a) of the Agreement entitled “Purchase Price and Payment” is hereby amended to add the following words after “$150,000.00 cash at closing”: “less any costs expended by Buyer to prepare and/or complete the Environmental Assessment Worksheet for Corcoran land use application project number 22-074. Buyer and Seller shall mutually provide the closer with an agreed upon amount of costs expended on the EAW to be credited against the purchase price owed by Buyer at Closing.” 2. Section 2 of the Agreement entitled “Closing” is hereby amended to delete the words: “on or before January 31, 2023” and replace them with the words: “on or before March 20, 2023”. 3. All other terms of the Agreement remain in full force and effect, however, in the event of any conflict between the terms of this First Amendment and the terms of the Agreement, the terms of this First Amendment shall control. [SIGNATURES ON PAGES TO FOLLOW] 3 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year indicated. BUYER: CITY OF CORCORAN Dated: __________________ By: __________________________ Its Mayor Dated: __________________ By: __________________________ Its Administrator STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 2023, by Tom McKee, the Mayor and by Jessica Beise, the City Administrator of the City of Corcoran. Notary Public 4 SELLERS: HOPE MINISTRIES INTERNATIONAL, INC., a Minnesota non-profit corporation Dated: __________________ By: __________________________ Brian L. Lother Its: President STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of ________________________, 2023, by Brian L. Lother, the President of Hope Ministries International, Inc., a Minnesota non-profit corporation, on behalf of the corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: John J. Thames, Esq. CARSON, CLELLAND & SCHREDER 6300 Shingle Creek Parkway, Suite 305 Minneapolis, MN 55430 763-561-2800 1 FINANCING AGREEMENT This Financing Agreement (this "Agreement") is made and entered into by and between the City of Corcoran, a Minnesota municipal corporation ("City"), and Hope Ministries International, Inc., a Minnesota non-profit corporation ("Developer"). City and Developer are sometimes collectively referred to herein as the “parties" and individually as a “party”. RECITALS WHEREAS, Developer has submitted a Corcoran land use application, project number 22-074 (the “Project”) proposing to develop portions of four parcels of real property owned by Developer and legally described as: Parcel 1: Lot 1, Block 1, Hope Place, according to the recorded plat thereof, Hennepin County, Minnesota. Parcel 2: Lot 1, Block 2, Hope Place, according to the recorded plat thereof, Hennepin County, Minnesota. Parcel 3: Outlot A, Hope Place, according to the recorded plat thereof, Hennepin County, Minnesota. Parcel 4: Outlot C, Serenity Meadows, according to the recorded plat thereof, Hennepin County, Minnesota (Abstract Property). (Parcels 1-4 are collectively the “Development Property”); and WHEREAS, Developer is required to fund and complete an Environmental Assessment Worksheet (the “EAW”) as a part of the Project; and Agenda Item: 9aiii2. 2 WHEREAS, separately, Developer and the City have entered into an agreement for the purchase and sale of real property owned by Developer (said real property the “Water Tower Property”), and intend to close on that transaction in 2023 pursuant to the terms of that purchase and sale agreement (said purchase and sale agreement the “Purchase Agreement”); and WHEREAS, in order to maximize Project efficiency, Developer desires to have the City fund and complete the EAW required for the Project and take an equal and corresponding credit against the purchase price for the Water Tower Property at the closing of that transaction; and WHEREAS, the City is willing to front the costs of the EAW as requested in exchange for the credit against the purchase price for the Water Tower Property contemplated above, on certain conditions. NOW, THEREFORE, in consideration of the mutual terms, covenants, conditions and agreements herein contained the parties hereto agree as follows: 1. The above Recitals are incorporated herein and made a part of this Agreement as if set forth in full hereafter. 2. Upon the separate written authorization of Developer, the City hereby agrees to fund and complete the EAW required for the Project, conditioned upon Developer’s execution of this Agreement and compliance with the terms set forth herein. 3. Developer may provide the City with formal written direction to halt all work on the EAW at any time and Developer shall only be responsible for work performed and costs incurred by the City up to the time of that notice. 4. Developer shall be responsible for reimbursing the City for all costs incurred by the City in funding and completing the EAW (the “EAW Costs”). The parties estimate those costs to be approximately sixty-three thousand five hundred dollars and no cents ($63,500.00), but this estimate shall not act as a cap on actual costs incurred nor upon Developer’s reimbursement obligation. 5. The parties agree that the City shall receive a credit at closing against the purchase price for the Water Tower Property equal to the EAW Costs. The parties agree to make a mutual, timely and good faith certification of that credit to the closer of Water Tower Property transaction. Developer may require a reasonable and basic accounting of the EAW Costs prior to endorsing the credit, but Developer shall not unreasonably withhold or delay certification of the credit to the closer. 6. Should either party cancel or terminate the Purchase Agreement, Developer reimbursement of the EAW Costs shall become due to the City within thirty (30) days after the date of that cancellation or termination. Additionally, regardless of cancellation or termination of the Purchase Agreement, if the parties have not closed on the transaction contemplated in the Purchase Agreement by July 31, 2023, the EAW Costs 3 shall become due within thirty (30) days from that date. Should Developer fail to make full payment of that reimbursement within the timeframes set forth within this paragraph, the City may assess the costs owed to any or all of the parcels which comprise the Development Property. Developer, on behalf of itself and its successors and assigns as owner of the Development Property hereby acknowledges the benefit provided to the Development Property matches or exceeds the value of said assessment and hereby waives any right to appeal said assessment. 7. Any notice or election required or permitted to be given or served by any party hereto upon any other shall be deemed given or served if personally delivered to an officer of the party to be notified or if mailed by US registered or certified mail, postage prepaid return receipt requested, or sent by reputable overnight courier, to the property address as follows: If to Developer: Brian Lother, President Hope Ministries International, Inc. 19951 Oswald Farm Road Corcoran, MN 55374 If to City: Jessica Beise, City Administrator City of Corcoran 8200 County Road 116 Corcoran, MN 55340 With Copy to: John J. Thames Carson, Clelland & Schreder 6300 Shingle Creek Parkway Suite 305 Minneapolis, MN 55430 Except as otherwise expressly provided herein, each such notice shall be deemed to have been received by, or served upon, the party to whom addressed on the date on which is three (3) days after the date upon which the same is deposited in the US registered or certified mail, postage prepaid, return receipt requested, properly addressed and if served personally or sent by reputable overnight courier, on the date of service or delivery. Alternatively, any notice or election may be deemed given if delivered via electronic mail, and subsequently acknowledged by the intended recipient at the following addresses: If to Developer: Brian Lother, President blother@comcast.net If to City: Jessica Beise, City Administrator jbeise@corcoranmn.gov 4 With Copy to: John J. Thames john.thames@carsoncs.net Should any party hereto change its address or email address, notice of address change must be to the other party before the change of address is effective. [SIGNATURES ON PAGES TO FOLLOW] 5 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year indicated. BUYER: CITY OF CORCORAN Dated: __________________ By: __________________________ Its Mayor Dated: __________________ By: __________________________ Its Administrator STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 2023, by Tom McKee, the Mayor and by Jessica Beise, the City Administrator of the City of Corcoran. Notary Public 6 SELLERS: HOPE MINISTRIES INTERNATIONAL, INC., a Minnesota non-profit corporation Dated: __________________ By: __________________________ Brian L. Lother Its: President STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of ________________________, 2023, by Brian L. Lother, the President of Hope Ministries International, Inc., a Minnesota non-profit corporation, on behalf of the corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: John J. Thames, Esq. CARSON, CLELLAND & SCHREDER 6300 Shingle Creek Parkway, Suite 305 Minneapolis, MN 55430 763-561-2800 City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-11 Motion By: Seconded By: A RESOLUTION AUTHORIZING CLOSING ON THE PURCHASE OF CERTAIN REAL PROPERTY WHEREAS, Hope Ministries International, Inc., a Minnesota non-profit corporation (the “Seller”) is the owner of certain real property within the City of Corcoran, described on the attached Exhibit A (the “Subject Property”); and WHEREAS, the City Council previously approved and authorized execution of a purchase agreement between the City of Corcoran (the “City”) and Seller, contemplating terms of sale of the Subject Property. Said purchase agreement was fully executed on November 16, 2022; and WHEREAS, the parties have entered into a First Amendment to the purchase agreement which extends the maximum closing date and memorializes the parties’ agreement to have the purchase price paid via a combination of cash at closing and a credit for costs incurred separately by the City on Seller’s behalf, as a part of a different land use application; and WHEREAS, the City and the Seller now desire to close on the purchase and sale of the Subject Property to the City, and the City desires to authorize payment of the purchase price and authorize the Mayor and the Administrator or their respective designees to execute any and all documents necessary and proper to facilitate closing of the transaction. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Corcoran hereby authorizes City staff to make payment of the purchase price for the Subject Property and further authorizes the Mayor and the Administrator or their respective designees to execute any and all documents necessary and proper to facilitate closing of the transaction to purchase the Subject Property from Seller. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee – Mayor ATTEST: ___________________________________ Michelle Friedrich – City Clerk City Seal Added Agenda Item: 9aiii3. Revised City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-11 EXHIBIT A The “Subject Property” Lot 2, Block 1, Hope Place Second Addition, Hennepin County, according to the record plat thereof. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-11 Motion By: Seconded By: A RESOLUTION AUTHORIZING CLOSING ON THE SALE OF CERTAIN REAL PROPERTY WHEREAS, the City of Corcoran (the “City”) is the owner of certain real property within the City of Corcoran, described on the attached Exhibit A (the “Subject Property”); and WHEREAS, the City Council previously approved and authorized execution of a purchase agreement between the City and Hope Ministries International, a Minnesota non-profit corporation, (the “Original Buyer”), contemplating terms of sale of the Subject Property. Said purchase agreement was fully executed on November 16, 2022. WHEREAS, the City and the New Buyer now desire to close on the sale of the Subject Property to New Buyer, and the City desires to authorize the Mayor and the Administrator or their respective designees to execute any and all documents necessary and proper to facilitate closing of the transaction; and NOW THEREFORE BE IT RESOLVED, the City Council of the City of Corcoran hereby authorizes the Mayor and the Administrator or their respective designees to execute any and all documents necessary and proper to facilitate closing of the transaction to sell the Subject Property to New Buyer. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 26th day of January 2023. ________________________________ Tom McKee – Mayor ATTEST: ___________________________________ Michelle Friedrich – City Clerk City Seal Agenda Item: 9aiii3. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-11 EXHIBIT A The “Subject Property” Lot 2, Block 1, Hope Place Second Addition, Hennepin County, according to the record plat thereof. STAFF REPORT Agenda Item : 9b . Council Meeting: Prepared By: Topic: Action Required: Summary : Financi al/Bud get: Options: Rec ommendation Council Acti on: Attac hments: CR100-25-848720.v1 CITY OF CORCORAN, MINNESOTA RESOLUTION NO. 2023-09 APPROVING PROPERTY TAX ABATEMENT IN THE CITY OF CORCORAN FOR CERTAIN PUBLIC INFRASTRUCTURE IMPROVEMENTS BE IT RESOLVED by the City Council of the City of Corcoran, Minnesota (the “City”), as follows: Section 1. Recitals. 1.01. The City proposes to (i) undertake various public improvements, including but not limited to street, stormwater, utility and road improvements to Hackamore Drive, City Center Drive and 79th Place, Horseshoe Road and Horseshoe Bend (the “Project”) with tax abatement bonds authorized by Minnesota Statutes, Sections 469.1812 through 469.1815 (the “Abatement Act”) and (ii) authorize a property tax abatement with respect to various parcels of land that benefit from such public improvements. 1.02. Pursuant to Section 469.1813, subdivision 1 of the Abatement Act, the City may grant an abatement of all or a portion of the taxes imposed by the City on one or more parcels of property to pay for all or part of the cost of financing or providing public infrastructure, increasing or preserving the tax base, providing employment opportunities, and help provide access to services for residents of the City. 1.03. The City has identified 339 parcels located in the City, identified in EXHIBIT A attached hereto (the “Abatement Property”), which will be benefitted by the Project and from which the City proposes to abate all or a portion of the City’s share of taxes to help finance the Project, subject to all the terms and conditions of this resolution. 1.04. The Abatement Property is not located in a tax increment financing district. 1.05. The City is authorized under the Abatement Act and Minnesota Statutes, Chapter 475, as amended (together, the “Act”), to issue one or more series of general obligation tax abatement bonds in the aggregate principal amount not to exceed $5,108,000 (the “Abatement Bonds”) to pay the costs of the Project pursuant to the Abatement Act, and which are expected to be paid primarily through the collection of Abatement (hereinafter defined) revenues. 1.06. On the date hereof, the City Council conducted a duly noticed public hearing on the Abatement at which the views of all interested persons were heard. Section 2. Findings. 2.01. It is hereby found and determined that the benefits to the City from the Abatement will be at least equal to the costs to the City of the Abatement, because (a) the Abatement will help finance public infrastructure in a way that will strengthen the local economy and attract and retain citizens due to improved roads and utilities, help mitigate the identified streets that are in various stages of disrepair and help increase or preserve tax base by stimulating development and maintaining values in the area, help provide construction jobs, and protect the general health and welfare of the community by maintaining public infrastructure and facilities.; and (b) the increased City taxes collected from the Abatement Property upon CR100-25-848720.v1 2 termination of the Abatement are expected to far exceed the amount of the Abatement collected from the Abatement Property during the term of this resolution. 2.02. It is hereby found and determined that the Abatement is in the public interest for the reasons described in Section 2.01 hereof. Section 3. Actions Ratified; Abatement Approved. 3.01. The City Council hereby ratifies all actions of the City’s staff and consultants in arranging for approval of this resolution in accordance with the Abatement Act. 3.02. Subject to the provisions of the Abatement Act, the Abatement is hereby approved and adopted subject to the following terms and conditions: (a) The term “Abatement” means the City’s share of the real property taxes generated from the Abatement Property, in the amounts described in this Section: (i) The aggregate Abatement paid by the City during the term of this resolution will not exceed the amount necessary to pay the principal of and all or a portion of the interest on the Abatement Bonds, up to a maximum of $5,108,000. (ii) Notwithstanding anything to the contrary herein, the Abatement payable on any August 1 and subsequent February 1, combined, will not exceed the amount produced by extending the City’s total tax rate for the applicable year against the tax capacity of the Abatement Property, as of January 2 in the prior year. (iii) In accordance with Section 469.1813, subdivision 8 of the Act, in no year shall the Abatement, together with all other abatements approved by the City under the Act and paid in that year, exceed the greater of ten percent (10%) of the City’s net tax capacity for that year or $200,000 (the “Abatement Volume Cap”). The City may grant any other abatements permitted under the Act after the date of this resolution, provided that to the extent the total abatements in any year exceed the Abatement Volume Cap, the allocation of Abatement Volume Cap to such other abatements is subordinate to the Abatements under this resolution. (b) The City will pay the Abatement in semiannual installments over a period of 15 years each February 1 and August 1, commencing in taxes payable year 2024, and continuing through taxes payable in 2039 or such other dates that correspond to the payment of debt service on the Abatement Bonds over a period not to exceed 15 years. The City will pay the Abatement solely to finance the cost of the Project, through application of Abatement amounts toward debt service payments on the Abatement Bonds (including any bonds issued to refund the initial Abatement Bonds). (c) This resolution may be modified only with the prior written approval of the City, and any modification is subject to Section 469.1813, subdivision 7 of the Abatement Act. (d) In accordance with Section 469.1815 of the Abatement Act, the City will add to its levy in each year during the term of the Abatement the total estimated amount of current year Abatement granted under this resolution. Approved this January 26, 2023 by the City Council of the City of Corcoran, Minnesota. CR100-25-848720.v1 3 Mayor ATTEST: City Clerk CR100-25-848720.v1 A-1 EXHIBIT A ABATEMENT PROPERTY Parcel Identification Numbers: 0111923340004 0111923340061 0111923420035 0111923430052 0111923440016 1211923110028 0111923340005 0111923340062 0111923420036 0111923430053 0111923440017 1211923110029 0111923340006 0111923340063 0111923420037 0111923430054 0111923440018 1211923110030 0111923340007 0111923340064 0111923420038 0111923430055 0111923440019 1211923110031 0111923340008 0111923340065 0111923420039 0111923430056 0111923440020 1211923110032 0111923340009 0111923410004 0111923420040 0111923430057 0111923440021 1211923110033 0111923340010 0111923410005 0111923420041 0111923430058 0111923440022 1211923110034 0111923340011 0111923410006 0111923420042 0111923430059 0111923440023 1211923110035 0111923340012 0111923410007 0111923420043 0111923430060 0111923440024 1211923110036 0111923340013 0111923410008 0111923420044 0111923430061 0111923440025 1211923110037 0111923340014 0111923410009 0111923420045 0111923430062 0111923440026 1211923110038 0111923340015 0111923410010 0111923420046 0111923430063 0111923440027 1211923110039 0111923340016 0111923410011 0111923420047 0111923430064 0111923440028 1211923110040 0111923340017 0111923410012 0111923430003 0111923430065 0111923440029 1211923110041 0111923340018 0111923410013 0111923430004 0111923430066 0111923440030 1211923110042 0111923340019 0111923410014 0111923430005 0111923430067 0111923440031 1211923110043 0111923340020 0111923410015 0111923430006 0111923430068 0111923440032 1211923110044 0111923340021 0111923410016 0111923430007 0111923430069 0111923440033 1211923110045 0111923340022 0111923410017 0111923430008 0111923430070 0111923440034 1211923110046 0111923340023 0111923410018 0111923430010 0111923430071 0111923440035 1211923110047 0111923340024 0111923410019 0111923430014 0111923430072 0111923440036 1211923110048 0111923340025 0111923410020 0111923430015 0111923430073 0111923440037 1211923110049 0111923340026 0111923410021 0111923430016 0111923430074 0111923440038 1211923110050 0111923340027 0111923410022 0111923430017 0111923430075 0111923440039 1211923110051 0111923340028 0111923410023 0111923430018 0111923430076 0111923440040 1211923110052 0111923340029 0111923410024 0111923430019 0111923430077 0111923440041 1211923110053 0111923340030 0111923410025 0111923430020 0111923430078 0111923440042 1211923110054 0111923340031 0111923420004 0111923430021 0111923430079 0111923440043 1211923110055 0111923340032 0111923420005 0111923430022 0111923430080 0111923440044 1211923110056 0111923340033 0111923420006 0111923430023 0111923430081 0111923440050 1211923110057 0111923340034 0111923420008 0111923430024 0111923430082 0111923440051 1211923110058 0111923340035 0111923420009 0111923430025 0111923430083 0111923440052 1211923110059 0111923340036 0111923420010 0111923430026 0111923430084 0111923440053 1211923110060 0111923340037 0111923420011 0111923430027 0111923430085 1211923110003 1211923110061 0111923340038 0111923420012 0111923430028 0111923430086 1211923110004 1211923110062 0111923340039 0111923420013 0111923430029 0111923430087 1211923110005 1211923110063 CR100-25-848720.v1 A-2 0111923340040 0111923420014 0111923430030 0111923430088 1211923110006 1211923110064 0111923340041 0111923420015 0111923430031 0111923430089 1211923110007 1211923110065 0111923340042 0111923420016 0111923430032 0111923430090 1211923110008 1211923110066 0111923340043 0111923420017 0111923430033 0111923430091 1211923110009 1211923110067 0111923340044 0111923420018 0111923430034 0111923430092 1211923110010 1211923110068 0111923340045 0111923420019 0111923430035 0111923430093 1211923110011 1211923110069 0111923340046 0111923420020 0111923430036 0111923430094 1211923110012 1211923120002 0111923340047 0111923420021 0111923430037 0111923440002 1211923110013 1211923120003 0111923340048 0111923420022 0111923430038 0111923440003 1211923110014 1211923120004 0111923340049 0111923420023 0111923430039 0111923440004 1211923110015 1211923120005 0111923340050 0111923420024 0111923430040 0111923440005 1211923110016 1211923120006 0111923340051 0111923420025 0111923430041 0111923440006 1211923110017 1211923120007 0111923340052 0111923420026 0111923430042 0111923440007 1211923110018 1211923120008 0111923340053 0111923420027 0111923430043 0111923440008 1211923110020 1211923120009 0111923340054 0111923420028 0111923430044 0111923440009 1211923110021 1211923120010 0111923340055 0111923420029 0111923430045 0111923440010 1211923110022 1211923120011 0111923340056 0111923420030 0111923430046 0111923440011 1211923110023 1211923120012 0111923340057 0111923420031 0111923430047 0111923440012 1211923110024 1211923120013 0111923340058 0111923420032 0111923430049 0111923440013 1211923110025 0111923340059 0111923420033 0111923430050 0111923440014 1211923110026 0111923340060 0111923420034 0111923430051 0111923440015 1211923110027 STAFF REPORT Agenda Item : 9c . Council Meeting: Prepared By: Topic: Action Required: Summary : • • • • Financi al/Bud get: Options: Recommendation Council Acti on: Attac hments: Finance Plan City of Corcoran, Minnesota $26,110,000 General Obligation Bonds, Series 2023A January 26, 2023 150 South 5th Street, Suite 3300 Minneapolis, MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC | Registered MSRB and SEC Contents Executive Summary Issue Overview Purpose Authority Structure Security and Source of Repayment Plan Rationale Issuing Process Attachment 1 – Preliminary Debt Service Schedules Attachment 2 – Estimated Levy Schedule Attachment 3 – Related Considerations Not Bank Qualified Arbitrage Compliance Continuing Disclosure Premiums Rating Attachment 4 – Calendar of Events Attachment 5 - Risk Factors Northland Securities, Inc. Page 2 Executive Summary The following is a summary of the recommended terms for the issuance of approximately $26,110,000 General Obligation Bonds, Series 2023A (the “Bonds” or “Issue”). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 3 – Related Considerations. Purpose Proceeds from the Bonds will be used to finance water improvements and various road projects, and to pay the costs associated with the issuance of the Bonds. Security The Bonds will be a general obligation of the City. The City will pledge net revenues of the City’s water system, an abatement levy, and ad valorem taxes. Repayment Term The Bonds will mature annually each February 1 in the years 2024 through 2053. Interest on the Bonds will be payable on February 1, 2024, and semiannually thereafter on each February 1 and August 1. Estimated Interest Rate True interest cost (TIC): 4.85% Prepayment Option Bonds maturing on and after February 1, 2032 will be subject to redemption on February 1, 2031 and any day thereafter at a price of par plus accrued interest. Rating A rating will be requested from Moody’s. The City’s general obligation debt is currently rated "Aa3”by Moody’s. Tax Status The Bonds will be tax-exempt, non-bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Bonds are discussed in Attachment 5. Type of Bond Sale Public Sale – Competitive Bids Proposals Received Thursday, March 23, 2023 @ 10:00 A.M*. Council Consideration Thursday, March 23, 2023 @ 7:00 P.M. *The Federal Open Market Committee (FOMC, the Fed) meets on March 21 and March 22, 2023. Northland will monitor market conditions and expectations of the FOMC meeting to determine if a change in the date of the bond sale is in the best interests of the City. Northland Securities, Inc. Page 3 Issue Overview Purpose Proceeds from the Bonds will be used to finance water improvements (the “Water Portion”) and the following road and park projects (collectively, the “Tax Abatement Portions”): • Hackamore Road • Horseshoe Bend • City Center Drive and Private Development Property Grading Proceeds will also be used to pay costs associated with issuing the Bonds. The Bonds have been sized based on estimates provided by City staff. The final construction costs are expected to be confirmed on March 9, 2023. The table below contains the estimated sources and uses of funds for the bond issue. Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes, Sections 469.1812 through 469.1815 and Chapters 444, and 475. System Revenue Portions Under Chapter 444, general obligation system revenue bonds may be issued to build, construct, reconstruct, repair, enlarge, improve, or in any other manner obtain sanitary sewer, water and storm sewer facilities, and maintain and operate the facilities inside or outside a city’s corporate limits. Abatement Portion Sections 469.1812 through 469.1815 does not authorize the actual “abatement of taxes.” Instead, the City will have the authority to levy a property tax (an abatement levy) that is equivalent to taxes that could be abated. At time of issuance, the City will certify abatement levies to pay the principal on the Bonds and debt service levies to pay interest (together “the tax levies”). Water Supply NE Tax Abatement (Hackamore Road) Tax Abatement (Horseshoe Bend) Tax Abatement (City Center Dr. & Develop. Grading) Issue Summary Sources Of Funds Par Amount of Bonds $21,605,000.00 $1,840,000.00 $420,000.00 $2,245,000.00 $26,110,000.00 Federal Funds 3,000,000.00 ---3,000,000.00 Municipal State Aid ---2,200,000.00 2,200,000.00 Proceeds from Sale of Property ---670,000.00 670,000.00 Total Sources $24,605,000.00 $1,840,000.00 $420,000.00 $5,115,000.00 $31,980,000.00 Uses Of Funds Deposit to Project Construction Fund 24,200,000.00 1,750,000.00 400,000.00 5,000,000.00 31,350,000.00 Total Underwriter's Discount (1.450%)313,272.50 26,680.00 6,090.00 32,552.50 378,595.00 Deposit to Capitalized Interest (CIF) Fund -57,118.71 12,059.42 69,659.88 138,838.01 Costs of Issuance 89,270.61 7,602.77 1,735.40 9,276.22 107,885.00 Rounding Amount 2,456.89 (1,401.48)115.18 3,511.40 4,681.99 Total Uses $24,605,000.00 $1,840,000.00 $420,000.00 $5,115,000.00 $31,980,000.00 Northland Securities, Inc. Page 4 A public hearing will be held on January 26, 2023, and following the hearing the City Council will consider adoption of a resolution approving the property tax abatements and issuance of the Abatement Portion of the Bonds. The maximum annual abatement levy to be certified for the Abatement Portion of the Bonds is estimated to be approximately $355,000, which is less than the total amount of abatement levies the City may approve pursuant to State Statute. Based on the City’s 2022 net tax capacity, the City has authority to approve total maximum annual abated levies in the amount of $1,309,430 (the “statutory maximum”). The City has one outstanding bond (a portion of the Series 2018A Bonds) subject to the maximum abatement levy, which when combined with the estimated abatement levy will still be below the City’s statutory maximum. Structure The Water portion of the of the Bonds has been structured over 30 years, with relatively level debt service payments beginning on February 1, 2024. The Hackamore Road and City Center Drive and Development portions of the Tax Abatement Portions has been structured over 15 years, with relatively level debt service payments beginning on February 1, 2025. The Horseshoe Bend portion of the Tax Abatement Portions has been structured over 10 years, with relatively level debt service payments beginning on February 1, 2025. The proposed structures for the bond issue and preliminary debt service projections for each portion of the Issue are illustrated in Attachment 1 and the estimated levies are illustrated in Attachment 2. Security and Source of Repayment The Bonds will be general obligations of the City. The finance plan relies on the following assumptions for the revenues used to pay debt service, as provided by City staff: • Water System Revenues. Net revenues of the City’s water funds (operating funds) will be pledged for payment of the Water Portion of the Bonds. The City will covenant to adopt water rates and charges that are sufficient to produce net revenues equal to at least 105% of the debt service requirements on the Water Portion of the Bonds. In the event there is a deficiency in the amount of net revenues available for payment of debt service, the City may levy taxes to cover the insufficiency, but only on a temporary basis until rates are adjusted. • Abatement Levy. The City will pledge abatement levies for payment of the Abatement Portions of the Bonds. As required by statute for issuance of Tax Abatement Bonds, the annual City taxes on the parcels to be included within the abatement project area are estimated, at a minimum, to equal the annual principal over the terms of the Abatement Portions of the Bonds. Properties within the abatement project area will pay the same amount (rate) for City taxes as property outside of the abatement project area. Inclusion within the abatement project area has no tax implications for these properties. There is no different impact on individual property tax statements for properties within the tax abatement project area as compared to other properties within the City as a whole. • Special Assessments. Although not pledged as security to the Bonds, the City anticipates levying $200,000 in special assessments against benefitted properties in 2023 for the City Center Drive & Private Development portion of the Tax Abatement Portions. The Northland Securities, Inc. Page 5 assessments are structured for level annual payments with interest charged at a rate of 5.30% (1% over the True Interest Cost) and spread over 15 years. • Property Taxes. The remaining revenues needed to pay debt service on the Bonds are expected to come from property tax levies. The initial projections show a tax levy ranging from approximately $15,191 to $178,647 for the Abatement Portions of the Bonds is needed to produce the statutory requirement of 105% of debt service, after accounting for abatement levies, water system revenues and special assessments. The levies may be adjusted annually based on actual special assessment collections and additional monies in the debt service fund. The initial tax levies will be made in 2023 for taxes payable in 2024. Given the timing of the initial revenue from the tax levy and special assessments, the structure includes capitalized interest for the Tax Abatement Portions of the Bonds to cover the interest payments due on February 1, 2024, for those portions. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to the financed project and City objectives, Northland’s knowledge of the City and our experience in working with similar cities and projects. The issuance of General Obligation Bonds provides the best means of achieving the City’s objectives and cost-effective financing. The City has successfully issued and managed this type of debt for previous projects. Issuing Process Northland will receive bids to purchase the Bonds on Thursday, March 23, 2023, at 10:00 AM. Market conditions and the marketability of the Bonds support issuance through a competitive sale. This process has been chosen as it is intended to produce the lowest combination of interest expense and underwriting expense on the date and time set to receive bids. The calendar of events for the issuing process can be found in Attachment 4. Municipal Advisor: Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel: Kennedy & Graven, Chartered, Minneapolis, Minnesota Paying Agent: Northland Trust Services, Inc., Minneapolis, Minnesota Northland Securities, Inc. Page 6 Attachment 1 – Preliminary Debt Service Schedules Total Combined 2023A Bonds Continued on next page. Date Principal Coupon Interest Total P+I Fiscal Total 04/19/2023 ----- 02/01/2024 585,000.00 3.450%914,633.72 1,499,633.72 1,499,633.72 08/01/2024 --573,717.50 573,717.50 - 02/01/2025 635,000.00 3.350%573,717.50 1,208,717.50 1,782,435.00 08/01/2025 --563,081.25 563,081.25 - 02/01/2026 650,000.00 3.350%563,081.25 1,213,081.25 1,776,162.50 08/01/2026 --552,193.75 552,193.75 - 02/01/2027 680,000.00 3.400%552,193.75 1,232,193.75 1,784,387.50 08/01/2027 --540,633.75 540,633.75 - 02/01/2028 705,000.00 3.450%540,633.75 1,245,633.75 1,786,267.50 08/01/2028 --528,472.50 528,472.50 - 02/01/2029 725,000.00 3.550%528,472.50 1,253,472.50 1,781,945.00 08/01/2029 --515,603.75 515,603.75 - 02/01/2030 750,000.00 3.650%515,603.75 1,265,603.75 1,781,207.50 08/01/2030 --501,916.25 501,916.25 - 02/01/2031 780,000.00 3.700%501,916.25 1,281,916.25 1,783,832.50 08/01/2031 --487,486.25 487,486.25 - 02/01/2032 805,000.00 3.850%487,486.25 1,292,486.25 1,779,972.50 08/01/2032 --471,990.00 471,990.00 - 02/01/2033 835,000.00 4.000%471,990.00 1,306,990.00 1,778,980.00 08/01/2033 --455,290.00 455,290.00 - 02/01/2034 875,000.00 4.100%455,290.00 1,330,290.00 1,785,580.00 08/01/2034 --437,352.50 437,352.50 - 02/01/2035 855,000.00 4.200%437,352.50 1,292,352.50 1,729,705.00 08/01/2035 --419,397.50 419,397.50 - 02/01/2036 890,000.00 4.300%419,397.50 1,309,397.50 1,728,795.00 08/01/2036 --400,262.50 400,262.50 - 02/01/2037 930,000.00 4.400%400,262.50 1,330,262.50 1,730,525.00 08/01/2037 --379,802.50 379,802.50 - 02/01/2038 970,000.00 4.500%379,802.50 1,349,802.50 1,729,605.00 08/01/2038 --357,977.50 357,977.50 - 02/01/2039 1,015,000.00 4.600%357,977.50 1,372,977.50 1,730,955.00 08/01/2039 --334,632.50 334,632.50 - 02/01/2040 690,000.00 4.650%334,632.50 1,024,632.50 1,359,265.00 08/01/2040 --318,590.00 318,590.00 - 02/01/2041 725,000.00 4.750%318,590.00 1,043,590.00 1,362,180.00 08/01/2041 --301,371.25 301,371.25 - 02/01/2042 755,000.00 4.800%301,371.25 1,056,371.25 1,357,742.50 08/01/2042 --283,251.25 283,251.25 - 02/01/2043 795,000.00 4.850%283,251.25 1,078,251.25 1,361,502.50 08/01/2043 --263,972.50 263,972.50 - 02/01/2044 830,000.00 4.900%263,972.50 1,093,972.50 1,357,945.00 08/01/2044 --243,637.50 243,637.50 - 02/01/2045 875,000.00 4.900%243,637.50 1,118,637.50 1,362,275.00 08/01/2045 --222,200.00 222,200.00 - 02/01/2046 915,000.00 4.950%222,200.00 1,137,200.00 1,359,400.00 08/01/2046 --199,553.75 199,553.75 - 02/01/2047 960,000.00 5.000%199,553.75 1,159,553.75 1,359,107.50 Northland Securities, Inc. Page 7 *Based on Preliminary Non-Bank Qualified “Aa3” Rates as of January 11, 2023, plus 0.75%. Date Principal Coupon Interest Total P+I Fiscal Total 08/01/2047 --175,553.75 175,553.75 - 02/01/2048 1,010,000.00 5.050%175,553.75 1,185,553.75 1,361,107.50 08/01/2048 --150,051.25 150,051.25 - 02/01/2049 1,060,000.00 5.050%150,051.25 1,210,051.25 1,360,102.50 08/01/2049 --123,286.25 123,286.25 - 02/01/2050 1,115,000.00 5.100%123,286.25 1,238,286.25 1,361,572.50 08/01/2050 --94,853.75 94,853.75 - 02/01/2051 1,170,000.00 5.100%94,853.75 1,264,853.75 1,359,707.50 08/01/2051 --65,018.75 65,018.75 - 02/01/2052 1,230,000.00 5.150%65,018.75 1,295,018.75 1,360,037.50 08/01/2052 --33,346.25 33,346.25 - 02/01/2053 1,295,000.00 5.150%33,346.25 1,328,346.25 1,361,692.50 Total $26,110,000.00 -$20,903,626.22 $47,013,626.22 - Yield Statistics Bond Year Dollars $437,077.83 Average Life 16.740 Years Average Coupon 4.7825867% Net Interest Cost (NIC)4.8692063% True Interest Cost (TIC)4.8519286% Bond Yield for Arbitrage Purposes 4.7160718% All Inclusive Cost (AIC)4.8912163% IRS Form 8038 Net Interest Cost 4.7825867% Weighted Average Maturity 16.740 Years Optional Redemption 02/01/2031 @100.000% Northland Securities, Inc. Page 8 Water Portion Date Principal Coupon Interest Total P+I Fiscal Total 04/19/2023 ----- 02/01/2024 585,000.00 3.450%775,795.71 1,360,795.71 1,360,795.71 08/01/2024 --485,097.50 485,097.50 - 02/01/2025 390,000.00 3.350%485,097.50 875,097.50 1,360,195.00 08/01/2025 --478,565.00 478,565.00 - 02/01/2026 400,000.00 3.350%478,565.00 878,565.00 1,357,130.00 08/01/2026 --471,865.00 471,865.00 - 02/01/2027 415,000.00 3.400%471,865.00 886,865.00 1,358,730.00 08/01/2027 --464,810.00 464,810.00 - 02/01/2028 430,000.00 3.450%464,810.00 894,810.00 1,359,620.00 08/01/2028 --457,392.50 457,392.50 - 02/01/2029 445,000.00 3.550%457,392.50 902,392.50 1,359,785.00 08/01/2029 --449,493.75 449,493.75 - 02/01/2030 460,000.00 3.650%449,493.75 909,493.75 1,358,987.50 08/01/2030 --441,098.75 441,098.75 - 02/01/2031 480,000.00 3.700%441,098.75 921,098.75 1,362,197.50 08/01/2031 --432,218.75 432,218.75 - 02/01/2032 495,000.00 3.850%432,218.75 927,218.75 1,359,437.50 08/01/2032 --422,690.00 422,690.00 - 02/01/2033 515,000.00 4.000%422,690.00 937,690.00 1,360,380.00 08/01/2033 --412,390.00 412,390.00 - 02/01/2034 535,000.00 4.100%412,390.00 947,390.00 1,359,780.00 08/01/2034 --401,422.50 401,422.50 - 02/01/2035 555,000.00 4.200%401,422.50 956,422.50 1,357,845.00 08/01/2035 --389,767.50 389,767.50 - 02/01/2036 580,000.00 4.300%389,767.50 969,767.50 1,359,535.00 08/01/2036 --377,297.50 377,297.50 - 02/01/2037 605,000.00 4.400%377,297.50 982,297.50 1,359,595.00 08/01/2037 --363,987.50 363,987.50 - 02/01/2038 630,000.00 4.500%363,987.50 993,987.50 1,357,975.00 08/01/2038 --349,812.50 349,812.50 - 02/01/2039 660,000.00 4.600%349,812.50 1,009,812.50 1,359,625.00 08/01/2039 --334,632.50 334,632.50 - 02/01/2040 690,000.00 4.650%334,632.50 1,024,632.50 1,359,265.00 08/01/2040 --318,590.00 318,590.00 - 02/01/2041 725,000.00 4.750%318,590.00 1,043,590.00 1,362,180.00 08/01/2041 --301,371.25 301,371.25 - 02/01/2042 755,000.00 4.800%301,371.25 1,056,371.25 1,357,742.50 08/01/2042 --283,251.25 283,251.25 - 02/01/2043 795,000.00 4.850%283,251.25 1,078,251.25 1,361,502.50 08/01/2043 --263,972.50 263,972.50 - 02/01/2044 830,000.00 4.900%263,972.50 1,093,972.50 1,357,945.00 08/01/2044 --243,637.50 243,637.50 - 02/01/2045 875,000.00 4.900%243,637.50 1,118,637.50 1,362,275.00 08/01/2045 --222,200.00 222,200.00 - 02/01/2046 915,000.00 4.950%222,200.00 1,137,200.00 1,359,400.00 08/01/2046 --199,553.75 199,553.75 - 02/01/2047 960,000.00 5.000%199,553.75 1,159,553.75 1,359,107.50 08/01/2047 --175,553.75 175,553.75 - 02/01/2048 1,010,000.00 5.050%175,553.75 1,185,553.75 1,361,107.50 08/01/2048 --150,051.25 150,051.25 - 02/01/2049 1,060,000.00 5.050%150,051.25 1,210,051.25 1,360,102.50 08/01/2049 --123,286.25 123,286.25 - 02/01/2050 1,115,000.00 5.100%123,286.25 1,238,286.25 1,361,572.50 08/01/2050 --94,853.75 94,853.75 - 02/01/2051 1,170,000.00 5.100%94,853.75 1,264,853.75 1,359,707.50 08/01/2051 --65,018.75 65,018.75 - 02/01/2052 1,230,000.00 5.150%65,018.75 1,295,018.75 1,360,037.50 08/01/2052 --33,346.25 33,346.25 - 02/01/2053 1,295,000.00 5.150%33,346.25 1,328,346.25 1,361,692.50 Total $21,605,000.00 -$19,190,250.71 $40,795,250.71 - Northland Securities, Inc. Page 9 Hackamore Road Portion Horseshoe Portion Date Principal Coupon Interest Total P+I Fiscal Total 04/19/2023 ----- 02/01/2024 --57,118.71 57,118.71 57,118.71 08/01/2024 --36,458.75 36,458.75 - 02/01/2025 95,000.00 3.350%36,458.75 131,458.75 167,917.50 08/01/2025 --34,867.50 34,867.50 - 02/01/2026 95,000.00 3.350%34,867.50 129,867.50 164,735.00 08/01/2026 --33,276.25 33,276.25 - 02/01/2027 100,000.00 3.400%33,276.25 133,276.25 166,552.50 08/01/2027 --31,576.25 31,576.25 - 02/01/2028 105,000.00 3.450%31,576.25 136,576.25 168,152.50 08/01/2028 --29,765.00 29,765.00 - 02/01/2029 110,000.00 3.550%29,765.00 139,765.00 169,530.00 08/01/2029 --27,812.50 27,812.50 - 02/01/2030 110,000.00 3.650%27,812.50 137,812.50 165,625.00 08/01/2030 --25,805.00 25,805.00 - 02/01/2031 115,000.00 3.700%25,805.00 140,805.00 166,610.00 08/01/2031 --23,677.50 23,677.50 - 02/01/2032 120,000.00 3.850%23,677.50 143,677.50 167,355.00 08/01/2032 --21,367.50 21,367.50 - 02/01/2033 125,000.00 4.000%21,367.50 146,367.50 167,735.00 08/01/2033 --18,867.50 18,867.50 - 02/01/2034 130,000.00 4.100%18,867.50 148,867.50 167,735.00 08/01/2034 --16,202.50 16,202.50 - 02/01/2035 135,000.00 4.200%16,202.50 151,202.50 167,405.00 08/01/2035 --13,367.50 13,367.50 - 02/01/2036 140,000.00 4.300%13,367.50 153,367.50 166,735.00 08/01/2036 --10,357.50 10,357.50 - 02/01/2037 145,000.00 4.400%10,357.50 155,357.50 165,715.00 08/01/2037 --7,167.50 7,167.50 - 02/01/2038 155,000.00 4.500%7,167.50 162,167.50 169,335.00 08/01/2038 --3,680.00 3,680.00 - 02/01/2039 160,000.00 4.600%3,680.00 163,680.00 167,360.00 Total $1,840,000.00 -$725,616.21 $2,565,616.21 - Date Principal Coupon Interest Total P+I Fiscal Total 04/19/2023 ----- 02/01/2024 --12,059.42 12,059.42 12,059.42 08/01/2024 --7,697.50 7,697.50 - 02/01/2025 35,000.00 3.350%7,697.50 42,697.50 50,395.00 08/01/2025 --7,111.25 7,111.25 - 02/01/2026 35,000.00 3.350%7,111.25 42,111.25 49,222.50 08/01/2026 --6,525.00 6,525.00 - 02/01/2027 40,000.00 3.400%6,525.00 46,525.00 53,050.00 08/01/2027 --5,845.00 5,845.00 - 02/01/2028 40,000.00 3.450%5,845.00 45,845.00 51,690.00 08/01/2028 --5,155.00 5,155.00 - 02/01/2029 40,000.00 3.550%5,155.00 45,155.00 50,310.00 08/01/2029 --4,445.00 4,445.00 - 02/01/2030 45,000.00 3.650%4,445.00 49,445.00 53,890.00 08/01/2030 --3,623.75 3,623.75 - 02/01/2031 45,000.00 3.700%3,623.75 48,623.75 52,247.50 08/01/2031 --2,791.25 2,791.25 - 02/01/2032 45,000.00 3.850%2,791.25 47,791.25 50,582.50 08/01/2032 --1,925.00 1,925.00 - 02/01/2033 45,000.00 4.000%1,925.00 46,925.00 48,850.00 08/01/2033 --1,025.00 1,025.00 - 02/01/2034 50,000.00 4.100%1,025.00 51,025.00 52,050.00 Total $420,000.00 -$104,346.92 $524,346.92 - Northland Securities, Inc. Page 10 City Center Drive Street & Private Development Property Grading Portion Date Principal Coupon Interest Total P+I Fiscal Total 04/19/2023 ----- 02/01/2024 --69,659.88 69,659.88 69,659.88 08/01/2024 --44,463.75 44,463.75 - 02/01/2025 115,000.00 3.350%44,463.75 159,463.75 203,927.50 08/01/2025 --42,537.50 42,537.50 - 02/01/2026 120,000.00 3.350%42,537.50 162,537.50 205,075.00 08/01/2026 --40,527.50 40,527.50 - 02/01/2027 125,000.00 3.400%40,527.50 165,527.50 206,055.00 08/01/2027 --38,402.50 38,402.50 - 02/01/2028 130,000.00 3.450%38,402.50 168,402.50 206,805.00 08/01/2028 --36,160.00 36,160.00 - 02/01/2029 130,000.00 3.550%36,160.00 166,160.00 202,320.00 08/01/2029 --33,852.50 33,852.50 - 02/01/2030 135,000.00 3.650%33,852.50 168,852.50 202,705.00 08/01/2030 --31,388.75 31,388.75 - 02/01/2031 140,000.00 3.700%31,388.75 171,388.75 202,777.50 08/01/2031 --28,798.75 28,798.75 - 02/01/2032 145,000.00 3.850%28,798.75 173,798.75 202,597.50 08/01/2032 --26,007.50 26,007.50 - 02/01/2033 150,000.00 4.000%26,007.50 176,007.50 202,015.00 08/01/2033 --23,007.50 23,007.50 - 02/01/2034 160,000.00 4.100%23,007.50 183,007.50 206,015.00 08/01/2034 --19,727.50 19,727.50 - 02/01/2035 165,000.00 4.200%19,727.50 184,727.50 204,455.00 08/01/2035 --16,262.50 16,262.50 - 02/01/2036 170,000.00 4.300%16,262.50 186,262.50 202,525.00 08/01/2036 --12,607.50 12,607.50 - 02/01/2037 180,000.00 4.400%12,607.50 192,607.50 205,215.00 08/01/2037 --8,647.50 8,647.50 - 02/01/2038 185,000.00 4.500%8,647.50 193,647.50 202,295.00 08/01/2038 --4,485.00 4,485.00 - 02/01/2039 195,000.00 4.600%4,485.00 199,485.00 203,970.00 Total $2,245,000.00 -$883,412.38 $3,128,412.38 - Northland Securities, Inc. Page 11 Attachment 2 – Estimated Levy Schedule Tax Abatement Portions (combined) Date Total P+I CIF 105% Levy Less: Abatement Levy Net Levy Less: Special Assessment Revenue*Reduced Levy Levy Year Collection Year 02/01/2024 138,838.01 (138,838.01)----- 02/01/2025 422,240.00 -443,352.00 245,000.00 198,352.00 19,705.13 178,646.87 2023 2024 02/01/2026 419,032.50 -439,984.13 250,000.00 189,984.13 19,705.14 170,278.99 2024 2025 02/01/2027 425,657.50 -446,940.38 265,000.00 181,940.38 19,705.14 162,235.24 2025 2026 02/01/2028 426,647.50 -447,979.88 275,000.00 172,979.88 19,705.13 153,274.75 2026 2027 02/01/2029 422,160.00 -443,268.00 280,000.00 163,268.00 19,705.14 143,562.86 2027 2028 02/01/2030 422,220.00 -443,331.00 290,000.00 153,331.00 19,705.14 133,625.86 2028 2029 02/01/2031 421,635.00 -442,716.75 300,000.00 142,716.75 19,705.14 123,011.61 2029 2030 02/01/2032 420,535.00 -441,561.75 310,000.00 131,561.75 19,705.14 111,856.61 2030 2031 02/01/2033 418,600.00 -439,530.00 320,000.00 119,530.00 19,705.14 99,824.86 2031 2032 02/01/2034 425,800.00 -447,090.00 340,000.00 107,090.00 19,705.14 87,384.86 2032 2033 02/01/2035 371,860.00 -390,453.00 300,000.00 90,453.00 19,705.14 70,747.86 2033 2034 02/01/2036 369,260.00 -387,723.00 310,000.00 77,723.00 19,705.12 58,017.88 2034 2035 02/01/2037 370,930.00 -389,476.50 325,000.00 64,476.50 19,705.14 44,771.36 2035 2036 02/01/2038 371,630.00 -390,211.50 340,000.00 50,211.50 19,705.14 30,506.36 2036 2037 02/01/2039 371,330.00 -389,896.50 355,000.00 34,896.50 19,705.13 15,191.37 2037 2038 Total $6,218,375.51 (138,838.01)$6,383,514.38 $4,505,000.00 $1,878,514.38 $295,577.05 $1,582,937.33 *Special assessment revenue for the City Center Drive Street & Private Development Property Grading portion is based on assessments totaling $200,000 assessed at a rate of 5.30% (1% over the True Interest Cost, rounded to the nearest 0.05%), with equal annual payments spread over 15 years. Northland Securities, Inc. Page 12 Attachment 3 – Related Considerations Not Bank Qualified The Bonds are more than $10,000,000 in tax-exempt debt. Therefore, the Bonds will not be designated as “bank qualified” obligations pursuant to Federal Tax Law. Arbitrage Compliance Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the City expects to qualify for is the “24-month exception.” Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements in greater detail. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing disclosure commitments (the “Undertaking”) is contained in the Official Statement that will be prepared to offer the Bonds to investors. The City has more than $10,000,000 of outstanding debt and is required to undertake “full” continuing disclosure. Full disclosure requires annual posting of the audit and a separate continuing disclosure report, as well as the reporting of certain “material events.” Material events set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance of “financial obligations” (such as USDA loans, Public Finance Authority loans and lease agreements) must be reported within ten days of occurrence. Northland currently serves as dissemination agent for the City. We will assist with getting your annual report filed in compliance with full continuing disclosure regulations. Premiums In the current market environment, it is likely that bids received from underwriters will include premiums. A premium bid occurs when the purchaser pays the City an amount in excess of the par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums reflects the bidder’s view on future market conditions, tax considerations for investors and other factors. Ultimately, the true interest cost (“TIC”) calculation will determine the lowest bid, regardless of premium. Northland Securities, Inc. Page 13 A premium bid produces additional funds that can be used in several ways: • The premium means that the City needs less bond proceeds and can reduce the size of the issue by the amount of the premium. • The premium can be deposited in the Construction Fund and used to pay additional project costs, rather than used to reduce the size of the issue. • The premium can be deposited in the Debt Service Fund and used to pay principal and interest. Northland will work with City staff prior to the sale day to determine use of premium (if any). A consideration for use of premium is the bank qualification of the Bonds. Rating A rating will be requested from Moody’s. The City’s general obligation debt is currently rated "Aa3" by Moody’s. The rating process will include a conference call with the rating analyst from Moody’s. Northland will assist City staff in preparing for and conducting the rating calls. Northland Securities, Inc. Page 14 Attachment 4 – Calendar of Events The following checklist of items denotes each milestone activity as well as the members of the finance team who will have the responsibility to complete it. Please note this proposed timetable assumes regularly scheduled City Council meetings. Date Action Responsible Party December 1, 2022 City to confirm parcels for Tax Abatement (Northland will assist City with the process of identifying parcels and coordinating with bond counsel) City Staff December 15, 2022 Resolution Calling for the Tax Abatement Hearing sent to City Bond Counsel December 22, 2022 Resolution Calling for the Tax Abatement Hearing Adopted by City Council City Council Action, Northland, Bond Counsel January 12, 2022 General Information Certificate Sent to City for updates Northland December 2022 January 2023 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 1 2 3 4 5 6 7 4 5 6 7 8 9 10 8 9 10 11 12 13 14 11 12 13 14 15 16 17 15 16 17 18 19 20 21 18 19 20 21 22 23 24 22 23 24 25 26 27 28 25 26 27 28 29 30 31 29 30 31 February 2023 March 2023 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 5 6 7 8 9 10 11 12 13 14 15 16 17 18 12 13 14 15 16 17 18 19 20 21 22 23 24 25 19 20 21 22 23 24 25 26 27 28 26 27 28 29 30 31 April 2023 May 2023 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 1 2 3 4 5 6 2 3 4 5 6 7 8 7 8 9 10 11 12 13 9 10 11 12 13 14 15 14 15 16 17 18 19 20 16 17 18 19 20 21 22 21 22 23 24 25 26 27 23 24 25 26 27 28 29 28 29 30 31 30 Holiday Northland Securities, Inc. Page 15 Date Action Responsible Party January 16, 2023 Notice of City Public Hearing for Tax Abatement Published No Later Than This Date (10-day notice) City Staff January 19, 2023 Finance Plan and Set Sale Resolution sent to City Northland, Bond Counsel January 26, 2023 Public Hearing to Approve Tax Abatement Held by City Council and Resolution Approving Tax Abatement Adopted by City Council Set Sale Resolution Adopted and Finance Plan Reviewed City Council Action, Northland, Bond Counsel Bid opening and award City Staff February 1, 2023 General Information Certificate Returned to Northland City Staff February 15, 2023 Preliminary Official Statement Sent to City for Sign Off and to Moody’s Northland Week of February 27 or March 6, 2023 Rating Conference Call Northland, City Staff, Rating Agency March 9, 2023 City confirms project costs to be financed and source of payment and plans for use of any premium that may be bid Decision on date for Bond Sale to be finalized* City Staff March 15, 2023 Rating Received Moody’s, City Staff, Northland March 16, 2023 Authorizing Resolution sent to City Bond Counsel March 21-22, 2023 FOMC Meeting* March 23, 2023 Bond Sale 10:00 a.m.* Authorizing Resolution Adopted – 7:00 p.m. Northland, Bond Counsel, City Council Action April 19, 2023 Closing on the Bonds (Proceeds available) Northland, City Staff, Bond Counsel *The Federal Open Market Committee (FOMC, the Fed) meets on March 21 and March 22, 2023. Northland will monitor market conditions and expectations of the FOMC meeting to determine if a change in the date of the bond sale is in the best interests of the City. Northland Securities, Inc. Page 16 Attachment 5 - Risk Factors Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values, would affect plans for payment of debt service. Delinquent payment of property taxes would reduce revenues available to pay debt service. Special Assessments: Special assessments have not been levied at this time. This Finance Plan is based on the assumptions listed earlier in this report. Changes in the terms and timing for the actual assessments will alter the projected flow of funds for payment of debt service on the Improvement Portion of the Bonds. Also, special assessments may be prepaid. It is likely that the income earned on the investment of prepaid assessments will be less than the interest paid if the assessments remained outstanding. Delinquencies in assessment collections would reduce revenues needed to pay debt service. The collection of deferred assessments, if any, has not been included in the revenue projections. Projected assessment income should be reviewed annually and adjusted as needed. Tax Abatement: The tax abatement levy needs to be calculated annually in accordance with the abatement resolution. The abatement levy must be included in the preliminary levy used for annual Truth in Taxation hearings. A tax abatement levy was authorized as a special levy (not subject to levy limits) under the most recent legislation. Levy limits are not currently enacted. The status of a tax abatement levy under future levy limitations (if any) cannot be predicted. System Revenues: The City pledges the net revenues of the water system to the payment of principal and interest on the Water Portion of the Bonds, respectively. The failure to adjust rates and charges as needed and the loss of significant customers will affect available net revenues. If the net revenues are insufficient, the City is required to levy property taxes or use other revenues to cover the deficiency. Property taxes can only be used on a temporary basis and may not be an ongoing source of revenue to pay debt service. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds. These risks include, but are not limited to: • Failure to comply with covenants in bond resolution. • Failure to comply with Undertaking for continuing disclosure. • Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. MUNICIPAL ADVISORY SERVICE AGREEMENT BY AND BETWEEN THE CITY OF CORCORAN, MINNESOTA AND NORTHLAND SECURITIES, INC. This Agreement is made and entered into by and between the City of Corcoran, Minnesota (hereinafter "Client") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "Northland"). WITNESSETH WHEREAS, the Client desires to have Northland provide it with advice on the structure, terms, timing and other matters related to the issuance of the General Obligation Bonds, Series 2023A (the “Debt”) serving in the role of municipal (financial) advisor, and WHEREAS, Northland is a registered municipal advisor with both the Securities and Exchange Commission (“SEC”) and the Municipal Securities Rulemaking Board (“MSRB”) (registration # 866- 00082-00), and WHEREAS, Northland will act as municipal advisor in accordance with the duties and responsibilities of Rule G-42 of the MSRB, and WHEREAS, the MSRB provides a municipal advisory client brochure on its website (www.msrb.org) that describes the protections that may be provided by the MSRB rules, including professional competency, fair dealing, duty of loyalty, remedies for disputes and how to file a complaint with an appropriate regulatory authority, and WHEREAS, the Client and Northland are entering into this Agreement to define the municipal advisory relationship at the earliest opportunity related to the inception of the municipal advisory relationship for the Debt, and WHEREAS, Northland desires to furnish services to the Client as hereinafter described, NOW, THEREFORE, it is agreed by and between the parties as follows: SERVICES TO BE PROVIDED BY NORTHLAND Northland shall provide the Client with services necessary to analyze, structure, offer for sale and close the Debt. The services will be tailored to meet the needs of this engagement and may include: Planning and Development 1. Assist Client officials to define the scope and the objectives for the Debt. 2. Investigate and consider reasonably feasible financing alternatives. 3. Assist the Client in understanding the material risks, potential benefits, structure and other characteristics of the recommended plan for the Debt, including issue structure, estimated debt Municipal Advisory Service Agreement 2 service payments, projected revenues, method of issuance, bond rating, sale timing, and call provisions. 4. Prepare a schedule of events related to the issuance process. 5. Coordinate with bond counsel any actions needed to authorize the issuance of the Debt. 6. Attend meetings of the Client and other project and bond issue related meetings as needed and as requested. Bond Sale 1. Assist the Client with the preparation, review and approval of the preliminary official statement (POS). 2. Assist the Client and bond counsel with preparing and publishing the Official Notice of Sale if required by law. 3. Prepare and submit application for bond rating(s) and assist the Client with furnishing the rating agency(s) with any additional information required to conduct the rating review. Assist the Client with preparing and conducting the rating call or other presentation. 4. Assist the Client in receiving the bids, compute the accuracy of the bids received, and recommend to the Client the most favorable bid for award. 5. Coordinate with bond counsel the preparation of required contracts and resolutions. Post-Sale Support 1. Assist the Client with the preparation of final official statement, distribution to the underwriter and posting on EMMA. 2. Coordinate the bond issue closing, including making all arrangements for bond printing, registration, and delivery. 3. Furnish to the Client a complete transcript of the transaction, if not provided by bond counsel. There are no specific limitations on the scope of this agreement. COMPENSATION For providing these services with respect to the Debt, Northland shall be paid a lump sum of $51,860. The fee due to Northland shall be payable by the Client upon the closing of the Bonds. CONFLICTS OF INTEREST Northland, as your Municipal Advisor, mitigates conflicts through its adherence to its fiduciary duty to the Client, which includes a duty of loyalty to the Client in performing all municipal advisory activities for the Client. This duty of loyalty obligates Northland to deal honestly and with the utmost good faith with the Client and to act in the Client’s best interests without regard to our own financial or other interests. In addition, because Northland is a broker-dealer with significant capital due to the nature of its overall business, the success and profitability of Northland is not dependent on maximizing short-term revenue generated from individualized recommendations to its clients but instead is dependent on long-term profitably built on a foundation of integrity, quality of service and strict adherence to its fiduciary duty. Furthermore, Northland’s municipal advisory supervisory structure leverages our long-standing and comprehensive broker-dealer supervisory processes and practices, and provides strong safeguards against individual representatives of Northland potentially departing from our regulatory duties due to personal interests. The disclosures below describe, as Municipal Advisory Service Agreement 3 applicable, any additional mitigations that may be relevant with respect to any specific conflict disclosed below. Northland serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of the Client. For example, Northland serves as Municipal Advisor to other Municipal Advisory clients and, in such cases, owes a regulatory duty to such other clients just as it does to the Client under this Agreement. These other clients may, from time to time and depending on the specific circumstances, have competing interests, such as accessing the new issue market with the most advantageous timing and with limited competition at the time of the offering. In acting in the interests of its various clients, Northland could potentially face a conflict of interest arising from these competing client interests. In other cases, as a broker-dealer that engages in underwritings of new issuances of municipal securities by other municipal entities, the interests of Northland to achieve a successful and profitable underwriting for its municipal entity underwriting clients could potentially constitute a conflict of interest if, as in the example above, the municipal entities that Northland serves as underwriter or municipal advisor have competing interests in seeking to access the new issue market with the most advantageous timing and with limited competition at the time of the offering. However, none of these other engagements or relationships would impair Northland’s ability to fulfill its regulatory duties to the Client. The compensation for services provided in this Agreement is customary in the municipal securities market, however, it may pose a conflict of interest. The fees due under this Agreement are in a fixed amount established at the outset of the Agreement. The amount is usually based upon an analysis by Client and Northland of, among other things, the expected duration and complexity of the transaction and the Scope of Services to be performed by Northland. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, Northland may suffer a loss. Thus, Northland may recommend less time-consuming alternatives, or fail to do a thorough analysis of alternatives. This conflict of interest is mitigated by supervisory policies and procedures to ensure the scope of services within the transaction align with other comparable engagements. By executing this Agreement, the Client acknowledges and accepts the potential conflicts of interest posed by the compensation to Northland. Northland does not participate in any payments to be retained, nor participate in any fee splitting agreements or arrangements. Northland is also a broker-dealer that engages in a broad range of securities-related activities to service its clients, in addition to serving as a Municipal Advisor or Underwriter. Such securities-related activities, which may include but are not limited to the buying and selling of outstanding securities, including securities of the Client, may be undertaken on behalf of, or as counterparty to, the Client, and current or potential investors in the securities of the Client. These other Northland clients may, from time to time and depending on the specific circumstances, have interests in conflict with those of the Client, such as when their buying or selling of the Client’s securities may have an adverse effect on the market for the Client’s securities. However, any potential conflict arising from Northland effecting or otherwise assisting such other clients in connection with such transactions is mitigated by means of such activities being engaged in on customary terms through other business units of Northland that operate independently from Northland’s Municipal Advisory business, thereby reducing or Municipal Advisory Service Agreement 4 eliminating the likelihood that the interests of such other clients would have an impact on the services provided by Northland to the Client under this Agreement. Northland has policies and procedures in place to ensure that Northland as a broker-dealer is not participating in bidding or determining market prices for the Client’s transaction that is covered under this Agreement. Northland Capital Holdings is the parent company of Northland Securities. A subsidiary of Northland Capital Holdings is Northland Trust, Inc. Northland Trust provides paying agent services to issuers of municipal bonds. The Client is solely responsible for the decision on the source of paying agent services. Any engagement of Northland Trust is outside the scope of this Agreement. No compensation paid to Northland Trust is shared with Northland Securities. Northland is not aware of any additional material conflicts of interest that could reasonably be anticipated to impair Northland’s ability to provide advice to or on behalf of the Client in accordance with the standards of conduct for municipal advisors. LEGAL AND DISCIPLINARY ACTIONS There are no legal or disciplinary events reported by the Securities and Exchange Commission contained in Form MA or Form MA-I. The Client can find information about these forms and accessing information related to Northland at www.sec.gov/municipal/oms-edgar-links. SUCCESSORS OR ASSIGNS The terms and provisions of this Agreement are binding upon and inure to the benefit of the Client and Northland and their successors or assigns. TERM OF THIS AGREEMENT This Agreement may be terminated by thirty (30) days written notice by either the Client or Northland and it shall terminate sixty (60) days following the closing date related to the issuance of the Debt. Dated this 26th day of January, 2023. Northland Securities, Inc. By: Tammy Omdal, Managing Director By: _________________________________ Clifton Schultz, Managing Director Municipal Advisory Service Agreement 5 City of Corcoran, Minnesota By: _________________________________ Its: _________________________________ CR100\25\850402.v1 Extract of Minutes of Meeting of the City Council of the City of Corcoran, Hennepin County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Corcoran, Hennepin County, Minnesota, was held at the City Hall in the City on Thursday, January 26, 2023, commencing at 7:00 P.M. The following members of the Council were present: and the following were absent: * * * * * * * * * The following resolution was presented by Councilmember ____________ who moved its adoption: RESOLUTION NO. 2023-10 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF APPROXIMATELY $26,110,000 GENERAL OBLIGATION BONDS, SERIES 2023A BE IT RESOLVED By the City Council of the City of Corcoran, Hennepin County, Minnesota (the “City”) as follows: 1. Abatement Bonds. (a) The City has determined to undertake certain public improvements, including street, utility and road improvements to Hackamore Drive, City Center Drive and 79th Place, Horseshoe Road and Horseshoe Bend (the “Abatement Project”). (b) Under Minnesota Statutes, Chapter 475, as amended, and Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (collectively, the “Abatement Act”), the City is authorized to grant a property tax abatement on specified parcels in order to accomplish certain public purposes, including the provision or construction of public infrastructure such as the Abatement Project. 2 CR100\25\850402.v1 (c) Following a public hearing this same date (the “Abatement Resolution”), the City Council has adopted a tax abatement (the “Abatements”) for certain property in the City (the “Abatement Parcels”) over a period of fifteen (15) years, in an amount sufficient to pay the principal amount and all or a portion of the interest on bonds issued to finance the Abatement Project in a maximum principal amount of $5,108,000. (d) Subject to approval of the Abatement Resolution this same date, the City Council finds it necessary and expedient to the sound financial management of the affairs of the City to issue its obligations in the proposed approximate principal amount of $5,108,000 (the “Abatement Bonds”) pursuant to the Abatement Act, to provide financing for the Abatement Project. 2. Utility Revenue Bonds. (a) The City engineer has recommended the construction of various improvements to the City’s water system (the “Utility Improvements”), pursuant to Minnesota Statutes, Chapters 444 and 475, as amended (collectively, the “Utility Revenue Act”). (b) It is necessary and expedient to the sound financial management of the affairs of the City to issue general obligations in the approximate aggregate principal amount of $21,605,000 (the “Utility Revenue Bonds”), pursuant to the Utility Revenue Act, to provide financing for the Utility Improvements. 2. Sale of Bonds. (a) The City Council finds it necessary and expedient to the sound financial management of the affairs of the City that the City issue its General Obligation Bonds, Series 2023A (the “Bonds”), in the proposed aggregate principal amount of $26,110,000, pursuant to the Abatement Act and the Utility Revenue Act (together, the “Act”), which amount is subject to adjustment in accordance with the official Notice of Sale attached hereto as EXHIBIT B (the “Notice of Sale”). The Bonds will be issued, sold, and delivered in accordance with the Notice of Sale. (b) The City is authorized by Section 475.60, subdivision 2(9) of the Act to negotiate the sale of the Bonds, it being determined that the City has retained an independent municipal advisor in connection with such sale. 3. Authority of Municipal Advisor. Northland Securities, Inc. is authorized and directed to negotiate the Bonds in accordance with the Notice of Sale. The City Council will meet at 7:00 P.M. on Thursday, March 23, 2023, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. 4. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, as bond counsel for the City, is authorized to act as bond counsel and to assist in the preparation and review of necessary documents, certificates and instruments relating to the Bonds. The officers, employees and agents of the City are hereby authorized to assist Kennedy & Graven, Chartered in the preparation of such documents, certificates, and instruments. 5. Covenants. In the resolution awarding the sale of the Bonds the City Council will set forth the covenants and undertakings required by the Act. 3 CR100\25\850402.v1 6. Official Statement. In connection with the sale of the Bonds, the officers or employees of the City are authorized and directed to cooperate with Northland Securities, Inc. and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. Approved by the City Council of the City of Corcoran, Minnesota this 26th day of January, 2023. Mayor ATTEST: City Administrator A-1 CR100\25\850402.v1 Exhibit A NOTICE OF SALE $26,110,000* GENERAL OBLIGATION BONDS, SERIES 2023A CITY OF CORCORAN, MINNESOTA (Book-Entry Only) NOTICE IS HEREBY GIVEN that these Bonds will be offered for sale according to the following terms: TIME AND PLACE: Proposals (also referred to herein as “bids”) will be opened by the City’s Finance Manager, or designee, on Thursday, March 23, 2023, at 10:00 A.M., CT, at the offices of Northland Securities, Inc. (the City’s “Municipal Advisor”), 150 South 5th Street, Suite 3300, Minneapolis, Minnesota 55402. Consideration of the Proposals for award of the sale will be by the City Council at its meeting at the City Offices beginning Thursday, March 23, 2023 at 7:00 P.M., CT. SUBMISSION OF PROPOSALS Proposals may be: a) submitted to the office of Northland Securities, Inc., b) faxed to Northland Securities, Inc. at 612-851-5918, c) emailed to PublicSale@northlandsecurities.com d) for proposals submitted prior to the sale, the final price and coupon rates may be submitted to Northland Securities, Inc. by telephone at 612-851-5900 or 612-851-4945, or e) submitted electronically. Notice is hereby given that electronic proposals will be received via PARITY™, or its successor, in the manner described below, until 10:00 A.M., CT, on Thursday, March 23, 2023. Proposals may be submitted electronically via PARITY™ or its successor, pursuant to this Notice until 10:00 A.M., CT, but no Proposal will be received after the time for receiving Proposals specified above. To the extent any instructions or directions set forth in PARITY™, or its successor, conflict with this Notice, the terms of this Notice shall control. For further information about PARITY™, or its successor, potential bidders may contact Northland Securities, Inc. or i-Deal at 1359 Broadway, 2nd floor, New York, NY 10018, telephone 212-849-5021. Neither the City nor Northland Securities, Inc. assumes any liability if there is a malfunction of PARITY™ or its successor. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner in which the Proposal is submitted. BOOK-ENTRY SYSTEM The Bonds will be issued by means of a book-entry system with no physical distribution of bond certificates made to the public. The Bonds will be issued in fully registered form and one bond certificate, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & * The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be adjusted to maintain the same gross spread. A-2 CR100\25\850402.v1 Co. as nominee of Depository Trust Company (“DTC”), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the City through Northland Trust Services, Inc. Minneapolis, Minnesota (the “Paying Agent/Registrar”), to DTC, or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The successful bidder, as a condition of delivery of the Bonds, will be required to deposit the bond certificates with DTC. The City will pay reasonable and customary charges for the services of the Paying Agent/Registrar. DATE OF ORIGINAL ISSUE OF BONDS Date of Delivery (Estimated to be April 19, 2023) AUTHORITY/PURPOSE/SECURITY The Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475 and Sections 469.1812 through 469.1815. Proceeds will be used to finance a water project and various road projects within the City and to pay costs associated with the issuance of the Bonds. The Bonds are payable from net revenues of the water system, tax abatement levies and additionally secured by ad valorem taxes on all taxable property within the City. The full faith and credit of the City is pledged to their payment and the City has validly obligated itself to levy ad valorem taxes in the event of any deficiency in the debt service account established for this issue. INTEREST PAYMENTS Interest is due semiannually on each February 1 and August 1, commencing February 1, 2024, to registered owners of the Bonds appearing of record in the Bond Register as of the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding such interest payment date. MATURITIES Principal is due annually on February 1, inclusive, in each of the years and amounts as follows: Year Amount Year Amount Year Amount 2024 $585,000 2034 $875,000 2044 $830,000 2025 635,000 2035 855,000 2045 875,000 2026 650,000 2036 890,000 2046 915,000 2027 680,000 2037 930,000 2047 960,000 2028 705,000 2038 970,000 2048 1,010,000 2029 725,000 2039 1,015,000 2049 1,060,000 2030 750,000 2040 690,000 2050 1,115,000 2031 780,000 2041 725,000 2051 1,170,000 2032 805,000 2042 755,000 2052 1,230,000 2033 835,000 2043 795,000 2053 1,295,000 A-3 CR100\25\850402.v1 Proposals for the Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. INTEREST RATES All rates must be in integral multiples of 1/20th or 1/8th of 1%. The rate for any maturity may not be more than 2.00% less than the rate for any preceding maturity. All Bonds of the same maturity must bear a single uniform rate from date of issue to maturity. ESTABLISHMENT OF ISSUE PRICE (HOLD-THE-OFFERING-PRICE RULE MAY APPLY – BIDS NOT CANCELLABLE) The winning bidder shall assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at closing an “issue price” or similar certificate setting forth the reasonably expected initial offering price to the public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit A, with such modifications as may be appropriate or necessary, in the reasonable judgment of the winning bidder, the City and Bond Counsel. All actions to be taken by the City under this Notice of Sale to establish the issue price of the Bonds may be taken on behalf of the City by the City’s Municipal Advisor and any notice or report to be provided to the City may be provided to the City’s Municipal Advisor. The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining “competitive sale” for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the “competitive sale requirements”) because: (1) the City shall disseminate this Notice of Sale to potential underwriters in a manner that is reasonably designed to reach potential underwriters; (2) all bidders shall have an equal opportunity to bid; (3) the City may receive bids from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (4) the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the highest price (or lowest cost), as set forth in this Notice of Sale. Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, as specified in the bid. In the event that the competitive sale requirements are not satisfied, the City shall promptly so advise the winning bidder. The City may then determine to treat the initial offering price to the public as of the award date of the Bonds as the issue price of each maturity by imposing on the winning bidder the Hold -the- Offering-Price Rule as described in the following paragraph (the “Hold-the-Offering-Price Rule”). Bids will not be subject to cancellation in the event that the City determines to apply the Hold-the-Offering- Price Rule to the Bonds. Bidders should prepare their bids on the assumption that the Bonds will be subject to the Hold-the-Offering-Price Rule in order to establish the issue price of the Bonds. By submitting a bid, the winning bidder shall (i) confirm that the underwriters have offered or will offer the Bonds to the public on or before the date of award at the offering price or prices (the “Initial Offering Price”), or at the corresponding yield or yields, set forth in the bid submitted by the winning bidder and (ii) agree, on behalf of the underwriters participating in the purchase of the Bonds, that the underwriters will A-4 CR100\25\850402.v1 neither offer nor sell unsold Bonds of any maturity to which the Hold-the-Offering Price Rule shall apply to any person at a price that is higher than the Initial Offering Price to the public during the period starting on the award date for the Bonds and ending on the earlier of the following: (1) the close of the fifth (5th) business day after the award date; or (2) the date on which the underwriters have sold at least 10% of a maturity of the Bonds to the public at a price that is no higher than the Initial Offering Price to the public (the “10% Test”), at which time only that particular maturity will no longer be subject to the Hold-the-Offering-Price Rule. The City acknowledges that, in making the representations set forth above, the winning bidder will rely on (i) the agreement of each underwriter to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule, if applicable to the Bonds, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including but not limited to, its agreement to comply with the Hold- the-Offering-Price Rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an underwriter or dealer who is a member of the selling group is a party to a third-party distribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The City further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the requirements for establishing issue price of the Bonds, including but not limited to, its agreement to comply with the Hold-the-Offering- Price Rule, if applicable to the Bonds, and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker -dealer that is a party to a third-party distribution agreement to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the Hold-the-Offering-Price Rule if applicable to the Bonds. By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group agreement and each third-party distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a party to such third-party distribution agreement, as applicable, (A) to comply with the Hold-the- Offering-Price Rule, if applicable if and for so long as directed by the winning bidder and as set forth in the related pricing wires, (B) to promptly notify the winning bidder of any sales of Bonds that to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the underwriter, dealer or broker-dealer, the winning bidder shall assume that each order submitted by the underwriter, dealer or broker-dealer is a sale to the public, and (ii) any agreement among underwriters or selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter or dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such retail distribution agreement to comply with the Hold-the-Offering-Price Rule, if applicable, in each case if and for so long as directed by the winning bidder or the underwriter and as set forth in the related pricing wires. Notes: Sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to A-5 CR100\25\850402.v1 the public for purposes of this Notice of Sale. Further, for purposes of this Notice of Sale: (1) “public” means any person other than an underwriter or a related party, (2) “underwriter” means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public). (3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation or another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and (4) “sale date” means the date that the Bonds are awarded by the City to the winning bidder. ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER PROPOSALS The City reserves the right to increase or decrease the principal amount of the Bonds. Any such increase or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be adjusted to maintain the same gross spread. Such adjustments shall be made promptly after the sale and prior to the award of Proposals by the City and shall be at the sole discretion of the City. The successful bidder may not withdraw or modify its Proposal once submitted to the City for any reason, including post-sale adjustment. Any adjustment shall be conclusive and shall be binding upon the successful bidder. OPTIONAL REDEMPTION Bonds maturing on February 1, 2032 through 2053 are subject to redemption and prepayment at the option of the City on February 1, 2031 and any date thereafter, at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and principal amounts within each maturity to be redeemed shall be determined by the City and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder thereof to accept delivery of and pay for the Bonds in accordance with terms of the purchase contract. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the successful bidder. DELIVERY Delivery of the Bonds will be within thirty days after award, subject to an approving legal opinion by Kennedy & Graven, Chartered, Bond Counsel. The legal opinion will be paid by the City and delivery will A-6 CR100\25\850402.v1 be anywhere in the continental United States without cost to the successful bidder at DTC. TYPE OF PROPOSAL Proposals of not less than $25,731,405.00 (98.55%) and accrued interest on the principal sum of $26,110,000 must be filed with the undersigned prior to the time of sale. Proposals must be unconditional except as to legality. Proposals for the Bonds should be delivered to Northland Securities, Inc. and addressed to: Maggie Ung, Finance Manager Corcoran City Hall 8200 County Road 116 Corcoran, MN 55340 A good faith deposit (the “Deposit”) in the amount of $500,000 in the form of a federal wire transfer (payable to the order of the City) is only required from the apparent winning bidder, and must be received within two hours after the time stated for the receipt of Proposals. The apparent winning bidder will receive notification of the wire instructions from the Municipal Advisor promptly after the sale. If the Deposit is not received from the apparent winning bidder in the time allotted, the City may choose to reject their Proposal and then proceed to offer the Bonds to the next lowest bidder based on the terms of their original proposal, so long as said bidder wires funds for the Deposit amount within two hours of said offer. The City will retain the Deposit of the successful bidder, the amount of which will be deducted at settlement and no interest will accrue to the successful bidder. In the event the successful bidder fails to comply with the accepted Proposal, said amount will be retained by the City. No Proposal can be withdrawn after the time set for receiving Proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City’s computation of the interest rate of each Proposal, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The City will reserve the right to: (i) waive non-substantive informalities of any Proposal or of matters relating to the receipt of Proposals and award of the Bonds, (ii) reject all Proposals without cause, and (iii) reject any Proposal which the City determines to have failed to comply with the terms herein. INFORMATION FROM SUCCESSFUL BIDDER The successful bidder will be required to provide, in a timely manner, certain information relating to the initial offering price of the Bonds necessary to compute the yield on the Bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. OFFICIAL STATEMENT By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide to the senior managing underwriter of the syndicate to which the Bonds are awarded, the Final Official Statement in an electronic format as prescribed by the Municipal Securities Rulemaking Board (MSRB). A-7 CR100\25\850402.v1 FULL CONTINUING DISCLOSURE UNDERTAKING The City will covenant in the resolution awarding the sale of the Bonds and in a Continuing Disclosure Undertaking to provide, or cause to be provided, annual financial information, including audited financial statements of the City, and notices of certain material events, as required by SEC Rule 15c2-12. NOT BANK QUALIFIED The City will not designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. BOND INSURANCE AT UNDERWRITER’S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the successful bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the successful bidder of the Bonds. Any increase in the costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the successful bidder, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the successful bidder. Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the successful bidder shall not constitute cause for failure or refusal by the successful bidder to accept delivery on the Bonds. The City reserves the right to reject any and all Proposals, to waive informalities and to adjourn the sale. Dated: January 26, 2023 BY ORDER OF THE CORCORAN CITY COUNCIL /s/ Maggie Ung Finance Manager Additional information may be obtained from: Northland Securities, Inc. 150 South 5th Street, Suite 3300 Minneapolis, Minnesota 55402 Telephone No.: 612-851-5900 A-A-1 CR100\25\850402.v1 EXHIBIT A (ISSUE PRICE CERTIFICATE – COMPETITIVE SALE SATISFIED) The undersigned, for and on behalf of [NAME OF PURCHASER/REPRESENTATIVE] (the [“Purchaser”] [“Representative,” on behalf of itself and other underwriters listed below (collectively, the “Underwriting Group”)], with respect to the sale and issuance of the General Obligation Bonds, Series 2023A (the “Bonds”), issued by the City of Corcoran, Minnesota (the “Issuer”), in the original aggregate principal amount of $____________, certifies as follows: 1. Reasonably Expected Initial Offering Price. (a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by the [Purchaser] [Underwriting Group] are the prices listed in EXHIBIT A attached hereto (the “Expected Offering Prices”). The Expected Offering Prices are the prices of the Maturities of the Bonds used by the [Purchaser] [Underwriting Group] in formulating its bid to purchase the Bonds. Attached hereto as EXHIBIT B is a true and correct copy of the bid provided by the [Purchaser] [Underwriting Group] to purchase the Bonds. (b) The [Purchaser] [Underwriting Group] was not given the opportunity to review other bids prior to submitting its bid. (c) The bid submitted by the [Purchaser] [Underwriting Group] constituted a firm offer to purchase the Bonds. (d) Capitalized terms that are used herein that are otherwise not defined shall have the meanings assigned to such terms in Section 5 hereof. 2. Purchase Price. The [Purchaser] [Representative] acknowledges that it is purchasing the Bonds for an aggregate purchase price of $_______________ (par amount of Bonds of $__________, plus original issue premium of $_______, less original issue discount of $________, less [a Purchaser’s] [an underwriter’s] discount of $________), plus accrued interest in the amount of $____________. 3. Receipt of Bonds. The undersigned hereby acknowledges receipt of $____________ in original aggregate principal amount of the Bonds from the Issuer, fully executed and a uthenticated. [The [Purchaser] [Representative] has paid to [NAME OF INSURER] the sum of $______________ as a premium for an insurance policy for the Bonds.] 4. Representations. The representations set forth in this Certificate of Purchaser (the “Certificate”) are limited to factual matters only. Nothing in this Certificate represents the interpretation by the [Purchaser] [Representative] of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder. The undersigned understands that the foregoing information will be relied upon by: (i) the Issuer with respect to certain of the representations set forth in a tax certificate of the Issuer executed on the dat e hereof with respect to compliance with the federal income tax rules affecting the Bonds; and (ii) Kennedy & Graven, Chartered, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of Information Return for Tax-Exempt Governmental Obligations, Form 8038-G (Rev. September 2018), and other federal income tax advice that A-A-2 CR100\25\850402.v1 it may give to the Issuer from time to time relating to the Bonds. 5. Defined Terms. (a) “Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (b) “Public” means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this Certificate means, with respect to a purchaser of the Bonds, if the Underwriter and the purchaser are subject, directly or indirectly, to (i) more than fifty percent (50%) common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another); (ii) more than fifty percent (50%) common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another); or (iii) more than fifty percent (50%) common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other). (c) “Sale Date” means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ________________. (d) “Underwriter” means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a writt en contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). IN WITNESS WHEREOF, the undersigned officer has executed this Certificate of Purchaser as of the date and year first written above. [PURCHASER] [REPRESENTATIVE] By Name Its [Account Members:] (ISSUE PRICE CERTIFICATE – HOLD THE PRICE) The undersigned, for and on behalf of [NAME OF PURCHASER/REPRESENTATIVE] (the [“Purchaser”] [“Representative,” on behalf of itself and other underwriters listed below (collectively, the A-A-3 CR100\25\850402.v1 “Underwriting Group”))],, with respect to the sale and issuance of the General Obligation Bonds, Series 2023A (the “Bonds”), by the City of Corcoran, Minnesota (the “Issuer”), in the original aggregate principal amount of $____________, certifies as follows: 1. Initial Offering Price for the Bonds. (a) The [Purchaser] [Underwriting Group] offered each Maturity of the Bonds to the Public for purchase at the respective initial offering prices listed in EXHIBIT A attached hereto (the “Initial Offering Prices”). A copy of the pricing wire or equivalent communication for the Bonds is attached hereto as EXHIBIT A. Capitalized terms used herein that are otherwise not defined shall have the meanings assigned to such terms in Section 5 hereof. (b) As set forth in the Notice of Sale and the bid award, the [Purchaser has] [members of the Underwriting Group have] agreed in writing that, (i) for each Maturity of the Bonds, [it] [they] would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “Hold-the-Offering-Price Rule”), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail distribution agreement, to comply with the Hold-the-Offering-Price Rule. Pursuant to such agreement, no Underwriter has offered or sold any Maturity of the Bonds at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period. 2. Purchase Price. The [Purchaser] [Representative] acknowledges that it is purchasing the Bonds for an aggregate purchase price of $_______________ (par amount of Bonds of $__________, plus original issue premium of $_______, less original issue discount of $________, less [a Purchaser’s] [an underwriter’s] discount of $________). 3. Receipt of Bonds. The undersigned hereby acknowledges receipt of $_________ in original aggregate principal amount of the Bonds from the Issuer, fully executed and authenticated. 4. Representations. The representations set forth in this Certificate of Purchaser (the “Certificate”) are limited to factual matters only. Nothing in this Certificate represents the interpretation by the [Purchaser] [Representative] of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder. The undersigned understands that the foregoing information will be relied upon by: (i) the Issuer with respect to certain of the representations set forth in a tax certificate of the Issuer executed o n the date hereof with respect to compliance with the federal income tax rules affecting the Bonds; and (ii) Kennedy & Graven, Chartered, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of Information Return for Tax-Exempt Governmental Bonds, Form 8038 G (Rev. September 2018), and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. 5. Defined Terms. (a) “Holding Period” means, with respect to each Maturity of the Bonds, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date, or (ii) the date on which the [Purchaser has] [Underwriters have] sold at least ten percent (10%) of such Maturity to the Public at prices that are no higher than the Initial Offering Price for such Maturity. (b) “Maturity” means Bonds with the same credit and payment terms. Bonds with different A-A-4 CR100\25\850402.v1 maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities. (c) “Public” means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this Certificate means, with respect to a purchaser of the Bonds, if the Underwriter and the purchaser are subject, directly or indirectly, to (i) more than fifty percent (50%) common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another); (ii) more than fifty percent (50%) common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another); or (iii) more than fifty percent (50%) common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other). (d) “Sale Date” means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ________________. (e) “Underwriter” means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to part icipate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). IN WITNESS WHEREOF, the undersigned officer has executed this Certificate of Purchaser as of the date and year first written above. [PURCHASER] [REPRESENTATIVE] By Name Its STAFF REPORT A g end a Item: 9d. Counc il Meeting: January 26, 2023 Prepared By : Jessica Christensen Buck and Peter Ekenberg Topic : 2023 Holiday Toy and Food Drive Action Required: Approval Su mm ar y : During the December 22, 2022, City Council meeting, staff summarized the 2022 Holiday Toy and Food Drive, noting 5 neighborhood stops, 1,000 pounds of donated food, and $15,000 worth of donated toys. Internally, staff discussed potential dates for the 2023 event, with discussions including other holiday events and deadlines for donations. Staff is requesting approval of the proposed dates for the 2023 event: •Planned date: Tuesday, December 12, 2023 •Backup date: Wednesday, December 13, 2023 The purpose of the dates being back-to-back allows staff to avoid duplicating set-up and teardown of the vehicles if the event must be postponed due to unforeseen circumstances. Staff is also requesting approval to seek outside donations for any necessary additional supplies for the event. Fi n anc i al/B u dg et: Staff is not anticipating budget impacts with the intention to seek outside donations for additional supply purchases. Op t i on s : 1.Approve December 12, 2023, as the planned date, Wednesday, December 13, 2023, as the backup date, and funding methods presented by staff. 2.Recommend alternative dates for the event and/or alternative funding options. 3.Decline to schedule dates for the 2023 Holiday Toy and Food Drive. Rec o mm endat i on : Staff recommends approval of December 12, 2023 as the planned date, Wednesday, December 13, 2023 as the backup date, and staff’s request to seek donations as necessary. Co un c i l A c t i on : Consider a motion to schedule the event for December 12, 2023, with a backup date of December 13, 2023, and approval of staff’s request to seek outside donations as necessary. A tt ac h m ent s : None STAFF REPORT Agenda Item: 9e. Council Meeting: January 26, 2023 Prepared By: Maggie Ung Topic: REU Credit Policy Action Required: Approval Summary: On December 22nd, 2022 Council Meeting, Council adopted the 2023 fee schedule. As part of the adopted fee schedule, utility base fees for water and sewer service would be based on a per SAC unit multiplier. Base fees help cover the current and future maintenance, repair and operation costs of the water and sewer infrastructure. To ensure an equitable system for all properties within the City, base fees will be charged on a residential equivalent unit. Staff have determined that the Met Council formula for determining SAC unit is a good methodology to use for determining residential equivalent unit for non- residential properties on City water and sewer. SAC unit is determined based on the maximum potential sewage flow created by the activities created at the location, thus reflects the maximum potential water flow created. To maintain equity to non-residential properties that do not meet the maximum potential flow for water and sewage, staff is proposing an adoption of a residential equivalent unit (REU) credit policy. All properties have a minimum of 1 SAC unit charged for utility base fees per month. The policy allows for half of the calculated SAC units, over the 1 SAC unit, to be credited back on the SAC unit determined. Staff recommends that an application is submitted by the applicant be renewed on a bi-annual basis to ensure that each property’s water and/or sewer flow are staying below the usage thresholds listed in the policy to receive the credit. Financial/Budget: There is no significant impact to the budget or financials. Options: 1.Adopted Resolution 2023-07 Adopting the REU Credit Policy. 2.Direct staff to amend the policy. 3.Decline the policy. Council Action: Approve the REU Credit Policy and adopted Resolution 2023-07 Adopting the REU Credit Policy. Attachments: 1.REU Credit Policy 2.REU Credit Application 3.Resolution 2023-07 Adopting the REU Credit Policy 1 | Page CITY OF CORCORAN REU CREDIT POLICY CITY OF CORCORAN REU CREDIT POLICY 1.Background The City of Corcoran’s Water and Sewer Utility base fees are based determined on a per residential equivalent unit basis for all properties. The residential equivalent unit (REU) basis that the City of Corcoran has adopted to instill upon all properties within the City limits is based on sewer access charge (SAC) unit, which is determined at initial connection to the Metropolitan Council wastewater system. SAC unit is determined based on the maximum potential sewage flow created by the activities at the location and thus reflects maximum potential water flow created by the activities at the location. A single-family household is typically 1 REU, whereas multi-residential, commercial, and industrial buildings are calculated on numerous factors, such as the type of business, how many plumbing connections are within the building, the square footage of the building, the number of offices and other factors. This REU figure is used to ensure that a facility that has a higher demand for water and/or sewer service pays a proportionately higher cost to maintain, operate and ensure continuance of the infrastructure used to deliver the service from source to point of use, as in the case of water, or point of discharge to point of treatment, as in the case with sewer. Without this system in place, a user with greater need for service has the potential to create but not fund more cost, such as repair and maintenance cost. This could create a disproportional financial burden for single-family residence built on the same route as a factory. 2.Authority to Establish Per MN State Statute 444.075 and City of Corcoran Ordinance 51.030, subd. 2.3, the City of Corcoran has the authority to charge properties within the City boundaries as deemed necessary for the maintenance, operations and continuance of the water and sewer system. 3.Policy Objective The proposed REU credit provides a reasonable and responsible financial acknowledgement to non-residential property owners who do not use the maximum potential water and sewer flow. The purpose of the credit is to encourages commercial and industrial properties to monitor water and sewer usage, to reduce environmental impact and impact to the utility system. 4.Credit Limitations All properties will have a minimum of 1 SAC unit charged for utility base fees per month. The City of Corcoran will may allow up to half of the calculated SAC units to be credited based on the amount of water usage the property consumes on an average annual basis. SAC unit credits will be rounded down to the nearest whole number. For example, if a property is determined to be 3 SAC units, the maximum credit would be 1 SAC unit., tTherefore, thise property, if determined eligible for a credit, will be charged at 2 SAC units. If a property is determined to be 1 SAC unit, no credit will be allowed. Revised Attachment Item: 9e1. 2 | Page CITY OF CORCORAN REU CREDIT POLICY To be eligible for a REU credit, a property must fall under the following usage: For properties with 2-5 SAC units, average usage under 9,000 gallons per month. For Properties with 6 – 10 SAC units, average usage under 18,000 gallons per month. For Properties with 11 – 15 SAC units, average usage under 27,000 gallons per month. Properties with more than 15 SAC units will not be qualified to received credit. The average usage will be based on a January through December basis from the prior full calendar year. 5.Application Procedure Non-residential properties can fill out the application and submit at any time upon connection to the water and/or sewer system. For those already on water and/or sewer prior to the beginning of each year, applications must be submitted by April 30thJanuary 31st of the year of initial application. For 2023, applications must be submitted by April 30, 2023. Applications Any credit awarded will be effective January 1st of the year a timely the application is turned in, to December 31st of the following year. For properties connected or turned-over mid-year, applicants are not eligible for the credit until a full 12-month period of actual applicant usage data during full operation is received by the City. Applicants will not receive retro-active credits for use during this 12-month eligibility determination period. To be eligible to receive any awarded credits immediately after the initial eligibility determination period ends, the applicant must have submitted an application by January 31st of the year in which the applicant will become eligible to be given credit. Credit will be effective until December 31st of following year. Upon the conclusion of the initial application cycle, all subsequent credit eligibility shall be determined based on the average usage from the prior full calendar year. For example, if an applicant moves into the property on June 1, 2023, the earliest month of eligibility for a credit would be June of 2024. To be eligible for a REU credit in June of 2024, the application must have been submitted by January 31st, 2024. If deemed eligible, the credit will be in effect until December 31st, 2025. Thereafter, applications for credits would need to be submitted by January 31st of each application renewal year and eligibility would be determined by the applicant’s use during the calendar year immediately preceding the application. 6.Renewal Terms All properties will need to fill out a new application every 2 years to continue receiving the REU credit on their base fee. Renewal applications must be submitted by April 30thJanuary 31st of the renewal year. If application is not received, the City can retro-bill the property for the full SAC units determined. 7.Termination The application process does not guarantee that a credit will be given to the property. The City reserves the right to void the application and any credits awarded at any time. Upon sale 3 | Page CITY OF CORCORAN REU CREDIT POLICY of the property, the application and any credits awarded areis voided, and a new application will need to be submitted by the new property occupant(s). 1 | P a g e CITY OF CORCORAN REU CREDIT POLICY CITY OF CORCORAN REU CREDIT POLICY 1.Background The City of Corcoran’s Water and Sewer Utility base fees are based on a per residential equivalent units for all properties. The residential equivalent unit (REU) basis that the City of Corcoran has adopted to instill upon all properties within the City limits is based on sewer access charge (SAC) unit, which is determined at initial connection to the Metropolitan Council wastewater system. SAC unit is determined based on the maximum potential sewage flow created by the activities at the location and thus reflects maximum potential water flow created by the activities at the location. A single-family household is typically 1 REU, whereas multi-residential, commercial, and industrial buildings are calculated on numerous factors, such as the type of business, how many plumbing connections are within the building, the square footage of the building, the number of offices and other factors. This REU figure is used to ensure that a facility that has a higher demand for water and/or sewer service pays a proportionately higher cost to maintain, operate and ensure continuance of the infrastructure used to deliver the service from source to point of use, as in the case of water, or point of discharge to point of treatment, as in the case with sewer. Without this system in place, a user with greater need for service has the potential to create more cost, such as repair and maintenance cost. This could create a disproportional financial burden for single-family residence built on the same route as a factory. 2.Authority to Establish Per MN State Statute 444.075 and City of Corcoran Ordinance 51.030, subd. 2.3, the City of Corcoran has the authority to charge properties within the City boundaries as deemed necessary for the maintenance, operations and continuance of the water and sewer system. 3.Policy Objective The proposed REU credit provides a reasonable and responsible financial acknowledgement to non-residential property owners who do not use the maximum potential water and sewer flow. The purpose of the credit encourages commercial and industrial properties to monitor water and sewer usage, to reduce environmental impact and impact to the utility system. 4.Credit Limitations All properties will have a minimum of 1 SAC unit charged for utility base fees per month. The City of Corcoran will allow up to half of the calculated SAC units to be credited based on the amount of water usage the property consumes on an average annual basis. SAC unit credits will be rounded down to the nearest whole number. For example, if a property is determined to be 3 SAC units, the maximum credit would be 1 SAC unit, therefore the property will be charged at 2 SAC units. If a property is determined to be 1 SAC unit, no credit will be allowed. To be eligible for a REU credit, a property must fall under the following usage: Attachment Item: 9e1. 2 | P a g e CITY OF CORCORAN REU CREDIT POLICY For properties with 2-5 SAC units, average usage under 9,000 gallons per month. For Properties with 6 – 10 SAC units, average usage under 18,000 gallons per month. For Properties with 11 – 15 SAC units, average usage under 27,000 gallons per month. Properties with more than 15 SAC units will not be qualified to received credit. The average usage will be based on a January through December basis. 5.Application Procedure Non-residential properties can fill out the application and submit at any time upon connection to the water and/or sewer system. For those already on water and/or sewer prior to the beginning of each year, applications must be submitted by April 30th of the year of initial application. Applications will be effective January 1st of the year the application is turned in, to December 31st of the following year. 6.Renewal Terms All properties will need to fill out a new application every 2 years to continue receiving the REU credit on their base fee. Renewal applications must be submitted by April 30th. If application is not received, the City can retro-bill the property for the full SAC units determined. 7.Termination The application process does not guarantee that a credit will be given to the property. The City reserves the right to void the application at any time. Upon sale of the property, the application is voided, and a new application will need to be submitted by the new property occupant(s). APPLICATION FOR REU CREDIT Service Address:_________________________________________________________________________________ Owner Renter Name of business: ________________________________________________________________________ Mailing Address (if different from service address): _____________________________________________ _______________________________________________________________________________________ City: ____________________________ State: ____________________________ Zip: _____________ Personal Phone: (OpƟonal) ________________________ Business Phone: __________________________ Email Address: (OpƟonal)______________________________________________________________ This applicaƟon does not guarantee a credit will be given. The City reserves the right to void this applicaƟon and/or any credits awarded,at any Ɵme. This applicaƟon remains in effect unƟl December 31st of the year following the date of applicaƟon acceptance. By signing this applicaƟon, you agree that you are an authorized representaƟve of the property with authority to submit this informaƟon. Signature of Owner/Renter(s): ___________________________________________ Printed Name(s): ___________________________________________ Date: ___________________ Please email the signed applicaƟon to uƟlitybilling@corcoranmn.gov, or print out and mail to City of Corcoran, 8200 County Road 116, Corcoran, MN 55340. For city use only: Date applicaƟon received: _________________ [ ] Approved [ ] Denied Date applicaƟon is effecƟve: _________________ Date applicaƟon expires: _________________ City staff approval: _________________ SAC Unit determined _____ REU Credit Given _____ TOTAL SAC UNIT TO BILL _____ CITY OF CORCORAN 8200 County Road 116, Corcoran, MN 55340 (763)420-2288 www.corcoranmn.gov Revised Attachment Item: 9e2. APPLICATION FOR REU CREDIT Service Address:_________________________________________________________________________________ Owner Renter Name of business: ________________________________________________________________________ Mailing Address (if different from service address): _____________________________________________ _______________________________________________________________________________________ City: ____________________________ State: ____________________________ Zip: _____________ Personal Phone: (Optional) ________________________ Business Phone: __________________________ Email Address: (Optional)______________________________________________________________ This application does not guarantee a credit will be given. The City reserves the right to void this application at any time. This application remains in effect until December 31st of the year following the date of application acceptance. By signing this application, you agree that you are an authorized representative of the property with authority to submit this information. Signature of Owner/Renter(s): ___________________________________________ Printed Name(s): ___________________________________________ Date: ___________________ Please email the signed application to utilitybilling@corcoranmn.gov, or print out and mail to City of Corcoran, 8200 County Road 116, Corcoran, MN 55340. For city use only: Date application received: _________________ [ ] Approved [ ] Denied Date application is effective: _________________ Date application expires: _________________ City staff approval: _________________ SAC Unit determined _____ REU Credit Given _____ TOTAL SAC UNIT TO BILL _____ CITY OF CORCORAN 8200 County Road 116, Corcoran, MN 55340 (763)420-2288 www.corcoranmn.gov Attachment Item: 9e2. City of Corcoran January 26, 2023 County of Hennepin State of Minnesota RESOLUTION NO. 2023-07 Motion By: Seconded By: A RESOLUTION ADOPTING THE REU CREDIT POLICY WHEREAS, polices guide in the preparation and management of the City’s overall budget and major objectives to be accomplished and; WHEREAS, Government Finance Officers Association (GFOA) best practices recommends government formally adopt financial policies and; WHEREAS, the REU credit policy will be added to the Financial Guidelines; WHEREAS, the policy will serve as a guideline for determining non-residential properties’ base fee charges for applicable utility services; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Corcoran, Minnesota authorizes the adoption of the REU Credit Policy. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Bottema, Jon Bottema, Jon Nichols, Jeremy Nichols, Jeremy Schultz, Alan Schultz, Alan Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 26th day of January, 2023. Tom McKee - Mayor ATTEST: City Seal Michelle Friedrich – City Clerk Page 1 of 1 Attachment Item: 9e3. STAFF REPORT Agenda Item : 10a. Council Meeting: Prepared By: Topic: Action Required: Summary : Financi al/Bud get: Options: Recommendation Council Acti on: Attac hments: STAFF REPORT Agenda Item : 10b . Council Meeting: Prepared By: Topic: Action Required: Summary : Financi al/Bud get: Options: Recommendation Council Acti on: Attac hments: Agenda Item: 11a. Page 1 of 3 8200 County Road 116, Corcoran, MN 55340 763-420-2288 email: general@corcoranmn.gov / website: www.corcoranmn.gov MEMO Meeting Date: To: From: Re: January 26, 2023 City Council Natalie Davis McKeown, Planner Active Corcoran Planning Applications The following is a status summary of active planning projects: 1. Transition/Buffer Zones ZOA (City File 22-034). After multiple discussions on this topic in 2022, staff prepared a draft of a Buffer Yard Ordinance to be reviewed by the City Council at the January 26th work session. This is expected to go to the Planning Commission for a public hearing in the first half of 2023. 2. Pioneer Trail Industrial Park, Rezoning and Preliminary Plat and PUD (PID 32-119-23-34- 0013, 32-119-23-34-0007, 32-119-23-43-0005 and 32-119-23-43-0006) (City File No. 22- 039). An application was submitted to move forward with the preliminary approvals for the Pioneer Trail Industrial Park off Highway 55. The item was reviewed by the Planning Commission at a Public Hearing on December 1st and was recommended for approval on a 3- 1 vote. The City Council reviewed this item at the January 12th meeting, and it was tabled to work through remaining concerns related to traffic. The item is anticipated to be further reviewed at the January 26th regular meeting. 3. PUD Standards Zoning Ordinance Amendment (City File No. 22-045). After various discussions on planned unit development standards in 2022, staff and City Council are working through a slightly revised draft at the January 26th City Council work session. This is expected to go to the Planning Commission for a public hearing in the first half of 2023. 4. Rental Ordinance (City File No. 22-046). Staff and City Council continue to work through the draft ordinance and planning for administrative implementation. This item will go to another Council work session in the first quarter of 2023 before proceeding with Council approval. Since the Rental Ordinance will not be contained within the Zoning or Subdivision Ordinances of City Code, a public hearing is not required. 5. Keefe Minor Subdivision (PID 33-119-23-12-0007) (City File No. 22-063). An application for a two-lot subdivision at 6801 Willow Drive was submitted. The application was determined to be incomplete for City review and is not currently scheduled for review by the City Council. This type of application does not require review by the Planning Commission. 6. Park Dedication Fees Update (City File No. 22-065). Staff and Council evaluated park Page 2 of 3 dedication fees. A public hearing was held at the December 1st Planning Commission meeting. The proposed subdivision amendment was unanimously recommended for approval by the Planning Commission. The City Council unanimously approved the ordinance update on December 12, 2022 with the summary ordinance unanimously approved at the January 12th Council meeting. 7. Dish Tower Site Plan Amendment (PID 25-119-23-44-0005) (City File No. 22-066). A minor site plan amendment application was submitted for installation of new ground equipment at an existing telecommunications tower at 7205 County Road 101. This application is incomplete for review but will be approved administratively once all materials are submitted. 8. Gmach Accessory Dwelling Unit (ADU) Zoning Ordinance Amendment (City File No. 22- 071). George Gmach submitted a Zoning Ordinance Amendment application requesting changes to the standards for ADUs including changing it from an Interim Use to a Conditional Use and re-evaluating the size and garage requirements. The application was reviewed at a public hearing on December 1st by the Planning Commission, and the Commission unanimously recommended approval of proposed amendments to the ADU standards. The City Council approved the changes as recommended by Staff and the Planning Commission at the December 22nd meeting with the summary ordinance approved on January 12th. 9. “Hope Community Sketch Plat” (PID 11-119-23-14-0003) (City File No. 22-074). Brian Lother submitted a concept plan application to receive feedback from Council for a proposed residential and mixed-use development on the properties surrounding Hope Community Church. The concept includes medical offices, retail space, market-rate apartments, townhomes, senior villas, and some assisted living units. The applicant is also moving forward with an EAW based on the submitted concept plan. The Council provided feedback on the sketch plan at the January 12, 2023 meeting. 10. “Red Barn Pet Retreat Sketch Plat” (PID 01-119-23-44-0045) (City File No. 22-075). Daniel Benjamin submitted a concept plan for the property at the northwest corner of Stieg Road and County Road 101. The request includes re-guiding the land to commercial to allow for expansion of his commercial kennel business. The sketch plat also reflects 9 additional lots for future commercial users on the property. The sketch plan was reviewed by the Council at the December 22nd meeting. 11. “Cook Lake Highland Planned Unit Development Amendment” (PID 25-119-23-14-0003) (City File No. 22-076). JB Limited, LLC and Grace Communities had submitted a PUD amendment application for the memory care facility to be constructed as a part of Cook Lake Highlands, but the applicant recently asked for the item to be withdrawn at this time. It is possible another PUD amendment will be applied for in the foreseeable future. 12. “Vollrath Agricultural Preserve” (PID 20-119-23-22-0003) (City File No. 22-077). Jerald Vollrath submitted an application to re-enroll his acreage in the agricultural preserve program. The application is complete for review and will be placed on the January 26, 2023 Council agenda. 13. “Vollrath Compost Site Sketch Plan” (PID 19-119-23-12-0002) (City File No. 22-078). Trent Vollrath submitted an application to ask the Council for feedback on allowing a commercial compost site within the Rural Residential district. The application was determined to be incomplete at this time. 14. “MS4 Updates” (Citywide) (City File No. 23-001). Staff anticipates needing to process further changes to MS4-related regulations to comply with the City’s MS4 permit. Currently, Public Works and Engineering are focusing efforts on establishing new requirements for salt storage. The salt storage ordinance amendments are tentatively scheduled for Council review on March 9th. Page 3 of 3 15. “Gmach Accessory Dwelling Unit CUP” (PID 05-119-23-13-0011) (City File No. 23-002). George Gmach submitted an application for a conditional use permit to allow an accessory dwelling unit over 960 square feet at 22600 Oakdale Drive. This item is currently under review for completeness and could be scheduled for Planning Commission and City Council review as early as March. City of Corcoran 2023 City Council Schedule Agenda Item: 12. Below is a tentative schedule for City Council meetings. The items and schedule are subject to change. February 9, 2023 Work Session (Tentative) • Joint Work Session February 9, 2023 • Award RFP for City Park (Tentative) • Hackamore Project Approve Plans / Authorize Bids • Joint Powers Agreement – Hackamore Project • Improvement and Assessment Hearings and Orders Project for Hackamore Project • Accept Feasibility Study and Call the Improvement Hearing – Hackamore Road • Long Range Planning Fund / 2022 Transfers • RFP – History and Discussion of RFP Schedule • Calling of Bonds in 2023 • Compost Site Sketch Plan • Strategic Planning – Report February 23, 2023 Work Session (Tentative) • Cook Lake Highlands PUD Amendments • Draft Rental Ordinance February 23, 2023 • 2023A Bond Sale • Re-appoint Commissioners to Expired Commission Seats • Concept Sketch Plan March 9, 2023 Work Session (Tentative) • Sidewalk Policy March 9, 2023 • Park Signs Plan • Three Rivers Park District – Cooperative Agreement • Firearms Ordinance Draft • Planning Assistant – Transition PT 32 Hours and FT • MS4 – Salt Storage Ordinance March 23, 2023 Page 2 of 2 • NW Trails Resolution of Support • Placeholder to THC Regulations Follow Up • Cook Lake Highlands – PUD Amendment (Tentative) April 13, 2023 April 27, 2023 Additional Future Meeting Items Host Special Charter Commission Meeting – March 21, 2023 at 5:30pm Annual Charter Commission Meeting – September 13, 2023 at 5:30pm Supporting NW Trails DNR Funding – July 27, 2023