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EXECUTIVE SUMMARY
City Council Regular Meeting: June 21, 2022
AGENDA ITEM: Approve a Local Road Improvement
Grant Agreement with MnDOT for
Railroad Crossing Improvements on
Bonaire Path East, City Project 2018-03
AGENDA SECTION:
Consent
PREPARED BY: Brian Erickson, PE, City Engineer AGENDA NO. 6.p.
ATTACHMENTS: Resolution, MnDOT LRIP Agreement APPROVED BY: LJM
RECOMMENDED ACTION: Approve a Local Road Improvement Program grant
agreement with MnDOT for railroad crossing improvements on Bonaire Path East, City
Project 2018-03.
BACKGROUND
As part of the 2018 Minnesota session law, Chapter 214, Article 1, Section 17, Subdivision 22, the
legislature appropriated $1,000,000 for a grant to the City of Rosemount to “predesign, design, and
construct railroad crossing improvements to create a quiet zone at the railroad crossing located on Bonaire
Path in Rosemount.” This funding is administered through the Local Road Improvement Program (LRIP)
and as a result requires the execution of a MnDOT grant agreement before the LRIP funds can be
authorized.
Staff has been working to complete an agreement for crossing improvements with Union Pacific Railroad
(UPRR) since late 2018 and ultimately, that agreement was approved by City Council at the April 20, 2021
meeting. However, because of UPRR delays the final construction of the new crossing surface, signal
lights and gate arms was delayed until 2022. That work is now completed and the City’s road contractor
will be on site to complete paving this summer.
DISCUSSION
The Bonaire Path Improvements design began in early 2018 and progressed through final design by early
2019 as planned. During that timeframe, city staff and the consultant met with MnDOT Rail and Central
Office representatives several times in an effort to ensure that all planned improvements in the UPRR
right of way would meet the necessary standards to request establishment of a quiet zone from the Federal
Railroad Administration (FRA).
In coordination with the design work, an onsite ‘diagnostic’ meeting with UPRR, city, consultant and
MnDOT was held to establish UPRR requirements. During that time, UPRR stated that the final
agreement for actual construction improvements would most likely take 6 months and could be completed
in summer 2019. The actual timeline for this work was substantially delayed solely due to UPRR inaction
and unresponsiveness to countless inquiries.
As part of the bidding process, the necessary road work within the UPRR right of way was bid as an
alternate work item to establish the actual costs related directly to work in the right of way. The road and
utility construction contract was awarded by the Rosemount City Council on May 5, 2019 to Eureka
2
Construction, Inc. and work began shortly thereafter.
As part of the legislative grant from 2018, the City of Rosemount and MnDOT need to execute a LRIP
agreement to access these funds. The grant paperwork has been drafted since late 2019; however, UPRR’s
delays prevented this agreement since the final estimated cost from UPRR was a necessary element to be
incorporated into the agreement.
Staff has been working with MnDOT to ensure that all the necessary items are in place and the final draft
agreement and resolution is prepared for city signature. Once that is completed, staff will forward for final
execution by MnDOT.
The agreement has been reviewed by the City Attorney and she commented regarding some of MnDOT’s
standard language in Exhibit F – General Terms and Conditions. In reviewing the comments, and based
on the current status of this project a need to address or change the agreement is unneeded.
Funding
As part of the funding provided from the state a majority of that will be used to improve the railroad
crossing directly. Those improvements include:
1. New and extended concrete crossing panels that provided a surface for the road and trail.
2. Installation of crossing signal lights and arms.
The remainder will be used for the roadway improvements within UPRR’s right of way. Those
improvements include:
1. Paved roadway with curb and gutter.
2. Center channelizing median with delineators in order to meet quiet zone requirements.
3. Paved trail from Anderson Drive (Greystone Subdivision) to Akron Avenue.
The following table shows a breakdown of the estimated costs for each of the improvements as detailed in
the LRIP grant agreement.
Since these funds are reimbursable, the city will need to request funds as they are expended in relation to
the work items in the table above.
RECOMMENDATION
Staff recommends Council approval of the attached resolution and agree to enter into the MnDOT LRIP
agreement.
34,913.69$
654,824.00$
Signal 281,665.00$
Crossing Material 373,159.00$
21,123.31$
710,861.00$
289,139.00$
TOTAL IMPROVEMENTS 1,000,000.00$
Roadway Total
LRIP AGREEMENT FUNDING BREAKDOWN
Railroad Improvements
Roadway Improvments
Rail Crossing Design
Rail Crossing
Rail Crossing Const.
Contingency
Railroad Total
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 1
LOCAL ROAD IMPROVEMENT PROGRAM (LRIP)
GRANT AGREEMENT
This Agreement between the Minnesota Department of Transportation (“MnDOT”) and the
Grantee named below is made pursuant to Minnesota Statutes Section 174.52 and pursuant to
Minn. Laws 2018, Chapter 214- H.F. 4425. The provisions in that section and the Exhibits
attached hereto and incorporated by reference constitute this Agreement and the persons signing
below agree to fully comply with all of the requirements of this Agreement. This Agreement will
be effective on the date State obtains all required signatures under Minnesota Statutes §16C.05,
subdivision 2.
1. Public Entity (Grantee) name, address and contact person:
City of Rosemount
2875 145th St W.
Rosemount, MN 55068-4997
Contact: Brian Erickson, City Engineer
2. Project(s):
Name of Project & Project
Number
(See Exhibit C for location)
Amount of
LRIP Funds
Amount of
Required Matching
Funds
Completion Date
2019 Bonaire Path
Improvements
(S.A.P 208-105-002)
$1,000,000.00 $1,505,174.24 December 31, 2025
3. Total Amount of LRIP Grant for all projects under this Agreement: $1,000,000.00
4. The following Exhibits for each project are attached and incorporated by reference as part of
this Agreement:
Exhibit A Completed Sources and Uses of Funds Schedule
Exhibit B Project Schedule
Exhibit C Bond Financed Property Certification
Exhibit D Grant Application
Exhibit E Grantee Resolution Approving Grant Agreement
Exhibit F General Terms and Conditions
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 2
5. Additional requirements, if any:
None
6. Any modification of this Agreement must be in writing and signed by both parties.
(The remaining portion of this page was intentionally left blank.)
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 3
PUBLIC ENTITY (GRANTEE)
By:
Title: Mayor
Date:______________________________
By:
Title: City Clerk
Date:______________________________
DEPARTMENT OF TRANSPORTATION
Approval and Certifying Encumbrance
By:
Title: State Aid Programs Engineer
Date:
Office of Financial Management, Grant Unit
By:___________________________________
Agency Grant Supervisor
Date:_________________________________
OFFICE OF CONTRACT MANAGEMENT
By: _________________________________
Contract Administrator
Date:_________________________________
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 4
EXHIBIT A
SOURCES AND USES OF FUNDS SCHEDULE
SOURCES OF FUNDS USES OF FUNDS
Entity Supplying Funds Amount Expenses Amount
State Funds: Items Paid for with
LRIP
LRIP Grant (Acct 328) $1,000,000.00 Grant Funds:
Roadway, curb and gutter,
storm sewer, sidewalk
$289,139.00
Other: Rail Crossing Design $34,913.69
________________ $___________ Rail Crossing
Construction
$654,824.00
________________ $___________ Rail Crossing
Construction Contingency
$21,123.31
________________ $___________ ________________ $___________
Subtotal $1,000,000.00 Subtotal $1,000,000.00
Public Entity Funds: Items paid for with Non-
Matching Funds LRIP Grant Funds:
Local Match $1,505,174.24 Roadway, curb and gutter,
storm sewer, sidewalk
$1,505,174.24
Other: ________________ $___________
________________ $___________ ________________ $___________
________________ $___________ ________________ $___________
________________ $___________
Subtotal $1,505,174.24 Subtotal $1,505,174.24
TOTAL FUNDS $2,505,174.24 = TOTAL PROJECT
COSTS
$2,505,174.24
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 5
EXHIBIT B
PROJECT SCHEDULE
Award Date: May 7, 2019
Construction Start Date: June 24, 2019
Construction Substantial Complete Date: October 31, 2022
Contract Final Completion Date: on or before December 31, 2025
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 6
EXHIBIT C
BOND FINANCED PROPERTY CERTIFICATION
State of Minnesota
General Obligation Bond Financed Property
The undersigned states that it has a fee simple, leasehold and/or easement interest in the
real property located in the County of Dakota State of Minnesota that is generally described or
illustrated graphically in Attachment 1 attached hereto and all improvements thereon (the
“Restricted Property”) and acknowledges that the Restricted Property is or may become State
bond-financed property. To the extent that the Restricted Property is or becomes State bond-
financed property, the undersigned acknowledges that:
A. The Restricted Property is State bond-financed property under Minn. Stat. Sec.
16A.695, is subject to the requirements imposed by that statute, and cannot be
sold, mortgaged, encumbered or otherwise disposed of without the approval of
the Commissioner of Minnesota Management and Budget; and
B. The Restricted Property is subject to the provisions of the Local Road
Improvement Program Grant Agreement between the Minnesota Department of
Transportation and the undersigned dated ________________, 2022; and
C. The Restricted Property shall continue to be deemed State bond-financed
property for 37.5 years or until the Restricted Property is sold with the written
approval of the Commissioner of Minnesota Management and Budget.
Date: __________________, 2022
_____________________________________
[name of Public Entity grantee], a political
subdivision of the State of Minnesota
By: ________________________________
Name: _______________________________
Title: _______________________________
By: ________________________________
Name: _______________________________
Title: _______________________________
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 7
Attachment 1 to Exhibit C
GENERAL DESCRIPTION OF RESTRICTED PROPERTY
City right of way for Bonaire Path within the City of Rosemount.
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 8
EXHIBIT D
GRANT APPLICATION
Attach the grant application for the project
In 2018 session law Chapter 214, Article 1, Section 17, Subdivision 22, the legislature appropriated
$1,000,000.00 for a grant to the City of Rosemount to “predesign, design, and construct railroad
crossing improvements to create a quiet zone at the railroad crossing located on Bonaire Path in
Rosemount.” This portion of the project will be funded from that appropriation, with
$1,000,000.00 in LRIP funding.
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 9
EXHIBIT E
GRANTEE RESOLUTION APPROVING GRANT AGREEMENT
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 10
EXHIBIT F
GENERAL TERMS AND CONDITIONS FOR
LOCAL ROAD IMPROVEMENT PROGRAM (LRIP) GRANTS
Article I
DEFINITIONS
Section 1.01 Defined Terms. The following terms shall have the meanings set out respectively after
each such term (the meanings to be equally applicable to both the singular and plural forms of the terms
defined) unless the context specifically indicates otherwise:
“Advance(s)” - means an advance made or to be made by MnDOT to the Public Entity and disbursed
in accordance with the provisions contained in Article VI hereof.
“Agreement” - means the Local Road Improvement Program Grant Agreement between the Public
Entity and the Minnesota Department of Transportation to which this Exhibit is attached.
“Certification” - means the certification, in the form attached as Exhibit C, in which the Public Entity
acknowledges that its interest in the Real Property is bond financed property within the meaning of Minn.
Stat. Sec. 16A.695 and is subject to certain restrictions imposed thereby.
“Code” - means the Internal Revenue Code of 1986, as amended, and all treasury regulations, revenue
procedures and revenue rulings issued pursuant thereto.
“Commissioner” - means the Commissioner of Minnesota Management & Budget.
“Commissioner’s Order” - means the “Fourth Order Amending Order of the Commissioner of
Minnesota Management & Budget Relating to Use and Sale of State Bond Financed Property” dated July
30, 2012, as it may be amended or supplemented.
“Completion Date” - means the projected date for completion of the Project as indicated in the
Agreement.
“Construction Contract Documents” - means the document or documents, in form and substance
acceptable to MnDOT, including but not limited to any construction plans and specifications and any
exhibits, amendments, change orders, modifications thereof or supplements thereto, which collectively
form the contract between the Public Entity and the Contractor(s) for the completion of the Construction
Items on or before the Completion Date for either a fixed price or a guaranteed maximum price.
“Construction Items” - means the work to be performed under the Construction Contract Documents.
“Contractor” - means any person engaged to work on or to furnish materials and supplies for the
Construction Items including, if applicable, a general contractor.
“Draw Requisition” - means a draw requisition that the Public Entity, or its designee, submits to
MnDOT when an Advance is requested, as referred to in Section 4.02.
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 11
“G.O. Bonds” - means the state general obligation bonds issued under the authority granted in Article
XI, Sec. 5(a) of the Minnesota Constitution, the proceeds of which are used to fund the LRIP Grant, and
any bonds issued to refund or replace such bonds.
“Grant Application” - means the grant application that the Public Entity submitted to MnDOT which
is attached as Exhibit D.
“LRIP Grant” - means a grant from MnDOT to the Public Entity under the LRIP in the amount
specified in the Agreement, as such amount may be modified under the provisions hereof.
“LRIP” - means the Local Road Improvement Program pursuant to Minn. Stat. Sec. 174.52 and rules
relating thereto.
“MnDOT” - means the Minnesota Department of Transportation.
“Outstanding Balance of the LRIP Grant” - means the portion of the LRIP Grant that has been
disbursed to the Public Entity minus any amounts returned to the Commissioner.
“Project” - means the Project identified in the Agreement to be totally or partially funded with a LRIP
grant.
“Public Entity” - means the grantee of the LRIP Grant and identified as the Public Entity in the
Agreement.
“Real Property” - means the real property identified in the Agreement on which the Project is located.
Article II
GRANT
Section 2.01 Grant of Monies. MnDOT shall make the LRIP Grant to the Public Entity, and disburse
the proceeds in accordance with the terms and conditions herein.
Section 2.02 Public Ownership, The Public Entity acknowledges and agrees that the LRIP Grant is
being funded with the proceeds of G.O. Bonds, and as a result all of the Real Property must be owned by
one or more public entities. The Public Entity represents and warrants to MnDOT that it has one or more
of the following ownership interests in the Real Property: (i) fee simple ownership, (ii) an easement that is
for a term that extends beyond the date that is 37.5 years from the Agreement effective date, or such shorter
term as authorized by statute, and which cannot be modified or terminated early without the prior written
consent of MnDOT and the Commissioner; and/or (iii) a prescriptive easement for a term that extends
beyond the date that is 37.5 years from the Agreement effective date.
Section 2.03 Use of Grant Proceeds. The Public Entity shall use the LRIP Grant solely to reimburse
itself for expenditures it has already made, or will make, to pay the costs of one of the following applicable
activities: (i) preliminary, final construction and engineering and administration (ii) constructing or
reconstructing city streets, county highways, or town roads with statewide or regional significance that
have not been fully funded through other state, federal, or local funding sources; or (iii) capital
improvement projects on county state-aid highways that are intended primarily to reduce traffic crashes,
deaths, injuries, and property damage. The Public Entity shall not use the LRIP Grant for any other purpose,
including but not limited to, any work to be done on a state trunk highway or within a trunk highway
easement.
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 12
Section 2.04 Operation of the Real Property. The Real Property must be used by the Public Entity
in conjunction with or for the operation of a county highway, county state-aid highway, town road, or city
street and for other uses customarily associated therewith, such as trails and utility corridors, and for no
other purposes or uses. The Public Entity shall have no intention on the effective date of the Agreement to
use the Real Property as a trunk highway or any part of a trunk highway. The Public Entity must annually
determine that the Real Property is being used for the purposes specified in this Section and, upon written
request by either MnDOT or the Commissioner, shall supply a notarized statement to that effect.
Section 2.05 Sale or Lease of Real Property. The Public Entity shall not (i) sell or transfer any part
of its ownership interest in the Real Property, or (ii) lease out or enter into any contract that would allow
another entity to use or operate the Real Property without the written consent of both MnDOT and the
Commissioner. The sale or transfer of any part of the Public Entity’s ownership interest in the Real
Property, or any lease or contract that would allow another entity to use or operate the Real Property, must
comply with the requirements imposed by Minn. Stat. Sec. 16A.695 and the Commissioner’s Order
regarding such sale or lease.
Section 2.06 Public Entity’s Representations and Warranties. The Public Entity represents and
warrants to MnDOT that:
A. It has legal authority to execute, deliver and perform the Agreement and all documents referred
to therein, and it has taken all actions necessary to its execution and delivery of such documents.
B. It has the ability and a plan to fund the operation of the Real Property for the purposes specified
in Section 2.04, and will include in its annual budget all funds necessary for the operation of
the Real Property for such purposes.
C. The Agreement and all other documents referred to therein are the legal, valid and binding
obligations of the Public Entity enforceable against the Public Entity in accordance with their
respective terms.
D. It will comply with all of the provisions of Minn. Stat. Sec. 16A.695, the Commissioner’s Order
and the LRIP. It has legal authority to use the G.O. Grant for the purpose or purposes described
in this Agreement.
E. All of the information it has submitted or will submit to MnDOT or the Commissioner relating
to the LRIP Grant or the disbursement of the LRIP Grant is and will be true and correct.
F. It is not in violation of any provisions of its charter or of the laws of the State of Minnesota,
and there are no actions or proceedings pending, or to its knowledge threatened, before any
judicial body or governmental authority against or affecting it relating to the Real Property, or
its ownership interest therein, and it is not in default with respect to any order, writ, injunction,
decree, or demand of any court or any governmental authority which would impair its ability
to enter into the Agreement or any document referred to herein, or to perform any of the acts
required of it in such documents.
G. Neither the execution and delivery of the Agreement or any document referred to herein nor
compliance with any of the provisions or requirements of any of such documents is prevented
by, is a breach of, or will result in a breach of, any provision of any agreement or document to
which it is now a party or by which it is bound.
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 13
H. The contemplated use of the Real Property will not violate any applicable zoning or use statute,
ordinance, building code, rule or regulation, or any covenant or agreement of record relating
thereto.
I. The Project will be completed and the Real Property will be operated in full compliance with
all applicable laws, rules, ordinances, and regulations of any federal, state, or local political
subdivision having jurisdiction over the Project and the Real Property.
J. All applicable licenses, permits and bonds required for the performance and completion of the
Project and for the operation of the Real Property as specified in Section 2.04 have been, or
will be, obtained.
K. It reasonably expects to possess its ownership interest in the Real Property described in Section
2.02 for at least 37.5 years, and it does not expect to sell such ownership interest.
L. It does not expect to lease out or enter into any contract that would allow another entity to use
or operate the Real Property.
M. It will supply whatever funds are needed in addition to the LRIP Grant to complete and fully
pay for the Project.
N. The Construction Items will be completed substantially in accordance with the Construction
Contract Documents by the Completion Date and all such items will be situated entirely on the
Real Property.
O. It will require the Contractor or Contractors to comply with all rules, regulations, ordinances,
and laws bearing on its performance under the Construction Contract Documents.
P. It shall furnish such satisfactory evidence regarding the representations and warranties
described herein as may be required and requested by either MnDOT or the Commissioner.
Q. It has made no material false statement or misstatement of fact in connection with its receipt of
the G.O. Grant, and all the information it has submitted or will submit to the State Entity or
Commissioner of MMB relating to the G.O. Grant or the disbursement of any of the G.O. Grant
is and will be true and correct.
Section 2.07 Event(s) of Default. The following events shall, unless waived in writing by MnDOT
and the Commissioner, constitute an Event of Default under the Agreement upon either MnDOT or the
Commissioner giving the Public Entity 30 days’ written notice of such event and the Public Entity’s failure
to cure such event during such 30-day time period for those Events of Default that can be cured within 30
days or within whatever time period is needed to cure those Events of Default that cannot be cured within
30 days as long as the Public Entity is using its best efforts to cure and is making reasonable progress in
curing such Events of Default; however, in no event shall the time period to cure any Event of Default
exceed six (6) months unless otherwise consented to, in writing, by MnDOT and the Commissioner.
A. If any representation, covenant, or warranty made by the Public Entity herein or in any other
document furnished pursuant to the Agreement, or to induce MnDOT to disburse the LRIP
Grant, shall prove to have been untrue or incorrect in any material respect or materially
misleading as of the time such representation, covenant, or warranty was made.
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 14
B. If the Public Entity fails to fully comply with any provision, covenant, or warranty contained
herein.
C. If the Public Entity fails to fully comply with any provision, covenant or warranty contained
in Minn. Stat. Sec. 16A.695, the Commissioner’s Order, or Minn. Stat. Sec. 174.52 and all
rules related thereto.
D. If the Public Entity fails to use the proceeds of the LRIP Grant for the purposes set forth in
Section 2.03, the Grant Application, and in accordance with the LRIP.
E. If the Public Entity fails to operate the Real Property for the purposes specified in Section 2.04.
F. If the Public Entity fails to complete the Project by the Completion Date.
G. If the Public Entity sells or transfers any portion of its ownership interest in the Real Property
without first obtaining the written consent of both MnDOT and the Commissioner.
H. If the Public Entity fails to provide any additional funds needed to fully pay for the Project.
I. If the Public Entity fails to supply the funds needed to operate the Real Property in the manner
specified in Section 2.04.
Notwithstanding the foregoing, any of the above events that cannot be cured shall, unless waived in writing
by MnDOT and the Commissioner, constitute an Event of Default under the Agreement immediately upon
either MnDOT or the Commissioner giving the Public Entity written notice of such event.
Section 2.08 Remedies. Upon the occurrence of an Event of Default and at any time thereafter until
such Event of Default is cured to the satisfaction of MnDOT, MnDOT or the Commissioner may enforce
any or all of the following remedies.
A. MnDOT may refrain from disbursing the LRIP Grant; provided, however, MnDOT may make
such disbursements after the occurrence of an Event of Default without waiving its rights and
remedies hereunder.
B. If the Event of Default involves a sale of the Public Entity’s interest in the Real Property in
violation of Minn. Stat. Sec. 16A.695 or the Commissioner’s Order, the Commissioner, as a
third party beneficiary of the Agreement, may require that the Public Entity pay the amounts
that would have been paid if there had been compliance with such provisions. For other Events
of Default, the Commissioner may require that the Outstanding Balance of the LRIP Grant be
returned to it.
C. Either MnDOT or the Commissioner, as a third party beneficiary of the Agreement, may
enforce any additional remedies it may have in law or equity.
The rights and remedies specified herein are cumulative and not exclusive of any rights or remedies that
MnDOT or the Commissioner would otherwise possess.
If the Public Entity does not repay the amounts required to be paid under this Section or under any other
provision contained herein within 30 days of demand by the Commissioner, or any amount ordered by a
court of competent jurisdiction within 30 days of entry of judgment against the Public Entity and in favor
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 15
of MnDOT and/or the Commissioner, then such amount may, unless precluded by law, be offset against
any aids or other monies that the Public Entity is entitled to receive from the State of Minnesota.
Section 2.09 Notification of Event of Default. The Public Entity shall furnish to MnDOT and the
Commissioner, as soon as possible and in any event within seven (7) days after it has obtained knowledge
of the occurrence of each Event of Default, a statement setting forth details of each Event of Default and
the action which the Public Entity proposes to take with respect thereto.
Section 2.10 Effect of Event of Default. The Agreement shall survive Events of Default and remain
in full force and effect, even upon full disbursement of the LRIP Grant, and shall only be terminated under
the circumstances set forth in Section 2.11.
Section 2.11 Termination of Agreement and Modification of LRIP Grant.
A. If the Project is not started within five (5) years after the effective date of the Agreement or the
LRIP Grant has not been disbursed within four (4) years after the date the Project was started, MnDOT’ s
obligation to fund the LRIP Grant shall terminate. In such event, (i) if none of the LRIP Grant has been
disbursed by such date, MnDOT shall have no obligation to fund the LRIP Grant and the Agreement will
terminate, and (ii) if some but not all of the LRIP Grant has been disbursed by such date, MnDOT shall
have no further obligation to provide any additional funding for the LRIP Grant and the Agreement shall
remain in force but shall be modified to reflect the amount of the LRIP Grant that was actually disbursed
and the Public Entity is still obligated to complete the Project by the Completion Date.
B. The Agreement shall terminate upon the Public Entity’s sale of its interest in the Real Property
and transmittal of the required portion of the proceeds of the sale to the Commissioner in compliance with
Minn. Stat. Sec. 16A.695 and the Commissioner’s Order, or upon the termination of the Public Entity’s
ownership interest in the Real Property if such ownership interest is an easement.
Section 2.12 Excess Funds. If the full amount of the G.O. Grant and any matching funds referred to
in Section 5.13 are not needed to complete the Project, then, unless language in the G.O. Bonding
Legislation indicates otherwise, the G.O. Grant shall be reduced by the amount not needed.
Article III
COMPLIANCE WITH MINNESOTA STATUTE, SEC. 16A.695
AND THE COMMISSIONER’S ORDER
Section 3.01 State Bond Financed Property. The Public Entity acknowledges that its interest in
the Real Property is, or when acquired by it will be, “state bond financed property”, as such term is used in
Minn. Stat. Sec. 16A.695 and the Commissioner’s Order and, therefore, the provisions contained in such
statute and order apply, or will apply, to its interest in the Real Property, even if the LRIP Grant will only
pay for a portion of the Project.
Section 3.02 Preservation of Tax Exempt Status. In order to preserve the tax-exempt status of the
G.O. Bonds, the Public Entity agrees as follows:
A. It will not use the Real Property or use or invest the LRIP Grant or any other sums treated as
“bond proceeds” under Section 148 of the Code (including “investment proceeds,” “invested
sinking funds” and “replacement proceeds”) in such a manner as to cause the G.O. Bonds to be
classified as “arbitrage bonds” under Code Section 148.
MnDOT Agreement No. 1034659
SAP No. 208-105-002
Revised May 2022 16
B. It will deposit and hold the LRIP Grant in a segregated non-interest-bearing account until such
funds are used for payments for the Project.
C. It will, upon written request, provide the Commissioner all information required to satisfy the
informational requirements set forth in the Code, including Sections 103 and 148, with respect
to the G.O. Bonds.
D. It will, upon the occurrence of any act or omission by the Public Entity that could cause the
interest on the G.O. Bonds to no longer be tax exempt and upon direction from the
Commissioner, take such actions and furnish such documents as the Commissioner determines
to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal
taxation, which such action may include: (i) compliance with proceedings intended to classify
the G.O. Bonds as a “qualified bond” within the meaning of Code Section 141(e), or (ii)
changing the nature of the use of the Real Property so that none of the net proceeds of the G.O.
Bonds will be deemed to be used, directly or indirectly, in an “unrelated trade or business” or
for any “private business use” within the meaning of Code Sections 141(b) and 145(a).
E. It will not otherwise use any of the LRIP Grant or take, permit or cause to be taken, or omit to
take, any action that would adversely affect the exemption from federal income taxation of the
interest on the G.O. Bonds, and if it should take, permit or cause to be taken, or omit to take,
as appropriate, any such action, it shall take all lawful actions necessary to correct such actions
or omissions promptly upon obtaining knowledge thereof.
Section 3.03 Changes to G.O. Compliance Legislation or the Commissioner’s Order. If Minn.
Stat. Sec. 16A.695 or the Commissioner’s Order is amended in a manner that reduces any requirement
imposed against the Public Entity, or if the Public Entity’s interest in the Real Property becomes exempted
from Minn. Stat. Sec. 16A.695 and the Commissioner’s Order, then upon written request by the Public
Entity, MnDOT shall execute an amendment to the Agreement to implement such amendment or exempt
the Public Entity’s interest in the Real Property from Minn. Stat. Sec. 16A.695 and the Commissioner’s
Order.
Article IV
DISBURSEMENT OF GRANT PROCEEDS
Section 4.01 The Advances. MnDOT agrees, on the terms and subject to the conditions set forth
herein, to make Advances of the LRIP Grant to the Public Entity from time to time in an aggregate total
amount not to exceed the amount of the LRIP Grant. If the amount of LRIP Grant that MnDOT
cumulatively disburses hereunder to the Public Entity is less than the amount of the LRIP Grant delineated
in Section 1.01, then MnDOT and the Public Entity shall enter into and execute whatever documents
MnDOT may request in order to amend or modify this Agreement to reduce the amount of the LRIP Grant
to the amount actually disbursed. Provided, however, in accordance with the provisions contained in
Section 2.11, MnDOT’s obligation to make Advances shall terminate as of the dates specified in Section
2.11 even if the entire LRIP Grant has not been disbursed by such dates.
Advances shall only be for expenses that (i) are for those items of a capital nature delineated in Source
and Use of Funds that is attached as Exhibit A, (ii) accrued no earlier than the effective date of the
legislation that appropriated the funds that are used to fund the LRIP Grant, or (iii) have otherwise been
consented to, in writing, by the Commissioner.
It is the intent of the parties hereto that the rate of disbursement of the Advances shall not exceed the rate
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of completion of the Project or the rate of disbursement of the matching funds required, if any, under Section
5.13. Therefore, the cumulative amount of all Advances disbursed by the State Entity at any point in time
shall not exceed the portion of the Project that has been completed and the percentage of the matching funds
required, if any, under Section 5.13 that have been disbursed as of such point in time. This requirement is
expressed by way of the following two formulas:
Formula #1:
Cumulative Advances < (Program Grant) × (percentage of matching funds, if any, required under
Section 5.13 that have been disbursed)
Formula #2:
Cumulative Advances < (Program Grant) × (percentage of Project completed)
Section 4.02 Draw Requisitions. Whenever the Public Entity desires a disbursement of a portion
of the LRIP Grant the Public Entity shall submit to MnDOT a Draw Requisition duly executed on behalf
of the Public Entity or its designee. Each Draw Requisition with respect to construction items shall be
limited to amounts equal to: (i) the total value of the classes of the work by percentage of completion as
approved by the Public Entity and MnDOT, plus (ii) the value of materials and equipment not incorporated
in the Project but delivered and suitably stored on or off the Real Property in a manner acceptable to
MnDOT, less (iii) any applicable retainage, and less (iv) all prior Advances.
Notwithstanding anything herein to the contrary, no Advances for materials stored on or off the Real
Property will be made by MnDOT unless the Public Entity shall advise MnDOT, in writing, of its intention
to so store materials prior to their delivery and MnDOT has not objected thereto.
At the time of submission of each Draw Requisition, other than the final Draw Requisition, the Public
Entity shall submit to MnDOT such supporting evidence as may be requested by MnDOT to substantiate
all payments which are to be made out of the relevant Draw Requisition or to substantiate all payments
then made with respect to the Project.
The final Draw Requisition shall not be submitted before completion of the Project, including any
correction of material defects in workmanship or materials (other than the completion of punch list items).
At the time of submission of the final Draw Requisition the Public Entity shall submit to MnDOT: (I) such
supporting evidence as may be requested by MnDOT to substantiate all payments which are to be made
out of the final Draw Requisition or to substantiate all payments then made with respect to the Project, and
(ii) satisfactory evidence that all work requiring inspection by municipal or other governmental authorities
having jurisdiction has been duly inspected and approved by such authorities and that all requisite
certificates and other approvals have been issued.
If on the date an Advance is desired the Public Entity has complied with all requirements of this
Agreement and MnDOT approves the relevant Draw Requisition, then MnDOT shall disburse the amount
of the requested Advance to the Public Entity.
Section 4.03 Additional Funds. If MnDOT shall at any time in good faith determine that the sum
of the undisbursed amount of the LRIP Grant plus the amount of all other funds committed to the Project
is less than the amount required to pay all costs and expenses of any kind which reasonably may be
anticipated in connection with the Project, then MnDOT may send written notice thereof to the Public
Entity specifying the amount which must be supplied in order to provide sufficient funds to complete the
Project. The Public Entity agrees that it will, within 10 calendar days of receipt of any such notice, supply
or have some other entity supply the amount of funds specified in MnDOT's notice.
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Section 4.04 Condition Precedent to Any Advance. The obligation of MnDOT to make any
Advance hereunder (including the initial Advance) shall be subject to the following conditions precedent:
A. MnDOT shall have received a Draw Requisition for such Advance specifying the amount of
funds being requested, which such amount when added to all prior requests for an Advance
shall not exceed the amount of the LRIP Grant set forth in Section 1.01.
B. No Event of Default under this Agreement or event which would constitute an Event of Default
but for the requirement that notice be given or that a period of grace or time elapse shall have
occurred and be continuing.
C. No determination shall have been made by MnDOT that the amount of funds committed to the
Project is less than the amount required to pay all costs and expenses of any kind that may
reasonably be anticipated in connection with the Project, or if such a determination has been
made and notice thereof sent to the Public Entity under Section 4.03, then the Public Entity has
supplied, or has caused some other entity to supply, the necessary funds in accordance with
such section or has provided evidence acceptable to MnDOT that sufficient funds are available.
D. The State Entity shall have received evidence, in form and substance acceptable to the State
Entity, that the Public Entity has sufficient funds to fully and completely pay for the Project
and all other expenses that may occur in conjunction therewith.
E. The Public Entity has supplied to the State Entity all other items that the State Entity may
reasonably require
Section 4.05 Processing and Disbursement of Advances. The Public Entity acknowledges and
agrees as follows:
A. Advances are not made prior to completion of work performed on the Project.
B. All Advances are processed on a reimbursement basis.
C. The Public Entity must first document expenditures to obtain an Advance.
D. Reimbursement requests are made on a partial payment basis or when the Project is completed.
E. All payments are made following the “Delegated Contract Process or State Aid Payment Request”
as requested and approved by the appropriate district state aid engineer.
Section 4.06 Construction Inspections. The Public Entity shall be responsible for making its own
inspections and observations regarding the completion of the Project, and shall determine to its own
satisfaction that all work done or materials supplied have been properly done or supplied in accordance
with all contracts that the Public Entity has entered into regarding the completion of the Project.
Article V
MISCELLANEOUS
Section 5.01 Insurance. If the Public Entity elects to maintain general comprehensive liability
insurance regarding the Real Property, then the Public Entity shall have MnDOT named as an additional
named insured therein.
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Section 5.02 Condemnation. If, after the Public Entity has acquired the ownership interest set forth
in Section 2.02, all or any portion of the Real Property is condemned to an extent that the Public Entity can
no longer comply with Section 2.04, then the Public Entity shall, at its sole option, either: (i) use the
condemnation proceeds to acquire an interest in additional real property needed for the Public Entity to
continue to comply with Section 2.04 and to provide whatever additional funds that may be needed for such
purposes, or (ii) submit a request to MnDOT and the Commissioner to allow it to sell the remaining portion
of its interest in the Real Property. Any condemnation proceeds which are not used to acquire an interest
in additional real property shall be applied in accordance with Minn. Stat. Sec. 16A.695 and the
Commissioner’s Order as if the Public Entity’s interest in the Real Property had been sold. If the Public
Entity elects to sell its interest in the portion of the Real Property that remains after the condemnation, such
sale must occur within a reasonable time period after the date the condemnation occurred and the cumulative
sum of the condemnation and sale proceeds applied in accordance with Minn. Stat. Sec. 16A.695 and the
Commissioner’s Order.
If MnDOT receives any condemnation proceeds referred to herein, MnDOT agrees to or pay over to the
Public Entity all of such condemnation proceeds so that the Public Entity can comply with the requirements
of this Section.
Section 5.03 Use, Maintenance, Repair and Alterations. The Public Entity shall not, without the
written consent of MnDOT and the Commissioner, (i) permit or allow the use of any of the Real Property
for any purpose other than the purposes specified in Section 2.04, (ii) substantially alter any of the Real
Property except such alterations as may be required by laws, ordinances or regulations, or such other
alterations as may improve the Real Property by increasing its value or which improve its ability to be used
for the purposes set forth in Section 2.04, (iii) take any action which would unduly impair or depreciate the
value of the Real Property, (iv) abandon the Real Property, or (v) commit or permit any act to be done in
or on the Real Property in violation of any law, ordinance or regulation.
If the Public Entity fails to maintain the Real Property in accordance with this Section, MnDOT may
perform whatever acts and expend whatever funds necessary to so maintain the Real Property, and the
Public Entity irrevocably authorizes MnDOT to enter upon the Real Property to perform such acts as may
be necessary to so maintain the Real Property. Any actions taken or funds expended by MnDOT shall be
at its sole discretion, and nothing contained herein shall require MnDOT to take any action or incur any
expense and MnDOT shall not be responsible, or liable to the Public Entity or any other entity, for any such
acts that are performed in good faith and not in a negligent manner. Any funds expended by MnDOT
pursuant to this Section shall be due and payable on demand by MnDOT and will bear interest from the
date of payment by MnDOT at a rate equal to the lesser of the maximum interest rate allowed by law or
18% per year based upon a 365-day year.
Section 5.04 Recordkeeping and Reporting. The Public Entity shall maintain books and records
pertaining to Project costs and expenses needed to comply with the requirements contained herein, Minn.
Stat. Sec. 16A.695, the Commissioner’s Order, and Minn. Stat. Sec. 174.52 and all rules related thereto,
and upon request shall allow MnDOT, its auditors, the Legislative Auditor for the State of Minnesota, or
the State Auditor for the State of Minnesota, to inspect, audit, copy, or abstract all of such items. The Public
Entity shall use generally accepted accounting principles in the maintenance of such items, and shall retain
all of such books and records for a period of six years after the date that the Project is fully completed and
placed into operation.
Section 5.05 Inspections by MnDOT. The Public Entity shall allow MnDOT to inspect the Real
Property upon reasonable request by MnDOT and without interfering with the normal use of the Real
Property.
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Section 5.06 Liability. The Public Entity and MnDOT agree that each will be responsible for its own
acts and the results thereof to the extent authorized by law, and neither shall be responsible for the acts of
the other party and the results thereof. The liability of MnDOT and the Commissioner is governed by the
provisions of Minn. Stat. Sec. 3.736. If the Public Entity is a “municipality” as that term is used in Minn.
Stat. Chapter 466, then the liability of the Public Entity is governed by the provisions of Chapter 466. The
Public Entity’s liability hereunder shall not be limited to the extent of insurance carried by or provided by
the Public Entity, or subject to any exclusion from coverage in any insurance policy.
Section 5.07 Relationship of the Parties. Nothing contained in the Agreement is to be construed as
establishing a relationship of co-partners or joint venture among the Public Entity, MnDOT, or the
Commissioner, nor shall the Public Entity be considered to be an agent, representative, or employee of
MnDOT, the Commissioner, or the State of Minnesota in the performance of the Agreement or the Project.
No employee of the Public Entity or other person engaging in the performance of the Agreement or the
Project shall be deemed have any contractual relationship with MnDOT, the Commissioner, or the State of
Minnesota and shall not be considered an employee of any of those entities. Any claims that may arise on
behalf of said employees or other persons out of employment or alleged employment, including claims
under the Workers’ Compensation Act of the State of Minnesota, claims of discrimination against the Public
Entity or its officers, agents, contractors, or employees shall in no way be the responsibility of MnDOT,
the Commissioner, or the State of Minnesota. Such employees or other persons shall not require nor be
entitled to any compensation, rights or benefits of any kind whatsoever from MnDOT, the Commissioner,
or the State of Minnesota, including tenure rights, medical and hospital care, sick and vacation leave,
disability benefits, severance pay and retirement benefits.
Section 5.08 Notices. In addition to any notice required under applicable law to be given in another
manner, any notices required hereunder must be in writing and personally served or sent by prepaid,
registered, or certified mail (return receipt requested), to the address of the party specified below or to such
different address as may in the future be specified by a party by written notice to the others:
To the Public Entity: At the address indicated on the first page of the Agreement.
To MnDOT at: Minnesota Department of Transportation
Office of State Aid
395 John Ireland Blvd., MS 500
Saint Paul, MN 55155
Attention: Marc Briese, State Aid Programs Engineer
To the Commissioner at: Minnesota Management & Budget
400 Centennial Office Bldg.
658 Cedar St.
St. Paul, MN 55155
Attention: Commissioner
Section 5.09 Assignment or Modification. Neither the Public Entity nor MnDOT may assign any
of its rights or obligations under the Agreement without the prior written consent of the other party.
Section 5.10 Waiver. Neither the failure by the Public Entity, MnDOT, or the Commissioner, as a
third party beneficiary of the Agreement, in one or more instances to insist upon the complete observance
or performance of any provision hereof, nor the failure of the Public Entity, MnDOT, or the Commissioner
to exercise any right or remedy conferred hereunder or afforded by law shall be construed as waiving any
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breach of such provision or the right to exercise such right or remedy thereafter. In addition, no delay by
any of the Public Entity, MnDOT, or the Commissioner in exercising any right or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude other or
further exercise thereof or the exercise of any other right or remedy.
Section 5.11 Choice of Law and Venue. All matters relating to the validity, interpretation,
performance, or enforcement of the Agreement shall be determined in accordance with the laws of the State
of Minnesota. All legal actions arising from any provision of the Agreement shall be initiated and venued
in the State of Minnesota District Court located in St. Paul, Minnesota.
Section 5.12 Severability. If any provision of the Agreement is finally judged by any court to be
invalid, then the remaining provisions shall remain in full force and effect and they shall be interpreted,
performed, and enforced as if the invalid provision did not appear herein.
Section 5.13 Matching Funds. Any matching funds as shown on Page 1 of the Grant Agreement
that are required to be obtained and supplied by the Public Entity must either be in the form of (i) cash
monies, (ii) legally binding commitments for money, or (iii) equivalent funds or contributions, including
equity, which have been or will be used to pay for the Project. The Public Entity shall supply to MnDOT
whatever documentation MnDOT may request to substantiate the availability and source of any matching
funds.
Section 5.14 Sources and Uses of Funds. The Public Entity represents to MnDOT and the
Commissioner that the Sources and Uses of Funds Schedule attached as Exhibit A accurately shows the
total cost of the Project and all of the funds that are available for the completion of the Project. The Public
Entity will supply any other information and documentation that MnDOT or the Commissioner may request
to support or explain any of the information contained in the Sources and Uses of Funds Schedule. If any
of the funds shown in the Sources and Uses of Funds Schedule have conditions precedent to the release of
such funds, the Public Entity must provide to MnDOT a detailed description of such conditions and what
is being done to satisfy such conditions.
Section 5.15 Project Completion Schedule. The Public Entity represents to MnDOT and the
Commissioner that the Project Completion Schedule attached as Exhibit B correctly and accurately sets
forth the projected schedule for the completion of the Project.
Section 5.16 Third-Party Beneficiary. The Governmental Program will benefit the State of
Minnesota and the provisions and requirements contained herein are for the benefit of both the State Entity
and the State of Minnesota. Therefore, the State of Minnesota, by and through its Commissioner of MMB,
is and shall be a third-party beneficiary of this Agreement.
Section 5.17 Public Entity Tasks. Any tasks that the Agreement imposes upon the Public Entity
may be performed by such other entity as the Public Entity may select or designate, provided that the failure
of such other entity to perform said tasks shall be deemed to be a failure to perform by the Public Entity.
Section 5.18 Data Practices. The Public Entity agrees with respect to any data that it possesses
regarding the G.O. Grant or the Project to comply with all of the provisions and restrictions contained in
the Minnesota Government Data Practices Act contained in Minnesota Statutes Chapter 13, as such may
subsequently be amended or replaced from time to time.
Section 5.19 Non-Discrimination. The Public Entity agrees to not engage in discriminatory
employment practices regarding the Project and it shall fully comply with all of the provisions contained in
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Revised May 2022 22
Minnesota Statutes Chapters 363A and 181, as such may subsequently be amended or replaced from time
to time.
Section 5.20 Worker’s Compensation. The Public Entity agrees to comply with all of the provisions
relating to worker’s compensation contained in Minn. Stat. Secs. 176.181 subd. 2 and 176.182, as they may
be amended or replaced from time to time with respect to the Project.
Section 5.21 Antitrust Claims. The Public Entity hereby assigns to MnDOT and the Commissioner
of MMB all claims it may have for over charges as to goods or services provided with respect to the Project
that arise under the antitrust laws of the State of Minnesota or of the United States of America.
Section 5.22 Prevailing Wages. The Public Entity agrees to comply with all of the applicable
provisions contained in Minnesota Statutes Chapter 177, and specifically those provisions contained in
Minn. Stat.§. 177.41 through 177.435 as they may be amended or replaced from time to time with respect
to the Project. By agreeing to this provision, the Public Entity is not acknowledging or agreeing that the
cited provisions apply to the Project.
Section 5.23 Entire Agreement. The Agreement and all of the exhibits attached thereto embody the
entire agreement between the Public Entity and MnDOT, and there are no other agreements, either oral or
written, between the Public Entity and MnDOT on the subject matter hereof.
Section 5.24 E-Verification. The Public Entity agrees and acknowledges that it is aware of
Minn.Stat. § 16C.075 regarding e-verification of employment of all newly hired employees to confirm that
such employees are legally entitled to work in the United States, and that it will, if and when applicable,
fully comply with such order.
Section 5.25 Telecommunications Certification. If federal funds are included in Exhibit A, by
signing this agreement, Contractor certifies that, consistent with Section 889 of the John S. McCain
National Defense Authorization Act for Fiscal Year 2019, Pub. L. 115-232 (Aug. 13, 2018), and 2 CFR
200.216, Contractor will not use funding covered by this agreement to procure or obtain, or to extend,
renew, or enter into any contract to procure or obtain, any equipment, system, or service that uses “covered
telecommunications equipment or services” (as that term is defined in Section 889 of the Act) as a
substantial or essential component of any system or as critical technology as part of any system. Contractor
will include this certification as a flow down clause in any contract related to this agreement.
Section 5.26 Title VI/Non-discrimination Assurances. Public Entity 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. Public Entity will ensure
the appendices and solicitation language within the assurances are inserted into contracts as required.
MnDOT may conduct a review of the Public Entity’s compliance with this provision. The Public Entity
must cooperate with MnDOT throughout the review process by supplying all requested information and
documentation to MnDOT, making Public Entity staff and officials available for meetings as requested,
and correcting any areas of non-compliance as determined by MnDOT.
Section 5.27 Electronic Records and Signatures. The parties agree to contract by electronic
means. This includes using electronic signatures and converting original documents to electronic records.
Section 5.28 Certification. By signing this Agreement, the Grantee certifies that it is not suspended
or debarred from receiving federal or state awards.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2022 – 67
A RESOLUTION APPROVING A GRANT AGREEMENT TO STATE
TRANSPORTATION FUND (LOCAL ROAD IMPROVEMENT PROGRAM) GRANT
TERMS AND CONDITIONS FOR BONAIRE PATH EAST
CITY PROJECT 2018-03
SAP 208-105-002
WHEREAS, the City of Rosemount has applied to the Commissioner of Transportation for a grant
from the Minnesota State Transportation Fund for Local Road Improvement and
WHEREAS, the Commissioner of Transportation has given notice that funding for this project is
available; and
WHEREAS, the amount of the grant has been determined to be $1,000,000 by reason of the lowest
responsible bid;
NOW THEREFORE, be it resolved that the City of Rosemount does hereby agree to the terms
and conditions of the grant consistent with Minnesota Statutes, section 174.52 and will pay any
additional amount by which the cost exceeds the estimate, and will return to the Minnesota State
Transportation Fund any amount appropriated for the project but not required. The proper city
officers are authorized to execute a grant agreement and any amendments thereto with the
Commissioner of Transportation concerning the above-referenced grant.
ADOPTED this 21st day of June, 2022.
William H. Droste, Mayor
ATTEST:
Erin Fasbender, City Clerk