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5/15/2023 - City Council - Regular - Agendas
* The Consent Agenda lists those items of business which are considered to be routine, recommended for approval, and/or which need no discussion. The several separate items listed on the Consent Agenda are acted upon by one motion. There will be no separate discussion of these items unless a Council Member makes a request, in which event the item will be removed from the Consent Agenda and placed elsewhere on the regular agenda for Council discussion and action. ** Under Public Comment, individuals may address the City Council about any item not contained on the regular agenda. Each speaker should keep their statements to three minutes to allow sufficient time for others. The Council will take no official action on items discussed at the forum, with the exception of referral to staff for future report. CITY OF SPRING PARK CITY COUNCIL AGENDA MAY 15, 2023 – 6:30 PM SPRING PARK CITY HALL 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. PUBLIC COMMENT 5. REQUESTS & PRESENTATIONS 6. CONSENT AGENDA a. Minutes - Regular City Council Meeting, May 2, 2023 b. Payroll & Expenditures, May 15, 2023 c. Special Event Permits #23-08 through #23-10: i. Back Channel: Sunset Sets, Artimer Market, and The Fast and the Beerious d. 2023 Annual Dock Permits e. MMKR Audit Services Scope of Work f. 2023 Annual Liquor and Cigarette Licenses g. Approve Pickleball Post install quote 7. ACTION AGENDA a. Approve IT Managed Services RFP b. Approval of Long-Range Planning Contract with Abdo 8. REPORTS a. Mayor & Council b. Staff 9. ANNOUNCEMENTS/MISCELLANEOUS (INFORMATION ONLY) a. June 5, 2023 - Regular City Council Meeting – 6:30PM b. June 20, 2023 - Regular City Council Meeting – 6:30PM c. June 20, 2023 - Council Work Session – 5:30PM d. July 3, 2023 - Regular City Council Meeting – 6:30PM 10. ADJOURNMENT CITY OF SPRING PARK CITY COUNCIL MINUTES MAY 1, 2023 – 6:30 PM SPRING PARK CITY HALL 1. CALL TO ORDER The meeting was called to order at 6:30 p.m. Council Present: Mayor Rockvam, Council Member’s Chase, Hoffman, Horton, and Sippel. Staff Present: City Administrator Anderson, City Engineer Nielson, City Attorney Murphy 2. PLEDGE OF ALLEGIANCE Mayor Rockvam led the audience in the Pledge of Allegiance 3. APPROVAL OF AGENDA Council Member Horton motioned, being seconded by Council Member Sippel, to approve the agenda as presented. On vote being taken, the motion was unanimously approved. 4. PUBLIC COMMENT: none 5. REQUESTS & PRESENTATIONS: none 6. CONSENT AGENDA 7. Council Member Horton motioned, being seconded by Council Member Chase to: a. Approve Regular City Council Minutes from April 17, 2023 b. Approve Work Session Minutes from April 17, 2023 c. Approve May 1, 2023, Claims for Payment On vote being taken, the motion was unanimously approved. 8. ACTION AGENDA a. Sunset Concept Plan Discussion and Recommendation to County Council Member Hoffman brought forward an alternative to the Hennepin County Sunset Road Reconstruction concept plan Option 1. He suggested the sidewalks remain as they are today from CR 15 to the post office and then begin the new trail and green space at that point. He also recommended the trail be on the East side to eliminate having a cross walk to Thor Thompson Park. Discussion was had. City Engineer Nielson stated he wasn’t sure the County would agree to eliminating the green space from CR 15 to the post office since sidewalks are not recommended for bike use, but we can present to them and see. Council Member Hoffman motioned, being seconded by Council Member Sippel, to present the Council’s choice to Hennepin County for the Sunset Road reconstruction which is Option 1- with Modifications - no green space from CR 15 to the post office (through the high-density commercial area) starting the green space and trail at that point in accordance with Option 1. On vote being taken, the motion was unanimously approved. b. Authorize Staff to initiate Tennis Court Construction City Administrator Anderson requested approval to accept the quote from SurfacePro to resurface the tennis courts and add pickle ball courts. Council Member Sippel motioned, being seconded by Council Member Chase, to approve the quote from SurfacePro and instruct staff to initiate construction. On vote being taken, the motion was unanimously approved. c. City Hall Curb Appeal Discussion City Administrator Anderson brought forward a quote from Norling’s to repair the stairs, landings, and planters at City Hall. Council Member Sippel would like to see different finishing options for the railing – something more durable than paint. He also mentioned we should have a policy in place for our bidding process. City Administrator Anderson will ask Norling’s for revisions to the current bid and also seek additional bids. 9. REPORTS a. Mayor & Council: Council Member Sippel brought up the nuisance ordinance and asked City Administrator Anderson whether it was still being addressed on a complaint basis or if we were being more proactive with our code enforcement. City Administrator Anderson stated we were doing both - being more proactive with enforcement and addressing on a compliant basis. b. Staff; - Attorney/Planner: City Code Discussion: City Attorney Murphy said he and the City Planner conducted a code review regarding the hoop housing and included their opinions on how the code can be interpreted and enforced. Discussion was had. It was determined that City staff should conduct further research on prior code amendments and bring it back to the Council for future discussion. c. - Engineer: Streets Discussion City Engineer Nielson provided road construction updates on West Arm Road West, Black Lake Road, Warren, and Northern. Nielson requested approval for a change order to remove a large tree and install a chain link fence on West Arm Road West. He also stated that he is conducting research on the road improvements for Northern Avenue and said he will bring back more information at the next Council meeting. Council Member Hoffman motioned, being seconded by Council Member Horton, to approve the change order to remove the tree and install a chain link fence on West Arm Road West. On vote being taken, the motion was unanimously approved. 10. ANNOUNCEMENTS/MISCELLANEOUS (INFORMATION ONLY) a. May 10, 2023 - Planning Commission Meeting – 6:00PM - CANCELLED b. May 15, 2023 - Regular City Council Meeting – 6:30PM c. May 15, 2023 - Council Work Session – 5:30PM d. June 5, 2023 - Regular City Council Meeting – 6:30PM 11. ADJOURNMENT There being no further discussion, Council Member Hoffman motioned, being seconded by Council Member Sippel, to adjourn the meeting at 7:42p.m. On vote being taken, the motion was unanimously approved. Respectfully submitted, Jamie Hoffman, City Clerk *Check Summary Register© CITY OF SPRING PARK 04/26/23 5:02 PM Page 1 Batch: 042423PAY Name Check Date Check Amt 10100 Wells Fargo Bank NA 33273 CITY OF BLOOMINGTON 4/26/2023 $24.00 March 23' Water Testing Fees 33274 CARSON, CLELLAND, & SCHRED 4/26/2023 $1,833.75 March 23' Legal Services - Encroachment Agre 33275 ECM PUBLISHERS, INC.4/26/2023 $53.63 Publish Ordinance No.23-02 33276 GOPHER STATE ONE-CALL 4/26/2023 $10.80 March 23' Locates 33277 HAWKINS, INC.4/26/2023 $40.00 Purchased Chemicals for WTP 33278 HENNEPIN COUNTY TREASURE 4/26/2023 $39,743.36 Payment for HCRRA Easement Charge - West 33279 KODIAK POWER SOLUTIONS 4/26/2023 $860.06 Diagnose alarm, replace battery and charger at 33280 LARSON LAWNSCAPE, INC.4/26/2023 $15,083.75 Feb. 2023 Snow Services - Roads & City Hall 33281 LEAGUE OF MINNESOTA CITIES 4/26/2023 $70.00 2023 MCMA Annual Conference: Golf Networki 33282 METRO CITIES 4/26/2023 $834.00 2023 Metro Cities Membership Dues 33283 METRO COUNCIL ENVIRON SER 4/26/2023 $21,758.45 May 23' Wastewater Treatment Monthly Fee 33284 MNSPECT, LLC 4/26/2023 $2,534.49 March 23' Plan Check Fees 33285 OPTUM BANK 4/26/2023 $18.75 Feb., Mar., April 2023 HSA Employee Monthly 33286 CITY OF ORONO 4/26/2023 $69,560.00 Jan 2023 Public Works Services 33287 QUALITY FLOW SYSTEMS, INC.4/26/2023 $8,860.00 Purchase of Dwyer Magnnehelic Indicating Tra 33288 SAMBATEK, INC.4/26/2023 $231.75 Engi.Fees - Black Lake Road 03/12/23-04/08/2 33289 SPECIALIZED ENVIROMENTAL T 4/26/2023 $1,500.00 2023 Contracted Yard Waste Agreement with T 33290 CITY OF SPRING PARK 4/26/2023 $100.48 1st Qtr. Utility 2023 - City Hall 33291 US BANK 4/26/2023 $938.79 March 23' Hotel for MCFOA Conference and R 33292 XCEL ENERGY 4/26/2023 $5,223.87 Electric Usage 02/27/23-03/29/23 - Lift Station Total Checks $169,279.93 Batch: 042423PAY Page 1 04/26/23 5:18 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name 10100 Wells Fargo Bank NA 33273 04/26/23 CITY OF BLOOMINGTON $24.00 March 23' Water Testing FeesTesting Fees 22022E 601-49400-306 $24.00Total 33274 04/26/23 CARSON, CLELLAND, & SCHREDER $145.00 March 23' Legal Services - Encroachment Agreement Legal Fees 3526E 101-41600-304 $253.75 March 23' Legal Services - Joint Trenching Ordinance Legal Fees 3526E 101-41600-304 $217.50 March 23' Legal Services - Data PracticesLegal Fees 3526E 101-41600-304 $108.75 March 23' Legal Services - CUPLegal Fees 3526E 101-41600-304 $108.75 March 23' Legal Services - Mapleton AveLegal Fees 3526E 101-41600-304 $1,000.00 March 23' Prosecution ServicesLegal Fees 3526E 101-42000-304 $1,833.75Total 33275 04/26/23 ECM PUBLISHERS, INC. $53.63 Publish Ordinance No.23-02Ordinance Publication 941726E 101-41600-353 $53.63Total 33276 04/26/23 GOPHER STATE ONE-CALL $5.40 March 23' LocatesContracted Services 3030755E 601-49400-310 $5.40 March 23' LocatesContracted Services 3030755E 602-49450-310 $10.80Total 33277 04/26/23 HAWKINS, INC. $40.00 Purchased Chemicals for WTPChemicals and Chem Pro 6446878E 601-49400-216 $40.00Total 33278 04/26/23 HENNEPIN COUNTY TREASURER $39,743.36 Payment for HCRRA Easement Charge - West Arm Rd Road Pavement Project 2 1000204922E 201-43100-528 $39,743.36Total 33279 04/26/23 KODIAK POWER SOLUTIONS $860.06 Diagnose alarm, replace battery and charger at Lift Station #6 LS Repair/Maint 12004715E 602-49450-491 $860.06Total 33280 04/26/23 LARSON LAWNSCAPE, INC. $2,191.25 Feb. 2023 Snow Services - Roads & City HallSnow Plowing - Streets 78631E 101-43101-309 $4,330.00 Feb. 2023 Snow Services - SidewalksSnow Removal - Sidewalk 78631E 101-43101-307 $8,562.50 Feb. 2023 Snow Services - Salt ApplicationStreet Salt-Sanding 78631E 101-43101-318 $15,083.75Total 33281 04/26/23 LEAGUE OF MINNESOTA CITIES $70.00 2023 MCMA Annual Conference: Golf Networking Activite for Mike Anderson Membership/Dues/EduE 101-41500-433 $70.00Total 33282 04/26/23 METRO CITIES $834.00 2023 Metro Cities Membership DuesMembership/Dues/Edu 1393E 101-41500-433 Batch: 042423PAY Page 2 04/26/23 5:18 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name $834.00Total 33283 04/26/23 METRO COUNCIL ENVIRON SERVICES $21,758.45 May 23' Wastewater Treatment Monthly FeeMCES Sewer Service Chg 0001154554E 602-49450-327 $21,758.45Total 33284 04/26/23 MNSPECT, LLC $337.50 March 23' Code Enforcement ServicesContracted Services 0097241-INE 101-42400-310 $617.65 March 23' Plan Check FeesPlan Check Fees 0097255-INE 101-42400-305 $1,579.34 March 23' Residential & Commercial Inspections/Permit Fees/General Fees/Staff Meeting Contracted Services 0097255-INE 101-42400-310 $2,534.49Total 33285 04/26/23 OPTUM BANK $18.75 Feb., Mar., April 2023 HSA Employee Monthly Service Fee Other Miscellaneous 0001434379E 101-41500-437 $18.75Total 33286 04/26/23 CITY OF ORONO $10,434.00 Jan 2023 Public Works ServicesContracted Services 20142183E 101-41510-310 $3,478.00 Jan 2023 Public Works ServicesContracted Services 20142183E 601-49400-310 $3,478.00 Jan 2023 Public Works ServicesContracted Services 20142183E 602-49450-310 $10,434.00 Feb 2023 Public Works ServicesContracted Services 20142184E 101-41510-310 $3,478.00 Feb 2023 Public Works ServicesContracted Services 20142184E 601-49400-310 $3,478.00 Feb 2023 Public Works ServicesContracted Services 20142184E 602-49450-310 $10,434.00 March 2023 Public Works ServicesContracted Services 20142185E 101-41510-310 $3,478.00 March2023 Public Works ServicesContracted Services 20142185E 601-49400-310 $3,478.00 March 2023 Public Works ServicesContracted Services 20142185E 602-49450-310 $10,434.00 April 2023 Public Works ServicesContracted Services 20142186E 101-41510-310 $3,478.00 April 2023 Public Works ServicesContracted Services 20142186E 601-49400-310 $3,478.00 April 2023 Public Works ServicesContracted Services 20142186E 602-49450-310 $69,560.00Total 33287 04/26/23 QUALITY FLOW SYSTEMS, INC. $8,860.00 Purchase of Dwyer Magnnehelic Indicating Transmitter for WTP Contracted Services 44639E 601-49400-310 $8,860.00Total 33288 04/26/23 SAMBATEK, INC. $231.75 Engi.Fees - Black Lake Road 03/12/23-04/08/23Black Lake Rd Feasibility 24183E 201-43100-529 $231.75Total 33289 04/26/23 SPECIALIZED ENVIROMENTAL TECHN $1,500.00 2023 Contracted Yard Waste Agreement with The Mulch Store Contracted Services 106025534E 101-42800-310 $1,500.00Total 33290 04/26/23 CITY OF SPRING PARK $100.48 1st Qtr. Utility 2023 - City HallUtilities/Electric/GasE 101-45200-381 $100.48Total 33291 04/26/23 US BANK Batch: 042423PAY Page 3 04/26/23 5:18 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name $823.21 March 23' Hotel for MCFOA Conference and Registration for Clerks Institute for Patria & Jamie Membership/Dues/EduE 101-41500-433 $25.38 March 23' Microsoft/Adobe FeesComputer Support/SupplieE 101-41500-207 $25.37 March 23' Microsoft/Adobe FeesComputer Support/SupplieE 601-49400-207 $25.37 March 23' Microsoft/Adobe FeesComputer Support/SupplieE 602-49450-207 $39.46 March 23' Water purchase, hand soap, council photo album Other MiscellaneousE 101-41500-437 $938.79Total 33292 04/26/23 XCEL ENERGY $209.54 Electric Usage 02/27/23-03/29/23 - City HallUtilities/Electric/Gas 1028552854E 101-43100-381 $566.88 Electric Usage 02/27/23-03/29/23 - Lift Station #6Utilities/Electric/Gas 1028555122E 602-49450-381 $2,725.29 Electric Usage 02/27/23-03/29/23 - WTPUtilities/Electric/Gas 1028556313E 601-49400-381 $200.32 Electric Usage 02/27/23-03/29/23 - Lift Station #2Utilities/Electric/Gas 1028556811E 602-49450-381 $65.51 Electric Usage 02/27/23-03/29/23 - Traffic SignalUtilities/Electric/Gas 1028557416E 101-43100-381 $135.60 Electric Usage 02/27/23-03/29/23 - Lift Station #3Utilities/Electric/Gas 1028558202E 602-49450-381 $28.44 Electric Usage 02/27/23-03/29/23 - Lift Station #4Utilities/Electric/Gas 1028558487E 602-49450-381 $175.51 Electric Usage 02/27/23-03/29/23 - Lift Station #1Utilities/Electric/Gas 1028558549E 602-49450-381 $128.26 Electric Usage 02/27/23-03/29/23 - Lift Station #5Utilities/Electric/Gas 1028558925E 602-49450-381 $69.71 Electric Usage 02/27/23-03/29/23 - West St LightsUtilities/Electric/Gas 1028559457E 101-43100-381 $610.17 Electric Usage 02/27/23-03/29/23 - Middle St LightsUtilities/Electric/Gas 1028559756E 101-43100-381 $98.96 Electric Usage 02/27/23-03/29/23 - Traffic Signal & East Lights Utilities/Electric/Gas 1028559770E 101-43100-381 $209.68 Electric Usage 02/27/23-03/29/23 - Central & North Lights Utilities/Electric/Gas 1028560273E 101-43100-381 $5,223.87Total 10100 Wells Fargo Bank NA $169,279.93 Fund Summary 10100 Wells Fargo Bank NA 101 GENERAL FUND $65,916.47 201 PUBLIC IMPROV REVOLVING FUND $39,975.11 601 WATER FUND $25,592.06 602 SEWER FUND $37,796.29 $169,279.93 STAFF MEMO BACK CHANNEL BREWING CO. SPECIAL EVENT – ARTIMER MARKETS WEDNESDAYS – 5/31, 6/28, 7/26, 8/30/9/27 1. BACKGROUND: Back Channel Brewery’s “Artimer Markets” began in 2018 after a conditional use permit (CUP) was approved by resolution of the City Council on April 16, 2018. A special event permit application is necessary for any event that deviates from their approved CUP including hours, outdoor music, or alcohol. 2. DISCUSSION: Back Channel Brewery has submitted applications for special events held in conjunction with their artisan/farmers market on the last Wednesday of the month from May through September. The events are scheduled from 5:00p to 8:00p and are proposed to include outdoor live music from 5:00p to 8:00p and would also allow for patrons to have alcoholic beverages in the market area. A list of draft conditions is attached for Council review. Both Police and Fire have reviewed the application and have given their consent with no additional comments. 3. FINANCIAL CONSIDERATIONS: All required fees have been received. 4. RECOMMENDATION: Approve Special Event Application No. 23-09 for events on May 31, June 28, July 26, and August 30, September 27, 2023 with the attached list of conditions. STAFF MEMO BACK CHANNEL BREWERY SPECIAL EVENT THURSDAY, MAY 25, 2023 1. BACKGROUND: Back Channel Brewery is requesting a permit for a special event to be held on Thursday, May 25th. The Fast and the Beerious is an event that is scheduled from 6:00 p.m. to 9:00 p.m. and is a European car show. The event will not include outdoor music or amplified sound but will allow for patrons to have alcoholic beverages in a defined area of the north parking lot which will be demarcated with barriers. The site plan of the event in the north parking lot is the same as their previous summer car shows. 2. DISCUSSION: The request for outdoor alcohol requires a special event application. A list of draft conditions is attached for Council review. The event organizers will need to coordinate with the Mound Fire Department and Orono Police Department prior to the event to ensure that all necessary safety precautions have been taken. 3. FINANCIAL CONSIDERATIONS: All required permit fees have been received. 4. RECOMMENDED ACTION: Approve Special Event Application No. 23-10 for Back Channel Brewery for an event on Thursday, May 25, 2023 with the attached list of conditions. STAFF MEMO BACK-CHANNEL BREWERY SPECIAL EVENT – SUNSET SETS SATURDAY, MAY 20, 2023 1. BACKGROUND: Back Channel Brewery is requesting a permit for a special event to be held on Saturday, May 20, 2023, at the Brewery. The Sunset Sets special event is scheduled from 3:00 p.m. to 9:00 p.m. and it will include outdoor music in the brewery’s extended patio area of the south parking lot. 2. DISCUSSION: The request for outdoor music requires a special event application. A list of draft conditions is attached for Council review. The event organizers will need to coordinate with the Mound Fire Department and Orono Police Department prior to the event to ensure that all necessary safety precautions have been taken. 3. FINANCIAL CONSIDERATIONS: All required permit fees have been received. 4. RECOMMENDED ACTION: Approve Special Event Application No. 23-09 for event on May 20th with the attached list of conditions. FINAL CONDITIONS - SPECIAL EVENTS BACK CHANNEL BREWING CO. SPECIAL EVENTS – ARTIMER MARKETS, THE FAST AND THE BEERIOUS, & SUNSET SETS SPECIAL EVENT CONDITIONS 1. Event organizer must obtain a one day temporary on -sale liquor license from the Minnesota Department of Alcohol & Gambling Division. 2. Any alcoholic beverages being taken outside of the principal building shall be limited to a defined area that must be demarcated with barriers. At no point shall any alcoholic beverages be allowed outside of the demarcated outdoor area or the principal building. 3. Live music (including music played by a DJ) will be permitted between the hours of 5:00 pm and 8:00 pm. Additionally, all noise shall comply with section 18-122 of the Spring Park City Code. In the event of legitimate complaints made to the Orono Police Department, Back Channel Brewing shall be required to comply with all recommendations made by the Orono Police Department to bring the noise levels into compliance. 4. The event organizer must send notice of the event to all properties within 350 feet of the establishment. 5. The event organizer to incorporate any additional conditions as recommended by the Mound Fire Department and the Orono Police Department. STAFF MEMO 2023 ANNUAL DOCK PERMITS 1. BACKGROUND: The Spring Park City Code allows owners in the R-3 and C-3 districts to rent dock space to non-residents of the property if the owner first obtains a permit from the City and meets certain conditions. The annual fee for the permit is $200. All five of the currently permitted R-3 and C-3 docks in the City sent in their renewal information. 2. DISCUSSION: City staff received the required application materials from Minnetonka Edgewater Apartments, Presbyterian Homes, Bayview Apartments, Park Island, and Lord Fletcher’s Apartments. All applicants returned the following required materials for issuance of a permit: • Permit application • Site plans showing required parking, rest room facilities, and trash receptacle areas. • All required permit fees City staff will be conducting dock site visits to verify the information provided on applications regarding parking, rest room facilities, and trash receptacle areas for boat slip guests. 3. FINANCIAL CONSIDERATIONS: All required dock permitting fees have been received. 4. RECOMMENDATION: Approve the 2023 Dock Permits for Minnetonka Edgewater Apartments, Presbyterian Homes, Bayview Apartments, Park Island Apartments, and Lord Fletcher’s Apartments. April 27, 2023 To the City Council and Management of the City of Spring Park 4349 Warren Avenue Spring Park, MN 55384 Dear Councilmembers and Management: We are pleased to confirm our understanding of the services we are to provide the City of Spring Park (the City) for the year ended December 31, 2022. Audit Scope and Objectives We will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the disclosures, which collectively comprise the basic financial statements of the City as of and for the year ended December 31, 2022. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the City’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (GASB) who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City’s RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. The following RSI is required by GAAP and will be subjected to certain limited procedures, but will not be audited: 1)MD&A 2)GASB-required pension information We have also been engaged to report on supplementary information other than RSI that accompanies the City’s financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide an opinion on it in relation to the financial statements as a whole in a separate written report accompanying our auditor’s report on the financial statements OR in a report combined with our auditor’s report on the financial statements: 1)Individual fund schedules C E R T I F I E D A C C O U N T A N T S P UBLIC PRINCIPALS Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA/CMA Jaclyn M. Huegel, CPA Kalen T. Karnowski, CPA Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1 City of Spring Park Page 2 April 27, 2023 In connection with our audit of the basic financial statements, we will read the following other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 1)Introductory section We will perform the required State Legal Compliance Audit conducted in accordance with auditing standards generally accepted in the United States of America and the provisions of the Legal Compliance Audit Guide, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, and will include such tests of the accounting records and other procedures we consider necessary to enable us to conclude that, for the items tested, the City has complied with the material terms and conditions of applicable legal provisions. We will also prepare a management report for the City Council and administration. This report will communicate such things as our concerns regarding accounting procedures or policies brought to our attention during our audit, along with recommendations for improvements. The report will also contain certain financial comparisons and analysis, and a summary of legislative activity affecting Minnesota cities. Our services will not include an audit in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), which would only be required if the City expended $750,000 or more in federal assistance funds during the year. If the City is required to have a Single Audit of federal assistance funds, this engagement letter would need to be modified. The objectives of our audit are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; issue an auditor’s report that includes our opinion about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP; and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance, but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment of a reasonable user made based on the financial statements. Auditor’s Responsibilities for the Audit of the Financial Statements We will conduct our audit in accordance with GAAS and will include tests of your accounting records and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4)violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. City of Spring Park Page 3 April 27, 2023 Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government’s ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected customers, creditors, and financial institutions. We will also request written representations from your attorneys as part of the engagement. We may, from time to time and depending on the circumstances, use third party service providers in serving your account. We may share confidential information about you with these service providers but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintai n the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third party service provider. Furthermore, we will remain responsible for the work provided by any su ch third party service providers. Our audit of financial statements does not relieve you of your responsibilities. Audit Procedures – Internal Control We will obtain an understanding of the government and its environment, including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. An audit is not designed to provide assurance on internal control or to identify deficiencies in internal control. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under American Institute of Certified Public Accountants (AICPA) professional standards. City of Spring Park Page 4 April 27, 2023 We have identified the following significant risk(s) of material misstatement as part of our audit planning: 1)Management override of controls 2)Revenue recognition 3)Constructed capital asset additions 4)Segregation of duties At this time, audit planning has not concluded and modifications may be made to significant risks of material misstatement. If modifications are made, we will communicate them to you. Audit Procedures – Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City’s compliance with the provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Other Services We will also assist in preparing the financial statements of the City in conformity with accounting principles generally accepted in the United States of America based on information provided by you. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. You agree to assume all management responsibilities for the financial statement preparation services and any other nonattest services we provide; oversee the services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of the services and accept responsibility for them. Responsibilities of Management for the Financial Statements Our audit will be conducted on the basis that you acknowledge and understand your responsibility for designing, implementing, and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including monitoring ongoing activities; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America with the oversight of those charged with governance. Management is responsible for making drafts of financial statements, all financial records, and related information available to us and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) additional information that we may request for the purpose of the audit; and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about the financial statements and related matters. City of Spring Park Page 5 April 27, 2023 Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1)management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws and regulations. You are responsible for the preparation of the supplementary information in conformity with accounting principles generally accepted in the United States of America (GAAP). You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on, the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon OR make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon. Your responsibilities include acknowledging to us in the representation letter that (1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. We will provide copies of our reports to the City; however, management is responsibl e for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Malloy, Montague, Karnowski, Radosevich & Co., P.A. (MMKR) and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to a regulatory agency or its designee. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of MMKR personnel. Furthermore, upon request, we may provide copies of selected audit documentation to a regulatory agency or its designee. The regulatory agency or its designee may intend or decide to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the regulatory agency. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. City of Spring Park Page 6 April 27, 2023 James H. Eichten, CPA, is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. We expect to begin our audit shortly after the end of the fiscal year and to issue our report no later than June 30, 2023. Our fee for services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.). Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. These fees are based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If we find that additional audit procedures are required, or if additional services are requested by the City, those services will be billed at our standard hourly rates. Additional audit procedures might be required for certain accounting issues or events, such as new contractual agreements, transactions and legal requirements of new bond issues, new funds, major capital projects, new tax increment districts, if there is an indication of misappropriation or misuse of public funds, or if significant difficulties are encountered due to the lack of accounting records, incomplete records, or turnover in the City’s staff. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Our audit engagement ends on delivery of our audit report. Any follow-up services that might be required will be a separate, new engagement. The terms and conditions of that new engagement will be governed by a new, specific engagement letter for that service. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. If you intend to publish or otherwise reproduce the financial statements, such as in a bond statement, and make reference to our firm name, you agree to provide us with printers’ proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. During the year, you might request additional services such as routine advice, assistance in implementing audit recommendations, review of your projections or budgets, and other similar projects. Independence standards allow us to perform these routine services; however, it is important that you understand that we are not allowed to make management decisions, perform management functions, nor can we audit our own work or provide nonaudit services that are significant to the subject matter of the audit. Please be aware that e-mail is not a secure method of transmitting data. It can be intercepted, read, and possibly changed. Due to the large volume of e-mails sent daily, the likelihood of someone intercepting your e-mail is relatively small, but it does exist. We will communicate with you via e-mail, if you are willing to accept this risk. City of Spring Park Page 7 April 27, 2023 To ensure that MMKR’s independence is not impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel. If a dispute occurs related in any way to our services, our firm and the City agree to discuss the dispute and, if necessary, to promptly mediate in a good faith effort to resolve it. We will agree on a mediator, but if we cannot, either of us may apply to a court having personal jurisdiction over the parties for appointment of a mediator. We will share the mediator’s fees and expenses equally, but otherwise will bear our own attorney fees and costs of the mediation. Participation in such mediation shall be a condition to either of us initiating litigation. To allow time for the mediation, any applicable statute of limitations shall be tolled for a period not to exceed 120 days from the date either of us first requests in writing to mediate the dispute. The mediation shall be confidential in all respects, as allowed or required by law, except that our final settlement positions at mediation shall be admissible in litigation solely to determine the identity of the prevailing party for purposes of the awarding of attorney fees. We both recognize the importance of performing our obligations under this agreement in a timely way and fully cooperating with the other. In the event that either of us fails to timely perform or fully cooperate, the other party may, in its sole discretion, elect to suspend perform ance or terminate the agreement regardless of the prejudice to the other person. We agree we will give 10 days’ written notice of an intent to suspend or terminate, specifying the grounds for our decision, and will give the other an opportunity to cure the circumstances cited as grounds for that decision. In the event of suspension or termination, all fees and costs are immediately due on billing. We agree that it is important that disputes be discussed and resolved promptly. For that reason, we agree that, notwithstanding any other statutes of limitations or court decisions concerning them, all claims either of us may have will be barred unless brought within one year of the date the complaining party first incurs any damage of any kind, whether discovered or not, related in any way to acts or omissions of the other party, whether or not the complaining party seeks recovery for that first damage and whether or not we have continued to maintain a business relationship after the first damage occurred. Notwith standing anything in this letter to the contrary, we agree that regardless of where the City is located, or where this agreement is physically signed, this agreement shall have been deemed to have been entered into at our office in Hennepin County, Minnesota, and Hennepin County shall be the exclusive venue and jurisdiction for resolving disputes related to this agreement. This agreement shall be interpreted and governed under the laws of Minnesota. Reporting We will issue a written report upon completion of our audit of the City’s financial statements. Our report will be addressed to the City Council and management of the City. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor’s report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or withdraw from this engagement. City of Spring Park Page 8 April 27, 2023 We will also provide a report (that does not include an opinion) on the City’s compliance with applicable provisions of the Minnesota Legal Compliance Audit Guide, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65. The report will state (1) whether, in connection with our audit, anything came to our attention that caused us to believe that the City failed to comply with the applicable provision s of the Minnesota Legal Compliance Audit Guide, insofar as they relate to accounting matters, and (2) that the purpose of the report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. The report will also state that the report is not suitable for any other purpose. We appreciate the opportunity to be of service to the City and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign where indicated and email it to mmkr@mmkr.com. Sincerely, MALLOY, MONTAGUE, KARNOWSKI, RADOSEVICH & CO., P.A. James H. Eichten, CPA Principal JHE:lmb RESPONSE: This letter correctly sets forth the understanding of the City of Spring Park. City Council Representative City Management Representative By: ______________________________ By: _______________________________ Title: ______________________________ Title: _______________________________ Date: ______________________________ Date: _______________________________ STAFF MEMO 2023-2024 ANNUAL LIQUOR, CIGARETTE, & DINNER DANCE RENEWAL LICENSES 1. BACKGROUND: Liquor, beer, wine, cigarette, and dinner dance licenses expire on June 30, 2023. All of the currently licensed businesses in the City were sent renewal information in April 2023. All renewal applications cover the period from July 1, 2023 to June 30, 2024. The City Code does not require a public hearing for renewals of these types of l icenses. Annual license renewals can be approved as part of the Consent Agenda. 2. DISCUSSION: City staff requires the following materials for issuance of a license: • Renewal license application • Proof of liquor liability insurance (not required for Shoreline BP) • All required license fees • Police Background Check Tomsec, Inc. d/b/a Lord Fletcher’s, 3746 Sunset Drive • Liquor, Beer, and Wine - on, off, and Sunday sale, dinner dance Water Carrier LLC d/b/a Vann, 4016 Shoreline Drive • Beer and wine – on sale Back Channel Brewing Collective LLC, 4787 Shoreline Drive • Taproom on-sale, Brewer growler off-sale, and Sunday sale JDK Liquors, Inc. d/b/a MGM Wine & Spirits, 4659 Shoreline Drive • Liquor, beer, and wine – off sale; Cigarette BANDLT Enterprises, Inc. d/b/a Shoreline BP, 4311 Shoreline Drive • Cigarette 3. RECOMMENDATION: Approve by motion the 2023-2024 liquor, beer, wine, cigarette, and dinner dance renewal licenses for Lord Fletcher’s, Vann, Back Channel Brewing Collective LLC, MGM Wine & Spirits, and Shoreline BP contingent upon receipt of renewal applications, acceptable results of background checks, liquor liability insurance coverage, and receipt of all license fees. Estimate Date 5/12/2023 Estimate # 2023-1262 Name / Address City Of Spring Park 4349 Warren Avenue Spring Park, MN 55384 Ship To C&C Courts INC/Sport Court North 9208 James Ave S Suite 5 Bloomington, MN 55431-2331 Rep AS Project Thor Thompson Equip Signature TotalPricing is valid for 60 days - unless otherwise noted Assuming easy access to site Description Qty Rate Total Thor Thompson Park - Tennis Equipment Remove (1) set of existing tennis equipment 1 1,400.00 1,400.00 (2) Pickleball Nets JTN-30 (2) Sets of Pickleball Posts. Color: Black or Green (2) Sets of Aluminum Sleeves 2 872.04 1,744.08 Installation Fee/Labor to dig four holes, pour concrete, set equipment (includes rental equipment) 1 3,200.00 3,200.00 *Will need access to water supply nearby* _____________________________________ $6,344.08 Request For Proposal For Managed Information Technology Services City of Spring Park 4349 Warren Avenue Spring Park, MN 55384 952-471-9051 CITY OF SPRING PARK (govoffice.com) May 15, 2023 I. INTRODUCTION The City of Spring Park invites proposals from qualified companies to provide managed information technology (IT) services. The qualified company will enable the City to significantly improve IT effectiveness, enhance its quality of services, minimize its support costs, and maximize return on investment in IT. The City will consider a three-year contract term with two optional one-year extensions if agreed by both the City and the selected company. The City has a Microsoft-based computer network infrastructure. The City is seeking a business partner to provide technical support for this infrastructure, in the form of help desk requests, routine maintenance, and project-related services. The City may also look to the successful company for special projects and consulting as needed such as short- and long-term IT planning, and disaster recovery. The primary objective is to better manage the cost of maintaining the network, while also improving end user satisfaction with the system. City operations include two physical locations: City Hall and the Water Treatment Plant. The City has 3 full-time City staff plus five elected officials, the latter of whom have limited access to the City’s IT systems. City offices and operations have the following hours: City Hall/Water Treatment Plant: Monday – Thursday 7:30am – 5:00pm Friday – 7:30am - 11:30am The Water Treatment Plant provides daily round-the-clock service, and some public works services are provided outside of regular business hours as needed. The ideal company will have experience providing IT services to local government organizations. II. SCHEDULE AND ADDITIONAL INFORMATION Proposals must be received via email, in-person, or postal mail by 5:00pm on Wednesday, June 14, 2023, at one of following: jkhoffman@ci.spring-park.mn.us or send to: Jamie Hoffman, City Clerk City of Spring Park 4349 Warren Avenue, Spring Park, MN 55384 PROPOSALS MUST BE RECEIVED BY 5:00 PM ON WEDNESDAY, JUNE 14, 2023, TO BE CONSIDERED. Questions should be addressed to Jamie Hoffman at jkhoffman@ci.spring-park.mn.us or 952-999-7491. It is the intent of the City of Spring Park to conduct a comprehensive, fair, and impartial evaluation of proposals received. Award shall be made to the provider that is believed by staff to be the best fit for the City. The City reserves the right to reject all proposals, waive all technicalities, and accept any proposal deemed to be in the City’s best interest. Proposers are solely responsible for delivery of their proposals to the City before the deadline. This RFP creates no obligation on the part of the City to award a contract or to compensate the proposer for any costs incurred in competing to provide managed IT services to the City. III. EVALUATION CRITERIA Final selection will be based on a combination of relevant experience, available qualified staff, schedule of rates and ability to meet the City’s needs. Specifically, the evaluation committee will consider the following criteria. 1. Overall responsiveness to RFP requirements and ability of company to meet City’s customer service expectations and IT performance needs. 2. Thoroughness and understanding of the tasks to be completed and the environment in which they are performed. 3. Company security performance. 4. Expertise and overall experience of personnel assigned to the work. 5. Background and experience with similar projects. 6. Pricing structure and projected cost. IV. SCOPE OF WORK At a minimum, IT managed services will include the following work to manage, monitor and secure the city’s IT systems. 1. 24x7 monitoring of denoted servers and critical network components. 2. 24x7 response to critical servers and infrastructure failures. 3. 24x7 monitoring of firewall and denoted devices. 4. 24x7 monitoring of applications. 5. Remote management software on all workstations and servers. 6. Server and network administration a) SQL Server b) Laserfiche c) Laserfiche Weblink d) Domain Controllers e) Hyper-V Server All dates are tentative EXCEPT proposal due date. ACTION DATE Request for Proposal Released May 19, 2023 Proposals Due June 14, 2023 Contract Approved by Council June 20, 2023 f) Network back up and disaster recovery 7. Manage Microsoft service packs and security patches on servers. 8. Regular inspection of network and file server 9. Regular/periodic cleaning and testing of backups by restore of test files. 10. Firewall administration 11. Labor and support for migration of network operating systems/files 12. Monthly reports of network health and vitality 13. Web access to report on status of service calls and projects 14. Spyware/malware monitoring, removal, and cleaning 15. Regular data security and compliance assessments and testing, including antivirus software, password protection, mail filtering, phishing, vulnerability scanning, data destruction and patch management. 16. Less than 4-hour response time for server down emergencies 17. Research on hardware/software solutions 18. Consultation and support for near and long-term planning including development of replacement program to keep system operating at a high performance and data security levels including but not limited to major system upgrades or replacement, major redesign configurations and related large projects. 19. Perform network backup & disaster recovery. 20. Monitor system performance and provide regular reports including efficiency, quality, and security. Additionally, the proposal may include related services provided by the vendor that may be of value to the city. V. CURRENT USER COMPUTERS AND SYSTEM SERVERS Item Category Number Users (approximate) 3 Desktop computers 0 Laptop computers 3 Tablets (iPad & Microsoft Surface) 0 Servers • Physical servers • Virtual Physical Host (Dell server) hosting: ✓ Laserfiche ✓ Laserfiche Weblink ✓ Domain controller ✓ SQL server ✓ Hyper- V host 1 1 1 1 1 1 1 • Backup & disaster recovery server • Water Treatment Plant • Orono Public Works 1 1 Firewall 1 City Network Network Switches Wifi AP All are currently under existing provider cloud management VI. PROPOSAL REQUIREMENTS Proposals must address the scope of service with focus on clearly identifying company’s experience and competencies relative to the evaluation criteria. The City desires proposals that are thorough yet concise. At a minimum, proposals must contain the following information. 1. Cover Sheet with company contact information and person with binding authority to enter contracts. 2. Company Profile highlighting history, company expertise and customer service approach relative to the City’s scope of work and compliance with industry standards as evidenced by audits. Include length of time providing proposed services, number of clients, and location of office which would serve this account. 3. Customer Account Team listing the positions and/or individuals who would service the City’s relationship. Include qualifications, experience, expertise, and IT certifications for each position or individual. 4. Statement of Understanding briefly outlining the company’s understanding of the services to be provided and making a positive commitment to providing the services specified. 5. Scope of Service addressing the IT managed services described in the scope of work. Include a description of the approach for providing such services and the methodology for providing ongoing support. 6. Pricing Structure and Cost for all services described in the scope of work and additional services provided that may be of value to the City. 7. Client References who can speak to similar work performed by the company for similar size/scope clients; public sector client references are preferred. 8. Evidence of Insurance related to services provided. Proposed by Andrew Berg, CPA Partner | Abdo andrew.berg@abdosolutions.com P 952.715.3003 May 11, 2023 SERVICE PROPOSAL FOR City of Spring Park 4349 Warren Ave, Spring Park, Minnesota 55384 abdosolutions.com | Mankato, MN - Edina, MN - Scottsdale, AZ Mike Anderson,City Administrator City of Spring Park 4349 Warren Ave Spring Park,Minnesota 55384 Dear Mike, Thank you for the opportunity to submit this proposal to the City of Spring Park (the City) for par tnering with the City on a long-term financial plan to address the City's need for resources to fund upcoming capital improvement projects. During the City's annual financial audit last month, it was discussed that 2023 would be the right time to move ahead with this plan. In this proposal, Abdo Financial Solutions, LLC (Abdo FS) will demonstrate to you that we are the best choice for the City as a par tner to refine the capital improvement plan. Because we understand your goals, we will also: •Prepare projections for the years ending December 31, 2023 through 2028 including: ◦Cash flow projections for all capital funds ◦Evaluation of debt services fund inflows and outflows ◦Projecting tax levy and rate changes, based on your assumptions for growth and development •Evaluate funding sources and other assumptions provided by Management LONG-TERM PLAN PROJECTION The City has requested a proposal for preparing the projection (long range financial plan) which comprises the projected cash balances of City funds for the periods ending December 31, 2023, through 2028, including the related summaries of significant assumptions and accounting policies.A projection presents, to the best of management’s knowledge and belief, the City's expected cash balances for the projection period assuming managements expected borrowing, capital purchases, expenditure change, and revenue change assumptions. It is based on management’s assumptions, reflecting conditions it expects to exist and the course of action it expects would be taken during the projection period assuming the aforementioned assumptions. The projection is designed to provide management and Council a tool for future planning and might not be useful for other purposes. 1 The Firm is independent of the City as defined by auditing standards generally accepted in the United States of America. Abdo FS acknowledges the City may has retained an independent registered municipal advisor (IRMA) to assist and advise the City in evaluating information relating to the issuance of municipal securities and/or municipal financial products. Abdo FS acknowledges the City will rely on advice from their IRMA. Abdo FS will have no recourse against the City or its IRMA, regarding action or inaction relating to evaluating, commenting on, or responding to financial projects or information received under this Agreement. Abdo FS acknowledges it is not the registered independent municipal advisor retained by the Municipal Entity Client. We look forward to meeting with you to discuss our proposal and appreciate this opportunity to present Abdo FS for your consideration. Abdo Financial Solutions Andrew Berg, CPA Partner |Abdo 2 Executive Summary Continued The Abdo Difference At Abdo, we believe in the importance of relationships. This core value is the foundation of our approach to delivering the best experience and outcomes for our clients. It’s inherent in our people and the way we work. We know that for our clients to be successful, it takes more than having experience and credentials – we take the time to listen to their unique motivations, goals, and challenges. We truly care about their journey and where their path leads. Our process is built around a deep commitment to every client: We light the path forward so you can proceed with confidence. We're the par tner you can trust to help you along the way. We're the catalyst who empowers you to reach your goals. 33 LIGHTING THE PATH FORWARD Based on our ability to provide the requested services, our shared core values, and an understanding of your unique needs, we have the resources, knowledge, people and services to light the path forward for your city. We have assembled a team with relevant experience who are committed to working with you to ensure success. Each team member is briefly profiled below, and full biographies can be provided upon request. Your Team Government Partner andrew.berg@abdosolutions.com P 952.715.3003 ANDREW BERG, CPA Senior Manager bonnie.schwieger@abdosolutions.com P 952.715.3065 BONNIE SCHWIEGER, CPA 44 Associate jill.knutson@abdosolutions.com P 952.715.3074 JILL KNUTSON OUR QUALIFICATIONS •GFOA and MnGFOA Association members •Government operations training •MSRB Municipal Advisor Qualified Representatives (Series 50 and Series 54) •Consulting services for over 100 cities •We’ve assisted many municipalities in preparing for the GFOA’s Certificate of Achievement for Excellence awards in financial reporting You can have confidence in our years of experience performing consulting services, the quality of the accounting services we offer and our understanding of the unique challenges our clients face in the government space. Since 1963, we’ve served cities just like yours. With an unwavering commitment to streamlining processes, training staff, and finding technology-based solutions, we proudly offer excellence in city consulting and auditing. Out of our 180-strong, talented staff, over 40 team members are 100% focused on government clients, which include over 100 cities and other governmental entities. By serving cities across Minnesota, we have become exper ts in the nuances of how to best support your city. Our exper tise affords you a consulting experience that is painless. We do this by communicating up front, coming fully prepared, and being available throughout the year to support you. PROCESS Our methods are centered around incorporating technology to deliver unparalleled solutions for government organizations. In addition to our consulting experience, our firm exper tly performs outsourcing for governments giving us a wealth of experience in a consulting role. We don’t believe in a one-size-fits-all mentality. So together, we’ll focus on the needs that are relevant to your city and provide the right services to meet them with a customized methodology based on your needs. We’re focused on developing creative, customized solutions to help your city mitigate costs and boost efficiency. FOCUS Through continuous training and growth oppor tunities, we’ve established an environment with a focus on serving government entities. We spend more than 100 hours training and onboarding to ensure success for our clients. We truly hope that you partner with us to light the path forward for your organization. Government Experience 5 Government Experience Continued OUR FINANCIAL MANAGEMENT AND CONSULTING SERVICES INCLUDE: •Budget process development •Capital improvement planning •Cash flow analysis •Cost containment processes •Debt management plans •ERP system consulting •Federal and State relations/grant consulting •Finance Director services •Financial management plans •Financial reporting and analysis •Fleet: Operations and replacement rate analysis •Interim accounting and financial services •Internal control evaluation •Long-term strategic planning •Payroll processing •Policy development •Process flows and efficiencies •Project management •Quarterly and monthly reporting to management •Reconciliations •Software implementation •Utility/fee analysis •Year-end audit preparation and financial statement preparation 6 Long-term Planning Approach PROJECT APPROACH The following information outlines the approach we will take for the project. INITIAL ASSESSMENT The first step to this project is to review and analyze data provided by the City. After this review, Abdo FS will meet with the city team to discuss overall anticipated project expectations, outcomes and timelines. LONG-TERM PLAN The objective of our consulting engagement is to prepare a long-term plan in accordance with the Statement on Standards for Consulting Services issued by the American Institute of Certified Public Accountants (AICPA) based on information provided by you. Professional Competence:We will have the necessary knowledge, skills, and expertise to perform the consulting services competently and should only undertake engagements that they can reasonably expect to complete with professional competence. Due Professional Care:We are required to exercise due professional care in the performance of our consulting services. This includes being diligent, thorough, and acting in the best interest of their clients. Planning and Supervision:We will adequately plan and supervise the consulting engagement to ensure that it is conducted efficiently and effectively. This includes setting objectives, assigning responsibilities, and establishing procedures to achieve the engagement's goals. Sufficient Relevant Data:We will obtain sufficient relevant data to provide a reasonable basis for their recommendations and conclusions. We will also evaluate the reliability, accuracy, and relevance of the data they use. Communication:We will communicate their findings, recommendations, and conclusions to the client in a clear, concise, and timely manner. This includes discussing significant limitations, uncertainties, or other factors that may affect the reliability of our advice. Confidentiality:We will maintain the confidentiality of clients' information and not disclose it without the client's consent, except when required by law or professional standards. Professional Objectivity:We will maintain professional objectivity and be free from conflicts of interest that could compromise our ability to provide unbiased advice and recommendations. Professional Development:CPAs should engage in continuous professional development to maintain and improve their professional competence in providing consulting services. 77 SEE AN SAMPLE REPORT 8 CITY EXPECTATIONS The engagement to be performed is conducted on the basis that you acknowledge and understand that our role is to prepare the projection in accordance with guidelines for the presentation of a projection established by the AICPA. You have the following overall responsibilities that are fundamental to our undertaking the engagement to prepare your projection in accordance with SSAR •The selection of accounting principles to be applied in the preparation of the projection. •The design, implementation, and maintenance of internal control relevant to the preparation and presentation of the projection that is free from material misstatement, whether due to fraud or error. •The prevention and detection of fraud. •To ensure that the City complies with the laws and regulations applicable to its activities. •The accuracy and completeness of the records, documents, explanations, and other information, including significant judgments, you provide to us for the engagement to prepare the projection. Devote uninterrupted time to working with us as needed. •Make candid representations about your plans and expectations. •Make all management decisions and perform all management functions. •Provide an individual responsible to review and accept our work. •To provide us with: ◦Documentation and other related information that is relevant to the preparation and presentation of the projection, ◦Additional information that may be requested for the purpose of the preparation of the projection, and ◦Unrestricted access to persons within the City with whom we determine it necessary to communicate. The projection will not be accompanied by a report. However, you agree that the projection will clearly indicate that no assurance is provided on it. UNANTICIPATED SERVICES While the fixed price entitles the City to unlimited consultation with us, if your question or issue requires additional research and analysis beyond the consultation, the work will be subject to an additional price, payment terms, and scope to be agreed upon before the service is performed and a change order will be issued to document this understanding. Furthermore, the parties agree that if an unanticipated need arises (training to different groups, researching a new issue, etc.) we hereby agree to perform this additional work at a mutually agreed upon price. This service will be priced separately to the City, using a change order. Long-term Planning Approach Continued 9 PRICE GUARANTEE If you ever receive an invoice without first authorizing the service, payment terms, and price, you are not obligated to pay for that service. FINANCIAL INVESTMENT Long-term Plan $12,000 Total $12,000 Payment Schedule: Contract Execution $6,000 Project Completion $6,000 Travel time for attendance at a Council Meeting will be invoiced at one-half our hourly bill rates, plus mileage at current IRS rates. If the City requires a revision to initial assumptions (i.e. a revision to the capital improvement plan, or other major assumptions) a second iteration of the report can be provided at a cost of $5,000. In an effort to reduce environmental impact, you will receive printable, downloadable PDFs of your report. To receive one (1) paper report, you will be charged $150 for a set-up fee. Additional paper copies will be charged at the rate of $50 per report. This quote is valid for thir ty (30) days. Abdo FS will begin preparing the long-term plan for the City within eight weeks of execution of the agreement. Completion of the long-term plan is expected to be within sixty (60) days from inception of the project however; this is dependent on the time frame in which the City provides information to Abdo FS for the long-term plan development. The stated fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. You agree to hold us harmless and to release, indemnify, and defend us from any liability or costs, including attorney's fees, resulting from management's knowing misrepresentations to us. QUALITY ASSURANCE Quality is critical the success and integrity of this project. Our internal processes ensure that all work is reviewed and approved prior to moving to the next phase of a project. Our processes require that work is reviewed by a staff member at a higher level than the person that completed it and ultimately the work is signed off on by the Abdo FS President. CONCLUSION Throughout this process we will be in constant communication with the city team to ensure their needs are being met. By utilizing our operational experience as well as our knowledge of governmental accounting, our 50 plus years of experience providing services to Minnesota municipalities and our knowledge of regulations in the State of Minnesota we will provide the City information and recommendations for financial processes. We are excited about this opportunity and the benefits the City will recognize as this long-term plan is finalized. Long-term Planning Approach Continued We believe technology should enhance our service offerings, making our work less intrusive, our time with you more productive and everyone’s data more secure. The use of technology in our financial accounting and consulting services enables us to streamline our processes and helps to automate cer tain functions of our work so we are able to spend more time analyzing our results and working directly with you. Through the outbreak of COVID-19, our team has been able to seamlessly move to a completely remote work environment with no loss of productivity, cooperation, or communication. Since March 17, 2020, our staff has been successfully conducting remote financial accounting and consulting services using the latest video conferencing and secure file sharing technology. Through Zoom, Microsoft Teams, or whatever technology your city may use, our team will continue to work through normal procedures, including regular meetings with you during the engagement to ensure effective collaboration with your team. We take the security of our client's data - and our own - very seriously. A number of systems are in place to ensure the safety of your city’s data. We operate on a remote distributed infrastructure leveraging Microsoft’s Cloud Platform Azure. This not only allows our staff to securely work from any computer, anywhere, any time, but also provides large- scale, cutting-edge technology and security for your data. Your data is housed in secure data centers that reside exclusively in the U.S. and not on laptops or local servers which could be stolen or misplaced. We continually provide security awareness training to our staff members to ensure they are good digital stewards of your data. In addition to this, we also consult bi annually with 3rd party security exper ts to conduct risk assessments and conduct annual penetration tests. IT ALSO MEANS: All firm staff use dual authentication to ensure that every login to our remote environment is secure and authorized. 10 Technology All data is saved on redundant servers and data centers so if one server fails, another immediately takes over with no data lost. All data is backed up continually which means we always have an extra copy for safe-keeping. All incoming emails, attachments, and embedded links are scanned for viruses prior to landing in our inbox, which allows us to operate with more protection from phishing emails, malware attacks, and other digital threats. Our cloud platform, Azure, is globally trusted by companies and governments and has numerous security compliance standard they adhere to. Reports of these can be provided as requested. CLIENT REFERENCES One of the things we enjoy most about our work is developing long-term relationships with our clients and watching their city thrive as we help them to evolve and grow. Our clients listed below serve as a sample of references of those we partner with for their financial management services. Additional references are available upon request. What Our Clients Say CITY OF BLOOMING PRAIRIE Andrew Langholz City Administrator P 507.583.7573 Services Provided: Long-term Plan Utility Rate Study Debt Management Study CITY OF ALBERTVILLE Tina Lannes Finance Director P 763.497.3384 Services Provided: Long-term Plan CITY OF CRYSTAL Kim Therres Assistant City Manager P 763.531.1132 Services Provided: Long-term Plan Outsourced Finance Director Process Evaluation (ProEval) Utility Rate Study 11 Value-Added Services When you partner with Abdo, you get access to our entire catalog of services. Below is a selection of the additional solutions that we believe could be of great value to your city. If you have need of these services, please reach out to us so we can help! Our additional service offerings can be found at www.abdosolutions.com. HR & PAYROLL SERVICES We help employers better support their most valuable resource...their people.Having clear and consistent HR practices that best suit the individuality of your city is key, even more so in today’s tight employment environment. And because the right policies are just as important, we lend our HR expertise to help you strategically plan for your future. We help cities with: •Employee management and development •Regulatory compliance •Benefits analysis and administration, including the Affordable Care Act (ACA) and workers’ compensation •HR/Payroll software implementation and management •Advisory services such as specialized labor cost analysis, compensation studies, and HR process development and implementation FRAUD & FORENSIC SERVICES Fraud can happen when you least expect it.Even a single instance of it can devastate your city’s accounting, not to mention its reputation. With Cer tified Fraud Examiners (CFEs) and forensic accounting experts on staff, we provide a broad slate of solutions to meet your unique needs - as well as those of your counsel and stakeholders. From conducting forensic data analyses of books and records to providing expert witness testimony, our seasoned professionals act swiftly and confidentially to help you maintain business as usual.If you notice signs of fraudulent activity or unethical conduct involving management, employees, or a third party, it’s critical to gather evidence before you plan your next step - we can help. 1212 13 TECHNOLOGY & DATA SOLUTIONS Empowering you with advanced data analytics & insights.Data is one of your city’s most powerful assets. Using it to your advantage, however, can be a challenge. Our technology and data solutions are designed to give you the information you need - how, when, and where you need it. Our consultants leverage a powerful mix of technology and tools to support you with the data analytics and insights you need. From creating user-friendly dashboards and reports to managing software implementations, we deliver solutions that work for you. We can help your city with: •Strategic data analytics •Software solutions: evaluation, selection & implementation •Financial reporting solutions •Automation solutions ENTERPRISE RESOURCE PLANNING (ERP) ANALYSIS & IMPLEMENTATION When choosing an ERP system, the options are seemingly endless. How do you know which ERP system is best for your city? Abdo Financial Solutions can help.We can partner with you to design and implement an ERP system that fits your needs by: •Assisting with the RFP Process - We’ll define the technical specifications to include in your RFP and provide suppor t through the ERP vendor selection process. •Facilitating a Seamless Implementation - If needed, we can manage the organization-wide implementation of your ERP system in accordance with your budget and schedule. •Communicating Change - We’ll communicate with staff members to explain the “why” behind ERP and demonstrate how it will make their lives easier. To help staff members navigate new processes, we’ll provide training as needed. AUDIT & ASSURANCE We specialize in simplifying the complex.Our audit professionals go beyond the required audit to make sure you have a clear understanding of your city’s financial information. We have a specialized team of auditors that can perform your city’s financial statement audit along with the following specialized audits: •Employee Benefit Audits (401k, 403b, etc.) •Single Audits •Lawful Gambling Audits •Extended Employment Audits •Review & Compilation Services 13 14 15 Why Partner with Abdo “Listening to our clients’ needs, understanding their challenges, and adjusting how we work together is key to our partnership with the people we serve.” --Steve McDonald, CPA |Managing Partner LIGHTING THE PATH FORWARD In a world of ever-changing complexity, people need caring, empathetic and highly skilled professionals they can depend on to provide the right advice and solutions for them. Our clients seek growth and success, but also want security and confidence. For nearly 60 years, Abdo has provided insights for our clients to help them achieve their goals. That same innovative spirit is also what has earned us the title of being one of the top accounting firms in the Midwest. Abdo is a better firm today because of the efforts we made to support a culture driven by our core values of growth, relationships, and teamwork. With this foundation in place, we have successfully helped our clients identify and break through their own growth barriers. Every challenge they face is an opportunity for us to listen, understand and empower them with solutions and a plan to achieve their goals. It’s fulfilling to serve as the catalyst that helps them overcome obstacles that block their progress. When it comes to our working relationships, we are partners. We’re confidants. We’re the catalyst that sparks true business growth, providing guidance through every challenge and opportunity along the way. ABOUT ABDO Abdo is a full-service accounting and consulting firm that delivers customized strategies and innovative solutions to help businesses, governments and nonprofits succeed. With more than 180 professionals and nearly six decades of experience, Abdo is ranked as one of the top accounting firms in the Midwest. It is a licensed CPA firm with offices located in Minneapolis and Mankato, Minnesota, and Scottsdale, AZ. Abdo’s commitment to its clients is to gain in- depth knowledge of their unique challenges, opportunities, and needs. Through this consultative approach, Abdo partners with organization leaders to light the path forward to confidently reach their goals. 16 Appendix A AGREEMENT FOR FINANCIAL SERVICES 17 Agreement for Financial Services THIS AGREEMENT, is made and entered into on Not yet submitted by and between the City of Spring Park, Minnesota (hereinafter referred to as the “Client”), and Abdo Financial Solutions (hereinafter referred to as the “Contractor”). Articles of Agreement & Recitals WHEREAS, the Client is authorized and empowered to secure from time to time certain professional services through contracts with qualified consultants; and WHEREAS, the Contractor understands and agrees that: 1.The Contractor will act as an Independent Contractor in the performance of all duties under this Agreement. Accordingly, the Contractor shall be responsible for payment of all taxes, including federal, state and local taxes and professional/business license fees arising out of the Contractor’s activities; 2.The Contractor shall have no authority to bind the Client for the performance of any services or to obligate the Client. The Contractor is not an agent, servant, or employee of the Client and shall not make any such representations or hold himself/herself out as such; 3.The Contractor shall be the exclusive outsourced accounting service provider for the Client during the term of this Agreement; 4.The Contractor shall perform all professional services in a competent and professional manner, acting in the best interests of the Client at all times. 5.The Contractor shall not accrue any continuing contract rights for the services performed under this Agreement. NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, it is agreed as follows: ARTICLE I INCORPORATION OF RECITALS The recitals and agreement set forth above are hereby incorporated into this Agreement. ARTICLE II LIABILITY INSURANCE Section 1 Liability Insurance:The Contractor shall obtain professional liability insurance, at their expense with liability insurance coverage minimums in the amount of $2,000,000, which Contractor must secure and maintain during the term of this Agreement. Contractor will provide Client with proof of liability insurance coverage under this Agreement in writing upon request by the Client. 18 ARTICLE III DURATION OF THE AGREEMENT Section 1 Duration:This Agreement shall commence upon date of execution by all parties and will remain in effect until August 30, 2023 unless earlier terminated as provided in Sections 2 and 3. Section 2 Client's Termination Rights:The Client may terminate this Agreement upon sixty (60) days written notice in the event the Client determines in its sole discretion that it is not in the Client's best interest to continue using Contractor’s services. The Client may terminate on ten (10) days written notice if the Contractor fails to perform its obligations under this Agreement. Section 3 Contractor’s Termination Rights:Contractor may terminate this Agreement upon thir ty (30) days written notice to Client in the event Client does not pay Contractor compensation as required under Article 5, Section 9 within fifteen (15) days after invoice is received by Client. In the event of non-payment within thirty (30) days, Contractor shall give the Client an oppor tunity to cure the default by giving a notice of such non-payment and an additional five (5) days after the Client's receipt of the notice to remit such payment, prior to giving a notice of termination. Contractor can also terminate the Agreement with sixty (60) days written notice if the Contractor believes it is in its best interests to terminate the Agreement. ARTICLE IV GENERAL Section 1 Authorized Client Agent:The Client's authorized agent for the purpose of administration of this Agreement is the City Administrator. Said agent shall have final authority for approval and acceptance of the Contractor’s services performed under this Agreement and shall further have responsibility for administration of the terms and conditions of this Agreement. All notices under this Agreement shall be sent to the person and address indicated below on the signature lines. Section 2 Amendments: No amendments or variations of the terms and conditions of this Agreement shall be valid unless in writing and signed by the parties. Section 3 Assignability: The Contractor’s rights and obligations under this Agreement are not assignable or transferable. Section 4 Data:Any data or materials, including, but not limited to, reports, studies, photographs, negatives, or any and all other documents prepared by the Contractor or its outside consultants in the performance of the Contractor's obligations under this Agreement shall be the exclusive property of the Client, and any such data and materials shall be remitted to the Client by the Contractor upon completion, expiration, or termination of this Agreement. Further, any such data and materials shall be treated and maintained by the Contractor and its outside consultants in accordance with applicable federal, state and local laws. Further, Contractor will have access to data collected or maintained by the Client to the extent necessary to perform Contractor's obligations under this Agreement. Contractor agrees to maintain all data obtained from the Client in the same manner as the Client is required under the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13 or other applicable law (hereinafter referred to as the "Act"). Contractor will not release or disclose the contents of data classified as not public to any person except at the written direction of the Client. Upon receipt of a request to obtain and/or review data as defined in the Act, Contractor will immediately notify the Client. The Client shall provide written direction to Contractor regarding the request within a reasonable time, not to exceed fifteen (15) days. The Client agrees to indemnify, hold harmless and defend Contractor for any liability, expense, cost, damages, claim, and action, including attorneys' fees, arising out of or related to Contractor's complying with the Client's direction. Subject to the aforementioned, Contractor agrees to defend and indemnify the Client from any claim, liability, damage or loss asserted against the Client as a result of Contractor's failure to comply with the requirements of the Act. Upon termination and/or completion of this Agreement, Contractor agrees to return all data to the Client, as requested by the Client. 19 Agreement for Financial Services Continued 20 ARTICLE IV - CONTINUED GENERAL (CONTINUED) Section 5 Entire Agreement:This Agreement is the entire agreement between the Client and the Contractor, and it supersedes all prior written or oral agreements. There are no other covenants, promises, under takings, or understandings outside of this Agreement other than those specifically set forth. Any term, condition, prior course of dealing, course of performance, usage of trade, understanding, or agreement purpor ting to modify, vary, supplement, or explain any provision of this Agreement is null and void and of no effect unless in writing and signed by representatives of both par ties authorized to amend this Agreement. Section 6 Severability:All terms and covenants contained in this Agreement are severable. In the event any provision of this Agreement shall be held invalid by any court of competent jurisdiction, this Agreement shall be interpreted as if such invalid terms or covenants were not contained herein, and such holding shall not invalidate or render unenforceable any other provision hereof. Section 7 Contractor Fiscal Decision Waiver: Contractor is responsible for providing the Client with timely and accurate financial recommendations and information that allows the Council the ability to make final financial decisions. Contractor will provide final financial recommendations but is not responsible for the final decisions made regarding financial matters. Section 8 Client Employment of Contractor’s Employees: The Client acknowledges and agrees that Contractor’s workforce, including employees assigned to staff the engagement provided for under this Agreement, constitutes an important and vital aspect of Contractor’s business. In recognition of the foregoing and the harm that Contractor will suffer in the event of the loss of one or more of its employees, the Client agrees that during the Term of this Agreement and for a period of six (6) months following the termination of this Agreement for any reason (the “Restrictive Time Period”) the Client shall not, directly or indirectly, on behalf of itself or any person, firm, corporation, association or other entity, (a) recruit, solicit, or assist anyone else in the recruitment or solicitation of, any of Contractor’s employees to terminate their employment with Contractor and to become employed by or otherwise engaged with or by the Client in any capacity independent of Contractor; (b) hire or engage any Contractor employee; or (c) otherwise encourage or induce any of Contractor’s employees to terminate their employment with Contractor. Notwithstanding the foregoing, Contractor may (but shall not be obligated to) consent to the Client's recruitment, solicitation, employment or other engagement of a Contractor employee otherwise prohibited by this paragraph provided that (a) the Client discloses to Contractor in writing its desire to recruit, solicit, employ or otherwise engage the Contractor employee independent of Contractor before engaging with the Contractor employee regarding any such potential relationship; (b) the Client agrees to pay Contractor a Restrictive Covenant Exception Fee (as hereafter defined) in the event the Contractor employee becomes employed by or otherwise engaged with the Client independent of Contractor; and (c) Contractor provides written consent to the Client to engage with the Contractor employee regarding any such relationship. For purposes of this Agreement, the Restrictive Covenant Exception Fee shall be the greater of: (i) 150% of the annual contracted cost of Contractor’s services under this Agreement in addition to the annual contracted cost paid or due Contractor hereunder; or (ii) 150% of the fees paid or due Contractor for services provided under this Agreement during the twelve (12) month period immediately prior to the termination of this Agreement or, in the event the Agreement has not been terminated, during the twelve (12) month period immediately prior to Contractor’s provision of written consent to the Client to engage in the recruitment, solicitation, employment or other engagement of a Contractor employee otherwise prohibited by this paragraph. Agreement for Financial Services Continued 21 ARTICLE IV - CONTINUED GENERAL - CONTINUED Section 9 Compensation:The par ties agree that the Contractor shall be paid compensation for the services provided hereunder, payable for work performed in accordance with this Agreement, based on the fees indicated on the Value page of this proposal. Additional fees will not be incurred without prior approval of the Client. Initial invoice for anticipated first month fees will be sent within 10 days of the execution of this agreement. Monthly installment fees will be invoiced throughout the remainder of this Agreement. If the Agreement is for an hourly fee basis, invoices will be sent monthly. Section 10 Additional Services:Should the Client request additional services in addition to the Contracted Services, the Contractor will provide the Client with proposed fees for the services to be provided. The Client shall provide a written or electronic confirmation prior to the proposed services implementation. Section 11 Outside Contractors:It shall be the responsibility of Contractor to compensate any other outside consultants retained or hired by Contractor to fulfill their obligations under this Agreement and shall be responsible for their work and Contractor, by using outside contractors, shall not be relieved of its obligations under this Agreement. Section 12 Municipal Advisor:Abdo FS acknowledges the Client has retained an independent registered municipal advisor (IRMA) to assist and advise the Client in evaluating information relating to the issuance of municipal securities and/or municipal financial products. Abdo FS acknowledges the Client will rely on advice from their IRMA.Abdo FS will have no recourse against the Client or its IRMA, regarding action or inaction relating to evaluating, commenting on, or responding to financial projects or information received under this Agreement. Abdo FS acknowledges it is not the registered independent municipal advisor retained by the Municipal Entity Client. Agreement for Financial Services Continued Appendix B AGREEMENT FOR THE PROVISION OF PROFESSIONAL SERVICES 22 Agreement for the Provision of Professional Services WHEREFORE, this Agreement was entered into on the date set forth below and the undersigned, by execution hereof, represent that they are authorized to enter into this Agreement on behalf of the respective parties and state that this Agreement has been read by them and that the undersigned understand and fully agree to each, all and every provision hereof, and hereby, acknowledge receipt of a copy hereof. City of Spring Park 4349 Warren Ave Spring Park,Minnesota 55384 SIGNATURE Mike Anderson Abdo Financial Solutions, LLC 5201 Eden Avenue, Suite 250 Edina, Minnesota 55436 Andrew Berg, CPA Partner |Abdo Not yet submitted 23