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2025-10-14 City Council Agenda Richfield City Council Agenda October 14, 2025 -- 7:00 PM Richfield Municipal Center Council Chambers 6700 Portland Avenue South 1. Call to Order 2. Pledge of Allegiance 3. Approval of the Agenda 4. Approval of Minutes a. Approval of the Minutes of the (1) City Council Work Session from September 23, 2025, and (2) City Council Regular Meeting from September 23, 2025. 5. Open Forum Participants can share their comments in person, by voicemail, or email, and may also request to participate virtually. For more information on submitting comments, refer to the Council Agenda and Minutes page on richfieldmn.gov/citycouncil 6. Proclamations and Presentations a. Proclamation celebrating Indigenous Peoples' Day b. Community Services Commission Annual Report c. Sustainability Commission Annual Report d. Receipt of the City of Richfield Annual Comprehensive Financial Report (ACFR) for the fiscal year ended December 31, 2024. 7. Consent Calendar Consent Calendar contains several separate items, which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further Council action on these items is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. a. Approve Disbursements/Claims b. Consider approval for a Temporary On-Sale Intoxicating Liquor license for the Blessed Trinity Catholic School, located at St. Richard's Catholic Church, 7540 Penn Avenue South, for their Annual Gala taking place December 6, 2025. c. First reading of a transitory ordinance providing funding for certain capital improvements from the Liquor Contribution Special Revenue Fund. d. Consider adoption of a resolution of support designating that the photograph “Winter Interest” by Samantha Chin be used to wrap the Hennepin County utility box located at Penn Avenue & 66th Street. e. Consider approval of an agreement with John A. Dalsin & Son, Inc, in the amount of $607,984, for the replacement of the roof on rink two of the Richfield Ice Arena. f. Consider first reading of an ordinance imposing a tax on lodging and repealing and replacing in its entirety Chapter 14 of the Richfield Code of Ordinances. g. Adopt Resolution authorizing acceptance of Office of Traffic Safety (OTS) Funds. The agreement extension was previously approved at the September 9 meeting, but the resolution was omitted from the staff report. h. Consider approval to renew the contract with Chief's Towing, Inc., for Public Safety towing services for December 1, 2025 through November 30, 2027. i. Consider the Joint Powers Agreement to enable Richfield to provide an alternative response for selective 911 calls in a manner that most effectively and efficiently supports and protects the physical, mental and behavioral health of individuals in the Cities of Richfield and Edina. j. Site Plan Approval for 7424 Lyndale Ave S – Conversion to Retail 8. Consideration of Items, if Any Removed From Consent Calendar 9. Public Hearings Page 1 of 579 a. Public hearing and consider a resolution adopting the proposed certification of delinquent solid waste charges to property taxes within the residential organized collection sytem from July 1, 2024 to June 30, 2025. b. Public hearing and consider a resolution adopting the assessment on the ILN/77th Street Project Area for $130,596.78 for costs incurred to maintain the area for 2024 and a resolution ordering the undertaking of the current service project within the ILN/77th Street Project Area for 2026. c. Public hearing and consider a resolution adopting special assessments for removal of diseased trees from private property for work ordered from January 1, 2024, through December 31, 2024. d. Public hearing and consider a resolution adopting special assessments for sanitary sewer line repair or replacement on private property for work ordered from January 1, 2024, through August 1, 2025. e. Public hearing and consider a resolution adopting the proposed assessments of delinquent utility accounts, false alarm charges, public health or safety hazards charges, weed eradication charges, and vacant property registration fees to be certified to property taxes. 10. Proposed Ordinances 11. Resolutions 12. Other Business a. Consider appointment of youth commissioners to City advisory board/commissions. b. Consider approval of an agreement between the City of Richfield and the Science Museum of Minnesota in the amount of $354,658, for professional services in the fabrication and installation of interpretive exhibits for the new Wood Lake Nature Center Building, as well as an agreement with Blue Rhino in the amount of $354,500 for the same services and with the same terms and conditions. The project was jointly bid for a total of $709,158. 13. City Manager’s Report 14. Council Discussion a. Hats off to Hometown Hits b. Council Liaison Reports 15. Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. Includes Materials - Materials relating to these agenda items can be found in the Council Chambers Agenda Packet book located by the entrance. The complete Council Agenda Packet is available electronically on the City of Richfield website. Page 2 of 579 CITY COUNCIL MEETING MINUTES Richfield, Minnesota City Council Work Session September 23, 2025 ITEM #1 CALL TO ORDER Mayor Supple called the work session to order at 5:45 p.m. in the Bartholomew Room. Council Present: Mary Supple, Mayor; Sharon Christensen; Walter Burk, Sean Hayford Oleary, Rori A. Coleman-Woods Staff Present: Others Present: Katie Rodriguez, City Manager; Matt Hardegger, Transportation Engineer; Joe Powers, City Engineer; Kristin Asher, Public Works Director, and Michelle Friedrich, City Clerk. Jay Henthorne, Director of Public Safety/Chief of Police arrived at 6:15 pm Tim Brackett ITEM #2 ITEM DISCUSSION a. Presentation on updated Safe Routes to School Plan for Richfield Public Schools. City Manager Rodriguez welcomed Tim Brackett and shared that he has been working on this presentation. Public Works Director Asher provided a summary of the first item. Transportation Engineer Hardegger provided a summary of the Safe Routes to School program. He shared the history of the comprehensive and supplemental plans for Safe Routes to School and provided details regarding grants that have been received. Tim Brackett shared some of the school district successes they have seen for Safe Routes to School. Transportation Engineer Hardegger provided details on the plan update process. He reviewed the feedback received from different engagement activities and noted the items needing City action. Transportation Engineer Hardegger reviewed a total of 44 opportunities that were identified, and noted 5 were in progress, and 7 were programmed by other agencies. He provided details on the remaining 32 items that will need City action and proposed implementation of remaining items. Mr. Brackett shared some school district projects and referenced short and medium-term projects. Transportation Engineer Hardegger summarized the next steps for these projects. Mr. Brackett provided further details on the street closure at school arrival and dismissal times. Council shared appreciation for the work they have done in providing safer ways for students to get to school. Page 3 of 579 City Council Work Session Minutes -2- __________September 23, 2025 b. Hennepin County Cost Share Discussion. Public Works Director Asher presented the item. Public Works Director Asher reviewed the cost share, cost participation, and cost maintenance policies. Public Works Director Asher reviewed the upcoming maintenance costs for the City and presented a graph displaying the City’s past 20 years of MSA expenditures. She discussed project examples and included a financial breakdown of what the City would be responsible for. Public Works Director Asher reviewed the City’s bonding history over the past 10 years and provided details on the estimated cost share for the Nicollet Avenue reconstruction. City Manager Rodriguez stated that the Utility Fund has been paying for local projects. She noted staff have been reviewing the source of funding for this project. Public Works Director Asher stated that the City's utility costs for the project are expected to be lower than initially estimated and presented the proposed cost share. In response to Council's question about collaborating with other cities to renegotiate with the County, she noted that 19 cities have already sent letters to Hennepin County. City Manager Rodriguez added that while other cities are affected, Richfield is particularly impacted due to the high number of State and County roads in and around the City. c. Discussion on legislative advocacy supporting stronger protections against gun violence. City Manager Rodriguez provided a summary of the item. She stated that the City and State have seen an increase in gun violence this year. She noted that she, along with Chief Henthorne and Mayor Supple, put together a statement regarding the issue. City Manager Rodriguez asked the Council for any feedback on the statement. Council shared its support for the statement. Mayor Supple summarized the current climate regarding cities and gun safety laws and noted the authority of the State regarding gun safety law decisions. Council and staff discussed options available to cities regarding gun safety laws, actions that can be taken, and applicable enforcement of gun laws. Council shared feedback regarding the topic. City Manager Rodriguez summarized the discussion on protections against gun violence. ITEM #3 ADJOURNMENT Mayor Supple adjourned the work session at 6:50 p.m. Date Approved: October 14, 2025 Mary B. Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager Page 4 of 579 ITEM #1 CALL TO ORDER The meeting was called to order by Mayor Supple at 7:00 p.m. in the Council Chambers. Council Present: Mary Supple, Mayor; Sharon Christensen; Walter Burk; Sean Hayford Oleary; and Rori A. Coleman-Woods. Staff Present: Katie Rodriguez, City Manager; Mary Tietjen, City Attorney; Melissa Pohlman, Community Development Director, Kristin Asher, Public Works Director; Karl Huemiller, Recreation Services Director; Jennifer Anderson, Support Services Manager; and Michelle Friedrich, City Clerk. Others Present: ITEM #2 PLEDGE OF ALLEGIANCE Mayor Supple led the Pledge of Allegiance. ITEM #3 APPROVAL OF AGENDA MOTION: made by Council Member Burk, seconded by Council Member Coleman-Woods to approve Agenda as presented with the removal of item 7. F from the consent calendar. Motion carried: 5-0 ITEM #4 APPROVAL OF MINUTES MOTION: made by Council Member Hayford Oleary, seconded by Council Member Christensen to approve the minutes of the: (1) City Council Work Session from September 9, 2025, and (2) City Council Regular Meeting from September 9, 2025. Motion carried: 5-0 ITEM #5 OPEN FORUM CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Council Meeting September 23, 2025 Page 5 of 579 City Council Meeting Minutes -2- September 23, 2025 Mayor Supple reviewed the participation options for residents at the Council meeting, including in- person comments, comments by voicemail or email, and an option to request to participate virtually with advance notice. Mayor Supple noted that more information on submitting comments can be reviewed at www.richfieldmn.gov/citycouncil. Kathleen Balaban stated that she would like for Staff to ensure that all commission and board pages have web pages with equal and ample detail. She also noted that various commissions are not documented, and there is no place for her to view the discussion. She also mentioned that she has not yet seen the City audit and is asking for it to be made public. Rod Sather stated that he would like to discuss short-term rentals. He noted that it seems that the more they discuss short-term rentals, the more complicated it becomes. He stated that making a minimum of five days is unreasonable and unenforceable. He asked who would be monitoring these short-term rentals in the City. Phil Lowry discussed the issues with cars speeding on Lyndale. He noted that Council, the fire Chief, and Clerk Friedrich have been very helpful with this issue. He stated that they have not received a written reply from Chief Henthorne. He stated that they have made no improvements to this situation. He added that they will no longer seek help from the police force and will handle it on their own. ITEM #6 PROCLAMATIONS AND PRESENTATIONS None. ITEM #7 CONSENT CALENDAR City Manager Rodriguez presented the consent calendar. Mayor Supple requested to remove item 7f from the consent Calendar. a. Approve Disbursements/Claims U.S. BANK 09/12/2025 A/P Checks: (No disbursement this period) $0.00 Payroll (09-12-2025) $1,037,513.88 TOTAL $1,037,513.88 b. Appoint 2025 Election Judges for ISD 280 School Board Election. RESOLUTION NO. 12339 RESOLUTION APPOINTING ELECTION JUDGES AND AN ABSENTEE BALLOT BOARD FOR THE GENERAL ELECTION BEING HELD ON NOVEMBER 4, 2025 Page 6 of 579 City Council Meeting Minutes -3- September 23, 2025 c. Consider approval of the 2025-2026 Emergency Preparedness agreement with the City of Bloomington. d. Consider approval of a lease agreement between the City of Richfield and Spohn's Automotive, Inc., for the private use of a portion of a City-owned parking lot located north of Diagonal Boulevard and east of Cedar Avenue South. e. Consider approval of a resolution authorizing staff to submit an application for a Hennepin County Play Area Grant in the amount of $300,000 for the purchase of new features at the Richfield Outdoor Pool, and authorizing staff to enter into a grant agreement, if awarded. RESOLUTION NO. 12340 RESOLUTION AUTHORIZING CITY STAFF TO FILE AN APPLICATION AND EXECUTE AGREEMENTS WITH THE HENNEPIN YOUTH ACTIVITIES GRANT PROGRAM TO RECEIVE A HENNEPIN PLAY AREA GRANT FOR THE PURCHASE OF NEW FEATURES AT THE RICHFIELD OUTDOOR POOL. f. Item 7f, moved to Item 8a : Consider the approval of Prime Contract Change Order #003 for the Wood Lake Nature Center building project in the amount of $662,545.37 to address delays resulting from federal grant compliance and other changes impacting the Guaranteed Maximum Price. g. Consider the approval authorizing acceptance of Office of Traffic Safety (OTS) funds for an extension on an original four-year grant to fully fund an officer dedicated to DWI enforcement in Richfield. h. Consider approval of a resolution authorizing staff to submit an application for a Hennepin County Lifeguard Services Grant in the amount of $50,000 to assist with the hiring and retention of lifeguard staff at the Richfield Outdoor Pool, and authorizing staff to enter into a grant agreement, if awarded. RESOLUTION NO. 12341 RESOLUTION AUTHORIZING CITY STAFF TO FILE AN APPLICATION AND EXECUTE AGREEMENTS WITH THE HENNEPIN YOUTH ACTIVITIES GRANT PROGRAM TO RECEIVE A HENNEPIN LIFEGUARD SERVICES GRANT IN THE AMOUNT OF $50,000 TO FUND THE HIRING OF LIFEGUARDS AT THE RICHFIELD OUTDOOR POOL. i. Consider authorizing the purchase of Self-Contained Breathing Apparatus (SCBA) units and related equipment for $315,235, with billing scheduled in budget year 2026, from Maqueen Emergency Group, and authorize the City Manager to approve contract changes up to $175,000 without further City Council consideration. MOTION: made by Council Member Hayford Oleary, seconded by Council Member Burk to approve the consent calendar items 7a-e, and 7g-i; and move item 7f to Consideration of Items Removed From Consent Calendar as item 8a. Motion carried: 5-0 ITEM #8 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR a. Moved from Item 7f. Consider the approval of Prime Contract Change Order #003 for the Wood Lake Nature Center building project in the amount of $662,545.37 to address delays Page 7 of 579 City Council Meeting Minutes -4- September 23, 2025 resulting from federal grant compliance and other changes impacting the Guaranteed Maximum Price. Council Member Burk presented the Staff Report. Recreation Director Huemiller provided further details on the delays. He stated the Environmental Protection Act review began in April of 2024. Recreation Director Huemiller outlined the federal grant delays with the project and noted difficulties accessing the system, and subsequent delays triggered such as the building age, and the requirement for architectural and archaeological reviews. Recreation Director Huemiller explained each review required a 30-day waiting period. Council and staff discussed work timelines and anticipated completion dates to include working through the fall and winter months. Council thanked Recreation Director Huemiller for the further discussion and explanation of the change order. MOTION: made by Council Member Burk, seconded by Council Member Hayford Oleary to approve the Prime Contract Change Order #003 for the Wood Lake Nature Center building project in the amount of $662,545.37 to address delays resulting from federal grant compliance and other changes impacting the Guaranteed Maximum Price. Motion carried: 5-0 ITEM #9 PUBLIC HEARINGS a. Consider the second reading and hold a public hearing for an ordinance amendment to the Richfield City Code Appendix D (Fee Schedule) related to building, planning, and zoning fees and hold a public hearing and second reading. Council Member Hayford Oleary presented the Staff Report and opened the public hearing. MOTION: made by Council Member Hayford Oleary, seconded by Council Member Coleman- Woods to close the public hearing. Motion carried: 5-0 MOTION: made by Council Member Hayford Oleary, seconded by Council Member Coleman- Woods to approve an ordinance amendment to the Richfield City Code Appendix D (Fee Schedule) related to building, planning, and zoning fees. ORDINANCE NO. 2025-15 AN ORDINANCE AMENDING APPENDIX D TO THE RICHFIELD CITY CODE; ESTABLISHING A FEE SCHEDULE FOR CERTAIN PERMITS AND APPLICATIONS Motion carried: 5-0 MOTION: made by Council Member Hayford Oleary, seconded by Council Member Coleman- Woods to authorize a summary publication of said ordinance. RESOLUTION NO. 12342 SUMMARY PUBLICATION ORDINANCE 2025-15 AMENDING APPENDIX D TO THE RICHFIELD CITY CODE; ESTABLISHING A FEE SCHEDULE FOR CERTAIN PERMITS AND APPLICATIONS Motion carried: 5-0 Page 8 of 579 City Council Meeting Minutes -5- September 23, 2025 ITEM #10 PROPOSED ORDINANCES a. Approve the second reading of an ordinance regulating the use and licensing of short-term rentals and related fees in Appendix D, and a resolution authorizing summary publication of the ordinance. Council Member Christensen presented Staff Report. Support Services Manager Anderson stated that short-term license fees would be non-refundable, as is standard in City ordinances. Council Member Hayford Oleary asked if there are any limits on long-term rentals. Support Services Manager Anderson stated that they do not. Council Member Burk stated support of adding non-refundable fees. Mayor Supple inquired how the City determined there are approximately 80 active short-term rentals. Support Services Manager Anderson explained that the number was based on self- reporting by property owners. Mayor Supple then asked if the total cap of 100 rentals was set in anticipation of underreporting. Support Services Manager Anderson confirmed that was the case. Mayor Supple asked for clarification that they could revisit this in the future. Support Services Manager Anderson stated the Short-Term Rental Ordinance could be revisited or amended in the future. MOTION: made by Council Member Burk, seconded by Council Member Christensen to amend the second reading of the ordinance to make the license fee non-refundable. Motion carried: 5-0 MOTION: made by Council Member Christensen, seconded by Council Member Coleman-Woods to approve the second reading of an ordinance regulating the use and licensing of short-term rentals and related fees in Appendix D as amended. BILL NO. 2025-16 AN ORDINANCE AMENDING CHAPTER XI OF THE RICHFIELD CODE OF ORDINANCES BY ADDING A NEW SECTION 1199 REGULATING THE USE AND LICENSING OF SHORT-TERM RENTALS Motion carried: 5-0 MOTION: made by Council Member Christensen, seconded by Council Member Hayford Oleary to approve a resolution authorizing summary publication of the ordinance. RESOLUTION NO. 12349 RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDING CHAPTER XI OF THE CITY CODE BY ADDING A NEW SECTION 1199 REGULATING THE USE AND LICENSING OF SHORT-TERM RENTALS Motion carried: 5-0 Page 9 of 579 City Council Meeting Minutes -6- September 23, 2025 ITEM #11 RESOLUTIONS a. Adopt the attached resolutions establishing the 2026 preliminary budget and property tax levy, setting the date for the Truth in Taxation hearing, authorizing budget revisions, authorizing revision of 2025 department budgets, and approving City fees for 2026. Council Member Burk presented Staff Report. City Manager Rodriguez stated that she surveyed 11 similar cities, and the levy increase averaged 8.40%, ranging from a high of 14.92% to a low of 4.98%. This compares to the 6.08% increase that staff are recommending tonight. Council thanked staff for their work on the budget this year. City Manager Rodriguez provided the timeline for the audit. She stated that they are late submitting the audit, but they have received an extension from the State. She noted that the auditors will be presenting to Council on October 14, 2025. MOTION: made by Council Member Burk, seconded by Council Member Hayford Oleary to adopt the attached resolutions establishing the 2026 preliminary budget and property tax levy, setting the date for the Truth in Taxation hearing, authorizing budget revisions, authorizing revision of 2025 department budgets, and approving City fees for 2026. RESOLUTION NO. 12343 RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY FOR THE YEAR 2026 RESOLUTION NO. 12344 RESOLUTION AUTHORIZING BUDGET REVISIONS RESOLUTION NO. 12345 RESOLUTION AUTHORIZING REVISION OF 2025 BUDGET OF VARIOUS DEPARTMENTS RESOLUTION NO. 12346 ESTABLISHING 2026 LICENSE, PERMIT AND MISCELLANEOUS FEES PURSUANT TO THE PROVISIONS OF APPENDIX D OF THE ORDINANCE CODE OF THE CITY OF RICHFIELD RESCINDING RESOLUTION NO. 12243 Motion carried: 5-0 b. Approve Resolution Updating the City Council Rules of Procedure and Decorum. Council Member Coleman-Woods presented the Staff Report. MOTION: made by Council Member Coleman-Woods, seconded by Council Member Burk to approve a resolution updating the City Council Rules of Procedure and Decorum. RESOLUTION NO. 12347 RESOLUTION ADOPTING RULES OF PROCEDURE AND DECORUM FOR CITY COUNCIL MEMBERS Page 10 of 579 City Council Meeting Minutes -7- September 23, 2025 Motion carried: 5-0 ITEM #12 OTHER BUSINESS a. Approve Resolution of Participation in a Private Paid Family and Medical Leave Plan (MetLife) and Establishing Premium Sharing For The 2026-2027 Plan Year. Council Member Hayford Oleary presented Staff Report. MOTION: made by Council Member Hayford Oleary, seconded by Council Member Burk to approve a resolution of participation in a private paid family and medical leave plan (MetLife) and establishing premium sharing for the 2026-2027 plan year. RESOLUTION NO. 12348 APPROVE PARTICIPATION IN A PRIVATE PAID FAMILY AND MEDICAL LEAVE PLAN (METLIFE) AND ESTABLISH PREMIUM SHARING FOR THE 2026-2027 PLAN YEAR Motion carried: 5-0 ITEM #13 CITY MANAGER’S REPORT City Manager Rodriguez shared information regarding the comments made at the last meeting relating to the proposed ordinance change on storage units. She noted that comments were made relating to a particular incident when the ordinance was not equitably enforced. She stated that the ordinance was not correctly enforced in that incident, staff made a mistake. The City apologized and the mistake was quickly corrected. ITEM #14 COUNCIL DISCUSSION a. Hats off to Hometown Hits. Council Member Burk thanked everyone who worked on PennFest. Council Member Hayford Oleary echoed Council Member Burks' comment. Council Member Christensen reminded everyone that the farmers' market at Veterans Park is still taking place. Council Member Coleman-Woods thanked everyone who reached out to her family regarding her husband’s health. Mayor Supple expressed appreciation to City Forrester Joe Clark. She also stated that the City is seeking feedback for the sidewalk projects. Mayor Supple added that there will be one final opportunity to provide feedback at the open house held at City Hall. She also mentioned that the Richfield Foundation is accepting grant proposals. Page 11 of 579 City Council Meeting Minutes -8- September 23, 2025 ITEM #15 ADJOURNMENT MOTION: made by Council Member Christensen, seconded by Council Member Coleman-Woods to adjourn the meeting at 8:09 p.m. Motion carried: 5-0 Date Approved: October 14, 2025 Mary Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager Page 12 of 579 Proclamation of the City of Richfield WHEREAS, Indigenous Peoples’ Day is a celebration of the cultures, lands and languages of Indigenous Peoples throughout the land in which the United States is built on; and WHEREAS, The Dakota and Anishinaabe People have lived on the ancestral lands of Minnesota for thousands of years, including the land of the city of Richfield; and WHEREAS, Indigenous Peoples have served courageously throughout our history in all aspects of our society and deserve to be recognized and respected for all their contributions; and WHEREAS, Minnesota is home to countless Indigenous leaders including Jim Thorpe, Winona LaDuke, Louise Erdrich and Clyde Bellecourt; and WHEREAS, Mary Kunesh is the first Indigenous Minnesota State Senator; and WHEREAS, the state of Minnesota is honored to have Peggy Flanagan serve as our Lieutenant Governor, representing White Earth Nation; and WHEREAS, the city of Richfield confirms its commitment to supporting, uplifting and honoring Indigenous Peoples to ensure a better future for all members of our community. Now, THEREFORE, I, Mary Supple, mayor of Richfield, on behalf of the Richfield City Council, do hereby proclaim October 13th as Indigenous Peoples’ Day in Richfield, and call on the people of Richfield to observe this period with appropriate programs, activities and ceremonies, and continue to honor the contributions of Indigenous Americans throughout the year. PROCLAIMED this 14th day of October, 2025. Mary B. Supple, Mayor Page 13 of 579 City Council Meeting 10/14/2025 Agenda Section: Proclamations and Presentations Agenda Item: 6.d. Report Prepared By: Katie Rodriguez, City Manager Department Director: Mary Bogie, Interim Finance Director Item for Consideration: Receipt of the City of Richfield Annual Comprehensive Financial Report (ACFR) for the fiscal year ended December 31, 2024. EXECUTIVE SUMMARY As required by state law, all cities over 2,500 in population must have an annual audit in accordance with Generally Accepted Accounting Principles (GAAP). In addition, local governments must publish a complete set of financial statements within 6 months of the close of each fiscal year and file the report with the Office of the State Auditor (OSA) unless a formal extension is applied for and accepted. The City was granted an extension this year to September 30 and the report was filed by the extended deadline. The City must then present the Annual Comprehensive Financial Report to the City Council. BerganKDV, Ltd has completed the annual audit of the City's financial records and has issued an unmodified ("clean") opinion for the fiscal year ended December 31, 2024. Caroline Stutsman, Manager at BerganKDV, will present their findings and be available for questions at the meeting. HISTORICAL CONTEXT The City has received the Certificate of Achievement for Excellence in Financial reporting from the Government Finance Officers Association for many years and has submitted the 2024 ACFR for consideration. RECOMMENDED ACTION By Motion: Accept the Annual Comprehensive Financial Report for the year ended December 31, 2024. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Accurate financial information is critical for decisions that further the CIty's priorities detailed in the 2023-2027 Strategic Plan, including operational excellence, community development, sustainable infrastructure, a high-quality workforce and equity and inclusion. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) Summarized in the Executive Summary CRITICAL TIMING ISSUES Page 14 of 579 Summarized in the Executive Summary FINANCIAL IMPACT The ACFR's Letter of Transmittal and Management's Discussion and Analysis, plus BerganKDV's Communication Letter provide a summary of the financial results for the year ended December 31, 2024. LEGAL CONSIDERATIONS The Annual Report has been submitted to the Minnesota State Auditor's Office and will be published in the Sun Current pursuant to state law. ALTERNATIVE RECOMMENDATION(S) None ATTACHMENTS 1. ACFR - 2024 Richfield - Final 2. CL - 2024 Richfield - Final 3. GAS-LC - 2024 Richfield - Final 4. Richfield Audit Presentation 2025 Page 15 of 579 Page 16 of 579 Page 17 of 579 CITY OF RICHFIELD RICHFIELD, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 PREPARED BY: FINANCE DEPARTMENT Member GFOA of U.S. and Canada Page 18 of 579 Page 19 of 579 City of Richfield Table of Contents Page Introductory Section Letter of Transmittal 1 Certificate of Achievement for Excellence in Financial Reporting 9 City Officials 10 Organizational Chart 11 Financial Section Independent Auditor's Report 15 Management's Discussion and Analysis 19 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 32 Statement of Activities 34 Fund Financial Statements Governmental Funds Balance Sheet 38 Reconciliation of the Balance Sheet to the Statement of Net Position 41 Statement of Revenues, Expenditures and Changes in Fund Balances 42 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 44 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund 45 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Ice Arena Special Revenue Fund 46 Elections Special Revenue Fund 47 Proprietary Funds Statement of Net Position 48 Statement of Revenues, Expenses and Changes in Net Position 50 Statement of Cash Flows 51 Fiduciary Funds Statement of Fiduciary Net Position 53 Statement of Changes in Fiduciary Net Position 54 Notes to the Financial Statements 55 Required Supplementary Information Schedule of Changes in Total OPEB Liability 102 Schedule of City's Proportionate Share of Net Pension Liability - General Employees Retirement Fund 104 Schedule of City's Proportionate Share of Net Pension Liability - Public Employees Police and Fire Retirement Fund 104 Schedule of City Contributions - General Employees Retirement Fund 105 Schedule of City Contributions - Public Employees Police and Fire Retirement Fund 105 Notes to Required Supplementary Information 106 Combining and Individual Fund Financial Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 117 Page 20 of 579 City of Richfield Table of Contents Page Financial Section Combining and Individual Fund Financial Statements and Schedules (Continued) Nonmajor Special Revenue Funds Subcombining Balance Sheet 118 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances 122 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Liquor Contributions Special Revenue Fund 126 Tourism Admin Special Revenue Fund 127 Communications Special Revenue Fund 128 Public Safety Aid Special Special Revenue Fund 129 Drug/Forfeiture Special Revenue Fund 130 Public Safety Compliance Special Revenue Fund 131 Recreation Contribution Special Revenue Fund 132 Nature Center Contribution Special Revenue Fund 133 Public Health Grants Special Revenue Fund 134 Wood Lake Half Marathon Special Revenue Fund 135 Utility Franchise Fees Special Revenue Fund 136 Opioid Settlement Special Revenue Fund 137 Recreation Special Program Special Revenue Fund 138 Swimming Pool Special Revenue Fund 139 Street Light User Fee Special Revenue Fund 140 Special Facility Special Revenue Fund 141 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 142 Internal Service Funds Combining Statement of Net Position 148 Combining Statement of Revenues, Expenses and Changes in Net Position 150 Combining Statement of Cash Flows 152 Supplementary Financial Information Housing and Redevelopment Authority Combined Balance Sheet 156 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 157 Housing Choice Vouchers Financial Data Schedules – Balance Sheet 158 Housing Choice Vouchers Financial Data Schedules – Income Statement 159 Economic Development Authority Balance Sheet 160 Statement of Revenues, Expenditures and Changes in Fund Balances 161 Statistical Section (Unaudited) Table Page Financial Trends Net Position by Component 1 166 Changes in Net Position 2 168 Fund Balances of Governmental Funds 3 172 Changes in Fund Balances of Governmental Funds 4 174 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 5 176 Page 21 of 579 City of Richfield Table of Contents Table Page Statistical Section (Unaudited) (Continued) Revenue Capacity (Continued) Property Tax Rates - Direct and Overlapping Governments 6 178 Principal Property Taxpayers 7 179 Property Tax Levies and Collections 8 180 Ratios of Outstanding Debt by Type 9 181 Ratios of General Bonded Debt Outstanding 10 182 Debt Capacity Computation of Direct and Overlapping Debt 11 183 Legal Debt Margin Information 12 184 Revenue Bond Coverage 13 186 Demographic and Economic Information Demographic and Economic Statistics 14 187 Principal Employers 15 188 Operating Information Full-time Equivalent City Government Employees by Function 16 189 Operating Indicators by Function 17 190 Capital Asset Statistics by Function 18 191 Page 22 of 579 Page 23 of 579 INTRODUCTORY SECTION CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 24 of 579 Page 25 of 579 6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423 . | PHONE: 612.861.9700 WWW.RICHFIELDMN.GOV | AN EQUAL OPPORTUNITY EMPLOYER MAYOR MARY SUPPLE CITY COUNCIL WALTER BURK SHARON CHRISTENSEN RORI A. COLEMAN- WOODS SEAN HAYFORD OLEARY CITY MANAGER KATIE RODRIGUEZ The Honorable Mayor, Members of the City Council, and Citizens of the City of Richfleld, Minnesota State law requires that all general-purpose local governments publish within six months of the close of each flscal year a complete set of flnancial statements presented in conformance with U.S. generally accepted accounting principles (GAAP) and audited in accordance with U.S. generally accepted auditing standards by a flrm of licensed certifled public accountants. Pursuant to that requirement, we hereby issue the annual comprehensive flnancial report of the City of Richfleld for the flscal year ended December 31, 2024. This report consists of management’s representations concerning the flnances of the City of Richfleld. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Richfleld has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, misuse and to compile sufficient reliable information for the preparation of the City of Richfleld’s flnancial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their beneflts, the City of Richfleld’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the flnancial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this flnancial report is complete and reliable in all material respects. The City of Richfleld’s flnancial statements have been audited by BerganKDV, a flrm of licensed certifled public accountants. The goal of the independent audit was to provide reasonable assurance that the flnancial statements of the City of Richfleld for the flscal year ended December 31, 2024, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the flnancial statements: assessing the accounting principles used and signiflcant estimates made by management; and evaluating the overall flnancial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodifled opinion that the City of Richfleld’s flnancial statements for the flscal year ended December 31, 2024, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the flrst component of the flnancial section of this report. 1 Page 26 of 579 September 23, 2025 The independent audit of the flnancial statements of the City of Richfleld was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the flnancial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. Those reports are available in the City of Richfleld’s separately issued Special Purpose Audit Reports. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic flnancial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Richfleld’s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City was incorporated on February 26, 1908. Since 1964, the City has operated under a council/manager form of government, as authorized by its charter, and exists under the laws of the State of Minnesota. The City has a population of 36,994 (2020 Census) and covers an area of approximately seven square miles. Located in Hennepin County, Richfleld is the flrst suburb south of Minneapolis. Richfleld is bordered on the north by the Crosstown Highway 62; bordered on the east by the Minneapolis-St. Paul International Airport; bordered on the south by Interstate 494; and bordered on the west by Xerxes Avenue and the City of Edina. In addition, Interstate 35W, the major north/south thoroughfare in the Twin City area, runs north/south through the middle of Richfleld. The City of Richfleld provides a full range of services, including police and flre protection, the construction and maintenance of streets and other infrastructure, and recreational activities. The City of Richfleld also operates four municipal liquor stores, water and sewer utility, storm water utility, a two-sheet ice arena, a municipal swimming pool and a mini golf course. The annual budget serves as the foundation for the City of Richfleld’s flnancial planning and control. All departments of the City are required to submit requests for appropriation to the City Manager. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the City Council for review prior to September 15. The Council is required to hold public hearings on the proposed budget and to adopt a flnal budget by no later than the last date established by law for the County Auditor to levy taxes. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund and the ice arena fund this comparison is presented in the Required Supplementary Information section. For nonmajor governmental funds with appropriated annual budgets, this comparison is presented in the combining and individual fund statements and schedules. 2 Page 27 of 579 September 23, 2025 Factors Affecting Financial Condition Richfleld was initially developed as a residential community. Many residents work at the adjacent airport, in the downtown Minneapolis-St. Paul area or on the I-494 strip. Richfleld's commercial/industrial base is comparatively small when looking at other Twin City metropolitan area communities. When viewing the total estimated market value of the community, approximately 67% of the market value is comprised of residential properties, 15% apartments, and only 14% commercial/industrial property. Despite the limited commercial/industrial tax base, approximately 15,500 workers commute into the city compared to 19,100 who work outside the city according to 2019 U.S. Census Bureau data. The City continues to build a more diversifled tax base, including more commercial development. However, over 99% of the land area in Richfleld is already developed. Commercial development in Richfleld is a more complex process that requires extensive redevelopment and often the use of tax increment flnancing assistance. Since 1975, the City has created twenty-one tax increment districts. These tax increment districts were formed to help transform areas which are becoming market obsolete into a more vital commercial tax base. The City has transformed itself as a result of this redevelopment which includes not only commercial, but residential developments. Consequently, as the tax increment districts decertify, the City will realize the full market value beneflt of these districts. The City had a single district decertify in 1993, 1996, 2002, 2010, 2012, and two more decertifled in 2019. The market value of the current TIF districts has increased by 299%. In addition to the City’s efforts in commercial redevelopment, several housing programs have been established to encourage reinvestment in the City’s housing stock. The City enjoys an “AA+” bond rating and stable outlook from Standard and Poor’s Ratings. Long-term Financial Planning The Metropolitan Council requires all cities in the seven-county metropolitan area to have a Comprehensive Plan and State law requires cities to update their plans every 10 years. The Comprehensive Plan guides development and redevelopment and addresses changes likely to occur due to various social and market forces. The City’s 2040 Comprehensive Plan was adopted in 2020. In addition, the City engages in long-term flnancial and capital planning on an annual basis. The objective of this process is to provide a framework for decision making required to identify and implement strategies that will assure long-term community viability. Accordingly, outcomes of the process include promotion of long-term community affordability and livability, reinvesting in the City’s housing stock to position the City to compete with other communities, addressing transportation impacts within the City, establishing a flnancial framework to maintain and replace the City’s physical and technical infrastructure, and reviewing options and opportunities to improve delivery of City services. 3 Page 28 of 579 September 23, 2025 Relevant Financial Policies The City has adopted a set of flnancial management policies that focus on such areas as capital budgeting, revenue policies, debt management, general fund balances, cash and investments, risk management and operating budgets. The City has an established fund balance policy for the general fund with a goal of maintaining an unassigned fund balance of 40% of general fund expenditures. To that end, the city budgeted an addition to the unassigned fund balance of $92,000 for 2024. In total, the City’s general fund balance grew by $501,814 and the unassigned fund balance of the general fund was 37.9% of general fund expenditures at year end. Major Initiatives Major initiatives in 2024 included the following: Recreation Initiatives: • Local Sales Tax Referendum Projects – In 2024, Richfleld voters approved a 0.5% local sales tax to help flnance multi-year projects for a new Community Center, Wood Lake Nature Center, and signiflcant upgrades at Veterans Park. • Community Center – This project will replace the city’s aging community center with a facility designed to support more activities and programs for residents of all ages. • Wood Lake Nature Center – A new educational facility will replace the existing Wood Lake Nature Center building to provide a more accessible setting for residents and visitors to reconnect with nature. • Veterans Park – This project will address major repairs with to the swimming pool, ice arena, and trails. Right of Way Improvements: • I-494 Project 1 – In coordination with the City, MnDOT is constructing improvements to the I-494 corridor between Hwy 77 and Hwy 169, and will be minimizing congestion issues along the corridor by removing local access to I-494 at Nicollet Ave and 12th Ave and improving access at Portland Ave. The project includes the addition of E-Z Pass Lanes for east and westbound traffic on I-494, a fiyover ramp at I-494 and I-35W, a new pedestrian bridge that will cross I-494 at Chicago Ave, and reconstruction of various frontage roads throughout Richfleld. The estimated cost of the project is $377 million dollars, with Richfleld’s share totaling approximately $2.6 million. Construction began in 2023 and is expected to be completed in 2026. 4 Page 29 of 579 September 23, 2025 • I-494 Project 2 – MnDOT has notifled the City that the second phase of the I-494 corridor vision has been substantially funded and will be constructed immediately following the completion of Project 1. Project 2 includes construction of EZ-Pass lanes on I-494 between Hwy 77 and I-35 and between Hwy 100 and Hwy 169. It also includes the replacement of the railroad bridge over I-494 at Pleasant Ave and some frontage road construction on 78th St east of 12th Ave. The project is still in the preliminary design phase, but the flnancial contribution by the City is expected to be minimal. • Nicollet Avenue Reconstruction – In coordination with the City, Hennepin County will be reconstructing Nicollet Avenue from 77th Street to 66th Street. In addition to the reconstruction of the road itself, this project includes renewal/replacement of underground utilities, and new traffic calming infrastructure. The streetscape improvements include new and improved pedestrian and bicycle accommodation along the corridor. The total estimated project cost is anticipated to be $25,090,000, with the city contributing $9,280,000 to that amount. Project design started in 2023, and construction is expected to occur in 2026 and 2027. • Sanitary Sewer Lining – This project is an ongoing reinvestment to line the sanitary sewer system throughout the City, as most of the sewer system consists of clay sewer pipe. Sanitary sewer lining was not completed in 2024, as the budget for this work was reallocated to install a new sanitary sewer line under I-35W as part of the I-494 project. Annual lining work resumed in 2025. • Pavement Management – The Public Works department has improved their pavement management program since the completion of the 6-Year Mill and Overlay Project using RoadAI software, and consistent road rehabilitation methods. There was no signiflcant projects completed in 2024 with activities resuming in 2025, including concrete replacement, pavement rejuvenation, and crack sealing. • Active Transportation Plan – The City completed their revised Active Transportation Plan in January 2024. The plan allocates a total of $280,000 annually toward pedestrian, bicyclist, and ADA improvements. The City also secured an infrastructure grant that was approximately $236,000 to construct rectangular rapid flashing beacons at 66th Street and Richfield Parkway, and to reconstruct and improve the pedestrian ramps at that location. That project was substantially completed in fall 2024 and fully completed in spring 2025; the total project cost was $302,000. 5 Page 30 of 579 September 23, 2025 • Safe Routes to School (SRTS) Planning – The City continues to work on their Safe Routes to School Planning and has secured several grants and funding for numerous projects throughout the City. These projects include improving pedestrian crossings, installing a separated bike lane, a new trail, and constructing new sidewalk in several locations in Richfield. The total amount of funding secured for SRTS was approximately $1,261,000, which has minimal local match and includes some funding for design assistance on projects. Using those funds, a new sidewalk was completed on 71st Street between Elliot Avenue and 12th Avenue; the SRTS funding covered $150,000 of the $210,000 project total. Projects being constructed in 2025 include a trail at Centennial Elementary School, 80% funded by a $635,000 federal Safe Routes to School grant, and a separated bike lane at STEM/RDLS funded by a $586,225 state Safe Routes to School grant. An additional SRTS grant of $544,500 was awarded in spring 2025 for a project at Sheridan Hills Elementary school, which will be constructed in 2026. • Funding Applications – Funding was secured for two sidewalk expansion projects and an intersection reconstruction through the Metropolitan Council’s Regional Solicitation in October 2024. These projects totaled $1,900,000 in state active transportation funding and $2,700,000 in federal formula funding. Each of these grants requires a 20% cost match from the city. The City originally applied for 5 projects with a total amount of funding of $14,000,000. Construction of these projects is planned for 2026 and 2029. The City continues to look for additional funding for future projects. Commercial Redevelopment and Housing Initiatives Continued high interest rates, labor costs, and material costs made redevelopment challenging in 2024. Projects/programs that progressed in 2024 include: • Construction of the Lynvue at 65th Street & Lyndale Avenue wrapped up in 2023 and in 2024 a portion of the ground fioor retail area was completed and leased. • Beacon Interfaith plans for a 40-unit affordable housing project (Aster Commons) failed to secure tax credits in 2024 but continued to work to secure flnancing from other sources. • Penn Station, an 80-unit affordable housing building at 65th and Penn Avenue was successful in their application for tax credits. Building Permit Applications have been submitted and construction is anticipated in late fall 2025 or early 2026. • Plans for the reuse and revitalization of a large vacant commercial building in the heart of the community were approved, and work is currently underway on a large grocery store at the HUB shopping center. The grocer is expected to open in fall 2025. This is in addition to several new local restaurant options that opened in the area in 2024. 6 Page 31 of 579 September 23, 2025 • In late 2024, the former American Legion site on Penn Avenue was purchased by a developer and plans for housing on this site are under discussion. • The City continues to operate several very successful programs that encourage reinvestment in the City’s housing stock. These programs include, but are not limited to, incentive loan programs for remodeling homes to higher values, funding assistance for the replacement of small substandard homes with larger new construction, partnerships with non-proflt builders and developers like Habitat for Humanity, and a flrst-time homebuyer program speciflcally targeted at current renters. • The City’s Housing & Redevelopment Authority provided signiflcant funding to assist a preservation buyer in the purchase of three affordable apartment communities in Richfleld. Exterior improvements to the properties will begin in 2025 and interior improvements will happen over time. • The City’s Economic Development Authority continues to expand programming, adding a Sewer Access Charge (SAC) Assistance Program for small businesses in 2024. Awards and Acknowledgments To be awarded a Certiflcate of Achievement, a government unit must publish an easily readable and efficiently organized annual report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certiflcate of Achievement is valid for a period of one year only. We believe that our current annual report continues to meet the Certiflcate of Achievement Program requirements, and we are submitting it to GFOA to determine its eligibility for the certiflcate. The preparation of this report would not have been accomplished without the efficient and dedicated services of the entire staff of the flnance department. We express our appreciation to all members of the department who assisted and contributed to its preparation. We also thank the Mayor and members of the City Council for their interest and support in planning and conducting the flnancial operations for the City of Richfleld in a responsible and progressive manner. Respectfully submitted, Katie Rodriguez City Manager 7 Page 32 of 579 8 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 33 of 579 9 City of Richfield Certificate of Achievement for Excellence in Financial Reporting Page 34 of 579 10 City of Richfield Elected Officials and Administration December 31, 2024 Name Title Term Ends Mary Supple Mayor January 12, 2027 Sharon Christensen Council Member January 12, 2027 Simon Trautmann, Ward 1 Council Member January 14, 2025 Sean Hayford Oleary, Ward 2 Council Member January 14, 2025 Ben Whalen, Ward 3 Council Member January 14, 2025 Name Title Katie Rodriguez City Manager Kumud Verma Finance Director Michelle Friedrich City Clerk City Officials Administrative Staff Page 35 of 579 11 City of Richfield Organizational Chart Citizens City Council Executive City Manager City Attorney Assistant City Manager Finance Public Safety Fire Public Works Recreation Services Community Development Administration Assessing Support Services Administration Recreation Administration Planning & Zoning Human Resources Police Operations Engineering Park and Recreation Inspections City Clerk Emergency Services Street Maintenance/Fores try Wood Lake Nature Center Special Facilities Government Buildings Information Technologies Park Maintenance Ice Arena Self Insurance/ Risk Management Water Utility Swimming Pool Deputy Registrar Liquor Operations Stormwater Utility & Equipment Central Garage & Equipment Communications Waste Water Utility Page 36 of 579 12 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 37 of 579 13 FINANCIAL SECTION CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 38 of 579 14 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 39 of 579 15 Independent Auditor's Report Honorable Mayor and Members of the City Council City of Richfield Richfield, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City of Richfield's basic financial statements as listed in the Table of Contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of December 31, 2024, and the respective changes in financial position and, where applicable, cash flows thereof, and the budgetary comparison for the General Fund, Ice Arena Special Revenue Fund, and Elections Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The City of Richfield's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Page 40 of 579 16 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. 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 and Government Auditing Standards will always detect a material misstatement when it exists. 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, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, which follows this report letter, and Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Account 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. We have applied certain limited procedures to the Required Supplementary Information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about 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 do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Page 41 of 579 17 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Richfield's basic financial statements. The combining and individual fund financial statements and schedules identified in the Table of Contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 23, 2025, on our consideration of the City of Richfield's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Richfield's internal control over financial reporting and compliance. St. Cloud, Minnesota September 23, 2025 Page 42 of 579 18 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 43 of 579 19 City of Richfield Management's Discussion and Analysis As management of the City of Richfield, we offer readers of the City of Richfield's financial statements this narrative overview and analysis of the financial activities of the City of Richfield for the fiscal year ended December 31, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1 thru 6 of this report. Financial Highlights • The assets and deferred outflows of resources of the City of Richfield exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $115,479,956 (net position). Of this amount, $13,150,019 may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net position increased by $5,874,201. • As of the close of the current fiscal year, the City of Richfield's governmental funds reported combined ending fund balances of $42,381,278. Of this total amount, $319,364 is classified as nonspendable, $20,157,255 as restricted, $12,256,565 as committed by City Council action and $9,648,094 as unassigned. • At the end of the current fiscal year, the general fund balance of $12,028,802 included $317,975 as nonspendable and $11,710,827 as unassigned. • The City of Richfield's total bonded debt increased by $5,123,872 (8.1%) during the current fiscal year from $63,283,880 to $68,407,752. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Richfield's basic financial statements. The City of Richfield's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Richfield's finances, in a manner like a private-sector business. The statement of net position presents information on all the City of Richfield's assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Richfield is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Page 44 of 579 20 City of Richfield Management's Discussion and Analysis Overview of the Financial Statements (Continued) Government-Wide Financial Statements. (Continued) Both government-wide financial statements distinguish functions of the City of Richfield that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Richfield include general government, public safety, fire, community development, public works, and parks and recreation. The business-type activities of the City of Richfield include a municipal liquor operation, water and sewer utility, and a storm sewer utility. The government-wide financial statements include not only the City of Richfield itself (known as the primary government), but also the Richfield Housing and Redevelopment Authority and the Richfield Economic Development Authority, both discretely presented component units. Financial information for these component units is reported separately from the financial information presented for the primary government itself. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Richfield, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City of Richfield can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Richfield maintains twenty-four individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, ice arena fund, elections fund, improvement bonds fund, and capital improvements fund, all of which are considered major funds. Data from the other seventeen governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Richfield adopts an annual appropriated budget for its general and special revenue funds. A budgetary comparison statement has been provided for these funds to demonstrate compliance with this budget. Page 45 of 579 21 City of Richfield Management's Discussion and Analysis Overview of the Financial Statements (Continued) Proprietary Funds. The City of Richfield maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of Richfield uses enterprise funds to account for its liquor operation, water and sewer utility and for its storm sewer utility, all of which are considered to be major funds of the City. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Richfield's various functions. The City of Richfield uses internal service funds to account for its central garage & equipment, for its information technology systems, its self-insurance program, its building services function, and its compensated absences liability. Because all of these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government- wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Richfield's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information. Required supplementary information can be found following the Notes to the Financial Statements. The combining statements referred to earlier in connection with nonmajor governmental funds, internal service funds and fiduciary funds are presented immediately following the required supplementary information. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City of Richfield, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $115,479,956 at the close of the most recent fiscal year. Page 46 of 579 22 City of Richfield Management's Discussion and Analysis Government-Wide Financial Analysis (Continued) By far the largest portion of the City of Richfield's net position (90%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The City of Richfield uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Richfield's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease) Assets Current and other assets 70,029,192$ 55,544,284$ 14,484,908$ 11,642,947$ 16,334,682$ (4,691,735)$ Capital assets, net of depreciation 101,952,023 108,963,626 (7,011,603) 40,677,495 34,589,375 6,088,120 Total assets 171,981,215 164,507,910 7,473,305 52,320,442 50,924,057 1,396,385 Deferred Outflows of Resources 696,105 670,569 25,536 28,873 36,677 (7,804) Deferred pension resources 13,906,823 17,943,045 (4,036,222) 263,258 492,573 (229,315) Total deferred outflows of resources 14,602,928 18,613,614 (4,010,686) 292,131 529,250 (237,119) Liabilities Long-term liabilities outstanding 66,821,169 64,439,527 2,381,642 14,445,554 16,401,225 (1,955,671) Other liabilities 13,235,779 12,937,392 298,387 3,133,710 3,053,103 80,607 Total liabilities 80,056,948 77,376,919 2,680,029 17,579,264 19,454,328 (1,875,064) Deferred Inflows of Resources Deferred pension resources 18,363,987 18,296,757 67,230 836,847 673,089 163,758 1,009,393 1,127,038 (117,645) 41,869 61,644 (19,775) Deferred lease resources 4,328,161 4,792,825 (464,664) - - - Advanced appropriations - State shared tax 1,500,297 2,919,130 (1,418,833) - - - Total deferred inflows of resources 25,201,838 27,135,750 (1,933,912) 878,716 734,733 143,983 Net Position - restated Net investment in capital assets 73,327,481 75,377,835 (2,050,354) 26,509,108 19,177,441 7,331,667 Restricted 9,210,048 8,636,333 573,715 - - - Unrestricted (1,212,166) (5,405,313) 4,193,147 7,645,485 12,086,805 (4,441,320) Total net position 81,325,363$ 78,608,855$ 2,716,508$ 34,154,593$ 31,264,246$ 2,890,347$ City of Richfield's Net Position Governmental Activities Business-Type Activities benefits resources benefits resources Deferred other postemployment Deferred other postemployment An additional portion of the City of Richfield's net position represents resources that are subject to external restrictions on how they may be used. On December 31, 2024, the City had restricted net position of $9,210,048. The remaining balance of unrestricted net position $6,433,319 may be used to meet the government's ongoing obligations to citizens and creditors. The city's net position reflects an increase of $5,874,201. The increase can be attributed primarily to Governmental Activities. Page 47 of 579 23 City of Richfield Management's Discussion and Analysis Government-Wide Financial Analysis (Continued) Governmental Activities. Governmental activities increased the City of Richfield's net position by $5,553,691 in 2024. Total revenues of $48,853,128 continued to exceed total expenses of $44,249,837. Property taxes, driven by a 5.45% increase in levy and increased charges for services offset inflationary pressures for labor and other expenses. Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease) Revenues Program revenues Charges for services 8,899,455$ 5,458,292$ 3,441,163$ 25,700,838$ 26,779,708$ (1,078,870)$ Operating grants and contributions 2,695,970 3,627,875 (931,905) 15,000 - 15,000 Capital grants and contributions 4,362,651 8,372,899 (4,010,248) 3,827 - 3,827 General revenues Taxes Property taxes 27,396,488 26,039,309 1,357,179 - - - Other taxes 8,269 2,258,302 (2,250,033) - - - Grants and contributions not restricted to specific programs 3,392,552 2,038,711 1,353,841 1,895 20,000 (18,105) Unrestricted investment earnings 1,905,722 2,165,757 (260,035) 552,702 606,770 (54,068) Gain on sale of capital assets 110,431 108,500 1,931 15,000 - 15,000 Miscellaneous 81,590 78,000 3,590 153 - 153 Total revenues 48,853,128 50,147,645 (1,294,517) 26,289,415 27,406,478 (1,117,063) Expenses General government 5,044,942 4,416,925 628,017 - - - Public safety 19,121,775 19,165,643 (43,868) - - - Public works 11,460,779 8,969,774 2,491,005 - - - Culture and recreation 5,512,708 5,653,215 (140,507) - - - Community development 1,845,055 1,788,215 56,840 - - - Interest on long-term debt 1,264,578 1,290,114 (25,536) - - - Municipal Liquor - - - 12,792,792 12,700,999 91,793 Water and Sewer Utility - - - 9,990,930 9,330,452 660,478 Storm Sewer - - - 2,325,095 2,640,186 (315,091) Total expenses 44,249,837 41,283,886 2,965,951 25,108,817 24,671,637 437,180 Excess before transfers 4,603,291 8,863,759 (4,260,468) 1,180,598 2,734,841 (1,554,243) Transfers 950,400 1,197,926 (247,526) (860,088) (1,197,926) 337,838 Change in Net Position 5,553,691 10,061,685 (4,507,994) 320,510 1,536,915 (1,216,405) Net position, January 1, restated 75,771,672 69,547,170 4,367,487 33,834,083 29,727,331 4,106,752 Net position, December 31 81,325,363$ 79,608,855$ 1,716,508$ 34,154,593$ 31,264,246$ 2,890,347$ Governmental Activities Business-Type Activities City of Richfield's Changes in Net Position Page 48 of 579 24 City of Richfield Management's Discussion and Analysis Government-Wide Financial Analysis (Continued) $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 General government Public safety Public works Culture and recreation Community development Interest on long-term debt Governmental Activities Revenues and Expenses by Program Revenues Expenses Charges for services 18% Operating grants and contributions 6% Capital grants and contributions 9% Taxes 56% Grants & contributions unrestricted 7% Unrestricted investment earnings 4% Gain on sale of capital assets 0% Miscellaneous 0% Governmental Activities Revenue Page 49 of 579 25 City of Richfield Management's Discussion and Analysis Government-Wide Financial Analysis (Continued) Business-Type Activities. Business-type activities increased the City's net position by $320,510 in 2024. The increase can be primarily attributed to municipal liquor charges outpacing expenses. $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 Municipal Liquor Water and Sewer Utility Storm Sewer Business-Type Activities Revenues and Expenses by Program Revenues Expenses Charges for services 98% Other 0% Unrestricted investment earnings 2% Business-Type Activities Revenues Page 50 of 579 26 City of Richfield Management's Discussion and Analysis Financial Analysis of the Government's Funds As noted earlier, the City of Richfield uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City of Richfield's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Richfield's financing requirements. Fund balances are identified based on a hierarchy of the constraints placed on the use of financial resources within governmental funds. Accordingly, fund balances are classified as: nonspendable, restricted, committed, assigned, and unassigned. As of the end of the current fiscal year, the City of Richfield's governmental funds reported combined ending fund balances of $42,381,278 an increase of $11,224,871 over 2023. This increase is primarily attributed to the December receipt of $10,000,000 general obligation revenue bond proceeds for parks capital projects that will begin construction in 2025. Consequently, the year-end balance consists of the following: 0.75% ($319,364) are amounts that are not in spendable form such as prepaid items. 47.56% ($20,157,255) constitutes restricted fund balances which limits the spending of these balances to externally imposed constraints, i.e. debt service covenants. 28.92% ($12,256,565) represents committed fund balances which are determined by resolution of the City Council. Finally, 22.76% or ($9,648,094) consists of balances classified as unassigned, which includes the fund balance of the General Fund and deficit fund balances of other governmental funds. The general fund is the chief operating fund of the City of Richfield. At the end of the current year, the unassigned fund balance of the general fund was $11,710,827 while total fund balance was $12,028,802. As a measure of the general fund liquidity, it may be useful to compare unassigned fund balance to total general fund revenues. Unassigned fund balance represents approximately 37.78% of total general fund revenues and 38.09% of total general fund expenditures. Moreover, the State Auditor has set a standard that unrestricted, unassigned fund balance should be between 35 and 50% of yearly general fund revenues. The City has adopted a policy that strives to maintain a minimum fund balance equal to 40% of total general fund expenditures. At December 31, 2024, the City of Richfield is right under the fund balance goal. The City's fund balance for its general fund increased by $541,814 in 2024. The increase is primarily driven by a budgeted addition to the unassigned fund balance ($92,000) and total revenues exceeding budget by $316,311. The Ice Arena fund reflects an increase in fund balance of $466,209 in 2024. The increase is due to budgeted transfers from the General Fund and Capital Improvements Fund. The Elections fund reflects an increase in fund balance of $307,198 over 2023 reflecting GASB 87 lease revenue recognition. The G.O. Improvement Bonds fund has a fund balance of $6,613,969. The fund balance increased in 2024 by $350,676 reflecting property taxes levied in accordance with state statute. The Capital Improvement fund accounts for public improvements and road right-of-way projects undertaken by the City. For the year ended December 31, 2024, a correction of error was required to adjust beginning fund balance to correct an understatement of amounts due from other funds resulting in a 2024 fund balance of $3,540,667. Page 51 of 579 27 City of Richfield Management's Discussion and Analysis Financial Analysis of the Government's Funds (Continued) For the year ended December 31, 2024, the Park Capital Projects Fund was changed from a nonmajor governmental fund to a major governmental fund, resulting in a decrease of beginning fund balance for the nonmajor governmental funds of $1,615,645. The nonmajor governmental funds consist of the City's Special Revenue funds and the Redevelopment Bond fund. The Special Revenue funds increased by $1,660,183 in 2024. This increase reflects a budgeted addition to reserves of $727,500 and expenditure savings of $366,511 for programmed projects that were not completed during the year in the Utility Franchise Fees Special Revenue Fund. Proprietary Funds. The City of Richfield's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the municipal liquor operation at the end of the year amounted to $2,887,182, for the water and sewer utility $4,430,938, and for the storm sewer utility $3,319,528. The total increase in net position for the municipal liquor operation, the water and sewer utility, and the storm sewer utility was $613,443, $(288,850), and $357,559 respectively. Budgetary Highlights General Fund At the end of 2024 the City's General Fund added $541,814 to its fund balance. This was accomplished through revenues performing better than budget by $316,311 and a budget plan to increase unassigned fund balance over time toward the policy target. Capital Asset and Debt Administration Capital Assets. The City of Richfield's investment in capital assets for its governmental and business type activities as of December 31, 2024 amounts to $142,629,518 (net of accumulated depreciation/amortization). This investment in capital assets includes land, buildings and structures, other improvements, machinery and equipment, infrastructure, and construction in progress. Major capital asset events during 2024 included the following: • Addition of flashing crosswalk lights and improved pedestrian ramps at 66th and Richfield Parkway was substantially complete Fall 2024 and will be fully complete Spring 2025. • New sidewalk completed on 71st between Elliot Avenue and 12th Avenue as part of the city's Safe Routes to School Program. • In November 2024, Richfield voters approved a 0.5% local sales tax to help finance multi- year projects for a new Community Center, Wood Lake Nature Center, and significant upgrades at Veterans Park. Construction efforts begin in 2025. Page 52 of 579 28 City of Richfield Management's Discussion and Analysis Capital Asset and Debt Administration (Continued) City of Richfield's Capital Assets (Net of Depreciation) increase increase 2024 2023 (decrease)2024 2023 (decrease) Land 9,353,605$ 9,353,605$ -$ 638,673$ 638,673$ -$ Leased equipment (Intangible Right to use amount)48,224 73,385 (25,161) - - - Buildings and structures 28,514,309 29,541,526 (1,027,217) 2,386,285 2,599,293 (213,008) Machinery and equipment 8,067,572 7,681,714 385,858 4,614,112 5,240,703 (626,591) Other improvements 4,949,422 4,894,243 55,179 32,548,543 26,077,060 6,471,483 Streets (infrastructure)44,341,635 54,250,320 (9,908,685) - - - Construction in progress 6,677,256 3,168,833 3,508,423 489,882 33,646 456,236 Total 101,952,023$ 108,963,626$ (7,011,603)$ 40,677,495$ 34,589,375$ 6,088,120$ Governmental Activities Business-Type Activities Additional information on the City's capital assets can be found in Note 1P and Note 4 Capital Assets in the accompanying notes to the basic financial statements. Long-term Debt At the end of the current fiscal year, the City of Richfield had total bonded debt outstanding of $68,407,752. The debt service for the general obligation redevelopment bonds is provided through the collection of tax increments from Hennepin County. On an annual basis tax increment proceeds are transferred to meet annual debt service requirements. The general obligation improvement bonds are serviced by special assessment collections and tax levies. City of Richfield's Outstanding Debt General Obligation and Revenue Bonds increase increase 2024 2023 (decrease)2024 2023 (decrease) G.O. Redevelopment Bonds 260,000$ 1,110,000$ (850,000)$ -$ -$ -$ G.O. Improvement Bonds 42,295,000 45,635,000 (3,340,000) - - - Revenue Bonds 10,000,000 - 10,000,000 13,670,000 14,855,000 (1,185,000) Bond Premium 1,724,358 1,165,923 558,435 458,394 517,957 (59,563) Total 54,279,358$ 47,910,923$ 6,368,435$ 14,128,394$ 15,372,957$ (1,244,563)$ Governmental Activities Business-Type Activities Page 53 of 579 29 City of Richfield Management's Discussion and Analysis Long-term Debt (Continued) The City maintains a "AA+" bond rating and stable outlook from Standard and Poor's Ratings. State Statutes limit the amount of general obligation debt a governmental entity may issue to 3% of its total assessed valuation. The current debt limitation for the City of Richfield is $151,183,023, which is more than the City of Richfield's outstanding general obligation debt. Additional details of the City's long-term debt activity can be found in Note 6, Long-Term Liabilities, in the accompanying notes to the basic financial statements. Economic Factors and Next Year's Budgets and Rates The following is an integral part of the City's planning for and dealing with near-term financial issues: Continued high interest rates, labor costs, and material costs made redevelopment challenging in 2024. A number of redevelopment and housing projects progressed in 2024, however, going forward into 2025 we expect a decrease in permit revenues and redevelopment activities. These factors also put pressure on the city's 2025 capital improvement budget and plan funding and priorities. Requests for Information This financial report is designed to provide a general overview of the City of Richfield's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, City of Richfield, 6700 Portland Avenue South, Richfield, MN 55423. Page 54 of 579 30 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 55 of 579 31 GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 56 of 579 See notes to basic financial statements. 32 Primary Government Governmental Activities Business-Type Activities Total Housing and Redevelopment Authority Economic Development Authority Assets Cash and investments 58,263,181$ 9,076,335$ 67,339,516$ 20,226,856$ 1,334,871$ Property tax receivable 244,736 - 244,736 25,412 5,410 Accounts receivable 1,223,834 3,062,382 4,286,216 32,593 - Interest receivable 146,624 25,341 171,965 41,817 2,619 Leases receivable 4,593,997 - 4,593,997 - - Special assessments receivable 530,664 446,705 977,369 - - Due from other governments 1,009,009 70,157 1,079,166 386,444 2,084 Internal balances 2,992,163 (2,992,163) - - - Due from component unit 691,284 - 691,284 - - Inventory - 1,715,996 1,715,996 - - Land held for resale - - - 9,103,495 - Prepaid items 333,700 238,194 571,894 15,497 - Long-term second mortgage receivab - - - 2,770,177 - Deferred loan receivable - - - - 1,230,480 Allowance for uncollectivle accounts - - - (2,770,177) (1,230,480) Land and construction in progress 16,030,861 1,128,555 17,159,416 - Depreciable assets (net of accumulated depreciation/amortization)85,921,162 39,548,940 125,470,102 - - Total assets 171,981,215 52,320,442 224,301,657 29,832,114 1,344,984 Deferred Outflows of Resources Deferred outflows of resources related to pensions 13,906,823 263,258 14,170,081 - - Deferred outflows of resources related to OPEB 696,105 28,873 724,978 - - Total deferred outflows of resources 14,602,928 292,131 14,895,059 - - Total assets and deferred outflows of resources 186,584,143$ 52,612,573$ 239,196,716$ 29,832,114$ 1,344,984$ Component Units City of Richfield Statement of Net Position December 31, 2024 Page 57 of 579 See notes to basic financial statements. 33 Primary Government Governmental Activities Business-Type Activities Total Housing and Redevelopment Authority Economic Development Authority Liabilities Accounts payable 1,851,115$ 1,055,138$ 2,906,253$ 94,254$ 52,791$ Salaries and benefits payable 1,293,096 177,839 1,470,935 - - Deposits payable 568,198 - 568,198 5,698 - Due to other governments 415,515 385,554 801,069 49,409 - Due to primary government - - - 691,284 - Interest payable 519,010 166,863 685,873 - - Unearned revenue 1,120,398 - 1,120,398 - - Claims and judgements payable 2,888,951 - 2,888,951 - - Net G.O. bonds payable Payable within one year 3,710,000 1,225,000 4,935,000 - - Payable after one year 50,569,358 12,903,394 63,472,752 - - Lease liability Payable within one year 25,326 - 25,326 - - Payable after one year 23,370 - 23,370 - - Compensated absences payable Payable within one year 748,990 119,368 868,358 - - Payable after one year 2,131,740 265,690 2,397,430 - - Net pension liability Payable after one year 12,139,089 1,195,271 13,334,360 - - Total OPEB liability Payable within one year 95,180 3,948 99,128 - - Payable after one year 1,957,612 81,199 2,038,811 - - Total liabilities 80,056,948 17,579,264 97,636,212 840,645 52,791 Deferred Inflows of Resources Deferred inflows of resources related to pensions 18,363,987 836,847 19,200,834 - - Deferred inflows of resources related to OPEB 1,009,393 41,869 1,051,262 - - Advance appropriations - State shared taxes 1,500,291 - 1,500,291 - - Deferred inflows of resources related to leases receivable 4,328,161 - 4,328,161 - - Total deferred inflows of resources 25,201,832 878,716 26,080,548 - - Net Position Net investment in capital assets 73,327,481 26,509,108 93,119,889 - - Restricted for Debt service 6,353,054 - 6,353,054 - - Law enforcement drug forfeitures 280,133 - 280,133 - - Recreation services donations 104,772 - 104,772 - - Wood Lake Nature Center donations 262,527 - 262,527 - - Public Safety Aid 1,510,309 - 1,510,309 - - Public Health assessment 139,348 - 139,348 - - Public Health - opioid settlement 300,825 - 300,825 - - Wood lake Endowment 259,080 - 259,080 - - Capital Projects - - - 16,419,298 - Grants and donations - - - 112,696 - Unrestricted (1,212,166) 7,645,485 13,150,019 12,459,475 1,292,193 Total net position 81,325,363 34,154,593 115,479,956 28,991,469 1,292,193 Total liabilities, deferred inflows of resources, and net position 186,584,143$ 52,612,573$ 239,196,716$ 29,832,114$ 1,344,984$ Component Units City of Richfield Statement of Net Position December 31, 2024 Page 58 of 579 See notes to basic financial statements. 34 Program Revenues Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary Government Governmental activities General government 5,044,942$ 1,435,328$ 88,735$ 19,141$ Public safety 19,121,775 584,490 2,179,713 - Public works 11,460,779 3,076,726 85,870 4,287,584 Culture and recreation 5,512,708 2,437,858 341,652 55,926 Community development 1,845,055 1,365,053 - - Interest on long-term debt 1,264,578 - - - Total governmental activities 44,249,837 8,899,455 2,695,970 4,362,651 Business-type activities Municipal Liqour 12,792,792 14,053,489 - - Water and Sewer Utility 9,990,930 9,348,958 - 3,827 Storm Sewer 2,325,095 2,298,391 15,000 - Total business-type activities 25,108,817 25,700,838 15,000 3,827 Total primary government 69,358,654$ 34,600,293$ 2,710,970$ 4,366,478$ Component Units Housing and Redevelopment Authority 9,300,974$ -$ 6,777,256$ -$ Economic Development Authority 556,510 - - - Total component units 9,857,484$ -$ 6,777,256$ -$ General revenues Property taxes, levied for general purposes Property taxes, levied for debt service Tax increments Lodging taxes Grants and contributions not restricted to specific programs Unrestricted investment income Miscellaneous Gain (loss) on sale of assets Transfers Total general revenues and transfers Change in net position Net position - beginning Correction of error (See Note 18) Net position - beginning restated Net position - ending Functions/Programs City of Richfield Statement of Activities Year Ended December 31, 2024 Page 59 of 579 35 Governmental Activities Business-Type Activities Total Housing and Redevelopment Authority Economic Development Authority (3,501,738)$ -$ (3,501,738)$ -$ -$ (16,357,572) - (16,357,572) - - (4,010,599) - (4,010,599) - - (2,677,272) - (2,677,272) - - (480,002) - (480,002) - - (1,264,578) - (1,264,578) - - (28,291,761) - (28,291,761) - - - 1,260,697 1,260,697 - - - (638,145) (638,145) - - - (11,704) (11,704) - - - 610,848 610,848 - - (28,291,761) 610,848 (27,680,913) - - (2,523,718) - - (556,510) (2,523,718) (556,510) 23,347,277 - 23,347,277 706,530 599,364 4,049,211 - 4,049,211 - - - - - 7,567,622 - 8,269 - 8,269 - - 3,392,552 1,895 3,394,447 - - 1,905,722 552,702 2,458,424 955,446 57,775 81,590 153 81,743 20,415 2,515 110,431 15,000 125,431 - - 950,400 (860,088) 90,312 - - 33,845,452 (290,338) 33,555,114 9,250,013 659,654 5,553,691 320,510 5,874,201 6,726,295 103,144 78,608,855 31,264,246 109,873,101 22,265,174 1,189,049 (2,837,183) 2,569,837 (267,346) - - 75,771,672 33,834,083 109,605,755 22,265,174 1,189,049 81,325,363$ 34,154,593$ 115,479,956$ 28,991,469$ 1,292,193$ Primary Government Component Units Net (Expense) Revenues and Changes in Net Position Page 60 of 579 36 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 61 of 579 37 FUND FINANCIAL STATEMENTS CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 62 of 579 See notes to basic financial statements. 38 Debt Service General Ice Arena Elections Improvement Bonds Assets Cash and temporary investments 11,208,112$ -$ 2,132,579$ 6,575,943$ Interest receivable 10,816 266 64,676 7,152 Property taxes receivable 84,093 - - 157,397 Accounts receivable 74,903 299,209 - - Leases receivable - 86,288 4,264,548 - Due from other funds 1,670,041 - - - Due from other governments 428,171 - - 30,874 Special assessment receivable Delinquent 2,568 - - - Deferred 5,789 - - 100,698 Advances to other funds - - - - Prepaid items 317,975 - - - Total assets 13,802,468$ 385,763$ 6,461,803$ 6,872,064$ Liabilities Accounts and contracts payable 255,310 60,646 651 - Accrued salaries payable 1,177,054 35,714 - - Deposits payable - - 21,772 - Due to other funds - 1,670,041 - - Due to other governments 218,852 11,989 - - Advances from other funds - 586,525 - - Unearned revenue 30,000 - 36,947 - Total liabilities 1,681,216 2,364,915 59,370 - Deferred Inflows of Resources Unavailable revenue - property taxes 84,093 - - 157,397 Unavailable revenue - special assessments 8,357 - - 100,698 Deferred inflows of resources related to leases receivable - 83,581 4,007,046 - Advance appropriations - State shared taxes - - - - Unavailable revenue - State shared taxes - - - - Total deferred inflows of resources 92,450 83,581 4,007,046 258,095 Fund Balances Nonspendable 317,975 - - - Restricted - - - 6,613,969 Committed - - 2,395,387 - Unassigned 11,710,827 (2,062,733) - - Total fund balances 12,028,802 (2,062,733) 2,395,387 6,613,969 Total liabilities, deferred inflows of resources, and fund balances 13,802,468$ 385,763$ 6,461,803$ 6,872,064$ Special Revenue City of Richfield Balance Sheet - Governmental Funds December 31, 2024 Page 63 of 579 39 Capital Improvements Park Capital Projects Nonmajor Governmental Funds Total Governmental Funds 7,460,981$ 11,380,918$ 7,571,057$ 46,329,590$ 21,389 3,154 17,048 124,501 3,246 - - 244,736 158 26,054 821,414 1,221,738 - - 243,161 4,593,997 - - - 1,670,041 446,685 - 103,279 1,009,009 1,443 - 11,603 15,614 279,474 - 129,089 515,050 - 155,940 213,818 369,758 - - 1,389 319,364 8,213,376$ 11,566,066$ 9,111,858$ 56,413,398$ 840,752 163,527 72,182 1,393,068 - - 14,748 1,227,516 540,391 6,035 - 568,198 - - - 1,670,041 7,175 - 22,080 260,096 - 155,940 - 742,465 1,053,451 - - 1,120,398 2,441,769 325,502 109,010 6,981,782 3,246 - - 244,736 280,917 - 140,692 530,664 - - 237,534 4,328,161 1,500,291 - - 1,500,291 446,486 - - 446,486 2,230,940 - 378,226 7,050,338 - - 1,389 319,364 - 10,686,292 2,856,994 20,157,255 3,540,667 554,272 5,766,239 12,256,565 - - - 9,648,094 3,540,667 11,240,564 8,624,622 42,381,278 8,213,376$ 11,566,066$ 9,111,858$ 56,413,398$ Capital Projects Page 64 of 579 40 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 65 of 579 See notes to basic financial statements. 41 City of Richfield Reconciliation of the Balance Sheet to the Statement of Net Position - Governmental Funds December 31, 2024 Total fund balances - governmental funds 42,381,278$ Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds. Cost of capital assets 197,102,930 Less accumulated depreciation/amortization (100,503,089) Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end consist of: G.O. bonds payable (52,555,000) Unamortized bond premiums (1,724,358) Lease liability (48,696) Total OPEB liability (2,023,553) Net pension liability (11,680,431) Delinquent receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds. Property taxes 244,736 Special assessments 15,614 Deferred outflows of resources and deferred inflows of resources are created as a result of various differences related to pensions and OPEB that are not recognized in the governmental funds. Deferred inflows of resources related to pensions (18,043,762) Deferred inflows of resources related to OPEB (995,016) Deferred outflows of resources related to pensions 13,805,803 Deferred outflows of resources related to OPEB 686,189 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Deferred special assessments 515,050 State shared taxes 446,486 Governmental funds do not report a liability for accrued interest on long-term debt until due and payable. (519,010) The assets and deferred outflows of resources and liabilities and deferred inflows of resources of certain Internal Service Funds are included in governmental activities in the statement of net position. Net position of internal service funds 10,536,745 Allocation to reflection consolidation of internal service fund activities related to enterprise funds 2,992,163 Allocation to reflection consolidation of internal service fund activities related to component unit 691,284 81,325,363$ Total net position - governmental activities Amounts reported for governmental activities in the Statement of Net Position are different because: Page 66 of 579 See notes to basic financial statements. 42 Debt Service General Ice Arena Elections Improvement Bonds Revenues Taxes 22,211,293$ -$ -$ 4,049,211$ Licenses and permits 1,133,987 - - - Intergovernmental 5,173,077 - 16,547 - Charges for services 2,011,939 1,239,574 - - Fines and forfeitures 221,719 - - - Special assessments 19,141 - - 39,253 Interest earnings 198,320 2,208 165,075 156,003 Miscellaneous 27,950 54,178 340,555 - Total revenues 30,997,426 1,295,960 522,177 4,244,467 Expenditures Current Legislative/executive 1,162,137 - 214,979 - Administrative services 1,250,239 - - - Finance 1,359,854 - - - Public safety 11,907,830 - - - Fire 5,902,146 - - - Community development 1,736,430 - - - Public works 5,104,976 - - - Recreation services 2,324,290 1,302,004 - - Capital outlay Public works - - - - Recreation services - 19,530 - - Debt service Principal - - - 3,340,000 Interest and other charges - 8,217 - 1,299,015 Total expenditures 30,747,902 1,329,751 214,979 4,639,015 Excess of revenues over (under) expenditures 249,524 (33,791) 307,198 (394,548) Other Financing Sources (Uses) Issuance of debt - - - - Bond premium - - - - Transfers in 622,290 500,000 - 745,224 Transfers out (330,000) - - - Total other financing sources (uses)292,290 500,000 - 745,224 Net change in fund balances 541,814 466,209 307,198 350,676 Fund Balances Beginning of year 11,486,988 (2,528,942) 2,355,535 6,263,293 Change within financial reporting entity (Note 18)- - - - Correction of error (See Note 18)- - (267,346) - Beginning of year, restated 11,486,988 (2,528,942) 2,088,189 6,263,293 End of year 12,028,802$ (2,062,733)$ 2,395,387$ 6,613,969$ Special Revenue City of Richfield Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended December 31, 2024 Page 67 of 579 43 Formerly Nonmajor Fund Capital Improvements Park Capital Projects Nonmajor Governmental Funds Total Governmental Funds 1,208,000$ -$ 2,798,191$ 30,266,695$ - - - 1,133,987 2,523,253 - 1,295,188 9,008,065 - - 961,064 4,212,577 - - 33,295 255,014 136,934 - 131,014 326,342 464,957 72,991 355,357 1,414,911 65,545 95,225 438,928 1,022,381 4,398,689 168,216 6,013,037 47,639,972 - - 482,143 1,859,259 - - - 1,250,239 - - - 1,359,854 - - 256,862 12,164,692 - - - 5,902,146 - - - 1,736,430 414,479 - 206,585 5,726,040 - 4,013 1,175,311 4,805,618 4,526,071 - - 4,526,071 - 1,592,171 64,375 1,676,076 - - 850,000 4,190,000 - 113,405 26,731 1,447,368 4,940,550 1,709,589 3,062,007 46,643,793 (541,861) (1,541,373) 2,951,030 996,179 - 10,000,000 - 10,000,000 - 686,292 - 686,292 524,500 500,000 700,767 3,592,781 (1,708,767) (20,000) (1,991,614) (4,050,381) (1,184,267) 11,166,292 (1,290,847) 10,228,692 (1,726,128) 9,624,919 1,660,183 11,224,871 (370,703) - 8,580,084 25,786,255 - 1,615,645 (1,615,645) - 5,637,498 - - 5,370,152 5,266,795 1,615,645 6,964,439 31,156,407 3,540,667$ 11,240,564$ 8,624,622$ 42,381,278$ Capital Projects Page 68 of 579 See notes to basic financial statements. 44 11,224,871$ Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlays 3,589,594 Depreciation/amortization expense (3,640,420) Some expenses are recognized as paid in the governmental funds but recognized as the expense is incurred in the Statement of Activities. Total OPEB liability (13,297) Principal payments on long-term debt are recognized as expenditures in the governmental funds but as an increase in the net position in the Statement of Activities. Bond principal payments 4,190,000 Lease payments 25,152 Governmental funds report the effects of bond premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. (558,435) Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due and thus requires use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. 54,933 Proceeds from long-term debt are recognized as another financing source in the governmental funds but have no impact on the changes in net position in the Statement of Activities. (10,000,000) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. State shared taxes 273,486 Governmental funds recognize pension contributions as expenditures at the time of payment whereas the Statement of Activities factors in items related to pensions on a full accrual perspective. Pension expense 640,443 Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue (loss) of internal service funds are reported with governmental activities. Investment earnings 490,811 Transfers - net 1,408,000 Gain on sale of capital assets 110,431 Consolidation of internal service fund activities with governmental activities (2,198,389) Delinquent property tax and special assessment receivables will be collected in subsequent years, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the funds. Property taxes (72,016) Special assessments 28,527 5,553,691$ Change in net position - governmental activities Total net change in fund balances - governmental funds Expenditures, and Changes in Fund Balances to the City of Richfield Reconciliation of the Statement of Revenues, Statement of Activities - Governmental Funds Year Ended December 31, 2024 Amounts reported for governmental activities in the Statement of Activities are different because: Page 69 of 579 See notes to basic financial statements. 45 Original Final Actual Amounts Revenues Taxes 22,220,051$ 22,220,051$ 22,211,293$ (8,758)$ Special assessments - - 19,141 19,141 Licenses and permits 1,145,000 1,007,550 1,133,987 126,437 Intergovernmental 4,885,289 5,467,524 5,173,077 (294,447) Charges for services 2,011,720 1,650,240 2,011,939 361,699 Fines and forfeitures 200,000 200,000 221,719 21,719 Interest earnings 35,000 75,000 198,320 123,320 Miscellaneous 42,060 60,750 27,950 (32,800) Total revenues 30,539,120 30,681,115 30,997,426 316,311 Expenditures Current Legislative/executive 1,265,380 1,224,208 1,162,137 (62,071) Administrative services 1,263,950 1,298,423 1,250,239 (48,184) Finance 912,618 1,398,838 1,359,854 (38,984) Public safety 11,817,265 11,769,553 11,907,830 138,277 Fire 5,552,889 5,744,315 5,902,146 157,831 Community development 1,849,550 1,810,320 1,736,430 (73,890) Public works 5,182,120 5,219,890 5,104,976 (114,914) Recreation services 2,326,037 2,325,548 2,324,290 (1,258) Total expenditures 30,169,809 30,791,095 30,747,902 (43,193) Excess of revenues over (under) expenditures 369,311 (109,980) 249,524 359,504 Other Financing Sources (Uses) Transfers in 360,090 531,980 622,290 90,310 Transfers out (729,401) (422,000) (330,000) 92,000 Total other financing sources (uses)(369,311) 109,980 292,290 182,310 Net change in fund balances -$ -$ 541,814 541,814$ Fund Balances Beginning of year 11,486,988 End of year 12,028,802$ Variance with Final Budget - Over (Under) Budgeted Amounts City of Richfield Statement of Revenues, Expenditures, and Changes in Fund Balances - Year Ended December 31, 2024 Budget and Actual - General Fund Page 70 of 579 See notes to basic financial statements. 46 City of Richfield Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Ice Arena Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Charges for services 1,180,390$ 1,204,290$ 1,239,574$ 35,284$ Interest earnings - - 2,208 2,208 Miscellaneous 62,210 70,210 54,178 (16,032) Total revenues 1,242,600 1,274,500 1,295,960 21,460 Expenditures Current Recreation services 1,315,963 1,300,450 1,302,004 1,554 Debt service Interest and other charges 8,220 8,220 8,217 (3) Capital outlay Recreation services 20,000 20,000 19,530 (470) Total expenditures 1,344,183 1,328,670 1,329,751 1,081 Excess of revenues over (under) expenditures (101,583) (54,170) (33,791) 20,379 Other Financing Sources Transfers in 500,000 500,000 500,000 - Net change in fund balances 398,417$ 445,830$ 466,209 20,379$ Fund Balances Beginning of year (2,528,942) End of year (2,062,733)$ Budgeted Amounts Variance with Final Budget - Over (Under) Page 71 of 579 See notes to basic financial statements. 47 City of Richfield Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Elections Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Intergovernmental -$ -$ 16,547$ 16,547$ Interest earnings 5,000 10,000 165,075 155,075 Miscellaneous 363,000 315,000 340,555 25,555 Total revenues 368,000 325,000 522,177 197,177 Expenditures Current General government 295,173 281,340 214,979 (66,361) Total expenditures 295,173 281,340 214,979 (66,361) Net change in fund balances 72,827$ 43,660$ 307,198 263,538$ Fund Balances Beginning of year 2,355,535 Correction of error (Note 18)(267,346) Beginning of year, restated 2,088,189 End of year 2,395,387$ Budgeted Amounts Variance with Final Budget - Over (Under) Page 72 of 579 See notes to basic financial statements. 48 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Total Internal Service Funds Assets Current assets Cash and temporary investments 2,971,894$ 3,133,670$ 2,970,771$ 9,076,335$ 11,933,591$ Interest receivable 4,977 6,882 13,482 25,341 22,123 Accounts receivable 218 2,479,399 582,765 3,062,382 2,096 Special assessments receivable - 446,682 23 446,705 - Due from other governments 5,040 50,117 15,000 70,157 - Advances to other funds - - - - 71,592 Inventories 1,715,996 - - 1,715,996 - Prepaid items 23,121 215,073 - 238,194 14,336 Total current assets 4,721,246 6,331,823 3,582,041 14,635,110 12,043,738 Noncurrent assets Advances to other funds - - - - 301,115 Capital assets not being depreciated Land 499,188 53,550 85,935 638,673 - Construction in progress - 313,864 176,018 489,882 759,178 Capital assets being depreciated Buildings and structures 5,090,657 5,405,688 - 10,496,345 13,924,725 Machinery and equipment 1,075,837 14,222,501 839,480 16,137,818 - Other improvements 253,149 32,872,304 29,783,608 62,909,061 - Less accumulated depreciation (3,756,281) (30,753,916) (15,484,087) (49,994,284) (9,331,721) Net capital assets 3,162,550 22,113,991 15,400,954 40,677,495 5,352,182 Total noncurrent assets 3,162,550 22,113,991 15,400,954 40,677,495 5,653,297 Total assets 7,883,796 28,445,814 18,982,995 55,312,605 17,697,035 Deferred Outflows of Resources Deferred outflows of resources related to pensions 116,620 139,186 7,452 263,258 101,020 Deferred outflows of resources related to OPEB 9,381 19,411 81 28,873 9,916 Total deferred outflows of resources 126,001 158,597 7,533 292,131 110,936 Total assets and deferred outflows of resources 8,009,797$ 28,604,411$ 18,990,528$ 55,604,736$ 17,807,971$ City of Richfield Statement of Net Position - Proprietary Funds December 31, 2024 Business-Type Activities - Enterprise Funds Page 73 of 579 See notes to basic financial statements. 49 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Total Internal Service Funds Liabilities Current liabilities Accounts and contracts payable 647,700$ 276,087$ 131,351$ 1,055,138$ 458,047$ Accrued salaries payable 76,892 91,596 9,351 177,839 65,580 Due to other governments 166,039 218,399 1,116 385,554 155,419 Accrued interest payable - 75,989 90,874 166,863 - Compensated absences payable 39,990 77,841 1,537 119,368 748,990 Bonds payable due within one year - 649,600 575,400 1,225,000 - Total OPEB liability due within one year 1,283 2,654 11 3,948 1,356 Total current liabilities 931,904 1,392,166 809,640 3,133,710 1,429,392 Noncurrent liabilities Compensated absences payable 89,010 173,260 3,420 265,690 2,131,740 Claims and judgements - - - - 2,888,951 Bonds payable - 5,745,966 7,157,428 12,903,394 - Net pension liability 529,489 631,946 33,836 1,195,271 458,658 Total OPEB liability 26,381 54,590 228 81,199 27,883 Total noncurrent liabilities 644,880 6,605,762 7,194,912 14,445,554 5,507,232 Total liabilities 1,576,784 7,997,928 8,004,552 17,579,264 6,936,624 Deferred Inflows of Resources Deferred inflows of resources related to pensions 369,678 443,545 23,624 836,847 320,225 Deferred inflows of resources related to OPEB 13,603 28,148 118 41,869 14,377 Total deferred inflows of resources 383,281 471,693 23,742 878,716 334,602 Net Position Net investment in capital assets 3,162,550 15,703,852 7,642,706 26,509,108 5,352,182 Unrestricted 2,887,182 4,430,938 3,319,528 10,637,648 5,184,563 Total net position 6,049,732 20,134,790 10,962,234 37,146,756 10,536,745 Total liabilities, deferred inflows of resources, and net position 8,009,797$ 28,604,411$ 18,990,528$ 55,604,736 17,807,971$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (2,992,163) Net position of business-type activities 34,154,593$ Business-Type Activities - Enterprise Funds City of Richfield December 31, 2024 Statement of Net Position - Proprietary Funds Page 74 of 579 See notes to basic financial statements. 50 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Totals Internal Service Funds Operating Revenues Charges for services 14,024,984$ 9,378,674$ 2,121,056$ 25,524,714$ 4,809,929$ Less: cost of sales (9,920,096) - - (9,920,096) - Total operating revenues 4,104,888 9,378,674 2,121,056 15,604,618 4,809,929 Operating Expenses Personnel services 1,815,800 2,501,047 496,594 4,813,441 1,809,655 Other services and charges 750,359 5,503,987 648,271 6,902,617 4,622,601 Depreciation 203,603 1,645,960 911,711 2,761,274 991,809 Total operating expenses 2,769,762 9,650,994 2,056,576 14,477,332 7,424,065 Operating income (loss)1,335,126 (272,320) 64,480 1,127,286 (2,614,136) Nonoperating Revenues (Expenses) Intergovernmental - 1,895 15,000 16,895 - Interest earnings 109,900 145,829 296,973 552,702 490,811 Miscellaneous revenues (expenses)28,505 (29,563) 177,335 176,277 1,931 Gain (loss) on sale of asset - 15,000 - 15,000 110,431 Interest and amortization expense - (153,518) (196,229) (349,747) - Total nonoperating revenues (expenses)138,405 (20,357) 293,079 411,127 603,173 Income (loss) before transfers 1,473,531 (292,677) 357,559 1,538,413 (2,010,963) and contributions Capital contributions from availability charges - 3,827 - 3,827 - Transfers in - - - - 1,408,000 Transfers out (860,088) - - (860,088) - Change in net position 613,443 (288,850) 357,559 682,152 (602,963) Net Position Beginning of year, as previously stated 5,436,289 19,509,954 8,948,524 33,894,767 11,139,708 Correction of error (Note 18)- 913,686 1,656,151 2,569,837 - Beginning of year 5,436,289 20,423,640 10,604,675 36,464,604 11,139,708 End of year 6,049,732$ 20,134,790$ 10,962,234$ 37,146,756 10,536,745$ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (361,642) Change in net position of business-type activities 320,510$ Business-Type Activities - Enterprise Funds City of Richfield Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Year Ended December 31, 2024 Page 75 of 579 See notes to basic financial statements. 51 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Total Internal Service Funds Cash Flows - Operating Activities Receipts from customers and users 14,023,853$ 9,596,152$ 2,169,215$ 25,789,220$ 4,915,750$ Payments to suppliers (10,407,137) (5,859,910) (564,594) (16,831,641) (2,807,647) Payments to employees (1,831,337) (2,659,533) (557,796) (5,048,666) (1,585,621) Other operating receipts 28,505 (29,563) 177,335 176,277 1,931 Net cash flows - operating activities 1,813,884 1,047,146 1,224,160 4,085,190 524,413 Cash Flows - Noncapital Financing Activities Intergovernmental revenue - 1,895 15,000 16,895 - Receipt of advances to other funds - - - - 70,176 Transfer from other funds - - - - 1,408,000 Transfer to other funds (860,088) - - (860,088) - Net cash flows - noncapital financing activities (860,088) 1,895 15,000 (843,193) 1,478,176 Cash Flows - Capital and Related Financing Activities Trunk and access charges - 3,827 - 3,827 - Principal paid on debt - (628,000) (557,000) (1,185,000) - Interest paid on debt - (195,432) (229,232) (424,664) - Proceeds from sale of capital assets - 15,000 - 15,000 110,431 Payment of due to other funds - (1,798,085) (3,839,413) (5,637,498) - Acquisition of capital assets - (508,018) (125,217) (633,235) (2,238,366) Net cash flows - capital and related financing activities - (3,110,708) (4,750,862) (7,861,570) (2,127,935) Cash Flows - Investing Activities Interest and dividends received 110,262 154,208 302,398 566,868 498,324 Net change in cash and cash equivalents 1,064,058 (1,907,459) (3,209,304) (4,052,705) 372,978 Cash and Cash Equivalents January 1 1,907,836 5,041,129 6,180,075 13,129,040 11,560,613 December 31 2,971,894$ 3,133,670$ 2,970,771$ 9,076,335$ 11,933,591$ City of Richfield Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2024 Business-Type Activities - Enterprise Funds Page 76 of 579 See notes to basic financial statements. 52 Governmental Activities - Municipal Liquor Water and Sewer Utility Storm Sewer Total Internal Service Funds Reconciliation of Operating Income (Loss) to Net Cash Flows - Operating Activities Operating income (loss)1,335,126$ (272,320)$ 64,480$ 1,127,286$ (2,614,136)$ Adjustments to reconcile operating income (loss) to net cash flows - operating activities Other revenues 28,505 (29,563) 177,335 176,277 1,931 Depreciation expense 203,603 1,645,960 911,711 2,761,274 991,809 Net pension liability expense (33,793) (187,541) (57,194) (278,528) (134,385) OPEB liability expense (20,984) (9,985) 1 (30,968) (7,742) Accounts receivable (118) 122,484 62,808 185,174 105,821 Special assessments receivable - 94,994 - 94,994 - Due from other governments (1,013) - (14,649) (15,662) - Prepaid items (1,388) (1,667) 26 (3,029) (14,166) Inventory 1,771 - - 1,771 - Accounts payable 250,247 (12,416) 82,535 320,366 (3,276) Due to other governmental units 12,688 (341,840) 1,116 (328,036) 127,061 Salaries payable 21,932 22,500 3,280 47,712 18,936 Compensated absences payable - - - - 347,225 Estimated payable for outstanding claims 17,308 16,540 (7,289) 26,559 1,705,335 Total adjustments 478,758 1,319,466 1,159,680 2,957,904 3,138,549 Net cash flows - operating activities 1,813,884$ 1,047,146$ 1,224,160$ 4,085,190$ 524,413$ Business-Type Activities - Enterprise Funds City of Richfield Statement of Cash Flows - Proprietary Funds Year Ended December 31, 2024 Page 77 of 579 See notes to basic financial statements. 53 Assets Cash and temporary investments 152,432$ Total assets 152,432$ Liabilities Accounts payable $ 25 Due to other governments 149,590 Total liabilities 149,615 Net Position 2,817$ City of Richfield Statement of Fiduciary Net Position December 31, 2024 Custodial Funds Page 78 of 579 See notes to basic financial statements. 54 Additions Interest earnings (12)$ License fee collections for State of Minnesota 22,228,250 Total additions 22,228,238 Deductions Payments to State of Minnesota 22,228,250 Transfers out 90,312 Total deductions 22,318,562 Change in net position (90,324) Net Position Beginning of year 93,141 End of year $ 2,817 City of Richfield Statement of Changes in Fiduciary Net Position Year Ended December 31, 2024 Custodial Funds Page 79 of 579 55 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Summary of Significant Accounting Policies The City of Richfield (the City) was incorporated February 26, 1908. Since 1964, the City has operated under a Council-Manager form of government, as authorized by its City Charter. The accounting policies of the City conform to generally accepted accounting principles, as applied to governmental units by the U.S. Governmental Accounting Standards Board (GASB). The following is a summary of the more significant policies: B. Reporting Entity The financial statements present the City and its component units. The City includes all funds, organizations, institutions, agencies, departments, and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the general purpose financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organization's governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens, on the City. As a result of applying the component unit definition criteria above, certain organizations have been defined and are presented in this report as follows: • Blended Component Units - Reported as if they were part of the City. • Discretely Presented Component Units - Entails reporting the component unit financial data in a column separate from the financial data of the City. • Related Organizations - The relationship of the City with the entity is disclosed. For each of the categories above, the specific entities are identified as follows: • Blended Components Units: The City has no blended component units. • Discretely Presented Component Units: - Housing and Redevelopment Authority (HRA) in and for the City of Richfield and Economic Development Authority (EDA) in and for the City of Richfield The HRA was established on November 12, 1974, per Minnesota Statute § 462.426 (Minnesota Housing and Redevelopment Act of 1947) and is governed by a five-member commission appointed by the Mayor. The HRA was formed by the City to provide housing and redevelopment assistance to Richfield citizens and businesses. The HRA provides this assistance through the general taxes, the use of Community Development Block Grants, and the establishment of tax increment and tax abatement financing districts. The HRA also operates the Section 8 rental subsidy program as a direct recipient from the Department of Housing and Urban Development. As the City appoints the HRA commission and has the ability to hire or dismiss those persons responsible for its day-to-day operations, the HRA is considered a component unit of the City. Page 80 of 579 56 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Reporting Entity (Continued) The EDA was established May 9, 2017 per Minnesota Statutes §§ 469.090 through 469.108 and some but not all of the powers of a housing and redevelopment authority under Minnesota Statutes §§ 469.001 through 469.047. The EDA is governed by a five-member commission. Two commissioners shall be members of the City Council and three commissioners shall be members at large. The three at large commissioners shall be the three at large commissioners of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. The EDA was formed to provide resources for economic development in Richfield, including the Kids @ Home program, Transformation Loan program, apartment remodeling programs and business development programing. Financial statements of the HRA can be obtained from the administrative offices at City Hall: Richfield Housing and Redevelopment Authority 6700 Portland Avenue South Richfield, Minnesota 55423 Financial Statements of the EDA can be obtained from the administrative offices at City Hall: Richfield Economic Development Authority 6700 Portland Avenue South Richfield, Minnesota 55423 • Related Organizations - The City has no related organizations. C. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or business-type activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or business-type activity; and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Page 81 of 579 57 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the Proprietary Fund and Fiduciary Fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The custodial funds report using the economic resources measurement focus and the accrual basis of accounting. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, OPEB obligations, and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. The government reports the following major governmental funds: General Fund – This fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Ice Arena Fund - This fund accounts for the revenues earned and other resources generated by the operation of the City's two sheet ice arena facility. Elections Fund – This fund was established to isolate the large fluctuation over time in election costs from year to year. The fund provides voter registration services, voter information services and election administration. Funding for the costs of elections services is derived from rental revenues from cellular telephone carriers who rent space for their antennas on City infrastructure. Improvement Bond Debt Service Fund – This fund is used for the accumulation of resources for payment of principal and interest for outstanding general obligation issues. Capital Improvement Capital Projects Fund – This fund is used to account for projects related to public improvement within the City. Page 82 of 579 58 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Park Capital Projects Fund – This fund is used to account for projects related to parks and recreation within the City. The government reports the following major proprietary funds: Municipal Liquor Fund – This fund accounts for the operations of the four municipal liquor stores operated by the City. Water and Sewer Utility Fund – This fund accounts for the water and sewer service charges which are used to finance the water system and sanitary sewer system operating expenses. Storm Sewer Fund – This fund accounts for storm sewer user fees, which are used to finance storm sewer system operating expenses. Additionally, the government reports the following fund types: Internal Service Funds – These fund account for fleet management, data processing, risk management, building maintenance services, and compensated absences, provided to other funds or departments on a cost reimbursement basis. Custodial Funds – These funds are used to account for the City's collection of fees to be remitted to the State of Minnesota such as building permit-surcharges, snowmobile-boat license fees, and motor vehicle license fees. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City of Richfield. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds, the liquor, water and sewer, and storm sewer funds, and the City's internal service funds are from the sale of product and charges to customers for services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for an allowable use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. Budgets for the General Fund and Special Revenue Funds, excluding the Wood Lake Endowment Fund, are adopted on a basis consistent with generally accepted accounting principles. Budgetary control for Capital Projects Funds is accomplished through the use of project controls and for the Debt Service Funds by bond indentures. Page 83 of 579 59 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Budgets Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General, Special Revenue, and Capital Projects Funds. Encumbrances outstanding at year-end are reported within restrictions, commitments, or assignments of fund balance, as appropriate, since they do not constitute expenditures or liabilities. At December 31, 2024 there are no significant encumbrances outstanding in any major or nonmajor fund. F. Legal Compliance - Budgets The City follows these procedures in establishing the budgetary data reflected in the financial statement and set forth in Sections 7.05 and 7.06 of the City Charter. 1. The City Manager shall, at a special budget meeting of the Council on or before September 15, submit to the Council a proposed budget and an explanatory budget message in a form and manner as prescribed by the City Charter. 2. At the City Council meeting, where the proposed budget and tax levy is submitted for adoption, the Council shall determine the place and time of the public hearing on the budget. Public hearings are conducted to obtain taxpayer comments. 3. The Council shall adopt the budget no later than the last date established by law for the County Auditor to levy taxes. The budget shall set forth the total for each budgeted fund and each department with such segregation as to objects and purposes of expenditures as the Council deems necessary for purposes of budget control for the General and Special Revenue Funds. 4. Reported budget amounts are as originally adopted or as amended by Council-approved budget transfers. During 2024 the General Fund budget was amended to increase budgeted revenues by $141,995, increase budgeted expenditures by $621,286 and increase budgeted net transfers by $479,291. The City Manager is authorized to transfer budgeted amounts between divisions within any department; however, any revisions that alter the total expenditures of any department must be approved by the City Council with formal adoption by resolution. All budgeted appropriations lapse at the end of the year. 5. Expenditures may not legally exceed budgeted appropriations at the total department level. Monitoring of budgets is maintained at the expenditure category (i.e., salaries, wages, and benefits; material, supplies, and services; and capital outlay) within each activity. Budgetary monitoring, by departments or divisions and by category, is required by the City Charter. Page 84 of 579 60 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. Excess of Expenditures Over Appropriations Expenditures exceeded appropriations (budget) in the following individual funds for the year ended December 31, 2024: Excess of Expenditures Over Budget Actual Appropriations Major Ice Arena 1,328,670$ 1,329,751$ 1,081$ Nonmajor Public Safety Compliance 17,500 56,888 39,388 Recreation Contribution 145,500 146,685 1,185 Swimming Pool 584,230 634,791 50,561 Fund H. Deficit Fund Equity The following funds had fund equity deficits as December 31, 2024: Amount Major Ice Arena 2,062,733$ Fund I. Cash, Cash Equivalents, and Investments Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments, with the exception of non-pooled investments related to the 2020A bond issuance. Earnings from such pooled investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Certain investments for the City are reported at fair value as disclosed in Note 2. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Page 85 of 579 61 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Cash, Cash Equivalents, and Investments (Continued) Investment income is accrued at the balance sheet date. For purposes of the statement of cash flows, the Proprietary Funds consider investments held in the City's cash management pool to be cash equivalents because this pool is used essentially as a demand deposit account. 1. Short-Term Interfund and Primary Government/Component Unit Receivable/Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "advances to other funds" or "advances from other funds" on the balance sheet. Payables/receivables between the primary government and its component unit are classified as "due to/from component unit" on the primary government's balance sheet and "due to/from primary government" on the component unit's balance sheet. Property taxes and special assessments have been reported net of estimated uncollectible accounts. (See Note 1H and I). Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. J. Property Tax Revenue Recognition The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 5 and December 5 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. 1. Government-Wide Financial Statements The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. 2. Governmental Fund Financial Statements The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at the year-end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflows of resources because they are not available to finance current expenditures. Page 86 of 579 62 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Special Assessment Revenue Recognition Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are allocated first to the County's costs of administering all tax forfeit properties. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. 1. Government-Wide Financial Statements The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. 2. Governmental Fund Financial Statements Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funding are completely offset by deferred inflows of resources. L. Inventories Inventories are valued at cost, on a first-in, first-out basis. The cost of inventory in the Proprietary Funds is recognized as cost of sales or expense of operation at the time the inventory is sold or used. M. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Accordingly, prepaid items are accounted for using the consumption method, where expense is recognized in the periods that the service or benefit is provided. N. Lease Receivable The City's lease receivable is measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. Page 87 of 579 63 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Land Held for Resale Land held for resale represents property purchased by the City with the intent to resell in the future for redevelopment. These assets are stated at the lower of cost of net realizable value. P. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Infrastructure assets that are reported within the government-wide financial statements include assets that were acquired on or after 1960. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the primary government, as well as the component units, is depreciated using the straight-line method, while infrastructure assets are depreciated using the composite method. Capital assets are depreciated over the following estimated useful lives: Assets Buildings and structures 20 - 50 Machinery and equipment 3 - 15 Furniture and fixtures 10 Other improvements 10 - 50 Storm sewers 25 - 30 Streets 25 Street lights 25 Distribution and collection systems 30 - 50 Years Page 88 of 579 64 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and personal leave pay benefits. In addition, the fire employees are paid one-third of their unused sick pay upon termination. All vacation pay is accrued when incurred in the government-wide and proprietary fund financial statements. The liability for compensated absences reported in the Statement of Net Position consists of leave that has not been used that is attributable to services already rendered, accumulates, and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or settled through noncash means and certain other types of leave. Compensated absences for governmental funds are accounted for in the Compensated Absences Internal Service Fund. R. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. S. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. T. Fund Equity In the fund financial statements, governmental funds report fund balance classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows:  Nonspendable Fund Balances - Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets.  Restricted Fund Balances - Consists of amounts related to externally imposed constraints established by creditors, grantors, or contributors; or constraints imposed by state statutory provisions.  Committed Fund Balances - Consists of internally imposed constraints that are established by resolution of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Page 89 of 579 65 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) T. Fund Equity (Continued) • Assigned Fund Balances - Consists of internally imposed constraints. These constraints consist of amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, assigned amounts represent intended uses established by the governing body itself or by an official to which the governing body delegates the authority. Pursuant to City Council resolution, the City's Finance Manager is authorized to establish assignments of fund balance. • Unassigned Fund Balances - The residual classification for the General Fund which also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources and then use unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use, it is the City's policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. U. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time. The City has two items that qualifies for reporting in this category. The City presents deferred outflows of resources on the Statement of Net Position for deferred outflows or resources related to pensions and OPEB for various estimate differences that will be amortized and recognized over future years. In addition to liabilities, the statement of financial position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has seven items that qualify for reporting in this category. Five of the items reported arise under the modified accrual basis of accounting and are reported in the Governmental Fund Balance Sheet as unavailable revenue, deferred inflows of resources related to lease receivables, and advanced appropriations - state shared taxes. The governmental funds report unavailable revenues from three sources: delinquent property taxes, special assessments, and state shared taxes. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City presents deferred inflows or resources on the Statement of Net Position for deferred inflows of resources related to state shared taxes, lease receivable, pensions and OPEB for various estimate differences that will be amortized and recognized over future years. V. Net Position In the government-wide and proprietary fund financial statements, net position represents the difference between assets and deferred outflows of resources, and liabilities and deferred inflows of resources. A reclassification of $6,716,700 was made between the net investment in capital assets net position class and unrestricted net position in the total column of the Statement of Net Position to recognize the portion of debt attributable to capital assets donated from governmental activities to business-type activities. Net position is displayed in three components shown on the following page: Page 90 of 579 66 City of Richfield Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) V. Net Position (Continued) Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. Unspent bond proceeds are added back to the calculation. Restricted Net Position –Consists of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Unrestricted Net Position –All other net positions that do not meet the definition of "restricted" or "invested in capital assets." W. Targeted Fund Balance The City has established a targeted fund balance policy for its General Fund where it will strive to maintain an unassigned fund balance of an amount not less than 40% of the current year end actual General Fund expenditures. The dollar amount of the target may fluctuate with each year's actual results. X. Interfund Transactions Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an interfund loan receivable or payable which offsets the movement of cash between funds. All other interfund transactions are reported as transfers. Y. Use of Estimates The preparation of financial statements, in accordance with accounting principles generally accepted in the United States of America, requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. NOTE 2 - DEPOSITS AND INVESTMENTS A. Deposits Minnesota Statutes require that all deposits with financial institutions must be collateralized in an amount equal to 110% of deposits in excess of FDIC insurance. B. Investments The City, HRA and EDA are authorized by Minnesota Statutes Chapter 118A to invest in the following: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in a) above. 3. General obligations of the State of Minnesota or any of its municipalities. 4. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. Page 91 of 579 67 City of Richfield Notes to Basic Financial Statements NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) 5. Commercial paper, issued by United States corporations of their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. 6. Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities in the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 7. Guaranteed investment contracts (GIC) issued or guaranteed by a United States commercial bank or domestic branch of a foreign bank or a United States insurance company or its Canadian or United States subsidiary. 8. Mortgage-backed securities that are direct obligations or guaranteed or insured issues of the United States, its agencies, and its instrumentality's, or organizations created by an act of Congress. The City's investments are categorized by level of risk as provided in GASB Statement No. 40, Deposit and Investment Risk Disclosures, in the following manner: Custodial Credit Risk: This is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City's investment policies do not formally address this risk, but the City typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. To protect against potential fraud and embezzlement, the investments of the City, HRA and EDA are secured through a third party custody and safekeeping arrangement. Interest Rate Risk: This is the risk to control the risk of market price changes, the City's formal investment policy recommends investment maturities shall match the City's projected cash flows. Investments in securities with maturities in excess of two years shall be placed with the intention to hold the security until maturity. Credit Risk: To control risk, investments purchased shall include those authorized by Minnesota Statutes, such as U.S. Government Securities and the highest quality commercial paper. The ratings assigned to these securities are noted in the table below. The City's investment policy does not further address credit risk. Concentration of Credit Risk: The City's investment policy places no limit on the amount the City may invest in any one issuer. Investments in Federal Home Loan Bank government securities exceed 5% of pooled investments. The City participates in the Minnesota Municipal Money Market Fund (the 4M Fund) which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities and is a customized cash management and investment program for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M Fund is a unique investment alternative designed to address the daily and long term investment needs of Minnesota cities and other municipal entities. Allowable under Minnesota Statutes, the 4M Fund is comprised of top quality, rated investments. Page 92 of 579 68 City of Richfield Notes to Basic Financial Statements NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) The Minnesota Municipal Money Market Fund operates in accordance with appropriate State laws and regulations. The 4M Fund is an external investment pool not registered with the Securities and Exchange Commission (SEC): however, it follows the same regulatory rules of the SEC under rule 2a7. The reported value of the pool is the same as the fair value of the pool share. In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities are valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawal prior to the 14-day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. Money market mutual funds invested as part of the City's trust arrangement at Principal consist entirely of money market funds and are unrated. The following is a summary of the City's, HRA's and EDA's investments, stated at fair value. The majority of the HRA and EDA investments are in the investment pool of the City. Therefore, the HRA and EDA investments are not segregated for disclosure. Nonpooled investments relate to the 2020A bond issuance. As of December 31, 2024, the City, HRA and EDA had the following investments and maturities (in years): Moody's Percent of Fair Less Years Ratings Total Value Than 1 Year 1 - 5 Pooled Investments Money Markets NR 20.74%18,390,915$ 18,390,915$ -$ U.S. Treasury Securities AAA 16.21%14,374,070 14,374,070 - Other government backed securities AA+7.71%6,837,507 5,930,255 907,252 4M NR 40.96%36,320,265 36,320,265 - 4M Plus NR 14.39%12,757,589 12,757,589 - Total Pooled Investments 100.00%88,680,346 87,773,094 907,252 Non-pooled Investment 4M Plus NR 100.00%286,432 286,432 - Total Investments 88,966,778$ 88,059,526$ 907,252$ Types of Investments The City has the following recurring fair value measurements as of December 31, 2024: • $18,390,915 of investments are valued using a quoted market prices (Level 1 inputs) • $21,211,577 of investments are valued using a matrix pricing model (Level 2 inputs) Page 93 of 579 69 City of Richfield Notes to Basic Financial Statements NOTE 3 - LEASE RECEIVABLE As of December 31, 2024 the City had the following lease receivable: Current Year Issue Inflow of Balance at Date Resources Year End Woodlawn Terrace Cooperative - Property Lease 1/1/2022 1.55 %95,947$ 101,340$ Wheel Fun Rentals, LLC - Management Services Agreement 1/1/2022 1.27 130,581 132,295 E-Clan Inc (B&J Trees) - Property Lease 11/1/2022 3.24 11,006 9,526 Sprint - Site Lease Agreement (City Hall)1/1/2022 0.69 318,153 331,383 T-Mobile - Site Lease Agreement (Penn)1/1/2022 0.98 180,039 191,647 T-Mobile - Site Lease Agreement (Logan)1/1/2022 1.52 685,152 730,316 AT&T - Site Lease Agreement (Penn)1/1/2022 1.41 610,029 650,083 Verizon - Site Lease Agreement (City Hall)1/1/2022 1.41 661,333 691,550 Verizon - Site Lease Agreement (Penn)1/1/2022 1.59 1,166,298 1,258,252 American - Site Lease Agreement (66th)1/1/2022 1.31 386,042 411,317 Fortis Academy - Training Room Lease 11/1/2023 3.53 83,581 86,288 Total lease receivables 4,328,161$ 4,593,997$ Discount Description Rate For the Woodlawn Terrace Cooperative lease, the vendor paid the City $5,608 in 2024 and this will increase by 3% each year to lease ten feet of the City's property. This lease can be renewed for up to two successive five-year terms. For the Wheel Fund Rentals, LLC lease, the vendor pays the City $4,000 quarterly for renting the City owed Mini-Golf facility. The City will also be paid 10% of gross revenues from the operation, concessions and bike rentals, after $200,000 of gross revenues is received. For the E-Clan Inc. (B&J Trees) lease, the vendor paid the City $9,371 in 2024 and will increase by 5% each year to use property owned by the City for storing, displaying and selling of Christmas trees. The City may terminate this agreement without cause by giving notice of termination. For the Sprint lease, the vendor paid the City $41,495 in 2024 and will increase by 4% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for three additional five-year periods. For the T-Mobile lease, the vendor paid the City $81,430 in 2024 and will increase by 4% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for three additional five-year periods. For the AT&T lease, the vendor paid the City $41,756 in 2024 and will increase by 4% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for three additional five-year periods. Page 94 of 579 70 City of Richfield Notes to Basic Financial Statements NOTE 3 - LEASE RECEIVABLE (CONTINUED) For the Verizon lease, the vendor paid the City $98,059 in 2024 and will increase by 3% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for three additional five-year periods. For the American lease, the vendor paid the City $35,526 in 2024 and will increase by 4% each year to use property owned by the City for operating cell towers. Each term of five years and can be extend for two additional five-year periods. For the Fortis Academy lease, the vendor paid the City $1,550 monthly to lease office space from the City. The monthly fee will increase $50 annually during the three-year agreement. This lease can be renewed for an additional three-year term. Page 95 of 579 71 City of Richfield Notes to Basic Financial Statements NOTE 4 - CAPITAL ASSETS Capital asset activity for the year ended December 31, 2024: Restated Beginning Beginning Ending Balance Adjustments Balance Increases Decreases Balance Governmental activities Capital assets not being depreciated/amortized Land 9,353,605$ -$ 9,353,605$ -$ -$ 9,353,605$ Construction in progress 3,168,833 - 3,168,833 4,595,059 (1,086,636) 6,677,256 Total capital assets not being depreciated/amortized 12,522,438 - 12,522,438 4,595,059 (1,086,636) 16,030,861 Capital assets being depreciated/amortized Leased equipment (intangible right to use asset)123,705 - 123,705 - - 123,705 Buildings and structures 50,005,128 - 50,005,128 142,575 - 50,147,703 Machinery and equipment 19,859,035 - 19,859,035 1,624,540 (309,460) 21,174,115 Other improvements 10,415,028 - 10,415,028 552,424 - 10,967,452 Streets (infrastructures)121,564,737 (8,221,740) 113,342,997 - - 113,342,997 Total capital assets being depreciated/amortized 201,967,633 (8,221,740) 193,745,893 2,319,539 (309,460) 195,755,972 Less accumulated depreciation/amortization for Leased equipment (intangible right to use asset)(50,320) - (50,320) (25,161) - (75,481) Buildings and structures (20,463,602) - (20,463,602) (1,169,792) - (21,633,394) Machinery and equipment (12,177,321) - (12,177,321) (1,238,682) 309,460 (13,106,543) Other improvements (5,520,785) - (5,520,785) (497,245) - (6,018,030) Streets (Infrastructures)(67,314,417) 14,405 (67,300,012) (1,701,350) - (69,001,362) Total accumulated depreciation/amortization (105,526,445) 14,405 (105,512,040) (4,632,230) 309,460 (109,834,810) Total capital assets being Page 96 of 579 72 City of Richfield Notes to Basic Financial Statements NOTE 4 - CAPITAL ASSETS (CONTINUED) Restated Beginning Beginning Ending Balance Adjustments Balance Increases Decreases Balance Business-type activities Capital assets not being depreciated Land 638,673$ -$ 638,673$ -$ -$ 638,673$ Construction in progress 33,646 - 33,646 456,236 - 489,882 Total capital assets not being depreciated 672,319 - 672,319 456,236 - 1,128,555 Capital assets being depreciated Buildings and structures 10,496,345 - 10,496,345 - - 10,496,345 Machinery and equipment 16,227,315 - 16,227,315 16,059 (105,556) 16,137,818 Other improvements 54,517,570 8,221,740 62,739,310 169,751 - 62,909,061 Total capital assets being depreciated 81,241,230 8,221,740 89,462,970 185,810 (105,556) 89,543,224 Less accumulated depreciation for Buildings and structures (7,897,052) - (7,897,052) (213,008) - (8,110,060) Machinery and equipment (10,986,612) - (10,986,612) (642,650) 105,556 (11,523,706) Other improvements (28,440,510) (14,405) (28,454,915) (1,905,603) - (30,360,518) Total accumulated depreciation (47,324,174) (14,405) (47,338,579) (2,761,261) 105,556 (49,994,284) Total capital assets being depreciated, net 33,917,056 8,207,335 42,124,391 (2,575,451) - 39,548,940 Business-type activities capital assets, net 34,589,375$ 8,207,335$ 42,796,710$ (2,119,215)$ -$ 40,677,495$ Capital assets transferred from governmental activities to business-type activities are not reflected in the changes of capital assets because those assets were never capitalized as governmental assets prior to the transfer. Depreciation/amortization expense was charged to functions/programs of the primary government as follows: Governmental activities General Government 192,078$ Public Safety 91,697 Public Works 2,460,593 Culture and Recreation 896,053 Internal service funds 991,809 Total depreciation/amortization expense - governmental activities 4,632,230$ Page 97 of 579 73 City of Richfield Notes to Basic Financial Statements NOTE 4 - CAPITAL ASSETS (CONTINUED) At December 31, 2024, the City had construction project contracts in progress. The commitments related to the remaining contract balances are summarized as follows: Contract Remaining Amount Commitment 66th Street and Richfield PKWY 24,155,135$ 1,047,654$ 77th Street Underpass 303,917 1,678 Total 24,459,052$ 1,049,332$ Project NOTE 5 - RISK MANAGEMENT The City is exposed to various risks such as loss related to: torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. It is the City's policy to be self-insured for workers' compensation, dental insurance and short-term disability insurance. Additionally, the City maintains a risk retention program for property, general liability, and auto liability insurance coverage by maintaining high deductibles. Accordingly, a Self-Insurance Fund (an Internal Service Fund) was established to account for and finance the City's uninsured risk of loss. Under this program, the Self Insurance Fund provides coverage for up to a maximum of $500,000 for each Workers' Compensation claim, and $50,000 ($300,000 aggregate) for each general liability and property damage claim. The City purchases insurance from the League of Minnesota Cities Insurance Trust (LMCIT) for property and municipal liability and the Workers' Compensation Reinsurance Association for claims in excess of coverage provided by the Fund and for all other risks of loss. The City has realized no significant reductions in insurance coverage during 2024. Finally, settled claims have not exceeded this commercial coverage in any of the past three fiscal years. Insurance reimbursements to the Self-Insurance Fund are charged back to the affected Governmental and Proprietary funds in the form of an insurance charge to fund future premiums and estimated prior and current year claims. The claims and judgments liability of $2,888,951 reported in the fund at December 31, 2024 is based on the requirements of Governmental Accounting Standards Board Statement No. 10 which requires a liability for claims reported if it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. Page 98 of 579 74 City of Richfield Notes to Basic Financial Statements NOTE 5 - RISK MANAGEMENT (CONTINUED) Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate. A summary of the claims and judgments liability amount at December 31, 2024 and 2023 are as follows: Current Year Beginning Claims and Balance at Years Ended of Fiscal Year Changes Claim Fiscal December 31,Liability in Estimates Payments-Net Year End 2023 1,614,340$ 32,866$ (463,590)$ 1,183,616$ 2024 1,183,616 2,006,608 (301,273)2,888,951 NOTE 6 - LONG-TERM LIABILITIES The City issues general obligation bonds to provide funds for the acquisition and construction of capital projects. The reporting entity and long-term debt is segregated between the amounts repaid from governmental activities and amounts to be repaid from business-type activities. Redevelopment bonds are paid primarily from tax increments derived from increases in the taxable valuation of property within a redevelopment area in the City. The full faith and credit of the City is pledged on the bonds. Improvement bonds are paid primarily from debt service tax levies and proceeds of special assessments levied against property owners benefiting from improvements made. The full faith and credit of the City is pledged on the bonds. The Water and Sewer Revenue Bonds debt requirements are paid from the revenues of the operation of Water and Sewer Utility Fund. The Storm Sewer Revenue Bonds debt requirements are paid from net revenue of the operation of the Storm Sewer Utility Fund. The City entered into a lease agreement with Big Belly Solar, LLC for the purchase of hardware/software for the public works department. See the details below of the agreement. Total Lease Issue Payment Payment Liability Date Terms Amount Connect Services Agreement - hardware/ software for public works department 73,848$ 0.69 %1/1/2022 59 months $2,132 monthly Interest Description Rate Page 99 of 579 75 City of Richfield Notes to Basic Financial Statements NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) A. Components of Long-Term Liabilities As of December 31, 2024, the governmental long-term bonded debt of the financial reporting entity consisted of the following: Issue Maturity Authorized Balance at Date Date and Issued Year End Redevelopment Bonds G.O. Tax Increment Refunding Bonds, 2012B 2.25 %09/06/12 02/01/25 2,970,000$ 260,000$ Total Redevelopment Bonds 260,000 Improvement Bonds G.O. Improvement Bonds, Series 2013A 2.18 03/21/13 02/01/34 3,120,000 1,300,000 G.O. Street Reconstruction Bonds, Series 2015A 2.71 06/04/15 02/01/36 9,100,000 5,780,000 G.O. Refunding Bonds, Series 2016B 1.58 11/17/16 02/01/28 5,085,000 2,045,000 G.O. Refunding Bonds, Series 2016C 2.04 12/15/16 02/01/29 6,130,000 3,275,000 G.O. Street Reconstruction Bonds, Series 2017A 2.49 04/20/17 02/01/38 9,130,000 6,890,000 G.O. Capital Improvement Refunding Bonds, Series 2017B 2.17 12/14/17 02/01/29 3,045,000 1,580,000 G.O. Street Reconstruction Bonds, Series 2018A 3.10 05/31/18 02/01/39 9,770,000 7,845,000 G.O. Bonds, Series 2019A 2.63 06/06/19 02/01/40 5,290,000 4,500,000 G.O. Bonds, Series 2020A 1.91 05/14/20 02/01/41 2,995,000 2,640,000 G.O. Refunding Bonds, Series 2020B 1.09 11/19/20 02/01/33 1,370,000 1,060,000 G.O. Bonds, Series 2022A 4.00 07/07/22 02/01/43 5,565,000 5,380,000 Unamortized Bond Premiums 1,038,066 Total Improvement Bonds 43,333,066 Revenue Bonds G.O. Sales Tax Revenue Bond, Series 2024A 5.00 12/30/24 02/01/30 10,000,000 10,000,000 Unamortized Bond Premiums 686,292 Total Improvement Bonds 10,686,292 Lease Payable Connect Services Agreement - hardware/ software for public works department 0.68 01/01/22 11/19/26 123,705 48,696 Total Governmental Indebtedness 54,328,054$ Net Interest Rate Page 100 of 579 76 City of Richfield Notes to Basic Financial Statements NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) B. Minimum Debt Payments Annual debt service requirements to maturity for general obligation bonds are as follows: Year Ended December 31,Principal Interest Total 2025 260,000$ 3,738$ 263,738$ Total 260,000$ 3,738$ 263,738$ Redevelopment Bonds Year Ended December 31,Principal Interest Total 2025 3,450,000$ 1,188,044$ 4,638,044$ 2026 3,540,000 1,090,054 4,630,054 2027 3,645,000 992,729 4,637,729 2028 3,750,000 891,961 4,641,961 2029 3,325,000 793,693 4,118,693 2030-2034 12,300,000 2,867,829 15,167,829 2035-2039 10,080,000 1,123,295 11,203,295 2040-2044 2,205,000 135,719 2,340,719 Total 42,295,000$ 9,083,324$ 51,378,324$ Improvement Bonds Principal Interest Total 2025 -$ 293,056$ 293,056$ 2026 2,225,000 444,375 2,669,375 2027 1,855,000 342,375 2,197,375 2028 1,910,000 248,250 2,158,250 2029 1,975,000 151,125 2,126,125 2030 2,035,000 50,875 2,085,875 Total 10,000,000$ 1,530,056$ 11,530,056$ G.O. Revenue Bonds Page 101 of 579 77 City of Richfield Notes to Basic Financial Statements NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) B. Minimum Debt Payments (Continued) Year Ended December 31,Principal Interest Total 2025 25,326$ 241$ 25,567$ 2026 23,370 67 23,437 Total 48,696$ 308$ 49,004$ Lease Payable Year Ended December 31,Principal Interest Total 2025 649,600$ 131,214$ 780,814$ 2026 661,200 115,542 776,742 2027 682,800 99,482 782,282 2028 296,000 86,952 382,952 2029 302,600 78,677 381,277 2030-2034 1,486,400 283,778 1,770,178 2035-2039 1,413,400 132,815 1,546,215 2040-2043 669,712 11,898 681,610 Total 6,161,712$ 940,358$ 7,102,070$ Water and Sewer Year Ended December 31,Principal Interest Total 2025 575,400$ 119,780$ 695,180$ 2026 588,800 108,034 696,834 2027 607,200 96,660 703,860 2028 454,000 86,693 540,693 2029 467,400 78,333 545,733 2030-2034 2,338,600 276,687 2,615,287 2035-2039 1,621,600 99,222 1,720,822 2040-2043 855,288 14,559 869,847 Total 7,508,288$ 879,968$ 8,388,256$ Storm Sewer Page 102 of 579 78 City of Richfield Notes to Basic Financial Statements NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) C. Change in Long-Term Liabilities Long-term liability activity for the year ended December 31, 2024, was as follows: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental activities Bonds payable Redevelopment bonds 1,110,000$ -$ (850,000)$ 260,000$ 260,000$ Improvement bonds 45,635,000 - (3,340,000) 42,295,000 3,450,000 Revenue bonds - 10,000,000 - 10,000,000 - Bond premium 1,165,923 686,292 (127,857) 1,724,358 - Total bonds payable 47,910,923 10,686,292 (4,317,857) 54,279,358 3,710,000 Lease payable 73,848 - (25,152) 48,696 25,326 Claims and judgements 1,183,616 2,006,608 (301,273) 2,888,951 - Compensated absences payable 2,533,505 347,225 - 2,880,730 748,990 Governmental activity long-term liabilities 51,701,892$ 13,040,125$ (4,644,282)$ 60,097,735$ 4,484,316$ Business-type activities Bonds payable Storm sewer revenue bonds 2,230,000$ -$ (135,000)$ 2,095,000$ 140,000$ G.O. Bonds 8,960,000 - (390,000) 8,570,000 405,000 G.O. Refunding Bonds 3,665,000 - (660,000) 3,005,000 680,000 Bond premium 517,957 - (59,563) 458,394 - Total bonds payable 15,372,957 - (1,244,563) 14,128,394 1,225,000 Compensated absences payable 358,499 26,559 - 385,058 119,368 Business-type activity long-term liabilities 15,731,456$ 26,559$ (1,244,563)$ 14,513,452$ 1,344,368$ Net OPEB obligations and pensions are generally liquidated by the General Fund and Enterprise Funds. Claims and judgments are generally liquidated by the Self Insurance Fund. All long-term bonded indebtedness outstanding at December 31, 2024 is backed by the full faith and credit of the City, including special assessment and revenue bond issues. Special assessment receivable at December 31, 2024 totaled $530,664. Page 103 of 579 79 City of Richfield Notes to Basic Financial Statements NOTE 6 - LONG-TERM LIABILITIES (CONTINUED) D. Revenue Pledged Future revenue pledged for the payment of long-term debt is as follows: Remaining Principal Pledged Use of Term of Principal and Interest Revenue Proceeds Type Pledge and Interest Paid Received G.O. Refunding Bonds, Utility Utility Series 2015B Infrastructure Charges 100 %2016-2027 1,705,150$ 565,975$ 6,695,633$ G.O. Storm Water Bonds, Utility Utility Series 2016A Infrastructure Charges 100 2017-2037 2,432,728 185,240 2,121,056 G.O. Bonds Utility Utility Series 2019A Infrastructure Charges 100 2020-2040 3,272,100 200,300 11,497,797 G.O. Bonds,Utility Utility Series 2020A Infrastructure Charges 100 2021-2041 1,970,068 169,300 4,574,577 G.O. Refunding Bonds, Utility Utility Series 2020B Infrastructure Charges 100 2021-2033 1,442,655 158,680 2,121,056 G.O. Refunding Bonds, Utility Utility Series 2022A Infrastructure Charges 100 2023-2043 4,667,624 324,400 11,497,797 Revenue Pledged Current Year Bond Issue Percent of Total Debt Service NOTE 7 - INTERFUND BALANCES AND TRANSACTIONS Interfund transfers as of December 31,2024 are as follows: Ice Improvement Captial Park Capital Nonmajor Internal General Arena Bond Improvements Projects Governmental Service Funds Total Transfer out General -$ 180,000$ -$ -$ -$ 150,000$ -$ 330,000$ Capital Improvements - 300,000 - - - 767 1,408,000 1,708,767 Park Capital Projects - 20,000 - - - - - 20,000 Nonmajor Governmental 171,890 - 745,224 524,500 500,000 50,000 - 1,991,614 Municipal Liquor 360,088 - - - - 500,000 - 860,088 Custodial 90,312 - - - - - - 90,312 Total 622,290$ 500,000$ 745,224$ 524,500$ 500,000$ 700,767$ 1,408,000$ 5,000,781$ Transfer In Fund Interfund transfers allow the City to allocate financial resources to funds to provide funding for services to be provided or to provide financing for specific capital projects. The City's Self Insurance Fund made an advance to the Ice Arena Fund to finance energy improvements for the City's Ice Arena. The term of the advance will be twenty (20) years with a beginning interest rate of 2%. The City Manager is authorized to adjust the interest rate as market conditions may dictate. At December 31, 2024 the balance of the respective advances (due in more than a year) was $301,115. The portion of the advances that is due in one year is $71,592. In 2013, the City's Recreation Improvement Fund made an advance to the Park Capital Project Fund to finance the Honoring All Veterans Memorial monument located in Veterans Park. The advance will be repaid over the next five years using proceeds received from monument engravings at 0% interest. At December 31, 2024 the portion due in more than one year is $155,940. Page 104 of 579 80 City of Richfield Notes to Basic Financial Statements NOTE 7 - INTERFUND BALANCES AND TRANSACTIONS (CONTINUED) In 2014, the City's Communications Fund made an advance to the Ice Arena Fund to finance the construction of a new locker room at Rink 1. The advance will be repaid over fifteen (15) years with rent received from the tenant of the locker room. At December 31, 2024, the portion of the advances that is due within one year is $42,764. The portion of the loan due in more than one year is $171,054. At the end of 2024, the Ice Arena has overdrawn it's cash position. As a result, the General Fund has advanced to the Ice Arena fund to cover the overdrawn cash position as of December 31, 2024. These advances are reflected in the financial statements as due to and due from other funds. Individual fund advances to and advances from at year-end were as follows: Amount Nonmajor governmental Ice Arena 213,818$ Park Capital Projects Park Capital Projects 155,940 Internal Service Self Insurance Ice Arena 372,707 Total 742,465$ Advances to Other Funds Advances from Other Funds Individual fund interfund receivables and payables balances at year-end were as follows: Amount General Ice Arena 1,670,041$ Receivable Fund Payable Fund NOTE 8 - FUND BALANCES The following is a breakdown of equity components of governmental funds which are defined earlier in the report. Any such restrictions which have an accumulated deficit rather than positive balance at December 31 are included in unassigned fund balance in the City's financial statements in accordance with generally accepted accounting principles. Page 105 of 579 81 City of Richfield Notes to Basic Financial Statements NOTE 8 - FUND BALANCES (CONTINUED) At December 31, 2024, a summary of the City's governmental fund balance classifications are as follows: Ice Improvement Capital Park Capital Other General Arena Elections Bonds Improvements Projects Governmental Total Nonspendable Prepaid items $ 317,975 $ - $ - $ - $ - $ - $ 1,389 $ 319,364 Restricted for Future debt service - - - 6,613,969 - - - 6,613,969 - - - - - 10,686,292 - 10,686,292 Law enforcement drug forfeitures - - - - - - 280,133 280,133 Recreation services donations - - - - - - 104,772 104,772 Wood Lake Nature Center donations - - - - - - 262,527 262,527 Public health assessment - - - - - - 139,348 139,348 Public safety aid - - - - - - 1,510,309 1,510,309 Public health - opioid settlement - - - - - - 300,825 300,825 Wood Lake endowment - - - - - - 259,080 259,080 Total Restricted - - - 6,613,969 - 10,686,292 2,856,994 20,157,255 Committed to Street light maintenance - - - - - - 184,447 184,447 Park improvement projects - - - - - - 154,827 154,827 Tourism administration - - - - - - 58,430 58,430 Public cable TV and information activities - - - - - - 1,887,773 1,887,773 National, state and local elections - - 2,395,387 - - - - 2,395,387 Alcohol and tobacco compliance - - - - - - 300,105 300,105 Wood Lake half marathon - - - - - - 91,878 91,878 Street maintenance and forestry programs - - - - - - 2,450,331 2,450,331 Special facilities - - - - - - 75,655 75,655 Recreation special program - - - - - - 352,836 352,836 Swimming pool - - - - - - 209,957 209,957 Park and recreation capital projects - - - - - 554,272 - 554,272 Capital improvements - - - - 3,540,667 - - 3,540,667 Total Committed - - 2,395,387 - 3,540,667 554,272 5,766,239 12,256,565 Unassigned 11,710,827 (2,062,733) - - - - - 9,648,094 Total 12,028,802$ (2,062,733)$ 2,395,387$ 6,613,969$ 3,540,667$ 11,240,564$ 8,624,622$ 42,381,278$ Park and recreation capital projects NOTE 9 - CONTINGENCIES AND LITIGATION The City is currently involved in various pending litigation cases. After evaluation by the City's attorney it is believed that the resolution of these cases will not have a material impact on the financial statements. The City has entered into an agreement with the Metropolitan Airports Commission (MAC), where the City will purchase certain right-of-way-properties as part of the 66th Street/17th Avenue intersection constructed in 2007. As part of the agreement, MAC will provide to the City the funds necessary to finance the right-of-way acquisitions. In addition, the City agrees to repay to MAC payments made by MAC to the City for the right-of-way acquisitions. However, within the agreements there are specific provisions that must be met in order for repayment to MAC to occur. Page 106 of 579 82 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS The City participates in various pension plans. For the year ended December 31, 2024 total pension expense was $1,960,289 and the total net pension liability was $13,334,360. The components of pension expense and net pension liability are noted in the following plan summaries. Public Employees Retirement Association A. Plan Description The City of Richfield participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes Chapters 353, 353D, 353E, 353G, and 356. Minnesota Statutes Chapter 356 defines each plan's financial reporting requirements. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan Membership in the General Plan includes employees of counties, cities, townships, schools in non- certified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. Public Employees Police and Fire Plan Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes § 353.64 and who are not earning service credit in any other PERA retirement plan or a local relief association for the same service. Employers can provide Police and Fire Plan coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the City's governing body. The resolution must state that the position meets plan requirements. B. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. When a member is vested, they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify for a retirement benefit. Page 107 of 579 83 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) B. Benefits Provided (Continued) General Employees Plan Benefits General Employees Plan requires three years of service to vest. Benefits are based on a member's highest average salary for any 5 successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members receive 1.2% of the highest average salary for each of the first 10 years of service and 1.7% for each additional year. Under the Level formula, General Plan members receive 1.7% of the highest average salary for all years of service. For members hired prior to July 1, 1989, a full retirement benefit is available when age plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced requirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by .25% for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of .25% for each month the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or an age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. The 2024 annual increase was 1.5%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. Police and Fire Plan Benefits Benefits for the Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on or after July 1, 2010, are 50% vested after five years of service and 100% vested after 10 years. After five years, vesting increase by 10% each full year of service until members are 100% vested after 10 years. Police and Fire Plan members receive 3% of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417% each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase. Page 108 of 579 84 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) C. Contributions Minnesota Statutes Chapter 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Employees Fund Contributions General Plan members were required to contribute 6.5% of their annual covered salary in fiscal year 2024, and the City was required to contribute 7.5% for General Plan members. The City's contributions to the General Employees Fund for the year ended December 31, 2024, were $1,025,949. The City's contributions were equal to the required contributions as set by state statute. Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal year 2024, and the City was required to contribute 17.7% for Police and Fire Plan members. The City's contributions to the Police and Fire Fund for the year ended December 31, 2024, were $1,529,296. The City's contributions were equal to the required contributions as set by state statute. D. Pension Costs General Employees Fund Pension Costs At December 31, 2024, the City reported a liability of $5,694,579 for its proportionate share of the General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the State's contribution meets the definition of a special funding situation. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $147,250. City's proportionate share of the net pension liability 5,694,579$ State of Minnesota's proportionate share of the net pension liability associated with the City 147,250 Total 5,841,829$ The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023, through June 30, 2024, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.1540% at the end of the measurement period and 0.1497% for the beginning of the period. Page 109 of 579 85 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) D. Pension Costs (Continued) General Employees Fund Pension Costs (Continued) For the year ended December 31, 2024, the City recognized pension expense of $527,598 for its proportionate share of General Employees Plan's pension expense. Included in the amount, the City recognized $3,948 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $16 million to the General Employees Fund. During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees Fund. The State of Minnesota is not included as a non-employer contributing entity in the General Employees Plan pension allocation schedule for the $170.1 million in direct state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $262,014 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on- behalf contributions to the General Employees Fund. At December 31, 2024, the City of Richfield reported its proportionate share of the General Employees Plan's deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Differences between expected and actual economic experience 531,528$ -$ Changes in actuarial assumptions 27,904 2,111,004 Net difference between projected and actual investment earnings - 1,652,640 Changes in proportion 181,824 212,189 Contributions paid to PERA subsequent to the measurement date 512,975 - Total 1,254,231$ 3,975,833$ Deferred Outflows of Resources Deferred Inflows of Resources Page 110 of 579 86 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) D. Pension Costs (Continued) General Employees Fund Pension Costs (Continued) The $512,975 reported as deferred outflows of resources related to pensions resulting from City of Richfield contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31,Amount (1,849,552)$ (316,725) (631,847) (436,453) Total (3,234,577)$ 2025 2026 2027 2028 Police and Fire Fund Pension Costs At December 31, 2024, the City reported a liability of $7,639,781 for its proportionate share of the Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023, through June 30, 2024, relative to the total employer contributions received from all of PERA's participating employers. The City's proportionate share was 0.5807% at the end of the measurement period and 0.6088% for the beginning of the period. Page 111 of 579 87 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) D. Pension Costs (Continued) Police and Fire Fund Pension Costs (Continued) The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation, additional one-time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not meet the definition of a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024. Thereafter, by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. The State of Minnesota's proportionate share of the net pension liability associated with the City totaled $291,225. City's proportionate share of the net pension liability 7,639,781$ State of Minnesota's proportionate share of the net pension liability associated with the City 291,225 Total 7,931,006$ For the year ended December 31, 2024, the City recognized pension expense of $1,431,119 for its proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City recognized $28,280 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's contribution of $9 million to the Police and Fire Fund. The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $28.4 million in supplemental state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $52,263 for the year ended December 31, 2024, as revenue and an offsetting reduction of the net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the Police and Fire Fund. Page 112 of 579 88 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) D. Pension Costs (Continued) Police and Fire Fund Pension Costs (Continued) At December 31, 2024, the City of Richfield reported its proportionate share of the Police and Fire Plan's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience 3,093,614$ -$ Changes in actuarial assumptions 8,951,067 11,797,261 Net difference between projected actual investment - earnings - 2,334,167 Changes in proportion 106,521 1,093,573 Contributions paid to PERA subsequent to the measurement date 764,648 - Total 12,915,850$ 15,225,001$ Deferred Outflows of Resources Deferred Inflows of Resources The $764,648 reported as deferred outflows of resources related to pensions resulting from City of Richfield contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ended Expense December 31,Amount 2025 (493,679)$ 2026 1,929,120 2027 (1,296,237) 2028 (3,305,848) 2029 95,178 Total (3,071,466)$ Page 113 of 579 89 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) E. Long-Term Expected Return on Investment The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Domestic equity 33.5 %5.10 % International equity 16.5 5.30 Fixed income 25.0 0.75 Private markets 25.0 5.90 Total 100.0 % Long-Term Expected Real Rate of ReturnAllocationAsset Class Target F. Actuarial Assumptions The total pension liability in the June 30, 2024, actuarial valuation was determined using an individual entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 7.0%. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of return investment return rates considered reasonable by the actuary. An investment return of 7.0% is within that range. Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees Plan and 1% for the Police and Fire Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 10.25% after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth assumptions range from 11.75% after one year of service to 3.0% after 24 years of service. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA's experience. Page 114 of 579 90 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) F. Actuarial Assumptions (Continued) Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was last reviewed in 2022. The assumption changes were adopted by the Board and became effective with the July 1, 2023, actuarial valuation. The Police and Fire Plan was reviewed in 2024. PERA anticipates the experience study will be approved by the Legislative Commission on Pensions and Retirement and become effective with the July 1, 2025 actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2024: General Employees Fund Changes in Actuarial Assumptions • Rates of merit and seniority were adjusted, resulting in slightly higher rates. • Assumed rates of retirement were adjusted as follows: Increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. • Minor increase in assumed withdrawals for males and females. • Lower rates of disability. • Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. • Minor changes to form of payment assumptions for male and female retirees. • Minor changes to assumptions made with respect to missing participant data. Changes in Plan Provisions • The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. Police and Fire Fund Changes in Plan Provisions • The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90% funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90% funded status for one year. • The additional $9.0 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). G. Discount Rate The discount rate used to measure the total pension liability in 2024 was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from Plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions of the General Employees and Police and Fire Plans were projected to be available to make all projected future benefit payments of current Plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Page 115 of 579 91 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Retirement Association (Continued) H. Pension Liability Sensitivity The following presents the City of Richfield's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City of Richfield's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in Current 1% Increase in City's proportionate share of the General Employees Fund net pension liability 12,437,875$ 5,694,579$ 147,601$ 1% Decrease in Current 1% Increase in City's proportionate share of the Police and Fire Fund net pension liability 18,054,290$ 7,639,781$ (912,714)$ Discount Rate (6%) Discount Rate (7%) Discount Rate (8%) Discount Rate (6%) Discount Rate (7%) Discount Rate (8%) I. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. Public Employees Defined Contribution Plan (Defined Contribution Plan) Three council members of the City of Richfield are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Page 116 of 579 92 City of Richfield Notes to Basic Financial Statements NOTE 10 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Public Employees Defined Contribution Plan (Defined Contribution Plan) (Continued) J. Pension Plan Fiduciary Net Position (Continued) The defined contribution plan consists of individual accounts paying a lump-sum benefit. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses; therefore, there is no future liability to the City. Minnesota Statutes Chapter 353D and 356, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percent of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1% (.25%) of the assets in each member's account annually. Pension expense for the year is equal to the contributions made. Total contributions made by the City during fiscal year 2024 were: 5% Contribution Amount Percentage of Covered Payroll Employee Employer Employee Employer Required Rate 1,572$ 1,572$ 5%5% NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS A. Plan Description The City provides a single-employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage that is administered by Health Partners. It is the City's policy to periodically review its medical coverage and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. No assets are accumulated in a trust. B. Benefits Provided At retirement, employees of the City receiving a retirement or disability benefit, or eligible to receive a benefit, from a Minnesota public pension plan may continue to participate in the City's group health insurance plan. Page 117 of 579 93 City of Richfield Notes to Basic Financial Statements NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS (CONTINUED) C. Members As of December 31, 2023, the following were covered by the benefit terms: Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 14 Active Plan Members 208 Total 222 D. Contributions Retirees and their spouses contribute to the health care plan at the same rate as City employees. This results in retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with BlueCross BlueShield. The required contributions are based on projected pay-as-you-go financing requirements. For 2024, the City contributed $198,165 to the plan. E. Actuarial Assumptions The total OPEB liability was determined by an actuarial valuation as of December 31, 2023, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount Rate 3.77% Expected Long-Term investment Return N/A 20-Year Municipal Bond Yield 4.05% Inflation Rate 2.60% Salary Increases N/A Medical Trend Rate 7.75%in 2024 grading to 4.0% in 2043 Key Methods and Assumptions Used in Valuation of Total OPEB Liability Mortality Rate - The mortality rates used are in the PERA plan of which the employee, retiree or beneficiary is a participant. 1. Coordinated • Healthy Pre-Retirement RP-2014 Employee Mortality Table, adjusted for white collar and mortality improvements using projection scale MP-2018, from a base year of 2014. Rates are set forward one year for males and set back one year for females. • Healthy Post-Retirement RP-2014 Healthy Annuitant Mortality Table, adjusted for white collar and mortality improvements using projection scale MP-2018, from a base year of 2014. Rates are set forward two years for males. Female rates are multiplied by a factor of 0.90. Page 118 of 579 94 City of Richfield Notes to Basic Financial Statements NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS (CONTINUED) E. Actuarial Assumptions (Continued) 1. Coordinated (Continued) • Disabled RP-2014 Disabled Mortality Table, adjusted for mortality improvements using projection scale MP-2018, from a base year of 2014. Rates are set forward one year for males and set forward six years for females. 2. Police and Fire • Healthy Pre-Retirement RP-2014 employee generational mortality table projected with mortality improvement scale MP-2018, from a base year of 2006. • Healthy Post-Retirement RP-2014 annuitant generational mortality table projected with mortality improvement scale MP-2018 from a base year of 2006. Male rates are adjusted by a factor of 0.96. • Disabled RP-2014 annuitant generational mortality table projected with mortality improvement scale MP-2018 from a base year of 2006. Male rates are adjusted by a factor of 0.96 The discount rate used to measure the total OPEB liability was 3.77%. F. Total OPEB Liability The City's total OPEB liability of $2,137,939 was measured as of December 31, 2023 and was determined by an actuarial analysis as of that date. Total OPEB Liability Balances at December 31, 2023 2,008,200$ Changes for the year Service cost 196,483 Interest 85,277 Differences between expected and actual economic experience 116,167 Changes of assumptions (70,023) Benefit payments (198,165) Net changes 129,739 Balances at December 31, 2024 2,137,939$ Page 119 of 579 95 City of Richfield Notes to Basic Financial Statements NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS (CONTINUED) F. Total OPEB Liability (Continued) Changes of assumptions and other inputs reflect a change in the discount rate from 4.05% as of December 31, 2023 to 3.77% as of December 31, 2024. G. OPEB Liability Sensitivity The following presents the City's total OPEB liability calculated using the discount rate of 3.77% as well as the liability measured using 1% lower and 1% higher than the current discount rate. 1% Decrease in Current 1% Increase in Discount Rate Discount Rate Discount Rate (2.77%) (3.77%) (4.77%) 2,255,527$ 2,137,939$ 2,021,319$ Total OPEB Liability The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using health care trend rates that are 1% lower and 1% higher than the current health care trend rates. 1% Decrease in Current 1% Increase in Trend Rate Trend Rate Trend Rate 1,929,397$ 2,137,939$ 2,384,617$ Total OPEB Liability 6.5% Decreasing to 3%) (7.5% Decreasing to 4%) (8.5% Decreasing to 5%) H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2024 the City recognized OPEB expense of $179,244. At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience 514,676$ 432,886$ Changes of assumptions 106,406 618,376 Contributions subsequent to the measurement date 103,896 - Total 724,978$ 1,051,262$ Page 120 of 579 96 City of Richfield Notes to Basic Financial Statements NOTE 11 - OTHER POST EMPLOYMENTS BENEFITS (CONTINUED) H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) The $103,896 reported as deferred outflows of resources related to OPEB resulting from the City's contributions to OPEB subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ended December 31, 2025. Amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Total (102,516)$ (104,679) (104,182) (86,443) (2,029) (30,331) Total (430,180)$ Thereafter 2025 2026 2027 2028 2029 Year Ended December 31, NOTE 12 - RIGHT-OF-WAY In 2002 the City acquired three properties for a total cost of $7,000,000 for Interstate 494 widening right-of-way under the Metropolitan Council Right-of-Way Acquisition Loan Fund (RALF). Under the RALF program, the City is obligated to return to the Metropolitan Council the proceeds of all RALF properties sold to the State of Minnesota. These RALF obligations and related properties have not been recorded since they do not represent true resources or liabilities of the City. NOTE 13 - CONDUIT DEBT From time to time, the City has issued various industrial development revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Finally, the City does not track the remaining outstanding principal balances on conduit debt, as the City does not have any obligation toward the debt. Page 121 of 579 97 City of Richfield Notes to Basic Financial Statements NOTE 13 - CONDUIT DEBT (CONTINUED) As of December 31, 2024 there was one bond issue outstanding with an estimated aggregate principal amount outstanding of approximately $10,000,000. NOTE 14 - TAX INCREMENT FINANCING The Richfield Housing and Redevelopment Authority (HRA) have entered into 10 Tax Increment Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The HRA's authority to enter into these agreements comes from Minnesota Statute § 469. The HRA entered into these agreements for the purpose of economic development. Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the HRA through tax revenues from additional taxable value of the property generated by the development (tax increment). A "pay-as-you-go" note is established for this amount, on which the HRA makes payments for a fixed period of time with available tax increment after deducting for certain administrative costs. The HRA has determined through its agreements with developers and state law to grant abatements of up to 90% of annual property taxes through a direct reduction of the entity's property tax bill. There were no agreements in 2024 that exceeded this 90% threshold. During the year ended December 31, 2024, the HRA generated $7,567,622 in tax increment revenue and made $4,312,648 in payments to developer. The tax abatement agreements that the HRA has outstanding as of December 31, 2024 are the following: Amount of Taxes Abated Purpose During the Year Senior housing & townhomes 72 %430,793$ Business redevelopment 75 294,211 Rental housing 35 84,218 Mixed-use housing and retail 75 756,035 Mixed-use housing and retail 80 374,195 Mixed-use housing and retail 75 519,527 Senior Housing 75 142,359 Rental housing 90 1,046,813 Townhomes 70 133,430 Rental housing 60 394,622 Rental housing 90 62,181 Rental housing and retail 90 74,263 Percentage of Taxes Abated During the Year Page 122 of 579 98 City of Richfield Notes to Basic Financial Statements NOTE 15 - FEDERAL AND STATE FUNDS The City received financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2024. NOTE 16 - NATURE AND AMOUNT OF SIGNIFICANT TRANSACTIONS BETWEEN CITY - HRA As noted in note 1, the HRA was established for the purpose to provide housing and redevelopment assistance to Richfield residents and businesses. The structure of the HRA is that it has no employees per se; however, it has a contract with the City where the City's Community Development department is to provide services as needed. Accordingly, the City charges the HRA for labor provided, data processing services, and office supplies, etc. In addition, to help fund redevelopment projects, the City will issue long term debt on behalf of the HRA. At the same time the HRA enters into a pledge agreement with the City whereby the HRA pledges future tax increment receipts generated by the redevelopment to service the debt issued. During 2024, the HRA transferred to the City $876,731 of tax increment receipts to fund debt service requirements for debt issued on behalf of the HRA. Finally, during 2013, as part of the North Richfield Parkway project, the City purchased several properties with the future intent to convey the properties to the HRA for future redevelopment of the site. Funding for the property purchases was provided by the $3,120,000 G.O. Improvement Bonds, Series 2013A. The bonds were issued with a debt service structure of 75% to be paid with a debt service tax levy and 25% to be paid by special assessments levied against the HRA, once the properties were conveyed to the HRA. The amount of the special assessment was $780,000. During 2014, the City conveyed the properties to the HRA at a value of $704,639 and levied the planned special assessments against the HRA. As part of the special assessment process the HRA prepaid the $780,000 with funding provided by the City in the form of an inter fund loan from the City's Capital Improvement Fund. The term of the loan will be twenty (20) years with no principal and interest payments due the first two years and then payment beginning in year three with an interest rate of 1%.The repayment of the loan will have three sources in the following priority; land sale proceeds, tax increment revenues and funds of the HRA that are legally available to pay on the loan. In 2016, the City conveyed several properties to the HRA at a book value of $1,264,063. The City Council determined that since the HRA was the development agency of the City, it would be appropriate for ease of future development that the properties be legally owned by the HRA. Page 123 of 579 99 City of Richfield Notes to Basic Financial Statements NOTE 17 - JOINT VENTURE A. Local Government Information Systems Association (LOGIS) This consortium of approximately 30 government entities provides computerized data processing and support services to its members. LOGIS is legally separate; the City does not appoint a voting majority of its board, and the Consortium is fiscally independent of the City. The total amount recorded within the 2024 financial statements of the City was $1,062,420 for services provided, which is allocated to the various funds based on applications. Complete financial statements may be obtained at the LOGIS offices located at 5750 Duluth Street, Golden Valley, Minnesota 55422. NOTE 18 – RESTATEMENTS AND ADJUSTMENTS OF BEGINNING NET POSITION AND FUND BALANCES For the year ended December 31, 2024, a correction of error was required to adjust beginning fund balance for the Election Fund to correct a prior year misstatement. Beginning fund balance was adjusted to correct an overstatement of accounts receivable related to lease revenue. For the year ended December 31, 2024, a correction of error was required to adjust beginning fund balance for the Capital Improvements Fund to correct a prior period misstatement. Beginning fund balance was adjusted to correct an understatement of amounts due from other funds. For the year ended December 31, 2024, the Park Capital Projects Fund was changed from a nonmajor governmental fund to a major governmental fund, resulting in a decrease of beginning fund balance for the nonmajor governmental funds of $1,615,645. For the year ended December 31, 2024, a correction of error was required to adjust beginning net position for the Water and Sewer Utility Fund and the Storm Sewer Fund to correct a prior year misstatement. Beginning net position was adjusted to correct an understatement of capital assets, accumulated depreciation, and due to other funds. For the year ended December 31, 2024, a correction of error was required to adjust beginning net position for the Governmental Activities to correct a prior year misstatement. Beginning net position was adjusted to correct an overstatement of capital assets, accumulated depreciation and accounts receivable related to lease revenue. Election Capital Improvements Park Capital Projects Other Governmental Funds Water and Sewer Utility Storm Sewer Governmental Activities Business-Type Activities 12/31/2023, as previously reported 2,355,535$ (370,703)$ -$ 8,580,084$ 19,509,954$ 8,948,524$ 78,608,855$ 31,264,246$ Change within finanical reporting entity - - 1,615,645 (1,615,645) - - - Correction of error (267,346) 5,637,498 - - 913,686 1,656,151 (2,837,183) 2,569,837 12/31/2023, as adjusted or restated 2,088,189$ 5,266,795$ 1,615,645$ 6,964,439$ 20,423,640$ 10,604,675$ 75,771,672$ 33,834,083$ Governmental Funds Proprietary Funds Government-Wide Page 124 of 579 100 City of Richfield Notes to Basic Financial Statements NOTE 19 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED GASB Statement No. 102, Certain Risk Disclosures. The disclosures required by this Statement will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. This Statement will be effective for the year ending December 31, 2025. GASB Statement No. 103, Financial Reporting Model Improvements. The changes required by this Statement provide clarity, enhance the relevance of information, provide more useful information for decision-making, and provide for greater comparability amongst government entities. This Statement will be effective for the year ending December 31, 2026. GASB Statement No. 104, Disclosure of Certain Capital Assets. The disclosures required by this Statement provide users of the financial statements with essential information about certain types of capital assets. This Statement will be effective for the year ending December 31, 2026. Page 125 of 579 101 REQUIRED SUPPLEMENTARY INFORMATION CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 126 of 579 See notes to required supplementary information. 102 December 31,December 31,December 31,December 31, 2018 2019 2020 2021 Total OPEB Liability Service cost 184,122$ 202,165$ 146,639$ 183,028$ Interest 83,730 84,039 100,980 49,990 - - (987,796) 18,865 Changes of assumptions 53,295 (110,794) 144,714 59,622 Benefit payments (109,190) (113,317) (74,575) (96,235) 211,957 62,093 (670,038) 215,270 Beginning of year 2,085,544 2,297,501 2,359,594 1,689,556 End of year 2,297,501$ 2,359,594$ 1,689,556$ 1,904,826$ 15,900,000$ 16,500,000$ 16,600,000$ 17,100,000$ 14.4%14.3%10.2%11.1% City of Richfield Schedule of Changes in Total OPEB Liability and Related Ratios Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available. No assets are accumulated in a trust for OPEB. Total OPEB liability as a percentage Covered employee payroll of covered employee payroll Differences between expected and actual experience Net change in total OPEB liability Page 127 of 579 103 December 31,December 31,December 31, 2022 2023 2024 214,592$ 254,038$ 196,483$ 43,201 47,246 85,277 585,621 - 116,167 (468,540) (255,608) (70,023) (163,225) (153,951) (198,165) 211,649 (108,275) 129,739 1,904,826 2,116,475 2,008,200 2,116,475$ 2,008,200$ 2,137,939$ 18,800,000$ 19,500,000$ 20,300,000$ 11.3%10.3%10.5% Page 128 of 579 See notes to required supplementary information. 104 City's Covered Payroll 2015 0.1596%8,271,300$ -$ 8,271,300$ 9,226,400$ 89.6%78.2% 2016 0.1587%12,885,653 168,215 13,053,868 9,846,133 130.9%68.9% 2017 0.1507%9,620,589 121,007 9,741,596 9,711,387 99.1%75.9% 2018 0.1520%8,432,337 276,621 8,708,958 10,214,587 82.6%79.5% 2019 0.1491%8,243,405 256,322 8,499,727 10,555,547 78.1%80.2% 2020 0.1530%9,173,049 282,832 9,455,881 10,910,907 84.1%79.1% 2021 0.1563%6,674,710 203,866 6,878,576 11,253,880 59.3%87.0% 2022 0.1546%12,244,371 359,121 12,603,492 11,581,413 105.7%76.7% 2023 0.1497%8,371,056 230,721 8,601,777 11,903,267 70.3%83.1% 2024 0.1540%5,694,579 147,250 5,841,829 13,036,840 43.7%89.1% For Fiscal Year Ended June 30, City's Proportion of the Net Pension Liability (Asset) City's Proportionate Share of the Net Pension Liability (Asset) State's Proportionate Share (Amount) of the Net Pension Liability Associated with the City City's Proportionate Share of the Net Pension Liablility and the State's Proportionate Share of the Net Pension Liablility Associated with the City City's Covered Payroll City's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 2015 0.6030%6,851,491$ -$ 6,851,491$ 5,371,889$ 127.5%86.6% 2016 0.6560%26,326,421 - 26,326,421 6,317,469 416.7%63.9% 2017 0.5910%7,979,203 - 7,979,203 6,070,907 131.4%85.4% 2018 0.6046%6,389,999 - 6,389,999 6,371,512 100.3%88.8% 2019 0.6387%6,713,383 - 6,713,383 6,587,723 101.9%89.3% 2020 0.6287%8,230,357 195,222 8,425,579 7,092,654 116.0%87.2% 2021 0.6000%4,577,363 208,222 4,785,585 7,091,288 64.5%93.7% 2022 0.6276%27,310,672 1,193,051 28,503,723 7,624,186 358.2%70.5% 2023 0.6088%10,513,185 423,463 10,936,648 7,995,051 131.5%86.5% 2024 0.5807%7,639,781 291,225 7,931,006 8,041,226 95.0%90.2% Schedule of City's Proportionate Share of Net Pension Liability - Public Employees Police and Fire Retirement Fund Last Ten Years City of Richfield Schedule of City's Proportionate Share of Net Pension Liability - General Employees Retirement Fund Last Ten Years City's Proportionate Share of the Net Pension Liablility and the State's Proportionate Share of the Net Pension Liablility Associated with the City For Fiscal Year Ended June 30, City's Proportionate Share (Percentage) of the Net Pension Liability (Asset) City's Proportionate Share (Amount) of the Net Pension Liability (Asset) State's Proportionate Share (Amount) of the Net Pension Liability Associated with the City City's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Page 129 of 579 See notes to required supplementary information. 105 2015 706,736$ 706,736$ -$ 9,423,147$ 7.50% 2016 726,143 726,143 - 9,681,907 7.50% 2017 742,606 742,606 - 9,901,413 7.50% 2018 783,227 783,227 - 10,443,027 7.50% 2019 812,029 812,029 - 10,827,053 7.50% 2020 837,463 837,463 - 11,166,173 7.50% 2021 861,454 861,454 - 11,486,053 7.50% 2022 869,515 869,515 - 11,593,533 7.50% 2023 935,761 935,761 - 12,476,813 7.50% 2024 1,025,949 1,025,949 - 13,679,320 7.50% 2015 948,453$ 948,453$ -$ 5,854,648$ 16.20% 2016 1,000,004 1,000,004 - 6,172,864 16.20% 2017 1,004,300 1,004,300 - 6,199,383 16.20% 2018 1,048,095 1,048,095 - 6,469,722 16.20% 2019 1,217,879 1,217,879 - 7,185,127 16.95% 2020 1,262,187 1,262,187 - 7,131,000 17.70% 2021 1,343,767 1,343,767 - 7,591,904 17.70% 2022 1,383,252 1,383,252 - 7,814,983 17.70% 2023 1,432,678 1,432,678 - 8,094,226 17.70% 2024 1,529,296 1,529,296 - 8,640,090 17.70% City's Covered Payroll Contributions as a Percentage of Covered Payroll Last Ten Years Contributions in Relation to the Statutorily Required Contributions Fiscal Year Ending December 31, Fiscal Year Ending December 31, Statutorily Required Contribution Contributions in Relation to the Statutorily Required Contributions Contribution Deficiency (Excess) Public Employees Police and Fire Retirement Fund Contribution Deficiency (Excess) City's Covered Payroll Contributions as a Percentage of Covered Payroll Statutorily Required Contribution Schedule of City Contributions - City of Richfield Schedule of City Contributions - General Employees Retirement Fund Last Ten Years Page 130 of 579 106 City of Richfield Notes to Required Supplementary Information General Employees Fund 2024 Changes Changes in Actuarial Assumptions • Rates of merit and seniority were adjusted, resulting in slightly higher rates. • Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. • Minor increase in assumed withdrawals for males and females. • Lower rates of disability. • Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. • Minor changes to form of payment assumptions for male and female retirees. • Minor changes to assumptions made with respect to missing participant data. Changes in Plan Provisions • The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. 2023 Changes Changes in Actuarial Assumptions • The investment return assumption and single discount rate were changed from 6.5% to 7.0%. Changes in Plan Provisions • An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on October 1, 2023. • The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. • The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. • A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 Changes Changes in Actuarial Assumptions • The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. Changes in Plan Provisions • There have been no changes since the prior valuation. 2021 Changes Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. • The mortality improvement scale was changed from scale MP-2019 to scale MP-2020. Changes in Plan Provisions • There have been no changes since the prior valuation. 2020 Changes Changes in Actuarial Assumptions • The price inflation assumption was decreased from 2.5% to 2.25%. • The payroll growth assumption was decreased from 3.25% to 3.0%. Page 131 of 579 107 City of Richfield Notes to Required Supplementary Information General Employees Fund (Continued) 2020 Changes (Continued) Changes in Actuarial Assumptions (Continued) • Assumed salary increase rates were changed as recommended in the June 30, 2019, experience study. The net effect is assumed rates that average 0.25% less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019, experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changes as recommended in the June 30, 2019, experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019, experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments. • The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100% Joint and Survivor option changed from 35% to 45%. The assumed number of married female new retires electing the 100% Joint and Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. Changes in Plan Provisions • Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2015 to MP-2017. • The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year thereafter to 1.25% per year. Changes in Plan Provisions • The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. • Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. Page 132 of 579 108 City of Richfield Notes to Required Supplementary Information General Employees Fund (Continued) 2018 Changes (Continued) Changes in Plan Provisions (Continued) • Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Annual increases were changed from 1.00% per year with a provision to increase to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of Living Adjustment, not less than 1.00% and not more than 1.50%, beginning January 1, 2019. • For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age. This does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions • The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for vested deferred member liability and 3% for non-vested deferred member liability. • The assumed annual increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. Changes in Plan Provisions • The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 Changes Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. • Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions • There have been no changes since the prior valuation. 2015 Changes Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030 and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year thereafter. Page 133 of 579 109 City of Richfield Notes to Required Supplementary Information General Employees Fund (Continued) 2015 Changes (Continued) Changes in Plan Provisions • On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer contributions were revised; the State's contribution of $6.0 million, which meets the special funding situation definition, was due September 2015. Page 134 of 579 110 City of Richfield Notes to Required Supplementary Information Police and Fire Fund 2024 Changes Changes in Plan Provisions • The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90% funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90% funded status for one year. • The additional $9.0 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). 2023 Changes Changes in Actuarial Assumptions • The investment return assumption was changed from 6.5% to 7.0%. • The single discount rate changed from 5.4% to 7.0%. Changes in Plan Provisions • Additional one-time direct state aid contribution of 19.4 million will be contributed to the Plan on October 1, 2023. • Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. • A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for calendar year 2024 by March 31, 2024. • Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member's occupation. • The total and permanent duty disability benefit was increased, effective July 1, 2023. 2022 Changes Changes in Actuarial Assumptions • The mortality improvement scale was changed from scale MP-2020 to scale MP-2021. • The single discount rate was changed from 6.5% to 5.4%. Changes in Plan Provisions • There have been no changes since the prior valuation. 2021 Changes Changes in Actuarial Assumptions • The investment return and single discount rates were changed from 7.5% to 6.5% for financial reporting purposes. • The inflation assumption was changed from 2.5% to 2.25%. • The payroll growth assumption was changed from 3.25% to 3.0%. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was changed from MP-2019 to MP-2020. Page 135 of 579 111 City of Richfield Notes to Required Supplementary Information Police and Fire Fund (Continued) 2021 Changes (Continued) Changes in Actuarial Assumptions (Continued) • The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to scale MP-2019) to the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to scale MP-2020). • Assumed rates of salary increase were modified as recommended in the July 14, 2020, experience study. The overall impact is a decrease in gross salary increase rates. • Assumed rates of retirement were changed as recommended in the July 14, 2020, experience study. The changes resulted in slightly more unreduced retirements and fewer assumed early retirements. • Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes resulted in more assumed terminations. • Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates resulted in more projected disabilities. • Assumed percent married for active female members was changed from 60% to 70%. Minor changes to form of payment assumptions were applied. Changes in Plan Provisions • There have been no changes since the prior valuation. 2020 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2018 to MP-2019. Changes in Plan Provisions • There have been no changes since the prior valuation. 2019 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions • There have been no changes since the prior valuation. 2018 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2016 to MP-2017. Changes in Plan Provisions • Annual increases were changed to 1.00% for all years, with no trigger. • An end date of July 1, 2048, was added to the existing $9.0 million state contribution. • New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier. • Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019, and 11.80% of pay, effective January 1, 2020. • Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019, and 17.70% of pay, effective January 1, 2020. • Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018. Page 136 of 579 112 City of Richfield Notes to Required Supplementary Information Police and Fire Fund (Continued) 2018 Changes (Continued) Changes in Plan Provisions (Continued) • Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes Changes in Actuarial Assumptions • Assumed salary increases were changed as recommended in the June 30, 2016, experience study. The net effect is proposed rates that average 0.34% lower than the previous rates. • Assumed rates of retirement were changed, resulting in fewer retirements. • The CSA load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2% for non-vested members. • The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. • Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. • Assumed percentage of married female members was decreased from 65% to 60%. • Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. • The assumed percentage of female members electing Joint and Survivor annuities was increased. • The assumed annual benefit increase rate was changed from 1% for all years to 1% per year through 2064 and 2.5% thereafter. • The single discount rate was changed from 5.6% per annum to 7.5% per annum. Changes in Plan Provisions • There have been no changes since the prior valuation. 2016 Changes Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years. • The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. • The single discount rate changed from 7.90% to 5.60%. • The assumed future salary increases, payroll growth, and inflation was decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Changes in Plan Provisions • There have been no changes since the prior valuation. Page 137 of 579 113 City of Richfield Notes to Required Supplementary Information Police and Fire Fund (Continued) 2015 Changes Changes in Actuarial Assumptions • The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030 and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter. Changes in Plan Provisions • The post-retirement benefit increase to be paid after attainment of the 90% funding threshold was changed, from inflation up to 2.5%, to a fixed rate of 2.5%. Page 138 of 579 114 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 139 of 579 115 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 140 of 579 116 Special Revenue Redevelopment Bonds Total Nonmajor Governmental Funds Assets Cash and investments 7,571,057$ -$ 7,571,057$ Interest receivable 17,048 - 17,048 Accounts receivable 821,414 - 821,414 Lease receivable 243,161 - 243,161 Due from other governments 103,279 - 103,279 Special assessment receivable Delinquent 11,603 - 11,603 Deferred 129,089 - 129,089 Advances to other Funds 213,818 - 213,818 Prepaid items 1,389 - 1,389 Total assets 9,111,858$ -$ 9,111,858$ Liabilities Accounts and contracts payable 72,182$ -$ 72,182$ Accrued salaries payable 14,748 - 14,748 Due to other governments 22,080 - 22,080 Total liabilities 109,010 - 109,010 Deferred Inflows of Resources Unavailable revenue - special assessments 140,692 - 140,692 Deferred inflows of resources related to leases receivable 237,534 - 237,534 Total deferred inflows of resources 378,226 - 378,226 Fund Balances Nonspendable 1,389 - 1,389 Restricted 2,856,994 - 2,856,994 Committed 5,766,239 - 5,766,239 Total fund balances 8,624,622 - 8,624,622 Total liabilities, deferred inflows of resources, and fund balances 9,111,858$ -$ 9,111,858$ City of Richfield Nonmajor Governmental Funds Combining Balance Sheet December 31, 2024 Page 141 of 579 117 Formerly Nonmajor Fund Special Revenue Redevelopment Bonds Park Capital Projects Total Nonmajor Governmental Funds Revenues Taxes 2,798,191$ -$ -$ 2,798,191$ Special assessments 131,014 - - 131,014 Intergovernmental 418,457 876,731 - 1,295,188 Charges for services 961,064 - - 961,064 Fines and forfeitures 33,295 - - 33,295 Interest earnings (loss)355,357 - - 355,357 Miscellaneous 438,928 - - 438,928 Total revenues 5,136,306 876,731 - 6,013,037 Expenditures Current Administrative services 482,143 - - 482,143 Public safety 256,862 - - 256,862 Public works 206,585 - - 206,585 Recreation services 1,175,311 - - 1,175,311 Capital outlay Recreation services 64,375 - - 64,375 Debt service Principal - 850,000 - 850,000 Interest and other charges - 26,731 - 26,731 Total expenditures 2,185,276 876,731 - 3,062,007 Excess of revenues over (under) expenditures 2,951,030 - - 2,951,030 Other Financing Sources (Uses) Transfers in 700,767 - - 700,767 Transfers out (1,991,614) - - (1,991,614) Total other financing sources (uses)(1,290,847) - - (1,290,847) Net change in fund balances 1,660,183 - - 1,660,183 Fund Balances Beginning of year 6,964,439 - 1,615,645 8,580,084 Change within financial reporting entity (Note 18)- - (1,615,645) (1,615,645) Beginning balance, restated 6,964,439 - - 6,964,439 End of year 8,624,622$ -$ -$ 8,624,622$ City of Richfield Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2024 Page 142 of 579 118 Liquor Contributions Fund Tourism Admin Communications Public Safety Aid Assets Cash and temporary investments 154,492$ 68,380$ 1,612,608$ 1,506,945$ Interest receivable 335 142 3,415 3,364 Accounts receivable - 10,989 73,482 - Lease receivable - - - - Due from other governments - - - - Special assessment receivable Delinquent - - - - Deferred - - - - Advances to other funds - - 213,818 - Prepaid items - - 1,389 - Total assets 154,827$ 79,511$ 1,904,712$ 1,510,309$ Liabilities Accounts and contracts payable -$ 21,081$ 7,294$ -$ Accrued salaries payable - - 8,256 - Due to other governments - - - - Total liabilities - 21,081 15,550 - Deferred Inflows of Resources Unavailable revenue - special assessments - - - - Deferred inflows of resources related to leases receivable - - - - Total deferred inflows of resources - - - - Fund Balances Nonspendable - - 1,389 - Restricted - - - 1,510,309 Committed 154,827 58,430 1,887,773 - Total fund balances 154,827 58,430 1,889,162 1,510,309 Total liabilities, deferred inflows of resources, and fund balances 154,827$ 79,511$ 1,904,712$ 1,510,309$ Special Revenue City of Richfield Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2024 Page 143 of 579 119 Drug/ Forfeiture Public Safety Compliance Recreation Contribution Nature Center Contribution Public Health Grants Wood Lake Half Marathon 263,638$ 249,977$ 95,285$ 262,468$ 130,328$ 91,957$ 617 560 820 555 250 234 - 1,508 467 - - - - - 101,340 - - - 21,000 48,060 4,219 - 27,728 - - - - - - - - - - - - - - - - - - - - - - - - - 285,255$ 300,105$ 202,131$ 263,023$ 158,306$ 92,191$ 5,122$ -$ 1,412$ 496$ -$ 313$ - - - - - - - - - - 18,958 - 5,122 - 1,412 496 18,958 313 - - - - - - - - 95,947 - - - - - 95,947 - - - - - - - - - 280,133 - 104,772 262,527 139,348 - - 300,105 - - - 91,878 280,133 300,105 104,772 262,527 139,348 91,878 285,255$ 300,105$ 202,131$ 263,023$ 158,306$ 92,191$ Special Revenue Page 144 of 579 120 Utility Francise Fees Opioid Settlement Recreation Special Program Swimming Pool Assets Cash and temporary investments 1,819,690$ 303,484$ 387,771$ 212,951$ Interest receivable 4,289 463 524 188 Accounts receivable 626,352 - 1,100 - Lease receivable - - - - Due from other governments - - 2,272 - Special assessment receivable Delinquent - - 11,603 - Deferred - - 129,089 - Advances to other funds - - - - Prepaid items - - - - Total assets 2,450,331$ 303,947$ 532,359$ 213,139$ Liabilities Accounts and contracts payable -$ -$ 32,339$ 3,182$ Accrued salaries payable - - 6,492 - Due to other governments - 3,122 - - Total liabilities - 3,122 38,831 3,182 Deferred Inflows of Resources Unavailable revenue - special assessments - - 140,692 - Deferred inflows of resources related to leases receivable - - - - Total deferred inflows of resources - - 140,692 - Fund Balances Nonspendable - - - - Restricted - 300,825 - - Committed 2,450,331 - 352,836 209,957 Total fund balances 2,450,331 300,825 352,836 209,957 Total liabilities, deferred inflows of resources, and fund balances 2,450,331$ 303,947$ 532,359$ 213,139$ Special Revenue Fund City of Richfield Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2024 Page 145 of 579 121 Special Revenue Fund Street Light User Fee Special Facility Wood Lake Endownment Total Nonmajor Special Revenue Funds 76,894$ 75,712$ 258,477$ 7,571,057$ 37 652 603 17,048 107,516 - - 821,414 - 141,821 - 243,161 - - - 103,279 - - - 11,603 - - - 129,089 - - 213,818 - - - 1,389 184,447$ 218,185$ 259,080$ 9,111,858$ -$ 943$ -$ 72,182$ - - - 14,748 - - - 22,080 - 943 - 109,010 - - - 140,692 - 141,587 - 237,534 - 141,587 - 378,226 - - - 1,389 - - 259,080 2,856,994 184,447 75,655 - 5,766,239 184,447 75,655 259,080 8,624,622 184,447$ 218,185$ 259,080$ 9,111,858$ Page 146 of 579 122 Liquor Contributions Fund Tourism Admin Communications Public Safety Aid Revenues Taxes Franchise -$ -$ 309,753$ -$ Lodging - 8,269 - - Special assessments - - - - Intergovernmental - - - - Charges for services - - - - Fines and forfeitures - - - - Interest earnings (loss)7,325 3,129 74,615 77,903 Miscellaneous - - - - Total revenues 7,325 11,398 384,368 77,903 Expenditures Current Administrative services - 5,439 393,215 - Public safety - - - - Public works - - - - Recreation services - - - - Capital outlay Recreation services - - - - Total expenditures - 5,439 393,215 - Excess of revenues over (under) expenditures 7,325 5,959 (8,847) 77,903 Other Financing Sources (Uses) Transfers in 500,000 - - - Transfers out (500,000) - - (171,890) Total other financing sources (Uses) - - - (171,890) Net change in fund balances 7,325 5,959 (8,847) (93,987) Fund Balances Beginning of year 147,502 52,471 1,898,009 1,604,296 End of year 154,827$ 58,430$ 1,889,162$ 1,510,309$ Special Revenue City of Richfield Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2024 Page 147 of 579 123 Drug/ Forfeiture Public Safety Compliance Recreation Contribution Nature Center Contribution Public Health Grants Wood Lake Half Marathon -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - 63,836 50,698 - 146,779 - - - - - - - 33,295 - - - - - 13,446 12,234 5,215 33,635 5,422 5,135 1,000 23,396 113,987 61,133 - 61,952 47,741 99,466 169,900 94,768 152,201 67,087 - - - - - - 56,218 56,888 - - 143,756 - - - - - - - - - 146,685 54,773 - 55,504 - - - - - - 56,218 56,888 146,685 54,773 143,756 55,504 (8,477) 42,578 23,215 39,995 8,445 11,583 - - - - - - - - - - - - - - - - - - (8,477) 42,578 23,215 39,995 8,445 11,583 288,610 257,527 81,557 222,532 130,903 80,295 280,133$ 300,105$ 104,772$ 262,527$ 139,348$ 91,878$ Speical Revenue Page 148 of 579 124 Utility Francise Fees Opioid Settlement Recreation Special Program Swimming Pool Revenues Taxes Franchise 2,480,169$ -$ -$ -$ Lodging - - - - Special assessments - - 131,014 - Intergovernmental - - 157,144 - Charges for services - - - 516,708 Fines and forfeitures - - - - Interest earnings (loss)92,953 10,375 11,623 4,183 Miscellaneous - 166,240 4,050 (4,842) Total revenues 2,573,122 176,615 303,831 516,049 Expenditures Current Administrative services 83,489 - - - Public safety - - - - Public works - - - - Recreation services - 7,872 286,195 570,416 Capital outlay Recreation services - - - 64,375 Total expenditures 83,489 7,872 286,195 634,791 Excess of revenues over (under) expenditures 2,489,633 168,743 17,636 (118,742) Other Financing Sources (Uses) Transfers in - - 100,767 100,000 Transfers out (1,319,724) - - - Total other financing sources (Uses) (1,319,724) - 100,767 100,000 Net change in fund balances 1,169,909 168,743 118,403 (18,742) Fund Balances Beginning of year 1,280,422 132,082 234,433 228,699 End of year 2,450,331$ 300,825$ 352,836$ 209,957$ Special Revenue Year Ended December 31, 2024 City of Richfield Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Page 149 of 579 125 Street Light User Fee Special Facility Wood Lake Endownment Total Nonmajor Special Revenue Funds -$ -$ -$ 2,789,922$ - - - 8,269 - - - 131,014 - - - 418,457 390,915 53,441 - 961,064 - - - 33,295 117 6,259 (8,212) 355,357 - 8,262 3,750 438,928 391,032 67,962 (4,462) 5,136,306 - - - 482,143 - - - 256,862 206,585 - - 206,585 - 53,866 - 1,175,311 - - - 64,375 206,585 53,866 - 2,185,276 184,447 14,096 (4,462) 2,951,030 - - - 700,767 - - - (1,991,614) - - - (1,290,847) 184,447 14,096 (4,462) 1,660,183 - 61,559 263,542 6,964,439 184,447$ 75,655$ 259,080$ 8,624,622$ Special Revenue Page 150 of 579 126 Changes in Fund Balances - Budget and Actual Liquor Contributions Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Interest earnings (loss) 500$ 500$ 7,325$ 6,825$ Total revenues 500 500 7,325 6,825 Other Financing Sources (Uses) Transfers in 500,000 500,000 500,000 - Transfers out (500,000) (500,000) (500,000) - Total other financing sources (uses) - - - - Net change in fund balances 500$ 500$ 7,325 6,825$ Fund Balances Beginning of year 147,502 End of year 154,827$ Budgeted Amounts Variance with Final Budget - Over (Under) City of Richfield Schedule of Revenues, Expenditures, and Page 151 of 579 127 Changes in Fund Balances - Budget and Actual Tourism Admin Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Taxes Lodging 6,000$ 6,000$ 8,269$ 2,269$ Interest earnings (loss)150 150 3,129 2,979 Total revenues 6,150 6,150 11,398 5,248 Expenditures Current Administrative services 5,440 5,440 5,439 (1) Total expenditures 5,440 5,440 5,439 (1) Net change in fund balances 710$ 710$ 5,959 5,249$ Fund Balances Beginning of year 52,471 End of year 58,430$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 152 of 579 128 Changes in Fund Balances - Budget and Actual Communications Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Taxes Franchise 275,000$ 256,000$ 309,753$ 53,753$ Interest earnings (loss)5,000 5,000 74,615 69,615 Total revenues 280,000 261,000 384,368 123,368 Expenditures Current Administrative services 416,838 406,520 393,215 (13,305) Total expenditures 416,838 406,520 393,215 (13,305) Net change in fund balances (136,838)$ (145,520)$ (8,847) 136,673$ Fund Balances Beginning of year 1,898,009 End of year 1,889,162$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 153 of 579 129 Changes in Fund Balances - Budget and Actual Public Safety Aid Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Interest earnings (loss)-$ 5,000$ 77,903$ 72,903$ Other Financing Uses Transfers out - (171,890) (171,890) - Net change in fund balances -$ (166,890)$ (93,987) 72,903$ Fund Balances Beginning of year 1,604,296 End of year 1,510,309$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 154 of 579 130 Changes in Fund Balances - Budget and Actual Drug/Forfeiture Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Fines and forfeitures 35,000$ 35,000$ 33,295$ (1,705)$ Interest earnings (loss)500 500 13,446 12,946 Miscellaneous 400 400 1,000 600 Total revenues 35,900 35,900 47,741 11,841 Expenditures Current Public safety 57,000 91,720 56,218 (35,502) Total expenditures 57,000 91,720 56,218 (35,502) Net change in fund balances (21,100)$ (55,820)$ (8,477) 47,343$ Fund Balances Beginning of year 288,610 End of year 280,133$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 155 of 579 131 Changes in Fund Balances - Budget and Actual Public Safety Compliance Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Intergovernmental 18,200$ 91,613$ 63,836$ (27,777)$ Interest earnings (loss)400 400 12,234 11,834 Miscellaneous 14,000 16,000 23,396 7,396 Total revenues 32,600 108,013 99,466 (8,547) Expenditures Current Public safety 16,600 17,500 56,888 39,388 Total expenditures 16,600 17,500 56,888 39,388 Net change in fund balances 16,000$ 90,513$ 42,578 (47,935)$ Fund Balances Beginning of year 257,527 End of year 300,105$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 156 of 579 132 Changes in Fund Balances - Budget and Actual Recreation Contribution Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Intergovernmental -$ -$ 50,698$ 50,698$ Interest earnings (loss)- - 5,215 5,215 Miscellaneous 65,000 119,000 113,987 (5,013) Total revenues 65,000 119,000 169,900 50,900 Expenditures Current Recreation services 59,000 145,500 146,685 1,185 Total expenditures 59,000 145,500 146,685 1,185 Net change in fund balances 6,000$ (26,500)$ 23,215 49,715$ Fund Balances Beginning of year 81,557 End of year 104,772$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 157 of 579 133 Changes in Fund Balances - Budget and Actual Nature Center Contribution Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Intergovernmental -$ 1,500$ -$ (1,500)$ Interest earnings (loss)- 7,000 33,635 26,635 Miscellaneous 50,000 75,000 61,133 (13,867) Total revenues 50,000 83,500 94,768 11,268 Expenditures Current Recreation services 21,900 80,000 54,773 (25,227) Total expenditures 21,900 80,000 54,773 (25,227) Net change in fund balances 28,100$ 3,500$ 39,995 36,495$ Fund Balances Beginning of year 222,532 End of year 262,527$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 158 of 579 134 Changes in Fund Balances - Budget and Actual Public Health Grants Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Intergovernmental 93,915$ 230,467$ 146,779$ (83,688)$ Interest earnings (loss)500 500 5,422 4,922 Total revenues 94,415 230,967 152,201 (78,766) Expenditures Current Public safety 177,835 177,835 143,756 (34,079) Total expenditures 177,835 177,835 143,756 (34,079) Net change in fund balances (83,420)$ 53,132$ 8,445 (44,687)$ Fund Balances Beginning of year 130,903 End of year 139,348$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 159 of 579 135 Changes in Fund Balances - Budget and Actual Wood Lake Half Marathon Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Interest earnings (loss)-$ -$ 5,135$ 5,135$ Miscellaneous 70,000 73,000 61,952 (11,048) Total revenues 70,000 73,000 67,087 (5,913) Expenditures Current Recreation services 65,000 66,000 55,504 (10,496) Total expenditures 65,000 66,000 55,504 (10,496) Net change in fund balances 5,000$ 7,000$ 11,583 4,583$ Fund Balances Beginning of year 80,295 End of year 91,878$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 160 of 579 136 Changes in Fund Balances - Budget and Actual Utility Franchise Fees Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Taxes Franchise 2,450,000$ 2,450,000$ 2,480,169$ 30,169$ Interest earnings (loss)6,500 50,000 92,953 42,953 Total revenues 2,456,500 2,500,000 2,573,122 73,122 Expenditures Current Administrative services - 450,000 83,489 (366,511) Total expenditures - 450,000 83,489 (366,511) Excess of revenues over (under) expenditures 2,456,500 2,050,000 2,489,633 439,633 Other Financing Uses Transfers out (2,706,000) (1,322,500) (1,319,724) 2,776 Net change in fund balances (249,500)$ 727,500$ 1,169,909 442,409$ Fund Balances Beginning of year 1,280,422 End of year 2,450,331$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 161 of 579 137 Changes in Fund Balances - Budget and Actual Opioid Settlement Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Interest earnings (loss)-$ 500$ 10,375$ 9,875$ Miscellaneous 45,652 145,812 166,240 20,428 Total revenues 45,652 146,312 176,615 30,303 Expenditures Current Recreation services - 10,000 7,872 (2,128) Total expenditures - 10,000 7,872 (2,128) Net change in fund balances 45,652$ 136,312$ 168,743 32,431$ Fund Balances Beginning of year 132,082 End of year 300,825$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 162 of 579 138 Changes in Fund Balances - Budget and Actual Recreation Special Program Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Special assessments -$ 128,467$ 131,014$ 2,547$ Intergovernmental 180,800 155,530 157,144 1,614 Interest earnings (loss)- - 11,623 11,623 Miscellaneous 55,000 - 4,050 4,050 Total revenues 235,800 283,997 303,831 19,834 Expenditures Current Recreation services 206,728 307,686 286,195 (21,491) Total expenditures 206,728 307,686 286,195 (21,491) Excess of revenues over (under) expenditures 29,072 (23,689) 17,636 41,325 Other Financing Sources Transfers in - 100,000 100,767 767 Total other financing sources - 100,000 100,767 767 Net change in fund balances 29,072$ 76,311$ 118,403 42,092$ Fund Balances Beginning of year 234,433 End of year 352,836$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 163 of 579 139 Changes in Fund Balances - Budget and Actual Swimming Pool Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Intergovernmental -$ 23,300$ -$ (23,300)$ Charges for services 513,000 515,000 516,708 1,708 Interest earnings (loss)- - 4,183 4,183 Miscellaneous - - (4,842) (4,842) Total revenues 513,000 538,300 516,049 (22,251) Expenditures Current Recreation services 583,830 584,230 570,416 (13,814) Capital outlay Recreation services - - 64,375 64,375 Total expenditures 583,830 584,230 634,791 50,561 Excess of revenues over (under) expenditures (70,830) (45,930) (118,742) (72,812) Other Financing Sources Transfers in 200,000 100,000 100,000 - Net change in fund balances 129,170$ 54,070$ (18,742) (72,812)$ Fund Balances Beginning of year 228,699 End of year 209,957$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 164 of 579 140 Changes in Fund Balances - Budget and Actual Street Light User Fee Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Charges for services - 332,000$ 390,915$ 58,915 Interest earnings (loss)- - 117 117 Total revenues - 332,000 391,032 59,032 Expenditures Current Public works - 332,000 206,585 (125,415) Total expenditures - 332,000 206,585 (125,415) Net change in fund balances -$ -$ 184,447 184,447$ Fund Balances Beginning of year - End of year 184,447$ Budgeted Amounts Variance with Final Budget - Over (Under) Page 165 of 579 141 Changes in Fund Balances - Budget and Actual Specialty Facility Special Revenue Fund Year Ended December 31, 2024 Original Final Actual Amounts Revenues Charges for services 59,150$ 59,150$ 53,441$ (5,709)$ Interest earnings (loss)- - 6,259 6,259 Miscellaneous - - 8,262 8,262 Total revenues 59,150 59,150 67,962 8,812 Expenditures Current Recreation services 63,005 75,620 53,866 (21,754) Net change in fund balances (3,855)$ (16,470)$ 14,096 30,566$ Fund Balances Beginning of year 61,559 End of year 75,655$ City of Richfield Schedule of Revenues, Expenditures, and Budgeted Amounts Variance with Final Budget - Over (Under) Page 166 of 579 142 Original Final Actual Amounts Revenues Taxes Property taxes 22,220,051$ 22,220,051$ 19,163,887$ (3,056,164)$ Fiscal disparities - - 3,047,406 3,047,406 Total taxes 22,220,051 22,220,051 22,211,293 (8,758) Special assessments - - 19,141 19,141 Licenses and permits Business 307,000 261,400 276,863 15,463 Non-business 838,000 746,150 857,124 110,974 Total licenses and permits 1,145,000 1,007,550 1,133,987 126,437 Intergovernmental revenue Federal grants 160,710 160,800 109,806 (50,994) Local government aid 3,392,552 3,392,552 3,392,552 - Fire aid 210,000 232,100 265,690 33,590 Police aid 465,000 472,000 579,627 107,627 MSA 393,000 315,000 334,500 19,500 Communitay health services 177,835 177,835 177,835 - Other state grants and aids 63,152 715,237 311,498 (403,739) County grants 21,040 - 30 30 Other local grants and aids 2,000 2,000 1,539 (461) Total intergovernmental revenue 4,885,289 5,467,524 5,173,077 (294,447) Charges for services General government 42,250 35,000 33,165 (1,835) Deputy registrat 710,000 710,000 790,623 80,623 Public safety 26,340 21,150 25,165 4,015 Public works 355,500 38,500 202,317 163,817 Park and recreation 231,850 268,750 324,229 55,479 Nature center 103,360 105,640 112,050 6,410 Community development 542,420 471,200 524,390 53,190 Total charges for services 2,011,720 1,650,240 2,011,939 361,699 Fines and forfeitures 200,000 200,000 221,719 21,719 Miscellaneous revenues Investment income 35,000 75,000 198,320 123,320 Other 42,060 60,750 27,950 (32,800) Total miscellaneous revenues 77,060 135,750 226,270 90,520 Total revenues 30,539,120 30,681,115 30,997,426 316,311 Variance with Final Budget - Over (Under) Budgeted Amounts City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2024 2024 Page 167 of 579 143 Original Final Actual Amounts Expenditures Current Legislative/executive Mayor and city council Personnel services 59,388$ 59,387$ 59,232$ (155)$ Other services and charges 248,696 248,547 186,721 (61,826) Total mayor and city council 308,084 307,934 245,953 (61,981) Other agencies Personnel services 34,700 27,760 30,229 2,469 Other services and charges 78,100 78,100 101,966 23,866 Total other agencies 112,800 105,860 132,195 26,335 City manager Personnel services 438,706 404,504 417,974 13,470 Other services and charges 54,300 54,420 61,777 7,357 Total city manager 493,006 458,924 479,751 20,827 Legal Other services and charges 351,490 351,490 304,238 (47,252) Total legislative/executive 1,265,380 1,224,208 1,162,137 (62,071) Administrative services Administration Personnel services 69,467 68,990 51,398 (17,592) Other services and charges 94,950 94,960 93,875 (1,085) Total administration 164,417 163,950 145,273 (18,677) Human resources Personnel services 158,857 175,074 168,665 (6,409) Other services and charges 92,715 149,720 109,410 (40,310) Total human resources 251,572 324,794 278,075 (46,719) City clerk Personnel services 730,986 693,569 705,210 11,641 Other services and charges 116,975 116,110 121,681 5,571 Total city clerk 847,961 809,679 826,891 17,212 Total administrative services 1,263,950 1,298,423 1,250,239 (48,184) Finance Finance Personnel services 243,879 333,500 340,173 6,673 Other services and charges 239,750 636,349 594,111 (42,238) Total finance 483,629 969,849 934,284 (35,565) Assessing Other services and charges 428,989 428,989 425,570 (3,419) Total finance 912,618 1,398,838 1,359,854 (38,984) City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2024 2024 Budgeted Amounts Variance with Final Budget - Over (Under) Page 168 of 579 144 Original Final Actual Amounts Expenditures (Continued) Current (continued) Public safety Administrative support services Personnel services 564,304$ 619,573$ 501,034$ (118,539)$ Other services and charges 612,991 590,730 674,421 83,691 Total administrative support services 1,177,295 1,210,303 1,175,455 (34,848) Police operations Personnel services 8,465,850 8,325,280 8,576,542 251,262 Other services and charges 2,133,430 2,189,380 2,131,177 (58,203) Total police operations 10,599,280 10,514,660 10,707,719 193,059 Emergency services Personnel services 10,100 10,100 7,550 (2,550) Other services and charges 30,590 34,490 17,106 (17,384) Total emergency services 40,690 44,590 24,656 (19,934) Total public safety 11,817,265 11,769,553 11,907,830 138,277 Fire Fire protection Personnel services 4,600,297 4,781,897 4,969,839 187,942 Other services and charges 952,592 962,418 932,307 (30,111) Total fire 5,552,889 5,744,315 5,902,146 157,831 Community development Administration Other services and charges 83,130 65,290 67,116 1,826 2024 City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2024 Budgeted Amounts Variance with Final Budget - Over (Under) Page 169 of 579 145 Original Final Actual Amounts Expenditures (Continued) Current (continued) Community development (continued) Planning and zoning Personnel services 262,060$ 264,490$ 246,567$ (17,923)$ Other services and charges 69,100 68,700 34,759 (33,941) Total planning and zoning 331,160 333,190 281,326 (51,864) Inspection Personnel services 1,109,770 1,123,470 1,132,808 9,338 Other services and charges 325,490 288,370 255,180 (33,190) Total engineering 1,435,260 1,411,840 1,387,988 (23,852) Total community development 1,849,550 1,810,320 1,736,430 (73,890) Public works Administration Personnel services 166,610 166,710 268,169 101,459 Other services and charges 45,830 45,750 41,136 (4,614) Total administration 212,440 212,460 309,305 96,845 Engineering Personnel services 363,800 388,850 471,931 83,081 Other services and charges 203,380 178,380 160,593 (17,787) Total engineering 567,180 567,230 632,524 65,294 Streets Personnel services 1,445,010 1,460,190 1,477,580 17,390 Other services and charges 1,318,130 1,341,830 1,092,376 (249,454) Total streets 2,763,140 2,802,020 2,569,956 (232,064) Park maintenance Personnel services 911,090 915,800 859,061 (56,739) Other services and charges 728,270 722,380 734,130 11,750 Total park maintenance 1,639,360 1,638,180 1,593,191 (44,989) Total public works 5,182,120 5,219,890 5,104,976 (114,914) 2024 Budgeted Amounts Variance with Final Budget - Over (Under) City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Year Ended December 31, 2024 Page 170 of 579 146 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 171 of 579 147 Original Final Actual Amounts Expenditures (Continued) Current (continued) Recreation services Recreation services administration Personnel services 388,250 350,410 373,361 22,951 Other services and charges 111,940 155,698 149,597 (6,101) Total recreation services administration 500,190 506,108 522,958 16,850 Recreation programs Personnel services 819,895 796,421 782,179 (14,242) Other services and charges 337,560 344,418 341,137 (3,281) Total recreation programs 1,157,455 1,140,839 1,123,316 (17,523) Wood Lake Nature Center Personnel services 538,292 548,290 551,002 2,712 Other services and charges 130,100 130,311 127,014 (3,297) Total wood lake nature center 668,392 678,601 678,016 (585) Total recreation services 2,326,037 2,325,548 2,324,290 (1,258) Total expenditures 30,169,809 30,791,095 30,747,902 (43,193) Excess of revenues over (under) expenditures 369,311 (109,980) 249,524 359,504 Other Financing Sources (Uses) Transfers in 360,090 531,980 622,290 90,310 Transfers out (729,401) (422,000) (330,000) 92,000 Total other financing sources (uses)(369,311) 109,980 292,290 182,310 Net change in fund balances -$ -$ 541,814 541,814$ Fund Balances Beginning of year 11,486,988 End of year 12,028,802$ Year Ended December 31, 2024 2024 Budgeted Amounts Variance with Final Budget - Over (Under) City of Richfield General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Page 172 of 579 148 Central Garage and Equipment Information Technology Self Insurance Building Services Assets Current Assets Cash and temporary investments 1,648,195$ 538,146$ 5,549,874$ 1,243,617$ Receivables Accrued interest 2,042 784 11,801 1,804 Accounts - - 2,096 - Advances to other funds - - 71,592 - Prepaid expenses - 14,336 - - Total current assets 1,650,237 553,266 5,635,363 1,245,421 Noncurrent Assets Advances to other funds - - 301,115 - Capital assets Construction in progress 759,178 - - - Buildings and structures 12,187,520 1,152,502 - 584,703 Less accumulated depreciation (8,094,466) (833,430) - (403,825) Total capital assets (net of accumulated depreciation)4,852,232 319,072 - 180,878 Total noncurrent assets 4,852,232 319,072 301,115 180,878 Total assets 6,502,469 872,338 5,936,478 1,426,299 Deferred Outflows of Resources Deferred outflows of resources related to pensions 33,706 36,941 - 30,373 Deferred outflows of resources related to OPEB 1,923 4,579 - 3,414 Total deferred outflows of resources 35,629 41,520 - 33,787 Total assets and deferred outflows of resources 6,538,098$ 913,858$ 5,936,478$ 1,460,086$ Liabilities Current Liabilities Accounts and contracts payable 315,161$ 9,510$ 17,059$ 116,317$ Accrued salaries payable 21,189 25,274 - 19,117 Due to other governments 81,858 54,609 18,952 - Compensated absences payable - current 10,536 14,893 - 16,173 Total current liabilities 428,744 104,286 36,011 151,607 Noncurrent Liabilities Compensated absences payable 29,987 42,387 - 46,031 Claims and judgements - - 2,888,951 - Net pension liability 153,034 167,721 - 137,903 Other postemployment benefits payable 5,670 13,502 - 10,067 Total noncurrent liabilities 188,691 223,610 2,888,951 194,001 Total liabilities 617,435 327,896 2,924,962 345,608 Deferred Inflows of Resources Deferred inflows of resources related to pensions 106,845 117,099 - 96,281 Deferred inflows of resources related to OPEB 2,788 6,639 - 4,950 Total deferred inflows of resources 109,633 123,738 - 101,231 Net Position Net investment in capital assets 4,852,232 319,072 - 180,878 Unrestricted 958,798 143,152 3,011,516 832,369 Total net position 5,811,030 462,224 3,011,516 1,013,247 Total liabilities, deferred inflows of resources and net position 6,538,098$ 913,858$ 5,936,478$ 1,460,086$ December 31, 2024 City of Richfield Internal Service Funds Combining Statement of Net Position Page 173 of 579 149 Compensated Absences Total 2,953,759$ 11,933,591$ 5,692 22,123 - 2,096 - 71,592 - 14,336 2,959,451 12,043,738 - 301,115 - 759,178 - 13,924,725 - (9,331,721) - 5,352,182 - 5,653,297 2,959,451 17,697,035 - 101,020 - 9,916 - 110,936 2,959,451$ 17,807,971$ -$ 458,047$ - 65,580 - 155,419 707,388 748,990 707,388 1,428,036 2,013,335 2,131,740 - 2,888,951 - 458,658 - 29,239 2,013,335 5,508,588 2,720,723 6,936,624 - 320,225 - 14,377 - 334,602 - 5,352,182 238,728 5,184,563 238,728 10,536,745 2,959,451$ 17,807,971$ Page 174 of 579 150 City of Richfield Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Net Position Year Ended December 31, 2024 Central Garage and Equipment Information Technology Self Insurance Building Services Operating Revenues Charges for services 1,568,570$ 1,273,758$ 913,048$ 1,054,553$ Operating Expenses Personnel services 459,580$ 550,214$ 392,591$ 407,270$ Other services and charges 1,175,311 725,555 2,225,022 496,713 Depreciation 935,882 41,598 - 14,329 Total operating expenses 2,570,773 1,317,367 2,617,613 918,312 Operating Income (Loss)(1,002,203) (43,609) (1,704,565) 136,241 Nonoperating Revenues/Expenses Interest earnings (loss)43,905 16,993 265,654 39,519 Miscellaneous revenues/expenses 53,691 - (51,760) - Gain on sale of capital assets 110,431 - - - Total nonoperating revenues/expenses 208,027 16,993 213,894 39,519 Income (loss) before transfers (794,176) (26,616) (1,490,671) 175,760 Transfers In 1,050,000 358,000 - - Change in net position 255,824 331,384 (1,490,671) 175,760 Net position, January 1 5,555,206 130,840 4,502,187 837,487 Net position, December 31 5,811,030$ 462,224$ 3,011,516$ 1,013,247$ Page 175 of 579 151 Compensated Absences Total -$ 4,809,929$ -$ 1,809,655$ - 4,622,601 - 991,809 - 7,424,065 - (2,614,136) 124,740 490,811 - 1,931 - 110,431 124,740 603,173 124,740 (2,010,963) - 1,408,000 124,740 (602,963) 113,988 11,139,708 238,728$ 10,536,745$ Page 176 of 579 152 City of Richfield Internal Service Funds Combining Statement of Cash Flows Year Ended December 31, 2024 Central Garage and Equipment Information Technology Self Insurance Building Services Cash Flows - Operating Activities Receipts from customers and users 1,589,064$ 1,273,758$ 998,375$ 1,054,553$ Other operating receipts 53,691 - (51,760) - Payments to suppliers (916,308) (896,680) (576,303) (418,356) Payments to employees (510,815) (577,072) (391,999) (439,682) Net cash flows - operating activities 215,632 (199,994) (21,687) 196,515 Cash Flows - Noncapital Financing Activities Financing activities Receipt of advances to other funds - - 70,176 - Transfer from other funds 1,050,000 358,000 - - Net cash flows - noncapital financing activities 1,050,000 358,000 70,176 - Cash Flows - Capital and Related Financing Activities Proceeds from sale of capital assets 110,431 - - - Acquisition of capital assets (1,923,060) (172,731) - (142,575) Net cash flows - capital and related financing activities (1,812,629) (172,731) - (142,575) Cash Flows - Investing Activities Interest received 45,234 17,359 269,642 39,974 Net change in cash and cash equivalents (501,763) 2,634 318,131 93,914 Cash and Cash Equivalents, January 1 2,149,958 535,512 5,231,743 1,149,703 Cash and Cash Equivalents, December 31 1,648,195$ 538,146$ 5,549,874$ 1,243,617$ Reconciliation of Operating Loss to Net Cash Flows - Loss to Net Cash Flows - Operating Activities Operating loss (1,002,203)$ (43,609)$ (1,704,565)$ 136,241$ Adjustments to reconcile operating loss to net cash flows - loss to net cash flows - operating activities Depreciation expense 935,882 41,598 - 14,329 Other income related to operations 53,691 - (51,760) - Accounts receivable 20,494 - 85,327 - Prepaid items 60 (14,274) - 48 OPEB liability expense 1,498 (7,574) - (1,666) Net pension liability expense (74,172) (28,086) - (32,127) Accounts payable 205,443 (211,460) (75,568) 78,309 Due to other governmental units 53,500 54,609 18,952 - Salaries payable 5,995 7,376 592 4,973 Compensated absences payable 15,444 1,426 - (3,592) Estimated payable for outstanding claims - - 1,705,335 - Total adjustments 1,217,835 (156,385) 1,682,878 60,274 Net cash flows - operating activities 215,632$ (199,994)$ (21,687)$ 196,515$ Page 177 of 579 153 Compensated Absences Total -$ 4,915,750$ - 1,931 - (2,807,647) 333,947 (1,585,621) 333,947 524,413 - 70,176 - 1,408,000 - 1,478,176 110,431 - (2,238,366) - (2,127,935) 126,115 498,324 460,062 372,978 2,493,697 11,560,613 2,953,759$ 11,933,591$ -$ (2,614,136)$ - 991,809 - 1,931 - 105,821 - (14,166) - (7,742) - (134,385) - (3,276) - 127,061 - 18,936 333,947 347,225 1,705,335 333,947 3,138,549 333,947$ 524,413$ Page 178 of 579 154 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 179 of 579 155 SUPPLEMENTARY FINANCIAL INFORMATION CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 180 of 579 156 General Special Revenue Capital Projects Total Assets Cash and investments 2,647,480$ 2,567,807$ 15,011,569$ 20,226,856$ Taxes receivable - delinquent 25,341 - 71 25,412 Accounts receivable 425 31,770 398 32,593 Interest receivable 5,403 8,522 27,892 41,817 Due from other funds 311,477 - 2,223,381 2,534,858 Due from other governments 5,219 74,877 306,348 386,444 Long term second mortgage receivable 147,988 2,537,189 85,000 2,770,177 Allowance for uncollectible accounts (147,988) (2,537,189) (85,000) (2,770,177) Land held for resale 112,696 - 8,990,799 9,103,495 Prepaid expenses 6,813 8,684 - 15,497 Total assets 3,114,854$ 2,691,660$ 26,560,458$ 32,366,972$ Liabilities Accounts payable 5,632$ 85,021$ 3,601$ 94,254$ Deposits payable - - 5,698 5,698 Due to other funds - 63,154 2,471,704 2,534,858 Due to other governments - 23,490 25,919 49,409 Total liabilities 5,632 171,665 2,506,922 2,684,219 Deferred Inflows of Resources Unavailable revenue - property taxes 25,341 - 71 25,412 Fund Balances Nonspendable 6,813 8,684 - 15,497 Restricted 112,696 - 16,419,298 16,531,994 Committed - 946,894 - 946,894 Assigned - 1,590,980 7,778,767 9,369,747 Unassigned 2,964,372 (26,563) (144,600) 2,793,209 Total fund balances 3,083,881 2,519,995 24,053,465 29,657,341 Total liabilities, deferred inflows of resources, and fund balances 3,114,854$ 2,691,660$ 26,560,458$ 32,366,972$ Total fund balances reported above 29,657,341$ Amounts reported for the Housing and Redevelopment Authority in the Statement of Net Position are different because: Allocation to reflect consolidation on internal service fund activities related to component unit (691,284)$ Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are reported as unavailable revenue in the funds Delinquent taxes receivable 25,412 Total net position - Housing and Redevelopment Authority 28,991,469$ Housing and Redevelopment Authority Combined Balance Sheet of Richfield, Minnesota December 31, 2024 Governmental Funds Page 181 of 579 157 General Special Revenue Capital Projects Total Revenues Tax increments -$ -$ 7,567,622$ 7,567,622$ Property taxes 688,925 - 6,842 695,767 Intergovernmental - 2,276,733 233,603 2,510,336 Investment income 119,540 144,248 691,658 955,446 Miscellaneous 20,494 16,841 4,250,000 4,287,335 Total revenues 828,959 2,437,822 12,749,725 16,016,506 Expenditures Current Housing and redevelopment Personnel services 311,878 240,307 318,249 870,434 Other services and charges 114,356 2,240,427 612,689 2,967,472 Capital outlay Housing and redevelopment - 80,000 1,020,407 1,100,407 Debt Service Principal - - 850,000 850,000 Interest and other - - 3,460,487 3,460,487 Total expenditures 426,234 2,560,734 6,261,832 9,248,800 Excess of revenues over (under) expenditures 402,725 (122,912) 6,487,893 6,767,706 Other Financing Sources (Uses) Transfers in - - 1,228,468 1,228,468 Transfers out (7,600) (29,507) (1,191,361) (1,228,468) Total other financing sources (uses)(7,600) (29,507) 37,107 - Net change in fund balances 395,125 (152,419) 6,525,000 6,767,706 Fund Balances Beginning of year 2,688,756 2,672,414 17,528,465 22,889,635 End of year 3,083,881$ 2,519,995$ 24,053,465$ 29,657,341$ Amounts reported for the Housing and Redevelopment Authority in the Statement of Activities are different because: Net change in fund balances - Housing and Redevelopment Authority 6,767,706$ Adjustment to reflect the consolidation of internal service fund activities related to component unit (52,174) Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Property taxes 10,763 Change in net position - Housing and Redevelopment Authority 6,726,295$ of Richfield, Minnesota Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2024 Housing and Redevelopment Authority Governmnetal Funds Page 182 of 579 158 of Richfield Minnesota Financial Data Schedules Balance Sheet December 31, 2024 111 Cash - unrestricted 126,972$ 113 Cash - other restricted 13,921 122 Accounts receivable - HUD 29,482 124 Accounts receivable - other governments 4,877 128 Fraud recovery 15,288 128.1 Allowance for doubtful accounts - fraud (13,000) 129 Accrued interest receivable 682 Prepaid items 8,684 290 Total Assets 186,906$ 312 Accounts payable <= 90 days 125$ 347 Inter Program - Due To 63,154 Total Liabilities 63,279 509.3 Restriced 13,921 512.4 Unrestricted 109,706 513 Total Net Position 123,627 600 Total Liabilities and Fund Balances 186,906$ Housing and Redevelopment Authority - Housing Choice Vouchers Assets Liabilities Net Position Page 183 of 579 159 70600 HUD PHA operating grants 2,145,396$ 71100 Investment income - unrestricted 16,031 71400 Fraud recovery 1,773 71500 Other revenue 615,080 70000 Total revenues 2,778,280 Administrative expenses 91100 Administrative salaries 240,307 91400 Advertising and marketing 92 91500 Office expenses 24,527 91600 Other 26,156 91000 Total administrative expenses 291,082 General expenses 96200 Other general expenses 62,017 96900 Total expenditures 353,099 Excess (deficiency) of revenues over (under) expenditures 2,425,181 97300 Housing assistance payments 1,893,118 97350 HAP portability-in 553,743 90000 Total other expenses 2,446,861 Net increase (decrease) in net position (21,680) Net position, January 1 145,307 Net position, December 31 123,627$ Memo account information 11190 Unit months available 2,623 11210 Number of unit months leased 2,356 Notes: Financial Data Schedules - U.S. Department of Housing and Urban Development The City has presented the financial data schedules for its Housing and Redevelopment Authority. These schedules are presented on a modified accrual basis of accounting. The information in these schedules is presented in accordance with the U.S. Department of Housing and Urban Development, Office of Public Housing (HUD) and Indian Housing, Real Estate Assessment Center and the Financial Assessment Subsystem - Public Housing (FASS-PH). Accordingly, some of the amounts presented in these schedules may differ from the amounts presented in, or used in the preparation of, the City's basic financial statements. Housing and Redevelopment Authority - Housing Choice Vouchers of Richfield, Minnesota Financial Data Schedules Income Statement for the Year Ended December 31, 2024 Revenues Expenditures Other Expenses Page 184 of 579 160 Assets Cash and investments 1,334,871$ Property taxes receivable 5,410 Interest receivable 2,619 Due from other governments 2,084 Deferred loan receivable 1,230,480 Allowance for uncollectible accounts (1,230,480) Total assets 1,344,984$ Liabilities Accounts payable 52,791$ Deferred Inflows of Resources Unavailable revenue - property taxes 5,410 Fund Balances Unassigned 1,286,783 Total fund balances 1,286,783 Total liabilities, deferred inflows of resources, and fund balances 1,344,984$ Fund balance reported above 1,286,783$ Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are unavailable in the funds. Delinquent taxes 5,410$ Net position of component unit activities 1,292,193$ City of Richfield Economic Development Authority Component Unit Balance Sheet December 31, 2024 Page 185 of 579 161 Revenues Taxes 599,364$ Miscellaneous Investment income 57,775 Other 2,515 Total revenues 659,654 Expenditures Current Economic development Personnel services 141,951 Other services and charges 414,559 Total expenditures 556,510 Excess of revenues over (under) expenditures 103,144 Fund Balances Beginning of year 1,183,639 End of year 1,286,783$ Adjustment to reflect the change in other long-term assets not available to pay current period expenditures -$ Change in net position of component unit activities 103,144$ Year Ended December 31, 2024 Statement of Revenues, Expenditures, and Changes in Fund Balances Economic Development Authority Component Unit City of Richfield Page 186 of 579 162 (THIS PAGE LEFT BLANK NTENTIONALLY) Page 187 of 579 163 STATISTICAL SECTION (UNAUDITED) CITY OF RICHFIELD RICHFIELD, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 188 of 579 164 (THIS PAGE LEFT BLANK INTENTIONALLY) Page 189 of 579 165 City of Richfield Statistical Section This part of the City of Richfield’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Contents Pages Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 166-167 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 176-182 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. 183-186 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 187-188 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. 189-191 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. Page 190 of 579 166 City of Richfield Statistical Section (Unaudited) Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) 2015 2016 2017 2018 Governmental Activities Net investment in capital assets 53,489,119$ 51,478,014$ 46,432,821$ 44,695,707$ Restricted 6,159,180 3,093,111 3,388,199 6,336,024 Unrestricted 5,339,294 (428,034) (4,174,406) (8,092,783) Total governmental activities net position 64,987,593$ 54,143,091$ 45,646,614$ 42,938,948$ Business-Type Activities Net investment in capital assets 14,610,034$ 16,757,963$ 19,656,557$ 23,309,355$ Restricted - - - - Unrestricted 2,723,163 2,429,606 4,155,490 4,418,358 Total business-type activities net position 17,333,197$ 19,187,569$ 23,812,047$ 27,727,713$ Total Primary Government Net investment in capital assets 68,099,153$ 68,235,977$ 60,155,878$ 59,206,662$ Restricted 6,159,180 3,093,111 3,388,199 6,336,024 Unrestricted 8,062,457 2,001,572 5,914,584 5,123,975 Total primary government net position 82,320,790$ 73,330,660$ 69,458,661$ 70,666,661$ Fiscal Year Page 191 of 579 167 Table 1 2019 2020 2021 2022 2023 2024 46,258,802$ 46,316,911$ 51,429,664$ 64,217,643$ 75,377,835$ 73,327,481$ 5,933,995 7,253,345 16,485,325 3,964,804 8,636,333 9,210,048 (16,378,793) (8,288,323) (3,540,422) 411,109 (5,405,313) (1,212,166) 35,814,004$ 45,281,933$ 64,374,567$ 68,593,556$ 78,608,855$ 81,325,363$ 20,657,979$ 20,657,979$ 21,303,212$ 21,550,313$ 19,177,441$ 26,509,108$ - - - - - - 5,970,660 5,970,660 6,361,197 8,177,018 12,086,805 7,645,485 26,628,639$ 26,628,639$ 27,664,409$ 29,727,331$ 31,264,246$ 34,154,593$ 58,559,804$ 58,758,640$ 64,876,476$ 78,279,906$ 87,445,726$ 93,119,889$ 5,933,995 7,253,345 16,485,325 3,964,804 8,636,333 9,210,048 (3,108,970) 5,898,587 10,677,175 16,076,177 13,791,042 13,150,019 61,384,829$ 71,910,572$ 92,038,976$ 98,320,887$ 109,873,101$ 115,479,956$ Fiscal Year Page 192 of 579 168 City of Richfield Statistical Section (Unaudited) Changes in Net Position (Continued on the Following Pages) Last Ten Fiscal Years (Accrual Basis of Accounting) 2015 2016 2017 2018 Expenses Governmental activities General government 3,112,271$ 3,503,975$ 3,261,312$ 3,205,714$ Public safety 12,512,132 16,846,901 13,706,386 12,958,838 Community development 1,390,908 1,489,202 1,364,675 1,552,826 Public works 15,932,128 16,161,254 15,028,590 13,039,259 Culture and recreation 3,973,233 4,244,085 4,142,433 4,308,628 Interest on long-term debt 1,118,400 1,786,750 1,751,627 1,563,101 Total governmental activities expenses 38,039,072 44,032,167 39,255,023 36,628,366 Business-type activities Liquor 10,246,033 10,018,719 10,729,098 10,824,828 Water and sewer utility 7,503,496 8,067,365 7,957,436 8,262,064 Storm sewer utility 1,263,819 1,462,684 1,623,854 1,720,653 Recreation fund - - - - Total business-type activities expenses 19,013,348 19,548,768 20,310,388 20,807,545 Total primary government expenses 57,052,420$ 63,580,935$ 59,565,411$ 57,435,911$ Program Revenues Governmental activities Charges for services General government 795,899$ 830,145$ 762,824$ 793,277$ Public safety 842,342 658,591 735,790 754,699 Community development 1,146,164 1,383,804 1,289,746 1,696,677 Public works 307,611 309,235 309,361 317,813 Culture and recreation 1,721,646 1,751,634 1,694,849 1,868,941 Operating grants and contributions 1,305,392 1,434,327 1,463,533 1,463,533 Capital grants and contributions 6,134,825 4,733,815 3,590,702 3,590,702 Total governmental activities program revenues 12,253,879 11,101,551 9,846,805 10,485,642 Business-type activities Charges for services Liquor 10,859,642 10,457,318 11,351,640 11,561,557 Water and sewer utility 7,314,887 7,647,683 8,023,101 8,648,729 Storm sewer utility 1,181,739 1,352,699 1,495,191 1,768,394 Operating grants and contributions - - - - Capital grants and contributions 200,000 - - - Total business-type activities program revenues 19,556,268 19,457,700 20,869,932 21,978,680 Total primary government program revenues 31,810,147$ 30,559,251$ 30,716,737$ 32,464,322$ Fiscal Year Page 193 of 579 169 Table 2 2019 2020 2021 2022 2023 2024 3,365,461$ 3,443,118$ 3,591,071$ 4,535,832$ 4,416,925$ 5,044,942$ 14,234,972 14,767,550 14,455,290 17,406,811 19,165,643 19,121,775 1,676,267 1,601,218 1,730,362 1,758,662 1,788,215 1,845,055 21,901,131 11,146,122 8,969,332 9,179,955 8,969,774 11,460,779 4,196,419 3,426,087 4,666,522 5,308,282 5,653,215 5,512,708 1,449,654 1,487,038 1,317,337 1,380,404 1,290,114 1,264,578 46,823,904 35,871,133 34,729,914 39,569,946 41,283,886 44,249,837 11,904,943 12,384,877 12,979,538 13,299,880 12,700,999 12,792,792 8,330,939 8,272,505 8,380,422 9,343,582 9,330,452 9,990,930 1,924,222 2,057,741 2,043,408 2,129,905 2,640,186 2,325,095 - - - - - - 22,160,104 22,715,123 23,403,368 24,773,367 24,671,637 25,108,817 68,984,008$ 58,586,256$ 58,133,282$ 64,343,313$ 65,955,523$ 69,358,654$ 893,750$ 590,246$ 951,034$ 1,027,491$ 1,003,475$ 1,435,328$ 780,881 535,792 500,678 675,771 508,704 584,490 2,204,262 2,137,248 2,137,779 1,619,026 1,181,748 1,365,053 305,451 237,698 338,892 324,499 343,747 3,076,726 1,831,136 605,969 1,927,900 2,123,558 2,420,618 2,437,858 1,562,337 4,238,000 1,456,035 1,614,601 3,627,875 2,695,970 4,159,314 8,163,705 17,781,877 7,027,935 8,372,899 4,362,651 11,737,131 16,508,658 25,094,195 14,412,881 17,459,066 15,958,076 12,678,003 13,262,924 13,927,926 14,209,724 13,967,904 14,053,489 8,826,120 8,716,310 9,227,632 9,892,777 10,429,228 9,348,958 1,828,180 2,047,290 2,043,821 2,154,934 2,382,576 2,298,391 - - - - - 15,000 - - - - - 3,827 23,332,303 24,026,524 25,199,379 26,257,435 26,779,708 25,719,665 35,069,434$ 40,535,182$ 50,293,574$ 40,670,316$ 44,238,774$ 41,677,741$ Fiscal Year Page 194 of 579 170 City of Richfield Statistical Section (Unaudited) Changes in Net Position (Continued on the Following Pages) Changes in Net Position (Continued) (Accrual Basis of Accounting) 2015 2016 2017 2018 Net Revenues (Expenses) Governmental activities (25,755,193)$ (32,930,616)$ (29,789,259)$ (26,142,724)$ Business-type activities 542,920 (91,068) 559,544 1,171,135 Total primary government net revenues (expenses) (25,212,273)$ (33,021,684)$ (29,229,715)$ (24,971,589)$ General Revenues and Other Changes in Net Position Governmental activities Taxes Property taxes 18,388,710$ 18,398,414$ 19,075,553$ 20,019,144$ Franchise taxes 2,230,602 2,260,122 2,264,759 224,216 Grants and contributions not restricted to specific programs 2,054,379 2,084,057 2,094,443 2,229,280 Other general revenues 1,069,172 940,123 1,573,837 1,772,578 Transfers 1,009,749 (1,596,613) (3,715,810) (2,727,229) Total governmental activities 24,752,612 22,086,103 21,292,782 21,517,989 Business-type activities Other general revenues 335,616 348,827 349,124 434,240 Transfers (1,009,749) 1,596,613 3,715,810 2,727,229 Special item - - - (93,263) Total business-type activities (674,133) 1,945,440 4,064,934 3,068,206 Total primary government 24,078,479$ 24,031,543$ 25,357,716$ 24,586,195$ Change in Net Position Governmental activities (1,002,581)$ (10,844,502)$ (8,496,477)$ (2,606,735)$ Business-type activities (131,213) 1,854,372 4,624,478 4,239,341 Total primary government (1,133,794)$ (8,990,130)$ (3,871,999)$ 1,632,606$ Fiscal Year Page 195 of 579 171 Table 2 (Continued) 2019 2020 2021 2022 2023 2024 (35,086,773)$ (19,272,475)$ (9,635,719)$ (25,157,065)$ (23,824,820)$ (28,291,761)$ 1,172,199 1,311,401 1,796,011 1,484,068 2,108,071 610,848 (33,914,574)$ (17,961,074)$ (7,839,708)$ (23,672,997)$ (21,716,749)$ (27,680,913)$ 20,887,161$ 22,183,130$ 23,336,637$ 24,553,760$ 21,992,920$ 27,404,757$ 2,241,396 2,235,139 2,242,186 2,242,820 4,046,389 - 2,235,643 2,366,046 2,104,750 2,334,669 2,038,711 3,392,552 2,057,553 1,187,879 217,010 692,988 4,610,559 2,097,743 308,930 768,210 827,770 (448,183) 1,197,926 950,400 27,730,683 28,740,404 28,728,353 29,376,054 33,886,505 33,845,452 502,377 514,623 67,529 130,671 626,770 569,750 (308,930) (768,210) (827,770) 448,183 (1,197,926) (860,088) (335,943) - - - - - (142,496) (253,587) (760,241) 578,854 (571,156) (290,338) 27,588,187$ 28,486,817$ 27,968,112$ 29,954,908$ 33,315,349$ 33,555,114$ (7,356,090)$ 9,467,929$ 19,092,634$ 4,218,989$ 10,061,685$ 5,553,691$ 1,029,703 1,057,814 1,035,770 2,062,922 1,536,915 320,510 (6,326,387)$ 10,525,743$ 20,128,404$ 6,281,911$ 11,598,600$ 5,874,201$ Fiscal Year Page 196 of 579 172 City of Richfield Statistical Section (Unaudited) Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2015 2016 2017 2018 General Fund Nonspendable 3,667$ 15,799$ 141,195$ 12,679$ Restricted - - - - Unassigned 9,922,952 9,600,129 10,038,550 10,520,461 Total general fund 9,926,619$ 9,615,928$ 10,179,745$ 10,533,140$ All Other Governmental Funds Nonspendable 7,203$ 2,887$ 17,761$ 105,287$ Restricted 10,128,899 18,332,804 20,275,918 16,286,001 Committed 955,348 720,397 738,817 1,790,562 Assigned 14,066,297 13,408,861 17,069,166 22,069,612 Unassigned (1,949,474) (1,847,409) (3,741,559) (6,573,705) Total all other governmental funds 23,208,273$ 30,617,540$ 34,360,103$ 33,677,757$ Fiscal Year Page 197 of 579 173 Table 3 2019 2020 2021 2022 2023 2024 177,753$ 28,365$ 47,489$ 66,984$ 61,640$ 317,975$ - 16,118 - - - - 11,313,120 12,870,165 10,517,440 10,923,406 11,425,348 11,710,827 11,490,873$ 12,914,648$ 10,564,929$ 10,990,390$ 11,486,988$ 12,028,802$ 15,236$ 1,485$ 1,111$ 2,754$ 90$ 1,389$ 10,642,272 8,785,571 3,090,932 2,121,557 8,986,815 20,157,255 2,836,946 4,078,939 13,661,056 14,448,057 8,212,034 12,256,565 21,371,523 24,710,670 5,518,491 5,839,195 - - (4,101,728) (1,749,993) (3,798,986) (3,141,170) (2,899,672) (2,062,733) 30,764,249$ 35,826,672$ 18,472,604$ 19,270,393$ 14,299,267$ 30,352,476$ Fiscal Year Page 198 of 579 174 Statistical Section (Unaudited) Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2015 2016 2017 2018 Revenues Taxes 18,407,060$ 18,357,209$ 19,112,961$ 20,041,028$ Franchise taxes 2,230,602 2,260,122 2,264,759 2,242,216 Special assessments 222,667 194,607 206,140 202,308 Fines and forfeitures 442,278 279,437 345,143 363,806 License and permits 985,367 1,124,025 1,061,107 1,385,288 Intergovernmental 9,272,706 7,971,353 6,526,885 6,995,230 Charges for services 3,386,017 3,529,947 3,386,320 3,682,313 Interest earnings (loss) 56,206 157,444 247,818 685,353 Miscellaneous 980,395 719,430 1,254,319 951,055 Total revenues 35,983,298 34,593,574 34,405,452 36,548,597 Expenditures Current General government 2,523,323 2,602,322 2,633,435 2,652,810 Public safety 11,781,433 12,367,364 12,471,350 12,993,392 Community development 1,337,103 1,330,766 1,349,571 1,471,067 Public works 13,814,201 13,457,283 12,643,244 10,834,054 Recreation services 3,282,355 3,382,122 3,379,327 3,615,978 Capital outlay 2,363,164 2,951,196 4,636,951 4,441,313 Debt service Principal 2,565,000 2,125,000 8,140,000 2,365,000 Interest and other charges 1,271,643 1,563,351 1,699,998 1,597,997 Bond issuance costs - - - - Total expenditures 38,938,222 39,779,404 46,953,876 39,971,611 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,954,924) (5,185,830) (12,548,424) (3,423,014) Other Financing Sources (Uses) Bond proceeds 9,100,000 11,215,000 12,175,000 9,770,000 Premium on bonds issued 278,526 516,582 319,366 151,774 Sale of capital assets - - - - Payment to refunded bond escrow agent - - (2,950,000) - Transfers in 11,965,883 4,368,205 5,333,223 11,296,324 Transfers out (11,848,134) (4,860,995) (6,172,033) (11,851,404) Total other financing sources (uses) 9,496,275 11,238,792 8,705,556 9,366,694 Net Change in Fund Balances 6,541,351$ 6,052,962$ (3,842,868)$ 5,943,680$ Debt Service as a Percentage of Noncapital Expenditures 10.5% 10.0% 23.3% 11.1% Fiscal Year City of Richfield Page 199 of 579 175 Table 4 2019 2020 2021 2022 2023 2024 20,876,291$ 22,201,245$ 23,308,086$ 24,548,928$ 25,962,569$ 27,476,773$ 2,241,396 2,235,139 2,242,186 2,242,820 2,250,588 2,789,922 232,098 229,692 159,089 146,248 244,981 326,342 401,118 202,012 230,966 266,793 208,885 255,014 1,734,871 1,743,695 1,695,431 1,379,973 981,777 1,133,987 7,532,797 14,493,527 10,896,993 17,291,129 15,436,492 9,008,065 3,879,491 2,251,246 3,383,966 3,572,411 3,677,002 4,212,577 689,997 265,483 27,564 474,176 1,783,377 1,414,911 1,197,637 833,164 969,270 1,388,855 1,023,718 1,022,381 38,785,696 44,455,203 42,913,551 51,311,333 51,569,389 47,639,972 2,757,627 2,900,167 2,995,213 3,736,372 4,077,430 4,469,352 14,018,093 14,599,965 15,587,368 15,946,189 16,922,072 18,066,838 1,586,564 1,640,111 1,796,086 1,616,827 1,652,012 1,736,430 19,635,955 8,907,229 12,153,261 4,999,152 5,254,536 5,726,040 3,567,386 2,724,828 3,773,805 4,151,016 4,491,736 4,805,618 9,773,296 4,642,849 1,336,393 18,655,668 18,366,678 6,202,147 8,870,000 3,290,000 3,560,000 3,760,000 3,870,000 4,190,000 1,658,046 1,615,536 1,497,299 1,360,676 1,477,493 1,447,368 - - - 110,227 - - 61,866,967 40,320,685 42,699,425 54,336,127 56,111,957 46,643,793 (23,081,271) 4,134,518 214,126 (3,024,794) (4,542,568) 996,179 5,290,000 4,365,000 - 5,565,000 - 10,000,000 314,825 170,520 - 195,727 - 686,292 - - - 500 - - - - (1,385,000) - - - 12,196,655 11,766,403 5,532,754 6,059,926 5,733,451 3,592,781 (12,887,725) (12,013,193) (5,769,984) (7,573,109) (5,619,025) (4,050,381) 4,913,755 4,288,730 (1,622,230) 4,248,044 114,426 10,228,692 (18,167,516)$ 8,423,248$ (1,408,104)$ 1,223,250$ (4,428,142)$ 11,224,871$ 20.2%13.7%14.3%14.2%14.1%13.1% Fiscal Year Page 200 of 579 176 Real Property Total Fiscal Commercial Personal Taxable Year Residential Apartments Industrial Property Market Value 2015 1,765,025,018$ 292,412,930$ 590,097,800$ 19,771,100$ 2,667,306,848$ 2016 1,920,643,255 334,634,375 619,857,100 17,757,000 2,892,891,730 2017 2,078,843,492 379,947,517 596,335,200 20,497,500 3,075,623,709 2018 2,373,695,072 391,924,323 631,189,700 21,223,000 3,418,032,095 2019 2,533,077,293 489,451,590 641,809,900 21,104,000 3,685,442,783 2020 2,594,212,488 563,006,090 676,704,300 25,160,800 3,859,083,678 2021 2,828,914,390 609,514,200 672,025,000 12,868,200 4,123,321,790 2022 3,336,255,143 704,770,100 700,744,000 15,541,300 4,757,310,543 2023 3,409,420,309 796,733,100 738,664,000 13,617,600 4,958,435,009 2024 3,353,771,859 778,604,100 704,227,600 13,932,400 4,850,535,959 Source: Hennepin County report Market Value and Tax Capacity Growth By City. City of Richfield Taxable and Estimated Market Values of Taxable Property Last Ten Fiscal Years (unaudited) Page 201 of 579 177 Table 5 Estimated Actual Market Value 61.66 %2,854,981,900$ 93.43 % 62.66 3,072,682,200 94.15 58.41 3,263,103,600 94.25 59.34 3,587,736,600 95.27 54.74 3,846,256,100 95.82 54.73 4,018,060,200 96.04 55.50 4,264,414,600 96.69 55.07 4,868,218,300 97.72 52.12 5,061,837,200 97.96 53.53 5,039,434,100 96.25 Market Value Total Taxable Total Direct Tax Rate as a Percent of Estimated Actual Market Value Page 202 of 579 178 City of RichfieldStatistical Section (Unaudited)Property Tax Rates - Direct and Overlapping GovernmentsLast Ten Fiscal YearsTable 6FiscalYear2015 53.170 % 6.970 % 1.530 % 61.670 % 26.660 % 46.400 % 9.790 % 144.520%2016 53.190 7.800 1.670 62.660 28.770 45.360 9.530 146.3202017 53.180 6.670 1.560 61.410 27.050 44.090 9.320 141.8702018 49.580 8.150 1.610 59.340 37.050 42.810 8.970 148.1702019 45.470 7.810 1.460 54.740 33.330 41.860 8.550 138.4802020 45.120 8.170 1.440 54.730 32.660 41.080 8.220 136.6902021 46.150 7.930 1.420 55.500 30.520 38.210 7.810 132.0402022 45.843 7.838 1.385 55.066 28.708 38.535 7.849 130.1582023 43.057 7.784 1.279 52.120 26.890 34.542 8.164 121.7162024 44.670 7.578 1.285 53.533 26.604 34.681 6.723 121.541Source: Hennepin County Assessing OfficeGeneral CityDebt HRATotalDirect City RatesMetropolitanOverlapping Rates (1)TotalRatesOverlappingDirect andSchoolDistrict County AgenciesHennepin Page 203 of 579 179 City of RichfieldStatistical Section (Unaudited)Principal Property TaxpayersCurrent and Nine Years AgoTable 7NetNetTaxTaxTaxpayer Capacity Rank Taxpayer Capacity RankBest Buy Company, Inc. 2,369,250$ 14.16 %Best Buy Company, Inc. 3,134,560$ 19.50 %JRK Investors, Inc. 1,211,950 22.13 - JIW Inc. 767,250 31.35 - Meridian Crossings LLC 555,950 40.98 Meridian Crossings LLC 1,207,010 23.66 Individual 550,250 50.97 - Novo LLC 519,175 60.91 - Ryan Companies 509,250 70.89 - DRFC Southdale Square LLC 454,390 80.80 CSM Corporation 258,870 100.78 CSM Corporation 439,250 90.77 - Morries Richfield JLR RE LL 439,250 100.77 - - Menards, Inc. 516,930 31.57 - Crossroads at Penn LLC 400,350 41.21 - Brixmor SPE 5 LLC 307,450 50.93 - SPE 5 LLC 302,010 60.92 - Target Corporation 299,310 70.91 - Southdale Square LLC 279,250 80.85 - The Gramercy Club City Bella 266,427 90.81 Total 7,815,965$ 13.72 % 6,972,167$ 21.13 %Source: Hennepin County Assessing OfficeTax CapacityTax Capacity20242015Percent ofPercent ofTotal NetTotal Net Page 204 of 579 180 City of RichfieldStatistical Section (Unaudited)Property Tax Levies and CollectionsLast Ten Fiscal YearsTable 8DelinquentTotal Tax Collections inFiscal Levy for SubsequentYear Fiscal Year Amount Years Amount201518,745,569$ 18,685,167$ 99.68 % -$ 18,685,167$ 99.68 %2016 19,125,557 19,001,616 99.35 - 19,001,616 99.35 2017 19,664,285 19,568,641 99.51 - 19,568,641 99.51 2018 21,083,735 20,972,448 99.47 (17,181) 20,955,267 99.39 2019 22,089,350 21,973,828 99.48 69,989 22,043,817 99.79 2020 23,267,441 23,178,920 99.62 (13,875) 23,165,045 99.56 2021 23,735,662 23,567,746 99.29 (82,567) 23,485,179 98.94 2022 25,777,379 25,636,397 99.45 38,674 25,675,072 99.60 2023 27,460,533 27,209,919 99.09 - 27,209,919 99.09 2024 29,062,775 28,685,014 98.70 - 28,685,014 98.70 Source: Hennepin County Assessing OfficeCollected within theTotal Collections to Dateof Levy of LevyPercentage PercentageFiscal Year of the Levy Page 205 of 579 181 Table 9General General 53000 Water and 51000 52000 Total DebtFiscal Redevelopment Obligation Obligation Lease Storm Sewer Sewer Water Sewer Primary PerYear Bonds Bonds Revenue Bonds Payable Bonds Bonds Bonds Bonds Government Capita2015 7,020,000$ 31,989,510$ -$ -$ 5,983,079$ 4,210,000$ 5,273,618$ -$ 54,476,207$ - 1,507$ 2016 6,340,000 42,212,887 - - 7,150,861 - 5,194,818 - 60,898,566$ - 1,666 2017 5,645,000 44,228,837 - - 6,896,061 - 4,846,018 - 61,615,916$ - 1,696 2018 4,940,000 52,399,608 - - 6,516,261 - 4,457,218 - 68,313,087$ - 1,869 2019 4,220,000 49,747,831 - - 6,950,730 - 5,304,682 1,141,176 67,364,419$ - 1,821 2020 3,475,000 51,621,351 - - 8,357,825 - 6,132,188 1,137,976 70,724,340$ - 1,912 2021 2,715,000 47,319,352 - 123,705 6,116,394 - 5,651,987 1,094,776 63,021,214$ - 1,700 2022 1,925,000 49,983,779 - 98,827 8,786,936 - 6,085,480 1,560,103 68,440,125$ - 1,873 2023 1,110,000 46,800,923 - 73,848 8,315,882 - 5,541,049 1,516,026 63,357,728$ - 1,638 2024 260,000 43,333,066 10,686,292 48,696 7,732,828 - 4,940,117 1,455,449 68,456,448$ 1,779 Details regarding the City's outstanding debt can be found in the notes to the financial statements.Information on personal income is not available.Percentage ofPersonal IncomeBusiness-Type ActivitiesGovernmental ActivitiesCity of RichfieldStatistical Section (Unaudited)Ratios of Outstanding Debt by TypeLast Ten Fiscal Years Page 206 of 579 182 City of RichfieldStatistical Section (Unaudited)Ratios of General Bonded Debt OutstandingLast Ten Fiscal YearsTable 10Less: AmountsGeneral Available in Fiscal Obligation Redevelopment Lease Debt Service Net TaxableYear Bonds Bonds Payable Total Fund Total Per Capita (2)2015 31,989,510$ 7,020,000$ -$ 39,009,510$ 1,653,862$ 37,355,648$ 1.46 % 1,067$ 2016 42,212,887 6,340,000 - 48,552,887 1,653,862 46,899,025 1.68 1,336 2017 44,228,837 5,645,000 - 49,873,837 1,904,043 47,969,794 1.62 1,372 2018 52,399,608 4,940,000 - 57,339,608 2,356,747 54,982,861 1.68 1,569 2019 49,747,831 4,220,000 - 53,967,831 3,039,324 50,928,507 1.46 1,481 2020 51,621,351 3,475,000 - 55,096,351 3,440,778 51,655,573 1.43 1,489 2021 47,319,352 2,715,000 123,705 50,158,057 5,067,755 45,090,302 1.22 1,356 2022 49,983,779 1,925,000 98,827 52,007,606 5,775,047 46,232,559 1.09 1,423 2023 46,800,923 1,110,000 73,848 47,984,771 5,912,811 42,071,960 0.97 1,088 2024 43,333,066 260,000 48,696 43,641,762 6,353,054 37,288,708 0.90 969 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.(1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.(2) Population data can be found in the Schedule of Demographic and Economic Statistics.Estimated MarketValue ofProperty (1)Percentage of Page 207 of 579 183 City of RichfieldStatistical Section (Unaudited)Computation of Direct and Overlapping DebtDecember 31, 2024Table 11EstimatedEstimated Share ofDebt Percentage OverlappingGovernmental UnitOutstanding (1) Applicable (2) DebtHennepin County1,601,029,548$ 1.78 % 28,498,326$ Independent School District #280, Richfield, MN128,130,000 68.24 87,435,912 Three Rivers Park District60,050,000 2.45 1,471,225 Hennepin Regional RR Authority76,945,000 1.78 1,369,621 Metropolitan Council1,558,153,207 0.88 13,711,748 Total overlapping debt3,424,307,755 132,486,832 City of Richfield43,641,762 100.00 43,641,762 Total direct and overlapping debt3,467,949,517$ 176,128,594$ Note: (1) Excludes Revenue bonds and special assessment bonds.(2) The percentage applicable to the City of Richfield was determined by dividing the portion of the tax capacity within the City by the total tax capacity of the taxing jurisdiction.Sources: Government entity Annual Comprehensive Financial Reports; Hennepin County Assessing Office Page 208 of 579 184 City of Richfield Statistical Section (Unaudited) Legal Debt Margin Information Last Ten Fiscal Years 2015 2016 2017 2018 Debt limit 85,649$ 92,180$ 97,893$ 107,632$ Total net debt applicable to limit 30,910 29,522 42,506 50,769 Legal debt margin 54,739$ 62,658$ 55,387$ 56,863$ Total net debt applicable to the limit as a percent of debt limit 36.09% 32.03% 43.42% 47.17% Fiscal Year Page 209 of 579 185 Table 12 2019 2020 2021 2022 2023 2024 115,388$ 120,542$ 127,932$ 146,047$ 151,855$ 151,183$ 47,972 47,440 44,306 47,135 46,745 42,555 67,416$ 73,102$ 83,626$ 98,912$ 105,110$ 108,628$ 41.57%39.36%34.63%32.27%30.78%28.15% Estimated market value 5,039,434,100$ Debt limit (3% of market value)151,183,023 Debt applicable to limit General Obligation Bonds 37,288,708 Legal debt margin 113,894,315$ Fiscal Year Legal Debt Margin Calculation for Fiscal Year 2023 Page 210 of 579 186 City of Richfield Statistical Section (Unaudited) Revenue Bond Coverage Last Ten Fiscal Years Table 13 Direct Net Fiscal Gross Operating Available Year Revenue (3) Expense (1) Revenue Principal Interest Total 2015 8,496,626$ 6,805,269$ 1,449,979$ 555,000$ 386,154$ 941,154$ 1.54 % 2016 4,929,871 3,520,861 1,305,812 570,000 364,299 934,299 1.40 2017 5,195,297 3,532,721 1,349,245 570,000 357,053 927,053 1.46 2018 5,771,247 3,943,875 1,126,957 735,000 324,269 1,059,269 1.06 2019 10,654,300 7,964,269 1,223,490 750,000 312,455 1,062,455 1.15 2020 10,763,600 7,807,898 1,318,264 1,760,000 416,995 2,176,995 0.61 2021 11,090,412 7,794,392 3,296,020 2,685,000 357,048 3,042,048 1.08 2022 11,663,916 8,619,335 3,044,581 960,000 394,171 1,354,171 2.25 2023 12,448,664 9,309,303 3,139,361 1,000,000 464,046 1,464,046 2.14 2024 11,497,797 9,149,899 2,347,898 1,185,000 424,664 1,609,664 1.46 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Total operating expenses excluding depreciation. (2) Include principal and interest of revenue bonds only. (3) Water and Sewar Utility and Storm Sewer Debt Service Requirements (2) Coverage Page 211 of 579 187 City of Richfield Statistical Section (Unaudited) Demographic and Economic Statistics Last Ten Fiscal Years Table 14 Per Capita Education Fiscal Personal Personal Median Level in Years School Unemployment Year Population Income Income Age of Schooling Enrollment 2015 36,557 -$ -$ - - 4,372 3.0 % 2016 36,338 - - - - 4,364 3.2 2017 36,544 - - - - 4,379 2.7 2018 36,436 - - - - 4,360 2.7 2019 36,993 - - - - 4,231 2.3 2020 36,994 - - - - 4,195 4.9 2021 36,661 - - - - 4,139 2.6 2022 36,543 - - - - 4,102 2.6 2023 38,678 - - - - 4,044 2.8 2024 38,482 - - - - 4,035 2.6 Note: Information on personal income, median age, and education levels is not available. Data Sources Metropolitan Council (www.metrocouncil.org) Minnesota Dept of Employment and Economic Development (www.deed.state.mn.us) U.S. Census Bureau (www.factfinder2.census.gov) Richfield School District #280 Minnesota State Demographic Center (mn.gov/admin/demography) Rate Page 212 of 579 188 City of RichfieldStatistical Section (Unaudited)Principal EmployersCurrent Year and Nine Years AgoTable 15Employees Rank Employees RankBest Buy Corporate office 5,300 1 25.99 % Best Buy Corporate office 4,500 1 23.01 %U.S. Bancorp 1,350 2 6.62 U.S. Bancorp 2,400 2 12.27 Independent School District #280 1,057 3 5.18 Independent School District #280 681 3 3.48 Super Target 350 4 1.72 Super Target 500 4 2.56 City of Richfield 327 5 1.60 Metro Sales, Inc 294 5 1.50 Fraser 299 6 1.47 Menard, Inc. 207 6 1.06 Headway Emotional Health Services 250 7 1.23 Fraser School 203 7 1.04 Menard, Inc. 200 8 0.98 City of Richfield 190 8 0.97 Weis Builders 100 9 0.49 Weis Builders 180 9 0.92 Pizza Luce 60 10 0.29 Headway Emotional Health Services 175 10 0.89 Total 9,293 45.57 % 9,330 47.70 %Note: Employee totals include only employees with full time status.(1) Estimated for 2024 as data specific to city is no longer available.Source: Minnesota Department of Employment and Economic DevelopmentEmployerEmployer20242015Employment (1)Employment PercentPercentof Cityof City Page 213 of 579 189 City of RichfieldStatistical Section (Unaudited)Full-Time Equivalent City Government Employees by FunctionLast Ten Fiscal YearsTable 162015 2016 2017 2018 2019 2020 2021 2022 2023 2024General GovernmentManagement services 3 3 3 3 3 3 3 3 3 4 Finance 6 5 6 6 5 6 5 2 4 7 City Clerk 9 9 10 9 9 10 10 10 10 8 Assessing 1 1 1 1 1 - - - - -Others 11 12 11 12 12 11 11 11 13 14 Public SafetyPolice 46 48 48 48 48 48 48 48 46 46 Dispatchers 8 - - - - - - - - -Others 14 14 14 14 14 14 14 15 15 14 FireFirefighters and officers 26 27 27 26 26 26 26 26 30 30 Community DevelopmentPlanning/zoning 2 2 2 2 2 2 2 2 2 3 Inspections 8 8 8 9 9 9 9 8 9 10 Others 8 6 7 8 8 8 10 9 8 6 Public WorksEngineering 3 3 3 4 4 5 5 5 5 5 Street and park maintenance 20 19 20 18 23 23 24 23 23 23 Forestry 4 4 4 4 - - - - Others 5 6 6 6 6 6 6 6 6 6 Parks and recreation 33 33 32 32 34 35 30 34 38 38 Liquor 26 25 23 24 24 25 28 33 29 34 Water and wastewater 18 17 16 18 19 19 19 17 19 19 Storm water 1 1 1 1 1 1 1 1 1 1 Recreation funds - - - - - - - - - - Total 252 243 242 245 248 251 251 253 261 268 Source: City budgets and personnel records.Function Page 214 of 579 190 City of RichfieldStatistical Section (Unaudited)Operating Indicators by FunctionLast Ten Fiscal yearsTable 172015 2016 2017 2018 2019 2020 2021 2022 2023 2024PolicePhysical arrests 435 471 489 591 491 701 701 829 676 838 Total offenses cited 5,764 4,486 4,818 5,315 4,728 3,429 2,078 2,961 2,400 3,580 FireEmergency responses 4,195 4,073 4,287 4,252 4,411 4,451 4,710 4,876 4,989 5,083 Fires extinguished 90 83 72 92 88 104 87 87 100 78 Other public worksStreets resurfacing (miles) 14.30 15.00 16.00 14.40 15 14.25 3 1.5 0.5 - Potholes repaired (tons of asphalt used) 100.79 81.40 18.64 84.93 98.2 138.52 97.32 69.9 33.5 14.5 Parks and recreationAthletic field permits issued55 56 53 57 58 30 49 39 36 31 WaterNew connections2 6 9 10 11 54 31 18 10 - Connections eliminated (redevelopment)4 18 3 - 6 - 2 3 3 2 Water main breaks19 16 15 14 11 12 9 20 11 17 Average daily consumption (millions of gallons)2.84 2.70 2.70 2.71 2.55 2.76 2.72 2.69 2.76 2.35 Peak daily consumption (millions of gallons) 4.97 4.80 5.23 5.26 3.88 3.03 4.94 4.40 6.87 3.98 Waste waterAverage daily sewage treatment (million of gallons)3.16 3.14 3.02 2.42 1.70 2.60 2.65 2.28 2.10 2.10 Note: Indicators are not available for the general government functionSources: Various city departmentsFunction Page 215 of 579 191 City of RichfieldStatistical Section (Unaudited)Capital Asset Statistics by FunctionLast Ten Fiscal YearsTable 182015 2016 2017 2018 2019 2020 2021 2022 2023 2024PoliceStations 1 1 1 1 1 1 1 1 1 1 Fire stations 2 2 2 2 2 2 2 2 2 2 Other public worksStreets (miles) 123.43 123.43 123.43 123.43 123.43 123.43 123.43 123.67 123.67 123.67 Highway (miles) 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 Street lights 3,349 3,349 3,349 3,349 3,349 3,349 3,458 3,458 3,458 3,471 Traffic signals 49 49 49 47 43 43 43 43 43 43 Parks and recreationAcreage 461 461 461 461 461 461 461 461 461 461 Playgrounds 21 21 21 21 21 21 21 21 21 21 Baseball/softball diamonds 21 21 21 21 21 21 21 21 21 21 Soccer/football fields 4 4 4 4 4 4 4 4 4 4 Hockey rinks - indoor 2 2 2 2 2 2 2 2 2 2 Community Center 1 1 1 1 1 1 1 1 1 1 Nature Center 1 1 1 1 1 1 1 1 1 1 WaterWater mains (miles) 121 121 120 120 120 120 120 118 118 118 Fire hydrants 1,052 1,050 1,053 1,053 1,073 1,073 1,074 1,074 1,074 1,080 Storage capacity (millions of gallons) 5 5 5 5 5 5 5 5 5 5 WastewaterSanitary sewer (miles) 119.4 119.4 119.4 118.0 118.0 118.0 118.0 97.2 97.2 97.2 Storm sewer (miles) 59.9 59.9 59.9 59.9 59.9 59.9 59.9 86.0 86.0 86.0 Note: No capital asset indicators are available for the general governmentsSources: Various city departmentsFunction Page 216 of 579 City of Richfield Communications Letter December 31, 2024 Page 217 of 579 City of Richfield Table of Contents Report on Matters Identified as a Result of the Audit of the Basic Financial Statements 1 Material Weakness 3 Required Communication 4 Financial Analysis 9 Emerging Issues 19 Page 218 of 579 1 Report on Matters Identified as a Result of the Audit of the Basic Financial Statements Honorable Mayor and Members of the City Council and Management City of Richfield Richfield, Minnesota In planning and performing our audit of the basic financial statements of the governmental activities, business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of and for the year ended December 31, 2024, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that have not been identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error, or fraud may occur and not be detected by such controls. However, as discussed below, we identified a certain deficiency in internal control that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the City's basic financial statements will not be prevented, or detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows: • Reasonably possible. The chance of the future event or events occurring is more than remote but less than likely. • Probable. The future event or events are likely to occur. The material weakness identified is stated within this letter. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Page 219 of 579 2 The City's written response to the material weakness identified in our audit has not been subjected to audit procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. The accompanying memorandum also includes financial analysis provided as a basis for discussion. The matters discussed herein were considered by us during our audit and they do not modify the opinion expressed in our Independent Auditor's Report dated September 23, 2025, on such statements. The purpose of this communication, which is an integral part of our audit, is to describe for the Members of the City Council and management and others within the City and state oversight agencies the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose. St. Cloud, Minnesota September 23, 2025 Page 220 of 579 3 City of Richfield Material Weakness Lack of Segregation of Accounting Duties The City had a lack of segregation of accounting duties due to a limited number of office employees due to experiencing significant turnover during the year. The lack of adequate segregation of accounting duties could adversely affect the City's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements. In order to have appropriate segregation of accounting duties, the performance of the following duties would need to be completed by a different employee: initiation and authorization of transactions, recording and processing of transactions, reconciliation and reporting of transactions, and financial information, and custody of assets. During the course of our engagement, we proposed a material audit adjustment that would not have been identified as a result of the City's existing internal controls system and, therefore, could have resulted in a material misstatement of the City's financial statements. The material audit adjustments detected as a result of audit procedures were corrected by management. Additionally, adjustment to prior period net position and fund balances were determined and corrected by management. Management and the City Council must remain aware of this situation and should continually monitor the accounting system, including changes that occur. Page 221 of 579 4 City of Richfield Required Communication We have audited the basic financial statements of the governmental activities, business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2024. Professional standards require that we advise you of the following matters related to our audit. Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter, our responsibility, as described by professional standards, is to form and express opinions about whether the basic financial statements prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the basic financial statements does not relieve you or management of its respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the basic financial statements are free of material misstatement. An audit of the basic financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgement, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Generally accepted accounting principles provide for certain Required Supplementary Information (RSI) to supplement the basic financial statements. Our responsibility with respect to the RSI, which supplements the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI was not audited and, because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance, we do not express an opinion or provide any assurance on the RSI. Our responsibility for the supplementary information accompanying the basic financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the basic financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Our responsibility with respect to the other information in documents containing the audited basic financial statements and auditor's report does not extend beyond the basic financial information identified in the report. We have no responsibility for determining whether this other information is properly stated. This other information was not audited, and we do not express an opinion or provide any assurance on it. Page 222 of 579 5 City of Richfield Required Communication Our Responsibility in Relation to Government Auditing Standards As communicated in our engagement letter, part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Our Responsibility in Relation to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) As communicated in our engagement letter, in accordance with the Uniform Guidance, we examined on a test basis, evidence about the City's compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement applicable to each of its major federal programs for the purpose of expressing an opinion on the City's compliance with those requirements. While our audit provided a reasonable basis for our opinion, it did not provide a legal determination on the City's compliance with those requirements. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence. Significant Risks Identified We have identified the following significant risks of material misstatements: • Improper Revenue Recognition • Revenue recognition is considered a fraud risk on substantially all engagements as it generally has a significant impact on the results of the government operations. In addition, complexities exist surrounding the calculation and recording of various revenue sources. • Management Override of Controls through Journal Entries • Management override of internal control is considered a risk in substantially all engagements as management may be incentivized to produce better results. • Significant Accounting Estimates • Net Pension Liability, Deferred Outflows of Resources Related to Pensions, and Deferred Inflows of Resources Related to Pensions are generally material to the financial statements and involve significant estimates. Page 223 of 579 6 City of Richfield Required Communication Significant Risks Identified (Continued) • Significant Accounting Estimates (Continued) • Total OPEB Liability, Deferred Outflows of Resources Related to OPEB, and Deferred Inflows of Resources Related to OPEB are generally material to the financial statements and involve significant estimates. • Land held for resale is generally material to the financial statements and involves significant estimates. • Lease Receivable and Deferred Inflows of Resources Related to leases are generally material to the financial statements and involve significant estimates. • Improper Payroll Activity • Due to a significant amount of turnover, there is a risk of incorrectly recording payroll activity within the City. • Improper Disbursement Activity • Due to a significant amount of turnover, there is a risk of incorrectly recording credit card disbursement activity within the City. Qualitative Aspects of the City's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in the notes to the basic financial statements. There have been no initial selection of accounting policies and no changes to significant accounting policies or their application during 2024. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates and Related Disclosures Accounting estimates and related disclosures are an integral part of the basic financial statements prepared by management and are based on management's current judgements. Those judgements are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the basic financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgements. The most sensitive estimates affecting the basic financial statements relate to: Net/Total Other Post Employment Benefits (OPEB) Liability, Deferred Outflows of Resources Related to OPEB and Deferred Inflows of Resources Related to OPEB – These balances are based on an actuarial study using the estimates of future obligations of the City for post-employment benefits. Net Pension Liability, Deferred Outflows of Resources Relating to Pensions and Deferred Inflows of Resources Relating to Pensions – These balances are based on an allocation by the pension plans using estimates based on contributions. Land Held for Resale – Land held for resale is recorded using either the lower of historical cost or estimated resale value. Lease Receivable and Related Deferred Inflows of Resources Related to Leases - These balances are based on estimates and judgments determined by the City related to the discount rate, lease term, and lease payments. Page 224 of 579 7 City of Richfield Required Communication Qualitative Aspects of the City's Significant Accounting Practices (Continued) Significant Accounting Estimates (Continued) We evaluated the key factors and assumptions used to develop the accounting estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain basic financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The basic financial statement disclosures are neutral, consistent, and clear. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For the purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effects of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the basic financial statements taken as a whole and each applicable opinion unit. The following bullet point summarizes the financial statement misstatement whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the basic financial statements taken as a whole and each applicable opinion unit. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. • Inventory balance overstated based on error projection In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. The following material misstatements that we identified as a result of our audit procedures were brought to the attention of and corrected by management. • Accounts and contracts payable • Prior period adjustment related to accounts receivable and revenue • Prior period adjustment related to capital assets and accumulated depreciation allocation, as well as related interfund balance amounts. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's basic financial statements or the auditor's report. No such disagreements arose during the course of our audit. Page 225 of 579 8 City of Richfield Required Communication Representations Requested from Management We have requested certain written representations from management, which are included in the management representation letter. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management has informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditor. Other Information Included in Annual Reports Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City's annual reports, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. We applied certain limited procedures to the RSI that supplements the basic financial statements. Our procedures consisted 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the basic financial statements or to the basic financial statements themselves. We were not engaged to report on the other information accompanying the basic financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the basic financial statements. Page 226 of 579 9 City of Richfield Financial Analysis The following pages provide graphic representation of select data pertaining to the financial position and operations of the City for the past five years. Our analysis of each graph is presented to provide a basis for discussion of past performance and how implementing certain changes may enhance future performance. We suggest you view each graph and document if our analysis is consistent with yours. General Fund As illustrated in the graph below, total revenues exceeded total expenditures in the General Fund in 2024. This activity, combined with net transfers in of $292,290 resulted in an increase in fund balance of $541,814 in 2024. The City's total fund balance of $12,028,802 at December 31, 2024, represents 39.1% of General Fund expenditures based on 2024 spending levels. The City relies on year-end fund balance to finance much of the subsequent year's expenditures, since major property tax settlements are not received until June. The City's target General Fund balance is to maintain a minimum unassigned fund balance of 40% of the current year end actual General Fund expenditures. At December 31, 2024, the City's unassigned fund balance amounted to $11,710,827, which excludes nonspendable fund balance for prepaid items of $317,975. This amount equals 38.1% of the City's 2024 actual General Fund expenditures. 2020 2021 2022 2023 2024 Total Revenues $26,176,379 $26,207,186 $27,178,618 $28,487,264 $30,997,426 Total Expenditures 24,310,173 26,300,517 27,193,780 28,718,191 30,747,902 Fund Balance 10,025,490 10,564,929 10,990,390 11,486,988 12,028,802 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 General Fund Revenues, Expenditures, and Fund Balance Page 227 of 579 10 City of Richfield Financial Analysis General Fund Revenues Trends for each of the City's major revenue classifications over the past five years are portrayed in the bar graph below. General Fund revenues increased $2,510,162 from 2023. Property taxes increased $1,171,227 because of an increase in the levy. Licenses and permits increased $152,210 as a result of additional building activity during the year. Intergovernmental revenues increased $1,522,216 due to an increase in Local Government Aid (LGA). Miscellaneous revenues decreased $468,796 as a result of a decrease in interest income due to market conditions. All other categories remained consistent with the prior year. Property Taxes Fees and Fines License and Permits Intergovernmental Charges for Services Miscellaneous 2020 $17,559,198 $189,767 $1,743,695 $4,828,595 $1,760,254 $94,870 2021 18,938,165 176,642 1,695,431 3,492,120 1,842,554 62,274 2022 20,052,150 175,056 1,379,973 3,419,575 1,969,877 181,987 2023 21,040,066 180,391 981,777 3,650,861 1,919,962 714,207 2024 22,211,293 221,719 1,133,987 5,173,077 2,011,939 245,411 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 General Fund Revenues Page 228 of 579 11 City of Richfield Financial Analysis General Fund Revenues (Continued) The City's revenues by source for 2024 and 2023 are shown below. As seen on the following graphs, the categories stay fairly consistent between the two years. Property Taxes 71% Fees and Fines 1% License and Permits 4% Intergovernmental 17% Charges for Services 6%Miscellaneous 1% 2024 General Fund Revenues Property Taxes 74% Fees and Fines 1% License and Permits 3% Intergovernmental 13% Charges for Services 7%Miscellaneous 2% 2023 General Fund Revenues Page 229 of 579 12 City of Richfield Financial Analysis General Fund Expenditures Total General Fund expenditures increased 7.1%, or $2,029,711 from 2023 to 2024. The most significant increase by program was in public safety. Public safety expenditures increased in total by $774,671 due to wage increases. Fire expenditures increased by $283,449 due to increased wages. Recreation services, administrative services and finance expenditures increased due to increased wages. Other programs' spending was consistent from 2023 to 2024. Legislative/Executive AdministrativeServices Finance Public Safety Fire CommunityDevelopment Public Works RecreationServices Capital Outlay 2020 $836,275 $954,870 $513,559 $9,924,577 $4,537,374 $1,640,111 $4,216,177 $1,594,809 $92,421 2021 941,743 693,573 765,641 10,309,436 5,136,190 1,796,086 4,657,771 2,000,077 - 2022 990,581 959,929 1,005,251 10,437,293 5,314,355 1,616,827 4,884,218 1,985,326 - 2023 1,034,837 959,262 1,046,114 11,133,159 5,618,697 1,652,012 5,064,179 2,209,931 - 2024 1,162,137 1,250,239 1,359,854 11,907,830 5,902,146 1,736,430 5,104,976 2,364,290 - $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 $13,000,000 General Fund Expenditures Page 230 of 579 13 City of Richfield Financial Analysis General Fund Expenditures (Continued) The City's expenditures by program for 2024 and 2023 are shown below. As seen on the following graphs, expenditure by program remained consistent from 2023 to 2024. Legislative/ Executive 4%Administrative Services 4% Finance 4% Public Safety 39%Fire 19% Community Development 6% Public Works 17% Recreation Services 7% 2024 General Fund Expenditures Legislative/ Executive 3%Administrative Services 3% Finance 4% Public Safety 39%Fire 19% Community Development 6% Public Works 18% Recreation Services 8% 2023 General Fund Expenditures Page 231 of 579 14 City of Richfield Financial Analysis General Fund Revenues and Expenditures Variance Actual Final Budget - Final Budget Amounts Over (Under) Revenues Property taxes 22,220,051$ 22,211,293$ (8,758)$ Fines and fees 200,000 221,719 21,719 Licenses and permits 1,007,550 1,133,987 126,437 Intergovernmental revenues 5,467,524 5,173,077 (294,447) Charges for services 1,650,240 2,011,939 361,699 Special assessments - 19,141 19,141 Investment income 75,000 198,320 123,320 Miscellaneous revenues 60,750 27,950 (32,800) Total revenues 30,681,115 30,997,426 316,311 Expenditures Legislative/executive 1,224,208 1,162,137 (62,071) Administrative services 1,298,423 1,250,239 (48,184) Finance 1,398,838 1,359,854 (38,984) Public safety 11,769,553 11,907,830 138,277 Fire 5,744,315 5,902,146 157,831 Community development 1,810,320 1,736,430 (73,890) Public works 5,219,890 5,104,976 (114,914) Recreation services 2,325,548 2,324,290 (1,258) Total expenditures 30,791,095 30,747,902 (43,193) Other financing sources (uses) Net transfers 109,980 292,290 182,310 Net change in fund balances -$ 541,814$ 541,814$ For the year ended December 31, 2024, the City budgeted for revenues and transfers into the General Fund to equal expenditures and transfers out. Actual revenues and transfers in exceeded expenditures and transfers out by $541,814. Revenues were overall over budget by $316,311, or 1.0%. Licenses and permits revenue was over budget $126,437 due to higher building permits than anticipated. Investment income was over budget $123,320 due to conservative budgeting. Charges for services revenue was over budget $361,699 due to conservative budgeting. Intergovernmental revenues were under budget due to not receiving a public works grant that was included in the budget. Expenditures were $43,193 or 0.1% under budget. The most significant variances were in public safety and fire due to increased wages. Page 232 of 579 15 City of Richfield Financial Analysis Tax Levy, Capacity, and Rates The graph below presents information relating to the City's tax levy, tax capacity and rates. The levy for 2024 includes the General Fund levy of $22,442,251 plus a levy for the Debt Service and Capital Project Funds totaling $5,321,543. As illustrated below, the taxable tax capacity of the City has experienced a steady increase over the last five years. While the City has increased the levy during this period, the tax capacity rate has declined because of increases in market values and tax capacity. $36,111,232 $37,567,917 $39,253,300 $45,429,412 $47,158,126 $22,133,486 $23,394,027 $24,570,597 $26,205,477 $27,763,794 53.29%54.08%53.68% 50.84% 52.25% 0% 10% 20% 30% 40% 50% 60% 70% $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 2020 2021 2022 2023 2024 Tax Capacity, Levy, and Rates Taxable Tax Capacity Certified City Levy Tax Capacity Rate Page 233 of 579 16 City of Richfield Financial Analysis Liquor Fund The City's liquor store reported an increase in sales from 2023 to 2024 of 0.6%. Cost of sales decreased by 2.5%. Operating expenses in the Liquor Fund increased 12.4%. The City's gross profit percentage increased from 2023 to 2024. The City's gross profit percentage is slightly below both comparable metro stores and the metro municipal average. $9,886,359 $10,355,772 $10,659,157 $10,170,469 $9,920,096 $2,469,884 $2,558,138 $2,565,546 $2,464,105 $2,769,762 $13,262,924 $13,916,528 $14,200,736 $13,935,832 $14,024,984 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 $13,000,000 $14,000,000 $15,000,000 2020 2021 2022 2023 2024 Liquor Fund Cost of Sales Operating Expenses Sales 2024 Metro City of City of City of City of City of Municipal Richfield Richfield Edina*Eden Prairie*Savage*Average* Sales 14,024,984$ 13,935,832$ 13,330,018$ 12,069,015$ 7,108,420$ 8,306,426$ Costs of sales 9,920,096 10,170,469 9,005,523 8,470,531 5,096,900 5,986,142 Gross profit 4,104,888 3,765,363 4,324,495 3,598,484 2,011,520 2,320,284 Operating expenses 2,769,762 2,464,105 3,910,170 2,786,634 1,422,900 1,906,946 Operating income 1,335,126 1,301,258 414,325 811,850 588,620 413,338 Gross profit percentage 29.3%27.0%32.4%29.8%28.3%27.9% 2023 * Individual metro municipal and averages obtained from the Office of State Auditor, Analysis of Municipal Liquor Store Operations Report. Page 234 of 579 17 City of Richfield Financial Analysis Water and Sewer Utilities Fund Charges for services in the fund decreased $862,402 or 8.4% from 2023 to 2024. This decrease was the result of a reduction in usage. Operating expenses increased $633,790 or 7.0%. The Fund had operating loss of $272,320 in 2024 with depreciation. The Fund had fully funded depreciation expense from 2020-2023. $8,716,310 $9,220,649 $9,659,149 $10,241,076 $9,378,674 $8,060,618 $8,106,095 $9,004,417 $9,017,204 $9,650,994 $2,074,472 $2,599,956 $2,143,214 $2,602,340 $1,373,640 $655,692 $1,114,554 $654,732 $1,223,872 $(272,320) $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 2020 2021 2022 2023 2024 Charges for Services Operating Expenses Operating Income without Depreciation Operating Income (Loss) with Depreciation Page 235 of 579 18 City of Richfield Financial Analysis Storm Sewer Fund Charges for services in the Fund decreased $98,901 from 2023 to 2024, or 4.5%. Operating expenses decreased $327,840 or 13.8%. The Fund reported an operating income of $64,480 in 2024 with depreciation. The Fund has fully funded depreciation expense for all years presented besides 2021 and 2023. $2,047,290 $1,869,763 $2,004,767 $2,219,957 $2,121,056 $1,894,444 $1,910,721 $1,866,283 $2,384,416 $2,056,576 $881,230 $696,064 $901,367 $549,390 $976,191 $152,846 $(40,958) $138,484 $(164,459) $64,480 $(400,000) $(200,000) $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 2020 2021 2022 2023 2024 Storm Sewer Fund Charges for Services Operating Expenses Operating Income without Depreciation Operating Income with Depreciation Page 236 of 579 19 City of Richfield Emerging Issues Executive Summary The following is an executive summary of financial related updates to assist you in staying current on emerging issues in accounting and finance. This summary will give you a preview of the new standards that have been recently issued and what is on the horizon for the near future. The most recent and significant updates include: • Accounting Standard Update – GASB Statement No. 102 – Certain Risk Disclosures GASB has issued GASB Statement No. 102 relating to risk disclosures. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. • Accounting Standard Update – GASB Statement No. 103 – Financial Reporting Model Improvements GASB has issued GASB Statement No. 103 relating to changes in financial reporting requirements. The changes provide clarity, enhance the relevance of information, provide more useful information for decision-making, and provide for greater comparability amongst government entities. • Accounting Standard Update – GASB Statement No. 104 – Disclosure of Certain Capital Assets GASB has issued GASB Statement No. 104 relating to capital asset disclosures. The disclosures required by this Statement provide users of the financial statements with essential information about certain types of capital assets. The following are extensive summaries of the current updates. As your continued business partner, we are committed to keeping you informed of new and emerging issues. We are happy to discuss these issues with you further and their applicability to your City. Page 237 of 579 20 City of Richfield Emerging Issues Accounting Standard Update – GASB Statement No. 102 – Certain Risk Disclosures The objective of this Statement is to provide users of government financial statements with information about risks related to a government's vulnerabilities due to certain concentrations or constraints that is essential to their analyses for making decisions or assessing accountability. This Statement provides definitions for concentration and constraint. A concentration as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government's highest level of decision-making authority. This Statement requires a government to assess whether a concentration or constraint could present a risk of financial difficulty. The City will need to make a disclosure in the notes to the financial statements if all three of the following criteria are true: • The City knows about the concentration or constraint prior to financial statement issuance. • The concentration or constraint makes the City vulnerable to risk of a substantial impact. • An event or events associated with the concentration or constraint that could cause a substantial impact have either (1) happened; (2) started to happen; or (3) are more likely than not to start happening within 12 months of the financial statements being issued. If a government determines the above criteria for disclosure have been met, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government's vulnerability to the risk of a substantial impact. Disclosures are required for the government as a whole as well as any opinion unit in the financial statements that includes outstanding revenue debt. Disclosures can be combined to avoid unnecessary duplication (e.g., a subsequent event footnote). GASB Statement No. 102 is effective for fiscal years beginning after June 15, 2024. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. Page 238 of 579 21 City of Richfield Emerging Issues Accounting Standard Update – GASB Statement No. 103 – Financial Reporting Model Improvements The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. This Statement also addresses certain application issues. This Statement addresses 5 areas of the financial statements (1) Management's Discussion and Analysis (MD&A), (2) Unusual or Infrequent Items, (3) Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position, (4) Major Component Unit Information, and (5) Budgetary Comparison Information. This Statement continues the requirement that the MD&A precede the basic financial statements as part of the Required Supplementary Information (RSI). This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. The Statement stresses that detailed analyses should explain why balances and results of operations changed, rather than stating amounts and "boilerplate" discussions. This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows. This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. The Statement provides clarification regarding operating and nonoperating revenues and expenses. Also, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. This Statement requires governments to present each major component unit separately in the reporting entity's statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements. This Statement requires governments to present budgetary comparison information using a single method of communication - RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI. GASB Statement No. 103 is effective for fiscal years beginning after June 15, 2025. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. Page 239 of 579 22 City of Richfield Emerging Issues Accounting Standard Update – GASB Statement No. 104 – Disclosure of Certain Capital Assets The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. This Statement requires certain types of capital assets continue to be disclosed separately in the capital assets note disclosures including presentation of capital assets by major class and separate disclosure of lease assets, subscription assets, and intangible right-to-use assets. This Statement requires additional disclosures for capital assets held for sale. A capital asset is held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. GASB Statement No. 104 is effective for fiscal years beginning after June 15, 2025. Earlier application is encouraged. Information provided above was obtained from www.gasb.org. Page 240 of 579 77 City of Richfield Hennepin County, Minnesota Schedule of Expenditures of Federal Awards and Independent Auditor's Reports December 31, 2024 Page 241 of 579 City of Richfield Table of Contents Schedule of Expenditures of Federal Awards 1 Notes to Schedule of Expenditures of Federal Awards 2 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 3 Report on Compliance for Each Major Program and Report on Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with the Uniform Guidance 5 Schedule of Findings and Questioned Costs 8 Minnesota Legal Compliance 11 Page 242 of 579 See notes to Schedule of Expenditures of Federal Awards. 1 Federal Expenditures U.S. Department of Housing and Urban Development Received Directly Section 8 Housing Choice Voucher Program 14.871 2,760,476$ Passed through Hennepin County Community Development Block Grant - Entitlement Grant 14.218 70,000 Total U.S. Department of Housing and Urban Development 2,830,476 U.S. Department of Homeland Security Passed through Hennepin County Homeland Security Grant Program 97.067 12,525 Total U.S. Department of Homeland Security 12,525 U.S. Department of Health and Human Services Passed through the State of Minnesota Immunization Cooperative Agreements 93.268 22,300 Epidemiology and Laboratory Capcity for Infectious Diseases 93.323 68,512 Public Health Emergency Preparedness 93.069 55,967 Total U.S. Department of Health and Human Services 146,779 U.S. Department of Justice Received directly Bulletproof Vest Partnership Program 16.607 3,795 Total U.S. Department of Justice 3,795 U.S. Department of Transportation Passed through the State of Minnesota DWI Enforcement 20.616 74,975 Distracted Vehicle Grant 20.600 34,830 Total U.S. Department of Transportation 109,805 U.S. Department of Agriculture Passed through the State of Minnesota Local Food Purchase Assistance Program 10.182 50,698 Total U.S. Department of Agriculture 50,698 U.S. Department of Treasury Received directly Coronavirus State and Local Fiscal Recovery Funds 21.027 755,738 Total U.S. Department of Treasury 755,738 Total Federal Expenditures 3,909,816$ Federal Agency/Pass Through Agency/Program Title City of Richfield Schedule of Expenditures of Federal Awards Year Ended December 31, 2024 Assistance Listing Number Federal Page 243 of 579 2 2 City of Richfield Notes to Schedule of Expenditures of Federal Awards NOTE 1 – BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the City under programs of the federal government for the year-ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3 – PASS-THROUGH GRANT NUMBERS All pass-through entities listed previously use the same Assistance Listing numbers as the federal grantors to identify these grants and have not assigned any additional identifying numbers. NOTE 4 – INDIRECT COST RATE The City did not elect to use the 10 percent de minimis indirect cost rate, as allowed under the Uniform Guidance. Page 244 of 579 3 3 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report Honorable Mayor and Members of the City Council City of Richfield Richfield, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of and for the year ended December 31, 2024, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated September 23, 2025. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses, or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs that we consider to be a material weakness. Audit Finding 2024-001. Page 245 of 579 4 4 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City's Response to the Finding Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the finding identified in our audit that are described in the accompanying Schedule of Findings and Questioned Costs. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. St. Cloud, Minnesota September 23, 2025 Page 246 of 579 5 5 Report on Compliance for each Major Federal Program and Report on Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with the Uniform Guidance Independent Auditor's Report Honorable Mayor and Members of the City Council City of Richfield Richfield, Minnesota Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited compliance of the City of Richfield, Minnesota, with the types of compliance requirements identified as subject to audit in the (U.S. Office of Management and Budget) OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended December 31, 2024. The City's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. In our opinion, the City complied in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2024. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's federal programs. Page 247 of 579 6 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. 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, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in Auditor's Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Page 248 of 579 7 7 Report on Internal Control over Compliance (Continued) Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota, as of and for the year ended December 31, 2024, and have issued our report thereon dated September 23, 2025, which contained unmodified opinions on the financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the 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 auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditure of Federal Awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole. St. Cloud, Minnesota September 23, 2025 Page 249 of 579 8 City of Richfield Schedule of Findings and Questioned Costs SECTION I – SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: We issued an unmodified opinion on the fair presentation of the financial statements of the governmental activities, business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information in accordance with accounting principles generally accepted in the United States of America (GAAP). Internal control over financial reporting: • Material weakness(es) identified? Yes, Audit Findings 2024-001 • Significant deficiency(ies) identified? None reported Noncompliance material to financial statement noted? No Federal Awards Type of auditor's report issued on compliance for major programs: Unmodified Internal control over major programs: • Material weakness(es) identified? No • Significant deficiency(ies) identified? None reported Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No Identification of Major Programs Assistance Listing No: 14.871 Name of Federal Program or Cluster Section 8 Housing Choice Voucher Program Assistance Listing No: 21.027 Name of Federal Program or Cluster Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low risk auditee? No Page 250 of 579 9 City of Richfield Schedule of Findings and Questioned Costs SECTION II – FINANCIAL STATEMENT FINDINGS Audit Finding 2024-001 Criteria: Internal control that supports the City's ability to initiate, record, process and report financial data consistent with the assertions of management in the financial statements requires adequate segregation of accounting duties. A material audit adjustment and prior period adjustments were proposed and subsequently recorded by management. Condition: The City does not have adequate segregation of accounting duties. Context: This finding impacts the internal control for all significant accounting functions. Effect or Potential Effect: The lack of adequate segregation of accounting duties could adversely affect the City's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Cause: There was significant turnover of office employees. Recommendation: Continue to review the accounting system, including changes that may occur. Implement segregation whenever practical during times of turnover. Views of Responsible Officials and Planned Corrective Action: CORRECTIVE ACTION PLAN (CAP): 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding Administration will review current segregation of accounting duties to determine if further segregation is possible. 3. Official Responsible for Ensuring CAP Mary Bogie, Finance Director, is the official responsible for ensuring corrective action of the deficiency. 4. Planned Completion Date for CAP The planned completion date for the CAP is December 31, 2025. 5. Plan to Monitor Completion of CAP The Finance Director will be monitoring this CAP. Page 251 of 579 10 10 City of Richfield Schedule of Findings and Questioned Costs SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None SECTION IV – PRIOR YEAR FINDINGS AND QUESTIONED COSTS Audit Finding 2023-002 - Improve Ice Arena Revenue Reconciliation Process Corrective action was taken by the City during 2024. Page 252 of 579 11 Minnesota Legal Compliance Independent Auditor's Report Honorable Mayor and Members of the City Council City of Richfield Richfield, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Richfield, Minnesota as of and for the year ended December 31, 2024, and the related notes to financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated September 23, 2025. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting – bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statute § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. The purpose of this 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. Accordingly, this communication is not suitable for any other purpose. St. Cloud, Minnesota September 23, 2025 Page 253 of 579 City of Richfield Caroline Stutsman, CPA Page 254 of 579 The Audit Page 255 of 579 Financial Statement Opinion ◊Management is responsible for the financial statements ◊Auditor is responsible for expressing an opinion on the financial statements ◊Unmodified Opinion –best opinion an auditor is able to offer ◊Provides assurance that the financial statements are fairly presented in all material respects Government Auditing Standards ◊Lack of Segregation of Accounting Duties Federal Single Audit –no findings Minnesota Legal Compliance Audit –no findings Independent Auditor’s Report Page 256 of 579 Financial Communications Page 257 of 579 General Fund Revenues, Expenditures, and Fund Balance Page 258 of 579 General Fund Revenue Page 259 of 579 General Fund Expenditures Page 260 of 579 General Fund Revenues and Expenditures Variance Actual Final Budget - Final Budget Amounts Over (Under) Revenues Property taxes 22,220,051$ 22,211,293$ (8,758)$ Fines and fees 200,000 221,719 21,719 Licenses and permits 1,007,550 1,133,987 126,437 Intergovernmental revenues 5,467,524 5,173,077 (294,447) Charges for services 1,650,240 2,011,939 361,699 Special assessments - 19,141 19,141 Investment income 75,000 198,320 123,320 Miscellaneous revenues 60,750 27,950 (32,800) Total revenues 30,681,115 30,997,426 316,311 Expenditures Legislative/executive 1,224,208 1,162,137 (62,071) Administrative services 1,298,423 1,250,239 (48,184) Finance 1,398,838 1,359,854 (38,984) Public safety 11,769,553 11,907,830 138,277 Fire 5,744,315 5,902,146 157,831 Community development 1,810,320 1,736,430 (73,890) Public works 5,219,890 5,104,976 (114,914) Recreation services 2,325,548 2,324,290 (1,258) Total expenditures 30,791,095 30,747,902 (43,193) Other financing sources (uses) Net transfers 109,980 292,290 182,310 Net change in fund balances -$ 541,814$ 541,814$ Page 261 of 579 Tax Capacity, Levy, and Rates Page 262 of 579 Liquor Fund Page 263 of 579 Liquor Fund 2024 Metro City of City of City of City of City of Municipal Richfield Richfield Edina*Eden Prairie*Savage*Average* Sales 14,024,984$ 13,935,832$ 13,330,018$ 12,069,015$ 7,108,420$ 8,306,426$ Costs of sales 9,920,096 10,170,469 9,005,523 8,470,531 5,096,900 5,986,142 Gross profit 4,104,888 3,765,363 4,324,495 3,598,484 2,011,520 2,320,284 Operating expenses 2,769,762 2,464,105 3,910,170 2,786,634 1,422,900 1,906,946 Operating income 1,335,126 1,301,258 414,325 811,850 588,620 413,338 Gross profit percentage 29.3%27.0%32.4%29.8%28.3%27.9% 2023 Page 264 of 579 Water and Sewer Utilities Fund Page 265 of 579 Storm Sewer Fund Page 266 of 579 Auditor Page 267 of 579 Caroline Stutsman AUDIT PARTNER 320-650-0228 CAROLINE.STUTSMAN@CREATIVEPLANNING.COM Page 268 of 579 Thank You Page 269 of 579 This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.Page 270 of 579 City Council Meeting 10/14/2025 Agenda Section: Consent Calendar Agenda Item: 7.b. Report Prepared By: Jennifer Anderson, Support Services Manager Department Director: Jay Henthorne, Police Chief Item for Consideration: Consider approval for a Temporary On-Sale Intoxicating Liquor license for the Blessed Trinity Catholic School, located at St. Richard's Catholic Church, 7540 Penn Avenue South, for their Annual Gala taking place December 6, 2025. EXECUTIVE SUMMARY On September 17, 2025, the City received application materials for a Temporary On- Sale Intoxicating Liquor license for the Blessed Trinity Catholic School, located at St. Richard's Catholic Church, 7540 Penn Avenue South, for their Annual Gala taking place December 6, 2025. They will serve intoxicating liquor, wine and 3.2 percent malt liquor from 6:00 p.m. to 10:00 p.m. on Saturday, December 6, 2025, only. They will provide a dinner. The Blessed Trinity Catholic School has contacted food sanitarians from the City of Bloomington to ensure proper food handling practices are followed. The Director of Public Safety has reviewed all required information and documents and has found no basis for denial. The City Council has previously granted this license in conjunction with this event. HISTORICAL CONTEXT The applicant has satisfied the following requirements for the issuance of this license: • The required licensing fee has been paid. • Proof of liquor liability insurance has been provided showing the Catholic Mutual Relief Society of America affording the coverage. RECOMMENDED ACTION By motion: Approve issuance of a Temporary On-Sale Intoxicating Liquor license for the Blessed Trinity Catholic School, located at St. Richard's Catholic Church, 7540 Penn Avenue South for their Annual Gala taking place December 6, 2025. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS This is routine licensing business for the City. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) Page 271 of 579 Richfield City Code Section 1202.05 requires all applicants to comply with all the provisions of this code, as well as the provisions of Minnesota Statute Chapter 340A. CRITICAL TIMING ISSUES There are no timing issues. FINANCIAL IMPACT The required licensing fees have been received. LEGAL CONSIDERATIONS There are no legal considerations. ALTERNATIVE RECOMMENDATION(S) The Council could deny the approval of the Temporary On-Sale Intoxicating Liquor license for the Blessed Trinity Catholic School. This would mean the applicant would not be able to serve intoxicating liquor, wine or 3.2 percent malt liquor; however, Public Safety has not found any basis for denial. ATTACHMENTS None Page 272 of 579 City Council Meeting 10/14/2025 Agenda Section: Consent Calendar Agenda Item: 7.c. Report Prepared By: Steve McDaniel, Budget, Cash, and Debt Manager Department Director: Karl Huemiller, Recreation Director Item for Consideration: First reading of a transitory ordinance providing funding for certain capital improvements from the Liquor Contribution Special Revenue Fund. EXECUTIVE SUMMARY As part of the Capital Improvement Budget (CIB) and annual City Budget process, certain special revenue funds are allocated each year to fund capital projects identified through the budget process. The source of the special revenue funds are profits derived from the City’s Liquor Store operation. These profits are transferred to the Liquor Contribution Special Revenue Fund. The City Charter requires that a transitory ordinance be used to authorize the expenditure of the funds. The proposed funding for 2025, per the approved CIB budget, totals $475,000 and encompasses several park and recreation related projects. The projects are listed below. Multi-Year Community Center Building Repair 10,000 Multi-Year Ice Arena Repair 15,000 Parks Major Maintenance & Repair 450,000 Total $ 475,000 HISTORICAL CONTEXT At the December 10, 2024 City Council meeting, the City Council authorized $475,000 of Special Revenue Funds for improvements to several City capital improvements in 2025. Included in the $475,000 are: Multi-Year Community Center Building Repair 10,000 Multi-Year Ice Arena Repair 15,000 Multi-Year Donaldson Park Building Rebuild 450,000 Total $ 475,000 A second reading of the attached ordinance is scheduled on October 28, 2025. RECOMMENDED ACTION Approve the attached transitory ordinance providing for the expenditure of funds from the Liquor Contribution Special Revenue Fund for certain capital improvements. Page 273 of 579 EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) City Charter Section 7.12, Subd. 2 requires that Special Revenue Funds used for capital improvements must be authorized by ordinance. CRITICAL TIMING ISSUES Under Section 3.09 of the City Charter, a transitory ordinance becomes effective 30 days after publication of the second hearing notice. The ordinance must be approved so that the capital projects can be completed on a timely basis and the funds expended. FINANCIAL IMPACT While the total 2025 CIB includes total budgeted expenditures of $32,445,854, the portion of the CIB concerning proposed funding from the Special Revenue fund is $475,000. A transitory ordinance is necessary to finalize the appropriations utilizing special revenue funds pursuant to City Charter. The source of Special Revenue funds is municipal liquor profits. LEGAL CONSIDERATIONS The City Charter requires that a transitory ordinance be used to authorize the expenditure of Special Revenue funds on capital projects. ALTERNATIVE RECOMMENDATION(S) None. ATTACHMENTS 1. Transitory Ordinance for the expenditure from Liquor Contribution Special Revenue Fund Page 274 of 579 TRANSITORY ORDINANCE NO. AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF MONEY FROM THE LIQUOR CONTRIBUTION SPECIAL REVENUE FUND FOR CERTAIN CAPITAL IMPROVEMENTS CITY OF RICHFIELD DOES ORDAIN: Section 1: It is found and determined to be necessary and expedient for the City to expend money from the Liquor Contribution Special Revenue Fund for the making of capital improvements listed in Section 2 hereof, for which the City would be authorized to issue general obligation bonds. Section 2: The capital improvements and amounts of expenditures for such improvements which are authorized to be paid from the Liquor Contribution Special Revenue Fund under Section 7.12, Subdivision 2 of the City Charter, are as follows: Multi-Year Community Center Building Repair 10,000 Multi-Year Ice Arena Repair 15,000 Parks Major Maintenance & Repair 450,000 Total $ 475,000 Section 3: The expenditures authorized herein shall be made pursuant to such contracts as are authorized from time to time by Council action. Passed by the City Council of the City of Richfield this 14th day of October 2025. ______________________Mary B. Supple, Mayor ATTEST: __________________ Michelle Friedrich, City Clerk Page 275 of 579 City Council Meeting 10/14/2025 Agenda Section: Consent Calendar Agenda Item: 7.d. Report Prepared By: Kayla Beckstrom, Senior Office Assistant Department Director: Kristin Asher, Public Works Director Item for Consideration: Consider adoption of a resolution of support designating that the photograph “Winter Interest” by Samantha Chin be used to wrap the Hennepin County utility box located at Penn Avenue & 66th Street. EXECUTIVE SUMMARY • In order to apply for permits to wrap Hennepin County utility boxes in Richfield, a resolution of support from the City Council must be adopted specifying the design to be used and the specific box that the City intends to wrap. • The proposed resolution pertains to the Hennepin County utility box located at the northeast corner of Penn Avenue & 66th Street. • The City intends to apply for a permit to (re)wrap the Hennepin County utility box with the photograph by Samantha Chin titled “Winter Interest". HISTORICAL CONTEXT • The Penn Avenue & 66th Street utility box was originally wrapped in August 2019. • Constant sun exposure and the dark background of the original photo has led to deterioration of the wrap and removal or rewrapping is necessary at this time. RECOMMENDED ACTION Adopt the resolution of support designating that the photograph “Winter Interest” by Samantha Chin be used to wrap the Hennepin County utility box located at Penn Avenue & 66th Street. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Equitable Considerations: The photograph that will be used to wrap the utility box was submitted to the City through the 2023 Richfield Photo Contest, which is free to enter and open to anyone. The Richfield Arts Commission, tasked with selecting art, photographs or designs for utility box wraps as detailed in the Utility Box Wrapping Policy, held discussion and voted to use the above-mentioned photograph for the Penn Avenue & 66th Street utility box. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) Page 276 of 579 • Municipalities must apply for a permit to wrap Hennepin County utility boxes. • As part of the Hennepin County permit requirements, a City adopted utility box wrapping policy is required which was approved by City Council in 2019. • City Council must adopt a resolution supporting the proposed designs and locations prior to permit application. CRITICAL TIMING ISSUES With the adoption of the resolution of support, the Public Works Department will apply for the permits needed through Hennepin County with the intention of rewrapping the utility box this fall. FINANCIAL IMPACT • Funding for the proposed utility box has been included in the Public Works 2025 operating budget. • Quotes were solicited from local vendors specializing in vinyl wrapping. The most competitive quote was provided by Pixelwerx for $1,525.00. LEGAL CONSIDERATIONS None ALTERNATIVE RECOMMENDATION(S) None ATTACHMENTS 1. Utility Box Resolution 2. Penn&66th Photo 3. Utility_Box_Wrapping_Policy Page 277 of 579 RESOLUTION NO. RESOLUTION OF SUPPORT FOR THE PROPOSED DECORATIVE UTILITY BOX WRAP ON HENNEPIN COUNTY UTILITY BOX LOCATED AT PENN AVE/66TH STREET. WHEREAS, the City Council of the City of Richfield recognizes the value provided to the community by public art and beautification projects; and WHEREAS, the City Council has adopted a policy detailing the process for the installation of decorative wraps on City- or Hennepin County-owned utility boxes; and WHEREAS, the City has identified a Hennepin County-owned utility box that it will apply for permits to wrap in 2025; and WHEREAS, the City proposes to wrap the utility box at the Northeast corner of Penn Avenue South (CSAH 32) and 66th Street East (CSAH 53) with the “Winter Interest” photograph by Samantha Chin submitted through the annual Richfield Photo Contest; and WHEREAS, the Richfield Arts Commission, tasked with selecting art, photographs or designs for utility box wraps as detailed in the Utility Box Wrapping Policy, held discussion and voted to use the above-mentioned photograph at the selected location for the proposed utility box wrap. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. The Public Works Director or their designee is authorized to apply for a permit to wrap the Hennepin County-owned utility box at Penn Ave & 66th Street with the “Winter Interest” photograph by Samantha Chin. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October 2025. Mary Supple, Mayor ATTEST: Michelle Friedrich, City Clerk Page 278 of 579 Penn Avenue & 66th Street Utility Box – New Wrap Photo Selected by Richfield Arts Commission: “Winter Interest” by Samantha Chin Proposed Box at Penn Avenue & 66th (Original and 2021 wrap): Page 279 of 579 1 Public Works Department City of Richfield Subject: Utility Box Decorative Wrapping Policy Purpose In recognition of the value provided to the community by public art and beautification projects, the City of Richfield has developed a formal process for initiating the installation of decorative wrapping on City- owned and County-owned utility boxes. Policy Funding Source Funding for the decorative wrapping of utility boxes may come from a variety of sources. Generally, Public Works will know a year or more in advance of the intent to wrap a utility box and will have included the funds in their operating budget for that given year. If available, Public Works staff may also pursue grant opportunities to finance the wrapping of utility boxes if the grant requirements fit within the framework of this policy. Donations or fundraising efforts from local public or private groups are also an acceptable source of funding for a specific utility box wrap. City policy requires the formal acceptance of grant money or donations via a City Council resolution. Therefore, if a grant or donation would require a specific box or a specific piece of artwork, photograph or design be used for the wrapping, it must be approved by the Public Works Director or their designee and the Richfield Arts Commission prior to accepting the award or donation. The cost to wrap a utility box varies depending on size and shape from around $700 for a simple single cabinet to upwards of $1900 for boxes with multiple cabinets and other features, like meters. In all cases, a request for quotes will be sent to local area firms that specialize in vinyl wrapping in an effort to achieve the most competitive price. The Public Works Director or their designee will ultimately have the final discretion in selecting the best vendor for the project. Utility Box Selection Following confirmation of available funding for the decorative wrapping of a utility box, the Public Works Director or their designee will select a utility box as a candidate for the wrap. Utility boxes range in size and shape, in both vertical and horizontal forms, and they also vary in their suitability for a decorative wrap. In selecting a utility box, the Public Works Director or their designee will consider: • Location and site appropriateness; • Traffic volumes & visibility; • Existing condition; • Likelihood of future displacement by a reconstruction project; and • Size, shape and other features. City-owned utility box If the utility box is a City-owned utility box, then Public works staff may go forward with the art, photograph or design selection process as detailed later in this policy. Hennepin County-owned utility box If the utility box is owned by Hennepin County, then a City Council resolution specifically supporting the proposed art, photograph or design and the location of the utility box to be wrapped must be approved Page 280 of 579 2 by City Council before a permit is sought from Hennepin County. Hennepin County maintains the final discretion whether to accept the selected utility box location and proposed art, photograph or design when considering the permit application. Xcel Energy-owned utility box Xcel Energy owns many utility boxes throughout the Twin Cities region and Richfield but Xcel does not allow decorative wrapping of their utility boxes and therefore are not eligible to be selected for wrapping. Art, Photograph & Design Sources Most commonly, designs for utility box wrapping will come from photograph submissions to the annual Richfield Photo Contest held every spring. The contest categories include parks, animals and wildlife, people at play and architecture and design. The annual contest results in a wide variety of photo submissions and a wealth of potential content for a utility box wrap. The Public Works Director or their designee will identify an appropriate theme or style of photograph for the selected utility box and will submit three (3) photographs to the Richfield Arts Commission (RAC) for consideration at their next regularly scheduled meeting. Following discussion and a vote, a photograph or pair of photographs will be selected as the design for the utility box wrap. Less frequently, the RAC will issue a “Call for Artists” proposal for unique and original artwork to be considered for use in the decorative wrapping of a utility box. Following the application deadline for artwork submissions, the RAC will evaluate the submissions based on the detailed criteria laid out in the call for artists and vote on a preferred piece of artwork to be used as a utility box wrap. On a case-by-case basis and as the opportunity arises, the Public Works Director or their designee may consider unsolicited art, photographs or designs from sources including but not limited to community groups, school students or other Richfield stakeholders as candidates for decorative utility box wraps. In these cases, the proposing organization would need to fund the utility box wrap on their own. Once a design is selected and the availability of funding is confirmed, the RAC will ultimately be asked to authorize the utility box wrap. Art Selection The Richfield Arts Commission is ultimately responsible for the selection of the art, photograph or design to be wrapped on a utility box. The RAC’s mission is “…to raise awareness of, promote the value of, advocate for and support the arts in Richfield. The RAC functions in an advisory capacity to the Richfield City Council.” The RAC meets the first Thursday of every month at 7pm, and is made up of seven (7) Richfield adults and two (2) youth members. In their evaluation of proposed utility box designs, the RAC will consider: • Does the wrap stimulate excellence in urban design and public arts: o Is the image engaging and high quality in concept? o Is the image interesting and unique? o Does the image work within or play with the box form itself? • Does the wrap enhance community identity and place: o Is the image meaningful to the city and its residents? • Will the wrap contribute to community vitality: o Does the image draw in the viewer and provoke positive community ideals? o Does the image celebrate the city? • Does the wrap involve a broad range of people/communities: o Will a broad range of people connect with the image? Page 281 of 579 3 Utility Box Wrap Maintenance & Removal Richfield Public Works staff will work to maintain wrapped utility boxes for as long as possible. Graffiti or vandalism will be removed when possible. Damage to the utility box, excessive and repeated graffiti or vandalism, or other issues that make the utility box wrap unsightly or a burden to maintain may warrant the removal of the utility box wrap. In these instances, the Public Works Director or designee will evaluate the situation on a case-by-case basis and may direct staff to remove the decorative utility box wrapping. Hennepin County may also elect to have an authorized utility box wrap removed for the above-mentioned reasons, or for any other reasons. Public Works staff will promptly remove the wraps following such a decision. Policy Review The City will review and update this policy periodically as needed. Questions regarding this policy or concerns related utility box wrapping should be directed to Richfield Public Works at 612-861-9170 or pwoperations@richfieldmn.gov. Page 282 of 579 City Council Meeting 10/14/2025 Agenda Section: Consent Calendar Agenda Item: 7.e. Report Prepared By: John Evans, Analyst Department Director: Kris Weiby, Facilities Manager Item for Consideration: Consider approval of an agreement with John A. Dalsin & Son, Inc, in the amount of $607,984, for the replacement of the roof on rink two of the Richfield Ice Arena. EXECUTIVE SUMMARY The Veterans Park Improvement project, funded by the Local Option Sales Tax general obligation bonds, includes the replacement of the roof of rink two at the Richfield Ice Arena, which is original to the building's 1999 construction and in need of replacement. Bids were solicited for the project and opened on September 30, 2025. Bids were received from four contractors: Schwickert's Tecta America, LLC (lowest bid), John A Dalsin & Son, Inc, Equity Builders, and Commercial Roofing and Sheet Metal. The lowest base bid was submitted by Schwickert's, however, they withdrew their bid on October 6. The next lowest viable bid was from John A Dalsin & Son, which Loeffler Construction, the project management company, recommends for award of contract. The bid from Commercial Roofing only included bids for alternates 3, 4a, and 4b, so their bid was not viable, as a ballasted roof will not be possible with the solar array equipment. HISTORICAL CONTEXT In November 2024, voters approved $9 million in Local Option Sales Tax funding for improvements at Veterans Memorial Park, including the pool and Ice Arena. On May 13, 2025, Council approved an agreement with Loeffler Construction to manage the Veterans Park Project, which includes the replacement of the roof of rink two at the Richfield Ice Arena. Replacement of the 26-year-old roof was identified as part of the Vets Park Project to ensure its viability for decades to come and will prevent any further costs associated with maintaining and repairing the existing, aging roof. RECOMMENDED ACTION By Motion: Approve the agreement between the City of Richfield and John A. Dalsin & Son, Inc, in the amount of $607,984, for the replacement of the roof on rink two of the Richfield Ice Arena and authorize the Mayor and City Manager to finalize and execute the contract. Page 283 of 579 EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Equity: This project improves facilities that are often low or no cost to residents and provide access to an indoor rink in the community. The arena is an important amenity for families of all income levels living in the community. Strategic Plan: This project best aligns with the strategic plan priority of Sustainable Infrastructure addressing all sub-initiatives of asset management, comprehensive funding, and sustainability efforts. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) None CRITICAL TIMING ISSUES In order to keep pace with the numerous sub-projects identified as part of the Veterans Park Project, and to minimize disruption to the Richfield Ice Arena, work must begin in a timely fashion. FINANCIAL IMPACT The roof replacement bids are within the amount anticipated for the job. Bids include all labor and materials. LEGAL CONSIDERATIONS The agreement has been reviewed by legal counsel. ALTERNATIVE RECOMMENDATION(S) None ATTACHMENTS 1. 9-30 Bid Opening - Richfield Ice Arena Reroof Bid Minutes 2. 20251008 Richfield Rink 2 Re-Roof - BP1 & RFQ1 Award Recommendations R1 3. 25122 Richfield Re-Roof - JA Dalsin Page 284 of 579 CITY OF RICHFIELD, MINNESOTA Bid Opening September 30, 2025 3:00 p.m. PROJECT: Richfield Rink 2 Re-Roof Bid No.: Pursuant to requirements of Resolution No. 1015 and the City Code, a meeting of the Administrative Staff was called by City Clerk Friedrich who announced the purpose of the meeting was to receive, open and read aloud bids for the Richfield Ice Arena Re-Roof, as advertised in the official newspaper on September 18, 2025. Present: Mark McKinley, Administrative Assistant Bob Baltgalvis, Recreation Supervisor John Barrick, Loeffler Construction Project Manager Drew Illetschko, Loeffler Construction Project Estimator The following bids were submitted and read aloud: Bidder’s Name Bond Non-Collusion Intent to Comply Responsible Contractor Certificate Total Base Bid John A. Dalsin & Son Provided Provided Provided Provided $607,984 Schwickerts Tecta America Provided Provided Provided Provided $491,000 Equity Builders & Construction Services Provided Provided Provided Provided $810,190 Commercial Roofing and Sheet Metal Provided Provided Provided Provided No bid Administrative Assistant McKinley noted the bids would be tabulated and considered at the October 14, 2025 City Council Meeting. _______________________ Mark McKinley, Administrative Assistant Withdrawal due to incomplete bid Page 285 of 579 Bid Tabulations - Bid Package #1Date: October 2, 2025 Time: 3:00 pm City of Richfield - Rink 2 Re-RoofBid Package #1 - Bid Tabs ALTERNATES ALTERNATES ALTERNATES ALTERNATES ALTERNATES Prime Contractor Sorted by Scope --> Base Bid Amount Scope of Work On Bid Form (Y / N) Bid Bond (Y / N) Addenda Noted (Y / N) Responsible Contractor Form (Y / N) Base Bid Amount Alternate #1 New mechanically fastened polyisocyanurate Alternate #2 90 mil EPDM with 30 year warranty Alternate #3 Parapet blocking removal & replacement Alternate #4A 60 mil EPDM ballasted roofing system Alternate #4B 90 mil EPDM ballasted roofing system Schwickert's Tecta America, LLC 7.7 Y Y Y Y $491,000 $68,000 $100,230 $8,000 ($100,341) ($67,782) John A Dalsin & Son, Inc. 7.7 Y Y Y Y $607,984 $78,071 $82,288 $38,436 ($97,933) ($78,526) Equity Builders & Construction Services Inc. 7.7 Y Y Y Y $810,190 $1 $1 $5,000 $1 $1 Commercial Roofing and Sheet Metal Inc 7.7 Y Y Y Y no bid no bid no bid $10,090 $406,875 $536,850 Page 1 of 3 Page 286 of 579 330 Poplar Street 204 Schuman Dr. NW 8600 West 125th Street 1841 E. 1450 Road Mankato, MN 56001 Stewartville, MN 55976 Savage, MN 55378 Lawrence, KS 66044 507.387.3101 507.281.0611 612.284.4233 913.674.4445 www.schwickerts.com | EEO/AA Employer/Vets/Disability October 6, 2025 Loeffler Construction and Consulting 9202 202nd Street W., Suite #100 Lakeville, MN 55044 Attn: Drew Illetschko Drew – I am following up our telephone conversation on Friday. Per your information and bid results, we were the apparent low bidder of the Richfield Ice Rink #2 project by a substantial amount. When reviewing the project specifications, I did not see any of the common references or documentation related to Prevailing Wage rates. I found out later in our telephone conversation that it is noted on the third page of the actual bid form and provides a link to State of Minnesota Workplace website for appropriate rates. Our bid does not account for using prevailing wage rates. We understand that time is of the essence to meet the schedule before snowfall. We are used to seeing prevailing wage requirements specified in a specification section or the actual wage rate schedule included in the specifications versus a 3rd party link. At this time, we are requesting to withdraw our bid for the project including the bid bond, as we provided a competitive good-faith bid to the City of Richfield for all requested roof systems. Thank you, John Flynn Cell: 507-327-5363 johnflynn@tectaamerica.com Page 287 of 579 Page 288 of 579 Page 289 of 579 Page 290 of 579 Page 291 of 579 Page 292 of 579 Page 293 of 579 Page 294 of 579 Page 295 of 579 Page 296 of 579 Page 297 of 579 Page 298 of 579 Page 299 of 579 Page 300 of 579 Page 301 of 579 Page 302 of 579 Page 303 of 579 Page 304 of 579 Page 305 of 579 Page 306 of 579 Page 307 of 579 Page 308 of 579 Page 309 of 579 Page 310 of 579 Page 311 of 579 Page 312 of 579 Page 313 of 579 Page 314 of 579 Page 315 of 579 Page 316 of 579 Page 317 of 579 Page 318 of 579 Page 319 of 579 Page 320 of 579 Page 321 of 579 Page 322 of 579 Page 323 of 579 Page 324 of 579 Page 325 of 579 Page 326 of 579 Page 327 of 579 Page 328 of 579 Page 329 of 579 Page 330 of 579 Page 331 of 579 Page 332 of 579 Page 333 of 579 Page 334 of 579 Page 335 of 579 Page 336 of 579 9202 202nd St. W., Suite 100, Lakeville, MN 55044 • Phone: 952.955.9119 • Fax: 952.236.9960 • www.loefflerconstruction.com Affirmative Action & Equal Opportunity Employer October 8, 2025 TO: Kris Weiby – Facilities Manager, City of Richfield John Evans – Executive Analyst, City of Richfield CC: Edie Sebesta – Principal, U+B architecture & design, inc. Jon Cramer – President, Loeffler Construction & Consulting John Barrick – Project Manager, Loeffler Construction & Consulting RE: Richfield Rink 2 Re-Roof – Recommendation for Contractor Awards Kris & John: On October 2nd, 2025, Loeffler Construction & Consulting collected responses to Request for Quotes (RFQ) 1 that was issued for the Richfield Rink 2 Re-Roof Project. These quotes were for Temporary Site Fencing, Miscellaneous Metals, and Mechanical – Combined scopes of work. Also in October 2nd, 2025, representatives from Loeffler Construction & Consulting (LCC) and the City of Richfield were also present to hold and witness the public bid opening for Bid Package 1 of the Richfield Rink 2 Re-Roof Project. Bid Package 1 included the Roofing, Flashing & Sheet Metal scope of work. Summary of Request for Quotes 1: In line with public bidding law, scopes of work under $175,000 can be procured with a Request for Quote (RFQ) process. Loeffler distributed the plans and specifications to (17) potential contractors and received responses from (6) contractors. See attached RFQ Bid Tabulation for a list of the contractors that submitted quotes. We have reviewed the quotes and determined that the lowest quote amount is responsive and recommend those firms for award. Summary of Bid Package 1: In addition to running an advertisement for bids in the local newspaper, LCC posted the plans and specifications for the project to the Minnesota Builders Exchange. The sealed bid process for this bid package yielded (4) bids for the Roofing, Flashing & Sheet Metal scope of work. See attached Bid Package 1 Tabulation for a list of the contractors that submitted bids. Following the bid opening, the low-bid roofing contractor, Schwickerts Tecta America, formally withdrew from the project due to not including prevailing wages on the project. Following Schwickerts withdrawal, John A Dalsin & Son is the lowest responsible bidder for the base scope of work and we recommend them for award. Page 1 of 4 Page 337 of 579 Richfield Rink 2 Re-Roof October 8, 2025 Recommendation for Contractor Awards Page 2 of 2 We are not recommending selecting the Alternates for the Ballasted roof. The weight of the existing system vs. the new system has not been determined. Adding additional solar panels to the will increase the load on the structure and further calculations are required. Table of Recommended Awards for Bid Package 1 and RFQ 1: We appreciate the opportunity to work with the City of Richfield and look forward to delivering a successful project. Sincerely, Will Forbord Vice President Attached: Richfield Rink 2 Re-Roof Bid Tab – Bid Package #1 Richfield Rink 2 Re-Roof Bid Tab – RFQ #1 Page 2 of 4 Page 338 of 579 Bid Tabulations - Bid Package #1Date: October 2, 2025 Time: 3:00 pm City of Richfield - Rink 2 Re-RoofBid Package #1 - Bid Tabs ALTERNATES ALTERNATES ALTERNATES ALTERNATES ALTERNATES Prime Contractor Sorted by Scope --> Base Bid Amount Scope of Work On Bid Form (Y / N) Bid Bond (Y / N) Addenda Noted (Y / N) Responsible Contractor Form (Y / N) Base Bid Amount Alternate #1 New mechanically fastened polyisocyanurate Alternate #2 90 mil EPDM with 30 year warranty Alternate #3 Parapet blocking removal & replacement Alternate #4A 60 mil EPDM ballasted roofing system Alternate #4B 90 mil EPDM ballasted roofing system Schwickert's Tecta America, LLC 7.7 Y Y Y Y $491,000 $68,000 $100,230 $8,000 ($100,341) ($67,782) John A Dalsin & Son, Inc. 7.7 Y Y Y Y $607,984 $78,071 $82,288 $38,436 ($97,933) ($78,526) Equity Builders & Construction Services Inc. 7.7 Y Y Y Y $810,190 $1 $1 $5,000 $1 $1 Commercial Roofing and Sheet Metal Inc 7.7 Y Y Y Y no bid no bid no bid $10,090 $406,875 $536,850 Page 1 of 3Page 3 of 4 Page 339 of 579 Bid Tabulations - Request for Quotes #1 Date: October 2, 2025 Time: 2:00 pm City of Richfield - Rink 2 Re-Roof Request for Quotes #1 - Bid Tabs ALTERNATES ALTERNATES ALTERNATES ALTERNATES ALTERNATES Prime Contractor Sorted by Scope --> Base Bid Amount Scope of Work On Bid Form (Y / N) Addenda Noted (Y / N) Responsible Contractor Form (Y / N) Base Bid Amount Alternate #1 New mechanically fastened polyisocyanurate Alternate #2 90 mil EPDM with 30 year warranty Alternate #3 Parapet blocking removal & replacement Alternate #4A 60 mil EPDM ballasted roofing system Alternate #4B 90 mil EPDM ballasted roofing system Action Fence 1.4 Y Y Y $11,232 Keller Fence 1.4 Y Y Y $11,370 High Five Erectors 5.3 Y Y Y $13,875 Red Cedar Steel 5.3 Y Y N $15,000 Schadegg Mechanical 22.0 Y Y N $9,070 Peterson Sheet Metal 22.0 Y Y Y $66,000 Page 1 of 3Page 4 of 4 Page 340 of 579 Document A132® – 2019 Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 1 ADDITIONS AND DELETIONS: The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added information as well as revisions to the standard form text is available from the author and should be reviewed. A vertical line in the left margin of this document indicates where the author has added necessary information and where the author has added to or deleted from the original AIA text. This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. This document is intended to be used in conjunction with AIA Documents A232™–2019, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition; B132™–2019, Standard Form of Agreement Between Owner and Architect, Construction Manager as Adviser Edition; and C132™–2019, Standard Form of Agreement Between Owner and Construction Manager as Adviser. AIA Document A232™–2019 is adopted in this document by reference. Do not use with other general conditions unless this document is modified. AGREEMENT made as of the 15th day of October in the year Two Thousand Twenty-Five (In words, indicate day, month, and year.) BETWEEN the Owner: (Name, legal status, address, and other information) City of Richfield 6700 Portland Ave Richfield, MN 55423 and the Contractor: (Name, legal status, address, and other information) John A Dalsin & Son, Inc. 2830 South 20th Ave Minneapolis, MN 55407 for the following Project: (Name, location, and detailed description) Veterans Park Improvements - Rink 2 Re-Roof 636 East 66th Street, Richfield, MN 55423 This includes re-roofing rink 2, re-roofing the structure between rink 1 and rink 2 and supporting improvements to the arena. The Construction Manager: (Name, legal status, address, and other information) Loeffler Construction Consulting LLC d/b/a Loeffler Construction & Consulting 9202 202nd St. W., Suite 100 Lakeville, MN 55044 Telephone Number: 952.955.9119 The Architect: (Name, legal status, address, and other information) U+B Architecture & Design, Inc. 112 North 1st Street Minneapolis, MN 55401 Phone: (612) 746-4260 The Owner and Contractor agree as follows. Page 341 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 2 TABLE OF ARTICLES 1 THE CONTRACT DOCUMENTS 2 THE WORK OF THIS CONTRACT 3 DATE OF COMMENCEMENT AND DATES OF SUBSTANTIAL COMPLETION 4 CONTRACT SUM 5 PAYMENTS 6 DISPUTE RESOLUTION 7 TERMINATION OR SUSPENSION 8 MISCELLANEOUS PROVISIONS 9 ENUMERATION OF CONTRACT DOCUMENTS EXHIBIT A INSURANCE AND BONDS EXHIBIT B DETERMINATION OF THE COST OF THE WORK ARTICLE 1 THE CONTRACT DOCUMENTS The Contract Documents consist of this Agreement, Conditions of the Contract (General, Supplementary, and other Conditions), Drawings, Specifications, Addenda issued prior to execution of this Agreement, other documents listed in this Agreement, and Modifications issued after execution of this Agreement, all of which form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations, or agreements, either written or oral. An enumeration of the Contract Documents, other than Modifications, appears in Article 9. ARTICLE 2 THE WORK OF THIS CONTRACT The Contractor shall fully execute the Work described in the Contract Documents, except as specifically indicated in the Contract Documents to be the responsibility of others. ARTICLE 3 DATE OF COMMENCEMENT AND DATES OF SUBSTANTIAL COMPLETION § 3.1 The date of commencement of the Work shall be: (Check one of the following boxes.) [ X ]The date of this Agreement. [ ]A date set forth in a notice to proceed issued by the Owner. [ ]Established as follows: (Insert a date or a means to determine the date of commencement of the Work.) If a date of commencement of the Work is not selected, then the date of commencement shall be the date of this Agreement. § 3.2 The Contract Time shall be measured from the date of commencement of the Work. § 3.3 Substantial Completion of the Project or Portions Thereof § 3.3.1 Subject to adjustments of the Contract Time as provided in the Contract Documents, the date of Substantial Completion of the Work of all of the Contractors for the Project will be: Page 342 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 3 (Insert the date of Substantial Completion of the Work of all Contractors for the Project.) Substantial Completion: 12/17/2025 Final Completion: 12/24/2025 § 3.3.2 Subject to adjustments of the Contract Time as provided in the Contract Documents, if portions of the Work of all of the Contractors for the Project are to be completed prior to Substantial Completion of the entire Work of all of the Contractors for the Project, the Contractors shall achieve Substantial Completion of such portions by the following dates: Portion of Work Substantial Completion Date § 3.4 When the Work of this Contract, or any Portion Thereof, is Substantially Complete § 3.4.1 Subject to adjustments of the Contract Time as provided in the Contract Documents, the Contractor shall substantially complete the entire Work of this Contract: (Check one of the following boxes and complete the necessary information.) [ ]Not later than ( ) calendar days from the date of commencement of the Work. [ X ]By the following date: 12/17/2025 § 3.4.2 Subject to adjustments of the Contract Time as provided in the Contract Documents, if portions of the Work of this Contract are to be substantially complete prior to when the entire Work of this Contract shall be substantially complete, the Contractor shall substantially complete such portions by the following dates: Portion of Work Date to be substantially complete Mobilization Rock removal Roofing – main roof Roofing – low roof Coping & Gutters 10/27/25 11/3/25 12/4/25 12/17/25 12/12/25 § 3.4.3 If the Contractor fails to substantially complete the Work of this Contract, or portions thereof, as provided in this Section 3.4, liquidated damages, if any, shall be assessed as set forth in Section 4.5. ARTICLE 4 CONTRACT SUM § 4.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor’s performance of the Contract. The Contract Sum shall be one of the following: (Check the appropriate box.) [ X ]Stipulated Sum, in accordance with Section 4.2 (Paragraphs deleted) below § 4.2 Stipulated Sum § 4.2.1 The Contract Sum shall be Six hundred seven thousand nine hundred eighty four dollars, $607,984.00 ), subject to additions and deductions as provided in the Contract Documents. § 4.2.2 Alternates § 4.2.2.1 Alternates, if any, included in the Contract Sum: Item Price N/A Page 343 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 4 § 4.2.2.2 Subject to the conditions noted below, the following alternates may be accepted by the Owner following execution of this Agreement. Upon acceptance, the Owner shall issue a Modification to this Agreement. (Insert below each alternate and the conditions that must be met for the Owner to accept the alternate.) Item Price Conditions for Acceptance 1 2 3 4A 4B $78,071 $82,288 $38,436 ($97,933) ($78,526) - - Unforeseen item Weather item Weather item § 4.2.3 Allowances, if any, included in the Contract Sum: (Identify each allowance.) Item Price 40 hour snow removal $6,100.00 § 4.2.4 Unit prices, if any: (Identify the item and state the unit price, and quantity limitations, if any, to which the unit price will be applicable.) Item Units and Limitations Price per Unit ($0.00) Snow removal Wet ins. / vapor barrier replace Deck flute insulation replace Roofer Sheet Metal worker Per Hour Per square foot Per square foot Per Hour Per Hour $154.00 $5.60 $3.00 $154.00 $168.00 § 4.3 INTENTIONALLY OMITTED (Paragraph deleted) (Table deleted) (Paragraphs deleted) § 4.4 INTENTIONALLY OMITTED (Paragraphs deleted) (Table deleted) (Paragraphs deleted) (Table deleted) (Paragraphs deleted) (Table deleted) (Paragraphs deleted) (Table deleted) (Paragraphs deleted) § 4.5 Liquidated damages, if any: (Insert terms and conditions for liquidated damages, if any, to be assessed in accordance with Section 3.4.) See Section 8.8.2 § 4.6 Other: (Insert provisions for bonus, cost savings or other incentives, if any, that might result in a change to the Contract Sum.) N/A Page 344 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 5 ARTICLE 5 PAYMENTS § 5.1 Progress Payments § 5.1.1 Based upon Applications for Payment submitted to the Construction Manager by the Contractor, and Certificates for Payment issued by the Construction Manager and Architect, the Owner shall make progress payments on account of the Contract Sum, to the Contractor, as provided below and elsewhere in the Contract Documents. § 5.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows: § 5.1.3 When an Application for Payment is received by the Construction Manager, payment of the amount certified shall be made by the Owner not later than thirty-five ( 35 ) days after the Construction Manager receives and certifies the Application for Payment. Unless expressly otherwise agreed in this Contract, payments and payment disputes shall be governed by the Prompt Payment of Local Government Bills, Minn. Stat. Sec. 471.425 ("Prompt Payment Act"). (Federal, state or local laws may require payment within a certain period of time.) § 5.1.3.1 Prompt Payment to Subcontractors Required by MN Law. The Contractor shall pay each Subcontractor no later than ten days after receipt of payment from the Owner the amount to which the Subcontractor is entitled, reflecting percentages actually retained from payments to the Contractor on account of the Subcontractor’s portion of the Work. Per 471.425 Minnesota Statutes, the prime contractor must pay any subcontractor within ten days of the prime contractor’s receipt of payment from the Public Body/Owner for undisputed services provided by the subcontractor. The prime contractor must pay the subcontractor interest of 1 ½ percent per month on any disputed amounts not paid on time. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the prime contractor shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from a prime contractor must be awarded its costs and disbursements, including attorney’s fees, incurred in bringing the action. The Contractor shall, by appropriate agreement with each Subcontractor, require each Subcontractor to make payments to Sub-subcontractors in a similar manner. § 5.1.4 Progress Payments Where the Contract Sum is Based on a Stipulated Sum § 5.1.4.1 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Contract Sum among the various portions of the Work. The schedule of values shall be prepared in such form, and supported by such data to substantiate its accuracy, as the Construction Manager and Architect may require. This schedule of values shall be used as a basis for reviewing the Contractor’s Applications for Payment. § 5.1.4.2 Applications for Payment shall show the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment. § 5.1.4.3 In accordance with AIA Document A232™–2019, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition, as modified, and subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: § 5.1.4.3.1 The amount of each progress payment shall first include: .1 That portion of the Contract Sum properly allocable to completed Work; .2 That portion of the Contract Sum properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction, or, if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing; and .3 That portion of Construction Change Directives that the Architect determines, in the Architect’s professional judgment, to be reasonably justified. § 5.1.4.3.2 The amount of each progress payment shall then be reduced by: .1 The aggregate of any amounts previously paid by the Owner; Page 345 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 6 .2 The amount, if any, for Work that remains uncorrected and for which the Architect has previously withheld a Certificate for Payment as provided in Article 9 of AIA Document A232–2019; .3 Any amount for which the Contractor does not intend to pay a Subcontractor or material supplier, unless the Work has been performed by others the Contractor intends to pay; .4 For Work performed or defects discovered since the last payment application, any amount for which the Architect may withhold payment, or nullify a Certificate of Payment in whole or in part, as provided in Article 9 of AIA Document A232–2019; and .5 Retainage withheld pursuant to Section 5.1.7. § 5.1.5 INTENTIONALLY OMITTED (Paragraphs deleted) § 5.1.6 INTENTIONALLY OMITTED (Paragraphs deleted) § 5.1.7 Retainage § 5.1.7.1 For each progress payment made prior to when the Work of this Contract is substantially complete, the Owner may withhold the following amount, as retainage, from the payment otherwise due: (Insert a percentage or amount to be withheld as retainage from each Application for Payment. The amount of retainage may be limited by governing law.) Five percent (5%) § 5.1.7.1.1 The following items are not subject to retainage: (Insert any items not subject to the withholding of retainage, such as general conditions, insurance, etc.) § 5.1.7.2 Reduction or limitation of retainage, if any, shall be as follows: (If the retainage established in Section 5.1.7.1 is to be modified prior to when the entire Work of this Contract is substantially complete, including modifications for completion of portions of the Work as provided in Section 3.4.2, insert provisions for such modifications.) No reduction in retainage until substantial completion § 5.1.7.3 Except as set forth in this Section 5.1.7.3, when the Work of this Contract is substantially complete, the Contractor may submit an Application for Payment that includes the retainage withheld from prior Applications for Payment pursuant to this Section 5.1.7. The Application for Payment submitted when the Work of this Contract is substantially complete shall not include retainage as follows: (Insert any other conditions for release of retainage when the Work of this Contract is substantially complete, or upon Substantial Completion of the Work of all Contractors on the Project or portions thereof.) As set forth in A232-2019 General Conditions Section 9.8.6 § 5.2 Final Payment § 5.2.1 Final Payment Where the Contract Sum is Based on a Stipulated Sum § 5.2.1.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when .1 the Contractor has fully performed the Contract except for the Contractor’s responsibility to correct Work as provided in Article 12 of AIA Document A232–2019, and to satisfy other requirements, if any, which extend beyond final payment; and .2 a final Certificate for Payment or Project Certificate for Payment has been issued by the Architect. § 5.2.1.2 The Owner’s final payment to the Contractor shall be made no later than 30 days after the issuance of the final Certificate for Payment or Project Certificate for Payment (Paragraphs deleted) Page 346 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 7 § 5.3 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located. (Insert rate of interest agreed upon, if any.) 4 % per annum ARTICLE 6 DISPUTE RESOLUTION § 6.1 Initial Decision Maker The Architect will serve as Initial Decision Maker pursuant to Article 15 of AIA Document A232–2019, unless the parties appoint below another individual, not a party to this Agreement, to serve as Initial Decision Maker. (If the parties mutually agree, insert the name, address and other contact information of the Initial Decision Maker, if other than the Architect.) § 6.2 Binding Dispute Resolution For any Claim subject to, but not resolved by, mediation pursuant to Article 15 of AIA Document A232–2019, the method of binding dispute resolution shall be as follows: (Check the appropriate box.) (Paragraph deleted) [ X ]Litigation in a court of competent (Paragraphs deleted) jurisdiction, in the county where the project is located. If the Owner and Contractor do not select a method of binding dispute resolution, or do not subsequently agree in writing to a binding dispute resolution method other than litigation, Claims will be resolved by litigation in a court of competent jurisdiction. ARTICLE 7 TERMINATION OR SUSPENSION § 7.1 Where the Contract Sum is a Stipulated Sum § 7.1.1 The Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document A232–2019. § 7.1.1.1 If the Contract is terminated for the Owner’s convenience in accordance with Article 14 of AIA Document A232–2019, then the Owner shall pay the Contractor a termination fee as follows: (Insert the amount of, or method for determining, the fee, if any, payable to the Contractor following a termination for the Owner’s convenience.) N/A. § 7.1.2 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A232–2019. § 7.2 INTENTIONALLY OMITTED (Paragraphs deleted) § 7.3 Suspension The Work may be suspended by the Owner as provided in Article 14 of AIA Document A232–2019; in such case, the Contract Sum and Contract Time shall be increased as provided in Article 14 of AIA Document A232–2019, except that the term "profit" shall be understood to mean the Contractor’s Fee as described in Section 4.3.2 or 4.4.2, as applicable, of this Agreement. Page 347 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 8 ARTICLE 8 MISCELLANEOUS PROVISIONS § 8.1 Where reference is made in this Agreement to a provision of AIA Document A232–2019 or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. § 8.2 The Owner’s representative: (Name, address, email address, and other information) Karl Huemiller Recreation Services Director 7000 Nicollet Ave. Richfield, MN 55423 (P) 612-861-9387 khuemiller@richfieldmn.gov Kris Weiby Facilities Manager 636 E 66th St. Richfield, MN 55423 dweiby@richfield.gov § 8.3 The Contractor’s representative: (Name, address, email address, and other information) Jim Dalsin Sr. PM 2830 South 20th Ave Minneapolis, MN 55407 612-729-9334 jimd@dalsin.com § 8.4 Neither the Owner’s nor the Contractor’s representative shall be changed without ten days’ prior notice to the other party. § 8.5 Insurance and Bonds § 8.5.1 The Owner and the Contractor shall purchase and maintain insurance as set forth in AIA Document A132™–2019, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition, Exhibit A, Insurance and Bonds, and elsewhere in the Contract Documents. § 8.5.2 The Contractor shall provide bonds as set forth in AIA Document A132™–2019, Exhibit A, and elsewhere in the Contract Documents. § 8.6 Notice in electronic format, pursuant to Article 1 of AIA Document A232–2019, may be given in accordance with AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, if completed, or as otherwise set forth below: (If other than in accordance with AIA Document E203–2013, insert requirements for delivering notice in electronic format such as name, title, and email address of the recipient and whether and how the system will be required to generate a read receipt for the transmission.) § 8.7 Relationship of the Parties Where the Contract is based on the Cost of the Work plus the Contractor’s Fee, with or without a Guaranteed Maximum Price, the Contractor accepts the relationship of trust and confidence established by this Agreement and covenants with the Owner to cooperate with the Architect and exercise the Contractor’s skill and judgment in furthering the interests of the Owner; to furnish efficient business administration and supervision; to furnish at all times an adequate supply of workers and materials; and to perform the Work in an expeditious and economical manner Page 348 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 9 consistent with the Owner’s interests. The Owner agrees to furnish and approve, in a timely manner, information required by the Contractor and to make payments to the Contractor in accordance with the requirements of the Contract Documents. § 8.8 Other provisions: § 8.8.1 MN PREVAILING WAGE § 8.8.1.1 Wage Determination This is a prevailing wage project. All contractor and subcontractors shall pay at least the minimum prevailing wage as published by the State of Minnesota and conform to the labor laws of the State of Minnesota and all other laws, ordinances, and legal requirements affecting their work in Minnesota. § 8.8.1.2 Pursuant to Minnesota Statutes 177.43, "No laborer or mechanic employed directly upon the project worksite by the contractor or any subcontractor, agent, or other person doing or contracting to do all or a part of the work on the project, shall be permitted or required to work more hours than the prevailing hours of labor unless such laborer or mechanic is paid for all hours in excess of the prevailing hours at a rate of at least 1-1/2 times his hourly basic rate of pay; nor shall he be paid a lesser rate of wages than the prevailing wage rate in the same or most similar trade or occupation area." Nothing in this contract shall be construed as prohibiting the contractor or subcontractor from paying the negotiated wage rate. § 8.8.1.3 Any project with an estimated total cost of more than $25,000 must comply with Minnesota Statute 177.41-44, which is commonly known as The Little Davis Bacon Act. To facilitate compliance pursuant to the Statute, wage determinations were prepared for different trades for each county from which labor for said project would be secured. It is the stated public policy of M.S. 177.41 as follows: "It is in the public interest that public buildings and other public works be constructed and maintained by the best means and highest quality of labor reasonably available, and that persons working on public works be compensated according to the real value of the services they perform. It is therefore declared to be the public policy of this State that wages of laborers, workmen, and mechanics engaged in State project would be comparable to wages paid for similar work in the community as a whole." Any wage determinations which are found not to be so promulgated do not relieve the contractor from any responsibility for paying the prevailing wage rate of the trade in question. Additional classifications may develop between certification by the Minnesota Department of Labor and Industry. Therefore, no inferences may be drawn from the omission of a classification which has local usage. Further, the Owner will not be liable for increased labor cost, errors in the rates of classifications, or changes to same prior to the awarding of contracts. § 8.8.1.4 Information pertaining to the prevailing wage rates, prevailing hours of labor and hourly basic rates may be obtained from the Minnesota Department of Labor and Industry. Said wage rates must be posted in at least one conspicuous place for the employees working on the project. Failure to do so, by any Contractor, subcontractor, or agent, who, after executing a contract in compliance with this section, pays to any laborer, workman, or mechanic employed directly on the project, a lesser wage for work done on the project than the prevailing wage rate, shall be fined $3700 or imprisoned for not more than 90 days or both. Each day any violation of this section continues shall be a separate offense. Prevailing wage rates for this project are attached at the end of this section. § 8.8.1.5 Specification Section marked "PREVAILING WAGES" contains the Minnesota Department of Labor and Industry prevailing wages for this project. § 8.8.1.6 Any violation of Minnesota Statue 177.42-44 shall be reported to the Minnesota Department of Labor and Industry. § 8.8.1.7 The Contractor shall also furnish with each Application for Payment Certified Payroll Statements, setting forth the wages and benefits paid each employee during the time period covered by the Application for Payment, specifying for each employee: name; identifying number; prevailing wage master job classification; hours worked each day; total hours; rate of pay; gross amount earned; each deduction for taxes; total deductions; net pay for week; dollars contributed per hour for each benefit, including name and address of administrator; benefit account number; and telephone number for health and welfare, vacation or holiday, apprenticeship training, pension, and other benefit programs. § 8.8.2 LIQUIDATED DAMAGES Page 349 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 10 § 8.8.2.1 Contractor acknowledges that delays in completion of the Project beyond substantial completion, subject to adjustments as provided in the Contract Documents (the "Substantial Completion Date") would result in the loss of certain benefits to Owner and its constituents, which would be difficult or impracticable to fix or ascertain under presently known and anticipated facts and circumstances. Accordingly, the parties hereby agree that if Contractor fails to achieve Substantial Completion of the Project by the scheduled Substantial Completion Date, then for delays the Owner shall be entitled to recover from Contractor the following: .1 For each calendar day that Substantial Completion of the Project is delayed beyond the Scheduled Substantial Completion Date: $500.00 per day for contracts valued at or under $500,000.00 or will be $1,000.00 per day for contracts that exceed $500,000.01 in total value. § 8.8.2.2 For purpose of this Section, Substantial Completion shall have occurred when the Architect certifies that the project is Substantially Complete in accordance with the General Conditions of Contract. If all work is not finally completed by TBD, Owner shall be entitled to actual damages for damages occurring after that date, and liquidated damages for damages prior to that date. § 8.8.2.3 Contractor shall pay any liquidated damages to Owner within fifteen (15) days of Owner’s invoice. Owner has the right to submit invoices for liquidated damages on a weekly basis. Payment of liquidated damages shall not relieve the Contractor of its other obligations under the parties’ Agreement. Owner, at its option, may deduct the amounts of any liquidated damages from amounts otherwise due to Contractor. § 8.8.2.4 The parties agree that the amount of liquidated damages fixed in this Section is a reasonable forecast of just compensation for harm to the Owner resulting from the Contractor’s failure to meet the Project schedule, and is not a penalty. The parties further agree that in the event the amount of liquidated damages set forth in this Section is held to be unenforceable or challenged by the Contractor as unenforceable for any reason, the Owner shall be entitled to recover its actual, direct, and consequential damages, if any, resulting from Contractor’s delay in achieving Substantial Completion of the Work by the scheduled Substantial Completion Date. § 8.8.3 Certificate of Substantial Completion When the Work or designated portion thereof is substantially complete, the Architect will prepare a Certificate of Substantial Completion that shall establish the date of Substantial Completion, shall establish responsibilities of the Owner and Contractor for security, maintenance, heat, utilities, damage to the Work and insurance, and shall fix the time which the Contractor shall complete all items on the list accompanying the Certificate to sixty (60) calendar days. The Contractor will submit a punch list completion schedule within ten (10) days of receipt of Certificate of Substantial Completion. Any cost incurred by the Architect or Architect’s consultants (after 60 calendar days of substantial completion) to close out the project will be deducted from the Contractor’s contract by change order. Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Work or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion. Warranties on punch list items will commence on the date of final payment. § 8.8.4 The Contractor, prior to contract award, shall submit electronically to the architect a notarized copy of MN Responsible Contractor Compliance Affidavit from each subcontractor. If a subcontractor is substituted during the project, a new MN Responsible Contractor Compliance Affidavit will be required. § 8.8.5 INTENTIONALLY OMITTED § 8.8.6 INTENTIONALLY OMITTED § 8.8.7 NON-MINNESOTA CONTRACTOR. Non-Minnesota Contractors for contracts that exceed or can reasonably be expected to exceed $100,000 shall comply with the following Minnesota Department of Revenue Requirements (MN Law, MS 290.9705): § 8.8.7.1 File form SDE (Exemption from Surety Deposits for Non-Minnesota Contractors) with the Minnesota Revenue, Mail Station 6501, St. Paul, Minnesota 55146-6501. An exemption will be granted if: .1 The Contractor provides a cash surety or bond (8% of total contract), secured by an Insurance Company licensed in Minnesota, which guarantees compliance with all provisions of Minnesota withholding, sales and corporate income tax laws, or: Page 350 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 11 .2 The Contractor provides evidence of full compliance with such laws on previous construction work in Minnesota during the last three years. § 8.8.7.2 Submit a copy of form SDE, certified by the Department of Revenue, with the Contractor’s initial Application for Payment. § 8.8.7.3 If an exemption is not granted, 8 percent of each Application for Payment will be withheld as surety and deposited with the Department of Revenue, to be refunded with interest after the Contractor’s State tax obligations are fulfilled. § 8.8.8 FIREARMS PROHIBITED § 8.8.8.1 No provider of services pursuant to this contract, including but not limited to employees, agents, suppliers or subcontractor’s of the Contractor shall carry or possess a firearm on the Owner’s premises or while acting on behalf of the Owner pursuant to the terms of this agreement. Violation of this provision shall be considered a substantial breach of the Agreement; and, in addition to any other remedy available to the Owner under law or equity. Violation of this provision is grounds for immediate suspension or termination of this contract. ARTICLE 9 ENUMERATION OF CONTRACT DOCUMENTS § 9.1 This Agreement is comprised of the following documents: .1 AIA Document A132™–2019, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition, as modified .2 AIA Document A132™–2019, Exhibit A, Insurance and Bonds Exhibit .3 AIA Document A232™–2019, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition .4 AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, dated as indicated below: (Insert the date of the E203-2013 incorporated into this Agreement.) N/A .5 Drawings Number Title Date See Exhibit B Drawing Log 9/29/2025 .6 Specifications Section Title Date Pages See Exhibit C Specifications Log 9/29/2025 2 .7 Addenda, if any: Number Date Pages 1 2 9/26/2025 9/29/2025 3 109 Portions of Addenda relating to bidding or proposal requirements are not part of the Contract Documents unless the bidding or proposal requirements are also enumerated in this Article 9. .8 Other Exhibits: (Check all boxes that apply and include appropriate information identifying the exhibit where required.) [ ]AIA Document A132™–2019, Exhibit B, Determination of the Cost of the Work [ ]AIA Document E235™–2019, Sustainable Projects Exhibit, Construction Manager as Page 351 of 579 Init. / AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 12 Adviser Edition, dated as indicated below: (Insert the date of the E235-2019 incorporated into this Agreement.) [ ]The Sustainability Plan: Title Date Pages [ X ]Supplementary and other Conditions of the Contract: Document Title Date Pages Exhibit D Exhibit E Exhibit F Bid Scope Schedule Logistics 9/29/2025 9/29/2025 9/29/2025 4 1 1 .9 Other documents, if any, listed below: (List here any additional documents that are intended to form part of the Contract Documents. AIA Document A232–2019 provides that the advertisement or invitation to bid, Instructions to Bidders, sample forms, the Contractor’s bid or proposal, portions of Addenda relating to bidding or proposal requirements, and other information furnished by the Owner in anticipation of receiving bids or proposals, are not part of the Contract Documents unless enumerated in this Agreement. Any such documents should be listed here only if intended to be part of the Contract Documents.) This Agreement is entered into as of the day and year first written above. OWNER (Signature)CONTRACTOR (Signature) Karl Huemiller, Recreation Services Director Jim Dalsin, Sr. PM (Printed name and title)(Printed name and title) OWNER (Signature) Kris Weiby, Facilities Manager (Printed name and title) BY: Mary B. Supple, Mayor BY: Katie Rodriquez, City Manager Page 352 of 579 Additions and Deletions Report for AIA® Document A132® – 2019 This Additions and Deletions Report, as defined on page 1 of the associated document, reproduces below all text the author has added to the standard form AIA document in order to complete it, as well as any text the author may have added to or deleted from the original AIA text. Added text is shown underlined. Deleted text is indicated with a horizontal line through the original AIA text. Note: This Additions and Deletions Report is provided for information purposes only and is not incorporated into or constitute any part of the associated AIA document. This Additions and Deletions Report and its associated document were generated simultaneously by AIA software at 11:43:48 on 10/10/2025. Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 1 PAGE 1 AGREEMENT made as of the 15th day of October in the year Two Thousand Twenty-Five … City of Richfield 6700 Portland Ave Richfield, MN 55423 … John A Dalsin & Son, Inc. 2830 South 20th Ave Minneapolis, MN 55407 … Veterans Park Improvements - Rink 2 Re-Roof 636 East 66th Street, Richfield, MN 55423 This includes re-roofing rink 2, re-roofing the structure between rink 1 and rink 2 and supporting improvements to the arena. … Loeffler Construction Consulting LLC d/b/a Loeffler Construction & Consulting 9202 202nd St. W., Suite 100 Lakeville, MN 55044 Telephone Number: 952.955.9119 … U+B Architecture & Design, Inc. 112 North 1st Street Minneapolis, MN 55401 Phone: (612) 746-4260 PAGE 2 [ X ]The date of this Agreement. PAGE 3 Substantial Completion: 12/17/2025 Final Completion: 12/24/2025 Page 353 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 2 … [ X ]By the following date: 12/17/2025 … Mobilization Rock removal Roofing – main roof Roofing – low roof Coping & Gutters 10/27/25 11/3/25 12/4/25 12/17/25 12/12/25 … [ X ]Stipulated Sum, in accordance with Section 4.2 below [ ]Cost of the Work plus the Contractor’s Fee, in accordance with Section 4.3 below [ ]Cost of the Work plus the Contractor’s Fee with a Guaranteed Maximum Price, in accordance with Section 4.4 below (Based on the selection above, complete Section 4.2, 4.3 or 4.4 below.) … § 4.2.1 The Contract Sum shall be ($ Six hundred seven thousand nine hundred eighty four dollars, $607,984.00 ), subject to additions and deductions as provided in the Contract Documents. … N/A PAGE 4 1 2 3 4A 4B $78,071 $82,288 $38,436 ($97,933) ($78,526) - - Unforeseen item Weather item Weather item … 40 hour snow removal $6,100.00 … Snow removal Wet ins. / vapor barrier replace Deck flute insulation replace Roofer Sheet Metal worker Per Hour Per square foot Per square foot Per Hour Per Hour $154.00 $5.60 $3.00 $154.00 $168.00 § 4.3 Cost of the Work Plus Contractor’s Fee without a Guaranteed Maximum PriceINTENTIONALLY OMITTED § 4.3.1 The Cost of the Work is as defined in Exhibit B, Determination of the Cost of the Work. § 4.3.2 The Contractor’s Fee: (State a lump sum, percentage of Cost of the Work or other provision for determining the Contractor’s Fee.) Page 354 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 3 § 4.3.3 The method of adjustment of the Contractor’s Fee for changes in the Work: § 4.3.4 Limitations, if any, on a Subcontractor’s overhead and profit for increases in the cost of its portion of the Work: § 4.3.5 Rental rates for Contractor-owned equipment shall not exceed percent ( %) of the standard rental rate paid at the place of the Project. § 4.3.6 Unit prices, if any: (Identify the item and state the unit price and quantity limitations, if any, to which the unit price will be applicable.) Item Units and Limitations Price per Unit ($0.00) § 4.3.7 The Contractor shall prepare and submit to the Construction Manager, within 14 days of executing this Agreement, a written Control Estimate for the Owner’s review and approval. The Control Estimate shall include the items in Section B.1 of Exhibit B, Determination of the Cost of the Work. § 4.4 Cost of the Work Plus Contractor’s Fee with a Guaranteed Maximum PriceINTENTIONALLY OMITTED § 4.4.1 The Cost of the Work is as defined in Exhibit B, Determination of the Cost of the Work. § 4.4.2 The Contractor’s Fee: (State a lump sum, percentage of Cost of the Work or other provision for determining the Contractor’s Fee.) § 4.4.3 The method of adjustment of the Contractor’s Fee for changes in the Work: § 4.4.4 Limitations, if any, on a Subcontractor’s overhead and profit for increases in the cost of its portion of the Work: § 4.4.5 Rental rates for Contractor-owned equipment shall not exceed percent ( %) of the standard rental rate paid at the place of the Project. § 4.4.6 Unit Prices, if any: (Identify the item and state the unit price and quantity limitations, if any, to which the unit price will be applicable.) Item Units and Limitations Price per Unit ($0.00) § 4.4.7 Guaranteed Maximum Price § 4.4.7.1 The Contract Sum is guaranteed by the Contractor not to exceed ($ ), subject to additions and deductions by Change Order as provided in the Contract Documents. This maximum sum is referred to in the Contract Documents as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to be exceeded shall be paid by the Contractor without reimbursement by the Owner. § 4.4.7.2 Alternates § 4.4.7.2.1 Alternates, if any, included in the Guaranteed Maximum Price: Item Price Page 355 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 4 § 4.4.7.2.2 Subject to the conditions noted below, the following alternates may be accepted by the Owner following execution of this Agreement. Upon acceptance, the Owner shall issue a Modification to this Agreement. (Insert below each alternate and the conditions that must be met for the Owner to accept the alternate.) Item Price Conditions for Acceptance § 4.4.7.3 Allowances, if any, included in the Guaranteed Maximum Price: (Identify each allowance.) Item Price § 4.4.7.4 Assumptions, if any, upon which the Guaranteed Maximum Price is based: (Identify each assumption.) § 4.4.8 To the extent that the Contract Documents are anticipated to require further development, the Guaranteed Maximum Price includes the costs attributable to such further development consistent with the Contract Documents and reasonably inferable therefrom. Such further development does not include changes in scope, systems, kinds and quality of materials, finishes, or equipment, all of which, if required, shall be incorporated by Change Order. § 4.4.9 The Owner shall authorize preparation of revisions to the Contract Documents that incorporate the agreed-upon assumptions contained in Section 4.4.7.4. The Owner shall promptly furnish such revised Contract Documents to the Contractor. The Contractor shall notify the Owner and Architect of any inconsistencies between the agreed-upon assumptions contained in Section 4.4.7.4 and the revised Contract Documents. … See Section 8.8.2 … N/A PAGE 5 § 5.1.3 Provided that When an Application for Payment is received by the Construction Manager not later than the day of a month, the Owner shall make payment of the amount certified to the Contractor not later than the day of the month. If an Application for Payment is received by the Construction Manager after the application date fixed above, payment of the amount certified Manager, payment of the amount certified shall be made by the Owner not later than thirty-five ( 35 ) days after the Construction Manager receives and certifies the Application for Payment. Unless expressly otherwise agreed in this Contract, payments and payment disputes shall be governed by the Prompt Payment of Local Government Bills, Minn. Stat. Sec. 471.425 ("Prompt Payment Act"). (Federal, state or local laws may require payment within a certain period of time.) § 5.1.3.1 Prompt Payment to Subcontractors Required by MN Law. The Contractor shall pay each Subcontractor no later than ten days after receipt of payment from the Owner the amount to which the Subcontractor is entitled, reflecting percentages actually retained from payments to the Contractor on account of the Subcontractor’s portion of the Work. Per 471.425 Minnesota Statutes, the prime contractor must pay any subcontractor within ten days of the prime contractor’s receipt of payment from the Public Body/Owner for undisputed services provided by the subcontractor. The prime contractor must pay the subcontractor interest of 1 ½ percent per month on any disputed amounts not paid on time. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. For an unpaid balance of less than $100, the prime contractor shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from a prime contractor must be awarded its costs and disbursements, including attorney’s fees, incurred in bringing the action. The Contractor Page 356 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 5 shall, by appropriate agreement with each Subcontractor, require each Subcontractor to make payments to Sub-subcontractors in a similar manner. … § 5.1.4.3 In accordance with AIA Document A232™–2019, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition, as modified, and subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: PAGE 6 § 5.1.5 Progress Payments Where the Contract Sum is Based on the Cost of the Work without a Guaranteed Maximum PriceINTENTIONALLY OMITTED § 5.1.5.1 With each Application for Payment, the Contractor shall submit the cost control information required in Exhibit B, Determination of the Cost of the Work, along with payrolls, petty cash accounts, receipted invoices, or invoices with check vouchers attached, and any other evidence required by the Owner, Construction Manager or Architect to demonstrate that payments already made by the Contractor on account of the Cost of the Work equal or exceed progress payments already received by the Contractor, plus payrolls for the period covered by the present Application for Payment, less that portion of the payments attributable to the Contractor’s Fee. § 5.1.5.2 Applications for Payment shall show the Cost of the Work actually incurred by the Contractor through the end of the period covered by the Application for Payment and for which the Contractor has made or intends to make actual payment prior to the next Application for Payment. § 5.1.5.3 In accordance with AIA Document A232-2019 and subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: § 5.1.5.3.1 The amount of each progress payment shall first include: .1 The Cost of the Work as described in Exhibit B, Determination of the Cost of the Work; .2 That portion of Construction Change Directives that the Architect determines, in the Architect’s professional judgment, to be reasonably justified; and .3 The Contractor’s Fee computed upon the Cost of the Work described in the preceding Section 5.1.5.3.1.1 at the rate stated in Section 4.3.2; or if the Contractor’s Fee is stated as a fixed sum in Section 4.3.2 an amount which bears the same ratio to that fixed-sum Fee as the Cost of the Work included in Section 5.1.5.3.1.1 bears to a reasonable estimate of the probable Cost of the Work upon its completion. § 5.1.5.3.2 The amount of each progress payment shall then be reduced by: .1 The aggregate of any amounts previously paid by the Owner; .2 The amount, if any, for Work that remains uncorrected and for which the Architect has previously withheld a Certificate for Payment as provided in Article 9 of AIA Document A232–2019; .3 Any amount for which the Contractor does not intend to pay a Subcontractor or material supplier, unless the Work has been performed by others the Contractor intends to pay; .4 For Work performed or defects discovered since the last payment application, any amount for which the Architect may withhold payment, or nullify a Certificate of Payment in whole or in part, as provided in Article 9 of AIA Document A232–2019; .5 The shortfall, if any, indicated by the Contractor in the documentation required by Section 5.1.5.1 to substantiate prior Applications for Payment, or resulting from errors subsequently discovered by the Owner’s auditors in such documentation; and .6 Retainage withheld pursuant to Section 5.1.7. § 5.1.5.4 The Owner, Construction Manager and Contractor shall agree upon a mutually acceptable procedure for review and approval of payments to Subcontractors and the percentage of retainage held on Subcontracts, and the Contractor shall execute subcontracts in accordance with those agreements. § 5.1.5.5 In taking action on the Contractor’s Applications for Payment, the Construction Manager and Architect shall be entitled to rely on the accuracy and completeness of the information furnished by the Contractor, and such action shall not be deemed to be a representation that (1) the Construction Manager and Architect have made a detailed Page 357 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 6 examination, audit or arithmetic verification of the documentation submitted in accordance with Article 5 or other supporting data; (2) that the Construction Manager and Architect have made exhaustive or continuous on-site inspections; or (3) that the Construction Manager and Architect have made examinations to ascertain how or for what purposes the Contractor has used amounts previously paid on account of the Contract. Such examinations, audits and verifications, if required by the Owner, will be performed by the Owner’s auditors acting in the sole interest of the Owner. § 5.1.5.6 Except with the Owner’s prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site. § 5.1.5.7 If final completion of the Work is materially delayed through no fault of the Contractor, then the Owner shall pay the Contractor any additional amounts in accordance with Article 9 of AIA Document A232-2019. § 5.1.6 Progress Payments Where the Contract Sum is Based on the Cost of the Work with a Guaranteed Maximum PriceINTENTIONALLY OMITTED § 5.1.6.1 With each Application for Payment, the Contractor shall submit payrolls, petty cash accounts, receipted invoices or invoices with check vouchers attached, and any other evidence required by the Owner, Construction Manager or Architect to demonstrate that payments already made by the Contractor on account of the Cost of the Work equal or exceed progress payments already received by the Contractor plus payrolls for the period covered by the present Application for Payment, less that portion of the progress payments attributable to the Contractor’s Fee. § 5.1.6.2 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Guaranteed Maximum Price among: (1) the various portions of the Work; (2) any contingency for costs that are included in the Guaranteed Maximum Price but not otherwise allocated to another line item or included in a Change Order; and (3) the Contractor’s Fee. § 5.1.6.2.1 The schedule of values shall be prepared in such form, and supported by such data to substantiate its accuracy, as the Construction Manager and Architect may require. This schedule of values shall be used as a basis for reviewing the Contractor’s Applications for Payment. § 5.1.6.2.2 The allocation of the Guaranteed Maximum Price under this Section 5.1.6.2 shall not constitute a separate guaranteed maximum price for the Cost of the Work of each individual line item in the schedule of values. § 5.1.6.2.3 When the Contractor allocates costs from a contingency to another line item in the schedule of values, the Contractor shall submit supporting documentation to the Architect and Construction Manager. § 5.1.6.3 Applications for Payment shall show the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment. The percentage of completion shall be the lesser of (1) the percentage of that portion of the Work which has actually been completed; or (2) the percentage obtained by dividing (a) the expense that has actually been incurred by the Contractor on account of that portion of the Work and for which the Contractor has made payment or intends to make payment prior to the next Application for Payment by (b) the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. § 5.1.6.4 In accordance with AIA Document A232-2019, and subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: § 5.1.6.4.1 The amount of each progress payment shall first include: .1 That portion of the Guaranteed Maximum Price properly allocable to completed Work as determined by multiplying the percentage of completion of each portion of the Work by the share of the Guaranteed Maximum Price allocated to that portion of the Work in the most recent schedule of values; .2 That portion of the Guaranteed Maximum Price properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction or, if approved in writing in advance by the Owner, suitably stored off the site at a location agreed upon in writing; .3 That portion of Construction Change Directives that the Architect determines, in the Architect’s professional judgment, to be reasonably justified; and Page 358 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 7 .4 The Contractor’s Fee, computed upon the Cost of the Work described in the preceding Sections 5.1.6.4.1.1 and 5.1.6.4.1.2 at the rate stated in Section 4.4.2 or, if the Contractor’s Fee is stated as a fixed sum in that Section, an amount that bears the same ratio to that fixed-sum fee as the Cost of the Work included in Sections 5.1.6.4.1.1 and 5.1.6.4.1.2 bears to a reasonable estimate of the probable Cost of the Work upon its completion. § 5.1.6.4.2 The amount of each progress payment shall then be reduced by: .1 The aggregate of any amounts previously paid by the Owner; .2 The amount, if any, for Work that remains uncorrected and for which the Architect has previously withheld a Certificate for Payment as provided in Article 9 of AIA Document A232–2019; .3 Any amount for which the Contractor does not intend to pay a Subcontractor or material supplier, unless the Work has been performed by others the Contractor intends to pay; .4 For Work performed or defects discovered since the last payment application, any amount for which the Architect may withhold payment, or nullify a Certificate of Payment in whole or in part, as provided in Article 9 of AIA Document A232–2019; .5 The shortfall, if any, indicated by the Contractor in the documentation required by Section 5.1.6.1 to substantiate prior Applications for Payment, or resulting from errors subsequently discovered by the Owner’s auditors in such documentation; and .6 Retainage withheld pursuant to Section 5.1.7. § 5.1.6.5 The Owner and the Contractor shall agree upon a mutually acceptable procedure for review and approval of payments to Subcontractors and the percentage of retainage held on Subcontracts, and the Contractor shall execute subcontracts in accordance with those agreements. § 5.1.6.6 In taking action on the Contractor’s Applications for Payment, the Construction Manager and Architect shall be entitled to rely on the accuracy and completeness of the information furnished by the Contractor and such action shall not be deemed to be a representation that (1) the Construction Manager or Architect have made a detailed examination, audit, or arithmetic verification of the documentation submitted in accordance with Section 5.1.6.1 or other supporting data; (2) that the Construction Manager or Architect have made exhaustive or continuous on-site inspections; or (3) that the Construction Manager or Architect have made examinations to ascertain how or for what purposes the Contractor has used amounts previously paid on account of the Contract. Such examinations, audits, and verifications, if required by the Owner, will be performed by the Owner’s auditors acting in the sole interest of the Owner. § 5.1.6.7 Except with the Owner’s prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site. § 5.1.6.8 If final completion of the Work is materially delayed through no fault of the Contractor, then the Owner shall pay the Contractor any additional amounts in accordance with Article 9 of AIA Document A232-2019. … Five percent (5%) … No reduction in retainage until substantial completion … As set forth in A232-2019 General Conditions Section 9.8.6 … Page 359 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 8 § 5.2.1.2 The Owner’s final payment to the Contractor shall be made no later than 30 days after the issuance of the final Certificate for Payment or Project Certificate for Payment, or as follows: Payment § 5.2.2 Final Payment Where the Contract Sum is Based on the Cost of the Work with or without a Guaranteed Maximum Price § 5.2.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when .1 the Contractor has fully performed the Contract except for the Contractor’s responsibility to correct Work as provided in Article 12 of AIA Document A232–2019, and to satisfy other requirements, if any, which extend beyond final payment; .2 the Contractor has submitted a final accounting for the Cost of the Work, pursuant to Exhibit B, Determination of the Cost of the Work and a final Application for Payment; and .3 a final Certificate for Payment or Project Certificate for Payment has been issued by the Architect in accordance with Exhibit B, Determination of the Cost of the Work. § 5.2.2.2 The Owner’s final payment to the Contractor shall be made no later than 30 days after the issuance of the final Certificate for Payment or Project Certificate for Payment, or as follows: PAGE 7 4 % per annum … [ ]Arbitration pursuant to Article 15 of AIA Document A232–2019. [ X ]Litigation in a court of competent jurisdiction. [ ]Other: (Specify) jurisdiction, in the county where the project is located. … N/A. … § 7.2 Where the Contract Sum is Based on the Cost of the Work with or without a Guaranteed Maximum PriceINTENTION ALLY OMITTED § 7.2.1 Termination § 7.2.1.1 The Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document A232–2019. § 7.2.1.2 Termination by the Owner for Cause § 7.2.1.2.1 If the Owner terminates the Contract for cause as provided in Article 14 of AIA Document A232–2019, the Owner shall then only pay the Contractor an amount as follows: .1 Take the Cost of the Work incurred by the Contractor to the date of termination; .2 Add the Contractor’s Fee, computed upon the Cost of the Work to the date of termination at the rate stated in Section 4.3.2 or 4.4.2, as applicable, or, if the Contractor’s Fee is stated as a fixed sum in that Page 360 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 9 Section, an amount that bears the same ratio to that fixed-sum Fee as the Cost of the Work at the time of termination bears to a reasonable estimate of the probable Cost of the Work upon its completion; .3 Subtract the aggregate of previous payments made by the Owner; and .4 Subtract the costs and damages incurred, or to be incurred, by the Owner under Article 14 of AIA Document A232–2019. § 7.2.1.2.2 When the Contract Sum is based on the Cost of the Work with a Guaranteed Maximum Price, if the Owner terminates the Contract for cause as provided in Article 14 of AIA Document A232-2019, the amount, if any, to be paid to the Contractor under Article 14 of AIA Document A232-2019 shall not cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed the amount calculated in Section 7.2.1.2.1. § 7.2.1.2.3 The Owner shall also pay the Contractor fair compensation, either by purchase or rental at the election of the Owner, for any equipment owned by the Contractor that the Owner elects to retain and that is not otherwise included in the Cost of the Work under Section 7.2.1.2.1.1. To the extent that the Owner elects to take legal assignment of subcontracts and purchase orders (including rental agreements), the Contractor shall, as a condition of receiving the payments referred to in this Article 7, execute and deliver all such papers and take all such steps, including the legal assignment of such subcontracts and other contractual rights of the Contractor, as the Owner may require for the purpose of fully vesting in the Owner the rights and benefits of the Contractor under such subcontracts or purchase orders. All Subcontracts, purchase orders and rental agreements entered into by the Contractor will contain provisions allowing for assignment to the Owner as described above. § 7.2.1.3 Termination by the Owner for Convenience If the Owner terminates the Contract for convenience in accordance with Article 14 of AIA Document A232–2019, then the Owner shall pay the Contractor a termination fee as follows: (Insert the amount of or method for determining the fee, if any, payable to the Contractor following a termination for the Owner’s convenience.) PAGE 8 Karl Huemiller Recreation Services Director 7000 Nicollet Ave. Richfield, MN 55423 (P) 612-861-9387 … Kris Weiby Facilities Manager 636 E 66th St. Richfield, MN 55423 dweiby@richfield.gov … Jim Dalsin Sr. PM 2830 South 20th Ave Minneapolis, MN 55407 612-729-9334 jimd@dalsin.com … Page 361 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 10 § 8.6 Notice in electronic format, pursuant to Article 1 of AIA Document A232–2019, may be given in accordance with a building information modeling exhibit, AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, if completed, or as otherwise set forth below: (If other than in accordance with a building information modeling exhibit, AIA Document E203–2013, insert requirements for delivering notice in electronic format such as name, title, and email address of the recipient and whether and how the system will be required to generate a read receipt for the transmission.) PAGE 9 § 8.8.1 MN PREVAILING WAGE § 8.8.1.1 Wage Determination This is a prevailing wage project. All contractor and subcontractors shall pay at least the minimum prevailing wage as published by the State of Minnesota and conform to the labor laws of the State of Minnesota and all other laws, ordinances, and legal requirements affecting their work in Minnesota. § 8.8.1.2 Pursuant to Minnesota Statutes 177.43, "No laborer or mechanic employed directly upon the project worksite by the contractor or any subcontractor, agent, or other person doing or contracting to do all or a part of the work on the project, shall be permitted or required to work more hours than the prevailing hours of labor unless such laborer or mechanic is paid for all hours in excess of the prevailing hours at a rate of at least 1-1/2 times his hourly basic rate of pay; nor shall he be paid a lesser rate of wages than the prevailing wage rate in the same or most similar trade or occupation area." Nothing in this contract shall be construed as prohibiting the contractor or subcontractor from paying the negotiated wage rate. § 8.8.1.3 Any project with an estimated total cost of more than $25,000 must comply with Minnesota Statute 177.41-44, which is commonly known as The Little Davis Bacon Act. To facilitate compliance pursuant to the Statute, wage determinations were prepared for different trades for each county from which labor for said project would be secured. It is the stated public policy of M.S. 177.41 as follows: "It is in the public interest that public buildings and other public works be constructed and maintained by the best means and highest quality of labor reasonably available, and that persons working on public works be compensated according to the real value of the services they perform. It is therefore declared to be the public policy of this State that wages of laborers, workmen, and mechanics engaged in State project would be comparable to wages paid for similar work in the community as a whole." Any wage determinations which are found not to be so promulgated do not relieve the contractor from any responsibility for paying the prevailing wage rate of the trade in question. Additional classifications may develop between certification by the Minnesota Department of Labor and Industry. Therefore, no inferences may be drawn from the omission of a classification which has local usage. Further, the Owner will not be liable for increased labor cost, errors in the rates of classifications, or changes to same prior to the awarding of contracts. § 8.8.1.4 Information pertaining to the prevailing wage rates, prevailing hours of labor and hourly basic rates may be obtained from the Minnesota Department of Labor and Industry. Said wage rates must be posted in at least one conspicuous place for the employees working on the project. Failure to do so, by any Contractor, subcontractor, or agent, who, after executing a contract in compliance with this section, pays to any laborer, workman, or mechanic employed directly on the project, a lesser wage for work done on the project than the prevailing wage rate, shall be fined $3700 or imprisoned for not more than 90 days or both. Each day any violation of this section continues shall be a separate offense. Prevailing wage rates for this project are attached at the end of this section. § 8.8.1.5 Specification Section marked "PREVAILING WAGES" contains the Minnesota Department of Labor and Industry prevailing wages for this project. § 8.8.1.6 Any violation of Minnesota Statue 177.42-44 shall be reported to the Minnesota Department of Labor and Industry. § 8.8.1.7 The Contractor shall also furnish with each Application for Payment Certified Payroll Statements, setting forth the wages and benefits paid each employee during the time period covered by the Application for Payment, specifying for each employee: name; identifying number; prevailing wage master job classification; hours worked each day; total hours; rate of pay; gross amount earned; each deduction for taxes; total deductions; net pay for week; dollars contributed per hour for each benefit, including name and address of administrator; benefit account number; and telephone number for health and welfare, vacation or holiday, apprenticeship training, pension, and other benefit programs. Page 362 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 11 § 8.8.2 LIQUIDATED DAMAGES § 8.8.2.1 Contractor acknowledges that delays in completion of the Project beyond substantial completion, subject to adjustments as provided in the Contract Documents (the "Substantial Completion Date") would result in the loss of certain benefits to Owner and its constituents, which would be difficult or impracticable to fix or ascertain under presently known and anticipated facts and circumstances. Accordingly, the parties hereby agree that if Contractor fails to achieve Substantial Completion of the Project by the scheduled Substantial Completion Date, then for delays the Owner shall be entitled to recover from Contractor the following: .1 For each calendar day that Substantial Completion of the Project is delayed beyond the Scheduled Substantial Completion Date: $500.00 per day for contracts valued at or under $500,000.00 or will be $1,000.00 per day for contracts that exceed $500,000.01 in total value. § 8.8.2.2 For purpose of this Section, Substantial Completion shall have occurred when the Architect certifies that the project is Substantially Complete in accordance with the General Conditions of Contract. If all work is not finally completed by TBD, Owner shall be entitled to actual damages for damages occurring after that date, and liquidated damages for damages prior to that date. § 8.8.2.3 Contractor shall pay any liquidated damages to Owner within fifteen (15) days of Owner’s invoice. Owner has the right to submit invoices for liquidated damages on a weekly basis. Payment of liquidated damages shall not relieve the Contractor of its other obligations under the parties’ Agreement. Owner, at its option, may deduct the amounts of any liquidated damages from amounts otherwise due to Contractor. § 8.8.2.4 The parties agree that the amount of liquidated damages fixed in this Section is a reasonable forecast of just compensation for harm to the Owner resulting from the Contractor’s failure to meet the Project schedule, and is not a penalty. The parties further agree that in the event the amount of liquidated damages set forth in this Section is held to be unenforceable or challenged by the Contractor as unenforceable for any reason, the Owner shall be entitled to recover its actual, direct, and consequential damages, if any, resulting from Contractor’s delay in achieving Substantial Completion of the Work by the scheduled Substantial Completion Date. § 8.8.3 Certificate of Substantial Completion When the Work or designated portion thereof is substantially complete, the Architect will prepare a Certificate of Substantial Completion that shall establish the date of Substantial Completion, shall establish responsibilities of the Owner and Contractor for security, maintenance, heat, utilities, damage to the Work and insurance, and shall fix the time which the Contractor shall complete all items on the list accompanying the Certificate to sixty (60) calendar days. The Contractor will submit a punch list completion schedule within ten (10) days of receipt of Certificate of Substantial Completion. Any cost incurred by the Architect or Architect’s consultants (after 60 calendar days of substantial completion) to close out the project will be deducted from the Contractor’s contract by change order. Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Work or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion. Warranties on punch list items will commence on the date of final payment. § 8.8.4 The Contractor, prior to contract award, shall submit electronically to the architect a notarized copy of MN Responsible Contractor Compliance Affidavit from each subcontractor. If a subcontractor is substituted during the project, a new MN Responsible Contractor Compliance Affidavit will be required. § 8.8.5 INTENTIONALLY OMITTED § 8.8.6 INTENTIONALLY OMITTED § 8.8.7 NON-MINNESOTA CONTRACTOR. Non-Minnesota Contractors for contracts that exceed or can reasonably be expected to exceed $100,000 shall comply with the following Minnesota Department of Revenue Requirements (MN Law, MS 290.9705): § 8.8.7.1 File form SDE (Exemption from Surety Deposits for Non-Minnesota Contractors) with the Minnesota Revenue, Mail Station 6501, St. Paul, Minnesota 55146-6501. An exemption will be granted if: .1 The Contractor provides a cash surety or bond (8% of total contract), secured by an Insurance Company licensed in Minnesota, which guarantees compliance with all provisions of Minnesota withholding, sales and corporate income tax laws, or: Page 363 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 12 .2 The Contractor provides evidence of full compliance with such laws on previous construction work in Minnesota during the last three years. § 8.8.7.2 Submit a copy of form SDE, certified by the Department of Revenue, with the Contractor’s initial Application for Payment. § 8.8.7.3 If an exemption is not granted, 8 percent of each Application for Payment will be withheld as surety and deposited with the Department of Revenue, to be refunded with interest after the Contractor’s State tax obligations are fulfilled. § 8.8.8 FIREARMS PROHIBITED § 8.8.8.1 No provider of services pursuant to this contract, including but not limited to employees, agents, suppliers or subcontractor’s of the Contractor shall carry or possess a firearm on the Owner’s premises or while acting on behalf of the Owner pursuant to the terms of this agreement. Violation of this provision shall be considered a substantial breach of the Agreement; and, in addition to any other remedy available to the Owner under law or equity. Violation of this provision is grounds for immediate suspension or termination of this contract. PAGE 11 .1 AIA Document A132™–2019, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser EditionEdition, as modified … .4 Building Information Modeling Exhibit, if completed:AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, dated as indicated below: (Insert the date of the E203-2013 incorporated into this Agreement.) N/A … See Exhibit B Drawing Log 9/29/2025 … See Exhibit C Specifications Log 9/29/2025 2 … 1 2 9/26/2025 9/29/2025 3 109 PAGE 12 [ X ]Supplementary and other Conditions of the Contract: … Exhibit D Exhibit E Exhibit F Bid Scope Schedule Logistics 9/29/2025 9/29/2025 9/29/2025 4 1 1 … Karl Huemiller, Recreation Services Director Jim Dalsin, Sr. PM … Page 364 of 579 Additions and Deletions Report for AIA Document A132 – 2019. Copyright © 1975, 1980, 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 13 OWNER (Signature) Kris Weiby, Facilities Manager (Printed name and title) Page 365 of 579 AIA Document D401 – 2003. Copyright © 1992 and 2003. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:43:48 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1096901701) 1 Certification of Document’s Authenticity AIA® Document D401™ – 2003 I, Jon Cramer, hereby certify, to the best of my knowledge, information and belief, that I created the attached final document simultaneously with its associated Additions and Deletions Report and this certification at 11:43:48 on 10/10/2025 under Order No. 20250106427 from AIA Contract Documents software and that in preparing the attached final document I made no changes to the original text of AIA® Document A132™ – 2019, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition, other than those additions and deletions shown in the associated Additions and Deletions Report. _____________________________________________________________ (Signed) _____________________________________________________________ (Title) _____________________________________________________________ (Dated) Page 366 of 579 Document A132® – 2019 Exhibit A Insurance and Bonds Init. / AIA Document A132 – 2019 Exhibit A. Copyright © 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:41:33 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1833383022) 1 ADDITIONS AND DELETIONS: The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added information as well as revisions to the standard form text is available from the author and should be reviewed. A vertical line in the left margin of this document indicates where the author has added necessary information and where the author has added to or deleted from the original AIA text. This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. This document is intended to be used in conjunction with AIA Document A232™–2019, General Conditions of the Contract for Construction. Article 11 of A232™–2019 contains additional insurance provisions This Insurance and Bonds Exhibit is part of the Agreement, between the Owner and the Contractor, dated the day of in the year Two Thousand Twenty-Five (In words, indicate day, month, and year.) for the following PROJECT: (Name and location or address) Veterans Park Improvements - Rink 2 Re-Roof 636 East 66th Street, Richfield, MN 55423 This includes re-roofing rink 2, the structure between rink 1 and rink 2 and supporting improvements to the arena. THE OWNER: (Name, legal status, and address) City of Richfield 6700 Portland Ave Richfield, MN 55423 THE CONTRACTOR: (Name, legal status, and address) Per AIA Document A132-2019 TABLE OF ARTICLES A.1 GENERAL A.2 OWNER’S INSURANCE A.3 CONTRACTOR’S INSURANCE AND BONDS A.4 SPECIAL TERMS AND CONDITIONS ARTICLE A.1 GENERAL The Owner and Contractor shall purchase and maintain insurance, and provide bonds, as set forth in this Exhibit. As used in this Exhibit, the term General Conditions refers to AIA Document A232™–2019, General Conditions of the Contract for Construction. ARTICLE A.2 OWNER’S INSURANCE § A.2.1 General Prior to commencement of the Work, the Owner shall secure the insurance, and provide evidence of the coverage, required under this Article A.2 and, upon the Contractor’s request, provide a copy of the property insurance policy or policies required by Section A.2.3. The copy of the policy or policies provided shall contain all applicable conditions, definitions, exclusions, and endorsements. Page 367 of 579 Init. / AIA Document A132 – 2019 Exhibit A. Copyright © 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:41:33 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1833383022) 2 § A.2.2 Liability Insurance The Owner shall be responsible for purchasing and maintaining the Owner’s usual general liability insurance. § A.2.3 Required Property Insurance § A.2.3.1 Unless this obligation is placed on the Contractor pursuant to Section A.3.3.2.1, the Owner shall purchase and maintain, from an insurance company or insurance companies lawfully authorized to issue insurance in the jurisdiction where the Project is located, property insurance written on a builder’s risk "all-risks" completed value or equivalent policy form and sufficient to cover the total value of the entire Project on a replacement cost basis. The Owner’s property insurance coverage shall be no less than the amount of the initial Contract Sum, plus the value of subsequent Modifications and labor performed and materials or equipment supplied by others. The property insurance shall be maintained until Substantial Completion and thereafter as provided in Section A.2.3.1.3, unless otherwise provided in the Contract Documents or otherwise agreed in writing by the parties to this Agreement. This insurance shall include the interests of the Owner, Contractor, Subcontractors, and Sub-subcontractors in the Project as insureds. This insurance shall include the interests of mortgagees as loss payees. § A.2.3.1.1 Causes of Loss. The insurance required by this Section A.2.3.1 shall provide coverage for direct physical loss or damage, and shall not exclude the risks of fire, explosion, theft, vandalism, malicious mischief, collapse, earthquake, flood, or windstorm. The insurance shall also provide coverage for ensuing loss or resulting damage from error, omission, or deficiency in construction methods, design, specifications, workmanship, or materials. Sub-limits, if any, are as follows: (Indicate below the cause of loss and any applicable sub-limit.) Causes of Loss Sub-Limit § A.2.3.1.2 Specific Required Coverages. The insurance required by this Section A.2.3.1 shall provide coverage for loss or damage to false work and other temporary structures, and to building systems from testing and startup. The insurance shall also cover debris removal, including demolition occasioned by enforcement of any applicable legal requirements, and reasonable compensation for the Architect’s, Construction Manager’s, and Contractor’s services and expenses required as a result of such insured loss, including claim preparation expenses. Sub-limits, if any, are as follows: (Indicate below type of coverage and any applicable sub-limit for specific required coverages.) Coverage Sub-Limit § A.2.3.1.3 Unless the parties agree otherwise, upon Substantial Completion, the Owner shall continue the insurance required by Section A.2.3.1 or, if necessary, replace the insurance policy required under Section A.2.3.1 with property insurance written for the total value of the Project that shall remain in effect until expiration of the period for correction of the Work set forth in Section 12.2.2 of the General Conditions. § A.2.3.1.4 Deductibles and Self-Insured Retentions. If the insurance required by this Section A.2.3 is subject to deductibles or self-insured retentions, the Owner shall be responsible for all loss not covered because of such deductibles or retentions. § A.2.3.2 Occupancy or Use Prior to Substantial Completion. The Owner’s occupancy or use of any completed or partially completed portion of the Work prior to Substantial Completion shall not commence until the insurance company or companies providing the insurance under Section A.2.3.1 have consented in writing to the continuance of coverage. The Owner and the Contractor shall take no action with respect to partial occupancy or use that would cause cancellation, lapse, or reduction of insurance, unless they agree otherwise in writing. § A.2.3.3 Insurance for Existing Structures If the Work involves remodeling an existing structure or constructing an addition to an existing structure, the Owner shall purchase and maintain, until the expiration of the period for correction of Work as set forth in Section 12.2.2 of the General Conditions, "all-risks" property insurance, on a replacement cost basis, protecting the existing structure against direct physical loss or damage from the causes of loss identified in Section A.2.3.1, notwithstanding the undertaking of the Work. The Owner shall be responsible for all co-insurance penalties. Page 368 of 579 Init. / AIA Document A132 – 2019 Exhibit A. Copyright © 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:41:33 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1833383022) 3 § A.2.4 Optional Extended Property Insurance. The Owner shall purchase and maintain the insurance selected and described below. (Select the types of insurance the Owner is required to purchase and maintain by placing an X in the box(es) next to the description(s) of selected insurance. For each type of insurance selected, indicate applicable limits of coverage or other conditions in the fill point below the selected item.) [ ]§ A.2.4.1 Loss of Use, Business Interruption, and Delay in Completion Insurance, to reimburse the Owner for loss of use of the Owner’s property, or the inability to conduct normal operations due to a covered cause of loss. [ ]§ A.2.4.2 Ordinance or Law Insurance, for the reasonable and necessary costs to satisfy the minimum requirements of the enforcement of any law or ordinance regulating the demolition, construction, repair, replacement or use of the Project. [ ]§ A.2.4.3 Expediting Cost Insurance, for the reasonable and necessary costs for the temporary repair of damage to insured property, and to expedite the permanent repair or replacement of the damaged property. [ ]§ A.2.4.4 Extra Expense Insurance, to provide reimbursement of the reasonable and necessary excess costs incurred during the period of restoration or repair of the damaged property that are over and above the total costs that would normally have been incurred during the same period of time had no loss or damage occurred. [ ]§ A.2.4.5 Civil Authority Insurance, for losses or costs arising from an order of a civil authority prohibiting access to the Project, provided such order is the direct result of physical damage covered under the required property insurance. [ ]§ A.2.4.6 Ingress/Egress Insurance, for loss due to the necessary interruption of the insured’s business due to physical prevention of ingress to, or egress from, the Project as a direct result of physical damage. [ ]§ A.2.4.7 Soft Costs Insurance, to reimburse the Owner for costs due to the delay of completion of the Work, arising out of physical loss or damage covered by the required property insurance: including construction loan fees; leasing and marketing expenses; additional fees, including those of architects, engineers, consultants, attorneys and accountants, needed for the completion of the construction, repairs, or reconstruction; and carrying costs such as property taxes, building permits, additional interest on loans, realty taxes, and insurance premiums over and above normal expenses. § A.2.5 Other Optional Insurance. The Owner shall purchase and maintain the insurance selected below. (Select the types of insurance the Owner is required to purchase and maintain by placing an X in the box(es) next to the description(s) of selected insurance.) Page 369 of 579 Init. / AIA Document A132 – 2019 Exhibit A. Copyright © 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:41:33 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1833383022) 4 [ ]§ A.2.5.1 Cyber Security Insurance for loss to the Owner due to data security and privacy breach, including costs of investigating a potential or actual breach of confidential or private information. (Indicate applicable limits of coverage or other conditions in the fill point below.) [ ]§ A.2.5.2 Other Insurance (List below any other insurance coverage to be provided by the Owner and any applicable limits.) Coverage Limits ARTICLE A.3 CONTRACTOR’S INSURANCE AND BONDS § A.3.1 General § A.3.1.1 Certificates of Insurance. The Contractor shall provide certificates of insurance acceptable to the Owner evidencing compliance with the requirements in this Article A.3 at the following times: (1) prior to commencement of the Work; (2) upon renewal or replacement of each required policy of insurance; and (3) upon the Owner’s written request. An additional certificate evidencing continuation of commercial liability coverage, including coverage for completed operations, shall be submitted with the final Application for Payment and thereafter upon renewal or replacement of such coverage until the expiration of the periods required by Section A.3.2.1 and Section A.3.3.1. The certificates will show the Owner as an additional insured on the Contractor’s Commercial General Liability and excess or umbrella liability policy or policies. § A.3.1.2 Deductibles and Self-Insured Retentions. The Contractor shall disclose to the Owner any deductible or self- insured retentions applicable to any insurance required to be provided by the Contractor. § A.3.1.3 Additional Insured Obligations. To the fullest extent permitted by law, the Contractor shall cause the commercial general liability coverage to include (1) the Owner, the Architect and the Architect’s consultants, and the Construction Manager and the Construction Manager’s consultants, as additional insureds for claims caused in whole or in part by the Contractor’s negligent acts or omissions during the Contractor’s operations; and (2) the Owner as an additional insured for claims caused in whole or in part by the Contractor’s negligent acts or omissions for which loss occurs during completed operations. The additional insured coverage shall be primary and non-contributory to any of the Owner’s general liability insurance policies and shall apply to both ongoing and completed operations. To the extent commercially available, the additional insured coverage shall be no less than that provided by Insurance Services Office, Inc. (ISO) forms CG 20 10 07 04, CG 20 37 07 04, and, with respect to the Architect and the Architect’s consultants, and the Construction Manager and the Construction Manager’s consultants, CG 20 32 07 04. § A.3.2 Contractor’s Required Insurance Coverage § A.3.2.1 The Contractor shall purchase and maintain the following types and limits of insurance from an insurance company or insurance companies lawfully authorized to issue insurance in the jurisdiction where the Project is located. The Contractor shall maintain the required insurance until the expiration of the period for correction of Work as set forth in Section 12.2.2 of the General Conditions, unless a different duration is stated below: (If the Contractor is required to maintain insurance for a duration other than the expiration of the period for correction of Work, state the duration.) § A.3.2.2 Commercial General Liability § A.3.2.2.1 Commercial General Liability insurance for the Project written on an occurrence form with policy limits of not less than One Million Dollars ($ 1,000,000 ) each occurrence, Two Million ($ 2,000,000 ) general aggregate, and Two Million ($ $2,000,000 ) aggregate for products-completed operations hazard, providing coverage for claims including .1 damages because of bodily injury, sickness or disease, including occupational sickness or disease, and death of any person; .2 personal injury and advertising injury; Page 370 of 579 Init. / AIA Document A132 – 2019 Exhibit A. Copyright © 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:41:33 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1833383022) 5 .3 damages because of physical damage to or destruction of tangible property, including the loss of use of such property; .4 bodily injury or property damage arising out of completed operations; and .5 the Contractor’s indemnity obligations under Section 3.18 of the General Conditions. § A.3.2.2.2 The Contractor’s Commercial General Liability policy under this Section A.3.2.2 shall not contain an exclusion or restriction of coverage for the following: .1 Claims by one insured against another insured, if the exclusion or restriction is based solely on the fact that the claimant is an insured, and there would otherwise be coverage for the claim. .2 Claims for property damage to the Contractor’s Work arising out of the products-completed operations hazard where the damaged Work or the Work out of which the damage arises was performed by a Subcontractor. .3 Claims for bodily injury other than to employees of the insured. .4 Claims for indemnity under Section 3.18 of the General Conditions arising out of injury to employees of the insured. .5 Claims or loss excluded under a prior work endorsement or other similar exclusionary language. .6 Claims or loss due to physical damage under a prior injury endorsement or similar exclusionary language. .7 Claims related to residential, multi-family, or other habitational projects, if the Work is to be performed on such a project. .8 Claims related to roofing, if the Work involves roofing. .9 Claims related to exterior insulation finish systems (EIFS), synthetic stucco or similar exterior coatings or surfaces, if the Work involves such coatings or surfaces. .10 Claims related to earth subsidence or movement, where the Work involves such hazards. .11 Claims related to explosion, collapse and underground hazards, where the Work involves such hazards. § A.3.2.3 Automobile Liability covering vehicles owned, and non-owned vehicles used, by the Contractor, with policy limits of not less than One Million ($ $1,000,000 ) per accident, for bodily injury, death of any person, and property damage arising out of the ownership, maintenance and use of those motor vehicles along with any other statutorily required automobile coverage. § A.3.2.4 The Contractor may achieve the required limits and coverage for Commercial General Liability and Automobile Liability through a combination of primary and excess or umbrella liability insurance, provided such primary and excess or umbrella insurance policies result in the same or greater coverage as the coverages required under Section A.3.2.2 and A.3.2.3, and in no event shall any excess or umbrella liability insurance provide narrower coverage than the primary policy. The excess policy shall not require the exhaustion of the underlying limits only through the actual payment by the underlying insurers. § A.3.2.5 Workers’ Compensation at statutory limits. § A.3.2.6 Employers’ Liability with policy limits not less than One Million Dollars ($ 1,000,000 ) each accident, One Million Dollars ($ 1,000,000 ) each employee, and One Million Dollars ($ 1,000,000 ) policy limit. § A.3.2.7 Jones Act, and the Longshore & Harbor Workers’ Compensation Act, as required, if the Work involves hazards arising from work on or near navigable waterways, including vessels and docks § A.3.2.8 If the Contractor is required to furnish professional services as part of the Work, the Contractor shall procure Professional Liability insurance covering performance of the professional services, with policy limits of not less than One Million Dollars ($ 1,000,000 ) per claim and Two Million Dollars ($ 2,000,000 ) in the aggregate. § A.3.2.9 If the Work involves the transport, dissemination, use, or release of pollutants, the Contractor shall procure Pollution Liability insurance, with policy limits of not less than One Million Dollars ($ 1,000,000 ) per claim and Two Millions Dollars ($ 2,000,000 ) in the aggregate. § A.3.2.10 Coverage under Sections A.3.2.8 and A.3.2.9 may be procured through a Combined Professional Liability and Pollution Liability insurance policy, with combined policy limits of not less than Two Million ($ 2,000,000 ) per claim and Four Million Dollars ($ 4,000,000 ) in the aggregate. Page 371 of 579 Init. / AIA Document A132 – 2019 Exhibit A. Copyright © 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:41:33 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1833383022) 6 § A.3.2.11 Insurance for maritime liability risks associated with the operation of a vessel, if the Work requires such activities, with policy limits of not less than One Million ($ 1,000,000 ) per claim and One Million ($ ) in the aggregate. § A.3.2.12 Insurance for the use or operation of manned or unmanned aircraft, if the Work requires such activities, with policy limits of not less than One Million ($ 1,000,000 ) per claim and One Million ($ 1,000,000 ) in the aggregate. § A.3.3 Contractor’s Other Insurance Coverage § A.3.3.1 Insurance selected and described in this Section A.3.3 shall be purchased from an insurance company or insurance companies lawfully authorized to issue insurance in the jurisdiction where the Project is located. The Contractor shall maintain the required insurance until the expiration of the period for correction of Work as set forth in Section 12.2.2 of the General Conditions, unless a different duration is stated below: (If the Contractor is required to maintain any of the types of insurance selected below for a duration other than the expiration of the period for correction of Work, state the duration.) § A.3.3.2 The Contractor shall purchase and maintain the following types and limits of insurance in accordance with Section A.3.3.1. (Select the types of insurance the Contractor is required to purchase and maintain by placing an X in the box(es) next to the description(s) of selected insurance. Where policy limits are provided, include the policy limit in the appropriate fill point.) [ ]§ A.3.3.2.1 If there is only one Contractor performing the Work on the Project, property insurance of the same type and scope satisfying the requirements identified in Section A.2.3, which, if selected in this section A.3.3.2.1, relieves the Owner of the responsibility to purchase and maintain such insurance except insurance required by Section A.2.3.1.3 and Section A.2.3.3. The Contractor shall comply with all obligations of the Owner under Section A.2.3 except to the extent provided below. The Contractor shall disclose to the Owner the amount of any deductible, and the Owner shall be responsible for losses within the deductible. Upon request, the Contractor shall provide the Owner with a copy of the property insurance policy or policies required. The Owner shall adjust and settle the loss with the insurer and be the trustee of the proceeds of the property insurance in accordance with Article 11 of the General Conditions unless otherwise set forth below: (Where the Contractor’s obligation to provide property insurance differs from the Owner’s obligations as described under Section A.2.3, indicate such differences in the space below. Additionally, if a party other than the Owner will be responsible for adjusting and settling a loss with the insurer and acting as the trustee of the proceeds of property insurance in accordance with Article 11 of the General Conditions, indicate the responsible party below.) [ ]§ A.3.3.2.2 Railroad Protective Liability Insurance, with policy limits of not less than ($ ) per claim and ($ ) in the aggregate, for Work within fifty (50) feet of railroad property. [ ]§ A.3.3.2.3 Asbestos Abatement Liability Insurance, with policy limits of not less than ($ ) per claim and ($ ) in the aggregate, for liability arising from the encapsulation, removal, handling, storage, transportation, and disposal of asbestos-containing materials. [ ]§ A.3.3.2.4 Insurance for physical damage to property while it is in storage and in transit to the construction site on an "all-risks" completed value form. [ ]§ A.3.3.2.5 Property insurance on an "all-risks" completed value form, covering property owned by the Contractor and used on the Project, including scaffolding and other equipment. Page 372 of 579 Init. / AIA Document A132 – 2019 Exhibit A. Copyright © 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:41:33 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1833383022) 7 [ ]§ A.3.3.2.6 Other Insurance (List below any other insurance coverage to be provided by the Contractor and any applicable limits.) Coverage Limits § A.3.4 Performance Bond and Payment Bond The Contractor shall provide surety bonds, from a company or companies lawfully authorized to issue surety bonds in the jurisdiction where the Project is located, as follows: (Specify type and penal sum of bonds.) Type Penal Sum ($0.00) Payment Bond 100% of Total Contract Amount Performance Bond 100% of Total Contract Amount Payment and Performance Bonds shall be AIA Document A312™, Payment Bond and Performance Bond, or contain provisions identical to AIA Document A312™, current as of the date of this Agreement. ARTICLE A.4 SPECIAL TERMS AND CONDITIONS Special terms and conditions that modify this Insurance and Bonds Exhibit, if any, are as follows: 1. Contractor’s policies shall be primary insurance to any other valid and collectible insurance available to the City with respect to any claim arising out of Contractor’s performance under this contract. 2. Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced written notice to the City, or ten (10) days’ written notice for non-payment of premium. 3. Contractor is responsible for payment of Contract related insurance premiums and deductibles. 4. If Contractor is self-insured, a Certificate of Self-Insurance must be attached. 5. Contractor’s policies shall include legal defense fees in addition to its liability policy limits, with the exception of the professional liability insurance. 6. Contractor shall obtain insurance policies from insurance companies having an "AM BEST" rating of A- (minus); Financial Size Category (FSC) VII or better, and authorized to do business in the State of Minnesota. 7.An Umbrella or Excess Liability insurance policy may be used to supplement the Contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by the Contract. 8. The City reserves the right to immediately terminate the contract if the Contractor is not in compliance with the insurance requirements and retains all rights to pursue any legal remedies against the contractor. 9. All insurance policies must be open to inspection by the City, and copies of policies must be submitted to the City’s authorized representative upon written request. 10. The Contractor is required to submit a Certificates of Insurance acceptable to the City as evidence of the required insurance coverage requirements. 11. The City reserves the right to modify the insurance requirements for a particular project. Page 373 of 579 Additions and Deletions Report for AIA® Document A132® – 2019 Exhibit A This Additions and Deletions Report, as defined on page 1 of the associated document, reproduces below all text the author has added to the standard form AIA document in order to complete it, as well as any text the author may have added to or deleted from the original AIA text. Added text is shown underlined. Deleted text is indicated with a horizontal line through the original AIA text. Note: This Additions and Deletions Report is provided for information purposes only and is not incorporated into or constitute any part of the associated AIA document. This Additions and Deletions Report and its associated document were generated simultaneously by AIA software at 11:41:33 on 10/10/2025. Additions and Deletions Report for AIA Document A132 – 2019 Exhibit A. Copyright © 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:41:33 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1833383022) 1 PAGE 1 This Insurance and Bonds Exhibit is part of the Agreement, between the Owner and the Contractor, dated the day of in the year Two Thousand Twenty-Five … Veterans Park Improvements - Rink 2 Re-Roof 636 East 66th Street, Richfield, MN 55423 This includes re-roofing rink 2, the structure between rink 1 and rink 2 and supporting improvements to the arena. … City of Richfield 6700 Portland Ave Richfield, MN 55423 … Per AIA Document A132-2019 PAGE 4 § A.3.2.2.1 Commercial General Liability insurance for the Project written on an occurrence form with policy limits of not less than One Million Dollars ($ 1,000,000 ) each occurrence, Two Million ($ 2,000,000 ) general aggregate, and Two Million ($ $2,000,000 ) aggregate for products-completed operations hazard, providing coverage for claims including PAGE 5 § A.3.2.3 Automobile Liability covering vehicles owned, and non-owned vehicles used, by the Contractor, with policy limits of not less than One Million ($ $1,000,000 ) per accident, for bodily injury, death of any person, and property damage arising out of the ownership, maintenance and use of those motor vehicles along with any other statutorily required automobile coverage. … § A.3.2.6 Employers’ Liability with policy limits not less than One Million Dollars ($ 1,000,000 ) each accident, One Million Dollars ($ 1,000,000 ) each employee, and One Million Dollars ($ 1,000,000 ) policy limit. … § A.3.2.8 If the Contractor is required to furnish professional services as part of the Work, the Contractor shall procure Professional Liability insurance covering performance of the professional services, with policy limits of not less than One Million Dollars ($ 1,000,000 ) per claim and Two Million Dollars ($ 2,000,000 ) in the aggregate. Page 374 of 579 Additions and Deletions Report for AIA Document A132 – 2019 Exhibit A. Copyright © 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:41:33 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1833383022) 2 § A.3.2.9 If the Work involves the transport, dissemination, use, or release of pollutants, the Contractor shall procure Pollution Liability insurance, with policy limits of not less than One Million Dollars ($ 1,000,000 ) per claim and Two Millions Dollars ($ 2,000,000 ) in the aggregate. § A.3.2.10 Coverage under Sections A.3.2.8 and A.3.2.9 may be procured through a Combined Professional Liability and Pollution Liability insurance policy, with combined policy limits of not less than Two Million ($ 2,000,000 ) per claim and Four Million Dollars ($ 4,000,000 ) in the aggregate. § A.3.2.11 Insurance for maritime liability risks associated with the operation of a vessel, if the Work requires such activities, with policy limits of not less than One Million ($ 1,000,000 ) per claim and One Million ($ ) in the aggregate. § A.3.2.12 Insurance for the use or operation of manned or unmanned aircraft, if the Work requires such activities, with policy limits of not less than One Million ($ 1,000,000 ) per claim and One Million ($ 1,000,000 ) in the aggregate. PAGE 7 Payment Bond 100% of Total Contract Amount Performance Bond 100% of Total Contract Amount … 1. Contractor’s policies shall be primary insurance to any other valid and collectible insurance available to the City with respect to any claim arising out of Contractor’s performance under this contract. 2. Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced written notice to the City, or ten (10) days’ written notice for non-payment of premium. 3. Contractor is responsible for payment of Contract related insurance premiums and deductibles. 4. If Contractor is self-insured, a Certificate of Self-Insurance must be attached. 5. Contractor’s policies shall include legal defense fees in addition to its liability policy limits, with the exception of the professional liability insurance. 6. Contractor shall obtain insurance policies from insurance companies having an "AM BEST" rating of A- (minus); Financial Size Category (FSC) VII or better, and authorized to do business in the State of Minnesota. 7.An Umbrella or Excess Liability insurance policy may be used to supplement the Contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by the Contract. 8. The City reserves the right to immediately terminate the contract if the Contractor is not in compliance with the insurance requirements and retains all rights to pursue any legal remedies against the contractor. 9. All insurance policies must be open to inspection by the City, and copies of policies must be submitted to the City’s authorized representative upon written request. 10. The Contractor is required to submit a Certificates of Insurance acceptable to the City as evidence of the required insurance coverage requirements. 11. The City reserves the right to modify the insurance requirements for a particular project. Page 375 of 579 Document A232® – 2019 General Conditions of the Contract for Construction, Construction Manager as Adviser Edition Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 1 ADDITIONS AND DELETIONS: The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added information as well as revisions to the standard form text is available from the author and should be reviewed. A vertical line in the left margin of this document indicates where the author has added necessary information and where the author has added to or deleted from the original AIA text. This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. This document is intended to be used in conjunction with AIA Documents A132™–2019, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition; B132™–2019, Standard Form of Agreement Between Owner and Architect, Construction Manager as Adviser Edition; and C132™–2019, Standard Form of Agreement Between Owner and Construction Manager as Adviser. for the following PROJECT: (Name, and location or address) Veterans Park Improvements – Rink 2 Re-Roof 636 East 66th Street, Richfield, MN 55423 This includes re-roofing rink 2, re-roofing the structure between rink 1 and rink 2 and supporting improvements to the arena. THE CONSTRUCTION MANAGER: (Name, legal status, and address) Loeffler Construction Consulting LLC d/b/a Loeffler Construction & Consulting 9202 202nd St. W., Suite 100 Lakeville, MN 55044 THE OWNER: (Name, legal status, and address) City of Richfield 6700 Portland Ave Richfield, MN 55423 THE ARCHITECT: (Name, legal status, and address) U+B Architecture & Design, Inc. 112 North 1st Street Minneapolis, MN 55401 Phone: (612) 746-4260 Page 376 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 2 TABLE OF ARTICLES 1 GENERAL PROVISIONS 2 OWNER 3 CONTRACTOR 4 ARCHITECT AND CONSTRUCTION MANAGER 5 SUBCONTRACTORS 6 CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS 7 CHANGES IN THE WORK 8 TIME 9 PAYMENTS AND COMPLETION 10 PROTECTION OF PERSONS AND PROPERTY 11 INSURANCE AND BONDS 12 UNCOVERING AND CORRECTION OF WORK 13 MISCELLANEOUS PROVISIONS 14 TERMINATION OR SUSPENSION OF THE CONTRACT 15 CLAIMS AND DISPUTES Page 377 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 3 ARTICLE 1 GENERAL PROVISIONS § 1.1 Basic Definitions § 1.1.1 The Contract Documents. The Contract Documents are enumerated in the Agreement between the Owner and Contractor (hereinafter the Agreement) and consist of the Agreement, Conditions of the Contract (General, Supplementary and other Conditions), Drawings, Specifications, Addenda issued prior to execution of the Contract, other documents listed in the Agreement, and Modifications issued after execution of the Contract. A Modification is (1) a written amendment to the Contract signed by both parties, (2) a Change Order, (3) a Construction Change Directive, or (4) a written order for a minor change in the Work issued by the Architect. Unless specifically enumerated in the Agreement, the Contract Documents do not include the advertisement or invitation to bid, Instructions to Bidders, sample forms, other information furnished by the Owner in anticipation of receiving bids or proposals, the Contractor’s bid or proposal, or portions of addenda relating to bidding or proposal requirements. § 1.1.2 The Contract. The Contract Documents form the Contract for Construction. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations, or agreements, either written or oral. The Contract may be amended or modified only by a Modification. The Contract Documents shall not be construed to create a contractual relationship of any kind (1) between the Contractor and the Architect or the Architect’s consultants, (2) between the Owner and the Construction Manager or the Construction Manager’s consultants, (3) between the Owner and the Architect or the Architect’s consultants, (4) between the Contractor and the Construction Manager or the Construction Manager’s consultants, (5) between the Owner and a Subcontractor or Sub-subcontractor (6) between the Construction Manager and the Architect, or (7) between any persons or entities other than the Owner and Contractor. The Construction Manager and Architect shall, however, be entitled to performance and enforcement of obligations under the Contract intended to facilitate performance of their duties. § 1.1.3 The Work. The term "Work" means the construction and services required by the Contract Documents, whether completed or partially completed, and includes all other labor, materials, equipment, and services provided or to be provided by the Contractor to fulfill the Contractor’s obligations. The Work may constitute the whole or a part of the Project. § 1.1.4 The Project. The Project is the total construction of which the Work performed under the Contract Documents may be the whole or a part and which may include construction by other Contractors, and by the Owner’s own forces and Separate Contractors. § 1.1.5 Contractors. Contractors are persons or entities, other than the Contractor or Separate Contractors, who perform Work under contracts with the Owner that are administered by the Architect and Construction Manager. § 1.1.6 Separate Contractors. Separate Contractors are persons or entities who perform construction under separate contracts with the Owner not administered by the Architect and Construction Manager. § 1.1.7 The Drawings. The Drawings are the graphic and pictorial portions of the Contract Documents showing the design, location and dimensions of the Work, generally including plans, elevations, sections, details, schedules, and diagrams. § 1.1.8 The Specifications. The Specifications are that portion of the Contract Documents consisting of the written requirements for materials, equipment, systems, standards and workmanship for the Work, and performance of related services. § 1.1.9 Instruments of Service. Instruments of Service are representations, in any medium of expression now known or later developed, of the tangible and intangible creative work performed by the Architect and the Architect’s consultants under their respective professional services agreements. Instruments of Service may include, without limitation, studies, surveys, models, sketches, drawings, specifications, and other similar materials. § 1.1.10 Initial Decision Maker. The Initial Decision Maker is the person identified in the Agreement to render initial decisions on Claims in accordance with Section 15.2. The Initial Decision Maker shall not show partiality to the Owner or Contractor and shall not be liable for results of interpretations or decisions rendered in good faith. Page 378 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 4 § 1.2 Correlation and Intent of the Contract Documents § 1.2.1 The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work by the Contractor. The Contract Documents are complementary, and what is required by one shall be as binding as if required by all; performance by the Contractor shall be required only to the extent consistent with the Contract Documents and reasonably inferable from them as being necessary to produce the indicated results. § 1.2.1.1 The invalidity of any provision of the Contract Documents shall not invalidate the Contract or its remaining provisions. If it is determined that any provision of the Contract Documents violates any law, or is otherwise invalid or unenforceable, then that provision shall be revised to the extent necessary to make that provision legal and enforceable. In such case the Contract Documents shall be construed, to the fullest extent permitted by law, to give effect to the parties’ intentions and purposes in executing the Contract. § 1.2.2 Organization of the Specifications into divisions, sections and articles, and arrangement of Drawings shall not control the Contractor in dividing the Work among Subcontractors or in establishing the extent of Work to be performed by any trade. § 1.2.3 Unless otherwise stated in the Contract Documents, words that have well-known technical or construction industry meanings are used in the Contract Documents in accordance with such recognized meanings. § 1.3 Capitalization Terms capitalized in these General Conditions include those that are (1) specifically defined, (2) the titles of numbered articles, or (3) the titles of other documents published by the American Institute of Architects. § 1.4 Interpretation In the interest of brevity the Contract Documents frequently omit modifying words such as "all" and "any" and articles such as "the" and "an," but the fact that a modifier or an article is absent from one statement and appears in another is not intended to affect the interpretation of either statement. § 1.5 Ownership and Use of Drawings, Specifications, and Other Instruments of Service § 1.5.1 Subject to the Agreement between Owner and Architect, the Architect and the Architect’s consultants shall be deemed the authors and owners of their respective Instruments of Service, including the Drawings and Specifications, and retain all common law, statutory, and other reserved rights in their Instruments of Service, including copyrights. The Contractor, Subcontractors, sub-subcontractors, and suppliers shall not own or claim a copyright in the Instruments of Service. Submittal or distribution to meet official regulatory requirements or for other purposes in connection with the Project is not to be construed as publication in derogation of the Architect’s or Architect’s consultants’ reserved rights. § 1.5.2 The Contractor, Subcontractors, Sub-subcontractors, and suppliers are authorized to use and reproduce the Instruments of Service provided to them, subject to any protocols established pursuant to Sections 1.7 and 1.8, solely and exclusively for execution of the Work. All copies made under this authorization shall bear the copyright notice, if any, shown on the Instruments of Service. The Contractor, Subcontractors, Sub-subcontractors, and suppliers may not use the Instruments of Service on other projects or for additions to the Project outside the scope of the Work without the specific written consent of the Owner, Architect, and the Architect’s consultants. § 1.6 Notice § 1.6.1 Except as otherwise provided in Section 1.6.2, where the Contract Documents require one party to notify or give notice to the other party, such notice shall be provided in writing to the designated representative of the party to whom the notice is addressed and shall be deemed to have been duly served if delivered in person, by mail, by courier, or by electronic transmission if a method for electronic transmission is set forth in the Agreement. § 1.6.2 Notice of Claims as provided in Section 15.1.3 shall be provided in writing and shall be deemed to have been duly served only if delivered to the designated representative of the party to whom the notice is addressed by certified or registered mail, or by courier providing proof of delivery. § 1.7 Digital Data Use and Transmission The parties shall agree upon protocols governing the transmission and use of Instruments of Service or any other information or documentation in digital form. The parties may use AIA Document E203™–2013, Building Page 379 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 5 Information Modeling and Digital Data Exhibit, to establish the protocols for the development, use, transmission, and exchange of digital data. § 1.8 Building Information Models Use and Reliance Any use of, or reliance on, all or a portion of a building information model without agreement to protocols governing the use of, and reliance on, the information contained in the model and without having those protocols set forth in AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, or similar written agreement, and the requisite AIA Document G202™–2013, Project Building Information Modeling Protocol Form, shall be at the using or relying party’s sole risk and without liability to the other party and its contractors or consultants, the authors of, or contributors to, the building information model, and each of their agents and employees. ARTICLE 2 OWNER § 2.1 General § 2.1.1 The Owner is the person or entity identified as such in the Agreement and is referred to throughout the Contract Documents as if singular in number. The Owner shall identify a representative authorized to act on the Owner’s behalf only with respect to specific matters delegated to the representative in writing by the Owner’s governing body. Except as expressly delegated by the Owner’s governing body, the Owner’s representative has no authority to agree to any adjustments in the Contract Sum or Contract Time. Except as otherwise provided in Section 4.2.1, the Construction Manager and the Architect do not have such authority. (Paragraph deleted) § 2.2 Evidence of the Owner’s Financial Arrangements § 2.2.1 Prior to commencement of the Work, and upon written request by the Contractor, the Owner shall furnish to the Contractor reasonable evidence that the Owner has made financial arrangements to fulfill the Owner’s obligations under the Contract. The Contractor shall have no obligation to commence the Work until the Owner provides such evidence. If commencement of the Work is delayed under this Section 2.2.1, the Contract Time shall be extended appropriately. § 2.2.2 Following commencement of the Work and upon written request by the Contractor, the Owner shall furnish to the Contractor reasonable evidence that the Owner has made financial arrangements to fulfill the Owner’s obligations under the Contract only if (1) the Owner fails to make payments to the Contractor as the Contract Documents require; (2) the Contractor identifies in writing a reasonable concern regarding the Owner’s ability to make payment when due; or (3) a change in the Work materially changes the Contract Sum. If the Owner fails to provide such evidence, as required, within fourteen days of the Contractor’s request, the Contractor may immediately stop the Work and, in that event, shall notify the Owner that the Work has stopped. However, if the request is made because a change in the Work materially changes the Contract Sum under (3) above, the Contractor may immediately stop only that portion of the Work affected by the change until reasonable evidence is provided. If the Work is stopped under this Section 2.2.2, the Contract Time shall be extended appropriately and the Contract Sum shall be increased by the amount of the Contractor’s reasonable costs of shutdown, delay and start-up, plus interest as provided in the Contract Documents. § 2.2.3 After the Owner furnishes evidence of financial arrangements under this Section 2.2, the Owner shall not materially vary such financial arrangements without prior notice to the Contractor. § 2.2.4 Where the Owner has designated information furnished under this Section 2.2 as "confidential," the Contractor shall keep the information confidential and shall not disclose it to any other person. However, the Contractor may disclose "confidential" information, after seven (7) days’ notice to the Owner, where disclosure is required by law, including a subpoena or other form of compulsory legal process issued by a court or governmental entity, or by court or arbitrator(s) order. The Contractor may also disclose "confidential" information to its employees, consultants, sureties, Subcontractors and their employees, Sub-subcontractors, and others who need to know the content of such information solely and exclusively for the Project and who agree to maintain the confidentiality of such information. § 2.3 Information and Services Required of the Owner § 2.3.1 Except for permits and fees that are the responsibility of the Contractor under the Contract Documents, including those required under Section 3.7.1, the Owner shall secure and pay for necessary approvals, easements, assessments and charges required for construction, use or occupancy of permanent structures or for permanent Page 380 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 6 changes in existing facilities. Unless otherwise provided under the Contract Documents, the Owner, assisted by the Construction Manager, shall secure and pay for the building permit. § 2.3.2 The Owner shall retain an architect lawfully licensed to practice architecture, or an entity lawfully practicing architecture, in the jurisdiction where the Project is located. That person or entity is identified as the Architect in the Agreement and is referred to throughout the Contract Documents as if singular in number. § 2.3.3 The Owner shall retain a construction manager adviser lawfully practicing construction management in the jurisdiction where the Project is located. That person or entity is identified as the Construction Manager in the Agreement and is referred to throughout the Contract Documents as if singular in number. § 2.3.4 If the employment of the Construction Manager or Architect terminates, the Owner shall employ a successor construction manager or architect to whom the Contractor has no reasonable objection and whose status under the Contract Documents shall be that of the Construction Manager or Architect, respectively. § 2.3.5 The Owner shall furnish surveys describing physical characteristics, legal limitations and utility locations for the site of the Project, and a legal description of the site. Except for utility locations provided by private utilities, which Owner does not warrant for accuracy, the Contractor shall be entitled to rely on the accuracy of information furnished by the Owner but shall exercise proper precautions relating to the safe performance of the Work. The Contractor shall be responsible for verifying the accuracy of all utility locations supplied by private utilities. § 2.3.6 The Owner shall furnish information or services required of the Owner by the Contract Documents with reasonable promptness. The Owner shall also furnish any other information or services under the Owner’s control and relevant to the Contractor’s performance of the Work with reasonable promptness after receiving the Contractor’s written request for such information or services. § 2.3.7 Unless otherwise provided in the Contract Documents, the Owner shall furnish to the Contractor one copy of the Contract Documents for purposes of making reproductions pursuant to Section 1.5.2. § 2.3.8 The Owner shall forward all communications to the Contractor through the Construction Manager. Other communication shall be made as set forth in Section 4.2.6. § 2.4 Owner’s Right to Stop the Work If the Contractor fails to correct Work that is not in accordance with the requirements of the Contract Documents as required by Section 12.2 or repeatedly fails to carry out Work in accordance with the Contract Documents, the Owner may issue a written order to the Contractor to stop the Work, or any portion thereof, until the cause for such order has been eliminated; however, the right of the Owner to stop the Work shall not give rise to a duty on the part of the Owner to exercise this right for the benefit of the Contractor or any other person or entity, except to the extent required by Section 6.1.3. § 2.5 Owner’s Right to Carry Out the Work If the Contractor defaults or neglects to carry out the Work in accordance with the Contract Documents and fails within a ten-day period after receipt of notice from the Owner to commence and continue correction of such default or neglect with diligence and promptness, the Owner may, without prejudice to other remedies the Owner may have, correct such default or neglect. Such action by the Owner and amounts charged to the Contractor are both subject to review by the Construction Manager and prior approval of the Architect, and the Construction Manager or Architect may, pursuant to Section 9.5.1, withhold or nullify a Certificate for Payment in whole or in part, to the extent reasonably necessary to reimburse the Owner for the reasonable cost of correcting such deficiencies, including Owner’s expenses and compensation for the Construction Manager’s and Architect’s and their respective consultants’ additional services made necessary by such default, neglect, or failure. If current and future payments are not sufficient to cover such amounts, the Contractor shall pay the difference to the Owner. If the Contractor disagrees with the actions of the Owner or the Architect, or the amounts claimed as costs to the Owner, the Contractor may file a Claim pursuant to Article 15. Page 381 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 7 ARTICLE 3 CONTRACTOR § 3.1 General § 3.1.1 The Contractor is the person or entity identified as such in the Agreement and is referred to throughout the Contract Documents as if singular in number. The Contractor shall be lawfully licensed, if required in the jurisdiction where the Project is located. The Contractor shall designate in writing a representative who shall have express authority to bind the Contractor with respect to all matters under this Contract. The term "Contractor" means the Contractor or the Contractor’s authorized representative. § 3.1.2 The Contractor shall perform the Work in accordance with the Contract Documents. § 3.1.3 The Contractor shall not be relieved of its obligations to perform the Work in accordance with the Contract Documents either by activities or duties of the Construction Manager or Architect in their administration of the Contract, or by tests, inspections or approvals required or performed by persons or entities other than the Contractor. § 3.2 Review of Contract Documents and Field Conditions by Contractor § 3.2.1 By executing the Contract, the Contractor represents that the Contractor has reviewed and understands the Contract Documents, has visited the Site and is familiar with local conditions under which the Work is to be performed, has correlated personal observations with the requirements of the Contract Documents, and has notified the Architect of and obtained clarification of any discrepancies which have become apparent during the bidding or proposal period. § 3.2.2 Because the Contract Documents are complementary, the Contractor shall, before starting each portion of the Work, carefully study and compare the various Contract Documents relative to that portion of the Work, as well as the information furnished by the Owner pursuant to Section 2.3.5, shall take field measurements of any existing conditions related to that portion of the Work, and shall observe any conditions at the site affecting it. These obligations are for the purpose of facilitating coordination and construction by the Contractor and are not for the purpose of discovering errors, omissions, or inconsistencies in the Contract Documents; however, the Contractor shall promptly report to the Construction Manager and Architect any errors, inconsistencies or omissions discovered by or made known to the Contractor as a request for information submitted to the Construction Manager in such form as the Construction Manager and Architect may require. It is recognized that the Contractor’s review is made in the Contractor’s capacity as a contractor and not as a licensed design professional, unless otherwise specifically provided in the Contract Documents. § 3.2.3 The Contractor is not required to ascertain that the Contract Documents are in accordance with applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities, but the Contractor shall promptly report to the Construction Manager and Architect any nonconformity discovered by or made known to the Contractor as a request for information submitted to Construction Manager in such form as the Construction Manager and Architect may require. § 3.2.4 The Contractor must make frequent inspections during the progress of the Work to confirm that Work previously performed by the Contractor is in compliance with the Contract Documents and applicable laws and regulations bearing on the performance of the Work and Referenced Standards and that portion of Work previously performed by the Contractor or by others are in proper condition to receive subsequent Work. § 3.2.5 The Contractor must promptly notify the Owner and the Architect in writing of any apparent errors, inconsistencies, omissions, ambiguities, construction impracticalities or code violations discovered as a result of the Contractor’s review of the Contract Documents including any differences between actual and indicated dimensions, locations and descriptions, and must give the Owner and the Architect timely notice in writing of same and of any corrections, clarifications, additional Drawings or Specifications, or other information required to define the Work in greater detail or to permit the proper progress of the Work. The Contractor must provide similar notice with respect to any variance between its review of the Site and physical data and Site conditions observed. § 3.2.6 If the Contractor performs any Work involving an apparent error, inconsistency, ambiguity, construction impracticality, omission or code violation in the Contract Documents of which the Contractor is aware, or which could reasonably have been discovered by the review required by Section 3.2, without prompt written notice to the Owner Page 382 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 8 and the Architect and request for correction, clarification or additional information, as appropriate, the Contractor does so at its own risk and expense and all claims relating thereafter are specifically waived. § 3.2.7 If the Contractor believes that additional cost or time is involved because of clarifications or instructions the Architect issues in response to the Contractor’s notices or requests for information pursuant to Sections 3.2, the Contractor shall submit Claims as provided in Article 15. If the Contractor fails to perform the obligations of Sections 3.2, the Contractor shall pay such costs and damages to the Owner, subject to section 15.1.7, as would have been avoided if the Contractor had performed such obligations. If the Contractor performs those obligations, the Contractor shall not be liable to the Owner or Architect for damages resulting from errors, inconsistencies or omissions in the Contract Documents, for differences between field measurements or conditions and the Contract Documents, or for nonconformities of the Contract Documents to applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities. § 3.3 Supervision and Construction Procedures § 3.3.1 The Contractor shall supervise and direct the Work, using the Contractor’s best skill and attention. The Contractor shall be solely responsible for, and have control over, construction means, methods, techniques, sequences, and procedures, and for coordinating all portions of the Work under the Contract. If the Contract Documents give specific instructions concerning construction means, methods, techniques, sequences, or procedures, the Contractor shall evaluate the jobsite safety thereof and shall be solely responsible for the jobsite safety of such means, methods, techniques, sequences, or procedures. If the Contractor determines that such means, methods, techniques, sequences or procedures may not be safe, the Contractor shall give timely notice to the Owner, the Construction Manager, and the Architect, and shall propose alternative means, methods, techniques, sequences, or procedures. The Architect shall evaluate the proposed alternative solely for conformance with the design intent for the completed construction. The Construction Manager shall review the proposed alternative for sequencing, constructability, and coordination impacts on the other Contractors. Unless the Architect or the Construction Manager objects to the Contractor’s proposed alternative, the Contractor shall perform the Work using its alternative means, methods, techniques, sequences, or procedures. § 3.3.2 The Contractor shall be responsible to the Owner for acts and omissions of the Contractor’s employees, Subcontractors and their agents and employees, and other persons or entities performing portions of the Work for, or on behalf of, the Contractor or any of its Subcontractors. § 3.3.3 The Contractor shall be responsible for inspection of portions of the Project already performed to determine that such portions are in proper condition to receive subsequent Work. § 3.4 Labor and Materials § 3.4.1 Unless otherwise provided in the Contract Documents, the Contractor shall provide and pay for labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation, and other facilities and services necessary for proper execution and completion of the Work, whether temporary or permanent and whether or not incorporated or to be incorporated in the Work. § 3.4.2 Except in the case of minor changes in the Work approved by the Architect in accordance with Section 3.12.8 or ordered by the Architect in accordance with Section 7.4, the Contractor may make substitutions only with the consent of the Owner, after evaluation by the Architect, in consultation with the Construction Manager, and in accordance with a Change Order or Construction Change Directive. § 3.4.3 The Contractor shall enforce strict discipline and good order among the Contractor’s employees, Subcontractors, and other persons carrying out the Work. The Contractor shall not permit employment of unfit persons or persons not properly skilled in tasks assigned to them. § 3.5 Warranty § 3.5.1 The Contractor warrants to the Owner, Construction Manager, and Architect that materials and equipment furnished under the Contract will be of good quality and new unless the Contract Documents require or permit otherwise. The Contractor further warrants that the Work will conform to the requirements of the Contract Documents and will be free from defects, except for those inherent in the quality of the Work the Contract Documents require or permit. Work, materials, or equipment not conforming to these requirements may be considered defective. The Contractor’s warranty excludes remedy for damage or defect caused by abuse, alterations to the Work not executed by Page 383 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 9 the Contractor, improper or insufficient maintenance, improper operation, or normal wear and tear and normal usage. If required by the Construction Manager or Architect, the Contractor shall furnish satisfactory evidence as to the kind and quality of materials and equipment. § 3.5.2 All material, equipment, or other special warranties required by the Contract Documents shall be issued in the name of the Owner, or shall be transferable to the Owner, and shall commence in accordance with Section 9.8.4. § 3.5.3 The Contractor’s general warranty and any additional or special warranties are not limited by the Contractor’s obligations to specifically correct defective or nonconforming Work as provided in Article 12, nor are they limited by any other remedies provided in the Contract Documents. The Contractor shall also be liable for any damage to property or persons (including death) including consequential and direct damages relating to any breach of the Contractor’s general warranty or any additional or special warranties required by the Contract Documents. § 3.5.4 The Contractor must furnish all special warranties required by the Contract Documents to the Owner no later than Substantial Completion. The Owner may require additional special warranties in connection with the approval of "Or-Equals" or Substitutions, Allowance items, Work that is defective or nonconforming, or the acceptance of nonconforming Work pursuant to Article 12. § 3.6 Taxes The Contractor shall pay sales, consumer, use and similar taxes for the Work or portions thereof provided by the Contractor that are legally enacted when bids are received or negotiations concluded, whether or not yet effective or merely scheduled to go into effect. § 3.7 Permits, Fees, Notices, and Compliance with Laws § 3.7.1 Unless otherwise provided in the Contract Documents, the Owner, assisted by the Construction Manager, shall secure and pay for the building permit. The Contractor shall secure and pay for other permits, fees, licenses, and inspections by government agencies necessary for proper execution and completion of the Work that are customarily secured after execution of the Contract and legally required at the time bids are received or negotiations concluded. § 3.7.2 The Contractor shall comply with and give notices required by applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities applicable to performance of the Work. § 3.7.3 If the Contractor performs Work knowing it to be contrary to applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities, the Contractor shall assume appropriate responsibility for such Work and shall bear the costs attributable to correction. § 3.7.4 Concealed or Unknown Conditions. If the Contractor encounters conditions at the site that are (1) subsurface or otherwise concealed physical conditions that differ materially from those indicated in the Contract Documents or (2) unknown physical conditions of an unusual nature that differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the Contract Documents, the Contractor shall promptly provide notice to the Owner, Construction Manager, and the Architect before conditions are disturbed and in no event later than 14 days after first observance of the conditions. The Architect and Construction Manager will promptly investigate such conditions and, if the Architect, in consultation with the Construction Manager, determines that they differ materially and cause an increase or decrease in the Contractor’s cost of, or time required for, performance of any part of the Work, will recommend that an equitable adjustment be made in the Contract Sum or Contract Time, or both. If the Architect, in consultation with the Construction Manager, determines that the conditions at the site are not materially different from those indicated in the Contract Documents and that no change in the terms of the Contract is justified, the Architect shall promptly notify the Owner, Construction Manager, and Contractor, stating the reasons. If the Owner or Contractor disputes the Architect’s determination or recommendation, either party may submit a Claim as provided in Article 15. § 3.7.5 If, in the course of the Work, the Contractor encounters human remains or recognizes the existence of burial markers, archaeological sites or wetlands not indicated in the Contract Documents, the Contractor shall immediately suspend any operations that would affect them and shall notify the Owner, Construction Manager, and Architect. Upon receipt of such notice, the Owner shall promptly take any action necessary to obtain governmental authorization required to resume the operations. The Contractor shall continue to suspend such operations until otherwise instructed by the Owner but shall continue with all other operations that do not affect those remains or features. Requests for Page 384 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 10 adjustments in the Contract Sum and Contract Time arising from the existence of such remains or features may be made as provided in Article 15. § 3.8 Allowances § 3.8.1 The Contractor shall include in the Contract Sum all allowances stated in the Contract Documents. Items covered by allowances shall be supplied for such amounts and by such persons or entities as the Owner may direct, but the Contractor shall not be required to employ persons or entities to whom the Contractor has reasonable objection. § 3.8.2 Unless otherwise provided in the Contract Documents: .1 allowances shall cover the cost to the Contractor of materials and equipment delivered at the site and all required taxes, less applicable trade discounts; .2 Contractor’s costs for unloading and handling at the site, labor, installation costs, overhead, profit, and other expenses contemplated for stated allowance amounts shall be included in the Contract Sum but not in the allowances; and .3 whenever costs are more than or less than allowances, the Contract Sum shall be adjusted accordingly by Change Order. The amount of the Change Order shall reflect (1) the difference between actual costs and the allowances under Section 3.8.2.1 and (2) changes in Contractor’s costs under Section 3.8.2.2. § 3.8.3 Materials and equipment under an allowance shall be selected by the Owner with reasonable promptness. § 3.9 Superintendent § 3.9.1 The Contractor shall employ a competent superintendent and necessary assistants who shall be in attendance at the Project site during performance of the Work. The superintendent shall represent the Contractor, and communications given to the superintendent shall be as binding as if given to the Contractor. The Superintendent must provide his or her email address and cell phone number to Owner, Construction Manager, and Architect and must be available to be contacted during all business hours, and outside of business hours in the event of an emergency. § 3.9.2 The Contractor, as soon as practicable after award of the Contract, shall notify the Owner and Architect, through the Construction Manager, of the name and qualifications of a proposed superintendent. Within 14 days of receipt of the information, the Construction Manager may notify the Contractor, stating whether the Owner, the Construction Manager, or the Architect (1) has reasonable objection to the proposed superintendent or (2) require additional time for review. Failure of the Construction Manager to provide notice within the 14-day period shall constitute notice of no reasonable objection. § 3.9.3 The Contractor shall not employ a proposed superintendent to whom the Owner, Construction Manager, or Architect has made reasonable and timely objection. The Contractor shall not change the superintendent without the Owner’s consent, which shall not unreasonably be withheld or delayed. § 3.10 Contractor’s Construction and Submittal Schedules § 3.10.1 The Contractor, promptly after being awarded the Contract, shall submit in its native and electronic format, for the Owner’s and Architect’s acceptance, and the Construction Manager’s use in developing the Project schedule, a Contractor’s construction schedule for the Work. The schedule shall contain detail appropriate for the Project, including (1) the date of commencement of the Work, interim schedule milestone dates, and the date of Substantial Completion; (2) an apportionment of the Work by construction activity; and (3) the time required for completion of each portion of the Work. The schedule shall provide for the orderly progression of the Work to completion and shall not exceed time limits current under the Contract Documents. The schedule shall be revised at appropriate intervals as required by the conditions of the Work and Project. The Contractor shall cooperate with the Construction Manager in scheduling and performing the Contractor’s Work to avoid conflict with, and as to cause no delay in, the work or activities of other Contractors, or the construction or operations of the Owner’s own forces or Separate Contractors. § 3.10.2 The Contractor, within ten days of execution of the Contract and thereafter as necessary to maintain a current submittal schedule, shall submit a submittal schedule for the Construction Manager’s and Architect’s approval. The Architect and Construction Manager’s approval shall not be unreasonably delayed or withheld. The submittal schedule shall (1) be coordinated with the Contractor’s construction schedule, and (2) allow the Construction Manager and Architect reasonable time to review submittals. If the Contractor fails to submit a submittal schedule, or fails to provide submittals in accordance with the approved submittal schedule, the Contractor shall not be entitled to any increase in Contract Sum or extension of Contract Time based on the time required for review of submittals. Page 385 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 11 § 3.10.3 The Contractor shall participate with other Contractors, the Construction Manager, and the Owner in reviewing and coordinating all schedules for incorporation into the Project schedule that is prepared by the Construction Manager. The Contractor shall make revisions to the construction schedule and submittal schedule as deemed necessary by the Construction Manager to conform to the Project schedule. § 3.10.4 The Contractor shall perform the Work in general accordance with the most recent schedules submitted to the Owner, Construction Manager, and Architect, and incorporated into the approved Project schedule. § 3.11 Documents and Samples at the Site The Contractor shall make available, at the Project site, the Contract Documents, including the current Construction Schedule, Change Orders, Construction Change Directives, and other Modifications, in good order and marked currently to indicate field changes and selections made during construction, and the approved Shop Drawings, Product Data, Samples, and similar required submittals. These shall be in electronic form or paper copy, available to the Construction Manager, Architect, and Owner, and delivered to the Construction Manager for submittal to the Owner upon completion of the Work as a record of the Work as constructed. § 3.12 Shop Drawings, Product Data, and Samples § 3.12.1 Shop Drawings are drawings, diagrams, schedules, and other data specially prepared for the Work by the Contractor or a Subcontractor, Sub-subcontractor, manufacturer, supplier, or distributor to illustrate some portion of the Work. § 3.12.2 Product Data are illustrations, standard schedules, performance charts, instructions, brochures, diagrams, and other information furnished by the Contractor to illustrate materials or equipment for some portion of the Work. § 3.12.3 Samples are physical examples that illustrate materials, equipment, or workmanship, and establish standards by which the Work will be judged. § 3.12.4 Shop Drawings, Product Data, Samples, and similar submittals are not Contract Documents. Their purpose is to demonstrate how the Contractor proposes to conform to the information given and the design concept expressed in the Contract Documents for those portions of the Work for which the Contract Documents require submittals. Review by the Architect and Construction Manager is subject to the limitations of Sections 4.2.10 through 4.2.12. Informational submittals upon which the Construction Manager and Architect are not expected to take responsive action may be so identified in the Contract Documents. Submittals that are not required by the Contract Documents may be returned by the Construction Manager or Architect without action. § 3.12.5 The Contractor shall review for compliance with the Contract Documents, approve, and submit to the Construction Manager, Shop Drawings, Product Data, Samples, and similar submittals required by the Contract Documents, in accordance with the Project submittal schedule approved by the Construction Manager and Architect or, in the absence of an approved Project submittal schedule, with reasonable promptness and in such sequence as to cause no delay in the Work or in the activities of other Contractors, Separate Contractors, or the Owner’s own forces. The Contractor shall cooperate with the Construction Manager in the coordination of the Contractor’s Shop Drawings, Product Data, Samples, and similar submittals with related documents submitted by other Contractors. The Contractor must provide the Owner, Construction Manager, and Architect with copies of all submittals made to regulatory agencies. § 3.12.6 By submitting Shop Drawings, Product Data, Samples, and similar submittals, the Contractor represents to the Owner, Construction Manager, and Architect, that the Contractor has (1) reviewed and approved them, (2) determined and verified materials, field measurements and field construction criteria related thereto, or will do so, and (3) checked and coordinated the information contained within such submittals with the requirements of the Work and of the Contract Documents. § 3.12.7 The Contractor shall perform no portion of the Work for which the Contract Documents require submittal and review of Shop Drawings, Product Data, Samples, or similar submittals, until the respective submittal has been reviewed and approved by the Architect. The Contractor must correct at its cost, and without any adjustment in Contract Time, any Work the correction of which is required due to the Contractor’s failure to obtain approval of a Page 386 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 12 submittal required to have been obtained prior to proceeding with the Work, including, but not limited to, correction of any conflicts in the Work resulting from such failure. § 3.12.8 The Work shall be in accordance with approved submittals except that the Contractor shall not be relieved of responsibility for deviations from the requirements of the Contract Documents by the Architect’s approval of Shop Drawings, Product Data, Samples, or similar submittals, unless the Contractor has specifically notified the Construction Manager and Architect of such deviation at the time of submittal and (1) the Architect has given written approval to the specific deviation as a minor change in the Work, or (2) a Change Order or Construction Change Directive has been issued authorizing the deviation. The Contractor shall not be relieved of responsibility for errors or omissions in Shop Drawings, Product Data, Samples, or similar submittals, by the Architect’s approval thereof. § 3.12.9 The Contractor shall direct specific attention, in writing or on resubmitted Shop Drawings, Product Data, Samples, or similar submittals, to revisions other than those requested by the Construction Manager and Architect on previous submittals. In the absence of such notice, the Architect’s approval of a resubmission shall not apply to such revisions. § 3.12.10 The Contractor shall not be required to provide professional services that constitute the practice of architecture or engineering unless such services are specifically required by the Contract Documents for a portion of the Work or unless the Contractor needs to provide such services in order to carry out the Contractor’s responsibilities for construction means, methods, techniques, sequences, and procedures. The Contractor shall not be required to provide professional services in violation of applicable law. § 3.12.10.1 If professional design services or certifications by a design professional related to systems, materials, or equipment are specifically required of the Contractor by the Contract Documents, the Owner and the Architect will specify all performance and design criteria that such services must satisfy. The Contractor shall be entitled to rely upon the adequacy and accuracy of the performance and design criteria provided in the Contract Documents. The Contractor shall cause such services or certifications to be provided by an appropriately licensed design professional, whose signature and seal shall appear on all drawings, calculations, specifications, certifications, Shop Drawings, and other submittals prepared by such professional. Shop Drawings, and other submittals related to the Work, designed or certified by such professional, if prepared by others, shall bear such professional’s written approval when submitted to the Architect. The Owner, the Architect, and the Construction Manager shall be entitled to rely upon the adequacy and accuracy of the services, certifications, and approvals performed or provided by such design professionals, provided the Owner and Architect have specified to the Contractor the performance and design criteria that such services must satisfy. Pursuant to this Section 3.12.10, the Architect will review and approve or take other appropriate action on submittals only for the limited purpose of checking for conformance with information given and the design concept expressed in the Contract Documents. The Construction Manager shall review submittals for sequencing, constructability, and coordination impacts on other Contractors. § 3.12.10.2 If the Contract Documents require the Contractor’s design professional to certify that the Work has been performed in accordance with the design criteria, the Contractor shall furnish such certifications to the Construction Manager and Architect at the time and in the form specified by the Architect. § 3.13 Use of Site § 3.13.1 The Contractor shall confine operations at the site to areas permitted by applicable laws, statutes, ordinances, codes, rules and regulations, lawful orders of public authorities, and the Contract Documents and shall not unreasonably encumber the site with materials or equipment. § 3.13.2 The Contractor shall coordinate the Contractor’s operations with, and secure the approval of, the Construction Manager before using any portion of the site. § 3.13.3 Except as may be specifically provided in the Contract Documents, the Contractor shall provide all necessary temporary facilities, including power, water, sanitation, scaffolding, storage, and security. If Owner makes any such facilities available to Contractor, it is without representation or warranty as to their adequacy for Contractor’s use, and Contractor shall indemnify, defend, and hold Owner harmless from and against any claims arising out of Contractor’s use of such facilities. Page 387 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 13 § 3.14 Cutting and Patching § 3.14.1 The Contractor shall be responsible for cutting, fitting, or patching required to complete the Work or to make its parts fit together properly. All areas requiring cutting, fitting, or patching shall be restored to the condition existing prior to the cutting, fitting, or patching, unless otherwise required by the Contract Documents. § 3.14.2 The Contractor shall not damage or endanger a portion of the Work or fully or partially completed construction of the Owner, Separate Contractors, or of other Contractors by cutting, patching, or otherwise altering such construction, or by excavation. The Contractor shall not cut or otherwise alter construction by the Owner, Separate Contractors, or by other Contractors except with written consent of the Construction Manager, Owner, and such other Contractors or Separate Contractors. Consent shall not be unreasonably withheld. The Contractor shall not unreasonably withhold, from the Separate Contractors, other Contractors, or the Owner, its consent to cutting or otherwise altering the Work. § 3.15 Cleaning Up § 3.15.1 The Contractor must keep the Site and adjacent areas free from accumulation of waste materials or rubbish caused by operations under the Contract, and must keep tools, construction equipment, machinery and surplus materials suitably stored when not in use. If the Contractor fails to do so in a manner reasonably satisfactory to the Owner or the Architect within forty-eight (48) hours after notice or as otherwise required by the Contract Documents, the Owner may clean the Site and back charge the Contractor for all costs associated with the cleaning. The Contractor shall keep the premises and surrounding area free from accumulation of waste materials or rubbish caused by operations under the Contract. At completion of the Work, the Contractor shall remove waste materials, rubbish, the Contractor’s tools, construction equipment, machinery and surplus materials from and about the Project. § 3.15.2 If the Contractor fails to clean up as provided in the Contract Documents, the Owner, or Construction Manager with the Owner’s approval, may do so and the Owner shall be entitled to reimbursement from the Contractor. § 3.16 Access to Work The Contractor shall provide the Owner, Construction Manager, and Architect with access to the Work in preparation and progress wherever located. § 3.17 Royalties, Patents and Copyrights The Contractor shall pay all royalties and license fees. The Contractor shall defend suits or claims for infringement of copyrights and patent rights and shall hold the Owner, Construction Manager, and Architect harmless from loss on account thereof, but shall not be responsible for defense or loss when a particular design, process, or product of a particular manufacturer or manufacturers is required by the Contract Documents, or where the copyright violations are contained in Drawings, Specifications, or other documents prepared by the Owner, Architect, or Construction Manager. However, if an infringement of a copyright or patent is discovered by, or made known to, the Contractor, the Contractor shall be responsible for the loss unless the information is promptly furnished to the Architect through the Construction Manager. § 3.18 Indemnification § 3.18.1 To the fullest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless the Owner, Construction Manager, Architect, Construction Manager’s and Architect’s consultants, and agents and employees of any of them from and against claims, damages, losses, and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the Work, provided that such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), but only to the extent caused by the negligent acts or omissions of the Contractor, a Subcontractor, anyone directly or indirectly employed by them, or anyone for whose acts they may be liable, regardless of whether or not such claim, damage, loss, or expense is caused in part by a party indemnified hereunder. Such obligation shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist as to a party or person described in this Section 3.18. § 3.18.2 In claims against any person or entity indemnified under this Section 3.18 by an employee of the Contractor, a Subcontractor, anyone directly or indirectly employed by them, or anyone for whose acts they may be liable, the indemnification obligation under Section 3.18.1 shall not be limited by a limitation on amount or type of damages, compensation, or benefits payable by or for the Contractor or a Subcontractor under workers’ compensation acts, disability benefit acts, or other employee benefit acts. Page 388 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 14 ARTICLE 4 ARCHITECT AND CONSTRUCTION MANAGER § 4.1 General § 4.1.1 The Architect is the person or entity retained by the Owner pursuant to Section 2.3.2 and identified as such in the Agreement. § 4.1.2 The Construction Manager is the person or entity retained by the Owner pursuant to Section 2.3.3 and identified as such in the Agreement. § 4.1.3 Duties, responsibilities, and limitations of authority of the Construction Manager and Architect as set forth in the Contract Documents shall not be restricted, modified, or extended without written consent of the Owner, Construction Manager, Architect, and Contractor. Consent shall not be unreasonably withheld. § 4.2 Administration of the Contract § 4.2.1 The Construction Manager and Architect will provide administration of the Contract as described in the Contract Documents and will be the Owner’s representatives during construction until the date the Architect issues the final Certificate for Payment. The Construction Manager and Architect will have authority to act on behalf of the Owner only to the extent provided in the Contract Documents. § 4.2.2 The Architect will visit the site at intervals appropriate to the stage of construction, or as otherwise agreed with the Owner, to become generally familiar with the progress and quality of the portion of the Work completed, and to determine in general if the Work observed is being performed in a manner indicating that the Work, when fully completed, will be in accordance with the Contract Documents. However, the Architect will not be required to make exhaustive or continuous on-site inspections to check the quality or quantity of the Work. On the basis of the site visits, the Architect will keep the Owner and the Construction Manager reasonably informed about the progress and quality of the portion of the Work completed, and promptly report to the Owner and Construction Manager known deviations from the Contract Documents and defects and deficiencies observed in the Work. § 4.2.3 The Construction Manager shall provide one or more representatives who shall be in attendance at the Project site whenever the Work is being performed. The Construction Manager will determine in general if the Work observed is being performed in accordance with the Contract Documents, will keep the Owner and Architect reasonably informed of the progress of the Work, and will promptly report to the Owner and Architect known deviations from the Contract Documents and the most recent Project schedule, and defects and deficiencies observed in the Work. § 4.2.4 The Construction Manager will schedule and coordinate the activities of the Contractor and other Contractors in accordance with the latest approved Project schedule. § 4.2.5 The Construction Manager, except to the extent required by Section 4.2.4, and Architect will not have control over, charge of, or responsibility for, the construction means, methods, techniques, sequences or procedures, or for the safety precautions and programs in connection with the Work, since these are solely the Contractor’s rights and responsibilities under the Contract Documents, and neither will be responsible for the Contractor’s failure to perform the Work in accordance with the requirements of the Contract Documents. Neither the Construction Manager nor the Architect will have control over or charge of, or be responsible for acts or omissions of, the Contractor, Subcontractors, or their agents or employees, or of any other persons or entities performing portions of the Work. § 4.2.6 Communications. The Owner shall communicate with the Contractor and the Construction Manager’s consultants through the Construction Manager about matters arising out of or relating to the Contract Documents. The Owner and Construction Manager shall include the Architect in all communications that relate to or affect the Architect’s services or professional responsibilities. The Owner shall promptly notify the Architect of the substance of any direct communications between the Owner and the Construction Manager otherwise relating to the Project. Communications by and with the Architect’s consultants shall be through the Architect. Communications by and with Subcontractors and suppliers shall be through the Contractor. Communications by and with other Contractors shall be through the Construction Manager. Communications by and with the Owner’s own forces and Separate Contractors shall be through the Owner. The Contract Documents may specify other communication protocols. § 4.2.7 The Construction Manager and Architect will review and certify all Applications for Payment by the Contractor, in accordance with the provisions of Article 9. Page 389 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 15 § 4.2.8 The Architect and Construction Manager have authority to reject Work that does not conform to the Contract Documents, and will notify each other about the rejection. Whenever the Construction Manager considers it necessary or advisable, the Construction Manager will have authority to require inspection or testing of the Work in accordance with Sections 13.4.2 and 13.4.3, upon written authorization of the Owner, whether or not the Work is fabricated, installed or completed. The foregoing authority of the Construction Manager will be subject to the provisions of Sections 4.2.18 through 4.2.20 inclusive, with respect to interpretations and decisions of the Architect. However, neither the Architect’s nor the Construction Manager’s authority to act under this Section 4.2.8 nor a decision made by either of them in good faith either to exercise or not to exercise such authority shall give rise to a duty or responsibility of the Architect or the Construction Manager to the Contractor, Subcontractors, suppliers, their agents or employees, or other persons performing any of the Work. § 4.2.9 Utilizing the submittal schedule provided by the Contractor, the Construction Manager shall prepare, and revise as necessary, a Project submittal schedule incorporating information from other Contractors, the Owner, Owner’s consultants, Owner’s Separate Contractors and vendors, governmental agencies, and participants in the Project under the management of the Construction Manager. The Project submittal schedule and any revisions shall be submitted to the Architect for approval. § 4.2.10 The Construction Manager will receive and promptly review for conformance with the submittal requirements of the Contract Documents, all submittals from the Contractor such as Shop Drawings, Product Data, and Samples. Where there are other Contractors, the Construction Manager will also check and coordinate the information contained within each submittal received from the Contractor and other Contractors, and transmit to the Architect those recommended for approval. By submitting Shop Drawings, Product Data, Samples, and similar submittals, the Construction Manager represents to the Owner and Architect that the Construction Manager has reviewed and recommended them for approval. The Construction Manager’s actions will be taken in accordance with the Project submittal schedule approved by the Architect or, in the absence of an approved Project submittal schedule, with reasonable promptness while allowing sufficient time to permit adequate review by the Architect. § 4.2.11 The Architect will review and approve, or take other appropriate action upon, the Contractor’s submittals such as Shop Drawings, Product Data, and Samples, but only for the limited purpose of checking for conformance with information given and the design concept expressed in the Contract Documents. The Architect’s action will be taken in accordance with the submittal schedule approved by the Architect or, in the absence of an approved submittal schedule, with reasonable promptness while allowing sufficient time in the Architect’s professional judgment to permit adequate review. Upon the Architect’s completed review, the Architect shall transmit its submittal review to the Construction Manager. § 4.2.12 Review of the Contractor’s submittals by the Construction Manager and Architect is not conducted for the purpose of determining the accuracy and completeness of other details such as dimensions and quantities, or for substantiating instructions for installation or performance of equipment or systems, all of which remain the responsibility of the Contractor as required by the Contract Documents. The Construction Manager and Architect’s review of the Contractor’s submittals shall not relieve the Contractor of the obligations under Sections 3.3, 3.5, and 3.12. The Construction Manager and Architect’s review shall not constitute approval of safety precautions or of any construction means, methods, techniques, sequences, or procedures. The Architect’s approval of a specific item shall not indicate approval of an assembly of which the item is a component. § 4.2.13 The Construction Manager will prepare Change Orders and Construction Change Directives. § 4.2.14 The Construction Manager and the Architect will take appropriate action on Change Orders or Construction Change Directives in accordance with Article 7, and the Architect will have authority to order minor changes in the Work as provided in Section 7.4. The Architect, in consultation with the Construction Manager, will investigate and make determinations and recommendations regarding concealed and unknown conditions as provided in Section 3.7.4. § 4.2.15 Utilizing the documents provided by the Contractor, the Construction Manager will maintain at the site for the Owner one copy of all Contract Documents, approved Shop Drawings, Product Data, Samples, and similar required submittals, in good order and marked currently to record all changes and selections made during construction. These Page 390 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 16 will be available to the Architect and the Contractor, and will be delivered to the Owner upon completion of the Project. § 4.2.16 The Construction Manager will assist the Architect in conducting inspections to determine the date or dates of Substantial Completion and the date of final completion; issue Certificates of Substantial Completion in conjunction with the Architect pursuant to Section 9.8; and receive and forward to the Owner written warranties and related documents required by the Contract and assembled by the Contractor pursuant to Section 9.10. The Construction Manager will forward to the Architect a final Application and Certificate for Payment or final Project Application and Project Certificate for Payment upon the Contractor’s compliance with the requirements of the Contract Documents. § 4.2.17 If the Owner and Architect agree, the Architect will provide one or more Project representatives to assist in carrying out the Architect’s responsibilities at the site. The Owner shall notify the Construction Manager of any change in the duties, responsibilities and limitations of authority of the Project representatives. § 4.2.18 The Architect will interpret and decide matters concerning performance under, and requirements of, the Contract Documents on written request of the Construction Manager, Owner, or Contractor through the Construction Manager. The Architect’s response to such requests will be made in writing within any time limits agreed upon or otherwise with reasonable promptness. § 4.2.19 Interpretations and decisions of the Architect will be consistent with the intent of, and reasonably inferable from, the Contract Documents and will be in writing or in the form of drawings. When making such interpretations and decisions, the Architect will endeavor to secure faithful performance by both Owner and Contractor, will not show partiality to either, and will not be liable for results of interpretations or decisions so rendered in good faith. § 4.2.20 The Architect’s decisions on matters relating to aesthetic effect will be final if consistent with the intent expressed in the Contract Documents. § 4.2.21 The Construction Manager will receive and review requests for information from the Contractor, and forward each request for information to the Architect, with the Construction Manager’s recommendation. The Architect will review and respond in writing, through the Construction Manager, to requests for information about the Contract Documents. The Construction Manager’s recommendation and the Architect’s response to each request will be made in writing within any time limits agreed upon or otherwise with reasonable promptness. If appropriate, the Architect will prepare and issue supplemental Drawings and Specifications in response to the requests for information. ARTICLE 5 SUBCONTRACTORS § 5.1 Definitions § 5.1.1 A Subcontractor is a person or entity who has a direct contract with the Contractor to perform a portion of the Work at the site. The term "Subcontractor" is referred to throughout the Contract Documents as if singular in number and means a Subcontractor or an authorized representative of the Subcontractor. The term "Subcontractor" does not include other Contractors or Separate Contractors or the subcontractors of other Contractors or Separate Contractors. § 5.1.2 A Sub-subcontractor is a person or entity who has a direct or indirect contract with a Subcontractor to perform a portion of the Work at the site. The term "Sub-subcontractor" is referred to throughout the Contract Documents as if singular in number and means a Sub-subcontractor or an authorized representative of the Sub-subcontractor. § 5.2 Award of Subcontracts and Other Contracts for Portions of the Work § 5.2.1 After award of the Contract, if the Contractor seeks to substitute a Subcontractor, the Contractor shall notify the Construction Manager, for review by the Owner, Construction Manager and Architect, of the substitute(s) proposed for each principal portion of the Work, including those who are to furnish materials or equipment fabricated to a special design. Within 14 days of receipt of the information, the Construction Manager may notify the Contractor whether the Owner, the Construction Manager or the Architect (1) has reasonable objection to any such proposed substitute(s) or, (2) requires additional time for review. Failure of the Construction Manager to provide notice within the 14-day period shall constitute notice of no reasonable objection. § 5.2.2 The Contractor shall not contract with a substitute Subcontractor to whom the Owner, Construction Manager or Architect has made reasonable and timely objection. Page 391 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 17 § 5.2.3 If the Owner, Construction Manager or Architect has reasonable objection to a person or entity proposed by the Contractor, the Contractor shall propose another to whom the Owner, Construction Manager or Architect has no reasonable objection. If the proposed but rejected Subcontractor was reasonably capable of performing the Work, the Contract Sum and Contract Time shall be increased or decreased by the difference, if any, occasioned by such change, and an appropriate Change Order shall be issued before commencement of the substitute Subcontractor’s Work. However, no increase in the Contract Sum or Contract Time shall be allowed for such change unless the Contractor has acted promptly and responsively in submitting names as required. § 5.2.4 The Contractor shall not substitute a Subcontractor, person, or entity for one previously selected if the Owner, Construction Manager or Architect makes reasonable objection to such substitution. § 5.3 Subcontractual Relations By appropriate written agreement, the Contractor shall require each Subcontractor, to the extent of the Work to be performed by the Subcontractor, to be bound to the Contractor by terms of the Contract Documents, and to assume toward the Contractor all the obligations and responsibilities, including the responsibility for safety of the Subcontractor’s Work, that the Contractor, by these Contract Documents, assumes toward the Owner, Construction Manager and Architect. Each subcontract agreement shall preserve and protect the rights of the Owner, Construction Manager and Architect under the Contract Documents with respect to the Work to be performed by the Subcontractor so that subcontracting thereof will not prejudice such rights, and shall allow to the Subcontractor, unless specifically provided otherwise in the subcontract agreement, the benefit of all rights, remedies, and redress against the Contractor that the Contractor, by the Contract Documents, has against the Owner. Where appropriate, the Contractor shall require each Subcontractor to enter into similar agreements with Sub-subcontractors. The Contractor shall make available to each proposed Subcontractor, prior to the execution of the subcontract agreement, copies of the Contract Documents to which the Subcontractor will be bound, and, upon written request of the Subcontractor, identify to the Subcontractor terms and conditions of the proposed subcontract agreement that may be at variance with the Contract Documents. Subcontractors will similarly make copies of applicable portions of such documents available to their respective proposed Sub-subcontractors. § 5.4 Contingent Assignment of Subcontracts § 5.4.1 Each subcontract agreement for a portion of the Work is assigned by the Contractor to the Owner, provided that .1 assignment is effective only after termination of the Contract by the Owner for cause pursuant to Section 14.2 and only for those subcontract agreements that the Owner accepts by notifying the Subcontractor and Contractor; and .2 assignment is subject to the prior rights of the surety, if any, obligated under bond relating to the Contract. When the Owner accepts the assignment of a subcontract agreement, the Owner assumes the Contractor’s rights and obligations under the subcontract. § 5.4.2 Upon such assignment, if the Work has been suspended for more than 30 days, the Subcontractor’s compensation shall be equitably adjusted for increases in cost resulting from the suspension. § 5.4.3 Upon assignment to the Owner under this Section 5.4, the Owner may further assign the subcontract to a successor Contractor or other entity. If the Owner assigns the subcontract to a successor Contractor or other entity, the Owner shall nevertheless remain legally responsible for all of the successor Contractor’s obligations under the subcontract. ARTICLE 6 CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS § 6.1 Owner’s Right to Perform Construction with Own Forces and to Award Other Contracts § 6.1.1 The Owner reserves the right to perform construction or operations related to the Project with the Owner’s own forces, and with Separate Contractors retained under Conditions of the Contract substantially similar to those of this Contract, including those provisions of the Conditions of the Contract related to insurance and waiver of subrogation. § 6.1.2 When the Owner performs construction or operations with the Owner’s own forces or Separate Contractors, the Owner shall provide for coordination of such forces and Separate Contractors with the Work of the Contractor, who shall cooperate with them. Page 392 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 18 § 6.1.3 Unless otherwise provided in the Contract Documents, when the Owner performs construction or operations related to the Project with the Owner’s own forces or with Separate Contractors, the Owner or its Separate Contractors shall have the same obligations and rights that the Contractor has under the Conditions of the Contract, including, without excluding others, those stated in Article 3, this Article 6, and Articles 10, 11, and 12. § 6.2 Mutual Responsibility § 6.2.1 The Contractor shall afford the Owner’s own forces, Separate Contractors, Construction Manager and other Contractors reasonable opportunity for introduction and storage of their materials and equipment and performance of their activities, and shall connect and coordinate the Contractor’s construction and operations with theirs as required by the Contract Documents. § 6.2.2 If part of the Contractor’s Work depends for proper execution or results upon construction or operations by the Owner’s own forces, Separate Contractors or other Contractors, the Contractor shall, prior to proceeding with that portion of the Work, promptly notify the Construction Manager and Architect of apparent discrepancies or defects in the construction or operations by the Owner or Separate Contractor or other Contractors that would render it unsuitable for proper execution and results of the Contractor’s Work. Failure of the Contractor to notify the Construction Manager and the Architect of apparent discrepancies or defects prior to proceeding with the Work shall constitute an acknowledgment that the Owner’s or Separate Contractor’s or other Contractors’ completed or partially completed construction is fit and proper to receive the Contractor’s Work. The Contractor shall not be responsible for discrepancies or defects in the construction or operations by the Owner or Separate Contractors or other Contractors that are not apparent. § 6.2.3 The Contractor shall reimburse the Owner for costs the Owner incurs, including costs that are payable to a Separate Contractors or to other Contractors, because of the Contractor’s delays, improperly timed activities or defective construction. The Owner shall be responsible to the Contractor for costs the Contractor incurs because of delays, improperly timed activities, damage to the Work or defective construction by the Owner’s own forces, Separate Contractors, or other Contractors. § 6.2.4 The Contractor shall promptly remedy damage that the Contractor wrongfully causes to completed or partially completed construction, or to property of the Owner, Separate Contractors, or other Contractors as provided in Section 10.2.5. § 6.2.5 The Owner, Separate Contractors, and other Contractors shall have the same responsibilities for cutting and patching as are described for the Contractor in Section 3.14. § 6.3 Owner’s Right to Clean Up If a dispute arises among the Contractor, Separate Contractors, other Contractors, and the Owner as to the responsibility under their respective contracts for maintaining the premises and surrounding area free from waste materials and rubbish, the Owner may clean up and the Construction Manager, with notice to the Architect, will allocate the cost among those responsible. ARTICLE 7 CHANGES IN THE WORK § 7.1 General § 7.1.1 Changes in the Work may be accomplished after execution of the Contract, and without invalidating the Contract, by Change Order, Construction Change Directive or order for a minor change in the Work, subject to the limitations stated in this Article 7 and elsewhere in the Contract Documents. § 7.1.2 A Change Order shall be based upon agreement among the Owner, Construction Manager, Architect and Contractor. A Construction Change Directive requires agreement by the Owner, Construction Manager and Architect and may or may not be agreed to by the Contractor. An order for a minor change in the Work may be issued by the Architect alone. § 7.1.3 Changes in the Work shall be performed under applicable provisions of the Contract Documents. The Contractor shall proceed promptly with changes in the Work, unless otherwise provided in the Change Order, Construction Change Directive, or order for a minor change in the Work. Page 393 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 19 § 7.2 Change Orders and Change Proposals § 7.2.1 A Change Order is a written instrument prepared by the Construction Manager and signed by the Owner, Construction Manager, Architect, and Contractor, stating their agreement upon all of the following: .1 The change in the Work; .2 The amount of the adjustment, if any, in the Contract Sum; and .3 The extent of the adjustment, if any, in the Contract Time. § 7.2.2 The Contractor must submit Change Proposals covering a contemplated Change Order within ten (10) days after request of the Owner, or the Architect or within ten (10) days of the event giving rise to the Contractor’s claim for a change in the Contract Sum or Contract Time. No increase in the Contract Sum or extension of the Contract Time will be allowed the Contractor for the cost or time involved in making Change Proposals. Change Proposals will define or confirm in detail the Work which is proposed to be added, deleted, or changed and must include any adjustment which the Contractor believes to be necessary in (i) the Contract Sum, or (ii) the Contract Time. Any proposed adjustment must include detailed documentation including, but not limited to: cost, properly itemized and supported by sufficient substantiating data to permit evaluation including cost of labor, materials, supplies and equipment, rental cost of machinery and equipment, additional bond cost, plus a fixed fee for profit and overhead (which includes office overhead and Site-specific overhead and general conditions) of ten percent (10%) if the Work is performed by the Contractor, or five percent (5%) if the Work is performed by a Subcontractor or Sub-subcontractor. The Subcontractor’s or Sub-subcontractor’s overhead and profit in turn must not exceed a total aggregate of ten percent (10%). Change Proposals will be binding upon the Contractor and may be accepted or rejected by the Owner in its discretion. The Owner may, at its option, instruct the Contractor to proceed with the Work involved in the Change Proposal in accordance with this Section 7.2.2 without accepting the Change Proposal in its entirety. § 7.2.3 If the Owner determines that a Change Proposal is appropriate, the Architect will prepare and submit a request for a Change Order or Contract Amendment providing for an appropriate adjustment in the Contract Sum or Contract Time, or both, for further action by the Owner. No such change is effective until the Owner and Architect sign the Change Order. § 7.3 Construction Change Directives § 7.3.1 A Construction Change Directive is a written order prepared by the Construction Manager and signed by the Owner, Construction Manager and Architect, directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum or Contract Time, or both. The Owner may by Construction Change Directive, without invalidating the Contract, order changes in the Work within the general scope of the Contract consisting of additions, deletions, or other revisions, the Contract Sum and Contract Time being adjusted accordingly. § 7.3.2 A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Order. § 7.3.3 If the Construction Change Directive provides for an adjustment to the Contract Sum, the adjustment shall be based on one of the following methods: .1 Mutual acceptance of a lump sum properly itemized and supported by sufficient substantiating data to permit evaluation; .2 Unit prices stated in the Contract Documents or subsequently agreed upon; .3 Cost to be determined in a manner agreed upon by the parties and a mutually acceptable fixed or percentage fee; or .4 As provided in Section 7.3.4. § 7.3.4 If the Contractor does not respond promptly or disagrees with the method for adjustment in the Contract Sum, the Construction Manager and Owner shall determine the adjustment on the basis of reasonable expenditures and savings of those performing the Work attributable to the change, including, in case of an increase in the Contract Sum, an amount for overhead and profit as set forth in the Agreement, or if no such amount is set forth in the Agreement, a reasonable amount. In such case, and also under Section 7.3.3.3, the Contractor shall keep and present, in such form as the Construction Manager may prescribe, an itemized accounting together with appropriate supporting data. Unless otherwise provided in the Contract Documents, costs for the purposes of this Section 7.3.4 shall be limited to the following: Page 394 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 20 .1 Costs of labor, including applicable payroll taxes, fringe benefits required by agreement or custom, workers’ compensation insurance, and other employee costs approved by the Construction Manager and Architect; .2 Costs of materials, supplies, and equipment, including cost of transportation, whether incorporated or consumed; .3 Rental costs of machinery and equipment, exclusive of hand tools, whether rented from the Contractor or others; .4 Costs of premiums for all bonds and insurance, permit fees, and sales, use, or similar taxes, directly related to the change; and .5 Costs of supervision and field office personnel directly attributable to the change. § 7.3.5 If the Contractor disagrees with the adjustment in the Contract Time, the Contractor may make a Claim in accordance with applicable provisions of Article 15. § 7.3.6 Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the Work involved and advise the Construction Manager of the Contractor’s agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in the Contract Sum or Contract Time. § 7.3.7 A Construction Change Directive signed by the Contractor indicates the Contractor’s agreement therewith, including adjustment in Contract Sum and Contract Time or the method for determining them. Such agreement shall be effective immediately and shall be recorded as a Change Order. § 7.3.8 The amount of credit to be allowed by the Contractor to the Owner for a deletion or change that results in a net decrease in the Contract Sum shall be actual net cost as confirmed by the Construction Manager and Architect. When both additions and credits covering related Work or substitutions are involved in a change, the allowance for overhead and profit shall be figured on the basis of net increase, if any, with respect to that change. § 7.3.9 Pending final determination of the total cost of a Construction Change Directive to the Owner, the Contractor may request payment for Work completed under the Construction Change Directive in Applications for Payment. The Construction Manager and Architect will make an interim determination for purposes of monthly certification for payment for those costs and certify for payment the amount that the Construction Manager and Architect determine to be reasonably justified. The interim determination of cost shall adjust the Contract Sum on the same basis as a Change Order, subject to the right of either party to disagree and assert a Claim in accordance with Article 15. § 7.3.10 When the Owner and Contractor agree with a determination made by the Construction Manager and Architect concerning the adjustments in the Contract Sum and Contract Time, or otherwise reach agreement upon the adjustments, such agreement shall be effective immediately and the Construction Manager shall prepare a Change Order. Change Orders may be issued for all or any part of a Construction Change Directive. § 7.4 Minor Changes in the Work The Architect may order minor changes in the Work that are consistent with the intent of the Contract Documents and do not involve an adjustment in the Contract Sum or an extension of the Contract Time. The Architect’s order for minor changes shall be in writing. If the Contractor believes that the proposed minor change in the Work will affect the Contract Sum or Contract Time, the Contractor shall notify the Construction Manager and shall not proceed to implement the change in the Work. If the Contractor performs the Work set forth in the Architect’s order for a minor change without prior notice to the Construction Manager that such change will affect the Contract Sum or Contract Time, the Contractor waives any adjustment to the Contract Sum or extension of the Contract Time. ARTICLE 8 TIME § 8.1 Definitions § 8.1.1 Unless otherwise provided, Contract Time is the period of time, including authorized adjustments, allotted in the Contract Documents for Substantial Completion of the Work. § 8.1.2 The date of commencement of the Work is the date established in the Agreement. § 8.1.3 The date of Substantial Completion is the date certified by the Architect in accordance with Section 9.8. Page 395 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 21 § 8.1.4 The term "day" as used in the Contract Documents shall mean calendar day unless otherwise specifically defined. § 8.2 Progress and Completion § 8.2.1 Time limits stated in the Contract Documents are of the essence of the Contract. By executing the Agreement, the Contractor confirms that the Contract Time is a reasonable period for performing the Work. § 8.2.2 The Contractor shall not knowingly, except by agreement or instruction of the Owner in writing, commence the Work prior to the effective date of insurance required to be furnished by the Contractor and Owner. § 8.2.3 The Contractor shall proceed expeditiously with adequate forces and shall achieve Substantial Completion within the Contract Time. § 8.2.4 The Contractor must conform to the most recently accepted Progress Schedule. The Contractor must complete the indicated Work or achieve the required percentage of completion, as applicable, within any interim completion dates established in the most recently approved Progress Schedule. § 8.2.5 The Contractor must maintain at the Site, available to the Owner and the Architect for their reference during the progress of the Work, a copy of the accepted Progress Schedule and any accepted revisions thereto. The Contractor must keep current records of and mark on a copy of the accepted Progress Schedule the actual commencement date, progress and completion date of each scheduled activity indicated on the Progress Schedule. § 8.2.6 The Contractor represents that its bid includes all costs, overhead and profit which may be incurred throughout the Contract Time and the period between Substantial and Final Completion. Accordingly, the Contractor may not make any claim for delay damages based in whole or in part on the premise that the Contractor would have completed the Work prior to the expiration of the Contract Time but for any claimed delay. § 8.2.7 If the Contractor’s progress is not maintained in accordance with the accepted Progress Schedule, or the Owner determines that the Contractor is not diligently proceeding with the Work or has evidence reasonably indicating that the Contractor will not be able to conform to the most recently accepted Progress Schedule, the Contractor must, promptly and at no additional cost to the Owner, take all measures necessary to accelerate its progress to overcome the delay and ensure that there will be no further delay in the progress of the Work and notify the Owner. § 8.2.8 The Owner reserves the right to issue a written directive to accelerate the Work that may be subject to an appropriate adjustment, if any, in the Contract Sum. If the Owner requires an acceleration of the Project Schedule and no adjustment is made in the Contract Sum, or if the Contractor disagrees with any adjustment made, the Contractor must file a claim as provided in Article 15 or the same will be deemed to be conclusively waived. § 8.3 Delays and Extensions of Time § 8.3.1 If the Contractor is delayed at any time in the commencement or progress of the Work by (1) an act or neglect of the Owner, Architect, Construction Manager, or an employee of any of them, or of the Owner’s own forces, Separate Contractors, or other Contractors; (2) by changes ordered in the Work; (3) by labor disputes, fire, unusual delay in deliveries, unavoidable casualties, adverse weather conditions documented in accordance with Section 15.1.6.2, or other causes beyond the Contractor’s control; (4) by delay authorized by the Owner pending mediation and binding dispute resolution; or (5) by other causes that the Contractor asserts and the Architect, based on the recommendation of the Construction Manager, determines justify delay, then the Contract Time shall be extended for such reasonable time as the Architect may determine. § 8.3.2 Claims relating to time shall be made in accordance with applicable provisions of Article 15. § 8.3.3 This Section 8.3 does not preclude recovery of damages for delay by either party under other provisions of the Contract Documents. Page 396 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 22 ARTICLE 9 PAYMENTS AND COMPLETION § 9.1 Contract Sum § 9.1.1 The Contract Sum is stated in the Agreement and, including authorized adjustments, is the total amount payable by the Owner to the Contractor for performance of the Work under the Contract Documents. § 9.1.2 If unit prices are stated in the Contract Documents or subsequently agreed upon, and if quantities originally contemplated are materially changed so that application of such unit prices to the actual quantities causes substantial inequity to the Owner or Contractor, the applicable unit prices shall be equitably adjusted. § 9.2 Schedule of Values Where the Contract is based on a stipulated sum or Guaranteed Maximum Price, the Contractor shall submit a schedule of values to the Construction Manager, before the first Application for Payment, allocating the entire Contract Sum to the various portions of the Work. The schedule of values shall be prepared in the form, and supported by the data to substantiate its accuracy, required by the Construction Manager and the Architect. This schedule, unless objected to by the Construction Manager or Architect, shall be used as a basis for reviewing the Contractor’s Applications for Payment. The Construction Manager shall forward to the Architect the Contractor’s schedule of values. Any changes to the schedule of values shall be submitted to the Construction Manager and supported by such data to substantiate its accuracy as the Construction Manager and the Architect may require, and unless objected to by the Construction Manager or the Architect, shall be used as a basis for reviewing the Contractor’s subsequent Applications for Payment. § 9.3 Applications for Payment § 9.3.1 At least fifteen days before the date established for each progress payment, the Contractor shall submit to the Construction Manager an itemized Application for Payment prepared in accordance with the schedule of values, if required under Section 9.2, for completed portions of the Work. The application shall be notarized, if required, and supported by all data substantiating the Contractor’s right to payment that the Owner, Construction Manager or Architect require, such as copies of requisitions, and releases of waivers of lien from Subcontractors and suppliers, and shall reflect retainage if provided for in the Contract Documents. § 9.3.1.1 As provided in Section 7.3.9, such applications may include requests for payment on account of changes in the Work that have been properly authorized by Construction Change Directives, or by interim determinations of the Construction Manager and Architect, but not yet included in Change Orders. § 9.3.1.2 Applications for Payment shall not include requests for payment for portions of the Work for which the Contractor does not intend to pay a Subcontractor or supplier, unless such Work has been performed by others whom the Contractor intends to pay. As required by Minnesota Statutes, Section 471.425, subd. 4a, the Contractor must pay all Subcontractors, less any retainage, within ten (10) calendar days of the Contractor’s receipt of payment from the Owner for undisputed services provided by the Subcontractor(s) and must pay interest at the rate of one and one-half percent per month or any part of a month to the Subcontractor(s) on any undisputed amount not paid on time to the Subcontractor(s). § 9.3.2 Unless otherwise provided in the Contract Documents, payments shall be made on account of materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work. If approved in advance by the Owner, payment may similarly be made for materials and equipment suitably stored off the site at a location agreed upon in writing. Payment for materials and equipment stored on or off the site shall be conditioned upon compliance by the Contractor with procedures satisfactory to the Owner to establish the Owner’s title to such materials and equipment or otherwise protect the Owner’s interest, and shall include the costs of applicable insurance, storage, and transportation to the site, for such materials and equipment stored off the site. § 9.3.3 The Contractor warrants that title to all Work covered by an Application for Payment will pass to the Owner no later than the time of payment. The Contractor further warrants that upon submittal of an Application for Payment all Work for which Certificates for Payment have been previously issued and payments received from the Owner shall, to the best of the Contractor’s knowledge, information, and belief, be free and clear of liens, claims, security interests, or encumbrances, in favor of the Contractor, Subcontractors, suppliers, or other persons or entities that provided labor, materials and equipment relating to the Work. Page 397 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 23 § 9.3.4 The Contractor must submit to the Architect itemized Applications for Payment for Work completed on a monthly basis in accordance with a schedule approved by the Owner. Each Application for Payment must be consistent with the approved Schedule of Values. In order to expedite the review and approval of Applications for Payment, the Contractor may submit to and review with the Architect and Owner a draft Application for Payment at a progress meeting prior to submitting a formal Application for Payment. § 9.3.5 The form of Application for Payment must be AIA Document G702, Application and Certificate for Payment, supported by AIA Document G703, Continuation Sheet (latest edition), or such other form as may be prescribed by the Owner. The Application must be notarized and supported by sufficient data to demonstrate the Contractor’s right to payment and compliance with the payment provisions of the Contract to the satisfaction of the Owner and Architect, such as copies of requisitions from Subcontractors and material suppliers, partial lien waivers, releases and other documents. Each Application for Payment must reflect approved Contract Modifications and the Contract retainage provided for in the Contract Documents. § 9.3.6 Applications for Payment may include materials and equipment delivered and suitably stored at the Site for subsequent incorporation in the Work. The Owner has no obligation or responsibility to pay for materials stored off the Site. If specifically approved in writing in advance by the Owner, an Application for Payment may include materials and equipment stored off the Site at a location agreed upon in writing. Payment for materials and equipment stored on or off the Site is conditioned upon compliance by the Contractor with procedures satisfactory to the Owner to protect the Owner’s interests. Payment for materials and equipment stored off the Site will, in addition, be conditioned upon the Contractor’s provision of applicable insurance, storage and transportation to the Site. § 9.4 Certificates for Payment § 9.4.1 Where there is only one Contractor, the Construction Manager will, within seven days after the Construction Manager’s receipt of the Contractor’s Application for Payment, review the Application, certify the amount the Construction Manager determines is due the Contractor, and forward the Contractor’s Application and Certificate for Payment to the Architect. Within seven days after the Architect receives the Contractor’s Application for Payment from the Construction Manager, the Architect will either (1) issue to the Owner a Certificate for Payment, in the full amount of the Application for Payment, with a copy to the Construction Manager; or (2) issue to the Owner a Certificate for Payment for such amount as the Architect determines is properly due, and notify the Construction Manager and Owner of the Architect’s reasons for withholding certification in part as provided in Section 9.5.1; or (3) withhold certification of the entire Application for Payment, and notify the Construction Manager and Owner of the Architect’s reason for withholding certification in whole as provided in Section 9.5.1. The Construction Manager will promptly forward to the Contractor the Architect’s notice of withholding certification. § 9.4.2 Where there is more than one Contractor performing portions of the Project, the Construction Manager will, within seven days after the Construction Manager receives all of the Contractors’ Applications for Payment: (1) review the Applications and certify the amount the Construction Manager determines is due each of the Contractors; (2) prepare a Summary of Contractors’ Applications for Payment by combining information from each Contractor’s application with information from similar applications for progress payments from the other Contractors; (3) prepare a Project Application and Certificate for Payment; (4) certify the amount the Construction Manager determines is due all Contractors; and (5) forward the Summary of Contractors’ Applications for Payment and Project Application and Certificate for Payment to the Architect. § 9.4.2.1 Within seven days after the Architect receives the Project Application and Project Certificate for Payment and the Summary of Contractors’ Applications for Payment from the Construction Manager, the Architect will either (1) issue to the Owner a Project Certificate for Payment, with a copy to the Construction Manager; or (2) issue to the Owner a Project Certificate for Payment for such amount as the Architect determines is properly due, and notify the Construction Manager and Owner of the Architect’s reasons for withholding certification in part as provided in Section 9.5.1; or (3) withhold certification of the entire Project Application for Payment, and notify the Construction Manager and Owner of the Architect’s reason for withholding certification in whole as provided in Section 9.5.1. The Construction Manager will promptly forward the Architect’s notice of withholding certification to the Contractors. § 9.4.3 The Construction Manager’s certification of an Application for Payment or, in the case of more than one Contractor, a Project Application and Certificate for Payment, shall be based upon the Construction Manager’s evaluation of the Work and the data in the Application or Applications for Payment. The Construction Manager’s certification will constitute a representation that, to the best of the Construction Manager’s knowledge, information, Page 398 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 24 and belief, the Work has progressed to the point indicated, the quality of the Work is in accordance with the Contract Documents, and that the Contractor is, or Contractors are, entitled to payment in the amount certified. § 9.4.4 The Architect’s issuance of a Certificate for Payment or, in the case of more than one Contractor, Project Application and Certificate for Payment, shall be based upon the Architect’s evaluation of the Work, the recommendation of the Construction Manager, and data in the Application for Payment or Project Application for Payment. The Architect’s certification will constitute a representation that, to the best of the Architect’s knowledge, information, and belief, the Work has progressed to the point indicated, the quality of the Work is in accordance with the Contract Documents, and that the Contractor is, or Contractors are, entitled to payment in the amount certified. § 9.4.5 The representations made pursuant to Sections 9.4.3 and 9.4.4 are subject to an evaluation of the Work for conformance with the Contract Documents upon Substantial Completion, to results of subsequent tests and inspections, to correction of minor deviations from the Contract Documents prior to completion, and to specific qualifications expressed by the Construction Manager or Architect. § 9.4.6 The issuance of a Certificate for Payment or a Project Certificate for Payment will not be a representation that the Construction Manager or Architect has (1) made exhaustive or continuous on-site inspections to check the quality or quantity of the Work; (2) reviewed construction means, methods, techniques, sequences, or procedures; (3) reviewed copies of requisitions received from Subcontractors and suppliers and other data requested by the Owner to substantiate the Contractor’s right to payment; or (4) made examination to ascertain how or for what purpose the Contractor has used money previously paid on account of the Contract Sum. § 9.5 Decisions to Withhold Certification § 9.5.1 The Construction Manager or Architect may withhold a Certificate for Payment or Project Certificate for Payment in whole or in part, to the extent reasonably necessary to protect the Owner, if in the Construction Manager’s or Architect’s opinion the representations to the Owner required by Section 9.4.3 and 9.4.4 cannot be made. If the Construction Manager or Architect is unable to certify payment in the amount of the Application, the Construction Manager will notify the Contractor and Owner as provided in Section 9.4.1 and 9.4.2. If the Contractor, Construction Manager and Architect cannot agree on a revised amount, the Architect will promptly issue a Certificate for Payment or a Project Certificate for Payment for the amount for which the Architect is able to make such representations to the Owner. The Construction Manager or Architect may also withhold a Certificate for Payment or, because of subsequently discovered evidence, may nullify the whole or a part of a Certificate for Payment or Project Certificate for Payment previously issued, to such extent as may be necessary in the Construction Manager’s or Architect’s opinion to protect the Owner from loss for which the Contractor is responsible, including loss resulting from the acts and omissions described in Section 3.3.2 because of .1 defective Work not remedied; .2 third party claims filed or reasonable evidence indicating probable filing of such claims, unless security acceptable to the Owner is provided by the Contractor; .3 failure of the Contractor to make payments properly to Subcontractors or suppliers for labor, materials or equipment; .4 reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum; .5 damage to the Owner or a Separate Contractor or other Contractor; .6 reasonable evidence that the Work will not be completed within the Contract Time, and that the unpaid balance would not be adequate to cover actual or liquidated damages for the anticipated delay; or .7 repeated failure to carry out the Work in accordance with the Contract Documents. § 9.5.2 When either party disputes the Architect’s decision regarding a Certificate for Payment under Section 9.5.1, in whole or in part, that party may submit a Claim in accordance with Article 15. § 9.5.3 When the reasons for withholding certification are removed, certification will be made for amounts previously withheld. § 9.5.4 If the Architect or Construction Manager withholds certification for payment under Section 9.5.1, the Owner may, at its sole option, issue joint checks to the Contractor and to any Subcontractor or supplier to whom the Contractor failed to make payment for Work properly performed or material or equipment suitably delivered. If the Owner makes payments by joint check, the Owner shall notify the Architect and the Construction Manager, and both will reflect such payment on the next Certificate for Payment. Page 399 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 25 § 9.6 Progress Payments § 9.6.1 After the Architect has issued a Certificate for Payment or Project Certificate for Payment, the Owner shall make payment in the manner and within the time provided in the Contract Documents, and shall so notify the Construction Manager and Architect. § 9.6.2 The Contractor shall pay each Subcontractor, no later than seven days after receipt of payment from the Owner, the amount to which the Subcontractor is entitled, reflecting percentages actually retained from payments to the Contractor on account of the Subcontractor’s portion of the Work. The Contractor shall, by appropriate agreement with each Subcontractor, require each Subcontractor to make payments to Sub-subcontractors in a similar manner. § 9.6.3 The Construction Manager will, on request, furnish to a Subcontractor, if practicable, information regarding percentages of completion or amounts applied for by the Contractor and action taken thereon by the Owner, Construction Manager and Architect on account of portions of the Work done by such Subcontractor. § 9.6.4 The Owner has the right to request written evidence from the Contractor that the Contractor has properly paid Subcontractors and suppliers amounts paid by the Owner to the Contractor for subcontracted Work. If the Contractor fails to furnish such evidence within seven days, the Owner shall have the right to contact Subcontractors and suppliers to ascertain whether they have been properly paid. Neither the Owner, Construction Manager nor Architect shall have an obligation to pay, or to see to the payment of money to, a Subcontractor or supplier, except as may otherwise be required by law. § 9.6.5 The Contractor’s payments to suppliers shall be treated in a manner similar to that provided in Sections 9.6.2, 9.6.3 and 9.6.4. § 9.6.6 A Certificate for Payment, a progress payment, or partial or entire use or occupancy of the Project by the Owner shall not constitute acceptance of Work not in accordance with the Contract Documents. § 9.6.7 Unless the Contractor provides the Owner with a payment bond in the full penal sum of the Contract Sum, payments received by the Contractor for Work properly performed by Subcontractors or provided by suppliers shall be held by the Contractor for those Subcontractors or suppliers who performed Work or furnished materials, or both, under contract with the Contractor for which payment was made by the Owner. Nothing contained herein shall require money to be placed in a separate account and not commingled with money of the Contractor, create any fiduciary liability or tort liability on the part of the Contractor for breach of trust, or entitle any person or entity to an award of punitive damages against the Contractor for breach of the requirements of this provision. § 9.6.8 Provided the Owner has fulfilled its payment obligations under the Contract Documents, the Contractor shall defend and indemnify the Owner from all loss, liability, damage or expense, including reasonable attorney’s fees and litigation expenses, arising out of any lien claim or other claim for payment by any Subcontractor or supplier of any tier. Upon receipt of notice of a lien claim or other claim for payment, the Owner shall notify the Contractor. If approved by the applicable court, when required, the Contractor may substitute a surety bond for the property against which the lien or other claim for payment has been asserted. § 9.7 Failure of Payment If the Construction Manager and Architect do not issue a Certificate for Payment or a Project Certificate for Payment, through no fault of the Contractor, within fourteen days after the Construction Manager’s receipt of the Contractor’s Application for Payment, or if the Owner does not pay the Contractor within seven days after the date established in the Contract Documents, the amount certified by the Construction Manager and Architect or awarded by binding dispute resolution, then the Contractor may, upon seven additional days’ notice to the Owner, Construction Manager and Architect, stop the Work until payment of the amount owing has been received. The Contract Time shall be extended appropriately and the Contract Sum shall be increased by the amount of the Contractor’s reasonable costs of shutdown, delay and start-up, plus interest as provided for in the Contract Documents. § 9.8 Substantial Completion § 9.8.1 Substantial Completion is the stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so the Owner can occupy or utilize the Work for its intended use. Page 400 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 26 § 9.8.2 When the Contractor considers that the Work, or a portion thereof which the Owner agrees to accept separately, is substantially complete, the Contractor shall notify the Construction Manager, and the Contractor and Construction Manager shall jointly prepare and submit to the Architect a comprehensive list of items to be completed or corrected prior to final payment. Failure to include an item on such list does not alter the responsibility of the Contractor to complete all Work in accordance with the Contract Documents. § 9.8.3 Upon receipt of the list, the Architect, assisted by the Construction Manager, will make an inspection to determine whether the Work or designated portion thereof is substantially complete. If the Architect’s inspection discloses any item, whether or not included on the list, which is not sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work or designated portion thereof for its intended use, the Contractor shall, before issuance of the Certificate of Substantial Completion, complete or correct such item upon notification by the Architect. In such case, the Contractor shall then submit a request for another inspection by the Architect, assisted by the Construction Manager, to determine Substantial Completion. § 9.8.4 When the Architect, assisted by the Construction Manager, determines that the Work of all of the Contractors, or designated portion thereof, is substantially complete, the Construction Manager will prepare, and the Construction Manager and Architect shall execute, a Certificate of Substantial Completion that shall establish the date of Substantial Completion; establish responsibilities of the Owner and Contractor for security, maintenance, heat, utilities, damage to the Work and insurance; and fix the time within which the Contractor shall finish all items on the list accompanying the Certificate. Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Work or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion. § 9.8.5 The Certificate of Substantial Completion shall be submitted to the Owner and Contractor for their written acceptance of responsibilities assigned to them in the Certificate. Upon such acceptance, and consent of surety if any, the Owner shall make payment of retainage applying to the Work or designated portion thereof. Such payment shall be adjusted for Work that is incomplete or not in accordance with the requirements of the Contract Documents. § 9.8.6 Retainage after Substantial Completion, Minn. Stat. § 15.72, subd. 2—Subject to the following, all retainage will be released to Construction Manager no later than sixty (60) days after Substantial Completion. "Substantial Completion" shall be determined by the Architect consistent with the definition in Minnesota Statutes, Section 541.051, subd. 1(a). After Substantial Completion, Owner may withhold: (1) two hundred and fifty percent (250%) of the estimated cost to correct or complete Work known at the time of Substantial Completion; and (2) one percent (1%) of the value of the contract or $500.00, whichever is greater, pending completion and submission of all final paperwork by Construction Manager. If Owner withholds payment under this paragraph, it will provide a written statement to Construction Manager detailing the amount and basis of the withholding. Owner will pay any amounts withheld under clause (1) within sixty (60) days after completion or correction of the Work, as determined by Architect. Owner will pay any amounts withheld under clause (2) after submission of all final paperwork, as determined by Owner. § 9.9 Partial Occupancy or Use § 9.9.1 The Owner may occupy or use any completed or partially completed portion of the Work at any stage when such portion is designated by separate agreement with the Contractor, provided such occupancy or use is consented to by the insurer and authorized by public authorities having jurisdiction over the Project. Such partial occupancy or use may commence whether or not the portion is substantially complete, provided the Owner and Contractor have accepted in writing the responsibilities assigned to each of them for payments, retainage if any, security, maintenance, heat, utilities, damage to the Work and insurance, and have agreed in writing concerning the period for correction of the Work and commencement of warranties required by the Contract Documents. When the Contractor considers a portion substantially complete, the Contractor and Construction Manager shall jointly prepare and submit a list to the Architect as provided under Section 9.8.2. Consent of the Contractor to partial occupancy or use shall not be unreasonably withheld. The stage of the progress of the Work shall be determined by written agreement between the Owner and Contractor or, if no agreement is reached, by decision of the Architect after consultation with the Construction Manager. Page 401 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 27 § 9.9.2 Immediately prior to such partial occupancy or use, the Owner, Construction Manager, Contractor, and Architect shall jointly inspect the area to be occupied or portion of the Work to be used in order to determine and record the condition of the Work. § 9.9.3 Unless otherwise agreed upon, partial occupancy or use of a portion or portions of the Work shall not constitute acceptance of Work not complying with the requirements of the Contract Documents. § 9.10 Final Completion and Final Payment § 9.10.1 Upon completion of the Work, the Contractor shall forward to the Construction Manager a notice that the Work is ready for final inspection and acceptance, and shall also forward to the Construction Manager a final Contractor’s Application for Payment. Upon receipt, the Construction Manager shall perform an inspection to confirm the completion of Work of the Contractor. The Construction Manager shall make recommendations to the Architect when the Work of all of the Contractors is ready for final inspection, and shall then forward the Contractors’ notices and Application for Payment or Project Application for Payment, to the Architect, who will promptly make such inspection. When the Architect finds the Work acceptable under the Contract Documents and the Contract fully performed, the Construction Manager and Architect will promptly issue a final Certificate for Payment or Project Certificate for Payment stating that to the best of their knowledge, information and belief, and on the basis of their on-site visits and inspections, the Work has been completed in accordance with the Contract Documents and that the entire balance found to be due the Contractor and noted in the final Certificate is due and payable. The Construction Manager’s and Architect’s final Certificate for Payment or Project Certificate for Payment will constitute a further representation that conditions listed in Section 9.10.2 as precedent to the Contractor’s being entitled to final payment have been fulfilled. § 9.10.2 Neither final payment nor any remaining retained percentage shall become due until the Contractor submits to the Architect through the Construction Manager (1) an affidavit that payrolls, bills for materials and equipment, and other indebtedness connected with the Work for which the Owner or the Owner’s property might be responsible or encumbered (less amounts withheld by Owner) have been paid or otherwise satisfied, (2) a certificate evidencing that insurance required by the Contract Documents to remain in force after final payment is currently in effect, (3) a written statement that the Contractor knows of no reason that the insurance will not be renewable to cover the period required by the Contract Documents, (4) consent of surety, if any, to final payment (5) documentation of any special warranties, such as manufacturers’ warranties or specific Subcontractor warranties, and (6), if required by the Owner, other data establishing payment or satisfaction of obligations, such as receipts and releases and waivers of liens, claims, security interests, or encumbrances arising out of the Contract, to the extent and in such form as may be designated by the Owner. If a Subcontractor refuses to furnish a release or waiver required by the Owner, the Contractor may furnish a bond satisfactory to the Owner to indemnify the Owner against such lien, claim, security interest, or encumbrance. If a lien, claim, security interest, or encumbrance remains unsatisfied after payments are made, the Contractor shall refund to the Owner all money that the Owner may be compelled to pay in discharging the lien, claim, security interest, or encumbrance, including all costs and reasonable attorneys’ fees. § 9.10.3 If, after Substantial Completion of the Work, final completion thereof is materially delayed through no fault of the Contractor or by issuance of Change Orders affecting final completion, and the Construction Manager and Architect so confirm, the Owner shall, upon application by the Contractor and certification by the Construction Manager and Architect, and without terminating the Contract, make payment of the balance due for that portion of the Work fully completed, corrected, and accepted. If the remaining balance for Work not fully completed or corrected is less than retainage stipulated in the Contract Documents, and if bonds have been furnished, the written consent of the surety to payment of the balance due for that portion of the Work fully completed and accepted shall be submitted by the Contractor to the Architect through the Construction Manager prior to certification of such payment. Such payment shall be made under terms and conditions governing final payment, except that it shall not constitute a waiver of Claims. Notwithstanding the foregoing, the Owner may at its option retain the lesser of a minimum of three times the value of the incomplete or uncorrected parts of the Work, or the maximum amount allowed by law, as estimated by the Construction Manager, provided the remaining work is minor and cannot be completed or corrected due to weather, unsuitable conditions for testing or other circumstances beyond the Contractor’s control, as agreed upon by the Architect and Construction Manager. § 9.10.4 The making of final payment shall constitute a waiver of Claims by the Owner except those arising from .1 liens, Claims, security interests, or encumbrances arising out of the Contract and unsettled; .2 failure of the Work to comply with the requirements of the Contract Documents; Page 402 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 28 .3 terms of special warranties required by the Contract Documents; or .4 audits performed by the Owner, if permitted by the Contract Documents, after final payment. § 9.10.5 Acceptance of final payment by the Contractor, a Subcontractor, or a supplier, shall constitute a waiver of claims by that payee except those previously made in writing and identified by that payee as unsettled at the time of final Application for Payment. § 9.10.6 When the Contractor has completed or corrected all items on the final Punch List and considers that the Work is complete and ready for final acceptance, the Contractor must give written notice to the Owner and the Architect and request a final inspection of the Work as provided in Section 9.10.2. The Contractor’s notice and request for a final inspection must be accompanied by a final Application for Payment and the Submittals required by Section 9.10.3. § 9.10.7 Upon receipt of the Contractor’s notice and request for final inspection, the Owner and the Architect will promptly make such inspection and, when the Owner and the Architect concur that the Work has been fully completed and is acceptable under the Contract Documents, the Architect will issue a Certificate of Final Completion to the Owner. The Contractor’s notice and request for final inspection constitutes a representation by the Contractor to the Owner that the Work has been completed in full and strict accordance with terms and conditions of the Contract Documents. The Architect will promptly notify the Contractor if the Owner or the Architect do not concur that the Work is finally complete. In such case, the Contractor must bear the cost of any additional services of the Owner or the Architect until the Work is determined to be finally complete. ARTICLE 10 PROTECTION OF PERSONS AND PROPERTY § 10.1 Safety Precautions and Programs The Contractor shall be responsible for initiating, maintaining, and supervising all safety precautions and programs in connection with the performance of the Contract. The Contractor shall submit the Contractor’s safety program to the Construction Manager for review and coordination with the safety programs of other Contractors. The Construction Manager’s responsibilities for review and coordination of safety programs shall not extend to direct control over or charge of the acts or omissions of the Contractors, Subcontractors, agents or employees of the Contractors or Subcontractors, or any other persons performing portions of the Work and not directly employed by the Construction Manager. § 10.2 Safety of Persons and Property § 10.2.1 The Contractor shall take reasonable precautions for safety of, and shall provide reasonable protection to prevent damage, injury, or loss to .1 employees on the Work and other persons who may be affected thereby; .2 the Work and materials and equipment to be incorporated therein, whether in storage on or off the site, under care, custody, or control of the Contractor, a Subcontractor, or a Sub-subcontractor; .3 other property at the site or adjacent thereto, such as trees, shrubs, lawns, walks, pavements, roadways, structures, and utilities not designated for removal, relocation, or replacement in the course of construction; and .4 construction or operations by the Owner, Separate Contractors, or other Contractors. § 10.2.2 The Contractor shall comply with, and give notices required by applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities, bearing on safety of persons or property or their protection from damage, injury, or loss. § 10.2.3 The Contractor shall implement, erect, and maintain, as required by existing conditions and performance of the Contract, reasonable safeguards for safety and protection, including posting danger signs and other warnings against hazards; promulgating safety regulations; and notifying the owners and users of adjacent sites and utilities of the safeguards. § 10.2.4 When use or storage of explosives or other hazardous materials or equipment or unusual methods are necessary for execution of the Work, the Contractor shall exercise utmost care and carry on such activities under supervision of properly qualified personnel. § 10.2.5 The Contractor shall promptly remedy damage and loss (other than damage or loss insured under property insurance required by the Contract Documents) to property referred to in Sections 10.2.1.2, 10.2.1.3 and 10.2.1.4 Page 403 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 29 caused in whole or in part by the Contractor, a Subcontractor, a Sub-subcontractor, or anyone directly or indirectly employed by any of them, or by anyone for whose acts they may be liable and for which the Contractor is responsible under Sections 10.2.1.2, 10.2.1.3 and 10.2.1.4. The Contractor may make a Claim for the cost to remedy the damage or loss to the extent such damage or loss is attributable to acts or omissions of the Owner, Construction Manager or Architect or anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable, and not attributable to the fault or negligence of the Contractor. The foregoing obligations of the Contractor are in addition to the Contractor’s obligations under Section 3.18. § 10.2.6 The Contractor shall designate a responsible member of the Contractor’s organization at the site whose duty shall be the prevention of accidents. This person shall be the Contractor’s superintendent unless otherwise designated by the Contractor in writing to the Owner, Construction Manager and Architect. § 10.2.7 The Contractor shall not permit any part of the construction or site to be loaded so as to cause damage or create an unsafe condition. § 10.2.8 Injury or Damage to Person or Property If either party suffers injury or damage to person or property because of an act or omission of the other party, or of others for whose acts such party is legally responsible, notice of the injury or damage, whether or not insured, shall be given to the other party within a reasonable time not exceeding 21 days after discovery. The notice shall provide sufficient detail to enable the other party to investigate the matter. § 10.3 Hazardous Materials § 10.3.1 The Contractor is responsible for compliance with any requirements included in the Contract Documents regarding hazardous materials or substances. If the Contractor encounters a hazardous material or substance not addressed in the Contract Documents and if reasonable precautions will be inadequate to prevent foreseeable bodily injury or death to persons resulting from a material or substance, including but not limited to asbestos or polychlorinated biphenyl (PCB), encountered on the site by the Contractor, the Contractor shall, upon recognizing the condition, immediately stop Work in the affected area and notify the Owner, Construction Manager and Architect of the condition. § 10.3.2 Upon receipt of the Contractor’s notice, the Owner shall obtain the services of a licensed laboratory to verify the presence or absence of the material or substance reported by the Contractor and, in the event such material or substance is found to be present, to cause it to be rendered harmless. Unless otherwise required by the Contract Documents, the Owner shall furnish in writing to the Contractor, Construction Manager and Architect the names and qualifications of persons or entities who are to perform tests verifying the presence or absence of the material or substance or who are to perform the task of removal or safe containment of the material or substance. The Contractor, the Construction Manager and the Architect will promptly reply to the Owner in writing stating whether or not any of them has reasonable objection to the persons or entities proposed by the Owner. If the Contractor, Construction Manager or Architect has an objection to a person or entity proposed by the Owner, the Owner shall propose another to whom the Contractor, the Construction Manager and the Architect have no reasonable objection. When the material or substance has been rendered harmless, Work in the affected area shall resume upon written agreement of the Owner and Contractor. By Change Order, the Contract Time shall be extended appropriately and the Contract Sum shall be increased by the amount of the Contractor’s reasonable additional costs of shutdown, delay, and start-up. § 10.3.3 To the fullest extent permitted by law, the Owner shall indemnify and hold harmless the Contractor, Subcontractors, Construction Manager, Architect, their consultants, and agents and employees of any of them from and against claims, damages, losses, and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the Work on Owner’s property if in fact the material or substance presents the risk of bodily injury or death as described in Section 10.3.1 and has not been rendered harmless, provided that such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), except to the extent that such damage, loss, or expense is due to the fault or negligence of the party seeking indemnity. § 10.3.4 The Owner shall not be responsible under this Section 10.3 for hazardous materials or substances the Contractor brings to the site unless such materials or substances are required by the Contract Documents. The Owner shall be responsible for hazardous materials or substances required by the Contract Documents, except to the extent of the Contractor’s fault or negligence in the use and handling of such materials or substances. Page 404 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 30 § 10.3.5 The Contractor shall reimburse the Owner for the cost and expense the Owner incurs (1) for remediation of hazardous materials or substances the Contractor brings to the site and negligently handles, or (2) where the Contractor fails to perform its obligations under Section 10.3.1, except to the extent that the cost and expense are due to the Owner’s fault or negligence. § 10.3.6 If, without negligence on the part of the Contractor, the Contractor is held liable by a government agency for the cost of remediation of a hazardous material or substance solely by reason of performing Work as required by the Contract Documents, the Owner shall reimburse the Contractor for all cost and expense thereby incurred. § 10.4 Emergencies In an emergency affecting safety of persons or property, the Contractor shall act, at the Contractor’s discretion, to prevent threatened damage, injury, or loss. Additional compensation or extension of time claimed by the Contractor on account of an emergency shall be determined as provided in Article 15 and Article 7. ARTICLE 11 INSURANCE AND BONDS § 11.1 Contractor’s Insurance and Bonds § 11.1.1 The Contractor shall purchase and maintain insurance of the types and limits of liability, containing the endorsements, and subject to the terms and conditions, as described in the Agreement or elsewhere in the Contract Documents. The Contractor shall purchase and maintain the required insurance from an insurance company or insurance companies lawfully authorized to issue insurance in the jurisdiction where the Project is located. The Owner, Construction Manager and Construction Manager’s consultants, and the Architect and Architect’s consultants, shall be named as additional insureds under the Contractor’s commercial general liability policy or as otherwise described in the Contract Documents. § 11.1.2 The Contractor shall provide surety bonds of the types, for such penal sums, and subject to such terms and conditions as required by the Contract Documents. The Contractor shall purchase and maintain the required bonds from a company or companies lawfully authorized to issue surety bonds in the jurisdiction where the Project is located. § 11.1.3 Upon the request of any person or entity appearing to be a potential beneficiary of bonds covering payment of obligations arising under the Contract, the Contractor shall promptly furnish a copy of the bonds or shall authorize a copy to be furnished. § 11.1.4 Notice of Cancellation or Expiration of Contractor’s Required Insurance. Within three (3) business days of the date the Contractor becomes aware of an impending or actual cancellation or expiration of any insurance required by the Contract Documents, the Contractor shall provide notice directly to the Owner, and separately to the Construction Manager, of such impending or actual cancellation or expiration. Upon receipt of notice from the Contractor, the Owner shall, unless the lapse in coverage arises from an act or omission of the Owner, have the right to stop the Work until the lapse in coverage has been cured by the procurement of replacement coverage by the Contractor. The furnishing of notice by the Contractor shall not relieve the Contractor of any contractual obligation to provide any required coverage. § 11.2 Owner’s Insurance § 11.2.1 The Owner shall purchase and maintain insurance of the types and limits of liability, containing the endorsements, and subject to the terms and conditions, as described in the Agreement or elsewhere in the Contract Documents. The Owner shall purchase and maintain the required insurance from an insurance company or insurance companies lawfully authorized to issue insurance in the jurisdiction where the Project is located. § 11.2.2 Failure to Purchase Required Property Insurance. If the Owner fails to purchase and maintain the required property insurance, with all of the coverages and in the amounts described in the Agreement or elsewhere in the Contract Documents, the Owner shall inform both the Contractor and the Construction Manager, separately and in writing, prior to commencement of the Work. Upon receipt of notice from the Owner, the Contractor may delay commencement of the Work and may obtain insurance that will protect the interests of the Contractor, Subcontractors, and Sub-Subcontractors in the Work. When the failure to provide coverage has been cured or resolved, the Contract Sum and Contract Time shall be equitably adjusted. In the event the Owner fails to procure coverage, the Owner waives all rights against the Contractor, Subcontractors, and Sub-subcontractors to the extent the loss to the Owner would have been covered by the insurance to have been procured by the Owner. The cost of the insurance shall be Page 405 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 31 charged to the Owner by a Change Order. If the Owner does not provide written notice, and the Contractor is damaged by the failure or neglect of the Owner to purchase or maintain the required insurance, the Owner shall reimburse the Contractor for all reasonable costs and damages attributable thereto. § 11.2.3 Notice of Cancellation or Expiration of Owner’s Required Property Insurance. Within three (3) business days of the date the Owner becomes aware of an impending or actual cancellation or expiration of any property insurance required by the Contract Documents, the Owner shall provide notice directly to the Contractor, and separately to the Construction Manager, of such impending or actual cancellation or expiration. Unless the lapse in coverage arises from an act or omission of the Contractor: (1) the Contractor, upon receipt of notice from the Owner, shall have the right to stop the Work until the lapse in coverage has been cured by the procurement of replacement coverage by either the Owner or the Contractor; (2) the Contract Time and Contract Sum shall be equitably adjusted; and (3) the Owner waives all rights against the Contractor, Subcontractors, and Sub-subcontractors to the extent any loss to the Owner would have been covered by the insurance had it not expired or been cancelled. If the Contractor purchases replacement coverage, the cost of the insurance shall be charged to the Owner by an appropriate Change Order. The furnishing of notice by the Owner shall not relieve the Owner of any contractual obligation to provide required insurance. § 11.3 Waivers of Subrogation § 11.3.1 The Owner and Contractor waive all rights against (1) each other and any of their subcontractors, sub-subcontractors, agents, and employees, each of the other; (2) the Construction Manager and Construction Manager’s consultants; (3) the Architect and Architect’s consultants; (4) other Contractors and any of their subcontractors, sub-subcontractors, agents, and employees; and (5) Separate Contractors, if any, and any of their subcontractors, sub-subcontractors, agents, and employees, for damages caused by fire, or other causes of loss, to the extent those losses are covered by property insurance required by Section 11.2 or other property insurance applicable to the Project, except such rights as they have to proceeds of such insurance. The Owner or Contractor, as appropriate, shall require similar written waivers in favor of the individuals and entities identified above from the Construction Manager, Construction Manager’s consultants, Architect, Architect’s consultants, other Contractors, Separate Contractors, subcontractors, and sub-subcontractors. The policies of insurance purchased and maintained by each person or entity agreeing to waive claims pursuant to this Section 11.3.1 shall not prohibit this waiver of subrogation. This waiver of subrogation shall be effective as to a person or entity (1) even though that person or entity would otherwise have a duty of indemnification, contractual or otherwise, (2) even though that person or entity did not pay the insurance premium directly or indirectly, or (3) whether or not the person or entity had an insurable interest in the damaged property. Notwithstanding the above, Owner does not waive its right to subrogate against (1) Contractor, any of its Subcontractors, Sub-Subcontractors, agents or employees for damages caused to non-Project related property, real or personal or both, at or adjacent to the site of the Project, caused by the negligent, intentional or other willful act or omission of the Contractor, any of its Subcontractors, Sub-Subcontractors, agents or employees; or against (2) the Architect, or Architect’s consultant, if any, for damages caused to non-Project related property, real or personal or both, at or adjacent to the site of the Project, caused by the negligent, intentional or other willful act or omission of the Architect, or Architect’s consultants, if any. § 11.3.2 If during the Project construction period the Owner insures properties, real or personal or both, at or adjacent to the site by property insurance under policies separate from those insuring the Project, or if after final payment property insurance is to be provided on the completed Project through a policy or policies other than those insuring the Project during the construction period, to the extent permissible by such policies, the Owner waives all rights in accordance with the terms of Section 11.3.1 for damages caused by fire or other causes of loss covered by this separate property insurance. § 11.4 Loss of Use, Business Interruption, and Delay in Completion Insurance The Owner, at the Owner’s option, may purchase and maintain insurance that will protect the Owner against loss of use of the Owner’s property, or the inability to conduct normal operations, due to fire or other causes of loss. The Owner waives all rights of action against the Contractor, Architect, and Construction Manager for loss of use of the Owner’s property, due to fire or other hazards however caused. § 11.5 Adjustment and Settlement of Insured Loss § 11.5.1 A loss insured under the property insurance required by the Agreement shall be adjusted by the Owner as fiduciary and made payable to the Owner as fiduciary for the insureds, as their interests may appear, subject to requirements of any applicable mortgagee clause and of Section 11.5.2. The Owner shall pay the Construction Page 406 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 32 Manager, Architect and Contractor their just shares of insurance proceeds received by the Owner, and by appropriate agreements the Construction Manager, Architect and Contractor shall make payments to their consultants and Subcontractors in similar manner. § 11.5.2 Prior to settlement of an insured loss, the Owner shall notify the Contractor of the terms of the proposed settlement as well as the proposed allocation of the insurance proceeds. The Contractor shall have 14 days from receipt of notice to object to the proposed settlement or allocation of the proceeds. If the Contractor does not object, the Owner shall settle the loss and the Contractor shall be bound by the settlement and allocation. Upon receipt, the Owner shall deposit the insurance proceeds in a separate account and make the appropriate distributions. Thereafter, if no other agreement is made or the Owner does not terminate the Contract for convenience, the Owner and Contractor shall execute a Change Order for reconstruction of the damaged or destroyed Work in the amount allocated for that purpose. If the Contractor timely objects to either the terms of the proposed settlement or the allocation of the proceeds, the Owner may proceed to settle the insured loss, and any dispute between the Owner and Contractor arising out of the settlement or allocation of the proceeds shall be resolved pursuant to Article 15. Pending resolution of any dispute, the Owner may issue a Construction Change Directive for the reconstruction of the damaged or destroyed Work. ARTICLE 12 UNCOVERING AND CORRECTION OF WORK § 12.1 Uncovering of Work § 12.1.1 If a portion of the Work is covered contrary to the Construction Manager’s or Architect’s request or to requirements specifically expressed in the Contract Documents, it must, if requested in writing by either, be uncovered for their examination and be replaced at the Contractor’s expense without change in the Contract Time. § 12.1.2 If a portion of the Work has been covered that the Construction Manager or Architect has not specifically requested to examine prior to its being covered, the Construction Manager or Architect may request to see such Work and it shall be uncovered by the Contractor. If such Work is in accordance with the Contract Documents, the Contractor shall be entitled to an equitable adjustment to the Contract Sum and Contract Time as may be appropriate. If such Work is not in accordance with the Contract Documents, the costs of uncovering the Work, and the cost of correction, shall be at the Contractor’s expense. § 12.2 Correction of Work § 12.2.1 Before Substantial Completion The Contractor shall promptly correct Work rejected by the Construction Manager or Architect or failing to conform to the requirements of the Contract Documents, discovered before Substantial Completion, and whether or not fabricated, installed or completed. Costs of correcting such rejected Work, including additional testing and inspections, the cost of uncovering and replacement, and compensation for the Construction Manager’s and Architect’s services and expenses made necessary thereby, shall be at the Contractor’s expense. § 12.2.2 After Substantial Completion § 12.2.2.1 In addition to the Contractor’s obligations under Section 3.5, if, within one year after the date of Substantial Completion of the Work or designated portion thereof, or after the date for commencement of warranties established under Section 9.9.1, or by terms of any applicable special warranty required by the Contract Documents, any of the Work is found to be not in accordance with the requirements of the Contract Documents, the Contractor shall correct it promptly after receipt of notice from the Owner to do so, unless the Owner has previously given the Contractor a written acceptance of such condition. The Owner shall give such notice within a reasonable time after discovery of the condition, and such notice shall be within one year after substantial completion, or, for Work performed pursuant to Sections 12.2.2.2 and 12.2.2.3, within the one year following such Work or Corrective Work. If Owner fails to give notice to Contractor within these one-year periods, Owner waives its right to Corrective Work, but retains all other rights it may have under law for defective Work. During the period for correction of Work, the Owner shall give the Contractor a reasonable opportunity to make the correction. If the Contractor fails to correct nonconforming Work within a reasonable time during that period after receipt of notice from the Owner, Construction Manager or Architect, the Owner may correct it in accordance with Section 2.5. § 12.2.2.2 The one-year period for correction of Work shall be extended with respect to portions of Work first performed after Substantial Completion by the period of time between Substantial Completion and the actual completion of that portion of the Work. Page 407 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 33 § 12.2.2.3 The one-year period for correction of Work shall not be extended by corrective Work performed by the Contractor pursuant to this Section 12.2. With respect to any Corrective Work performed during the Correction Period, the Correction Period for that Corrective Work shall be extended for one year from the date the Corrective Work was completed. § 12.2.3 The Contractor shall remove from the site portions of the Work that are not in accordance with the requirements of the Contract Documents and are neither corrected by the Contractor nor accepted by the Owner. § 12.2.4 The Contractor shall bear the cost of correcting destroyed or damaged construction of the Owner, Separate Contractors, or other Contractors, whether completed or partially completed, caused by the Contractor’s correction or removal of Work that is not in accordance with the requirements of the Contract Documents. § 12.2.5 Nothing contained in this Section 12.2 shall be construed to establish a period of limitation with respect to other obligations the Contractor has under the Contract Documents. Establishment of the one-year period for correction of Work as described in Section 12.2.2 relates only to the specific obligation of the Contractor to correct the Work, and has no relationship to the time within which the obligation to comply with the Contract Documents may be sought to be enforced, nor to the time within which proceedings may be commenced to establish the Contractor’s liability with respect to the Contractor’s obligations other than specifically to correct the Work. § 12.3 Acceptance of Nonconforming Work If the Owner prefers to accept Work that is not in accordance with the requirements of the Contract Documents, the Owner may do so instead of requiring its removal and correction, in which case the Contract Sum will be reduced as appropriate and equitable. Such adjustment shall be effected whether or not final payment has been made. ARTICLE 13 MISCELLANEOUS PROVISIONS § 13.1 Governing Law The Contract shall be governed by the law of the place where the Project is located. § 13.2 Successors and Assigns § 13.2.1 The Owner and Contractor respectively bind themselves, their partners, successors, assigns, and legal representatives to covenants, agreements, and obligations contained in the Contract Documents. Except as provided in Section 13.2.2, neither party to the Contract shall assign the Contract as a whole without written consent of the other. If either party attempts to make an assignment without such consent, that party shall nevertheless remain legally responsible for all obligations under the Contract. § 13.2.2 The Owner may, without consent of the Contractor, assign the Contract to a lender providing construction financing for the Project, if the lender assumes the Owner’s rights and obligations under the Contract Documents. The Contractor shall execute all consents reasonably required to facilitate the assignment. § 13.3 Rights and Remedies § 13.3.1 Duties and obligations imposed by the Contract Documents and rights and remedies available thereunder shall be in addition to and not a limitation of duties, obligations, rights, and remedies otherwise imposed or available by law. § 13.3.2 No action or failure to act by the Owner, Construction Manager, Architect, or Contractor shall constitute a waiver of a right or duty afforded them under the Contract, nor shall such action or failure to act constitute approval of or acquiescence in a breach thereunder, except as may be specifically agreed upon in writing. § 13.4 Tests and Inspections § 13.4.1 Tests, inspections, and approvals of portions of the Work shall be made as required by the Contract Documents and by applicable laws, statutes, ordinances, codes, rules, and regulations or lawful orders of public authorities. Unless otherwise provided, the Contractor shall make arrangements for such tests, inspections, and approvals with an independent testing laboratory or entity acceptable to the Owner, or with the appropriate public authority, and shall bear all related costs of tests, inspections, and approvals. The Contractor shall give the Construction Manager and Architect timely notice of when and where tests and inspections are to be made so that the Construction Manager and Architect may be present for such procedures. The Owner shall bear costs of tests, inspections, or approvals that do not become Page 408 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 34 requirements until after bids are received or negotiations concluded. The Owner shall directly arrange and pay for tests, inspections, or approvals where building codes or applicable laws or regulations so require. § 13.4.2 If the Construction Manager, Architect, Owner, or public authorities having jurisdiction determine that portions of the Work require additional testing, inspection, or approval not included under Section 13.4.1, the Construction Manager and Architect will, upon written authorization from the Owner, instruct the Contractor to make arrangements for such additional testing, inspection, or approval, by an entity acceptable to the Owner, and the Contractor shall give timely notice to the Construction Manager and Architect of when and where tests and inspections are to be made so that the Construction Manager and Architect may be present for such procedures. Such costs, except as provided in Section 13.4.3, shall be at the Owner’s expense. § 13.4.3 If procedures for testing, inspection, or approval under Sections 13.4.1 and 13.4.2 reveal failure of the portions of the Work to comply with requirements established by the Contract Documents, all costs made necessary by such failure, including those of repeated procedures and compensation for the Construction Manager’s and Architect’s services and expenses, shall be at the Contractor’s expense. § 13.4.4 Required certificates of testing, inspection, or approval shall, unless otherwise required by the Contract Documents, be secured by the Contractor and promptly delivered to the Construction Manager for transmittal to the Architect. § 13.4.5 If the Construction Manager or Architect is to observe tests, inspections, or approvals required by the Contract Documents, the Construction Manager or Architect will do so promptly and, where practicable, at the normal place of testing. § 13.4.6 Tests or inspections conducted pursuant to the Contract Documents shall be made promptly to avoid unreasonable delay in the Work. § 13.5 Interest All payments to the Contractor shall be governed by the Prompt Payment of Local Government Bills, Minnesota Statutes, Section 471.125 ("Prompt Payment Act"), except that any of four (4) percent per annum. ARTICLE 14 TERMINATION OR SUSPENSION OF THE CONTRACT § 14.1 Termination by the Contractor § 14.1.1 The Contractor may terminate the Contract if the Work is stopped for a period of 30 consecutive days through no act or fault of the Contractor, a Subcontractor, a Sub-subcontractor, their agents or employees, or any other persons or entities performing portions of the Work, for any of the following reasons: .1 Issuance of an order of a court or other public authority having jurisdiction that requires all Work to be stopped; .2 An act of government, such as a declaration of national emergency, that requires all Work to be stopped; or .3 Because the Construction Manager has not certified or the Architect has not issued a Certificate for Payment and has not notified the Contractor of the reason for withholding certification as provided in Section 9.4, or because the Owner has not made payment on a Certificate for Payment within the time stated in the Contract Documents. § 14.1.2 The Contractor may terminate the Contract if, through no act or fault of the Contractor, a Subcontractor, a Sub-subcontractor, their agents or employees, or any other persons or entities performing portions of the Work, repeated suspensions, delays, or interruptions of the entire Work by the Owner as described in Section 14.3, constitute in the aggregate more than 100 percent of the total number of days scheduled for completion, or 120 days in any 365-day period, whichever is less. § 14.1.3 If one of the reasons described in Section 14.1.1 or 14.1.2 exists, the Contractor may, upon seven days’ notice to the Owner, Construction Manager and Architect, terminate the Contract and recover from the Owner payment for Work executed, and reasonable and substantiated costs incurred by reason of such termination. § 14.1.4 If the Work is stopped for a period of 60 consecutive days through no act or fault of the Contractor, a Subcontractor, a Sub-subcontractor, or their agents or employees, or any other persons performing portions of the Page 409 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 35 Work because the Owner has repeatedly failed to fulfill the Owner’s obligations under the Contract Documents with respect to matters important to the progress of the Work, the Contractor may, upon seven additional days’ notice to the Owner, Construction Manager and Architect, terminate the Contract and recover from the Owner as provided in Section 14.1.3. § 14.1.5 No Right to Stop Work for Non-Payment. The Contractor has no right to stop Work as a consequence of non-payment. In the event of any disagreement between the Contractor and Owner involving the Contractor’s entitlement to payment, the Contractor’s only remedy is to file a Claim in accordance with Article 15. The Contractor must diligently proceed with the Work pending resolution of the Claim. If, however, an Application for Payment has been approved for payment by the Owner, and the Owner fails to make payment within sixty (60) days of the approval for payment by the Owner, the Contractor may upon ten (10) days written notice to the Owner, stop work if payment is not made by the Owner within ten (10) days following the notice. § 14.2 Termination by the Owner for Cause § 14.2.1 The Owner may terminate the Contract if the Contractor .1 repeatedly refuses or fails to supply enough properly skilled workers or proper materials; .2 fails to make payment to Subcontractors or suppliers in accordance with the respective agreements between the Contractor and the Subcontractors or suppliers; .3 repeatedly disregards applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of a public authority; or .4 otherwise is guilty of substantial breach of a provision of the Contract Documents. § 14.2.2 When any of the reasons described in Section 14.2.1 exist, after consultation with the Construction Manager, the Owner may, without prejudice to any other rights or remedies of the Owner and after giving the Contractor and the Contractor’s surety, if any, seven days’ notice, terminate employment of the Contractor and may, subject to any prior rights of the surety: .1 Exclude the Contractor from the site and take possession of all materials, equipment, tools, and construction equipment and machinery thereon owned by the Contractor; .2 Accept assignment of subcontracts pursuant to Section 5.4; and .3 Finish the Work by whatever reasonable method the Owner may deem expedient. Upon written request of the Contractor, the Owner shall furnish to the Contractor a detailed accounting of the costs incurred by the Owner in finishing the Work. § 14.2.3 When the Owner terminates the Contract for one of the reasons stated in Section 14.2.1, the Contractor shall not be entitled to receive further payment until the Work is finished. § 14.2.4 If the unpaid balance of the Contract Sum exceeds costs of finishing the Work, including compensation for the Construction Manager’s and Architect’s services and expenses made necessary thereby, and other damages incurred by the Owner and not expressly waived, such excess shall be paid to the Contractor. If such costs and damages exceed the unpaid balance, the Contractor shall pay the difference to the Owner. The amount to be paid to the Contractor or Owner, as the case may be, shall, upon application, be certified by the Initial Decision Maker after consultation with the Construction Manager, and this obligation for payment shall survive termination of the Contract. § 14.3 Suspension by the Owner for Convenience § 14.3.1 The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work, in whole or in part for such period of time as the Owner may determine. § 14.3.2 The Contract Sum and the Contract Time shall be adjusted for increases in the cost and time caused by suspension, delay, or interruption under Section 14.3.1. No adjustment shall be made to the extent: .1 that performance is, was, or would have been, so suspended, delayed, or interrupted, by another cause for which the Contractor is responsible; or .2 that an equitable adjustment is made or denied under another provision of this Contract. § 14.4 Termination by the Owner for Convenience § 14.4.1 The Owner may, at any time, terminate the Contract for the Owner’s convenience and without cause. § 14.4.2 Upon receipt of notice from the Owner of such termination for the Owner’s convenience, the Contractor shall Page 410 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 36 .1 cease operations as directed by the Owner in the notice; .2 take actions necessary, or that the Owner may direct, for the protection and preservation of the Work; and .3 except for Work directed to be performed prior to the effective date of termination stated in the notice, terminate all existing subcontracts and purchase orders and enter into no further subcontracts and purchase orders. § 14.4.3 In case of such termination for the Owner’s convenience, the Owner shall pay the Contractor for Work properly executed; costs incurred by reason of the termination, including costs attributable to termination of Subcontracts; and the termination fee, if any, set forth in the Agreement. ARTICLE 15 CLAIMS AND DISPUTES § 15.1 Claims § 15.1.1 Definition. A Claim is a demand or assertion by the Contractor seeking, as a matter of right, payment of money, a change in the Contract Time, or other relief with respect to the terms of the Contract. The responsibility to substantiate Claims shall rest with the Contractor. This Section 15.1.1 does not require the Owner to file a Claim in order to impose liquidated damages in accordance with the Contract Documents. Nothing in this paragraph 15.1.1 is intended to apply to or in any way limit the Owner’s right to make Claims related to or arising out of the Contract. § 15.1.2 Time Limits on Claims The Owner and Contractor shall commence all Claims and causes of action against the other and arising out of or related to the Contract, whether in contract, tort, breach of warranty or otherwise, in accordance with the requirements of the binding dispute resolution method selected in the Agreement and within the period specified by applicable law, but in any case not more than 10 years after the date of Substantial Completion of the Work. The Owner and Contractor waive all Claims and causes of action not commenced in accordance with this Section 15.1.2. § 15.1.3 Notice of Claims § 15.1.3.1 Claims by Contractor, where the condition giving rise to the Claim is first discovered prior to expiration of the period for correction of the Work set forth in Section 12.2.2, shall be initiated by written notice to the Owner and to the Initial Decision Maker with a copy sent to the Construction Manager and Architect, if the Architect is not serving as the Initial Decision Maker. Claims by Contractor under this Section 15.1.3.1 shall be initiated within 21 days after occurrence of the event giving rise to such Claim or within 21 days after the claimant first recognizes the condition giving rise to the Claim, whichever is later. As a condition to making a claim for additional costs, the Contractor shall maintain and produce accurate records to substantiate all additional costs actually incurred. If a Claim for actual costs is approved, the Owner shall pay the Contractor actual costs incurred, plus either (a) ten percent (10%) for overhead and profit for work performed by the Contractor, or (b) five percent (5%) overhead and profit for work performed by a Subcontractor, as applicable. § 15.1.3.2 Claims by either the Owner or Contractor, where the condition giving rise to the Claim is first discovered after expiration of the period for correction of the Work set forth in Section 12.2.2, shall be initiated by notice to the other party. In such event, no decision by the Initial Decision Maker is required. § 15.1.4 Continuing Contract Performance § 15.1.4.1 Pending final resolution of a Claim, except as otherwise agreed in writing or as provided in Section 9.7 and Article 14, the Contractor shall proceed diligently with performance of the Contract and the Owner shall continue to make payments in accordance with the Contract Documents. § 15.1.4.2 The Contract Sum and Contract Time shall be adjusted in accordance with the Initial Decision Maker’s decision, subject to the right of either party to proceed in accordance with this Article 15. The Architect will issue Certificates for Payment in accordance with the decision of the Initial Decision Maker. § 15.1.5 Claims for Additional Cost. If the Contractor wishes to make a Claim for an increase in the Contract Sum, notice as provided in Section 15.1.3 shall be given before proceeding to execute the portion of the Work that is the subject of the Claim. Prior notice is not required for Claims relating to an emergency endangering life or property arising under Section 10.4. Page 411 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 37 § 15.1.6 Claims for Additional Time § 15.1.6.1 If the Contractor wishes to make a Claim for an increase in the Contract Time, notice as provided in Section 15.1.3 shall be given. The Contractor’s Claim shall include an estimate of cost and of probable effect of delay on progress of the Work. In the case of a continuing delay only one Claim is necessary. § 15.1.6.2 If adverse weather conditions are the basis for a Claim for additional time, such Claim shall be documented by data substantiating that weather conditions were abnormal for the period of time, could not have been reasonably anticipated and had an adverse effect on the scheduled construction. (Paragraphs deleted) § 15.2 Initial Decision § 15.2.1 Claims, excluding those where the condition giving rise to the Claim is first discovered after expiration of the period for correction of the Work set forth in Section 12.2.2 or arising under Sections 10.3, 10.4, and 11.5, shall be referred to the Initial Decision Maker for initial decision. The Architect will serve as the Initial Decision Maker, unless otherwise indicated in the Agreement. Except for those Claims excluded by this Section 15.2.1, an initial decision shall be required as a condition precedent to mediation of any Claim. If an initial decision has not been rendered within 30 days after the Claim has been referred to the Initial Decision Maker, the party asserting the Claim may demand mediation and binding dispute resolution without a decision having been rendered. Unless the Initial Decision Maker and all affected parties agree, the Initial Decision Maker will not decide disputes between the Contractor and persons or entities other than the Owner. § 15.2.2 The Initial Decision Maker will review Claims and within ten days of the receipt of a Claim take one or more of the following actions: (1) request additional supporting data from the claimant or a response with supporting data from the other party, (2) reject the Claim in whole or in part, (3) approve the Claim, (4) suggest a compromise, or (5) advise the parties that the Initial Decision Maker is unable to resolve the Claim if the Initial Decision Maker lacks sufficient information to evaluate the merits of the Claim or if the Initial Decision Maker concludes that, in the Initial Decision Maker’s sole discretion, it would be inappropriate for the Initial Decision Maker to resolve the Claim. § 15.2.3 In evaluating Claims, the Initial Decision Maker may, but shall not be obligated to, consult with or seek information from either party or from persons with special knowledge or expertise who may assist the Initial Decision Maker in rendering a decision. The Initial Decision Maker may request the Owner to authorize retention of such persons at the Owner’s expense. § 15.2.4 If the Initial Decision Maker requests a party to provide a response to a Claim or to furnish additional supporting data, such party shall respond, within ten days after receipt of the request, and shall either (1) provide a response on the requested supporting data, (2) advise the Initial Decision Maker when the response or supporting data will be furnished, or (3) advise the Initial Decision Maker that no supporting data will be furnished. Upon receipt of the response or supporting data, if any, the Initial Decision Maker will either reject or approve the Claim in whole or in part. § 15.2.5 The Initial Decision Maker will render an initial decision approving or rejecting the Claim, or indicating that the Initial Decision Maker is unable to resolve the Claim. This initial decision shall (1) be in writing; (2) state the reasons therefor; and (3) notify the parties, the Construction Manager, and the Architect, if the Architect is not serving as the Initial Decision Maker, of any change in the Contract Sum or Contract Time or both. The initial decision shall be final and binding on the parties but subject to mediation and, if the parties fail to resolve their dispute through mediation, to binding dispute resolution. § 15.2.6 In the event of a Claim against the Contractor, the Owner may, but is not obligated to notify the surety, if any, of the nature and amount of the Claim. If the Claim relates to a possibility of a Contractor’s default, the Owner may, but is not obligated to notify the surety and request the surety’s assistance in resolving the controversy. (Paragraphs deleted) § 15.3 Mediation § 15.3.1 Claims, disputes, or other matters in controversy arising out of or related to the Contract shall be subject to mediation. Mediation is not a condition precedent to commencing litigation but if litigation is commenced before mediation is held, the Parties agree to mediate before any dispositive motions or trial. Page 412 of 579 Init. / AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 38 § 15.3.2 The parties shall share the mediator’s fee equally. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon. Agreements reached in mediation and ratified by the Owner’s Council shall be enforceable as settlement agreements in any court having jurisdiction thereof. (Paragraphs deleted) ARTICLE 16 SPECIAL TERMS AND CONDITIONS Special terms and conditions that modify this Agreement are as follows: § 16.1 Record Keeping—Availability and Retention. Pursuant to Minnesota Statutes, Section 16C.05, subd. 5, Contractor agrees that the books, records, documents and accounting procedures and practices of Contractor, that are relevant to the Contract or transaction, are subject to examination by the Owner and the state auditor for a minimum of six (6) years. Contractor shall maintain such records for a minimum of six (6) years after final payment. § 16.2 Data Practices. Pursuant to Minnesota Statutes, Section 13.05, subd. 11, all of the data created, collected, received, stored, used, maintained, or disseminated by Contractor in performing this project is subject to the requirements of the Minnesota Government Data Practices Act ("MGDPA"), Minnesota Statutes Chapter 13, and Contractor must comply with those requirements as if it were a government entity. The remedies in Minnesota Statutes, Section 13.08 apply to Contractor. Contractor does not have a duty to provide access to public data to the public if the public data are available from the Owner. § 16.3 Non-Discrimination. Pursuant to Minnesota Statutes, Section 181.59, the Contractor will take affirmative action to ensure that applicants are selected, and that employees are treated during employment, without regard to their race, color, creed, religion, national origin, sex, sexual orientation, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability or age. The Contractor agrees to be bound by the provisions of Minnesota Statutes, Section 181.59, that prohibits certain discriminatory practices and the terms of said section are incorporated into this contract. Page 413 of 579 Additions and Deletions Report for AIA® Document A232® – 2019 This Additions and Deletions Report, as defined on page 1 of the associated document, reproduces below all text the author has added to the standard form AIA document in order to complete it, as well as any text the author may have added to or deleted from the original AIA text. Added text is shown underlined. Deleted text is indicated with a horizontal line through the original AIA text. Note: This Additions and Deletions Report is provided for information purposes only and is not incorporated into or constitute any part of the associated AIA document. This Additions and Deletions Report and its associated document were generated simultaneously by AIA software at 11:45:47 on 10/10/2025. Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 1 PAGE 1 Veterans Park Improvements – Rink 2 Re-Roof 636 East 66th Street, Richfield, MN 55423 This includes re-roofing rink 2, re-roofing the structure between rink 1 and rink 2 and supporting improvements to the arena. … Loeffler Construction Consulting LLC d/b/a Loeffler Construction & Consulting 9202 202nd St. W., Suite 100 Lakeville, MN 55044 … City of Richfield 6700 Portland Ave Richfield, MN 55423 … (Name, legal status, and address) U+B Architecture & Design, Inc. 112 North 1st Street Minneapolis, MN 55401 Phone: (612) 746-4260 PAGE 4 § 1.5.1 The Subject to the Agreement between Owner and Architect, the Architect and the Architect’s consultants shall be deemed the authors and owners of their respective Instruments of Service, including the Drawings and Specifications, and retain all common law, statutory, and other reserved rights in their Instruments of Service, including copyrights. The Contractor, Subcontractors, sub-subcontractors, and suppliers shall not own or claim a copyright in the Instruments of Service. Submittal or distribution to meet official regulatory requirements or for other purposes in connection with the Project is not to be construed as publication in derogation of the Architect’s or Architect’s consultants’ reserved rights. … The parties shall agree upon written protocols governing the transmission and use of, and reliance on, of Instruments of Service or any other information or documentation in digital form. The parties may use AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, to establish the protocols for the development, use, transmission, and exchange of digital data. Page 414 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 2 PAGE 5 Any use of, or reliance on, all or a portion of a building information model without agreement to written protocols governing the use of, and reliance on, the information contained in the model and without having those protocols set forth in AIA Document E203™–2013, Building Information Modeling and Digital Data Exhibit, or similar written agreement, and the requisite AIA Document G202™–2013, Project Building Information Modeling Protocol Form, shall be at the using or relying party’s sole risk and without liability to the other party and its contractors or consultants, the authors of, or contributors to, the building information model, and each of their agents and employees. … § 2.1.1 The Owner is the person or entity identified as such in the Agreement and is referred to throughout the Contract Documents as if singular in number. The Owner shall designate in writing a representative who shall have express authority to bind the Owner with respect to all matters requiring the Owner’s approval or authorization. identify a representative authorized to act on the Owner’s behalf only with respect to specific matters delegated to the representative in writing by the Owner’s governing body. Except as expressly delegated by the Owner’s governing body, the Owner’s representative has no authority to agree to any adjustments in the Contract Sum or Contract Time. Except as otherwise provided in Section 4.2.1, the Construction Manager and the Architect do not have such authority. The term "Owner" means the Owner or the Owner’s authorized representative. § 2.1.2 The Owner shall furnish to the Contractor, within fifteen days after receipt of a written request, information necessary and relevant for the Contractor to evaluate, give notice of, or enforce mechanic’s lien rights. Such information shall include a correct statement of the record legal title to the property on which the Project is located, usually referred to as the site, and the Owner’s interest therein. PAGE 6 § 2.3.5 The Owner shall furnish surveys describing physical characteristics, legal limitations and utility locations for the site of the Project, and a legal description of the site. The Except for utility locations provided by private utilities, which Owner does not warrant for accuracy, the Contractor shall be entitled to rely on the accuracy of information furnished by the Owner but shall exercise proper precautions relating to the safe performance of the Work. The Contractor shall be responsible for verifying the accuracy of all utility locations supplied by private utilities. PAGE 7 § 3.2.1 Execution of the Contract by the Contractor is a representation that the Contractor has visited the site, become generally By executing the Contract, the Contractor represents that the Contractor has reviewed and understands the Contract Documents, has visited the Site and is familiar with local conditions under which the Work is to be performed, and correlated personal observations with requirements of the Contract Documents.has correlated personal observations with the requirements of the Contract Documents, and has notified the Architect of and obtained clarification of any discrepancies which have become apparent during the bidding or proposal period. … § 3.2.4 If the Contractor believes that additional cost or time is involved because of clarifications or instructions the Architect issues in response to the Contractor’s notices or requests for information pursuant to Sections 3.2.2 or 3.2.3, the Contractor shall submit Claims as provided in Article 15. If the Contractor fails to perform the obligations of Sections 3.2.2 or 3.2.3, the Contractor shall pay such costs and damages to the Owner, subject to section 15.1.7, as would have been avoided if the Contractor had performed such obligations. If the Contractor performs those obligations, the Contractor shall not be liable to the Owner or Architect for damages resulting from errors, inconsistencies or omissions in the Contract Documents, for differences between field measurements or conditions and the Contract Documents, or for nonconformities of the Contract Documents to applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities.The Contractor must make frequent inspections during the progress of the Work to confirm that Work previously performed by the Contractor is in compliance with the Contract Documents and applicable laws and regulations bearing on the performance of the Work and Referenced Standards and that portion of Work previously performed by the Contractor or by others are in proper condition to receive subsequent Work. Page 415 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 3 § 3.2.5 The Contractor must promptly notify the Owner and the Architect in writing of any apparent errors, inconsistencies, omissions, ambiguities, construction impracticalities or code violations discovered as a result of the Contractor’s review of the Contract Documents including any differences between actual and indicated dimensions, locations and descriptions, and must give the Owner and the Architect timely notice in writing of same and of any corrections, clarifications, additional Drawings or Specifications, or other information required to define the Work in greater detail or to permit the proper progress of the Work. The Contractor must provide similar notice with respect to any variance between its review of the Site and physical data and Site conditions observed. § 3.2.6 If the Contractor performs any Work involving an apparent error, inconsistency, ambiguity, construction impracticality, omission or code violation in the Contract Documents of which the Contractor is aware, or which could reasonably have been discovered by the review required by Section 3.2, without prompt written notice to the Owner and the Architect and request for correction, clarification or additional information, as appropriate, the Contractor does so at its own risk and expense and all claims relating thereafter are specifically waived. § 3.2.7 If the Contractor believes that additional cost or time is involved because of clarifications or instructions the Architect issues in response to the Contractor’s notices or requests for information pursuant to Sections 3.2, the Contractor shall submit Claims as provided in Article 15. If the Contractor fails to perform the obligations of Sections 3.2, the Contractor shall pay such costs and damages to the Owner, subject to section 15.1.7, as would have been avoided if the Contractor had performed such obligations. If the Contractor performs those obligations, the Contractor shall not be liable to the Owner or Architect for damages resulting from errors, inconsistencies or omissions in the Contract Documents, for differences between field measurements or conditions and the Contract Documents, or for nonconformities of the Contract Documents to applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities. PAGE 8 § 3.4.3 The Contractor shall enforce strict discipline and good order among the Contractor’s employees employees, Subcontractors, and other persons carrying out the Work. The Contractor shall not permit employment of unfit persons or persons not properly skilled in tasks assigned to them. PAGE 9 § 3.5.3 The Contractor’s general warranty and any additional or special warranties are not limited by the Contractor’s obligations to specifically correct defective or nonconforming Work as provided in Article 12, nor are they limited by any other remedies provided in the Contract Documents. The Contractor shall also be liable for any damage to property or persons (including death) including consequential and direct damages relating to any breach of the Contractor’s general warranty or any additional or special warranties required by the Contract Documents. § 3.5.4 The Contractor must furnish all special warranties required by the Contract Documents to the Owner no later than Substantial Completion. The Owner may require additional special warranties in connection with the approval of "Or-Equals" or Substitutions, Allowance items, Work that is defective or nonconforming, or the acceptance of nonconforming Work pursuant to Article 12. PAGE 10 § 3.9.1 The Contractor shall employ a competent superintendent and necessary assistants who shall be in attendance at the Project site during performance of the Work. The superintendent shall represent the Contractor, and communications given to the superintendent shall be as binding as if given to the Contractor. The Superintendent must provide his or her email address and cell phone number to Owner, Construction Manager, and Architect and must be available to be contacted during all business hours, and outside of business hours in the event of an emergency. … § 3.10.1 The Contractor, promptly after being awarded the Contract, shall submit in its native and electronic format, for the Owner’s and Architect’s information, acceptance, and the Construction Manager’s use in developing the Project schedule, a Contractor’s construction schedule for the Work. The schedule shall contain detail appropriate for Page 416 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 4 the Project, including (1) the date of commencement of the Work, interim schedule milestone dates, and the date of Substantial Completion; (2) an apportionment of the Work by construction activity; and (3) the time required for completion of each portion of the Work. The schedule shall provide for the orderly progression of the Work to completion and shall not exceed time limits current under the Contract Documents. The schedule shall be revised at appropriate intervals as required by the conditions of the Work and Project. The Contractor shall cooperate with the Construction Manager in scheduling and performing the Contractor’s Work to avoid conflict with, and as to cause no delay in, the work or activities of other Contractors, or the construction or operations of the Owner’s own forces or Separate Contractors. § 3.10.2 The Contractor, promptly after being awarded within ten days of execution of the Contract and thereafter as necessary to maintain a current submittal schedule, shall submit a submittal schedule for the Construction Manager’s and Architect’s approval. The Architect and Construction Manager’s approval shall not be unreasonably delayed or withheld. The submittal schedule shall (1) be coordinated with the Contractor’s construction schedule, and (2) allow the Construction Manager and Architect reasonable time to review submittals. If the Contractor fails to submit a submittal schedule, or fails to provide submittals in accordance with the approved submittal schedule, the Contractor shall not be entitled to any increase in Contract Sum or extension of Contract Time based on the time required for review of submittals. PAGE 11 The Contractor shall make available, at the Project site, the Contract Documents, including the current Construction Schedule, Change Orders, Construction Change Directives, and other Modifications, in good order and marked currently to indicate field changes and selections made during construction, and the approved Shop Drawings, Product Data, Samples, and similar required submittals. These shall be in electronic form or paper copy, available to the Construction Manager, Architect, and Owner, and delivered to the Construction Manager for submittal to the Owner upon completion of the Work as a record of the Work as constructed. … § 3.12.5 The Contractor shall review for compliance with the Contract Documents, approve, and submit to the Construction Manager, Shop Drawings, Product Data, Samples, and similar submittals required by the Contract Documents, in accordance with the Project submittal schedule approved by the Construction Manager and Architect or, in the absence of an approved Project submittal schedule, with reasonable promptness and in such sequence as to cause no delay in the Work or in the activities of other Contractors, Separate Contractors, or the Owner’s own forces. The Contractor shall cooperate with the Construction Manager in the coordination of the Contractor’s Shop Drawings, Product Data, Samples, and similar submittals with related documents submitted by other Contractors. The Contractor must provide the Owner, Construction Manager, and Architect with copies of all submittals made to regulatory agencies. … § 3.12.7 The Contractor shall perform no portion of the Work for which the Contract Documents require submittal and review of Shop Drawings, Product Data, Samples, or similar submittals, until the respective submittal has been reviewed and approved by the Architect. The Contractor must correct at its cost, and without any adjustment in Contract Time, any Work the correction of which is required due to the Contractor’s failure to obtain approval of a submittal required to have been obtained prior to proceeding with the Work, including, but not limited to, correction of any conflicts in the Work resulting from such failure. PAGE 12 § 3.13.3 Except as may be specifically provided in the Contract Documents, the Contractor shall provide all necessary temporary facilities, including power, water, sanitation, scaffolding, storage, and security. If Owner makes any such facilities available to Contractor, it is without representation or warranty as to their adequacy for Contractor’s use, and Contractor shall indemnify, defend, and hold Owner harmless from and against any claims arising out of Contractor’s use of such facilities. PAGE 13 Page 417 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 5 § 3.15.1 The Contractor must keep the Site and adjacent areas free from accumulation of waste materials or rubbish caused by operations under the Contract, and must keep tools, construction equipment, machinery and surplus materials suitably stored when not in use. If the Contractor fails to do so in a manner reasonably satisfactory to the Owner or the Architect within forty-eight (48) hours after notice or as otherwise required by the Contract Documents, the Owner may clean the Site and back charge the Contractor for all costs associated with the cleaning. The Contractor shall keep the premises and surrounding area free from accumulation of waste materials and or rubbish caused by operations under the Contract. At completion of the Work, the Contractor shall remove waste materials, rubbish, the Contractor’s tools, construction equipment, machinery, machinery and surplus materials from and about the Project. … § 3.18.1 To the fullest extent permitted by law, the Contractor shall indemnify indemnify, defend, and hold harmless the Owner, Construction Manager, Architect, Construction Manager’s and Architect’s consultants, and agents and employees of any of them from and against claims, damages, losses, and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the Work, provided that such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), but only to the extent caused by the negligent acts or omissions of the Contractor, a Subcontractor, anyone directly or indirectly employed by them, or anyone for whose acts they may be liable, regardless of whether or not such claim, damage, loss, or expense is caused in part by a party indemnified hereunder. Such obligation shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist as to a party or person described in this Section 3.18. PAGE 16 § 5.2.1 Unless otherwise stated in the Contract Documents, the Contractor, as soon as practicable after award of the Contract, After award of the Contract, if the Contractor seeks to substitute a Subcontractor, the Contractor shall notify the Construction Manager, for review by the Owner, Construction Manager and Architect, of the persons or entities substitute(s) proposed for each principal portion of the Work, including those who are to furnish materials or equipment fabricated to a special design. Within 14 days of receipt of the information, the Construction Manager may notify the Contractor whether the Owner, the Construction Manager or the Architect (1) has reasonable objection to any such proposed person or entity substitute(s) or, (2) requires additional time for review. Failure of the Construction Manager to provide notice within the 14-day period shall constitute notice of no reasonable objection. § 5.2.2 The Contractor shall not contract with a proposed person or entity substitute Subcontractor to whom the Owner, Construction Manager or Architect has made reasonable and timely objection. The Contractor shall not be required to contract with anyone to whom the Contractor has made reasonable objection. PAGE 19 § 7.2 Change Orders and Change Proposals A Change Order is a written instrument prepared by the Construction Manager and signed by the Owner, Construction Manager, Architect, and Contractor, stating their agreement upon all of the following:§ 7.2.1 A Change Order is a written instrument prepared by the Construction Manager and signed by the Owner, Construction Manager, Architect, and Contractor, stating their agreement upon all of the following: … .3 The extent of the adjustment, if any, in the Contract Time. § 7.2.2 The Contractor must submit Change Proposals covering a contemplated Change Order within ten (10) days after request of the Owner, or the Architect or within ten (10) days of the event giving rise to the Contractor’s claim for a change in the Contract Sum or Contract Time. No increase in the Contract Sum or extension of the Contract Time will be allowed the Contractor for the cost or time involved in making Change Proposals. Change Proposals will define or confirm in detail the Work which is proposed to be added, deleted, or changed and must include any adjustment which the Contractor believes to be necessary in (i) the Contract Sum, or (ii) the Contract Time. Any proposed adjustment must include detailed documentation including, but not limited to: cost, properly itemized and supported by sufficient substantiating data to permit evaluation including cost of labor, materials, supplies and equipment, rental cost of machinery and equipment, additional bond cost, plus a fixed fee for profit and overhead (which includes office overhead and Site-specific overhead and general conditions) of ten percent (10%) if the Work is Page 418 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 6 performed by the Contractor, or five percent (5%) if the Work is performed by a Subcontractor or Sub-subcontractor. The Subcontractor’s or Sub-subcontractor’s overhead and profit in turn must not exceed a total aggregate of ten percent (10%). Change Proposals will be binding upon the Contractor and may be accepted or rejected by the Owner in its discretion. The Owner may, at its option, instruct the Contractor to proceed with the Work involved in the Change Proposal in accordance with this Section 7.2.2 without accepting the Change Proposal in its entirety. § 7.2.3 If the Owner determines that a Change Proposal is appropriate, the Architect will prepare and submit a request for a Change Order or Contract Amendment providing for an appropriate adjustment in the Contract Sum or Contract Time, or both, for further action by the Owner. No such change is effective until the Owner and Architect sign the Change Order. … § 7.3.4 If the Contractor does not respond promptly or disagrees with the method for adjustment in the Contract Sum, the Construction Manager and Owner shall determine the adjustment on the basis of reasonable expenditures and savings of those performing the Work attributable to the change, including, in case of an increase in the Contract Sum, an amount for overhead and profit as set forth in the Agreement, or if no such amount is set forth in the Agreement, a reasonable amount. In such case, and also under Section 7.3.3.3, the Contractor shall keep and present, in such form as the Construction Manager may prescribe, an itemized accounting together with appropriate supporting data. Unless otherwise provided in the Contract Documents, costs for the purposes of this Section 7.3.4 shall be limited to the following: PAGE 21 § 8.2.4 The Contractor must conform to the most recently accepted Progress Schedule. The Contractor must complete the indicated Work or achieve the required percentage of completion, as applicable, within any interim completion dates established in the most recently approved Progress Schedule. § 8.2.5 The Contractor must maintain at the Site, available to the Owner and the Architect for their reference during the progress of the Work, a copy of the accepted Progress Schedule and any accepted revisions thereto. The Contractor must keep current records of and mark on a copy of the accepted Progress Schedule the actual commencement date, progress and completion date of each scheduled activity indicated on the Progress Schedule. § 8.2.6 The Contractor represents that its bid includes all costs, overhead and profit which may be incurred throughout the Contract Time and the period between Substantial and Final Completion. Accordingly, the Contractor may not make any claim for delay damages based in whole or in part on the premise that the Contractor would have completed the Work prior to the expiration of the Contract Time but for any claimed delay. § 8.2.7 If the Contractor’s progress is not maintained in accordance with the accepted Progress Schedule, or the Owner determines that the Contractor is not diligently proceeding with the Work or has evidence reasonably indicating that the Contractor will not be able to conform to the most recently accepted Progress Schedule, the Contractor must, promptly and at no additional cost to the Owner, take all measures necessary to accelerate its progress to overcome the delay and ensure that there will be no further delay in the progress of the Work and notify the Owner. § 8.2.8 The Owner reserves the right to issue a written directive to accelerate the Work that may be subject to an appropriate adjustment, if any, in the Contract Sum. If the Owner requires an acceleration of the Project Schedule and no adjustment is made in the Contract Sum, or if the Contractor disagrees with any adjustment made, the Contractor must file a claim as provided in Article 15 or the same will be deemed to be conclusively waived. PAGE 22 § 9.3.1.2 Applications for Payment shall not include requests for payment for portions of the Work for which the Contractor does not intend to pay a Subcontractor or supplier, unless such Work has been performed by others whom the Contractor intends to pay. As required by Minnesota Statutes, Section 471.425, subd. 4a, the Contractor must pay all Subcontractors, less any retainage, within ten (10) calendar days of the Contractor’s receipt of payment from the Owner for undisputed services provided by the Subcontractor(s) and must pay interest at the rate of one and one-half percent per month or any part of a month to the Subcontractor(s) on any undisputed amount not paid on time to the Subcontractor(s). Page 419 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 7 PAGE 23 § 9.3.4 The Contractor must submit to the Architect itemized Applications for Payment for Work completed on a monthly basis in accordance with a schedule approved by the Owner. Each Application for Payment must be consistent with the approved Schedule of Values. In order to expedite the review and approval of Applications for Payment, the Contractor may submit to and review with the Architect and Owner a draft Application for Payment at a progress meeting prior to submitting a formal Application for Payment. § 9.3.5 The form of Application for Payment must be AIA Document G702, Application and Certificate for Payment, supported by AIA Document G703, Continuation Sheet (latest edition), or such other form as may be prescribed by the Owner. The Application must be notarized and supported by sufficient data to demonstrate the Contractor’s right to payment and compliance with the payment provisions of the Contract to the satisfaction of the Owner and Architect, such as copies of requisitions from Subcontractors and material suppliers, partial lien waivers, releases and other documents. Each Application for Payment must reflect approved Contract Modifications and the Contract retainage provided for in the Contract Documents. § 9.3.6 Applications for Payment may include materials and equipment delivered and suitably stored at the Site for subsequent incorporation in the Work. The Owner has no obligation or responsibility to pay for materials stored off the Site. If specifically approved in writing in advance by the Owner, an Application for Payment may include materials and equipment stored off the Site at a location agreed upon in writing. Payment for materials and equipment stored on or off the Site is conditioned upon compliance by the Contractor with procedures satisfactory to the Owner to protect the Owner’s interests. Payment for materials and equipment stored off the Site will, in addition, be conditioned upon the Contractor’s provision of applicable insurance, storage and transportation to the Site. PAGE 26 § 9.8.6 Retainage after Substantial Completion, Minn. Stat. § 15.72, subd. 2—Subject to the following, all retainage will be released to Construction Manager no later than sixty (60) days after Substantial Completion. "Substantial Completion" shall be determined by the Architect consistent with the definition in Minnesota Statutes, Section 541.051, subd. 1(a). After Substantial Completion, Owner may withhold: (1) two hundred and fifty percent (250%) of the estimated cost to correct or complete Work known at the time of Substantial Completion; and (2) one percent (1%) of the value of the contract or $500.00, whichever is greater, pending completion and submission of all final paperwork by Construction Manager. If Owner withholds payment under this paragraph, it will provide a written statement to Construction Manager detailing the amount and basis of the withholding. Owner will pay any amounts withheld under clause (1) within sixty (60) days after completion or correction of the Work, as determined by Architect. Owner will pay any amounts withheld under clause (2) after submission of all final paperwork, as determined by Owner. PAGE 27 § 9.10.3 If, after Substantial Completion of the Work, final completion thereof is materially delayed through no fault of the Contractor or by issuance of Change Orders affecting final completion, and the Construction Manager and Architect so confirm, the Owner shall, upon application by the Contractor and certification by the Construction Manager and Architect, and without terminating the Contract, make payment of the balance due for that portion of the Work fully completed, corrected, and accepted. If the remaining balance for Work not fully completed or corrected is less than retainage stipulated in the Contract Documents, and if bonds have been furnished, the written consent of the surety to payment of the balance due for that portion of the Work fully completed and accepted shall be submitted by the Contractor to the Architect through the Construction Manager prior to certification of such payment. Such payment shall be made under terms and conditions governing final payment, except that it shall not constitute a waiver of Claims. Notwithstanding the foregoing, the Owner may at its option retain the lesser of a minimum of three times the value of the incomplete or uncorrected parts of the Work, or the maximum amount allowed by law, as estimated by the Construction Manager, provided the remaining work is minor and cannot be completed or corrected due to weather, unsuitable conditions for testing or other circumstances beyond the Contractor’s control, as agreed upon by the Architect and Construction Manager. PAGE 28 Page 420 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 8 § 9.10.6 When the Contractor has completed or corrected all items on the final Punch List and considers that the Work is complete and ready for final acceptance, the Contractor must give written notice to the Owner and the Architect and request a final inspection of the Work as provided in Section 9.10.2. The Contractor’s notice and request for a final inspection must be accompanied by a final Application for Payment and the Submittals required by Section 9.10.3. § 9.10.7 Upon receipt of the Contractor’s notice and request for final inspection, the Owner and the Architect will promptly make such inspection and, when the Owner and the Architect concur that the Work has been fully completed and is acceptable under the Contract Documents, the Architect will issue a Certificate of Final Completion to the Owner. The Contractor’s notice and request for final inspection constitutes a representation by the Contractor to the Owner that the Work has been completed in full and strict accordance with terms and conditions of the Contract Documents. The Architect will promptly notify the Contractor if the Owner or the Architect do not concur that the Work is finally complete. In such case, the Contractor must bear the cost of any additional services of the Owner or the Architect until the Work is determined to be finally complete. PAGE 29 § 10.3.3 To the fullest extent permitted by law, the Owner shall indemnify and hold harmless the Contractor, Subcontractors, Construction Manager, Architect, their consultants, and agents and employees of any of them from and against claims, damages, losses, and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the Work in the affected area on Owner’s property if in fact the material or substance presents the risk of bodily injury or death as described in Section 10.3.1 and has not been rendered harmless, provided that such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), except to the extent that such damage, loss, or expense is due to the fault or negligence of the party seeking indemnity. PAGE 31 § 11.3.1 The Owner and Contractor waive all rights against (1) each other and any of their subcontractors, sub-subcontractors, agents, and employees, each of the other; (2) the Construction Manager and Construction Manager’s consultants; (3) the Architect and Architect’s consultants; (4) other Contractors and any of their subcontractors, sub-subcontractors, agents, and employees; and (5) Separate Contractors, if any, and any of their subcontractors, sub-subcontractors, agents, and employees, for damages caused by fire, or other causes of loss, to the extent those losses are covered by property insurance required by the Agreement Section 11.2 or other property insurance applicable to the Project, except such rights as they have to proceeds of such insurance. The Owner or Contractor, as appropriate, shall require similar written waivers in favor of the individuals and entities identified above from the Construction Manager, Construction Manager’s consultants, Architect, Architect’s consultants, other Contractors, Separate Contractors, subcontractors, and sub-subcontractors. The policies of insurance purchased and maintained by each person or entity agreeing to waive claims pursuant to this Section 11.3.1 shall not prohibit this waiver of subrogation. This waiver of subrogation shall be effective as to a person or entity (1) even though that person or entity would otherwise have a duty of indemnification, contractual or otherwise, (2) even though that person or entity did not pay the insurance premium directly or indirectly, or (3) whether or not the person or entity had an insurable interest in the damaged property. Notwithstanding the above, Owner does not waive its right to subrogate against (1) Contractor, any of its Subcontractors, Sub-Subcontractors, agents or employees for damages caused to non-Project related property, real or personal or both, at or adjacent to the site of the Project, caused by the negligent, intentional or other willful act or omission of the Contractor, any of its Subcontractors, Sub-Subcontractors, agents or employees; or against (2) the Architect, or Architect’s consultant, if any, for damages caused to non-Project related property, real or personal or both, at or adjacent to the site of the Project, caused by the negligent, intentional or other willful act or omission of the Architect, or Architect’s consultants, if any. PAGE 32 § 12.2.2.1 In addition to the Contractor’s obligations under Section 3.5, if, within one year after the date of Substantial Completion of the Work or designated portion thereof, or after the date for commencement of warranties established under Section 9.9.1, or by terms of any applicable special warranty required by the Contract Documents, any of the Work is found to be not in accordance with the requirements of the Contract Documents, the Contractor shall correct it promptly after receipt of notice from the Owner to do so, unless the Owner has previously given the Contractor a written acceptance of such condition. The Owner shall give such notice promptly after discovery of the condition. During the one-year period for correction of Work, if the Owner fails to notify the Contractor and give the Contractor an opportunity to make the correction, the Owner waives the rights to require correction by the Contractor and to make Page 421 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 9 a claim for breach of warranty. within a reasonable time after discovery of the condition, and such notice shall be within one year after substantial completion, or, for Work performed pursuant to Sections 12.2.2.2 and 12.2.2.3, within the one year following such Work or Corrective Work. If Owner fails to give notice to Contractor within these one-year periods, Owner waives its right to Corrective Work, but retains all other rights it may have under law for defective Work. During the period for correction of Work, the Owner shall give the Contractor a reasonable opportunity to make the correction. If the Contractor fails to correct nonconforming Work within a reasonable time during that period after receipt of notice from the Owner, Construction Manager or Architect, the Owner may correct it in accordance with Section 2.5. PAGE 33 § 12.2.2.3 The one-year period for correction of Work shall not be extended by corrective Work performed by the Contractor pursuant to this Section 12.2. With respect to any Corrective Work performed during the Correction Period, the Correction Period for that Corrective Work shall be extended for one year from the date the Corrective Work was completed. … The Contract shall be governed by the law of the place where the Project is located excluding that jurisdiction’s choice of law rules. If the parties have selected arbitration as the method of binding dispute resolution, the Federal Arbitration Act shall govern Section 15.4.located. PAGE 34 Payments due and unpaid under the Contract Documents shall bear interest from the date payment is due at the rate the parties agree upon in writing or, in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located.All payments to the Contractor shall be governed by the Prompt Payment of Local Government Bills, Minnesota Statutes, Section 471.125 ("Prompt Payment Act"), except that any of four (4) percent per annum. … .2 An act of government, such as a declaration of national emergency, that requires all Work to be stopped; or .3 Because the Construction Manager has not certified or the Architect has not issued a Certificate for Payment and has not notified the Contractor of the reason for withholding certification as provided in Section 9.4, or because the Owner has not made payment on a Certificate for Payment within the time stated in the Contract Documents; or .4 The Owner has failed to furnish to the Contractor reasonable evidence as required by Section 2.2.Documents. … § 14.1.3 If one of the reasons described in Section 14.1.1 or 14.1.2 exists, the Contractor may, upon seven days’ notice to the Owner, Construction Manager and Architect, terminate the Contract and recover from the Owner payment for Work executed, as well as reasonable overhead and profit on Work not executed, and and reasonable and substantiated costs incurred by reason of such termination. PAGE 35 § 14.1.5 No Right to Stop Work for Non-Payment. The Contractor has no right to stop Work as a consequence of non-payment. In the event of any disagreement between the Contractor and Owner involving the Contractor’s entitlement to payment, the Contractor’s only remedy is to file a Claim in accordance with Article 15. The Contractor must diligently proceed with the Work pending resolution of the Claim. If, however, an Application for Payment has been approved for payment by the Owner, and the Owner fails to make payment within sixty (60) days of the approval for payment by the Owner, the Contractor may upon ten (10) days written notice to the Owner, stop work if payment is not made by the Owner within ten (10) days following the notice. … Page 422 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 10 § 14.2.2 When any of the reasons described in Section 14.2.1 exist, after consultation with the Construction Manager, and upon certification by the Architect that sufficient cause exists to justify such action, the Owner may, without prejudice to any other rights or remedies of the Owner and after giving the Contractor and the Contractor’s surety, if any, seven days’ notice, terminate employment of the Contractor and may, subject to any prior rights of the surety: … § 14.3.2 The Contract Sum and the Contract Time shall be adjusted for increases in the cost and time caused by suspension, delay, or interruption under Section 14.3.1. Adjustment of the Contract Sum shall include profit. No adjustment shall be made to the extent: PAGE 36 § 15.1.1 Definition. A Claim is a demand or assertion by one of the parties the Contractor seeking, as a matter of right, payment of money, a change in the Contract Time, or other relief with respect to the terms of the Contract. The term "Claim" also includes other disputes and matters in question between the Owner and Contractor arising out of or relating to the Contract. The responsibility to substantiate Claims shall rest with the party making the Claim. Contractor. This Section 15.1.1 does not require the Owner to file a Claim in order to impose liquidated damages in accordance with the Contract Documents. Nothing in this paragraph 15.1.1 is intended to apply to or in any way limit the Owner’s right to make Claims related to or arising out of the Contract. … § 15.1.3.1 Claims by either the Owner or Contractor, where the condition giving rise to the Claim is first discovered prior to expiration of the period for correction of the Work set forth in Section 12.2.2, shall be initiated by written notice to the other party Owner and to the Initial Decision Maker with a copy sent to the Construction Manager and Architect, if the Architect is not serving as the Initial Decision Maker. Claims by either party Contractor under this Section 15.1.3.1 shall be initiated within 21 days after occurrence of the event giving rise to such Claim or within 21 days after the claimant first recognizes the condition giving rise to the Claim, whichever is later. As a condition to making a claim for additional costs, the Contractor shall maintain and produce accurate records to substantiate all additional costs actually incurred. If a Claim for actual costs is approved, the Owner shall pay the Contractor actual costs incurred, plus either (a) ten percent (10%) for overhead and profit for work performed by the Contractor, or (b) five percent (5%) overhead and profit for work performed by a Subcontractor, as applicable. PAGE 37 § 15.1.7 Waiver of Claims for Consequential Damages. The Contractor and Owner waive Claims against each other for consequential damages arising out of or relating to this Contract. This mutual waiver includes .1 damages incurred by the Owner for rental expenses, for losses of use, income, profit, financing, business and reputation, and for loss of management or employee productivity or of the services of such persons; and .2 damages incurred by the Contractor for principal office expenses including the compensation of personnel stationed there, for losses of financing, business and reputation, and for loss of profit except anticipated profit arising directly from the Work. This mutual waiver is applicable, without limitation, to all consequential damages due to either party’s termination in accordance with Article 14. Nothing contained in this Section 15.1.7 shall be deemed to preclude assessment of liquidated damages, when applicable, in accordance with the requirements of the Contract Documents. … § 15.2.6 Either party may file for mediation of an initial decision at any time, subject to the terms of Section 15.2.6.1.In the event of a Claim against the Contractor, the Owner may, but is not obligated to notify the surety, if any, of the nature and amount of the Claim. If the Claim relates to a possibility of a Contractor’s default, the Owner may, but is not obligated to notify the surety and request the surety’s assistance in resolving the controversy. Page 423 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 11 § 15.2.6.1 Either party may, within 30 days from the date of receipt of an initial decision, demand in writing that the other party file for mediation. If such a demand is made and the party receiving the demand fails to file for mediation within 30 days of receipt thereof, then both parties waive their rights to mediate or pursue binding dispute resolution proceedings with respect to the initial decision. § 15.2.7 In the event of a Claim against the Contractor, the Owner may, but is not obligated to, notify the surety, if any, of the nature and amount of the Claim. If the Claim relates to a possibility of a Contractor’s default, the Owner may, but is not obligated to, notify the surety and request the surety’s assistance in resolving the controversy. § 15.2.8 If a Claim relates to or is the subject of a mechanic’s lien, the party asserting such Claim may proceed in accordance with applicable law to comply with the lien notice or filing deadlines. § 15.3.1 Claims, disputes, or other matters in controversy arising out of or related to the Contract, except those waived as provided for in Sections 9.10.4, 9.10.5, and 15.1.7, shall be subject to mediation as a condition precedent to binding dispute resolution.Contract shall be subject to mediation. Mediation is not a condition precedent to commencing litigation but if litigation is commenced before mediation is held, the Parties agree to mediate before any dispositive motions or trial. § 15.3.2 The parties shall endeavor to resolve their Claims by mediation which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with its Construction Industry Mediation Procedures in effect on the date of the Agreement. A request for mediation shall be made in writing, delivered to the other party to the Contract, and filed with the person or entity administering the mediation. The request may be made concurrently with the filing of binding dispute resolution proceedings but, in such event, mediation shall proceed in advance of binding dispute resolution proceedings, which shall be stayed pending mediation for a period of 60 days from the date of filing, unless stayed for a longer period by agreement of the parties or court order. If an arbitration is stayed pursuant to this Section 15.3.2, the parties may nonetheless proceed to the selection of the arbitrator(s) and agree upon a schedule for later proceedings.share the mediator’s fee equally. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon. Agreements reached in mediation and ratified by the Owner’s Council shall be enforceable as settlement agreements in any court having jurisdiction thereof. § 15.3.3 Either party may, within 30 days from the date that mediation has been concluded without resolution of the dispute or 60 days after mediation has been demanded without resolution of the dispute, demand in writing that the other party file for binding dispute resolution. If such a demand is made and the party receiving the demand fails to file for binding dispute resolution within 60 days after receipt thereof, then both parties waive their rights to binding dispute resolution proceedings with respect to the initial decision. § 15.3.4 The parties shall share the mediator’s fee and any filing fees equally. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. § 15.4 Arbitration § 15.4.1 If the parties have selected arbitration as the method for binding dispute resolution in the Agreement, any Claim subject to, but not resolved by, mediation shall be subject to arbitration which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with its Construction Industry Arbitration Rules in effect on the date of the Agreement. The Arbitration shall be conducted in the place where the Project is located, unless another location is mutually agreed upon. A demand for arbitration shall be made in writing, delivered to the other party to the Contract, and filed with the person or entity administering the arbitration. The party filing a notice of demand for arbitration must assert in the demand all Claims then known to that party on which arbitration is permitted to be demanded. § 15.4.1.1 A demand for arbitration shall be made no earlier than concurrently with the filing of a request for mediation, but in no event shall it be made after the date when the institution of legal or equitable proceedings based on the Claim would be barred by the applicable statute of limitations. For statute of limitations purposes, receipt of a written demand for arbitration by the person or entity administering the arbitration shall constitute the institution of legal or equitable proceedings based on the Claim. Page 424 of 579 Additions and Deletions Report for AIA Document A232 – 2019. Copyright © 1992, 2009, and 2019. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 12 § 15.4.2 The award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. § 15.4.3 The foregoing agreement to arbitrate and other agreements to arbitrate with an additional person or entity duly consented to by parties to the Agreement, shall be specifically enforceable under applicable law in any court having jurisdiction thereof. § 15.4.4 Consolidation or Joinder § 15.4.4.1 Subject to the rules of the American Arbitration Association or other applicable arbitration rules, either party may consolidate an arbitration conducted under this Agreement with any other arbitration to which it is a party provided that (1) the arbitration agreement governing the other arbitration permits consolidation, (2) the arbitrations to be consolidated substantially involve common questions of law or fact, and (3) the arbitrations employ materially similar procedural rules and methods for selecting arbitrator(s). § 15.4.4.2 Subject to the rules of the American Arbitration Association or other applicable arbitration rules, either party may include by joinder persons or entities substantially involved in a common question of law or fact whose presence is required if complete relief is to be accorded in arbitration, provided that the party sought to be joined consents in writing to such joinder. Consent to arbitration involving an additional person or entity shall not constitute consent to arbitration of any claim, dispute or other matter in question not described in the written consent. ARTICLE 16 SPECIAL TERMS AND CONDITIONS Special terms and conditions that modify this Agreement are as follows: § 16.1 Record Keeping—Availability and Retention. Pursuant to Minnesota Statutes, Section 16C.05, subd. 5, Contractor agrees that the books, records, documents and accounting procedures and practices of Contractor, that are relevant to the Contract or transaction, are subject to examination by the Owner and the state auditor for a minimum of six (6) years. Contractor shall maintain such records for a minimum of six (6) years after final payment. § 16.2 Data Practices. Pursuant to Minnesota Statutes, Section 13.05, subd. 11, all of the data created, collected, received, stored, used, maintained, or disseminated by Contractor in performing this project is subject to the requirements of the Minnesota Government Data Practices Act ("MGDPA"), Minnesota Statutes Chapter 13, and Contractor must comply with those requirements as if it were a government entity. The remedies in Minnesota Statutes, Section 13.08 apply to Contractor. Contractor does not have a duty to provide access to public data to the public if the public data are available from the Owner. § 16.3 Non-Discrimination. Pursuant to Minnesota Statutes, Section 181.59, the Contractor will take affirmative action to ensure that applicants are selected, and that employees are treated during employment, without regard to their race, color, creed, religion, national origin, sex, sexual orientation, marital status, status with regard to public assistance, membership or activity in a local civil rights commission, disability or age. The Contractor agrees to be bound by the provisions of Minnesota Statutes, Section 181.59, that prohibits certain discriminatory practices and the terms of said section are incorporated into this contract. § 15.4.4.3 The Owner and Contractor grant to any person or entity made a party to an arbitration conducted under this Section 15.4, whether by joinder or consolidation, the same rights of joinder and consolidation as those of the Owner and Contractor under this Agreement. Page 425 of 579 AIA Document D401 – 2003. Copyright © 1992 and 2003. All rights reserved. “The American Institute of Architects,” “American Institute of Architects,” “AIA,” the AIA Logo, and “AIA Contract Documents” are trademarks of The American Institute of Architects. This document was produced at 11:45:47 on 10/10/2025 under Order No.20250106427 which expires on 02/22/2026, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail docinfo@aiacontracts.com. User Notes: (1362129258) 1 Certification of Document’s Authenticity AIA® Document D401™ – 2003 I, Jon Cramer, hereby certify, to the best of my knowledge, information and belief, that I created the attached final document simultaneously with its associated Additions and Deletions Report and this certification at 11:45:47 on 10/10/2025 under Order No. 20250106427 from AIA Contract Documents software and that in preparing the attached final document I made no changes to the original text of AIA® Document A232™ – 2019, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition, other than those additions and deletions shown in the associated Additions and Deletions Report. _____________________________________________________________ (Signed) _____________________________________________________________ (Title) _____________________________________________________________ (Dated) Page 426 of 579 Exhibit BPage 427 of 579 Exhibit CPage 428 of 579 Page 429 of 579 Section 00 24 00 SCOPES OF WORK Richfield Rink 2 Re-Roofing – BP#1 Addendum #2 00 24 00 - 1 SCOPES OF WORK PART 1 – GENERAL 1.01 - Instructions 1. Subcontractors should review all scopes of work and notify the Construction Manager of any missing, overlapping or unclear expectations. 2. Scope forms will be included as an exhibit to subcontracts and shall not be modified. 3. Complete the bid form as directed and attach ’0.0 - General Requirements for All Scope of Work’ and attached the scope(s) of work that are included in your proposal. 1.02 – Related Sections A. 00 41 00 - Bid Form PART 2 – WORK SCOPES 0.0 - General Requirements for All Scope of Work 1. Trade Contractor has reviewed Divisions 00 and 01 and includes all necessary costs to comply with the requirements of these sections. 2. Trade Contractor has reviewed all plans and specifications. 3. Trade Contractor to assume standard daytime working hours unless noted otherwise. 4. Trade Contractor shall field verify existing conditions for deficiencies, unsatisfactory conditions, unacceptable dimensional tolerances, and notify the Contractor of such prior to installing work. Repairs or corrections required due to unsatisfactory substrate, after acceptance shall be performed at the sole expense of this Trade Contractor. 5. Trade Contractor to coordinate with other Trade Contractors for all construction purposes. 6. Trade Contractor has cross referenced all General, Civil, Architectural, Structural, Mechanical, Electrical, and Demolition Drawings, and include all required costs for a complete scope per the bid packages and specification sections being proposed upon. If a discrepancy exists on the plans, either notify LoeƯler Construction & Consulting in writing prior to the bid date so that the issue can be resolved via an addendum, or include the more expensive option in the base bid. 7. LoeƯler Construction & Consulting will provide each Trade Contractor with electronic files of the plans and specifications. It will be this Trade Contractor’s responsibility to print hard copies of the plans and any subsequent change documents as needed if awarded the project. 8. At a minimum, Trade Contractor will comply with OSHA regulations and LoeƯler Construction & Consulting’s Safety Program during the course of the project (including leading edge retractable for all leading-edge work) Page 430 of 579 Section 00 24 00 SCOPES OF WORK Richfield Rink 2 Re-Roofing – BP#1 Addendum #2 00 24 00 - 2 SCOPES OF WORK 9. Trade Contractor must coordinate all work and deliveries with LoeƯler Construction & Consulting’s onsite Superintendent. 10. Trade Contractor shall store materials in a safe manner which will be secure, dry, and permit easy access for inspection and identification. Location shall be coordinated with the Contractor prior to delivery. 11. Trade Contractor agrees that storage space onsite is limited and not guaranteed, and if such storage is allowed, all items shall be relocated as necessary for the progress of the Work as determined by the Contractor. Such relocation shall be done by this Trade Contractor at no additional cost. 12. Trade Contractor is responsible for all oƯloading shall have on-site representation for receipt of all deliveries to include oƯloading. Any oƯloading performed by the Contractor shall be paid for by Trade Contractor. 13. Trade Contractor shall include all fees, permits, inspections, hoisting, lifting, scaƯolding, and equipment required to complete this Scope of Work. 14. LoeƯler makes no guarantee that temporary power will be operational at the start and duration of the Trade Contractors scope of work. Trade Contractors shall provide a means of power to perform their work, if temporary power is not available. 15. Trade Contractor shall take all necessary measures to protect existing construction and equipment from damage and shall repair damage caused by their employees and equipment. 16. Trade Contractor shall be responsible for the cost of re-work and re-inspection fees because of testing or inspection failure. 17. All Close-Out documents must be submitted to LoeƯler Construction & Consulting within 10 days of the project Substantial Completion date. Final payment and retainage will be held until all Close-Out documents have been received. All Close-Out documents shall be issued in both hard copy and electronic format (PDF). 18. Each Trade Contractor will provide daily cleaning of their work areas. Debris shall be placed in dumpsters provided by LoeƯler. This shall be coordinated with the Project Superintendent. If your company fails to meet this requirement, LoeƯler will back charge accordingly. 19. Trade Contractor Project Manager and their Foreman shall participate in a mandatory pre- installation meeting prior to beginning any work. 20. Trade Contractor understand that LoeƯler follows COVD-19 guidance as prepared by the CDC, OSHA and other public oƯicials. 21. Include multiple mobilizations as necessary to complete your respective scope(s) of work. 22. Trade Contractors performing any structural penetrations shall include GPR scanning prior to starting. Page 431 of 579 Section 00 24 00 SCOPES OF WORK Richfield Rink 2 Re-Roofing – BP#1 Addendum #2 00 24 00 - 3 SCOPES OF WORK 07.7 - Roofing Flashing & Sheet Metal Specifications Included: 06 10 53 07 01 50.19 07 53 23 07 62 00 07 72 00 07 92 00 Scope of Work: 1. Furnish and install complete EPDM roofing system for the per plans and specs. Includes demolition and removal of existing roofing system. Roofing Contractor is responsible for providing own dumpsters and disposal. 2. Include removal, furnish, and install fabricated sheet metal items including coping, caps, flashings, counter flashings, reglets, scuppers, gutters, and accessories. 3. Include all flashing, assemblies, sealants, clamp rings, pre-molded pipe flashing, target membrane, and heat fused patches as required to make the roof assembly water tight. 4. Include sacrificial layer of EPDM under all solar panel bases. Coordinate with solar contractor. Roofer shall have representative on-site during solar installation to witness and document installation. Provide documentation to ensure no damage to new roof membrane or warranty jeopardization. 5. Include supply and installation of all walkway pads as shown in plans in specifications. 6. Include roof curb modifications as required. Includes means for temporarily hoisting to facilitate modifications. 7. Include removal of existing roof hatch. 8. Include furnish and installation of new roof hatch with safety guardrail system in existing opening. Roof ladder by Others. 9. Includes all roof blocking called for in the plans and specifications. 10. Include roof accessories such as vent stacks and roof drain flashing. 11. Include the supply, erection, and dismantle of (1) exterior temporary stair tower for roof access. Includes lockable plywood enclosure. See updated logistics plan. 12. Include code compliant ballasted roof rail system for roofing work around mechanical equipment. See logistics plan. 13. Includes shoring and protection of fusion welded refrigerant lines in place as required to complete roofing work. 14. Include cold weather roofing means and methods per the construction schedule. 15. Trade Contractor to provide Manufactured Warranty and Documentation of warranty length per the specs. 16. Trade Contractor to coordinate and acquire any permits needed for this scope of work. 17. Trade Contractor shall provide OSHA approved fall protection systems as required for the duration of their work. 18. Include all testing requirements per the specifications for proper installation and warranty. Page 432 of 579 Section 00 24 00 SCOPES OF WORK Richfield Rink 2 Re-Roofing – BP#1 Addendum #2 00 24 00 - 4 SCOPES OF WORK 19. Trade Contractor to provide all means, methods, and equipment for loading / unloading / hoisting of materials for installation. 20. Include all construction aids, tools, equipment, hoisting, and material required to complete this scope of work. All temporary fencing shall be excluded by the Roofing Contractor. Temporary fencing will be provided by separate contractor. 21. Trade Contractors to provide access to the roof for their work and other Trade Contractors. 22. Trade Contractor acknowledges that storage onsite is limited and agrees that materials will be stored oƯsite until they are ready to be installed as determined by the LoeƯler Superintendent. 23. Include a (40) allowance for snow removal. To be utilized throughout the duration of the project at the direction and discretion of the Construction Manager Superintendent. Provide unit price ($/HR) below. 24. Include an additional $10,000 for labor and/or material for temporary enclosures, ties ins and additional roofing not currently shown on plans. To be utilized throughout the duration of the project at the direction and discretion of the Construction Manager Superintendent. Unit Prices: #: Description: Total Amount: Circle Add / Deduct: 1 Removal of damaged existing base 1-1/2” layer of Polyisocyanurate roofing insulation and 6 mil Vapor Barrier with replacement of new 1-1/2” polyisocyanurate (INS-1) and Vapor Barrier (VB-1) ($/SF) $ ADD 2 Replacement of wet or damaged existing acoustic deck acoustic insulation as per Section 05 31 00 “Steel Decking” ($/SF) $ ADD 3 Unit price per hour of snow removal ($/HR) $ ADD / DEDUCT Page 433 of 579 ID Task Name Duration Start Finish 0 Richfield Rink 2 Re-Roofing 95.5 daysFri 8/8/25 Wed 12/24/25 17 Preconstruction 81 days Fri 8/8/25 Wed 12/3/25 18 Design Services 35 days Fri 8/8/25 Mon 9/29/25 21 Trade Contractor Bidding 31 days Mon 9/15/25 Tue 10/28/25 22 Bidding Period 13 days Mon 9/15/25 Thu 10/2/25 23 City Council Approval 0 days Tue 10/14/25 Tue 10/14/25 24 Contracting & Permitting 10 days Tue 10/14/25 Tue 10/28/25 25 Procurement 25 days Tue 10/28/25 Wed 12/3/25 26 Roofing Materials & Hatch 2.5 wks Tue 10/28/25 Fri 11/14/25 27 Ships Ladder 5 wks Tue 10/28/25 Wed 12/3/25 1 Construction 49.5 daysTue 10/14/25 Wed 12/24/25 5 Solar Array 40.5 daysTue 10/14/25 Thu 12/11/25 6 Remove solar arrays 1 wk Tue 10/14/25 Tue 10/21/25 7 Reinstall solar arrays 1 wk Thu 12/4/25 Thu 12/11/25 2 Mobilization 1 day Mon 10/27/25 Tue 10/28/25 8 Roofing 35.5 daysMon 10/27/25 Wed 12/17/25 9 Temporary Fencing, Access, Make Safe & Rock Removal5 days Mon 10/27/25 Mon 11/3/25 10 Remove and replace roofing - Main Roof 17 days Mon 11/10/25 Thu 12/4/25 16 Install new roof hatch 2 days Tue 12/2/25 Thu 12/4/25 14 Install ships ladder (steel erector)2 days Thu 12/4/25 Mon 12/8/25 15 Support & protect lower roof refridgerent lines 1 day Thu 12/4/25 Fri 12/5/25 11 Remove and replace roofing - Lower Roof 8 days Fri 12/5/25 Wed 12/17/25 12 Install sheet metal coping & gutters 1 wk Fri 12/5/25 Fri 12/12/25 13 Remove temporary facilities & Demobilize 3 days Fri 12/12/25 Wed 12/17/25 3 Substantial Completion 0 days Wed 12/17/25 Wed 12/17/25 4 Punch List Corrections 5 days Wed 12/17/25 Wed 12/24/25 9/15 Bidding Period 10/14 City Council Approval 10/14 Contracting & Permitting 10/28 Roofing Materials & Hatch 10/28 Ships Ladder 10/14 Remove solar arrays 12/4 Reinstall solar arrays 10/27 Mobilization 10/27 Temporary Fencing, Access, Make Safe & Rock Removal 11/10 Remove and replace roofing - Main Roof 12/2 Install new roof hatch 12/4 Install ships ladder (steel erector) 12/4 Support & protect lower roof refridgerent lines 12/5 Remove and replace roofing - Lower Roof 12/5 Install sheet metal coping & gutters 12/12 Remove temporary facilities & Demobilize 12/17 Substantial Completion 12/17 Punch List Corrections Sep Oct Nov Dec Jan Qtr 4, 2025 Qtr 1, 2026 Richfield - Rink 2 Re-Roofing Bid Schedule Mon 9/29/25 Page 1 Page 434 of 579 Site Logistics & Staging - Richfield Rink 2 Roof Potential Solar Panel Staging Area. Perimeter enclosed by temporary fencing panels (by fencing contractor) Crane, dumpster and roofing material staging. Perimeter enclosed by temporary fencing panels (by fencing contractor). Temporary stair tower for roof access through project duration. Provide lockable plywood enclosure at stair tower base (by roofing contractor) Equipment and personnel access path Temporary fencing panels placed 10' away from building (by fencing contractor). Page 435 of 579 City Council Meeting 10/14/2025 Agenda Section: Consent Calendar Agenda Item: 7.f. Report Prepared By: Courtney Miller, Senior Analyst Department Director: Katie Rodriguez, City Manager Item for Consideration: Consider first reading of an ordinance imposing a tax on lodging and repealing and replacing in its entirety Chapter 14 of the Richfield Code of Ordinances. EXECUTIVE SUMMARY The proposed ordinance repeals and replaces Chapter XIV of the Richfield City Code related to the lodging tax. The purpose of this action is to align the City’s ordinance with current state law and authorize the Minnesota Department of Revenue to administer and collect the City’s local lodging tax on the City’s behalf, beginning January 1, 2026. Under Minnesota Statutes, Section 469.190, the City is authorized to impose a tax of up to three percent. The proposed ordinance maintains the existing three percent rate and updates definitions and administrative provisions to align with state sales and use tax laws. Transferring collection authority to the State will streamline administration, enhance compliance, and reduce the administrative burden on both local lodging operators and City staff. This ordinance complements the City Council’s recent adoption of the short-term rental licensing ordinance on September 23, 2025, which requires all short-term rental operators, both owner-occupied and non-owner-occupied, to obtain a City license. Together, these actions establish a clear regulatory and taxation framework for all lodging activities in Richfield. Current short-term rental owners will be notified of the new licensing process and the transition to state-administered lodging tax collection. Lodging tax revenues will continue to support tourism and marketing initiatives through the City’s designated tourism bureau, the Richfield Tourism and Promotion Board (Visit Richfield), in accordance with state statute. HISTORICAL CONTEXT The City of Richfield has long imposed a three percent lodging tax on hotels and similar establishments to support tourism and marketing efforts. Historically, the City collected this tax directly from operators. With the growth of short-term rentals and recent state authorization for centralized administration, the City is now transitioning lodging tax collection to the Minnesota Department of Revenue to ensure consistency and compliance across all lodging types. RECOMMENDED ACTION By motion: Approve first reading of an ordinance imposing a tax on lodging and Page 436 of 579 repealing and replacing in its entirety Chapter 14 of the Richfield Code of Ordinances. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Transferring lodging tax collection to the state ensures fair and consistent administration across all lodging types, including newly licensed short-term rentals. This change promotes equity among operators, reduces administrative burden, and supports the City’s goals of efficient and transparent governance. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) Minnesota Statutes, Section 469.190, authorizes cities to impose and delegate collection of a local lodging tax. The proposed ordinance repeals and replaces Chapter XIV of the Richfield City Code to align with this statute. The action also complements the City’s recently adopted Short-Term Rental Licensing Ordinance (adopted September 23, 2025). CRITICAL TIMING ISSUES State collection of the City’s lodging tax will begin January 1, 2026. To align with this transition, the City must adopt the updated ordinance this fall. Short-term rental license applications are due by November 14, 2025, to ensure compliance before the state assumes tax collection. FINANCIAL IMPACT The City’s three percent lodging tax rate will remain unchanged. Lodging tax revenues will continue to support tourism and marketing through the City’s designated tourism bureau. Transitioning tax collection to the state should improve compliance, thereby increasing revenue, and streamline administration. Per the City's agreement with the Richfield Tourism and Promotion Board (RTPB), 95% of the lodging tax is remitted to the tourism board to promote the City as a destination for visitors. LEGAL CONSIDERATIONS The ordinance is authorized under Minnesota Statutes, Section 469.190, which permits cities to impose a local lodging tax of up to three percent and to delegate collection to the Minnesota Department of Revenue. The repeal and replacement of Chapter XIV ensures consistency with state law and establishes clear authority for the State to collect the tax on the City’s behalf. ALTERNATIVE RECOMMENDATION(S) ATTACHMENTS 1. Proposed Lodging Tax Ordinance - First Reading Page 437 of 579 1 RC160\9\1051734.v3 BILL NO. _________ AN ORDINANCE IMPOSING A TAX ON LODGING AND REPEALING AND REPLACING IN ITS ENTIRETY CHAPTER XIV OF THE RICHFIELD CODE OF ORDINANCES THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Chapter XIV of the Richfield Code of Ordinances is repealed in its entirety. Section 2. A new Chapter XIV is adopted as follows: CHAPTER XIV - LODGING SECTION 1400. – TAX IMPOSED UPON LODGING 1400.01 – Authority. In accordance with Minnesota Statutes, section 469.190 the City of Richfield, Minnesota is authorized to impose a tax of up to three percent (3%) on gross receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of 30 days or more. 1400.02 – Definitions. Subdivision 1. The following words, terms, and phrases have the meanings given to them in this chapter unless the language or context clearly indicates a different meaning is intended. Minnesota Statutes, section 270C.171, is incorporated for definitions in this chapter. In any potential conflict between the statute and this chapter, the statute shall take precedence. Subd. 2. Commissioner. “Commissioner” means the commissioner of revenue of the state of Minnesota or a person to whom the commissioner has delegated functions. Subd. 3. City. “City” means the City of Richfield, Minnesota. Subd. 4. Lodging and related services. “Lodging and related services” means lodging and related services by a hotel, rooming house, resort, campground, vacation rental, motel, or trailer camp, including furnishing the guest of the facility with access to telecommunication services, and the granting of any similar license to use real property in a specific facility, other than the renting or leasing of it for a continuous period of 30 Page 438 of 579 2 days or more under an enforceable written agreement that may not be terminated without prior notice. Subd. 4a. Accommodations intermediary. “Accommodations intermediary” means any person or entity, other than an accommodations provider, that facilitates the sale of lodging as defined in subdivision 4, and that charges a room charge to a customer. The term “facilitates the sale” includes brokering, coordinating, or in any way arranging for the purchase of or the right to use accommodations by a customer. Subd. 4b. Accommodations provider. “Accommodations provider” means any person or entity that furnishes lodging and related services, as defined in subdivision 4, to the general public for compensation. The term “furnishes” includes the sale of use or possession, or the sale of the right to use or possess. Subd. 5. State sales and use tax laws and rules. “State sales and use tax laws and rules” means those provisions of the state revenue laws applicable to state sales and use tax imposition, administration, collection, and enforcement, including Minnesota Statutes, chapters 270C, 289A, 297A, 469A, and Minnesota Rules, chapter 8130, as amended from time to time. 1400.03 - Local Lodging Tax Imposed; Amount of Tax; Coordination with State Sales and Use Tax Laws and Rules. A local lodging tax is imposed in the amount of three percent (3%) on the gross receipts from sales of lodging and related services, as defined in subsection 1400.02, subdivision 4, sourced within City limits which are taxable under the state sales and use tax laws and rules. All of the provisions of the state sales and use tax laws and rules apply to the local sales and use tax imposed by this chapter. The local lodging tax imposed by this chapter shall be collected and remitted to the Commissioner by the accommodations provider on any sale when the state sales tax must be collected and remitted to the Commissioner under the state sales and use tax laws and rules and is in addition to the state sales and use tax. 1400.04 - Advertising no tax. It shall be unlawful for any accommodations intermediary or accommodations provider to advertise or hold out or state to the public or any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the accommodations intermediary or accommodations provider, or that it will not be added to the rent or that, if added, it or any part thereof will be refunded. Page 439 of 579 3 1400.05 - Use of proceeds. All of the revenues, interest, and penalties derived from the lodging tax imposed by this chapter collected by the Commissioner and remitted to the City shall be deposited by the City Finance Director in the City treasury and shall be credited to the fund established to pay the costs of collecting the lodging tax imposed by this chapter and to fund a local convention or tourism bureau. Section - 1400.06 - Agreement with the Commissioner. The City may enter into an agreement with the Commissioner regarding each party’s respective roles and responsibilities related to the imposition, administration, collection, enforcement, and termination of the lodging tax imposed by this chapter. Any such agreement shall not abrogate, alter, or otherwise conflict with the state sales and use tax laws and rules, this chapter, or Minnesota Statutes Section 469.190. Section 3. Severability. Every section, provision and part of this ordinance is declared severable from every other section, provision and part thereof. If any section, provision or part of this ordinance is held to be invalid by a court of competent jurisdiction, such judgment shall not invalidate any other section, provision or part of this ordinance. Section 4. Effective Date. This ordinance will be effective in accordance with Section 3.09 of the City Charter, and the tax imposed hereunder shall commence on [numerical day] day of [month], [year]. Adopted by the City of Richfield this _____ day of October 2025. ________________________________ Mary B. Supple, Mayor ATTEST: __________________________ Michelle Friedrich, City Clerk Page 440 of 579 City Council Meeting 10/14/2025 Agenda Section: Consent Calendar Agenda Item: 7.g. Report Prepared By: Jay Henthorne, Police Chief Department Director: Jay Henthorne, Police Chief Item for Consideration: Adopt Resolution authorizing acceptance of Office of Traffic Safety (OTS) Funds. The agreement extension was previously approved at the September 9 meeting, but the resolution was omitted from the staff report. EXECUTIVE SUMMARY Due to the council’s prior vote on September 9, 2025, the agreement has been executed, and adoption of the resolution is for recordkeeping purposes and acceptance of grant funds. Additional document attachments are included as reference to the resolution in this staff report. The National Highway Traffic Safety Administration (NHTSA) is providing federal funding to the OTS to implement a program to support one full-time officer solely for DWI enforcement. Eight counties, including Hennepin County, were chosen to receive grant funding. The grant is administered through the OTS. The grant was guaranteed for four years (2015-2019). However, the grant has been written for an additional federal fiscal year at a time for 2020, 2021, 2022, 2023, 2024, 2025, and now 2026. The City of Richfield has received an additional extension and has been awarded $138,374.93 for 2026. HISTORICAL CONTEXT The average number of DWI arrests per year in Richfield for the past 10 years is 253. • In 2016, Richfield had 26 alcohol related crashes. • In 2017, Richfield had 30 alcohol related crashes. • In 2018, Richfield had 35 alcohol related crashes. • In 2019, Richfield had 37 alcohol related crashes. • In 2020, Richfield had 32 alcohol related crashes. • In 2021, Richfield had 42 alcohol related crashes. • In 2022, Richfield had 40 alcohol related crashes. • In 2023, Richfield had 32 alcohol related crashes. • In 2024, Richfield had 49 alcohol related crashes. • From 01/01/2025-09/16/2025, Richfield had 20 alcohol related crashes. • Minnesota Motor Vehicle Crash Facts data show that the hours between 5:00 p.m. and 5:00 a.m. as having the highest concentration of alcohol related crashes. The DWI officer's work shift will be from 5:00 p.m. to 5:00 a.m. with a Page 441 of 579 minimum of two Fridays and two Saturdays per month to be a required part of the DWI officer's schedule. Statistics will be checked daily, including but not limited to: speed tickets, seat belt tickets, texting tickets, "Not a Drop" tickets and warnings associated with these statistics. Proactive criminal interdiction patrol would also be implemented. • The City of Richfield has been approved to receive $138,374.93 from the DWI Officer grant for 2026. RECOMMENDED ACTION BY MOTION: Adopt a resolution allowing the Richfield Department of Public Safety to accept a grant from the Office of Traffic Safety (OTS) for an extension on an original four-year grant to fully fund an officer dedicated for DWI enforcement in Richfield. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The Richfield Police Department will work to ensure this funding/agreement benefits the community as a whole, including low-income communities, communities of color, and the disability community. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) Public Safety does not accept financial support unless it is designated for a specific program that will affect the department as a whole. • The grant money will be used by Public Safety to pay for one full-time police officer salary; including overtime and/or training. • Minnesota Statute 465.03 requires that every acceptance of a grant or devise of real or personal property on terms prescribed by the donor be made by resolution of more than two-thirds majority of the City Council. • The Administrative Services Department issued a memo on November 9, 2004, requiring that all grants and restricted donations to departments be received by resolution and by a two-thirds majority of the City Council in accordance with Minnesota Statute 465.03. This is a routine request with no strategic outcome considerations. CRITICAL TIMING ISSUES The grant agreement has been executed and the resolution is for recordkeeping purposed and acceptance of grant funds. The total length of the grant was for four years, however, grants will be written for one federal fiscal year at a time and the City of Richfield has received an extension on an original four-year grant to fully fund an officer. FINANCIAL IMPACT • Federal guidelines require this money be spent on projects designed to reduce DWI incidents. Both the officer and majority of the equipment funded by the grant can only be used for the enforcement of laws prohibiting driving while impaired. If the DWI officer responds to, or is called to an incident for something other than Page 442 of 579 an alcohol-related driving offense, the time spent on non-DWI related enforcement exceeding 15 successive minutes must be paid for by the agency. The vehicle will be assigned to and driven solely by the DWI officer. • The Richfield Department of Public Safety has developed a work plan and budget that has been approved by the OTS. • The grant will cover one full-time sworn officer, and fringe benefits are covered by the grant. The Richfield Department of Public Safety has funds budgeted for items not covered by the grant. LEGAL CONSIDERATIONS ALTERNATIVE RECOMMENDATION(S) Not applicable. ATTACHMENTS 1. 2026_DWI_Resolution 2. Award Letter 3. 1282471_5015834-FY26RichfieldGrantAgreement 4. SFY_2012_EUDL_Grant_Certification_Regarding_Lobbying (3) Page 443 of 579 RESOLUTION NO. RESOLUTION AUTHORIZING THE DEPARTMENT OF PUBLIC SAFETY/POLICE TO ACCEPT GRANT MONIES FROM THE OFFICE OF TRAFFIC SAFETY IN THE AMOUNT OF $138,374.93 OR A LESSER AMOUNT, AS AWARDED BY THE DEPARTMENT OF PUBLIC SAFETY, TO FUND A POLICE OFFICER DEDICATED TO DWI ENFORCEMENT. WHEREAS, Richfield Police Department has been approved by the Office of Traffic Safety (OTS) to receive funds made available to eight Counties in the State of Minnesota through federal funding provided by the National Highway Traffic Safety Administration (NHTSA); and WHEREAS, Richfield is scheduled to be awarded $138,374.93 or a lesser amount as awarded by the Minnesota Department of Public Safety to be used as designated by the grant agreement which mandates that the funds be used to support one full time officer dedicated to DWI enforcement for an extension of the original term of four years; and, WHEREAS, Richfield has agreed that the Minnesota Department of Public Safety will serve as the fiscal agent; and, WHEREAS, in accordance with the agreement, squad operating costs per mile, maintenance, uniforms, weapons and time spent in excess of 15 minutes on non-DWI related calls will be covered by the Richfield Police Department; and, WHEREAS, Richfield Police has established an approved budget with the OTS for $138,374.93 or a lessor amount for the DWI enforcement program; and, NOW, THEREFORE, BE IT RESOLVED that the City of Richfield, Public Safety Department enter into a grant agreement with the Minnesota Department of Public Safety, for traffic safety enforcement projects during the period from October 1, 2025 to September 30, 2026. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October, 2025. Mary Supple, Mayor ATTEST: Michelle Friedrich, City Clerk Page 444 of 579 EQUAL OPPORTUNITY EMPLOYER Office of Traffic Safety 445 Minnesota Street • Suite 1620 • Saint Paul, Minnesota 55101 Phone: 651.201.7065 • TTY: 651.282.6555 ots.dps.mn.gov Alcohol and Gambling Enforcement Bureau of Criminal Apprehension Driver and Vehicle Services Emergency Communication Networks Homeland Security and Emergency Management Minnesota State Patrol Office of Communications Office of Justice Programs Office of Pipeline Safety Office of Traffic Safety State Fire Marshal MINNESOTA DEPARTMENT OF PUBLIC SAFETY September 4, 2025 Richfield Police Department 6700 Portland Avenue South Richfield, MN 55423 FY2026 DWI Traffic Safety Officer Grant Dear Chief Jay Henthorne, I am happy to announce that your agency’s application for the FY2026 DWI Traffic Safety Officer project submitted by Sergeant Steen has been awarded. The approved grant amount will be $138,374.93 for the period October 1, 2025 through September 30, 2026. In the coming days, the grant agreement will be created so it would be good to get this grant opportunity before your city council. I look forward to this continuing partnership! Sincerely, Michael Hanson, Director Department of Public Safety, Office of Traffic Safety By Duane Siedschlag Impaired Driving Program Coordinator Office of Traffic Safety Page 445 of 579 Grant Contract Agreement Page 1 of 2 DPS Grant Contract Agreement Non-State (rev. September 2022) Minnesota Department of Public Safety (“State”) Office of Traffic Safety 445 Minnesota Street, Suite 1620 Saint Paul, MN 55101 Grant Program: 2026 NHTSA: DWI / Traffic Safety Officer Grant Contract Agreement No.: A-OFFICR26-2026-RICHFPD-029 Grantee: Richfield Police Department 6700 Portland Avenue South Richfield, MN 55423-2560 Grant Contract Agreement Term: Effective Date: 10/01/2025 Expiration Date: 09/30/2026 Grantee’s Authorized Representative: Sergeant Matthew Steen 6700 Portland Avenue South Richfield, MN 55423-2560 (612)246-2375 msteen@richfieldmn.gov Grant Contract Agreement Amount: Original Agreement $ 138,374.93 Matching Requirement $ 0.00 State’s Authorized Representative: Duane Siedschlag, Impaired Driving Program Coordinator 445 Minnesota Street, Suite 1620 Saint Paul, MN 55101 (651)221-7078 Duane.siedschlag@state.mn.us Federal Funding: CFDA/ALN: 20.608 & 20.608 & 20.600 FAIN: 69A37525300001640MNA & 69A37525300001640MNA & 69A37525300004020MNO State Funding: N/A Special Conditions: None Under Minn. Stat. § 299A.01, Subd 2 (4) the State is empowered to enter into this grant contract agreement. Term: The creation and validity of this grant contract agreement conforms with Minn. Stat. § 16B.98 Subdivision 5. Effective date is the date shown above or the date the State obtains all required signatures under Minn. Stat. § 16B.98, Subdivision 7, whichever is later. Once this grant contract agreement is fully executed, the Grantee may claim reimbursement for expenditures incurred pursuant to the Payment clause of this grant contract agreement. Reimbursements will only be made for those expenditures made according to the terms of this grant contract agreement. Expiration date is the date shown above or until all obligations have been satisfactorily fulfilled, whichever occurs first. The Grantee, who is not a state employee, will: Perform and accomplish such purposes and activities as specified herein and in the Grantee’s approved 2026 NHTSA: DWI / Traffic Safety Officer Application [“Application”] which is incorporated by reference into this grant contract agreement and on file with the State at 445 Minnesota Street, Suite 620, Saint Paul, MN 55101. The Grantee shall also comply with all requirements referenced in the 2026 NHTSA: DWI / Traffic Safety Officer Guidelines and Application which includes the Terms and Conditions and Grant Program Guidelines (https://app.dps.mn.gov/EGrants), which are incorporated by reference into this grant contract agreement. Budget Revisions: The breakdown of costs of the Grantee’s Budget is contained in Exhibit A, which is attached and incorporated into this grant contract agreement. As stated in the Grantee’s Application and Grant Program Guidelines, the Grantee will submit a written change request for any substitution of budget items or any deviation and in accordance with the Grant Program Guidelines. Requests must be approved prior to any expenditure by the Grantee. Matching Requirements: (If applicable.) As stated in the Grantee’s Application, the Grantee certifies that the matching requirement will be met by the Grantee. Page 446 of 579 Grant Contract Agreement Page 2 of 2 DPS Grant Contract Agreement Non-State (rev. September 2022) Payment: As stated in the Grantee’s Application and Grant Program Guidance, the State will promptly pay the Grantee after the Grantee presents an invoice for the services actually performed and the State's Authorized Representative accepts the invoiced services and in accordance with the Grant Program Guidelines. Payment will not be made if the Grantee has not satisfied reporting requirements. Certification Regarding Lobbying: (If applicable.) Grantees receiving federal funds over $100,000.00 must complete and return the Certification Regarding Lobbying form provided by the State to the Grantee. 1. ENCUMBRANCE VERIFICATION 3. STATE AGENCY Individual certifies that funds have been encumbered as required by Minn. Stat. § 16A.15. Signed: _____________________________________________ (with delegated authority) Signed: _____________________________________________ Title: ______________________________________________ Date: _______________________________________________ Date: ______________________________________________ Grant Contract Agreement No./ P.O. No. A-OFFICR26-2026-RICHFPD-029 / 3000107376 Project No.26-03-03 2. GRANTEE The Grantee certifies that the appropriate person(s) have executed the grant contract agreement on behalf of the Grantee as required by applicable articles, bylaws, resolutions, or ordinances. Signed: _____________________________________________ Print Name: __________________________________________ Title: _______________________________________________ Date: _______________________________________________ Signed: ______________________________________________ Print Name: __________________________________________ Title: ________________________________________________ Date: ________________________________________________ Signed: ______________________________________________ Print Name: __________________________________________ Distribution: DPS/FAS Title: ________________________________________________ Grantee State’s Authorized Representative Date: ________________________________________________ Page 447 of 579 2026 DWI / Traffic Safety Officer Revised - EXHIBIT A Organization: Richfield Police Department A-OFFICR26-2026-RICHFPD-029 Budget Summary Budget Budget Category State Reimbursement Local Match Salary DWI Traffic Safety Officer salary $138,374.93 $0.00 Total $138,374.93 $0.00 Operating Expenses DWI Traffic Safety Officer time and mileage $0.00 $0.00 Total $0.00 $0.00 Total $138,374.93 $0.00 Page 1 of 109/17/2025 Page 448 of 579 CERTIFICATION REGARDING LOBBYING (For State of Minnesota Contracts and Grants over $100,000) The undersigned certifies, to the best of his or her knowledge and belief that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, A Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure of Lobbying Activities”, in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31 U.S.Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. __________________________________________ Organization Name __________________________________________ Name and Title of Official Signing for Organization By:_______________________________________ Signature of Official _____________________________________ Date Page 449 of 579 City Council Meeting 10/14/2025 Agenda Section: Consent Calendar Agenda Item: 7.h. Report Prepared By: Jay Henthorne, Police Chief Department Director: Jay Henthorne, Police Chief Item for Consideration: Consider approval to renew the contract with Chief's Towing, Inc., for Public Safety towing services for December 1, 2025 through November 30, 2027. EXECUTIVE SUMMARY The City of Richfield requires the services of a towing contractor to tow impounded vehicles/trailers as well as vehicles parked illegally during snow ordinance enforcement, etc. The current contract with Chief's Towing expires November 30, 2025. HISTORICAL CONTEXT • The City currently has a contract with Chief's Towing, Inc., for Public Safety towing services. • Chief's Towing, Inc., was awarded the contract for 2025 and would like to renew the contract for the years 2025-2027, as the contract expires on November 30, 2025. • The contract can be automatically renewed if both parties agree to the renewal and if Chief's notifies the City in writing, 30 days in advance of the expiration of the contract, that they wish to renew. RECOMMENDED ACTION By motion: Approve the renewal of the contract with Chief's Towing, Inc., 8610 Harriet Avenue South, Bloomington, MN, for Public Safety towing services for the period of December 1, 2025, through November 30, 2027. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The Richfield Police Department will work to ensure this funding/or this agreement benefits the community as a whole, including low-income communities, communities of color, and the disability community. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) • Chief's notified the City that they wish to renew the contract for 2025-2027. • The Public Safety Department wishes to renew the contract with Chief's Towing, Inc. • Contracts for services need not be competitively bid. • The contract has numerous conditions that must be met. Chief's Towing, Inc., is Page 450 of 579 a reputable, established towing business that meets all contract requirements. CRITICAL TIMING ISSUES • A six-month notice must be given by either party in writing to terminate the contact. • On December 1, 2025, Public Safety must have towing services. This is particularly important with the possibility of snow ordinance violations at any time. • Chief's is a large towing company that can handle the needs of Public Safety regarding seizure/impound vehicles and comply with City ordinances that a smaller company could not handle effectively. FINANCIAL IMPACT • There is adequate funding in the Public Safety budget to cover the costs. LEGAL CONSIDERATIONS • The City Attorney has reviewed and approved the past contract with Chief's Towing, Inc. ALTERNATIVE RECOMMENDATION(S) • Council could choose to not sign the contract; however, Public Safety must have towing and impounding services beginning December 1, 2025. ATTACHMENTS 1. Richfield towing rate proposal 12-1-2025 thru 11-30-2027 Page 451 of 579 City of Richfield, MN Proposed rates for TOWING, IMPOUNDING, STORAGE OF VEHICLES 12/01/2023 12/01/2025 thru thru 11/30/2025 11/30/2027 Towing of impounded cars, trucks (under 1 ton capacity), Motorcycles, all-terrain vehicles, snowmobiles and unattended Utility trailers towed within the City of Richfield .................................... $ 150.00 $ 150.00 Towing charge for the same from outside the City of Richfield ...................................................................................... $ 150.00 $ 150.00 Mileage charge for same ........................................................................... $ 4.50 $ 4.50 Towing of trucks (larger than 1 ton capacity) within the City of Richfield .................................................................................. $ 250.00 $ 250.00 Towing charge for same outside the City of Richfield ...................................................................................... $ 250.00 $ 250.00 Mileage charge for same ........................................................................... $ 4.50 $ 4.50 Use of Winch with a tow Car (Per hour) ............................................................................. $ 75.00 Min $ 75.00 Truck (Per hour) ......................................................................... $ 150.00 Min $ 150.00 Use of Dolly ...................................................................................... $ 50.00 $50.00 Use of low-bed trailer or truck (flatbed required) ..................................... $ 200.00 $ 200.00 Storage Charges First 24 hours or fraction thereof: Inside Storage ............................................................... $ 50.00 $ 75.00 Outside Storage ............................................................ $ 45.00 $ 50.00 Each additional 24 hours or fraction thereof: Inside Storage ............................................................................. $ 50.00 $ 75.00 Outside Storage ........................................................................... $ 45.00 $ 50.00 Forfeitures Vehicles forfeited to the City of Richfield (includes 3 days Storage) $ 162.90 *no change* City owned vehicles Towing city owned vehicle less than 1 ton within city of Richfield ......... $ 60.00 $ 75.00 Mileage charge for same outside city ........................................................ $ 4.50 Page 452 of 579 City Council Meeting 10/14/2025 Agenda Section: Consent Calendar Agenda Item: 7.i. Report Prepared By: Jay Henthorne, Police Chief Department Director: Jay Henthorne, Police Chief Item for Consideration: Consider the Joint Powers Agreement to enable Richfield to provide an alternative response for selective 911 calls in a manner that most effectively and efficiently supports and protects the physical, mental and behavioral health of individuals in the Cities of Richfield and Edina. EXECUTIVE SUMMARY The Richfield Department of Public Safety currently has two embedded social workers. This Joint Powers Agreement enables Richfield to provide an alternative response for selective 911 calls in a manner that most effectively and efficiently supports and protects the physical, mental and behavioral health of individuals in Cities of Richfield and Edina. HISTORICAL CONTEXT One social worker has been assigned to the alternative response team along with an Edina Paramedic. This is a project the two Cities have working on for the past couple years. RECOMMENDED ACTION By motion: Approve the Joint Powers Agreement which enables Richfield to provide an alternative response for selective 911 calls in a matter that most effectively and efficiently supports and protects the physical, mental and behavioral health of individuals in the Cities of Richfield and Edina. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The Richfield Police Department will work to ensure this funding/or this agreement benefits the community as a whole, including low-income communities, communities of color, and the disability community. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) CRITICAL TIMING ISSUES This JPA was signed by the City of Edina on May 21, 2024. In order to move through the continued development of the program we will need to move forward. FINANCIAL IMPACT Page 453 of 579 The City of Richfield will be paying for the social worker while the City of Edina will be paying for the paramedic. LEGAL CONSIDERATIONS The City attorney has reviewed the last joint powers agreement. ALTERNATIVE RECOMMENDATION(S) None ATTACHMENTS 1. Edina Richfield ART JPA A2412190 amend 1 - Edina signed Page 454 of 579 HC # A2412190 1 AMENDMENT #1 TO JOINT POWERS AGREEMENT BETWEEN HENNEPIN COUNTY, CITY OF EDINA, AND CITY OF RICHFIELD This Joint Powers Agreement (“Agreement”) is made and entered into by and between the County of Hennepin, Minnesota (“COUNTY”) on behalf of its Human Services and Public Health Department (“HSPHD”) 300 South Sixth Street, Minneapolis, Minnesota 55487; City of Edina (“EDINA”), 4801 West 50th Street, Edina, Minnesota 55424; on behalf of its Police, Fire and 911 Dispatch departments; and City of Richfield (“RICHFIELD”), 6700 Portland Avenue, Richfield, Minnesota 55423, on behalf of its Police and Fire departments, and pursuant to the authority conferred upon them by Minn. Stat. § 471.59. EDINA’s 911 Dispatch department may be referred to as “DISPATCH”. EDINA and RICHFIELD may be collectively referred to as “CITIES”. CITIES’ Police departments may be collectively be referred to as “POLICE DEPARTMENTS” and CITIES’ Fire departments may be collectively referred to as “FIRE DEPARTMENTS”. POLICE DEPARTMENTS together with FIRE DEPARTMENTS and DISPATCH may collectively be referred to as “DEPARTMENTS”. The parties to this Agreement may also be referred to individually as “Party” and collectively as “Parties”. IT IS HEREBY AGREED that Agreement #A2412190 between the above-named parties, including prior amendments if any, is hereby amended in accordance with the provisions set forth below. Clause 3, TERM OF THE AGREEMENT, shall be amended to read: 3. TERM OF THE AGREEMENT The term of this Agreement shall be from May 1, 2024, through December 31, 2027, unless terminated earlier in accordance with the provisions of this Agreement. Clause 4, PAYMENT, paragraph A., shall be amended to read: 4. PAYMENT A. In accordance with the provisions herein, RICHFIELD shall pay COUNTY as follows for one (1.0) Full-Time Equivalent (FTE) Social Worker (“SW”), as that term is defined in Exhibit A, employed by COUNTY. 1. For the period May1, 2024, through December 31, 2024, RICHFIELD shall pay COUNTY Forty-Eight Thousand Four Hundred Seventy-One dollars ($48,471). 2. For the period of January 1, 2025, through December 31, 2025, RICHFIELD shall pay COUNTY Seventy-Two Thousand Seven Hundred Six dollars ($72,706). 3. For the period of January 1, 2026, through December 31, 2026, RICHFIELD shall pay COUNTY Eighty-Eight Thousand Four Hundred Thirty-One dollars ($88,431). Page 455 of 579 HC # A2412190 2 4. For the period of January 1, 2027, through December 31, 2027, total payments by RICHFIELD to COUNTY are to be determined. Clause 14, NOTICES, shall be amended to read: 14. NOTICES Unless the Parties otherwise agree in writing, any notice or demand which must be given or made by a Party under this Agreement or any statute or ordinance shall be in writing and shall be sent registered or certified mail. Notices to COUNTY shall be sent to the County Administrator at the address given in the opening paragraph of this Agreement with copies to HSPHD as detailed below. Notices to DEPARTMENTS shall be sent to the address stated in the opening paragraph of this Agreement with a copy to POLICE DEPARTMENTS and to FIRE DEPARTMENTS as detailed below. HSPHD: Leah Kaiser Director of Behavioral Health Hennepin County Human Services and Public Health Department 300 South 6th Street Minneapolis, Minnesota 55487 EDINA: Todd Milburn Chief of Police Edina Police Department 4801 West 50th Street Edina, Minnesota 55424 tmilburn@edinamn.gov Andrew Slama Edina Fire Chief Edina Fire Department 6250 Tracy Ave Edina, MN 55436 aslama@edinamn.gov RICHFIELD: Jay Henthorne Director of Public Safety/Chief of Police Richfield Police Department 6700 Portland Avenue Richfield, Minnesota 55423 Jenell Brooks Fire Chief City of Richfield 6700 Portland Avenue Page 456 of 579 HC # A2412190 3 Richfield, Minnesota 55423 This amendment shall be effective December 31, 2025. Except as herein amended, the terms, conditions and provisions of said Contract #A2412190, including prior amendments or ministerial adjustments if any, shall remain in full force and effect. (The remainder of this page intentionally left blank.) Page 457 of 579 HC # A2412190 4 The Parties hereto agree to be bound by the provisions set forth in this Agreement. Reviewed for HSPHD by the County Attorney’s Office: ______________________________ Date: ________________________ _______________________________ Date: __________________________ COUNTY OF HENNEPIN STATE OF MINNESOTA By: Chair of Its County Board ATTEST: Deputy/Clerk of County Board And: County Administrator Date: CITY OF EDINA By: ______________________________________ Title: James B. Hovland, Mayor Date: __09/16/25___________________________ By: ______________________________________ Title: Scott H. Neal, City Manager Date: ___09/16/25__________________________ CITY OF RICHFIELD By: ______________________________________ Title: Date: _____________________________________ By: ______________________________________ Title: ____________________________________ Date: _____________________________________ Scott Neal (Sep 20, 2025 16:59:15 CDT) Page 458 of 579 City Council Meeting 10/14/2025 Agenda Section: Consent Calendar Agenda Item: 7.j. Report Prepared By: Sam Crosby, City Planner Department Director: Melissa Poehlman, Community Development Director Item for Consideration: Site Plan Approval for 7424 Lyndale Ave S – Conversion to Retail EXECUTIVE SUMMARY Nathan Bruen-O’Brien, dba Lion Cannabis, LLC has requested site plan approval in order to convert the existing building at 7424 Lyndale Avenue South into a retail use. Retail sales are a permitted use in the C-2 zoning district; however, the parcel was previously a service establishment, and a change of use triggers site plan approval. Site plan approval is required in order to bring exterior improvements into conformance with the current Zoning Code to the extent possible. The proposed improvements primarily affect the parking lot, which will be reduced in size to meet setbacks. Parking lot upgrades include seal-coating, restriping, perimeter landscaping, EV charging stations, and an ADA-compliant access ramp and parking stall. No variances are requested. The Planning Commission recommended that a 6-foot tall privacy fence be provided along the south property line, which is adjacent to residential. With that one addition to the conditions of approval, the Commission unanimously recommended approval of the request. Staff recommends approval. HISTORICAL CONTEXT Planning Commission Five written comments were received prior to the public hearing, all of which were forwarded to the Commission (see attached). Three neighbors spoke at the public hearing and expressed concerns regarding traffic and pedestrian safety. After discussing fence heights and locations, the Commission decided to require that the 6- foot tall privacy fence continue along the south property line — which is also adjacent to residential, but multifamily rather than single-family. Commissioner Surma asked that the Commission’s concerns regarding equity in fence requirements be passed along to the Council. Commissioner Taraldsen asked that the residents’ concerns about traffic be passed along as well (see below). Post Planning Commission Page 459 of 579 Staff reached out to the management and ownership of the apartment building to the south regarding the potential fence along the shared lot line. They are in favor of, and would appreciate, the Commission-recommended fence. In response to questions during the Planning Commission meeting, staff included a condition in the resolution relating to the non-conforming status of the freestanding monument sign. The Traffic Control Committee received two requests: • One for additional parking restrictions along 75th Street, near the intersection of Aldrich Avenue. The Committee discussed three options: no action, additional permanent restrictions at the intersection, and seasonal restrictions along the south side of 75th Street. The Committee chose to collect more data (traffic counts, pedestrian and parking observations) to study the issue further before making a formal recommendation at a future meeting. • Another inquiry was submitted regarding the in-pavement crosswalk lights that are damaged and not working. Public Works has looked at replacing them in the past, but the vendor does not make this product anymore and there was not a suitable substitute. According to the Traffic Control Committee, they are not viable in northern climates; the issue isn’t snowplows, it’s salt plus the freeze/thaw that caused them to crack and corrode. Background • According to Hennepin County, the building was constructed in 1950. It appears to have originally served as a single-family home. • The 2020 Comp Plan Map (adopted in 1970) shows the land use as medium density residential. • A permit for a freestanding sign issued in 1981 suggests the building was converted to commercial use around that time. • The property was rezoned to C-2 in 1999. • The most recent use was Gentleman’s Choice hair replacement, which has been closed for over a year, so any previous approvals have expired. RECOMMENDED ACTION By motion: Adopt a resolution approving the proposed site plan to convert the existing building at 7424 Lyndale Avenue South to retail sales. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Equity: The proposed improvements include accessibility features such as an access ramp, and an ADA parking stall that meet current guidelines. While the applicant holds social equity status with the Office of Cannabis Management, it is important to note that land use decisions must be based solely on site characteristics and zoning compliance, not applicant identity. Strategic Plan: This proposal aligns with the City’s goals by: • Diversifies the tax base by accommodating a new business type. Page 460 of 579 • Supports sustainability, including: 1. The addition of an EV changer, 2. The increase in landscaping, 3. The reduction of hard surface 4. The reuse of an existing building (rather than demolition and new construction). POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) Traffic: While trip generation data specific to cannabis retailers is not yet available, staff anticipates traffic will be comparable to a tobacco shop; which is an increase from the previous use, but not significant enough to require a traffic study. All access is via Lyndale Avenue, a roadway designed to accommodate higher traffic volumes than it currently experiences. Zoning Compliance: • Section 534.11 establishes the dimensional requirements for the C-2 zoning district. The project meets parking lot setback requirements, as well as impervious surface limits. The building does not meet the front yard setback requirement, but this is an existing, legally nonconforming condition that is impractical to remedy. • Section 544 establishes general building and performance standards, which include landscaping, parking, screening, and architectural requirements. The site improvements being provided to meet these requirements include: o Relocated main entrance to face Lyndale Avenue. o A pedestrian connection to the public sidewalk. o Bike racks and decorative lighting. o New foundation plantings for enhanced visual appeal. o Minor catch-basin changes. o A 6-foot tall wooden privacy fence along the west property line. • The existing sign face does not meet the 5-foot setback from the property line, but it complies with the 14-foot setback from the right-of-way line. It is in good, reusable condition and the location has not created any issues for over 40 years. Therefore, a replacement is not being requested at this time, but will be once the frame of the sign face is eventually replaced. • Section 547.13 establishes various criteria and standards for site plan review. The proposed site plan meets these requirements, as outlined by the attached findings of fact, which provide further support for approval. Discretion: Site plan approval must be granted if the proposal meets performance standards. The City’s discretion is limited to evaluating compliance with established criteria. CRITICAL TIMING ISSUES 60-DAY RULE: Page 461 of 579 • Application deemed complete: August 26, 2025. • 60-day deadline: October 25, 2025. • A decision is required by this date, or the City must notify the applicant that it is extending the deadline (up to a maximum of 60 additional days or 120 days total). FINANCIAL IMPACT None; all required application fees have been paid. LEGAL CONSIDERATIONS The public hearing was held on Monday, September 22nd, and the Planning Commission unanimously recommended approval. Notice of the public hearing was published in the Sun Current on September 11, 2025 and mailed to properties within 350 feet of the site. ALTERNATIVE RECOMMENDATION(S) Recommend approval with additional and/or modified stipulations. Recommend denial with findings that the proposal does not meet City requirements. ATTACHMENTS 1. 101425 - Lion Cannabis SPA - Revised Reso 2. Lion Cannabis - Complete Ltr - 09-03-25 3. Lion Cannabis - Required Findings 4. 2025-09-03 - LIONS PLAN SET 5. Lion C - Zoning & Location Map 6. Written Comments Combined Page 462 of 579 RESOLUTION NO. ______ RESOLUTION APPROVING A SITE PLAN FOR 7424 LYNDALE AVENUE SOUTH WHEREAS, an application has been filed by Nathan Bruen-O’Brien dba Lion Cannabis LLC, with the City of Richfield which requests approval of a proposed site plan in order to convert the existing building at 7424 Lyndale Avenue South into retail, property legally described as follows: Lot 5, except the North 10 feet thereof, and Lots 6 and 7, Block 10, “Irwin Shore Village of Richfield, Hennepin County Minn” according to the recorded plat thereof, and situate in Hennepin County, Minnesota. WHEREAS, Zoning Code section 509.25, Subd.7, requires that non-conforming site improvements be upgraded to comply with current code to the extent practical; and WHEREAS, the proposed site plan meets the requirements necessary for granting site plan approval as specified in Zoning Code Section 547.13, Subdivision 8, as detailed in City Council Staff Report No.____; and WHEREAS, notice of the public hearing was mailed to properties within 350 feet of the subject property and published in the Sun Current newspaper on September 11, 2025; and, WHEREAS, the Planning Commission of the City of Richfield held a public hearing at its September 22, 2025, meeting and recommended approval of the proposed site plan; and WHEREAS, the City Council has fully considered the request for site plan approval; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. The City Council adopts as its Findings of Fact the WHEREAS clauses set forth above. 2. The City Council further adopts as its Findings of Fact the findings listed in the Required Findings Statement. 3. The proposed site plan is hereby approved subject to the following conditions: Page 463 of 579 a. Separate sign permits are required for signage greater than 6 square feet in size. b. All required parking spaces must remain available and un-obstructed year- round; they may not be used for snow storage. c. The property owner is responsible for the ongoing maintenance of all exterior improvements, including landscaping, in accordance with approved plans. d. In regards to the non-conforming freestanding sign, it may remain for the life of the structure. Once the frame of the sign face is in need of replacement, it shall be redesigned to comply with the five-foot setback requirement. Prior to the issuance of a building permit, the applicant shall: e. Obtain all required permits, comply with all requirements detailed in the City’s Complete Letter, dated Sept. 3, 2025, and comply with all other City, County and State regulations. f. Amend the plans to provide a 6-foot tall privacy fence along the south property line. The fence shall meet the zoning code requirements, which include the finished side facing out, and not extending into the front yard. g. Provide final site and landscape plans for staff review and approval. h. Revise the site plan to show a minimum parking lot setback of eight (8) feet from the front (east) property line. i. If the subject parcels have been legally combined, the applicant shall submit satisfactory evidence to the City Attorney. If not, a quit claim deed combining the parcels must be approved (by the City) and recorded (by the County) prior to permit issuance. Prior to the issuance of a Certificate of Occupancy, the applicant shall: j. Enter into an escrow agreement for outstanding items and provide a surety equal to 125% of the value of any improvements not yet complete, per Zoning Code Section 547.17. Prior to the release of the surety: k. All exterior improvements shall be installed. l. All requirements of the escrow agreement shall be met. Page 464 of 579 4. This approval shall expire one year from issuance unless the use for which the permit was granted has commenced, substantial work has been completed or upon written request by the applicant, the Council extends the expiration date for an additional period, as required by the Zoning Ordinance, Section 547.13, Subd. 9. Adopted by the City Council of the City of Richfield, Minnesota this ___ day of October, 2025. Mary B. Supple, Mayor ATTEST: Michelle Friedrich, City Clerk Page 465 of 579 Community Development Department Planning & Zoning 6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423. | PHONE: 612.861.9764 WWW.RICHFIELDMN.GOV | AN EQUAL OPPORTUNITY EMPLOYER MAYOR MARY SUPPLE CITY COUNCIL WALTER BURK SHARON CHRISTENSEN RORI A. COLEMAN- WOODS SEAN HAYFORD OLEARY CITY MANAGER KATIE RODRIGUEZ September 3, 2025 Lion Cannabis LLC 7424 Lyndale Ave S Richfield MN 55423 SUBJECT: Complete Letter - Site Plan Approval ADDRESS: 7424 Lyndale Ave S CASE NO: Z25-000005 On Tuesday, August 26th, the one item that was outstanding was addressed, and therefore the above-reference application is now deemed complete. The 60-day review period will end on October 25, 2025. The application is now scheduled for a public hearing at the September 22nd Planning Commission meeting, and will likely be decided at the October 14th City Council. Both meetings start at 7:00 pm in the Council Chambers at Richfield City Hall. You or a representative must be present to answer any questions that staff is unable to answer. I will likely email you the documents related to the meetings in advance of the meetings. However, the staff report and relevant attachments will also be available online by noon on the Friday prior to the meetings. For the Planning Commission, at: https://www.richfieldmn.gov/city_government/planning_commission/agendas_and_minute s.php and for the City Council, at: www.richfieldmn.gov/city_government/city_council/agendas_and_minutes.php Select the packet for the date of the meeting and scroll through to find your item. As previously discussed, below are the comments from the Administrative Review Committee (ARC) which will be attached to staff’s recommendation as conditions of approval, to be satisfied prior to the issuance of a building permit: Engineering, Public Works, Utilities Engineering: Joe Powers, City Engineer, Ph. 612-861-9791 Olivia Wycklendt, Engineer, Ph. 612-861-9789 Utilities: Chad Donnelly (Butch), Ph. 612-861-9798 Stormwater: Mattias Oddsson, Water Resources Engineer, Ph. 612-861-9797 ▪ No changes to the existing parking lot grade are proposed. While not anticipated, an erosion control plan is required for any land disturbance greater than 5000 ft^2. ▪ Show locations of existing water service valves and existing catch basin at SE corner of lot on the site plan. Page 466 of 579 Lion Cannabis SPA Complete Letter Sept. 3, 2025 Page 2 ▪ The catch basin is in area shown for pavement removal, so suggest either relocating the catch basin, or installing an apron from the parking lot pavement to the catch basin. Construction details subject to city staff review and approval. ▪ Please specify the proposed curb type. Planning/Zoning Sam Crosby, City Planner, Ph: 612-861-9776 ▪ A bike rack detail is required. Please include in the plans with a notation of manufacturer's installation specifications. ▪ Provide a detail for the privacy fence. The finished side of fence must face out, or fence must be two-sided. ▪ Provide EV charger installation detail to show compliance with City and manufacturer's installation requirements. ▪ Provide spec sheet for new street lamp fixtures, including pole height. Please note that the max height is 20 feet, and that direct off-site views of the light source are only permitted if impacts are mitigated by location or fixture design. Also, please note that - for both the EV charger and the light fixtures - the electrical permit are now issued through the state. ▪ Shrubs are required to be at least five gallon in size. Please include the shrub sizes in the plan. ▪ Not more than 25 percent of the required trees shall be comprised of one species. Currently seven of the seven new trees proposed are maples. Please diversify the plantings accordingly. (We would actually recommend against using maples – while they are technically allowed, they are over-planted in this area, which creates a vulnerability.) ▪ Final landscape plan and details subject to city staff review and approval. ▪ Parking stalls must have concrete stop bars for cars if no curb is proposed. ▪ Just a reminder - you will need the neighbor’s permission to enter their property to complete the removals. Sustainability Rachel Lindholm, Sustainability Specialist, Ph. 612-861-9188 ▪ I highly encourage the reduction of the parking lot/asphalt area from 11 down to the required 7. This business use doesn’t lend itself to customers using the lot for extended periods of time. There are numerous stormwater and urban heat island reduction benefits with minimizing pavement too. I’d be happy to try to calculate benefits of reduction of this amount of pavement if that would be helpful. Page 467 of 579 Lion Cannabis SPA Complete Letter Sept. 3, 2025 Page 3 Environmental Health Department Dan Devers, Inspector, Ph. 952-563-8975 ▪ If any food or beverages are to be sold or provided - even pre-packaged foods and beverages - an Environmental Health Plan Review and food establishment license will be required. In the case of pre-packaged foods that are supplemental to a primarily non-food business, this review and licensure would likely be handled by the Minnesota Department of Agriculture. Fire Department Jenell Wood, Fire Chief, Ph. 612-861-0661 ▪ Approved as submitted: Group B occupancy; 1,824 sq ft single-use suite; no hazardous materials disclosed; no extraction equipment or Group H conditions present. Sprinkler system not required per MSFC 2020. Portable fire extinguishers shall be installed as required by Sections 906.1 through 906.11 in MNSFC 2020. Must meet egress and storage requirement upon final inspection. Review subject to change if operations or use type changes. Building Inspections Chad Lunder, Chief Building Official, Ph. 612-861-9862 ▪ Permits required for all remodeling to include interior, exterior accessible ramp and striping of accessible parking locations ▪ Second floor area not to be used for public access unless it is brought up to code. If you have questions on a particular item, please contact the staff person(s) indicated. If you have any other questions regarding the process in general, please call or email me any time. I can be reached at either (612) 861-9776 or scrosby@richfieldmn.gov. Sincerely, Sam Crosby City Planner Page 468 of 579 Required Findings Lion Cannabis / 7424 Lyndale Avenue South Site Plan Approval (Subsection 547.13) In evaluating a site plan, the Planning Commission and Council shall consider its compliance with the following: a) Consistency with the various elements and objectives of the City’s long range plans including, but not limited to, the Comprehensive Plan. • The proposed site is not included in any small area or other long-range plans separate from the Comp Plan. The use is consistent with the 2040 Comprehensive Plan. b) Consistency with the purposes of the Zoning Code. • The proposed use is allowed in the C-2 zoning district, is consistent with the Zoning Code’s building and performance standards. and there are no variances or deviations being requested. c) Preservation of the site in its natural state, insofar as practicable, by minimizing tree and soil removal, and designing any grade changes so as to be in keeping with the general appearance of neighboring areas. • The majority of the site is greenspace and all existing trees will be protected. The applicant proposes to reduce the amount of hard-surface on site, which will have the stormwater and urban heat island reduction benefits that come from minimizing pavement. d) Creation of a harmonious relationship of buildings and open spaces with the terrain and with existing and future buildings having a visual relationship to the proposed development. • The building is existing and not many changes are proposed, but the connection to the public sidewalk and the ADA accessibility will be improved. e) Creation of a functional and harmonious design for structures and site features including: i. Creation of an internal sense of order for the various functions and buildings on the site and provision of a desirable environment for occupants, visitors, and the general community; • The site layout is existing, but the proposed improvements will help create a more orderly site circulation and a more-desirable environment in general. ii. Appropriateness of the amount and arrangement of open space and landscaping to the design and function of the development; • Being as the majority of the site will be pervious (72.5%), the amount is more than sufficient. • The landscaping will be significantly improved to meet current code standards. iii. Appropriateness of the materials, textures, colors and details of construction as an expression of the design concept of the project and the compatibility of the same with the adjacent and neighboring structures and functions; • The building is existing with very few changes. The existing awning will be removed, allowing greater visibility of the main/street-facing entrance. Page 469 of 579 iv. Adequacy of vehicular, cycling and pedestrian circulation, including walkways, interior drives and parking, in terms of location and number of access points to the public streets, width of interior drives and access points, general interior circulation, separation of pedestrian, cycling and vehicular traffic and arrangement and amount of parking so as to be safe, convenient and, insofar as practicable, compatible with the design of proposed buildings, structures and neighboring properties. • The proposal improves the site in all of the above-listed ways, by: o Providing missing bicycle parking, o Providing an ADA compliant ramp and parking stall o Reducing the parking lot size to reducing backing-out conflicts o Providing a pedestrian connection to the public sidewalk o Reducing the access opening to the width of the curb cut • The arrangement of access (both vehicular and non-vehicular) and parking is generally safe, convenient and compatible with surrounding properties. f) Creation of an energy-conserving design through design location, orientation and elevation of structures, the use and location of glass in structures, and the use of landscape materials and site grading. • The reduction of the parking lot/asphalt area has stormwater and urban heat island reduction benefits. • The landscape plan is well designed, and the additional trees and shrubs will help mitigate the effects climate change/rising temperatures. g) Protection of adjacent and neighboring properties through reasonable provisions for such matters as surface water drainage, sound and sight buffers, preservation of views, light and air, and those aspects of design, not adequately covered by other regulations, which may have substantial effects on neighboring land uses. • Neighboring single family residential parcels to the west are well buffered by distance, existing mature landscaping and a new 6-foot tall privacy fence. • The drainage patterns are not proposed to change. The existing grading has not created any known problems and the reduction of hard-surface will further facilitate stormwater management. • Perimeter plantings along the south and east property lines will screen the parking lot from abutting right-of-way and commercial uses. Page 470 of 579 EXISTING BUILDING EXISTINGGARAGE MAIN FLOOR RENOVATION REMAIN AS IS F.E. 850.5 APPROX.LYNDALE AVE S.SIDE WALKPROPOSED ASPHALT PARKING LOT 8 PARKING STALLS E.PLANT E. PLANT EXISTING SITE GRADING TO REMAIN AS IS EXISTING PLANTINGS AND TRESS TO BE PROTECTED W/ TEMP. HIGH VISION FENCE IF CONSTRUCTIONMAY CAUSE DAMAGE EXIST. BUILDING HEIGHT APPROX. 24' @ PEAK 1" / 12"1/2" / 12"1/2" / 12" 1/4" / 1 2 " 1/4" / 1 2 "2 3/4" / 12"1/2" / 12"1 1/4" / 12"3/4" / 12"1/4" / 12"1/4" / 12"1/4" / 12"1/2" / 12"GARBAGE/RECYCLINGSTORED IN GARAGE EXISTING SCREENING FORMECH. EQIP. TO REMAIN AS IS SILT FENCE TO BE MAINTAINED UNTIL SOIL IS STABILIZED EXISTING SIGN - OPTIONTO REPURPOSE 5 REQUIRED PER SECTION 544 1 EV PARKING STALL SHALL SUPPORT L2 OR L3 CHARGING & 1 STALL EV READY PER SECTION 544 2 POST & RING BIKE RACK AS REQ. PER SECTION 544.17 MINIMUM 1 ADA STALLAS REQ.5PROPOSED BOXWOODPLANTINGS - TYPICAL 23 TOTAL SHRUBS REQ.SCREENING UP TO 3' HIGH25% GROUND COVERAGE @PARKING PERIMETER NEW 2.5" OAK NEW 2.5" MAPLE 3' - 0" NEW 2.5" MAPLE E. TREE TO REMAIN E. TREE TO REMAIN E. TREE TO REMAIN E. TREE TO REMAIN NEW 10' MAPLE NEW 2.5" OAK PROPOSED WOOD FENCE 6' HT. N. OVER STORY TREES EVERY 40' LINEAR FEET OFPARKING 9 TRESS TOTAL ON SITE REQ. 25' - 0" BUFFER 850' - 5" 848' - 2"1" / 12"NEWRAMP N. 3R. UP N. CONC. WALK N. RAILING 37" HT. - TYPICAL BOLLARDS 6' - 0"6' - 0"1' - 0"19' - 1 13/32"6' - 0"24' - 0"N. BOULDERS TYP. N. SMALL STREET LAMPS NEW 2.5" HACKBERRY NEW 2.5" MAPLE 1 A2 BUILDING COVERAGE 1,277 SFDRIVEWAY/PARKING 4,486WALKWAY/STAIRS/RAMP 446 SF TOTAL: 6,209 SF ASPHALT TO BE REMOVED ASPHALT TOBE REMOVED ASPHALT TO BE REMOVED ASPHALT TOBE REMOVED PROPOSED IMPERVIOUSSURFACE CALCULATIONS: LEGAL TAX DISCRIPTION: BLOCK 010 IRWIN SHORES LOTS 6, 7, AND & SOUTH 42 FT OF LOT 5 PARCEL NUMBER:3302824410003 PLANTINGSETBACKS AREA TO BE PLANTED W/ GRASS OR 3" WASHED STONE EXIST. STORM WATER DRAINPROPOSED HONEY COMB COVER ASPHALT TO BE REMOVED STEPSTONE SHEET INDEX GENERAL CONTRACTOR ISSUED FOR ISSUE DATE STRUCTURALPROGRESS SETREVISIONPERMIT SETBID SETCONSTRUCTION 07 / 29 / 25 X MEETING SETDESIGNER KUHL DESIGN - CONNOR KUHLMANN PHONE: 763-516-3940 E-MAIL: KUHLDESIGNMN@GMAIL.COM STRUCTURAL ENGINEER T.B.D. 08 / 05 / 25 X A0 952-454-8895 Nathan O'brian 9017 Vincent Ave s Bloomington MN 55431 Nathan O'brian 7424 Lyndale Ave S Lion Cannabis Richfield, MN 55423 1" = 10'-0" SITE PLAN N. 5'10'20'0 2"0 1" = 10'-0" A0 SITE PLAN A1 FLOOR PLANS A2 SITE SECTION C1 SURVEY - BYOTHER PRELIMI N A R Y - N O T F O R C O N S T R U C T I O N Page 471 of 579 DN DNATMATMATMSECURITY DESKN. BEAM ABV.T.B.D. BY STRUCTURAL 2' - 0"3' - 0"2' - 0"3' - 6"DISPLAY/CAB. - SHELVES ABV.ENTRY GATE W/ LOCKGLASS DISPLAY CASECASECASECHECKOUTCOUNTERN. BEAM ABV.T.B.D. BY STRUCTURAL N. BEAM ABV. N. SIGN ABV. E. 3 R.TO REMAIN E. 3 R.TO REMAIN E. REMAIN E. REMAINE. REMAINE. REMAINE. REMAINE. REMAINE. REMAINE. REMAIN N. 21068 OFFICE 5' - 1"5' - 1"1' - 4"1' - 6" QUARANTINE STORAGE N. 21068E.R. 6" 7-6x8-6 +/-5-1x12-1 +/- E.R. = EXISTING TO REMAIN E.R. E.R. E.R. DESK/BREAK RM.PRODUCT CHECK-IN CNTR.1' - 9"3' - 0"2' - 0"FOR PRODUCT REF.REF.GLASS DISPLAYALARM BRAIN/MONITORS COMPUTERSCANNER COMPUTERSCANNER COMPUTERSCANNER COMPUTERSCANNER EMPLOYEES ONLYEXIST. HVAC EXIST. PLANTING REMAIN G. R.12' - 6"11' - 1 3/4" 14' - 10"36' - 6"11' - 1"4' - 0" 18' - 6"3' - 0"6' - 6"6' - 5"8' - 0"6' - 6"2' - 0"4' - 10"9' - 1"3' - 8"10' - 2"6' - 9"E. STAIRUP TOREMAINAS IS E. STAIR DN TOREMAINAS IS E. GARAGE REMAIN AS IS E. REMAIN E. REMAINE. REMAINE. REMAINE. REMAINE. REMAINE. REMAINE. REMAINE. REMAIN FRONT AWNING ANDSTEPS TO BE REMOVED E. 3 R.TO REMAIN E. 3 R.TO REMAIN E. DR TO REMAIN VERIFY EXIST. COL. IS NOT LOAD BEARING BEFORE COMMENCING WORK ASSUMED BRG.WALL TO BE REMOAVED VERIFY EXIST. WALL IS NOT LOAD BEARING BEFORE COMMENCING WORK 16'ATMATMATMSECURITY DESKENTRY N. 21068 OFFICE 5' - 1"1' - 6"1' - 6" QUARANTINESTORAGE N. 21068E.R. 6" E.R. E.R. ALARM PANEL/MONITORS 5' - 1"5"EXITEXITEXITEXIT EXIT SIGN/EMERGENCY LIGHT(ILLUMINATED, EMERGENCY POWER) CAMERAS ALARM LOCKEDLOCKEDLOCKEDLOCKED LOCKEDLOCKED LOCKED LOCKED LOCKED LOCKEDLOCKED LOCKEDLOCKEDD D D D D D D D D D D D D D D DISK LIGHT PENDANT LIGHT D D D D D D s c/s s c/s CARBON/SMOKE DETECTOR LOCKEDs SMOKE DETECTOR G G G G GG G G GLASS BREAK DETECTOR 48"x36"CLEARFLOORSPACE 2' - 6"1' - 7" CASE CASE CHECKOUTCOUNTER36" HT. MAX. MIN.MIN.BACK OF KNEESPACE - 27" HT. MIN. SHEET INDEX GENERAL CONTRACTOR ISSUED FOR ISSUE DATE STRUCTURALPROGRESS SETREVISIONPERMIT SETBID SETCONSTRUCTION 07 / 29 / 25 X MEETING SETDESIGNER KUHL DESIGN - CONNOR KUHLMANN PHONE: 763-516-3940 E-MAIL: KUHLDESIGNMN@GMAIL.COM STRUCTURAL ENGINEER T.B.D. 08 / 05 / 25 X A1 952-454-8895 Nathan O'brian 9017 Vincent Ave s Bloomington MN 55431 Nathan O'brian 7424 Lyndale Ave S Lion Cannabis Richfield, MN 55423 1/4" = 1'-0" PROPOSED MAIN LEVEL FLOOR PLAN PRELIMI N A R Y - N O T F O R C O N S T R U C T I O N 1/4" = 1'-0" MAIN LEVEL DEMO. PLAN CASE 1/4" = 1'-0" MAIN FLOOR SAFETY & LIGHTING PLAN 1/2" = 1'-0" CHECKOUT COUNTER DETAIL A0 SITE PLAN A1 FLOOR PLANS A2 SITE SECTION C1 SURVEY - BYOTHER N.N. N. 2'4'8'0 2"0 1/4" = 1'-0" 2'4'8'0 2"0 1/4" = 1'-0" 2'4'8'0 2"0 1/4" = 1'-0" NOTE: EXTERIOR TO REMAINAS IS - TO BE PAINTED T.B.D. RETAIL SPACE EMPLOYEE ONLY AREA 645 SF CUSTOMER AREA 239 SF Grand total 884 SF Page 472 of 579 N. SIGN N. RAILING AND RAMP N. STREET LAMPS WOOD PRIVACY FENCE ON WEST PROPERTY LINE SHEET INDEX GENERAL CONTRACTOR ISSUED FOR ISSUE DATE STRUCTURALPROGRESS SETREVISIONPERMIT SETBID SETCONSTRUCTION 07 / 29 / 25 X MEETING SETDESIGNER KUHL DESIGN - CONNOR KUHLMANN PHONE: 763-516-3940 E-MAIL: KUHLDESIGNMN@GMAIL.COM STRUCTURAL ENGINEER T.B.D. 08 / 05 / 25 X A2 952-454-8895 Nathan O'brian 9017 Vincent Ave s Bloomington MN 55431 Nathan O'brian 7424 Lyndale Ave S Lion Cannabis Richfield, MN 55423 3/16" = 1'-0" SITE SECTION FROM ROAD EXISTING BUILDING TO REMAIN PRELIMI N A R Y - N O T F O R C O N S T R U C T I O N Page 473 of 579 Page 474 of 579 LINCOLN FIELD WBI4 9 4 TOLYNDALEAVESLYNDALEAVESLYNDALEAVESTOWBI494 76TH ST W PLEASANT AVE75TH ST W 74TH ST W INTERSTATE 494 77TH ST W GRAND AVE SHARRIET AVEGARFIELD AVEPLEASANT AVEMARKET DRDUPONT AVE SALDRICH AVE SCOLFAX AVE SLYNDALE AVE SBRYANT AVE SHARRIET AVEGRAND AVE SHARRIET AVE78TH ST W ± Location and Zoning Map 0 420 840210ft I:\GIS\Community Development\Case Maps\2025\Lion C - Site Plan Approval - 7424 Lyndale Ave.mxd 7424 Lyndale Avenue South Case #:Z25-05 SUBJECTSITE Parks MU-N Mixed Use-Neighborhood MU-R Mixed Use-Regional Legend R Low Density Residential PMR Planned Multi-Family MR-2 Multi-Family MR-3 High-Density Multi-Family C-1 Community Commercial C-2 General Commercial PC-2 Planned General Commercial PMU Planned Mixed Usel Page 475 of 579 From: Samantha Crosby Sent: Thursday, September 18, 2025 2:20 PM To: 'Alex Deutz' <alexjoeldeutz@gmail.com> Subject: RE: Please deny cannabis retail at 7424 Lyndale Hi Alex, Please see responses, below, and attached. Thanks. Sam Crosby, AICP (she/her) City Planner 6700 Portland Avenue, Richfield MN 55423 Tel: (612) 861-9776 | scrosby@richfieldmn.gov From: Alex Deutz <alexjoeldeutz@gmail.com> Sent: Wednesday, September 17, 2025 5:27 PM To: Samantha Crosby <SCrosby@richfieldmn.gov> Subject: Re: Please deny cannabis retail at 7424 Lyndale I have some follow-up questions: 1. Regarding security question, for example, in Las Vegas, nearly all of the marijuana dispensaries have private security hired due to the threat of armed robberies. The dispensaries are required to use large amounts of cash to run their business due to federal regulations limiting credit non-cash payments. This means the threat of armed robbery is greatly increased. What are the business owner's plans regarding security? They have indicated they will have security along with the staff working the store. Deposits will be made daily to keep cash at a minimum. This store will have less cash daily than a McDonalds or Burger King. Please do a google search of "marijuana dispensary robberies" and you will see these are not isolated incidents. They are a common and easy target for thieves because they know they will always have large amounts of cash. 2. Is this the first recreational shop in the state, or are there other recreational shops currently operating? I’ve attached a copy of this morning’s Axios. See the lead story. 3. Regarding the odor control question, will customers be allowed to smoke on their property? Absolutely no smoking will be allowed on the property. 4. Are they planning on operating the business out of the current building, or are there plans to build something new. The current building will remain. Both exterior and interior improvements will be made. Please see the attached staff report and related documents. Thanks, My pleasure. Alex Deutz 7429 Aldrich Page 476 of 579 On Wed, Sep 17, 2025 at 3:54 PM Samantha Crosby <SCrosby@richfieldmn.gov> wrote: Hi Alex, Please see answers to questions below: What will be done regarding odor control, security plans, and operating limits for this cannabis business? In relation to odor control, all products would be vacuum sealed or otherwise packaged in a sealed container. In relation to security, there would be internal and external cameras. The Office of Cannabis Management has security requirements that all retail cannabis locations must comply with. Those requirements would be met here. In relation to operating limits, the applicant has indicated the store would be open 10am-7pm daily. The municipal code limits cannabis sales to 10:00 a.m. to 9:00 p.m. Monday through Thursday; 10:00 a.m. to 10:00 p.m. Friday and Saturday; and 10:00 a.m. to 9:00 p.m. on Sunday. Will it operate similarly to a liquor store? Yes in that they are both retail sales; otherwise, I’m not sure what you mean by this. What will be for sale at this place? Is it a medicinal shop or just a dispensary? It would not be a medicinal shop, it would be a recreational shop. They would have both low dose and high dose products such as oils, tinctures, flower, and edibles. I hope this helps. Happy to answer others if you have them. Regards, ~ Sam Sam Crosby, AICP (she/her) City Planner 6700 Portland Avenue, Richfield MN 55423 Tel: (612) 861-9776 | scrosby@richfieldmn.gov From: Alex Deutz <alexjoeldeutz@gmail.com> Sent: Tuesday, September 16, 2025 2:51 PM To: Samantha Crosby <SCrosby@richfieldmn.gov> Subject: Please deny cannabis retail at 7424 Lyndale Hi Samantha Crosby — I’m a homeowner directly behind 7424 Lyndale Ave S in Richfield. I’m asking the City to deny the cannabis store proposed for that site at the meeting on Monday, Sept 22, 2025. I’ll be out of town for work and may not be able to join virtually—please include this email in the public record. Before I explain why this needs to be denied, I'd like to ask a question: What will be done regarding odor control, security plans, and operating limits for this cannabis business? Will it operate similarly to a liquor store? What will be for sale at this place? Is it a medicinal shop or just a dispensary? I am unfamiliar with these types of places in Minnesota. I travel for work, so I do see how other cities handle these types of businesses, and I have to point out that this doesn't seem like the ideal location for such a place. Why this location is a serious problem for neighbors Page 477 of 579 Kids + parking lot = daily risk. We bought our home 5 years ago to raise our family; my wife is 8 months pregnant. At 7428 Lyndale, kids play right along the parking lot line nearly every day in the summer. A cannabis storefront here would place children a few steps from frequent vehicle movements, adult-only transactions, and delivery activity—exactly where families live and play. Minnesota law expects cities to be cautious near places kids gather (authority for 1,000-ft school and 500-ft daycare/park-attraction buffers). MN Revisor Research also shows on-block impacts: in Denver, street segments with recreational dispensaries saw about an 18% increase in property crime right where they operate; in Long Beach, higher dispensary density was linked to more violent and property crime in adjacent areas—the spillover that neighbors, not the store, absorb. Taylor & Francis Online+1 There’s no alley here, so those risks and nuisances sit directly in our backyard. Separately, the American Academy of Pediatrics warns against youth cannabis exposure and supports strong regulation to limit access and exposure—starting with where retail is allowed. AAP Publications+1 Richfield Cannabis Retail Map. The City adopted cannabis regulations and even published a “Possible Cannabis Retail Locations” map to steer applications to appropriate commercial sites. Is there a similar map regarding liquor stores? It seems the rules for liquor stores appear to be stricter than Cannabis Retail locations. Is that the case? This particular spot is immediately adjacent to homes and a place where children play; please apply the City’s siting intent here and direct this use to a true commercial location (like the shopping center further down Lyndale, where our neighborhood liquor store is located). Richfield MN+1 We’re not anti-growth—we support more apartments and businesses in our area. We just don’t want a cannabis storefront immediately behind where our kids (and the neighbors’ kids) play. As I mentioned earlier, I travel for work, so I have seen firsthand the effects of dispensaries in many other cities, and I would not prefer to have my children and my neighbors' children being raised in that environment. Bottom line: operating impacts (traffic, parking, lighting, loitering, odors) fall on nearby families every single day. This belongs in a shopping center/business area —not in our backyards. The Shops of Lyndale, south of 77th Street, would be much more suitable for this type of business. Thank you for protecting residents on this block. Sincerely, Alex and Courtney Deutz 7429 Aldrich 507-530-2166 Page 478 of 579 From: Sean Foley <foleyseanpat@gmail.com> Sent: Wednesday, September 17, 2025 7:56 PM To: Samantha Crosby <SCrosby@richfieldmn.gov> Subject: Re: 7424 Lyndale Hi Sam, Thanks for the quick and thorough response. I guess my main concerns would be increased foot and vehicle traffic. We have had some contact with the city over the years about the intersection of 75th street and Aldrich. There are always many cars parked on 75th between Lyndale and Aldrich. It seems like the addition of this business could increase that even more. The city did add "no parking from here to corner" signs a while back which helped some. It is, however, still hard to see when cars are zipping along 75th to west if you are stopped at one of the stop signs on Aldrich. The school district typically has a bus stop at that intersection. The buses usually stop on Aldrich just to the south of 75th and then some kids have to cross 75th on foot . It definitely can get dicey. A four way stop at that intersection would be appreciated by the residents. It also seems like more and higher fencing would be helpful. I know you said that higher fencing requires a variance. Not sure what conditions those are granted under, but I think a higher fence would help to block sightlines into the back porches and windows of the neighboring houses. It also seems like fencing on the north and south sides of the lot (connected to the already proposed fence on the west) would help to isolate the lot from the rest of the neighborhood and more adequately discourage people from wandering through yards looking for shortcuts to their cars, etc. We are very happy that the trees are not being removed! There are enough trees coming down around town! Thanks again, Sean On Mon, Sep 15, 2025 at 1:09 PM Samantha Crosby <SCrosby@richfieldmn.gov> wrote: Hi Sean, Thank you for reaching out with these questions. Please see responses embedded below. Sam Crosby, AICP (she/her) City Planner 6700 Portland Avenue, Richfield MN 55423 Tel: (612) 861-9776 | scrosby@richfieldmn.gov Page 479 of 579 From: Sean Foley <foleyseanpat@gmail.com> Sent: Friday, September 12, 2025 7:54 PM To: Samantha Crosby <SCrosby@richfieldmn.gov> Subject: 7424 Lyndale Hello, I live at 7421 Aldrich Ave S which is directly behind 7424 Lyndale. I received the postcard about the proposed redevelopment, and I looked at the proposal on the city website. I had a couple quick questions that I'm wondering if you can answer. 1. There are two large pines trees at the back of the lot. The south one is marked "E. tree to remain" which I assume means "existing tree to remain"? The north one is not labeled. Do you know what the plans are for that tree? Good catch that that one is not labeled. They intend to keep all the trees. I will double check with them just to be sure, but I’m confident it was just a notation that was missed in the drafting. 2. Is 6 feet the largest privacy fence allowed? Yes, without a variance. The code says “no fence or wall more than 6 feet in height shall be constructed.” So they would need a variance to go above 6 feet. 3. What hours would the business be allowed to be open? He plans to operate 10am-7pm daily. The municipal code limits cannabis sales to 10:00 a.m. to 9:00 pm Monday through Thursday; 10:00 a.m. to 10:00 p.m. Friday and Saturday; and 10:00 a.m. to 9:00 p.m. on Sunday. 4. Do you know if this business has other locations (existing or planned) in the metro area? He does not, this would be his first store. He is currently a contractor, and is working with an experienced business advisor. 5. I see that the project will be brought up at the 10/14 City Council meeting. Do you have any idea on the timeline for the project after that? After city approval he will need to finish OCM approval, and then construction might take 2 to 3 months. Spring of next year is a fair estimate. I appreciate any information you can provide! My pleasure. I’d be glad to chat by phone if you’d like. Do you have concerns about the proposed change of use? If so please let me know. Or if you think of any other questions I’m happy to answer them too. Thank you, Thank YOU! So few people reach out in advance. I really appreciate it. Sean Foley Page 480 of 579 From: Mark Elgaard <markelgaard96@gmail.com> Sent: Thursday, September 18, 2025 4:27 PM To: Samantha Crosby <SCrosby@richfieldmn.gov> Subject: 7424 Lyndale Ave Hi Sam, Thanks for the heads up about the incoming proposed business at the location above. A few neighbors from our block forwarded around the email that they sent to you, quite a fun read. My partner and I just wanted to let you know that we are in support of a new business occupying the vacant building and while we personally won't be gaining anything from them being there, an occupied store front is much better than an empty one in our eyes. Hopefully this encourages more infill/redevelopment/expanding of commercial space near residential to create a more walkable community! Thanks again! The 7441 Aldrich Ave household Page 481 of 579 From: Brad Dimond <bjdimond@yahoo.com> Sent: Friday, September 19, 2025 4:33 PM To: Samantha Crosby <SCrosby@richfieldmn.gov> Subject: Lion Cannabis With regard to siting a cannabis retail business at 7424 Lyndale Avenue South in Richfield I voice the following concerns and objections: Existing building vs. new construction Will the existing building be used as it currently stands or will it be razed and a new structure build? Lack of parking at the retail site • 16 parking spaces are currently listed on the property. Will the number of parking spaces be maintained? • Past commercial and multifamily residential construction has led to an exponential increase in on-street parking in the neighborhood (73rd & Aldrich - 76th & Aldrich and 75th Street between Lyndale and Bryant). These roads have cars parked bumper to bumper virtually around the clock. Richfield Transmission, the Kensington apartments and the Lynwood Commons Apartments have contributed significantly to on-street parking on 75th Street and Aldrich Avenue. • The Speedway station on 75th & Lyndale generates a large traffic volume. Access is degraded by inability to see around the parked vehicles • How will parking issues be addressed? Increased traffic on Lyndale Avenue and Aldrich Avenue • The prior occupant generated insignificant motor vehicle traffic in the neighborhood. Additional traffic at a volume sufficient to support a retail business will likely generate increased traffic on Lyndale Avenue between 73rd Street and 76th Street on Aldrich Avenue. Significant bypass traffic currently exists from motorists seeking to avoid stoplights at 76th & Lyndale and congestion at 75th & Lyndale. • There is an elementary school bus stop at the intersection of 75th and Aldrich and many pedestrians from the neighborhood and local businesses. It is a busy intersection with one side of it essentially being a blind intersection due to all the parked vehicles. The neighborhood has been asking for a 4-way stop at the intersection for years because it is such a hazardous intersection. An increase in retail traffic including bypass traffic on Aldrich will only make it more hazardous for the neighborhood and the young children at the school bus stop. • Traffic enforcement on these intersections is non-existent. How will this risk be mitigated? Proximity to RHS & Central 1. While the proposed siting complies with Richfield ordinance requirements for setback for cannabis retailers from schools, a significant amount of student foot traffic for RHS, Seven Hills Preparatory Academy and RMS funnels through the immediate neighborhood. The City Council packet related to the cannabis amendments to Richfield ordinances outlines the setback requirements as a protection to students. How are such protections extended to the students commuting through the neighborhood to and from school? We intend to attend the upcoming City Council meeting regarding approval for the cannabis retailer but wished to have these concerns raised for the record. Brad & Dianne Dimond 7409 Aldrich Avenue South Richfield, MN 55423 612-760-0495 Page 482 of 579 From: Brendan Kennealy <bkennealy@gmail.com> Sent: Monday, September 22, 2025 5:13 PM To: Samantha Crosby <SCrosby@richfieldmn.gov> Subject: PC Meeting 9/22/25 Hi Sam, I'm unable to attend tonight's PC meeting, but I wanted to send along my thoughts and questions. I'm sorry I didn't submit this sooner. Brendan Kennealy THOUGHTS - I support the site plan for Lion Cannabis at 7424 Lyndale. This site is zoned for commercial use and the proposal meets all requirements. In fact, the applicant has agreed to make several improvements to the parking lot and exterior of the business. - The site is in an established commercial district neighboring high-traffic businesses such as Broadway Pizza, Speedway Gas Station, and multiple options for auto repair. The surrounding roads and infrastructure can accommodate additional retail. - Cannabis dispensaries face intense regulation and scrutiny. In my experience with medical cannabis dispensaries in Minnesota, they are required to prioritize safety and security. These are not boisterous taprooms where community members gather for a good time on a patio; these are quiet businesses that keep limited hours and often require appointments for new customers. QUESTIONS - We have received correspondence from some neighbors who support this proposal. We have also heard from neighbors who are uncomfortable with the idea of a cannabis store operating near their homes. I have small school-age kids and I can relate. One neighbor asked about installing a taller fence where the site borders residential homes. Is the applicant willing to install a fence that exceeds 6' in height to limit visibility? We cannot require this, of course, but I support the variance should it be requested by the applicant. - One comment expressed concern about there not being enough parking. Can City Staff walk us through the required number of parking stalls for this kind of business and show how the applicant's plan satisfies the city's requirements? - Another comment expressed concern about students walking past a dispensary on the way to school. They ask: "Richfield ordinances don't allow dispensaries to be built near schools; how can such protections be extended to students walking through the neighborhood?" Can City Staff please state the legal age for entering a dispensary and purchasing cannabis? Page 483 of 579 City Council Meeting 10/14/2025 Agenda Section: Public Hearings Agenda Item: 9.a. Report Prepared By: Zach McCarty, Solid Waste Specialist Department Director: Karl Huemiller, Recreation Director Item for Consideration: Public hearing and consider a resolution adopting the proposed certification of delinquent solid waste charges to property taxes within the residential organized collection sytem from July 1, 2024 to June 30, 2025. EXECUTIVE SUMMARY Garbage, recycling, organics, and yard waste services for most residential properties in the City is provided through the City's organized collection program, established in 2021. The City requires service to be provided by the haulers, even if a resident has not paid their service bills, as not having waste picked up is a public health concern. As a result of this requirement, the City agreed to take on the certification process to resolve unpaid balances. As of October 2, 2025, City staff has determined the actual pending unpaid garbage collection services to be $180,474.83. This amount will continue to be adjusted as assessments are paid before being sent to the County. HISTORICAL CONTEXT Richfield organized residential curbside garbage, recycling, organics, yard waste, and bulky item collection services for 1-3 unit homes in 2021. The 3 existing residential haulers each got a number of Richfield households to serve equal to their market share, and in the same area to coordinate collection more easily. This program has reduced the number of garbage trucks traveling on roads in Richfield, reduced air, noise, and other forms of pollution, and saved many household's money while providing more service options. Haulers send out periodic notice (at least once per quarter) of non-payment and late fees, if applicable. This communication helps inform tenants and/or owners of the current situation regarding collection services at a specific property, and how to pay balances or who to contact with concerns. Over the past few months, city staff have worked to verify accounts being certified and have worked with the haulers and residents/owners to resolve miscommunications or pay balances. RECOMMENDED ACTION Conduct and close the public hearing and by motion: Adopt a resolution adopting the certification of costs incurred for unpaid garbage collection services between July 1, 2024 to June 30, 2025. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Page 484 of 579 • Equity consideration: All residents are required to have solid waste collection services. Trash collection is structured as a "pay as you throw" system to incentivize waste reduction and equitable charges. • Strategic plan considerations: By taking on the certification process and having haulers continue to provide hauling services, the City ensures essential services are delivered. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) • Minnesota State Statute and section 601 of the Richfield Code of Ordinances provide that unpaid solid waste service balances may be certified to the county auditor to be included in a property owner's annual property tax bill. • Notice of the certification was mailed to the owner of each parcel described in the certification roll on September 8, 2025. • Notice of a public hearing regarding the proposed certification of delinquent solid waste service balances was published in the Sun Current on September 11th. CRITICAL TIMING ISSUES • The unpaid charges for garbage collection services must be sent for certification to the County Auditor as stated in City Code 601.37. • Each year the City shall list the total unpaid charges for current services. This list is available at the offices of the City Clerk and Public Works. • The certification roll is submitted to the County Auditor and is due to Hennepin County by the end of November annually. FINANCIAL IMPACT • At the conclusion of the July 1, 2024 to June 30, 2025 period, five-hundred sixty- two (562) properties were moved into the assessment process for unpaid garbage collection services totaling $231,436.00. • Since then, one-hundred seventy-three (173) properties have paid their past-due garbage collection service balance in full and they will not be assessed. • The total amount to be assessed currently stands at $180,474.83 across three- hundred eighty-nine (389) properties. This number is anticipated to decrease through the conclusion of the payment period in mid-November before the official assessment roll is submitted to Hennepin County. • The property owner may pay the original principal amount without interest within 30 days from the date the Council adopts the assessment. • The unpaid balance will be paid over one (1) assessment period with a five percent (5%) interest rate. A $50 dollar certification fee will be added to each account. LEGAL CONSIDERATIONS The City Attorney will be available to answer any questions. Page 485 of 579 ALTERNATIVE RECOMMENDATION(S) None ATTACHMENTS 1. 10142025GarbageResolution 2. 10062025GarbageRoll Page 486 of 579 RESOLUTION NO. RESOLUTION ADOPTING ASSESSMENT FOR UNPAID GARBAGE COLLECTION SERVICE FROM JULY 1, 2024 TO JUNE 31, 2025 WHEREAS, unpaid charges have been determined for garbage collection services from private property within the residential organized collection system in the City of Richfield and the unpaid charges incurred for such work ordered during the period of July 1, 2024, to June 31, 2025 amount to $180,474.83. WHEREAS, pursuant to proper notice duly given as required by law, the council has met and passed upon all objections to the proposed assessment for garbage collection services from private property within the residential organized collection system in the City of Richfield and the unpaid charges incurred for such work ordered during the period of July 1, 2024, to June 31, 2025. Address NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota: 1.Such proposed assessment roll, in the amount of $180,474.83, is hereby accepted and shall constitute the special assessment against the lands named herein, and each tract of land therein included is hereby found to be benefited by the proposed current services in the amount of the assessment levied against it. 2.Such assessment shall be payable in no more than one annual installment and shall bear interest at the rate of five (5%) percent from the date of adoption of this assessment resolution. 3.The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property with interest accrued to the date of payment, to the residential organized collection business serving their property, except that no interest shall be charged if the entire assessment is paid by November 14, 2025. A property owner may, at any time prior to November 14, pay to the residential organized collection hauler serving their property the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. 4.The City Clerk shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the property tax lists of the County and such assessments shall be collected and paid over in the same manner as other municipal taxes. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October, 2025. Page 487 of 579 ______________________________ Mary Supple, Mayor ATTEST: _____________________________ Michelle Friedrich, City Clerk Page 488 of 579 ST Property ID House Street Name Unit Orig Assessment Tot Assessment Payoff Amount Status Assessment_Dtl_IDA25-028-24-33-0060 6813 Cedar Ave S $565.97 $565.97 $0.00 Pending 40230A26-028-24-11-0011 6221 Bloomington Ave S $451.77 $451.77 $0.00 Pending 40090A26-028-24-12-0001 6214 13th Ave S $615.90 $615.90 $0.00 Pending 40145A26-028-24-12-0002 6220 13th Ave S $145.97 $145.97 $0.00 Pending 39960A26-028-24-12-0033 1413 62nd St E $486.33 $486.33 $0.00 Pending 40111A26-028-24-12-0035 1421 62nd St E $417.51 $417.51 $0.00 Pending 40066A26-028-24-12-0036 6212 15th Ave S $1,206.09 $1,206.09 $0.00 Pending 40158A26-028-24-12-0081 6324 15th Ave S $451.77 $451.77 $0.00 Pending 40080A26-028-24-12-0083 6332 15th Ave S $859.91 $859.91 $0.00 Pending 40153A26-028-24-12-0097 6301 14th Ave S $485.22 $485.22 $0.00 Pending 40108A26-028-24-12-0102 6318 Bloomington Ave S $582.87 $582.87 $0.00 Pending 40139A26-028-24-12-0114 6325 15th Ave S $402.95 $402.95 $0.00 Pending 40059A26-028-24-12-0132 6221 13th Ave S $952.79 $952.79 $0.00 Pending 40156A26-028-24-12-0139 6320 14th Ave S $415.44 $415.44 $0.00 Pending 40065A26-028-24-13-0038 6434 Bloomington Ave S $402.95 $402.95 $0.00 Pending 40054A26-028-24-13-0061 6438 15th Ave S $451.77 $451.77 $0.00 Pending 40081A26-028-24-13-0073 6405 14th Ave S $176.21 $176.21 $0.00 Pending 39969A26-028-24-13-0093 6505 14th Ave S $451.77 $451.77 $0.00 Pending 40089A26-028-24-13-0098 6512 Bloomington Ave S $402.95 $402.95 $0.00 Pending 40063A26-028-24-13-0111 6521 15th Ave S $304.22 $304.22 $0.00 Pending 40016A26-028-24-13-0142 6533 13th Ave S $487.04 $487.04 $0.00 Pending 40112A26-028-24-13-0145 6515 13th Ave S $352.07 $352.07 $0.00 Pending 40043A26-028-24-14-0081 6428 16th Ave S $112.76 $112.76 $0.00 Pending 39945A26-028-24-14-0086 6445 Bloomington Ave S $354.12 $354.12 $0.00 Pending 40044A26-028-24-14-0090 6429 Bloomington Ave S $381.53 $381.53 $0.00 Pending 40050A26-028-24-14-0091 6425 Bloomington Ave S $236.07 $236.07 $0.00 Pending 39996A26-028-24-14-0093 6415 Bloomington Ave S $375.81 $375.81 $0.00 Pending 40048A26-028-24-14-0095 6407 Bloomington Ave S $236.07 $186.07 $0.00 Pending 39974A26-028-24-14-0099 6508 16th Ave S $729.99 $729.99 $0.00 Pending 40149A26-028-24-14-0109 1528 66th St E $325.73 $325.73 $0.00 Pending 40023A26-028-24-21-0001 6210 11th Ave S $534.09 $534.09 $0.00 Pending 40124A26-028-24-21-0006 6238 11th Ave S $205.49 $205.49 $0.00 Pending 39979A26-028-24-21-0014 6238 12th Ave S $304.22 $304.22 $0.00 Pending 40018A26-028-24-21-0030 6301 11th Ave S $451.77 $451.77 $0.00 Pending 40079A26-028-24-21-0034 6327 11th Ave S $336.63 $336.63 $0.00 Pending 40028A26-028-24-24-0012 6415 11th Ave S $378.13 $378.13 $0.00 Pending 40049A26-028-24-24-0016 6435 11th Ave S $472.31 $472.31 $0.00 Pending 40103A26-028-24-31-0014 6625 11th Ave S $451.77 $451.77 $0.00 Pending 40097A26-028-24-31-0015 6621 11th Ave S $451.77 $451.77 $0.00 Pending 40085A26-028-24-31-0026 6633 10th Ave S $534.09 $534.09 $0.00 Pending 40121A26-028-24-31-0038 6645 Elliot Ave S $341.21 $341.21 $0.00 Pending 40039A26-028-24-31-0100 6733 10th Ave S $549.50 $549.50 $0.00 Pending 40130A26-028-24-32-0007 6624 Columbus Ave S $326.79 $326.79 $0.00 Pending 40024A26-028-24-32-0038 6628 Oakland Ave S $426.47 $226.47 $0.00 Pending 40067A26-028-24-32-0085 619 67th St E $582.87 $582.87 $0.00 Pending 40135A26-028-24-32-0125 626 68th St E $759.54 $259.54 $0.00 Pending 40151A26-028-24-33-0024 6929 Park Ave $685.09 $685.09 $0.00 Pending 40250A26-028-24-33-0029 6933 Columbus Ave S $646.29 $646.29 $0.00 Pending 40242A26-028-24-33-0030 6932 Chicago Ave S $427.79 $127.79 $0.00 Pending 40200A26-028-24-33-0081 6824 Columbus Ave S $430.58 $430.58 $0.00 Pending 40201A26-028-24-33-0106 6824 Oakland Ave S $610.34 $610.34 $0.00 Pending 40235A26-028-24-34-0017 6839 11th Ave S $164.53 $164.53 $0.00 Pending 40169A26-028-24-34-0031 6938 12th Ave S $332.36 $332.36 $0.00 Pending 40189A26-028-24-34-0069 6815 10th Ave S $707.24 $707.24 $0.00 Pending 40256A26-028-24-34-0133 6830 Elliot Ave S $135.99 $135.99 $0.00 Pending 40165A26-028-24-41-0025 6726 17th Ave S $728.26 $728.26 $0.00 Pending 40259A26-028-24-42-0007 6644 Bloomington Ave S $610.34 $610.34 $0.00 Pending 40237A26-028-24-42-0033 6632 13th Ave S $646.43 $646.43 $0.00 Pending 40245A26-028-24-42-0061 6635 13th Ave S $508.16 $508.16 $0.00 Pending 40213A26-028-24-42-0067 6616 15th Ave S $681.79 $681.79 $0.00 Pending 40249 Page 489 of 579 A 26-028-24-42-0069 6612 15th Ave S $204.11 $204.11 $0.00 Pending 40175A26-028-24-42-0078 6644 15th Ave S $103.04 $103.04 $0.00 Pending 40159A26-028-24-42-0084 6713 13th Ave S $565.97 $565.97 $0.00 Pending 40217A26-028-24-42-0090 6716 14th Ave S $206.56 $206.56 $0.00 Pending 40177A26-028-24-43-0004 6901 14th Ave S $646.29 $646.29 $0.00 Pending 40243A26-028-24-43-0105 6812 14th Ave S $553.82 $553.82 $0.00 Pending 40215A26-028-24-44-0037 6826 17th Ave S $724.95 $724.95 $0.00 Pending 40258A26-028-24-44-0043 6833 16th Ave S $357.67 $357.67 $0.00 Pending 40193A26-028-24-44-0056 6844 16th Ave S $565.97 $565.97 $0.00 Pending 40223A26-028-24-44-0065 6900 Cedar Ave S $505.02 $505.02 $0.00 Pending 40210A26-028-24-44-0076 6927 18th Ave S $433.81 $433.81 $0.00 Pending 40202A26-028-24-44-0079 6909 18th Ave S $565.97 $565.97 $0.00 Pending 40221A26-028-24-44-0087 6938 18th Ave S $207.96 $207.96 $0.00 Pending 40178A26-028-24-44-0092 6927 17th Ave S $565.97 $565.97 $0.00 Pending 40226A26-028-24-44-0116 6920 16th Ave S $565.97 $565.97 $0.00 Pending 40231A27-028-24-11-0004 6224 Portland Ave $702.73 $702.73 $0.00 Pending 40148A27-028-24-11-0029 6226 5th Ave S $582.87 $582.87 $0.00 Pending 40143A27-028-24-11-0067 6314 4th Ave S $273.51 $273.51 $0.00 Pending 40013A27-028-24-11-0088 6232 Clinton Ave S $485.22 $485.22 $0.00 Pending 40109A27-028-24-12-0013 6320 3rd Ave S $515.44 $515.44 $0.00 Pending 40116A27-028-24-12-0020 6331 Nicollet Ave S $901.72 $841.72 $0.00 Pending 40271A27-028-24-12-0022 6343 Nicollet Ave S $402.95 $402.95 $0.00 Pending 40057A27-028-24-12-0031 6339 1st Ave S $402.95 $402.95 $0.00 Pending 40062A27-028-24-12-0038 6314 Stevens Ave S $188.06 $188.06 $0.00 Pending 39975A27-028-24-12-0041 6244 Stevens Ave S $534.09 $534.09 $0.00 Pending 40126A27-028-24-12-0062 6338 2nd Ave S $402.95 $402.95 $0.00 Pending 40056A27-028-24-12-0073 6220 2nd Ave S $1,015.87 $1,015.87 $0.00 Pending 40157A27-028-24-12-0076 6227 2nd Ave S $336.63 $336.63 $0.00 Pending 40030A27-028-24-12-0078 6239 2nd Ave S $582.87 $582.87 $0.00 Pending 40137A27-028-24-12-0082 6315 2nd Ave S $336.63 $336.63 $0.00 Pending 40029A27-028-24-12-0083 6321 2nd Ave S $117.77 $117.77 $0.00 Pending 39953A27-028-24-13-0070 6509 1st Ave S $451.77 $451.77 $0.00 Pending 40101A27-028-24-13-0100 6509 2nd Ave S $117.77 $117.77 $0.00 Pending 39950A27-028-24-14-0005 6430 Portland Ave $451.77 $451.77 $0.00 Pending 40092A27-028-24-14-0024 6428 5th Ave S $451.43 $451.43 $0.00 Pending 40078A27-028-24-14-0028 6500 Portland Ave $236.07 $236.07 $0.00 Pending 39998A27-028-24-14-0053 356 Apple Ln $582.87 $582.87 $0.00 Pending 40138A27-028-24-14-0055 348 Apple Ln $212.24 $212.24 $0.00 Pending 39984A27-028-24-14-0063 6401 Clinton Ave S $451.77 $451.77 $0.00 Pending 40082A27-028-24-14-0068 6433 Clinton Ave S $473.41 $473.41 $0.00 Pending 40106A27-028-24-14-0088 6539 3rd Ave S $435.24 $435.24 $0.00 Pending 40068A27-028-24-21-0030 6235 Pillsbury Ave $451.77 $451.77 $0.00 Pending 40095A27-028-24-21-0031 6234 Pillsbury Ave $451.77 $451.77 $0.00 Pending 40087A27-028-24-21-0041 6300 Wentworth Ave $336.63 $136.63 $0.00 Pending 40031A27-028-24-21-0080 6343 Wentworth Ave $600.24 $600.24 $0.00 Pending 40144A27-028-24-21-0089 6332 Pillsbury Ave $409.37 $409.37 $0.00 Pending 40064A27-028-24-22-0004 6244 Garfield Ave S $103.62 $103.62 $0.00 Pending 39939A27-028-24-22-0016 6245 Harriet Ave $841.94 $841.94 $0.00 Pending 40152A27-028-24-22-0045 6322 Pleasant Ave $861.09 $861.09 $0.00 Pending 40154A27-028-24-22-0057 6237 Grand Ave $582.87 $582.87 $0.00 Pending 40140A27-028-24-22-0061 6236 Grand Ave $451.77 $451.77 $0.00 Pending 40098A27-028-24-22-0063 6229 Harriet Ave $559.87 $559.87 $0.00 Pending 40132A27-028-24-22-0068 6226 Garfield Ave S $197.42 $197.42 $0.00 Pending 39976A27-028-24-22-0075 400 64th St W $341.21 $341.21 $0.00 Pending 40032A27-028-24-24-0039 6400 Nicollet Ave S $341.21 $341.21 $0.00 Pending 40036A27-028-24-31-0020 6725 Pillsbury Ave $565.97 $565.97 $0.00 Pending 40218A27-028-24-31-0024 6742 Pillsbury Ave $903.15 $903.15 $0.00 Pending 40272A27-028-24-33-0008 6808 Grand Ave $503.50 $503.50 $0.00 Pending 40209A27-028-24-33-0027 6944 Pleasant Ave $395.84 $395.84 $0.00 Pending 40197A27-028-24-34-0034 6908 Blaisdell Ave S $707.24 $707.24 $0.00 Pending 40254A27-028-24-34-0050 6810 Nicollet Ave S $114.66 $114.66 $0.00 Pending 40161 Page 490 of 579 A 27-028-24-34-0051 6816 Nicollet Ave S $103.77 $103.77 $0.00 Pending 40160A27-028-24-41-0010 6630 Portland Ave $565.97 $565.97 $0.00 Pending 40229A27-028-24-41-0027 6616 5th Ave S $360.07 $360.07 $0.00 Pending 40194A27-028-24-41-0059 6633 Clinton Ave S $913.85 $913.85 $0.00 Pending 40263A27-028-24-41-0091 6707 4th Ave S $254.26 $254.26 $0.00 Pending 40187A27-028-24-42-0056 6609 2nd Ave S $610.34 $610.34 $0.00 Pending 40236A27-028-24-42-0058 6608 3rd Ave S $731.02 $731.02 $0.00 Pending 40260A27-028-24-42-0060 6617 2nd Ave S $676.90 $676.90 $0.00 Pending 40248A27-028-24-42-0074 6617 1st Ave S $707.24 $707.24 $0.00 Pending 40255A27-028-24-42-0087 6645 2nd Ave S $1,025.28 $632.49 $0.00 Pending 40264A27-028-24-42-0104 10 67th St E $1,183.74 $1,183.74 $0.00 Pending 40273A27-028-24-42-0108 6633 Nicollet Ave S $707.24 $707.24 $0.00 Pending 40251A27-028-24-43-0012 6957 1st Ave S $1,606.05 $1,039.84 $0.00 Pending 40274A27-028-24-43-0060 6920 Stevens Ave S $626.58 $626.58 $0.00 Pending 40239A27-028-24-43-0074 6915 Nicollet Ave S $636.56 $636.56 $0.00 Pending 40240A27-028-24-43-0098 6812 2nd Ave S $217.77 $217.77 $0.00 Pending 40183A27-028-24-43-0100 6800 2nd Ave S $476.95 $476.95 $0.00 Pending 40207A27-028-24-43-0110 21 68th St E $605.03 $605.03 $0.00 Pending 40233A27-028-24-43-0113 6803 Nicollet Ave S $524.00 $524.00 $0.00 Pending 40214A27-028-24-44-0064 6821 4th Ave S $565.97 $565.97 $0.00 Pending 40227A27-028-24-44-0115 6901 Clinton Ave S $505.02 $505.02 $0.00 Pending 40211A27-028-24-44-0123 6944 Clinton Ave S $166.91 $166.91 $0.00 Pending 40170A28-028-24-11-0007 6321 Aldrich Ave S $129.75 $129.75 $0.00 Pending 39957A28-028-24-11-0038 6313 Aldrich Ave S $117.77 $117.77 $0.00 Pending 39949A28-028-24-11-0041 6300 Aldrich Ave S $489.94 $489.94 $0.00 Pending 40113A28-028-24-11-0066 1008 Mildred Dr $451.77 $451.77 $0.00 Pending 40093A28-028-24-11-0069 6301 Dupont Ave S $160.09 $160.09 $0.00 Pending 39963A28-028-24-12-0007 6226 Girard Ave S $451.77 $451.77 $0.00 Pending 40096A28-028-24-13-0004 6405 Girard Ave S $169.58 $169.58 $0.00 Pending 39965A28-028-24-13-0015 6420 Girard Ave S $176.87 $176.87 $0.00 Pending 39970A28-028-24-13-0016 6416 Girard Ave S $398.35 $398.35 $0.00 Pending 40051A28-028-24-13-0021 6405 Humboldt Ave S $446.91 $446.91 $0.00 Pending 40075A28-028-24-13-0056 6416 Emerson Ave S $341.21 $341.21 $0.00 Pending 40037A28-028-24-13-0061 6436 Emerson Ave S $402.95 $402.95 $0.00 Pending 40061A28-028-24-14-0008 915 Rae Dr $205.49 $205.49 $0.00 Pending 39978A28-028-24-21-0034 6238 Irving Ave S $223.44 $223.44 $0.00 Pending 39991A28-028-24-21-0035 6244 Irving Ave S $341.21 $341.21 $0.00 Pending 40035A28-028-24-21-0087 6301 James Ave S $534.09 $534.09 $0.00 Pending 40128A28-028-24-21-0123 6215 James Ave S $221.14 $221.14 $0.00 Pending 39985A28-028-24-22-0029 6340 Logan Ave S $205.49 $205.49 $0.00 Pending 39981A28-028-24-22-0069 6316 Logan Ave S $110.18 $110.18 $0.00 Pending 39943A28-028-24-22-0081 6301 Morgan Ave S $501.86 $501.86 $0.00 Pending 40115A28-028-24-22-0087 6324 Morgan Ave S $582.87 $582.87 $0.00 Pending 40141A28-028-24-22-0110 6337 Oliver Ave S $223.20 $119.42 $0.00 Pending 39987A28-028-24-23-0013 6512 Oliver Ave S $472.31 $472.31 $0.00 Pending 40105A28-028-24-23-0062 6405 Newton Ave S $451.77 $451.77 $0.00 Pending 40100A28-028-24-23-0064 6400 Newton Ave S $311.46 $311.46 $0.00 Pending 40019A28-028-24-23-0078 6421 Oliver Ave S $574.81 $374.81 $0.00 Pending 40134A28-028-24-23-0115 6505 Newton Ave S $451.77 $451.77 $0.00 Pending 40099A28-028-24-24-0026 6424 Irving Ave S $435.36 $435.36 $0.00 Pending 40071A28-028-24-24-0103 1706 66th St W $910.56 $910.56 $0.00 Pending 40155A28-028-24-24-0122 6531 James Ave S $435.36 $435.36 $0.00 Pending 40070A28-028-24-24-0137 1500 66th St W $582.87 $196.96 $0.00 Pending 40136A28-028-24-32-0044 6645 Oliver Ave S $565.97 $565.97 $0.00 Pending 40228A28-028-24-32-0057 6608 Oliver Ave S $133.35 $133.35 $0.00 Pending 40164A28-028-24-33-0072 6920 Newton Ave S $654.70 $654.70 $0.00 Pending 40246A28-028-24-33-0188 6929 Oliver Ave S $605.03 $605.03 $0.00 Pending 40234A28-028-24-34-0019 6837 James Ave S $192.39 $192.39 $0.00 Pending 40173A28-028-24-34-0079 6917 Knox Ave S $745.94 $745.94 $0.00 Pending 40261A28-028-24-34-0111 6816 James Ave S $646.29 $646.29 $0.00 Pending 40244A28-028-24-34-0118 6838 Knox Ave S $335.54 $335.54 $0.00 Pending 40190 Page 491 of 579 A 28-028-24-34-0138 6940 Irving Ave S $565.97 $565.97 $0.00 Pending 40222A28-028-24-34-0144 6912 Humboldt Ave S $807.63 $807.63 $0.00 Pending 40262A28-028-24-41-0020 917 66th St W $632.40 $632.40 $0.00 Pending 40146A28-028-24-42-0010 1324 68th St W $220.80 $220.80 $0.00 Pending 40185A28-028-24-42-0014 6739 Humboldt Ave S $424.08 $424.08 $0.00 Pending 40198A28-028-24-42-0056 6645 Emerson Ave S $450.61 $450.61 $0.00 Pending 40077A28-028-24-42-0079 6626 Emerson Ave S $402.95 $402.95 $0.00 Pending 40053A28-028-24-43-0004 6839 Humboldt Ave S $707.24 $707.24 $0.00 Pending 40257A29-028-24-11-0016 6237 Thomas Ave S $521.53 $521.53 $0.00 Pending 40117A29-028-24-11-0034 6228 Sheridan Ave S $485.22 $485.22 $0.00 Pending 40107A29-028-24-11-0045 6328 Sheridan Ave S $341.21 $341.21 $0.00 Pending 40033A29-028-24-11-0052 6225 Russell Ave S $104.93 $104.93 $0.00 Pending 39942A29-028-24-11-0064 6329 Russell Ave S $151.77 $151.77 $0.00 Pending 39961A29-028-24-11-0107 6210 Russell Ave S $316.56 $119.85 $0.00 Pending 39955A29-028-24-12-0005 6226 Thomas Ave S $351.77 $351.77 $0.00 Pending 40040A29-028-24-12-0013 6320 Thomas Ave S $246.95 $246.95 $0.00 Pending 40006A29-028-24-12-0036 6210 Upton Ave S $451.77 $451.77 $0.00 Pending 40094A29-028-24-12-0062 6239 Vincent Ave S $282.87 $282.87 $0.00 Pending 40014A29-028-24-12-0071 6214 Vincent Ave S $402.95 $402.95 $0.00 Pending 40055A29-028-24-12-0081 6320 Vincent Ave S $551.80 $551.80 $0.00 Pending 40131A29-028-24-12-0110 6304 Washburn Ave S $534.09 $534.09 $0.00 Pending 40123A29-028-24-12-0122 6239 Xerxes Ave S $729.99 $729.99 $0.00 Pending 40150A29-028-24-12-0130 6301 Xerxes Ave S $667.64 $667.64 $0.00 Pending 40270A29-028-24-13-0002 6532 Thomas Ave S $534.09 $534.09 $0.00 Pending 40127A29-028-24-13-0006 6408 Thomas Ave S $451.77 $451.77 $0.00 Pending 40084A29-028-24-13-0017 6428 Washburn Ave S $534.09 $534.09 $0.00 Pending 40125A29-028-24-13-0019 6440 Washburn Ave S $402.95 $402.95 $0.00 Pending 40060A29-028-24-13-0023 6435 Xerxes Ave S $582.87 $582.87 $0.00 Pending 40142A29-028-24-13-0035 6420 Upton Ave S $248.87 $248.87 $0.00 Pending 40007A29-028-24-13-0068 6408 Vincent Ave S $435.36 $435.36 $0.00 Pending 40069A29-028-24-14-0030 6528 Russell Ave S $562.63 $562.63 $0.00 Pending 40133A29-028-24-14-0040 6429 Russell Ave S $451.77 $451.77 $0.00 Pending 40091A29-028-24-41-0038 6640 Russell Ave S $104.93 $104.93 $0.00 Pending 39941A29-028-24-41-0069 6613 Thomas Ave S $534.09 $534.09 $0.00 Pending 40119A29-028-24-42-0007 6616 Thomas Ave S $485.22 $485.22 $0.00 Pending 40110A29-028-24-42-0012 6636 Thomas Ave S $232.88 $232.88 $0.00 Pending 39995A29-028-24-42-0021 6617 Upton Ave S $117.77 $117.77 $0.00 Pending 39951A29-028-24-42-0034 6640 Upton Ave S $632.40 $632.40 $0.00 Pending 40147A29-028-24-42-0074 6625 Xerxes Ave S $646.29 $646.29 $0.00 Pending 40241A29-028-24-42-0079 6704 Washburn Ave S $470.57 $470.57 $0.00 Pending 40205A29-028-24-42-0082 6716 Washburn Ave S $444.02 $444.02 $0.00 Pending 40203A29-028-24-42-0087 6736 Washburn Ave S $427.79 $427.79 $0.00 Pending 40199A29-028-24-42-0088 6740 Washburn Ave S $565.97 $565.97 $0.00 Pending 40224A29-028-24-42-0104 6708 Vincent Ave S $340.36 $340.36 $0.00 Pending 40191A29-028-24-42-0133 6740 Upton Ave S $231.22 $231.22 $0.00 Pending 40186A29-028-24-42-0148 6701 Washburn Ave S $567.22 $567.22 $0.00 Pending 40232A29-028-24-43-0050 6804 Vincent Ave S $171.89 $171.89 $0.00 Pending 40171A29-028-24-43-0061 6845 Washburn Ave S $565.97 $565.97 $0.00 Pending 40220A29-028-24-44-0039 6809 Russell Ave S $220.80 $220.80 $0.00 Pending 40184A29-028-24-44-0058 6825 Sheridan Ave S $707.24 $707.24 $0.00 Pending 40252A29-028-24-44-0062 6809 Sheridan Ave S $217.77 $217.77 $0.00 Pending 40181A29-028-24-44-0065 6800 Sheridan Ave S $565.97 $565.97 $0.00 Pending 40225A29-028-24-44-0069 6816 Sheridan Ave S $662.66 $662.66 $0.00 Pending 40247A29-028-24-44-0127 6933 Sheridan Ave S $505.02 $505.02 $0.00 Pending 40212A29-028-24-44-0131 6917 Sheridan Ave S $565.97 $565.97 $0.00 Pending 40219A29-028-24-44-0175 6913 Queen Ave S $150.05 $100.05 $0.00 Pending 40168A32-028-24-11-0040 2604 70 1/2 St W $426.03 $426.03 $0.00 Pending 39857A32-028-24-12-0011 7014 Upton Ave S $456.41 $456.41 $0.00 Pending 39860A32-028-24-12-0012 7020 Upton Ave S $443.69 $443.69 $0.00 Pending 39859A32-028-24-12-0066 2901 70th St W $217.70 $217.70 $0.00 Pending 39819A32-028-24-12-0083 2852 72nd St W $676.07 $676.07 $0.00 Pending 39891 Page 492 of 579 A 32-028-24-12-0111 2816 71st St W $156.90 $156.90 $0.00 Pending 39805A32-028-24-12-0113 2808 71st St W $786.09 $786.09 $0.00 Pending 39914A32-028-24-14-0005 7327 Queen Ave S $320.26 $320.26 $0.00 Pending 39840A32-028-24-14-0006 7200 Penn Ave S $680.02 $680.02 $0.00 Pending 39893A32-028-24-42-0025 7545 Upton Ave S $103.04 $103.04 $0.00 Pending 39783A32-028-24-42-0032 7501 Upton Ave S $639.90 $639.90 $0.00 Pending 39886A32-028-24-43-0095 7738 Upton Ave S $672.63 $672.63 $0.00 Pending 39889A33-028-24-14-0049 7343 Colfax Ave S $186.66 $186.66 $0.00 Pending 39811A33-028-24-14-0068 7337 Dupont Ave S $108.64 $108.64 $0.00 Pending 39789A33-028-24-14-0072 7321 Dupont Ave S $700.30 $700.30 $0.00 Pending 39897A33-028-24-14-0081 7228 Lyndale Ave S $690.14 $690.14 $0.00 Pending 39895A33-028-24-14-0106 918 73rd St W $424.27 $424.27 $0.00 Pending 39855A33-028-24-21-0032 7000 James Ave S $827.65 $827.65 $0.00 Pending 40269A33-028-24-21-0090 7144 James Ave S $180.77 $180.77 $0.00 Pending 39810A33-028-24-21-0104 7144 Knox Ave S $507.33 $507.33 $0.00 Pending 39871A33-028-24-22-0048 7027 Oliver Ave S $638.91 $638.91 $0.00 Pending 39885A33-028-24-22-0053 7000 Oliver Ave S $153.48 $153.48 $0.00 Pending 40266A33-028-24-22-0056 7020 Oliver Ave S $787.01 $787.01 $0.00 Pending 39915A33-028-24-23-0046 7201 Newton Ave S $123.31 $123.31 $0.00 Pending 39802A33-028-24-23-0089 7309 Morgan Ave S $679.36 $679.36 $0.00 Pending 39892A33-028-24-23-0098 7335 Penn Ave S $767.00 $767.00 $0.00 Pending 39911A33-028-24-24-0044 7315 Logan Ave S $2,987.87 $2,987.87 $0.00 Pending 40330A33-028-24-32-0016 2018 76th St W $495.06 $495.06 $0.00 Pending 39868A33-028-24-41-0034 7429 Bryant Ave S $929.06 $799.06 $0.00 Pending 39917A33-028-24-41-0078 7417 Dupont Ave S $243.14 $243.14 $0.00 Pending 39825A33-028-24-42-0064 7413 Humboldt Ave S $251.12 $251.12 $0.00 Pending 39826A33-028-24-42-0077 7517 Humboldt Ave S $582.60 $582.60 $0.00 Pending 39877A33-028-24-42-0094 7525 Girard Ave S $111.86 $111.86 $0.00 Pending 39795A34-028-24-11-0039 7114 4th Ave S $774.89 $774.89 $0.00 Pending 39912A34-028-24-11-0044 7144 4th Ave S $801.69 $801.69 $0.00 Pending 39918A34-028-24-11-0045 7145 Clinton Ave S $824.00 $624.00 $0.00 Pending 39880A34-028-24-11-0073 7016 Portland Ave $938.12 $938.12 $0.00 Pending 39930A34-028-24-12-0094 7104 1st Ave S $323.28 $323.28 $0.00 Pending 39842A34-028-24-12-0124 7133 2nd Ave S $242.85 $242.85 $0.00 Pending 39824A34-028-24-13-0014 7315 Nicollet Ave S $802.82 $802.82 $0.00 Pending 39919A34-028-24-13-0055 7245 1st Ave S $480.24 $480.24 $0.00 Pending 39865A34-028-24-13-0107 7221 1st Ave S $761.52 $761.52 $0.00 Pending 39905A34-028-24-13-0108 7217 1st Ave S $426.97 $426.97 $0.00 Pending 39858A34-028-24-13-0138 7204 3rd Ave S $756.15 $756.15 $0.00 Pending 39901A34-028-24-14-0022 7328 Portland Ave $533.94 $533.94 $0.00 Pending 39876A34-028-24-14-0032 7321 5th Ave S $256.00 $256.00 $0.00 Pending 39827A34-028-24-14-0037 7304 5th Ave S $334.34 $334.34 $0.00 Pending 39843A34-028-24-14-0045 7336 5th Ave S $1,045.29 $945.29 $0.00 Pending 39933A34-028-24-14-0101 7305 3rd Ave S $358.43 $358.43 $0.00 Pending 39847A34-028-24-14-0130 7244 Clinton Ave S $513.99 $394.72 $0.00 Pending 39851A34-028-24-22-0080 7105 Garfield Ave S $761.52 $761.52 $0.00 Pending 39904A34-028-24-23-0024 7220 Pleasant Ave $942.37 $942.37 $0.00 Pending 39932A34-028-24-23-0040 7209 Grand Ave $108.87 $108.87 $0.00 Pending 39790A34-028-24-23-0054 7241 Harriet Ave $263.42 $263.42 $0.00 Pending 39830A34-028-24-23-0055 7237 Harriet Ave $761.52 $761.52 $0.00 Pending 39907A34-028-24-23-0064 7200 Harriet Ave $370.96 $370.96 $0.00 Pending 39849A34-028-24-23-0066 7212 Harriet Ave $462.72 $462.72 $0.00 Pending 39863A34-028-24-23-0088 7208 Garfield Ave S $666.86 $666.86 $0.00 Pending 39888A34-028-24-23-0106 7205 Lyndale Ave S $833.01 $833.01 $0.00 Pending 40267A34-028-24-23-0137 7309 Harriet Ave $761.52 $761.52 $0.00 Pending 39908A34-028-24-23-0150 7344 Pleasant Ave $202.58 $202.58 $0.00 Pending 39813A34-028-24-24-0108 7320 Nicollet Ave S $866.49 $866.49 $0.00 Pending 39926A34-028-24-31-0030 7415 Wentworth Ave $635.81 $635.81 $0.00 Pending 39883A34-028-24-31-0052 7424 Pillsbury Ave $327.64 $177.64 $0.00 Pending 39809A34-028-24-31-0065 7506 Pillsbury Ave $201.01 $201.01 $0.00 Pending 39812A34-028-24-31-0101 7530 Blaisdell Ave S $210.99 $210.99 $0.00 Pending 39815 Page 493 of 579 A 34-028-24-32-0010 501 74th St W $520.67 $520.67 $0.00 Pending 39873A34-028-24-32-0036 7538 Grand Ave $1,034.47 $1,034.47 $0.00 Pending 39937A34-028-24-34-0020 7626 Blaisdell Ave S $761.52 $761.52 $0.00 Pending 39909A34-028-24-34-0029 7615 Wentworth Ave $231.94 $231.94 $0.00 Pending 39822A34-028-24-41-0004 7420 Portland Ave $259.98 $259.98 $0.00 Pending 39828A34-028-24-41-0018 7508 Portland Ave $680.02 $680.02 $0.00 Pending 39894A34-028-24-41-0116 7544 4th Ave S $229.71 $229.71 $0.00 Pending 39821A34-028-24-41-0137 7412 4th Ave S $109.57 $109.57 $0.00 Pending 39792A34-028-24-42-0083 7514 Stevens Ave S $817.47 $817.47 $0.00 Pending 39921A34-028-24-42-0108 7527 Stevens Ave S $461.14 $261.14 $0.00 Pending 39829A34-028-24-43-0015 7639 2nd Ave S $761.52 $761.52 $0.00 Pending 39910A34-028-24-43-0035 7615 Stevens Ave S $523.74 $373.74 $0.00 Pending 39875A35-028-24-11-0027 7025 18th Ave S $761.52 $761.52 $0.00 Pending 39903A35-028-24-11-0029 7034 18th Ave S $634.83 $634.83 $0.00 Pending 39882A35-028-24-11-0037 7120 18th Ave S $675.29 $675.29 $0.00 Pending 39890A35-028-24-11-0046 7008 17th Ave S $757.22 $757.22 $0.00 Pending 39902A35-028-24-11-0049 7026 17th Ave S $929.06 $929.06 $0.00 Pending 39929A35-028-24-11-0076 7021 Bloomington Ave S $425.34 $425.34 $0.00 Pending 39856A35-028-24-11-0124 7145 18th Ave S $491.73 $491.73 $0.00 Pending 39867A35-028-24-12-0012 7027 12th Ave S $471.84 $471.84 $0.00 Pending 39864A35-028-24-12-0050 7108 14th Ave S $108.39 $108.39 $0.00 Pending 39788A35-028-24-12-0087 7028 Bloomington Ave S $777.97 $777.97 $0.00 Pending 39913A35-028-24-12-0095 7120 Bloomington Ave S $749.83 $749.83 $0.00 Pending 39900A35-028-24-12-0111 7010 15th Ave S $831.51 $831.51 $0.00 Pending 39922A35-028-24-12-0115 7028 15th Ave S $362.01 $362.01 $0.00 Pending 39848A35-028-24-13-0006 7224 Bloomington Ave S $305.15 $155.15 $0.00 Pending 39837A35-028-24-13-0019 7334 Bloomington Ave S $500.94 $500.94 $0.00 Pending 39869A35-028-24-13-0041 7238 15th Ave S $846.54 $846.54 $0.00 Pending 39923A35-028-24-13-0057 1416 72nd St E $431.12 $431.12 $0.00 Pending 40268A35-028-24-13-0086 7345 13th Ave S $522.09 $522.09 $0.00 Pending 39874A35-028-24-14-0027 7244 17th Ave S $709.75 $709.75 $0.00 Pending 39898A35-028-24-14-0063 7243 18th Ave S $847.44 $847.44 $0.00 Pending 39924A35-028-24-14-0070 7228 18th Ave S $318.86 $168.86 $0.00 Pending 39806A35-028-24-14-0072 7238 18th Ave S $313.28 $313.28 $0.00 Pending 39839A35-028-24-14-0083 7325 17th Ave S $614.45 $614.45 $0.00 Pending 39879A35-028-24-14-0092 7320 17th Ave S $908.16 $908.16 $0.00 Pending 39928A35-028-24-14-0116 7334 Cedar Ave S $120.01 $120.01 $0.00 Pending 39800A35-028-24-22-0106 7100 Columbus Ave S $119.21 $119.21 $0.00 Pending 39799A35-028-24-22-0116 7020 Chicago Ave S $309.43 $309.43 $0.00 Pending 39838A35-028-24-23-0028 7320 Columbus Ave S $217.40 $217.40 $0.00 Pending 39818A35-028-24-23-0038 7315 Park Ave $1,025.59 $1,025.59 $0.00 Pending 39936A35-028-24-23-0073 7200 Columbus Ave S $938.12 $938.12 $0.00 Pending 39931A35-028-24-23-0098 7239 Oakland Ave S $482.96 $482.96 $0.00 Pending 39866A35-028-24-24-0060 7227 10th Ave S $761.52 $761.52 $0.00 Pending 39906A35-028-24-24-0098 7308 Elliot Ave S $223.21 $223.21 $0.00 Pending 39820A35-028-24-24-0127 7209 Chicago Ave S $108.13 $108.13 $0.00 Pending 39787A35-028-24-31-0007 7438 12th Ave S $108.90 $108.90 $0.00 Pending 39791A35-028-24-31-0073 7545 Chicago Ave S $118.65 $118.65 $0.00 Pending 39798A35-028-24-31-0082 7408 11th Ave S $1,007.66 $1,007.66 $0.00 Pending 39935A35-028-24-31-0091 7433 10th Ave S $111.76 $111.76 $0.00 Pending 39794A35-028-24-31-0097 7400 10th Ave S $264.56 $264.56 $0.00 Pending 39831A35-028-24-31-0112 7401 Elliot Ave S $898.77 $898.77 $0.00 Pending 39927A35-028-24-31-0119 7438 Elliot Ave S $353.88 $353.88 $0.00 Pending 39846A35-028-24-32-0004 7431 Portland Ave $721.92 $721.92 $0.00 Pending 39899A35-028-24-32-0009 7415 Portland Ave $107.95 $107.95 $0.00 Pending 39785A35-028-24-32-0042 7533 Park Ave $100.00 $100.00 $0.00 Pending 39779A35-028-24-32-0062 7509 Oakland Ave S $958.77 $958.77 $0.00 Pending 39934A35-028-24-32-0072 7533 Portland Ave $514.63 $514.63 $0.00 Pending 39872A35-028-24-32-0112 7426 Park Ave $815.90 $815.90 $0.00 Pending 39920A35-028-24-33-0040 7620 Oakland Ave S $122.10 $122.10 $0.00 Pending 39801A35-028-24-33-0046 7627 Portland Ave $211.26 $211.26 $0.00 Pending 39816 Page 494 of 579 A 35-028-24-33-0078 7639 Park Ave $424.20 $424.20 $0.00 Pending 39854A35-028-24-34-0013 7638 12th Ave S $101.80 $101.80 $0.00 Pending 39780A35-028-24-34-0023 7600 11th Ave S $108.08 $108.08 $0.00 Pending 39786A35-028-24-34-0053 7609 Elliot Ave S $458.64 $458.64 $0.00 Pending 39862A35-028-24-41-0013 7401 18th Ave S $212.31 $212.31 $0.00 Pending 39817A35-028-24-41-0042 7545 16th Ave S $103.04 $103.04 $0.00 Pending 39782A35-028-24-41-0062 7525 18th Ave S $414.20 $414.20 $0.00 Pending 39853A35-028-24-41-0095 7425 16th Ave S $642.31 $642.31 $0.00 Pending 39887A35-028-24-41-0110 7425 18th Ave S $597.66 $597.66 $0.00 Pending 40265A35-028-24-41-0129 7501 18th Ave S $501.11 $387.30 $0.00 Pending 39870A35-028-24-42-0010 7401 13th Ave S $272.89 $272.89 $0.00 Pending 39832A35-028-24-42-0027 7500 13th Ave S $340.76 $340.76 $0.00 Pending 39845A35-028-24-42-0042 7501 12th Ave S $694.50 $694.50 $0.00 Pending 39896A35-028-24-42-0060 7408 Bloomington Ave S $796.66 $796.66 $0.00 Pending 39916A35-028-24-42-0086 7527 15th Ave S $458.39 $458.39 $0.00 Pending 39861A35-028-24-42-0088 7515 15th Ave S $593.82 $593.82 $0.00 Pending 39878A35-028-24-42-0098 7544 15th Ave S $1,356.68 $956.68 $0.00 Pending 39938 Page 495 of 579 City Council Meeting 10/14/2025 Agenda Section: Public Hearings Agenda Item: 9.b. Report Prepared By: Scott Kulzer, Senior Analyst Department Director: Kristin Asher, Public Works Director Item for Consideration: Public hearing and consider a resolution adopting the assessment on the ILN/77th Street Project Area for $130,596.78 for costs incurred to maintain the area for 2024 and a resolution ordering the undertaking of the current service project within the ILN/77th Street Project Area for 2026. EXECUTIVE SUMMARY The Interstate-Lyndale-Nicollet (ILN)/77th Street Project Area assessment was established to recover special maintenance expenses in the 77th Street area in 1988. The current services include: • Maintenance and operation of irrigation systems • Weed control • Mowing • Fertilization • Trash and litter removal • Re-plantings • Noise wall maintenance • Tree removal, replacement and maintenance These current services are provided on both sides of the 77th Street noise wall. The maintenance functions are funded through a maintenance assessment on 77th Street commercial properties. HISTORICAL CONTEXT • City staff has determined the actual assessment costs of current services for 2024 for the ILN/77th Street Project Area to be $140,106.41. • $130,596.78 in ILN/77th Street Project Area costs remain outstanding and are proposed to be assessed to taxes as of this public hearing because seven (7) properties have already paid their assessments. • The 2024 estimated cost for the services provided was $80,000. The actual costs incurred were much higher than estimated due to the execution of a large Ash tree removal project which accounted for $62,000 of the 2024 costs. • The estimate for 2026 maintenance is $80,000. • Fluctuations in expenditures for maintenance of the 77th Street Project Area are caused by a number of factors: Page 496 of 579 o Changes in water use and irrigation costs; o Concrete repair variations; o Demand for aging infrastructure updates o Noise wall maintenance and repair; o Need for tree removal, replacement or maintenance; and o Need for re-plantings. RECOMMENDED ACTION Conduct and close the public hearing and by motion: 1. Adopt a resolution adopting the assessment on the ILN/77th Street Project Area for $130,596.78 for costs incurred to maintain the area for 2024. 2. Adopt a resolution ordering the undertaking of the current service project within the ILN/77th Street Project Area for 2026. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Strategic Outcome: Adoption of the ILN/77th Street Project Area Assessment resolutions will ensure we "maintain Richfield as an affordable place to live" by recovering costs for the unique services commercial properties are provided in the ILN/77th Street Project Area. Equity: The ILN/77th Street Project Area Assessment allows the City to maintain the 77th Street corridor to a higher standard than would otherwise be possible which serves to benefit the single- and multi-family properties that exist adjacent to and amongst the many commercial properties doing business in the area. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) • Section 825 of the City Code indicates “current services” means one or more of the following: (a) snow, ice, or rubbish removal from sidewalks; (b) weed elimination from streets or private property; (c) removal or elimination of public health or safety hazards from private property, excluding any structure included under the provisions of Minnesota Statutes, sections 463.15 to 463.26; (d) installation or repair of water service lines; (e) street sprinkling, sweeping, or other dust treatment of streets; (f) the trimming and care of trees and the removal of unsound trees from any street; (g) the treatment and removal of insect-infested or diseased trees on private property; (h) the repair of sidewalks and alleys; (i) the operation of a street lighting system; (j) the maintenance of landscaped areas, decorative parks and other public amenities on or adjacent to street right-of-way; and, (k) snow removal and other maintenance of streets in commercial redevelopment areas. Page 497 of 579 • Council ordered the work and the work was completed in 2024. • Resolution No. 7405, adopted in 1988, established a policy for assessing the costs. • Commercial properties are assessed based on their proportion of the total acreage included in the project area; however, all single- and multi-family residential properties, plus the two churches in the area, are exempt from the special assessment levy. • The proposed assessment was properly filed with the City Clerk. • Notice of the public hearing was mailed to all owners described on the assessment roll on September 8, 2025. • The public hearing notice was published in the official newspaper on September 18, 2025. CRITICAL TIMING ISSUES Each year the City shall list the total unpaid charges for current services against each separate lot or parcel to which they are attributable under Section 825 of the City Code. This list is available at the offices of the City Clerk and Public Works. The assessment roll is submitted to the County Auditor and is due to Hennepin County by the end of November annually. FINANCIAL IMPACT • All costs to the City will be recovered through this assessment. • Estimated and actual costs for the ILN/77th Street Project Area maintenance services from 2003-2024 are: YEAR ESTIMATE ACTUAL 2003 $80,000 $59,831.07 2004 $80,000 $63,842.79 2005 $80,000 $64,841.54 2006 $80,000 $69,606.52 2007 $80,000 $77,441.46 2008 $80,000 $77,000.01 2009 $80,000 $62,894.55 2010 $80,000 $64,124.81 2011 $80,000 $72,427.48 2012 $80,000 $78,286.46 2013 $80,000 $59,779.82 2014 $80,000 $71,449.01 2015 $80,000 $59,557.56 2016 $80,000 $71,489.33 2017 $80,000 $77,790.83 2018 $80,000 $71,528.09 2019 $80,000 $54,621.75 2020 $80,000 $45,890.78 2021 $80,000 $51,161.92 Page 498 of 579 2022 $80,000 $43,952.08 2023 $80,000 $85,954.46 2024 $80,000 $140,106.41 LEGAL CONSIDERATIONS The City Attorney will be available to answer questions. ALTERNATIVE RECOMMENDATION(S) None ATTACHMENTS 1. Master Report 2024 ILNAssessment_10-6-2025 2. ILN Project Area Map 3. Resolution adopting 2024 ILN Assessment 4. Resolution ordering ILN Project Area services for 2026 Page 499 of 579 Report Name: SA_MasterPrinted: 10/6/2025Page: 1Special Assessment Master ReportS/A Number: 26058City of RichfieldPayment Number: 0 Of: 1S/A Number:26058Assessment Total: $140,106.41 Interest Rate: 5.00001st Yr. Int. Months: 141st Yr. Payable: 2026Description: 77TH ST MaintOpened Date: 1st Hearing: 2nd Hearing: Levied: Amortization Type: SCounty Admin Fee: $0.00Status: PendingProject Nbr: Fund: Contract Nbr: Fin Acct Nbr: Resolution Number: Continue Calculating Deferred: YesInt Acct Nbr: Sub Status: Street NameClosed DescTotal AssessmentPayoff AmtProperty IDHouseUnitStOrig Assessment$4,508.0233-028-24-43-0019 1401 76th St W$4,508.02A$4,508.02$7,718.0333-028-24-43-0049 2 Meridian Crossings $7,718.03A$7,718.03$8,461.7533-028-24-43-0050 1 Meridian Crossings $8,461.75A$8,461.75$0.0033-028-24-43-0051FREAST77th St W$0.00 ClosedA$445.17$3,624.8133-028-24-44-0110 7610 Lyndale Ave S 200 $3,624.81A$3,624.81$480.9333-028-24-44-0113 7630 Lyndale Ave S $480.93A$480.93$381.9633-028-24-44-0115 7644 Lyndale Ave S $381.96A$381.96$14,644.2133-028-24-44-0231 1000 78th St W $14,644.21A$14,644.21$12,605.0933-028-24-44-0232 710 78th St W $12,605.09A$12,605.09$0.0033-028-24-44-0233 7700 Lyndale Ave S$0.00 ClosedA$919.86$663.0133-028-24-44-0234 704 78th St W$663.01A$663.01$466.7633-028-24-44-0235 980 78th St W$466.76A$466.76$914.0733-028-24-44-0236$914.07A$914.07$2,838.0434-028-24-33-0081 7745 Lyndale Ave S $2,838.04A$2,838.04$258.9734-028-24-33-0082 7701 Lyndale Ave S $258.97A$258.97$1,907.7734-028-24-33-0087 301 77th St W$1,907.77A$1,907.77$4,085.2234-028-24-33-0088 351 77th St W$4,085.22A$4,085.22$985.0434-028-24-33-0150 7645 Lyndale Ave S $985.04A$985.04$985.0434-028-24-33-0151 7645 Lyndale Ave S $985.04A$985.04$985.0434-028-24-33-0152 7645 Lyndale Ave S $985.04A$985.04$985.0434-028-24-33-0153 7645 Lyndale Ave S $985.04A$985.04$985.0434-028-24-33-0154 7645 Lyndale Ave S $985.04A$985.04$985.0434-028-24-33-0155 7645 Lyndale Ave S $985.04A$985.04$11,691.4834-028-24-33-0156 401 77th St W $11,691.48A$11,691.48$559.8034-028-24-34-0001 84 78th St W$559.80A$559.80$3,648.5934-028-24-34-0053 200 78th St W$3,648.59A$3,648.59Page 500 of 579 Report Name: SA_MasterPrinted: 10/6/2025Page: 2Special Assessment Master ReportS/A Number: 26058City of RichfieldStreet NameClosed DescTotal AssessmentPayoff AmtProperty IDHouseUnitStOrig Assessment$0.0034-028-24-34-0054 7700 Wentworth Ave $0.00 Paid at CityA$787.55$786.2634-028-24-34-0055 7720 Wentworth Ave $786.26A$786.26$905.2734-028-24-34-0056 100 78th St W$905.27A$905.27$1,314.8134-028-24-34-0057 7721 Pillsbury Ave $1,314.81A$1,314.81$209.6834-028-24-34-0058 7715 Pillsbury Ave $209.68A$209.68$183.4734-028-24-34-0059 7717 Pillsbury Ave $183.47A$183.47$393.7734-028-24-34-0060 7709 Pillsbury Ave $393.77A$393.77$393.8234-028-24-34-0061 7701 Pillsbury Ave $393.82A$393.82$0.0034-028-24-34-0065 7700 Nicollet Ave S $0.00 Paid at CityA$728.54$688.2734-028-24-34-0066 7720 Nicollet Ave S $688.27A$688.27$0.0034-028-24-34-0073 7700 Pillsbury Ave$0.00 ClosedA$1,597.28$1,573.6834-028-24-43-0005 7740 2nd Ave S $1,573.68A$1,573.68$908.7034-028-24-43-0077 7745 2nd Ave S$908.70A$908.70$15,956.9134-028-24-43-0078 7701 Nicollet Ave S $15,956.91A$15,956.91$399.7134-028-24-44-0024 7708 5th Ave S$399.71A$399.71$398.3934-028-24-44-0025 7714 5th Ave S$398.39A$398.39$401.7134-028-24-44-0028 415 77th St E$401.71A$401.71$623.1934-028-24-44-0030 7715 4th Ave S$623.19A$623.19$1,135.8034-028-24-44-0031 7744 5th Ave S$1,135.80A$1,135.80$1,433.6934-028-24-44-0032 345 77th St E$1,433.69A$1,433.69$1,216.7834-028-24-44-0037 308 78th St E$1,216.78A$1,216.78$871.7235-028-24-33-0006 7701 Portland Ave $871.72A$871.72$808.6335-028-24-33-0008 7733 Portland Ave $808.63A$808.63$949.0835-028-24-34-0002 7744 12th Ave S$949.08A$949.08$1,826.1735-028-24-43-0008 1200 78th St E$1,826.17A$1,826.17$6,395.5435-028-24-43-0077 1401 77th St E$6,395.54A$6,395.54$5,452.9835-028-24-44-0010 1525 77th St E$5,452.98A$5,452.98$0.0035-028-24-44-0033 1620 78th St E$0.00 ClosedA$3,654.23$0.0035-028-24-44-0034 1600 78th St E 1 $0.00 ClosedA$1,377.00A Total: $130,596.7855A Count: $130,596.78$140,106.41Grand Total:$130,596.7855Total Count:$130,596.78$140,106.41Page 501 of 579 12th Ave SBloomington Ave S14th Ave S15th Ave S13th Ave SElliot Ave S11th Ave S10th Ave S77th St E 76th St E Frontage Rd 77thStEFrontageRd 78th St E 78th St E 494 WASHINGTON 1120 1200 1401 1620 1600 1525 MENARDS 78th St W 77th St W Frontage Rd 77th St W 2nd Ave SChicago Ave S4th Ave SWentworth Ave SOaklandAveSPark Ave S1st Ave S3rd Ave SStevens Ave SBlaisdell Ave SColumbus Ave SElliot Ave S76th St E Frontage Rd77th St E Frontage Rd 78thStE 77th St E 5th Ave S78th St E494 494 52 35 ROOSEVELT 7701 7740 308 607 84 7700 7720 7745 7708 7714 415 7715 7744 345 7733 SHOPS AT LYNDALEUS BANCORP 76th St W 76th St W Lyndale Ave SM e ridia n CrossingsGirard Ave S77th St WEmerson Ave SDupont Ave SColfax Ave SBryant Ave SAldrich Ave SGarfield Ave SHarriet Ave SGrand Ave SPleasant Ave SPillsbury Ave SWentworth Ave SBlaisdell Ave S78th St W 77th St W Frontage Rd77th St W Frontage Rd Market Dr 78th St W 494 35W 494 7610 7700 7701 200700980 1000 7700 1401 2 1 7644 501 7745 7701 351 7645 84 7700 7720 100 7721 7715 7717 7709 7700 7720 7630 710 301 52 31 32 35 53 INSET MAP #0 250 500 Feet 1 inch = 500 feet The City of Richfield makes no representation or warranties, express or implied, with respect to the reuse of the data provided herewith,regardless of its format or the means of its transmission. There is noguarantee or representation to the user as to the accuracy, currency,suitability, or reliability of this data for any purpose. The user accepts the data “as is”, and assumes all risks associated with its use. Interstate-Lyndale-Nicollet (ILN) Assessment District Richfield, Minnesota I:\GIS\Projects\PublicWorks\Streets\ILNAssessment\ILNAssessment_ALL\ILNAssessment_ALL.aprx/ILN Assessment Map | Scale: 1:6,000 | Revision Date: 9/3/2025 | Author: AEglinton2024 Assessed Parcel Assessment District Page 502 of 579 RESOLUTION NO. RESOLUTION ADOPTING ASSESSMENT ON INTERSTATE-LYNDALE-NICOLLET (ILN) PROJECT AREA MAINTENANCE FOR THE PERIOD JANUARY 1, 2024 TO DECEMBER 31, 2024 WHEREAS, pursuant to proper notice duly given as required by law, the council has met and passed upon all objections to the proposed assessment for current services related to maintenance of the ILN Project Area, which is approximately bounded by I-35W, 77th Street, I-494 and Cedar Avenue. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. Such proposed assessment roll in the total amount of $130,596.78 is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed current services in the amount of assessment levied against it. 2. Such assessment shall be payable before or during 2026 and shall bear interest at the rate of five percent (5%) from the date of adoption of this assessment resolution. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property before November 15, 2025 with no interest accrued. 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the property tax lists of the County and such assessment shall be collected and paid over in the same manner in other municipal taxes. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October, 2025. _______________________________ Mary Supple, Mayor ATTEST: Michelle Friedrich, City Clerk Page 503 of 579 RESOLUTION NO. RESOLUTION ORDERING THE UNDERTAKING OF CURRENT SERVICE PROJECT WITHIN THE INTERSTATE-LYNDALE-NICOLLET (ILN) PROJECT AREA FOR THE PERIOD JANUARY 1, 2026 TO DECEMBER 31, 2026 WHEREAS, pursuant to ordinance, the City Council of the City of Richfield did establish a special assessment district and did propose that certain current services be undertaken by the City in the ILN Project Area, approximately bounded by I-35W, 77th Street, I-494 and Cedar Avenue and that the cost of such services be specially assessed against benefited property; and WHEREAS, the City Council of the City of Richfield did also by such resolution set the date of the public hearing on the undertaking of such current service project and the levying of special assessment to bear the cost thereof; and WHEREAS, following due notice, such public hearing was held on October 14, 2025, at which time all interested parties desiring to be heard were given an opportunity to be heard. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota as follows: 1. That the following examples of current services of the City shall be undertaken by the City within the ILN Project Area, which area constitutes the special assessment district with the exception of residential properties and the two churches in the area, with the cost of such services to be specially assessed against the benefited property within the district: a. Snow, ice or rubbish removal; b. Weed elimination; c. Elimination or removal of public health or safety hazards from private property, excluding any structure included under the provisions of Minnesota Statutes Section 463.15 to 463.26; d. Installation and repair of water service lines; e. Street sprinkling or other dust treatment of streets; f. The treatment and removal of insect-infested or diseased trees on private property; g. Trimming and care of trees and the removal of unsound trees; h. Repair of sidewalks, crosswalks and other pedestrian walkways; i. Operation of the street lighting system; j. Maintenance of landscaped areas and other public amenities on or adjacent to street right-of-way; and k. Snow removal and other maintenance of streets. Page 504 of 579 2. The work to be performed may be by day labor, by City force, by contract, or by any combination thereof. 3. The designated period of the project shall be from January 1, 2026, through December 31, 2026. Costs of the project shall be in the manner provided in the Richfield Code of Ordinances. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October, 2025. ____________________________ Mary Supple, Mayor ATTEST: ____________________________ Michelle Friedrich, City Clerk Page 505 of 579 City Council Meeting 10/14/2025 Agenda Section: Public Hearings Agenda Item: 9.c. Report Prepared By: Scott Kulzer, Senior Analyst Department Director: Kristin Asher, Public Works Director Item for Consideration: Public hearing and consider a resolution adopting special assessments for removal of diseased trees from private property for work ordered from January 1, 2024, through December 31, 2024. EXECUTIVE SUMMARY The health of trees within municipal limits is threatened by shade tree diseases and it is the City’s responsibility to control and prevent the spread of these diseases. If the City deems it necessary to remove a diseased tree on private property, the property owners have three options available: 1. Remove the tree themselves; 2. Hire and pay for their own contractor to remove the tree; or 3. Hire their own contractor and request the cost of the tree removal be assessed against their property tax. In the period from January 1, 2024, through December 31, 2024, twenty-four (24) property owners chose to assess or were designated for assessment, and four (4) property owners have since paid off their entire balance. The total amount to be assessed is currently $45,420.15 across twenty (20) properties. HISTORICAL CONTEXT In the early 1970’s, the City of Richfield began a shade tree disease program to assist homeowners in the removal of diseased trees on private property. The following process is how the City ensures property owners are aware of their diseased tree(s). Notification to Property Owners At time of marking for removal, paperwork is left at the property which includes: • Removal deadline; • Reason the tree was marked for removal; • Assessment information; • Information regarding private contractors; • A card postmarked to the City informing the City of owner's removal plans; and • City staff contacts for more information. If the tree becomes hazardous or is past the removal deadline the City sends an Page 506 of 579 additional deadline letter to the property owner. The letter is sent to the last known owner as obtained from Hennepin County Property Records and verified by our utility billing records. Occupied Properties On confirmed occupied properties, property owners with diseased private trees have three options available for tree removal: 1. Remove the tree themselves; 2. Hire and pay their own contractor; or 2. Hire and pay their own contractor; or 3. Hire their own contractor and request the cost of the tree removal be assessed against their property tax. Vacant Properties In cases where the property is vacant and no owner can be found, removals must be ordered when trees have passed the removal deadline or become hazardous. A contractor then performs the removal and the cost is assessed to the property. In 2024, no vacant properties had trees removed in this manner. RECOMMENDED ACTION By Motion: Conduct and close the public hearing and adopt a resolution for special assessments for removal of diseased trees from private property for work ordered from January 1, 2024, through December 31, 2024. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Strategic Outcome: By adopting this assessment resolution the City is leveraging its "financial capacity to deliver essential services" by assisting residents with removal of hazardous trees and spreading the cost burden over a five-year period. Equity: The City is leveraging its financial resources to help residents who would otherwise be financially burdened by paying for the removal of their diseased or hazardous trees. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) • The work has been completed with prior approval from the affected residents; except in cases of vacant properties. • Minnesota State Statute requires the County be notified of all special assessments. • The proposed assessment was properly filed with the City Clerk. • Notices of the assessment hearing were mailed to the owner of each parcel described in the assessment roll on September 8, 2025. • The public hearing notice was published in the official newspaper on September 18, 2025 in advance of the October 14, 2025 public hearing. CRITICAL TIMING ISSUES • The unpaid charges for the removal of the diseased trees must be certified for special assessment to the County Auditor along with current taxes as stated in City Code 910.23. Page 507 of 579 • The assessment roll is submitted to the County Auditor and must be reported to Hennepin County by the end of November annually. FINANCIAL IMPACT • The costs to be assessed for the removal of diseased trees on private property for work ordered during the period January 1, 2024, through December 31, 2024, have been determined to be $45,420.15. • The property owner may pay the original principal amount without interest before November 15, 2025. After that deadline, no payments can be accepted by the City. • Assessment balances certified to property tax are charged interest at the rate of five percent (5%) per year. • The original source of funding to have the work done is through the City’s Permanent Improvement Revolving Fund. LEGAL CONSIDERATIONS The City Attorney will be available to answer any questions. ALTERNATIVE RECOMMENDATION(S) None ATTACHMENTS 1. Diseased Trees Assessment Roll 2. Diseased Tree Assessment Resolution Page 508 of 579 Report Name: SA_MasterPrinted: 10/6/2025Page: 1Special Assessment Master ReportS/A Number: 26059City of RichfieldPayment Number: 0 Of: 5S/A Number:26059Assessment Total: $47,970.30 Interest Rate: 5.00001st Yr. Int. Months: 141st Yr. Payable: 2026Description: 25 TREESOpened Date: 1st Hearing: 2nd Hearing: Levied: Amortization Type: SCounty Admin Fee: $0.00Status: PendingProject Nbr: Fund: Contract Nbr: Fin Acct Nbr: Resolution Number: Continue Calculating Deferred: YesInt Acct Nbr: Sub Status: Street NameClosed DescTotal AssessmentPayoff AmtProperty IDHouseUnitStOrig Assessment$352.7126-028-24-12-0002 6220 13th Ave S$352.71A$352.71$0.0026-028-24-13-0137 6530 14th Ave S$0.00 Paid at CityA$329.43$3,255.7526-028-24-33-0130 6809 Portland Ave $3,255.75A$3,255.75$5,914.6127-028-24-33-0122 6817 Lyndale Ave S $5,914.61A$5,914.61$3,527.0627-028-24-44-0011 6845 5th Ave S$3,527.06A$3,527.06$0.0028-028-24-13-0043 1406 66th St W$0.00 Paid at CityA$524.99$636.7728-028-24-21-0032 6226 Irving Ave S $636.77A$636.77$4,123.9528-028-24-33-0155 6940 Morgan Ave S $4,123.95A$4,123.95$759.6829-028-24-13-0023 6435 Xerxes Ave S $759.68A$759.68$4,411.5433-028-24-13-0072 7337 Fremont Ave S $4,411.54A$4,411.54$2,013.1433-028-24-14-0006 7340 Lyndale Ave S $2,013.14A$2,013.14$2,013.1433-028-24-14-0007 7344 Lyndale Ave S $2,013.14A$2,013.14$732.5533-028-24-21-0032 7000 James Ave S $732.55A$732.55$1,994.1533-028-24-42-0005 7416 Dupont Ave S $1,994.15A$1,994.15$0.0034-028-24-22-0054 7147 Lyndale Ave S$0.00 Paid at CityA$1,207.35$1,629.9234-028-24-32-0005 401 74th St W$1,629.92A$1,629.92$1,752.6834-028-24-32-0035 7532 Grand Ave $1,752.68A$1,752.68$6,771.9734-028-24-42-0010 7439 2nd Ave S $6,771.97A$6,771.97$1,953.4534-028-24-42-0028 7427 Stevens Ave S $1,953.45A$1,953.45$612.5035-028-24-14-0079 7305 17th Ave S$612.50A$612.50$1,003.8635-028-24-21-0046 7045 Chicago Ave S $1,003.86A$1,003.86$0.0035-028-24-22-0098 7101 Columbus Ave S $488.38 Paid at CityA$488.38$420.5435-028-24-31-0072 7544 Elliot Ave S$420.54A$420.54$1,540.1835-028-24-31-0119 7438 Elliot Ave S $1,540.18A$1,540.18A Total: $45,908.5324A Count: $45,420.15$47,970.30Page 509 of 579 Report Name: SA_MasterPrinted: 10/6/2025Page: 2Special Assessment Master ReportS/A Number: 26059City of RichfieldStreet NameClosed DescTotal AssessmentPayoff AmtProperty IDHouseUnitStOrig AssessmentGrand Total:$45,908.5324Total Count:$45,420.15$47,970.30Page 510 of 579 RESOLUTION NO. RESOLUTION ADOPTING ASSESSMENT FOR THE REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR WORK ORDERED FROM JANUARY 1, 2024 THROUGH DECEMBER 31, 2024 WHEREAS, costs have been determined for the removal of diseased trees from private properties in the City of Richfield and the expenses incurred for such work ordered during the period of January 1, 2024 through December 31, 2024 amount to $45,420.15. WHEREAS, pursuant to proper notice duly given as required by law, the council has met and passed upon all objections to the proposed assessment for current services related to the removal of diseased trees from private properties in the City of Richfield and the expenses incurred for such work ordered during the period of January 1, 2024 through December 31, 2024. AddressNOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota: 1. Such proposed assessment roll, in the amount of $45,420.15, is hereby accepted and shall constitute the special assessment against the lands named herein, and each tract of land therein included is hereby found to be benefited by the proposed current services in the amount of the assessment levied against it. 2. Such assessment shall be payable in no more than five annual installments and shall bear interest at the rate of five (5%) percent from the date of adoption of this assessment resolution. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property to the City’s Finance Division before November 15, 2025 without interest accrued. 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the property tax lists of the County and such assessments shall be collected and paid over in the same manner as other municipal taxes. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October, 2025. ______________________________ Mary Supple, Mayor ATTEST: _____________________________ Michelle Friedrich, City Clerk Page 511 of 579 City Council Meeting 10/14/2025 Agenda Section: Public Hearings Agenda Item: 9.d. Report Prepared By: Scott Kulzer, Senior Analyst Department Director: Kristin Asher, Public Works Director Item for Consideration: Public hearing and consider a resolution adopting special assessments for sanitary sewer line repair or replacement on private property for work ordered from January 1, 2024, through August 1, 2025. EXECUTIVE SUMMARY The Sanitary Sewer Line Special Assessment Program (Program) was developed with the aim of lessening the financial burden residents experience when their sanitary sewer line fails. The Program allows the City to pay the initial cost of a given sewer repair and then recoup those costs from the property via special assessment over a 5- year period. This allows a property owner to have the sewer repaired quickly but to pay off the costs of the work over a more manageable timeline. From January 1, 2024 to August 1, 2025, thirteen (13) properties chose to participate in the Program which resulted in $93,371.00 in sewer repairs being paid by the City. HISTORICAL CONTEXT In 2024 Public Works created the Program with the goal of helping Richfield property owners with the high costs often required to repair or replace a property's existing sanitary sewer service line. Property owners and the City of Richfield collectively have an interest in ensuring that sanitary sewer service lines are functioning as designed. Failed sanitary sewer lines can result in sewer back-ups inside private property and the discharge of sewage into the ground. Left unrepaired, an inoperable sanitary sewer line will make a property legally uninhabitable. RECOMMENDED ACTION By Motion: Conduct and close the public hearing and adopt a resolution for special assessments for sanitary sewer line repair or replacement on private property for work ordered from January 1, 2024, through August 1, 2025. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Strategic Outcome: By adopting this assessment resolution the City is leveraging its "financial capacity to deliver essential services" by assisting residents with the repair or replacement of their sanitary sewer lines and spreading the cost burden over a five-year period. Equity: The City is leveraging its financial resources to help residents who would otherwise be financially burdened by paying for the repair or replacement of their Page 512 of 579 sanitary sewer lines. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) • The work has been completed with prior approval from the affected residents. • Minnesota State Statute requires the County be notified of all special assessments. • The proposed assessment was properly filed with the City Clerk. • Notices of the assessment hearing were mailed to the owner of each parcel described in the assessment roll on September 8, 2025. • The public hearing notice was published in the official newspaper on September 18, 2025 in advance of the October 14, 2025 public hearing. CRITICAL TIMING ISSUES • The unpaid charges for the repair or replacement of sanitary sewer lines must be certified for special assessment to the County Auditor along with current taxes as stated in City Code 910.23. • The assessment roll is submitted to the County Auditor and must be reported to Hennepin County by the end of November annually. • The assessment period for this initial round of sanitary sewer line special assessments is January 1, 2024 to August 1, 2025 because the program debuted in early 2024 but did not see any applicants until the latter half of 2024. Subsequent assessment periods will span for the typical 12-month period (e.g., August 2, 2025 to August 1, 2026). FINANCIAL IMPACT • The costs to be assessed for the repair or replacement of sanitary sewer lines on private property for work ordered during the period January 1, 2024, through August 1, 2025, have been determined to be $93,371.00. • The property owner may pay the original principal amount without interest before November 15, 2025. After that deadline, no payments can be accepted by the City. • Assessment balances certified to property tax are charged interest at the rate of five percent (5%) per year. LEGAL CONSIDERATIONS The City Attorney will be available to answer questions. ALTERNATIVE RECOMMENDATION(S) None ATTACHMENTS 1. Sewer Assessment Resolution 2. Sewer Assessment Roll Page 513 of 579 RESOLUTION NO. RESOLUTION ADOPTING ASSESSMENT FOR THE REPAIR OR REPLACEMENT OF SANITARY SEWER LINES ON PRIVATE PROPERTY FOR WORK ORDERED FROM JANUARY 1, 2024 THROUGH AUGUST 1, 2025 WHEREAS, costs have been determined for the repair or replacement of sanitary sewer lines on private property in the City of Richfield and the expenses incurred for such work ordered during the period of January 1, 2024 through August 1, 2025 amount to $93,371.00. WHEREAS, pursuant to proper notice duly given as required by law, the council has met and passed upon all objections to the proposed assessments for repair or replacement of sanitary sewer lines on private properties in the City of Richfield and the expenses incurred for such work ordered during the period of January 1, 2024 through August 1, 2025. AddressNOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota: 1. Such proposed assessment roll, in the amount of $93,371.00, is hereby accepted and shall constitute the special assessment against the lands named herein, and each tract of land therein included is hereby found to be benefited by the services in the amount of the assessment levied against it. 2. Such assessment shall be payable in no more than five annual installments and shall bear interest at the rate of five (5%) percent from the date of adoption of this assessment resolution. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property to the City’s Finance Division before November 15, 2025 without interest accrued. 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the property tax lists of the County and such assessments shall be collected and paid over in the same manner as other municipal taxes. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October, 2025. ______________________________ Mary Supple, Mayor ATTEST: _____________________________ Michelle Friedrich, City Clerk Page 514 of 579 Report Name: SA_MasterPrinted: 10/6/2025Page: 1Special Assessment Master ReportS/A Number: 26060City of RichfieldPayment Number: 0 Of: 5S/A Number:26060Assessment Total: $93,371.00 Interest Rate: 5.00001st Yr. Int. Months: 141st Yr. Payable: 2026Description: 2025 Sewer Assessment Roll for TY 2026Opened Date: 1st Hearing: 2nd Hearing: Levied: Amortization Type: SCounty Admin Fee: $0.00Status: PendingProject Nbr: Fund: Contract Nbr: Fin Acct Nbr: Resolution Number: Continue Calculating Deferred: YesInt Acct Nbr: Sub Status: Street NameClosed DescTotal AssessmentPayoff AmtProperty IDHouseUnitStOrig Assessment$9,910.0026-028-24-31-0043 6615 Elliot Ave S $9,910.00A$9,910.00$13,000.0026-028-24-44-0084 6920 18th Ave S $13,000.00A$13,000.00$9,000.0027-028-24-11-0055 6321 4th Ave S$9,000.00A$9,000.00$6,200.0027-028-24-11-0074 6339 Clinton Ave S $6,200.00A$6,200.00$6,200.0027-028-24-34-0077 6839 Pillsbury Ave $6,200.00A$6,200.00$6,511.0029-028-24-44-0103 6933 Thomas Ave S $6,511.00A$6,511.00$2,600.0032-028-24-11-0007 7004 Penn Ave S $2,600.00A$2,600.00$7,850.0033-028-24-22-0056 7020 Oliver Ave S $7,850.00A$7,850.00$5,940.0034-028-24-31-0019 7414 Blaisdell Ave S $5,940.00A$5,940.00$9,760.0034-028-24-41-0062 7433 Clinton Ave S $9,760.00A$9,760.00$4,000.0035-028-24-22-0024 7005 Park Ave$4,000.00A$4,000.00$6,200.0035-028-24-31-0093 7421 10th Ave S $6,200.00A$6,200.00$6,200.0035-028-24-31-0116 7420 Elliot Ave S $6,200.00A$6,200.00A Total: $93,371.0013A Count: $93,371.00$93,371.00Grand Total:$93,371.0013Total Count:$93,371.00$93,371.00Page 515 of 579 City Council Meeting 10/14/2025 Agenda Section: Public Hearings Agenda Item: 9.e. Report Prepared By: Michelle Friedrich, City Clerk Department Director: Lisa Paradise, Assistant Finance Director Mary Bogie, Interim Finance Director Item for Consideration: Public hearing and consider a resolution adopting the proposed assessments of delinquent utility accounts, false alarm charges, public health or safety hazards charges, weed eradication charges, and vacant property registration fees to be certified to property taxes. EXECUTIVE SUMMARY Minnesota State Statutes 444.075, 429.101, and 429.061 provide that certain unpaid charges may be assessed against the benefiting property. Chapter VII of the Richfield Code of Ordinances provide that unpaid water, sanitary sewer, storm water, and street light charges may be certified to the county auditor to be included in a property owner’s annual property tax bill. Section 925.02 Subd. 5, Section 915.07 Sub. 3 and chapter 8.02 of the City Charter provide that the City is allowed to specially assess delinquent fees. The City Code also authorizes a certification fee to be charged against each delinquent account. By certifying the delinquent charges to the property taxes, the City is assured of collection of the charges. The delinquent accounts must be certified to the County Auditor in order for the City to collect the charges through the property tax payment process. Property owners have been notified that any unpaid charges or fees may be assessed against the property. HISTORICAL CONTEXT Staff expects that, as in years past, many of the now delinquent accounts will be paid before final certification to the County. Utility Billing: The pending delinquent 2025 Utility billing charges are $561,036.19, compared to $516,723.01 at the same time last year. In 2024, the City ultimately certified $425,161.40 due to some property owners paying their delinquent bill prior to the deadline. False Alarms: The pending delinquent 2025 charges are $1,300.00 compared to prior year’s amount of $2,800.00 at the same time last year. Page 516 of 579 Public Health or Safety Hazards: The pending delinquent 2025 charges are $3,471.50, compared to $3,100.00 at the same time last year. Weed Eradication: The pending delinquent 2025 charges are $0 compared to $0 at the same time last year. Vacant Property: The pending delinquent 2025 fees are $4,325.00, compared to $2,700.00 at the same time last year. RECOMMENDED ACTION 1. Conduct and close the public hearing. 2. By motion: Approve the attached resolution authorizing certification of unpaid water, sanitary sewer, storm water, and street light charges, false alarm charges, public health or safety hazard charges, weed eradication charges and vacant property registration fees to the county auditor to be collected with other taxes on said properties. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) Minnesota State Statutes 444.075 and 429.101 and Chapter VII of the Richfield Code of Ordinances provide that unpaid water, sanitary sewer, storm water, street light charges may be certified to the county auditor to be included in a property owner’s annual property tax bill. Notice of Certification to Property Taxes was mailed to the Richfield property owners on September 8, 2025 for delinquent false alarm, public health / safety hazards, weed eradication, and vacant property accounts. The notice of a public hearing regarding the proposed assessment of delinquent utility bills was published in the Sun Current on September 11, 2025. Additionally, the public hearing notice regarding proposed assessment of vacant properties, weed eradication, false alarms, and public health / safety hazards was published on September 11, 2025. CRITICAL TIMING ISSUES To pay the delinquent amount and avoid certification, the entire past due amount must Page 517 of 579 be paid by November 14, 2025. FINANCIAL IMPACT Utility Billing: The pending delinquent 2025 utility charges total $561,036.19 for 817 accounts. A $50.00 certification fee will be added to each account. False Alarms: The pending delinquent 2025 charges are $1,300.00. Unpaid alarm charges are subject to a 10% penalty charge if not paid within 30 days and is included in the amount listed above. Public Health or Safety Hazards: The pending delinquent 2025 charges are $3,471.50. A $25.00 administrative fee is charged to all properties. Weed Eradication: The pending delinquent 2025 amount for weed eradication from private property is $0. A $25.00 administrative fee is charged to all properties. Vacant Property: The pending delinquent 2025 amount for vacant property registration fees is $4,325.00. A $25.00 administrative fee is charged to all properties. Unpaid Charges: The affected property owner may pay the original principal amount without interest or penalties within 30 days from the date the Council adopts the assessment. If the original charge remains unpaid beyond the 30 days, the charges will be assessed to the property and will include additional charges for penalties as noted above as well as bear an interest rate of 5% from the date of adoption of the assessment resolution. The certified amount is spread over a period of one year. LEGAL CONSIDERATIONS There are no legal issues apparent at this time. The City Attorney will be available to answer questions. ALTERNATIVE RECOMMENDATION(S) None. ATTACHMENTS 1. Resolution Page 518 of 579 2. UB_Certification_2025 3. 26057_Master Nuisance Report 2025 4. 26056_Master False Alarm Report 2025 5. 26055_Master Vacant Report 2025 Page 519 of 579 RESOLUTION NO. --- RESOLUTION AUTHORIZING CERTIFICATION OF UNPAID WATER, SANITARY SEWER, STORM WATER, AND STREET LIGHT CHARGES, FALSE ALARM CHARGES, WEED ERADICATION CHARGES, PUBLIC HEAL TH OR SAFETY HAZARD CHARGES, AND VACANT PROPERTY REGISTRATION FEES TO THE COUNTY AUDITOR TO BE COLLECTED WITH OTHER TAXES ON SAID PROPERTIES WHEREAS, pursuant to proper notice duly given as required by law, the City Council has met and passed upon all objections to the proposed assessment for current services from private properties in the City of Richfield; and WHEREAS, all sums delinquent become assessable against the property serviced under Ordinance Code 705, 715, 720 as adopted by the City of Richfield and guided under Minnesota Statutes 444.075, 429.101 and 429.061; and WHEREAS, the certification list has been prepared specifying the amount that shall be certified against each property that remains unpaid after November 14, 2025. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1.Such proposed assessment roll as indicated on the October 14th list provided to Council is hereby accepted and each property is found to be benefited by the proposed current services in the amount of the assessment. 2.The total amount listed on the assessment list that remain unpaid will be assessed against each particular property. 3.A $50 certification fee shall be levied against each utility billing delinquent account certified. 4.A $25 administrative fee shall be levied against each certified public health or safety hazard unpaid charge, weed eradication unpaid charge, and vacant property unpaid charge. 5.The above-described certification list will be spread over a period of one year at the rate of 5% per annum. 6.The total unpaid amount will be certified to the County Auditor for collection withother taxes on said properties. 7.A copy of the resolution shall be sent to the Hennepin County Auditor. Adopted by the City Council of the City of Richfield, Minnesota, this 14th day of October, 2025. Mary B. Supple, Mayor ATTEST: Michelle Friedrich, City Clerk Page 520 of 579 Account #Service Address Town/City Certification Balance 0317763400 6301 16TH AVE S RICHFIELD $317.58 0131767440 6744 QUEEN AVE S RICHFIELD $796.31 0116629061 2906 66TH ST W RICHFIELD $271.80 0223364280 6428 5TH AVE S RICHFIELD $616.97 0242871040 7104 STEVENS AVE S RICHFIELD $285.39 0132268080 6808 LOGAN AVE S RICHFIELD $437.55 0331472260 7226 CHICAGO AVE S RICHFIELD $127.33 0111463200 6320 THOMAS AVE S RICHFIELD $50.74 0222866080 6608 STEVENS AVE S RICHFIELD $202.59 0131766200 6620 QUEEN AVE S RICHFIELD $9,316.79 0131766450 6645 QUEEN AVE S RICHFIELD $7,791.37 0331772380 7238 11TH AVE S RICHFIELD $1,155.31 0321967450 6745 13TH AVE S RICHFIELD $139.50 0121568090 6809 SHERIDAN AVE S RICHFIELD $670.02 0142071090 7109 NEWTON AVE S RICHFIELD $268.91 0233075200 7520 3RD AVE S RICHFIELD $88.48 0222669090 6909 NICOLLET AVE S RICHFIELD $721.07 0141973000 7300 OLIVER AVE S RICHFIELD $893.58 0141773270 7327 QUEEN AVE S RICHFIELD $1,088.59 0212476150 7615 WENTWORTH AVE S RICHFIELD $1,188.75 0216609100 910 66TH ST W RICHFIELD $170.62 0231175250 7525 GIRARD AVE S RICHFIELD $1,363.50 0312165210 6521 15TH AVE S RICHFIELD $829.91 0321568300 6830 ELLIOT AVE S RICHFIELD $16.29 0116622080 2208 66TH ST W RICHFIELD $999.21 0222368210 6821 PILLSBURY AVE S RICHFIELD $448.89 0212362290 6229 PILLSBURY AVE S RICHFIELD $1,998.88 0223364010 6401 5TH AVE S RICHFIELD $216.48 0242375060 7506 PILLSBURY AVE S RICHFIELD $693.77 0326706190 619 67TH ST E RICHFIELD $1,235.93 0331373200 7320 COLUMBUS AVE S RICHFIELD $1,084.57 0332571200 7120 18TH AVE S RICHFIELD $1,326.02 0233375200 7520 5TH AVE S RICHFIELD $899.83 0321066300 6630 PORTLAND AVE S RICHFIELD $971.31 0322469270 6927 17TH AVE S RICHFIELD $667.55 0311763270 6327 11TH AVE S RICHFIELD $438.27 0232073380 7338 HARRIET AVE S RICHFIELD $678.51 0231174400 7440 GIRARD AVE S RICHFIELD $237.20 0316401001 6401 RICHFIELD PKWY RICHFIELD $3,807.35 0242374120 7412 PILLSBURY AVE S RICHFIELD $124.74 0141873250 7325 PENN AVE S RICHFIELD $1,061.64 0121669280 6928 RUSSELL AVE S RICHFIELD $1,069.36 Page 521 of 579 0231373290 7329 EMERSON AVE S RICHFIELD $844.78 0210263521 6352 LYNDALE AVE S E201 RICHFIELD $83.13 0111362100 6210 UPTON AVE S RICHFIELD $1,235.12 0212674140 7414 NICOLLET AVE S RICHFIELD $1,000.99 0332473250 7325 17TH AVE S RICHFIELD $967.95 0341276210 7621 PARK AVE S RICHFIELD $2,869.00 0212162280 6228 GRAND AVE S RICHFIELD $119.56 0316615060 1504 66TH ST E RICHFIELD $1,219.18 0341376150 7615 COLUMBUS AVE S RICHFIELD $233.42 0332172380 7238 15TH AVE S RICHFIELD $1,557.99 0222269440 6944 PLEASANT AVE S RICHFIELD $556.63 0310064230 6423 16TH AVE S RICHFIELD $498.62 0112263400 6340 LOGAN AVE S RICHFIELD $561.14 0147430200 3020 74TH ST W RICHFIELD $124.20 0111364200 6420 UPTON AVE S RICHFIELD $194.07 0231275290 7529 FREMONT AVE S RICHFIELD $164.92 0214109000 900 MILDRED DR RICHFIELD $157.17 0234071090 7109 AUGSBURG AVE S RICHFIELD $513.08 0321668450 6845 10TH AVE S RICHFIELD $169.85 0218403520 352 APPLE LA RICHFIELD $62.50 0138326040 2604 70 1/2 ST W RICHFIELD $484.13 0222168010 6801 GRAND AVE S RICHFIELD $936.46 0212574260 7426 BLAISDELL AVE S RICHFIELD $1,287.66 0222767260 6726 1ST AVE S RICHFIELD $528.61 0242873200 7320 STEVENS AVE S RICHFIELD $869.80 0142371450 7145 KNOX AVE S RICHFIELD $247.23 0312064550 6455 16TH AVE S RICHFIELD $140.49 0341575210 7521 ELLIOT AVE S RICHFIELD $255.25 0242973450 7345 2ND AVE S RICHFIELD $21.81 0341075380 7538 PORTLAND AVE S RICHFIELD $822.35 0222369260 6926 PILLSBURY AVE S RICHFIELD $1,363.60 0222966170 6617 2ND AVE S RICHFIELD $1,043.66 0321666330 6633 10TH AVE S RICHFIELD $862.38 0342276140 7614 BLOOMINGTON AVE S RICHFIELD $116.47 0132569290 6929 IRVING AVE S RICHFIELD $697.59 0141074270 7427 XERXES AVE S RICHFIELD $699.05 0237309180 918 73RD ST W RICHFIELD $777.36 0310063650 6365 16TH AVE S RICHFIELD $6.75 0332573000 7300 18TH AVE S RICHFIELD $1,020.64 0331273270 7327 PARK AVE S RICHFIELD $380.69 0141970200 7020 OLIVER AVE S RICHFIELD $949.49 0232073210 7321 HARRIET AVE S RICHFIELD $717.01 0142073200 7320 NEWTON AVE S RICHFIELD $106.07 0243070210 7021 3RD AVE S RICHFIELD $60.87 Page 522 of 579 0223268210 6821 4TH AVE S RICHFIELD $98.84 0321768040 6804 11TH AVE S RICHFIELD $898.81 0132166050 6605 MORGAN AVE S RICHFIELD $104.02 0222767370 6737 1ST AVE S RICHFIELD $261.45 0322468260 6826 17TH AVE S RICHFIELD $972.54 0331772140 7214 11TH AVE S RICHFIELD $903.66 0312365080 6508 16TH AVE S RICHFIELD $1,891.09 0142471060 7106 JAMES AVE S RICHFIELD $932.23 0341474320 7432 CHICAGO AVE S RICHFIELD $267.86 0321367360 6736 COLUMBUS AVE S RICHFIELD $418.33 0212464010 6401 WENTWORTH AVE S RICHFIELD $347.05 0112064240 6424 NEWTON AVE S RICHFIELD $28.82 0312064300 6430 14TH AVE S RICHFIELD $73.56 0214110000 1000 MILDRED DR RICHFIELD $28.07 0342075090 7509 14TH AVE S RICHFIELD $54.21 0137128160 2816 71ST ST W RICHFIELD $793.23 0312163240 6324 15TH AVE S RICHFIELD $602.70 0233370450 7045 5TH AVE S RICHFIELD $811.70 0322166450 6645 15TH AVE S RICHFIELD $169.85 0311862140 6214 12TH AVE S RICHFIELD $740.14 0121068210 6821 XERXES AVE S RICHFIELD $498.25 0310063410 6341 16TH AVE S RICHFIELD $456.42 0212564140 6414 BLAISDELL AVE S RICHFIELD $133.65 0231475440 7544 DUPONT AVE S RICHFIELD $1,015.67 0342276320 7632 BLOOMINGTON AVE S RICHFIELD $768.95 0141773260 7326 QUEEN AVE S RICHFIELD $220.32 0312263450 6345 BLOOMINGTON AVE S RICHFIELD $796.88 0316215050 1505 62ND ST E RICHFIELD $491.36 0131868130 6813 PENN AVE S RICHFIELD $58.36 0212965090 6509 2ND AVE S RICHFIELD $459.10 0241877000 7700 LYNDALE AVE S RICHFIELD $829.89 0141377380 7738 UPTON AVE S RICHFIELD $1,064.29 0332072250 7225 14TH AVE S RICHFIELD $632.27 0138428240 2824 71 1/2 ST W RICHFIELD $1,063.22 0332272240 7224 BLOOMINGTON AVE S RICHFIELD $2,006.33 0312064080 6408 14TH AVE S RICHFIELD $5.31 0331873450 7345 12TH AVE S RICHFIELD $1,017.50 0141772200 7220 QUEEN AVE S RICHFIELD $1,324.42 0221968450 6845 GARFIELD AVE S RICHFIELD $176.24 0341475210 7521 CHICAGO AVE S RICHFIELD $1,355.68 0121468240 6824 THOMAS AVE S RICHFIELD $335.90 0342374240 7424 16TH AVE S RICHFIELD $147.90 0123067000 6700 GIRARD AVE S RICHFIELD $217.93 0132569240 6924 IRVING AVE S RICHFIELD $919.36 Page 523 of 579 0312062200 6220 14TH AVE S RICHFIELD $141.21 0321068120 6812 PORTLAND AVE S RICHFIELD $255.94 0332271200 7120 BLOOMINGTON AVE S RICHFIELD $1,016.68 0242076080 7608 HARRIET AVE S RICHFIELD $1,192.69 0242771400 7140 1ST AVE S RICHFIELD $71.73 0111664290 6429 RUSSELL AVE S RICHFIELD $566.47 0332371250 7125 16TH AVE S RICHFIELD $644.55 0232769510 6951 1ST AVE S RICHFIELD $119.56 0331571440 7144 ELLIOT AVE S RICHFIELD $145.18 0331870090 7009 12TH AVE S RICHFIELD $326.37 0342174330 7433 15TH AVE S RICHFIELD $490.90 0341174140 7414 OAKLAND AVE S RICHFIELD $1,008.42 0121167160 6716 WASHBURN AVE S RICHFIELD $660.74 0222767180 6718 1ST AVE S RICHFIELD $547.63 0322068120 6812 14TH AVE S RICHFIELD $2,209.86 0132569400 6940 IRVING AVE S RICHFIELD $1,432.07 0212477270 7727 WENTWORTH AVE S RICHFIELD $1,741.04 0322569380 6938 18TH AVE S RICHFIELD $535.46 0223365200 6520 5TH AVE S RICHFIELD $701.16 0312365240 6524 16TH AVE S RICHFIELD $646.58 0121269200 6920 VINCENT AVE S RICHFIELD $54.08 0242474090 7409 WENTWORTH AVE S RICHFIELD $1,302.80 0321368150 6815 COLUMBUS AVE S RICHFIELD $17.85 0112465310 6531 JAMES AVE S RICHFIELD $638.06 0311962200 6220 13TH AVE S RICHFIELD $1,078.65 0222966090 6609 2ND AVE S RICHFIELD $943.08 0341875140 7514 12TH AVE S RICHFIELD $918.65 0321569040 6904 ELLIOT AVE S RICHFIELD $66.69 0142372080 7208 KNOX AVE S RICHFIELD $525.75 0234071130 7113 AUGSBURG AVE S RICHFIELD $896.47 0123067200 6720 GIRARD AVE S RICHFIELD $124.74 0211365360 6536 EMERSON AVE S RICHFIELD $828.57 0141572380 7238 SHERIDAN AVE S RICHFIELD $466.99 0231074130 7413 HUMBOLDT AVE S RICHFIELD $982.47 0141274090 7409 VINCENT AVE S RICHFIELD $791.88 0233374160 7416 5TH AVE S RICHFIELD $49.03 0212575200 7520 BLAISDELL AVE S RICHFIELD $661.99 0342075390 7539 14TH AVE S RICHFIELD $513.71 0141074340 7434 XERXES AVE S EDINA $192.08 0332273140 7314 BLOOMINGTON AVE S RICHFIELD $1,973.39 0331072110 7211 PORTLAND AVE S RICHFIELD $410.26 0332572040 7204 18TH AVE S RICHFIELD $243.08 0233370390 7039 5TH AVE S RICHFIELD $1,108.00 0341576090 7609 ELLIOT AVE S RICHFIELD $504.53 Page 524 of 579 0331372440 7244 COLUMBUS AVE S RICHFIELD $328.08 0111262150 6215 VINCENT AVE S RICHFIELD $635.10 0132369170 6917 KNOX AVE S RICHFIELD $630.49 0218403550 355 APPLE LA RICHFIELD $329.33 0243171330 7133 CLINTON AVE S RICHFIELD $20.21 0332571140 7114 18TH AVE S RICHFIELD $1,078.73 0316613100 1310 66TH ST E RICHFIELD $1,230.27 0121566370 6637 SHERIDAN AVE S RICHFIELD $136.32 0321868440 6844 12TH AVE S RICHFIELD $244.95 0111463250 6325 THOMAS AVE S RICHFIELD $726.17 0341075160 7516 PORTLAND AVE S RICHFIELD $496.99 0137029010 2901 70TH ST W RICHFIELD $564.10 0212362340 6234 PILLSBURY AVE S RICHFIELD $488.84 0242972440 7244 2ND AVE S RICHFIELD $259.56 0212676090 7609 NICOLLET AVE S RICHFIELD $1,422.61 0326806260 626 68TH ST E RICHFIELD $1,423.23 0111963370 6337 OLIVER AVE S RICHFIELD $400.00 0234071190 7119 AUGSBURG AVE S RICHFIELD $400.83 0321568380 6838 ELLIOT AVE S RICHFIELD $87.86 0121668090 6809 RUSSELL AVE S RICHFIELD $695.37 0141377260 7726 UPTON AVE S RICHFIELD $402.51 0218403270 327 APPLE LANE RICHFIELD $64.53 0341774080 7408 11TH AVE S RICHFIELD $969.91 0332472040 7204 17TH AVE S RICHFIELD $499.58 0331073280 7328 PORTLAND AVE S RICHFIELD $1,711.11 0132175000 7500 MORGAN AVE S RICHFIELD $616.83 0321166280 6628 OAKLAND AVE S RICHFIELD $251.14 0231373360 7336 EMERSON AVE S RICHFIELD $374.61 0241877450 7745 LYNDALE AVE S RICHFIELD $167.94 0321669150 6915 10TH AVE S RICHFIELD $205.26 0212563050 6305 BLAISDELL AVE S RICHFIELD $122.71 0212965320 6532 2ND AVE S RICHFIELD $193.00 0132066200 6620 NEWTON AVE S RICHFIELD $607.81 0248202150 215 PILLSBURY LN RICHFIELD $0.30 0321168240 6824 OAKLAND AVE S RICHFIELD $953.54 0332572280 7228 18TH AVE S RICHFIELD $1,207.26 0212963210 6321 2ND AVE S RICHFIELD $536.88 0243073240 7324 3RD AVE S RICHFIELD $134.60 0212477200 7720 WENTWORTH AVE S RICHFIELD $2,118.59 0321967380 6738 13TH AVE S RICHFIELD $432.12 0131370010 7001 UPTON AVE S RICHFIELD $142.90 0212676450 7645 NICOLLET AVE S RICHFIELD $84.75 0332271140 7114 BLOOMINGTON AVE S RICHFIELD $276.04 0242172410 7241 GRAND AVE S RICHFIELD $502.84 Page 525 of 579 0121669330 6933 RUSSELL AVE S RICHFIELD $119.02 0342574140 7414 18TH AVE S RICHFIELD $709.44 0121476200 7620 THOMAS AVE S RICHFIELD $675.07 0112063010 6301 NEWTON AVE S RICHFIELD $234.66 0242673080 7308 NICOLLET AVE S RICHFIELD $1,734.74 0111964210 6421 OLIVER AVE S RICHFIELD $1,154.77 0331973090 7309 13TH AVE S RICHFIELD $277.27 0332573010 7301 18TH AVE S RICHFIELD $737.91 0231674010 7401 BRYANT AVE S RICHFIELD $352.10 0341276150 7615 PARK AVE S RICHFIELD $147.48 0341274260 7426 PARK AVE S RICHFIELD $837.16 0322470260 7026 17TH AVE S RICHFIELD $938.30 0311763150 6315 11TH AVE S RICHFIELD $664.85 0141873350 7335 PENN AVE S RICHFIELD $658.53 0342574010 7401 18TH AVE S RICHFIELD $1,977.65 0231972280 7228 GARFIELD AVE S RICHFIELD $110.80 0243271380 7138 4TH AVE S RICHFIELD $182.87 0132469350 6935 JAMES AVE S RICHFIELD $207.57 0131370140 7014 UPTON AVE S RICHFIELD $487.95 0242670050 7005 NICOLLET AVE S RICHFIELD $723.95 0147430200 3020 74TH ST W RICHFIELD $222.83 0112064050 6405 NEWTON AVE S RICHFIELD $626.17 0332472340 7234 17TH AVE S RICHFIELD $1,444.48 0223366200 6620 5TH AVE S RICHFIELD $564.69 0218403560 356 APPLE LA RICHFIELD $812.22 0231473090 7309 DUPONT AVE S RICHFIELD $438.63 0222269090 6909 PLEASANT AVE S RICHFIELD $124.74 0312365040 6504 16TH AVE S RICHFIELD $105.26 0341774210 7421 11TH AVE S RICHFIELD $583.01 0312265120 6512 BLOOMINGTON AVE S RICHFIELD $1,075.23 0211763130 6313 ALDRICH AVE S RICHFIELD $653.39 0316214210 1421 62ND ST E RICHFIELD $791.91 0121368130 6813 UPTON AVE S RICHFIELD $30.00 0331970440 7044 13TH AVE S RICHFIELD $70.85 0232072000 7200 HARRIET AVE S RICHFIELD $1,358.72 0111163140 6314 WASHBURN AVE S RICHFIELD $75.25 0111662150 6215 RUSSELL AVE S RICHFIELD $7.43 0243070090 7009 3RD AVE S RICHFIELD $17.73 0212575300 7530 BLAISDELL AVE S RICHFIELD $534.53 0141972330 7233 OLIVER AVE S RICHFIELD $410.85 0342274350 7435 BLOOMINGTON AVE S RICHFIELD $124.74 0242175380 7538 GRAND AVE S RICHFIELD $818.58 0332170100 7010 15TH AVE S RICHFIELD $1,129.78 0321668010 6801 10TH AVE S RICHFIELD $716.20 Page 526 of 579 0311764450 6445 11TH AVE S RICHFIELD $325.40 0141872000 7200 PENN AVE S RICHFIELD $552.49 0322069010 6901 14TH AVE S RICHFIELD $754.66 0123062260 6226 GIRARD AVE S RICHFIELD $860.41 0321468010 6801 CHICAGO AVE S RICHFIELD $827.90 0222875270 7527 STEVENS AVE S RICHFIELD $1,804.24 0123064090 6409 GIRARD AVE S RICHFIELD $281.06 0141375270 7527 UPTON AVE S RICHFIELD $365.93 0237308000 800 73RD ST W RICHFIELD $945.34 0341376330 7633 COLUMBUS AVE S RICHFIELD $695.79 0331872080 7208 12TH AVE S RICHFIELD $593.92 0242972400 7240 2ND AVE S RICHFIELD $767.30 0212865330 6533 STEVENS AVE S RICHFIELD $119.56 0138428450 2845 71 1/2 ST W RICHFIELD $159.48 0322467150 6715 17TH AVE S RICHFIELD $578.05 0132269370 6937 LOGAN AVE S RICHFIELD $142.86 0233714080 1408 LAKE SHORE DR RICHFIELD $297.14 0111463150 6315 THOMAS AVE S RICHFIELD $1,441.40 0222569080 6908 BLAISDELL AVE S RICHFIELD $1,470.35 0216609250 925 66TH ST W RICHFIELD $558.39 0341876320 7632 12TH AVE S RICHFIELD $285.51 0311065000 6500 PORTLAND AVE S RICHFIELD $446.54 0121465270 6527 THOMAS AVE S RICHFIELD $145.33 0341775200 7520 11TH AVE S RICHFIELD $956.71 0231574390 7439 COLFAX AVE S RICHFIELD $730.00 0237405210 521 74TH ST W RICHFIELD $352.33 0311064120 6412 PORTLAND AVE S RICHFIELD $1,234.59 0211663150 6315 BRYANT AVE S RICHFIELD $1,537.37 0331872390 7239 12TH AVE S RICHFIELD $408.33 0132468160 6816 JAMES AVE S RICHFIELD $416.66 0243073050 7305 3RD AVE S RICHFIELD $754.00 0231473210 7321 DUPONT AVE S RICHFIELD $1,019.20 0142273000 7300 LOGAN AVE S RICHFIELD $743.17 0331771320 7132 11TH AVE S RICHFIELD $363.70 0331570440 7044 ELLIOT AVE S RICHFIELD $339.00 0212476320 7632 WENTWORTH AVE S RICHFIELD $938.89 0121569410 6941 SHERIDAN AVE S RICHFIELD $109.20 0321667330 6733 10TH AVE S RICHFIELD $733.08 0222666330 6633 NICOLLET AVE S RICHFIELD $650.66 0111963240 6324 OLIVER AVE S RICHFIELD $732.10 0121366400 6640 UPTON AVE S RICHFIELD $186.90 0212963380 6338 2ND AVE S RICHFIELD $533.02 0342176010 7601 15TH AVE S RICHFIELD $114.38 0233970450 7045 OAK GROVE BLVD RICHFIELD $41.76 Page 527 of 579 0231573150 7315 COLFAX AVE S RICHFIELD $633.68 0341574000 7400 ELLIOT AVE S RICHFIELD $393.29 0222167160 6716 GRAND AVE S RICHFIELD $273.67 0233373050 7305 5TH AVE S RICHFIELD $104.02 0331872450 7245 12TH AVE S RICHFIELD $1,808.38 0131070090 7009 XERXES AVE S RICHFIELD $267.19 0341075140 7514 PORTLAND AVE S RICHFIELD $1,246.47 0241875450 7545 LYNDALE AVE S RICHFIELD $2,515.90 0312162320 6232 15TH AVE S RICHFIELD $710.52 0332573200 7320 18TH AVE S RICHFIELD $31.95 0112162350 6235 MORGAN AVE S RICHFIELD $362.94 0132568150 6815 IRVING AVE S RICHFIELD $692.61 0231275290 7529 FREMONT AVE S RICHFIELD $73.66 0141375450 7545 UPTON AVE S RICHFIELD $354.83 0212162370 6237 GRAND AVE S RICHFIELD $467.80 0121466120 6612 THOMAS AVE S RICHFIELD $552.65 0243071150 7115 3RD AVE S RICHFIELD $1,269.11 0242173380 7338 GRAND AVE S RICHFIELD $88.48 0331372000 7200 COLUMBUS AVE S RICHFIELD $521.89 0211962360 6236 GARFIELD AVE S RICHFIELD $188.91 0222966250 6625 2ND AVE S RICHFIELD $159.48 0321268520 6852 PARK AVE S RICHFIELD $686.46 0233374450 7445 5TH AVE S RICHFIELD $427.64 0322470200 7020 17TH AVE S RICHFIELD $147.51 0141174030 7403 WASHBURN AVE S RICHFIELD $461.81 0237312200 1220 73RD ST W RICHFIELD $1,364.48 0111064350 6435 XERXES AVE S RICHFIELD $546.95 0231275080 7508 FREMONT AVE S RICHFIELD $1,299.23 0243272200 7220 4TH AVE S RICHFIELD $358.42 0242773200 7320 1ST AVE S RICHFIELD $139.35 0212962390 6239 2ND AVE S RICHFIELD $1,037.03 0212763390 6339 1ST AVE S RICHFIELD $618.92 0332472440 7244 17TH AVE S RICHFIELD $998.85 0342668140 6814 CEDAR AVE S RICHFIELD $713.06 0121268040 6804 VINCENT AVE S RICHFIELD $436.29 0242671370 7137 NICOLLET AVE S RICHFIELD $114.38 0331772320 7232 11TH AVE S RICHFIELD $736.26 0322066310 6631 14TH AVE S RICHFIELD $34.35 0322368440 6844 16TH AVE S RICHFIELD $591.33 0212576260 7626 BLAISDELL AVE S RICHFIELD $282.03 0137619200 1920 76TH ST W RICHFIELD $1,500.24 0312164250 6425 15TH AVE S RICHFIELD $1,295.02 0232072370 7237 HARRIET AVE S RICHFIELD $906.91 0112162210 6221 MORGAN AVE S RICHFIELD $581.44 Page 528 of 579 0342276150 7615 BLOOMINGTON AVE S RICHFIELD $731.84 0228601450 145 66TH ST E RICHFIELD $835.81 0341175390 7539 OAKLAND AVE S RICHFIELD $1,065.10 0142470110 7011 JAMES AVE S RICHFIELD $650.16 0142173090 7309 MORGAN AVE S RICHFIELD $1,162.92 0112164200 6420 MORGAN AVE S RICHFIELD $175.57 0243270320 7032 4TH AVE S RICHFIELD $578.53 0121167010 6701 WASHBURN AVE S RICHFIELD $645.24 0112162110 6211 MORGAN AVE S RICHFIELD $1,158.95 0233375320 7532 5TH AVE S RICHFIELD $958.29 0132169130 6913 MORGAN AVE S RICHFIELD $49.79 0111163040 6304 WASHBURN AVE S RICHFIELD $508.85 0331470220 7022 CHICAGO AVE S RICHFIELD $86.95 0142470000 7000 JAMES AVE S RICHFIELD $997.73 0222368440 6844 PILLSBURY AVE S RICHFIELD $283.49 0112163250 6325 MORGAN AVE S RICHFIELD $17.27 0222774120 7412 1ST AVE S RICHFIELD $61.74 0223169000 6900 CLINTON AVE S RICHFIELD $297.38 0331273150 7315 PARK AVE S RICHFIELD $648.85 0243070200 7020 3RD AVE S RICHFIELD $353.99 0233368150 6815 5TH AVE S RICHFIELD $610.97 0233075090 7509 3RD AVE S RICHFIELD $481.22 0321069170 6917 PORTLAND AVE S RICHFIELD $172.87 0331672150 7215 10TH AVE S RICHFIELD $697.73 0141673380 7338 RUSSELL AVE S RICHFIELD $104.02 0222367250 6725 PILLSBURY AVE S RICHFIELD $903.74 0312263570 6357 BLOOMINGTON AVE S RICHFIELD $127.33 0141971330 7133 OLIVER AVE S RICHFIELD $861.78 0312363140 6314 16TH AVE S RICHFIELD $1,415.62 0213063000 6300 3RD AVE S RICHFIELD $219.98 0141074300 7430 XERXES AVE S EDINA $69.41 0242075440 7544 HARRIET AVE S RICHFIELD $440.03 0331571260 7126 ELLIOT AVE S RICHFIELD $366.56 0332372440 7244 16TH AVE S RICHFIELD $1,033.75 0332571150 7115 18TH AVE S RICHFIELD $920.27 0243271000 7100 4TH AVE S RICHFIELD $1,254.02 0233370310 7031 5TH AVE S RICHFIELD $519.59 0132269450 6945 LOGAN AVE S RICHFIELD $565.36 0341876270 7627 12TH AVE S RICHFIELD $1,665.33 0223067130 6713 3RD AVE S RICHFIELD $579.54 0112464050 6405 JAMES AVE S RICHFIELD $369.25 0232976200 7620 2ND AVE S RICHFIELD $666.01 0121567210 6721 SHERIDAN AVE S RICHFIELD $128.98 0132668390 6839 HUMBOLDT AVE S RICHFIELD $858.02 Page 529 of 579 0342276080 7608 BLOOMINGTON AVE S RICHFIELD $1,163.27 0121569170 6917 SHERIDAN AVE S RICHFIELD $501.98 0223169440 6944 CLINTON AVE S RICHFIELD $298.96 0321369330 6933 COLUMBUS AVE S RICHFIELD $710.22 0141372380 7238 UPTON AVE S RICHFIELD $638.20 0131969450 6945 OLIVER AVE S RICHFIELD $713.36 0321769100 6910 11TH AVE S RICHFIELD $627.22 0131966080 6608 OLIVER AVE S RICHFIELD $56.17 0341075440 7544 PORTLAND AVE S RICHFIELD $672.61 0311763010 6301 11TH AVE S RICHFIELD $542.84 0332471010 7101 17TH AVE S RICHFIELD $571.33 0121567090 6709 SHERIDAN AVE S RICHFIELD $554.66 0121368200 6820 UPTON AVE S RICHFIELD $596.83 0132767330 6733 OAKLAND TER RICHFIELD $1,667.09 0122562440 6244 IRVING AVE S RICHFIELD $374.44 0321769350 6935 11TH AVE S RICHFIELD $608.81 0213063200 6320 3RD AVE S RICHFIELD $1,376.99 0121066330 6633 XERXES AVE S RICHFIELD $601.96 0312264150 6415 BLOOMINGTON AVE S RICHFIELD $516.54 0341176210 7621 OAKLAND AVE S RICHFIELD $706.06 0132169000 6900 MORGAN AVE S RICHFIELD $548.13 0131170140 7014 WASHBURN AVE S RICHFIELD $435.00 0233373040 7304 5TH AVE S RICHFIELD $1,069.67 0332572450 7245 18TH AVE S RICHFIELD $688.28 0242872050 7205 STEVENS AVE S RICHFIELD $92.23 0342175270 7527 15TH AVE S RICHFIELD $842.13 0132469260 6926 JAMES AVE S RICHFIELD $619.86 0341176200 7620 OAKLAND AVE S RICHFIELD $516.35 0112364050 6405 KNOX AVE S RICHFIELD $248.56 0342176090 7609 15TH AVE S RICHFIELD $875.11 0212564290 6429 BLAISDELL AVE S RICHFIELD $171.06 0121466160 6616 THOMAS AVE S RICHFIELD $658.68 0231475331 7533 DUPONT AVE S RICHFIELD $338.58 0138428000 2800 71 1/2 ST W RICHFIELD $314.12 0138323120 2312 70 1/2 ST W RICHFIELD $342.57 0132468040 6804 JAMES AVE S RICHFIELD $943.66 0141374320 7432 UPTON AVE S RICHFIELD $300.55 0332372350 7235 16TH AVE S RICHFIELD $921.66 0341776000 7600 11TH AVE S RICHFIELD $1,996.00 0212863140 6314 STEVENS AVE S RICHFIELD $438.72 0332473150 7315 17TH AVE S RICHFIELD $613.56 0332371340 7134 16TH AVE S RICHFIELD $1,188.76 0331473270 7327 CHICAGO AVE S RICHFIELD $86.55 0222267040 6704 PLEASANT AVE S RICHFIELD $991.02 Page 530 of 579 0233374160 7416 5TH AVE S RICHFIELD $149.56 0111462370 6237 THOMAS AVE S RICHFIELD $843.61 0111563010 6301 SHERIDAN AVE S RICHFIELD $960.60 0213065390 6539 3RD AVE S RICHFIELD $205.45 0212676270 7627 NICOLLET AVE S RICHFIELD $564.54 0312263180 6318 BLOOMINGTON AVE S RICHFIELD $827.42 0231074270 7427 HUMBOLDT AVE S RICHFIELD $109.20 0122565100 6510 IRVING AVE S RICHFIELD $9.28 0341875010 7501 12TH AVE S RICHFIELD $700.22 0331871260 7126 12TH AVE S RICHFIELD $184.56 0331471220 7122 CHICAGO AVE S RICHFIELD $605.57 0141970270 7027 OLIVER AVE S RICHFIELD $2,361.46 0111262390 6239 VINCENT AVE S RICHFIELD $751.70 0231775370 7537 ALDRICH AVE S RICHFIELD $262.92 0223269260 6926 4TH AVE S RICHFIELD $58.85 0316615360 1536 66TH ST E RICHFIELD $527.27 0312364280 6428 16TH AVE S RICHFIELD $66.82 0242672000 7200 NICOLLET AVE S RICHFIELD $36.70 0222875140 7514 STEVENS AVE S RICHFIELD $852.60 0321969200 6920 13TH AVE S RICHFIELD $1,002.07 0210163544 6356 LYNDALE AVE S W104 RICHFIELD $17.39 0223267060 6706 4TH AVE S RICHFIELD $564.26 0223068380 6838 3RD AVE S RICHFIELD $812.02 0211763000 6300 ALDRICH AVE S RICHFIELD $1,052.84 0222867470 6747 STEVENS AVE S RICHFIELD $451.39 0341874270 7427 12TH AVE S RICHFIELD $1,017.57 0121466130 6613 THOMAS AVE S RICHFIELD $1,081.06 0222876150 7615 STEVENS AVE S RICHFIELD $850.68 0141871330 7133 PENN AVE S RICHFIELD $26.08 0111563200 6320 SHERIDAN AVE S RICHFIELD $259.59 0121369440 6944 UPTON AVE S RICHFIELD $511.06 0112162240 6224 MORGAN AVE S RICHFIELD $36.85 0132969960 6996 HUMBOLDT AVE S RICHFIELD $140.95 0222569260 6926 BLAISDELL AVE S RICHFIELD $371.84 0211364160 6416 EMERSON AVE S RICHFIELD $527.07 0211663000 6300 BRYANT AVE S RICHFIELD $820.08 0121569330 6933 SHERIDAN AVE S RICHFIELD $627.91 0231274050 7405 FREMONT AVE S RICHFIELD $576.08 0212562290 6229 BLAISDELL AVE S RICHFIELD $204.89 0242472210 7221 WENTWORTH AVE S RICHFIELD $159.48 0321869380 6938 12TH AVE S RICHFIELD $622.77 0341174200 7420 OAKLAND AVE S RICHFIELD $1,160.14 0138329110 2911 70 1/2 ST W RICHFIELD $680.05 0315163130 6313 16TH AVE S RICHFIELD $39.62 Page 531 of 579 0121168370 6837 WASHBURN AVE S RICHFIELD $640.02 0141673000 7300 RUSSELL AVE S RICHFIELD $2,870.23 0322569270 6927 18TH AVE S RICHFIELD $862.66 0331873080 7308 12TH AVE S RICHFIELD $333.08 0112165200 6520 MORGAN AVE S RICHFIELD $978.88 0342474200 7420 17TH AVE S RICHFIELD $454.00 0121167360 6736 WASHBURN AVE S RICHFIELD $431.98 0223262320 6232 4TH AVE S RICHFIELD $839.86 0243172210 7221 CLINTON AVE S RICHFIELD $31.25 0322369200 6920 16TH AVE S RICHFIELD $1,091.07 0121268320 6832 VINCENT AVE S RICHFIELD $854.87 0142272200 7220 LOGAN AVE S RICHFIELD $254.07 0141772270 7227 QUEEN AVE S RICHFIELD $477.20 0331172380 7238 OAKLAND AVE S RICHFIELD $169.85 0341675080 7508 10TH AVE S RICHFIELD $429.79 0231772250 7225 ALDRICH AVE S RICHFIELD $448.42 0212865010 6501 STEVENS AVE S RICHFIELD $105.64 0311962140 6214 13TH AVE S RICHFIELD $1,166.13 0112364140 6414 KNOX AVE S RICHFIELD $342.44 0233373360 7336 5TH AVE S RICHFIELD $978.25 0231973160 7316 GARFIELD AVE S RICHFIELD $141.14 0231776000 7600 ALDRICH AVE S RICHFIELD $135.24 0223366040 6604 5TH AVE S RICHFIELD $263.24 0111262140 6214 VINCENT AVE S RICHFIELD $980.75 0216405000 500 64TH ST W RICHFIELD $836.50 0321169320 6932 OAKLAND AVE S RICHFIELD $623.56 0332573280 7328 18TH AVE S RICHFIELD $52.95 0222569330 6933 BLAISDELL AVE S RICHFIELD $273.87 0242871000 7100 STEVENS AVE S RICHFIELD $1,270.17 0332472380 7238 17TH AVE S RICHFIELD $599.20 0242871210 7121 STEVENS AVE S RICHFIELD $608.62 0332473050 7305 17TH AVE S RICHFIELD $614.13 0223164010 6401 CLINTON AVE S RICHFIELD $940.71 0341674000 7400 10TH AVE S RICHFIELD $677.23 0132569460 6946 IRVING AVE S RICHFIELD $179.03 0311765350 6535 11TH AVE S RICHFIELD $177.44 0243171450 7145 CLINTON AVE S RICHFIELD $742.95 0342674440 7444 CEDAR AVE S RICHFIELD $11,569.77 0341575440 7544 ELLIOT AVE S RICHFIELD $301.63 0331270240 7024 PARK AVE S RICHFIELD $1,361.11 0111164280 6428 WASHBURN AVE S RICHFIELD $169.85 0121568000 6800 SHERIDAN AVE S RICHFIELD $730.85 0212062290 6229 HARRIET AVE S RICHFIELD $546.70 0332573450 7345 18TH AVE S RICHFIELD $1,115.99 Page 532 of 579 0332170390 7039 15TH AVE S RICHFIELD $110.78 0112063000 6300 NEWTON AVE S RICHFIELD $141.48 0326807210 721 68TH ST E RICHFIELD $587.83 0341975000 7500 13TH AVE S RICHFIELD $97.90 0216609170 917 66TH ST W RICHFIELD $418.25 0342274140 7414 BLOOMINGTON AVE S RICHFIELD $480.09 0331071000 7100 PORTLAND AVE S RICHFIELD $1,051.92 0242972000 7200 2ND AVE S RICHFIELD $399.61 0127828000 2800 78TH ST W RICHFIELD $977.53 0121475270 7527 THOMAS AVE S RICHFIELD $532.88 0312264340 6434 BLOOMINGTON AVE S RICHFIELD $852.93 0341775390 7539 11TH AVE S RICHFIELD $543.59 0136813240 1324 68TH ST W RICHFIELD $575.42 0316615280 1528 66TH ST E RICHFIELD $157.85 0247302150 215 73RD ST W RICHFIELD $26.58 0126626010 2601 66TH ST W RICHFIELD $838.44 0147629090 2909 76TH ST W RICHFIELD $136.32 0216403160 318 64TH ST W RICHFIELD $1,344.90 0216404000 400 64TH ST W RICHFIELD $262.95 0237005050 505 70TH ST W RICHFIELD $611.20 0239305080 508 73RD ST E RICHFIELD $2,584.01 0311962210 6221 13TH AVE S RICHFIELD $1,645.01 0212462350 6235 WENTWORTH AVE S RICHFIELD $159.81 0212062400 6240 HARRIET AVE S RICHFIELD $55.50 0212062450 6245 HARRIET AVE S RICHFIELD $927.59 0112163010 6301 MORGAN AVE S RICHFIELD $182.18 0112263080 6308 LOGAN AVE S RICHFIELD $574.19 0111063160 6316 XERXES AVE S EDINA $262.92 0122664100 6410 HUMBOLDT AVE S RICHFIELD $39.52 0312264290 6429 BLOOMINGTON AVE S RICHFIELD $1,049.97 0212765090 6509 1ST AVE S RICHFIELD $484.69 0223266040 6604 4TH AVE S RICHFIELD $657.99 0121566290 6629 SHERIDAN AVE S RICHFIELD $114.38 0222966450 6645 2ND AVE S RICHFIELD $431.72 0321867010 6701 12TH AVE S RICHFIELD $434.05 0321967130 6713 13TH AVE S RICHFIELD $694.06 0222267200 6720 PLEASANT AVE S RICHFIELD $258.30 0222267340 6734 PLEASANT AVE S RICHFIELD $136.32 0132667380 6738 HUMBOLDT AVE S RICHFIELD $104.02 0222467410 6741 WENTWORTH AVE S RICHFIELD $139.23 0222668000 6800 NICOLLET AVE S RICHFIELD $261.86 0121468040 6804 THOMAS AVE S RICHFIELD $454.37 0222668100 6810 NICOLLET AVE S RICHFIELD $979.14 0321568110 6811 ELLIOT AVE S RICHFIELD $451.03 Page 533 of 579 0221968410 6841 GARFIELD AVE S RICHFIELD $293.10 0321469000 6900 CHICAGO AVE S RICHFIELD $561.73 0232769150 6915 1ST AVE S RICHFIELD $639.88 0121669290 6929 RUSSELL AVE S RICHFIELD $532.25 0222369320 6932 PILLSBURY AVE S RICHFIELD $137.53 0322469330 6933 17TH AVE S RICHFIELD $9.57 0223269380 6938 4TH AVE S RICHFIELD $397.10 0321069380 6938 PORTLAND AVE S RICHFIELD $366.48 0331870270 7027 12TH AVE S RICHFIELD $457.11 0242670330 7033 NICOLLET AVE S RICHFIELD $1,059.55 0331270390 7039 PARK AVE S RICHFIELD $382.67 0131070450 7045 XERXES AVE S RICHFIELD $515.44 0131070470 7047 XERXES AVE S RICHFIELD $1,040.50 0331571120 7112 ELLIOT AVE S RICHFIELD $3.91 0331571140 7114 ELLIOT AVE S RICHFIELD $56.37 0242971330 7133 2ND AVE S RICHFIELD $476.81 0142971440 7144 LAKE SHORE DR RICHFIELD $1,089.33 0331472090 7209 CHICAGO AVE S RICHFIELD $1,338.17 0242372090 7209 PILLSBURY AVE S RICHFIELD $542.58 0242772210 7221 1ST AVE S RICHFIELD $1,782.11 0331172270 7227 OAKLAND AVE S RICHFIELD $728.68 0231872300 7230 LYNDALE AVE S RICHFIELD $774.56 0331072320 7232 PORTLAND AVE S RICHFIELD $2,617.46 0332572350 7235 18TH AVE S RICHFIELD $454.87 0331072390 7239 PORTLAND AVE S RICHFIELD $457.47 0243073000 7300 3RD AVE S RICHFIELD $623.58 0242673010 7301 NICOLLET AVE S RICHFIELD $601.93 0332473200 7320 17TH AVE S RICHFIELD $1,085.39 0332273340 7334 BLOOMINGTON AVE S RICHFIELD $429.63 0231373400 7340 EMERSON AVE S RICHFIELD $1,207.76 0331973450 7345 13TH AVE S RICHFIELD $455.66 0242173450 7345 GRAND AVE S RICHFIELD $671.60 0231674090 7409 BRYANT AVE S RICHFIELD $390.06 0341274270 7427 PARK AVE S RICHFIELD $336.15 0341074310 7431 PORTLAND AVE S RICHFIELD $752.65 0341874330 7433 12TH AVE S RICHFIELD $586.23 0231574330 7433 COLFAX AVE S RICHFIELD $28.39 0342574380 7438 18TH AVE S RICHFIELD $618.73 0341774390 7439 11TH AVE S RICHFIELD $142.39 0141074390 7439 XERXES AVE S RICHFIELD $584.87 0341175090 7509 OAKLAND AVE S RICHFIELD $4,404.05 0342175150 7515 15TH AVE S RICHFIELD $433.74 0222875200 7520 STEVENS AVE S RICHFIELD $222.64 0242075380 7538 HARRIET AVE S RICHFIELD $390.13 Page 534 of 579 0233275440 7544 4TH AVE S RICHFIELD $325.17 0241975440 7544 GARFIELD AVE S RICHFIELD $233.86 0242176000 7600 GRAND AVE S RICHFIELD $963.01 0341676010 7601 10TH AVE S RICHFIELD $901.12 0342276330 7633 BLOOMINGTON AVE S RICHFIELD $564.72 0342276350 7635 BLOOMINGTON AVE S RICHFIELD $635.56 0342176380 7638 15TH AVE S RICHFIELD $380.95 0231576390 7639 COLFAX AVE S RICHFIELD $113.81 0337108010 801 71ST ST E RICHFIELD $1,232.64 0337108050 805 71ST ST E RICHFIELD $3,964.79 0216300050 5 63RD ST W RICHFIELD $102.36 0111462110 6211 THOMAS AVE S RICHFIELD $3,388.92 0121066250 6625 XERXES AVE S RICHFIELD $440.86 0242872050 7205 STEVENS AVE S RICHFIELD $26.90 0141973240 7324 OLIVER AVE S RICHFIELD $524.02 0233274120 7412 4TH AVE S RICHFIELD $546.60 0342575030 7503 18TH AVE S RICHFIELD $229.26 0141275140 7514 VINCENT AVE S RICHFIELD $572.93 0232976210 7621 2ND AVE S RICHFIELD $412.64 0121568160 6816 SHERIDAN AVE S RICHFIELD $217.90 0211863450 6345 LYNDALE AVE S RICHFIELD $10,120.53 0321768390 6839 11TH AVE S RICHFIELD $1,229.33 0321368240 6824 COLUMBUS AVE S RICHFIELD $668.19 0210006000 600 64TH ST W RICHFIELD $4,513.90 0231474170 7417 DUPONT AVE S RICHFIELD $273.65 0341075330 7533 PORTLAND AVE S RICHFIELD $1,531.84 0341874390 7439 12TH AVE S RICHFIELD $972.43 0122664050 6405 HUMBOLDT AVE S RICHFIELD $871.93 0212162360 6236 GRAND AVE S RICHFIELD $441.60 0321668150 6815 10TH AVE S RICHFIELD $2,040.63 0242076380 7638 HARRIET AVE S RICHFIELD $49.48 0141076200 7620 XERXES AVE S EDINA $514.99 0322368330 6833 16TH AVE S RICHFIELD $147.98 0212962200 6220 2ND AVE S RICHFIELD $496.26 0332071380 7138 14TH AVE S RICHFIELD $602.43 0211463050 6305 DUPONT AVE S RICHFIELD $1,100.00 0233374150 7415 5TH AVE S RICHFIELD $179.34 0222268320 6832 PLEASANT AVE S RICHFIELD $945.57 0212674070 7407 NICOLLET AVE S RICHFIELD $4.44 0242872130 7213 STEVENS AVE S RICHFIELD $1,891.54 0111462260 6226 THOMAS AVE S RICHFIELD $317.54 0223162320 6232 CLINTON AVE S RICHFIELD $527.06 0321368150 6815 COLUMBUS AVE S RICHFIELD $324.15 0341074200 7420 PORTLAND AVE S RICHFIELD $611.64 Page 535 of 579 0121168450 6845 WASHBURN AVE S RICHFIELD $591.42 0332070080 7008 14TH AVE S RICHFIELD $851.94 0332570380 7038 18TH AVE S RICHFIELD $1,349.80 0322467260 6726 17TH AVE S RICHFIELD $998.29 0331172390 7239 OAKLAND AVE S RICHFIELD $815.73 0123063380 6338 GIRARD AVE S RICHFIELD $119.82 0312062450 6245 14TH AVE S RICHFIELD $745.86 0231773210 7321 ALDRICH AVE S RICHFIELD $179.01 0218004090 409 64 1/2 ST W RICHFIELD $300.17 0321969100 6910 13TH AVE S RICHFIELD $116.85 0342474340 7434 17TH AVE S RICHFIELD $670.49 0341876140 7614 12TH AVE S RICHFIELD $133.20 0321869350 6935 12TH AVE S RICHFIELD $2,880.85 0116618200 1820 66TH ST W RICHFIELD $729.33 0331872380 7238 12TH AVE S RICHFIELD $1,973.89 0321468080 6808 CHICAGO AVE S RICHFIELD $623.76 0131371390 7139 UPTON AVE S RICHFIELD $498.41 0322470080 7008 17TH AVE S RICHFIELD $364.81 0311764150 6415 11TH AVE S RICHFIELD $1,745.63 0341474000 7400 CHICAGO AVE S RICHFIELD $544.07 0316214130 1413 62ND ST E RICHFIELD $1,059.49 0111062490 6249 XERXES AVE S RICHFIELD $419.70 0342669000 6900 CEDAR AVE S RICHFIELD $582.05 0321668250 6825 10TH AVE S RICHFIELD $211.56 0341476200 7620 CHICAGO AVE S RICHFIELD $549.34 0242273160 7316 PLEASANT AVE S RICHFIELD $114.38 0121666450 6645 RUSSELL AVE S RICHFIELD $490.22 0121167040 6704 WASHBURN AVE S RICHFIELD $322.80 0315163270 6327 16TH AVE S RICHFIELD $423.34 0321569280 6928 ELLIOT AVE S RICHFIELD $147.84 0131968560 6856 OLIVER AVE S RICHFIELD $96.24 0212463430 6343 WENTWORTH AVE S RICHFIELD $504.75 0131767370 6737 QUEEN AVE S RICHFIELD $429.92 0231775040 7504 ALDRICH AVE S RICHFIELD $890.17 0242273320 7332 PLEASANT AVE S RICHFIELD $525.04 0321768380 6838 11TH AVE S RICHFIELD $332.86 0212962270 6227 2ND AVE S RICHFIELD $257.03 0233370320 7032 5TH AVE S RICHFIELD $693.16 0121068010 6801 XERXES AVE S RICHFIELD $729.42 0121167400 6740 WASHBURN AVE S RICHFIELD $608.55 0312264070 6407 BLOOMINGTON AVE S RICHFIELD $1,515.55 0138428770 2877 71 1/2 ST W RICHFIELD $284.10 0332071270 7127 14TH AVE S RICHFIELD $408.05 0222876390 7639 STEVENS AVE S RICHFIELD $600.31 Page 536 of 579 0131769240 6924 QUEEN AVE S RICHFIELD $104.02 0222968160 6816 2ND AVE S RICHFIELD $772.78 0231075050 7505 HUMBOLDT AVE S RICHFIELD $255.24 0232073040 7304 HARRIET AVE S RICHFIELD $1,144.43 0321766210 6621 11TH AVE S RICHFIELD $411.98 0231373200 7320 EMERSON AVE S RICHFIELD $808.49 0121465390 6539 THOMAS AVE S RICHFIELD $498.54 0131768450 6845 QUEEN AVE S RICHFIELD $83.13 0332572090 7209 18TH AVE S RICHFIELD $1,742.48 0142073080 7308 NEWTON AVE S RICHFIELD $344.32 0132168320 6832 MORGAN AVE S RICHFIELD $236.19 0311863200 6320 12TH AVE S RICHFIELD $481.21 0142570000 7000 IRVING AVE S RICHFIELD $559.35 0312163250 6325 15TH AVE S RICHFIELD $579.75 0243172000 7200 CLINTON AVE S RICHFIELD $421.36 0341974450 7445 13TH AVE S RICHFIELD $10.00 0112364350 6435 KNOX AVE S RICHFIELD $530.95 0111262200 6220 VINCENT AVE S RICHFIELD $1,815.38 0222774270 7427 1ST AVE S RICHFIELD $998.72 0141870080 7008 PENN AVE S RICHFIELD $24.11 0212862440 6244 STEVENS AVE S RICHFIELD $150.64 0112463010 6301 JAMES AVE S RICHFIELD $615.89 0142371440 7144 KNOX AVE S RICHFIELD $526.04 0231373470 7347 EMERSON AVE S RICHFIELD $248.48 0212463050 6305 WENTWORTH AVE S RICHFIELD $109.20 0242871040 7104 STEVENS AVE S RICHFIELD $237.20 0212164010 6401 GRAND AVE S RICHFIELD $230.00 0249001280 128 70TH ST E RICHFIELD $1.64 0132667390 6739 HUMBOLDT AVE S RICHFIELD $472.24 0341374140 7414 COLUMBUS AVE S RICHFIELD $605.07 0321868010 6801 12TH AVE S RICHFIELD $947.66 0142372260 7226 KNOX AVE S RICHFIELD $1,100.40 0341576330 7633 ELLIOT AVE S RICHFIELD $495.08 0222669210 6921 NICOLLET AVE S RICHFIELD $1,044.48 0132366440 6644 KNOX AVE S RICHFIELD $276.15 0321269250 6925 PARK AVE S RICHFIELD $377.76 0232976000 7600 2ND AVE S RICHFIELD $246.89 0141872320 7232 PENN AVE S RICHFIELD $325.10 0321966320 6632 13TH AVE S RICHFIELD $706.72 0311965150 6515 13TH AVE S RICHFIELD $504.87 0341074150 7415 PORTLAND AVE S RICHFIELD $159.97 0332570290 7029 18TH AVE S RICHFIELD $798.66 0233276000 7600 4TH AVE S RICHFIELD $3,165.80 0242172090 7209 GRAND AVE S RICHFIELD $376.86 Page 537 of 579 0111663290 6329 RUSSELL AVE S RICHFIELD $314.31 0234071250 7125 AUGSBURG AVE S RICHFIELD $906.73 0326706290 629 67TH ST E RICHFIELD $73.21 0342575010 7501 18TH AVE S RICHFIELD $87.53 0332272390 7239 BLOOMINGTON AVE S RICHFIELD $327.62 0322569260 6926 18TH AVE S RICHFIELD $440.42 0331572010 7201 ELLIOT AVE S RICHFIELD $1,400.86 0342474000 7400 17TH AVE S RICHFIELD $465.44 0111062270 6227 XERXES AVE S RICHFIELD $435.33 0321568450 6845 ELLIOT AVE S RICHFIELD $685.65 0131966450 6645 OLIVER AVE S RICHFIELD $708.64 0231674290 7429 BRYANT AVE S RICHFIELD $1,323.47 0332270280 7028 BLOOMINGTON AVE S RICHFIELD $578.58 0312262210 6221 BLOOMINGTON AVE S RICHFIELD $1,376.37 0212576090 7609 BLAISDELL AVE S RICHFIELD $257.59 0211962260 6226 GARFIELD AVE S RICHFIELD $2,612.55 0331070150 7015 PORTLAND AVE S RICHFIELD $251.06 0116617060 1706 66TH ST W RICHFIELD $1,676.89 0332170040 7004 15TH AVE S RICHFIELD $1,292.60 0337915440 1544 FERN DR RICHFIELD $1,394.45 0138430140 3014 71 1/2 ST W RICHFIELD $985.78 0341176250 7625 OAKLAND AVE S RICHFIELD $800.15 0132669120 6912 HUMBOLDT AVE S RICHFIELD $839.79 0243271440 7144 4TH AVE S RICHFIELD $538.98 0341074240 7424 PORTLAND AVE S RICHFIELD $212.75 0211863360 6336 LYNDALE AVE S RICHFIELD $7,329.68 0331173200 7320 OAKLAND AVE S RICHFIELD $132.85 0216300070 7 63RD ST W RICHFIELD $197.17 0211763140 6314 ALDRICH AVE S RICHFIELD $707.62 0212163050 6305 GRAND AVE S RICHFIELD $282.25 0112264040 6404 LOGAN AVE S RICHFIELD $169.85 0242474150 7415 WENTWORTH AVE S RICHFIELD $418.91 0137228520 2852 72ND ST W RICHFIELD $812.54 0231473370 7337 DUPONT AVE S RICHFIELD $1,238.53 0222669150 6915 NICOLLET AVE S RICHFIELD $1,181.84 0331071170 7117 PORTLAND AVE S RICHFIELD $1,622.95 0332272050 7205 BLOOMINGTON AVE S RICHFIELD $115.72 0233274200 7420 4TH AVE S RICHFIELD $611.46 0228800210 21 68TH ST E RICHFIELD $920.86 0232974140 7414 2ND AVE S RICHFIELD $109.62 0342375450 7545 16TH AVE S RICHFIELD $709.45 0341976330 7633 13TH AVE S RICHFIELD $362.94 0332270250 7025 BLOOMINGTON AVE S RICHFIELD $127.33 0232073090 7309 HARRIET AVE S RICHFIELD $431.13 Page 538 of 579 0331871450 7145 12TH AVE S RICHFIELD $135.57 0312264450 6445 BLOOMINGTON AVE S RICHFIELD $778.93 0112164390 6439 MORGAN AVE S RICHFIELD $577.84 0321268330 6833 PARK AVE S RICHFIELD $607.03 0142071440 7144 NEWTON AVE S RICHFIELD $843.84 0131370200 7020 UPTON AVE S RICHFIELD $583.02 0341574380 7438 ELLIOT AVE S RICHFIELD $688.04 0312164440 6444 15TH AVE S RICHFIELD $254.14 0112162290 6229 MORGAN AVE S RICHFIELD $169.85 0231972080 7208 GARFIELD AVE S RICHFIELD $887.10 0312065000 6500 14TH AVE S RICHFIELD $265.08 0331473390 7339 CHICAGO AVE S RICHFIELD $121.81 0321469320 6932 CHICAGO AVE S RICHFIELD $711.73 0231676320 7632 BRYANT AVE S RICHFIELD $391.39 0231972320 7232 GARFIELD AVE S RICHFIELD $1,176.26 0331070160 7016 PORTLAND AVE S RICHFIELD $1,136.29 0311762100 6210 11TH AVE S RICHFIELD $856.76 0223269150 6915 4TH AVE S RICHFIELD $961.10 0331672010 7201 10TH AVE S RICHFIELD $385.07 0332570250 7025 18TH AVE S RICHFIELD $636.56 0332472280 7228 17TH AVE S RICHFIELD $220.73 0332473240 7324 17TH AVE S RICHFIELD $746.27 0242670210 7021 NICOLLET AVE S RICHFIELD $1,233.49 0322369320 6932 16TH AVE S RICHFIELD $996.78 0222968000 6800 2ND AVE S RICHFIELD $493.03 0141871230 7123 PENN AVE S RICHFIELD $610.60 0212675140 7514 NICOLLET AVE S RICHFIELD $61.66 TOTAL $561,036.19 Page 539 of 579 Report Name: RI-Master Report - Exclude Closed Assessment Details.rptPrinted: 10/8/2025Page: 1Special Assessment Master ReportS/A Number: 26057City of RichfieldPayment Number: 0 Of: 1S/A Number:26057Assessment Total: $3,309.50 Interest Rate: 5.00001st Yr. Int. Months: 141st Yr. Payable: 2026Description: 2025 NUISANCEOpened Date: 1st Hearing: 2nd Hearing: Levied: Amortization Type: SCounty Admin Fee: $0.00Status: PendingProject Nbr: Fund: Contract Nbr: Fin Acct Nbr: Resolution Number: Continue Calculating Deferred: YesInt Acct Nbr: Sub Status: Street NameTotal AssessmentPayoff AmtProperty IDHouseUnitStOrig Assessment$225.0026-028-24-13-0139 1310 66th St E$225.00A$225.00$325.0026-028-24-24-0018 6445 11th Ave S$325.00A$325.00$250.0026-028-24-34-0017 6839 11th Ave S$250.00A$250.00$475.0026-028-24-41-0093 6715 17th Ave S$475.00A$475.00$1,100.0027-028-24-42-0134 101 66th St E$1,100.00A$1,100.00$387.0028-028-24-13-0011 6449 Girard Ave S $387.00A$387.00$125.0029-028-24-42-0082 6716 Washburn Ave S $125.00A$125.00$125.0032-028-24-42-0038 7432 Upton Ave S $125.00A$125.00$209.5033-028-24-41-0039 7401 Bryant Ave S $209.50A$209.50$125.0035-028-24-12-0115 7028 15th Ave S$125.00A$125.00$125.0035-028-24-31-0077 7521 Chicago Ave S $125.00A$125.00A Total: $3,471.5011A Count: $3,471.50$3,471.50Grand Total:$3,471.5011Total Count:$3,471.50$3,471.50Page 540 of 579 Report Name: RI-Master Report - Exclude Closed Assessment Details.rptPrinted: 10/8/2025Page: 1Special Assessment Master ReportS/A Number: 26056City of RichfieldPayment Number: 0 Of: 1S/A Number:26056Assessment Total: $2,300.00 Interest Rate: 5.00001st Yr. Int. Months: 141st Yr. Payable: 2026Description: 2025 FALSE ALARMOpened Date: 1st Hearing: 2nd Hearing: Levied: Amortization Type: SCounty Admin Fee: $0.00Status: PendingProject Nbr: Fund: Contract Nbr: Fin Acct Nbr: Resolution Number: Continue Calculating Deferred: YesInt Acct Nbr: Sub Status: Street NameTotal AssessmentPayoff AmtProperty IDHouseUnitStOrig Assessment$100.0027-028-24-22-0002 6245 Lyndale Ave S $100.00A$100.00$800.0027-028-24-23-0090 6500 Lyndale Ave S $800.00A$800.00$100.0027-028-24-32-0127 6645 Lyndale Ave S $100.00A$100.00$100.0029-028-24-44-0009 6800 Penn Ave S$100.00A$100.00$200.0034-028-24-34-0053 200 78th St W$200.00A$200.00A Total: $1,300.005A Count: $1,300.00$1,300.00Grand Total:$1,300.005Total Count:$1,300.00$1,300.00Page 541 of 579 Report Name: RI-Master Report - Exclude Closed Assessment Details.rptPrinted: 10/8/2025Page: 1Special Assessment Master ReportS/A Number: 26055City of RichfieldPayment Number: 0 Of: 1S/A Number:26055Assessment Total: $4,850.00 Interest Rate: 5.00001st Yr. Int. Months: 141st Yr. Payable: 2026Description: 2025 VacantOpened Date: 1st Hearing: 2nd Hearing: Levied: Amortization Type: SCounty Admin Fee: $0.00Status: PendingProject Nbr: Fund: Contract Nbr: Fin Acct Nbr: Resolution Number: Continue Calculating Deferred: YesInt Acct Nbr: Sub Status: Street NameTotal AssessmentPayoff AmtProperty IDHouseUnitStOrig Assessment$1,025.0026-028-24-13-0061 6438 15th Ave S $1,025.00A$1,025.00$525.0028-028-24-42-0033 6612 Girard Ave S $525.00A$525.00$525.0029-028-24-42-0082 6716 Washburn Ave S $525.00A$525.00$525.0033-028-24-22-0126 7109 Penn Ave S$525.00A$525.00$575.0033-028-24-41-0039 7401 Bryant Ave S $575.00A$575.00$625.0035-028-24-11-0075 7025 Bloomington Ave S $625.00A$625.00$525.0035-028-24-41-0031 7411 17th Ave S$525.00A$525.00A Total: $4,325.007A Count: $4,325.00$4,325.00Grand Total:$4,325.007Total Count:$4,325.00$4,325.00Page 542 of 579 City Council Meeting 10/14/2025 Agenda Section: Other Business Agenda Item: 12.a. Report Prepared By: Mark McKinley, Administrative Assistant Department Director: Katie Rodriguez, City Manager Item for Consideration: Consider appointment of youth commissioners to City advisory board/commissions. EXECUTIVE SUMMARY City advisory commission terms for youth members are for one year and terms expire on August 31, 2026. The City Manager’s office offers an ongoing recruitment window for vacant youth commissioner seats and includes information on the City’s website, Facebook page, and communication with the local high schools. Both applications received were forwarded to Council for review. HISTORICAL CONTEXT RECOMMENDED ACTION By motion: Approve the appointment of Jaily Portales to the Advisory Board of Health and Karmen Melnichuk to the Art's Commission as youth commissioners. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Youth commissioners bring lived experiences and perspectives that are often missing in decision making. Appointing youth commissioners ensures policies and programs are shaped by those directly impacted. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) City advisory commissions were established by City ordinance or resolution. CRITICAL TIMING ISSUES Terms of City advisory commission youth members expire on August 31, 2026. FINANCIAL IMPACT LEGAL CONSIDERATIONS ALTERNATIVE RECOMMENDATION(S) Page 543 of 579 The City Council may choose to defer the appointments to a future City Council meeting; however, this would leave vacancies on the board/commissions. ATTACHMENTS None Page 544 of 579 City Council Meeting 10/14/2025 Agenda Section: Other Business Agenda Item: 12.b. Report Prepared By: John Evans, Analyst Department Director: Karl Huemiller, Recreation Director Item for Consideration: Consider approval of an agreement between the City of Richfield and the Science Museum of Minnesota in the amount of $354,658, for professional services in the fabrication and installation of interpretive exhibits for the new Wood Lake Nature Center Building, as well as an agreement with Blue Rhino in the amount of $354,500 for the same services and with the same terms and conditions. The project was jointly bid for a total of $709,158. EXECUTIVE SUMMARY The new Wood Lake Nature Center Building will include displays that educate the public and provide interpretive information about the natural habitat at Wood Lake Nature Center. The Science Museum of Minnesota and Blue Rhino were contracted in August 2024 to design the new exhibit space. Designs were completed in August 2025. An invitation for bids to fabricate and install the exhibits was published on July 31, 2025, with bids due on August 12, 2025. A single bid was received, submitted jointly by the Science Museum of Minnesota and Blue Rhino Studios for $709,158. The work is divided between the two organizations, with the Science Museum of Minnesota completing the interactive exhibit fabrication work and Blue Rhino Studios completing the murals, sculptures and snoops. The City will contract with each firm individually with the same terms and conditions. The total cost of both phases for the Science Museum of Minnesota came to $354,658, with a Phase 1 cost of $229,790. The total cost of both phases for Blue Rhino is $354,500, with a Phase 1 cost of $312,500. Only the Science Museum of Minnesota agreement is attached here, with the understanding that the Blue Rhino contract will be identical in terms and conditions, but with reference to their portion of the project as detailed in their bid. HISTORICAL CONTEXT During the initial engagement process for the Wood Lake Nature Center building project, a survey was conducted with 949 responses. The survey was conducted to better understand what users valued most about the Wood Lake Nature Center Experience. On question nine of the survey, 49% of respondents identified the quality of exhibits or educational programs as the most important part of their experience. This was the highest of any aspect of the identified. When asked what aspects of the project were most important to invest in, 31% identified improving the exhibits. This was fifth Page 545 of 579 after nature and conservation, educational programs, building efficiency/sustainability, and improving the landscape around the building. Blue Rhino Studios and the Science Museum of Minnesota, both located in Minnesota, are world renowned for developing innovative interactive interpretive exhibits. They have both installed hundreds of exhibits at sites large and small across the globe. Some notable installations located in Minnesota are the “Our Backyard” exhibit at the Science Museum of Minnesota and the exhibits at Quarry Hill Nature Center in Rochester. Having designed the exhibits and sculptural elements, both firms have been involved with the project since the beginning and have insight into the scope, needs, and goals of the project. Science Museum Phase 1 exhibits include a watershed table, Everyone's a Naturalist & Bird Kiosk, binocular station & Who's Hooo? exhibit, Eras Tour historical exhibit, paludarium and animal tank graphics, seating in exhibit area, and intro floor graph. Phase 2 exhibits include a floor map & viewing station, Night and Day play space, and a Biome Balance display. Blue Rhino Phase 1 exhibits include murals, sculptures, and snoops. Phase 2 for Blue Rhino's work is the paludarium. RECOMMENDED ACTION By Motion: Approve the agreement between the City of Richfield and the Science Museum of Minnesota in the amount of $354,658 for professional services in the fabrication and installation of interpretive exhibits for the new Wood Lake Nature Center Building, as well as an agreement with Blue Rhino in the amount of $354,500 for the same services and with the same terms and conditions, and authorize the Mayor and City Manager to finalize and execute both contracts. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Equity: The public engagement process during the design phase of the project has a focus on connecting with disadvantaged communities that are currently under- represented in the users of Wood Lake Nature Center. Design also includes the goals of including feedback from a variety of community stakeholders, including the disability community, the Latine community, low-income residents, residents who live close to Wood Lake, visitors to Richfield, students who visit, and many more groups. Overall, the new building and exhibits will provide increased accessibility to more groups and current ADA guidelines will be met which currently are not. Experience with accessible design was an important factor in the selection of Blue Rhino Studios and the Science Museum of Minnesota's joint proposal. Strategic Plan: This project best aligns with the strategic plan priority of Sustainable Infrastructure addressing all sub-initiatives of asset management, comprehensive funding, and sustainability efforts. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) Staff followed the process for requesting proposals for the project and received only the proposal from the Science Museum of Minnesota and Blue Rhino, who will work in tandem on the fabrication and installation. Page 546 of 579 CRITICAL TIMING ISSUES The Wood Lake Nature Center Building Project has entered the construction phase. Approval of this contract would ensure that the work commences and is completed in a timely fashion and with consideration to the project timeline as a whole. FINANCIAL IMPACT The current project budget is $26,425,000 this includes both construction costs and soft costs. This budget is comprised of the $12,000,000 from the state,$3,000,000 from the federal government, $11,000,000 from the sales tax referendum, $200,000 in donations identified for the project, and $225,000 in CIB funds identified for the project. At the current time another $17, 828 is expected in rebates from Excel Energy. There may be additional rebates once the project is complete. Initially, $385,000 was budgeted for exhibit fabrication. The total cost of phase 1 exhibits comes to $542,290. This is $157,290 more than was initially budgeted. Staff believe that there will be sufficient contingency in the project to cover this extra cost. If for some reason there were not enough funds in the contingency, the Friends of Wood Lake account is very healthy with $421,000, enough to cover the extra cost of the exhibits. The Friends of Wood Lake will be fundraising over the next year for the additional exhibits outlined in phase 2 which would cost an additional $166,868. Current Budget $22,129,588 - Updated Building Construction GMP $1,751,756 - Architect & Engineering Fees $18,000 - A&E Reimbursable Expenses $181,500 - Additional Professional Services $380,202 - Non-Construction Costs $600,000 - Furnishings, Fixtures and Equipment $206,853 - Playground $857,290 - Exhibits $324,811 - Owner Contingency $26,450,000 - Total Project Cost LEGAL CONSIDERATIONS None ALTERNATIVE RECOMMENDATION(S) Do not award the contract to the Science Museum of Minnesota and Blue Rhino and possibly delay the fabrication and installation of the educational displays in the new Wood Lake Nature Center Building. ATTACHMENTS 1. Science Museum Fabrication and Installation Agreement 10-14-25 2. Science Museum Exhibit A 3. Exhibit B-Bid Documentation 4. Exhibit C-Insurance Requirements Page 547 of 579 1 DOCSOPEN-RC145-763-1053163.v1-10/3/25 WOOD LAKE NATURE CENTER EXHIBIT FABRICATION/INSTALLATION SERVICES AGREEMENT This EXHIBIT FABRICATION/INSTALLATION SERVICES AGREEMENT, is made and entered into this ____ day of October, 2025, by and between the City of Richfield, a Minnesota municipal corporation located at 6700 Portland Ave, Richfield, MN 55423 (the “City”), and The Science Museum of Minnesota, a Minnesota nonprofit corporation organized under the laws of the State of Minnesota and located at 120 West Kellogg Boulevard, St. Paul, MN 55102 (“SMM”) (each individually referred to as “Party” or jointly referred to as “Parties”). RECITALS WHEREAS, on July 31, 2025, the City solicited bids for the graphic production, fabrication and installation of interpretive displays and animal exhibits for a 1,200 square foot exhibit space (“Project”) at the future newly constructed Wood Lake Nature Center in Richfield, Minnesota; WHEREAS, SMM submitted a proposal to the City to provide the requested services through a joint and collaborative approach between SMM and Blue Rhino Studio (“Blue Rhino”); and WHEREAS, SMM and Blue Rhino will constitute the project team but will contract separately with the City for certain components of the Project. TERMS AND CONDITIONS 1. Scope of Services. a) SMM hereby agrees to furnish all personnel, necessary materials, tools, and equipment and to perform all the work outlined in its proposal submitted in response to the City’s request for bids for the Project. The proposal is attached as Exhibit A (the "Proposal”). The Proposal is incorporated by reference into this Agreement. If the Proposal conflicts with the terms, conditions, rights, or obligations of this Agreement, the language of the Agreement will be controlling over the language in the Proposal. The work as outlined in the Proposal will be hereinafter referred to as the “Exhibit Services”. b) SMM will perform the components of the Project for Phase 1 and Phase 2 identified in Exhibit B (hereinafter “Components”) as SMM’s responsibility and not to exceed the costs identified therein unless otherwise agreed to in this Agreement. c) SMM agrees that all the work will be done in the best and most diligent manner and that all materials and labor shall be in conformity with the Proposal. The work will be subject to inspection and approval by the City officials responsible for the supervision of the work. d) SMM further agrees to repair or replace at their own expense any loss or damage to the Project occurring during construction or prior to the final delivery to and acceptance by the City. Any payments made to SMM under this Agreement shall not be construed as relieving SMM from responsibility for the Project. It is agreed by the Parties that the use of said work and Project Page 548 of 579 2 DOCSOPEN-RC145-763-1053163.v1-10/3/25 at any time by the City shall not be construed as an acceptance by the City of the work to be done by the SMM under this Agreement. 2. Payment. Unless otherwise agreed to in this Agreement, the City agrees to pay SMM sums not to exceed the sums identified in Exhibit B. Payment will be made within 30 days of receipt of a detailed invoice, to include actual quantities of materials, work and labor. Interest accrual and disputes regarding payment shall be governed by Minnesota Statutes, Section 471.425. 3. Schedule to Perform. a) Site Preparation. The City may need to plan for and conduct certain site preparation work related to completion of the building construction prior to SMM performing the Project. SMM agrees to commence the work following such site preparation work and to perform the same diligently and without delay. SMM agrees to have the work substantially completed to the satisfaction and approval of the City on or before November 17, 2026. Should there be any delays in completing site preparation work, the City agrees that it will provide SMM with a reasonable extension to perform. The City shall be responsible for ensuring the site is ready for installation at a date to be mutually agreed upon by both Parties. The City will ensure that the site is furnished with finished walls, flooring, electrical and lighting fixtures prior to installation of the Components. Should the site not be ready for installation, for reasons caused by the City, the City shall be liable for any and all costs associated with storage and the delay. The City will coordinate delivery and installation within the work area so as not to impact the safety or timeliness of installation of any third-party vendors. b) Handling Delays. SMM agrees to notify the City in writing of any causes of delay within five business days after such cause of delay becomes known to SMM. If SMM fails to perform this Agreement and complete the work at the time specified and if such delay is due to the fault of SMM, the City may proceed to contract for completion of the work at the cost and expense of SMM, after reasonable notice and opportunity to cure. Upon receipt of written notice from SMM of the existence of causes over which SMM has no control including any delays due to the work of Blue Rhino and which affects the timely completion of the work, the City or SMM may at its discretion request an extension of the date specified for the completion of the work. Any costs associated with delays outside of the control of SMM shall not be SMM’s financial responsibility. c) Phase 2 Scheduling. The Parties agree that the Phase 2 Components will not begin until the City has authorized commencement of work in writing and provided final funding information to SMM. The Parties agree and acknowledge that the costs for Phase 2 are subject to change depending on available funding and/or an increase in material costs or labor rates. If Phase 2 commences later than May 1, 2026, the Parties acknowledge that a second installation trip may be required which will increase costs and may impact the opening date of the exhibits identified in Phase 2. 4. Limited Scope; Change Orders. No claim for extra work done or materials furnished by SMM will be made by SMM or allowed by the City, nor shall SMM do any work or furnish any materials not covered by the Proposal, unless such work or materials is ordered in writing by the City and approved in writing. Any such work done or materials furnished by SMM without the City’s written consent shall be at SMM's own risk and expense. Page 549 of 579 3 DOCSOPEN-RC145-763-1053163.v1-10/3/25 5. Third Party Claims. SMM agrees to pay all laborers employed, and all subcontractors furnishing material, labor or services to SMM related to the performance of this Agreement. If SMM fails to pay and satisfy all claims and demands for labor, services, and materials as aforesaid, the City may apply the monies due to SMM under this Agreement toward paying and satisfying such claims and demands. The City may apply monies due to SMM under this Agreement towards paying any indebtedness or claim accrued or which may come due to the City from SMM on any account whatsoever, and the amount of such payments shall be charged against the balance due to SMM. 6. Intellectual Property. All final documents, final materials, final exhibits and/or final exhibit components, including, but not limited to, final writings, final drawings, specifications, blueprints, pictures, models, recordings, (the “Project”), and all copyrights, rights of reproduction and other intellectual property rights in the Project (the “Intellectual Property”), created by SMM either solely or jointly with others pursuant to this Agreement, shall be the property of the City, and ownership of the Project and Intellectual Property shall transfer to the City upon delivery of the Project to the City’s facility and upon payment to SMM for any remaining amounts owed to SMM under this Agreement. The City grants to SMM a perpetual, non-exclusive, royalty-free license to: (a) reproduce and publicly display a copy or reproduction of the Project; (b) create derivative works of the Project; (c) to grant sub-licenses to others to publicly display a copy, reproduction or derivative work of the Project; and (d) use images from the exhibit development and design process and images of the final Project in SMM’s project portfolio and as examples of SMM’s work. Notwithstanding the foregoing, where writings, documents, exhibits, exhibit components, drawings, specifications, blueprints, pictures, models, recordings, computer or machine readable data and/or designs (hereinafter “Preexisting Materials”) are acquired from other sources for use in the Project or are Preexisting materials used by SMM in other exhibit creation work, SMM shall acquire any required permission or license from the owner of the Preexisting Materials on behalf of the City, or, in the case of Preexisting Materials belonging to the SMM, SMM grants to the City a perpetual, non-exclusive, royalty-free, world-wide license to display or use said Preexisting Materials for the purpose of displaying the Project. The City shall have no other interest in the Preexisting Materials beyond the non-exclusive license provided herein. The City acknowledges and agrees that SMM retains all rights to methodology and know-how in creating the Project, and may use such methodology, know-how and the Preexisting Materials in work for other clients of SMM. 7. Warranty. For a period of one year after the date the Project is accepted by the City (“Warranty Period”) SMM guarantees and agrees to warrant all parts and workmanship in connection with the Exhibit Services against defects caused by faulty parts or workmanship. SMM agrees, during the Warranty Period, to promptly replace, remedy, alter, modify or install defective parts and/or repair defects of workmanship, as necessary to give effect to said warranty (or to cause the appropriate manufacturer to do so). SMM further reserves the right, in its sole discretion, to determine the most appropriate method to repair or replace such faulty parts or workmanship under this subsection. The City agrees to promptly notify SMM in writing or via email of any concerns about defects and to provide necessary troubleshooting information and onsite assistance for SMM to adequately diagnose the most appropriate response. The warranty contained herein shall not apply in connection with problems which occur subsequent to date of acceptance of the Exhibit Page 550 of 579 4 DOCSOPEN-RC145-763-1053163.v1-10/3/25 Services and which are not caused by or are the fault of SMM, including but not limited to the City’s or host institution’s failure to properly monitor and supervise members of the public viewing and using the Project, or unreasonable use or abuse of the Project by anyone. Those portions of the Project that are designed for interaction with the public shall be included in this warranty to withstand normal appropriate use by the public. During the Warranty Period, the SMM agrees to repair or replace any portion or element of the Project which shows signs of failure, normal wear and tear excepted. A decision regarding whether the Project portion shows signs of failure shall be made by the City in the reasonable exercise of the judgment of its professional staff. To the extent that the Exhibit Services may include any sale or delivery of goods to the City, SMM warrants that all goods sold are free of any security interest or other liens and will, in addition, make available to the City all transferable warranties made to SMM by the manufacturers of the goods. Other than as stated in this Section 7, SMM MAKES NO OTHER EXPRESS OR IMPLIED WARRANTIES AND SPECIFICALLY MAKES NO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR PURPOSE. 8. Bonds. SMM must provide the City with the following bonds covering the Project: (a) a performance bond for the benefit of the City, ensuring that SMM will construct the Project in accordance with the Proposal, and saving and holding the City harmless from all costs and charges which may accrue on account of completing the Project; and (b) a payment bond for the use and benefit of all persons furnishing labor or materials for the construction of the Project and making just claims for payment for such labor or materials. SMM will invoice the City for any bond fees. 9. Independent Contractor. All work provided pursuant to this Agreement shall be provided by SMM as an independent contractor. All officers, employees, subcontractors, agents, or any other person engaged by SMM in the performance of work or services pursuant to this Agreement shall not be considered employees of the City. All actions which arise because of any act or omission by SMM, its officers, employees, subcontractors, agents, or other persons engaged by SMM in the performance of work or services pursuant to this Agreement, shall not be the obligation or responsibility of the City. SMM, and its officers, employees, subcontractors, and agents, shall not be entitled to any of the rights, privileges, or benefits of the City’s employees. This Agreement does not establish a joint venture or partnership between the City and SMM. 10. Indemnification. SMM agrees to indemnify, defend, save and hold harmless the City, its officers, elected officials, agents, and employees from and against claims, damages, expenses and losses arising out of or resulting from SMM’s responsibilities under this Agreement, provided that such claim, damage, expense or loss is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than any tangible property delivered under this Agreement), but only to the extent caused by the negligent acts or omissions of SMM or a subcontractor of SMM, or anyone directly or indirectly employed by them or anyone for whose acts they may be liable, and not to the extent that such claim, damage, expense or loss is caused in part by the City, subcontractor of City, or anyone directly or indirectly employed by them or anyone for whose acts they may be liable. SMM or its insurer shall engage counsel reasonably acceptable to the City to defend any such claim or action against the City and SMM agrees to indemnify the City for all costs and expenses (including legal fees) in connection Page 551 of 579 5 DOCSOPEN-RC145-763-1053163.v1-10/3/25 therewith. SMM or its insurer shall have the right to settle any monetary claims but must obtain the City’s written approval prior to entering into any settlement that includes injunctive or similar relief. The City agrees to indemnify, defend, save and hold harmless SMM, its officers, agents, and employees from and against claims, damages, expenses and losses, but only to the extent caused by the negligent acts or omissions of the City or a subcontractor of the City, or anyone directly or indirectly employed by them or anyone for whose acts they may be liable, and not to the extent that such claim, damage, expense or loss is caused in part by SMM, subcontractor of SMM, or anyone directly or indirectly employed by them or anyone for whose acts they may be liable. The City or its insurer shall engage counsel reasonably acceptable to SMM to defend any such claim or action against SMM and the City agrees to indemnify SMM for all costs and expenses (including legal fees) in connection therewith. The City shall have the right to settle any monetary claims, but must obtain SMM's written approval prior to entering into any settlement that includes injunctive or similar relief. The City is not required to indemnify SMM, its agents or employees, for claims arising out of materials originally provided by SMM, but the City will indemnify SMM for claims arising out of any materials originally provided by the City but modified by SMM. These indemnity obligations shall be continuing and shall survive the performance or cancellation of this Agreement. Nothing in this Agreement shall be construed as a limitation of or waiver by the City of any immunities, defenses, or other limitations on liability to which the City is entitled by law, including but not limited to the maximum monetary limits on liability established by Minnesota Statutes, Chapter 466, or otherwise. 11. Insurance. SMM shall purchase and maintain insurance coverage as outlined in Exhibit C. 12. Notices. Any notices permitted or required by this Agreement shall be deemed given when personally delivered or upon deposit in the United States mail, first class and postage fully prepaid, and addressed to the addresses above, or at such other address as either party may provide to the other by notice given in accordance with this provision. 13. Termination. This Agreement may be terminated by either Party upon written notice should the other Party materially breach or fail to substantially perform their obligations through no fault of the party initiating the termination. Such termination for cause shall become effective 15 days from the date such notice is actually received by the non-initiating party; provided that the termination shall not become effective if such non-performance is cured within such 15-day period, or if the non-performance or breach cannot be cured with 15 days, the breaching party has undertaken all reasonable steps to cure the non-performance or breach and can provide reasonable assurances the non-performance or breach will be cured within a reasonable time. In the event the City notifies SMM of its intent to terminate this Agreement for material breach or failure to substantially perform, and SMM fails to cure the material breach or failure to perform as provided in this Agreement, then SMM shall cease all work, cancel any pending material orders, Page 552 of 579 6 DOCSOPEN-RC145-763-1053163.v1-10/3/25 and terminate all subcontracts in effect pursuant to this Agreement. The City shall compensate SMM for the reasonable value of all Exhibit Services actually and acceptably performed through to the date of termination as full and complete payment of all amounts owed to SMM under this Agreement by the City; provided that the City shall be entitled to withhold amounts to offset a reasonable amount for its out of pocket costs incurred as a direct result of such material breach or failure to perform but not to exceed the remaining amount owed to SMM under this Agreement. Upon termination and payment by the City of all amounts due, SMM shall promptly deliver to the City, all reports, records, materials, supplies and other work product relating to this Agreement, including all documents and deliverables whether completed or still in process. If prior to termination, SMM has received from the City compensation in excess of the contract amount owed to SMM for Exhibit Services performed prior to termination, including reasonable overhead and profit, SMM shall return to the City that portion of the compensation received from the City which exceeds the amount actually owed to SMM for the work performed prior to termination. The City may terminate this Agreement at any time without cause, upon 15 days written notice of termination to SMM, but shall pay to SMM all amounts owed under this Agreement. 14. Miscellaneous. a) Any amendment to this Agreement must be in writing and signed by both parties. This Agreement shall be binding upon and inure to the benefit of the parties. No assignment of any rights under the Agreement shall be effective without the prior written consent of the City. b) This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota and any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. c) SMM warrants that all work performed pursuant to this Agreement shall comply with all federal, state and local laws, ordinances, regulations, rules, and standards, as well as all requirements set forth in the Proposal, or any further requirements of the City. SMM and all subcontractors shall conform to the labor laws of the State of Minnesota, and all other laws, ordinances and legal requirements pertaining to the Project. d) This Agreement, any attached exhibits and any addenda or amendments signed by the parties shall constitute the entire Agreement between the City and SMM and supersedes any other written or oral agreements between City and SMM. e) In the event that any one or more of the provisions of this Agreement shall be found to be invalid, illegal or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected. Page 553 of 579 7 DOCSOPEN-RC145-763-1053163.v1-10/3/25 f) No failure by any party to insist upon the strict performance of any covenant, duty, agreement, or condition of this Agreement or to exercise any right or remedy shall constitute a waiver of any such breach of any other covenant, agreement, term, or condition. g) Any and all data created, collected, received, stored, used, maintained, or disseminated by SMM pursuant to this Agreement shall be administered in accordance with, and is subject to the requirements of the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13, and SMM must comply with these requirements as if it were a government entity. This paragraph does not create a duty on the part of SMM to provide access to public data to the public if the public data are available from the City, except as required by the terms of this Agreement. h) Pursuant to Minnesota Statutes, Section 16C.05, subdivision 5, SMM must allow the City, or its duly authorized agents, and the state auditor or legislative auditor reasonable access, at its own cost and expense, to SMM’s books, records, documents, and accounting procedures and practices that are pertinent to all work provided under this Agreement for a minimum of six years from the termination of this Agreement. i) SMM acknowledges that nothing contained in this Agreement nor any act by the City or SMM shall be deemed or construed by SMM or by any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the City and SMM. j) SMM agrees to comply with all federal, state, and local laws, resolutions, ordinances, rules, regulations and executive orders pertaining to unlawful discrimination because of race, color, creed, religion, national origin, sex, marital status, status regarding public assistance, sexual orientation, disability, age or other protected classes. k) This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Page 554 of 579 8 DOCSOPEN-RC145-763-1053163.v1-10/3/25 IN WITNESS WHEREOF, the parties have executed or caused to be executed by their duly authorized officials, this Agreement as of the date first written above. THE CITY OF RICHFIELD: THE SCIENCE MUSEUM OF MINNESOTA: By: By: Its: Date: Mary B. Supple Mayor Its: Date: Alison Brown President & CEO By: Its: Date: Katie Rodriguez City Manager Page 555 of 579 A-1 DOCSOPEN-RC145-763-1053163.v1-10/3/25 EXHIBIT A PROPOSAL As stated in section 1, The Proposal is incorporated by reference into this Agreement. If the Proposal conflicts with the terms, conditions, rights, or obligations of this Agreement, the language of the Agreement will be controlling over the language in the Proposal. Page 556 of 579 A-2 DOCSOPEN-RC145-763-1053163.v1-10/3/25 Page 557 of 579 B-1 DOCSOPEN-RC145-763-1053163.v1-10/3/25 EXHIBIT B PHASE 1 AND PHASE 2 RESPONSIBILITIES AND COSTS Responsibilities SMM will provide fabrication and installation services as defined by the terms of this Agreement and the scope of Exhibit Services contained in this Exhibit B. 1. SMM’s Scope of Services shall be the provision of expertise to supply, fabricate and realize exhibits for the City in Richfield, MN. The City will have approximately 1,200 square feet of exhibit space. Exhibits will be built as designed and two phases and consist of the following exhibit components: Phase 1 Exhibit Components ● Watershed table ● Everyone’s a Naturalist ● Binocular Station & Who’s Hooo? ● Eras Tour ● Paludarium graphics only ● Live animal tank graphics ● 3 stools provided by SMM (cattail seating provided by BlueRhino) ● Intro Floor Graphic ● EBird Kiosk ● Shipping and installation Phase 2 Exhibit Components ● Floor map + viewing station ● Night and Day Play Space ● Biome Balance The following exhibits are not included in SMM’s scope: ● Murals/snoops ○ Below ○ Above ● Sculptures/snoops ○ Muskrat Page 558 of 579 B-2 DOCSOPEN-RC145-763-1053163.v1-10/3/25 ○ Underwater groundform ○ Cattails ○ Paludarium sculpture ● Shipping and installation of items not included in SMM’s Scope Fabrication, Production & Installation: SMM will provide exhibit production and installation services as follows: 1. Video and Computer Production: a. Produce scripts and storyboards for video- and computer-based components. b. Produce finished video and computer programs. c. Fabricate casework, kiosks and other exhibit components and furniture, including all equipment and hardware, necessary for the presentation of media-based programs in the galleries. 2. Exhibit Production: a. Fabricate exhibit components according to the approved component list and final design drawings and specifications. b. Produce finished graphic panels according to the approved component list and graphic templates. c. Supply all consumables for all of the exhibits for a period of ninety (90) days after the City accepts the scope of work herein defined. 3. Installation: a. Arrange for the exhibit to be shipped to the City’s facility in Richfield, MN. b. Provide staff necessary to install exhibits, including supervising installation staff and coordinating with the City’s facilities and exhibits staff. c. Provide the City with documentation of all video and computer hardware, equipment, mechanisms, wiring diagrams, part numbers, colors, materials, etc., used in the exhibit. d. Provide the City with maintenance manuals for all interactive exhibit components. e. Train the City staff in the routine, preventative maintenance of all exhibit components. 4. Warranty: SMM will correct and repair defects in materials and workmanship as necessary and as provided in section 7, above. 5. SMM shall execute, produce, deliver, install, test, tune, review and otherwise complete the exhibits not later than opening day, November 17, 2026. Costs Phase 1 Page 559 of 579 B-3 DOCSOPEN-RC145-763-1053163.v1-10/3/25 Watershed table $74,969 Everyone’s a Naturalist $22,517 Binocular Station & Who’s Hooo? $41,048 Eras Tour $10,223 Paludarium graphics only $1,752 Live animal tank graphics $5,831 All seating (included in exhibit costs) Intro Floor Graphic $1,748 EBird Kiosk $8,428 Shipping/ Install $63,274 Phase 1 Total $229,790 Phase 2 Floor map + viewing station $52,097 Night and Day Play Space $39,542 Biome Balance $33,229 Phase 2 Total* $124,868 TOTAL $354,658 * An additional cost may be included for installation if a second trip is needed due to Phase 2 beginning after May 1, 2026. The City hereby agrees to pay SMM for services to be performed by SMM under this Agreement the total contract amount of three hundred and fifty-four thousand six hundred and fifty-eight dollars and 00/100 U.S. Dollars ($354,658) in two phases. Phase one will commence upon execution of this Agreement. Phase two will commence according to this Agreement’s Section 3c) Phase 2 Scheduling. As stated, if Phase 2 commences later than May 1, 2026, the parties acknowledge that a second installation trip may be required which will increase costs and may impact the opening date of the exhibits identified in Phase 2. Payments by the City to SMM for Exhibit Services shall be due as set forth in this Exhibit B. Subject to the City’s right to withhold payment in accordance with this paragraph, all invoices Page 560 of 579 B-4 DOCSOPEN-RC145-763-1053163.v1-10/3/25 (other than Payment #1, which shall be due upon execution of the contract) will be due on a net 30 basis. If the City fails to make any payment to SMM within seven (7) days of its due date, SMM may stop providing Exhibit Services until payment of the amount owing is received. In addition, the opening date may be delayed appropriately, and the City shall be responsible for any additional costs incurred by reason of the delay caused by the failure to make payment. Final payment in full to SMM for Exhibit Services, including any retainage previously withheld, shall be made within thirty (30) days from delivery of the Exhibit to the City’s facility. SMM shall submit invoices to: Name: Richfield Community Center Street Address: 7000 Nicollet Ave City, State, Zip: Richfield, MN 55423 Attn: Karl Huemiller Payments due to SMM which are not made when due as provided below shall bear interest at an annual interest rate of 12%, except that, if the City reasonably disputes any part of an invoice, that portion of payment which the City reasonably disputes shall not bear interest until the dispute is resolved. Phase 1 Payment Schedule: Milestones/Deliverables Anticipated Date Amount Project Commences Upon Signing of Contract $55,516 Fabrication Progress Payment January 31, 2026 $55,500 Anticipated Fabrication Completion Date June 30, 2026 $55,500 Exhibit Installation Date November 17, 2026 $63,274 Phase 1 Total $229,790 Page 561 of 579 B-5 DOCSOPEN-RC145-763-1053163.v1-10/3/25 Phase 2 Payment Schedule Milestones/Deliverables Anticipated Date Amount Phase 2 Commences Upon Authorization from the City $62,434 Exhibit is Installed November 17, 2026 $62,434 Phase 2 Total* $124,868 * An additional cost may be included for installation if a second trip is needed due to Phase 2 beginning after May 1, 2026. Page 562 of 579 C-1 DOCSOPEN-RC145-763-1053163.v1-10/3/25 229790 EXHIBIT C Insurance Requirements Contractor, at its sole cost and expense and throughout the term of this Agreement, shall purchase and maintain the following insurance coverage: a. Workers’ Compensation & Employer’s Liability – This coverage shall be carried in accordance with the laws of Minnesota and coverage shall be with the following limits: i. Workers’ Compensation: Statutory ii. Employer’s Liability: 1. Each Accident $1,000,000 2. Occupational Disease per Employee $1,000,000 3. Occupational Disease Aggregate $1,000,000 b. Commercial General Liability – This policy shall be written on an Occurrence form, will be written on an Insurance Services Office (ISO) CG 00 01 12 07 or its equivalent, and must provide coverage for Bodily Injury, including death, Property Damage, Products/Completed Operations, Contractual Liability and Personal & Advertising Injury. This Agreement must be recognized as an insured contract by this policy, including providing coverage for this Agreement within the Personal & Advertising Injury coverage part. The following minimum limits shall be provided: i. General Aggregate Specific to this Agreement $2,000,000 ii. Products/Completed Operations Aggregate Specific to this Agreement $2,000,000 iii. Personal & Advertising Injury $1,000,000 iv. Each Occurrence $1,000,000 c. Commercial Umbrella/Excess Liability – Coverage provided by this policy must at least be as broad as coverage found in policy b. (above) and must name policies a. and b. (above) as underlying policies to which it attaches. If the limits of the underlying policies are reduced or exhausted due to loss payments, this policy’s limits will apply in excess of the reduced limits, or if the underlying limits are exhausted, this policy’s limits will apply as underlying limits until its own limits are exhausted. The minimum limits for this policy are $5,000,000. d. General Insurance Provisions: i. Policies a., b., and c. shall waive any rights of recovery or subrogation against City. ii. Policies b. and c. shall name City as an additional insured and shall be Page 563 of 579 C-2 DOCSOPEN-RC145-763-1053163.v1-10/3/25 primary and noncontributory. iii. All policies will be written with an insurance company that has an AM Best Financial Strength Rating of A X Stable or better and must be licensed to do business within Minnesota. iv. Any of the limits required above may be met with any combination of primary and excess policies as long as coverage is consistently broad in all layers. v. Insurance coverage limits, terms and conditions stated herein are to be considered minimums and do not denote to Contractor or its insurers any limitations of liability. Contractor is expected to maintain the appropriate insurance limits and coverage that are commensurate with the risks associated with the completion of this Agreement. vi. Contractor, prior to the commencement of this Agreement and the commencement of any work, shall deliver to City a valid Certificate of Insurance and a copy of the policy showing that the insurance requirements denoted in this Exhibit are in place. Upon the expiration of any policy described above, Contractor shall deliver to City an updated Certificate of Insurance that shows that the expired policy has been renewed. vii. All policies must be endorsed to provide 30 days’ notice to City prior to cancellation. Coverage material to this Agreement cannot be modified without 30 days’ notice to City. viii. Contract will require any subcontractors it engages with to complete the scope of work described within to have and maintain insurance at least as broad and with at least the minimum limits as required of Contractor by this Agreement. ix. Failure to obtain or maintain any of the insurance requirements denoted within will be deemed a breach of this Agreement. Page 564 of 579 1 RFP RESPONSE AUG 12, 2025 Prepared by: WOOD LAKE NATURE CENTER FABRICATION Page 565 of 579 1 Dear Karl, Thank you for this opportunity to express our interest on behalf of the Science Museum of Minnesota and Blue Rhino Studio in providing fabrication services to create accessible, theme-based interpretive exhibits for Wood Lake Nature Center. Our two teams of multi-talented exhibit and media developers, designers, fabricators, and sculptors combine cutting-edge, innovative techniques with tried-and-true approaches to realize unique experiences that delight visitors and stand the test of time. For more than 35 years, the Science Museum of Minnesota, a non-profit museum, has fabricated landmark exhibits for ourselves and dozens of partner institutions across the continent and around the world. Over the last 25 years, Blue Rhino Studio has produced two and three-dimensional sculptures of all detail levels, and diverse exhibits that include sculpture, mural, carpentry, and metal work across the United States as well as internationally. As your fabrication team, we’re more than a vendor: we are also mission-driven to help other organizations inspire learning. Our reputation stands on the quality of both the exhibits and the partnerships we create. We work with our clients to imagine—from visitor and operations perspectives—the best exhibits possible, and we both learn, innovate, and advance the field. In that spirit, we’d like to highlight a few philosophical approaches that produce good experiences for everyone during the fabrication phase: COLLABORATIVE PROCESS Our flexible and supportive project teams bring all of SMM and Blue Rhino’s experience to the table, facilitate helpful conversations, and implement your decisions. We’re dedicated to a relationship that fosters positive communication and creative outcomes. ARCHITECTURAL INTEGRATION Exhibits, galleries, and the many distinct-but-interrelated functions of an exhibit space all work best for visitors and staff when they’re parts of an integrated whole. As you're considering building modifications, we’ll bring knowledge and expertise to discussions of flow, adjacencies, and operations. COMPLETE PLANNING, DESIGN, PROTOTYPING, BUILD, INSTALL, AND SUPPORT SERVICES We have the expertise and capacity to execute the fabrication, installation, and warranty support of your project within your expressed timeline. Several members of our team are superfans of the nature center and we hear your desire to create intuitive, highly interactive exhibits that will keep visitors engaged and coming back. We would be thrilled to support your tradition of connecting visitors with the natural world. Sincerely, Amber Stevenson Senior Director of Traveling Exhibits and Exhibit Sales 651-208-9025 (mobile) 651-221-4533 (fax) astevenson@smm.org Science Museum of Minnesota 120 West Kellogg Boulevard Saint Paul, MN 55102 COVER LETTER Page 566 of 579 2 The Natural History Museum of Utah (NHMU) developed and designed Nature All Around Us as a temporary, locally focused installation meant to help visitors see familiar places through new eyes and to learn and practice a naturalist’s skills. But, recognizing the show’s appeal to a wider audience, NHMU asked SMM to reimagine it as a traveling exhibit. SMM redeveloped parts of the exhibit to include a broader variety of species and habitats, refined the interactives to ensure their durability over a ten-year tour, and reinvented and fabricated the components and infrastructure to make them suitable for travel. This exhibit explores the ways our daily lives are intertwined with nature—how trees cool our neighborhoods, how streams carry storm water away from our homes, and how spending time in nearby nature keeps us healthy. Visitors learn about how to get involved in their own communities and leave inspired by specimens and interactives. Partner: The Natural History Museum of Utah Size: 5,000–7,000 square feet NATURE ALL AROUND US FIRM EXPERIENCE AND REFERENCES Page 567 of 579 3 Our Backyard is an outdoor gallery with exhibits focused on water, engineering, energy, and food. With interactive experiences and comfortable seating surrounded by trees, gardens, and “wilder” spaces (like rain gardens), Our Backyard provides opportunities for both gathering and reflective solitude. Visitors may choose to unplug and experience the wonder that comes from watching pollinators flit from flower to flower or marvel at the diversity of colors and textures in a bed of flowers. When complete, Our Backyard will offer high-energy, full-body exhibits focused around a theme of climate resilience and sustainability and blend a variety of gardens, native plantings, and demonstration fields into the outdoor exhibit to create a vibrant, living environment. Science Museum of Minnesota Size: 77,000 square feet OUR BACKYARD Page 568 of 579 4 MISSISSIPPI RIVER VISITOR CENTER Working with the National Park Service and Mississippi Park Connection, SMM developed new exhibits for the Mississippi River Visitor Center. The primary goals were to attract more visitors and to inspire them to experience the park first-hand. We accomplished the first by improving sight lines into the visitor center, installing a 20’ video collage at the entrance, and expanding the popular satellite image floor graphic. Additional interactive and media experiences, including an immersive, large-screen video canoe trip down the river, help accomplish the second goal. Since opening the new exhibit, attendance at the Mississippi River Visitor Center has more than tripled. The Mississippi River Visitor Center received the Outstanding Public Engagement Award from the Public Lands Alliance. Partner: National Park Service and Mississippi Park Connection Size: 1,800 square feet Page 569 of 579 5 Made in Cincinnati—developed for Cincinnati Museum Center and winner of CityBeat’s 2023 Best Museum Exhibit award—celebrates the city’s robust “maker” history. It features stories of the innovators who seized opportunities and the people who helped bring new ideas, designs, and products to fruition. Highlights include an automated “object theater” that reveals the region’s significant contributions over time—from artisanal, hand-crafted creations to large- scale, industrial goods and inventions—and a vignette of once-enslaved Henry Boyd’s integrated 1840s cabinet shop. “We wanted to not only change the way we think about Cincinnati’s history, but also how we learn it,” said Elizabeth Pierce, President and CEO of Cincinnati Museum Center. “We’re presenting information and telling these stories in new, unconventional ways that we hope adds to the fun of learning.” Partner: Cincinnati Museum Center Size: 3,800 square feet MADE IN CINCINNATI MADE IN CINCINNATI Page 570 of 579 6 Blue Rhino Studio worked directly with the staff at Quarry Hill Nature Center to design and fabricate a highly varied and detailed space that is intentionally very “hands on.” The exhibitory elements and wildlife are embedded into groundforms, rockwork, and trees. Cabinetry is built with blackened steel and reclaimed wood from an old structure on the grounds of the nature center. Elements are specifically fabricated to suit Quarry Hill’s unique story and teaching curriculum. All interactives and live animal enclosures were carefully crafted to fit into the architecture and naturalistic scenes. Except for the custom tanks, Blue Rhino performed all work—design, illustrations, murals, climbable landscape elements, animal and botanical models, small hidden dioramas, and multiple embedded interactives. Quarry Hill became a new model for what a nature center environment could be. Partner: Quarry Hill Nature Center Size: 5,000 square feet BLUE RHINO PARTNER: QUARRY HILL NATURE CENTER Page 571 of 579 7 REFERENCES NATURE ALL AROUND US Natural History Museum of Utah | Salt Lake City, UT Contact: Tim Lee | Director of Exhibits Phone: 801.585.1105 Email: tlee@nhmu.utah.edu MISSISSIPPI RIVER VISITOR CENTER Forest Service | Saint Paul, MN Contact: Dan Dressler | Urban Connections Coordinator Phone: 651.392.7032 Email: daniel.dressler@usda.gov MADE IN CINCINNATI AND YOU ARE HERE Cincinnati Museum Center | Cincinnati, OH Contact: Whitney Owens | Chief Learning Officer Phone: 513.284.8869 Email: wowens@cincymuseum.org QUARRY HILL NATURE CENTER Quarry Hill Nature Center | Rochester, MN Contact: Pam Meyer | Executive Director Phone: 507.993.9283 Email: pameyer@rochester.k12.mn.us FIRM EXPERIENCE AND REFERENCES Page 572 of 579 8 ADDIE ROSENWINKEL // SHE/HER/HERS // EXHIBIT DESIGN MANAGERScience Museum of Minnesota, St. Paul, MN | arosenwinkel@smm.org Addie brings a decade of experience designing spaces for children’s museums across the country to her role leading SMM’s team of talented experience designers. Her work combines cutting-edge visual aesthetics with a deep understanding of the needs of museum guests to create interactive exhibits that spark joy, wonder, and curiosity in visitors of all ages. Addie joined SMM’s team in October 2024, previously working at KidZibits, Inc and the Minnesota Children’s Museum. A few of her favorite projects include the Wild California exhibit at the Children’s Museum of California, five new galleries for Children’s Imaginarium in Wausau, Wisconsin, and the fully renovated new galleries at Minnesota Children’s Museum. PROJECT TEAM AND TEAM MEMBER EXPERIENCE CHRISTINE SALM // SHE/HER/ELLA // PROJECT LEADERScience Museum of Minnesota, St. Paul, MN | csalm@smm.org Christine holds Project Management Professional (PMP) credentials and brings experience across various sectors of project management, bringing her expertise to SMM in 2025. Her project leadership specialties include logistics planning, process improvement, and project execution management. In addition, she holds a Master’s in Education, a Certificate in Translation, and a BSBA in International Business. With over 13 years of prior experience as an educator in both New York and Spain, Christine’s attention to the visitor experience and her ability to understand diverse audience perspectives are valuable assets to exhibit projects at SMM. ELIAS RAMOS-SOLIS // HE/HIM/HIS // EXHIBIT DESIGNERScience Museum of Minnesota, St. Paul, MN | eramos-solis@smm.org Elias has been an unwavering advocate for design in service of storytelling for 7 years with SMM. Intentional design choices—environmental, 3D, graphics—are key elements of immersive, memorable experiences that deeply resonate with a broad range of audiences and age groups. Elias has broad experience in designing immersive, inclusive, and engaging learning environments that range from outdoor spaces to history centers. Relevant work includes Our Backyard, Made in Cincinnati for Cincinnati Museum Center, Cultural Crossroads for the Mayborn Museum, RoboSapiens for the Scientific Center of Kuwait, and RACE: Are We So Different? AARON SCHMOLL // HE/HIM/HIS // SR. DIRECTOR OF EXHIBITSScience Museum of Minnesota, St. Paul, MN | ascmoll@smm.org With 10 years of museum experience, Aaron has a deep understanding of museum and exhibition operations. He brings a unique blend of artistic vision and technical proficiency to each project. Aaron has been with SMM in various roles since 2020. In his current role as Sr. Director of Exhibits, Aaron oversees the talented SMM teams responsible for the conceptualization, design, and fabrication of world-class exhibitions. His recent work includes project leadership for Cincinnati Museum Center's Advancing Health gallery, SMM's Nature All Around Us traveling exhibition, and fabrication direction for The New York Hall of Science's CityWorks gallery. Aaron grew up in Richfield, MN, where frequent class field trips and visits with friends to Wood Lake Nature Center shaped his love for the outdoors from a young age. Page 573 of 579 9 TIM QUADY // HE/HIM/HIS // LEAD PROJECT MANAGER, DESIGN LEADBlue Rhino Studio, Eagan, MN | tim.quady@rhinocentral.com Tim created Blue Rhino Studio 27 years ago and has surrounded himself with incredibly talented, excellent people who have allowed him to push his company to solely create artwork for education. He continually pushes his creative and artistic team to design and fabricate unique elements and environments for museums and visitor centers. No matter what the subject, location, or size, the team puts great effort into becoming a partner on projects where he can do work that matters and make a difference. BLUE RHINO STUDIO FABRICATION TEAM Blue Rhino Studio specializes in education-based interpretive design and artistic fabrication for museum and visitor center environments. Focused on design, detailed sculpture, meticulous mural painting, finish carpentry, and fine metal work, Blue Rhino Studio thrives on variety and embraces the challenge of constantly pushing its boundaries into new directions, ensuring each project feels innovative and invigorating. Over the past 27 years, Blue Rhino has frequently worked with the Science Museum of Minnesota and has built ongoing relationships with institutions across Minnesota, including the Bell Museum of Natural History, Minnesota Children’s Museum, the Minnesota History Center, Minnesota Zoo, Quarry Hill Nature Center, Harriet Alexander Nature Center, the MN DNR at Gooseberry Falls, Tower-Soudan Mine, St. Croix State Park, and Sibley State Park. Their work can also be seen across the country and abroad at the Panama Biomuseo, Chicago Field Museum, San Diego Museum of Natural History, Monterey Bay Aquarium, The Canadian Museum for Human Rights, The Sheikh Abdullah Al Salem Cultural Center, The San Diego Zoo, Pennsylvania DCNR, and the Ozarks Heritage Preserve, to name a few. EXHIBIT FABRICATION SMM has a world-class team of exhibit fabricators and prototypers skilled in the use of a wide array of techniques and materials, accustomed to working in-budget and on schedule, and rightfully proud of their reputation in the field for robust, highly interactive exhibits. Our 21,000-square-foot production facility includes shops for metalworking, machining, woodworking and cabinetry, acrylic fabrication, electronics, finishing, and state-of-the-art media and graphic production. Our fabricators have varied specialties and deep wells of knowledge for how components can be built to withstand wear and tear from visitors, time, and weather. All exhibits fabricated by SMM are built to the highest museum standards with particular attention to safety, reliability, and ease of maintenance. EXHIBIT MEDIA SMM has extensive in-house multimedia and web development capabilities to update the bird directory or develop other digital components. If desired, SMM is well versed in creating innovative immersive media that integrates objects, theatrical lighting, sound, and video to bring stories to life in the imaginations of visitors. PROJECT TEAM AND TEAM MEMBER EXPERIENCE Page 574 of 579 10 COST OF SERVICES COMPONENT Paludarium graphic sticker Cattail surround sculpture and sculpture dragonfly for paludarium Muskrat Sculpture Underwater groundform with snoops Mural graphic with snoops Watershed table Total CONTRACTOR SMM Blue Rhino Blue Rhino Blue Rhino Blue Rhino SMM COST ESTIMATE $1,752 $42,500 $54,000 $32,000 $17,500 $74,969 $222,721 COMPONENT Intro Floor Graphic Live animal tank graphics, 4 for each tank by season. (Live animal tank installation is out of scope) Cattail Sculpture with snoops Mural graphic with snoops Floor map with viewing stations Biome Balance Binocular Station with Who’s Hooo? Everyone is a Naturalist Total CONTRACTOR SMM SMM Blue Rhino Blue Rhino SMM SMM SMM SMM COST ESTIMATE $1,748 $5,831 $168,000 $17,500 $52,097 $33,229 $41,048 $22,517 $341,970 BELOW Exhibits Above Exhibits Page 575 of 579 11 COST OF SERVICES COMPONENT Night and Day Play Space Wood Lake Eras Tour EBird kiosk Total PRODUCER SMM SMM SMM COST ESTIMATE $39,542 $10,223 $8,428 $58,193 COMPONENT Shipping/Installation Shipping/Installation Mural graphic print and installation All seating Total PRODUCER SMM Blue Rhino SMM SMM/Blue Rhino COST ESTIMATE $27,963 $23,500 $35,311 SMM to provide 3 stools (included in cost with associated component) Blue Rhino to provide seating on cattail sculpture (included in its cost estimate above) $86,774 Notes: This pricing assumes that there will be two separate contracts for the Science Museum of Minnesota and Blue Rhino Studio. In the instance of dividing the exhibit into separate funding phases that require separate shipping/installation trips, an additional cost will be estimated. Other items may be added later but do not require pricing for this bid submission (brass castings, additional pull-out drawers throughout exhibits). Companion Experiences Other Grand Total $709,658 Page 576 of 579 DOCSOPEN\RC145\763\1047050.v1-9/3/25 EXHIBIT B PHASE 1 AND PHASE 2 RESPONSIBILITIES AND COSTS Bid SMM: $354,658 Bid Blue Rhino: $354,500 Phase 1 – $229,790 • Watershed table - $74,969 • Everyone’s a Naturalist - $22,517 • Binocular Station & Who’s Hooo? - $41,048 • Eras Tour - $10,223 • Paludarium graphics only - $1,752 • Live animal tank graphics - $5,831 • All seating (included in exhibit costs) • Intro Floor Graphic $1,748 • EBird Kiosk - $8,428 • Shipping/ Install – $63,274 Phase 1 - $312,500 • Murals/snoops o Below $17,500 o Above $17,500 • Sculptures/snoops o Muskrat $54,000 o Underwater groundform $32,000 o Cattails $168,000 • Install $23,500 Phase 2 - RFP 1 - $124,868 • Floor map + viewing station – $52,097 • Night and Day Play Space - $39,542 • Biome Balance - $33,229 Phase 2 - RFP 2 - $42,000 • Paludarium sculpture - $42,000 Page 577 of 579 DOCSOPEN\RC145\763\1047051.v1-9/3/25 EXHIBIT C Contractor, at its sole cost and expense and throughout the term of this Agreement, shall purchase and maintain the following insurance coverage: a. Workers’ Compensation & Employer’s Liability – This coverage shall be carried in accordance with the laws of Minnesota and coverage shall be with the following limits: i. Workers’ Compensation: Statutory ii. Employer’s Liability: 1. Each Accident $1,000,000 2. Occupational Disease per Employee $1,000,000 3. Occupational Disease Aggregate $1,000,000 b. Commercial General Liability – This policy shall be written on an Occurrence form, will be written on an Insurance Services Office (ISO) CG 00 01 12 07 or its equivalent, and must provide coverage for Bodily Injury, including death, Property Damage, Products/Completed Operations, Contractual Liability and Personal & Advertising Injury. This Agreement must be recognized as an insured contract by this policy, including providing coverage for this Agreement within the Personal & Advertising Injury coverage part. The following minimum limits shall be provided: i. General Aggregate Specific to this Agreement $2,000,000 ii. Products/Completed Operations Aggregate Specific to this Agreement $2,000,000 iii. Personal & Advertising Injury $1,000,000 iv. Each Occurrence $1,000,000 c. Commercial Umbrella/Excess Liability – Coverage provided by this policy must at least be as broad as coverage found in policy b. (above) and must name policies a. and b. (above) as underlying policies to which it attaches. If the limits of the underlying policies are reduced or exhausted due to loss payments, this policy’s limits will apply in excess of the reduced limits, or if the underlying limits are exhausted, this policy’s limits will apply as underlying limits until its own limits are exhausted. The minimum limits for this policy are $5,000,000. d. General Insurance Provisions: i. Policies a., b., and c. shall waive any rights of recovery or subrogation against City. ii. Policies b. and c. shall name City as an additional insured and shall be primary and noncontributory. Page 578 of 579 DOCSOPEN\RC145\763\1047051.v1-9/3/25 iii. All policies will be written with an insurance company that has an AM Best Financial Strength Rating of A X Stable or better and must be licensed to do business within Minnesota. iv. Any of the limits required above may be met with any combination of primary and excess policies as long as coverage is consistently broad in all layers. v. Insurance coverage limits, terms and conditions stated herein are to be considered minimums and do not denote to Contractor or its insurers any limitations of liability. Contractor is expected to maintain the appropriate insurance limits and coverage that are commensurate with the risks associated with the completion of this Agreement. vi. Contractor, prior to the commencement of this Agreement and the commencement of any work, shall deliver to City a valid Certificate of Insurance and a copy of the policy showing that the insurance requirements denoted in this Exhibit are in place. Upon the expiration of any policy described above, Contractor shall deliver to City an updated Certificate of Insurance that shows that the expired policy has been renewed. vii. All policies must be endorsed to provide 30 days’ notice to City prior to cancellation. Coverage material to this Agreement cannot be modified without 30 days’ notice to City. viii. Contract will require any subcontractors it engages with to complete the scope of work described within to have and maintain insurance at least as broad and with at least the minimum limits as required of Contractor by this Agreement. ix. Failure to obtain or maintain any of the insurance requirements denoted within will be deemed a breach of this Agreement. Page 579 of 579