The URL can be used to link to this page

Home My WebLink About03-03-26 City Council Meeting PacketCity Council Meeting Tuesday, March 3, 2026 7:00 p.m. City of Lake Elmo | 3880 Laverne Avenue North AGENDA Call To Order/Pledge Of Allegiance Approval Of Agenda Presentations Sustainability/Green Team Update Kristin Moroz, MPCA and Ashley Monterusso, City Planner presenting COUNCIL MEMO - SUSTAINABILTY UPDATE 3.3.26.PDF CC PRESENTATION - SUSTAINABILTY 3.3.26.PDF Public Comments/Inquiries Approval Of Minutes 02 -17 -26 CITY COUNCIL MEETING MINUTES.PDF Consent Agenda Approve Payments And Disbursements APPROVE PAYMENTS AND DISBURSEMENTS.PDF Approve Farm Lease For City Owned 180 Acres COUNCIL MEMO - FARM LEASE.PDF Approve Lake Elmo Strategic Communications Plan COUNCIL MEMO - COMMUNICATIONS PLAN.PDF STRATEGIC COMMUNICATIONS PLAN.PDF Approve Massage Therapy License Renewal MASSAGE THERAPY LICENSE RENEWAL.PDF Approve Lake Elmo Firehouse Addition COUNCIL MEMO - LAKE ELMO FIREHOUSE ADDITION MINOR SUBDIVISION.PDF RESOLUTION 2026 -014 LAKE ELMO FIREHOUSE ADDITION MINOR SUBDIVISION.PDF Approve Lake Elmo Fire Department VBWD Training Agreement STAFF REPORT - LAKE ELMO FIRE DEPARTMENT VBWD TRAINING AGREEMENT 3 -3 -26.PDF 2026_VBWD_LAKE ELMO_ FIRE DEPARTMENT TRAINING.PDF Regular Agenda Class And Compensation Update Administrative Services Director Jennifer Doyle and Brandon Fitzsimmons presenting COUNCIL MEMO - COMPENSATION STUDY.PDF LAKE ELMO COMPENSATION POLICY.PDF FLAHERTY AND HOOD PRESENTATION.PDF PROPOSALS.PDF FLAHERTY AND HOOD SERVICES AGREEMENT.PDF Stormwater Management Utility Code Review City Administrator Nicole Miller presenting COUNCIL MEMO -STORMWATER MANAGEMENT UTILITY CODE REVIEW.PDF CURRENT CITY CODE STORMWATER MANAGEMENT UTILITY.PDF 2026.02.25 STORMWATER UTILITY REVIEW QUOTE.PDF Council Reports Staff Reports Future Agenda Items FUTURE AGENDA ITEMS.PDF Adjourn In accordance with the requirements of Minn. Stat. Section 13D.02, members may participate remotely via interactive technology. Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership with our Community A. B. C. 1. Documents: D. E. Documents: F. 1. Documents: 2. Documents: 3. Documents: 4. Documents: 5. Documents: 6. Documents: G. 1. Documents: 2. Documents: H. I. J. Documents: K. City Council MeetingTuesday, March 3, 2026 7:00 p.m.City of Lake Elmo | 3880 Laverne Avenue NorthAGENDACall To Order/Pledge Of AllegianceApproval Of AgendaPresentationsSustainability/Green Team UpdateKristin Moroz, MPCA and Ashley Monterusso, City Planner presentingCOUNCIL MEMO - SUSTAINABILTY UPDATE 3.3.26.PDFCC PRESENTATION - SUSTAINABILTY 3.3.26.PDFPublic Comments/InquiriesApproval Of Minutes02-17 -26 CITY COUNCIL MEETING MINUTES.PDFConsent AgendaApprove Payments And DisbursementsAPPROVE PAYMENTS AND DISBURSEMENTS.PDFApprove Farm Lease For City Owned 180 Acres COUNCIL MEMO - FARM LEASE.PDF Approve Lake Elmo Strategic Communications Plan COUNCIL MEMO - COMMUNICATIONS PLAN.PDF STRATEGIC COMMUNICATIONS PLAN.PDF Approve Massage Therapy License Renewal MASSAGE THERAPY LICENSE RENEWAL.PDF Approve Lake Elmo Firehouse Addition COUNCIL MEMO - LAKE ELMO FIREHOUSE ADDITION MINOR SUBDIVISION.PDF RESOLUTION 2026 -014 LAKE ELMO FIREHOUSE ADDITION MINOR SUBDIVISION.PDF Approve Lake Elmo Fire Department VBWD Training Agreement STAFF REPORT - LAKE ELMO FIRE DEPARTMENT VBWD TRAINING AGREEMENT 3 -3 -26.PDF 2026_VBWD_LAKE ELMO_ FIRE DEPARTMENT TRAINING.PDF Regular Agenda Class And Compensation Update Administrative Services Director Jennifer Doyle and Brandon Fitzsimmons presenting COUNCIL MEMO - COMPENSATION STUDY.PDF LAKE ELMO COMPENSATION POLICY.PDF FLAHERTY AND HOOD PRESENTATION.PDF PROPOSALS.PDF FLAHERTY AND HOOD SERVICES AGREEMENT.PDF Stormwater Management Utility Code Review City Administrator Nicole Miller presenting COUNCIL MEMO -STORMWATER MANAGEMENT UTILITY CODE REVIEW.PDF CURRENT CITY CODE STORMWATER MANAGEMENT UTILITY.PDF 2026.02.25 STORMWATER UTILITY REVIEW QUOTE.PDF Council Reports Staff Reports Future Agenda Items FUTURE AGENDA ITEMS.PDF Adjourn In accordance with the requirements of Minn. Stat. Section 13D.02, members may participate remotely via interactive technology. Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership with our Community A.B.C.1.Documents:D.E.Documents:F.1.Documents:2.Documents: 3. Documents: 4. Documents: 5. Documents: 6. Documents: G. 1. Documents: 2. Documents: H. I. J. Documents: K. City Council MeetingTuesday, March 3, 2026 7:00 p.m.City of Lake Elmo | 3880 Laverne Avenue NorthAGENDACall To Order/Pledge Of AllegianceApproval Of AgendaPresentationsSustainability/Green Team UpdateKristin Moroz, MPCA and Ashley Monterusso, City Planner presentingCOUNCIL MEMO - SUSTAINABILTY UPDATE 3.3.26.PDFCC PRESENTATION - SUSTAINABILTY 3.3.26.PDFPublic Comments/InquiriesApproval Of Minutes02-17 -26 CITY COUNCIL MEETING MINUTES.PDFConsent AgendaApprove Payments And DisbursementsAPPROVE PAYMENTS AND DISBURSEMENTS.PDFApprove Farm Lease For City Owned 180 AcresCOUNCIL MEMO - FARM LEASE.PDFApprove Lake Elmo Strategic Communications PlanCOUNCIL MEMO - COMMUNICATIONS PLAN.PDFSTRATEGIC COMMUNICATIONS PLAN.PDFApprove Massage Therapy License RenewalMASSAGE THERAPY LICENSE RENEWAL.PDFApprove Lake Elmo Firehouse AdditionCOUNCIL MEMO - LAKE ELMO FIREHOUSE ADDITION MINOR SUBDIVISION.PDFRESOLUTION 2026 -014 LAKE ELMO FIREHOUSE ADDITION MINOR SUBDIVISION.PDFApprove Lake Elmo Fire Department VBWD Training AgreementSTAFF REPORT - LAKE ELMO FIRE DEPARTMENT VBWD TRAINING AGREEMENT 3 -3 -26.PDF2026_VBWD_LAKE ELMO_ FIRE DEPARTMENT TRAINING.PDFRegular AgendaClass And Compensation UpdateAdministrative Services Director Jennifer Doyle and Brandon Fitzsimmons presentingCOUNCIL MEMO - COMPENSATION STUDY.PDFLAKE ELMO COMPENSATION POLICY.PDFFLAHERTY AND HOOD PRESENTATION.PDFPROPOSALS.PDFFLAHERTY AND HOOD SERVICES AGREEMENT.PDFStormwater Management Utility Code ReviewCity Administrator Nicole Miller presentingCOUNCIL MEMO -STORMWATER MANAGEMENT UTILITY CODE REVIEW.PDFCURRENT CITY CODE STORMWATER MANAGEMENT UTILITY.PDF2026.02.25 STORMWATER UTILITY REVIEW QUOTE.PDF Council Reports Staff Reports Future Agenda Items FUTURE AGENDA ITEMS.PDF Adjourn In accordance with the requirements of Minn. Stat. Section 13D.02, members may participate remotely via interactive technology. Our Mission is to Provide Quality Public Services in a Fiscally Responsible Manner in Partnership with our Community A.B.C.1.Documents:D.E.Documents:F.1.Documents:2.Documents:3.Documents:4.Documents:5.Documents:6.Documents:G.1.Documents:2.Documents: H. I. J. Documents: K. STAFF REPORT DATE: March 3, 2026 PRESENTATION TO: Mayor and Councilmembers FROM: Ashley Monterusso, City Planner Presentation: Kristin Moroz, MPCA & Ashley Monterusso, City Planner AGENDA ITEM: Sustainability/Green Team Update REVIEWED BY: Miranda Moulis, Assistant City Planner; Ryan Ness, Finance; Kathie Smith, Communications Coordinator CORE STRATEGIES: ☒ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services ☐ Responsive, transparent, adaptive governance ☐ Balanced Finances now and future ☐ Managed Growth ☐ Resilient Infrastructure BACKGROUND: The City of Lake Elmo has received a Gold Leaf Award for participating in the Gold Leaf Program in 2025. Kristin Moroz, Director of the Green Steps Cities/Gold Leaf Programs with the MPCA will give a presentation to refresh Council and residents about each of the programs. The City has received Step 5 recognition in the Green Steps program the previous two years. The Gold Leaf program was developed to try to re-engage cities at level 5 to work toward new items. PURPOSE: This memo provides a sustainability update to inform the Council of the ongoing work being advanced across City departments. Over the past year, staff have been in the early stages of aligning efforts, coordinating across teams, sharing updates, and establishing baseline metrics to better track progress. Many sustainability-related achievements are occurring organically through existing programs and activiities. As tracking and reporting processes become more refined, staff will be able to present a more comprehensive and data-driven picture of the City’s sustainability performance in the years ahead. This update will encompass recent efforts and awards, grant tracking, and updates on ongoing initiatives. This is for information only; no action is needed. UPDATES: 2025/2026: GreenStep Cities Step 4&5 GreenStep Cities is a voluntary program by the MPCA that helps cities track sustainability measures. The City of Lake Elmo has maintained its Step 5 recognition status in the GreenSteps Cities Program. To maintain this designation, the City must report on all required metrics and improve in three or more Step 5-eligible metrics. This step recognition is celebrated at the League of Minnesota Cities conference, along with receiving an award block to commemorate the City’s achievement. 2025/2026: Gold Leaf Challenge The Gold Leaf Challenge focuses on pathways for communities to take local climate action. Using the GreenStep program resources, this new program aims to challenge, assist, and recognize efforts for completing any new actions from 44 high-priority, high-impact climate actions under the categories of climate mitigation, climate planning, climate adaptation, and community connectedness for Minnesota's changing climate. The City was awarded two leaves in 2025. One leaf for developing a Green Team that meets quarterly to provide updates on sustainability progress. The other leaf was received for working with the Washington County Eastern Metro for collaborating on a Tree Stewards volunteer program. This partnership is expected to continue in 2026. Staff would like to achieve at least two more leaves in 2026. 2025/2026: B3 Benchmarking B3, which stands for Buildings, Benchmarks, and Beyond uses basic building and meter information to summarize usage, costs, and carbon emissions in monthly and annual reports for public buildings. B3 can track energy, water and solid waste allowing for a wholistic view of a building's usage. The City has worked toward maintaining B3 Benchmarking. Data comes from Xcel Energy. City staff has used B3 to measure the energy performance of city infrastructure since 2024, and the data form part of the Green Step reporting metrics. City staff will continue to explore ways to leverage the platform further. Green Team Work Plan Guided by The GreenStep Cities and Gold Leaf programs, the City’s Green Team is coordinating across departments to identify and document efforts that are already happening as a part of day-to-day operations. By organizing and tracking this work now, the team is building a better picture of existing progress. This allows the team to set more focused and achievable goals and strengthen ongoing initiatives moving forward. 2026: Climate Chapter in Imagine 2050 Comp Plan Local governments are required to plan for climate change as part of their comprehensive plan. Doing so reduces risks, supports adaptation, and builds a more just, equitable, and resilient region. Climate change is both a threat and opportunity for our region. If we plan for climate change now, we can not only thrive despite its impacts but can also create a more just, equitable, and climate resilient region. The City of Lake Elmo will begin its work to meet the requirements of the Met Council in 2026 & 2027. 2025: Tree City USA Community In 2025, the City of Lake Elmo is expected to receive Tree City USA status for the 20th year in a row. Tree City USA is a program which recognizes the City for ongoing efforts related to expanding and maintaining the tree canopy. Participation in Tree City USA requires the community to celebrate Arbor Day annually with a proclamation and celebration. In 2025, the City of Lake Elmo distributed around 500 trees for free to city residents. The annual Arbor Day Tree Giveaway is free to all residents of Lake Elmo. Tree Fund In 2025, the City of Lake Elmo established a Tree Fund by ordinance to provide a dedicated fund for tree replacement throughout the city. The primary funding sources will be from fee-in-lieu of tree replacement, funds allocated by City Council, and individual and business donations. • Boulevard Tree Program – Using the Tree Fund, the City of Lake Elmo has implemented a Boulevard Tree Program. Boulevard trees are an essential part of the landscape, providing a range of benefits to residents, including improved air quality, cleaner stormwater, and improved mental health. The goal of the program is to provide street trees to residents who lack trees within the right-of-way along their properties. Washington County Recycling Grant • 2025: The City received funding for collaborating with Washington County on recycling efforts. Projects for 2025 included purchasing and distributing recyclable totes, improving communication efforts around waste reduction and promoting recycling educational materials. The City also participated in an annual Pumpkin Collection put on by Washington County where the City of Lake Elmo was reported to have the highest weight of pumpkins collected in the County. • 2026: The City has applied for funding in 2026. If funding is received, the City will continue to collaborate with the County on recycling efforts and projects. In 2026 the City plans to use funding for new recycling bins at City Parks in addition to continuing to maintain and improve communication efforts both digitally and by mailers. Staff are also exploring hosting a recycling/fix-it clinic event in 2026. Fuel Cloud In 2024 the City implemented Fuel Cloud software at Public Works to provide tracking of fuel inventory. This data has helped establish baseline metrics for GHG emissions from the City fleet. Smart Salting – Primary Public Works winter maintenance staff are certified through the MPCA’s Smart Level 1 training. Public Works leadership is exploring Level 2 training in the future. East Metro Water Resource Education Program (EMWREP) - The City of Lake Elmo is part of the East Metro Water Resource Education Program (EMWREP), which is a partnership of local units of government to provide education about issues affecting local lakes, rivers, streams, and wetlands to improve the health of our water resources. The City began partnering on the Tree Stewards Volunteer Program with EMWREP and is looking to work together on their Water Stewards Volunteer Program in the fall of 2026. Staff will continue to explore opportunities for education and collaboration with EMWREP. Water Rebate Program The City of Lake Elmo, in partnership with the Metropolitan Council offers a rebate program for purchases of eligible water-efficient products. The goal of the water efficiency grant program is to improve municipal water use. This funding has enabled Lake Elmo to provide a rebate to current water customers who replace existing devices with specified water-efficient products. Qualifying purchases are eligible for a rebate on your water bill. Water Brochure In 2025 the City of Lake Elmo sent out a Water Report to Lake Elmo residents. The report included information on watering restrictions which will help maintain water tower levels during the hottest times of the year. The Report also included water conservation tips. The City plans to continue to send a yearly report to residents each Spring. Low-Input Grass Testing To reduce water use and fertilizer, the University of Minnesota began researching various low-input grass species in Lake Elmo, on a plot of land to redefine sustainable grass and its application in Minnesota. The goal of this research is to improve conservation by developing drought-resistant grass that requires less fertilizer and irrigation water, while still maintaining an attractive lawn appearance. Re-Use/Redevelopment The City encouraged re-use in the Request for Proposal for the Old Fire Station and Parks properties in the City’s Old Village in 2025. The chosen project, opted to keep the retired Fire Station building as a result of the process. ACTION: • No action needed ATTACHMENTS: • Green Team Work Plan Green Team | 2026 Work Plan Goal LEAVES Action Reporting & Recognition Criteria Project Timeline CA5 - Resilient Trees - Google Docs 1 LEAF possible (2026) Resilient Trees: Plant and maintain at least 2-3 climate resilient trees for each public tree lost. 1 Leaf is awarded each year that you can document an active effort to replace every tree lost/removed with 2-3 resilient trees planted. This should include ongoing efforts and not just one- Tree Fund and Boulevard Tree Program Winter 2026 1+ LEAF possible Water Brochure in 2025 Spring 2026 PW using drought tolerant seeds Fall 2026 Water Rebate Program December Implement a new project in 2026 if there is staff capacity Winter 2026 CC8 - Tree Steward Community - Google Docs 1 LEAF EARNED! (2025) 1 LEAF possible Tree Steward Community: Participate in the Tree Steward Program 1 Leaf is awarded each year that you can document an active volunteer tree planting and maintenance program. This should include ongoing efforts and not just one-off events throughout the year You can receive a leaf each Partner with Washington Conservation District on Tree Stewards Program Summer/Fall 2026 CM4 - Resilient Growth - Google Docs 1-2 LEAVES possible Resilient Growth: Document a project that has newly developed an infill lot or redeveloped an existing but underutilized property using local/tribal government- incentives or as the result of a local/tribal policy. 1 Leaf is awarded per each new redevelopment or infill project that is completed following the adoption of a policy and/or incentive program. Once one project is reported under one policy/program under this action, it cannot be used to achieve another Leaf (1 per lifetime of RFP for Former Fire Station and Parks Building qualify as a project we can report on Fall 2026 Goal Action Criteria Next Steps Timeline Use GS spreadsheet guidance AM to begin entering data in Winter Spring 2026 Make improvements outlined in GS Guide (#5)AM to reach out to staff to help gather data Summer/Fall 2026 Goal Action Questions Next Steps Timeline WATER IMPACT CHALLENGE Action #4 Research and explore best option for participation in 2026 and beyond 2. Maintain Green Steps 4&5 Maintain Steps 4&5 3. Participate in Green Steps: Water Impact Challenge Report metrics, track improvements, refine goals 1. Work toward acheiving Gold Leaf Action Items & setting goals CA7 - Drought Tolerance - Google Docs Water Conservation/Drought Tolerance: Newly implement a strategy to minimize the impacts of drought and/or recharge groundwater storage with projects such as: incentives to use water conserving fixtures, harvesting rainwater, reusing water, restricting the use of water for non-essential uses, infiltrating stormwater, etc. 1 Leaf is awarded per each new project completed at a site (once per lifetime of the project). Multiple leaves can be awarded in one year for separate projects. A challenge, assistance & recognition program for taking more sustainable actions Kristin Mroz, GreenStep Cities & Tribal Nations Co-Director, Minnesota Pollution Control Agency MN GreenStep Program 156 Communities www.MNGreenStep.or g Lake Elmo GreenStep Status Current Distribution of City’s GreenStep Best Practice Categories Joined: May 2012 Status: Step 5 Total Best Practices (BPs) Completed: 15 Total BP Actions Completed: 30 Lake Elmo’s GreenStep Cities page Lake Elmo’s Assessment File Lake Elmo’s Metric File 16% 27% 3%27% 27% Buildings & Lighting Land Use Review GreenStep Best Practices Set Goals Use GreenStep implementation tools Implement and Report Actions Report and Analyze Metrics Step Cycle 5 Pass Resolution Set Targets Improve Targets Best Practice Actions 6 29 Best Practices → 181 Possible Actions 5,650 actions reported The Steps 7 Taking the Next Steps The primary purpose and benefit of Steps 4 and 5 is for participants to track and celebrate outcomes that best practice actions have had on your community over time. Reporting Options for Step 4:•4A – Meet with GreenStep staff to select your sustainability targets•4B – Select & report your sustainability targets•4C – Report GreenStep-identified metrics Reporting Options for Step 5:•5A – Improve your sustainability targets•5B – Report GreenStep-identified metrics•5C – Report new/improved Best Practice Actions•5D – Give a presentation•5E – Publish a story•5F – Survey residents about your targets•5G – Participate in a Minnesota action program GreenStep Step 4 & 5 Metrics https://greenstep.pca.state.mn.us/page/steps-4-and Lake Elmo, 2024 LMC Conference Program StructureOpen to all types of communities To challenge, assist, and recognize efforts that lead to taking climate action. 44 Gold Leaf Actions & Guides High-impact, high-priority best practices across mitigation, adaptation, planning, and community connectedness Awards for current actions Sorry, no past actions allowed. It’s all about moving forward! Start with a Green Team First and only action that is required wwww.MNGgoldLeaf.org Gold Leaf Challenge Voluntary Focused on high-impact climate actions Open to many communities No barriers to entry Volume of actions rewarded Targeted menu of options Starts with a Green Team Emphasizes new actions taken GreenStep Communities Voluntary Defines “sustainability” broadly Focused on cities and Tribal nations City or Tribal Council resolution to join Rewarded by Step community is on Broad menu of options No starting best practice Rewards past and current planning and actions 44 G O L D L E A F A C T I O N S Lake Elmo’s 2025 Reported Actions CC1 – Combined Green Team •City staff "green team" meets quarterly to discuss ongoing projects related to sustainability and gather and organize information to coordinate and align projects across departments. CC8 – Tree Steward Community •Worked with County on Tree Steward Program and coordinated volunteers to attend National Night Out events to engage with residents Presentation Break Sustainability/Green Team Update City Council | 3/3/2026 Lake Elmo Green Team •Guided by The GreenStep Cities and Gold Leaf programs •Meet Quarterly •Coordinate across departments to identify and document ongoing and new efforts •By organizing and tracking this work now, the team is building a better picture of existing progress. •This allows the team to set more focused and achievable goals and strengthen ongoing initiatives moving forward. Gold Leaf Challenge Voluntary Focused on high-impact climate actions Open to many communities No barriers to entry Volume of actions rewarded Targeted menu of options Starts with a Green Team Emphasizes new actions taken GreenStep Communities Voluntary Defines “sustainability” broadly Focused on cities and Tribal nations City or Tribal Council resolution to join Rewarded by Step community is on Broad menu of options No starting best practice Rewards past and current planning and actions What is the team working on? What is the team working on? Work Plan What is the team working on? •Reporting sustainability metrics to Green Steps (every Winter/Spring) •Categories include: •Building and Lighting •Transportation •Land Use •Environmental Management •Economic and Community Development •City Operations GHG Inventory (B3) 44 G O L D L E A F A C T I O N S Updates Achieved and maintained Step 4 & Step 5 in Green Steps program for the second year in a row Awarded two gold leaves in 2025, goal to add more in 2026 B3 Benchmarking Updates •Implemented in 2024 •Tracks fuel inventory for City fleet •Helped to establish baseline metrics for GHG emissions from City fleet •In 2025 UMN began researching various low-input grass species in Lake Elmo •Goal: to improve conservation by developing drought-resistant grass that requires less fertilizer and irrigation water, while still maintaining an attractive lawn appearance. •Tree Stewards, 2025 & 2026 •Water Stewards, Fall 2026 Smart Salting – MPCA Smart Level 1 Fuel Cloud Low Input Grass Testing East Metro Water Resource Education Program (EMWREP) Updates •The City of Lake Elmo, in partnership with the Metropolitan Council offers a rebate program for purchases of eligible water-efficient products. 2025 the City of Lake Elmo sent out a Water Report to Lake Elmo residents. Info on: •Watering restrictions •Water conservation tips •2025 RFP encouraged re-use of Former City Fire Station Water Rebate Program Water Brochure/Report Reuse/Redevelopment Updates Washington County Recycling Grant •Improved communications efforts •Website, newsletters, socials •Helped promote North Environmental Center in Forest Lake •Reusable totes •Pumpkin Composting •Applied for funding in 2026 •Continue to collaborate with county on recycling efforts and projects •New recycling bins at City Parks (5) •Recycling events tbd Updates 2025: Tree City USA Community •2025 City is expected to receive Tree City USA status again •Tree City USA is a program which recognizes the City for ongoing efforts related to expanding and maintaining the tree canopy. •City of Lake Elmo distributed ~500 trees at Arbor Day Tree Give Away •2026 City is looking to receive Tree City Growth Award Tree Fund •2025 City established a Tree Fund •dedicated fund for tree replacement throughout the city •The primary funding sources will be from fee-in-lieu of tree replacement, funds allocated by City Council, and individual and business donations. Boulevard Tree Program •2026 – Implemented a Boulevard Tree Program using the Tree Fund •The goal of the program is to provide street trees to residents who lack trees within the right-of-way along their properties Updates Local governments are required to plan for climate change as part of their comprehensive plan. Doing so reduces risks, supports adaptation, and builds a more just, equitable, and resilient region. Climate change is both a threat and opportunity for our region. If we plan for climate change now, we can not only thrive despite its impacts but can also create a more just, equitable, and climate resilient region. The City of Lake Elmo will begin its work to meet the requirements of the Met Council in 2026 & 2027. Climate Chapter in Imagine 2050 Comprehensive Plan CITY OF LAKE ELMO CITY COUNCIL MINUTES FEBRUARY 17, 2026 CALL TO ORDER/PLEDGE OF ALLEGIANCE Mayor Cadenhead called the meeting to order at 7:00 pm. PRESENT: Mayor Charles Cadenhead and Councilmembers, Nick Dragisich, Matt Hirn, Jeff Holtz and Nick Kragness. Staff present: Administrator Miller, City Attorney Sonsalla, Acting Public Works Director Swanepoel, City Engineer Stanley and City Planner Ashley Monterusso. APPROVAL OF AGENDA Councilmember Holtz, seconded by Councilmember Kragness, moved TO APPROVE THE AGENDA AS PRESENTED. Motion passed 5 – 0. ACCEPT MINUTES Councilmember Holtz, seconded by Councilmember Hirn, moved TO ACCEPT THE MINUTES OF THE FEBRUARY 4, 2026 CITY COUNCIL MEETING AS PRESENTED. Motion passed 5 – 0. PUBLIC COMMENTS/INQUIRIES None CONSENT AGENDA 1.Approve Payment of Disbursements 2.Approve Building Permit Fee Reduction for the St. Jude Dream Home 3767 Knightsbridge Ln. N. 3.Approve Zoning Text Amendment – Public Hearing Notice Distances 4.Approve Zoning Text Amendment – Housekeeping Items 5.Approve Hiring of FT Firefighter Councilmember Dragisich, seconded by Councilmember Hirn, moved TO APPROVE THE CONSENT AGENDA AS PRESENTED. Motion passed 5 - 0. REGULAR AGENDA LAKE ELMO CITY COUNCIL MINUTES FEBRUARY 17, 2026 Page 2 of 3 Item 1: 2026 Street and Utility Improvements – Accept Bids and Award Contract City Engineer Stanley provided a brief overview and reviewed the bids received for the 2026 Street and Utility Improvements project, noting that McNamara Contracting, Inc. was the low bidder. Councilmember Holtz, seconded by Councilmember Hirm, moved TO APPROVE RESOLUTION NO. 2026-013, ACCEPTING BIDS AND AWARDING A CONTRACT TO MCNAMARA CONTRACTING, INC., FOR THE BID AMOUNT OF $1,570,583.60 FOR THE 2026 STREET IMPROVEMENTS. Motion passed 5 – 0. Councilmember Holtz, seconded by Councilmember Dragisich, moved TO AUTHORIZE THE CITY ADMINISTRATOR TO ENTER INTO A MATERIAL TESTING CONTRACT FOR THE PROJECT CONSTRUCTION PHASE SERVICES IN THE NOT-TO-EXCEED AMOUNT OF $30,000 FOR THE 2026 STREET IMPROVEMENTS. Motion passed 5 – 0. Item 2: Registered Land Survey #132 – 3481 Laverne Ave City Planner Monterusso presented the request for a registered land survey to reconfigure the property boundaries to ensure the former creamery building is fully contained within its own dedicated parcel. Applicant John Peccia expressed concerns regarding an easement on the north side of the building that could allow the city access for future development. Discussion was held regarding condition #6 and the location of the drainage and utility easement. Councilmember Holtz, seconded by Councilmember Hirn, moved TO APPROVE OF PROPOSED RESOLUTION 2026-012, APPROVING RLS NO. 132 FOR THE PROPERTY LOCATED AT 3481 LAVERNE AVENUE N. BASED ON THE FINDINGS OF FACT AND THE CONDITIONS PRESENTED IN THE STAFF REPORT. Councilmember Holtz, seconded by Councilmember Hirn, moved TO AMEND THE PRIMARY MOTION SO ADD TO CONDITION 6 AFTER THE WORD “FOOTPRINT,” “OR AS REDUCED BASED ON WATER AND SEWER CONNECTION PLANS FOR BOTH TRACT A AND TRACT B.” Motion passed 5 – 0. Primary motion passed 5 – 0. Item 3: Highpointe Crossing – Revised Concept Plan Contract Planner Nathan Fuerst presented an updated concept plan from Rachel Development for 18 single family homes on the nearly 80 acre site. Planner Fuerst reviewed development standards, review comments and nonstandard elements. Discussion was held regarding rural road standards. LAKE ELMO CITY COUNCIL MINUTES FEBRUARY 17, 2026 Page 3 of 3 Paul Robinson, Rachel Development, commented on the updated plan and requested rural road standards with no concrete curb and wetland and buffers allowed within the lots. Mr. Robinson also made a request for PVC vs. ductile iron watermain, storm water requirements and septic locations and design. Discussion was held regarding Mr. Robinson’s requests. Item 4: Public Hearing Notice Process Enhancements City Administrator Miller reported on use of social media for public hearing notices as part of the city’s communications plan. Consensus of Council was to not use social media for public hearing notices. COUNCIL REPORTS Councilmember Dragisich: proposed updating the process for Councilmembers to add items to the council meeting agenda. Councilmember Kragness: reported on the Lake Elmo Airport Commission upcoming open house. Meeting adjourned at 9:10 p.m. LAKE ELMO CITY COUNCIL ATTEST: ______________________________ Charles Cadenhead, Mayor _______________________________ Julie Johnson, City Clerk STAFF REPORT Date: March 3, 2026 Consent TO: Mayor and City Council FROM: Clarissa Hadler, Finance Director, Mike Kuehn, Finance AGENDA ITEM: Payments and Disbursements REVIEWED BY: Clarissa Hadler, Finance Director BACKGROUND INFORMATION/STAFF REPORT: The City of Lake Elmo maintains a fiduciary responsibility to conduct normal business operations. Below is a summary of current claims scheduled for disbursement and payment in full compliance with applicable state statutes and City policies and procedures. As part of our strategic transition to the new BS&A Software platform, additional supplemental batches may be incorporated to facilitate a seamless and efficient migration process. **Note: Certain General Ledger account numbers associated with the attached invoices may be subject to change or be updated as adjustments are implemented throughout the BS&A transition. FISCAL IMPACT: Claim # Amount Description ACH/Chks $ 190,182.54 Payroll 02/19/2026 ACH/Chks $ 333,553.30 Accounts Payable TOTAL $ 523,735.84 RECOMMENDATION: If removed from the consent agenda, the recommended motion is as follows: “Motion to approve the aforementioned disbursements in the amount of $ 523,735.84 ATTACHMENTS: 1. Invoice Distribution Report INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Alex Air Apparatus 2 LLC Fund: 407 FIRE EQUIPMENT & PROJECT Department: 2220 Fire 407-2220-42400 SCBA MASK / PPE Alex Air Apparatus 2 LLC SCBA MASK / PPE 3,142.00 None Total Department 2220 Fire 3,142.00 Total Fund 407 FIRE EQUIPMENT & PROJECT 3,142.00 Total Vendor Alex Air Apparatus 2 LLC:3,142.00 Vendor: Amazon Capital Services Fund: 101 GENERAL FUND Department: 2400 Building Inspection 101-2400-42000 WIRELESS MOUSE AND KEYBOAR Amazon Capital Services KEYBOARD & MOUSE FOR PLAN REVIEW 31.98 None Total Department 2400 Building Inspection 31.98 Department: 3100 Public Works 101-3100-42000 PW OFFICE SUPPLIES Amazon Capital Services PW OFFICE SUPPLIES 70.92 None Total Department 3100 Public Works 70.92 Total Fund 101 GENERAL FUND 102.90 Total Vendor Amazon Capital Services:102.90 Vendor: ANCOM Communications Fund: 410 VEHICLE REPLACEMENT Department: 2220 Fire 410-2220-45500-8144 TENDER 2 REPLACEMENT EQUIP ANCOM Communications TENDER 2 REPLACEMENT EQUIP - RADIO CH 185.56 None Total Department 2220 Fire 185.56 Total Fund 410 VEHICLE REPLACEMENT 185.56 Total Vendor ANCOM Communications:185.56 Vendor: Aspen Mills Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-44170 NAME TAGS - JB Aspen Mills NAME TAGS - JB 34.85 None 101-2220-44170 JACKET PATCHES Aspen Mills JACKET PATCHES 230.00 None 101-2220-44170 UNIFORM NAME TAGS - MM Aspen Mills UNIFORM NAME TAGS - MM 61.70 None Total Department 2220 Fire 326.55 Total Fund 101 GENERAL FUND 326.55 Total Vendor Aspen Mills:326.55 Vendor: Bound Tree Medical LLC Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-42080 EMS Supplies Bound Tree Medical LLC EMS SUPPLIES 327.58 None Total Department 2220 Fire 327.58 Total Fund 101 GENERAL FUND 327.58 Total Vendor Bound Tree Medical LLC:327.58 Vendor: Braun Intertec Corporation Fund: 601 WATER Department: 8126 SOUTH AREA PROD WELLS/TREATMT 02/26/2026 08:48 AM Page:1/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Braun Intertec Corporation Fund: 601 WATER Department: 8126 SOUTH AREA PROD WELLS/TREATMT 601-8126-43150-8126 SOUTH PFAS WTP/WELLS 24X.1 Braun Intertec Corporation SOUTH PFAS WTP/WELLS 24X.137233 4,834.50 None Total Department 8126 SOUTH AREA PROD WELLS/TREATMT 4,834.50 Total Fund 601 WATER 4,834.50 Total Vendor Braun Intertec Corporation:4,834.50 Vendor: Cintas Corp Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-42150 RUGS/SOAP/RAGS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 217.91 None 101-3100-42150 RUGS/SOAP/RAGS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 59.22 None 101-3100-44170 PW - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 97.23 None 101-3100-44170 PW - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 106.68 None Total Department 3100 Public Works 481.04 Department: 5200 Parks & Recreation 101-5200-44170 PARK & REC - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 22.43 None 101-5200-44170 PARK & REC - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 24.61 None Total Department 5200 Parks & Recreation 47.04 Total Fund 101 GENERAL FUND 528.08 Fund: 601 WATER Department: 9400 Water 601-9400-44170 WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 17.95 None 601-9400-44170 WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 19.70 None Total Department 9400 Water 37.65 Total Fund 601 WATER 37.65 Fund: 602 SEWER Department: 9450 602-9450-44170 SEWER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 7.47 None 602-9450-44170 SEWER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 8.21 None Total Department 9450 15.68 Total Fund 602 SEWER 15.68 Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-44170 SUFACE WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 4.51 None 603-9500-44170 SUFACE WATER - UNIFORMS Cintas Corp CLEANING, MAINT & SUPPLIES - PW 4.93 None Total Department 9500 Surface Water 9.44 Total Fund 603 STORMWATER 9.44 Total Vendor Cintas Corp:590.85 Vendor: City of Bloomington - Civic Plaza Fund: 601 WATER Department: 9400 Water 601-9400-43150 LAB BACT TESTING City of Bloomington - Civi WATER SAMPLE TESTING 140.00 None Total Department 9400 Water 140.00 02/26/2026 08:48 AM Page:2/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: City of Bloomington - Civic Plaza Fund: 601 WATER Total Fund 601 WATER 140.00 Total Vendor City of Bloomington - Civic Plaza:140.00 Vendor: CITY OF LAKE ELMO Fund: 209 TREE FUND Department: 0000 General 209-0000-36230 TESTING WEB PAYMENTS FOR T CITY OF LAKE ELMO TEST WEB PAYMENTS 1.53 None Total Department 0000 General 1.53 Total Fund 209 TREE FUND 1.53 Total Vendor CITY OF LAKE ELMO:1.53 Vendor: Crysteel Truck Equipment Inc Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-44040 EA TORSION SPRING KIT- LIF Crysteel Truck Equipment I EA TORSION SPRING KIT 159.21 None Total Department 3100 Public Works 159.21 Total Fund 101 GENERAL FUND 159.21 Total Vendor Crysteel Truck Equipment Inc:159.21 Vendor: DVS Renewal Fund: 101 GENERAL FUND Department: 2400 Building Inspection 101-2400-44300 DVS Renewal PW & BLDG INSP TABS 85.00 None Total Department 2400 Building Inspection 85.00 Department: 3100 Public Works 101-3100-44300 DVS Renewal PW & BLDG INSP TABS 394.84 None Total Department 3100 Public Works 394.84 Department: 5200 Parks & Recreation 101-5200-44300 DVS Renewal PW & BLDG INSP TABS 21.25 None Total Department 5200 Parks & Recreation 21.25 Total Fund 101 GENERAL FUND 501.09 Fund: 601 WATER Department: 9400 Water 601-9400-44300 DVS Renewal PW & BLDG INSP TABS 63.75 None Total Department 9400 Water 63.75 Total Fund 601 WATER 63.75 Fund: 602 SEWER Department: 9450 602-9450-44300 DVS Renewal PW & BLDG INSP TABS 21.25 None Total Department 9450 21.25 Total Fund 602 SEWER 21.25 Total Vendor DVS Renewal:586.09 Vendor: Ferguson Waterworks #2518 02/26/2026 08:48 AM Page:3/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Ferguson Waterworks #2518 Fund: 601 WATER Department: 9400 Water 601-9400-42300 WATER METER SUPPLIES Ferguson Waterworks #2518 WATER METER SUPPLIES 5,940.00 None 601-9400-44370 FERGUSON ACADEMY TRN - $50 Ferguson Waterworks #2518 FERGUSON ACADEMY TRN 450.00 None Total Department 9400 Water 6,390.00 Total Fund 601 WATER 6,390.00 Total Vendor Ferguson Waterworks #2518:6,390.00 Vendor: FIRE LINE EQUIPMENT Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-44040 E1 MARKER LIGHT REPLACEMEN FIRE LINE EQUIPMENT E1 MARKER LIGHT REPLACEMENT 77.18 None Total Department 2220 Fire 77.18 Total Fund 101 GENERAL FUND 77.18 Total Vendor FIRE LINE EQUIPMENT:77.18 Vendor: First Arriving IO, Inc Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-43190 ANNUAL SUBSCRIPTION - STAT First Arriving IO, Inc ANNUAL SUBSCRIPTION - STATION DASHBOA 1,505.78 None Total Department 2220 Fire 1,505.78 Total Fund 101 GENERAL FUND 1,505.78 Total Vendor First Arriving IO, Inc:1,505.78 Vendor: FP Mailing Solutions Fund: 101 GENERAL FUND Department: 1320 Administration 101-1320-43220 POSTAGE METER MAINT 02.10.FP Mailing Solutions POSTAGE METER MAINT 02.10.26 TO 02.09 815.52 None Total Department 1320 Administration 815.52 Total Fund 101 GENERAL FUND 815.52 Total Vendor FP Mailing Solutions:815.52 Vendor: GreatAmerica Financial Services Fund: 101 GENERAL FUND Department: 1320 Administration 101-1320-44040 Monthly Copier-Adm-020-184 GreatAmerica Financial Ser MONTHLY COPIER EXPENSE 262.43 None Total Department 1320 Administration 262.43 Department: 1520 Finance 101-1520-44040 Monthly Copier-Fina-020-18 GreatAmerica Financial Ser MONTHLY COPIER EXPENSE 262.44 None Total Department 1520 Finance 262.44 Department: 1910 Planning & Zoning 101-1910-44040 Monthly Copier-Plng-020-18 GreatAmerica Financial Ser MONTHLY COPIER EXPENSE 267.44 None Total Department 1910 Planning & Zoning 267.44 Department: 2400 Building Inspection 101-2400-44040 Monthly Copier-Bldg-020-18 GreatAmerica Financial Ser MONTHLY COPIER EXPENSE 267.44 None Total Department 2400 Building Inspection 267.44 02/26/2026 08:48 AM Page:4/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: GreatAmerica Financial Services Fund: 101 GENERAL FUND Total Fund 101 GENERAL FUND 1,059.75 Total Vendor GreatAmerica Financial Services:1,059.75 Vendor: H & L Mesabi Company Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-42212 SNOWPLOW BLADES MAINT H & L Mesabi Company SNOWPLOW BLADES MAINT 2,526.00 None Total Department 3100 Public Works 2,526.00 Total Fund 101 GENERAL FUND 2,526.00 Total Vendor H & L Mesabi Company:2,526.00 Vendor: Hawkins Inc Fund: 601 WATER Department: 9400 Water 601-9400-42160 WELL CHEMICALS Hawkins Inc WELL CHEMICALS 140.00 None Total Department 9400 Water 140.00 Total Fund 601 WATER 140.00 Total Vendor Hawkins Inc:140.00 Vendor: HIVIZLED Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-44040 E1 WARNING LIGHT REPLACEME HIVIZLED E1 WARNING LIGHT REPLACEMENT 183.16 None Total Department 2220 Fire 183.16 Total Fund 101 GENERAL FUND 183.16 Total Vendor HIVIZLED:183.16 Vendor: Hoisington Koegler Group Inc Fund: 101 GENERAL FUND Department: 1910 Planning & Zoning 101-1910-43150 GENERAL Hoisington Koegler Group I LANDSCAPE ARCH 1,443.75 None 101-1910-43150 TREE FUND Hoisington Koegler Group I LANDSCAPE ARCH 1,765.00 None Total Department 1910 Planning & Zoning 3,208.75 Total Fund 101 GENERAL FUND 3,208.75 Fund: 803 ESCROW FUND Department: 9001 E001 - 39TH ST-PRAIRIE SKY 803-9001-43150 PRAIRIE SKY Hoisington Koegler Group I LANDSCAPE ARCH 77.50 None Total Department 9001 E001 - 39TH ST-PRAIRIE SKY 77.50 Department: 9040 E040 - PRIMROSE DAYCARE 803-9040-43150 PRIMROSE Hoisington Koegler Group I LANDSCAPE ARCH 210.00 None Total Department 9040 E040 - PRIMROSE DAYCARE 210.00 Department: 9061 E061 803-9061-43150 NS 3 Hoisington Koegler Group I LANDSCAPE ARCH 77.50 None Total Department 9061 E061 77.50 02/26/2026 08:48 AM Page:5/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Hoisington Koegler Group Inc Fund: 803 ESCROW FUND Total Fund 803 ESCROW FUND 365.00 Total Vendor Hoisington Koegler Group Inc:3,573.75 Vendor: INDIGITAL INC Fund: 101 GENERAL FUND Department: 1910 Planning & Zoning 101-1910-43150 BUILDING/PLANNING SCANNING INDIGITAL INC BUILDING/PLANNING SCANNING 3,961.01 None 101-1910-43150 SCANNING PLANNING FILES TO INDIGITAL INC BUILDING/PLANNING SCANNING 7,418.01 None Total Department 1910 Planning & Zoning 11,379.02 Total Fund 101 GENERAL FUND 11,379.02 Total Vendor INDIGITAL INC:11,379.02 Vendor: Innovative Office Solutions LLC Fund: 101 GENERAL FUND Department: 1320 Administration 101-1320-42000 CC NAME PLATE-DOYLE Innovative Office Solution STAFF CC NAME PLATES 32.15 None Total Department 1320 Administration 32.15 Department: 1910 Planning & Zoning 101-1910-42000 CC NAME & TITLE PLATE- MOU Innovative Office Solution STAFF CC NAME PLATES 64.33 None Total Department 1910 Planning & Zoning 64.33 Department: 3100 Public Works 101-3100-42000 CC NAME PLATE-THOLEN Innovative Office Solution STAFF CC NAME PLATES 32.15 None Total Department 3100 Public Works 32.15 Total Fund 101 GENERAL FUND 128.63 Total Vendor Innovative Office Solutions LLC:128.63 Vendor: Kamco Stump & Tree Removal Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-43150 TREE REMOVAL - 55TH AND ST Kamco Stump & Tree Removal TREE REMOVAL - 55TH AND STILLWATER BL 350.00 None Total Department 9500 Surface Water 350.00 Total Fund 603 STORMWATER 350.00 Total Vendor Kamco Stump & Tree Removal:350.00 Vendor: Kath Fuel Oil Service Co Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-42120 FIRE - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 546.31 None Total Department 2220 Fire 546.31 Department: 2400 Building Inspection 101-2400-42120 BUILDING - UNLEADED FUEL Kath Fuel Oil Service Co Unleaded Fuel 93.76 None Total Department 2400 Building Inspection 93.76 Department: 3100 Public Works 101-3100-42120 STREET - ON ROAD Kath Fuel Oil Service Co ON ROAD 321.50 None 101-3100-42120 STREET - UNLEADED FUEL Kath Fuel Oil Service Co Unleaded Fuel 337.36 None 101-3100-42120 STREET - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 62.08 None 02/26/2026 08:48 AM Page:6/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Kath Fuel Oil Service Co Fund: 101 GENERAL FUND Department: 3100 Public Works Total Department 3100 Public Works 720.94 Department: 5200 Parks & Recreation 101-5200-42120 PARKS- ON ROAD Kath Fuel Oil Service Co ON ROAD 160.75 None 101-5200-42120 PARKS - UNLEADED FUEL Kath Fuel Oil Service Co Unleaded Fuel 126.51 None 101-5200-42120 PARKS - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 23.28 None Total Department 5200 Parks & Recreation 310.54 Total Fund 101 GENERAL FUND 1,671.55 Fund: 601 WATER Department: 9400 Water 601-9400-42120 WATER - ON ROAD Kath Fuel Oil Service Co ON ROAD 120.56 None 601-9400-42120 WATER - UNLEADED FUEL Kath Fuel Oil Service Co Unleaded Fuel 168.68 None 601-9400-42120 WATER - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 31.04 None Total Department 9400 Water 320.28 Total Fund 601 WATER 320.28 Fund: 602 SEWER Department: 9450 602-9450-42120 SEWER - ON ROAD Kath Fuel Oil Service Co ON ROAD 120.56 None 602-9450-42120 SEWER - UNLEADED FUEL Kath Fuel Oil Service Co Unleaded Fuel 168.68 None 602-9450-42120 SEWER - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 31.04 None Total Department 9450 320.28 Total Fund 602 SEWER 320.28 Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-42120 STORMWATER - ON ROAD Kath Fuel Oil Service Co ON ROAD 80.39 None 603-9500-42120 STORMWATER - UNLEADED FUEL Kath Fuel Oil Service Co Unleaded Fuel 42.16 None 603-9500-42120 STORMWATER - OFF ROAD Kath Fuel Oil Service Co OFF ROAD 7.78 None Total Department 9500 Surface Water 130.33 Total Fund 603 STORMWATER 130.33 Total Vendor Kath Fuel Oil Service Co:2,442.44 Vendor: Kennedy & Graven Chartered Fund: 101 GENERAL FUND Department: 1320 Administration 101-1320-43040 GENERAL MATTERS Kennedy & Graven Chartered General Matters 3,178.65 None 101-1320-43040 PERSONNEL MATTERS Kennedy & Graven Chartered General Matters 1,346.80 None Total Department 1320 Administration 4,525.45 Department: 8142 SALE OF OLD FIRE HALL 101-8142-43040-8142 FIRE STATION & PARKS BUILD Kennedy & Graven Chartered General Matters 2,278.50 None Total Department 8142 SALE OF OLD FIRE HALL 2,278.50 Total Fund 101 GENERAL FUND 6,803.95 Fund: 437 CITY HALL/FIRE STATN BLDG PROJ Department: 8108 City Hall/Fire Station Buildin 437-8108-43040-8108 CITY HALL/FIRE STATION BUI Kennedy & Graven Chartered General Matters 436.80 None 02/26/2026 08:48 AM Page:7/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Kennedy & Graven Chartered Fund: 437 CITY HALL/FIRE STATN BLDG PROJ Department: 8108 City Hall/Fire Station Buildin Total Department 8108 City Hall/Fire Station Buildin 436.80 Total Fund 437 CITY HALL/FIRE STATN BLDG PROJ 436.80 Fund: 601 WATER Department: 9400 Water 601-9400-43040 AMENDMENT TO DNR WATER APP Kennedy & Graven Chartered General Matters 352.00 None Total Department 9400 Water 352.00 Total Fund 601 WATER 352.00 Fund: 803 ESCROW FUND Department: 9061 E061 803-9061-43040 SCHILTGEN / NORTHSTAR 3RD Kennedy & Graven Chartered General Matters 214.65 None Total Department 9061 E061 214.65 Total Fund 803 ESCROW FUND 214.65 Total Vendor Kennedy & Graven Chartered:7,807.40 Vendor: Kodiak Power Solutions Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-43150 PW - GENERATOR INSPECTIONS Kodiak Power Solutions Generator Inspections 245.00 None Total Department 3100 Public Works 245.00 Total Fund 101 GENERAL FUND 245.00 Fund: 601 WATER Department: 9400 Water 601-9400-43150 WATER - GENERATOR INSPECTI Kodiak Power Solutions Generator Inspections 1,437.26 None 601-9400-44030 32ND STREET LIFT STATION -Kodiak Power Solutions 32ND STREET LIFT STATION - MAINTENENC 211.80 None Total Department 9400 Water 1,649.06 Total Fund 601 WATER 1,649.06 Fund: 602 SEWER Department: 9450 602-9450-43150 SEWER - GENERATOR INSPECTI Kodiak Power Solutions Generator Inspections 2,155.89 None Total Department 9450 2,155.89 Total Fund 602 SEWER 2,155.89 Fund: 703 CITY CENTER OPERATIONS (ISF) Department: 0000 General 703-0000-44040 CITY HALL - GENERATOR INSP Kodiak Power Solutions Generator Inspections 320.14 None Total Department 0000 General 320.14 Total Fund 703 CITY CENTER OPERATIONS (ISF)320.14 Total Vendor Kodiak Power Solutions:4,370.09 Vendor: KorTerra Inc Fund: 601 WATER Department: 9400 Water 601-9400-43190 LOCATE MGMT SOFTWARE - 2/6 KorTerra Inc LOCATE MGMT SOFTWARE - 2/6/26 - 2/5/2 1,566.68 None 02/26/2026 08:48 AM Page:8/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: KorTerra Inc Fund: 601 WATER Department: 9400 Water Total Department 9400 Water 1,566.68 Total Fund 601 WATER 1,566.68 Fund: 602 SEWER Department: 9450 602-9450-43190 LOCATE MGMT SOFTWARE - 2/6 KorTerra Inc LOCATE MGMT SOFTWARE - 2/6/26 - 2/5/2 1,566.66 None Total Department 9450 1,566.66 Total Fund 602 SEWER 1,566.66 Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-43190 LOCATE MGMT SOFTWARE - 2/6 KorTerra Inc LOCATE MGMT SOFTWARE - 2/6/26 - 2/5/2 1,566.66 None Total Department 9500 Surface Water 1,566.66 Total Fund 603 STORMWATER 1,566.66 Total Vendor KorTerra Inc:4,700.00 Vendor: Lake Elmo Bank Fund: 328 Department: 6301 328-6301-46010 EQUIPMENT CERTIFICATE 2018 Lake Elmo Bank EQUIPMENT CERTIFICATE 2018 114,590.00 None 328-6301-46110 EQUIPMENT CERTIFICATE 2018 Lake Elmo Bank EQUIPMENT CERTIFICATE 2018 4,590.00 None Total Department 6301 119,180.00 Total Fund 328 119,180.00 Total Vendor Lake Elmo Bank:119,180.00 Vendor: League of MN Cities Insur Trust Fund: 704 INSURANCE FUND (ISF) Department: 7102 704-7102-41510 WORKERS' COMP COVERAGE League of MN Cities Insur WORKERS' COMP COVERAGE 101,382.00 None Total Department 7102 101,382.00 Total Fund 704 INSURANCE FUND (ISF)101,382.00 Total Vendor League of MN Cities Insur Trust:101,382.00 Vendor: Maroney's Sanitation Inc Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-43840 Public Works - Sanitation Maroney's Sanitation Inc TRASH SERVICE - MONTHY 44.78 None Total Department 3100 Public Works 44.78 Department: 5200 Parks & Recreation 101-5200-43840 Public Works - Sanitation Maroney's Sanitation Inc TRASH SERVICE - MONTHY 313.42 None Total Department 5200 Parks & Recreation 313.42 Total Fund 101 GENERAL FUND 358.20 Fund: 601 WATER Department: 9400 Water 601-9400-43840 Public Works - Sanitation Maroney's Sanitation Inc TRASH SERVICE - MONTHY 44.78 None 02/26/2026 08:48 AM Page:9/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Maroney's Sanitation Inc Fund: 601 WATER Department: 9400 Water Total Department 9400 Water 44.78 Total Fund 601 WATER 44.78 Fund: 602 SEWER Department: 9450 602-9450-43840 Public Works - Sanitation Maroney's Sanitation Inc TRASH SERVICE - MONTHY 44.78 None Total Department 9450 44.78 Total Fund 602 SEWER 44.78 Fund: 703 CITY CENTER OPERATIONS (ISF) Department: 0000 General 703-0000-43840 City Center - Sanitation Maroney's Sanitation Inc TRASH SERVICE - MONTHY 352.44 None Total Department 0000 General 352.44 Total Fund 703 CITY CENTER OPERATIONS (ISF)352.44 Total Vendor Maroney's Sanitation Inc:800.20 Vendor: Menards - Oakdale Fund: 101 GENERAL FUND Department: 2400 Building Inspection 101-2400-42120 REPAIRS/MAINTENANCE/SUPPLI Menards - Oakdale REPAIRS/MAINTENANCE/SUPPLIES 88.93 None 101-2400-42120 WIPER BLADES FOR BLDG DEPT Menards - Oakdale WIPER BLADES FOR BLDG DEPT CARS- BOOT 88.93 None 101-2400-42120 REAR WIPER BLADES FOR MITS Menards - Oakdale REAR WIPER BLADES FOR MITSUBISHIS 21.98 None 101-2400-44040 REPAIRS/MAINTENANCE/SUPPLI Menards - Oakdale REPAIRS/MAINTENANCE/SUPPLIES 6.73 None 101-2400-44040 WIPER BLADES FOR BLDG DEPT Menards - Oakdale WIPER BLADES FOR BLDG DEPT CARS- BOOT 6.73 None Total Department 2400 Building Inspection 213.30 Department: 3100 Public Works 101-3100-42210 BOLTS AND WASHERS Menards - Oakdale BOLTS AND WASHERS 16.26 None Total Department 3100 Public Works 16.26 Total Fund 101 GENERAL FUND 229.56 Fund: 602 SEWER Department: 9450 602-9450-42210 SUPPLIES - COVER Menards - Oakdale SUPPLIES 64.92 None 602-9450-42210 SUPPLIES - COVER Menards - Oakdale SUPPLIES (20.16)None Total Department 9450 44.76 Total Fund 602 SEWER 44.76 Total Vendor Menards - Oakdale:274.32 Vendor: MIDWEST MACHINERY CO Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-42212 REPAIRS 2024 JOHN DEERE 51 MIDWEST MACHINERY CO REPAIRS 2024 JOHN DEERE 5130M SNOW PL 3,372.83 None Total Department 3100 Public Works 3,372.83 Total Fund 101 GENERAL FUND 3,372.83 Total Vendor MIDWEST MACHINERY CO:3,372.83 02/26/2026 08:48 AM Page:10/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Minnesota State Fire Dept Assoc Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-44330 2026 MEMBERSHIP DUES Minnesota State Fire Dept 2026 MEMBERSHIP DUES 290.00 None Total Department 2220 Fire 290.00 Total Fund 101 GENERAL FUND 290.00 Total Vendor Minnesota State Fire Dept Assoc:290.00 Vendor: MN CLN Services Inc Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 343.72 None 101-3100-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 343.72 None Total Department 3100 Public Works 687.44 Department: 5200 Parks & Recreation 101-5200-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 66.56 None 101-5200-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 66.56 None Total Department 5200 Parks & Recreation 133.12 Total Fund 101 GENERAL FUND 820.56 Fund: 601 WATER Department: 9400 Water 601-9400-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 60.84 None 601-9400-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 60.84 None Total Department 9400 Water 121.68 Total Fund 601 WATER 121.68 Fund: 602 SEWER Department: 9450 602-9450-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 34.84 None 602-9450-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 34.84 None Total Department 9450 69.68 Total Fund 602 SEWER 69.68 Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 14.04 None 603-9500-43150 PW OFFICE CLEANING MN CLN Services Inc PW OFFICE CLEANING 14.04 None Total Department 9500 Surface Water 28.08 Total Fund 603 STORMWATER 28.08 Total Vendor MN CLN Services Inc:1,040.00 Vendor: MN Department of Health Fund: 601 WATER Department: 9400 Water 601-9400-43820 COMMUNITY WATER SUPPLY CON MN Department of Health WATER SUPPLY 13,469.00 None Total Department 9400 Water 13,469.00 Total Fund 601 WATER 13,469.00 02/26/2026 08:48 AM Page:11/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: MN Department of Health Total Vendor MN Department of Health:13,469.00 Vendor: MN Dept of Public Safety Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-44330 EPCRA PROGRAM - THOLEN MN Dept of Public Safety EPCRA PROGRAM - THOLEN 25.54 None Total Department 3100 Public Works 25.54 Total Fund 101 GENERAL FUND 25.54 Total Vendor MN Dept of Public Safety:25.54 Vendor: MUTUAL OF OMAHA Fund: 101 GENERAL FUND Department: 0000 General 101-0000-21707 DENTAL INSURANCE PREM - MA MUTUAL OF OMAHA G000CVSQ BILL GROUP 0001 & MNPL 801A 2,660.78 None 101-0000-21708 STD/LTD INSURANCE PREM - M MUTUAL OF OMAHA G000CVSQ BILL GROUP 0001 & MNPL 801A 918.75 None 101-0000-21708 LIFE/AD&D INSUR PREM - MAR MUTUAL OF OMAHA G000CVSQ BILL GROUP 0001 & MNPL 801A 1,199.90 None 101-0000-21718 VISION INSURANCE PREM - MA MUTUAL OF OMAHA G000CVSQ BILL GROUP 0001 & MNPL 801A 108.70 None Total Department 0000 General 4,888.13 Total Fund 101 GENERAL FUND 4,888.13 Total Vendor MUTUAL OF OMAHA:4,888.13 Vendor: Paya - (Nuvei Company) Fund: 601 WATER Department: 9400 Water 601-9400-44377 UB CC FEES Paya - (Nuvei Company)UB CC FEES 10.00 None 601-9400-44377 CREDIT CARD FEES Paya - (Nuvei Company)PAYA - MONTHLY CC FEES 2.00 None Total Department 9400 Water 12.00 Total Fund 601 WATER 12.00 Fund: 602 SEWER Department: 9450 602-9450-44377 UB CC FEES Paya - (Nuvei Company)UB CC FEES 10.00 None 602-9450-44377 CREDIT CARD FEES Paya - (Nuvei Company)PAYA - MONTHLY CC FEES 2.00 None Total Department 9450 12.00 Total Fund 602 SEWER 12.00 Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-44377 UB CC FEES Paya - (Nuvei Company)UB CC FEES 9.53 None 603-9500-44377 CREDIT CARD FEES Paya - (Nuvei Company)PAYA - MONTHLY CC FEES 1.50 None Total Department 9500 Surface Water 11.03 Total Fund 603 STORMWATER 11.03 Total Vendor Paya - (Nuvei Company):35.03 Vendor: Plunkett's Pest Control Inc Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-43150 Plunkett's Pest Control In PEST CONTROL 30.33 None Total Department 3100 Public Works 30.33 02/26/2026 08:48 AM Page:12/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Plunkett's Pest Control Inc Fund: 101 GENERAL FUND Department: 5200 Parks & Recreation 101-5200-43150 Plunkett's Pest Control In PEST CONTROL 30.33 None Total Department 5200 Parks & Recreation 30.33 Total Fund 101 GENERAL FUND 60.66 Fund: 601 WATER Department: 9400 Water 601-9400-43150 Plunkett's Pest Control In PEST CONTROL 30.33 None Total Department 9400 Water 30.33 Total Fund 601 WATER 30.33 Fund: 602 SEWER Department: 9450 602-9450-43150 Plunkett's Pest Control In PEST CONTROL 30.33 None Total Department 9450 30.33 Total Fund 602 SEWER 30.33 Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-43150 Plunkett's Pest Control In PEST CONTROL 30.33 None Total Department 9500 Surface Water 30.33 Total Fund 603 STORMWATER 30.33 Fund: 703 CITY CENTER OPERATIONS (ISF) Department: 0000 General 703-0000-44010 PEST CONTROL - CITY CENTER Plunkett's Pest Control In PEST CONTROL - CITY CENTER 333.18 None Total Department 0000 General 333.18 Total Fund 703 CITY CENTER OPERATIONS (ISF)333.18 Total Vendor Plunkett's Pest Control Inc:484.83 Vendor: PreCise MRM LLC Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-43190 PRECISE FLEET MGMT SOFTWAR PreCise MRM LLC PRECISE FLEET MGMT SOFTWARE 220.00 None Total Department 3100 Public Works 220.00 Total Fund 101 GENERAL FUND 220.00 Total Vendor PreCise MRM LLC:220.00 Vendor: RAM SWANA Fund: 101 GENERAL FUND Department: 1910 Planning & Zoning 101-1910-44370 ASHLEY RECYLCING CONFERENC RAM SWANA RAM SWANA CONFERENCE - RECYCLING GRAN 500.00 None Total Department 1910 Planning & Zoning 500.00 Total Fund 101 GENERAL FUND 500.00 Total Vendor RAM SWANA:500.00 Vendor: Regions Hospital 02/26/2026 08:48 AM Page:13/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Regions Hospital Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-44370 EMS EDUCATION AGREEMENT - Regions Hospital EMS EDUCATION AGREEMENT - 2026 1,575.00 None Total Department 2220 Fire 1,575.00 Total Fund 101 GENERAL FUND 1,575.00 Total Vendor Regions Hospital:1,575.00 Vendor: Savvik Buying Group Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-42080 EMS PPE GLOVES Savvik Buying Group EMS PPE GLOVES 123.80 None Total Department 2220 Fire 123.80 Total Fund 101 GENERAL FUND 123.80 Total Vendor Savvik Buying Group:123.80 Vendor: Schwickert's Tecta America Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-44010 PW BATHROOM FAN DIAGNOSE Schwickert's Tecta America PW BATHROOM FAN DIAGNOSE 120.00 None Total Department 3100 Public Works 120.00 Total Fund 101 GENERAL FUND 120.00 Total Vendor Schwickert's Tecta America:120.00 Vendor: Short Elliott Hendrickson, Inc Fund: 611 WATER - CAPITAL Department: 8143 NORTH WTP SITE EVALUATION STUDY 611-8143-43030-8143 NORTH WTP SITE EVAL - 24X.Short Elliott Hendrickson,NORTH WTP SITE EVAL - 24X.137234.000 3,288.32 None Total Department 8143 NORTH WTP SITE EVALUATION STUDY 3,288.32 Total Fund 611 WATER - CAPITAL 3,288.32 Total Vendor Short Elliott Hendrickson, Inc:3,288.32 Vendor: Shred Right Fund: 101 GENERAL FUND Department: 1320 Administration 101-1320-43150 Monthly Shredding Services Shred Right SHREDDING SERVICES 54.45 None Total Department 1320 Administration 54.45 Total Fund 101 GENERAL FUND 54.45 Total Vendor Shred Right:54.45 Vendor: Telemetry and Process Controls Inc Fund: 601 WATER Department: 9400 Water 601-9400-43190 SCADA WONDERWARE Telemetry and Process Cont SCADA WONDERWARE 212.01 None Total Department 9400 Water 212.01 Total Fund 601 WATER 212.01 Fund: 602 SEWER 02/26/2026 08:48 AM Page:14/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Telemetry and Process Controls Inc Fund: 602 SEWER Department: 9450 602-9450-43190 SCADA WONDERWARE Telemetry and Process Cont SCADA WONDERWARE 212.02 None 602-9450-44030 LISBON LS HEATER REPLACEME Telemetry and Process Cont LISBON LS HEATER REPLACEMENT 1,937.00 None Total Department 9450 2,149.02 Total Fund 602 SEWER 2,149.02 Total Vendor Telemetry and Process Controls Inc:2,361.03 Vendor: THE FIRE GROUP INC Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-43150 PW - FIRE EXTINGUISHER MAI THE FIRE GROUP INC FIRE EXTINGUISHER MAINTENANCE 722.40 None Total Department 3100 Public Works 722.40 Department: 5200 Parks & Recreation 101-5200-43150 PARKS - FIRE EXTINGUISHER THE FIRE GROUP INC FIRE EXTINGUISHER MAINTENANCE 361.20 None Total Department 5200 Parks & Recreation 361.20 Total Fund 101 GENERAL FUND 1,083.60 Fund: 601 WATER Department: 9401 601-9401-43150 WATER - FIRE EXTINGUISHER THE FIRE GROUP INC FIRE EXTINGUISHER MAINTENANCE 451.50 None Total Department 9401 451.50 Total Fund 601 WATER 451.50 Fund: 602 SEWER Department: 9450 602-9450-43150 SEWER - FIRE EXTINGUISHER THE FIRE GROUP INC FIRE EXTINGUISHER MAINTENANCE 270.90 None Total Department 9450 270.90 Total Fund 602 SEWER 270.90 Total Vendor THE FIRE GROUP INC:1,806.00 Vendor: THE FIRE GROUP, INC. Fund: 101 GENERAL FUND Department: 2220 Fire 101-2220-44040 ANNUAL FIRE EXTINGUISHER S THE FIRE GROUP, INC.ANNUAL FIRE EXTINGUISHER SERVICE / IN 255.00 None Total Department 2220 Fire 255.00 Total Fund 101 GENERAL FUND 255.00 Total Vendor THE FIRE GROUP, INC.:255.00 Vendor: Total Tool Supply Inc Fund: 410 VEHICLE REPLACEMENT Department: 2220 Fire 410-2220-45500-8144 T2 REPLACMENT - EQUIPMENT Total Tool Supply Inc T2 REPLACMENT - EQUIPMENT 73.44 None Total Department 2220 Fire 73.44 Total Fund 410 VEHICLE REPLACEMENT 73.44 Total Vendor Total Tool Supply Inc:73.44 02/26/2026 08:48 AM Page:15/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Tri State Bobcat Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-44040 WOOD CHIPPER JACK STAND Tri State Bobcat TRAILER JACK 195.90 None Total Department 9500 Surface Water 195.90 Total Fund 603 STORMWATER 195.90 Total Vendor Tri State Bobcat:195.90 Vendor: Verizon Fund: 101 GENERAL FUND Department: 1320 Administration 101-1320-43210 WIRELESS CHARGES 84206596 Verizon VERIZON - JANUARY 76.82 None 101-1320-43210 WIRELESS CHARGES 84206596 Verizon VERIZON - FEBRUARY 76.82 None Total Department 1320 Administration 153.64 Department: 1910 Planning & Zoning 101-1910-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - JANUARY 38.41 None 101-1910-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - FEBRUARY 38.41 None Total Department 1910 Planning & Zoning 76.82 Department: 2400 Building Inspection 101-2400-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - JANUARY 156.84 None 101-2400-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - FEBRUARY 156.84 None Total Department 2400 Building Inspection 313.68 Department: 3100 Public Works 101-3100-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - JANUARY 153.64 None 101-3100-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - FEBRUARY 153.64 None Total Department 3100 Public Works 307.28 Department: 5200 Parks & Recreation 101-5200-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - JANUARY 115.23 None 101-5200-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - FEBRUARY 115.23 None Total Department 5200 Parks & Recreation 230.46 Total Fund 101 GENERAL FUND 1,081.88 Fund: 601 WATER Department: 9400 Water 601-9400-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - JANUARY 243.70 None 601-9400-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - FEBRUARY 243.70 None Total Department 9400 Water 487.40 Total Fund 601 WATER 487.40 Fund: 602 SEWER Department: 9450 602-9450-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - JANUARY 121.90 None 602-9450-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - FEBRUARY 121.90 None Total Department 9450 243.80 Total Fund 602 SEWER 243.80 Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - JANUARY 40.01 None 02/26/2026 08:48 AM Page:16/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Verizon Fund: 603 STORMWATER Department: 9500 Surface Water 603-9500-43210 WIRELESS CHARGES 842065966 Verizon VERIZON - FEBRUARY 40.01 None Total Department 9500 Surface Water 80.02 Total Fund 603 STORMWATER 80.02 Total Vendor Verizon:1,893.10 Vendor: Washington County - WACO Public Works Dept Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-43811 OCT-DEC 2025 TRAFFIC SIGNA Washington County - WACO P OCT-DEC 2025 TRAFFIC SIGNAL 111.34 None Total Department 3100 Public Works 111.34 Total Fund 101 GENERAL FUND 111.34 Total Vendor Washington County - WACO Public Works Dept:111.34 Vendor: Washington County Prop Records/Taxpayer Svcs Fund: 101 GENERAL FUND Department: 1520 Finance 101-1520-43010 PROP TAX REPORTS FOR AUDIT Washington County Prop Rec PROP TAX REPORTS FOR AUDIT 400.00 None 101-1520-44300 25.029.21.21.0006 Washington County Prop Rec PROPERTY TAXES 25.92 None 101-1520-44300 25.029.21.22.0033 Washington County Prop Rec PROPERTY TAXES 25.92 None 101-1520-44300 25.029.21.22.0034 Washington County Prop Rec PROPERTY TAXES 25.92 None 101-1520-44300 25.029.21.22.0031 Washington County Prop Rec PROPERTY TAXES 25.92 None 101-1520-44300 13.029.21.21.0019 Washington County Prop Rec PROPERTY TAXES 15.12 None 101-1520-44300 12.029.21.42.0007 Washington County Prop Rec PROPERTY TAXES 920.40 None 101-1520-44300 12.029.21.13.0003 Washington County Prop Rec PROPERTY TAXES 1,349.92 None 101-1520-44300 24.029.21.12.0012 Washington County Prop Rec PROPERTY TAXES 1,107.53 None 101-1520-44300 24.029.21.21.0022 Washington County Prop Rec PROPERTY TAXES 1,107.53 None 101-1520-44300 15.029.21.41.0001 Washington County Prop Rec PROPERTY TAXES 1,573.32 None 101-1520-44300 24.029.21.12.0012 Washington County Prop Rec PROPERTY TAXES 1,205.02 None Total Department 1520 Finance 7,782.52 Total Fund 101 GENERAL FUND 7,782.52 Total Vendor Washington County Prop Records/Taxpayer Svcs:7,782.52 Vendor: White Bear Locksmith Fund: 601 WATER Department: 9400 Water 601-9400-44010 LOCK REPAIR - PUMPHOUSE White Bear Locksmith LOCK REPAIR - PUMPHOUSE 230.00 None Total Department 9400 Water 230.00 Total Fund 601 WATER 230.00 Total Vendor White Bear Locksmith:230.00 Vendor: Xcel Energy Fund: 101 GENERAL FUND Department: 3100 Public Works 101-3100-43811 3014 JAMLEY AVE N ST LAMP Xcel Energy 51-4572945-7 - DUE 03/20 30.07 None 101-3100-43811 51-0012718950-5 - 179 KEAT Xcel Energy 51-0012718950-5 - DUE 03/20 83.21 None 101-3100-43811 51-0013811065-2 - 689 INWO Xcel Energy 51-0013811065-2 - DUE 03/20 67.14 None 02/26/2026 08:48 AM Page:17/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number Vendor: Xcel Energy Fund: 101 GENERAL FUND Department: 3100 Public Works Total Department 3100 Public Works 180.42 Total Fund 101 GENERAL FUND 180.42 Fund: 601 WATER Department: 9400 Water 601-9400-43810 51-0014032224-4 - Wat Towe Xcel Energy 51-0014032224-4 - DUE 03/20 700.31 None 601-9400-43810 51-0014032232-4 - 3418 LA Xcel Energy 51-0014032232-4 - DUE 03/20 49.13 None 601-9400-43810 51-0013315481-4 - 4525 LIL Xcel Energy 51-0013315481-4 - DUE 03/10 3,163.22 None Total Department 9400 Water 3,912.66 Total Fund 601 WATER 3,912.66 Fund: 602 SEWER Department: 9450 602-9450-43810 9956 TAPESTRY RD LIFT 51-0 Xcel Energy 51-0014133900-7 - DUE 03/20 189.85 None 602-9450-43810 10845 32nd St Lift Station Xcel Energy 51-0013680215-5 - DUE 03/20 226.53 None Total Department 9450 416.38 Total Fund 602 SEWER 416.38 Fund: 703 CITY CENTER OPERATIONS (ISF) Department: 0000 General 703-0000-43810 ELEC UTIL 3880 LAVERNE 51-Xcel Energy 51-0013935424-9 - DUE 03/20 5,366.57 None Total Department 0000 General 5,366.57 Total Fund 703 CITY CENTER OPERATIONS (ISF)5,366.57 Total Vendor Xcel Energy:9,876.03 02/26/2026 08:48 AM Page:18/19 INVOICE DISTRIBUTION REPORT BY VENDOR FOR THE CITY OF LAKE ELMO GL Number Invoice Line Desc Vendor Name Invoice Description Amount Check Number --- TOTALS BY FUND --- 101 GENERAL FUND 54,683.19 209 TREE FUND 1.53 328 119,180.00 407 FIRE EQUIPMENT & PROJECT 3,142.00 410 VEHICLE REPLACEMENT 259.00 437 CITY HALL/FIRE STATN BLDG PROJ 436.80 601 WATER 34,465.28 602 SEWER 7,361.41 603 STORMWATER 2,401.79 611 WATER - CAPITAL 3,288.32 703 CITY CENTER OPERATIONS (ISF)6,372.33 704 INSURANCE FUND (ISF)101,382.00 803 ESCROW FUND 579.65 Total For All Funds:333,553.30 02/26/2026 08:48 AM Page:19/19 STAFF REPORT DATE: 3/03/2026 Consent TO: City Council FROM: Clark Schroeder Special projects AGENDA ITEM: Farm lease for the 3M land 2026-30 REVIEWED BY: Nicole Miller- City Administrator and Sarah Sonsalla-City Attorney CORE STRATEGIES: ☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services ☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future ☐ Managed Growth ☐ Resilient Infrastructure BACKGROUND: When the city acquired 180 acres in 2019 from 3M, it had been farmland for many years, and the city continued to lease the land for farming in 2020 and 2021. When the city was soliciting proposals for development of the property, the lease was allowed to expire, and the land was not farmed for the growing seasons of 2022 and 2023. We leased the land to David See for the 2024-2025 growing season after an RFP was put out to solicit the highest bidder for leasing the land. David is interested in extending his lease for a 5 year term from 2026-2030 ISSUE BEFORE COUNCIL: Should council approve the 2026-2030 lease with David See. PROPOSAL DETAILS/ANALYSIS Mr. See has done soil testing on the three main parcels of this property. Due to low PH levels, he needs to apply lime to the soil. This application typically lasts for 5-6 years, hence his desire to extend the lease for a total of 5 years when he makes this investment. The city has expressed interest in developing the most southern most parcel first so David will not be applying lime to that parcel and requested a reduction in the lease for that 15-acre section due to the poor soil conditions. Which staff have agreed to. City attorney has drafted the lease to allow the city to access all the parcels to prepare for development with reimbursement if we damage field crops. In addition, we can cancel the lease with 90 days’ written notice. Should the termination occur during the growing season the city will reimburse the tenant for the cost of the lost crops. FISCAL IMPACT: The rent will be applied to the property taxes. Any remaining funds will stay in the water fund. OPTIONS: Approve or deny lease RECOMMENDATION: Move to approve 2026-2030 lease with David See Farms for the 3M property. ATTACHMENTS: 2026-2030 lease with David See Farms for the 3M property. LA515\1\1061613.v2 1 FARM LEASE THIS FARM LEASE (this “Lease”) is made effective this _____ day of _______, 202____, by and between the City of Lake Elmo, a Minnesota municipal corporation (the “City”) and David See, d/b/a David See Farms (the “Tenant”). 1. Property Description. The City hereby rents to the Tenant in consideration of the rents and promises hereinafter described a portion of property (the “Property”) consisting of approximately 129 acres. The Property is legally described on Exhibit A attached hereto. The portions of the Property that are being leased to the Tenant are shown on the Exhibit B attached hereto (the “Leased Premises”). 2. Term. The term of this Lease is for five growing seasons commencing on __________________, 2026 and terminating on December 31, 2030, unless otherwise terminated pursuant to the terms herein. The City may terminate this Lease at any time during the term, by giving 90 days’ written notice to the Tenant. Upon expiration of the 90 day notice period, the City shall have no further obligation under the terms of this Lease, the Tenant shall vacate the Leased Premises, and no further rents shall accrue. Should this Lease termination occur during the growing season and the Tenant will be unable to procure a harvest as a result of the City’s actions, the City will reimburse the Tenant for the cost to replace the Tenant’s lost crops. The Tenant understands and acknowledges that the Leased Premises are part of the property the City intends to develop (the “Project”) and that the Leased Premises are being leased to the Tenant under this Lease on a short-term basis, subject to termination at such time as the Leased Premises may be needed for the Project. The Tenant understands, acknowledges, and agrees that in the event of termination of this Lease, the Tenant shall not qualify as a “displaced person” as described in Minnesota Statutes Section 117.50; 42 U.S.C. Section 4601; or 49 C.F.R. Part 24.2 and shall not be eligible for relocation assistance benefits or services under state or federal law. 3. Base Rent. Tenant shall pay the City annual rent of $213.50/acre for the field located north of CSAH 14 and the field south of CSAH 14 and north of the railroad tracks. Tenant shall pay the City annual rent of $133.50/acre for the field located south of CSAH 14 and south of the railroad tracks. Collectively,, the annual rent is defined herein as the “Rent.” Tenant shall pay the Rent in two annual installments each calendar year with one installment of $13,045.22 due on April 15th of each year and the second installment of $13,045.22 being due on November 15th of each year. 4. Property Taxes. The City shall be responsible for paying the annual real estate taxes attributable to the Property. 5. Quiet Enjoyment. The City warrants that it has full right to execute and to perform this Lease and to grant the estate demised, and that the Tenant, upon the Tenant’s performance of all the terms, conditions, covenants, and agreements on the Tenant’s part to be observed LA515\1\1061613.v2 2 and performed under this Lease, may peaceably and quietly enjoy the Leased Premises subject to the terms and conditions of this Lease. 6. Access to the Leased Premises. The Tenant agrees to permit the City and any authorized representatives of the City to enter the Leased Premises at all times during normal business hours (upon 24 hours’ notice to the Tenant) for the purpose of inspecting the same and conducting such investigations, tests, measurements, and assessments as may be desired by the City. In the event of an emergency constituting a danger to life, health, safety, or property, the City may enter the Leased Premises at any given time without the consent of or notice to the Tenant. 7. Tenant Obligations. The Tenant shall be responsible for paying or doing the following: A. The Tenant shall use the Leased Premises for agricultural purposes only, which includes farming and cultivation. There shall be no hunting on the Leased Premises. During farming operations, the Tenant must fertilize and lime the soil on the Leased Premises in order to keep the proper elements in the soil and at a proper pH for crop production. The Tenant shall not use any herbicides that will have any residual carry over effect on the Leased Premises or any other properties or bodies of water that are in the vicinity of the Leased Premises. The Tenant shall not keep any farm animals, livestock, or poultry on the Leased Premises. The Tenant agrees to use normal and customary farming practices in the care and maintenance of the Leased Premises and, without limiting normal practices, keep the Leased Premises free of noxious weeds to the greatest extent possible; B. The Tenant agrees that throughout the term of this Lease, the Tenant shall not use the Leased Premises for the storage, handling, transportation, or disposal of any Hazardous Substances. “Hazardous Substances” for purposes of this Lease shall be interpreted broadly to include, but not be limited to, any material or substance that is defined, regulated, or classified under any Environmental Law or other applicable federal, state, or local laws and the regulations promulgated thereunder as: (i) a “hazardous substance” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601 (14), the Federal Water Pollution Control Act, 33 U.S.C. §1321(14), as now or hereafter amended; (ii) a “hazardous waste” pursuant to Section 1004 or Section 3001 of the Resource Conservation and Recovery Act, 42 U.S.C. §§6903(5) , 6921, as now or hereafter amended; (iii) toxic pollutant under Section 307(a)(1) of the Federal Water Pollution Control Act, 33 U.S.C. §1317(a)(1) as now or hereafter amended; (iv) a “hazardous air pollutant” under Section 112 of the Clean Air Act, 42 U.S.C. §7412(a)(6), as now or hereafter amended; (v) a “hazardous material” under the Hazardous Materials Transportation Uniform Safety Act of 1990, 49 U.S.C. §5102(2), as now or hereafter amended; (vi) toxic or hazardous pursuant to regulations promulgated now or hereafter under the aforementioned laws or any state or local counterpart to any of the aforementioned laws; or (vii) presenting a risk to human health or the environment under other applicable federal, state or local laws, ordinances or regulations, as now or as may be passed or promulgated LA515\1\1061613.v2 3 in the future. “Hazardous Substances” shall also mean any substance that after release into the environment or upon exposure, ingestion, inhalation, or assimilation, either directly from the environment or directly by ingestion through food chains, will or may reasonably be anticipated to cause death, disease, behavior abnormalities, cancer, or genetic abnormalities and specifically includes, but is not limited to, asbestos, polychlorinated biphenyls (“PCBs”), radioactive materials, including radon and naturally occurring radio nuclides, natural gas, natural gas liquids, liquefied natural gas, synthetic gas, oil, petroleum and petroleum-based derivatives, and urea formaldehyde; C. The Tenant agrees to comply with all statutes, ordinances, rules, orders, regulations, and requirements of the federal, state, county, municipal, watershed, and other units of government regulating the use of the Leased Premises; D. The Tenant shall not do anything in or about the Leased Premises which will in any way impair or invalidate the obligation of the insurer under any policy of insurance required by this Lease; E. The Tenant shall not make any alterations or improvements to the Leased Premises without the City’s prior written consent. Any additions or improvements authorized by the City shall be made at the Tenant’s sole expense and shall remain on the Leased Premises at the expiration of this Lease; F. The Tenant shall refrain from using or applying any chemicals or products on the Leased Premises which contain phosphorous; G. The Tenant is not required to plow back the Leased Premises prior to the termination of this Lease; and H. This Lease does not entitle the Tenant to allow or authorize use of the Leased Premises by the Tenant or any of Tenant’s invitees for recreational purposes, including, but not limited to, hunting or the riding of snowmobiles, all-terrain, or similar recreational vehicles. 8. Costs Associated with the Lease. The City is not responsible for paying any of the Tenant’s costs associated with this Lease, including preparation of the Leased Premises for farming. The Tenant shall pay all costs related to farming the Leased Premises. 9. Insurance. The Tenant shall, at the Tenant’s expense during the term of this Lease, keep in full force and effect a policy or policies of “occurrence” based general liability insurance, providing coverage for personal injury, personal property damage, and contractual liability, on terms and with companies acceptable to the City. Such policy or policies shall name both the Tenant and the City as insured parties and shall have combined policy limits in amounts not less than $1,300,000. Such policy or policies shall provide that 30 days written notice must be given to the City prior to cancellation or termination thereof (with the exception of non-renewal which shall provide for 10 days’ notice). The Tenant shall LA515\1\1061613.v2 4 furnish evidence satisfactory to the City at the time this Lease is executed that such coverage is in full force and effect. The Tenant shall also carry insurance for the full insurable value of the Tenant’s personal property located on the Leased Premises. The Tenant hereby waives and releases all claims, liabilities, and causes of action against the City and its officials, agents, employees, and contractors for loss or damage to, or destruction of the Tenant’s personal property located on the Leased Premises. 10. Indemnification. The Tenant shall hold the City harmless from and indemnify and defend the City against any claim or liability arising in any manner from the Tenant’s use, improvement, and occupancy of the Leased Premises, or relating to the death or bodily injury to any person or damage to or loss of any personal property present on or located upon the Leased Premises, including all persons upon the Leased Premises at the Tenant’s invitation or sufferance. All personal property and equipment kept, maintained, or stored on the Leased Premises shall be kept, maintained, or stored at the sole risk of the Tenant. The Tenant agrees to pay all sums of money in respect to any labor, service, materials, supplies, or equipment furnished or alleged to have been furnished to the Tenant in or about the Leased Premises and not furnished on order of the City. 11. Assignment and Sublease Prohibited. The Tenant shall not sublet any portion of the Leased Premises or transfer or assign this Lease. The City’s right to assign this Lease is and shall remain unqualified. 12. Surrender of Possession. Upon expiration or termination of this Lease, the Tenant shall peaceably surrender the Leased Premises and remove all debris, crops, and personal property from the Leased Premises. The Tenant shall be conclusively deemed to have abandoned any personal property and crops not removed prior to the effective date of the City’s termination of this Lease or the Tenant’s surrender of the Leased Premises. All debris, crops, and personal property may be removed and disposed of by the City. The Tenant shall be responsible for any removal and disposal costs. 13. Holding Over. If the Tenant remains in possession of the Leased Premises after the expiration or termination of this Lease, the Tenant shall be deemed to be occupying the Leased Premises as a tenant at sufferance, subject to all the conditions, provisions, and obligations of this Lease insofar as the same can be applicable to a tenancy at sufferance, including, but not limited to, the duty to pay rent. 14. Sale or Encumbrance of the Leased Premises. If the City sells or otherwise voluntarily conveys the Leased Premises during the term of this Lease, and the City does not terminate this Lease pursuant to the terms herein, this Lease shall be subject to the rights of the purchaser of the Leased Premises from the City and the Tenant shall attorn to the rights of the purchaser. 15. Tenant’s Default. A. Events of Default: The occurrence of any one or more of the following events shall constitute an Event of Default: LA515\1\1061613.v2 5 (1) The Tenant’s failure to pay rent when due; (2) The Tenant’s failure to maintain the insurance required pursuant to paragraph 9 above, which failure remains uncured for 15 days following the City’s written notice to the Tenant of the Tenant’s failure to perform such obligation; (3) The Tenant’s attempt to sublet any portion of the Leased Premises, or assign the Tenant’s interest under this Lease; (4) The Tenant’s failure to fully perform any of the Tenant’s obligations, other than the obligations referenced in subsections (1), (2) or (3) above, which failure remains uncured for 30 days following the City’s written notice to the Tenant of the Tenant’s failure to perform such obligation; or (5) The Tenant’s filing, or having filed against the Tenant, any bankruptcy or debtor proceedings or proceedings for the appointment of a receiver or trustee of all or any portion of the Leased Premises, or if the Tenant makes an assignment for the benefit of creditors. B. City’s Remedies: If an Event of Default occurs, the City shall have the following remedies; (1) The City may, but shall not be obligated to, and without notice to or demand upon the Tenant and without waiving or releasing the Tenant from any of the Tenant’s obligations under this Lease, pay or perform any obligations of the Tenant; pay any cost or expense to be paid by the Tenant; obtain any insurance coverage and pay premiums therefor; and make any other payment or perform any other act on the part of the Tenant to be made and performed as provided for in this Lease, in such manner and to such extent as the City may deem desirable, and in exercising any such right, may also pay all necessary and incidental costs and expenses, employ counsel and incur and pay attorneys’ fees. The Tenant shall pay costs to the City upon demand with interest at seven percent per annum. (2) The City may terminate this Lease by written notice to the Tenant in which case the Tenant shall vacate the Leased Premises in accordance with paragraph 12 of this Lease. Neither the passage of time after the occurrence of an Event of Default nor the City’s exercise of any other remedy with regard to such Event of Default shall limit the City’s right to terminate the Lease by written notice to the Tenant. (3) The City may, whether or not the City has elected to terminate this Lease, immediately commence summary proceedings in unlawful detainer to recover possession of the Leased Premises. In the event of the issuance of LA515\1\1061613.v2 6 a writ of restitution in such proceeding, upon the City’s reentry upon and repossession of the Leased Premises, the City may remove the Tenant and all other persons from the Leased Premises (subject to the Tenant’s right and responsibility to remove the Tenant’s personal property pursuant to paragraph 12 of this Lease). In the event the City reenters the Leased Premises pursuant to this paragraph and the Tenant fails to remove the Tenant’s personal property within the time period provided in paragraph 12, all items of personal property not removed by the Tenant within said period shall be deemed abandoned, and title thereto shall transfer to the City at the expiration of such period or, upon the Tenant’s vacation of the Leased Premises. These items may be disposed of by the City. The Tenant shall be responsible for any disposal costs. (4) In addition to all other remedies of the City, the City shall be entitled to reimbursement upon demand of all reasonable attorneys’ fees which it incurs in connection with any Event of Default. (5) The City may initiate legal proceedings to enforce the provisions of this Lease. No remedy provided for herein or elsewhere in this Lease or otherwise available to the City by law, statute, or equity, shall be exclusive of any other remedy, but all such remedies shall be cumulative and may be exercised from time to time and as often as the occasion may arise. 16. Loss and Damage. The Tenant assumes and bears the risk of all loss and damage to the Leased Premises from any and every cause whatsoever, whether or not insured, except in the case of gross negligence or intentional misconduct on the part of the City, its officials, employees, agents, or contractors. No loss or damage to the Leased Premises or any part thereof shall impair any obligation of the Tenant under this Lease and the Lease shall continue in full force and effect unless the Tenant is unable to use the Leased Premises for the purposes intended under this Lease. 17. Eminent Domain. If an eminent domain or condemnation proceeding is commenced with respect to the Leased Premises during the term of this Lease, the following provisions shall apply: A. If a public or private body with the power of eminent domain or condemnation (“Condemning Authority”) acquires all of the Leased Premises through the exercise of its power of eminent domain or condemnation or as a result of a sale in lieu thereof, this Lease shall cease and terminate as of the date the Condemning Authority acquires possession. B. If a Condemning Authority acquires only a part of the Leased Premises, and such acquisition materially affects the Leased Premises so as to render the Leased Premises unsuitable for the Tenant, in the absolute discretion of the Tenant, then LA515\1\1061613.v2 7 this Lease shall cease and terminate as of the date the Condemning Authority acquires possession. C. If a Condemning Authority acquires only a part of the Leased Premises and such acquisition does not render the Leased Premises unsuitable for the Tenant in the absolute discretion of the Tenant, this Lease shall continue in full force and effect. D. The City shall be entitled to the award paid in any condemnation acquisition under power of eminent domain or the proceeds of a sale in lieu thereof, and the Tenant shall not receive any portion of such award. E. Although all damages in the event of any condemnation shall belong to the City whether such damages are awarded as compensation for diminution in value of the leasehold or to the fee of the Leased Premises, the Tenant shall have the right to claim and recover from the Condemning Authority, but not from the City, such compensation as may be separately awarded or recoverable by the Tenant, in the Tenant’s own right on account of any and all damage to the Tenant by reason of the condemnation and for or on account of any cost or loss to the Tenant. 18. Limitation of Warranties and Liability. In no event shall the City be liable for special, incidental, or consequential damages, including but not limited to lost profits, lost business opportunity, or damages related to Tenant’s use or intended use of the Leased Premises. 19. Lease is Binding. This Lease shall be binding upon the parties hereto and their heirs, successors and assigns. 20. Notification. Notices related to this Lease shall be sent to the following addresses: A. As to the City: City of Lake Elmo 3880 Laverne Avenue N. Lake Elmo, MN 55042 Attn: City Administrator B. As to the Tenant: David See D/B/A David See Farms __________________ __________________ or to such other address as either party may notify the other of pursuant to this paragraph. 21. Entire Lease. It is understood that this Lease contains all agreements, promises, and understandings between the City and the Tenant regarding the subject matter hereof. This Lease supersedes any prior agreements between the parties regarding the subject matter hereof and any prior lease related to the Leased Premises. No modification to this Lease is binding unless made in writing and signed by the City and the Tenant. LA515\1\1061613.v2 8 22. Choice of Law. The laws of the State of Minnesota shall govern the validity, performance and enforcement of this Lease. 23. Waiver. No waiver of the City’s remedies upon the occurrence of an Event of Default shall be implied from any omission by the City to take any action on account of such Event of Default, and no express waiver shall affect any Event of Default other than the Event of Default specified in the express waiver and such an express waiver shall be effective only for the time and to the extent expressly stated. One or more waivers by the City shall not be construed as a waiver of a subsequent Event of Default. 24. Relationship of Landlord and Tenant. This Lease does not create the relationship of principal and agent, partnership, joint venture, or of any association between the City and the Tenant, the sole relationship between the parties hereto being that of landlord and tenant under this Lease. 25. City’s Disclaimer of Warranty. The City disclaims any warranty that the Leased Premises is suitable for the Tenant’s use. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. CITY OF LAKE ELMO By: Charles Cadenhead Its: Mayor By: Julie Johnson Its: City Clerk TENANT By: David See, d/b/a David See Farms LA515\1\1061613.v2 A-1 EXHIBIT A Legal Description of the Property Washington County PID 16.029.21.24.0002 LA515\1\1061613.v2 A-2 EXHIBIT B Depiction of the Leased Premises (outlined in red) LA515\1\1061613.v2 A-3 STAFF REPORT DATE: March 3, 2026 CONSENT TO: Mayor and Councilmembers FROM: Kathie Smith, Communications Coordinator AGENDA ITEM: Lake Elmo Strategic Communications Plan CORE STRATEGIES: ☒ Vibrant, inclusive, connected community ☒ Responsive, transparent, adaptive governance ☐ Managed Growth ☒ Efficient, reliable, innovative services ☐ Balanced Finances now and future ☐ Resilient Infrastructure BACKGROUND: To provide consistent, clear, engaging and transparent communications from the City of Lake Elmo, staff created the Lake Elmo Strategic Communications Plan. This plan details the Communications objectives, provides guidance to staff and outlines expectations for resident communications. The plan was presented and discussed at the Council Workshop on December 9, 2025 and recommended changes were made. ISSUE BEFORE COUNCIL: Should the Council approve the Lake Elmo Strategic Communications Plan PROPOSAL DETAILS/ANALYSIS: Before you is the final draft of the Lake Elmo Strategic Communications Plan. The City Council is respectfully requested to approve the City of Lake Elmo Strategic Communications Plan to align with the core strategies checked above. FISCAL IMPACT: N/A OPTIONS: Approve or do not approve the Lake Elmo Strategic Communications Plan RECOMMENDATION: (if pulled from Consent) “Motion to approve the Lake Elmo Strategic Communications Plan.” ATTACHMENTS: City of Lake Elmo Strategic Communications Plan STRATEGIC COMMUNICATIONSPLAN STRATEGIC COMMUNICATIONSPLAN CITY OF LAKE ELMO Communications Strategy Table of Contents Lake Elmo Mission Statement and Strategic Initiatives Communications Department Role and Responsibilities Crisis Communications and Media Inquiries Lake Elmo’s Communication Channels Social Media Platforms Measuring Success ADA Web Accessibility Guidelines 1 CITY OF LAKE ELMO Communications Strategy Lake Elmo Mission Statement and Strategic Initiatives Mission Statement The mission of the City of Lake Elmo is to provide planned, quality public services consistent with the City’s character in a fiscally responsible manner in partnership with our community. Core Strategies and Strategic Initiatives The City of Lake Elmo is committed to leading and guiding the City towards the following long-term core strategies and core objectives: 1.Building a vibrant, inclusive, and connected community through celebration, engagement, and shared spaces. 2.Manage growth with purpose and intent. 3.Balancing finances consistent with current needs and future growth. 4.Maintain responsive, transparent, and adaptive governance. 5.Deliver efficient, reliable, and innovative public services. 6.Build and sustain resilient infrastructure to support a thriving and sustainable community. 2 CITY OF LAKE ELMO Communications Strategy Communications Department’s Roles and Responsibilities The Communications Department’s primary function is to assist City Hall, its departments, the Mayor, and the City Council by providing consistent, relevant, and essential information through various industry-standard communication platforms. Topics covered include City Council meetings, ordinance updates, public hearings, events, and programs. The information will be shared via the City’s website, the Fresh weekly newsletter, the Source biannual newsletter, and City and department social media accounts. The primary function of the Communications Department is to promote the positive developments in Lake Elmo, enhancing local interest and community pride while also showcasing our City to attract potential new business owners and residents. Key Communications Objectives Communicate effectively and transparently Increase opportunities to engage with the community and foster community involvement Promote city services Educate and inform residents Build trust and appreciation using the city website, social media, print and electronic publications, and public relations. Support Public Safety and Public Works strategic initiatives Encourage youth engagement activities The Communications Department is the leading news source for the City Council, City Departments, policy updates, staffing changes, finance, and other imperative information. 3 CITY OF LAKE ELMO Communications Strategy Target Audience Lake Elmo homeowners & residents Lake Elmo business owners City Council members Commission members City staff Local nonprofits and community groups Neighborhood leaders County, regional, and state agencies Visitors Local media outlets Neighboring communities Communication Tools City website at lakeelmo.com (official/primary source of information) The Source biannual newsletter (print and digital) Social Media (Facebook, Instagram, LinkedIn) Video (in-house) Email Brochures, flyers, and posters Direct mail Public meetings/open houses Public Hearing notices via The Gazette Communications Priority Order City news, information, meetings, and public notices City events of a community-wide nature City-affiliated organizations' news and events Public Relations Our Key Objectives: Highlight and promote Lake Elmo’s achievements and opportunities Enhance current local and state news with the Lake Elmo perspective/angle Explore new opportunities for outreach, including press & news releases, info sheets, SCC 4 CITY OF LAKE ELMO Communications Strategy Crisis Communications and Media Inquiries The Communications Department’s primary function is to assist City Hall, its departments, the Mayor, and the City Council by providing consistent, relevant, and essential information through various industry-standard communication platforms. The Communications Team works closely with the Public Safety Department and the Fire Department to align strategies, share accurate information, and support their emergency response efforts. Together, we focus on delivering consistent updates to keep residents informed, prepared, and safe when it matters most. The primary function of the Communications Department is to promote the positive developments in Lake Elmo, enhancing local interest and community pride while also showcasing our City to attract potential new business owners and residents. Lake Elmo’s Communications Channels City of Lake Elmo Website (lakeelmo.gov) The City website serves as the primary source of information for residents, providing detailed insights into city government, codes and permits, departments and services, events, and meetings. It features a notification system that residents can opt into for news flashes, alerts, meeting notices, city projects, public hearings, and planning updates. Additionally, the site includes a section on sustainability and a comprehensive “How do I?” guide for residents. Our Key Objectives: Identify and prioritize key messages Update the site to incorporate key search terms where appropriate Enhance usability and identify areas for improvement Improve plain language and remove highly technical language Ensure the site contains accurate and current information 5 CITY OF LAKE ELMO Communications Strategy The Source Newsletter Published biannually, The Source is the official newsletter for residents and businesses. The newsletter offers in-depth information on community news, city projects and initiatives, city services, employee updates, and upcoming community events. Our Key Objectives: Share news, planning, and initiatives with in-depth articles and information Identify and prioritize key messages Educate the community on specific areas of interest Examine the best avenues for communication and frequency Explore additional opportunities for outreach, including brochures, posters, and flyers The Fresh Newsletter Published weekly, The Fresh is the official email newsletter for residents and businesses. The newsletter provides in-depth information about community news, city projects and initiatives, city services, employees, and community events. The Fresh will allow community organizations related to city business to submit one newsworthy topic or event each week, with the deadline being Wednesday at noon. To comply with ADA accessibility rules, images will remain unaltered and not contain embedded text whenever possible. No PDFs will be accepted. Events must be accessible and open to the community. Social Media: Facebook, LinkedIn, Instagram, NextDoor, YouTube The City of Lake Elmo uses various media platforms to communicate with the public accurately and promptly. Its website (www.lakeelmo.gov) serves as its primary and significant online presence. Additionally, the city leverages social media to engage with the public, share news and information about Lake Elmo, and highlight the city’s achievements and stories. 6 CITY OF LAKE ELMO Communications Strategy Facebook is our primary social media platform for promptly sharing city events and achievements, while also educating residents. The city also utilizes LinkedIn for professional updates, job postings, and thought leadership, as well as Instagram to deliver dynamic content that helps grow the city’s following and highlights trending topics. The City of Lake Elmo will maintain authority over and provide a clear expectation of what is "spoken" on behalf of the City on social media platforms. The City will decide, at its discretion, how its social media and online presence will be designed, implemented, and managed as part of its overall communications strategy. Social media resources may be adjusted or removed by the City at any time and without notice, ensuring the integrity of communication and information technology functions. The City of Lake Elmo's social media sites are subject to Minnesota public records laws. Any content in a social media format related to City business constitutes a public record and will be retained by the City's adopted record retention schedule. Social media postings are classified as transitory, incidental, and non-vital correspondence and will be kept until read. The City of Lake Elmo strives to provide accurate information on its social media pages. However, several factors beyond the City's control- such as unauthorized modifications of electronic data, transmission errors, browser incompatibility, cached information on local computers or storage devices, and other aspects of electronic communication- can affect the quality of the information displayed on social media sites. Therefore, the City does not guarantee the accuracy of the information on its social media pages and is not liable for any reliance on it. The City reserves the right to maintain one-way communications on social media platforms. Lake Elmo does not share information collected through its social media sites for promotional purposes. 7 CITY OF LAKE ELMO Communications Strategy Comments on Social Media The purpose of the City of Lake Elmo's social media sites is to promote communication between the City, its departments, and the public. At its sole discretion, the City reserves the right to change, modify, add, or delete comments, posts, photos, and videos following this policy. Generally, the City does not intend to permit users to initiate posts on its social media pages. However, in instances where comments are allowed, the City will remove comments that: Contain obscenities. Demean specific individuals or groups of people. Are libelous/slanderous. Contain factual inaccuracies. Qualify as SPAM. Are not topically related to the particular social medium article being commented upon. Express support for or opposition to political campaigns or ballot measures. Contain sexual content or links to sexual content. Solicit commerce. Conduct or encourage illegal activity. Compromise the safety or security of the public or public systems or Violate a legal ownership interest of any other party. Any content removed based on these guidelines must be retained by the City for a reasonable period, including the time, date, and identity of the poster, when available. If possible, archived data should reflect the context of the situation from which it was removed. 8 CITY OF LAKE ELMO Communications Strategy Questions on Social Media The staff of Lake Elmo will monitor social media sites Monday through Friday, from 8:00 AM to 4:30 PM. They will respond within one business day to specific questions posted on social media, offering either information or directing users to the city website or other resources. In some cases, staff may ask individuals to contact the city offline when appropriate (for example, if it is a private matter or an issue of little interest to others). Social Media Platforms Facebook: https://www.facebook.com/LakeElmoMN Instagram: https://www.instagram.com/officialcityoflakeelmo/ LinkedIn: https://www.linkedin.com/in/cityoflakeelmo/ Nextdoor: https://nextdoor.com/agency/city-of-lake-elmo/?i=snswjjjxsythlcbhmwjd YouTube: youtube.com/@CityofLakeElmoMN Measuring Success Our communications mission is to establish trackable, measurable goals that enable us to evaluate and refine the impact of our messages on the community. By leveraging data, we can enhance our messages and the channels we utilize. The City of Lake Elmo tracks communication workload metrics, including newsflash items and social media posts published on the website. We also assess the influence of our communications on the audience through reach, penetration, engagement levels, experiences, and opinions. Below are specific methods we use to measure the impact of our communication efforts. Engagement Engagement involves connecting with our audience through various activities and messages and measuring opportunities for each communication channel. By comparing the data to actual participation, we can evaluate different media and messages, tailoring our delivery to enhance interactions and stimulate interest. Ways we measure engagement: Conversion or click-through rates on calls-to-action Bounce rates for outbound emails Growth rate of opt-in email list Sharing web resources that we've produced Media coverage Internal staff feedback 9 CITY OF LAKE ELMO Communications Strategy Reach A tool we use to gauge the effectiveness of our communications is measuring the number of people who see the content we produce, how they interact with us, and the frequency of those interactions. These metrics determine our engagement (the number of individuals visiting our content), reach (the breadth of our audience viewing our content), and penetration (the depth of our communications based on community interaction). This metric estimates the number of people who viewed any content from or about our page. Impressions, or penetration, represent the number of times any content from our website or social media appears on a person's screen. We report these findings quarterly to the City Council. ADA Web Accessibility The City of Lake Elmo is committed to removing barriers, addressing disparities, and ensuring that residents have access to the resources they need in our community. Title II of the Americans with Disabilities Act (ADA) has an updated rule requirement: The Web Content Accessibility Guidelines (WCAG) Version 2.1, Level AA is the technical standard for the web content and mobile apps of state and local governments. This rule establishes a specific technical standard that state and local governments must follow to fulfill their obligations under Title II of the ADA for web and mobile app accessibility. WCAG, the Web Content Accessibility Guidelines, is a set of guidelines developed by the World Wide Web Consortium that defines web accessibility, including the requirement for video captions. The rule states that state and local governments in cities with populations under 49,999 have until April 2027 to comply with this law. However, the City of Lake Elmo will demonstrate their progress toward compliance in all forms of communication before the deadline. 10 STAFF REPORT DATE:March 3, 2026 CONSENT TO: Mayor and Councilmembers FROM: City Clerk Julie Johnson AGENDA ITEM: Approve Massage Therapy License Renewal CORE STRATEGIES: ☒ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services ☒ Responsive, transparent, adaptive governance ☐ Balanced Finances now and future ☐ Managed Growth ☐ Resilient Infrastructure BACKGROUND: The City of Lake Elmo has a city license for massage therapy to better regulate the practice of therapeutic massage in Lake Elmo. Licenses are subject to approval by the City Council. ISSUE BEFORE COUNCIL: Should Council approve the requested license renewal? PROPOSAL: The City has received a license renewal request from Roxane Fogard/Body & Soul, Inc. Appropriate fees have been paid and all required paperwork has been submitted. FISCAL IMPACT: Renewal fee: $25.00 OPTIONS: 1)Approve license renewal 2)Deny license renewal RECOMMENDATION: If removed from the consent agenda, staff recommends the following motion: “Motion to approve massage therapy license renewal for Roxane Fogard/Body & Soul, Inc.” ATTACHMENTS: None STAFF REPORT DATE: March 3, 2026 Consent Agenda TO: Planning Commission FROM: Ashley Monterusso, City Planner AGENDA ITEM: Lake Elmo Firehouse Addition - Minor Subdivision REVIEWED BY: Sophia Jensen, Senior City Planner Jason Stopa, Community Development Director CORE STRATEGIES: ☐Vibrant, inclusive, connected community ☐Efficient, reliable, innovative services ☒Responsive, transparent, adaptive governance ☐ Balanced Finances now and future ☒Managed Growth ☐Resilient Infrastructure INTRODUCTION: In October of 2025, City Council approved moving forward with the Tap & Ladder and Machete team as the finalist of the RFP process. As the City continues to move forward in the process, the City is requesting approval of a minor subdivision of City-owned property to reconfigure the existing nine (9) parcels into two (2) parcels ahead of a sale. The minor subdivision is proposed at the Former Fire Station and Parks properties to clean up property lines and consolidate the property into two parcels for a sale. ISSUE BEFORE CITY COUNCIL: The City Council is being asked to make a determination on it’s request. GENERAL INFORMATION: Applicable Regulations: Title 103 – Subdivision Regulations Address/PIDs: •13.029.21.23.0028 •13.029.21.32.0031 – 3510 Laverne Ave •13.029.21.32.0028 •13.029.21.32.0029 •13.029.21.32.0030 •13.029.21.32.0092 •13.029.21.32.0043 •13.029.21.32.0044 - 11200 Upper 33rd St •13.029.21.32.0045 Existing Zoning: Village Mixed Use (VMX) Surrounding Zoning: Village Mixed Use (VMX) Applicable Regulations: Title 103 – Subdivision Regulations REVIEW AND ANALYSIS: Minor Subdivision: The City’s subdivision regulations allow for certain major subdivision procedures and 2 requirements to be waived when certain criteria are met. The minor subdivision process allows for concurrent review and approval of a preliminary and final plat. Below is a review of the minor subdivision criteria: 1. The proposed minor subdivision will result in no more than four parcels. Nine parcels will become two parcels. 2. The proposed minor subdivision will not require any new infrastructure or streets. Existing right-of-way will be dedicated to clean up the area. 3. Easements have been dedicated where applicable. 4. This request will meet the City’s Village Mixed Use (VMX) zoning lot dimension and bulk building requirements. 5. The request will meet the City of Lake Elmo’s access spacing and location. No new driveways or access points are proposed with this request. CITY AGENCY REVIEW: The following departments provided comments: • Public Works (Email 1.6.2026) – No comment • Valley Branch Watershed District - VBWD permit required and was submitted on 1.9.2026 and approved on 1.22.2027 • City Engineer (Email 1.12.2026) - Provided comments recommending minor adjustments to ROW and easement areas. They have since been incorporated. • Fire Department (Email 1.6.2025) – No comments • City Attorney – Provided a plat opinion with requested revisions. A condition of approval has been added regarding this memo. • MN DNR – No comment PLANNING COMMISSION & PUBLIC COMMENT: A public hearing notice was sent to surrounding properties on January 26, 2026 A public hearing notice was published in the City’s official newspaper on January 30, 2026. Staff has not received any public comment at this time. Planning Commission moved to recommend the approval of the minor subdivision at it’s meeting on February 9, 2026 (4-0). FINDINGS: Staff is recommending that the City Council consider the following findings with regards to the requests: • That the Lake Elmo Firehouse Addition minor subdivision is consistent with the Lake Elmo Comprehensive Plan and the Future Land Use Map for this area. • That the Lake Elmo Firehouse Addition minor subdivision is consistent with the future development plans of the area and with the standards of the City’s village mixed use zoning district. • That the Lake Elmo Firehouse Addition minor subdivision meets the requirements of the City’s minor subdivision regulations. RECOMMENDED CONDITIONS OF APPROVAL: 1. The applicant must obtain all other necessary City, state, and other governing body permits and approvals prior to release of the plat for recording. 3 2. The City Attorney’s comments set forth in the plat opinion shall be addressed prior to release of the plat for recording. 3. The applicant shall record the plat and resolution within 180 days after approval and provide proof to the City. If both are not recorded within 180 days, approval of the minor subdivision shall be considered void, unless a request for a time extension is submitted in writing and approved by the council. RECOMMENDED MOTION (if removed from Consent Agenda): Staff recommends the City Council to approve of the Lake Elmo Firehouse Addition minor subdivision. Suggested Motion: “Move to approve of the Lake Elmo Firehouse Addition minor subdivision based on the findings of fact and conditions presented in the staff report.” ATTACHMENTS: 1) Preliminary and Final Plat Error! Unknown document property name. CITY OF LAKE ELMO WASHINGTON COUNTY, MINNESOTA RESOLUTION NO. 2026 – 014 A RESOLUTION APPROVING A MINOR SUBDIVISION FOR THE LAKE ELMO FIREHOUSE ADDITION (3510 LAVERNE AVE & 11200 UPPER 33RD STREET) WHEREAS, the City of Lake Elmo (the “City”) is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, The City of Lake Elmo (the “Applicant”) submitted an application to the City for a minor subdivision to reconfigure the properties with the PIDs: 13.029.21.23.0028, 13.029.21.32.0031 – 3510 Laverne Ave, 13.029.21.32.0028, 13.029.21.32.0029, 13.029.21.32.0030, 13.029.21.32.0092, 13.029.21.32.0043, 13.029.21.32.0044 - 11200 Upper 33rd St, 13.029.21.32.0045 from nine parcels into two parcels, a copy of which is on file in the City of Lake Elmo Planning Department; and WHEREAS, the Lake Elmo Planning Department has reviewed the proposed Lake Elmo Firehouse Addition minor subdivision for consistency with the City of Lake Elmo Zoning and Subdivision ordinances; and WHEREAS, the Lake Elmo Planning Commission held a public hearing on February 9, 2026, to review and consider the Lake Elmo Firehouse Addition minor subdivision; and WHEREAS, the consensus of the Lake Elmo Planning Commission was to recommend to the City Council approval of Lake Elmo Firehouse Addition minor subdivision subject to conditions of approval; and WHEREAS, the City Council reviewed and approved Lake Elmo Firehouse Addition minor subdivision at its March 3, 2026, meeting and made the following findings of fact: •That the Lake Elmo Firehouse Addition minor subdivision is consistent with the Lake Elmo Comprehensive Plan and the Future Land Use Map for this area. •That the Lake Elmo Firehouse Addition minor subdivision is consistent with the future development plans of the area and with the standards of the City’s village mixed use zoning district. •That the Lake Elmo Firehouse Addition minor subdivision meets the requirements of the City’s minor subdivision regulations. NOW, THEREFORE, BE IT RESOLVED THAT the City Council does hereby approve Lake Elmo Firehouse Addition minor subdivision subject to the following conditions: 1.The applicant must obtain all other necessary City, state, and other governing body permits and approvals prior to release of the plat for recording. 2.The City Attorney’s comments set forth in the plat opinion shall be addressed prior to release of the plat for recording. 3.The applicant shall record the plat and resolution within 180 days after approval and provide proof to the City. If both are not recorded within 180 days, approval of the minor subdivision shall be considered void, unless a request for a time extension is submitted in writing and approved by the council. DECISION Passed and duly adopted this __________day of _____________, 202____ by the City Council of the City of Lake Elmo, Minnesota. Charles Cadenhead, Mayor ATTEST: ________________________________ STAFF REPORT DATE: 3/3/2026 CONSENT TO: Mayor and City Council FROM: Dustin Kalis, Fire Chief AGENDA ITEM: Lake Elmo Fire Department VBWD Training Agreement REVIEWED BY: Nicole Miller, City Administrator CORE STRATEGIES: ☐ Vibrant, inclusive, connected community ☒ Efficient, reliable, innovative services ☒ Responsive, transparent, adaptive governance ☐ Balanced Finances now and future ☐ Managed Growth ☐ Resilient Infrastructure BACKGROUND: In 2025, the Valley Branch Watershed District began acquiring several homes on Legion Avene for stormwater and watershed mitigation efforts. Chief Kalis approached the district to utilize two of the properties for live fire training. Utilizing an acquired building for training will allow firefighters the ability to train in the most realistic scenarios possible. The department last conducted a live fire training exercise within the city in 2012. ISSUE BEFORE COUNCIL: Should the City Council enter into the agreement with the Valley Branch Watershed District to allow the fire department use of two residential structures for live fire training exercises? PROPOSAL DETAILS/ANALYSIS: The Fire Department will conduct training exercises at 2764 Legion Avenue N. in April 2026, and at 2814 Legion Avenue N. in July or August 2026. Live fire training permits will be obtained from the Minnesota Department of Natural Resources and the Minnesota Pollution Control Agency. All training burns will be conducted in strict accordance with permit requirements and NFPA 1403 standards. This agreement has been reviewed by the city attorney. A communication plan is in place to inform adjacent property owners and neighborhoods of these activities. Training operations are designed to minimize the impact on residents; however, as weather conditions significantly dictate smoke drift, the training plan will be adjusted as needed to reduce the impact on neighboring properties. Following the exercises, the remaining structures must sit for two weeks before a contracted demolition crew removes them. FINANCIAL IMPACT The watershed district is allowing the use of these properties at no cost to the city. Other costs associated with the training (materials, staff overtime) will be submitted for reimbursement through the Minnesota Board of Firefighter Training and Education. RECOMMENDATION: Motion to adopt the VBWD Lake Elmo Fire Department Training Agreement. ATTACHMENTS: 2026 VBWD Lake Elmo Fire Department Training Agreement LA515\1\1067712.v4 AGREEMENT THIS AGREEMENT is entered into this _____________ day of _______________, 2026 by and between the Valley Branch Watershed District, a Minnesota municipal corporation, organized under the laws of the State of Minnesota, with an address of P.O. Box 838, Lake Elmo, MN 55042 (the “District”) and the City of Lake Elmo, a Minnesota municipal corporation, with an address of 3880 Laverne Avenue N., Lake Elmo, MN 55042 (the “Ci ty”), acting through its Fire Department (collectively District and City are referred to herein as the “Parties”). WHEREAS, the District is the fee owner of certain real properties located at 2764 Legion Avenue N., 2778 Legion Avenue N., 2814 Legion Avenue N., and 2832 Legion Avenue N., Lake Elmo, MN 55042, each of which is legally described in the attached Exhibit A; and WHEREAS, the prior owners of 2814 Legion Avenue N., will be occupying the property until May 31, 2026; and WHEREAS, the District expects to acquire fee ownership of certain real property located at 2790 Legion Avenue N., Lake Elmo, MN 55042 on or around July 15, 2026, which is legally described in the attached Exhibit A; (collectively the five Legion Avenue properties are referred to herein as the “Properties” and individually as the “Property”); and WHEREAS, there are buildings located on each Property; and WHEREAS, the District agrees to allow the City’s Fire Department to conduct training exercises on 2764 Legion Avenue N. in March or April of 2026, and 2814 Legion Avenue N. in July or August of 2026, that may result in the buildings on those properties being destroyed by smoke or fire; and WHEREAS, the District shall grant the City access and use of Properties owned by the District that are unoccupied when the training exercises occur. NOW, THEREFORE, the Parties hereto in consideration of the mutual covenants and considerations hereinafter set forth do agree as follows: 1. Grant of Use of the Properties. The District, as a community service and without other compensation, grants permission to the City to access the Properties and to enter and destroy the buildings on 2764 Legion Avenue N. and 2814 Legion Avenue N., as provided in this Agreement, for purposes of conducting Fire Department training exercises. The District consents to the buildings on 2764 Legion Avenue N. and 2814 Legion Avenue N. being destroyed by smoke or fire as a result of the training exercise. 2. Training Activities - Generally. The City’s training exercise will involve the intentional destruction of the buildings on 2764 Legion Avenue N. and 2814 Legion Avenue N. by fire with response by the City Fire Department personnel. 3. Access for Training Activities at 2764 Legion Avenue N: When the City conducts training exercises at 2764 Legion Avenue N, it may access and use 2778 Legion Avenue N., and 2832 Legion Avenue N., for staging purposes in order to assist with keeping Legion Avenue clear LA515\1\1067712.v4 of equipment, personnel, and vehicles. The City may not use or access 2814 Legion Avenue N. for this training exercise, and shall make every effort to impact the occupants of 2814 Legion Avenue N. as minimally as possible. 4. Access for Training Activities at 2814 Legion Avenue N: When the City conducts training exercises at 2814 Legion Avenue N., it may access and use any of the Properties for staging purposes in order to assist with keeping Legion Avenue clear of equipment, personnel, and vehicle; and 5. Supervision and Training. The City agrees that it will monitor and supervise all training activities that occur on the Properties pursuant to this Agreement. The City is responsible for ensuring that the training activities do not extend beyond the Properties the City is authorized to access and use (“Authorized Properties”). In the event training activities extend beyond Authorized Properties, the City will assume all responsibility for damage caused as a result of the City’s activities before, during, or after the training exercise. The City will make reasonable attempts to protect existing mature trees on the Properties from fire damage. 6. Crowd Control and General Safety. The City agrees that it will be responsible for traffic and crowd control before, during, and after the training exercises. The City agrees it will be responsible for the safety of all persons present at the training exercise until the last City personnel has left the Legion Avenue neighborhood when a training exercise has concluded. The City will secure the Property with “Do Not Enter” tape to dissuade entry on to the Property after the training exercise is complete. The City agrees that it will not use chemicals containing PFAS or other known long-term environmentally hazardous chemicals during a training exercise. 7. District Responsibilities. The District shall provide the City with proof of fee ownership of each Property and clear title prior to the City’s use of that particular Property. The District assumes responsibility for cancelling insurance associated with the buildings to be destroyed and providing proper documentation that cancellation has occurred. A complete cancellation of all insurance on the Property will not be required pursuant to this Agreement. Prior to the date of the training exercise, the District must disconnect all utility services to the buildings on 2764 Legion Avenue N. and 2814 Legion Avenue N. including, but not limited to gas, electric, water, telephone, cable television, and satellite and any antennas. The District must remove any fuel oil and other hazardous substances and conditions from 2764 Legion Avenue N. and 2814 Legion Avenue N. The District must also remove from 2764 Legion Avenue N. and 2814 Legion Avenue N. any personal property, fixtures, or materials that the District wishes to preserve prior to the City’s Fire Department undertaking the destruction activities. If the District has not completed these tasks at least 24 hours before the first possible training date, the District shall immediately notify the City of this fact. 8. Date and Time of the Training Exercises. The City will be conducting multiple training activities on the Properties with respect to the buildings that are to be destroyed. The exact dates and times of these activities are dependent on weather conditions, City staff availability and the City’s training schedule. It is expected that the training activities for 2764 Legion Avenue N. will take place during the time frame of late March and early April, 2026, and the training activities for 2814 Legion Avenue N. will take place during the time frame of late July and early August 2026. The City will notify the District at least 24 hours in advance of each training activity and specify the Property upon which the training activity will take place. The LA515\1\1067712.v4 District grants to the City the use of the Properties on the day of each training activity for preparation, conducting the training exercise, post-training briefing, and related activities such as preliminary and follow-up inspections. 9. Site Map and Current Conditions. The Parties shall collaborate to create a site map and describe all current conditions for the Properties. The site map should describe the property and structure(s) as well as other points of interest for the Parties, including but not limited to, surrounding roads and accesses, utility lines, hazards, and planned fire set locations. A sample site map form is included as Exhibit B. 10. Notification Responsibilities. The City shall be solely responsible for providing preliminary notification to the public, electric, gas, and water utilities, and the media about the training activities that will be occurring on the Properties. The City will also be solely responsible for providing specific notification to the public, electric, gas, and water utilities, and the media regarding the day of the final burn on 2764 Legion Avenue N. and 2814 Legion Avenue N. 11. Waiver of Trespass. The District expressly waives any claim of trespass against the City for entry onto the Properties for the purpose of conducting training exercises and related activities on the Properties. 12. Liability and Indemnification. The City agrees to indemnify, defend and hold harmless the District, its officials, employees, contractors and agents from and against any and all causes of action, claims, demands, judgments, losses, damages or expenses of whatever kind or nature (including, but not limited to, litigation costs, attorneys’ fees and court costs) incurred by the District, because of bodily injury or death sustained by any person or damage that arises out of the City’s activities in conjunction with this Agreement. The parties agree that the site(s) where a training activity has occurred will be more dangerous than prior to the training activity due to the debris and potentially unstable building remains. The City’s liability provisions in this paragraph shall extend until the District has removed all debris from a Property following completion of the training exercise as required by paragraph 13 of this Agreement. The District agrees to indemnify, defend and hold harmless the City, its officials, employees, contractors and agents from and against any and all causes of action, claims, demands, judgments, losses, damages or expenses of whatever kind or nature (including, but not limited to, litigation costs, attorneys’ fees and court costs) incurred by the District arising out of the lack of the District’s authority to have the structures destroyed or the District’s lack of clear title to the buildings or Properties as well as because of property damage arising out of and incident to the City’s activities on the Properties and the District or any of the District’s invitees’ activities on the Properties. 13. Clean Up and Site Restoration. The District shall be solely responsible for removing all debris from a Property following completion of the training exercises, regardless of the condition of the Property or the buildings on the Property following completion of the training exercises upon that Property. The City shall notify the District in writing when the training exercises are completed on an individual Property and the District shall have 30 days from the date of that notice to complete the removal of all debris and remnants of the buildings and to ba ckfill any basements with onsite soils so that the condition of the Property is in full compliance with the City Code. All debris and materials removed by the District must be disposed of in accordance LA515\1\1067712.v4 with federal, state, and county laws and regulations at the District’s expense. Any permit or sampling costs shall be at the District’s expense. If at any time during the training session, the City Fire Department’s Instructor-In-Charge deems it necessary to extinguish the fire and the building is not completely destroyed, the destruction of the remaining portion of the building will be the responsibility of the District. The City reserves the right to inspect the Properties from time to time as necessary to ensure the District’s compliance with its obligation to clean up the Properties. 14. No Waiver. Nothing herein shall be deemed a waiver by the Parties of the limitations on liability set forth in Minnesota Statutes Chapter 466, and a Party’s obligation to indemnify shall be limited to the limit on municipal liability set forth in Minnesota Statutes Chapter 466, less any amounts the Party is obligated to pay for itself, its agents or employees for damages arising out of the same occurrence. LA515\1\1067712.v4 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the above date. VALLEY BRANCH WATERSHED DISTRICT By: __________________________ Ed Marchan Its: President By: __________________________ Its: __________________________ CITY OF LAKE ELMO By: __________________________ Charles Cadenhead Its: Mayor By: __________________________ Its: City Clerk LA515\1\1067712.v4 Exhibit A Legal Descriptions of the Properties 2764 Legion Avenue N. Lot 10, Block 1, Myron Ellman Subdivision, together with that part of Twelfth Street as dedicated on the plat of Myron Ellman Subdivision, Washington County, Minnesota which lies Westerly of a line described as commencing at the Southeast corner of Lot 10, Block 1, said addition; thence Westerly along the South line of said Lot 10, a distance of 15.00 feet to the point of beginning of the line to be described; thence Southwesterly to a point on the South line of said Twelfth Street as dedicated on said plat distant 30.00 feet Westerly of the intersection of the South line of said Twelfth Street as dedicated on said plat and the Southerly extension of the East line of said Lot 10 and said line there terminating. 2778 Legion Avenue N. Lot 9, Block 1, Myron Ellman Subdivision, according to the recorded plat thereof, County of Washington, State of Minnesota. 2790 Legion Avenue N. Lot 1, Block 1, Myron Ellman Subdivision, according to the recorded plat thereof, County of Washington, State of Minnesota. 2814 Legion Avenue N. Lot 7, Block 1, Myron Ellman Subdivision, according to the recorded plat thereof, County of Washington, State of Minnesota. 2832 Legion Avenue N. Lot 6, Block 1, Myron Ellman Subdivision, according to the recorded plat thereof, County of Washington, State of Minnesota. LA515\1\1067712.v4 Exhibit B Site Map Date: _______________ Address: __________________________________________ Site Map: • Building Outline • Property Lines • Roads/Accesses • Exposures, Utilities • Septic Tanks • Operational Control Areas • Water Sources • Site Hazards • Support Locations • Parking Areas Structure Drawing: • Building Size • Construction Type • Floor Plan • Exits • Windows and Ventilation Points • Fire Set Locations Prepared by: _____________________________________________ STAFF REPORT DATE: March 3, 2026 TO: Mayor and Councilmembers FROM: Jennifer Doyle, Administrative Services Director AGENDA ITEM: Class and Compensation Update CORE STRATEGIES: ☐ Vibrant, inclusive, connected community ☒ Responsive, transparent, adaptive governance ☐ Managed Growth ☒ Efficient, reliable, innovative services ☐ Balanced Finances now and future ☐ Resilient Infrastructure BACKGROUND: The City of Lake Elmo’s compensation plan’s main objectives are to provide its employees with equitable compensation and financial incentives, to the extent permitted by law, to promote the attainment of the highest levels of performance and organizational contribution. The plan is a key factor in the City’s ability to attract, retain, and motivate well-qualified individuals to participate in the achievement of its objectives. This plan states the City will evaluate the plan on a yearly basis. The last time the City of Lake Elmo had a complete classification and compensation study was in 2022 and was completed by Baker Tilly. ISSUE BEFORE COUNCIL: Should the City Council authorize a classification and compensation update for all positions within the organization? PROPOSAL DETAILS/ANALYSIS: The project would evaluate positions within the current SAFE structure set up by Baker Tilly as well as review position wages to ensure we align with market. Baker Tilly, the organization that conducted our last Class and Comp study in 2022, did not respond when we reached out to discuss a proposal to conduct a market study. Staff reached out to three entities to provide a proposal not to do a complete salary restructure but rather work with our current SAFE structure set up by Baker Tilly to do a compensation update. We requested a market study to evaluate our grade levels and positions within those grade levels to ensure positions are aligned within the appropriate grade level and are competitive with the current market so we can continue to meet the objectives of our Compensation Plan. Please note the SAFE structure set up by Baker Tilly will be used as the framework for this year’s project, but the City will most likely need to move to a new structure with a future project to be best supported. We met with all three entities to discuss the proposals and felt Flaherty & Hood best aligned with the scope we presented them. They were familiar with and willing to work with our current SAFE structure which allowed for a reasonable cost proposal. They also conduct Pay Equity tests to ensure compliance with the State’s mandatory reporting. We have worked with Flaherty & Hood most recently to review our Public Works Operators and Lead compensation structure in 2025. Legal has reviewed the agreement from Flaherty & Hood. Staff would like to move forward with the proposal from Flaherty & Hood to provide Compensation update services to our current Compensation plan structure. FISCAL IMPACT: This is included in the 2026 Administration budget for contract services. OPTIONS: Approve the agreement with Flaherty & Hood for Compensation Update Services. Approve the agreement with changes for Compensation Update Services with Flaherty & Hood. Don’t proceed with agreement for Compensation Update Services. RECOMMENDATION: “Motion to approve the Flaherty & Hood agreement providing compensation update services.” ATTACHMENTS: Lake Elmo Compensation Policy Flaherty & Hood presentation Proposals Flaherty & Hood Services Agreement City of Lake Elmo Compensation Plan _____________________________________________________________ I. PURPOSE: The City of Lake Elmo intends to establish, administer, maintain and regularly update an internal job evaluation hierarchy that is consistent with the Local Government Pay Equity Act. The city also intends to establish, administer, maintain and regularly update a pay structure covering all the jobs within the city and in line with the stated compensation strategy. The pay structure is reviewed regularly to ensure financial funding is available to administer the plan and that any changes in the plan are approved by the City Council. In addition, the city intends to maintain supplemental benefits (insurance, holiday/paid time off schedules, etc.) that meet state and federal laws, are competitive with the market, and fit within the city’s financial budget. II. ADMINISTRATIVE GUIDELINES A. Participation This policy outlines the guidelines for all non-represented city positions excluding elected officials, temporary or seasonal positions and paid on call firefighters. Compensation for seasonal or temporary employees and paid on call firefighters will be set by the City Council at the time of hire, or on an annual basis. B. Key Objectives of the Classification and Compensation Plan • Attract and retain qualified employees to provide services to city residents. • Maintain a plan that is consistent with the city’s compensation strategy; equitable and competitive. • Maintain a plan that is clear and easy to communicate to city employees, • Maintain compliance with the Minnesota Local Government Pay Equity Act. • Maintain compliance with all applicable local, State and Federal laws and regulations that affect the plan. • To do so efficiently and effectively thereby being fiscally responsible to the interests of the taxpayer. C. Accountability for Administration of the Plan The City Council has authority over the plan and must provide the final approval before the plan is implemented. The City Administrator (with guidance from the Administrative Services Director) oversees the implementation and administration of the plan as approved by the City Council. D. Plan Updates The Administration department will annually review all aspects of the Plan to determine the degree to which it remains consistent with the city’s total compensation philosophy. Annual review of the Plan will include reviewing, verifying, and updating as necessary, the administrative guidelines, plan components, job descriptions, job evaluations, and salary ranges. Any recommended changes due to internal organization modifications, external market factors, strategic planning, administrative considerations, or other relevant issues will be proposed to City Council in a timely manner. The position grades and salary range and steps established by this plan must be annually confirmed by the City Council. III. COMPENSATION PLAN ELEMENTS: A. Objective The City intends to provide its employees equitable compensation and financial incentives, to the extent permitted by law, to promote the attainment of the highest levels of performance and organizational contribution. The City recognizes that the Compensation Plan is a key factor in the City’s ability to attract, retain, and motivate well-qualified individuals to participate in the achievement of its objectives. Therefore, the City of Lake Elmo’s Compensation Plan is based on the principles of internal and external pay equity. B. Job Classification Job Classification is the process of determining the rank/grade of position descriptions. The City shall utilize a point-factor job evaluation methodology. The City has adopted Baker-Tilly’s SAFE® system to classify job descriptions. C. Job Evaluation Through the City’s job evaluation process, the city ensures that appropriate relationships between classifications and jobs are established and maintained over time through the application of periodic job description review processes and reorganization studies, when appropriate. D. Salary Structure The Compensation Plan consists of fifteen (15) salary grades with a corresponding salary range for each grade. Salary ranges shall have a minimum and maximum step with eleven (11) steps in each grade. There is an increase of 34% from the minimum to the maximum step. For every position subject to this plan, compensation must be assigned using the salary range and grade classification. In determining or evaluating compensation levels, the Administrative Services Director must maintain a schedule of comparative compensation amounts for all positions covered under the plan. For non-union employees, the salary grade applicable to a job classification shall be determined by the grade assignment of the job evaluation profile. E. Market Comparison • The City Council will determine the appropriate market to be used in developing this plan and in supplemental compensation reviews. • The primary labor market is currently defined as ten to eighteen cities chosen based on: - Proximity of location - Similarity in the type of services being provided - Population size • From time-to-time the City may recommend that other comparators should be used, where information from the primary labor market is considered insufficient to attract/retain specific positions or classification groups. F. Market Analysis The City Administrator may approve a market analysis for a job classification as requested by a Department Director or initiated by the Administrative Services Director. When a market analysis for a specific job classification indicates that the assigned salary range mid-point deviates, positively or negatively, from the market by more than 10%, the job classification may be placed at an established salary range that most closely corresponds to the applicable market rate. All market adjustments will be re-evaluated on a regular basis. G. New Hires New employees may be hired at a wage up to the midpoint of the pay grade. The City Administrator or appropriate department head may recommend new employees be hired at a rate above the midpoint of the pay grade for their classification based upon qualifications and experience, subject to approval by the City Council. A probationary employee may advance to the next pay step after satisfactorily completing six months of employment which meets performance expectations, based upon a recommendation from their supervisor subject to approval of the City Administrator. The employee will then follow the annual increases as defined in Section H. H. Annual Increases Subject to Council approval of the compensation plan, every year on or about January 1st, regular employees who have completed their probationary period may advance to the next pay step after satisfactorily completing another year of employment which meets the performance expectations until they reach the grade maximum. New hires who are in their probationary period at the time of the annual increase will not move to the next pay step until their 6th month anniversary, however, they will move to the corresponding step in the new salary range, i.e., if they are at step 3 in the current plan they will move to step 3 in the next plan. If an employee does not have satisfactory performance, they will not advance to the next pay step and may be placed on a performance improvement plan. Determination of satisfactory performance must be recommended to the City Administrator by the immediate supervisor on forms prescribed by the Administrative Services Director. Employees who are at or above the grade maximum will receive the predetermined cost-of-living-adjustment (COLA) based on a satisfactory performance review. I. Promotion A promotion is defined as the selection of an internal candidate through the competitive process into a position at a higher salary range of classification. The employee’s salary increase will generally be about 10% of their current step per pay grade promoted. The salary increase will be capped at around 20%, and the employee will be placed at the closest corresponding step in the new salary grade. Adjustments will be based on internal equity considerations and approved by the Administrative Services Director. Employees placed into a new position through promotion will enter a 6-month probationary period and may advance to the next pay step after satisfactorily completing the probationary period. J. Demotion Involuntary An involuntary demotion is defined as a reassignment from one position to another, which has a lower salary range or classification because of a performance-based consequence or other disciplinary procedure. The employee’s salary is subject to adjustment on a case-by-case basis as approved by the City Administrator. Voluntary A voluntary demotion is defined as the selection of an internal candidate through the competitive process into a position at a lower salary range or classification. The employee’s salary reduction will generally be no greater than 10% of their current step per pay grade reduced. The salary reduction will be capped at 20%. The employee will be placed at the closest corresponding step in the new salary grade. Adjustments will be based on internal equity considerations and approved by the Administrative Services Director. Reorganization If a demotion is the result of a reorganization or unforeseen organization or structure changes and if the affected employee’s salary is above the new salary range maximum, the salary is frozen until such time as the salary is within the new salary range. K. Reclassification A reclassification is defined as movement to another salary grade because of approved changes in job duties significantly modifying the position responsibilities. The City ensures that job descriptions are evaluated as changes to services, processes, and related job duties occur. Department Directors may request that a job description be evaluated by the Administrative Services Director. Positions may be reclassified with no change in salary grade, upward (higher classification/salary grade) or downward (lower classification/salary grade). When a position is reclassified to a higher salary grade, employees are eligible for a salary increase and placement in the new salary range at their current step (with the increase capped at 20%). Reclassification downward generally results in no immediate change to the employee's salary. The employee’s salary will be placed in the closest corresponding step on the salary range. If the employee’s salary is above the salary range maximum for the new classification, the salary is frozen until such time as the salary is within the new salary range. When downward reclassification results in an employee's salary exceeding the maximum of the new salary range, the salary is not increased for any reason, including annual COLA increases, until such time that the salary is within the designated salary range. Reclassification of a job class does not change the employee’s anniversary date. L. Career Development Increases The City has developed a procedure to provide a step increase to recognize the attainment of career specific certifications, licenses, and developmental milestones that assure that the City’s career positions are paid comparable with those in the primary labor market. Such a structure enables existing employees in career jobs within the City to receive a step increase in addition to the annual increase and enables the City to target its pay to those employees who grow in skill and capability. Career Development Increases need to be recommended by the Department Director and approved by the City Administrator and Administrative Services Director and requested through the Completion of Career Development Request for Step Increase form. M. Modifications or Exceptions The City administrator may approve exceptions to the plan. These will generally involve internal and labor market equity considerations, salary adjustments, or unusual circumstances and will occur only upon the recommendation of the Administrative Services Director and upon approval of City Council. N. General Provisions Nothing within this compensation plan is a guarantee of employment and compensation, and nothing is to be construed as a commitment to continue the City of Lake Elmo Compensation Plan for more than one calendar year at a time. All components of this plan are set forth as guidelines to assist in establishing appropriate compensation. The provisions of this plan supersede all other compensation considerations. Compensation schedules will be maintained and updated as appendices to this plan following plan provisions. Appendix I: Position Grades Appendix II: Salary Range and Steps Effective 1/1/25 Department Title FLSA Status Grade Administration City Administrator Exempt 14 Fire Fire Chief Exempt 13 Public Works Public Works Director Exempt 13 Administration Administrative Services Director Exempt 12 Finance Finance Director Exempt 12 Community Development Community Development Director Exempt 12 Fire Assistant Fire Chief/Fire Inspector Exempt 10 Public Works Assistant Public Works Director Exempt 10 Community Development Building Official Exempt 10 Finance Finance Coordinator Exempt 9 Community Development Senior Planner Exempt 9 Administration City Clerk Exempt 8 Community Development Plan Reviewer Exempt 8 Public Works Lead Worker Non - Exempt 8 Community Development Building Inspector Non - Exempt 7 Community Development Planner Non - Exempt 7 Public Works Operator I Non - Exempt 6 Fire Firefighter Non - Exempt 5 Administration Deputy City Clerk Non - Exempt 5 Finance Payroll Clerk Non - Exempt 5 Finance Fianance Analyst/Utility Billing Clerk Non - Exempt 5 Public Works Operator II Non - Exempt 5 Community Development Code Enforcement Official Non - Exempt 4 Community Development Permit Technician Non - Exempt 4 Community Development Planning Assistant Non - Exempt 4 Public Works Operator III Non - Exempt 4 Attachment 4 City of Lake Elmo, MN 2026 Salary Range and Steps Grade 1 2 3 4 5 6 7 8 9 10 11 1 $40,073 $41,275 $42,513 $43,789 $45,103 $46,456 $47,849 $49,285 $50,763 $52,286 $53,855 $19.27 $19.84 $20.44 $21.05 $21.68 $22.33 $23.00 $23.69 $24.41 $25.14 $25.89 2 $44,078 $45,400 $46,763 $48,166 $49,612 $51,100 $52,634 $54,214 $55,840 $57,516 $59,242 $21.19 $21.83 $22.48 $23.16 $23.85 $24.57 $25.30 $26.06 $26.85 $27.65 $28.48 3 $48,487 $49,942 $51,440 $52,984 $54,574 $56,211 $57,897 $59,634 $61,424 $63,266 $65,164 $23.31 $24.01 $24.73 $25.47 $26.24 $27.02 $27.84 $28.67 $29.53 $30.42 $31.33 4 $53,337 $54,937 $56,586 $58,283 $60,031 $61,832 $63,687 $65,598 $67,566 $69,593 $71,680 $25.64 $26.41 $27.20 $28.02 $28.86 $29.73 $30.62 $31.54 $32.48 $33.46 $34.46 5 $58,671 $60,431 $62,243 $64,111 $66,035 $68,016 $70,057 $72,159 $74,323 $76,553 $78,850 $28.21 $29.05 $29.92 $30.82 $31.75 $32.70 $33.68 $34.69 $35.73 $36.80 $37.91 6 $64,541 $66,477 $68,472 $70,525 $72,640 $74,819 $77,063 $79,374 $81,755 $84,208 $86,734 $31.03 $31.96 $32.92 $33.91 $34.92 $35.97 $37.05 $38.16 $39.31 $40.48 $41.70 7 $70,993 $73,122 $75,316 $77,575 $79,903 $82,300 $84,769 $87,313 $89,933 $92,630 $95,409 $34.13 $35.15 $36.21 $37.30 $38.42 $39.57 $40.75 $41.98 $43.24 $44.53 $45.87 8 $78,092 $80,434 $82,847 $85,333 $87,893 $90,530 $93,246 $96,044 $98,925 $101,893 $104,951 $37.54 $38.67 $39.83 $41.03 $42.26 $43.52 $44.83 $46.17 $47.56 $48.99 $50.46 9 $85,902 $88,479 $91,133 $93,867 $96,683 $99,584 $102,571 $105,648 $108,818 $112,082 $115,445 $41.30 $42.54 $43.81 $45.13 $46.48 $47.88 $49.31 $50.79 $52.32 $53.89 $55.50 10 $94,493 $97,328 $100,247 $103,254 $106,352 $109,541 $112,827 $116,212 $119,699 $123,290 $126,988 $45.43 $46.79 $48.20 $49.64 $51.13 $52.66 $54.24 $55.87 $57.55 $59.27 $61.05 11 $103,940 $107,058 $110,270 $113,578 $116,985 $120,495 $124,110 $127,833 $131,666 $135,617 $139,685 $49.97 $51.47 $53.01 $54.60 $56.24 $57.93 $59.67 $61.46 $63.30 $65.20 $67.16 12 $114,333 $117,763 $121,297 $124,936 $128,684 $132,545 $136,521 $140,617 $144,835 $149,180 $153,655 $54.97 $56.62 $58.32 $60.07 $61.87 $63.72 $65.64 $67.60 $69.63 $71.72 $73.87 13 $125,766 $129,539 $133,425 $137,428 $141,552 $145,799 $150,174 $154,680 $159,320 $164,100 $169,023 $60.46 $62.28 $64.15 $66.07 $68.05 $70.10 $72.20 $74.37 $76.60 $78.89 $81.26 14 $138,344 $142,494 $146,769 $151,173 $155,708 $160,380 $165,191 $170,147 $175,252 $180,510 $185,925 $66.51 $68.51 $70.56 $72.68 $74.86 $77.11 $79.42 $81.80 $84.26 $86.78 $89.39 15 $152,179 $156,745 $161,447 $166,291 $171,279 $176,418 $181,711 $187,162 $192,777 $198,560 $204,518 $73.16 $75.36 $77.62 $79.95 $82.35 $84.82 $87.36 $89.98 $92.68 $95.46 $98.33 City of Lake Elmo Compensation Update Informational Meeting March 3, 2026 Agenda •Introduction –Firm –Update •Phases •Questions Flaherty & Hood, P.A. Brandon Fitzsimmons – Attorney & Shareholder Ethan Rundquist – Compensation and HR Analyst Cassandra Stein – Data Analyst F&H Background •Provides legal, analytical, public affairs, and media relations services to primarily Minnesota units of government •Performed classification and compensation services for numerous Minnesota public entities –Primarily Minnesota –Entities serve populations of 1,000 to 300,000 Compensation Update Introduction •Flaherty & Hood, P.A. is under consideration for a Compensation Update for the City of Lake Elmo •This is an information overview for the City of Lake Elmo’s City Council on the proposed study What is Classification & Compensation? Classification •Systematic study of jobs to determine: –Activities and responsibilities –Personal qualifications necessary –Conditions under which the work is performed –Each job’s relative importance and worth to other jobs internally and externally What is Classification & Compensation? Compensation •Establishes: –How an organization manages paying employees for work –The compensation amounts paid to employees Approach to Studies •Customized •Comprehensive •Comprehendible •Cost-effective Why Conduct the Compensation Update? •Organizations must ensure that each job in the organization interrelate to each other so that it can: –Comply with Minnesota’s pay equity law –Optimize achievement of the organization’s mission, goals and objectives –Operate effectively and efficiently –Determine the relative worth and appropriate pay rate for jobs •Internally equitable •Market competitive •Uniform and consistent structure •Affordable Why Conduct the Compensation Update? •To accomplish those objectives, organizations need a clear, consistent, and comprehensive job classification and compensation system •The study will analyze these items and provide a foundation for making any necessary changes to the current classification and compensation system ProcessMany Months Phase A – Review Phase B – Job Analysis & Evaluation Updating Phase C – Market Survey & Analysis Phase D – Pay Structure & Schedule Phase E – Pay Equity Compliance Testing Phase F – System Implementation Phase G – Final Report Phase H – Training on System Maintenance & Updating Phase A – Review •Review the current classification and compensation system, which includes: –Job descriptions –Job ratings and points –FLSA exempt status –Current classification and compensation system and structure –Pay equity report –Other governing documents Phase A – Review Communication •Written and this in-person presentation as introduction •Various information will be communicated at various times taking into account law, Council and management direction, and labor negotiations Phase B – Job Analysis & Evaluation Updating •Internal and Firm review of job descriptions •Update job descriptions and/or job evaluation points that measure skill, effort, responsibility, working conditions, and other relevant work- related criteria for each job Position Classification Evaluation •Required by MN pay equity law •Define text for uniform compensable factors and sub- factors for evaluating jobs •Establish points for factors and sub-factors –Points are based on the qualities of the job - not the individual or individuals that perform the job •Use SAFE Job Evaluation System Phase C – Market Survey & Analysis •Establish market entities and sources •Determine benchmark jobs to compare •Draft and submit market surveys •Compile, review, and analyze market compensation, including: –Base Wages –Health Insurance –Dental Insurance –Call Back Pay –On-Call Pay –PTO –Vacation •Draft market comparison data spreadsheets Phase D – Pay Structure & Schedule •In developing modifications, F&H will work with Lake Elmo to ensure base pay is: –Internally equitable –Legally compliant –Externally competitive –Affordable •Analyze the impact to the City of Lake Elmo –City-wide –Individual employee MN Pay Equity Law Requirements •Job evaluation system •Establish comparable work value for each job class (i.e., points) •Maintain and update points •Compensation for job class reasonable relationship to points –Equitable based on gender •Submit report to State •Compliance with law based on report •Monetary and equitable penalties if not comply Phase E – Pay Equity Compliance Testing •Data for use in Minnesota Pay Equity reporting •Prepare and provide to the City of Lake Elmo a complete pay equity report on proposed job pay to ensure pay equity compliance Phases F & G – Final Report & Implementation •F&H will prepare a final report describing the study results and implementation recommendations •Communications to employees and bargaining units •Plan for classification and compensation updating Phases F & G – Final Report & Implementation •Draft implementation outline •Best approach •Timeline •Communications to employees and project team Phase H – Training on System Maintenance & Updating •Conduct training for management in maintaining and updating: –Job descriptions –Evaluation points –Pay structure adjustments •Recommend process for reclassification requests •F&H available for maintenance and updating questions Questions? 525 Park Street | Suite 470 | St. Paul, MN 55103 | 651-225-8840 | Fax 651-225-9088 | FH@flaherty-hood.com QUOTE To: Nicole Miller, City Administrator, City of Lake Elmo From: Ethan T. Rundquist, Compensation and HR Analyst Brandon M. Fitzsimmons, Shareholder Attorney Date: February 20, 2026 Re: Quote for Compensation Update - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Flaherty & Hood, P.A. hereby submits this quote to conduct a Compensation Update for the City of Lake Elmo, which includes a description of the purpose, and need for the update, the scope of services to be provided, and costs. Purpose and Need A governmental unit’s success depends on its employees’ performance. To recruit and retain a productive and reliable workforce, governmental units need to appropriately value and compensate employees internally and externally. In establishing employee compensation, governmental units must ensure that each job in the governmental unit interrelate to each other so that a governmental unit can: optimize achievement of the governmental unit’s mission, goals and objectives; determine the relative worth and appropriate pay rate for jobs; and comply with the Minnesota Pay Equity Act (PEA), Minn. Stat. §§ 471.991-.999. The PEA requires that every Minnesota governmental unit establish compensation for female-dominated classes that is not consistently below the compensation for male- dominated classes of comparable value of work measured by the skill, effort, responsibility, and working conditions normally required in the performance of the work. To achieve these objectives, Minnesota governmental units need to establish job classification and compensation systems, which establish job activities and responsibilities, job ratings (e.g. points), and appropriate pay for each job in the governmental unit. Job classification involves the systematic update of jobs to determine which activities and responsibilities they include, the personal qualifications necessary for performance of the jobs, the conditions under which the work is performed, and each job’s relative importance and worth to other jobs internally (e.g., points) and externally. Compensation, which includes the wages and salary paid by employers to employees in exchange for work, along with other total rewards, i.e., benefits, work-life effectiveness, recognition, performance management, and talent development, are the primary indicators of the value the governmental unit places on a job. A compensation system involves establishing how the governmental unit manages compensating employees. Flaherty & Hood, P.A.’s job classification and compensation update will review the city of Lake Elmo’s job classification and compensation system, analyze internal and external information and make recommendations to ensure the City of Lake Elmo’s classification and compensation system is: • Understandable • Flexible and updatable • Cost-effective • Internally equitable • Legal and defensible • Externally competitive Page 2 of 7 Base Services and Timeline Flaherty & Hood, P.A.’s Compensation Update for City of Lake Elmo will include the following services with the following timeline based on up to 25 positions being included: PROJECT PHASES Phase Description Timeline after Start A. Review • Review City of Lake Elmo’s job classification and compensation system, which includes: o Job descriptions o Job ratings/points o FLSA exempt status o Current classification and compensation system and structure o Pay equity report o Other governing documents (e.g., labor contracts, ordinances) 0-6 Weeks Introduction • Draft execution guides and proposed responses for management to frequently asked questions (FAQs) about the update • Draft communications to employees describing the classification and compensation update 0-6 Weeks B. Job Analysis and Evaluation Updating • Internal and Firm review of job descriptions • Update job descriptions and/or job evaluation points that measure skill, effort, responsibility, working conditions, and other relevant work-related criteria for each job 2-8 Weeks C. Market Survey and Analysis • Establish market entities and sources based on statistical analysis and market selection questionnaire to City of Lake Elmo • Determine benchmark jobs to compare • Draft market survey for entities to complete and submit • Compile, review and analyze market compensation data for all job classifications from market survey sources, such as League of Minnesota Cities salary survey, including: o Wages: base pay, pay structure, longevity pay o Health and Dental Insurance: employer contributions o Specialty pay: Call Back Pay and On-Call Pay o PTO and Vacation o Additional wage or benefit items for additional cost • Draft market comparison data spreadsheets in Excel and discuss with City of Lake Elmo’s management 6-12 Weeks Page 3 of 7 PROJECT PHASES Phase Description Timeline after Start D. Pay Structure and Schedule • Utilizing statistical analysis and Base Pay Development Questionnaire submitted to and completed by the City of Lake Elmo, analyze internal scoring compared to external market survey data to develop basis on which to update or build pay structure, including addressing pay compression • Draft proposed modifications to pay structure and schedule that include pay ranges and movement within ranges, provide for meaningful compensation growth, and address compression • Draft analysis of City of Lake Elmo-wide cost and individual employee wage impact of the proposed pay structure in Excel • Analyze any equity issues 12-16 Weeks E. Pay Equity Compliance Testing • Compile data for use in Minnesota Management and Budget reporting system • Prepare and provide to the City of Lake Elmo a complete pay equity report on proposed job pay to ensure pay equity compliance 12-16 Weeks F. System Implementation • Draft outline summarizing the best possible approach to coordinating the recommended pay plan with current plans, including timelines for implementation, and communicating it with employees and soliciting comments from project team 12-16 Weeks G. Final Report • Prepare a final report describing the update results and implementation recommendations • Present findings and recommendations, including written and/or oral reports to City of Lake Elmo’s City Council, employee groups, and/or unions • Draft o Recommended revisions to policies, including updated or new policy to address modifications to or addition of job classifications o Performance evaluation process, program, and form o How-to and execution guides and usable electronic spreadsheets for updating classification and compensation components 16-18 Weeks Page 4 of 7 PROJECT PHASES Phase Description Timeline after Start H. Training on System Maintenance and Updating • Conduct training for the City of Lake Elmo’s management on maintaining and updating job descriptions, job evaluation points, and adjusting the pay structure by utilizing the compensation plan, job evaluation and compensation how-to guides and electronic spreadsheets • Provide recommendation on a system for determining the validity for requests for reclassification and/or compensation changes • Respond to inquiries by phone on maintenance and updating Post- Update Page 5 of 7 Costs The Base Services listed above can be provided by Flaherty & Hood, P.A. as a whole for a substantially discounted price of $8,750. The costs would include the services above, travel time, mileage, and copy costs for internal use. Flaherty & Hood, P.A. proposes to bill the employer for 1/3 of the Base Services plus Additional Study Services lump sum cost up-front, 1/3 8 weeks after start of update based on satisfactory progress, and 1/3 upon completion of Phase I. Other Services Additional Study Services Flaherty & Hood, P.A. can provide the following additional services as part of the update city-wide: Service Total Cost Employee Presentation Prepare PowerPoint and present to incumbent employees explaining the Compensation Update $1,000 Employee Interviews Interview using position questionnaires for incumbent employees addressing the skill, effort, responsibility and working conditions of their position $hourly up to $5,000 Variable Pay System Establish supplemental variable pay system, such as performance pay, merit pay, and/or skills or competency pay $2,500 Additional Market Data Compile, review and analyze organizational or market compensation data other than wages, wage structure, and health insurance contributions. You should complete and submit to Flaherty & Hood such items in the attached Wages and Benefits, and Organizational Survey Items form. $700 per category Page 6 of 7 Additional Job Classifications or Same Job Classifications after Study is Complete Service Total Cost System Maintenance and Updating • Conduct job analysis and job evaluation for current or new job classifications through 2 years after Base Services completed (up to 30 job classifications) • Conduct city-wide market survey within 2 to 3 years after Base Services completed $5,000 Individual Job – Full Analysis and Evaluation Draft, review, and analyze job analysis questionnaires for incumbent employee, if any, and management addressing the skill, effort, responsibility, and working conditions of the position; draft new or updated job description; and establish internal rating after initial job classification rated $750 Individual Job – Job Evaluation Establish points and provide analysis after initial job classification pointed $350 Individual Job – Market Survey Compile, review, and analyze market compensation data, including wages, wage structure, and health insurance benefits $1,000 Flaherty & Hood, P.A. proposes to bill the employer for the total cost of these services after the service is complete. Fees and expenses incurred by Flaherty & Hood, P.A. in providing all services to the City of Lake Elmo will be billed as incurred on a monthly basis. Items in addition to those above or other labor relations, employment law, and human resources services are available to Austin Utilities consistent with our reduced CGMC labor and employment hourly rates. Consultants Ethan Rundquist, Compensation and HR Analyst Ethan Rundquist is a Compensation and HR Analyst with the law firm of Flaherty & Hood, P.A. Ethan compiles, analyzes, and communicates data for job analysis, job evaluation, market surveys, compensation, pay equity, and organizational structures. Ethan has a Bachelor of Arts Degree in Finance and Management from The College of Saint Scholastica. He is a member of Society for Human Resources Management, Twin Cities Compensation Network, and World at Work Compensation Institute. Page 7 of 7 Brandon M. Fitzsimmons, Shareholder Attorney Brandon is a shareholder attorney and head of Flaherty & Hood, P.A.’s labor, employment law, and human resources practice. Brandon provides legal advice and representation services for public entities throughout Minnesota in labor relations, employment law, and human resources matters, including job classification, compensation, and pay equity issues and labor negotiations. Brandon has his Bachelor of Arts in Political Science with Distinction, cum laude, from Creighton University and his Doctor of Jurisprudence (J.D.) from William Mitchell College of Law. Brandon is a member of the National and Minnesota Public Employer Labor Relations Associations, SHRM, and MSBA - Labor and Employment Law Section. Cassandra Stein, Data Analyst Cassandra Stein is a Data Analyst with the law firm Flaherty & Hood, P.A. Cassandra compiles, analyzes, and communicates data for job analysis, job evaluation, market surveys, compensation, pay equity, and organizational structures. Cassandra has an Associates of Applied Science degree in Paralegal Studies. Clients Flaherty & Hood, P.A. has performed, or is currently performing, classification and compensation services for public entities that follow (in alphabetical order): • City of Albert Lea • City of Alexandria • City of Austin • Austin Utilities • City of Bagley • City of Barnesville • City of Blue Earth • City of Brainerd • City of Cloquet • City of Detroit Lakes • City of Dilworth • City of Goodview • City of Hudson • City of International Falls • City of La Crescent • City of Lake Shore • City of Lewiston • City of Little Falls • City of Mapleton • City of Melrose • MVTA • City of Moorhead • Moorhead Public Service • Mower County • City of New Hope • City of New Ulm • City of Oakdale • City of Park Rapids • City of Pelican Rapids • City of Perham • City of Plainview • City of Princeton • City of St. Charles • City of St. Joseph • City of Stillwater • City of Two Harbors • City of Wadena • City of Waseca • Wash. Cnty. CDA • City of Wells • City of Windom • City of Winona • City of Winsted • City of Worthington If you have any questions related to this initial quote or would like to discuss the proposed scope of services, please contact us at your convenience at (651) 259-1930 or etrundquist@flaherty-hood.com. Thank you for your consideration and the opportunity to submit this initial quote. Lake Elmo CITY OF LAKE ELMO SERVICE PROPOSAL July 17, 2025 DR. TESSIA MELVIN Lake Elmo PAGE 2 EXECUTIVE SUMMARY July 17, 2025 Nicole Miller, City Administrator Lake Elmo RE: Proposal for Job Classification and Compensation Services Dear Ms. Miller: Thank you for the opportunity to submit this proposal to the City of Lake Elmo. Based on our experience with the type of work outlined in the proposal, we are confident our experience and expertise will allow us to address your needs, goals and exceed your expectations. Three major factors distinguish DDA Human Resources from other providers: • All our employees come with years of public sector experience. We specialize in government, and we know first-hand the challenges of managing public sector compensation. This helps us deliver practical, workable solutions. • We believe that classification and compensation can and should be managed as a practical, common-sense process – not as some theoretical or statistical exercise in regression analysis. We will help you design a compensation system that is technically solid and one you understand. We measure our effectiveness as a consulting firm not by studies completed, but by studies that are actually implemented. • We think a compensation should be actively managed as an ongoing program – not neglected and then fixed with a major compensation study like this. With proper on-going maintenance support, major disruptive and expensive compensation studies are unnecessary. We are pioneers in providing ongoing maintenance solutions. Our firm’s goal is to be known as the best human resources consultant in Minnesota. There is only one way to get there – by delivering exceptional service. We will do our very best to earn your trust, your respect, and your future business. Our success has been driven by utilizing staff that is experienced and well-trained in government planning, human resources, payroll, compensation systems and market analysis. We understand that each client has a specific project scope. We will customize our approach with our attention to detail, collaboration with your staff, transparent and customized communications. Our overall project approach provides efficient and effective outcomes and sets ourselves apart in our ability to value your organization. Involvement with Personnel Our approach to this project is to engage staff to ensure that we have an understanding of the project, each individual’s role in the project, overall expectations and needs and deadlines. Throughout the project, there will be periodic meetings with staff, Project Team, Working Committee and other groups as needed to share information, solicit input and provide updates. We believe communications is important and will customize a plan that suits the organization. Your internal staff and leadership are key to truly understanding your organization and developing solutions that can be implemented. Commitment to Meet Your Needs Lake Elmo PAGE 3 We assist all our clients in implementing a solution that works. In order to do that, we will do the following for you: • Present a clear project plan. • Use portal technology to share and collaborate documents. • Provide an environment that solicits and welcomes ideas and strategies from the employees and designated teams. • Present recommendations in a clear, concise manner. We use non-technical terms and examples to gain employee buy-in. • Respond to project team needs in a timely manner. We have included cost for each option for up to 35 positions, as follows: Option Services Total Cost Not to Exceed 1 Compensation Study/ Market Analysis $9,000 2 Compensation Study/ Market Analysis Amend or Establish Compensation System $13,000 3 Compensation Study/ Market Analysis Amend or Establish Compensation System Implementation Analysis and Strategy for Compensation $16,000 4 Full Classification and Compensation Study $27,125 5 Ongoing Maintenance $8,500 Contents of Proposal • Our Firm and Qualifications • Our Philosophy for Compensation and Classification Studies • Our Service Team • References • Project Plan and Timeline • Project Investment • Our Clients • Our Offices OUR FIRM AND QUALIFICATIONS Our parent company, David Drown Associates, Inc., has provided consulting services to over 450 units of government across Minnesota since 1997. Over these years, DDA Human Resources staff has gotten to Lake Elmo PAGE 4 know government well and we continually strive to keep our services practical, useful, and up to date. Our history and corporate culture have grown from an honest desire to serve public sector clients in a practical and common-sense manner. We are not your ordinary consultant. The DDA Human Resource difference is: In addition to our work with various cities, counties and government entities, we partner with organizations that include League of Minnesota Cities, Association of Minnesota Counties (AMC) and Pay Equity. As part of our work with AMC, we provide the Technical Human Resource Program. And we have teamed up with Pay Equity to help educate entities on reporting, classifications, and compliance. Other Services We Provide Executive Searches Our approach to conducting executive searches is a simple one. We want to find the best fit for your organization. This is accomplished by listening to what you are saying and building the entire search process off that foundation. We strive to gather a significant amount of background information so, when the elected body ultimately approves moving forward with the search, we will have fully encapsulated your expectations. Organizational Analysis Creating an organizational structure that maximizes service effectiveness is challenging. In order for the City or County to function in a lean, efficient manner, there must a structure in place to capitalize on the organization’s most valuable resource – the people. Multi-Agency Services Cities and Counties continue to face financial challenges created by a growing list of mandates and service expectations and a contraction of available financial resources. This dilemma can sometimes be solved by creating service partnerships with other units of government. We have experience evaluating options and providing a path forward for specific services or large parts of the organization. Lake Elmo PAGE 5 DDA's proprietary compensation model incorporates the latest data on competitive market conditions with data on your organization. Using this model, we can calibrate and compare your current wage ranges with the market and provide trend lines clearly showing how your wage scales stack up. You will have the information you need to make informed decisions. We approach compensation study work as a practical, common-sense process – not as some theoretical or statistical exercise in regression analysis. We collect information, analyze it, and communicate our findings in simple understandable ways. Our honest goal is to help you design a compensation system that is technically solid, is one you actually understand, and one that works better than what you have now. We measure our effectiveness as a consulting firm not by studies completed, but by studies that are actually implemented. We do this through customizing your competitive pay philosophy. Internal Indicators • Benefits • Incentives • Healthcare • Retirement • Vacation/ Sick time • Work Balance • Flexibility External Indicators • Benchmarks (size, tax capacity, services, etc.) • Level of Responsibility • Reporting Relationships • Experience Required • Size of Organizations • Organizational Structure • # of Employees Supervised Lake Elmo PAGE 6 OUR PHILOSOPHY FOR COMPENSATION AND CLASSIFICATION STUDIES Government is in the service delivery business, and quality service requires quality employees. An effective compensation system will help you attract and keep talented employees. Likewise, an out-of- date or ill-conceived compensation system will produce turnover and hamper efforts to recruit quality replacements. In the real world of limited resources, government is increasingly expected to do more with less. Accordingly, a community’s pay philosophy must strike a reasonable balance between a desire to pay your good employees well to retain their good services, while at the same time controlling costs to keep faith with the taxpayers. Designing a pay system is not easy, every community is different, and a “one size fits all” approach seldom produces a good result. We approach compensation study work as a practical, common-sense process – not as some theoretical or statistical exercise in regression analysis. We collect information, analyze it, and communicate our findings in simple understandable ways. Our honest goal is to help you design a compensation system that is technically solid, is one you actually understand, and one that works better than what you have now. As we work with you to build the best compensation system for your community, we keep four very practical objectives in mind: DDA Human Resources believes your compensation and classifications systems should be based on: 1. Updated job descriptions 2. Market Competitiveness set by a decided pay philosophy 3. Pay Equity Compensation and Benefits •Competitive to hire, retain, and motivate qualified employees Internal Equity •Satisfy MN Pay Equity Requirements Positive and Transparent •Be open and fair to employees, managers and unions Customized •Establish a pay philosophy based on your organization •Assist in the attraction of the most qualified professionals available. •Retain talented employees. A compensation program is a structured pay plan that is used to: •Job descriptions •Pay equity of job descriptions (hierarchy of jobs) •Market analysis of base pay •Market definition influenced by industry, size, geographic location, and tax capacity •Pay philosophy A pay plan is developed through: •Influenced by industry, size, geographic location and tax capacity •Includes objectives and statement of where organization wants to be in relation to market Compensation/pay philosophy is set by the Board: Lake Elmo PAGE 7 OUR FIRM AND QUALIFICATIONS DDAHR maintains a staff of 10 individuals. We also maintain relationships with several independent consultants in key specialty areas. Here is the Team we have assembled for your project: Dr. Tessia Melvin –Department Head Tessia heads the compensation and classification (C&C) services area of DDAHR. Over the past six years, Tessia has served as lead analyst on over 65 separate C&C engagements with Minnesota communities. She brings to the position nearly 13 years of diverse service to city and county government. As a City Administrator in Maple Plain, Minnesota, Tessia drafted five-year budgets, capital improvement plans, infrastructure improvement plans, and led strategic planning program. Working in Dakota County, Minnesota, Tessia provided leadership training, managed their performance management system, and worked with compensation and benefits. Dedicated to local governments and continued learning, Tessia earned her doctorate in Public Administration. Mark Goldberg, MA-HRR – Principal Consultant Mark Goldberg is a Principal Consultant with the firm. Mark’s experience is broad and deep. He has held a variety of compensation leadership positions in media, high tech, manufacturing, local government organizations and the University of Minnesota. In addition, Mr. Goldberg has over 6 years of experience consulting with major public sector organizations around the country with a focus on project in Minnesota such as Koochiching County, the city of Red Wing and the City of Aitkin. He has a master’s degree in industrial and labor Relations from Cornell University and a bachelor’s degree in human resource administration from Muhlenberg College. David Drown – Technical Support David is the founder and owner of DDA. David will lend his technical and statistical expertise to the team to manage the collection and analysis of market data; help calibrate your compensation plan and calculate budget impacts. David received his undergraduate degree in civil engineering and served in local government as a registered civil engineer early in his career. He also holds an MBA in finance from the Carlson School of Management and has served as a finance and economic development consultant to numerous cities and counties across the State. Kelly Jones – Technical Support Kelly received his Bachelor of Arts degree in Psychology and his Master of Science degree in Industrial and Organizational Psychology from Saint Cloud State University in Saint Cloud, Minnesota. Prior to entering the field of compensation, he served as a project coordinator and talent management specialist for Sleep Number and Robert Half. Kelly has spent the last 3 years as a technical analyst and compensation consultant, while assisting dozens of Cities and Counties across the United States with their compensation and classification needs. His work will be primarily focused on data collection and analysis, while also assisting the DDA team with any ongoing project needs. Tom Blakesley – Technical Support Tom is the newest member of the DDA team. Prior to joining DDA, Tom worked extensively in client/customer relations. He also brings experience in working with and analyzing business data in the private sector. He will be primarily working on data collection and analysis and providing a great deal of the initial groundwork and research for classification and compensation studies. Lake Elmo PAGE 8 Supporting Team Members (Our Bench) Melanie Ault Melanie Ault brings to DDAHR over 20 years of experience leading Minnesota county human resources and labor relations operations with additional experience at the city, regional, and state levels. Melanie joined DDAHR in 2017, after serving as Washington County’s HR Director. You might recognize her by her passion for examining pending legislation and its ramifications for the public sector. Melanie holds BA, MAPA, and JD degrees, with further education in public administration. She is an avid supporter of professional organizations, serving on the state and national levels. She loves making new connections and looks forward to helping you find answers and ideas. Melanie is one of our AMC Human Resources Technical Assistance Program staff. George Gmach George has been doing classification and compensation study work in Minnesota for 30 years. He worked with the Stanton Group for 12+ years with management responsibility for salary and benefit surveys and compensation consulting. His experience has crossed multiple industries and included private, non-private and public sectors. George also worked at Employers Association and its successor for 16 years. During his career, he has designed and conducted several hundred compensation and benefit surveys and has implemented multiple compensation programs in large and small organizations across all sectors. He designed and modified job evaluation systems and implemented them in the public sector. He has worked with the Minnesota Pay Equity Statutes since their inception. In addition, he is a military veteran who served as a combat medic in Vietnam. REFERENCES Reference #1: City of Mankato, Minnesota Contact: Gwen Campbell, Communications and HR Manager 952-443-4230 gcampbell@ci.victoria.mn.us Contract dated: May 15, 2019 – completed October 2019, we continue to provide ongoing maintenance Scope of Services: This was a full-service class and comp study for a rapidly growing suburban community. We updated all job descriptions including several new job titles; classified all job titles using DDA’s JET system, completed a market analysis of 14 benchmark communities (93% participation) and 5 “spotlight communities”, evaluated two alternative salary plans with pay ranges calibrated at 100% of benchmark averages, and provided an implementation plan with employee-by-employee grade/step assignments and a calculation of budget impact. Victoria says they plan to enroll in DDA’s ongoing service program. Reference #2: City of Fridley, MN Contact: Becca Hellegers, Employee Resources Manager, 763-572-3507, Becca.Hellegers@FridleyMN.gov Contract Dated: February 2020 – December 2020, they have entered an ongoing maintenance contract with us Scope of Services: DDA was originally engaged to complete a market study only of wages paid to 97 position descriptions. The work plan was expanded to have us perform a full classification and compensation study for all positions, classifying all jobs and designing a new pay plan for the City. Lake Elmo PAGE 9 Reference #3: City of Golden Valley, MN Contact: Kirsten Santelices, HR Director 763-593-3989 ksantelices@goldenvalleymn.gov Contract Dated: January 2020 – completed December 2020, we continue to provide ongoing maintenance Scope of Services: All job titles were reclassified using the JET evaluation system, and several employee challenges were reviewed and resolved. Market wage study revealed that the current pay plan wages averaged about 5% below the benchmark average. We developed a new pay plan with expanded steps, reviewed several approaches for implementation, and ultimately arrived at a plan that worked within the City’s limited budget. Reference #4: Rochester, MN Contact: Leena Murphy, Senior HR 507-328-2561 lmurphy@rochestermn.gov Contract Dated: October 2021 for ongoing maintenance Scope of Services: This is an example of a client engagement with a scope of services looking to maintain their current classification system. We learned a new classification system, their job positions and are able to maintain their pay philosophy, job descriptions and maintain competitive pay without having to complete an entire study. Lake Elmo PAGE 10 PROJECT PHASE Project Orientation The first step of the project is to review and analyze data provided by the client. This includes any existing job description, job evaluation system, policies, pay philosophies and pay strategies, current compensation model, pay equity and any other data the client has available. We will discuss strengths and weaknesses of the current compensation and classification systems and identify possible barriers to implementing and maintaining change. ▪ Project Administration: Meeting with Project Team to develop and confirm detailed project schedule and review system history/materials. ▪ Define Communication Strategy: Partner with the client to design a communication strategy that combines best practices in the industry with practical applications and tools. Create necessary stakeholder teams to assist with communication (Project Team, Working Committee, etc.) ▪ Employee Orientation Sessions (optional): Conducted virtually, with one session recorded so any employee who is unable to attend can see the information presented. After this review, we will meet with the client to discuss project expectations, define strategic goals and objectives, identify current challenges and discuss timeline. Position Review Using the client’s existing job descriptions and Job Evaluation system, our team will conduct a review and analysis of the overall compensation structure with a focus on: ▪ Opportunities for improvement or areas of risk ▪ Alignment of compensation and performance with management philosophies ▪ Identification of current or potential pay compression, pay equity, or bargaining issues. ▪ Identification of any ADA, FLSA and other State and Federal Requirement concerns ▪ Identification of job classification and industry mismatch. We have worked with a variety of job evaluation systems and is experienced in many compensation models. This phase of the project will include meeting with leadership to understand and discuss any noted recommendations and identified challenges moving to the next phase of the project. Labor and Market Analysis We will work with Project Team to confirm the labor market and identify comparable organizations and gather data from various sources. We will utilize the data that we have collected from around the state, supplemented by additional survey sources to provide updated and accurate wage information. ▪ If we do not have data from a particular entity selected by the City/County, we will reach out to that organization and ask them to provide us with a current roster. ▪ We will collect detailed wage information on all jobs that you have in common with these communities – not just a selected list. ▪ We will organize the results of this analysis using a series of graphs and charts that are designed to clearly show how your current pay ranges and wages compare to those of benchmark entities. This is the information needed to develop a pay. Lake Elmo PAGE 11 structure that balances both internal and external equity and assures compliance with State Pay Equity Compensation Standards. Pay Grid Calibration All compensation and market adjustment recommendations will be evaluated to calculate reliable implementation costs. We will provide 2 recommendations. ▪ We will provide recommendations and options for either an adjustment of your existing compensation plan, or a replacement plan that produces a better match with your compensation philosophy. ▪ We will fine tune the plan to establish fair and equitable compensation relationships within and outside the organization that are workable within a union and non-union environment. ▪ We will provide system testing to ensure that any option proposed will comply with the State’s pay equity standards and Federal requirements. Implementation Cost Analysis All compensation and market adjustment recommendations will be evaluated to calculate reliable implementation costs. ▪ We will outline transition options and next steps/costs. ▪ We will evaluate the cost/budget implications of up to two (2) alternative implementation strategies that consider your current budget constraints. Final Documents and Systems Presentation All documents will be reviewed with the Project Team in draft format before finalization and distribution. Final reporting will include comprehensive findings, recommendations, description of methodology, data analysis and resources to maintain classification and compensation changes. ▪ Quality Assurance: DDA HR conducts quality assurance reviews and provides the draft report to the County for review and feedback. ▪ Final Report: DDA HR discusses consolidated feedback from the County and finalizes the report and communications plan. ▪ Guidelines and Policies: DDA HR provides the Project Team with compensation administrative guidelines and policies aligned with the updated/new system for review. ▪ Two draft revisions with Project Team and in person presentation to Council and related travel time and mileage. Lake Elmo PAGE 12 ADDITIONAL SERVICES Job Classification Job classification is a series of decisions about how a position is valued within an organization. Each factor requires a decision as to how the job under consideration will be rated using levels that are increasingly complex and of great impact, frequency, or quantity. We look at the job rather than the employee. ▪ Job Evaluation: DDA HR will use the existing system or new system to evaluate all jobs using the information gathered from the PDQs. ▪ Job Classification Appeal Process: Once jobs classifications are completed, employees and supervisors will review. If changes are needed, they will complete a Job Classification Appeal Form. ▪ DDA will review appeals and work with Project Team and employees to create consistent results. ▪ Review Fair Labor Standards Act (FLSA) Designations: DDA HR will review exempt and non-exempt designations to ensure they are appropriate for classifications and make recommended changes, where appropriate. Job Description Re-Write ▪ Position Analysis Questionnaire (PAQ)- DDA will work with you to design a PAQ that reflects your needs. We have several versions to customize your needs. ▪ We will distribute a position analysis questionnaire (PAQ) to all employees and their supervisors, asking them to outline all the important requirements for and duties of the job. ▪ DDA write job descriptions in newly designed and approved job description template. ▪ Employees and supervisors will be asked to review the new job descriptions, and we will guide a controlled process for employees to appeal the content of descriptions before they are finalized. ▪ Additional job descriptions may be added to provide for internal promotional opportunities, or jobs may be consolidated to make administration easier. ▪ Job Description Appeal Process: Once jobs descriptions are completed, employees and supervisors will review. If changes are needed, they will complete a Job Description Appeal form. ▪ DDA will review appeals and work with Project Team and employees to create consistent results. Ongoing Maintenance This exclusive DDA Human Resources, Inc. program is designed to eliminate the need for large classification and compensation study every 4 to 6 years. Services include everything needed to keep a freshly updated compensation plan perpetually current. We find that over half of larger communities who have completed a compensation study with DDAHR have opted to convert to this management approach. Our ongoing maintenance scope generally includes a three-year commitment and includes the following services: ▪ We review, update and reclassify as necessary 1/3 of job descriptions annually. ▪ We annually update a market analysis of wages with benchmark communities and suggest changes to pay plan as necessary to remain in tune with the market. ▪ For any new jobs or changed jobs, we will write and classify the position for Lake Elmo PAGE 13 placement in the compensation system. ▪ We will complete and submit a pay equity report every three years or when otherwise required. ▪ If desired, we will handle data input of wage data into the LMC/AMC salary system. We will provide budget support by: ▪ Recommending an adjustment to your Pay Plan for the coming year based upon COLA and market factors. ▪ Preparing up to two (2) analysis of budget impacts of alternatives for wage adjustments. ▪ Making an annual presentation to the staff and/or selected group on the status of your compensation system. PROJECT INVESTMENT Option Services Total Cost Not to Exceed 1 Compensation Study/ Market Analysis $9,000 2 Compensation Study/ Market Analysis Amend or Establish Compensation System $13,000 3 Compensation Study/ Market Analysis Amend or Establish Compensation System Implementation Analysis and Strategy for Compensation $16,000 4 Full Classification and Compensation Study $27,125 5 Ongoing Maintenance $8,500 Our 105 City Clients Adrian Aitkin Albert Lea Arlington Audubon Brainerd Breckenridge Breezy Point Brooklyn Park Browns Valley Brownton Byron Caledonia Cambridge Cannon Falls Canton Clarks Grove Cokato Cold Spring Crosby Deephaven Detroit Lakes Dodge Center Dundas East Grand Forks East Gull Lake Eden Prairie Edina Eyota Fairfax Fridley Gaylord Glyndon Golden Valley Granite Falls Hanover Harmony Hawley Henning Howard Lake Janesville Jenkins Kasson Lake City Lake Crystal Lake Elmo Lake Park Lakefield Lanesboro Lafayette Lauderdale Lester Prairie Little Canada Mahnomen Mankato Mantorville Maple Grove Mayer Medford Medina Mendota Heights Minneota Minnetonka Lake Elmo PAGE 14 Minnetrista Mora Mounds View New Richland New Ulm Nisswa North St. Paul North Mankato Norwood Young America Olivia Ortonville Paynesville Pequot Lakes Pierz Pillager Pipestone Plymouth Preston Rochester Rockville Royalton Sartell Sebeka Shorewood Slayton Spring Valley St. Augusta St. Joseph St. Paul Park Staples Thief River Falls Thomsen Victoria Wabasha Waconia Wadena Warroad Watertown Waverly Willmar Zumbrota Our 50 County Clients Aitkin County Becker County Benton County Big Stone County Blue Earth County Brown County Cass County Chippewa County Clay County Cook County Dodge County Douglas County Faribault County Fillmore County Freeborn County Goodhue County Houston County Hubbard County Itasca County Jackson County Kandiyohi County Kittson County Koochiching County Lac Qui Parle County Le Sueur County Macomb County, ND Mahnomen County Martin County Meeker County Morrison County Mower County Murray County Olmsted County Pine County Polk County Pope County Renville County Rice County Rock County Sargent County, ND Sherburne County St. Louis County Stearns County Stevens County Swift County Wabasha County Wadena County Waseca County Wilkin County Yellow Medicine County Our 36 Other Governmental Entity Clients Brown County Soil and Water Conservation District Carnelian Marine St. Croix Watershed District Central MN Council on Aging Criminal Justice Network Dakota County Cook County Soil and Water Conservation District Counties Providing Technology Crow Wing County Soil and Water Conservation District Dakota County Community Development Agency Detroit Lakes Utilities East Regional Development Commission Fairview Care Center Fillmore County Soil Water Conservation District Headwaters Regional Development Commission Metro I-Net Metro Cities Group MN County Attorney’s Association MN Prairie County Alliance MN Multi Housing Authority Mower County Soil/Water Conservation District Murray County Hospital Lake Elmo PAGE 15 New Ulm Utilities NW Minnesota HRA Pipestone HRA Pope Douglas Solid Waste Management Prairie Lakes Municipal Solid Waste Authority Region 4 Mental Health Ric Rice and Steele 911 Center SMSC Gaming Enterprise Sourcewell South County Health Alliance Southlake Minnetonka Police Department Three Rivers Park District Tri-Cap Tri-County Community Corrections Upper Valley Regional Development Center Washington County Conservation District Higher Education Institutions Aims Community College College of Florida Keys University of Northern Colorado Our Offices Minneapolis 5029 Upton Avenue S, Minneapolis, MN 55410 Otsego 6954 Martin Farms Ave NE, Otsego, MN 55330 St. Paul 1887 Montreal Avenue, Saint Paul, MN 55116 Stillwater 6363 Jamaca Avenue North, Stillwater, MN 55082 Wayzata 3620 Northome Avenue, Wayzata, MN 55391 2025 Arthur J. Gallagher & Co City of Lake Elmo, MN Gallagher Response to Request for Proposal July 30, 2025 Mr. Erik Smetana, MBA, SPHR, SHRM-SCP, SWP Managing Director & Operations Leader | Public Sector & Higher Education 314.494.4849 | Erik_HenrySmetana@ajg.com 1600 Utica Avenue, West End Suite 450 St. Louis Park, MN 55416 Gallagher Benefit Services, Inc. | ajg.com 2025 Arthur J. Gallagher & Co The Gallagher Way. Since 1927. Table of Contents Cover Letter ..................................................................................................................................................................................... 1 Organizational Overview ................................................................................................................................................................. 2 Project Staffing ................................................................................................................................................................................ 5 Approach to the Project .................................................................................................................................................................. 8 Project Timeline ............................................................................................................................................................................. 14 References ..................................................................................................................................................................................... 15 Cost Proposal ................................................................................................................................................................................ 16 Contractual Considerations ......................................................................................................................................................... 18 Appendix 1: Publications & Conference Presentations ............................................................................................................. 19 Appendix 2: FLSA Compliance Methodology ............................................................................................................................. 20 Appendix 3: Job Description Review & Analysis Process ........................................................................................................ 21 Appendix 4: Additional Services .................................................................................................................................................. 22 1 | 2025 Arthur J. Gallagher & Co The Gallagher Way. Since 1927. Cover Letter July 30, 2025 Jennifer Doyle Administrative Services Coordinator City of Lake Elmo 3880 Laverne Avenue North Lake Elmo, Minnesota 55042 Dear Jennifer: We appreciate the opportunity to present this proposal regarding the services Gallagher’s Human Resources & Compensation Consulting practice can offer the City of Lake Elmo (the City). Gallagher is highly capable and qualified to work with the City based on our extensive experience with public sector organizations across the country. We would consider it a privilege to serve the City in this capacity. We believe we will provide the City with the most diversely experienced project team of any consulting practice in the country, which enhances the solutions and recommendations we will provide on this engagement. The questions and perspective provided by our team ensure we anticipate any issues the City may face throughout this project, as well as the ongoing management of the updated classification and compensation system. We have prepared the following proposal in response to your request. We appreciate having the opportunity to submit this proposal and look forward to assisting the City with this engagement. Sincerely, Erik Smetana, MBA, SPHR, SHRM-SCP, SWP Managing Director & Operations Leader 314.494.4849 | Erik_HenrySmetana@ajg.com 2 | 2025 Arthur J. Gallagher & Co Organizational Overview Value Proposition: The ability to deliver comprehensively structured human capital solutions to clients is Gallagher’s signature in the marketplace. At Gallagher, we want to know what makes your organization unique. We listen intently to learn about your culture and priorities and delve deeply into all the details that matter when balancing human capital needs with your bottom line. This single-minded focus on excellence — characterized by innovation and creativity — is the driving force behind every Gallagher engagement. Company History: Arthur J. Gallagher & Co. opened its doors for business in 1927 and is still “growing strong” because of a practiced ability to help clients think ahead. Founded by its namesake who was previously the leading producer for Chicago’s largest insurance brokerage, Gallagher is now one of the world’s largest human capital, insurance brokerage and risk management services firms. We have operations in 33 countries and extend our client-service capabilities to more than 90 countries through a global network of correspondent brokers and consultants. Since 1961, we have been helping clients overcome business barriers and create new opportunities to cost-effectively attract, retain, and engage the best performers in their field. Gallagher started trading on the NYSE under the symbol AJG in 1984. Company Culture & Philosophy: The ideals, principles and values embodied by the founder whose name still appears on our door are part of our corporate DNA. Gallagher’s approach to business, cultivated through three generations of family leadership, has always centered on creating relationship value as true partners to our clients. Gallagher’s interactions with you will be straightforward and candid. By earning the trust of our clients, we have sustained a reputation for ethics and a commitment to transparency that continues to contribute to our growth. The high standards of conduct we have set for our external professional relationships are the same rules we follow internally. The Gallagher Way, a one- page document that outlines our 25 shared values, was written in 1984 but is just as culturally relevant today. It speaks to the value of relationships and several tenets set guidelines for ethical behavior. Gallagher combines innovative solutions, thoughtful advice and honest business practices to minimize risk and help fuel your success. 3 | 2025 Arthur J. Gallagher & Co Talent Practice: Gallagher’s Talent practice empowers clients to attract talent, manage staff, develop leaders, and reward success—leveraging the power of Gallagher and wisdom of experience to produce an engaged and productive workforce. Tapping into expertise that spans the spectrum of human resources at every level, we can assemble flexible compensation and consulting solutions that improve efficiency and build bottom lines. Our practice is a combination of some of the most respected names in human resources and compensation consulting. As we have grown in our services and reach, we have grown in our ability to serve our clients – this includes the acquisition and integration of talented firms, consultants, and advisors from Koff & Associates (2021) and Buck (2023). Bringing together experts from compensation, performance, compliance, data and analytics, survey, and leadership fields, Gallagher empowers clients with tools for the entire lifecycle of employment management. With an experienced team of consultants located in offices across the United States and Canada, our services include: HR & Organizational Effectiveness Think of us as your strategic partner and an extension of your HR and organizational change team. Compensation & Rewards We strengthen the employer-employee relationship by designing equitable, competitive, and sustainable compensation and rewards programs. Multinational Benefits & Mobility As Global Connectors, we provide solutions for you to manage your multinational workforce in a compliant, coordinated, strategic, administratively efficient, and cost-effective way. Communications A global leader in employee communication, we set the industry standard for excellence and innovation People Development & Insights We help you understand your customers and your workforce to unlock value and performance. Public Sector & Higher Education Consulting Practice: Gallagher’s public sector & higher education consulting practice has completed nearly a thousand classification and compensation studies for public entities, higher education, and similarly situated clients in the last ten (10) years. We have extensive experience in developing and communicating compensation philosophy, designing and implementing market-aligned pay structures and career frameworks and developing job evaluation methods to maintain internal equity. We conduct benchmark analyses, including conducting custom tailored salary surveys (if needed), and recommend appropriate administrative and procedural guidelines to maintain the compensation system. We ensure that our clients comply with applicable laws and regulations, such as the Fair Labor Standards Act (FLSA), the Americans with Disabilities Act (ADA), and Equal Employment Opportunity (EEO) standards and have pay systems that are appropriate for their organization and market strategy. We have served our clients for more than 40 years across an array of strategic and value-adding HR services with classification, compensation, and pay equity as our core specialties. 4 | 2025 Arthur J. Gallagher & Co We have a strategic alliance with the Public Sector Human Resources Association (PSHRA), the National Public Employers Labor Relations Association (NPELRA), and the Colleges and Universities Professional Association for Human Resources (CUPA - HR) and have conducted a series of training seminars/workshops on compensation, classification, job evaluation, strategic HR, and employee benefits management throughout the nation in conjunction with these organizations. Gallagher Benefit Services also focuses on the higher education market. Our consultants have demonstrated leadership in the compensation and strategic HR fields by completing training and certifications from WorldatWork, ERI, HRCI, Human Capital Institute, SHRM, and others in addition to serving as instructors and presenters for ICMA, CUPA-HR, NAPO, WorldatWork, NACO, NPELRA, PSHRA and other regional and national associations. Our thought leadership has been published and/or highlighted in University Business, PSHRA News, American City and County, TalentCulture, Public Management, TLNT, Corporate Report Ventures, ERE, Corporate Board Member, Benefits Planner, and others. As your Trusted Advisor we have additional information for your consideration based on your current focus. You can expect a trusted advisor in Gallagher, not just a vendor focusing on only one aspect of your HR offerings. While there are numerous vendors that can provide HR consulting, our subject matter expertise is brought to life in the way we partner with our public sector entities and is what truly sets Gallagher apart. Our consulting style is proactive and collaborative. We strive to provide you with relevant information and partner with you to support informed decisions and anticipate the future. As experts in providing a broad spectrum of human resource and talent management capabilities our experience has shown us that many public sector entities conducting a compensation project may also need support in these key areas: Think of our team both as a strategy partner, and as an extension of your HR team – providing expertise and additional capacity aligned with your specific HR needs, including strategic advisory, one-off projects, and fractional on-going HR solutions. You may encounter some cases that require communication such as sharing outcomes and findings of your needs assessment. Our award-winning Communications Practice is a global leader in employee communications. We increase your business performance by amplifying the entire employee experience through world-leading employee communications. Here are some of the ways we can provide support: • HR Policy Development • Compliance − I-9 Reviews & Revisions, ACA Reporting & Compliance, Local, State & Federal Laws, Fair Labor Standards Act (FLSA) Compliance • Career Transition Services • Recruiting Services • Payroll & HRIS Technology Services − Managed Payroll Solutions, Interim Emergency Support, State Tax Registrations, Year-End Support • HR Technology Selection and Implementation • Organizational Change Management • HR Support − People Operations (Policies, Handbooks, JDs, Leave, Workplace Investigations) Let us help you with: • Benefits (Total Wellbeing) Communications • Compensation Communication • Reward Communication • Retirement Communication • Internal Communication (IC) • Audit and Insight – Communication Effectiveness • Organizational Change Communication • Digital (Communication) Experience • Employee Value Proposition (EVP) Development and Communication • Personalized Portals • Non-personalized portals • Decision-support tools We welcome the opportunity to further explore how we can partner with you in these critical areas. HR & Organizational Effectiveness Communication 5 | 2025 Arthur J. Gallagher & Co Project Staffing Our team of specialists and experts brings a proven track record of designing and executing comprehensive compensation strategies, performing complex classification analyses, evaluating pay equity to ensure fair, competitive structures, and delivering high-value strategic HR advisory services. Many of our professionals have served as practitioners within the very sectors we support, granting us unique insight into real-world operational challenges. We combine rigorous data analytics, industry best practices, and innovative thinking to craft customized, forward-looking solutions aligned with each organization’s strategic HR goals. By drawing from hands-on experience and leveraging an in-depth understanding of market trends, we help our clients both meet current standards and proactively prepare for an ever-evolving talent landscape. Gallagher fosters a commitment of excellence, professionalism, integrity, collaboration, and urgency to each of our clients. With each unique client, Gallagher combines these principles to deliver client services customized, specifically to meet your needs. Your Gallagher consulting team has years of experience consulting to public sector clients, including those with unionized and represented employees with a significantly diverse employee workforce with organizations nationwide, including a long history of serving Minnesota cities, counties, and public bodies - we have worked with more than 1,000 public sector and higher education clients over the past decade. Each member of Gallagher’s public sector compensation consulting practice has achieved one or more of the following certifications and/or degrees: • Certified Compensation Professional from WorldatWork • Compensation Analyst Credential from Economic Research Institute • IPMA-SCP from the Public Sector Human Resources Association • PHR and/or SPHR from the Human Resources Certification Institute • SHRM-CP and/or SCP from the Society for Human Resource Management • SWP and HCS from the Human Capital Institute • Master’s degree or above, in Human Resources, Business Administration, and/or Organizational Psychology PROJECT LEADERSHIP & LEADERSHIP SUPPORT ERIK SMETANA, MBA, MFA, SHRM-SCP, SPHR, SWP, HCS, Managing Director & Practice Leader - 25+ years of experience Erik manages operations and leads Gallagher’s public sector & higher education Human Resources & Compensation Consulting practice. Erik’s 25-plus-year work history has led him to serve in various diverse roles across human resource management, particularly in compensation and benefits, talent management and organizational development, people analytics, and employee relations and policy development. Erik has extensive experience in private and public sectors, working with an eclectic mix of dynamic organizations, including Fortune 500 companies across multiple industries, international not-for-profit organizations, membership associations, media outlets (e.g., NPR and NBC affiliates), institutions of higher education and research, and others. Before joining Gallagher, he served as the enterprise-wide Deputy CHRO and business unit CHRO with the University of Missouri System and with Vanderbilt University as the Executive Director of People & Engagement, leading, designing, and implementing compensation, employee learning, talent acquisition, and people-focused programs and initiatives. As a consultant, Erik has been engaged in more than 250 client projects with organizations ranging from cities and counties to state agencies to tribal nations and more including school districts, colleges and universities, special districts and authorities, and other sector aligned entities in the provision of compensation, classification, pay equity, organizational assessment, leadership coaching, performance management, and other strategic HR advisory services. ZAK SHTULBERG, Senior Consultant II & Project Operations Lead - 15+ years of experience Since starting as an HR consulting intern at Buck (now Gallagher) in 2012, Zak has been mission-driven and passionate about collaboration with clients and partners on transformative people, compensation, and other HR initiatives that improve the lives of employees and their communities. Projects have spanned a broad spectrum, including compensation strategy design, change management and communications, workforce planning, project management, analytics and technology enablement, and organization design, among many others. With both internal and external partners, he is recognized for blending strategic and technical advice with innovative analytics and technology and has grown as a trusted partner and subject matter expert in HR and compensation. Prior to starting his career, he earned a Bachelor of Science in Industrial and Labor Relations from Cornell University. 6 | 2025 Arthur J. Gallagher & Co CHRISTINE NICHOLS, Operations Support Specialist - 30+ years’ experience Christine joined Gallagher in 2023, bringing more than 30 years’ experience in Operations Support to the practice. Prior to joining Gallagher, she worked in the private sector for a Global staffing company. In her role as Operations Support for the practice, Christine ensures that all administrative processes across the team run efficiently and effectively, providing seamless client experience from proposal to project closure. She plays an integral part in the contract review process, follows up on client invoices & vendor payments, pulls data from a variety of internal & external systems and coordinates communications with other Gallagher departments. Christine is responsible for managing all RFPs, web inquiries & client referrals to the practice. She also handles all the scheduling of internal & external meetings for the practice, as well as review & audit of practice expenses. SHARI FALLON, PHR, SHRM-CP, Senior Consultant II & Project Manager - 25+ years of experience Prior to joining Gallagher, Shari worked for Cornell University as a Senior Compensation & Workforce Analytics Consultant for 24 years. In her role at Cornell University, Shari was responsible for providing expertise and consultation to campus constituents and resolving conflicts among functional areas to support best practice standards. She developed and designed the institutional foundation for assessing, delivering, and applying workforce planning analytics, advancing HR interests and shared responsibility in the consistency of practice across recruiting, compensation, staffing patterns, performance management, training, and transaction processing. Prior to Cornell, she worked in Human Resources for Retail and Health organizations. Shari has a bachelor’s degree in political science/history from the College of St. Rose in Albany, NY, and is certified as a Professional in Human Resources from the Society of Human Resource Management. LARRY ROBERTSON, Senior Consultant II & Project Manager - 25+ years of experience Larry’s 29-plus-year work history includes a variety of roles including compensation, human resources information systems, and recruiting as well as serving in a primary leadership role as acting vice president for human resources for several months. Larry has experience in both private and public sectors, working in a manufacturing environment before moving to higher education for the 21 years prior to coming to Gallagher. He has previously earned professional certifications with the Human Resources Certification Institute (PHR and SPHR). He has been actively involved in CUPA-HR on chapter, regional, and national boards and is a 2022 CUPA- HR Distinguished Service Award Recipient. DEREK SMITH, PhD, Senior Consultant II & Project Manager - 25+ years of experience Before joining Gallagher, Derek served as the National Executive Director of the Higher Education Recruitment Consortium and as a part-time consultant with Sawgrass Consulting, following more than 15+ years in higher education leadership roles at places like UNLV, Kansas State University, the University of Missouri System, and the University of Pittsburgh. Derek has a bachelor’s degree in history, a master’s degree in science, a master’s degree in business administration, and a PhD in public policy and leadership. He has earned professional certifications with the Human Resources Certification Institute (PHR), the Society for Human Resource Management (SHRM-CP), Economic Research Institute (ERI) Compensation Analyst Credential, and the Korn Ferry Leadership Architect. CATHERINE THORP, Senior Consultant II & Project Manager - 25+ years of experience Ms. Thorp holds a Bachelor of Business Administration degree in Management from the University of Mary Hardin-Baylor. Before joining Gallagher, Catherine worked as a Senior Compensation Manager at Dun & Bradstreet and in roles ranging from analyst to senior manager at McLane Company, Inc. Catherine has applied her compensation knowledge in market analysis, salary structure design, pay equity, career competencies, strategic planning, system integration, and process optimization. Catherine will complete her CCP in 2023. TRACY MORRIS, MBA, SHRM-CP, Senior Consultant & Associate Project Manager - 15+ years of experience Tracy has more than 10 years of experience working in the strategic HR space with significant public sector HR and compensation consulting. Tracy holds a bachelor’s degree in applied economics and a Master of Business Administration, both from Texas Tech University, and she is a SHRM Certified Professional (SHRM-CP). JAIME PARKER, Senior Consultant & Associate Project Manager - 15+ years of experience Jaime has 15 years of experience in Higher Education with 7.5 of those years in compensation and organizational effectiveness. Prior to joining Gallagher, she worked at Kansas State University in Human Capital Services, and in the Office of Institutional Effectiveness. Before her career in Higher Education, Jaime worked in the Banking Industry as a Banking Center Manager and Customer Service Manager. Jaime is a graduate of Kansas State University with a bachelor’s degree in accounting. 7 | 2025 Arthur J. Gallagher & Co PROJECT STAFF SUPPORT CHARMAIN KOHLER, Consultant II & Client Liaison - 10+ years of experience Charmain has over 25 years of human resources experience in a variety of roles and industries. She has a bachelor’s degree in business administration with a concentration in Management from Saginaw Valley State University. Prior to joining Gallagher, she was the Senior Compensation Analyst at Numotion and at Saginaw Chippewa Indian Tribe of Michigan. Her professional experience also includes 10 years as a Human Resources Consultant in higher education. SHILOH VENABLE, Consultant II & Client Liaison - 15+ years of experience Shiloh Venable is a consultant in Gallagher’s Human Resources & Compensation Consulting practice, specializing in the Public Sector and Higher Education service line. She brings more than 15 years of experience in human resources, learning and development, and program management across corporate, nonprofit, and higher education environments. Prior to joining Gallagher, Shiloh served as a learning & development manager at NXP Semiconductors, where she led global leadership development initiatives. She also held roles in nonprofit program management and student affairs at several universities, where she managed complex projects that supported staff and student growth. Shiloh holds a bachelor’s degree in human resource development and a master’s degree in education administration, both from Texas A&M University. In 2025, she received her Compensation Analyst Credential (CAC) from the Economic Research Institute (ERI). She is also a certified Professional in Human Resources (PHR). AMBER SHANG, MA in I/O Psychology, Senior Associate Consultant - 5+ years of experience Amber holds a BS with honors in Psychology from the University of Washington and an MA in Industrial & Organizational Psychology from New York University. Before joining Gallagher, Amber has applied her knowledge of people analytics in roles ranging from Talent Acquisition at VNS Health to Compensation Analysis at Willis Towers Watson, and Selection & Assessment at DCI Consulting Group. At WTW and DCI, she helped clients from various sectors to tackle challenges and identify strategic solutions. She holds a Certified Analyst Credential (CAC) from the Economic Research Institute (ERI). MARY GAUTHE, MBA, SHRM-CP, Senior Associate Consultant - 5+ years of experience Mary has five years of experience from Louisiana State University, where she served as a Compensation Consultant within the University's Central HR unit. She holds a bachelor's degree in management with a concentration in Human Resources from Nicholls State University and a master’s degree in leadership and human resource development from Louisiana State University. For the past two years, Mary has served as an Associate Consultant within the PSHE team. CARISSA MARTO, MA in I/O Psychology, Associate Consultant - 5+ years of experience Carissa has a bachelor’s degree in psychology from Anderson University (SC) and a master’s degree in industrial & organizational psychology from Middle Tennessee State University. Prior to joining Gallagher, she held project-based roles working in performance and promotional assessments related to test design. 8 | 2025 Arthur J. Gallagher & Co Approach to the Project Our practice takes a thoughtful and collaborative approach to all our client engagements, where we work to ensure our efforts are ones which demonstrate how the Public Sector & Higher Education practice C.A.R.E.S. - collaborate/consult, advise/assess, recommend/resource, engage/endorse, and strategize/serve - about our clients and their needs. To that end, our project approach starts with our process and client communications. Our extensive experience has resulted in a comprehensive understanding of the scope of work described by the City. Additionally, we understand the importance of this study as one of many strategies to address current human resources issues and appreciate the delicate nature of public sector spending. Below are some key considerations we have in this type of project, followed by our approach to the areas identified by the City, our detailed work plan, and the estimated project timeline. Key Considerations: Leadership Support: Effective compensation reform requires consistent, visible leadership commitment at multiple organizational levels. We establish a leadership accountability structure that includes executive sponsors, department champions, and implementation teams with clearly defined roles. Leaders must actively communicate the program's importance, address concerns directly, and visibly support the process through each phase. We provide leaders with focused messaging tools and data points to effectively advocate for changes. Without this multi-level support structure, even technically sound compensation systems often encounter significant resistance during implementation. Internal Fairness and Equity: Our approach balances external market competitiveness with internal equity through comprehensive job analysis techniques. We conduct detailed comparisons across job families, reporting relationships, and responsibility levels to ensure logical compensation relationships. This includes specialized analysis of career progression paths and appropriate differentials between supervisory and non-supervisory roles. We implement specific methodologies to address compression issues, particularly between long-service employees and new hires with market-driven starting salaries. Our process identifies and remedies historical inequities while establishing defensible rationales for pay differences based on skills, responsibilities, and performance factors. Appropriate Timelines: We develop realistic project schedules based on organizational complexity and resources. This includes adequate time for comprehensive job documentation, employee input, leadership review cycles, and implementation planning. A typical comprehensive compensation project requires 6+ months for proper execution, including 2-3 months for thorough job analysis, 1-2 months for market research, and 2-3 months for implementation planning, noting that this work may happen concurrently across the life of the engagement. Accelerated timelines often compromise data quality and stakeholder buy-in, leading to implementation challenges and future rework. We establish appropriate checkpoints and quality controls to ensure thoroughness while maintaining momentum. Data-Driven with Human Oversight: Our methodology combines rigorous data collection with expert interpretation. We utilize multiple validated market sources appropriate for your sector, geographic region, and organizational characteristics. All job matches undergo multi-level validation checks to ensure accurate comparisons. This empirical foundation is then contextualized through structured consultant review panels that consider institutional history, strategic priorities, and unique operational factors as shared and iterated by our clients. We document both the data-driven recommendations and any exceptions to provide a clear, defensible audit trail. This balanced approach ensures decisions are not rigidly algorithmic while maintaining system integrity. 9 | 2025 Arthur J. Gallagher & Co Clear and Consistent Communication: We develop compensation structures and classification frameworks with inherent clarity, using straightforward job leveling frameworks, transparent progression criteria, and consistent application of compensable factors. Communication materials are tailored to different stakeholder needs—executive summaries for leadership, detailed implementation guides for HR professionals, and practical explanation tools for managers and employees. We create accessible resources explaining compensation philosophy, range structure, placement methodology, and future growth opportunities. Systems are designed with straightforward administration requirements that do not require specialized expertise for day-to-day management. Compression Planning and Analysis: Our implementation approach includes detailed financial modeling that identifies potential compression scenarios before placement decisions are finalized. We analyze the distribution of current salaries against proposed ranges to identify employee clusters and gaps requiring special attention. Implementation options are developed with multi-year cost projections, including various phasing alternatives to balance budget constraints with equity requirements. Special focus is given to departments with significant longevity differences and areas with recent hiring at market rates. This proactive approach prevents creating new inequities while addressing existing compression issues within available resources. Our Approach: Market Comparison Analysis Our market analysis methodology combines multiple data sources to create a comprehensive competitive assessment: • Benchmark Position Selection Identification of benchmark positions (typically 60-65% of job classifications), mapping, and communication of process to ensure: ‒ Representation across all major job families and levels ‒ Focus on positions with reliable and abundant market data ‒ Inclusion of mission-critical and hard-to-fill positions ‒ Coverage of positions with known compensation challenges ‒ Consistency and understanding of roles relative to Gallagher’s benchmark mapping process • Comprehensive Market Data Collection Multi-source data approach combining: ‒ Published survey data from industry-specific and general compensation surveys ‒ Custom survey data collected from selected competitor organizations ‒ Current labor market information on compensation trends • Total Rewards Analysis Complete competitive assessment including: ‒ Base compensation positioning relative to defined market ‒ Variable pay practices and prevalence ‒ Benefits package evaluation and competitiveness leveraging Gallagher’s industry-leading National Benchmark Survey data ‒ Work arrangement flexibility and other non-monetary elements ‒ Employer/employee cost-sharing analysis for benefits programs Compensation Structure Development Our compensation structure development process transforms market and internal data into an integrated framework that supports organizational objectives: • Structure Design Development of grade and range structures through data analysis: ‒ Analysis of market data to establish market-responsive relationships ‒ Integration of internal equity requirements into structure design ‒ Modeling of various structure options (typically 2-3 alternatives) ‒ Review of position distribution across proposed structures • Position Placement Allocation of positions to appropriate grades based on: ‒ Internal equity values established through job evaluation 10 | 2025 Arthur J. Gallagher & Co ‒ Market position requirements for critical job families ‒ Organizational design considerations and reporting relationships ‒ Career progression pathway requirements • Implementation Analysis Financial analysis to evaluate implementation approaches: ‒ Individual employee placement modeling based on defined criteria ‒ Development of up to three implementation scenarios ‒ Compression/inversion identification and remediation planning System Sustainability Plan Our approach ensures the City can maintain and evolve the compensation system independently: • Comprehensive Documentation & System Integration Development of system documentation and transfer of data in formats compatible with the City's HRIS system, enabling smooth integration with existing technology. • Administrative Knowledge Transfer Implementation of our training approach: ‒ Thorough training for HR staff on system maintenance ‒ Development of administrative tools and decision support materials ‒ Creation of position evaluation guides and procedures ‒ Establishment of ongoing monitoring and adjustment processes • Long-term Maintenance Planning Development of a sustainable maintenance approach: ‒ Annual review methodology and timeline ‒ Market monitoring recommendations and data sources ‒ Position evaluation guidelines for new or changed positions ‒ Budget planning guidance for annual structure adjustments Our final deliverable will include a comprehensive report detailing methodologies, findings, and recommendations, along with all necessary implementation tools and documentation. This deliverable will provide the City with both immediate implementation guidance and long-term direction for compensation management. Work Plan: The work plan proposed is designed to provide the flexibility necessary to attract, retain, and motivate employees to provide quality services and ensure the system is not an administrative and/or costly burden to the City now or in the future. Gallagher has integrated the Scope of Services into our phased approach and deliverables to address the City’s requests. All phases will require that designated the City - team members and Gallagher have ongoing status meetings to explain the process, review the project's progress, review draft materials, address questions, and discuss next steps. The phased work plan is as follows: PHASE 1: STRATEGIC ALIGNMENT, PROJECT INITIATION, & STUDY ADMINISTRATION Our engagement begins with a comprehensive strategic alignment phase designed to establish clear governance structures and critical success parameters: • Executive Strategy Session / Preliminary Meeting (Week 1) − Facilitate session with executive leadership − Confirmation of organizational priorities and talent philosophy − Alignment of compensation strategy with business objectives − Risk assessment and mitigation planning − Finalization of project scope parameters 11 | 2025 Arthur J. Gallagher & Co PHASE 1: STRATEGIC ALIGNMENT, PROJECT INITIATION, & STUDY ADMINISTRATION • Project Governance Implementation (Week 1-2) − Establishment of steering committee and working team − Definition of roles, responsibilities, and decision-making authority − Implementation of our proprietary communication matrix − Configuration of project management platform with milestone tracking − Development of risk management and escalation protocols • Current State Diagnostic (Weeks 2-3) − Comprehensive documentation collection and review − In-depth assessment of existing compensation philosophy − Evaluation of current classification architecture − Gap analysis against industry best practices − Identification of critical improvement opportunities − Diagnostic findings presentation to project team • Stakeholder Engagement Planning (Week 3) − Development of multi-level communication strategy − Creation of employee communication materials − Configuration of feedback collection mechanisms − Establishment of change management protocols − Finalization of communication timeline • Employee Orientation Sessions (Week 4) − Delivery of employee information sessions − Distribution of project overview materials − Q&A facilitation with consistent messaging − Expectation setting for participation requirements − Initial feedback collection Virtual Meetings are included. On-site visits are available at an additional cost to the City. PHASE 2: COMPENSATION, BENCHMARKING & MARKET ANALYSIS Our data-driven approach combines deep market knowledge with sophisticated analytical techniques: • Market Analysis Strategy Development (Weeks 4-7) Gallagher will map organizational roles to standard market benchmarks, based on work performed and not simply internal titling, to ensure consistency and accuracy of market data. This process includes discussion and integration of details regarding hard-to-fill, high turnover, and unique scenarios within the client organization to ensure informed decisions regarding the benchmarking process. − Strategic identification of appropriate labor markets and peer organizations − Development of data collection strategy − Determination of aging factors and effective dates − Selection of published survey sources − Identification of custom survey participants • Custom Market Intelligence Gathering (Weeks 8-11) − Leverage LMC survey resources within state of Minnesota − Data collection monitoring − Compilation of survey results − Supplemental data-mining to ensure sufficient data resources for analysis 12 | 2025 Arthur J. Gallagher & Co PHASE 2: COMPENSATION, BENCHMARKING & MARKET ANALYSIS • Published Survey Data Collection (Weeks 9-11, concurrent with custom survey) − Extraction of relevant data from published sources − Normalization of data across sources − Application of geographic differentials − Implementation of aging factors − Compilation of comprehensive market dataset − Quality assurance review • Advanced Data Analytics (Weeks 11-14) − Integration of custom and published data sources − Statistical validation of integrated dataset − Outlier identification and handling − Application of regression analysis for market line determination − Competitive positioning analysis − Internal equity assessment − Pay compression diagnosis • Compensation Structure Engineering (Weeks 14-16) − Development of pay structure alternatives (typically 2-3 options) − Range modeling with various spread and overlap scenarios − Alignment of structure with classification architecture − Testing of structure against current positions − Financial impact modeling of alternatives − Structure refinement based on testing results − Finalization of recommended structure PHASE 3: IMPLEMENTATION STRATEGY, FINAL REPORTS, & SUSTAINABILITY PLANNING Our approach ensures successful implementation and long-term program sustainability: • Financial Impact Analysis (Weeks 16-18) − Individual employee placement modeling − Aggregate financial impact calculation − Development of implementation scenarios (typically 3) • Implementation Strategy Development (Weeks 18-19) − Creation of phased implementation timeline − Development of exception handling protocols − Red-circle/green-circle treatment policies − Communication planning for rollout • Policy and Procedure Development (Weeks 18-19) − Comprehensive compensation policy documentation − Administrative procedure development − Authority matrix creation − Process flow documentation − Recommendation for governance structure − Ongoing maintenance protocols • Toolkit Creation and Knowledge Transfer (Weeks 18-20) − Development of position evaluation tools − Creation of manager decision-support resources 13 | 2025 Arthur J. Gallagher & Co PHASE 3: IMPLEMENTATION STRATEGY, FINAL REPORTS, & SUSTAINABILITY PLANNING − Design of employee education materials − Development of training curriculum − Delivery of administrator training (2 sessions) • Executive Presentation and Finalization (Weeks 19-20) − Preparation of executive presentation materials − Delivery of executive briefing session − Facilitation of decision-making on implementation approach − Finalization of deliverables based on executive input − Delivery of all project materials and tools − Project close-out and transition to ongoing support PHASE 4: POST-PROJECT SUPPORT & OPTIONAL ONGOING SERVICES • Implementation Support (Up to 10 hours of direct support for the 6 months following project closure) − Technical assistance during the initial rollout − Advisory support for complex situations − Resolution of emergent issues − Refinement of tools based on initial usage − Documentation of lessons learned − Development of long-term sustainability recommendations • Ongoing Support Services (Optional) − The consultant will offer ongoing support services throughout the year, including job evaluation, market pricing, job description development, trend data analysis, and related activities on an ad-hoc basis. The typical turnaround time for ad-hoc requests is two to four business days, depending on the nature and volume of the requests. These services are often provided after completing larger projects to aid in implementing and maintaining the outcomes and deliverables of the initial engagement. 14 | 2025 Arthur J. Gallagher & Co Project Timeline The following is an estimate to complete each phase by month. We will discuss the details of each phase during Phase 1 and identify specific deadlines for the project at that time. We will conduct frequent conference calls with the City to ensure the schedule is monitored throughout the project. In today’s world, speed is particularly important. However, given the significance of this project, it is just as important for the City officials, department heads, and employees to have sufficient time to review and approve the recommendations of Gallagher and to ensure proper communications occur. We have prepared a timeline to ensure the City has the work products in an expeditious manner. Our phases run concurrently; in that we do not wait until the full completion of a phase to begin another phase. We are prepared to commence the work within two weeks of receiving your authorization to proceed. PHASE 1: STRATEGIC ALIGNMENT, PROJECT INITIATION, & STUDY ADMINISTRATION Milestone Timeframe Executive Strategy Session / Preliminary Meeting Week 1 Project Governance Implementation Week 1-2 Current State Diagnostic Weeks 2-3 Stakeholder Engagement Planning Week 3 Employee Orientation Sessions Week 4 PHASE 2: COMPENSATION, BENCHMARKING & MARKET ANALYSIS Milestone Timeframe Market Analysis Strategy Development Weeks 4-7 Custom Market Intelligence Gathering Weeks 8-11 Published Survey Data Collection Weeks 9-11 (concurrent with custom survey) Advanced Data Analytics Weeks 11-14 Compensation Structure Engineering Weeks 14-16 PHASE 3: IMPLEMENTATION STRATEGY, FINAL REPORTS, & SUSTAINABILITY PLANNING Milestone Timeframe Financial Impact Analysis Weeks 16-18 Implementation Strategy Development Weeks 18-19 Policy and Procedure Development Weeks 1-19 Toolkit Creation and Knowledge Transfer Weeks 18-20 Executive Presentation and Finalization Weeks 19-20 PHASE 4: POST-PROJECT SUPPORT & OPTIONAL ONGOING SERVICES Milestone Timeframe Implementation Support Up to 10 hours of direct support for the 6 months following project closure 15 | 2025 Arthur J. Gallagher & Co References Contact names and phone numbers are listed for each project. These projects are relevant to demonstrating our ability to meet the needs of the City and show considerable experience in developing compensation systems for a variety of public sector organizations. Our references can attest to the timeliness, quality, and responsiveness of the services we provide, our understanding of job classification and pay equity, and our knowledge of legal issues, such as the ADA and FLSA, and our expertise in working with public organizations and sensitive personnel issues. The projects listed below were completed by members of your project team and within similar timeframes to what the City is requesting. CITY OF RUSTON, LA | 401 North Trenton Street, Ruston, LA 71270 Julie Keen, Finance Director, 318.251.8651, JulieKeen@RustonLA.gov In 2022, Gallagher contracted with the City of Ruston to perform a compensation study for all city employees. The study utilized a custom survey and published data to complete the study. The study included police, fire, and utility workers. CITY OF AUSTIN, TX | 301 West Second Street, Austin, TX 78701 Bryan Dore, Compensation Manager, 512.974.3216, bryan.dore@austintexas.gov We have been retained to do numerous projects with the City since 2017. In 2017, we were hired to assist the City with a review and assessment of the compensation strategy and to conduct a compensation study for the Human Resources and Legal departments. In 2019, Gallagher conducted another custom salary survey for the City and a comprehensive evaluation of pay equity in comparison to its prior studies to identify if there are any pay equity issues in the organization. Since 2021, we have been engaged in a number of compensation and broader engagements – with our multi-year agreement renewed for 5 years in fall of 2024 – recent efforts have included compensation philosophy design, organizational assessments, and compensation reviews. CITY OF GILLETTE, WY | 201 East 5th Street, Gillette, WY 82716-4303 Déca Wasson, Human Resources Director, 307.686.5222, decaw@gillettewy.gov From 2022 to 2023, we were contracted by the City to perform compensation and HR advisory services. HARRIS COUNTY, TX | 3100 Main Street, Houston TX 77002 Amanda Porter, Senior Manager, Compensation and Position Control, 713.274.3018, Amanda.Porter@harriscountytx.gov We are currently engaged with the County, the third largest in the country, for a compensation, classification, and pay equity study. This study encompasses over 18,000 employees across 4,000 classifications. The study involves writing job descriptions, creating guidelines, and training for salary administration to ensure pay equity in addition to designing frameworks to support the County’s ongoing HR transformation efforts. PRINCE WILLIAM COUNTY, VA | 1 County Complex Court, Suite 155, Woodbridge, VA 22192 Stacey E. Allen, Assistant Director of Human Resources, 703.792.5172, SAllen@pwcgov.org Since 2018, Gallagher and the County have partnered to conduct multiple classification and compensation studies with the goal of ensuring internal equity, external competitiveness, and legal compliance in pay structures while supporting career development and workforce planning. To build the compensation and classification framework from the ground-up, the team reviewed and updated over 310 job descriptions, facilitated employee and supervisor Job Analysis Questionnaires (JAQs), conducted interviews and focus groups, and performed market benchmarking. Deliverables included revised salary structures, implementation cost models, and communication toolkits. The studies concluded with actionable recommendations, including a streamlined classification system, updated pay ranges, and tailored implementation strategies aligned with the County’s operational and budgetary needs. Gallagher continues to partner with Prince William County and is currently engaged in a 2025 project to build on the previous work, introducing innovative approaches to JAQ design and data collection and market pricing. Additional references and/or case studies are available upon request to support client decision-making. 16 | 2025 Arthur J. Gallagher & Co Cost Proposal We believe that our methodology and implementation success rate is attributable to the significantly greater level of contact we have with employees, employee representation, management, and the governing body. The time we commit to working with employees (orientations and briefings, meetings with employees via personal interviews, sharing of compensation survey data, etc.) results in significantly greater buy-in throughout the process. It has been our experience that the time, money, and resources invested in stakeholder communication throughout the study are time, money, and resources saved during implementation. Our goal is to conduct each study the right way the first time. To create efficiency and cost savings for our clients, as well as operating as green an organization as possible, we often conduct our studies virtually. Our cost proposal assumes that all meetings and presentations will be conducted virtually/remotely and no onsite travel to the City offices will occur. Should the City desire onsite meetings, our per diem cost for onsite meetings based on travel time and market rate travel cost are outlined below. Our fees to conduct the study outlined above (including out-of-pocket expenses) will be $15,550. The table below outlines the price per phase. Phase Fees PHASE 1: Strategic Alignment, Project Initiation, & Study Administration Includes virtual meetings and ongoing project management meetings throughout. On-site meetings are available at an additional cost* $1,750 PHASE 2: Compensation, Benchmarking & Market Analysis** $11,550 PHASE 3: Implementation Strategy, Final Reports, & Sustainability Planning Includes virtual meeting; On-site meetings are available at an additional cost * $2,250 PHASE 4: Post-Project Support & Optional Ongoing Services $0; annualized ongoing support services available TOTAL COST (Including all tasks) will not exceed: $15,550 *On-site meetings are available at an additional cost. **Should the City request Gallagher to update/write job descriptions, those services will be priced separately since we are unable to determine the number that will be required. Pricing would be $550 per job description and is in addition to the “Total Cost” identified above. Based on volume, this rate may be discounted. Our study costs are directly derived from estimating the number of hours needed to perform the work and the level of the consultant charged with performing the work. Gallagher typically bills monthly up to the maximum of each deliverable. Please note, as phases sometimes run concurrently, a phase may not be completed at the time it is billed. All expenses are included in this quote. Should the City wish to have additional on-site presentation days or meetings, the estimated cost would be $4,000 per day. Any change to the scope of the assignment (beyond what is described above) as well as other work requested beyond this assignment will be billed based on our hourly rates unless we mutually agree on a fixed fee for the additional work. 17 | 2025 Arthur J. Gallagher & Co Optional Ongoing Services: Service Fees Ongoing Ad-Hoc Review Includes job evaluation, single role market pricing, and job description development, classification review, PDQ/JAQ review $13,500* per annum** for up to 25 requests Annual Trend Memo Includes market and sector movement memorandum to inform annual budget planning, structure adjustments, and understanding of market trends $3,500 per annum** Market Benchmarking Tool Includes client access to cloud-based market benchmarking tool and the development/facilitation of an annual custom survey to provide real-time market data to the client organization in between large-scale studies $45,000 per annum (includes tool and survey)*** *price may be modified (up or down) based on anticipated client volume **annual cost discounted by $1,000 and held flat (i.e., no rate increases) for multi-year (2 or more) service agreements ***annual cost discounted to $34,500 per annum for multi-year (2 or more) service agreements Hourly Rates: Role Rate Associate Consultant $250 Consultant $375 Senior Consultant $455 Principal $495 Managing Director $525 18 | 2025 Arthur J. Gallagher & Co Contractual Considerations Gallagher is pleased to submit this proposal to the City. While this proposal is not meant to constitute a formal offer, acceptance, or contract, notwithstanding anything to the contrary contained in the proposal, Gallagher is submitting this proposal with the understanding the parties would negotiate and sign a contract containing terms and conditions that are mutually acceptable to both parties. * * * * * Thank you for this opportunity to offer our services. Please feel free to contact us at any time if you have any questions or require additional information. We look forward to hearing from you soon. Sincerely, Erik Smetana, MBA, SPHR, SHRM-SCP, SWP Managing Director & Operations Leader 314.494.4849 | Erik_HenrySmetana@ajg.com 19 | 2025 Arthur J. Gallagher & Co Appendix 1: Publications & Conference Presentations Over the past 36 months, your Gallagher consultants have actively contributed to the discourse through a variety of publications and conference presentations. These efforts underscore our commitment to thought leadership and our dedication to advancing industry practices. This section highlights our key publications and presentations, showcasing our expertise and the value we bring to our clients and partners. Navigating What’s Next: Revenue, Risk, and the Future of College Athletics (Webinar) Arthur J. Gallagher & Co. | May 8, 2025 FMLA Bootcamp: Leave Management Trends, Paid Time Off & Sick Banks (Webinar) myBenefits Channel | April 24, 2025 How Student-Athlete Pay Can Boost Students, Sports, and Institutional Success Arthur J. Gallagher & Co. - News & Insights | February 26, 2025 Shaping the Journey to Fair Pay for Student Athletes Arthur J. Gallagher & Co. - News & Insights · Jan 15, 2025 Competitive Compensation Structures for Higher Ed Institutions and Systems CUPA presentation | September 2024 Public Sector: Trends in Compensation & HR Public Sector HR Association (PSHRA) - Virginia Chapter - State Conference | September 24, 2024 How a Compensation Philosophy Can Boost Employee Engagement in the Public Sector Arthur J. Gallagher & Co. - News & Insights Jul 2, 2024 Driving Public Sector Excellence: The Power of Job Architecture and Career Frameworks Arthur J. Gallagher & Co. - News & Insights | May 2, 2024 Promoting Excellence and Pay Equity: The Benefits of Merit Pay in Higher Education Arthur J. Gallagher & Co. - News & Insights·| April 8, 2024 Recruitment and Retention Opportunities within the Public Sector & Public Safety National Association of Police Organizations - Retirement & Benefits Symposium | January 29, 2024 How a Coaching Leadership Style Unleashes Human Potential at Work TalentCulture | Jan 16, 2024 Does Your HR Strategy Leverage Organizational Competencies TalentCulture | June 23, 2023 Workforce and Succession Planning Can Help Stem Higher Education Employee Turnover Arthur J. Gallagher & Co. - News & Insights · May 15, 2023 Looking Beyond the "Great Resignation" and Planning for a Great Future International Public Management Association for Human Resources (IPMA-HR) | September 27, 2022 Leverage Compensation Strategies to Attract and Retain Top Public Talent (Conference Presentation) IPMA-HR Central Region Conference, ICMA Leverage a Holistic People Strategy to Help Higher Education Employers Face the Future with Confidence Arthur J. Gallagher & Co. - News & Insights | July 15, 2022 Prepare Now for FLSA Rule Changes Coming Soon Arthur J. Gallagher & Co. - News & Insights | March 15, 2022 20 | 2025 Arthur J. Gallagher & Co Appendix 2: FLSA Compliance Methodology Our 7-Point FLSA Compliance Methodology provides a structured, defensible approach to determining the appropriate exemption status of each position within your organization. This systematic framework goes beyond basic salary thresholds to ensure proper classification according to the most current Department of Labor regulations and case law interpretations. 1. Salary Basis Assessment • Evaluation of compensation structure against current FLSA minimum salary requirements • Analysis of pay practices for compliance with salary basis test requirements • Review of compensation delivery methods and frequency • Assessment of permissible and impermissible deductions • Identification of salary basis vulnerabilities and remediation recommendations 2. Primary Duty Analysis • Quantitative time allocation analysis across job functions • Relative importance assessment of exempt vs. non-exempt functions • Freedom from direct supervision evaluation • Comparative wage differential analysis between positions • Documentation of primary duty determination rationale 3. Discretion & Independent Judgment Evaluation • Assessment against standardized regulatory factors for independent judgment • Analysis of authority to formulate, affect, interpret, or implement policies/practices • Documentation of decision-making authority and constraints • Evaluation of consequences of decisions and recommendations • Comparison against DOL examples and precedents for similar positions as appropriate 4. Exemption-Specific Testing • Targeted assessment against relevant exemption criteria: ‒ Executive exemption: supervision, hiring/firing authority analysis ‒ Administrative exemption: administrative vs. production work distinction ‒ Professional exemption: specialized education/expertise requirements ‒ Computer professional: systems analysis and programming function review ‒ Outside sales: customer location and sales activity documentation • Application of relevant regulatory interpretations and case law precedents 5. Industry-Specific Considerations • Application of industry-specific exemptions and requirements • Analysis of specialized rules for educational institutions, government entities, healthcare, etc. • Review of collective bargaining implications, if applicable • Assessment of state-specific requirements that exceed federal standards • Documentation of industry-specific compliance rationale 6. Documentation Alignment • Job description language assessment for exemption supportability • Identification of documentation vulnerabilities • Development of compliant descriptive language • Creation of audit trail documenting exemption determination process • Alignment of job documentation with actual duties performed 7. Risk Assessment & Mitigation Planning • Comprehensive evaluation of misclassification risk by position • Financial impact analysis of potential misclassification • Prioritization of positions requiring classification changes • Development of implementation timeline for required changes • Creation of monitoring protocols for ongoing compliance This methodology ensures that all exemption determinations are made systematically, consistently, and in accordance with current regulatory requirements. Our approach has been validated through successful implementation with hundreds of clients and has withstood scrutiny in DOL audits and legal challenges 21 | 2025 Arthur J. Gallagher & Co Appendix 3: Job Description Review & Analysis Process Systematic evaluation of job descriptions through our 15-point documentation checklist, assessing critical elements including essential functions, ADA compliance language, FLSA classification support, and competency requirements. 1. Strategic Role Alignment Validate that the role supports the institution’s mission, strategic priorities, and organizational structure. 2. Position Title Benchmarking Assess title consistency with internal hierarchies and external market comparators. 3. Organizational Context Clearly define reporting lines, supervisory scope, and cross-functional interfaces. 4. Essential Duties and Responsibilities Articulate core functions using outcome-based language that reflects operational impact. 5. ADA-Compliant Language Ensure inclusion of physical and cognitive requirements with appropriate accommodation language. 6. FLSA Classification Justification Provide documented rationale for exempt/non-exempt status based on duties and salary thresholds. 7. Minimum Qualifications Specify baseline education, experience, and certifications required for role entry. 8. Preferred Qualifications Identify additional attributes that enhance performance or succession potential. 9. Competency Mapping Align behavioral and technical competencies with institutional competency models. 10. Work Environment and Conditions Describe physical demands, work setting, and any unique environmental factors. 11. Work Schedule Expectations Clarify standard hours, flexibility, travel, and remote/hybrid eligibility. 12. Performance Metrics and KPIs Define success measures and how performance will be evaluated. 13. Technology and Tools Utilized List key systems, platforms, and tools essential to the role. 14. Review Cadence and Governance Establish a schedule for periodic review and stakeholder accountability. 15. Documentation and Version Control Maintain audit-ready records with version history and approval tracking. 22 | 2025 Arthur J. Gallagher & Co Appendix 4: Additional Services We are confident we have provided our most cost-effective and best approach. We have included all products and services which are necessary to provide innovation as well as the functional capabilities proposed in our response. We take pride in our creativity and track record in developing innovative solutions to compensation and benefit issues. We spend considerable time and effort researching and exploring trends and technical issues to develop and test approaches not usually considered by other consulting firms that help inform innovative compensation program solutions. While we will train the City in its use of the recommended compensation system to ensure the City is able to answer questions and maintain the system long-term. The following services are optional and may be provided in the future: General Consulting and Strategic Advisory Services Billed hourly, rate varies based on level of consulting required; dependent on scope of engagement may be billed on a fixed fee basis Includes the provision of consulting and advisory services focused on areas of human resources, compensation and classification, and related areas. Typically conducted to help develop strategic and operational approaches, support leadership decision making, or to review and/or assess current approaches and processes (e.g., performance assessment, etc.) compensation decisions (e.g. review pay decision – not facilitate a review/study – for HR leader) as a neutral third-party. Leadership Coaching Billed hourly, rate varies based on level of consulting required; billed on a fixed fee basis for ongoing client engagements Facilitated dialogues with leaders regarding leadership and management approach, strategic thinking and style, communications approach, and other related topics to further enhance the individual’s leadership presence, ability, and perspectives. Strategic Planning Facilitation Billed hourly plus related expenses, rate varies based on level of consulting required Facilitated leadership discussion to outline, identify, and develop strategic roadmaps affecting the direction and approach of an organization over a defined period (i.e. 3 to 5 years) to include operational and strategic imperatives, articulation and definition of employment value proposition, and understanding linkages to organizational outcomes/priorities. Succession Planning Billed on a fixed fee basis based on particulars of the study A review of current leadership and organizational staff as well as identification of talent gaps/needs. Typically, it includes working sessions (N dependent on size of organization) to assess existing staffing mix, organizational fit and other success factors, as well as proficiency in current role and progress toward next level of role and advancement readiness. Deliverables include a memorandum summarizing our findings, conclusions, and recommendations. Process Design & Re-Engineering Billed on a fixed fee basis based on particulars of the study Includes a review of selected processes and practices, assessment of components (value add vs. value waste vs. value neutral but necessary), mapping of revised processes and as appropriate development of updated standard operating procedures documentation (SOPs). 23 | 2025 Arthur J. Gallagher & Co Organizational Effectiveness Assessment Billed on a fixed fee basis based on particulars of the study Includes a review and in-depth assessment of organizational practices, structures, and operational alignment, often across multiple working units, to determine opportunities for organizational design, operational and strategic priorities, modification of mission/vision and/or how the organization delivers on those items, and to identify opportunities that may increase effectiveness and efficiency. Deliverables include a memorandum summarizing our findings, conclusions, and recommendations. Span of Control Assessment Billed on a fixed fee basis based on particulars of the study Includes a review and in-depth assessment of organizational spans and layers, often across multiple working units, to determine opportunities for organizational redesign, modification of degrees of separation to senior leadership, and to identify opportunities that may increase effectiveness and efficiency. Deliverables include a memorandum summarizing our findings, conclusions, and recommendations. Reclassification Review Billed per title Includes a review of job information through analysis of existing or new job description or Position Description Questionnaire, follow- up with HR, supervisor, or employee as appropriate to ensure understanding, and then development of memo recommendation. Deliverables include a memorandum summarizing our findings, conclusions, and recommendations. Job Description Development Billed per title Leveraging an updated Position Description Questionnaire, Gallagher confirms the need of creation of new classification, and confirmation with client, and writing of new classification. Market pricing Billed per title Client provides job information in current or new job description, Position Description Questionnaire, and Gallagher collects market data from published survey ($400) and develops market pricing worksheets and memo on the process. If the client needs market data from the local market (like custom survey), Gallagher will research or conduct individual survey, and collect market data from published survey sources to develop the market pricing worksheet and a detailed memo on the process. Annual Adjustments and Trend Data Billed per scope of request Collection of market salary trend data from published survey sources or local market trend data with development of a memo on process and recommendations associated to any structural adjustments. Executive Compensation Study (Public Sector, Higher Education, Non-Healthcare NPOs) Billed on a fixed fee basis based on particulars of the study Comprehensive review of executive compensation and perquisites to facilitate compensation committee decision-making and confirm reasonability of pay packages. This may include but is not limited to research and analysis of market data, industry data (IPEDs, 990, etc.), and others to review or recommend a going-forward approach for affected executives. This type of study is recommended as an annual study. 24 | 2025 Arthur J. Gallagher & Co Pay Equity Study Billed on a fixed fee basis based on particulars of the study Comprehensive review, but not limited to actions including, performing a series of statistical tests to determine if there are any pay differences between gender and protected groups that are statistically significant. We will determine whether these differences can be explained by a factor other than gender, race, or age. Statistical analyses will be performed in accordance with standard, professionally accepted methods and those methods that are recognized by the Equal Employment Opportunity Commission (EEOC). Deliverables typically include general pay breakdowns to assess the pay levels and representation for each breakout identified, perform statistical analysis to identify systemic issues, and provide detailed comparisons where necessary. This type of study is recommended as a triennial study. Performance Management/Assessment Study Billed on a fixed fee basis based on particulars of the study Includes the review of existing programs and approaches, stakeholder feedback collection, development of tools and resources and recommendations, and as appropriate custom peer surveying to identify and leverage best practices across region, industry (e.g. higher education), peer cohorts, role type that are supportive of the strategic and operational imperatives of the client to support employee engagement, performance management, and culture. This type of study is recommended as necessary, based on the particulars and needs of the client. Compensation and Classification Audit Billed on a fixed fee basis based on particulars of the study An external review of current market data collection, data sources, job matches, and salary structures. Audit delivery will validate existing processes or result in recommended alternative approaches leveraging the available data. This type of study is recommended as necessary, based on particulars and needs of the client, often coinciding with internal structure changes or revisions. Change Management Billed on a fixed fee basis based on particulars of the study An assessment of current change management practices and communications approaches related to organizational change to identify opportunities for enhancement, additionally as appropriate to the organizational need, training related to managing and facilitating organizational change and the development of communications tools and resources to support change may be developed and delivered to better ensure success and revised internal practices. 2025 Arthur J. Gallagher & Co Gallagher is pleased to submit this proposal to you. While this proposal is not meant to constitute a formal offer, acceptance, or contract, notwithstanding anything to the contrary contained in the proposal, Gallagher is submitting this proposal with the understanding the parties would negotiate and sign a contract containing terms and conditions that are mutually acceptable to both parties. This material was created to provide accurate and reliable information on the subjects covered by should not be regarded as a complete analysis of these subjects. It is not to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation. Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc., a non-investment firm and subsidiary of Arthur J. Gallagher & Co., is a licensed insurance agency that does business in California as “Gallagher Benefit Services of California Insurance Services” and in Massachusetts as “Gallagher Benefit Insurance Services. ajg.com The Gallagher Way. Since 1927. AGREEMENT FOR COMPENSATION UPDATE SERVICES THIS AGREEMENT is made and entered by and between CITY OF LAKE ELMO, MINNESOTA, a municipal corporation (hereinafter “CITY”), and FLAHERTY & HOOD, P.A. (hereinafter “FIRM”). Recitals WHEREAS, CITY has a need for Compensation Update services; WHEREAS, FIRM submitted a quote to provide Compensation Update services to CITY; and WHEREAS, at a meeting of the City COUNCIL, the CITY COUNCIL determined that FIRM be engaged to perform Compensation Update services and directed that an agreement for such services be executed between FIRM and CITY. Terms NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: 1. APPOINTMENT: CITY appoints FIRM to perform Compensation Update services. 2. AUTHORIZED CITY CONTACT PERSONS: The City Administrator and/or their designee(s) shall be the primary contact person between CITY and FIRM to request Compensation Update services from FIRM. 3. COMPENSATION UPDATE SERVICES TO BE PROVIDED. FIRM will provide Compensation Update services to CITY upon request of the City Administrator and as described in number 4 of this Agreement. 4. COMPENSATION, BILLING, AND PAYMENT PROCEDURES: 4.1. Rates. 4.1.1. Base Services. FIRM will bill and CITY will pay a total cost of $8,750 for Compensation Update services summarized as follows and detailed in FIRM’s proposal to CITY of February 20, 2026, which is incorporated herein by reference in its entirety: Review Market Survey and Analysis, including: • Base Wages • Call Back Pay Agreement for Compensation Update Services Page 2 of 7 4.1.2 AddAdditional Services for Update. FIRM can provide the following additional services city-wide if requested by CITY: Service Cost Employee Interviews • Interview using position questionnaires for incumbent employees addressing the skill, effort, responsibility and working conditions of their position $100/hour New Full Job Descriptions • Draft new full job descriptions for all positions in new format (up to 30) $2,500 for all jobs or $150/description if not all jobs Variable Pay System • Establish supplemental variable pay system, such as performance pay, merit pay, and/or skills or competency pay $2,750 Additional Market Data • Compile, review and analyze organizational or market compensation data other than wages, wage structure, and health insurance contributions. You should complete and submit to Flaherty & Hood such items in the attached Wages and Benefits, and Organizational Survey Items form $750 per category Employee Job Classification Reviews • Draft a process, forms, execution guide, and template responses for reviews by employees of job descriptions and/or job evaluation ratings • Advise city on handling a specific review $1,000 4.1.3. Additional Job Classifications or Same Job Classifications after Update is • On-Call Pay • PTO • Vacation • Dental Insurance • Union contracts for Public Works Pay Structure and Schedule Pay Equity Compliance Testing Final Report and Implementation Training on System Maintenance and Updating Agreement for Compensation Update Services Page 3 of 7 Complete. FIRM can provide the following services after the update is complete if requested by City: Service Cost System Maintenance and Updating • Conduct job analysis and job evaluation for current or new job classifications through 2 years after Base Services completed (up to 45 job classifications) • Conduct city-wide market survey within 2 to 3 years after Base Services completed $5,500 Individual Job – Full Analysis and Evaluation • Draft, review, and analyze job analysis questionnaires for incumbent employee, if any, and management addressing the skill, effort, responsibility, and working conditions of the position; draft new or updated job description; and establish internal rating after initial job classification rated $750 Individual Job – Job Evaluation • Establish points and provide analysis after initial job classification pointed $350 Individual Job – Market Survey • Compile, review, and analyze market compensation data, including wages, wage structure, and health insurance benefits $800 4.1.4. Other Services. Items in addition to those above or other labor relations, employment law, and human resources services are available to the CITY and will be billed at the hourly rates of $235 per hour for attorney, $185 per hour for analyst, and $115 per hour for administrative assistant, plus expenses. 4.2. Billing Procedure. CITY shall pay FIRM for the services rendered by FIRM to CITY as follows: 1. For Base Services, Flaherty & Hood, P.A. will bill the CITY for one-third of the base services of the lump sum cost up-front, one-third 8 weeks after start of update based on satisfactory progress, and one-third upon completion of the services. Agreement for Compensation Update Services Page 4 of 7 2. For Additional Services For Update as part of the update following FIRM submitting bill. 3. For Additional Job Classifications or Same Job Classifications after Update is Complete or Other Services after completion of respective service following FIRM submitting bill CITY will pay the bill of FIRM within thirty (30) days or less of its receipt by CITY. 4.3. Disputes. In the event that CITY disputes any aspect of FIRM’s bill, the CITY Administrator shall contact Brandon M. Fitzsimmons at FIRM stating the nature of the dispute. The parties pledge their mutual good faith in resolving any disputes. 4.4. Interest. Because CITY will be paying FIRM’s bills within thirty (30) days from their receipt, no interest will be charged. If CITY determines that it will be necessary to deviate from that payment schedule, then CITY will notify FIRM thereof. An interest rate of eight (8) percent per annum will be charged to CITY if CITY does not pay any bill of FIRM within thirty (30) days or less of its receipt by CITY with such arrangement subject to change as may be mutually agreed between the parties. 5. TERM AND TERMINATION: This Agreement shall commence following execution of the parties and shall continue in effect until such time as either party terminates this Agreement. This Agreement may be terminated by CITY at any time or by FIRM upon 60 days written notice. CITY shall pay FIRM for the work performed prior to the effective date of termination based upon the payment terms of this Agreement. 6. NOTICE: Any notices required under the provisions of this Agreement shall be in writing and sufficiently given if delivered in person or sent by U.S. mail, postage prepaid, as follows: 6.1. Notice to CITY shall be mailed or delivered to Nicole Miller, City Administrator, City of Lake Elmo, 3880 Laverne Avenue North, Lake Elmo, MN 55042. 6.2. Notice to FIRM shall be delivered to Brandon M. Fitzsimmons, Flaherty & Hood, P.A., 525 Park Street, Suite 470, St. Paul, MN 55103. 7. STATUS OF FIRM AS INDEPENDENT CONTRACTOR: FIRM shall be an independent contractor for all purposes and shall be entitled to no compensation other than the compensation provided for in this Agreement. No statement contained in this Agreement shall be construed so as to find FIRM to be an employee of CITY. FIRM shall not be entitled to any of the rights, privileges, or benefits of employees of CITY, including but not limited to, workers’ compensation, health/death benefits and indemnification for third-party personal injury/property damage claims. FIRM Agreement for Compensation Update Services Page 5 of 7 acknowledges and agrees that no withholding or deduction for state or federal income taxes, FICA, FUTA, or otherwise, will be made from the payments due FIRM and that it is FIRM’s sole obligation to comply with the applicable provisions of all federal and state tax laws. FIRM shall at all times be free to exercise initiative, judgment and discretion as to how to best perform or provide services identified herein. FIRM is responsible for hiring sufficient workers to perform the services/duties required by this Agreement, withholding their taxes, and paying all other employment tax obligations on their behalf. 8. DATA PRACTICES: All data collected, created, received, maintained or disseminated for any purposes by the activities of FIRM because of this Agreement is governed by the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13, as amended, the Minnesota Rules implementing such act now in force or as adopted, as well as federal regulations on data privacy. This paragraph does not create a duty or any obligation on the part of FIRM to provide access to public data to the public for inspection or otherwise if the public data are available from CITY. 9. AUDITS: Pursuant to Minn. Stat. §§ 6.551 and 16C.05, subd. 5, FIRM agrees that CITY, the State Auditor, or any of their duly authorized representatives, may examine any books, records, documents and the accounting practices and procedures of FIRM. If either CITY or FIRM requests that the State Auditor conduct such an examination, then the requesting party is liable for the costs of the examination. 10. INDEMNIFICATION AND INSURANCE: FIRM agrees it will defend, indemnify and hold harmless CITY, its officers and employees against any and all liability, loss, costs, damages and expenses which CITY, its officers or employees may hereafter sustain, incur, or be required to pay arising out of FIRM’s negligence related to performance of this Agreement. FIRM further agrees that in order to protect itself as well as CITY under the indemnity provision set forth above, it will at all times during the term of this Agreement keep in force lawyers professional liability insurance with a coverage amount of not less than $1,000,000 per claim. CITY agrees it will defend, indemnify and hold harmless FIRM, its officers and employees against any and all liability, loss, costs, damages and expenses which FIRM, its officers or employees may hereafter sustain, incur, or be required to pay arising out of CITY’s negligence related to performance of this Agreement. Nothing herein shall be deemed a waiver by CITY of the limitations on liability set forth in Minnesota Statutes, Section 466.04, as amended from time to time, and CITY’s obligation to indemnify, hold harmless and defend FIRM shall be limited by the limitations on liability set forth in Minnesota Statutes, Section 466.04. FIRM and CITY specifically agree and acknowledge that the above described indemnification and hold harmless provisions shall survive the termination of this agreement. 11. USE OF ELECTRONIC COMMUNICATION DEVICES: FIRM is authorized to utilize email without encryption to transmit and receive confidential client information and to use cellular telephones and other wireless devices for the same purposes. CITY Agreement for Compensation Update Services Page 6 of 7 specifically acknowledges that it understands the confidentiality risks associated with inadvertent interception. 12. FORCE MAJEURE: Each party shall be excused from any breach of this Agreement which is proximately caused by war, strike, act of God or other similar circumstance normally deemed outside the control of well-managed businesses. 13. GOVERNING LAW: This Agreement is made pursuant to, and shall be construed in accordance with the laws of the State of Minnesota. 14. HEADINGS AND CAPTIONS: Headings and captions contained in this Agreement are for convenience only and are not intended to alter any of the provisions of this Agreement. 15. ENTIRE AGREEMENT: This Agreement contains the entire Agreement for Compensation Update services between the parties hereto. No other agreement, statement, or promise made on or before the effective date of this Agreement will be binding on the parties. 16. MODIFICATION: Any modification of the provisions of this Agreement shall be reduced to writing and signed by the parties hereto. 17. SEVERABILITY IN EVENT OF PARTIAL INVALIDITY: If any provision of this Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect. 18. CITY APPROVAL: The City COUNCIL has approved FIRM’s fees and expenses to provide Compensation Update services for CITY during the term of this Agreement. The signing of this Agreement will be ministerial, and the FIRM is authorized to commence performing services following execution of this Agreement. 19. AGREEMENT NOT ASSIGNABLE. Except relating to conflicts of interest, the rights and obligations created by this Agreement may not be assigned by either party. 20. COUNTERPARTS. This Agreement may be executed in counterparts. Facsimile, photocopied or scanned signatures shall be considered as valid signatures as of the date thereof, although the original signature pages shall thereafter be appended to this Agreement. 21. WORK PRODUCTS. All records, information, materials and other work products prepared and developed in connection with the provision of services pursuant to this Agreement shall become the property of the CITY. Agreement for Compensation Update Services Page 7 of 7 IN WITNESS WHEREOF, CITY and FIRM have executed this Agreement and it is effective on the latest date affixed to the signatures hereto. CITY OF LAKE ELMO FLAHERTY & HOOD, P.A. By: By: Its Mayor Brandon M. Fitzsimmons Its Director By: Its City Clerk Date: Date: STAFF REPORT DATE:March 3, 2026 REGULAR TO: Mayor and Councilmembers FROM: Nicole Miller, City Administrator, Nate Stanley, City Engineer, and Pete Tholen, Public Works Director AGENDA ITEM: Stormwater Management Utility Code Review CORE STRATEGIES: ☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services ☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future ☐ Managed Growth ☐ Resilient Infrastructure BACKGROUND: As part of the City Council’s strategy for balancing finances for now and into the future, the goal of reviewing fees was added to the most recent strategic plan. One such fee is the stormwater utility fee. This fee per our city code is used for preparation of a surface water management plan, maintenance of existing ditches, culverts, ponds, and storm sewers, capital improvement in developed areas, equipment, planning, inventories, and water quality improvements, including weed control and tree removal. ISSUE BEFORE COUNCIL: Does the City Council wish to proceed with Bolton & Menk’s scope for review of the stormwater utility fee? PROPOSAL DETAILS/ANALYSIS: At the direction of Council from the September 9, 2025 workshop, staff has prepared a preliminary cost estimate for an independent review of the City’s storm water collection fee calculation methodology, associated land use categories, and appeal process. This item is being brought forward to allow City Council to review the proposed scope of work as it has been a while since it was last discussed, and to provide an opportunity for Council to ask questions of the City Engineer. As part of the review we will also work with the City Attorney to ensure our code is compliant with state law. FISCAL IMPACT: This is included in the 2026 budget. This review will be paid out of the stormwater fund. OPTIONS: 1.)Approve the quote from Bolton & Menk to complete review of stormwater utility fee as outlined. 2.)Do not approve the quote from Bolton & Menk to complete review of stormwater utility fee as outlined. 3.)Modify scope of the stormwater utility fee review and direct Bolton & Menk to proceed with modified scope. RECOMMENDATION: “Motion to approve the scope for review of stormwater fee as provided by Bolton & Menk.” ATTACHMENTS: Current City Code regarding Stormwater Management Utility. Quote from Bolton & Menk regarding review of stormwater management fee. CHAPTER 5.16 STORMWATER MANAGEMENT UTILITY 5.16.010 General Operation 5.16.020 Surface Water Management Utility Equations 5.16.030 Surface Water Management Fee 5.16.040 Surface Water Management Fee Adjustment Credits 5.16.050 Exemptions 5.16.060 Statement Of Surface Water Management Charges 5.16.070 Appeal Of Fee 5.16.080 Delinquent Payments 5.16.090 Annual Certification Of Delinquent Accounts 5.16.100 Stormwater Area Districts 5.16.010 General Operation (a)The municipal surface water system shall be operated as a public utility (hereinafter called the surface water management utility), pursuant to M.S.A. § 444.075, as it may be amended from time to time, from which revenues will be derived subject to the provisions of this chapter and state statutes. (b)In general, revenue from the surface water utility shall be used for preparation of a surface water management plan, maintenance of existing ditches, culverts, pond, and storm sewers, capital improvement in developed areas, equipment, planning, inventories, and water quality improvements, including weed control. HISTORY Adopted by Ord. 08-253 on 11/3/2021 5.16.020 Surface Water Management Utility Equations The utility charge (UC) shall be reviewed and determined annually by the city council. The utility equation for various land uses to determine the surface water management fees are assigned as follows: Property Class Code Current Land Use Utility Factor (Multiplied by the Utility Charge (UC)) 151--208, 402 Residential 1.0* UC per Lot 101--111, 401 Agricultural 3.0* UC ÷ 40* Total Acres 210 Manufactured Home Park 0.52* UC per Acre 230, 231, 233--241 Commercial/Industrial 3.08* UC per Acre 250--252 Vacant Land 0.15* UC per Acre 232 Golf/Park 0.35* UC per Acre 900--999 School/Church 1.12* UC per Acre --Conditional Use Permit Site Specific HISTORY Adopted by Ord. 08-253 on 11/3/2021 5.16.030 Surface Water Management Fee 2/26/26, 9:58 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=CHAPTER_5.16_STORMWATER_MANAGEMENT_UTILITY 1/4 Surface water management fees shall be established for a period of time as set by city council resolution. HISTORY Adopted by Ord. 08-253 on 11/3/2021 5.16.040 Surface Water Management Fee Adjustment Credits (a)The city council, upon report and recommendation of the city administrator, finance director and public works director, shall apply a credit to a property owner's surface water management fee provided the property owner has contributed to the management of surface water through intentional acts of retaining or re-using surface water to have a minimal impact on the municipal surface water management system or surface waters of the state. The council may apply a 25 percent to 75 percent credit based on the property owner's employment of surface water retention practices in accordance with LEC 105.04.770. These practices include the installation of: (1)Rain barrel; (2)Rain garden; (3)Retention pond; (4)Swales, ditches or manmade watercourses; (5)Riparian area plantings; (6)Other practices that may be deemed as intentional detention of surface water run-off. (b)The city council may grant a one-time or ongoing credit based on the effectiveness of the surface water retention as it relates to the management of the municipal surface water management system as a whole. For practices, such as rain gardens constructed in the adjacent right-of-way, the city council may grant an ongoing credit in exchange for the adjacent property owner's participation in the maintenance of the surface water retention device. This credit will not exceed 50 percent of the annual surface water management fee. (c)The city council, upon the report and recommendation of the city administrator and finance director, may apply a financial hardship credit of no greater than 75 percent based on a review of the property owner's ability to pay. HISTORY Adopted by Ord. 08-253 on 11/3/2021 5.16.050 Exemptions The following land uses are exempt from the surface water management fee: (a)Public rights-of-way; (b)Parks; (c)Lakes; and (d)Railroad property. HISTORY Adopted by Ord. 08-253 on 11/3/2021 5.16.060 Statement Of Surface Water Management Charges 2/26/26, 9:58 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=CHAPTER_5.16_STORMWATER_MANAGEMENT_UTILITY 2/4 Statements for the preceding yearly surface water management service shall be mailed to each customer on or before March 5. HISTORY Adopted by Ord. 08-253 on 11/3/2021 5.16.070 Appeal Of Fee (a)If a property owner or person responsible for paying the surface water management fee believes that a particular assigned fee is incorrect, the person may request that the fee be recomputed. (b)Appeals will be heard once a year, in a manner determined by the council in accordance with the schedule established for credit applications, in established city policy. HISTORY Adopted by Ord. 08-253 on 11/3/2021 5.16.080 Delinquent Payments A penalty equal to $5.00 or ten percent of the amount due, whichever is greater, shall be added to accounts not paid in full on or before May 1. HISTORY Adopted by Ord. 08-253 on 11/3/2021 5.16.090 Annual Certification Of Delinquent Accounts (a)Each year the city staff shall prepare a list of delinquent surface water management service charge accounts, including accrued penalties thereon, in the form of an assessment roll. (b)On or before December 28th of each year, the city council shall review the delinquent surface water management service charge assessment roll and adopt an appropriate resolution directing that the assessment roll be certified to the county auditor as a lien against the premises served and directing that the county auditor collect the assessment as part of the ensuing year's tax levy. HISTORY Amended by Ord. 08-251 on 9/21/2021 Adopted by Ord. 08-253 on 11/3/2021 5.16.100 Stormwater Area Districts (a)Establishment of stormwater area districts. The city may create stormwater area districts throughout the city, in which districts the city will require payment for the use of the city's storm drainage facilities, either through the connection and discharge to the city's storm drainage facilities or the receipt of volume control credits. Payments are required to assist in paying the costs of the establishment, construction, reconstruction, repair, replacement, enlargement, and improvement of the city's stormwater and surface water drainage system. It is determined by the city council that charges in accordance with the rates provided in the city's fee schedule shall be paid for every lot, parcel, or piece of land that connects to, or receives volume control credits from, the use of the city's stormwater and surface water drainage system in any stormwater area district which the city may establish in the future. (b)Benefit. It has been determined by the city council that the city's stormwater and surface water drainage systems benefit all properties located within the city's stormwater area districts by providing for the conveyance, storage, treatment, and drainage of stormwater, which protects the residents and property in the city. Charges against all real property in the city's stormwater 2/26/26, 9:58 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=CHAPTER_5.16_STORMWATER_MANAGEMENT_UTILITY 3/4 area districts will be calculated by the city to reasonably represent the benefit the city's stormwater and surface water drainage system provides to the property in the particular stormwater area district. The city council determines that such benefit is in addition to any previous assessment or charge for construction of any stormwater interceptor, trunk, or sub- trunk, and does not include any other fee or charge for service or availability, any amount paid for any permit fee, charges paid for inspection of connection pursuant to any other ordinance of the city or any other governmental agency or entity. (c)Connection and volume control use charges. The applicable stormwater and surface water system connection charge or volume control use charge shall be imposed by the city upon those parcels or land located within the boundaries of any applicable stormwater area district. No city approvals, including, but not limited to, building permits or other development permits or approvals, shall be issued, or any permits or approvals granted, within the established stormwater area district, except upon payment of such stormwater and surface water system connection or volume control use charges to the city. At the time a city approval, such as a building permit or development permit or approval, is required, the stormwater and surface water system connection or volume control use charge shall be computed by the city. Payment of the connection or volume control use charge shall be required at the time the permit is issued or approval granted. (d)Establishment of the Downtown Regional Stormwater District and connection charges. The Downtown Regional Stormwater District is hereby established, and shall encompass that area of land and those lots, parcels, and pieces of property within the city, that are more particularly described and depicted on the city's Downtown Regional Stormwater District Map which is on file with the city clerk. This map and all notations, references, and data thereon are hereby incorporated by reference into this section and shall have the same force and effect as if fully set forth and described within this section. The amount of the Downtown Regional Stormwater District connection charge is set forth in the city's fee schedule. (e)Establishment of the Regional Infiltration Basin Stormwater District and volume control use charge. The Regional Infiltration Basin Stormwater District is hereby established, and shall encompass that area of land and those lots, parcels, and pieces of property within the city, that are within the Downs Lake Subwatershed as defined by the Valley Branch Watershed District. The purpose of this charge is to allow properties within the Regional Infiltration Basin Stormwater District to pay a use charge in order to receive a credit toward meeting the volume control requirements for the property's Valley Branch Watershed District permit. The property is not allowed to connect to and discharge stormwater to the city's regional infiltration basin. The amount of the regional infiltration basin volume control use charge is set forth in the city's fee schedule. If or when the volume control capacity is depleted at the regional infiltration basin, stormwater management must be provided elsewhere by the property owner. HISTORY Adopted by Ord. 08-253 on 11/3/2021 2/26/26, 9:58 AM Print Preview https://lakeelmo.municipalcodeonline.com/book/print?type=ordinances&name=CHAPTER_5.16_STORMWATER_MANAGEMENT_UTILITY 4/4 Date Type Due date for packet Order Agenda Section Agenda item 3/10/2026 CC Workshop 3/3/26 City 180-Acres ULI TAP Final Report & Next Steps Agenda Procedures Discussion Stormwater funding related to street projects 250th anniversary of the United States 3/17/2025 CC Meeting 3/10/26 Consent Agenda Approve Engineering Design Standards Manual, Dated March 2026 Consent Agenda Special Projects Manager Contract Consent Agenda Approve 2026-2028 Mowing Contract Regular Agenda Northstar 3rd Addition FInal Plat, Final PUD, and Development Agreement Regular Agenda Approve Cooperative Cost Share and Cooperative Maintenance agreements for Hwy 36/LE Ave Regular Agenda Utility Study / Rate Increases Regular Agenda Accept Bids and Award Contract for the CSAH 14 Watermain Improvements Consent Agenda HWY 36 Discover Crossing Eminent Domain Conservation Easement Payment Agreement Consent Agenda Tree Fund Budget Amendment 4/7/2026 CC Meeting 3/31/26 Consent Agenda Arbor Day Consent Agenda Approve 2026 Recycling Grant Consent Agenda Approve Lake Elmo Night Out Special Event Permit Consent Agenda Voter precint change Regular Agenda Granvia Preserve Preliminary Plat and OP PUD Regular Agenda Annual Report Consent Agenda Comprehensive Plan Contract 4/14/2026 CC Workshop 4/7/26 Discussion Sidewalk/Trail snow removal ordinance-continued from 5/6 Discussion Broadband Franchise Discussion Strategic Financial Plan - Initial Review of Models, Assumptions, and Strategic Financial Goals Discussion Washington County Presentation for CSAH 13 (Ideal Ave) Project Discussion Met Council Population Forecasts 4/21/2026 CC Meeting 4/14/26 Consent Agenda 1st Quarter Dashboards and Financials Regular Agenda 1st Quarter Goals Update Regualr Agenda Approve Updated Open Burning Ordinance Regular Agenda 76 Acre Park Consultant Scope 5/5/2026 CC Meeting 4/28/26 Consent Agenda Approve Special Event Permit for 4th of July Parade Closed Session Discuss sale of 11052 34TH ST N Regular Agenda Review Code Enforcement Case for 8017 50th St N Dunn Storm Water Appeal Watters Storm Water Appeal (4180 Irvin Cir N ) Stephen Johnson Stormwater Appeal 5/12/2026 CC Workshop 5/5/26 Discussion Obstructions in ROW Discussion Old City Hall 5/19/2026 CC Meeting 5/12/26 6/2/2026 CC Meeting 5/26/26 6/9/2026 CC Workshop 6/2/26 City Council salary 6/16/2026 CC Meeting 6/9/26 Regular Agenda 2025 Audit Presentation 7/7/2026 CC Meeting 6/30/26 Consent Agenda Approve Special Event Permit for Lake Elmo Night Out Consent Agenda 2nd Quarter Dashboards and Financials Regular Agenda 2nd Quarter Goals Update 7/14/2026 CC Workshop 7/7/26 Discussion Draft 2027 - 2036 Capital Improvement Program 7/21/2026 CC Meeting 7/14/26 8/5/2026 CC Meeting 7/30/26 8/11/2026 CC Workshop 8/4/26 Discussion Draft 2027 Budget & Levy 8/18/2026 CC Meeting 8/11/26 9/1/2026 CC Meeting 8/25/26 9/8/2026 CC Workshop 9/1/26 9/15/2026 CC Meeting 9/8/26 Regular Agenda 2027 Preliminary Levy 10/6/2026 CC Meeting 9/29/26 Consent Agenda 3rd Quarter Dashboards and Financials Regular Agenda 3rd Quarter Goals Update 10/13/2026 CC Workshop 10/6/26 CIP F-012 Ladder 1 Replacement Approval 10/20/2026 CC Meeting 10/13/26 Regualr Agenda CIP F-012 Ladder 1 Replacement Approval 11/4/2026 CC Meeting Regular Agenda Bonding 11/10/2026 CC Workshop Employee Policies Updates 11/17/2026 CC Meeting Regular Agenda 12/1/2026 CC Meeting Regular Agenda 12/8/2026 CC Workshop 12/15/2026 CC Meeting Future Council Agenda Items *Please note: This list is subject to change*