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MEMORANDUM of AGREEMENT CITY of HUGO and RICE CREEK WATERSHED DISTRICT WATER'S EDGE STORMWATER REUSE PROJECT This Memorandum of Agreement (MOA) is entered into between the City of Hugo, a statutory city and political subdivision of the State of Minnesota ("City"), and the Rice Creek Watershed District, a political subdivision of the State of Minnesota with powers and purposes set forth at Minnesota Statutes Chapters 103B and 103D ("District") (together, the "Parties"). RECITALS A. At the request of the City, the District applied to the Metropolitan Council ("Council") for a 2016 Stormwater Grant to provide partial funding for construction of a stormwater reuse system. The system will draw from a stormwater basin within the Water's Edge residential development for irrigation purposes (the "Project"). The Project will reduce groundwater appropriation demands and will reduce loadings of phosphorus and other pollutants to waters of the state. B. The District has been awarded a grant in the amount of $200,000 for the Project. As grantee, the District will be the grant agreement signatory and assume obligations to the Council under that agreement. C. The District will serve as grantee only because by direction of the Council, under the Stormwater Grant program, a watershed district must be the applicant and named grantee. The City will design, construct, maintain and bear all non -grant funded costs of the Project. The District has agreed to serve as grantee to facilitate the City's access to the grant funds and on the condition that the City will be responsible to the District for all grant requirements. TERMS 1. Attachment A to this MOA, and incorporated herein, is the Project grant agreement including work plan and project budget (together, "Grant Agreement"). On full execution of this MOA, the District will sign the Grant Agreement. 2. The District, on signing the Grant Agreement, will assume obligations to the Council as set forth in the Grant Agreement. The City recognizes that as the party benefitting from the grant funds, it is responsible to meet grantee obligations. The Parties together will communicate with the Council to establish which obligations under the Grant Agreement may be met directly by the City without the action or involvement of the District. 3. As to those grant obligations for which the District must remain formally responsible, the City is responsible to the District to meet those obligations, and to do so promptly so that the District may meet all deadlines in the Grant Agreement. Specifically, but not exclusively, the City will do the following in accordance with the paragraph of the Grant Agreement indicated in parentheses: a. Design, construct, provide signage for, own and maintain the Project in accordance with the Grant Agreement and any applicable deadlines therein. The City represents that it owns or has access rights to all elements of the Project to which access is required for maintenance.