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IV.4. Approval of Cooperative Agreement with the City of Minnetonka for Joint Recreation Services; Imihy CITY OF HOPKINS City Council Report 2025-013 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Laila Imihy, AICP, Special Projects and Initiatives Manager Date: January 21, 2025 Subject: Cooperative Agreement with the City of Minnetonka for Joint Recreation Services _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve the cooperative agreement for joint recreation services. OVERVIEW Since 1986, the of Hopkins and Minnetonka have jointly operated a recreation program which provides the residents of both cities with high quality recreational programming appropriate to a wide range of ages, abilities, and interests. This agreement, which is attached, expired in 1986, however both cities have continued to operate the program under similar terms to the original agreement. In late 2024, staff and the city attorney for both communities began the process of updating the agreement. Changes to the agreement reflect current practices by both cities as they relate to joint recreation and extends the length of the contract for another 30 years. Revisions made from the 1986 Agreement are generally minor and do not change the cooperative relationship in any significant way. The Hopkins Park Board reviewed the proposed agreement at their December 2024 meeting and recommended approval of the contract. The city of Minnetonka is set to approve the agreement at their upcoming City Council meeting on January 27, 2025. SUPPORTING INFORMATION •1986 Joint Powers Agreement •Cooperative Agreement with the City of Minnetonka •MOU for Joint Recreation Agreement Administration 1 COOPERATIVE AGREEMENT RELATING TO JOINT RECREATIONAL PROGRAM This Agreement is made as of _________, 2025 by and between CITY OF MINNETONKA, a Minnesota municipal corporation (“Minnetonka”), and CITY OF HOPKINS, a Minnesota municipal corporation (“Hopkins”). Recitals A. Under Minn. Stat. § 471.15, Minnetonka and Hopkins are each authorized to operate a program of public recreation. Under Minn. Stat. §§ 471.16 and 471.59, the parties are authorized to cooperate in the operation of a joint program of public recreation. B. Minnetonka and Hopkins are parties to an agreement dated July 1, 1986 and titled “An Agreement between the City of Minnetonka and the City of Hopkins to Provide a Joint Recreational Program” (the “1986 Agreement”). The 1986 Agreement formally expired Dec. 31, 1986, but the parties have continued to operate a joint recreation program based on the fundamental concepts of the 1986 Agreement. C. For nearly 40 years, the parties have operated a joint recreation program that has served the residents of both cities with high quality recreational programming appropriate to a wide range of ages, abilities, and interests. D. The parties appreciate the success of the joint recreation program and desire that it continue according to the terms of this Agreement. Terms ARTICLE 1: GENERAL PROVISIONS 1.1. Recitals incorporated. The recitals set forth above are incorporated into and made a part of this Agreement. 1.2. Joint recreation program. The parties agree to operate a joint program of public recreation for the benefit of their respective communities, according to the terms of this Agreement. 1.3. Data practices; records. Each party agrees to comply with the Minnesota Government Data Practices Act (Minn. Stat. ch. 13, the “MGDPA”) and to maintain official records created, collected or maintained in performance of this Agreement in accordance with Minn. Stat. 15.17 and 138.17. To the extent that Minnetonka is required to share data with Hopkins that is classified as private under Minn. Stat. § 13.43, Hopkins agrees to maintain that data as required by the MGDPA. 1.4. Audit. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, any books, records, documents, and accounting procedures and practices of Hopkins and Minnetonka relevant to this Agreement are subject to examination by Hopkins, Minnetonka, and either the Legislative Auditor or the State Auditor as appropriate. Hopkins and Minnetonka agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. 2 1.5. Non-exclusivity. This Agreement is a non-exclusive contract. Nothing in this Agreement is intended or should be construed as prohibiting either party from contracting with other governmental entities or nonprofit organizations to provide recreational services to its respective community. 1.6. Amendments. This Agreement may be amended at any time by mutual agreement of the parties. All amendments must be in writing and approved by the city council of each party. ARTICLE 2: RECREATION DIRECTOR AND STAFFING 2.1. Recreation director. The joint recreation program shall be administered and overseen by a Recreation Director. The Recreation Director will be the same person who serves as director of the Minnetonka Recreation Services Department or any equivalent successor department that may be subsequently established by Minnetonka. The Recreation Director will be a Minnetonka employee, subject to the direction, control, salary schedule and policies of Minnetonka, except as expressly modified by this Article 2. 2.2. Hiring. The selection and retention of the Recreation Director is a matter of joint concern by Minnetonka and Hopkins. Minnetonka agrees to cooperate with Hopkins in filling any vacancy in the position of Recreation Director, including obtaining input on job description and salary range, posting and advertising of the position, and selection of finalists for interviews. T he city managers of both cities will conduct interviews of finalists. The Minnetonka city manager will make the final hiring decision, with written concurrence of the Hopkins city manager. 2.3. Reviews; investigations. The Minnetonka city manager will solicit feedback from the Hopkins city manager for any performance reviews of the Recreation Director. If disciplinary investigations are necessary, Minnetonka will consult Hopkins staff only to the extent necessary for the conduct of the particular matter under investigation. 2.4. Termination. The Minnetonka city manager must consult with the Hopkins city manager prior to making any decision to terminate the Recreation Director. 2.5. Duties of Recreation Director. The Recreation Director is responsible for overall supervision and management of the joint recreation program and for ensuring that the program operates within its approved budget. The Recreation Director will: (a) attend regularly-scheduled meetings of Hopkins leadership staff, as may be requested by the Hopk ins city manager, (b) attend meetings of the Hopkins Park Board, on a quarterly basis; (c) participate in other processes and meetings required for Hopkins leadership staff; and (d) report to the Hopkins city council. 2.6. Other staff. Minnetonka will hire other employees necessary to the operation of the joint recreation program, consistent with procedures applicable to other similar employees of Minnetonka. Minnetonka shall be solely responsible for the hiring, discipline and termination of its employees. Hopkins may provide feedback to the Recreation Director regarding the performance of any employee providing services as part of the joint recreation program. Minnetonka will consult with Hopkins staff regarding disciplinary investigations of joint recreation staff only to the extent necessary for the conduct of the particular matter under investigation. 2.7. Minnetonka employees. The Recreation Director and all other Minnetonka employees who perform services related to the operation of the joint recreation program shall not be 3 considered employees of Hopkins for any purpose. Minnetonka is responsible for complying with all applicable laws governing the employment relationship, including but not limited to laws related to minimum wage, overtime, unemployment insurance, paid family medical leave, earned sick and safe time, workers’ compensation insurance, payment of wages, payroll taxes, and nondiscrimination requirements. Minnetonka shall determine the compensation and benefits to be paid to all such employees, except for the obligation to consult with the Hopkins city manager on the salary range for the Recreation Director position. Minnetonka shall include the costs of providing salary or wages, benefits and insurance premiums for such employees in the joint recreation program budget, but it shall not include in the budget any costs for payment of workers’ compensation claims, disability claims, or similar claims, where payments are made to individual employees in resolution of disputes. ARTICLE 3: PROGRAM DEVELOPMENT; BUDGETING AND COST ALLOCATION 3.1. Program development. Minnetonka staff will develop program offerings for the joint recreation program in consultation with Hopkins staff and under the direction and supervision of the Recreation Director; the Recreation Director will consult with the Minnetonka and Hopkins city managers as appropriate. To the extent possible, programs offered through the joint recreation program should have fee structures designed to support the operational costs of the program, including supplies, equipment and staffing. The locations for program offerings should be equitably distributed in both cities, based on the physical facilities required for the program and the availability of those facilities. Minnetonka and Hopkins staff will cooperate in reserving facilities for the joint recreation program. Joint recreation programs will not distinguish between Hopkins and Minnetonka residents for purposes of program eligibility or fees. The overall program offerings should be designed to appeal to and be accessible by individuals residing and working within both cities who are diverse in multiple characteristics including specifically all classifications of individuals protected by the Minnesota Human Rights Act. The seasonal program brochures that advertise joint recreation program offerings must equitably allocate space for each party to advertise recreational facilities that are not used for joint recreation programs, as agreed upon between the director and Hopkins’ city staff. 3.2. Budget approval. The Recreation Director annually must prepare a proposed budget for the operation of the joint recreation program, in cooperation with the city managers of each party. The budget must show the total cost allocation for each city, using the allocation formula set forth in section 3.3 of this Agreement. The city managers for both cities must consult and make any adjustments as mutually agreed before presenting the budget to their respective city councils. If the city managers are unable to agree upon a proposed budget, a joint meeting of the city councils of Hopkins and Minnetonka may be scheduled upon 15 days’ prior notice. If the city councils are unable to agree to a proposed budget, the final decision shall be made by the Minnetonka city council. 3.3. Cost allocation. The parties agree to share in the costs of the joint recreation program as provided in this section 3.3. 3.3.1. Except as provided in section 3.3.1 below, the costs to be shared include all costs for the operation of the joint recreation program, including but not limited to: hourly wages or salaries paid to all joint recreation staff, including the Recreation Director; the cost of employee benefits (in addition to wages or salaries) paid for joint recreation staff; supplies and equipment purchased or rented for the operation of the joint recreation program; and fees paid to independent contractors such as instructors and other professionals engaged to perform 4 services in connection with the joint recreation program; and liability claims as provided in section 5.1 of this Agreement. No capital expenditures will be included in the shared costs, except as provided at section 4.1 of this Agreement and the agreements referenced in that section. Minnetonka agrees to be responsible for 67 percent of the shared costs, and Hopkins agrees to be responsible for 33 percent of the shared costs. 3.3.2. The parties may enter into one or more separate supplemental agreements that deviate from the provisions of 3.3.1 above for specific program or personnel costs. Any supplemental agreement must reference this section 3.3.2, must specify the duration of the supplemental agreement (which may be extended from time to time or replaced with a new supplemental agreement) and must be approved by the parties’ city councils. 3.4. Payment. Hopkins shall pay its share of costs to Minnetonka on an annual basis, no later than April 1 of the applicable budget year. ARTICLE 4: PERSONAL AND REAL PROPERTY 4.1. Shady Oak Beach property. The real property located at 5200 Shady Oak Road, generally known as Shady Oak Beach, is owned by Hopkins but located within Minnetonka. The use, operation and maintenance responsibilities of the parties with respect to Shady Oak Beach are governed by a Ground Lease Agreement dated Sept. 14, 1998, filed Feb. 17, 2010 in the office of the Hennepin County Recorder as Document No. A9480924 and filed Feb. 17, 2010 in the office of the Hennepin County Registrar of Titles as Document No. T4730539 (“Ground Lease”) and the Agreement for Improvements to and Operation of Shady Oak Beach incorporated into and attached as Exhibit B to said Ground Lease, as said Ground Lease may be amended from time to time. 4.2. Other real properties. 4.2.1. Each of the parties owns, operates and maintains real properties, other than Shady Oak Beach, that may be used in connection with the operation of the joint recreation program (“Real Properties”). A list of the Real Properties is attached as Exhibit A to this Agreement. The parties agree to update Exhibit A as needed during the term of this Agreement, and to append each update to this Agreement. Each update shall be titled consecutively (e.g., Exhibit A-1, Exhibit A-2), shall include an effective date, and shall be verified by initials of the Hopkins city manager and the Recreation Director. 4.2.2. Except as provided in section 4.2.3 below, the parties agree to make their respective Real Properties available for use of the joint recreation program at no charge. Each party is solely responsible for the cost of capital improvements, maintenance, upkeep, and insurance of their respective Real Properties, and those costs will not be included in the budget for the joint recreation program. Each party retains ownership of its own Real Properties and establishing and enforcing policies and ordinances applicable to the use of its Real Properties, including but not limited to park regulations. 4.2.3. The parties may enter into one or more separate supplemental agreements to deviate from the provisions of 4.2.2 above for a specific Real Property, whether 5 existing or acquired after the date of this Agreement. Any supplemental agreement must reference this section 4.2.3, must specify the duration of the supplemental agreement (which may be extended from time to time or replaced with a new supplemental agreement) and must be approved by the parties’ city councils. 4.3. Personal property. Each party retains ownership of any equipment and supplies that it provides for use of the joint recreation program; each party agrees to provide the equipment and supplies without charge to the other party or to the joint recreation program budget. Minnetonka is responsible for purchasing any equipment and supplies that are required solely for use by the joint recreation program, provided that the cost is included within the approved budget for the program (“Program Equipment”). Minnetonka must maintain an inventory of all Program Equipment. Upon termination of this Agreement, the parties shall divide any Program Equipment between themselves based on estimated sale value; Minnetonka shall be entitled to Program Equipment representing 67 percent of the estimated sale value of all Program Equipment; and Hopkins shall be entitled to Program Equipment representing 33 percent of the estimated sale value of all Program Equipment. ARTICLE 5: LIABILITY 5.1. Liability. The parties agree to defend, indemnify and hold each other harmless, including their officials, officers, agents, volunteers, and employees from any liability, claims, causes of action, judgments, damages, losses, costs or expenses, including reasonable attorneys’ fees, arising out of this Agreement and resulting directly or indirectly from any act or omission of the indemnifying party or its employees, agents or contractors The parties’ liability shall be governed by the provisions of Minnesota Statutes, Chapter 466 or other applicable law. 5.2. Insurance. Each party agrees to obtain and keep in force a policy of public liability insurance to provide coverage for claims, losses, damages, and expenses, including attorneys’ fees, that arise out of the operation of the joint operation program under this Agreem ent. Each party will name the other as an additional insured in such policies and shall obtain such policy(ies) from a reputable insurance company authorized to do business in Minnesota or through a self-insurance pool organized pursuant to Minnesota Statutes §471.981. 5.3. Indemnification. Subject to the limitations and immunities of MN Statute Chapter 466, each party will defend and indemnify the other, its officers, employees and agents from and against Property Claims involving Real Properties owned by the indemnifying party. Under no circumstances, however, shall a party be required to pay on behalf of itself and the other party any amounts in excess of the limits on liability established in Minnesota Statutes Chapter 466 applicable to any one party. The limits of liability for both parties may not be added together to determine the maximum amount of liability for either party. The intent of this paragraph is to impose on each party a limited duty to defend and indemnify the other subject to the limits of liability under Minnesota Statutes Chapter 466. The purpose of creating this duty to defend and indemnify is to simplify the defense of claims by eliminating conflicts among the parties and to permit liability claims against both parties from a single occurrence to be defended by a single attorney. 6 ARTICLE 6: DISPUTE RESOLUTION 6.1. Meet and confer. If a dispute arises between the parties regarding this Agreement, the city managers of each city must promptly meet and attempt in good faith to negotiate a resolution of the dispute. 6.2. Mediation. If the parties have not negotiated a resolution of the dispute within 30 days after this meeting, the parties may jointly select a mediator to facilitate further discussion. Each party agrees to pay 50 percent of the mediator’s invoice for services. 6.3. Arbitration. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may submit the dispute to binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association, except that disputes involving an amount less than $25,000 will be submitted to a single arbitrator. Each party is responsible for its own attorney’s fees and costs incurred, and 50 percent of the arbitration fees. ARTICLE 7: TERM; TERMINATION 7.1. Term. This Agreement shall continue in effect until amended by agreement of the parties or until terminated as provided in this Article 7. 7.2. Termination; notice. Either party may terminate this Agreement by giving written notice to the other party at least two years prior to the date on which all joint program services will no longer be offered to the public (the “Program End Date”). The notice must be sent to the attention of the city manager of the other party, addressed to the official city hall of the other city, and sent by United States mail or personal delivery. 7.3. Accounting. In the event of a termination, Minnetonka must prepare an accounting as to all jointly purchased supplies and equipment and any outstanding liabilities. The parties shall distribute jointly purchased supplies and equipment as provided in section 4.3 of this Agreement or, in the alternative, may sell such supplies and equipment. The parties shall settle the final accounting of all assets and liabilities within 90 days after the Program End Date, which shall be the date on which this Agreement terminates. 7.4. Continuing obligations. The provisions of Articles 1, 5 and 6 remain in effect after termination of this Agreement. If a Program Liability arises after termination of this Agreement, the parties agree to share the cost of the Program Liability as provided in Article 5. [signature pages follow] 7 Signature Page – Hopkins CITY OF HOPKINS By Patrick Hanlon, Mayor By Michael Mornson, City Manager 8 Signature Page --- Minnetonka CITY OF MINNETONKA By Brad Wiersum, Mayor By Michael S. Funk, City Manager 9 Exhibit A List of Real Properties Owner Property address/name Applicable section Hopkins Shady Oak Beach 5200 Shady Oak Rd, Minnetonka 4.1 Hopkins Hopkins Pavilion 11000 Excelsior Boulevard Hopkins 4.2 Hopkins Hopkins Activity Center 33 14th Ave N Hopkins 4.2 Hopkins Hopkins Center for the Arts 1111 Mainstreet Hopkins 4.2 Metropolitan Council, leased by City of Hopkins & Three Rivers Parks District Hopkins Depot 9451 Excelsior Blvd Hopkin 4.2 Hopkins Buffer Park 400 5th Street S Hopkins 4.2 Hopkins Burnes Park 301 2nd Street N Hopkins, 4.2 Hopkins Central Park 101 16th Avenue S Hopkins 4.2 Hopkins Cottageville Park 435 Blake Rd N Hopkins 4.2 Hopkins Downtown Park 40 9th Avenue S Hopkins 4.2 Hopkins Elmo Park 1401 Elmo Park Service Road Hopkins 4.2 Hopkins Harley Hopkins Park 108 Jackson Avenue S Hopkins 4.2 Hopkins Hilltop Park 2020 4th Street N Hopkins 4.2 10 Hopkins Interlachen Park 230 Homedale Road Hopkins 4.2 Hopkins Maetzold Field 1215 1st Street n Hopkins 4.2 Hopkins Oakes Park 900 Lake Street NE Hopkins 4.2 Hopkins Raspberry Park 635 6th Avenue S Hopkins 4.2 Hopkins Valley Park 700 8th Street S Hopkins 4.2 Minnetonka Williston Fitness Center, 14509 Minnetonka Drive, Minnetonka 4.2 Minnetonka The Marsh, 15000 Minnetonka Blvd., Minnetonka 4.2 Minnetonka Community Center, 14600 Minnetonka Blvd., Minnetonka 4.2 Minnetonka Glen Lake Activity Center, 14350 Excelsior Blvd., Minnetonka 4.2 Minnetonka Big Willow Park and Preserve 4.2 Minnetonka Boulder Creek Park 5948 Stoneybrook Dr. Minnetonka 4.2 Minnetonka Civic Center Park 14600 Minnetonka Blvd. Minnetonka 4.2 Minnetonka Covington Park 18920 Manchester St. Minnetonka 4.2 Minnetonka Crane Lake Preserve Wayzata Blvd. South Frontage Rd. Minnetonka 4.2 Minnetonka Elmwood-Strand Park 3610 Elmwood Pl. Minnetonka 4.2 Minnetonka Ford Park 2115 Ford Rd. Minnetonka 4.2 11 Minnetonka Glen Lake Park 5240 Glenview Dr. Minnetonka 4.2 Minnetonka Glen Lake Station Park Excelsior Blvd. & Beacon Hill. Rd. Minnetonka 4.2 Minnetonka Glen Moor Park 700 W. Glen Moor Rd. Minnetonka 4.2 Minnetonka Gray’s Bay Causeway Park 17232 Co. Rd. 101 Wayzata 4.2 Minnetonka Green Circle Park 5600 Green Circle Dr. Minnetonka 4.2 Minnetonka Gro Tonka Park 17003 Prospect Place Minnetonka 4.2 Minnetonka Groveland Park 16710 Cottage Grove Ave. Wayzata 4.2 Minnetonka Guilliam’s Field Park 12101 Minnetonka Blvd. Minnetonka 4.2 Minnetonka Hilloway Park 12145 Hilloway Rd. Minnetonka 4.2 Minnetonka Holiday Lake Park 5230 Woodland Rd. Minnetonka 4.2 Minnetonka Junction Park 12305 Excelsior Blvd. Minnetonka 4.2 Minnetonka Kelly Park 17500 Excelsior Blvd. Minnetonka, MN 55345 4.2 Minnetonka Kinsel Park 14107 Kinsel Road Minnetonka 4.2 Minnetonka Knollway Park 895 Horn Dr. Minnetonka 4.2 Minnetonka Lake Charlotte Park 16500 Norwood Dr. Minnetonka 4.2 12 Minnetonka Lake Rose Preserve 5728 Lake Rose Drive Minnetonka 4.2 Minnetonka Libbs Lake Beach Park 16515 Park Lane Wayzata 4.2 Minnetonka Linner Park 2022 Linner Rd. Wayzata 4.2 Minnetonka Lone Lake Park and Preserve 5624 Shady Oak Rd. Minnetonka 4.2 Minnetonka Mayflower Park 2835 Mayflower Ave. Minnetonka 4.2 Minnetonka McKenzie Park 14950 Mckenzie Blvd. Minnetonka 4.2 Minnetonka Meadow Park and Preserve 2725 Oakland Rd. Minnetonka 4.2 Minnetonka Mini-Tonka Park 16001 Lake St. Ext. Minnetonka 4.2 Minnetonka Minnehaha Creek Headwaters Park 16501 Grays Bay Blvd. Wayzata 4.2 Minnetonka Minnetonka Mills Park 13209 E. McGinty Rd. Minnetonka 4.2 Minnetonka Mooney Park 2910 Oak Lea Dr. Wayzata 4.2 Minnetonka Oberlin Park 11597 Oberlin Rd. Minnetonka 4.2 Minnetonka Orchard Park 12595 Orchard Rd. Minnetonka 4.2 Minnetonka Pioneer Park 12117 Pioneer Rd. Hopkins 4.2 Minnetonka Purgatory Park and Preserve 17315 Excelsior Blvd. Minnetonka 4.2 13 Minnetonka Reich Park 18601 Beaver Trail Minnetonka 4.2 Minnetonka Ridgedale Commons, 12590 Ridgedale Drive, Minnetonka 4.2 Minnetonka Spring Hill Park 16714 Seymour Dr. Minnetonka 4.2 Minnetonka Sunrise Ridge Park Minnetonka Circle Minnetonka 4.2 Minnetonka Tower Hill Park 4525 Williston Rd. Minnetonka 4.2 Minnetonka Victoria-Evergreen Park 3801 Victoria St. Minnetonka 4.2 Minnetonka Westwood Park 9 Westwood Rd. Minnetonka 4.2 Minnetonka Wilson Park 4203 Victoria St. Minnetonka 4.2 Minnetonka Woodgate Park 5090 Highland Rd. Minnetonka 4.2 Effective date: [insert date same as date on page 1] Initials: Hopkins Mgr. Recreation Director MEMORANDUM OF UNDERSTANDING REGARDING COOPERATIVE AGREEMENT RELATING TO JOINT RECREATION PROGRAM THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is entered into by and between CITY OF HOPKINS, a Minnesota municipal corporation (“Hopkins”) and CITY OF MINNETONKA, a Minnesota municipal corporation (“Minnetonka”). Recitals A. Hopkins and Minnetonka are parties to a joint powers agreement entitled “Cooperative Agreement Relating to Join Recreational Program,” dated ___________, 2025 (the “JPA”). B. In general, the JPA provides that Minnetonka will provide staffing and oversight of a joint recreation program, utilizing facilities owned by each of the parties, for the benefit of both Hopkins and Minnetonka resident and that the parties will share the costs of the joint recreation program. C. Section 3.1 of the JPA provides as follows: 3.1. Program development. Minnetonka staff will develop program offerings for the joint recreation program in consultation with Hopkins staff and under the direction and supervision of the Recreation Director; the Recreation Director will consult with the Minnetonka and Hopkins city managers as appropriate. To the extent possible, programs offered through the joint recreation program should have fee structures designed to support the operational costs of the program, including supplies, equipment and staffing. The locations for program offerings should be equitably distributed in both cities, based on the physical facilities required for the program and the availability of those facilities. Minnetonka and Hopkins staff will cooperate in reserving facilities for the joint recreation program. Joint recreation programs will not distinguish between Hopkins and Minnetonka residents for purposes of program eligibility or fees. The overall program offerings should be designed to appeal to and be accessible by individuals residing and working within both cities who are diverse in multiple characteristics including specifically all classifications of individuals protected by the Minnesota Human Rights Act. The seasonal program brochures that advertise joint recreation program offerings must equitably allocate space for each party to advertise recreational facilities that are not used for joint recreation programs, as agreed upon between the director and Hopkins’ city staff. D. The parties desire to clarify the manner in which joint recreational program offerings will be developed and the procedure that will be followed for reserving physical facilities. E. The purpose of this MOU is to set forth the parties’ understanding regarding those procedures. Terms 1. Recitals incorporated. The above recitals are incorporated into this MOU and made a part hereof. 2. No amendment to JPA. This MOU does not amend the terms and conditions of the JPA. It is intended only to clarify specific procedures that Minnetonka staff will follow in 2025 in developing program offerings in consultation with Hopkins staff, as required by Section 3.1 of the JPA. Unless otherwise defined in this MOU, capitalized terms have the same meaning as set forth in the JPA. 3. Term. This MOU has the same effective date as the JPA and will terminate automatically on Dec. 31, 2025. 4. Facility scheduling. a. Notice. When developing program offerings for the joint recreation program, Minnetonka staff will follow the procedures as required by Minnetonka and by Hopkins for reserving their respective facilities, with not less than sixty (60) days’ advance notice for each reservation, except in case of emergency. Nothing in this MOU prevents either party from waiving the 60-day notice requirement in its sole discretion. b. Scheduling conflicts. If Hopkins staff objects to a requested reservation, staff representatives of Hopkins and Minnetonka will confer for the purpose of resolving conflicts. The parties understand that either party may decline to make their facilities available if: the proposed programming would be in direct competition with other services provided at the facility; the facility manager determines there is not sufficient space for the proposed programming at that facility; or the space is unavailable due to a prior reservation. c. As provided in Section 3.1, if the Hopkins and Minnetonka staff are unable to resolve conflicts regarding the program schedule and use of facilities, the Recreation Director will consult with the city managers for both parties. 4. Facility charges. Section 4.2.2 of the JPA provides that parties will make their Real Properties available for use of the joint recreation program at no charge, with two exceptions: Shady Oak Beach (see Section 4.2.1 of the JPA) and specific Real Properties that are covered by a supplemental agreement (see Section 4.2.3.). The parties agree that, under 4.2.2, the following costs will not be billed to the joint recreation budget: (a) rental fees for the use of any facility covered by 4.2.2; or (b) routine staff costs such as room set-up and cleaning for program use of those facilities. The parties further understand that a proposed joint recreation program will result in a party incurring direct, out-of-pocket costs that are necessary for that specific program and are not part of the routine use and upkeep of a facility, those costs will be identified at the time the program is developed and will be charged to the joint recreation program budget. [signature pages follow] Signature Page – Hopkins CITY OF HOPKINS By Patrick Hanlon, Mayor By Michael Mornson, City Manager Signature Page --- Minnetonka CITY OF MINNETONKA By Brad Wiersum, Mayor By Michael S. Funk, City Manager