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Item 3.13 Wright County Memomorandum of Understanding Brush Chipping and Compost Processing Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Administration City Administrator/Finance Director Flaherty November 24, 2025 PRESENTER(s) REVIEWED BY: ITEM #: Consent 3.13 – Wright County MOU STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Is a strong organization that is committed to leading the community through innovative communication. Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. X Is a social community with diverse housing, service options, and employment opportunities. Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff is recommending that the City Council approve a Memorandum of Understanding. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: Wright County (the County) in collaboration with cities (Partners) within the County have developed a partnership opportunity for a more cost-effective program for residential brush chipping and compost processing. Wright County has offered to own and operate specialized equipment to assist partner cities with these operations. A Memorandum of Understanding has been developed to outline length of the agreement, the County’s obligations, the Partner’s obligations, legal language, a pricing structure, and other agreement language. The City will continue the shared compost site with the City of Albertville even with approval of the MOU. With the compost site now having a staff attendant, hours of operation, and enforced limitations of accepted materials, the site is operating much more efficiently than in the past. The City of Otsego and City of Albertville would work collaboratively with Wright County to arrange for brush chipping and compost processing services as necessary to maintain an efficient working site. Both cities will continue the cost sharing allocation in place and believe that with the services available through the County that the financial impact to both cities will be reduced when compared to the current year. The City Attorney has reviewed the MOU and has provided consent for consideration of approval by the City Council. The Public Works Subcommittee was presented with this information at their November 19, 2025, meeting and provided direction for City Council consideration of approval. SUPPORTING DOCUMENTS ATTACHED: • Memorandum of Understanding POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to approve a Memorandum of Understanding between Wright County and the City of Otsego. BUDGET INFORMATION FUNDING: BUDGETED: General Fund – Street Maintenance (43100) Yes MEMORANDUM OF UNDERSTANDING BETWEEN WRIGHT COUNTY, MINNESOTA AND CITY OF OTSEGO This Memorandum of Understanding (“Agreement”) is made this 24th day of November 2025, by and between Wright County, Minnesota (“County”) and the City of Otsego (“Partner”). RECITALS WHEREAS, the County owns and operates specialized equipment to assist partners with residential brush chipping and compost processing; and WHEREAS, the County and Partner desire to cooperate in the development and implementation of a more cost-effective program for residential brush chipping and compost processing for the residents of Wright County; and WHEREAS, Partner anticipates scheduling service 5 to 10 day(s) per year; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: 1. Term This Agreement shall remain in effect for five (5) years, concluding on December 31, 2031. The Agreement may be extended for one additional five-year term upon mutual consent, subject to review and update of the pricing structure set forth in Exhibit A. Written notice of intent to extend must be provided at least six (6) months prior to the expiration of the initial term. 2. County’s Obligations The County agrees to: A. Purchase, maintain, and operate specialized equipment necessary to perform: 1. On-site mobile brush chipping, and 2. Compost processing of yard waste and other organic materials. B. Invoice participating partners based on the pricing structure in Exhibit A. C. Coordinate scheduling with Partners for operational dates between April 15 and November 15 of each contract year. 3. Partner’s Obligations The Partner agrees to: A. Enter into this Five-Year Memorandum of Understanding for Services. B. Retain chipped material on-site, arrange private hauling, or haul materials independently. C. Provide suitable staging areas for operations. County staff will review each site with Partner before mobilization and may request modifications as needed. D. Manage the drop-off site to exclude stumps, plastic bags, and other non- compostable materials. E. Set aside or split any tree trunks larger than 24 inches in diameter. F. Cooperate with the County in regional scheduling to reduce mobilization costs. G. Complete final staging area clean-up of smaller debris not manageable by County equipment. H. Assist at the site in stockpiling chipped and composted material. I. Submit payment to the County within thirty (30) days of receiving an invoice. 4. Hold Harmless and Indemnification In the performance of this agreement the County and Partner each agree to defend, indemnify and hold harmless the other, its board members, officers, employees, and contractors, from any claims, losses, costs, expenses, or damages to the extent resulting from the negligent or willful act or omission of the indemnifying party, or its board member, officer, employee, or contractor, under this Agreement. Nothing herein is a waiver by either party of an immunity, defense, or liability limit set forth in Minnesota Statutes, Chapter 466, or any other provision of law. Neither party intends to be responsible for the acts of the other within the meaning of Minnesota Statutes § 471.59, subdivision 1a. 5. Termination This Agreement shall terminate automatically upon the expiration of the term specified in Article 1, unless extended in accordance with its provisions. 6. Equipment Upon termination of this Agreement, all equipment and property purchased by the County shall remain the sole property of the County. 7. Assignment Neither the County nor Partner may assign its rights or obligations under this Agreement to any other person, corporation, or entity without the prior written consent of the other party. 8. Entire Agreement and Amendments This Agreement contains the entire understanding between the parties and supersedes all prior negotiations, representations, or agreements. It may be amended only by a written instrument signed by authorized representatives of both parties. IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Understanding as of the date first written above. WRIGHT COUNTY, MINNESOTA By: _______________________________________________ Name: ____________________________________________ Title: _____________________________________________ Date: _____________ By: _______________________________________________ Name: ____________________________________________ Title: _____________________________________________ Date: _____________ CITY OF OTSEGO By: _______________________________________________ Name: Jessica L. Stockamp Title: Mayor Date: _____________ By: _______________________________________________ Name: Audra J. Etzel Title: City Clerk Date: _____________ Exhibit “A” - Pricing Structure (Will Be Reviewed and Adjusted on An Annual Basis) Service Cost-Share Rate • Basic Brush Chipping (4/6-inch screen) • $450/hr. • Improved Brush Chipping (2/3- inch screen) • $475/hr. • Compost Processing • $525/hr. • Mobilization • $200/hr.