Cityofmenahga

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City of MenahgaCity Council Special MeetingJune 11, 2018, 4:30 pmCity Council Special MeetingJune 11, 2018, 6 pmCity Council Regular MeetingJune 11, 2018, 7 pmMenahga City Council Chambers115 2nd Street NE, Menahgawww.cityofmenahga.comPage 1 of 158

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Mayor Patrick FossVice Mayor Craig LawreyCouncil Member Tim EllingsonCouncil Member Larry KarjalaCouncil Member Maxine McNeeseCity of MenahgaSpecial City Council Meeting4:30 p.m. Monday, June 11, 2018City Council Chambers115 2nd Street NEwww.cityofmenahga.comThe Menahga City Council will hold a special meeting on Monday,June 11, 2018 at 4:30 p.m. The purpose of the meeting is to discuss the CityAdministrator interview process.Page 3 of 158

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City of MenahgaSpecial City Council Meeting6 pm Monday, June 11, 2018City Council Chambers115 2nd Street NEMayor Patrick FossVice Mayor Craig LawreyCouncil Member Tim EllingsonCouncil Member Larry KarjalaCouncil Member Maxine McNeesewww.cityofmenahga.comThe Menahga City Council will hold a special meeting on Monday, June 11, at6 pm. The purpose of the meeting is to receive the 2017 Audit report.Page 5 of 158

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City of MenahgaRegular City Council Meeting7 pm Monday, June 11, 2018Mayor Patrick FossVice Mayor Craig LawreyCouncil Member Tim EllingsonCouncil Member Dennis KarjalaCouncil Member Maxine McNeeceCity Council Chambers115 2nd Street NEwww.cityofmenahga.comAgendaA. Call to OrderB. Roll CallC. Pledge of AllegianceD. Approval/Amendment of Agenda1. Approval of consent agendaa. Action Memorandum 18-039: Accept and Appropriate Donations in the Amounts of 200 from Gilster Excavating and 25 from Spirit Lake Lumber for the Hooked onFishing Program . Page 11b. Action Memorandum 18-040: Accept and Appropriate Donations in the Amounts of 250 from Ben Mar Rose Bed & Breakfast, 1,000 from Pinoniemi Chiropractic,Inc., 200 from Shell Sport & Bait, and 200 from Harold Wenner, Ltd for theSounds of Spirit Lake Program. Page 13c. Resolution No. 2018-011: Requesting City of Menahga Police Officer RodneyRychner be Accepted as a Member of the Public Employees Police and Fire Plan(IM 18-007) . Page 15d. Resolution No. 2018-012: Designating Authorized Signatures for Check SigningAffecting the General Checking Account (IM 18-008) . Page 17e. Action to accept and appropriate donations in the amount of 400.00 from theWolf Lake Wolf Pack for Hooked on Fishing Program Page 192. Approval of Minutesa. May 14, 2018, Special Meeting Minutes . Page 23b. May 14, 2018, Regular Meeting Minutes . Page 25c. May 22, 2018, Special Meeting Minutes . Page 31E. Communication and Appearance Requestsa. Travis Floyd, Menahga C&C – Disc Golf Project . Page 35F. Public Input (please sign in)G. Reports by Departments and Liaison Groups1. Laura Ahlf, Greenwood Connections Administrator . Page 412. Frank Thelin, Public Works Director .3. Charleen West, Interim City Administrator . Page 734. May Police Report submitted by Chief Koennicke . Page 75City of Menahga, MNJune 11, 2018, Regular Meeting AgendaPage 1 of 2Page 7 of 158

H. Notices and Communications1. League of Minnesota Cities Correspondence. Page 81I. Public HearingsJ. Unfinished BusinessK. New Business1. Action Memorandum 18-038: Authorize the Purchase and Installation of Two OutdoorCameras at the City Beach . Page 872. Action Memorandum 18-041: Authorize the Purchase of a 2018 Dodge Ram 4x4 in theAmount of 78,991 from Mike Motors. Page 893. Junes Variance Request . Page 914. Action to approve “Application and Permit for 1 Day to 4 Day Temporary On-SaleLiquor License for North Bound Spirits. July 6th through July 8, 2018 . Page 975. Action appointing 2018 Election Judges .Page 996. Action to reactivate/appoint Marie Haataja as an on-call part-time Bartender atGrade 1, Minimum Step - 9.76 per. hr.L. Consideration of Bills . Page 101M. AdjournmentComments from visitors must be informational in nature and not exceed five (5) minutes per issue.The City Council cannot engage in a discussion or debate in those five minutes but will take theinformation and find answers if that is appropriate. As part of the City Council protocol, it isunacceptable for any speaker to slander or engage in character assassination at a public councilmeeting.City of Menahga, MNJune 11, 2018, Regular Meeting AgendaPage 2 of 2Page 8 of 158

Consent AgendaPage 9 of 158

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City of MenahgaAction Memorandum 18-039Subject: Accept and Appropriate Donations in the Amounts of 200 from Gilster Excavating and 25 from Spirit Lake Lumber for the Hooked on Fishing ProgramAgenda of: June 11, 2018Council action:Summary statement: Action Memorandum 18-039 accepts the grant and appropriates it to theHooked on Fishing line item.Fiscal information:Total amount of funds listed in this legislation: 225This legislation ( ):Has no fiscal impact Creates a positive impact in the amount of:Creates a negative impact in the amount of:Funds are ( ): BudgetedLine items(s):755-00000-36230Not budgetedAffected line item(s): 225Page 1 of 1AM 18-039Page 11 of 158

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City of MenahgaAction Memorandum 18-040Subject: Accept and Appropriate Donations in the Amounts of 250 from Ben Mar Rose Bed &Breakfast, 1,000 from Pinoniemi Chiropractic, Inc., 200 from Shell Sport & Bait, and 200 fromHarold Wenner, Ltd for the Sounds of Spirit Lake ProgramAgenda of: June 11, 2018Council action:Summary statement: Action Memorandum 18-040 accepts the grant and appropriates it to theSounds of Spirit Lake line item.Fiscal information:Total amount of funds listed in this legislation: 1,650This legislation ( ):Has no fiscal impact Creates a positive impact in the amount of:Creates a negative impact in the amount of:Funds are ( ): BudgetedLine items(s):760-00000-36230Not budgetedAffected line item(s): 1,650Page 1 of 1AM 18-040Page 13 of 158

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Agenda Date:Action:Vote:Yes:June 11, 2018No:CITY OF MENAHGA, MINNESOTAResolution No. 2018-011A Resolution of the Menahga City Council Requesting City of Menahga Police OfficerRodney Rychner be Accepted as a Member of the Public Employees Police and Fire PlanWHEREAS, the policy of the State of Minnesota as declared in Minnesota Statute 353.36Policy, is to give special consideration to employees who perform hazardous work and devote theirtime and skills to protecting the property and personal safety of others; andWHEREAS, Minnesota Statute 353.64 Subdivision 2, permits governmental subdivisions torequest coverage in the Public Employees Police and Fire Plan for eligible employees of police orsheriff departments whose position duties meet the requirements stated below.BE IT RESOLVED that the Menahga City Council hereby that the position of part-time policeofficer, currently held by Rodney Rychner meets all of the following Police and Fire Plan membershiprequirements.1. The position requires a license by the Minnesota Peace Officer Standards and TrainingBoard as stated in Minnesota Statute 626.84 through 626.863 and Rodney Rychner holdsthe required license;2. Over 50 percent of the position’s primary duty is to enforce the general criminal laws ofthe state;3. The position charges Officer Rychner with crime prevention and detention;4. The position gives Officer Rychner the full power of arrest; and5. The position is assigned to a designated police or sheriff’s department.BE IT FURTHER RESOLVED that the City of Menahga hereby requests that Rodney Rychnerbe accepted as a member of the Public Employees Police and Fire Plan effective the date RodneyRychner’s initial Police and Fire Plan salary deduction by the City of Menahga.Passed and approved by the City Council of the City of Menahga, Minnesota, eleventh day of June,2018.Patrick Foss, MayorCharleen West, Interim City AdministratorCity of Menahga, MinnesotaPage 15 of 158Resolution No. 2018-011Page 1 of 1

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Agenda reyFossJune 11, 2018AdoptedUnanimousNo:CITY OF MENAHGA, MINNESOTAResolution No. 2018-012A Resolution of the Menahga City Council Designating Authorized Signatures forCheck Signing Affecting the General Checking AccountWHEREAS, it is the City Council’s desire to have two signatures on each check; andWHEREAS, Patrick Foss was reelected as Mayor of the City of Menahga on November 8,2016; andWHEREAS, Craig Lawrey was appointed by the council to serve as Vice Mayor onNovember 8, 2016; andWHEREAS, Charleen West was appointed by the council to serve as interim CityAdministrator on May 22, 2018; andWHEREAS, Alvina Kytta was appointed by the Council to serve as Deputy Clerk onSeptember 14, 2012.NOW THEREFORE, BE IT RESOLVED by the Menahga City Council that effective June 12,2018, two of the following signatures will be placed on each check:1.2.3.4.Patrick FossCraig LawreyCharleen WestAlvina KyttaAdopted by the City Council of the City of Menahga, Minnesota, this eleventh day of June, 2018.Patrick Foss, MayorCharleen West, Interim City AdministratorCity of Menahga, MinnesotaResolution No. 2018-012Page 1 of 1Page 17 of 158

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Approval of MinutesPage 21 of 158

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City of MenahgaSpecial City Council MinutesMonday, May 14, 2018The Menahga City Council held a special meeting on Monday, May 14, 2018. Mayor Foss calledthe meeting to order at 6:30 pm.Comprising a quorum of the council, the following members were present:Tim EllingsonMaxine McNeeceDennis KomulainenPatrick FossThe council entered into a Closed Session to hold Nursing Home Administrator Laura Ahlf’s annualreview. The council exited the Closed Session and stated Ms. Ahlf had received a favorable reviewand would discuss a salary increase at a later date.The meeting adjourned at 6:55 pm.Janette M. Bower, AdministratorPatrick Foss, MayorCity of Menahga, MinnesotaMay 14, 2018, Special Meeting MinutesPage 1 of 1Page 23 of 158

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City of MenahgaRegular City Council MinutesMonday, May 14, 2018A. Call to OrderThe Menahga City Council held a regular meeting on Monday, May 14, 2018. Mayor Foss calledthe meeting to order at 7 pm.B. Roll CallComprising a quorum of the council, the following members were present:Tim EllingsonMaxine McNeeceDennis KomulainenPatrick FossC. Pledge of AllegianceD. Approval of Agenda1. Approval of consent agendaa. Action Memorandum 18-027: Accept and Appropriate Donations in the Amounts of 500 from Wevly Funeral Home, 250 from The Jewel, and 1,500 from VFW Post6206, for the Sounds of Spirit Lake Programb. Action Memorandum 18-028: Accept and Appropriate Donations in the Amounts of 750 from Gateway Lions Club, 125 from Community First Bank, and 1,500 fromVFW Post 6206, for the Hooked on Fishing Programc. Action Memorandum 18-029: Approve the Mid-Summer Celebration ParadePermit/Special Events Applicationd. Action Memorandum 18-030: Approve the Application from Guy McDermeit VFW Post#6206 for a Temporary On-Sale Liquor Licensee. Action Memorandum 18-031: Approve the League of Minnesota Cities Waiver Form2. Approval of Minutesa. September 28, 2017, Special Meeting Minutesb. April 9, 2018, Regular Meeting Minutesc. April 19, 2018, Board of Review Meeting Minutesd. April 26, 2018, Special Meeting Minutese. May 8, 2018, Special Meeting MinutesMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To approve consent agenda and minutesMcNeeceKomulainenMotion carried by unanimous voice voteFoss, Ellingson, Komulainen, McNeeceNoneE. Communication and Appearance Requests1. Luanne Mostrom – was not in attendance.City of Menahga, MinnesotaMay 14, 2018, Regular Meeting MinutesPage 1 of 6Page 25 of 158

F. Public InputG. Reports by Departments1. Greenwood Connections Administrator – Laura Ahlf Stated the Bobcat had been ordered Announced the census as 61; Spoke of Nursing Home Week; Referred to the action plans; Commented on the interest in long-term care; Stated the facility would stay with the same health insurance agency; Expanded on the building project and change orders; Announced the furniture had been ordered; Spoke of the adult and child day services; and Explained the Medical Director position.Main Motion:Moved by:Seconded by:Action:In favor:Opposed:To approve the minutes and financialsKomulainenMcNeeceMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, McNeeceNone2. Janette Bower, City Administrator Expanded on the Campground reservations; Commented on the union police department process; and Announced the City Administrator had been posted on the previous Thursday.H. Notices and CommunicationsI. Public HearingsJ. Unfinished BusinessItem 1 – Action Memorandum 18-024: Authorize the Purchase of a 2018 Dodge Ram 4x4 in theAmount of 78,991 from Mike MotorsMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To authorizeMcNeeceFossMotion failed for lack of majorityFoss, McNeeceEllingson, KomulainenCouncil Member Komulainen: Questioned why Minnesota Pump could do not continue pulling pumps; and Inquired of the funding mechanism to purchase the truck.City of Menahga, MinnesotaMay 14, 2018, Regular Meeting MinutesPage 2 of 6Page 26 of 158

Mayor Foss:Expanded on the Minnesota Pump expenses;Spoke of the current truck; andHighlighted the ages of the pumps.Council Member Ellingson: Inquired if Minnesota Pump had not shown up in the past; Asked of other service companies who could perform the work; and Inquired of the ages of the pumps.City Administrator Bower: Commented on the necessity to be licensed to perform the work; Expanded on Minnesota Pump’s availability; and Explained the funding mechanism.Council Member McNeece: Spoke of the previous meeting where Public Works Director Thelin explained the need forthe truck.K. New BusinessItem 1 – Action Memorandum 18-032: Authorize the Hire of Zach Berttunen and KeithWaaraniemi as Volunteer FirefightersMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To authorize Action Memorandum 18-032KomulainenMcNeeceMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, McNeeceNoneItem 2 – Action Memorandum 18-033: Authorize a Contract with Apex Engineering in the Amountof 14,800 for Engineering Services for the Cemetery Expansion ProjectMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To authorize Action Memorandum 18-033EllingsonMcNeeceMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, McNeeceNoneItem 3 – Action Memorandum 18-034: Authorize the Purchase of a Niche Winchester Ossuariumfrom Eickhof in an Amount Not to Exceed 45,000The matter was postponed indefinitely.City of Menahga, MinnesotaMay 14, 2018, Regular Meeting MinutesPage 3 of 6Page 27 of 158

Item 4 – Action Memorandum 18-035: Authorize the Contract with BHH Partners in the Amountof 10,000 to Complete Phase 1 of the Liquor Store Project and a Survey of the Liquor StorePropertyMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To authorize Action Memorandum 18-035KomulainenMcNeeceMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, McNeeceNoneItem 5 – Action Memorandum 18-036: Authorize the Purchase and Installation of a Salt Shedfrom Spirit Lake Lumber in an Amount not to Exceed 45,000Main Motion:Moved by:Seconded by:Action:In favor:Opposed:To authorize Action Memorandum 18-036KomulainenMcNeeceMotion carried by 3-1 voice vote.Foss, Komulainen, McNeeceEllingsonItem 6 – Action Memorandum 18-037: Authorize a Contract with Ackerman Plumbing andHeating LLC in the Amount of 8,285 for Extending the Waterline to Campsites at the CampgroundMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To authorize Action Memorandum 18-036McNeeceKomulainenMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, McNeeceNoneItem 7 – Tiny Village ProjectItem 8 – Community Garden ProjectCouncil Member McNeece: Expanded on the Tiny Village project; Spoke of the Community Garden project; Suggested some of the economic development dollars be allocated to the project; Commented on the Thriving Communities involvement and enthusiasm; Stressed the importance of ensuring available monies; and Stated the exact locations would be decided as the project moves along.Mayor Foss:Stated it was a good project for the city;Suggested others be involved to ensure its success;Spoke of the upcoming BR&E roundtable; andStated the City needed to be in front of the project.City of Menahga, MinnesotaMay 14, 2018, Regular Meeting MinutesPage 4 of 6Page 28 of 158

Discussion ensued regarding the locations and expressed interest in the projects.Main Motion:Moved by:Seconded by:Action:In favor:Opposed:To authorize 20,000 toward the projectsMcNeeceEllingsonMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, McNeeceNoneL. Consideration of BillsMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To authorize the payment of billsMcNeeceEllingsonMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, McNeeceNoneM. Closed MeetingItem 1 – Closed Meeting for Consideration of Allegations against an Individual Subject to CouncilAuthorityAfter review of the provided documents the council made a motion to place a written reprimandin the Chief Koennicke’s personnel file.Item 2 – Closed Meeting Regarding the Performance of City Administrator Janette BowerMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To accept Janette Bower’s resignationMcNeeceEllingsonMotion carried by 3-1 voice vote.Ellingson, Komulainen, McNeeceFossCouncil Member ResignationThe council read Council Member Komulainen’s resignation letter and made the following motion:Main Motion:Moved by:Seconded by:Action:In favor:Opposed:To accept Dennis Komulainen’s resignation from the councilEllingsonMcNeeceMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, McNeeceNoneMayor Foss stated he had spoken to Larry Karjala about running in the future. The council set aspecial meeting on May 22, 2018, at 8:30 am to act on the matter.City of Menahga, MinnesotaMay 14, 2018, Regular Meeting MinutesPage 5 of 6Page 29 of 158

Interim City AdministratorMayor Foss stated he had spoken to Char West to determine her interest in serving as the interim.Council discussion ensued regarding the process and use of NJPA interim staff. The matter wasadded to the May 22, 2018, special meeting agenda.N. Meeting AdjournedMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To adjourn the meeting at 9:22 pmLawreyMcNeeceMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, Lawrey, McNeeceNoneJanette M. Bower, AdministratorPatrick Foss, MayorCity of Menahga, MinnesotaMay 14, 2018, Regular Meeting MinutesPage 6 of 6Page 30 of 158

City of MenahgaSpecial City Council Meeting MinutesTuesday, May 22, 2018A. Call to OrderThe Menahga City Council held a special meeting on Tuesday, May 22, 2018. Mayor Foss calledthe meeting to order at 8:30 am.B. Roll CallComprising a quorum of the council, the following members were present:Tim EllingsonMaxine McNeeceDennis KomulainenPatrick FossCraig LawreyC. City Business Items1. Council Member AppointmentMain Motion: To appoint Larry Karjala to fill the seat vacated by CouncilMember KomulainenMoved by: KomulainenSeconded by: LawreyAction: Motion carried by unanimous voice vote.In favor: Ellingson, Komulainen, Lawrey, McNeece, FossOpposed: None2. Interim City AdministratorMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To appoint Char West as the interim City AdministratorKomulainenLawreyMotion carried by 3-2 voice vote.Komulainen, Lawrey, FossMcNeece, EllingsonMayor Foss: Voiced his opinion regarding the use of the former administrator vs appointment throughNJPA.3. Union IssueCity Administrator Bower: Stated the Police Department had voted to go union; and Expanded on her conversation with Attorney Pederson regarding negotiations.City of Menahga, MinnesotaMay 22, 2018, Special Meeting MinutesPage 1 of 2Page 31 of 158

4. Personnel PolicyMayor Foss: Stated until the union contract was successfully negotiated, the Personnel Policyupdate project would be on hold.5. Nursing Home Administrator Step IncreaseMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To increase Nursing Home Administrator Ahlf’s salary to Step 3McNeeceEllingsonMotion carried by unanimous voice vote.Ellingson, Komulainen, Lawrey, McNeece, FossNone6. Other City BusinessThe council discussed: June 11, 2018, special meeting/work session to discuss the City Administrator interviewprocess, as well as other city business. The meeting was scheduled for 4:30 pm; June 11, 2018, 6 pm to receive the audit report; Liquor Store Project; Campground Project; The Beach as a Wayside Stop, the project to update the property, and the council’s desireto receive updated information concerning security cameras; An additional full-time public works department employee; Street striping, speed bumps, street signs; City reader board; and Paving the City right-of-way adjacent to North Country Motorsports.D. Meeting AdjournedMain Motion:Moved by:Seconded by:Action:In favor:Opposed:To adjourn the meeting at 9:20 amKomulainenLawreyMotion carried by unanimous voice vote.Foss, Ellingson, Komulainen, Lawrey, McNeeceNoneJanette M. Bower, AdministratorPatrick Foss, MayorCity of Menahga, MinnesotaMay 22, 2018, Special Meeting MinutesPage 2 of 2Page 32 of 158

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ReportsPage 37 of 158

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Greenwood ConnectionsAdministrator’s ReportPage 39 of 158

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LEASE AGREEMENTTHIS LEASE is entered into by Menahga Public Schools, and Green Pine Acres Nursing Home/City ofMenahga (“Landlord”). The parties agree as follows:1. PREMISES AND COMMON AREAS:Landlord leases to Menahga Public School, upon all of the terms and conditions hereof, the followingpremises (the “Premises”):a. An area consisting of one classroom space on the lower level of the building located on land andcommonly known as 427 Main Street NE, Menahga, MN 56464, such land and building beingreferred to as the “Building”.b. Menahga Public School and its invitees have the right to use all parking spaces associated with theBuilding.c. Menahga Public School and its agents, employees and invitees have the right, together withLandlord and others designated by Landlord, to the use of the common areas in the Building(including bathrooms, hallways, and classroom storage areas) for the common areas intended andnormal purposes.2. TERM:a. The term of this Lease shall begin on September 4th, 2018 and shall continue, unless soonerterminated or extended as herein provided, until January 18, 2019.b. Early Termination. Notwithstanding anything to the contrary contained herein, Menahga PublicSchool shall have the right to terminate this Lease by giving Landlord 30 days’ written notice at anytime during the term of this Lease. Upon such termination of this Lease, Menahga Public Schoolshall have no further obligations or responsibilities under this Lease or relating to the Premises, andLandlord shall be deemed to have released Menahga Public School from any such furtherobligations or responsibilities without the need for further action on the part of Landlord.3. RENT: Menahga Public School agrees to pay, and Landlord agrees to accept, as rent for the Premises,per month, the sum of Two Hundred Eighty and no/100 dollars ( 280.00), payable either in monthlyinstallments and/or a total of One Thousand-Four Hundred and no/100 Dollars ( 1,400.00) for theterm of this agreement which represents five (5) months. Said payment(s) shall be paid by the first ofeach month, or the total may be paid on or before September 30th, 2018.4. PROPERTY TAXES: Landlord shall be responsible for and shall pay when due, all real estate taxes andspecial assessments, which at any time during the term hereof may be assessed, levied, imposed uponor become due and payable with respect to the Premises.5. COSTS AND UTILITIES:a. Paid by Menahga Public School: In addition to the monthly rent, Menahga School District shall beresponsible for direct payment of the following costs: NONE.b. Paid by Landlord: The Landlord shall be responsible for direct payment of the following costs,which are included in the monthly rent: Landlord will pay all water, pest control, garbage, sewer,electric and gas cost of the facility. Landlord shall pay for phone and internet services.Page 69 of 158

6. DEPOSIT: Within ten (10) days of execution of this Lease, Menahga Public School shall pay a deposit toLandlord to secure Menahga Public School performance of its obligations under the Lease.No Deposit Required7. USE OF PROPERTY. Menahga Public School District shall use and occupy the Premises only for thepurpose of providing Certified Nursing Assistant class, and directly related activities, and for no otherpurpose. Landlord warrants, as a term of this Lease, that the Premises meets all federal, state andlocal standards applicable to the Certified Nursing Assistant class taking place in the Premises. In theevent that it is determined by Menahga Public School District that the Premises fails to meet anyfederal, state or local standard applicable to program operations in the Premises, the failure mayconstitute an event of default on the part of the Landlord.8. INSURANCE.a. Landlord’s Insurance. Landlord shall maintain insurance with respect to the Premises against loss ordamage by fire, lightning, windstorm, tornado, hail and such other risks as are customarily coveredby extended coverage endorsement, in an amount sufficient to cover the replacement cost of thePremises. The cost shall be paid by Landlord. Landlord shall also maintain general liability insuranceon any common areas shared by Menahga Public School.b. General. Within ten (10) days after the execution of this Lease, and prior to the expiration of eachpolicy, Landlord shall furnish to the Menahga Public School District, a certificate of insuranceevidencing the coverage required hereunder and, upon request shall furnish a copy of any policyrequired hereunder.9. WAIVER OF SUBROGATION. Notwithstanding any other provision in this Lease to the contrary,Landlord and Menahga Public School hereby agree, for themselves and their respective insurers,successors and assigns, that neither of them will, either directly or by way of subrogation or otherwise,assert against the other any claim that the other is liable or responsible for any loss or damage that iscovered by property or liability insurance maintained by a party or that would be covered if each partymaintained all insurance required to be maintained hereunder, even if such loss or damage shall havebeen caused by the fault or negligence of the other party, or of anyone for whom such party may beresponsible. Landlord shall take all necessary action to confirm that their insurer has agreed to theforegoing limitation on recoveries by subrogation or otherwise.10. DAMAGE OR DESTRUCTION OF PREMISES. In the event the Premises are damaged or destroyed by fireor other casualty to the extent that a substantial part of the Premises are rendered substantially untenantable, Menahga Public Schools may terminate this Lease by written notice to Landlord givenwithin 30 days after such damage or destruction. If Menahga Public School does not give such noticeto terminate, then Landlord shall restore the Premises to a condition at least as good as exists on thedate hereof, and rent shall abate hereunder from the date the Premises are rendered un-tenantableuntil the Premises are restored to tenant-ability.Page 70 of 158

11. DEFAULT:a. BY Landlord: In the event that Landlord defaults in the performance of any obligation under thisLease, Menahga Public School shall provide Landlord with written notice of the default. In theevent that the default is not cured within thirty (30) days, this Lease shall terminate, and MenahgaPublic School may vacate the Premises and shall have no further obligations under the Lease orrelating to the Premises.12. ASSIGNMENT: Landlord shall not assign the Lease or sublet all or any part of the Premises withoutMenahga Public School's prior written consent, which consent shall not be unreasonably withheld ordelayed.13. NOTICE: Notice under this Lease shall be given in writing, U.S. Mail, postage pre-paid and addressed asnoted below, and shall be effective three (3) days after the date upon which notice is given:If to Landlord:Administrator: Laura AhlfGreen

City of Menahga City Council Special Meeting June 11, 2018, 4:30 pm City Council Special Meeting June 11, 2018, 6 pm City Council Regular Meeting June 11, 2018, 7 pm Menahga City Council Chambers 115 2nd Street NE, Menahga www.cityofmenahga.com Page 1 of 158. Page 2 of 158.