ITEM 3.8 Election equipment lease06egoF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Clerk Loff
May 29, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator/Finance Director Flaherty
City Attorney MacArthur
3.8
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:
Approve Wright County and City of Otsego Election Equipment Lease Agreement.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKGROUND/JUSTIFICATION:
The city had budgeted $40,200 in 2018 for replacement of the existing election optical scanners for the
precincts within Otsego; City Clerk Loff held off with the purchase after Wright County was in talks of taking
over the purchase and maintenance of all Wright County precincts election equipment.
Starting with the 2018 Primary Election all precincts in Wright County will be using electronic poll pads to
register and check- in voters. By the 2020 Primary Election, all precincts will be using the new DS200 optical
scanner. Wright County will be providing the funding for this equipment. They are asking each municipality
to enter into the enclosed Election Equipment Lease Agreement. The only costs to the City will be a
$200.00 annual maintenance fee for each DS200 optical scanner and each AutoMark. All other expenses,
including the maintenance of poll pads, are being covered by the county. The City will be responsible for
the transfer of machines from County to the precincts and vice versa. The City Attorney has reviewed the
agreement and recommends approval.
Starting in 2019 the total amount for Otsego would be:
P1A; two optical scanners and one AutoMark $600
P2A and P3; three optical scanners and one AutoMark 800
Total $1,400
SUPPORTING DOCUMENTS ATTACHED:
• Letter from Robert Hilvala, Wright County Auditor/Treasurer
• Wright County/City of Otsego Election Equipment Lease Agreement
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve the Wright County and City of Otsego Election Equipment Lease Agreement.
BUDGET INFORMATION
FUNDING: BUDGETED:
101-41410-210; Election Operating Supplies
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May 17, 2018
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Adam Flaherty
13400 90th Street NE
Robert J. Hilvala,
Otsego, MN 55330
Auditor/Treasurer
10 2nd St. NW, Room 230
Buffalo, MN 55313
RE: Standardization of Election Equipment
Ph: (763) 682-7578
Fax: (763) 682-7873
www.co.wright.mmus
Mr. Adam Flaherty,
There is nothing more fundamental about the work we do as civil servants than to
provide for and administer a fair and efficient election for our constituents. To that
end, my office, along with the Wright County Board of Commissioners, recently
adopted resolution 18-23 which provides for the acquisition and standardization of
election equipment over the next two election cycles. Wright County is prepared to
expend a significant amount of resources in updating and maintaining our election
systems in Wright County,
Starting with the 2018 State Primary Election all precincts in Wright County will be
using electronic poll pads to register and check -in voters, By the 2020 State Primary
election, all precincts will be using the new DS200 optical scanner. Wright County
is providing and securing the funding for all this equipment. As part of this effort
we are asking each municipality and township enter into the enclosed Election
Equipment Lease Agreement. The only cost to the municipality by entering into this
agreement with the County is a $200.00 annual maintenance fee for each DS200 and
Assisted Voting Machine (e.g. AutoMark). All other expenses, including the
maintenance fees for the poll pads, are being covered by Wright County. Wright
County is hopeful that, with legislative approval, we can deploy new technology in
the future to replace our aging AutoMark systems. When that happens Wright
County will again be providing the funds to replace this equipment,
Resolution 18-23 also provides a method for Wright County to purchase
additional election equipment for your municipality in the event you decide to
create a new precinct. This resolution provides a timeline for notification to our
office and a timeline to finalize the creation of new precincts, This timeline
allows Wright County to budget for any additional equipment while also
following the deadlines mandated under Minn. Stat. § 204B.14 Subd, 4, Please
note that if your municipality would like Wright County to purchase new election
An Equal Opportunity Employer
equipment, the newly created precinct needs to meet the population guidelines established by the
Minnesota Secretary of State and as stated in the enclosed resolution,
Please review the enclosed agreement. If this meets your municipalities' approval please execute the
same and return it to our office. We are hoping to have this process completed by July 1". As always
if you have any questions or concerns please feel free to email or call.
Sincerely,
Robert J. Hiivala
Wright County Auditor/Treasurer
RJH/js
Enclosures: Resolution 18-23
d
Date March 20, 2018
Motion by Commissioner Borrell
BOARD OF COUNTY COMMISSIONERS
WRIGHT COUNTY, MINNESOTA
Resolution No. 18-23
Seconded by Commissioner
RESOLUTION
Vetsch
RESOLUTION CREATING A PROCESS FOR THE ACQUISITION AND STANDARDIZATION OF
ELECTION VOTING EQUIPMENT IN THE COUNTY OF WRIGHT
(See Attached)
YES
HUSOM
X
HUSOM
VETSCH
X
VETSCH
DALEIDEN
X
DALEIDEN
POTTER
X
POTTER
BORRELL
X
BORRELL
STATE OF MINNESOTA)
ss,
County of Wright )
NO
I, Lee Kelly, duly appointed and qualified County Coordinator of the County of Wright, State of Minnesota, do hereby
certify that I have compared the foregoing copy of this resolution with the original minutes of the proceedings of the
Board of County Commissioners, Wright County, Minnesota, at their session held on the 20th day of March, 2018, now
on file in my office, and, have found the same to be a true and correct copy thereof.
Witness my hand and oWicial'seai at Buffalo, Minnesota, this 2011 day of March 2018.
Lee Kelly, County Coordin or
1
RESOLUTION CREATING A PROCESS FOR THE ACQUISITION AND STANDARDIZATION OF
ELECTION VOTING EQUIPMENT IN THE COUNTY OF WRIGHT
WHEREAS, the Wright County Board of Commissioners desires to create a program to provide funds to
replace older voting equipment, to assist in the efficient administration of elections, and to provide all
municipalities in Wright County with up to date and modern voting equipment;
WHEREAS, the County of Wright historically has left it to individual municipalities to acquire and
maintain all election equipment;
WHEREAS, the County of Wright now desires to establish a program in which the County of Wright
assumes the financial burden of acquiring and updating all election equipment, to provide for uniformity
in all elections, and to improve efficiencies in the voting experience;
WHEREAS, voting in a fundamental right and all citizens residing in the County of Wright are entitled to
have access to the modern voting equipment regardless of the jurisdiction in which they reside;
WHEREAS, the Minnesota Secretary of State recommends that voting precincts contain no more than
2,000 to 3,000 registered voters;
WHEREAS, the Wright County Auditor/Treasurer and the Wright County Board of Commissioners desire
for all precincts in the County of Wright to be efficient, to quickly move voters though the polling place
with minimal delay, to reduce wait times at the polling place and to have less than 2,000 registered
voters;
NOW THEREFORE BE IT RESOLVED, the County of Wright, in phases and after entering in agreements
with each municipality, will provide election voting equipment for all existing precincts starting with the
2018 State of Minnesota primary election;
BE IT FURTHER RESOLVED, the County of Wright affirms the declaration of the Wright County
Auditor/Treasurer acting in his capacity as the Election Administrator, that all precincts in the County of
Wright starting with the 2018 State of Minnesota primary election shall utilize electronic poll pads and
that all precincts in the County of Wright starting with the 2020 State of Minnesota primary election
shall utilize the DS200 tabulator;
BE IT FURTHER RESOLVED, the County of Wright in 2018 will provide all existing precincts in the County
of Wright with a sufficient number of electronic poll pads to effectively and efficiently administer
elections;
BE IT FURTHER RESOLVED, the County of Wright prior to the 2020 State of Minnesota primary election
will provide a DS200 to all existing precincts;
BE IT FURTHER RESOLVED, the County of Wright, after entering into an agreement with the municipality,
will acquire at its own expense a DS200, Assisted Voting Technology equipment, and a sufficient number
of electronic poll pads to be used in any newly created precinct which, at its inception, has less than
2,000 registered voters;
2
BE IT FURTHER RESOLVED, any municipality which desires to have the County of Wright supply its voting
equipment for newly created precinct, must notify the Wright County Auditor/Treasurer of its intent to
create a new precinct by June 1st of every odd year and finalize the process for creating a new precinct
by October 311t of every odd year,
BE IT FURTHER RESOLVED, the County of Wright will not supply the voting equipment for a newly
created precinct that is located in the same building as an existing precinct unless the new precinct is
being created due to restrictions caused by redistricting after the decennial census, or the municipality
certifies it has exhausted all other options for the designation of polling place at another location
meeting the requirements of Minn. Stat. § 204B.16.
BE IT FURTHER RESOLVED, any municipality which desires to have the County of Wright supply its voting
equipment shall agree to create a new precinct in the event the number of registered voters in the
newly created precinct exceeds 3,000.
WRIGHT COUNTY/OTSEGO CITY
ELECTION EQUIPMENT LEASE AGREEMENT
THIS AGREEMENT, made by and between the COUNTY OF WRIGHT and the
OTSEGO CITY both political subdivisions of the State of Minnesota, hereinafter referred
to as the County and the Municipality respectively. For purposes of this Agreement,
the address of the County is 10 2"d Street N.W., Suite 230, Buffalo, Minnesota 55313
and the address of the Municipality is 13400 90th Street NE, Otsego, MN 55330.
WITNESSETH
WHEREAS, the Wright County Board of Commissioners in Resolution Number
18-23 authorized the purchase of election equipment (hereinafter "Election Equipment")
for a countywide digital scan voting system, election hardware and services; and
WHEREAS, the Wright County Board of Commissioners in Resolution Number
18-23 authorized the purchase of Assisted Voting Technology equipment (hereinafter
"AVT Equipment") for a countywide optical scan voting system, election hardware and
services; and
WHEREAS, the County pursuant to Minn. Stat. § 471.85 may transfer property to
the Municipality for its use; and
WHEREAS, the County desires to lease Election Equipment to Otsego City for
use in all elections.
NOW THEREFORE, in consideration of the mutual undertakings and
agreements hereinafter set forth, the County and the Municipality agree as follows:
Section 1
SCOPE OF AGREEMENT
1.1 Starting with the 2020 State Primary Election, the County hereby leases to the
Municipality at the cost identified below and subject to the terms and conditions
of this Agreement, and the Municipality hereby agrees to lease from the County
Election Equipment identified as: 5 DS200 Digital Scan Precinct Count Unit(s),
and 5 DS200 Plastic Ballot Box(es) for polling places contained within the
Municipality.
1.2 During the term of this Agreement and subject to the terms herein, County
hereby provides to Municipality and grants Municipality a limited, revocable, non-
exclusive, royalty -free license to use 12 KNOWiNK Poll Pad Hardware and
Software units, a sufficient number of Verizon Hotspot(s) Solutions and wireless
access point(s) (the "KNOWiNK Poll Pad") exclusively for official election use.
Unless County otherwise agrees in writing, said license is restricted to access
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and use of the Election Equipment by Municipality's employees, contracted
personnel and duly authorized election officials performing election duties and
responsibilities on behalf of Municipality.
1.3 The County hereby leases to the Municipality at the cost identified below and
subject to the terms and conditions of this Agreement, and the Municipality
hereby agrees to lease from the County Election Equipment identified as: 12
KNOWiNK Poll Pad Systems (including a !Pad WiFi 32 gb, Charger, Printer,
Transport Case, Stand, Stylus, and Wireless Hotspot solution) for polling places
contained within the Municipality.
1.4 Subject to the terms and conditions of this Agreement, the parties may agree by
written addendum executed by all the parties to increase or decrease the County
Election Equipment included within the scope of this agreement. Wright County
hereby delegates authority to execute such an addendum to the County
Auditor/Treasurer. The Municipality hereby delegates authority to execute such
an addendum to its City Administrator/Clerk.
Section 2
OWNERSHIP
2.1 The Municipality acknowledges that the County owns the Election Equipment
and that the Municipality is authorized to use said Election Equipment for official
election related purposes. Use of the Election Equipment for any other purpose
is strictly prohibited absent express written consent of the County
Auditor/Treasurer.
2.2 The Municipality acknowledges and agrees that the Election Equipment may
contain proprietary and trade secret information that is owned by Election
Systems and Software (ES&S) or KNOWINK, LLC and is protected under federal
copyright law or other laws, rules, regulations and decisions. The Municipality
shall protect and maintain the proprietary and trade secret status of the Election
and AVT Equipment.
Section 3
HANDLING OF EQUIPMENT AND INDEMNIFICATION
3.1 The Municipality shall be responsible for the Election Equipment while it is in the
Municipality's custody. The Municipality, either through insurance or a self-
insurance program, shall be responsible for all costs, fees, damages and
expenses including but not limited to personal injury, storage, damage, repair
and/or replacement of the Election Equipment while it's in the Municipality's
custody and this contract is in effect, consistent with the Municipality's defense
and indemnity obligations contained in Section 7.6 herein.
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3.2 The Municipality shall be responsible for the transporting of the Election
Equipment from and to the County. Upon termination of this Agreement, the
Municipality shall forthwith deliver the Election Equipment to the County or its
designee, complete and in good order and working condition. The Municipality
shall be responsible for all costs, including but not limited to shipping, related to
the repair or replacement of lost, stolen, destroyed or damaged Election
Equipment.
3.3 Municipality shall secure, safeguard and control the Election Equipment,
including but not limited to system authentication and passwords, in the same
manner that Municipality secures, safeguards and controls its own critical or
confidential equipment, systems, software, data, passwords or other information.
While the Election Equipment is in Municipality's possession, custody and/or
control, Municipality shall exercise best efforts to (i) use and handle the Election
Equipment in a manner that avoids damage or harm to the Election Equipment;
(ii) use and handle the Election Equipment in accordance with County direction
and any third -party specification; and (Ili) safeguard and secure the Election
Equipment from theft, loss or other damage.
Section 4
TERM, TERMINATION
4.1 The Municipality and the County agree that this Agreement is in effect
commencing upon signature by the County. The Municipality and County agree
that this Agreement will terminate when the Municipality and County mutually
agree that the equipment will no longer be used for the Municipality's elections,
unless terminated sooner by either party with cause upon seven (7) calendar
days' written notice to the other.
Section 5
MAINTENANCE
5.1 Maintenance Agreement (DS200 and AutoMark) The County has entered into
a Maintenance Agreement with Election Systems & Software for the
maintenance of the DS200 and AutoMark. Starting in 2019, the Municipality
agrees that it will reimburse the County two hundred dollars ($200.00) for
maintenance and license fees associated with the each DS200 and each
AutoMark leased to, or owned by the Municipality. The Municipality agrees to
reimburse the County within 60 days of invoice. The Municipality and the County
agree to renegotiate this reimbursement fee in the event the maintenance and
license fees increase by more than 25%.
5.2 The Municipality agrees not to make any repairs, changes, modifications or
alterations to the Election Equipment that are not authorized by Wright County
and said vendors.
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5.3 After reasonable notice, the County shall have the right to enter into and upon
the premises where the Election Equipment is located for the purposes of
inspecting the same or observing its use, except that on an election day the
County is not required to provide any reasonable notice. On an annual basis,
during the term of this Agreement, the Municipality shall comply with the County's
request for verification of Election Equipment inventory.
5.4 The Municipality agrees to provide notice to Election Systems & Software of any
defects or malfunctions with the DS200 Election Equipment within twenty-four
(24) hours. The Municipality also agrees to provide notice to KNOWINK, LLC of
any defects or malfunctions with the KNOWiNK Poll Pad within twenty-four (24)
hours. The Municipality also agrees to provide the County with notice of such
malfunctions or defects and Election Systems & Software's/KNOWINK's
response within a reasonable time. The county agrees to track via a log all such
equipment malfunctions.
Section 6
PROGRAMMING AND ACCUMULATION
6.1 Programming. The County will be responsible for programming the DS200
Digital Scan Election Equipment and the KNOWINK Poll Pads at no charge to
jurisdictions for all races in all elections.
6.2 Voter Registration Updates. The County has invested a significant amount of
resources in equipment that allows the KNOWINK Poll Pads to electronically
transmit and receive live voter registration updates via wireless technology from
each polling place to a central location and for those updates to be linked to the
Statewide Voter Registration System. There is also a significant operational cost
associated with this transmission and update process. The Municipality agrees
to assist the County and the County's vendor in setting up and maintaining this
transmission and update system. The parties agree Wright County is assuming
all costs for this service and the licensing and maintenance of the KNOWiNK poll
pads.
Section 7
OTHER TERMS AND CONDITIONS
7.1 No Waiver. No delay or omission by either party hereto to exercise any right or
power occurring upon any noncompliance or default by the other party with
respect to any of the terms of this Agreement shall impair any such right or power
or be construed to be a waiver thereof unless the same is consented to in writing.
A waiver by either of the parties hereto of any of the covenants, conditions, or
agreements to be observed by the other shall not be construed to be a waiver of
any succeeding breach thereof or of any covenant, condition, or agreement
herein contained. All remedies provided for in this Agreement shall be
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cumulative and in addition to, and not in lieu of, any other remedies available to
either party at law, in equity, or otherwise.
7.2 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota.
7.3 Entire Agreement. It is understood and agreed that the entire Agreement
between the parties is contained herein and that this Agreement supersedes all
oral agreements and negotiations between the parties relating to the subject
matter hereof. All items referred to in this Agreement are incorporated or
attached and are deemed to be part of this Agreement. Any alterations,
variations, modifications, or waivers of provisions of this Agreement shall only be
valid when they have been reduced to writing as an amendment to this
Agreement signed by the parties hereto.
7.4 No Assignment. Neither party shall assign, sublet or transfer this Agreement,
either in whole or in part, without the prior written consent of the other party, and
any attempt to do so shall be void and of no force and effect.
7.5 DISCLAIMER, LIABILITY AND LIMITATION OF LIABILITY
COUNTY, BY AND THROUGH ITS DULY AUTHORIZED VENDOR, IS
PROVIDING THE ELECTION EQUIPMENT ON AN AS -IS BASIS WITH NO
SUPPORT WHATSOEVER. OTHER THAN AS STATED IN THIS
AGREEMENT, THERE IS NO WARRANTY OF MERCHANTABILITY, NO
WARRANTY OF FITNESS FOR PARTICULAR USE, NO WARRANTY OF NON -
INFRINGEMENT, NO WARRANTY REGARDING THE USE OF THE
INFORMATION OR THE RESULTS THEREOF AND NO OTHER WARRANTY
OF ANY KIND, EXPRESS OR IMPLIED.
THE MUNICIPALITY ACKNOWLEDGES AND AGREES THAT COUNTY DOES
NOT OWN OR CONTROL THE DATA SOURCE/SYSTEM NECESSARY FOR
OPERATION OF THE ELECTION EQUIPMENT. WITHOUT LIMITING THE
FOREGOING, COUNTY DOES NOT WARRANT THE PERFORMANCE OF
THE ELECTION EQUIPMENT OR RELATED COMMUNICATIONS OR
CONNECTIONS TO ANY DATA SOURCE/SYSTEM, THAT THE DATA
SOURCE/SYSTEM WILL BE UNINTERRUPTED OR ERROR FREE, THAT THE
DATA IS ACCURATE, COMPLETE AND CURRENT OR THAT DATA DEFECTS
WILL BE CORRECTED, OR THAT THE DATA SOURCE/SYSTEM IS FREE OF
HARMFUL CODE.
IN NO EVENT SHALL COUNTY BE LIABLE FOR ACTUAL, DIRECT,
INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL DAMAGES OR LOSS
OF PROFIT, LOSS OF BUSINESS OR ANY OTHER FINANCIAL LOSS OR
ANY OTHER DAMAGES EVEN IF COUNTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGE. COUNTY'S SOLE LIABILITY AND THE
MUNICIPALITY'S SOLE AND EXCLUSIVE REMEDY FOR ANY DAMAGES
RELATED TO THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO
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LIABILITY FOR ELECTION EQUIPMENT NONPERFORMANCE, ERRORS OR
OMISSIONS, SHALL BE LIMITED TO RESTORING OR CORRECTING THE
ELECTION EQUIPMENT TO THE EXTENT AND DEGREE COUNTY IS
CAPABLE OF PERFORMING THE SAME AND AS IS REASONABLY
POSSIBLE UNDER THE PERTINENT CIRCUMSTANCES.
7.6 The County and the Municipality agree each will be responsible for their own acts
and omissions under this Agreement and the results thereof and shall to the
extent authorized by law defend, indemnify and hold harmless the other party for
such acts. Each party shall not be responsible for the acts, errors or omissions
of the other party under the Agreement and the results thereof. The parties'
respective liabilities shall be governed by the provisions of the Municipal Tort
Claims Act, Minnesota Statutes Chapter 466, and other applicable law. This
paragraph shall not be construed to bar legal remedies one party may have for
the other party's failure to fulfill its obligations under this Agreement. Nothing in
this Agreement constitutes a waiver by the Municipality or County of any
statutory or common law defenses, immunities, or limits on liability. The statutory
limits of liability for the parties may not be added together or stacked to increase
the maximum amount of liability for either or both parties.
7.7 Notice. Any notice or demand shall be in writing and shall be sent registered or
certified mail to the other party addressed as follows:
To the Municipality: Otsego City
13400 90th Street NE
Otsego, MN 55330
To the County: Robert Hiivala
Wright County Auditor/Treasurer
10 2"d Street N.W., Suite 230
Buffalo, MN 55313
7.8 Audit Provision. Both parties agree that either party, the State Auditor, the
Minnesota Secretary of State, or any of their duly authorized representatives at
any time during normal business hours, and as often as they may reasonably
deem necessary, shall have access to and the right to examine, audit, excerpt,
and transcribe any books, documents, papers, records, etc., which are pertinent
to the accounting practices and procedures of the other party and involve
transactions relating to this Agreement. Such materials shall be maintained and
such access and rights shall be in force and effect during the period of the
contract and for six (6) years after its termination or cancellation.
7.9 Data Practices. The parties, their officers, agents, owners, partners, employees,
volunteers and subcontractors shall abide by the provisions of the Minnesota
Government Data Practices Act, Minnesota Statutes, chapter 13 (MGDPA) and
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all other applicable state and federal laws, rules, regulations and orders relating
to data privacy or confidentiality, which may include the Health Insurance
Portability and Accountability Act of 1996 (HIPAA).
7.9 Whereas Clauses. The matters set forth in the "Whereas" clauses on page one
of this Agreement are incorporated into and made a part hereof by this reference.
7.10 Survival of Provisions. It is expressly understood and agreed that the
obligations and warranties of the Municipality and County hereof shall survive the
completion of performance and termination or cancellation of this Agreement.
7.11 Authority. The person or persons executing this Lease Agreement on behalf of
the Municipality and County represent that they are duly authorized to execute
this Lease Agreement on behalf of the Municipality and the County and represent
and warrant that this Lease Agreement is a legal, valid and binding obligation
and is enforceable in accordance with its terms.
THE REMAINDER OF THIS PAGE IS BLANK.
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APPROVAL
COUNTY OF WRIGHT
STATE OF MINNESOTA
Bv:
County Coordinator
Date:
CONTRACTOR
CONTRACTOR warrants that the person who
executed this Agreement is authorized to do so
on behalf of CONTRACTOR as required by
applicable articles, bylaws, resolutions or
ordinances*.
OTSEGO CITY
By:
Printed Name:
Printed Title:
Date:
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