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ITEM 3.6 Arbor Creek 3rd PhaseotS111.1: e O MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 27 November 2017 PRESENTER(s) REVIEWED BY: ITEM #: Consent Agenda City Administrator Flaherty 3.6 —Arbor Creek 3rd Phase 6 City Engineer Wagner City Attorney MacArthur AGENDA ITEM DETAILS RECOMMENDATION: City staff recommends approval an agreement with Centra Homes regarding the securities for construction of improvements for Arbor Creek 3 d Phase 3. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: Centra Homes owns the final platted, undeveloped lots in Arbor Creek 3rd Addition east of MacIver Avenue. Emmerich Development, the original developer of Arbor Creek, received City Council approval of the Arbor Creek 3`d Addition Final Plat on 10 January 2005 and started construction of improvements. However, construction was halted as the effects of the recession were beginning to slow demand for additional lots. The public improvements within the portion of Arbor Creek 3rd Addition west of MacIver Avenue were completed (and all but two lots now built upon) but the area east of MacIver Avenue was left partially graded with some water and sewer pipes installed in open trenches. Centra Homes has entered into an agreement with the City whereby Centra Homes acknowledges that the City will not issue building permits to lots without access to public improvements that will be recorded with these lots of record. This agreement further provides that separate agreements will be entered into for each phase of construction requiring Centra Homes to submit additional securities for the improvements being installed within each specific phase to provide for oversight and ensure completion. This agreement allows Centra Homes to limit the security required to the amount needed only those areas of Arbor Creek 3rd east of MacIver Avenue being completed while allowing the City protection against a request to issue building permits for the existing final platted lots remaining without adjacent streets or utilities completed. Centra Homes is proceeding with the construction of improvements necessary to make ready 39 single family lots in the area of Arbor Creek 3`d Addition east of MacIver Avenue to be known as Phase 6. Testing has been done regarding the in-place utility lines to verify their integrity and the City Engineer has worked with Centra Homes regarding the existing approved construction plans for site grading and street construction. The City Attorney has drafted an addendum to the development contract that allows Centra Homes to proceed with the improvements with the posting of security to ensure completion and escrows for cost incurred by the City overseeing the project. I SUPPORTING DOCUMENTS ATTACHED: I ■ Arbor Creek 3`d Addition Phase 6 ■ Engineers Report dated November 21, 2017 ■ Draft Addendum to Development Agreement ■ Resolution 2017-95 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt Resolution 2017-95 approving an addendum to the Development Agreement for Arbor Creek 3`d Addition Phase 6. BUDGET INFORMATION FUNDING: BUDGETED: NA IIIcruet M 2iAMON ... ., :.. 1 r--- Lown MA9.9iooN W 1 % •, i �` cn oa r— y—� 1 _ . . i --- Q• 1 [til •••� r �' /� �,, / 1 .<_ tI---- E-1 L e �s 1 r— W I a MAN-OOH19W I I 42P _ e:3 I� ----i `.� 1----L--�� (`--i--�1 l`�_�_�±_'% �`� - , I __x_1__1 1`-- � • ♦ r_.r-T--- _r Sq! 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C400N �OIv, �� _ . 8a z mg I $s cl, I M I�C-j m mj --JL --J s`•Xim3 DO9,.s L --J W.R R -----•l4'Z09Z M.eZ,f400N - —. . —..—.. _.. _.. _..—..—..—..�. n J n I Review No. 1 Hakanson 1-11—Underson ENGINEERING REVIEW Residential Subdivision for the City of Otsego by Hakanson Anderson Submitted to: Honorable Mayor and City Council cc: Adam Flaherty, City Administrator/Finance Director Tami Loff, City Clerk Dan Licht, City Planner Andy MacArthur, City Attorney Tate Baxter, Centra Homes, LLC Eric Luth, P.E., Sambatek Reviewed by: Ronald J. Wagner, P.E. Brent M. Larson, P.E. Date: November 21, 2017 Proposed Development: Arbor Creek Yd Addition — Phase 6 Street Location A portion of the NW 1/4 of the NW 1/4 of Section 30, T121, R23 Of Property: Also a portion of Arbor Creek Yd located East of Maciver Avenue NE and North & South of Otsego Creek. Applicant: Tate Baxter Developer: Centra Homes, LLC 11460 Robinson Drive NW Coon Rapids, MN 55433 Owners of Record: Centra Homes, LLC Purpose: Arbor Creek Yd Addition —Phase 6 is a proposed 39 single-family residential lot development on approximately 19.4 acres in the City of Otsego, Wright County, Minnesota. The proposed Phase 6 development is already partially served with municipal water and sanitary sewer. The remainder of Phase 6 development will be served with municipal water, sanitary sewer, storm sewer, and public streets typical of an urban setting. Jurisdictional Agencies: City of Otsego, Wright County, Minnesota Department of (but not limited to) Health, Minnesota Department of Natural Resources, Minnesota Pollution Control Agency, Wright Soil and Water Conservation District. Permits Required: NPDES, Minnesota Department of Health (water), (but not limited to) Minnesota Pollution Control Agency (sanitary sewer), and Wright County TABLE OF CONTENTS INFORMATION AVAILABLE FINAL PLAT CONSTRUCTION PLANS TITLE SHEET EXISTING CONDITIONS SITE PLAN GRADING PLAN EROSION CONTROL SANITARY SEWER AND WATERMAIN PROFILE STORM SEWER PLAN AND PROFILE STREET PLAN AND PROFILE DETAILS LANDSCAPE PLAN AND DETAILS HYDROLOGY & STORM SEWER DESIGN EN M OTHER CONSIDERATIONS SUMMARY AND/OR RECOMMENDATIONS PAGE 2 S:\Municipal\Aotsego22xx\2293.06\ot2293.06 RVW1.docx INFORMATION AVAILABLE Site Development Plans for Arbor Creek aid Addition — Phase 6, dated 11/3/17, by Sambatek. Final Plat for Arbor Creek aid Addition, dated 5/24/05, by Sambatek. Storm Sewer Design Calculations for Arbor Creek 3rd Addition, dated 5/27/05, by Sambatek. Stormwater Management Report, dated July 2005, by McCombs Frank Roos Associates, Inc. Geotechnical Report for Arbor Creek aid, dated 12/19/02, by STS Consultants, LTD. Additional Information Minnesota Rules, Chapter 4410 — EAW Requirement City of Otsego Engineering Manual City of Otsego Zoning and Subdivision Ordinances National Wetland Inventory Map PAGE 3 S:\Municipal\Aotsego22xx\2293.06\ot2293.06 RVW1.docx FINAL PLAT The final plat for Arbor Creek 3rd Addition was filed with Wright county on June 30, 2005 and includes the 39 lots in Phase 6. CONSTRUCTION PLANS Title Sheet (Sheet C1.01) 2. Provide an approval signature line for Ronald J. Wagner, P.E. City Engineer. 3. A benchmark and datum (NGVD 1929) shall be listed on the title sheet. 4. Please check project area hatching within the vicinity map. It appears some of the project is not displayed to the south of 75th Street along Mackenzie Avenue. The "Not For Construction" label shall be removed. Existing Conditions (Sheets C2.01 -C2.02) Label the existing watermain pipe sizes and both existing valves located to the south of Mackenzie Avenue on the existing watermain. 7. The existing 16" watermain along Mackenzie Avenue is stub approximately 35' south of the storm catch basin near the intersection of 77th Street and is stubbed to the property south line at the south plat line. Please revise. Show the existing delineated wetland edges along the Otsego Creek and in the rear of Lot 6, Block 13. (All sheets) Site Plan (Sheets C3.01 -C3.02) 9. Where new pavement will tie into existing pavement the existing pavement shall be milled 18" wide prior to the wear course to stagger the joint. Gradin Pg lan (Sheets C4.01 -C4.02) 10. Label the NWL and HWL of the Otsego Creek as well as the NWL, 2 -yr, 10 -yr, and 100 - yr HWL for Ponds 1 & 3. (All sheets) 11. Show the delineated wetland to the south of Lot 6, Block 13 along with the existing wetland NWL, HWL, and invert elevation of the existing outlet (941.99'). 12. An EOF = 946.0 is needed for the street low point between Lots 33 & 34, Block 7. 13. The arrow for the EOF in the rear of Lot 11, Block 11 should be pointing to the NE. 14. Provide an elevation label 0.5' below the lower garage floor at the front of the building pads on lot lines between Lots 1&2, 2&3, and 5&6, Block 13 and between Lots 19&20, Block 11. PAGE 4 S:\Municipal\Aotsego22xx\2293.06\ot2293.06 RVW1.docx 15. Label the existing storm pipe from Mackenzie Avenue to Pond #1 as "temporary" or "to be removed". 16. The Lot 41, Block 7 driveway exceeds the maximum 10% allowed. Erosion Control (Sheets C5.01 -C5.05) 17. Two rows of silt fence shall be used along all existing wetlands. Sanitary Sewer and Watermain Profile (Sheets C6.01 -C6.03) 18. It appears that a number of water curb stops to not align with the proposed service locations. The existing services shall be revised to align with the surveyed curb stops. 19. Water services along Mackenzie Avenue shall be on the upstream side of sewer services.. 20. Valves are going to be required at both connections points to existing watermain along Mackenzie Avenue. If the contractor is required to connect and use existing valves they will still be required to pass all testing requirements (pressure and bacteria). 21. Sanitary sewer manholes shall be shown in the profile view, along with invert and rim elevations. All sanitary manholes shall have 0.1' drop across them. 22. Please provide an 8" gate valve along 75th Street at the intersection with Mackenzie Avenue. 23. Lots 1-6, Block 13, and Lot 7, Block 11 may have water service conflicts with proposed storm sewer. A note shall be placed in the plans at these locations to make contractor aware that water services shall be dove down to maintain 2' vertical separation or insulation shall be placed at these locations. 24. Label the watermain lengths in the profiles. 25. Show the storm sewer and crossings in the background of the profiles. Storm Sewer Plan and Profile (Sheets C7.01 -C7.03) 26. Provide pipe information for storm run between SS 102 and SS 103. 27. The castings for structures SS 102, 103, 84, 86, and 87 may need to be R -3501 -TB (drive -over) castings. 28. Drain tile with stubs for future sump connections will be required along the rear property lines for all homes more than one lot width away from a storm structure. (i.e. rear yards of Lot 4 and Lot 7, Block 8 and rear yards of Block 13. PAGE 5 S:\Municipal\Aotsego22xx\2293.06\ot2293.06 RVW1.docx Street Plan and Profile (Sheets C8.01 -C8.03) 29. All vertical and horizontal curves shall meet 30 mph design speed requirements. A number of vertical curves do not meet the minimum K values or lengths (min K = 19 for crest and 37 for sag curves). 30. Bituminous curb shall he placed around temporary cul-de-sac at east end of 77th Street. A note shall refer to City of Otsego Standard Plate #108A. 31. It is difficult to determine the difference between Phase 6 and future phases in the profile view. It would be helpful if the future was in a light gray shade or a defined phase line was drawn in the profile. 32. A typical street section with recommended R -value from geotechnical engineer shall be provided. Details (Sheets C9.01 -C9.02) 33. Include the following City of Otsego Standard Plates: 203 408 205 4003B 206 4180J 207 500 300 503 301 504 303 7036F 311 9102D 314 ndscaDe Plan and Details (Sheets L1.01 -L2.01 34. No comments. HYDROLOGY & STORM SEWER DESIGN 35. Please provide new storm sewer calculations and a drainage area map. The map and calculations we have are from 2004 and it appears there are some differences from this and the new design, one location being at SS 85 along Mackenzie Avenue. WETLANDS 36. Show the existing delineated wetland edges along the Otsego Creek and in the rear of Lot 6, Block 13. (All sheets) OTHER CONSIDERATIONS 37. No comments. PAGE 6 S:\Municipal\Aotsego22xx\2293.06\ot2293.06 RVW1.docx SUMMARY AND/OR RECOMMENDATION We recommend approval contingent upon the above comments being addressed. PAGE 7 S:\Municipal\Aotsego22xx\2293.06\ot2293.06 RVW1.docx DEVELOPMENT AGREEMENT ARBOR CREEK 3RD ADDITION- PHASE 6 AGREEMENT entered into this day of December, 2017 between the City of Otsego ("City"), a municipal corporation organized under the laws of the State of Minnesota, and Centra Homes, LLC, a limited liability company under the laws of the State of Minnesota ("Developer"). 1. Request for Plat Approval. The Developer has requested that the City approve a Developer's Agreement for that portion of ARBOR CREEK 3RD ADDITION designated as PHASE 6. The legal description of the property covered by this Agreement is as follows: Lots 31-46, Block 7, Lots 1-7, Block 8, Lots 1-7 and Lots 19 and 20, Block 11, Lot 1, Block 12 and Lots 1-6, Block 13 all of ARBOR CREEK 3RD ADDITION according to the Plat on file and of record at the Office of the County Recorder, Wright County, Minnesota. The Phase contains thirty nine (39) single family residential lots. The plat is located within the City's West Sewer District, is zoned R-4, Residential Urban Single Family District as approved by Ordinance adopted by the City Council on October 11, 1999 and April 24, 2017. The Final Plat for ARBOR CREEK 3RD ADDITION was approved by the City Council on January 10, 2005. 2. Conditions of PIat Approval. The City hereby approves the Phase on condition that the Developer enter into this Agreement, furnish the security required by it, and record the Agreement with the Wright County Recorder or Registrar of titles within one hundred (100) days after the City Council approves the Agreement. The Developer shall cooperate with the City in recording the Agreement and all required additional deeds and documents and providing assurance that the Agreement and all required documents have been properly and timely recorded. 3. Right to Proceed. Within the Plat, the Developer may not grade or otherwise disturb the earth, remove trees, construct sewer lines, storm sewers, water lines, streets, utilities, public or private improvements, or any buildings or structures until all the following conditions have been satisfied: 1) this Agreement has been fully executed by both parties and filed with the City Clerk, and all conditions contained in the Agreement have been met, 2) the necessary security has been received by the City, 3) this Agreement has been recorded with the Wright County Recorder's Office, 4) The Developer has initiated and attended a pre -construction meeting with the City Engineer, and 5) the Zoning Administrator has issued a letter that all conditions have been satisfied and that the Developer may proceed; or until such time as approval to commence earlier construction is specifically approved by the City, and Developer has fully complied with all conditions set forth by City staff. 4. Sanitary Sewer Service Allocation. The allocation of sanitary sewer service to the thirty nine (39) lots within the Plat does not occur until all required security has been posted. 5. Changes in Official Controls. ARBOR CREEK 3RD ADDITION is a planned and staged development within the meaning of Minn. Stat. 462.358, Subd. 3c, and no amendment to the City's Comprehensive Plan or other Official Controls shall apply to or affect the use, development density, lot size, lot layout, or platting requirements for ARBOR CREEK 3RD ADDITION for a period of five (5) years. Thereafter, notwithstanding anything in this Agreement to the contrary, to the full extent permitted by State law, the City may require compliance with any amendments to the City's Comprehensive Plan, other Official Controls enacted after the date of this Agreement. This provision does not apply to regulations or Official Controls related to park and trail dedication or any fee established by the City chargeable to the Developer for municipal costs arising from said future phases. 6. Development Plans. The Plat shall be developed in accordance with the plans on file at the office of the City Clerk and the conditions stated below. If the plans vary from the written terms of this Agreement, the written terms shall control. The plans are: Plan A Final Phase Plan, ARBOR CREEK 3RD ADDITION- PHASE 6 prepared by Sambatek. Plan B Grading, Drainage, and Erosion Control Plan prepared by Sambatek and as finally approved by the City Engineer. 2 Plan C Sanitary Sewer, Water Main, Storm Sewer and Streets Plans for ARBOR CREEK 3RD ADDITION PHASE 6, as prepared by Sambatek and as finally approved by the City Engineer. Plan D Landscape Plan for ARBOR CREEK 3RD ADDITION- PHASE 6, prepared by Sambatek, and as finally approved by the City Zoning Administrator. 7. Improvements. The Developer shall install and/or pay for the following: A. Streets B. Street lights C. Site grading and ponding D. Underground installation of all utilities E. Sanitary sewer lines F. Water lines G. Storm water management improvements H. Setting of lot and block monuments I. Construction surveying and staking J. Traffic control signs Improvements shall be installed in accordance with City standards, the City Code, and the above -referenced plans that have been furnished to the City and approved by the City Engineer. The Developer shall obtain all necessary permits before proceeding with construction. The City shall provide adequate field inspection personnel to assure acceptable quality control, which will allow certification of the construction work. The City may, when reasonably required to do so by the City Engineer, and at the Developer's expense, have one (1) or more City inspectors and a qualified engineer inspect the work. Within thirty (30) days after the completion of the improvements and before all retained security is released, the Developer shall supply the City with a complete set of reproducible "as constructed" and an electronic file of the "as constructed" plans in AutoCAD.DWG file or a .DXF file, all prepared in accordance with City standards. Before the security for the completion of utilities is fully released, iron monuments shall be installed in accordance with Minnesota Statutes 505.02. The Developer's surveyor shall submit a written notice to the City certifying that the monuments are installed following site grading, utility and street construction. 8. Contractors/Subcontractors. City Council members, City employees, and City Planning Commission members, and corporations, partnerships and other entities in which such individuals have greater than a twenty five percent (25%) ownership interest or in which they are an officer or director may not act as contractors or subcontractors for the public improvements identified in Paragraph 7 above. 3 9. Permits. The Developer shall obtain or require its contractors and subcontractors to obtain all necessary permits, which may include, but are not limited to: A. Wright County for County Road access and work in County right of way. B. MNDOT for State Highway Access C. MNDOT for work in right of way D. Minnesota Department of Health for watermains E. MPCA NPDES Permit for construction activity F. MPCA for sanitary sewer and hazardous material removal and disposal G. DNR for dewatering H. City of Otsego for building permits I. City of Otsego for sanitary sewer connections J. City of Otsego for retaining walls 10. Dewatering. Due to the variable nature of groundwater levels and stormwater flows, it will be the Developer's and the Developer's contractors and subcontractors responsibility to satisfy themselves with regard to the elevation of groundwater in the area and the level of effort needed to perform dewatering and storm flow routing operations. All dewatering shall be in accordance with all applicable County, State, and Federal rules and regulations. DNR regulations regarding appropriations permits shall be strictly followed. 11. Time of Performance. The Developer shall install all listed improvements by December 31, 2018, with the exception of the final wear course of asphalt on streets and landscaping. The final wear course shall not be constructed until at least one construction season after the base construction is completed and shall be delayed one more construction season if at least 75% build out is not achieved. However the final wear course shall not be delayed for a period longer than two years after the base course is paved regardless of build out; in which case the Developer shall provide an escrow for fog sealing the streets in the event the final wear course is placed prior to 75% build out. Final wear course placement outside of the above time frame must have the written approval of the City Engineer. The City may impose additional conditions on the extension necessary to ensure performance. 12. Right of Entry. The Developer hereby grants to the City, its agents, employees, officers and contractors an irrevocable right of entry to enter the Plat to perform any and all work and inspections necessary or deemed appropriate by the City during the installation of improvements by Developer or the City, or to make any necessary corrective actions necessary by the City. Except in emergency situations, as defined by the City, the City shall give the developer thirty (30) business days notice stating the deficiencies and necessary corrections prior to making any corrective action. Said right of entry shall continue until the City finally accepts the improvements and any applicable warranty period has expired. 4 13. Erosion Control. Prior to initiating site grading, and before any utility construction is commenced or further building permits are issued, the erosion control plan, Plan B, shall be implemented by the Developer and inspected and approved by the City. If the City Engineer determines that it would be unreasonable to require full implementation of the erosion control plan prior to utility construction or issuance of certain building permits, he shall state in writing what construction can take place and what particular building permits can be issued prior to full implementation. The City may impose additional erosion control requirements if, in the opinion of the City Engineer, they would be beneficial. All areas disturbed by the excavation and backfilling operations shall be reseeded forthwith after the completion of the work in that area. If the Developer does not comply with the erosion control plan and schedule or any supplementary instructions, the City may, with reasonable notice and opportunity to cure, take action as it deems appropriate. 14. Grading Plan. Plat grading shall be in accordance with the approved grading plan, Plan B. The plan shall conform to City specifications and the City Code. Ponds, swales, and ditches shall be constructed on public easements or land owned by the City. Within thirty (30) days after completion of grading and before any retained security is fully released, the Developer shall provide the City with an "as built" grading plan including certification by a registered land surveyor or qualified engineer that all ponds, swales, and ditches have been constructed on public easements or land owned by the City. "As built" plans shall include field verified elevations of the following: A. Cross sections of ponds B. Location and elevations of swales and ditches C. Lot corners and house pads Occupancy permits shall not be issued by the Building Official until the grading and drainage plan is certified as set forth above. 15. Clean Up. The Developer shall promptly clean any and all dirt and debris from streets and construction sites in accordance with the City Code resulting from construction work by the Developer, its agents or assigns. 16. Ownership of Improvements. Upon acceptance by the City Council of the work and construction required by this Agreement, improvements lying within public easements and public right-of-way shall become City property without further notice or action. 17. Streets. The Developer agrees to maintain the streets in the Plat until the base course bituminous surfacing has been accepted by the City. Should the City be required to grade the street prior to paving, the cost of such grading shall be paid by the Developer and drawn from the Developer's letter of credit. Should snow plowing be s necessary prior to street paving, the Developer shall be responsible for such plowing as may be required by the Streets Supervisor. If, upon the Developer's request, the City agrees to plow the street prior to acceptance, such work will be done upon agreement that the Developer will hold harmless and indemnify the City from any and all liability claims related to such work and pay all costs associated with that work. Any plowing undertaken by the City will constitute no acceptance or evidence of acceptance of the street(s) in question. The final wear course shall not be constructed until at least one construction season if at least 75% build out is not achieved. However, the final wear course shall not be delayed for a period longer than two years after the base course is paved, regardless of build out; in which case, the Developer shall provide an escrow for fog sealing the streets in the event the final wear course is placed prior to 75% build out. Upon final completion of streets and acceptance by the City as a City street rather than a private drive, the Developer shall guarantee to the City for a period of two (2) years that the streets have been constructed to City standards. The warranty period shall not commence until such time as street construction is completed and the streets are accepted as City streets by the City. The two (2) year warranty set forth above commences upon the date on which the City accepts the streets by resolution. 18. Sewage Treatment. No occupancy permit for any building within the Plat will be issued by the City unless the Building Official has inspected both the sewer and water connections to the building and has certified that they have been constructed satisfactorily in accordance with City specifications and the City Code. 19. Administrative Fee. A fee for City Administration of this project is one percent (1%) of estimated construction costs of the public improvements, or $ 4,882.00. 20. Sewer Availability Charges. The Sewer Availability Charges for the Plat due upon Final Plat approval is as follows; 39 lots at $2,382.00 per REC which has already been paid upon previous approval of ARBOR CREEK 3FJ) ADDITION. 21. Sewer Connection Fees. Sanitary sewer connection fees are paid at the time of issuance of a building permit. The applicable amount due per unit shall be the fee per REC unit in place at the time of application for a building permit. 22. Water Availability Charges. The Water Availability Charges for the Plat due upon Final Plat approval is as follows: 39 lots at $1,663.00 per REC which has already been paid upon previous approval of ARBOR CREEK 3' ADDITION. 23. Water Connection Fees. Water connection fees are paid at the time of issuance of a building permit. The applicable amount due per unit shall be the fee per REC unit in place at the time of application for a building permit. 6 24. Park and Trail Dedication. The Park and Trail Dedication for the Plat is 39 units at $3,486.00 per unit which has already been paid upon previous approval of ARBOR CREEK 3RD ADDITION. 25. Storm Water Management Fee. The storm water management fee for this Plat has already been paid upon previous approval of ARBOR CREEK 3RD ADDITION. 26. Transportation Infrastructure Cost. The collector street access fee for this Plat has already been paid upon previous approval of ARBOR CREEK 3"D ADDITION. 27. Street and Traffic Control Signs. Before the City signs the final plat, the Developer shall pay to the City $7,500.00 for installation of traffic control signs (stop signs, street signs, dead-end signs). The said amount was calculated as follows: 30 signs at $250.00 per sign. Using these funds, the City shall purchase and install the street and traffic control signs. 28. Street Light Construction. The Developer shall pay for the operation and maintenance of the street lights for a period of two (2) years. In order to facilitate payment for operation and maintenance of street lights, the Developer shall submit a fee to be included within the escrow and fees established in Paragraph 27 of this Agreement calculated as follows: 4 lights x $500.00 per light for a total payment of $2,000.00. The operation and maintenance of the street lights by the City shall not commence until such time as the street lights are actually constructed. Street lighting shall conform to adopted City Code. 29. City Engineering Administration and Construction Observation, Legal Fees Escrow and City Fees. The Developer shall pay a fee for consulting engineering administration following approval of the Plat. City engineering administration will include consultation with Developer and its engineer on status or problems regarding the project, monitoring during the warranty period, general administration and processing of requests for reduction in security. Fees for this service shall be the actual amount billed for those services, which are estimated to be three percent (3%) of the estimated construction cost of the Plan C Improvements to be inspected, assuming normal construction and project scheduling. The Developer shall pay for construction observation performed by the City Engineer. Construction observation shall include part or full time observation, as determined by the City Engineer, of proposed street, sanitary sewer, water and storm drainage construction and will be billed on hourly rates actually required for said inspection, which are estimated to be five percent (5%) of the estimated construction cost of the Plan C Improvements to be inspected. In the event of prolonged construction or unusual problems, the City will notify the Developer of anticipated cost overruns for engineering administration and observation services. Any amounts for engineering administration not utilized from this escrow fund shall be returned to the Developer when all improvements have been completed, all financial obligations to the City satisfied, and the required "as constructed" plans have been received by the City. The escrow and fee account shall also include estimated fees for Legal expenses actually incurred (with any excess funds, if any, returned to Developer as indicated further in this Paragraph 29), City Administrative Fee (a flat fee due upon execution of this Agreement), Trunk Water and Sewer Access Fees (a flat fee due upon execution of this Agreement), Transportation Infrastructure Costs (a flat fee due upon execution of this Agreement), Park and Trail Dedication Fees (a flat fee due upon execution of this Agreement), Street Light Maintenance and Operation Fee (a flat fee due upon execution of this Agreement) and shall be established as follows: Engineering Services Escrow 8% of $488,200.00 $39,056.00 Legal Services Escrow 1% of $488,200.00 $4,882.00 City Administration Fee 1% of $488,200.00 $4,882.00 Street Signs 30 at $250.00 per sign $7,500.00 Street Lights 4 at $500.00 per light $2,000.00 Sewer Availability Charge 39 lots -previously paid $00.00 Water Availability Charge 39 lots -previously paid $00.00 Storm Water Charges Net acreage previously paid $00.00 Transportation Charge 39 lots -previously paid $00.00 Park and Trail Dedication Fee 39 lots -previously paid $00.00 GIS Data Entry Fee 19.4 acres x $100 per acre $1,940.00 Wetland Delineation Review 0 Review at $2,000.00 per review $00.00 TOTAL $60,260.00 This escrow amount shall be submitted to the City prior to the City executing this Agreement. All administrative and legal fees related to plan review, drafting of this Agreement and any other necessary items shall be paid to the City prior to execution of this Agreement. Any amounts for legal and engineering not utilized from this escrow fund shall be returned to the Developer when all improvements have been completed, all financial obligations to the City satisfied, and the required "as constructed" plans have been received by the City. All other amounts listed as flat fees are non-refundable and available immediately for City use when posted. 30. Security. To ensure compliance with the terms of this Agreement, and construction of all public improvements, the Developer shall furnish the City with a cash escrow or Irrevocable Standby Letter of Credit with automatic renewal provisions in the amount of $781,875.00 said amount calculated as follows: Site grading, erosion control and wetland protection $22,500.00 Sanitary sewer (lateral & trunk) $32,850.00 Watermain (lateral & trunk) $74,470.00 s Storm Sewer (lateral) $106,110.00 Streets $274,770.00 Landscaping $78,000.00 Engineering services $36,800.00 SUBTOTAL $6259500.00 25% additional security $156,375.00 TOTAL $7819875.00 The issuer and form of the security (other than cash escrow) shall be subject to City approval. The security shall be issued by a banking institution in good standing as determined by the City and approved by the City Administrator. The City shall have the ability to draw on the security at a bank or branch bank located within fifty (50) miles of the City Hall. The security shall be for a term ending December 31, 2018 and shall contain an automatic renewal provision. The City may draw down the security for any violation of the terms of this Agreement, or upon receiving notice of the pending expiration of the security. It shall be the responsibility of the Developer to inform the City at least thirty (30) days prior to expiration of the security of the impending expiration and the status of the project relative to the security and this Agreement. If, for whatever reason, the security lapses prior to complete compliance with this Agreement (other than during any warranty period), the Developer shall immediately provide the City with either an extension of the security or an irrevocable letter of credit of the same amount upon notification of the expiration. If the required improvements are not completed at least thirty (30) days prior to the expiration of the security, the City may also draw down the security. If the security is drawn down the proceeds shall be used to cure any default. Upon receipt of proof satisfactory to the City that work has been completed and financial obligations to the City have been satisfied, with City approval, the security may be reduced from time to time down to $88,840.00, which is the amount of warranty security. A warranty security in the amount of $88,840.00 shall be posted with the City as set forth in paragraph 34 of this Agreement. The warranty period shall be a twelve (12) month period after the applicable work has been completed. Notwithstanding the posting of that warranty security, the security shall not be reduced below ten percent (10%) of the posted security until all Improvements have been completed, all financial obligations to the City satisfied (which includes posting of warranty security), and the required "as built" plans have been received by the City. The intent of this Agreement is that the City shall have access to sufficient security, either security or warranty security, to complete the project and insure warranty on all public improvements at all times. This security amount shall be submitted to the City prior to execution of the Agreement. All administrative and legal fees related to plan review, drafting of this Agreement and any other necessary items shall be paid to the City prior to execution of this Agreement. 9 A portion of this Security applies to previously platted property as set forth on Exhibit B attached to this Agreement. The security for this Agreement shall be an Irrevocable Standby Letter of Credit with automatic renewal provisions conforming to the requirements of this Paragraph or cash in the amount of $781,875.00. 31. Landscaping. The Developer shall install two (2) trees upon each lot within the Plat of a species approved by the Zoning Administrator. These plantings may not be installed in a public right-of-way. Any security posted for this agreement or prior additions may be used to cure any defects in the event that the Developer, it assigns or successors fail to install landscaping according to this Agreement. Landscaping security to insure compliance with the approved Landscape Plan shall be $3,000 per lot to be posted with the City at the time of application for a building permit on each lot. Any trees which can cause a public nuisance or public hazard, such as bug infestation or weak bark, are specifically prohibited. The Developer, Builders or Property Owners (applicant for building permit) in the residential lot area shall sod all front yards within the buildable portion of each lot and shall post any security required by the City to assure landscaping or other items in compliance with the City Code at the time of application for a building permit on each lot. The Developer, Builder or Property Owner shall provide not less than six (6) inches of topsoil in required front yards or side yards abutting public rights-of-way. Where slopes lie in excess of ten (10) percent, sodding (staked) shall be required. Weather permitting, the trees, grass seed and sod shall be planted before Certificates of Occupancy are issued. All grass seed shall be maintained so that turf is established within one (1) year of planting. If landscaping as required by the City Code and this Agreement is not timely completed, the City, after reasonable notice and opportunity to cure, may enter the lot or lots, perform the work, and apply any posted security toward the cost. The Developer, it assigns or successors, Builder or Property Owner will provide will provide all trees, grass, seed and sod within the Plat and shall maintain said plantings and warrant them to remain alive, of good quality and disease free for twelve (12) months after planting. Any replacement shall be warranted for twelve (12) months from the time of planting. Developer is also required to implement a Landscaping Plan including buffer yard landscaping along City collector and arterial streets as well as designated other plantings. Security shall be posted in order to insure compliance with the approved Landscaping Plan. 32. Significant Trees. There are no significant trees within the Phase. The Developer is not required to replace any significant trees. 10 33. Meters. Meters shall be provided as per City policy. 34. Warranty. The Developer warrants all work required to be performed by it against poor material and faulty workmanship for a period of one (1) year after its completion and acceptance by the City, except for warranty on streets which is set forth in Section 17 of this Agreement. The amount of posted warranty security for public improvements to be posted by the Developer shall be in the amount of $88,840.00. The amount, has been determined by the City Engineer, and is based upon the costs of the raw materials and labor which would be necessary to correct the most common deficiencies in such public improvements. 35. Claims. The Developer shall pay any subcontractor within ten (10) days of the Developer's receipt of payment by the City for undisputed services provided by the subcontractor. In the event that the City receives claims from labor, materialmen, or others that perform work required by this Agreement, which is provided to real property owned by the City, and the sums due them have not been paid, and the laborers, materialmen or others are seeking payment from the City, the Developer hereby authorizes the City to commence an interpleader action pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District Courts, to draw upon the letters of credit in an amount up to one hundred twenty- five percent (125%) of the claim(s) and deposit the funds in compliance with the Rule, and upon such deposit, the Developer shall release, discharge, and dismiss the City from any further proceedings as it pertains to the letters of credit deposited with the District Court, except that the Court shall retain jurisdiction to determine attorney fees pursuant to this Agreement. In the event that the Developer desires to make a cash deposit instead of drawing down the letter of credit if a claim is made as stated above, they shall immediately notify the City of this intent at the time the claim is made and shall delivery one hundred twenty-five percent (125%) of the claim to the City within ten (10) days of such notice in the form of cash or certified check. 36. Restrictions. The following restrictions apply to the property and all lots thereon shall be held, sold, and conveyed subject to the following conditions and restrictions, which are for the purpose of protecting the value and desirability of the Plat and insuring that all conditions imposed by the City in this Agreement are properly recorded against the property. Said conditions shall run with the real property and be binding on all parties having a right, title or interest in the plat or any part thereof, their heirs, executors, representatives, successors and assigns: None. 37. Responsibility for Costs. A. Except as otherwise specified herein, the Developer shall pay all costs incurred by them or the City in conjunction with the development of the Plat, including, but not limited to, legal, planning, engineering, and inspection expenses incurred in connection with development of said Plat, the preparation of this Agreement, and all costs and expenses 11 incurred by the City in monitoring and inspecting development of the Plat. B. The Developer shall hold the City and its officers and employees harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from Plat development, except for negligence of City, the Developer shall indemnify the City and its officers and employees for all costs, damages or expenses which the City may pay or incur in consequence of such claims, including attorney's fees. C. The prevailing party shall reimburse the non -prevailing party for costs incurred in the enforcement of this Agreement, including engineering fees, attorney's fees, and costs and disbursements. D. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Agreement within thirty (30) days after receipt, unless the Developer is in good faith and with all due diligence disputing the payment of the same. If the bills are not paid on time, the City may, after notice and a reasonable period of time to cure said default, halt all plat development work and construction, including but not limited to the issuance of building permits for lots which the Developers may or may not have sold, until all bills are paid in full. Claims not paid within thirty (30) days shall accrue interest at the rate of twelve percent (12%) per year. 38. Developer's Default. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and the City may then draw down the security established in Paragraph 17 to pay for any work undertaken, provided the Developer is first given notice of the work in default, not less than seven (7) days in advance and a reasonable period of time to cure said default. This notice provision does not apply if the work performed by the City or its contractors is of an emergency nature, as determined at the reasonable discretion of the city. Should such emergency work be required the City will make all reasonable efforts to notify the Developer as soon as possible. When the City does any such work, the City may, in addition to its other remedies, assess the cost in whole or in part pursuant to any applicable statutes or ordinances. 39. Miscellaneous. A. The Developer represents to the City that to best of its knowledge, the Plat complies with all City, County, State, and Federal laws and regulations, including but not limited to, Subdivision Ordinances, Zoning Ordinances, and environmental regulations except where specifically excluded by this agreement. If the City determines that the Phase does not comply, the City may, at its option, refuse to allow construction or development work in the plat until the Developer does 12 comply. Upon the City's demand, the Developer shall cease work until there is compliance. B. Third parties shall have no recourse against the City under this Agreement. C. Breach of any of the terms of this Agreement by the Developer shall be grounds for denial or revocation of building permits. D. If any portion, section, subsection, sentence, clause, paragraph or phrase of this Agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Agreement. E. If building permits are issued by the City prior to the completion and acceptance of public improvements, the Developer shall assume all liability for the costs resulting in any delay in completion of public improvements and damage to any public improvements caused by the City, the Developer, its contractors, subcontractors, materialmen, employees, agents, or third parties. No one may occupy a building for which a building permit is issued on either a temporary or permanent basis until the streets needed for access have been paved with a bituminous surface, unless a specific exception is approved by the City. F. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Agreement. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Agreement shall not be a waiver or release. G. This Agreement shall run with the land, shall be recorded against the title to the property and all properties therein established by the Plat, and shall be binding on all parties having any right, title or interests in this phase of the plat or any part thereof, their heirs, successors, and assigns. After the Developer has completed the work required of them under this Agreement as set forth in Section 8, at the Developer's request, the City will execute and deliver to the Developers a release or partial release (s) of this Agreement. H. The Developer shall take out and maintain until one (1) year after the City has accepted the public improvements, public liability and property damage insurance covering personal injury, including death, and any claims for property damage which may arise out of the Developer's work or the work of their subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury and death shall not be less than $500,000.00 for one person and $1,000,000.00 for each occurrence; limits for property damage shall be not less than $200,000.00 for each occurrence. The City shall be named as an additional named insured on said policy, and the Developer shall file a copy of the insurance coverage with the City prior to the City issuing further building permits. 13 I. Each right, power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. J. The Developer shall pay for all local costs related to drainage improvements required to complete the construction according to the plans and conditions that are a part of this Agreement. K. Should development of the plat proceed at a pace slower than anticipated, and for that reason, specific terms of this agreement become onerous or unduly burdensome to the Developers, upon his/her application, the City will enter into negotiations regarding those specific terms and shall not unreasonably withhold consent to appropriate changes in the terms of this Agreement. L. The Developer shall demonstrate and maintain compliance with the 1991 Wetland Conservation Act. M. The Developer shall be responsible for all on site drainage as well as for any affects that their actions may have on adjoining properties. Specifically, the Developer shall maintain existing drainage tiles on site, and shall be responsible for any and all drainage problems related to either the site drainage tiles or problems with on-site drainage facilities to be constructed in accordance with this agreement and plat approval. 40. Notices. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, their employees or agents, or mailed to the Developer by registered mail at the following address: Attention: Centra Homes, LLC, 11460 Robinson Drive, Coon Rapids, MN 55433. Notice to the City shall be in writing and shall be either hand delivered to the City Clerk at the following address: City of Otsego, City Hall, 13400 90' Street NE, Otsego, MN 55330, Attention: City Clerk 14 STATE OF MINNESOTA ss. COUNTY OF WRIGHT CITY OF OTSEGO Jessica Stockamp, Mayor Tami Loff, City Clerk DEVELOPER CENTRA HOMES, LLC I: Its: The foregoing instrument was acknowledged before me this day of 2017, by Jessica Stockamp, Mayor and by Tami Loff, City Clerk, of the City Otsego, a Minnesota municipal corporation, on behalf of the City and pursuant to the authority of the City Council. Notary Public 15 STATE OF MINNESOTA ) SS. COUNTY OF ) The foregoing instrument was 2017 by authority and on behalf of the company. DRAFTED BY: MACARTHUR LAW OFFICE, LLC 3601 Thurston Avenue North Suite 103 Anoka, MN 55303 (763) 231-5850 acknowledged before me this day of the of Centra Homes, LLC, with 16 Notary Public CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2017-95 RESOLUTION APPROVING DEVELOPERS AGREEMENT- ARBOR CREEK 3RD ADDITION- PHASE 6 WHEREAS, Centra Homes, Inc. is seeking approval of a Developers Agreement for a portion of that already approved Plat of ARBOR CREEK 3RD ADDITION designated as PHASE 6; and WHEREAS, the approved Plat and already platted areas requires construction of public improvements and payment of City costs and fees; and WHEREAS, those obligations are contained in the attached Developers Agreement; and WHEREAS, the Developers Agreement also sets forth the security required to assure satisfactory construction of public improvements and establishes the various remedies available to the City in the event that Developer breaches the terms and conditions of the Agreement. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego, Wright County, Minnesota as follows; The attached Developers Agreement between the City of Otsego and Centra Homes, Inc. is hereby approved, subject to staff approved additions and modifications. 2. The Mayor and City Clerk are hereby authorized to execute the Developers Agreement on behalf of the City of Otsego. ADOPTED this 27th day of November, 2017 by the City Council of Otsego. MOTION TO ADOPT the Resolution by Council Member and seconded by Council Member. IN FAVOR: OPPOSED: CITY OF OTSEGO Jessica Stockamp, Mayor Tami Loff, City Clerk 2