3.5 City Planner Agreement
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty December 13, 2021
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Attorney Kendall 3.5 – City Planner Agreement
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X 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.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending the City Council approve an Agreement for Professional Planning Services.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes No
BACKGROUND/JUSTIFICATION:
The City of Otsego contracts with The Planning Company, LLC (TPC) to for Professional Planning Services.
These services include, but are not limited to, planning and community development related functions and
activities; preparing written reports, resolutions and ordinances; attendance at meetings with developers,
staff, commissions and City Council; code enforcement; zoning administration; other tasks as assigned; and
other such services performed by a City Planner.
This contractual relationship dates back many years, with the current agreement dating November 12,
2013. As part of the budget process for 2022, TPC proposed updates to the contract to include revisions to
the scope of services provided and changes to the fee schedule. The provisions of the agreement are
outlined below:
▪ Private Development Review. The City of Otsego has adopted pass-through fees that assess the
cost of professional services for development application review onto the applicant. As such, the
City does not incur any expense for work hours related to private development applications. TPC’s
current hourly rate for private development review is $125 per hour, which was established in
2014. TPC is proposing to increase this rate to $130 per hour for 2022. Again, this change will not
have an effect on the City budget as these fees are passed through to developers.
▪ City Projects. TPC takes on projects and assignments for the City directly. The current hourly rate
for City technical assistance is $100 per hour as it has been since 2010. TPC is not proposing to
increase this fee for 2022.
During 2021, TPC implemented a Zoning Administration job number for fence and sign permit
reviews, responses to general questions regarding zoning questions, and additional coordination
with the Department of Building Safety regarding plan review for the building permit process to
ensure consistency with project approvals and compliance with zoning or other City Code
provisions. These tasks are undertaken at a rate of $60 per hour.
TPC is responsible for code enforcement activities based on as-needed service demands and
necessary technical expertise. Code enforcement is undertaken at a rate of $60 per hour and no
change is proposed for 2022.
▪ Meetings. TPC attends City Council, Planning Commission, and other advisory commission or other
public meetings on an as-needed basis. The meeting rate is a flat fee of $250 per meeting. No
change in the fee for meeting attendance is proposed for 2022. Meetings with City staff, residents,
businesses, and developers outside of public meetings are billed in accordance with our hourly rate
for City technical assistance.
The proposed agreement has been reviewed by City Attorney Kendall, which also has been reviewed by
TPC, whom is agreeable to all the terms and conditions of the agreement.
This agreement was reviewed with the City Council at the August 30, 2021 budget meeting, with
recommendation for future consent agenda approval.
SUPPORTING DOCUMENTS ATTACHED:
• Agreement for Professional Planning Services
o Redline and Clean Versions Included
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve the Agreement for Professional Planning Services between the City of Otsego and The
Planning Company, LLC.
BUDGET INFORMATION
FUNDING: BUDGETED:
City Planning services are allocated to many different
departments and funds of the City based on the type
of work being conducted, which includes, but is not
limited to:
- General Fund
- Capital Project Funds
- Utility Funds
- Escrow/Development Funds
Yes
AGREEMENT FOR PROFESSIONAL PLANNING SERVICES
THIS AGREEMENT, dated ________________ and entered into by and between the CITY OF OTSEGO,
WRIGHT COUNTY, MINNESOTA, hereinafter referred to as the "Municipality" and THE PLANNING
COMPANY LLC, hereinafter referred to as the "Consultant".
WITNESSETH:
ARTICLE 1. AREA OF SERVICE
That the Municipality does hereby agree to employ the Consultant to render professional technical
planning, development and other assistance services to the extent and kind described in Article 2 below
in and for the City of Otsego, Minnesota.
ARTICLE 2. SERVICES OF THE CONSULTANT
The Consultant hereby agrees to render the professional services as follows after receipt of a written or
verbal work authorization by the City Administrator or City Council.
A. Provide general assistance and consultation to the Municipality, regarding the Municipality's
planning and community development, and related functions and activities. The Consultant will
be available to assist and advise the Municipality on the administration, structure, forms,
procedures and processing of development ordinances and requirements. Services shall be
rendered on an as needed basis to be determined by the Municipality.
B. The Consultant will prepare written reports, complete with planning considerations, concerning
Planning Commission agenda items which deal with rezoning, conditional use permits, variance
and subdivision plans, etc. as directed by the Municipality.
C. The Consultant shall attend staff, advisory committee, and/or City Council Meetings or other
special public meetings as directed by the Municipality.
D. The Consultant shall maintain and store files, maps and graphics of projects in which it has or is
currently involved in until such time as the City requests the relinquishing of these materials.
Upon request by the Municipality, the Consultant shall return all such files, maps and graphics,
whether in paper form or stored on other media, to the Municipality at no cost to the
Municipality.
E. The Consultant shall advise the City on community development and shall supervise and direct
City employees within departments related to Community Development, specifically including the
building department. The Consultant shall provide input to Supervisors regarding the evaluation
of employees in departments related to Community Development and shall assist in employee
reviews.
City of Otsego
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FE. The Consultant shall complete other tasks from time to time as assigned by the City Council,
including but not limited to developing, writing and formatting a City newsletter, attending
meetings on behalf of the City as its representative, and drafting agenda items for City Council
and Commission meetings that are not specifically related to Planning.
GF. The Consultant shall serve as the City Code Enforcement Officer, shall issue citations on behalf of
the City, may resolve enforcement matters by written Agreement, and shall appear on behalf of
the City at enforcement Administrative Hearings and at District Court if necessary.
HG. The Consultant shall serve as the City Zoning Administrator and shall respond to citizen and
developer inquiries regarding the City zoning and subdivision ordinance, shall attend meetings
with Developers and others related to zoning matters, and shall be responsible for reviewing and
processing development applications presented to the Municipality.
EH. Any services performed under this Article will be billed on a monthly basis as per Article 4 of this
Agreement.
ARTICLE 3. SERVICES OF THE MUNICIPALITY
The Municipality hereby agrees to furnish to or make available for examination or use by the Consultant,
without charge, the following:
A. Agendas for all City Council, Planning Commission and/or City Councilother advisory commission
meetings when attendance of the Consultant is required within a reasonable time to allow for
review of each item on the agenda.
B. All materials and documents applicable to all City Council, Planning Commission and/or City
Councilother advisory commission meeting agenda items, including those that are required by
Ordinance for the consideration of various applications. These materials and documents shall be
submitted to the Consultant within a reasonable period of time before any meeting at which time
they are to be considered.
C. Materials and documents, as determined by the Consultant, that are necessary for the services to
be performed.
ARTICLE 4. PAYMENT
The Municipality hereby agrees to pay the Consultant for professional services included in Article 2 of this
Agreement as follows:
City of Otsego
Page 3
A. The work described in Article 2 of this Agreement will be charged to the Municipality on a time
and materials basis and computed in accordance with the rate schedule included in Article 7 of
this Agreement and the following specified hourly rates:
1. Private initiated development projects shall be undertaken at the rate of $125.00$130.00
per hour for Principals and Associates.
2. City initiated projects related to official controls, zoning administration, special studies,
or other activities not identified in Section 4.A.3 and Section 4.A.4 shall be undertaken at
the rate of $100.00 per hour for Principals and Associates.
3. Consultant work related to administration and code enforcement of the Zoning Ordinance
and City Code including field surveys, preparation of notices, citations and other
correspondence and preparation at hearings to consider appeals shall be undertaken at
the rate of $60.00 per hour for Principals and Associates.
4. Consultant work related to codification and maintenance of ordinances, policies and
resolutions shall be undertaken at the rate of $40.00 per hour.The hourly rates as set
forth in this Section may be altered upon agreement of the parties.
B. All meetings, as stated in Article 2.C of this Agreement shall be payable at a fixed rate of two
hundred fifty dollars ($250) per meeting.
C. The Consultant shall submit a statement of services rendered under Article 2 of this Agreement
on a monthly basis payable by the Municipality upon receipt of an invoice showing work
completed.
D. If the Municipality finds it necessary to abandon requested work, the Municipality shall notify the
Consultant in writing and the Consultant shall be compensated for all work completed and
materials expended.
ARTICLE 5. OTHER PARTIES
A. The Consultant shall refrain from undertaking projects for public or private clients that may
represent a conflict with the City’s interests. Prior to the Consultant undertaking any work which
holds such potential, the City shall have the right to approve or veto this activity.
B. It is mutually agreed that this Agreement is not transferable by either party to a third party
without the written consent of the other.
C. The Consultant's reports and other materials prepared in the performance of this Agreement are
instruments of services and remain the property of the Municipality. However, any further
distribution of these reports by the Municipality must note the Consultant as the source.
City of Otsego
Page 4
ARTICLE 6. TERMINATION
A. This Agreement may be terminated by either party delivering to the other party written notice of
termination in which case this Agreement shall be deemed terminated as of 9:00 AM on the
thirtieth (30th) day following receipt of said written notice.
B. In the event of termination by the Municipality, the Municipality shall pay the Consultant for work
completed prior to the termination date on a time plus materials basis, such payment to be made
within thirty (30) days after receipt of Municipality of a final invoice showing work completed. All
materials shall be retained by the Consultant until all payments due from the Municipality have
been received by the Consultant.
C. In the event of termination by the Consultant, the Consultant shall forward to the Municipality on
or prior to the termination date any unearned fees or retainers held by the Consultant shall be
returned to the Municipality within thirty (30) days of termination date.
D. This Agreement shall be effective as of November 12, 2013‐January 1, 2022 upon execution by
both parties hereto and this Agreement shall supersede any previous agreement established
between both parties.
ARTICLE 7. CONSULTANT RATE SCHEDULE (effective 1 January 2021)
Staff Member Rate Per Hour
Principals (Directors)......................................................... $100.00 to $150.00
Associates……………………………………………………………………… $75.00 to $150.00
Expert Testimony……………………………………..……………………. Hourly rate
Outside Consultants .......................................................... Per job basis
Supplies ............................................................................. Actual cost + 15%
Mileage ............................................................................. Per mile rate as
established by the IRS
ARTICLE 8. MISCELLANIOUS
City of Otsego
Page 5
A. In providing services hereunder, CONSULTANT shall abide by all statutes, ordinances, rules and
regulations pertaining to the provisions of services to be provided.
B. CONSULTANT shall indemnify and hold harmless the Municipality, its officers, agents, and employees,
of and from any and all claims, demands, actions, causes of action, including costs and attorney's
fees, arising out of or by reason of the execution or performance of the work or services provided for
herein and further agrees to defend at its sole cost and expense any action or proceeding
commenced for the purpose of asserting any claim of whatsoever character arising hereunder.
C. CONSULTANT shall defend actions or claims charging infringement of any copyright or patent by
reason of the use or adoption of any designs, drawings or specifications supplied by it, and
CONSULTANT shall hold harmless the Municipality from loss or damage resulting therefrom.
D. Insurance:
1. CONSULTANT shall secure and maintain such insurance as will protect CONSULTANT from
claims under automobile liability, and from claims for bodily injury, death, or property
damage which may arise from the performance of services under this Agreement. Such
insurance shall be written for amounts not less than:
a. General Liability: $1,000,000 each occurrence/aggregate
b. Excess Liability: $2,000,000 each occurrence/aggregate
c. The Municipality shall be named as an additional insured on the general liability
policies.
2. CONSULTANT shall secure and maintain a professional liability insurance policy. Said policy
shall insure payment of damages for legal liability arising out of the performance of
professional services for the Municipality, in the insured's capacity as consultant, if such legal
liability is caused by a negligent act, error or omission of the insured or any person or
organization for which the insured is legally liable. Said policy shall provide minimum limits
of $1,000,000 with a deductible maximum of $125,000 unless the Municipality agrees to a
higher deductible.
3. Before commencing work CONSULTANT shall provide the Municipality a certificate of
insurance evidencing the required insurance coverage in a form acceptable to Municipality.
The certificate shall provide that such insurance cannot be cancelled until thirty (30) days
after the Municipality has received written notice of the insurer’s intention of cancel this
insurance.
E. The Municipality hereby retains CONSULTANT as an independent contractor upon the terms and
conditions set forth in this Agreement. CONSULTANT is not an employee of the Municipality and is
free to contract with other entities as provided herein. CONSULTANT shall be responsible for
City of Otsego
Page 6
selecting the means and methods of performing the work. CONSULTANT shall furnish any and all
supplies, equipment, and incidentals necessary for CONSULTANT's performance under this
Agreement. Municipality and CONSULTANT agree that CONSULTANT shall not at any time or in any
manner represent that CONSULTANT or any of CONSULTANT's agents or employees are in any
manner agents or employees of the Municipality. CONSULTANT shall be exclusively responsible
under this Agreement for CONSULTANT's own FICA payments, workers compensation payments,
unemployment compensation payments, withholding amounts, and/or self‐employment taxes if any
such payments, amounts, or taxes are required to be paid by law or regulation.
CONDITIONS HEREIN AGREED TO:
THE PLANNING COMPANY LLC
D. Daniel Licht 12 November 2013
Chief Manager
CITY OF OTSEGO, MINNESOTA
_____________________________________ _______________
Jessica L. Stockamp, Mayor Date
____________________________________ _______________
, City Clerk Date
AGREEMENT FOR PROFESSIONAL PLANNING SERVICES
THIS AGREEMENT, dated December 13, 2021 and entered into by and between the CITY OF OTSEGO,
WRIGHT COUNTY, MINNESOTA, hereinafter referred to as the "Municipality" and THE PLANNING
COMPANY LLC, hereinafter referred to as the "Consultant".
WITNESSETH:
ARTICLE 1. AREA OF SERVICE
That the Municipality does hereby agree to employ the Consultant to render professional technical
planning, development and other assistance services to the extent and kind described in Article 2 below
in and for the City of Otsego, Minnesota.
ARTICLE 2. SERVICES OF THE CONSULTANT
The Consultant hereby agrees to render the professional services as follows after receipt of a written or
verbal work authorization by the City Administrator or City Council.
A. Provide general assistance and consultation to the Municipality, regarding the Municipality's
planning and community development, and related functions and activities. The Consultant will
be available to assist and advise the Municipality on the administration, structure, forms,
procedures and processing of development ordinances and requirements. Services shall be
rendered on an as needed basis to be determined by the Municipality.
B. The Consultant will prepare written reports, complete with planning considerations, concerning
Planning Commission agenda items which deal with rezoning, conditional use permits, variance
and subdivision plans, etc. as directed by the Municipality.
C. The Consultant shall attend staff, advisory committee, and/or City Council Meetings or other
special public meetings as directed by the Municipality.
D. The Consultant shall maintain and store files, maps and graphics of projects in which it has or is
currently involved in until such time as the City requests the relinquishing of these materials.
Upon request by the Municipality, the Consultant shall return all such files, maps and graphics,
whether in paper form or stored on other media, to the Municipality at no cost to the
Municipality.
E. The Consultant shall complete other tasks from time to time as assigned by the City Council,
including but not limited to developing, writing and formatting a City newsletter, attending
meetings on behalf of the City as its representative, and drafting agenda items for City Council
and Commission meetings that are not specifically related to Planning.
City of Otsego
Page 2
F. The Consultant shall serve as the City Code Enforcement Officer, shall issue citations on behalf of
the City, may resolve enforcement matters by written Agreement, and shall appear on behalf of
the City at enforcement Administrative Hearings and at District Court if necessary.
G. The Consultant shall serve as the City Zoning Administrator and shall respond to citizen and
developer inquiries regarding the City zoning and subdivision ordinance, shall attend meetings
with Developers and others related to zoning matters, and shall be responsible for reviewing and
processing development applications presented to the Municipality.
H. Any services performed under this Article will be billed on a monthly basis as per Article 4 of this
Agreement.
ARTICLE 3. SERVICES OF THE MUNICIPALITY
The Municipality hereby agrees to furnish to or make available for examination or use by the Consultant,
without charge, the following:
A. Agendas for all City Council, Planning Commission and/or other advisory commission meetings
when attendance of the Consultant is required within a reasonable time to allow for review of
each item on the agenda.
B. All materials and documents applicable to all City Council, Planning Commission and/or other
advisory commission meeting agenda items, including those that are required by Ordinance for
the consideration of various applications. These materials and documents shall be submitted to
the Consultant within a reasonable period of time before any meeting at which time they are to
be considered.
C. Materials and documents, as determined by the Consultant, that are necessary for the services to
be performed.
ARTICLE 4. PAYMENT
The Municipality hereby agrees to pay the Consultant for professional services included in Article 2 of this
Agreement as follows:
A. The work described in Article 2 of this Agreement will be charged to the Municipality on a time
and materials basis and computed in accordance with the rate schedule included in Article 7 of
this Agreement and the following specified hourly rates:
1. Private initiated development projects shall be undertaken at the rate of $130.00 per hour
for Principals and Associates.
City of Otsego
Page 3
2. City initiated projects related to official controls, zoning administration, special studies,
or other activities not identified in Section 4.A.3 and Section 4.A.4 shall be undertaken at
the rate of $100.00 per hour for Principals and Associates.
3. Consultant work related to administration and code enforcement of the Zoning Ordinance
and City Code including field surveys, preparation of notices, citations and other
correspondence and preparation at hearings to consider appeals shall be undertaken at
the rate of $60.00 per hour for Principals and Associates.
4. The hourly rates as set forth in this Section may be altered upon agreement of the parties.
B. All meetings, as stated in Article 2.C of this Agreement shall be payable at a fixed rate of two
hundred fifty dollars ($250) per meeting.
C. The Consultant shall submit a statement of services rendered under Article 2 of this Agreement
on a monthly basis payable by the Municipality upon receipt of an invoice showing work
completed.
D. If the Municipality finds it necessary to abandon requested work, the Municipality shall notify the
Consultant in writing and the Consultant shall be compensated for all work completed and
materials expended.
ARTICLE 5. OTHER PARTIES
A. The Consultant shall refrain from undertaking projects for public or private clients that may
represent a conflict with the City’s interests. Prior to the Consultant undertaking any work which
holds such potential, the City shall have the right to approve or veto this activity.
B. It is mutually agreed that this Agreement is not transferable by either party to a third party
without the written consent of the other.
C. The Consultant's reports and other materials prepared in the performance of this Agreement are
instruments of services and remain the property of the Municipality. However, any further
distribution of these reports by the Municipality must note the Consultant as the source.
ARTICLE 6. TERMINATION
A. This Agreement may be terminated by either party delivering to the other party written notice of
termination in which case this Agreement shall be deemed terminated as of 9:00 AM on the
thirtieth (30th) day following receipt of said written notice.
City of Otsego
Page 4
B. In the event of termination by the Municipality, the Municipality shall pay the Consultant for work
completed prior to the termination date on a time plus materials basis, such payment to be made
within thirty (30) days after receipt of Municipality of a final invoice showing work completed. All
materials shall be retained by the Consultant until all payments due from the Municipality have
been received by the Consultant.
C. In the event of termination by the Consultant, the Consultant shall forward to the Municipality on
or prior to the termination date any unearned fees or retainers held by the Consultant shall be
returned to the Municipality within thirty (30) days of termination date.
D. This Agreement shall be effective as of January 1, 2022 upon execution by both parties hereto
and this Agreement shall supersede any previous agreement established between both parties.
ARTICLE 7. CONSULTANT RATE SCHEDULE (effective 1 January 2021)
Staff Member Rate Per Hour
Principals (Directors)......................................................... $100.00 to $150.00
Associates……………………………………………………………………… $75.00 to $150.00
Expert Testimony……………………………………..……………………. Hourly rate
Outside Consultants .......................................................... Per job basis
Supplies ............................................................................. Actual cost + 15%
Mileage ............................................................................. Per mile rate as
established by the IRS
ARTICLE 8. MISCELLANIOUS
A. In providing services hereunder, the consultant shall abide by all statutes, ordinances, rules and
regulations pertaining to the provisions of services to be provided.
B. The Consultant shall indemnify and hold harmless the Municipality, its officers, agents, and
employees, of and from any and all claims, demands, actions, causes of action, including costs and
attorney's fees, arising out of or by reason of the execution or performance of the work or services
provided for herein and further agrees to defend at its sole co st and expense any action or proceeding
commenced for the purpose of asserting any claim of whatsoever character arising hereunder.
C. The Consultant shall defend actions or claims charging infringement of any copyright or patent by
reason of the use or adoption of any designs, drawings or specifications supplied by it, and the
Consultant shall hold harmless the Municipality from loss or damage resulting therefrom.
City of Otsego
Page 5
D. Insurance:
1. The Consultant shall secure and maintain such insurance as will protect the Consultant from
claims under automobile liability, and from claims for bodily injury, death, or property
damage which may arise from the performance of services under this Agreement. Such
insurance shall be written for amounts not less than:
a. General Liability: $1,000,000 each occurrence/aggregate
b. Excess Liability: $2,000,000 each occurrence/aggregate
c. The Municipality shall be named as an additional insured on the general liability
policies.
2. The Consultant shall secure and maintain a professional liability insurance policy. Said policy
shall insure payment of damages for legal liability arising out of the performance of
professional services for the Municipality, in the insured's capacity as consultant, if such legal
liability is caused by a negligent act, error or omission of the insured or any person or
organization for which the insured is legally liable. Said policy shall provide minimum limits
of $1,000,000 with a deductible maximum of $125,000 unless the Municipality agrees to a
higher deductible.
3. Before commencing work the Consultant shall provide the Municipality a certificate of
insurance evidencing the required insurance coverage in a form acceptable to Municipality.
The certificate shall provide that such insurance cannot be cancelled until thirty (30) days
after the Municipality has received written notice of the insurer’s intention of cancel this
insurance.
E. The Municipality hereby retains the Consultant as an independent contractor upon the terms and
conditions set forth in this Agreement. The Consultant is not an employee of the Municipality and is
free to contract with other entities as provided herein. The Consultant shall be responsible for
selecting the means and methods of performing the work. The Consultant shall furnish any and all
supplies, equipment, and incidentals necessary for the Consultant's performance under this
Agreement. Municipality and the Consultant agree that the Consultant shall not at any time or in
any manner represent that the Consultant or any of the Consultant's agents or employees are in any
manner agents or employees of the Municipality. The Consultant shall be exclusively responsible
under this Agreement for the Consultant's own FICA payments, workers compensation payments,
unemployment compensation payments, withholding amounts, and/or self‐employment taxes if any
such payments, amounts, or taxes are required to be paid by law or regulation.
City of Otsego
Page 6
CONDITIONS HEREIN AGREED TO:
THE PLANNING COMPANY LLC
D. Daniel Licht 13 December 2021
Chief Manager
CITY OF OTSEGO, MINNESOTA
_____________________________________ _______________
Jessica L. Stockamp, Mayor Date
____________________________________ _______________
Audra Etzel, City Clerk Date