3.6 City Planner Contract
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Planner Licht November 27, 2023
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty
City Attorney Kendall
3.6 – City Planner Contract
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 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) 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 December 13, 2021. As part of
the budget process for 2024, TPC proposed updates to the contract to include revisions to the fee schedule for private
development projects and for administration and code enforcement of the Zoning Ordinance and City Code. The changes
to the fee schedule would be effective January 1, 2024, and will adjust on an annual basis by 3.00%.
The City Attorney has reviewed the proposed agreement and has provided favorable comments for consideration of
approval by the City Council.
The Administrative Subcommittee was presented with this information at their November 14, 2023, meeting and
provided direction for City Council consideration of approval.
SUPPORTING DOCUMENTS ATTACHED:
• Agreement for Professional Planning Services
o Current
o Proposed
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:
Planning services are budgeted and expensed to each
fund based on the work being completed.
Yes
AGREEMENT FOR PROFESSIONAL PLANNING SERVICES
THIS AGREEMENT, dated November 27, 2023 and entered into by and between the CITY OF OTSEGO,
WRIGHT COUNTY, MINNESOTA, hereinafter referred to as the "City" and THE PLANNING COMPANY LLC,
hereinafter referred to as the "Consultant".
WITNESSETH:
ARTICLE 1. AREA OF SERVICE
That the City 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 City, regarding the City’s planning and
community development, and related functions and activities. The Consultant will be available to
assist and advise the City 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 City.
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 City.
C. The Consultant shall attend staff, advisory committee, and/or City Council Meetings or other
special public meetings as directed by the City.
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 City, the Consultant shall return all such files, maps and graphics, whether in
paper form or stored on other media, to the City 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.
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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 City.
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 CITY
The City 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 City 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 City 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 $135.00 per hour
for Principals and Associates.
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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 65.00 per hour for Principals and Associates.
B. All meetings, as stated in Article 2.C of this Agreement shall be payable at a fixed rate of $250.00
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 City upon receipt of an invoice showing work completed.
D. If the City finds it necessary to abandon requested work, the City shall notify the Consultant in
writing and the Consultant shall be compensated for all work completed and materials expended.
E. The above rates listed in Section 4.A.1 of this Agreement shall be adjusted annually with a 3.0%
increase rounded up to the next whole dollar on January 1 of each year beginning January 1,
2025.
F. The Fee Schedule may be amended from time to time by agreement of the City and
Consultant. Any requests for changes to the fee schedule for the next year must be made by June
30 of the preceding year.
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 City. However, any further distribution of
these reports by the City must note the Consultant as the source.
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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 City, the City 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 City of a final invoice showing work completed. All materials shall be
retained by the Consultant until all payments due from the City have been received by the
Consultant.
C. In the event of termination by the Consultant, the Consultant shall forward to the City 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, 2024, 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 2024)
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.
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B. The Consultant shall indemnify and hold harmless the City, 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. 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.
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 City, 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 City agrees to a higher deductible.
3. Before commencing work the Consultant shall provide the City 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 City has received written notice of the insurer’s intention of cancel this insurance.
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E. The City 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 City 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. City 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 City. 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.
CONDITIONS HEREIN AGREED TO:
THE PLANNING COMPANY LLC
D. Daniel Licht 27 November 2023
Chief Manager
CITY OF OTSEGO, MINNESOTA
_____________________________________ _______________
Jessica L. Stockamp, Mayor Date
____________________________________ _______________
Audra Etzel, City Clerk Date