Loading...
01-10-05 CCCITY OF OTSEGO INVESTMENT POLICY It is the policy of the City of Otsego to invest public monies which may become available for a period of time before such monies are required to be expended. It is prudent that such monies are invested to maximize the resources available for the City. It is the intent of the City to: Invest these public monies to provide the highest investment return with maximum security, 2. Provide sufficient monies to meet daily cash flow requirements, and 3. Conform with all state statutes and city policies or directives. This investment policy applies to all assets of the City that are accounted for in the City's Annual Financial report. The City will work with the depository banks and brokers approved annually by the City Council. Investments shall be made with judgment and care under circumstances, then prevailing, that persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment considering the probable safety of their capital as well as the income to be generated from the investment. The standard of prudence to be used by the designated investment officer shall be the prudent person standard as defined in Minnesota Statutes 356A.04 Subdivision 2, and shall be in the context of managing an overall investment portfolio. The designated investment officer acting in accordance with written procedures and policies and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market prices changes provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. Any investment of the City is limited to those that are permitted by Minnesota Statutes. The primary objective of any City investment shall be prioritized as follows: • Safety, • Liquidity, • Investment Return, and • Maintaining the Public Trust City of Otsego Investment Policy Page Two The first investment objective is Safety. Investment options shall be considered in a manner that seeks to ensure the preservation of the principal amount in the overall investment portfolio. To obtain this objective, diversification is to be considered in the type of investment, maturity and the investment institution where the investment is located. For checking, savings and certificates of deposits collateral may be required. Collateral requirements will be considered prior to any deposit or investment transaction. Liquidity is the second investment objective to be considered. The investment portfolio must remain sufficiently liquid to enable the City to meet its cash flow requirements as may be reasonably anticipated. Liquidity will be considered for all investments and criteria will be established to determine the amount of public monies which may be invested for short-term periods of less than one year and public monies which may be invested for a term longer than one year. The City's liquidity will be reviewed on a monthly basis and may be considered part of any interim reporting to Administration or the Council. The Return on Investment is the third investment objective. The investment portfolio should be designed with the objective of attaining a market rate of return through the budgetary and economic cycles taking into account the constraints on risk and cash flow characteristic of the investment portfolio. Maintaining the Public Trust is the last of the investment objectives. All employees that are part of the investment process shall act responsibly as custodians of the public trust. Employees of the City shall avoid transactions that may impair the public's confidence in the City's ability to govern effectively. The City's investment policies and practices will conform to Minnesota Statutes I I8A. Day -to -day management of the City's investment activity is delegated to the City's Finance Director. No person will engage in an investment transaction on behalf of the City except as provided under the terms of this policy and the procedures established to maintain this program. Written internal controls have been established to provide for the proper documentation of all investment transactions. See attached memo. Employees and any other city officials involved in the investment process shall refrain from personal business activity that could conflict with the City's investment program or could reasonably expect the public to question or doubt the ability to make impartial, objective investment decisions. Any such potential conflicts that may impair the City's investment program must declare those conflicts to the City Administrator as soon as such conflict is known. The City Council will annually approve the financial institutions or broker /dealers authorized to provide investment services. All broker /dealers providing investment services shall have a Broker Certification form properly completed annually and on file with the City. City of Otsego Investment Policy Page Three Investment authorized and permitted by this policy are as follows: United States Securities including governmental bonds, notes, bills, mortgages and other securities which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentalities, or organizations created by an act of Congress ( i.e. US Treasury bills, Federal Home Loan Bank Notes, etc.). • Minnesota Joint Powers Investment Trust agreements or contracts for shares of a Minnesota joint powers investment trust whose investments are restricted to securities authorized for investment by the City and shares of an investment company registered under the Federal Securities Act of 1940, whose shares are registered under the Federal Securities Act of 1933, as long as the investment company receives the highest credit rating and is rated in one of the two highest risk categories by at least one nationally recognized statistical rating organization and is invested in financial instruments with a final maturity of no longer than 13 months (i.e. 4M Fund). • State and local government obligations include any security that is a general obligation of any state or local government with taxing powers rated "A" or is a revenue obligation of any state or local government which is rated "AA" or better by a national bond rating service or a general obligation of the Minnesota Housing Finance Agency that is a moral obligation of the State of Minnesota and is rated "A" or better by a national bond rating service (i.e. City of Brooklyn Park, etc.). • Commercial paper issued by United States Corporation or their Canadian subsidiary that are rated in the highest quality category by at least two nationally recognized rating agencies. The rating of such commercial paper is referred to as "A1P1" (i.e. GE Capital or Nestle Corp.). • Time deposits fully insured by the Federal Deposit Insurance Corporation (i.e. Bank of ER, Riverview, First National Bank of ER, etc.). Investment transactions are completely documented by the City's finance department. Investment confirmations are received from the banks and brokers for each transaction. The finance department maintains all investment transactions on a monthly summary of cash and investments. The monthly reports, monthly broker statements and the individual investment transaction documentation are all retained by the finance department. Quarterly reports will be provided to the Council in their packets by the second meeting of the month following the end of the quarter. CITY OF OTSEGO INVESTMENT PROCEDURES The Finance Department maintains a record of the City's daily cash balance. It is used to track all deposits, payments, payroll and transfers. At any point in time, the Finance Department knows the current.balance in the Bank of Elk River checking account. The balance in the checking account is monitored to ensure the funds not invested are maintained at a minimum. Transfers to money market accounts and investment accounts are documented in the daily cash record when transferred. The cash transfers between accounts are documented by a transfer request. The request is completed and signed by the Finance Department, forwarded to the City Clerk- Treasurer for the completion of the transaction. The completed copy of the transfer request is retained in the Finance Department. An example is attached to this procedure memo. The Finance Department maintains an investment schedule together with a summary of all month -end cash balances. All investment transactions are accounted for on the monthly investment schedule. All investments are identified by investment location (i.e. bank or broker), maturity date and interest rate. This summary is used to reconcile the total cash and investments with the general ledger at each month -end. City of Otsego Bank Transfer Request Form Amount of Transfer Requested Money To Be Transferred From Money To Be Transferred To Reason For Transfer Transfer To Be Completed On What Date Requested By Approved By Completed By Amount of Transfer Requested Money To Be Transferred From Money To Be Transferred To Reason For Transfer Transfer To Be Completed On What Date Requested By Approved By Completed By TrsfrRequest Date Date Date Date Date Date Page 1 CITY OF OTSEGO FIXED ASSETS POLICY CITY OF OTSEGO FIXED ASSETS POLICY INDEX SECTION 1. PURPOSE SECTION 2. DEFINITIONS SECTION 3. CAPITAL ASSESTS AND CAPITALIZATION THRESHOLDS SECTION 4. ACQUISITIONS AND RETIREMENTS SECTION 5. FIXED ASSET INVENTORY VALUATION AND CAPITALIZATION CRITERIA SECTION 6. SALE OF ASSETS SECTION 7. DEPRECIATION PROCEDURES FOR ESTABLISHING AND MAINTAINING A FIXED ASSET RECORD SYSTEM SECTION 1. PURPOSE These procedures are intended to provide a standard system of control for all fixed assets owned by the City of Otsego. These procedures give directions to City staff regarding the operation and maintenance of the Fixed Asset Control System (FACS). SECTION 2. DEFINITIONS Ancillary Costs Costs, in addition to purchase or construction costs, related to placing a capital asset into its intended use or state of operations. Asset Life This is the standard estimated useful life of an item. To be considered a fixed asset, an item must have a useful life greater than one year. Asset Value This is the value of an item. The value will be based on the invoice plus additional costs of preparing the asset for use. To be considered a fixed asset, an item must have a value greater than $5,000. Buildings A building is a structure that is permanently attached to the land, has a roof, is partially or completely enclosed by walls, and is not intended to be transportable or movable. For example, a picnic pavilion would be considered a structure although it may have no walls..A building or structure is a roofed and/or walled structure that is city owned. Certain buildings or structures that are an ancillary part of infrastructure networks such as pumping stations should be reported as infrastructure rather than buildings. Building Improvements Capitalized costs that materially extend the useful life of a building or increase the value, or both, beyond one year. CITY OF OTSEGO FIXED ASSETS POLICY PAGE TWO Building improvements should not include maintenance and repairs done in the normal course of business. Capital Assets Under the requirements of GASB 34, capital assets include land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipments, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. Capitalization Threshold The dollar value at which a government elects to capitalize tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. Depreciation The process of allocating the cost of assets over a period of time, rather than deducting the cost as an expense in the year of acquisition. Depreciation Method The method used to calculate the allocation (depreciation) of the cost of a capital asset over its estimated useful life. The most commonly used method is straight -line depreciation, which allocates the cost evenly over the life of the asset. Estimated Useful Life An accounting estimate of time period that an asset will be able to be used for the purpose for which it was purchased or constructed. Fixed Asset An item obtained by the city with a value greater than $5,000 and an estimated useful life greater than one year. Full Month Convention Under a full month convention, property placed in service at any time during a given month is treated as if it had been placed in service on the first day of that month. This allows depreciation to be taken for the entire month in which the asset is placed in service. If the property is disposed of before the end of the estimated useful life, no depreciation is allowed for the month of disposition. Furniture & Fixtures Assets including desks, computers, etc. that are used by City staff. CITY OF OTSEGO FIXED ASSETS POLICY PAGE THREE Infrastructure Assets that are long -lived capital assets that normally are stationary in nature and can be preserved for a significantly greater number of years than most capital assets. They are permanent installations with a value greater than $100,000. Examples include water /sewer mains, roads, bridges, tunnels, drainage systems, water towers, wells, etc. Infrastructure Infrastructure improvements are capital costs that Improvements materially extend the useful life or increase the value of the infrastructure, or both. Land Any parcel of land that is city owned whether developed or undeveloped. Include costs for professional fees, demolition, interest, taxes, commissions, etc. Land Improvement Grading, roads and parking lots on city owned land that will be capitalized. Inexhaustible _Expenditures for improvements that do not require maintenance or replacement, expenditures to bring land into condition to commence erection of structures, expenditures for improvements not identified with structures, and expenditures for land improvements that do not deteriorate with use or passage of time are additions to the cost of land and are generally not exhaustible and therefore are not depreciable. Exhaustible _Other improvements that are part of a site, such as parking lots, landscaping and fencing are usually exhaustible and are therefore depreciable. Depreciation of site improvements is necessary if the improvement is exhaustible. Machinery & Equipment Includes motorized and non motorized equipment that has a primary function or use for a city street, park, ice arena, fire fighting or utility maintenance, etc. It includes items such as tractors, mowers, snow plows. Park Improvements Improvements made to a city park thatwill be capitalized. This category would include items such as playground equipment, back stops, bleachers, flagpoles, trails, etc. CITY OF OTSEGO FIXED ASSETS POLICY PAGE FOUR Salvage Value The salvage value of an asset is the value it is expected to have when it is no longer useful for its intended purpose. Tools & Other Equipment This category includes small tools and equipment such as vehicle maintenance tools. Vehicles Motorized vehicles owned by the city such as trucks. Vehicle Equipment Equipment that is installed in/on a motor vehicle such as radios, wing plows, sanders, lighting packages and toolboxes. SECTION 3. CAPITAL ASSESTS AND CAPITALIZATION THRESHOLDS A capital asset is real or personal property that has a value equal to or greater than the capitalization threshold for the particular classification of the asset and has an estimated useful life greater than one year. The city reports capital assets in the following categories: Land/Land Improvements $10,000 Other Improvements $25,000 Buildings $25,000 Building Improvements $25,000 Machinery and Equipment $5,000 Vehicles $5,000 Infrastructure $100,000 Other assets $5,000 For financial statement purposes only, a capitalization threshold is established for each capital asset category as follows: Capital assets should be recorded and reported at their historical costs, which include the vendor's invoice (plus the value of any trade -in or allowance, if reflected on the invoice) plus sales tax, initial installation cost (excluding in house labor), modifications, attachments, accessories or apparatus necessary to make the asset usable and render into service. Historical costs also include ancillary charges such as freight and transportation charges; site preparation costs, and professional fees. Capital asset improvement costs should be capitalized if the costs exceed the capitalization threshold and either the value of the asset or estimated life is increased by 25% of the original cost, or the cost results in an increase in the capacity of the asset, or the efficiency of the asset is increased by more than 10 %. CITY OF OTSEGO FIXED ASSETS POLICY PAGE FIVE SECTION 4. ACQUISITIONS AND RETIREMENTS When a department acquires a new asset, the department head is responsible for completing an "Asset Acquisition Form" and providing the Finance Officer with the Original. (An example of this form is attached.) Noted on the Asset Acquisition Forms should be the following: 1. Description: The description should clearly describe the asset, keeping in mind that this description will be used to help identify the asset in the future, without being too lengthy. 2. Expenditure Account: This is the expenditure account that the invoice for the asset is coded to. 3. Location: This is the intended location in which the asset will be stored. 4. Acquisition Code: This is the code which describes the funding source of the asset. This code will be assigned by the Finance Officer and may be left blank by the purchaser. 5. Activity Code: This is the code which describes which department purchased the asset. This code will be assigned by the Finance Officer and may be left blank by the purchaser. 6. Function Code: This is the code which describes the function of the department that owns the asset. Examples include general government, public works, fire department, etc.. This code will be assigned by the Finance Officer and may be left blank by the purchaser. 7. Vendor: This is the name of the vendor from whom the asset was purchased. 8. Acquisition Date: This is the date the asset was acquired. 9. Manufacturer: This is the name of the manufacturer of the asset, if applicable. 10. Model Number: This is the model number assigned to the asset by the manufacturer, if applicable. 11. Serial Number: This is the serial number assigned to the asset by the manufacturer, if applicable. 12. Invoice Number: This is the vendor's invoice number for the asset. CITY OF OTSEGO FIXED ASSETS POLICY PAGE SIX 13. Cost: This is the cost of the item. Cost will be based on the Invoice plus additional costs of preparing the asset for use. Trade -in values will not be used to reduce the carrying cost of the new asset. 14. Estimated Useful Life: This is the standard useful life of the item based on the chart Section 7. The acquisition form should be signed by the department head. The Finance Officer should input asset acquisition forms monthly. The Finance Officer is responsible for recording completed construction projects in the year completed. When a- department retires or transfers out an asset, the department head is responsible for completion of an "Asset Retirement/Transfer Form ". The Finance Officer must receive the original. (An example of this form is attached.) The Fixed Asset Retirement/Transfer form should include the following information: 1. Asset Description: The description should be detailed and should include the year, model, model number, color, make, type and other pertinent information relating to the asset. 2. Department: This line refers to the department retiring or otherwise changing the asset. 3. Date of Change: This is the date the change took place. 4. Type of Change: The department head should state whether the asset was sold, transferred, destroyed or traded in. If SOLD the amount of the sale and copy of receipt of cash should be attached. If TRANSFERRED the name of the department receiving the asset and its new location. If TRADE IN the amount of the trade in allowance received on a new item. Description of new item that trade was applied towards. If DESTROYED the amount of compensation as a received from insurance, if the asset was destroyed result of an accident. A copy of the cash receipt should be attached. If the asset was destroyed please note how it was destroyed, examples would include junked, totaled in an accident, stolen, etc. CITY OF OTSEGO FIXED ASSETS POLICY PAGE SEVEN The Asset Retirement/Transfer Form should be signed by the department head. The Finance Officer should input Asset Retirement/Transfer Form information monthly. Trade in value will be coded as a credit to the account; the gross cost will be coded as a debit to the account. SECTION 5. FIXED ASSET INVENTORY VALUATION AND CAPITALIZATION CRITERIA For fixed assets that are purchased, the cost will be based on the invoice plus additional costs of preparing the asset for use. Trade -in values will not be used to reduce the carrying cost of the new asset. Assets purchased under a lease or installment method should be valued at the discounted present value of total payments. Additional costs will include those necessary so the asset may be ready for use. Assets acquired by donation, cost will be fair value on date of gift and any costs of preparing asset for use. Property acquired under eminent domain will have a cost determined by the court plus any additional attorney fees, or costs associated with preparing land for intended use. Assets acquired by forfeiture /seizure are based on the fair value on date of forfeiture /seizure and additional costs associated with preparing the asset for intended use. For all fixed assets the additional costs of preparing the asset for intended use includes, but is not limited to, the following: 1. Land: Legal fees, appraisal and negotiation fees, surveying fees, site preparations costs, demolition of unwanted structures and damage payments. 2. Buildings & Improvements: Architect fees, legal fees, appraisers, costs of fixtures, damage claims, insurance premiums, interest and related construction costs. 3. Machinery, Equipment & Furniture: Transportation charges, installation costs. 4. Motor Vehicles: Transportation charges, painting, and installation of additional equipment 5. Street Lighting: Street lights acquired through a city installed project will be valued at either the contractors' costs plus a prorated share of all other CITY OF OTSEGO FIXED ASSETS POLICY PAGE EIGHT project costs, or the contractor costs plus 35 %. Street lights acquired through a developer installed project will be valued at the contractor costs plus 35 %, or current fair market value (based on an engineering estimate) plus 35 %. [WJ 6. Park Improvements: Physical improvements to park land that are not removable or do not increase the value of the land will not be capitalized, including trails, parking area, grading, aglimed surfaces, drainage pipes, etc. Removable, replaceable fixtures or buildings such as fencing, play equipment, and picnic shelters will be capitalized. It will be the responsibility of the department head to inform the Finance Officer of any additional costs associated with an asset. SECTION 6. SALE OF ASSETS No assets owned by the city shall be sold to an officer or employee of the city unless the sale conforms to Minnesota Statue 15.054. Property, except real property, maybe sold to an employee after reasonable public notice at a public auction or by sealed bid, if the employee is the highest bidder and is not directly involved in the auction sealed bid process. SECTION 7. DEPRECIATION Depreciation will be calculated using the straight line method over the estimated useful lives of assets. To avoid the complications of depreciating each asset from the specific date on which it was placed in service, GAAP supports guidelines that assume various assets are placed in service or disposed of at designated dates though out the year. Governmental entities are generally recommended to use the full -month convention. (Unless the asset is fully depreciated). The total amount depreciated can never exceed the asset's historic cost less salvage value. At the end of the asset's estimated life, the salvage value will remain. Standard estimated useful life guidelines are as follows: Buildings 15 -75 years Buildings Foundation/Frame /Structure 40 years Buildings - Temporary 25 years HVAC Systems (a/c heating) 20 years Roof 20 years Electrical 20 -30 years Plumbing 20 -30 years Sprinkler System 20 years Security/Fire Alarm System 10 years CITY OF OTSEGO FIXED ASSETS POLICY PAGE NINE Cabling 10 years Floor Covering (other than carpet) 15 years Carpeting 7 years Interior Construction 15 years Interior Renovation 10 years Fire Alarm System 10 years Telephone Equipment 10 years Machinery, Equipment, Radio 3 -15 years Water Meters 20 years Business /Office Equipment 7 -10 years Athletic Equipment 10 years Audio Visual Equipment 7 years Radio Communications 10 years Fire Department Equipment 10 years Furniture 15 years Grounds Equipment - Mowers 10 years Kitchen Equipment _Appliances 10 -12 years Outdoor Equipment _Playgrounds 15 years Custodial Equipment 10 years Photocopiers 5 years Mounted Equip w /Truck Chassis 8 years Plazas and Pavilions 60 years Vehicles 3 -12 years Cars & Light Trucks 3 -8 years Heavy trucks (more than 13,000lbs) 8 -10 years Fire Trucks 15 years Heavy Equipment- Loaders, Graders 5 -50 years Boat 10 years Land Not Depreciable Infrastructure 20 -60 years Sewer Mains, Lift Stations 50 years Water Mains 50 years Street Lights 30 years Wells & Pump Houses 25 years Roads & Highways 20 -40 years CITY OF OTSEGO FIXED ASSETS POLICY PAGE TEN (includes curb & gutter) Paved 40 years Asphalt (Rural) 40 years Asphalt (Urban) 20 years Non -Paved 50 years Public Parking Lots 15 years Sidewalks 16 -20 years Sewer System (Storm & Sanitary) 20 -40 years Water System 20 -40 years Bridges (Pedestrian) 30 years Land Improvements 15 -30 years Fencing, Gates 20 Years Landscaping, Ball Park 10 -30 years Parking Lots 15 years Outside Sprinkler Systems 20 years Athletic Fields, Bleachers 10 -15 years Paths and Trails 20 years Tennis & Basketball Courts 20 years Retaining Walls 20 years Outdoor Lighting 20 years Outdoor Equipment 20 years Benches, Swings, Slides 5 years Boat Facility, Piers, Ramps 25 years t ITEM 5 - 1 CLAIMS LIST CITY COUNCIL MEETING JANUARY 10, 2005 TO: Judy Hudson Attached is the Claims List for the City Council. For more details, please refer to the Check Detail Registers. If you have any questions regarding this service, please let me know. Claims Register Approved claims 12 -27 Payroll 01 -06 -2005 GRAND TOTAL 12 -28 -2004 $ 919,022.36 01 -05 -2005 $ 860,439.60 $ 27,490.12 $ 1,806,952.08 If you have any questions or if you would like to review this list further, please let me know. Kathy Grover Bookkeeper CITY OF OTSEGO 12/28/04 11:57 AM Page 1 *Check Summary Register© DECEMBER 2004 Name Check Date Check Amt 10100 BANK OF ELK RIVER Unpaid AMERICAN LIBERTY CONSTRUC $983.10 LILYPOND PARK UnPaid BUFFALO BITUMINOUS $918,039.26 MACIVER AVENUE PROJECT Total Checks $919,022.36 FILTER: None CITY OF OTSEGO *Check Detail Register,© DECEMBER 2004 12/28/04 11:58 AM Page 1 Check Amt Invoice Com 10100 BANK OF ELK RIVER Unpaid AMERICAN LIBERTY CONSTRUCTION E 203 - 45210 -530 Improvements Other Than Bldgs $983.10 5 PAY AP LILYPOND PARK Total AMERICAN LIBERTY CONSTRUCTION $983.10 Unpaid BUFFALO BITUMINOUS E 427- 43100 -530 Improvements Other Than Bldgs $918,039.26 PAY 3 MACIVER AVENUE PROJECT Total BUFFALO BITUMINOUS $918,039.26 10100 BANK OF ELK RIVER $919,022.36 Fund Summary 10100 BANK OF ELK RIVER 203 PARK DEVELOPMENT $983.10 427 MACIVER/70TH ST ACCESS $9 1 8,0 39.26 $919,022.36 CITY OF OTSEGO 01/05/05 9:10 AM Page 1 *Check Summary Register@ JANUARY 2005 Name Check Date Check Amt 10100 BANK OF ELK RIVER UnPaid AFFORDABLE SANITATION $637.50 5 WKS RENTAL 3 UNITS UnPaid AVENET, LLC $312.00 EMAIL ACCT/WEB BASED UnPaid BOISE CASCADE OFFICE PROD $363.55 FINANCE OFFICE SUPPLIES UnPaid BONESTR00 ROSENE ANDERLI $51,327.71 WEST WWTF UnPaid BRADLEY BELAIR $120.00 OCT, NOV, DEC, JAN CELL PHONE UnPaid CHARTER COMMUNICATIONS $100.01 MONTHLY SERVICE UnPaid CROWN MARKING INCORPORAT $55.50 JUDY - NOTARY STAMP DON MASS $120.00 OCT, NOV DEC, JAN CELL PHONE UnPaid UnPaid ECM PUBLISHERS INC $493.03 PARK/REC OPENING UnPaid FINKEN'S WATER CARE $81.11 CITY HALL UnPaid GERALD & RAMONA MARTIN $31,900.00 ROADWAY EASEMENT - MACIVER UnPaid GLENS TRUCK CENTER INC $103.09 9" MFFLR Unpaid HALLMAN OIL COMPANY $1,026.12 OFF ROAD DIESEL UnPaid HAROLD LEONARD $474.77 MILEAGE DEC 1121 @.37 UnPaid JERRY OLSON $1,750.00 12/14 - 12/30 04 UnPaid JESSICA STOCKAMP $77.33 SANTA DAY COOKIES UnPaid JOE ABRAHAMSON $501.41 DEC CELL PHONE KNUTSON RICK $120.00 OCT, NOV DEC, JAN CELL PHONE UnPaid UnPaid LONG & SONS $817.71 JAN CLEANING MINNEGASCO $182.67 PUMP HOUSE 3 555004131300 Unpaid UnPaid MINNESOTA COPY SYSTEMS $220.97 COPIER Unpaid MINNESOTA STATE TREASURE $8,164.72 QRT ENDING 12/31104 Unpaid NAPA OF ELK RIVER INC $195.25 0 RINGS UnPaid NOVA COMMUNICATIONS $1,296.23 NEW JACKS AND WIRING UnPaid REED BUSINESS INFORMATION $164.26 EAST PHASE III WWTF UnPaid SAFETY TRAIN, INC. $750.00 2005 SAFETY TRAINING UnPaid STRATEGIC EQUIPMENT $390.96 COFFEE BREWER UnPaid T & S TRUCKING BUFFALO INC $227.50 SWEEP MACIVER UnPaid THE LOGO OUTFITTERS $44.51 BLDG DEPT SHIRT UnPaid TR COMPUTER SALES LLC $1,007.94 PERMIT WORKS UnPaid US BANK $753,833.75 IMPROV 2003A SERIES UnPaid WRIGHT COUNTY AUDITOR -TRE $100.00 TAMI LOFF NOTARY UnPaid WRIGHT - HENNEPIN CO -OP ELE $3,480.00 MONTHLY SERVICE Total Checks $860,439.60 FILTER: None CITY OF OTSEGO 01/05/05 9:10 AM Page 1 *Check Detail Register© JANUARY 2005 Check Amt Invoice Comment 10100 BANK OF ELK RIVER _ AFFORDABLE SANITAT ION Unpaid E101-45250-410 Rentals (GENERAL) $637.50 843 5 WKS RENTAL 3 UNITS Total AFFORDABLE SANITATION $637.50 Unpaid AVENET, LLC E 101- 41400 -390 Contracted Services $312.00 8580 EMAIL ACCT/WEB BASED Total AVENET, LLC $312.00 Unpaid BOISE CASCADE OFFICE PRODUCTS E 250 - 42410 -201 Office Supplies $8.83 061364 BLDG OFFICE SUPPLIES E 101 -41400 -201 Office Supplies $81.14 061364 OFFICE SUPPLIES E 101 -41600 -201 Office Supplies $94.68 061364 FINANCE OFFICE SUPPLIES E 101 -41400 -201 Office Supplies $14.78 104096 OFFICE SUPPLIES E 101 -41400 -201 Office Supplies $164.12 827800 OFFICE SUPPLIES Total BOISE CASCADE OFFICE PRODUCTS $363.55 Unpaid BONESTROO ROSENE ANDERLIK E 430 - 43256 -302 Engineering Fees $1.3,112.27 115352 WEST WWTF E 432 - 43256 -302 Engineering Fees $38,215.44 115353 EAST WWTP III Total BONESTROO ROSENE ANDERLIK $51,327.71 Unpaid BRADLEY BELAIR $120.00 OCT, NOV, DEC, JAN CELL PHONE E 101- 43100 -320 Telephone Total BRADLEY BELAIR $120.00 Unpaid CHARTER.COMMUNICATIONS E 101 -41400 -390 Contracted Services $100.01 MONTHLY SERVICE Total CHARTER COMMUNICATIONS $100.01 Unpaid CROWN MARKING INCORPORATED E 101 -41400 -201 Office Supplies $55.50 JUDY - NOTARY STAMP Total CROWN MARKING INCORPORATED $55.50 Unpaid DON MASS $120.00 OCT, NOV DEC, JAN CELL PHONE E 101 - 43100 -320 Telephone Total DON MASS $120.00 Unpaid ECM PUBLISHE� RS IBC E 101- 41400 -347 Newsletter $378.63 181919 OTSEGO VIEW E 101 -45250 -350 Print/Binding (GENERAL) $114.40 182101 PARK/REC OPENING Total ECM PUBLISHERS INC $493.03 Unpaid FINKEN'S WATER CARE E 101- 41940 -390 Contracted Services $41.17 563599 CITY HALL E 101- 43100 -390 Contracted Services $10.12 563600 MAINT SHOP 13620 90TH PEAVEY HOUSE E 101- 41950 -310 Miscellaneous $29.82 568739 Total FINKEN'S WATER CARE $81.11 RALD & RAMONA MARTIN Unpaid E 427 - 431.00 -500 Capital Outlay (GENERAL) $11,499.89 ROADWAY EASEMENT - MACIVER E 427 - 43100 -500 Capital Outlay (GENERAL) $20,400.11 ROADWAY EASEMENT - MACIVER Total GERALD & RAMONA MARTIN $31,900.00 GLENS TRUCK CENTER INC Unpaid E 101 -43100 -210 Operating Supplies (GENERAL) $10.19 1243380038 ALLISON TRANSM LUBE SPIN ON E101-43100-220 Repair /Maint Supply (GENERAL) $17.51 1243500014 MUDFLAP E101-43100-220 Repair /Maint Supply (GENERAL) $73.90 1243630037 9" MFFLR E101-43100-220 Repair /Maint Supply (GENERAL) $1.49 1243630038 NUT/ WHEEL STUD CITY OF OTSEGO *Check Detail Register© JANUARY 2005 01 /05/05 9:10 AM Page 2 Check Amt Invoice Comment Total GLENS TRUCK CENTER INC $103.09 Unpaid HALLMAN OIL COMPANY E 101 -43100 -202 Gas & Oil $1,026.12 9981 OFF ROAD DIESEL Total HALLMAN OIL COMPANY $1,026.12 Unpaid HAROLD LEONARD E 250 - 42410 -321 Mileage/Travel $414.77 MILEAGE DEC 1121 @.37 E 250 -42410 -320 Telephone $60.00 DEC CELL PHONE Total HAROLD LEONARD $474.77 Unpaid JERRY OLSON E 25042410 -390 Contracted Services $1,750.0 12/14 - 12/30 04 Total JERRY OLSON $1,750.00 Unpaid JESSICA STOCKAMP E 101- 45250 -440 Recreation Programming $77.33 SANTA DAY COOKIES Total JESSICA STOCKAMP $77.33 Unpaid JOE ABRAHAMSON E 250 -42410 -320 Telephone $60.00 DEC CELL PHONE E 250- 42410 -321 Mileage/Travel $441.41 DEC MILEAGE 1193 @.37 Total JOE ABRAHAMSON $501.41 Unpaid KNUTSON RICK E 10143100 -320 Telephone $120.00 OCT, NOV DEC, JAN CELL PHONE Total KNUTSON RICK $120.00 U pai LONG & SONS E 101 -41940 -203 Supplies -General $40.26 05 -9 C -FOLDS E 101 - 41940 -389 Cleaning Services $777.45 05 -9 JAN CLEANING Total LONG & SONS $817.71 Unpaid MINNEGASCO E 601 - 49400 -322 Utilities $182.67 PUMP HOUSE 3 555004131300 Total MINNEGASCO $182.67 Unpaid MINNESOTA COPY SYSTEMS E101-41400-413 Office Equipment Rental $220.97 133068 COPIER Total MINNESOTA COPY SYSTEMS $220.97 Unpaid MINNESOTA STATE TREASURER G 250 -21801 BUILDING PERMIT SURCHARGE $8,164.72 4TH QTR QRT ENDING 12/31/04 Total MINNESOTA STATE TREASURER $8,164.72 Unpaid NAPA OF ELK RIVER INC E 101 -43100 -210 Operating Supplies (GENERAL) $35.53 116046 AFT 8 E 101- 43100 -203 Supplies - General $52.71 117370 BLK CT /BLADE E 101 - 43100 -210 Operating Supplies (GENERAL) $54.36 117456 BLADE E 101 - 43100 -203 Supplies - General $21.27 118678 ARM ALUBATTERY E 101- 43100 -220 Repair /Maint Supply (GENERAL) $1.57 118954 0 RINGS E 101 - 43100 -210 Operating Supplies (GENERAL) $26.55 119107 WAX /SHINE MAS E 101- 43100 -210 Operating Supplies (GENERAL) $3.26 119335 CP SCREW /NO 8 NUTS Total NAPA OF ELK RIVER INC $195.25 Unpaid NOVA COMMUNICATIONS E 250 - 42410 -570 Office Equip and Furnishings $777.08 5335 NEW PHONE E 250 - 42410 -570 Office Equip and Furnishings $519.15 5410 NEW JACKS AND WIRING Total NOVA COMMUNICATIONS $1,296.23 CITY OF OTSEGO *Check Detail Register© JANUARY 2005 Check Amt Invoice Comment 01/05/05 9:10 AM Page 3 Unpaid Kt-LU tSU5INtJ5 MrVKRRA I1Ury 10100 BANK OF ELK RIVER E 432 - 43256 -350 Print/Binding (GENERAL) $164.26 2782356 EAST PHASE III WWTF $13,248.41 Total REED BUSINESS INFORMATION $164.26 427 MACIVER/70TH ST ACCESS Unpaid SAFETY TRAIN, INC. $13,112.27 432 East WWTP Phase III $38,379.70 E 101- 43100 -360 Education/Training /Conferences $750.00 2005 SAFETY TRAINING $ Total SAFETY TRAIN, INC. $750.00 Unpaid STRATEGIC EQUIPMENT E 101 -41940 -560 Furniture and Fixtures $390.96 14577 COFFEE BREWER Total STRATEGIC EQUIPMENT $390.96 Unpaid T & S TRUCKING BUFFALO INC E 101- 43100 -435 Street Sweeping $227.50 219 SWEEP MACIVER Total T & S TRUCKING BUFFALO INC $227.50 Unpaid THE LOGO OUTFITTERS E 250 - 42410 -203 Supplies - General $44.51 1529 BLDG DEPT SHIRT Total THE LOGO OUTFITTERS $44.51 Unpaid TR COMPUTER SALES LLC E 25042410 -390 Contracted Services $1,007.94 10055 PERMIT WORKS Total TR COMPUTER SALES LLC $1,007.94 Unpaid US BANK E 350- 47000 -602 Bond Interest $68,833.75 33532800 IMPROV 2003A SERIES E 350 - 47000 -601 Debt Sry Bond Principal $685,000.00 33532800 IMPROV 2003A SERIES Total US BANK $753,833.75 Unpaid WRIGHT COUNTY AUDITOR- TREASURE E 10141400 -310 Miscellaneous $100.00 TAMI LOFF NOTARY Total WRIGHT COUNTY AUDITOR - TREASURE $100.00 Unpaid WRIGHT - HENNEPIN CO -OP ELECTRIC E 60249450 -390 Contracted Services $1,740.00 13764 MONTHLY SERVICE E 601 - 49400 -390 Contracted Services $1,740.00 13764 MONTHLY SERVICE Total WRIGHT- HENNEPIN CO -OP ELECTRIC $3,480.00 10100 BANK OF ELK RIVER $860,439.60 Fund Summary 10100 BANK OF ELK RIVER 101 GENERAL FUND $6,302.80 250 BUILDING PERMIT FEES $13,248.41 350 Waterfront West/85th DS $753,833.75 427 MACIVER/70TH ST ACCESS $31,900.00 430 West Trtmnt Plant -Phase 1 $13,112.27 432 East WWTP Phase III $38,379.70 601 WATER FUND $1,922.67 602 SEWER FUND $ $860,439.60 ITEM 5.2 Resolution No. 2005 - 01 City of Otsego Country of Wright State of Minnesota A Resolution Establishing Depositories For City Funds. WHEREAS, the City of Otsego each year must stipulate official depositories for City Funds. Now, therefore, be it resolved by the City Council of Otsego, Minnesota. That the following are designated as official depositories for City Funds: Bank of Elk River, Elk River, MN. Investment Center located at Bank of Elk River. Miller, Johnson, Steichen & Kinnard, Minneapolis, MN First National Bank of Elk River, Elk River, MN Investment Center located at First National Bank of Elk River, Anoka, MN. First Banks - FBS Investment Services, Inc. Norwest Investment Securities, Minneapolis, MN. Edward D. Jones & Co. - Elk River, MN Solomon, Smith, Barney - Minneapolis, MN Minnesota Municipal Money Market (4M) Fund, St. Paul, MN Multi -Bank Securities, Inc. Northland Securities, Minneapolis, MN Riverview Community Bank, Otsego, MN 2. That to properly diversify and protect the City's funds the City Treasurer is authorized to deposit up to ten (10) million dollars ($10,000,000.00) in each of these depositories. Collateral is required for funds that are not directly invested in investment securities that are insured by the Federal Deposit Insurance Corporation or other United States Government Agencies. Investments shall be in accordance with investment securities allowable under the State of Minnesota guidelines for municipalities. The City Treasurer shall deposit all or any part of the City's funds into the approved depositories and withdraw the same when necessary, or when directed by the City Council. Dated this 10th day of January, 2005. City of Otsego Larry Fournier, Mayor Attest: Judy Hudson, City Clerk City Seal - ITEM 5_3 - Resolution No. 2005 - 02 City of Otsego County of Wright State of Minnesota A Resolution Adopting An Official Newspaper. Whereas, the Elk River Star News is a qualified newspaper of general circulation within the City of Otsego: Be It Resolved, that the City of Otsego Aesignated the Elk River Star News as the City's official newspaper effective immediately. Be It Further Resolved, that all ordinances and any other matters which are required by law to be published in an official newspaper, and all other matters which the City Council shall deem advisable and in the public interest to be published, shall be published in the Elk River Star News. Dated this 10th day of January, 2005. Larry Fournier, Mayor Attest: Judy Hudson, City Clerk City Seal Bonestroo � Rosene 0 Anderlik & Associates Engineers & Architects December 28, 2004 City of Otsego 8899 Nashua Avenue NE Otsego, MN. 55330 Attention: Judy Hudson Invoice No. 1.1.51352 ,��IITE:M 5_4 24 05 L RE: File No. 503 -02 -107 West Wastewater Treatment Plant iCM�'�iLY'X �N4ax.Ya:�..Y 3':VA_. Y.59'e^'_ .:Y:aSxY�'. �r..:K`tSw b:4 ais•.:.Kar.A :Y.. y..°'.«Y;TX .'._�fi :.TYt45:•_.. •'l•.'T• - - - :5...�""' -T.Y ��. .!'.1.�Y •.l-"K�.+E:�' '. Y: ".... W... i »'t...- .?:S�'� For Professional Services Rendered October 31, 2004 through November 27, 2004 General engineering services performed for West Wastewater Treatment Plant Project - Construction Phase Senior Principal 7.0 Hrs. @ $117.00 $819.00 Project Manager 4.5 Hrs. @ $109.00 490.50 Registered Engineer 7.0 Hrs. @ $92.00 644.00 Senior Designer 1.0 Hrs. @ $83.00 83.00 Senior Designer 13.5 Hrs. @ $72.00 972.00 Field Supervisor 46.0 Hrs. @ $77.00 3,542.00 Senior Inspector 65.0 Hrs. @ $77.00 5,005.00 Senior Draftsperson 5.0 Hrs. @ $68.00 340.00 inspector 5.0 Hrs. @ $57.00 285.00 Project Tech 1.0 Hrs. @ $45.00 45.00 Subtotal Consultants Wentz Associates invoice 03- 038.08 Direct Project Expenses Mileage Telephone Subtotal $151.70 51.97 $12,225.50 $683.10 203.67 Total Amount Due This Invoice $13,112.27 All bills due and payable within 30 days. Interest will be charged at the annual rate of Bonestroo, Rosene, Anderlik & Associates, Inc. 12% after 30 days. 1 declare under penalties of perjury that 1 am the person making the within claim; that I have examined said claim and that the same is just and true; that the services therein charged were actually rendered and were of the value therein charged; that the fees therein charged are official and are such as allowed bylaw, and that no part of said claim has been paid. The effect of this verification shall be the same as if b subscribed and swam to under oath. Signature of Claimant • St. Paul, St. Cloud, Rochester, Willmar, MN ^ Milwaukee, WI • Chicago, IL 2335 West Highway 36 • St. Paul, MN 55113 Office: 651 -636 -4600 e Fax: 651 - 636 www.bonestroo.com Affirmative Action /Equal Opportunity Employer and Employee Owned Wentz Associates, Inc. 7300 France Avenue South Edina, Minnesota 55435 Phone: (952) 831 -1180 Fax: (952) 831 -2179 E -Mail: info @wentzassoc.com Over 25 Years of Consulting Engineering Service December 3, 2004 Invoice No. 03- 038.08 Project Title Otsego West WWTF Bill To: Ms. Karen Cavett Bonestroo Rosene Anderlik & Associates 2335 West Highway 36 St. Paul, Minnesota 55113 Contract Tune Lump Sum in the Amount of: $ 14,500 - Construction Documents & Bid CA/Hourly Services Expenses Total Previously Invoiced: $ 17,690.50 $ 49.51 $ 17,740.01 Pavment to Date: 1 $ 16,549.96 Period 10/1/04 - 11/30/04 Consulting engineering services rendered for Construction Administration. Professional Engineering Services Mechanical Engineer: 1 Hour @ $ 105.00 /hour $ 105.00 Engineer: 7 -1/2 Hours @ $ 72.00/hour $ 540.00 Sub -Total Services $ 645.00 Expenses Mileage & Postage $ 38.10 Sub -Total Expenses $ 38.10 Thank you. Thomas A. Wentz Total Due This Invoice $ 683.10 Bonestroo Rosene Anderlik & Associates Engineers & Architects December 20, 2004 City of Otsego 8899 Nashua Ave. IVE Otsego, MN 55330 -7314 Re: File No. 503 -04 -108 East WWTP Phase III Invoice No. For Professional Services Rendered From October 31, 2004 Through November 27, 2004 Partial preparation of plans and specifications for the East Wastewater Treatment Facility Lump Sum Agreement Percent Complete Direct Project Expenses 2335 West Highway 36 • St. Paul, MN 55113 Office: 651 - 636-4600 • Fax: 651-636 -1311 www,bonestroo.com Less: Previously Invoiced Subtotal Mileage Telephone Expense Subtotal $381,000.00 95% $361,950.00 (323,850.00) $38,100.00 88.15 27.29 115.44 Total Amount Due This Invoice $38.215.44 All bills due and payable within 30 days. Interest will be charged at the annual rate of Bonestroo, Rosene, Anderlik 8t Associates, Inc. 12% affer 30 days. I declare under penalties of perjury that 1 am the person making the within claim; that I have examined said claim and that the same is just and true; that the services therein charged were actually rendered and were of the value therein charged; that the fees therein charged are official and are such as allowed by law; and that no part of said claim has been paid. The effect of this verification shall be the same as if b subscribed and sworn lo under oath. Signature of Claimant St. Paul, St. Cloud, Rochester, Willmar, MN • Milwaukee, Wf • Chicago, IL Affirmative Action /Equal Opportunity Employer and Employee Owned 01 -05 -2005 02 :14PM FROM Couri & MacArthur JO COURT, MACARTHUR & i RUPPE, P.L..L.P. Michael C. Couri• Attorneys at Law Andrew I MacArthur I 705 Central Avenue East Robert T. Ruppe•- I PO Box 369 David R . Wenll07 f Sr. Michael, MN 55376-0369 Kristen H.. Carr (763) 497 -1930 +Also licensed in tlffnois i (763) 497-2599 (FAX) "AW Gcenseatn California ! counmacarthur®eanhlink.net January 5, 2005 City Council . embers i City of Otsego 8899 NashuaAvenue'NE Otsego, MN 55330 WE:' CITESCAPE Ant nna Agreement Dear Council; Members: . 4418823 P.02 ITEM 5_5 Please find a#ached to: the Consent agenda a draft Agreement for CITESCAPE use 'of the City's west wateftower The representatives of C=SCAPE previously appeared in front of the, Council and I was authorized to work with them towards an agreement in accord with tie. City Co�mcil discussion and the previous CITESCAPE letter. proposal. I have'.e =m d this drat to CITESCAPE for their review. In the event that there art some minor $Anges I *ill provide the Council with a revised Agreement prior to next Monday's r4ularly sch §duled City Council - meeting. Very �e tew J COURI. cc: Ron Wagner, City. UPPE, PLLP ANTENNA SITE USE AGREEMENT THIS AGREEMENT, is made by and between the CITY OF OTSEGO, State of Minnesota, hereinafter referred to as the "CITY ", and CITESCAPE, LLC, a Minnesota Corporation, hereinafter referred to as "CITESCAPE "; WHEREAS, the CITY owns, operates and maintains a water tower "Tower" on premises owned by the CITY, said premises being described as (See attached Exhibit A), hereinafter referred to as "Site" and/or "Property'; and WHEREAS, because of the Tower's location and capacity for antenna mounting, it is a desirable wireless communications transmitting and receiving site; and WHEREAS, CITESCAPE desires to construct a commercial wireless communications system and believes that the placement of communications equipment on said Tower at said Site will contribute importantly to said system, and CITESCAPE has requested permission to do so from the CITY; NOW THEREFORE, in consideration of the mutual undertakings and agreement hereinafter set forth, the CITY and CITESCAPE agree as follows: 1. AUTHORIZATION TO USE WATER TOWER SPACE The primary purpose of the City's ownership of the Property is to: (a) operate and maintain a municipal water tower so as to provide water service to residents of the City of Otsego; and (b) to provide governmentally related communication systems for the City of Otsego. Subject to the following terms and conditions of this Agreement, the CITY grants to CITESCAPE non - exclusive use of a certain space upon said Water Tower, subject to any and all existing easements and restrictions not inconsistent with the rights granted in this Agreement, including the installation, operation, and maintenance of the antenna and the storage of the equipment. The location and orientation of CITESCAPE equipment on the Tower and Site is as set forth on the attached Exhibit B, which is incorporated herein by this reference. 2. OPTION A. Grant of Option; Option Consideration CITY, for and in consideration of five - hundred dollars ($500.00), the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, does hereby grant and convey unto CITESCAPE, its successors and assigns, an option (the "Option ") to lease the Site upon the terms and conditions set forth herein. B. Option Period: Exercise of Option. The term of the Option (the "Option Period ") shall commence as of the Effective Date and end thirty (30) days thereafter. Tenant may, in its sole discretion, extend the Option Period by thirty (30) additional days by providing CITY with written notice prior to the expiration of the original Option Period and by simultaneously paying CITY the sum of ($340.00). CITESCAPE may exercise the Option at any time during the Option Period by delivering written notice thereof to CITY. Upon CITESCAPE exercising the Option, Section 1 through 4 of this Agreement shall merge into a lease subject to the terms and conditions set for in Section 5 through 37 of this Agreement (the "Lease "). Such notice shall specify the date upon which the Lease Term (as defined below) shall commence (the "Lease Commencement Date "), which shall occur no later than ten (10) days following the date of CITESCAPE's exercise notice (the "Exercise Date "). In the event that CITESCAPE has not exercised the Option on or before the expiration of the Option Period, this Agreement shall terminate and the parties shall be relieved of any further obligations hereunder, except for those that, by their terms, survive the termination of this Agreement. The intent of this Option clause is to allow CITESCAPE a reasonable time period to determine whether the equipment will operate property on the Water Tower. In the event that CITESCAPE does not exercise its option, all equipment shall be removed from the Tower and any and all repairs shall be made to leave the Water Tower in the same condition as before any installation or use by CITESCAPE. 3. TERM This Agreement shall be for an initial term of two (2) years beginning on the date executed by the CITY. After the initial term, the CITY and COMMUNICATION'S COMPANY may negotiate for an extension of this Agreement. 4. CONSTRUCTION CITESCAPE shall be responsible for any and all costs and expenses related to the design, purchase, delivery, construction and installation of any and all equipment necessary for CITESCAPE's use of the CITY Site and Tower including installation of telephone service and adaptation of the Tower's existing electrical service for CITESCAPE's use under the terms of this agreement. CITESCAPE's installation shall be constructed in conformance with design specifications approved by the CITY pursuant to Exhibit B attached hereto. CITY shall cooperate with CITESCAPE and execute all documents required to permit CITESCAPE's intended use of the Site in compliance with zoning, land use, and building regulations. 5. RENTAL FEES A. The site use fee through the term of the Agreement shall be $340 per month per each antenna attached to the Tower during the first year of the Agreement. The site use fee shall be increased by 5 % each year. Additional antennas may be installed upon approval by the CITY and proper amendment to this Agreement. 2 B. CITESCAPE will initially install 1 antenna. CITESCAPE prior to the installation of additional antennas shall, in accordance with Paragraph 8(A) of this Agreement, provide the CITY with a detailed technical plan of the new site(s), which must be approved by the CITY pursuant to Paragraph 8A and 5A. Such approval shall not be unreasonably withheld or delayed. Said technical plan shall be attached hereto and incorporated herein as an addition to Exhibit B. C. CITESCAPE shall install and connect to its existing electrical service. CITESCAPE shall be responsible for the payment of all electrical utility bills. D. The CITY and CITESCAPE may also negotiate charges for other services and installations, not set forth in Exhibit B, by an addendum to this Agreement. E. As provided in paragraph E above, the CITY and CITESCAPE may, agree to the installation of additional equipment at separate rates, which when agreed to and set forth in writing by the parties shall become an additional payment amount made by CITESCAPE to the CITY. F. Site Use Fees due to CITY shall be paid by CITESCAPE in advance in four quarterly installments beginning upon execution of this Agreement by both parties hereto and thereafter on the First (I") business day of each calendar quarter, i.e., Jan. 1; April 1; July 1; and Oct. 1. The amount of the first quarterly payment shall be prorated for the number of calendar days remaining in the calendar quarter at the time of execution of this Agreement by both parties hereto. Payments will be paid by check or may be wired directly in the CITY'S bank account in accordance with written wiring instructions provided by CITY to CITESCAPE. Payments made by check to the CITY shall be mailed to the CITY as follows: City of Otsego Attention: City Administrator 8899 Nashua Avenue NE Elk River, MN 55330 6. GOVERNMENTAL APPROVAL CONTINGENCY CITESCAPE's right to the use of the Site is expressly made contingent upon CITESCAPE obtaining all necessary certificates, permits, zoning or other approvals that may be required by the City, County, State, or Federal governments for use of the CITESCAPE equipment, antennas, utilities, etc. CITY agrees to cooperate with CITESCAPE and other governmental units to obtain all such approvals. In the event that any certificate, permit, license or other approval required or issued is not approved or is subsequently cancelled, expires, lapses or is otherwise withdrawn or terminated by any governmental authority, not due to any act or omission by CITESCAPE so that CITESCAPE is unable to use the Site for its intended purpose, then CITESCAPE shall 3 contact the City and request termination of this agreement, which may be terminated at the sole discretion of the CITY. 7. USE A. CITESCAPE may use the Tower and Site for the sole purpose of constructing, installing, removing, replacing, maintaining and operating a commercial wireless communications transmission facility in accordance with Exhibit B. B. Subject to the provisions of Exhibit C (Site Access Procedures) attached hereto, CITY shall provide CITESCAPE with twenty -four (24) hour, seven (7) day a week, year -round access to the Site subject to the City's right to limit access to the Tower in cases of emergency or at times when the City is conducting repairs or maintenance on the Water Tower. The City shall use reasonable efforts to minimi the disruption of CITESCAPE's access to the Tower, in responding to any such emergencies and performing such maintenance and repairs. The City will be entitled to reimbursement from CITESCAPE if the City incurs any costs associated with providing CITESCAPE access to Water Tower, Property or Equipment Shelter except in those cases where cost is incidental to City obtaining access for its own purposes unrelated to CITESCAPE's use of antenna, Tower and Equipment Shelter. Notwithstanding the foregoing, "access" does not require or impose upon the City an affirmative duty to snowplow in order to provide "access" to the Property or to the Tower. The City shall not be responsible in damages or otherwise for interruption in CITESCAPE services where the interruption is due to an emergency or performance of maintenance and repairs on the Tower. C. CITESCAPE, its agents and contractors are hereby granted the right, at its sole cost and expense, to enter upon the City's Site and conduct such studies as CITESCAPE deems necessary to determine the Site's suitability for CITESCAPE's intended use. These studies may include surveys, soil tests, environmental evaluations, radio wave propagation measurements, field strength tests and such other analyses and studies as CITESCAPE deems necessary or desirable. Notwithstanding the foregoing, CITESCAPE shall not enter onto the Site or Tower to perform any necessary studies or tests referenced above until such time as CITESCAPE has obtained prior written approval of the CITY, such approval not to be unreasonably withheld or delayed, and obtained and provided to the CITY an acceptable Indemnification Agreement and Certificate of Insurance in compliance with Paragraph 15 of this Agreement D. CITESCAPE may operate, drive and temporarily park vehicles of any kind on said Site in order to transport equipment, supplies, materials and personnel in connection with the accomplishment of any or all of the foregoing purposes. 4 E. CITESCAPE may temporarily store equipment, materials or supplies on said Site in order to accomplish any or all of the foregoing purposes. F. CITESCAPE may install utilities including, but not limited to, telephone service, for the benefit of CITESCAPE, at CITESCAPE's sole cost and expense, and make improvements to the present utilities on the Site. CITESCAPE may request utility easements for the installation of such facilities. Such requests shall be made by CITESCAPE in writing to the CITY, which approval shall not be unreasonably withheld. CITESCAPE shall coordinate any such utility installation or improvements, in advance, with the CITY in accordance with the terms of this agreement and Exhibit C attached hereto. CITESCAPE shall be responsible to pay all installation and recurring charges for utilities installed or improved for the benefit of CITESCAPE except for recurring monthly electrical charges as provided in paragraph 4(D) of this agreement. G. CITESCAPE may have ingress and egress over, across, upon and through said Site in order to accomplish any or all of the aforesaid purposes. Any access easements rented to CITESCAPE shall terminate upon termination of this Antenna Site Use Agreement and CITESCAPE agrees to execute any and all documents necessary to remove the easement from the Property. H. The color of the antenna and any equipment placed on the Tower shall match the color of the Tower. I. CITY will not in any way be responsible for the antenna, the related equipment, or any personal property actually placed on the Property or installed on the Tower by CITESCAPE. J. The antenna and the related equipment shall remain the property of CITESCAPE, subject to the terms of Paragraphs 7 and 8. 8. INSTALLATION OF EQUIPMENT AT ADDITIONAL SITES Additional sites may be added to this Agreement by written addendum mutually agreed to by CITY and CITESCAPE. CITESCAPE shall, in accordance with Paragraph 9(A) of this Agreement, provide the CITY with a detailed technical plan of the new site(s), which must be approved pursuant to Paragraph 8A before execution of that site's addendum. Said technical plan shall be attached hereto and incorporated herein as Exhibit B. The CITY shall, in accordance with Paragraph 11 of this Agreement, provide CITESCAPE with detailed site access procedures for the new site. These procedures will be attached hereto and incorporated herein as Exhibit C. 5 All terms and conditions of this Agreement and any subsequent attachments shall apply to any and all new sites added to this Agreement unless specifically modified by written addendum. 9. CITESCAPE CONDITIONS This use is granted subject to the following conditions: A. CITESCAPE shall submit to the CITY a detailed technical site plan, including location of utilities, equipment placement drawings, frequencies, ERP . calculations, and antenna wind load calculations, which must be approved by the CITY prior to execution of this Agreement by CITY. Said technical site plans and specifications shall be incorporated herein as Exhibit B. B. CITESCAPE shall not make any Material Modifications or changes to its equipment, beyond those approved in Exhibit B, on the Site or Tower without the prior written approval of the City, such approval not to be unreasonably withheld or delayed. Material Modifications shall be defined as an increase in the outdoor equipment footprint or adding any attachments to the Tower, or an increase in the number of antennas, or an increase in the antenna wind loading, or an increase in total effective radiated power, or changes in operating frequencies. C. All attachments to the Tower shall be made in a professional manner and subject to approval of the City, such approval not to be unreasonably withheld. No modifications may be made on the Tower, nor shall any Tower bolts be removed or replaced without the approval of the City. D. All items of CITESCAPE equipment as listed on Exhibit B shall be provided and paid for by CITESCAPE. CITESCAPE shall be solely responsible for the installation, maintenance and repair of CITESCAPE equipment during the term of this Agreement and any extensions. E. CITESCAPE shall maintain the antenna and equipment in good condition at all times, at its sole cost and expense. CITESCAPE shall conduct all repair, replacement and maintenance operations in accordance with applicable OSHA regulations or such other occupational and safety regulations pertaining to such operations. Every five (5) years from the commencement date of this Agreement, CITESCAPE shall have the antenna, related equipment and Tower inspected by a Registered Civil Engineer and provide the City with a copy of the inspection report. If CITESCAPE fails to do so, and such failure creates a risk of damage or injury to persons or property (as determined in the reasonable discretion of the City), the City may take such steps as it determines to be necessary to protect persons or property; including removal of the antenna and related equipment. CITESCAPE shall reimburse the City for any costs incurred 6 in connection with assuring compliance with the provisions of this paragraph; including any attorneys, engineer's or expert fees, administrative expenses and costs. of restoring the Tower and the Property to their original condition. If CITESCAPE fails to pay the CITY for such costs within thirty (30) days of a demand by the CITY for payment, the CITY at its election may terminate this Agreement and retain the total payment of the current years rent. These remedies are nonexclusive, and the CITY expressly reserves its rights to pursue any and all available legal or equitable remedies. F. All CITESCAPE and all CITY radio communications equipment which now exists on said Tower or which may be placed at the Site shall be installed, operated and maintained in accordance with all applicable rules and regulations established by Federal Communications Commission (FCC). G. CITESCAPE shall separately meter and pay all utility services that are associated with the use of the Property and the Tower. The City agrees to cooperate with CITESCAPE in its efforts to connect the antenna and related equipment to existing utility service at CITESCAPE's expense. The City makes no representation or warranty regarding the availability of electric or other utility service to the Tower. CITESCAPE shall have the right to install utilities, at CITESCAPE's expense, and to improve the present utilities on the Property. The City shall not be liable, and CITESCAPE waives any and all claims against the CITY, for any interruption of electrical or other utility services to the Property, Antenna or Equipment Shelter. H. CITESCAPE shall cooperate with CITY and execute all documents required pursuant to this Agreement or to permit CITESCAPE's intended use of the Site in compliance with zoning, land use, and building regulations. I. CITESCAPE shall not resell, sublease, broker or otherwise permit use of space or capacity on the Site or Tower by others except as provided for in Paragraph 24 of this Agreement. No advertising of any kind shall be permitted on the Tower or Site. 10. RF EMISSIONS AND HARMFUL INTERFERENCE In all cases, governmental systems shall have the right to operation without being subjected to harmful interference or interruptions from commercial users at the Site. CITESCAPE shall not use, nor shall CITESCAPE permit its employees or contractors to use the Tower or Site in any way which causes harmful interference or interruptions to the operation of governmental communications equipment which maybe installed at the Site, or results in radio - frequency radiation exposure levels at, or adjacent to, the Site to be in excess of the limits specified in 47 C.F.R. § 1.1310, as amended. VA CITESCAPE and CITY shall promptly make any necessary adjustments or repairs should their equipment, due to maladjustment, defects or failures, cause harmful interference to other radio communications equipment at the Site, or result in radio - frequency radiation exposure levels at, or adjacent to, the Site to be in excess of the limits specified in 47 C.F.R. § 1.1310, as amended. Assignment of responsibility for excessive radio- frequency radiation exposure levels at, or adjacent to, the Site, or harmful interference not due to equipment maladjustment, defects or failures shall be in accordance with the following: A. Commercial users shall bear primary responsibility to rectify excessive radio - frequency radiation exposure levels at, or adjacent to, the Site, or harmful interference caused by their equipment, or a combination of their equipment, to governmental systems at the Site. B. Governmental system users shall bear secondary responsibility to rectify excessive radio - frequency radiation exposure levels at, or adjacent to, the Site, or harmful interference caused by their equipment to commercial users at the Site. C. The commercial user with the most recent installation or modification shall bear primary responsibility to rectify excessive radio - frequency radiation exposure levels at, or adjacent to, the Site, or harmful interference caused by that installation or modification to pre- existing commercial users. Pre- existing commercial users shall bear secondary responsibility to rectify such excessive radio - frequency radiation exposure levels at, or adjacent to, the Site, or harmful interference caused by their equipment to the commercial user with the most recent installation or modification. Primary responsibility shall be defined as providing essentially all necessary analysis, measurements, testing and engineering to determine the cause of, and solution to, excessive radio- frequency radiation exposure levels at, or adjacent to, the Site, or harmful interference. The user with primary responsibility shall make all necessary and reasonable changes, at their sole expense, to their system; i.e. antenna location, frequencies, ERP, transmitter filtering, etc. to rectify the excessive radio - frequency radiation exposure levels at, or adjacent to, the Site, or harmful interference. Secondary responsibility shall be defined as full cooperation with the user bearing primary responsibility, and providing reasonable supplementary analysis, measurements, testing and engineering to determine the cause of, and solution to, excessive radio - frequency radiation exposure levels at, or adjacent to, the site, or harmful interference. The user with secondary responsibility shall make all reasonable changes to their system necessary to rectify the excessive radio - frequency radiation exposure levels at, or adjacent to, the site, or interference, at the expense of the user with primary responsibility, that do not materially adversely affect performance of their system. CITESCAPE shall provide the CITY with a copy of any Routine Environmental Evaluations, Environmental Assessments, or other technical information regarding compliance with radio- frequency radiation exposure levels at the Site that are required to be submitted to the FCC pursuant to 47 C.F.R. §§ 1.1307 and 1.1310, as amended. 11. ACCESS CITESCAPE shall adhere to all Site access procedures as described in Exhibit C, attached hereto and incorporated herein by this reference. All Site access procedures or modifications must be approved by and coordinated with the CITY which has primary use and control of the Site. 12. RELOCATION OF CITESCAPE EQUIPMENT The CITY reserves the right to require relocation of CITESCAPE equipment elsewhere upon the Tower or the Site based on a reasonable determination by the CITY that space or capacity occupied by CITESCAPE on the Tower and/or Site is needed for governmental uses. Upon written notice by the CITY, CITESCAPE shall relocate said equipment to another location on the Tower and/or Site acceptable to the CITY within ninety (90) days, and CITESCAPE shall bear the sole expense of said relocation. Refusal or inability of CITESCAPE to relocate its equipment to a suitable location shall constitute default and shall be grounds for cancellation of this Agreement pursuant to Paragraph 26 of this Agreement. 13. TOWER MAINTENANCE The CITY agrees to maintain the Tower in accordance with all local, state and federal rules and regulations. 14. DAMAGE TO SITE If the Site or Tower are damaged or destroyed by acts of nature, fire or other casualty and CITESCAPE equipment becomes inoperable as a result thereof, or access to the Site for purposes of required repair, maintenance, replacement, removal, installation, change, etc., is unavailable due to said acts of nature, fire or other casualty, the CITY may elect to: (a) Terminate this Agreement upon thirty (30) days notice to CITESCAPE and pay CITESCAPE the remaining balance of any pre -paid quarterly Site Use Fee; or (b) To have repaired, restored or rehabilitated the Site or Tower at no expense to CITESCAPE. CITESCAPE's rent payments shall be abated until the Site or Tower is sufficiently repaired, restored, or rehabilitated for CITESCAPE to resume its use of the Tower and Site under this Agreement. 6 (c) In case of such destruction of or damage to the Site or Tower, CITESCAPE shall also have the right to terminate this Agreement upon thirty (30) days notice to CITY, and receive the remaining balance of any pre -paid quarterly site Use Fee on a pro -rated basis. The CITY shall not be responsible to CITESCAPE for damage or destruction of CITESCAPE equipment or other personal property in, on, or about the Site or Tower unless caused by the negligent or willful acts of the CITY, its agents, contractors or employees. 15. INDEPENDENT CONTRACTOR CITESCAPE shall select the means, method, and manner of performing the services herein. Nothing is intended or should be construed in any manner as creating or establishing the relationship of co- partners between the parties hereto or as constituting CITESCAPE as the agent, representative, or employee of the CITY for any purpose or in any manner whatsoever. CITESCAPE is to be and shall remain an independent contractor with respect to all services performed under this Agreement. CITESCAPE represents that it has or will secure at its own expense all personnel required in performing services under this Agreement. Any and all personnel of CITESCAPE or other persons while engaged in the performance of any work or services required by CITESCAPE under this Agreement shall have no contractual relationship with the CITY, and shall not be considered employees of the CITY. Any and all claims that may or might arise under the Minnesota Economic Security Law or the Workers' Compensation Act of the State of Minnesota on behalf of said personnel, arising out of employment or alleged employment, including, without limitation, claims of discrimination against CITESCAPE, its officers, agents, contractors, or employees shall in no way be the responsibility of the CITY. Unless caused by the CITY's negligence or willful misconduct, CITESCAPE shall defend, indemnify, and hold the CITY, its officers, agents, and employees harmless from any and all such claims including, but not limited to, payment of all necessary costs, disbursements and attorney's fees. Such personnel or other persons shall neither require nor be entitled to any compensation, rights, or benefits of any kind whatsoever from the CITY, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Workers' Compensation, Re- employment Insurance, disability, severance pay, and Public Employees Retirement Association benefits. 16. INDEMNIFICATION AND INSURANCE A. CITESCAPE agrees to defend, indemnify, and hold harmless the CITY, its elected officials, officers, agents, volunteers and employees from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including costs, disbursements and attorney fees, resulting directly or indirectly from any act or omission of CITESCAPE, anyone directly or indirectly employed by them, and/or anyone for whose acts and/or omissions they may be liable in the 10 performance of the services required by this contract, and against all loss by reason of the failure of said CITESCAPE to perform fully, in any respect, all obligations under this contract. B. CITESCAPE agrees at all times during the term of this Agreement, and beyond such term when so requested, to have and keep in force insurance, either under a self - insurance program or separate insurance policy, as follows: (1) Commercial General Liability shall list the City of Otsego as an additional insured with the following insurance limits: Limits General Aggregate $1,000,000 Products- Completed Operations Aggregate $1,000,000 Personal and Advertising Injury $1,000,000 Each Occurrence - Combined Bodily Injury and Property Damage $1,000,000 (2) Automobile Liability — Combined single limit each occurrence for bodily injury and property damage covering owned, non -owned and hired automobiles - $1,000,000 (3) Workers' Compensation and Employer's Liability: Limits (a) Workers' Compensation: Statutory If the Contractor is based outside the State of Minnesota, coverage must apply to Minnesota laws. An umbrella or excess policy over primary liability coverages is an acceptable method to provide the required insurance amounts. The above establishes minimum insurance requirements. It is the sole responsibility of CITESCAPE to determine the need for and to procure additional coverage that may be needed in connection with this Agreement. 11 Limits (b) Employer's Liability Bodily injury by: Accident - Each Accident $100,000 Disease - Policy Limit $500,000 Disease - Each Employee $100,000 An umbrella or excess policy over primary liability coverages is an acceptable method to provide the required insurance amounts. The above establishes minimum insurance requirements. It is the sole responsibility of CITESCAPE to determine the need for and to procure additional coverage that may be needed in connection with this Agreement. 11 CITESCAPE shall not commence work on the Site, or otherwise occupy the Tower or Site until it has obtained required insurance and filed an acceptable Certificate of Insurance with the CITY. The Certificate shall: (a) List CITY as Certificate holder and as an additional insured with respect to operations covered under the contract, for all liability coverage's, except Workers' Compensation and Employer's Liability, and Professional Liability, if applicable; and (b) Be amended to show that CITY will receive 30 days written notice in the event of cancellation, non - renewal, or material change in any described policies. C. CITESCAPE also agrees that any contract let by CITESCAPE for the performance of the work on the Site or Tower as provided herein shall include clauses that will: (1) Require the Contractor to defend, indemnify, and hold harmless the CITY, its elected officials, officers, agents and employees from any liability, claims, causes of action, losses, demands, damages, judgements, costs, interest, expenses (including, without limitation, reasonable attorney's fees, witness fees, and disbursements incurred in the defense thereof) arising out of or by reason of the acts and/or omissions of said Contractor, its subcontractors, anyone directly or indirectly employed by them, and/or anyone for whose acts and/or omissions they may be liable for. (2) Require the Contractor to provide and maintain insurance in accordance with the following: (1) Workers' Compensation and Employer's Liability Insurance: Limits (a) Bodily Injury by Accident: $100,000 each accident (b) Bodily Injury by Disease: $500,000 policy limit/ $100,000 each employee Note: all states endorsement is required if contractor is domiciled outside the State of Minnesota. (2) Commercial General and Automobile Liability Insurance: Limits (a) Commercial General Liability: Combined Bodily Injury and Property Damage: Each Occurrence Limit $1,000,000 General Aggregate Limit $1,000,000 Products - Completed Operations Aggregate Limit $1,000,000 Personal and Advertising Injury Limit $1,000,000 12 Coverages above shall also include: Premises - Operations Contractual Liability (including oral and written contracts) Explosion, Collapse, Underground Property Damage (XCU) (b) Automobile Liability including Hired Car and Employers Non - Ownership Liability: Combined Bodily Injury and Property Damage: Each Occurrence Limit $1,000,000 The above subparagraphs establish minimum insurance requirements, and it is the sole responsibility of CITESCAPE's Contractor(s) to purchase additional insurance that may be necessary for the project. 17. TAXES CITESCAPE will pay all personal and real estate property taxes assessed against CITESCAPE's antenna and related equipment at the Site. If such improvements constructed on the property should cause part of the property to be taxed for real estate purposes, it shall be the liability of CITESCAPE to pay such property taxes. 18. NO WARRANTIES BY THE CITY The CITY makes no warranties, expressed or implied, whatsoever regarding the Site. In particular, the CITY does not warrant that the proposed Tower or equipment upon the Site will be suitable for CITESCAPE intended use. Further the CITY makes no warranty as to the condition or safety of the Site for CITESCAPE employees, agents or independent contractors, other than the warranties contained in Paragraph 27, Hazardous Substances, of this Agreement. Any such determination and liability resulting thereof shall be the sole responsibility of CITESCAPE. 19. GOVERNMENT APPROVALS It shall be the sole responsibility of CITESCAPE to apply for and obtain all governmental approvals necessary for CITESCAPE intended use. The CITY agrees to cooperate with CITESCAPE in obtaining, at CITESCAPE expense, all licenses, permits and/or governmental approvals necessary for CITESCAPE use of the Site. 20. NON - DISCRIMINATION - AFFIRMATIVE ACTION In accordance with the CITY's policies against discrimination, no person shall be excluded from full employment rights or participation in or the benefits of any program, service, or activity on the grounds of race, color, creed, religion, age, sex, disability, marital status, sexual orientation, public assistance status, or national origin; and no 13 person who is protected by applicable Federal or State laws, rules, or regulations against discrimination shall be otherwise subjected to discrimination. 21. NOTICES Any notices provided for or permitted in this Agreement shall be made by certified United States mail, postage prepaid, or by delivering of same in person, as follows: If to CITY to: City of Otsego Attn: City Administrator 8899 Nashua Avenue NE Elk River, MN 55330 (763) 441 -4414 If to CITESCAPE to: Joel E. Carlson CITESCAPE, LLC 619 West St. Germain Street, Suite 212 Saint Cloud, MN 56301 (320) 257 -7020 22. DATA PRIVACY CITESCAPE and CITY agree to abide by all applicable State and Federal laws and regulations concerning the handling and disclosure of private and confidential information concerning individuals and/or data including but not limited to information made non - public by such laws or regulations. 23. RECORDS - AVAILABILITY As required by Minn. Stats. § 16C.05 Subd. 5, CITESCAPE agrees that the CITY, the State Auditor, the Legislative Auditor, or any of their duly authorized representatives, in the event that any dispute arises between the parties to this Agreement regarding payment by CITESCAPE to the CITY, upon reasonable notice, which shall not be less than seven (7) business days, during normal business hours, and not more than once a calendar year, shall have access to and the right to examine, and audit the books, documents, papers, and records which are pertinent only to the payment of rent to the CITY for use of the subject Site. To the extent permitted by law, all information obtained by or revealed to the CITY, the State Auditor, or any of their representatives or agents shall remain non - public data and shall not be disclosed to any third party without the express written authorization of CITESCAPE or by court order. This audit provision shall be effective during the term of this Agreement and for six years thereafter. 14 24. NON - ASSIGNMENT CITESCAPE binds itself, its partners, successors, assignees, subcontractors, and legal representatives to the CITY in respect to all covenants, agreements and obligations contained in the Agreement. Neither this contract nor any rights or duiies hereunder may be assigned or delegated by the CITY or by CITESCAPE without the prior written consent of the other party. Such consent shall not be unreasonably withheld. Any assignment or delegation in violation of this section shall be void. Notwithstanding the foregoing, CITESCAPE reserves the right to assign this contract or any rights or duties under this contract to any affiliated company or subsidiary of CITESCAPE or to a company which results due to the merger of CITESCAPE with another company. In the event that CITESCAPE elects to assign this contract, or any rights or duties under this contract, to any affiliated company or subsidiary of CITESCAPE, it shall give the CITY ninety (90) days' written notice preceding said assignment. Upon notification to CITY of any assignment, and receipt of CITY's prior consent where appropriate, CITESCAPE shall be relieved of all performance, liabilities and obligations under this Agreement. No subcontract, however, shall relieve CITESCAPE of its liabilities and obligations under this Agreement. Further, CITESCAPE shall be fully responsible for the acts, omissions, and failures of its subcontractors in the performance of the herein- specified contractual services, and of persons directly or indirectly employed by subcontractors. Contracts between CITESCAPE and each subcontractor shall require that the subcontractor's services and obligations are performed in accordance with the terms and conditions herein specified. Consent to assign shall be accomplished by execution of a form prepared by the CITY and signed by CITESCAPE, the assignee and the CITY. Nothing in the contract document shall create any contractual relationship between the CITY and CITESCAPE's employees, subcontractors and their agents and employees or any other parties furnishing commodities and /or services to CITESCAPE and its agents and employees. The CITY may freely assign its rights and delegate its duties under this Agreement to a. joint powers organization or to any such organization to which the CITY may become a member during the term of this Agreement. 25. LIENS CITESCAPE will not allow any mechanics' or materialmen's liens to be placed on the Site as a result of its work on the Site and CITESCAPE shall indemnify and hold harmless the CITY and the Site forever free and clear from all liens for labor and material furnished by CITESCAPE or a contractor of CITESCAPE and not the CITY. 15 Said duty to hold harmless and indemnify CITY includes, but is not limited to, costs, expert fees, disbursements and attorney's fees. 26. MERGER AND MODIFICATION A. It is understood and agreed that the entire Agreement between the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof. All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. B. Any alterations, variations, modifications, or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. C. CITESCAPE's or the CITY's failure to insist upon strict performance of any provision or to exercise any right under this Agreement shall not be deemed a relinquishment or waiver of the same, or a modification of this Agreement, unless consented to in writing. Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the Agreement, unless specifically so stated, consistent with terms and conditions of this Paragraph. 27. DEFAULT AND CANCELLATION A. If CITESCAPE fails to perform any of the provisions of this Agreement or so fails to administer the work as to endanger the performance of the Agreement, this shall constitute a default. Upon written notice by the CITY, CITESCAPE shall have sixty (60) days to cure said default. If such default is capable of being cured, but not capable of being cured within sixty (60) days, this Agreement may not be terminated so long as CITESCAPE provides the CITY, within thirty (30) days of the initial CITY notice of said default, a written response notice detailing the appropriate curative action being diligently pursued by CITESCAPE. The CITY shall, based on the CITESCAPE written response, grant a reasonable extension of time to complete cure of said default. Said extension shall not exceed ninety (90) days from the initial CITY notice of fault. Failure to cure said default may result in immediate termination of this Agreement by the CITY. B. The CITY may, based on a reasonable determination by the CITY that Tower and/or Site capacity utilized by CITESCAPE is needed for governmental uses, and if CITESCAPE cannot relocate its equipment to an alternate location approved by the CITY pursuant to Paragraph 10 of this Agreement, cancel this Agreement upon serving CITESCAPE with six (6) months written notice of cancellation. In the event of such cancellation, CITESCAPE shall remove all property and equipment, including the antenna and all personal property and trade fixtures installed or owned by CITESCAPE from the Tower and Site, and 16 CITESCAPE shall further remove all debris and restore any and all damage to the Tower and Site caused by such removal. In the event of such cancellation, and upon removal of all CITESCAPE equipment from the Site, CITESCAPE shall be refunded pro rata any pre -paid Site Use Fees. The CITY shall not be liable for any costs incurred by CITESCAPE to remove its equipment or to relocate to another site. B. This Agreement may be canceled with or without cause by either party upon serving the other party with six (6) months written notice of intent to cancel. Prior to the effective date of cancellation, unless otherwise agreed to in writing by the CITY, CITESCAPE shall remove all property and equipment, including the antenna and all personal property and trade fixtures installed or owned by CITESCAPE from the Tower and Site, and CITESCAPE shall further remove all debris and restore any and all damage to the Tower and Site caused by such removal. In the event of such cancellation, and upon removal of all CITESCAPE equipment from the Site, CITESCAPE shall be refunded pro rata any pre -paid Site Use Fees from the effective date of cancellation. C. In the event CITESCAPE fails to so remove any component of the antenna, related equipment, or both, or to return the Tower and the Property to their original condition, within thirty (30) days of the termination of this Agreement, then the City shall have the right to remove the antenna or related equipment at CITESCAPE's sole cost and expense. If CITESCAPE fails to reclaim the antenna or equipment with thirty (30) days' notice form the date of removal by the City, said antenna or equipment shall without further notice be deemed abandoned. No antenna or equipment will be released by the City to CITESCAPE until CITESCAPE has reimbursed the City for all expenses related to removing the antenna and the equipment and returning the property and the Water Tower to their original condition. 28. HAZARDOUS SUBSTANCES CITY represents that CITY has no knowledge of any substance, chemical, or waste on CITY'S Site that is identified as hazardous materials, asbestos, hazardous substance, waste, toxic or dangerous or defined in any applicable federal, state or local environmental or safety law or regulation, including, but not limited to, CERCLA. CITY shall hold CITESCAPE harmless from and indemnify CITESCAPE against any damage, loss, expense, response costs, or liability, including consultant fees and attorneys' fees resulting from the presence of hazardous substances on, under or around CITY'S Site or resulting from hazardous substances being generated, stored, disposed of, or transported to, on, under, or around CITY'S Site as long as the hazardous substances were not generated, stored, disposed of, or transported by CITESCAPE or its employees, agents or contractors. 17 CITESCAPE represents and warrants that its use of the Tower and Property will not generate and CITESCAPE will not store or dispose of on the Property, nor transport to or over the Water Tower or Property, any Hazardous Materials, unless CITESCAPE specifically informs the City thereof in writing twenty -four hours prior to such storage, disposal or transport, or otherwise as soon as CITESCAPE becomes aware of the existence of Hazardous Materials on the Property. The obligations of this section shall survive the expiration or other termination of this Agreement. CITESCAPE will be solely responsible for and shall defend, indemnify, and hold harmless the CITY, its elected officials, officers, agents and employees from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including, but not limited to, costs, disbursements, consultant fees and attorney fees, resulting from CITESCAPE's, its employees, agents or contractors errors, acts and omissions related to the handling, storage, disposal, transportation, release or generation of hazardous substances on the Site or adjacent properties. The obligations of Paragraph 26 of this Agreement shall survive the expiration or other termination of this Agreement, consistent with applicable statute of limitations. For purposes of this Agreement "Hazardous Materials" shall be interpreted broadly and specifically includes, without limitation, asbestos, fuel batteries or any hazardous substance, waste, or materials as defined in any federal, state, or local environmental or safety law or regulations including, but not limited to, CERCLA. 29. NON - EXCLUSIVE USE Upon paying the rent as required herein, CITESCAPE shall have the right to the non- exclusive use of the Water Tower and Property as permitted in this Agreement. The City shall not be responsible for any interference which impairs the quality of the communication services being rendered by CITESCAPE from the antenna. 30. INTERFERENCE CAUSED BY ANTENNA CITESCAPE's equipment shall be installed and operated in a manner which does not cause interference or otherwise impair the quality of the communication services being rendered by the following higher priority users: (1) City; (2) public safety agencies including law enforcement, fire, and ambulance services, that are not part of the City; (3) other governmental agencies where use is not related to public safety and (4) commercial users with installations or modifications preceding the installation by CITESCAPE. 31. INTERFERENCE WITH ANTENNA OPERATIONS A. Temporary Interruptions of Service. If the City determines that continued operation of the antenna would cause or contribute to an immediate threat to public health and/or safety (except for any issues associated with human exposure to radio frequency omissions, which is regulated by the federal government), the 18 City may order CITESCAPE to discontinue its operation. CITESCAPE shall immediately comply with such an order. Service shall be discontinued only for the period that the immediate threat exists. If the City does not give prior notice to CITESCAPE, the City shall notify CITESCAPE as soon as possible after its action and give its reason for taking the action. The City shall not be liable to CITESCAPE or any other party for any interruption in CITESCAPE's service or interference with CITESCAPE's operation of its antenna or equipment, except as may be caused by the negligence or willful misconduct of the City, its employees or agents. In any event, the City's liability shall not extend beyond the obligation to repair the cause of the interruption or interference. If the discontinuance extends for a period greater than three (3) business days, CITESCAPE's sole remedy shall be the right to terminate this Agreement within its sole discretion. B. With Structure. CITESCAPE shall not interfere with City's use of the Tower or Property and agrees to cease all such actions which unreasonably and materially interfere with City's use thereof no later than three (3) business days after receipt of written notice of the interference from City. In the event that CITESCAPE's cessation of action is material to CITESCAPE's use of the Tower and Property and such cessation frustrates CITESCAPE's use of the Tower and Property, within CITESCAPE's sole discretion, CITESCAPE shall have the immediate right to terminate this Agreement. C. With Higher Priority Users. If CITESCAPE's equipment causes impermissible interference with the parties identified in paragraph 29 above or with preexisting tenants, CITESCAPE shall take all measures necessary to correct and eliminate the interference. If the interference cannot be eliminated within 48 hours after receiving City's written notice of the interference, CITESCAPE shall immediately cease operating its Antenna and shall not reactivate operation, except intermittent operation for the purpose of testing, until the interference has been eliminated. If the interference cannot be eliminated within 30 days after CITESCAPE received City's written notice, City may at its option terminate this Agreement immediately. D. Interference Study - New Occupants. Upon written notice by City that it has a bona fide request from any other party to lease an area including or in close proximity to the Tower and Property, CITESCAPE agrees to provide City, within twenty (20) days, the radio frequencies currently in operation or to be operated in the future of each transmitter and receiver installed and operational on the Tower and Property at the time of such request. City may then have an independent registered professional engineer of City's choosing perform the necessary interference studies to determine if the new applicant's frequencies will cause harmful radio interference to CITESCAPE. City shall require the new applicant to pay for such interference studies. City agrees that it will not grant a future lease in the Tower and Property to any party who is of equal or lower priority to 19 CITESCAPE, if such party's use is reasonably anticipated to interfere with CITESCAPE's operation of its antenna or equipment. 32. FUTURE DEVELOPMENT CITESCAPE understands and acknowledges that the City may utilize the Property for public use at some future date, and that the design and manner of such use shall be in the sole discretion of the City. In the event that City undertakes such use, then the City and CITESCAPE agree to cooperate with one another as necessary to facilitate both parties use of the Property. 33. CONDEMNATION In the event the whole of the Property is taken by eminent domain, this Agreement shall terminate as of the date title to the Property vests in the condemning authority. In the event a portion of the Property is taken by eminent domain, either party shall have the right to terminate this Agreement as of said date of title transfer, by giving thirty (30) days' written notice to the other party. In the event of any taking under the power of eminent domain, CITESCAPE shall not be entitled to any portion of the award paid for the taking and the City shall receive full amount of such award. CITESCAPE hereby expressly waives any right or claim to any portion thereof. Although all damages, whether awarded as compensation for diminution in value of the leasehold or to the fee of the Property, shall belong to City, CITESCAPE shall have the right to claim and recover from the condemning authority, but not from City, such compensation as may be separately awarded or recoverable by CITESCAPE on account of any and all damage to CITESCAPE's business and any costs or expenses incurred by City in moving /removing its antenna, equipment or personal property. Sale of all or part of Tower or Property to a purchaser with power of eminent domain in the face of the exercise of the power, shall be treated as a taking by condemnation. 34. MINNESOTA LAWS GOVERN The Laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this contract and the legal relations between the herein parties and performance under it. The appropriate venue and jurisdiction for any litigation hereunder will be those courts located within Wright County, State of Minnesota. Litigation, however, in the federal courts involving the herein parties will be in the appropriate federal court within the State of Minnesota. Any claim, controversy or dispute arising out of this Agreement may upon mutual agreement of the parties be referred to non - binding or binding arbitration in accordance with the applicable rules of the American Arbitration Association. If any provisions of this Agreement are held invalid, illegal or unenforceable, the remaining provisions will not be affected. 20 CITY APPROVAL CITESCAPE, LLC, having signed this Antenna Site Use Agreement, and the City of Otsego having duly approved this contract on the day of , 20 , and pursuant to such approval, the proper City officials having signed this contract, the parties hereto agree to be bound by the provisions herein set forth. Approved as to form and execution City Attorney Date: CITY OF OTSEGO STATE OF MINNESOTA By: _ Mayor By: City Clerk CITESCAPE, LLC APPROVAL By: Joel E. Carlson Its: Vice President Date: STATE OF CITY OF CORPORATE ACKNOWLEDGMENT ss. On this Day of , 200_, before me appeared Joel E. Carlson, to me personally known, who did say that he is the Vice President, CITESCAPE, LLC the corporation described herein and who executed the foregoing instrument; and that said instrument was executed on behalf of said corporation by authority of its-Board of Directors or other Governing Body; and said Joel E. Carlson acknowledged said instrument to be the free act and deed of said corporation. (seal) Notary Public State of Minnesota My Commission Expires 21 EXHIBIT A The real property subject to the Antenna Site Use Agreement is legally described as follows: [INSERT LEGAL DISCRIPTION] All said property is located in the City of Otsego, County of Wright, State of Minnesota. THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK 22 EXHIBIT B Site Diagram, Shelter, Equipment and Tower Details To Be Developed THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK 23 EXHIBIT C Site Access Procedures Initial installation of all CITESCAPE equipment at the Site including antenna, line, equipment cabinet and utility connections shall be coordinate through the CITY by contacting the City Administrator at (763) 441 -4414 at least two (2) weeks in advance of initial construction. CITESCAPE shall also notify the CITY at least forty — eight (48) hours in advance of work commencing and /or any large material deliveries that may hinder normal traffic, parking or other activities adjacent to the Site by contacting the City Administrator at (763) 441 -4414. Notice shall include the type of work to be conducted, the approximate time and duration workers will be on site, the number of workers expected and the name and telephone number of CITESCAPE contact person. The CITY will provide CITESCAPE with access to a key to the Tower. The key to the site will be maintained at the Otsego City Hall. Upon presentation of appropriate identification and stating his purpose, a key to the Tower will be given to CITESCAPE, its authorized representative or contractor. Upon completion of any work at the Site, CITESCAPE or its authorized representative or contractor shall secure the Site and return the key to the Otsego City Hall. Site access or routine operation, maintenance and mandated inspections of the tower and other related equipment located on the tower compound will not require prior written notification to the CITY. Any loose material, debris, wire, cable, tools, etc. shall be removed immediately or at the end of each day by CITESCAPE, its representative or contractor. THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK 24 ITEM 7 -1 RTtH _ p�sSQ QQtAJ-%UITIAt t0Q, 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners @nacplanning.com MEMORANDUM TO: Otsego Mayor and City Council FROM: Laurie Shives /Daniel Licht DATE: 5 January 2005 RE: Otsego - Arbor Creek 3 Addition, Final Plat FILE: 176.02 — 04.39 BACKGROUND Emmerich Development Corporation has submitted plans for Arbor Creek 3 Addition Final Plat consisting of 209 single family lots and five outlots. The subject property is guided for low density residential uses by the Comprehensive Plan within the west sanitary sewer service district. The area west of Maclver Avenue is zoned, R -6, Residential Townhouse, Quadraminium and Low Density Multiple Family District and the area east of Maclver Avenue is zoned R -4, Residential Urban Single Family District. The preliminary plat for Arbor Creek was approved by the City Council on 10 March 2003. Final plats are processed in accordance with Section 21 -3 -3 of the Subdivision Ordinance and do not require review and recommendation by the Planning Commission prior to City Council review. Exhibits: A. Site Location B. Preliminary Plat C. Final Plat ANALYSIS Preliminary Plat Consistency. The proposed final plat includes 209 lots, while the approved preliminary plat for the area of the third addition included 231 lots. The decrease in number of lots is due to the redirection of 78 Street so that it traverses more directly through the subdivision and provides better access points to the 1 R0 Ilk TH AS;SO0-tATjED 0-ONx *ULTfAt4iTfS�,, tNiC., 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners @nacplanning.com MEMORANDUM TO: Otsego Mayor and City Council FROM: Laurie Shives /Daniel Licht DATE: 5 January 2005 RE: Otsego - Arbor Creek 3rd Addition, Final Plat FILE: 176.02 - 04.39 BACKGROUND Emmerich Development Corporation has submitted plans for Arbor Creek 3rd Addition Final Plat consisting of 209 single family lots and five outlots. The subject property is guided for low density residential uses by the Comprehensive Plan within the west sanitary sewer service district. The area west of Maclver Avenue is zoned, R -6, Residential Townhouse, Quadraminium and Low Density Multiple Family District and the area east of Maclver Avenue is zoned R -4, Residential Urban Single Family District. The preliminary plat for Arbor Creek was approved by the City Council on 10 March 2003. Final plats are processed in accordance with Section 21 -3 -3 of the Subdivision Ordinance and do not require review and recommendation by the Planning Commission prior to City Council review. Exhibits: A. Site Location B. Preliminary Plat C. Final Plat ANALYSIS Preliminary Plat Consistency. The proposed final plat includes 209 lots, while the approved preliminary plat for the area of the third addition included 231 lots. The decrease in number of lots is due to the redirection of 78 Street so that it traverses more directly through the subdivision and provides better access points to the neighboring developments. The redirection of 78 Street eliminated several lots formerly located in Block 1 as did the required wetland buffer along the southwestern edge of most lots in Block 1. As a condition of approval of the preliminary plat, the developer worked with City staff to relocate street connections to allow for better access and circulation between the subject site, Martin Farms and future subdivisions nearby. Feedlot Setback. Section 20 -27 -9 of the Zoning Ordinance requires a 1,000 -foot setback for any new dwelling from a registered feedlot. The 1,000 -foot boundary from Berning feedlot north of 80 Street overlaps Lots 1 -5, Block 2, Lots 1 -5, Block 3, Lots 1- 9 Block 4, Lots 6 -11 Block 5 and Lots 1 -9, Block 1 of the proposed 3rd Addition according to the preliminary plat. The applicant must submit house plans for these lots illustrating compliance with the setback requirement or the lots must be platted as outlots. Construction Plans. The applicant has submitted construction plans for the proposed 3 Addition final plat. These plans address grading, street and utility construction and other site improvements. These plans are subject to review and approval of the City Engineer. Sewer Capacity. There is currently available sewer capacity to serve 222 residential dwellings based on current Comprehensive Plan policies. The available capacity for residential use will accommodate the proposed final plat. Park and Trail Dedication. The applicant dedicated land adjacent to the west treatment plant as a part of the first final plat of Arbor Creek. However, this land only partially satisfied the park and trail dedication requirements for the entire development outlined in Section 21 -7 -18 of the Subdivision Ordinance. The balance of the required park dedication is to be in the form of a cash fee in lieu of land as shown in the following calculation: Cash Fee x Remaining Dedication = Required Fee /Lot x No. of Lots = Payment ($2,820 /dwelling) x 69.9% _ $1,971.18 /dwelling x 209 lots = $411,976.62 Landscape Plan. The submitted landscape plan shows the required buffer yards for areas abutting Maclver Avenue and 80 Street right -of -ways. These buffer yards meet the design standards outlined in Section 20- 16 -7.D of the Zoning Ordinance. Development Contract. The' applicant is required to enter into a development agreement with the City and pay all applicable fees and securities upon approval of a final plat. The development contract is subject to review and approval of the City Attorney. 2 RECOMMENDATION The proposed Arbor Creek 3rd Addition Final Plat is consistent with the City's Zoning and Subdivision Ordinances and the approved preliminary plat. As such, we recommend approval of the requested final plat, subject to the following conditions. POSSIBLE ACTIONS A. Motion to approve the Arbor Creek 3 rd Addition Final Plat, subject to the following conditions: 1. House plans must be submitted for Lots 1 -5, Block 2, Lots 1 -5, Block 3, Lots 1 -9 Block, 4, Lots 6 -11 Block 5 and Lots 1 -9, Block 1 illustrating compliance with the 1,000 -foot feedlot setback required by Section 20 -27- 9 of the Zoning Ordinance or the lots are to be platted as outlots, subject to City Staff approval. 2. All construction plans (grading, streets, utilities, etc.) are subject to the review and approval of the City Engineer. 3. The applicant shall pay a cash fee of $411,976.62 in lieu of land to satisfy park and trail dedication requirements. 4. The applicant shall enter into a development contract and pay all fees and securities required by it, subject to review and approval of the City Attorney. 5. Comments of other City Staff. B. Motion to deny the application based on a finding that it is inconsistent with the provisions of the subdivision ordinance. C. Motion to table. pc. Mike Robertson Judy Hudson Tim Rochel Andy MacArthur Ron Wagner John Jackels K3 OTS E G 0 r -r -mw vv -mw rr _+ ON THE GREAT RIVER ROAD a NAC BABE MAP DAW.PROVDED BY Hakanson Anderson Assoa,lnc. PREPARED OCTOBER 1001 NOTE: THIS MAP IS FOR PLANNING PURPOSES ONLY AND SHOULD NOT BE USED FOR EXACT MEASUREMENT. 8 z x y n S r '• €e pap• F € r`.a a ( 5 fr • t • r aak�� t t't f�€YFef€aaif €l d( €! � irr r P •t €g ��. g�.a� �• ! t .. r• € d t € e f t t l: €. € � x $ a €." s re � �� �eee� L �__� Ili • :e� &��`Pr �gd��� SP ! � g : d� e i k t� 6 S $_ add 5 G ^'. _ r, € ? L SS.� €i ti el�•�1 }E1 P ° � t�Ftf €i� ;�t €I• °P€ eyg S nS �� F�. e S � r �t PS ! ME r[ p 9 y t de U lu y 18 : � di ig' *FF�ai�� €' � ` p t i X €df t 1 111 1 ; sg; � �! L- -• "� S � € � gt � !` t: 11 PI r �a an< aaoaaa ! E yy6 fI'6' fa �F4! € i j l7cf nu •ee yt � 7 r at E` D x psi f riffi °F "tr�• °Sreeci9`fi � S ! gd��° � 5.. r a: a�E� <_5': �� „eeiei RRS rrrrrr °� €! €° ° C aa75;•t�ss F F ilB�a gi a ° PF �� �` j4. Z •'a'S €''€fir € � • J '•! e' r o ` o s ' a,l f , 9 a ss Ir q 'Pr i F ® i s c 9 STREET N.E. i I/2 S7. i _PROPERTY DESCRIPTION a3 a w l_ POSSIBLE STREET CONNECTION °'" rw•.v...w p...rr„re.a a ' 77— C'_ x]'xr1 Oi,a SiREEt m .'.rr.... 9 =. na. • .`' e r w..° �—v:.'.`r r i r y4r ` ..e :r`ir.°... e / V / aiianr.x STREE7e d Y'Y_4 M .• ... / v A r.a a b — / r / t � T, • E F. �, 4.3. ......m �. r. .ter mgr � y ° — � `r si a,abi•.ww ip.,. w w °w��r DEVELOPMENT SUMMARY YY w— x]. 1 / p C.— / a �m srt amov , 111 • ° 9 � . p, .m v SIDEWALK r,mo.r DEVELOPMENT NOTE . ua.m! .c ACKENZIE AVE.y a to a "Fl* FIMA y� E'o—ft • F--w • a '- r tar m av*pmed Am— I i I ANat Creek obw u AW T6 PrelkNoary Plat w w 1e�1 r flr�yym f n Pa NiAn Mw. M oar.. we orr ..... .... NOR TB I Y /�_ ARBOR CREEK 3RD ADDITION 356.95 1 . z SO I so IG '�w IN FEET 'I. �",O'llo • O�EWM I O II S 'll 11 11 11 — 11 — — . -- , .y /2 M By -O—ul 1. m T ANO UNLaD -ON,, W A, � REM(— or �S 'LA, ME PUmWS a ms W122 T. MKO BEARwO Of DRAINAGE AND UTJLNYEj�EMENTS ME SHOWN NUS- (NO , 0 SCALE) II - I T II co Hs o L BCWO I IEV N U - . o A SE UA A. EXHIBIT C-2 INSET B MCCOMBS FRANK ROO ASSOC INC. ENGINEERS AND LAN DSSRVE0RS SHEET 3 �OF5 SHEET.- PJ ?e.ee - 9.x3 ARBOR CREEK 3 +y e] Nee'�,'JIYe 1 , K ] `j '' J \/ ADDITION r, $• „;se - UR.UN..OE AND UfR( EASEMENTS APE SHOYN THUS: (NOT TO swc) Q E,6� t d� „ <' a`•� \� 6 7 5 , 1 \ \ 11 I 6-'11 J 11S �yd \ \sal Lo- 9Ewe 3 R[, w YeM I,MFS, m1VAY5[ � !J $ I ., moaouM '.n' a 4 ` y�: \ \ 2 \ �% Ada ♦\ Vas 1 \ 10 \� •;' ; y . V 12 'Axe Aj V b o n xee•,�'m•[ �- T °P <°.�ir•'OO\ � dV .l �. � � � ° y po,•a � \; °"..p1' � SCALE IN FEEL a h em d' a / ^.`,� > ` >, r � w G•,. 4\ °_'"`_ ' I P a + °'� � �`1 �td>` �� � 4 /d � g•,` •f (a,• ,/�, \ ti,. \:: � `� �iCFy ' _ xesve'm ss..m - . - ,as ?+ � ,,t \ \*� � n �8' 1 2 \ �.;�.\ ♦ �� j� +. 5 \ '$xe9•b',YE� ., e o xe °•w•1x'[ $ Pn � •\ , W ' / •a3. �i. 4 \ \ a b _ - _im.m *•° r>°oe .- y \ ��' / '� t a. Q• �8 \ S, \o,; 557 I - • oam[s Vx wa.er I4 wp1 woxvm[ uaxwrot raxo �i - -r �.;. 7 -r ; �� r .,• \ \° )�\S,. 4 ,e,e / '' 1 3 ;� .�� / �J ��'? ) " 6d+ I ° s u / i'�io er uuxs[ nx a w to - G . 1 ' e[ M] xEx,. N e:mt9m• 60 ?n= I \\� 3 \ .e/ ��w �„• \ 7 \. P� 6 ,_ . 1 I$ 6 I \ $' / ��+5t : ?/ •r \ QL a;< w / •' °•. roa ME NR ms R. x. H 05Es m nes mwy MC xmM UxE a I 1_ �. '�i 8 +.°° �� �' SEC. C.,r 1. H4 .M xssuu[o U[ °E L - tlOD74 _ J I� 1 2 G. / / a a4 ;'. / ma y: J• 1 uss 1 ry IR z - -1 20 al w Z a I ' \\ i Y //• 1 ° /.- \ 6 ♦ _ a - m la" $ 2 L Je�ee- L.sl_ xsa /.r a'/ tiY �,' 12 / ^� 1 I °1 serw>ir ,ee.ao \.✓ . � / /� a.w_� -�- L °•- H¢ti,i'B,'il s L - x919'A-a _ J >em m 1Y ✓ , urx ud l z m ,fade r)rse -� r)dr0 -I r oe.:r -v . 5 § e >evroo• 7 - -- / -. r ei.a, - I �- iaZ 9 . � � • I Ill w L - 5>m'�Z"11 -J 8 1= - }1 �J1e73s'i , '`V Ym - w S 13 �1 �Q r- - I[Sao -. 18 ' I 17 : 16 1 1 5 1 3 a r m.R[ IY I j 3 taerxn'�rE- >J ^ L 19 �I h§ I ° Is 'v" 1 3 1 2 Q - sos .w —4 I I m a f A tm e - �Z �F� - -Lao J I )e_ieJ L)asoJ L Lem I w 1tl33oSL 1 5q 8w4 - e:.o, -J U. 1. 3 r - mar -- I I $ I Y �"tix xee•,s's, Y .xl.0 - �' p " d.7 h" ` P "Po WY,]'], V x.3, l 0 ayp u % -1 a ,♦ $ 75TH STREET N.E. s ° °' g e ° A�O� 'w rd6.911 - -I n ° �y x •JS]n v $ gb 10 Q.� 1 I G a T 6�0, 77 -- I r )�C1 r)TeE r7Tfia� r f y ""°° rte -' I )�0'1 )fm I S T ' ° r I J "F 11 11 I ° I 11 11 �I 11 11 I I �s6o 18 11 ' so " Lgeyle 7r[_ J m 11 a I I {� r -- —, ; I 1 1 3 1 1 ' EXHIBIT C -4 6 r J 4 5 6 7 8 � 9 Ig 10 ' Ig 1 1 I � "c�"m E 1 5 °I Ir ;I I- _�4 w r - �so:e 1^ $I I I� --�L -_!'L �L L- L_�L_� —1 �_ L _� , INSET D 61 ee. L Z�li _1 9 ��) ' -_ _ 9 �.am y eP unln Y 9 0 1 2 usua,8 0 Q m 569']5'67'E 177(1.66 ' n r -r I x I r- A r MCCOMBS FRANK ROOS ASSOCIATES, INC. ENGINEERS AND LAND SURVEYORS SHEET 5 OF 5 SHEETS Review No. 1 ENGINEERING REVIEW Hakanson Residential Subdivision Anderson for the City of Otsego Assoc., Inc. by Hakanson Anderson Associates, Inc. Submitted to: Honorable Mayor and City Council cc: Mike Robertson, Administrator Judy Hudson, City Clerk Dan Licht, City Planner Andy MacArthur, City Attorney John Jackels, OhW, LLC Dave Nash, P.E., McCombs Frank Roos Associates, Inc. Eric Seashore, P.E., McCombs Frank Roos Associates, Inc. Reviewed by: Ronald J. Wagner, P.E. Shane M. Nelson, P.E. Kenneth L. Beck, E.I.T. Date: January 6, 2005 Proposed Development: Arbor Creek 3rd Addition Street Location of Property: A portion of the NE 1/4 of the NE 1/4 of Section 25 and a portion of the W 1/2 of the NW 1/4 of Section 30. Applicant: John Jackels OhW, LLC 1875 Station Parkway Andover, MN 55304 (763) 755 -6554 Developer: OhW, LLC Owners of Record: OhW, LLC Purpose: Arbor Creek 3rd Addition is a proposed single family residential development in the City of Otsego, Wright County, Minnesota. Jurisdictional Agencies: City of Otsego, Wright County, Minnesota Department of (but not limited to) Health, Minnesota Department of Natural Resources, Minnesota Pollution Control Agency Permits Required: NPDES (but not limited to) \ \Ha01 \Shared Docs\ Municipal\ Aotsego22xx\2293 \ot2293RVW1.doc TABLE OF CONTENTS INFORMATION AVAILABLE FINAL PLAT CONSTRUCTION PLANS TITLE SHEET SITE PLAN SANITARY SEWER AND WATERMAIN . STREET PLAN AND PROFILE STORM SEWER DETAIL SHEETS STORM SEWER DESIGN GRADING PLAN HYDROLOGY OTHER CONSIDERATIONS SUMMARY AND /OR RECOMMENDATION \ \Ha01 \Shared Docs \MunicipaMotsego22xx \2293 \ot2293RVW1.doc INFORMATION AVAILABLE Site Development Plan for Arbor Creek 3 rd Addition, dated 11/30/04, by McCombs Frank Roos Associates, Inc. Grading Plan for Arbor Creek Phase 3, 11/30/04, by McCombs Frank Roos Associates, Inc. Final Plat for Arbor Creek 3rd Addition, printed 12/2/04, by McCombs Frank Roos Associates, Inc. Grading Plan for Arbor Creek Phase II, 10/20/04 revision, by McCombs Frank Roos Associates, Inc. Existing Conditions, 11/30/04, by McCombs Frank Roos Associates, Inc. Preliminary Site Plan of Arbor Creek, 2/11/02, by McCombs Frank Roos Associates, Inc. Preliminary Grading Plan of Arbor Creek, 2/11/02, by McCombs Frank Roos Associates, Inc. Preliminary Utility Plan of Arbor Creek, 2/11/02, by McCombs Frank Roos Associates, Inc. Preliminary Plat of Arbor Creek (no revision date) by McCombs Frank Roos Associates, Inc. Stormwater Computations, 11/30/04, by McCombs Frank Roos Associates, Inc. Subsurface Exploration and Geotechnical Engineering Analysis, 12/19/02, by STS Consultants, LTD. Wetland Delineation Report, 1/31/03, Kjolhaug Environmental Services Company, Inc. Arbor Creek Residential Subdivision Environmental Assessment Worksheet, 2/11/03, McCombs Frank Roos Associates, Inc. City of Otsego Engineering Manual, 2/27/01 Minnesota Rules, Chapter 4410 — EAW Requirement Trunk Stormwater Facilities Study for Portions of the Otsego Creek Watershed, February 2003 City of Otsego Zoning and Subdivision Ordinances, 10/14/02 National Wetland Inventory Map, 1991 Page 1 Mal)1 \Shared Docs\ Municipal\ Aotsego22xx\2293 \ot2293RVW1.doc FINAL PLAT 1. A minimum tangent of 100' is required between reverse curves. 2. The lots abutting 80 Street NE and Maciver Avenue NE shall have an extra 10' of depth overlaid by drainage & utility easement to allow room for screening through bufferyards (20' total drainage & utility easement). 3. 77 Street NE shall be realigned at the east plat line to avoid creating future double frontage lots. We have attached a sketch for the adjoining property to the east showing one possible alignment. Please revise. 4. Must verify pond limits of the existing pond located in Block 1 to determine proper easements. 5. Provide additional easement for ponding stormwater near the catchbasin in the rear yards of Block 7, Lots 1, 3, and 4. CONSTRUCTION PLANS TITLE SHEET (SHEET 1.01) 1. The sheet index shall be broken down into each sheet for the street and utilities sheets. SITE PLAN (SHEET 2.01 -2.02) 1. 76 Street NE shall be renamed Manchester Avenue NE from 75 Street to Marlowe Avenue. SANITARY SEWER AND WATERMAIN (SHEETS 3.01 -3.13) 1. The size and thickness of insulation shall be called out wherever insulation is required. (All sheets) 2. The centerline stationing shall be shown in the plan view. (All sheets) 3. The linear feet of watermain shall be labeled in the profile. (All sheets) 4. Sheet 3.02, an additional gate valve is required on 78 Street NE on the west leg at the intersection with Lasalle Avenue NE. 5. Sheet 3.02, the hydrant at approximate station 1 +75 should be moved to the west one lot to approximate station 2 +50 to provide hydrant coverage for Block 5, Lot 5. Page 2 \ \Ha01 \Shared Docs\ Municipal\ Aotsego22xx\2293 \ot2293RVW1.doc 6. Sheet 3.03, there appears to be a typo for the elevation of the service for Block 4, Lot 8. 7. Sheet 3.04, call out the cross and reducers at 78 Street NE and Mackenzie Avenue NE intersection. 8. Sheet 3.04, consider changing the grade and upsizing the storm sewer so that the watermain will not have to dive down at the Mackenzie Ave NE intersction. 9. Sheet 3.05, call out 8" plug for the sanitary sewer at the north end of Marlowe Avenue NE. 10. Sheet 3.06, the pipe lengths between MH 9 and MH 10 are different in the plan and the profile views. Please revise. 11. Sheet 3.07, sheet reference (C4.06) is incorrect. 12. Sheet 3.07, the construction method for the watermain and sanitary sewer construction at the creek crossing should be specified. 13. Sheet 3.08, the gate valve on 77 Street NE just west of the Mackenzie Ave NE intersection shall be moved to the south leg. 14. Sheet 3.08, it appears that the valves may be located within the curb line. Please realign the watermain such that all valve boxes will be located in the pavement. 15. Sheet 3.08, there appears to be a possible conflict between the storm sewer manhole and watermain between MH 45 and 46. Consider relocating the north storm sewer manhole to the south side of the sanitary sewer within the street, or verify the adequate horizontal separation is provided. 16. Sheet 3.09, the watermain shall be extended to the property line on the east end of 77 Street NE. 17. Sheet 3.09, the watermain has less than 5' of cover near MH 5, consider going under the storm sewer. 18. Sheet 3.09, sheet reference (C4.08) is incorrect. 19. Sheet 3.11, 76 Street NE shall be renamed Manchester Avenue NE from 75 Street NE to Marlowe Avenue NE. 20. Sheet 3.11, the pipe length and grade between MH 28 and MH 4 are incorrect. 21. Sheet 3.13, profile of proposed ground shall be shown. Stationing shall also be shown. Page 3 \ \Ha01 \Shared Docs \Municipal\Aotsego22xx \2293 \ot2293RVW1.doc 22. All sanitary sewer and forcemain manhole lids are now required to be sealed lids. 23. The sanitary sewer and water distribution is being reviewed for the ability to serve adjacent properties. Currently, there are no utilities shown to the property east of Block 1, Lot 16; north of Block 4, Lot 5; east of Block 3, Lot 1; or west of Block 2, Lot 1. Additional comments may be forthcoming. STORM SEWER (SHEETS 4.01 -4.10) 1. We recommend designing the storm sewer such that all of the pipe is within subgrade and not protruding into the class 3 aggregate base layer. Any storm sewer protruding into the class 3 aggregate base layer may require additional drain tile and P.A.B. drains. 2. Catch basins shall be located at end radius points and on lot lines wherever possible. Catchbasins that are not located at lot lines will require Neenah R -3501 TR/TL castings. 3. Add sheet references wherever applicable. 4. Sheet 4.01, it must be verified that FES F outlets into the existing pond. The pond must be surveyed and the limits shown on the plan. 5. Sheet 4.02, insulation is required between SS 12 and the watermain. 6. Sheet 4.02, the elevation of east invert of SS 7 appears to be incorrect. 7. Sheet 4.02, there is a typo in the sheet number. 8. Sheet 4.03, the 12" of required separation is not provided between the bottom of the base for SS 21 and the watermain. Insulation will be required for less than 3' of vertical separation. 9. We recommend relocating SS 35 such that is not located in the center of Block 9, Lot 5. r 10. Sheet 4.06, show pipe in the profile between SS 45A and SS 45. 11. Sheet 4.07, call out the length for FES I and the riprap class and quantity. 12. Sheet 4.07, the invert elevation for SS 82 appears to be a typo. 13. Sheet 4.07, the percent grade between SS 69 and SS 70A does not agree with the invert elevations. Page 4 \ \Ha01 \Shared Docs \MunicipaMotsego22xx \2293 \ot2293RVW1.doc 14. Sheet 4.09, the percent grade between SS 99 and SS 99A does not agree with the invert elevations. 15. Sheet 4.09, the watermain shown under SS 96 should be shown under SS 95. 12" of vertical separation must be provided with insulation at the crossing. 16. Sheet 4.09, insulation is required at the sanitary sewer crossing near SS 94. 17. Sheet 4.09, edit overtyping on profile elevations on the left side of the sheet. 18. Sheet 4.09, show watermain crossings in the profile near SS 94 and SS 98. Verify separation and insulation requirements are met. 19. Sheet 4.10, it appear that there may be a conflict with the watermain and SS 117, consider revising storm sewer alignment. Also, the watermain crossing shall be shown on the profile. 20. Sheet 4.10, show watermain crossing in the profile near SS 111 and SS 111A. Insulation is required for less than 3' of vertical separation. STREET PLAN & PROFILE (SHEETS 5.01 -5.13) 1. Horizontal curve information shall be shown on the plan. (All sheets) 2. Names of intersecting streets shall be shown on the plan. (All sheets) 3. Add sheet references at break lines. (All sheets) 4. Vertical curves shall be per Mn /DOT guidelines for a 30 mph design speed. (All sheets) 5. A sheet is needed for 79 Street NE plan and profile. A temporary cul -de -sac will be required on the east end of 79 Street NE. 6. Sheet 5.02, a temporary cul -de -sac and two type Ili barricades are needed at the east end of Lasalle Avenue NE. 7. Sheet 5.03, edit overtyping. 8. Sheet 5.04, a temporary cul -de -sac and two type III barricades are needed at the north end of Marlowe Avenue NE. 8. Sheet 5.07, 75 Street NE is incorrectly labeled in the profile. 9. Sheet 5.08, edit overtyping. Page 5 \ \HaOl \Shared Docs \MunicipalWotsego22xx \2293 \ot2293RVW1.doc 10. Sheet 5.09, a temporary cul -de -sac and two type Ill barricades will be required at the east end of 77 Street NE. 11. Sheet 5.11, 76 Street NE shall be renamed Manchester Avenue NE between 75 Street NE and Marlowe Avenue NE. 12. Sheet 5.11, edit overtyping. . 13. Sheet 5.12, 77 Street NE is incorrectly labeled as 78 Street NE in the profile. 14. Sheet 5.13, verify that the intersection of 78 Street NE and Marlowe Avenue NE drains after relocating the catchbasin to the end radius point. 15. Sheet 5.13, the cul -de -sacs are to have 1 % minimum drainage from the center of sac to the outer radii. DETAIL SHEETS (SHEETS 6.01 -6.03) 1. Add detail for pipe bedding. 2. Sheet 6.02, modify detail 311 to have a sealed lid with gasket. STORM SEWER DESIGN 1. The storm sewer design calculations have been received and are under review. Comments will be forthcoming. GRADING PLAN 1. Revise plan to depict earth berms (4' high min.) in bufferyard areas abutting 80 Street NE and Maciver Avenue NE. (21- 16- 7.D.3.b) 2. Water ponding north of 79 Street NE at approximate. station 3 +00 is a concern. Additional storm drainage may be required. 3. Otsego Creek's HWL is higher than Pond 3'.s HWL, please add "Creek 100 -YR 937.1 4. 1.5' of freeboard is required from the 100 -year high water elevation or emergency overflow elevation to the lowest opening. This is not provided for Block 9, Lots 39 and 40. 5. The rear yard swale on block 11 creates erosion concerns because of its length. We recommend adding storm sewer in this location. Page 6 \ \Ha01 \Shared Docs \MunicipalWotsego22xx \2293 \ot2293RVW1.doc 6. Lot lines and grading for adjoining projects shall be shown. 7. Call out an emergency overflow for Block 7 lots 1-4. 8. Strom drain inlet protection is required. Please show on plan. 9. Outlot E is incorrectly labeled as outlot D. 10. Please edit the overtyping on the elevations on Mackenzie Avenue NE. 11. The soil boring locations shall be shown on the plan. 12. The normal, 2, 10, and 100 year flood elevations are required for all sedimentation basins. 13. The grading shall be revised, for the rear yard of Block 9, Lot 30 to drain the low area in the northeast corner of the lot, providing that it is not a wetland. 14. Call out an emergency overflow shall be added on Marlowe Avenue NE at approximate station 9 +00. HYDROLOGY 1. The hydrology report has been received and is under review. Comments will be forthcoming. OTHER CONSIDERATIONS 1. No comments. SUMMARY AND/OR RECOMMENDATION We recommend approval contingent upon the above comments being addressed. Page 7 \ \Ha01 \Shared Docs \MunicipalWotsego22xx \2293 \ot2293RVW1.doc VrE_ M 7_2 MEMO Date: January 6, 2005 To: Mayor & Council From: City Administrator Mike Robertson Re: Sewer Capacity Staff has enclosed a variety of information related to sewer capacity on both the east and west sides of town. The reason this issue has come up is that enough residential lots have been platted on the west side of town that the sewer capacity reserved for residential development has been used up. This requires action from the Council to either expand capacity or to restrict further plat applications. We have enclosed a memo from City Planner Dan Licht which lays out the history of the City's sewer systems, discusses the current policies, and describes 6 options for responding to the problem. We have also enclosed a letter from Farr Development which describes their reasons why they feel the Council should quickly expand the sewer system. We have also enclosed a copy of the relevant pages of a standard development agreement which address the provision of sewer and water. NORTHWEST ASSOCIATED CONSULTANTS, INC. 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners @nacplanning.com MEMORANDUM TO: Otsego Mayor and City Council FROM: Daniel Licht, AICP DATE: 5 January 2005 RE: Otsego —Sewer Plan; Capacity Issues NAC FILE: 176.08 BACKGROUND City staff has been meeting with various developers of land in the east sanitary sewer district in anticipation of additional capacity becoming available. Additionally, City staff has been providing the City Council with updates as to the on -going development in the west sewer district and allocation of available capacity. Given that two new City Council members will be seated at the meeting on 10 January 2004, City Staff thought it would be advisable to put together a summary of relevant information of additional discussion and review. Exhibits: A. East Sewer District Summary B. West Sewer District Summary C. Proposed Resolution re: Preliminary/Final Plats ANALYSIS Sewer History. One of the primary objectives for incorporation of the City of Otsego was to provide for the staging of sanitary sewer services. The need for sanitary sewer service was the potential for significant environmental harm should mass failure of existing septic systems occur in the one -acre lot residential subdivisions platted beginning in the 1960s. Initial plans for providing sanitary sewer service to the City focused on shared services with the City of Elk River. The City of Elk River subsequently determined that it would not enter into agreements with Otsego on shared sewer utilities. That decision led Otsego'to pursue construction of a new waste water treatment plant with the City of Dayton and Frankfort Township. Ultimately, the City of Dayton determined that it only needed very limited capacity (acquired through a later agreement with Otsego) and Frankfort Township was dissolved through annexation to Otsego, St. Michael and Albertville. The Otsego City Council resolved to pursue on its own construction of a waste water treatment plant, collection system and water system and directed preparation of a Comprehensive Plan update and sewer and water facilities plans in 1996. Adopted Policy. The Comprehensive Plan updated adopted in 1998 established policies for provision of sanitary sewer and water utilities to the TH 101 corridor on the east side of the City, as well as the boundaries of the initial sewer district. These policies were basically carried over in 2001 when the City Council established a sewer district and construction of a west waste water treatment plant, collection system and water system. The overriding goal of these policies is that provision of sanitary sewer and water utilities was to be fully funded by new development and that the pace of new development not overwhelm the City's ability to deliver supporting services (i.e., major streets, administration, parks, public works, etc). Together, these policies allow the City to anticipate payment of Sewer Access Charges (SAC) and Water Access Charges (WAC) necessary to pay for construction of the waste water treatment plants, water towers, pump houses and trunk pipes. Available municipal sanitary sewer and water service shall be provided only to lands within the immediate urban service area on a first come, first serve basis. Thirty (30) percent of available waste water treatment plant capacity within each sewer service district shall be reserved for commercial and industrial development. Risk of payment for non -users of sanitary sewer shall be reduced through utility phasing, the identification of potential water revenue sources, and the establishment of realistic growth expectations. Preliminary plat approval by the City shall not guarantee access to sanitary sewer service. The City shall only guarantee such service to approved final plats with signed contracts which assure the City of timely development. The City's control and management of the development process occurs during subdivision review. Preliminary plats are reviewed on a design and service capacity basis for conformance with the City's Comprehensive Plan, Zoning Ordinance, Subdivision Ordinance and Engineering Manual. Approval of a preliminary plat generally entitles a developer to a land use, subdivision design and determination that adequate public infrastructure exists (or will ultimately exist within a reasonable period of time) to support the project. Otsego specifically reserves the right to allocate sanitary sewer capacity at the time of final plat approval to avoid a large scale, multiple phase preliminary plat from tying up the limited sewer capacity that is available. Such an occurrence could result in a lack of revenue to meet financing obligations for the utilities that the City pays for up -front through bonds. 2 A final plat approval reflects review and approval of the detailed documentation demonstrating compliance with the City's ordinance requirements. The final approval also sets forth reasonable conditions that must be accomplished prior to recording of the Plat, including execution of a development contract which includes agreement to conditions of approval, as well as agreement to construct certain utilities, streets, water and sanitary sewer services. The development contract also includes specific provisions which can differ from City to City based upon specific City policy considerations such as when allocation of sanitary sewer services will occur. After a final plat has been approved and all conditions of approval have been met, including execution of the development contract and posting of required security, the lots become lots of record eligible for any use allowed under the applicable zoning district. The City has very limited ability beyond this point (i.e. refusal or revocation of building permits, or refusal of certificates of occupancy if specific conditions of approval or the development contract have not been met, or default has occurred) to manage the rate or type of development within areas of an approved final plat. The policy regarding allocation of sewer capacity at time of final plat approval has been included as a condition of approval in all preliminary plats and in all development contracts executed and agreed to in both sewer districts. A secondary goal of sanitary sewer and water utilities is to provide opportunities for commercial and industrial development for diversification of the City's tax base, local job creation and provision of services to residents. Otsego is an emerging commercial and industrial market, with new residential development adding to this potential. However, the demand for residential development has been much greater than that for commercial and industrial uses over the last six years. To ensure that some sanitary sewer capacity is available when businesses begin seeking locations in the City, a reserve of 30 percent of the capacity in each sewer district was set aside for commercial and industrial uses. The 2004 Comprehensive Plan update reaffirms and continues these policies and the underlining principle of to encourage growth at a reasonable pace. The 2004 Comprehensive Plan update does define a target of an average of 400 -600 new home building permits per year within both sewer districts to be accommodated through phased development. East Sewer District. The east sanitary sewer district is currently served by a 400,000 gallon per day (gpd.) waste water treatment plant. The current capacity of the east WWTP is the second phase of the plant, which was originally constructed with a capacity of 200,000gpd. The capacity within the east WWTP has been fully allocated as shown on Exhibit A. The City Council has ordered preparation of plans and specifications to expand to the third phase of the east WWTP, to a capacity of 1.0 million gpd. The expansion of the east WWTP would make available approximately 1,500 RECs for additional residential uses under the current policies of the Comprehensive Plan. An additional 500,O00gpd. of capacity can be added to the east WWTP before 2009 under the approved MPCA permit. 3 The plans and specifications for expansion of the east treatment plant have been completed and the project is out for bid. The bids are due at the beginning of February and are to be discussed at the 14 February 2005 City Council meeting. The City Engineer has also been authorized to prepare necessary facilities plans for the sewer collection system and water systems. City Staff is recommending that the City Council pass a resolution stating that any application for a subdivision requiring sanitary sewer within the east sewer district be deemed premature for preliminary plats submitted prior to awarding of contracts and completion of the required facilities plan by the City Engineer and for final plats submitted prior to substantial completion of construction. West Sewer District. Construction is substantially complete for a 600,000 gpd. waste water treatment plant to serve the west sanitary sewer district approved by the City Council in 2001. The west WWTP has capacity to serve approximately 60 percent of the land area included in the west sewer district. The 600,000 gpd. of treatment capacity translates to 2,400 Residential Equivalent Connections (REC) based on the assumption that one single family home generates 250 gpd. of waste water per day. Therefore, the available capacity within the west waste water treatment plant for residential uses is 70 percent of 2,400 RECs, setting aside 30 percent of the capacity for commercial and industrial uses: 600,000gpd. / 250 gpd. * 70% = 1,680 RECs for residential uses 600,000gpd. / 250 gpd. * 30% = 720 RECs for commercial /industrial uses The City has allowed processing of preliminary and final plat applications concurrently with construction of the west VW TP. To date, approximately 3,300 residential dwellings have been preliminary platted and 1,458 residential dwellings have been final platted between nine developments. Applications are pending for final plats with an additional 247 residential dwellings, which would bring the total number of final platted lots to 1,705 or just over the capacity designated for residential use. Approximately 1,600 residential dwelling units remain preliminary approved, but not final platted. It must be noted that although the number of final platted lots is equal to available capacity for residential use, very few homes have actually been constructed and are not generating enough flow to the plant to actually begin treatment. City staff expects that build -out of the approved final plats is likely to occur over the next one to two years. No final plats for commercial or industrial uses have been approved. The Kittredge Crossings preliminary plat includes approximately 27 acres of various commercial and industrial uses. There has also been preliminary interest in development of 40 acres at the northwest corner of CSAH 19 and 70 Street, 56 acres at the northeast corner of CSAH 19 and 70 Street and 27 acres at the corner of CSAH 37 and Maclver Avenue. The City Engineer estimates that commercial and industrial uses demand 4.0 RECs of sewer capacity per acre. As such, there may be near -term demand for as much as 600 RECs for these 150 acres of land to service commercial and industrial uses. Additional land is also designated for industrial use within the first phase development area of the west sewer district. 4 i The City Council must consider if a response to the sewer capacity issues in the west sewer district is required. The policy limiting available residential capacity is already adopted and developers have been previously made fully aware of its existence Other options that the City Council may consider are outlined below. We would recommend that any significant departure from current policy should involve consultation of the Planning Commission. Reaffirm current policy that residential capacity shall be limited to not more than 1,680 dwelling units based on 600,000gpd capacity of the west WWTP. 2. Allow limited use of designated commercial /industrial capacity for residential developments meeting other City objectives. Certain developers advanced trunk sanitary sewer and water utilities that resulted in developments ending discussions about detachment/annexation of land from the City and upgrading of streets necessary to access new developments in the west sewer district. The City Council may recognize these contributions to the City's broader goals by allowing limited use of the commercial /industrial reserve for them to continue final plats and recouping their up -front investments. 3. Allow use of designated commercial /industrial capacity for any use (including residential uses) on a first come, first serve basis. The 720 RECs reserved for commercial and industrial use would likely be quickly absorbed by residential development if given the opportunity. The opportunity cost of the capacity being absorbed is that commercial developments at any of the four areas where there has been preliminary interest would be precluded. 'Given the expanding market potential of the west sewer district area, we think it is unadvisable to allow all of the 720 RECs to be used for residential purposes. 4. Order the application process to MPCA for effluent limits, modification of the NPDES permit and preparation of an EAW to expand the west WWTP to 1.2 million gpd. This step does not commit the City to construction of the expanded WWTP, but starts the process to have potential additional capacity on -line by the end of 2006 based on the following schedule prepared by Bonestroo: Task Date Determine capacity of the upgrade and seek effluent limits from MPCA January 2005 Start EAW and plans & specs February 2005 Complete EAW and submit to MPCA March 2005 MPCA completes public review of EAW May 2005 Complete plans & specs July 2005 Advertise for bids August 2005 Draft permit on public notice August 2005 Open bids, award contract, and receive final permit September 2005 Start construction October 2005 Substantial completion December 2006 Final completion & project close -out May 2007 5. Order Phase 2 plans and specification to expand west WWTP to 1.2 million gpd. making available an additional 1,680 RECs for residential use. This option would allow the City to build out existing preliminary platted lots. The City would not be 5 required to approve additional preliminary plats until a phase 3 expansion if so desired. Bonestroo estimates that they would need to start on plans and specifications in February 2005 to meet a schedule if additional capacity is to be available by the end of 2006. 6. Petition MPCA to allow a reduction in REC standard. The City Engineer has said that observed waste water flows at east WWTP that have been less than 250 gpd. /dwelling due to low -flow plumbing fixtures and social factors such as two - career households. Decreasing the REC standard would have the effect of adding additional capacity to both waste water treatment plants without constructing additional facilities. CONCLUSION Efforts are progressing to bring additional waste water treatment capacity on line in the east sewer district by early 2006. In response to the current capacity situation in the west sewer district, clear direction is required from the City Council as to potential expansion of the west WWTP and handling of future preliminary and final plat applications until additional sanitary sewer capacity may be available. These issues are to be discussed by the City Council at their meeting on 10 January 2005. C. Mike Robertson, City Administrator Judy Hudson, City Clerk/Zoning Administrator Andy MacArthur, City Attorney Ron Wagner, City Engineer Ted Field, Bonestroo Rosene Anderlik & Associates Lucinda Gardner, Farr Development Corp. John Jackels, Emmerich Development Corp. Tom Bakritges, D.R. Horton, Inc. David Sebold, Insignia Development, Inc. Scott Dahlke, Quality Site Design, Inc. C6l TABLE 1 FINAL PLATTED LOTS WITHIN SANITARY SEWER SERVICE AREA OR PRE - EXISTING HOMES OR COMMERCIAL BUILDINGS WHICH CONNECTED TO SEWER SYSTEM DEVELOPMENT NAME RES. RATES I/C REC'S TOTAL REC'S DESCRIPTION /STATUS Crimson Pond Phase I 41 0 41 Final Platted C rimson Pond Phase 1B 33 0 33 Final Platted C rimson Pond 3 nd 51 0 51 Final Platted C rimson Pond 4 43 0 43 Final Platted P rairie Creek 1" 45 0 45 Final Platted Pr airie Creek 2 nd 45 0 45 Final Platted P rairie Creek 3` 39 0 39 Final Platted Pr airie Creek 4 d ' 27 0 27 Final Platted P rairie Creek 5`' 35 0 35 Final Platted P rairie Creek 6`" 21 0 21 Final Platted P heasant Ride 1" 45 0 45 Final Platted P heasant Ridge 2 nd 42 0 42 Final Platted P heasant Ride 3` 46 0 46 Final Platted P heasant Ridge 4 d ' 45 0 45 Final Platted P heasant Ride 5 d ' 62 0 62 Final Platted P heasant Ride 6 d ' 36 0. 36 Final Platted P heasant Ridge 7 d ' 5 0 5 Final Platted P heasant Ride 8 d ' 37 1 0 37 Final Platted Stone Gate Estates 1 5 ` 62 0 62 Final Platted Stone Gate Estates 2 °d 104 0 104 Final Platted Ri verplace 33 0 33 Final Platted R iver's Pointe 1 9 ` 32 0 32 Final Platted Ri ver's Pointe 2 °d 31 0 31 Final Platted Ri ver's Pointe 3` 25 0 25 Final Platted Th e Pointe 1 5 ` 184 0 184 Final Platted T he Pointe 2 nd 170 0 170 Final Platted Clem Darkenwald 1 0 1 Pre-Existing Home C hrist Lutheran Church 0 7.4 7.4 Pre-Existing Buildin ]k River Bank 0 1.5 1.5 re- Existing Building T om Thumb 0 1.2 1.2 Pre-Existing Buildin G odfathers 0 6.5 6.5 Pre-Existing Buildin lackwoods Resteraunt 0 16.22 16.22 New Commercial Buildin versview Bank 0 6.09 6.09 New Commercial Buildin E mbers 0 5.44 5.44 New Commercial Buildin C onvenience Store 0 3.77 3.77 New Commercial Buildin M arket Place West 0 13.94 13.94 New Commercial Building Sheils Professional Building 0 3.47 3.47 New Commercial Buildin M arket Place West Phase H 0 4.13 4.13 New Commercial Buildin H oliday Inn & Water Park 0 62.5 62.5 • ew Commercial Buildin R anch Acres 2 0 2 Final Platted Res. = Residential I/C = Industrial/Commercial /o of Existing Sanitary Sewer Service 1272.0 132.16 1404.16 3 5.84 RFC's remaining (2.49 %) 1440 Total RECS Available 88.33% 9.18% 97.51% 90.59% 9.41% 100.00% CADocuments and SeHings\Daniel Licht\Local Settings \Temporary Intemet EXHIBIT A -1 Files \Content.l E5\5F7JH PKA \ot614ppl.doc TABLE 2 PRELINIINARY PLATTED LOTS WITHIN SANITARY SEWER SERVICE AREA OR PROPERTIES ASSESSED FOR SEWER DEVELOPMENT NAME RES. REC'S I/C REC'S TOTAL DESCRIPTION /STATUS REC'S Ri ver's Pointe Outlots S Homes 12 0 12 Preliminary Platted olles Property 0 160* 160* Assessed for Sewer LC -MRD Addition Mary Dare's Property 0 67* 67* Assessed for Sewer Ran ch Acres Slabtown) 7 0 7 Slowly built out over several years T oday Property 0 56* 56* Final Platted — Assessed for Sewer O tsego Waterfront East 0 96* 96* Final Platted — Assessed for Sewer * Estimated REC's 19 379* 398* pEc Res. = Residential I/C = Industrial /Commercial CADocuments and Settings\Daniel Licht\Local Settings \Temporary Internet EXHIBIT A-2 Files\ Content .IE5\5F7JHPKA \ot614ppl.doc Total Development REC's Western Otsego 1/5/2005 Development REC's Arbor Creek 97 Arbor Creek 2nd Add. 175 Arbor Creek 3rd Add. 209 Arbor Place 11 Duerr Creek 75 Kittredge Crossings 2nd Add. 22 Kittredge Crossings 3rd Add. 20 Kittredge Crossings 4th Add. 20 Kittredge Crossings 5th & 6th 122 Martin Farms 235 Otsego Preserve 42 Otsego Preserve 2nd Add. 65 Otsego Preserve 3rd Add. 38 Pleasant Creek Farms 2nd Add. 66 Pleasant Creek Farms 3rd Add. 33 Remington Coves 113 Sunray Farms 89 Sunray Farms 2nd Add. 71 Zimmer Farms 43 Zimmer Farms 2nd Add. 3 Zimmer Farms 3rd Add. 50 Zimmer Farms 4th Add. 106 600,000 gpd / 250 gal /REC = 2400 Available RECS Remaining RECS 1705 70% Res. 30% C. & I. 2400 1680 720 695 -25 720 Total RECSSheet1 EXHIBIT 8 RESOLUTION NO: 2005 -03 CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA RESOLUTION CONCERNING SANITARY SEWER CAPACITY FOR RESIDENTIAL DEVELOPMENT WHEREAS, on 22 November 2004 the City adopted an updated comprehensive plan; and WHEREAS, the Comprehensive Plan establishes east and west sanitary sewer service districts where sanitary sewer service may be made available for development; and, WHEREAS, the Comprehensive Plan states that thirty (30) percent of available waste water treatment capacity in each sanitary sewer service district shall be reserved for commercial or industrial land uses; and, WHEREAS, the Comprehensive Plan states that waste water treatment capacity shall only be allocated to approved final plats with executed development contracts; and, WHEREAS, the City has constructed a waste water treatment plant to service the east sanitary sewer service district with a capacity of 400,000 gpd., of which 40,000 gpd has been sold to the City of Dayton, reducing the available capacity for use by development in the City to 360,000 gpd.; and, WHEREAS, the City has constructed a waste water treatment plant to service the west sanitary sewer service district with a capacity of 600,000 gpd.; and, WHEREAS, the City estimates waste water flow and allocates sanitary sewer capacity for residential uses at 250 gpd. per dwelling unit; and, WHEREAS, based upon the constructed capacity of the east wastewater treatment plant minus treatment capacity sold to the City of Dayton and estimated waste flows for residential dwellings, final plats for not more than 1,008 dwelling units may be approved; and, WHEREAS, based upon the constructed capacity of the west wastewater treatment plant and estimated waste flows for residential dwellings, final plats for not more than 1,680 dwelling units may be approved; and, EXHIBIT C WHEREAS, the City has approved final plats for 1,272 dwelling units within the east sanitary sewer service district as of this date; and, WHEREAS, the City has approved final plats for 1,458 dwelling units within the west sanitary sewer service district as of this date. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Otsego, Minnesota: 1. Preliminary plat applications for residential development within the east sanitary sewer district will not be considered until such time as a contract is executed for construction of an expanded facility that would allow for additional capacity to service residential uses in accordance with the policies of the Comprehensive Plan and City Council approval of the City Engineer's updated collection and potable water facility plans. If any such development request is received prior to this action, the application will be deemed premature. 2. Final plat applications for residential development within the east sanitary sewer district will not be considered until such time as construction of an expanded facility is substantially complete and additional capacity is functionally available. If any such development request is received prior to this action, the application will be deemed premature. 3. Preliminary plat applications for residential development within the west sanitary sewer district will not be considered until such time as a contract is executed for construction of an expanded facility that would allow for additional capacity to service residential uses in accordance with the policies of the Comprehensive Plan. If any such development request is received prior to this action, the application will be deemed premature. 4. Final plat applications for residential development within the west sanitary sewer district will not be considered until such time as construction of an expanded facility is substantially complete and additional capacity is functionally available. If any such development request is received prior to this action, the application will be deemed premature. 5. This resolution shall not apply to complete applications for final plat approval received prior its date of adoption N ADOPTED this 10 day of January, 2005, by the City Council of the City of Otsego, Minnesota. '� CITY OF OTSEGO Larry Fournier, Mayor ATTEST: Judy Hudson, City Clerk/Zoning Administrator 3 •� ®' D A. Farr _ EVEL0PMENT. ■ CORPORATION January 4, 2005 VIA Hand Delivery Mike Robertson City Administrator City of Otsego MN RE: Sewer Capacity Dear Mike: Please find my .enclosed epistle regarding sewer capacity-.. I am not attempting to make life difficult, but am currently of the opinion that to remove our ability to proceed as agreed will be devastating: I honestly feel the City will be harmed by essentially aborting Kittredge Crossings and all that it offers: My company and all who relied on me will also be harmed. Pleasant Creek is a matter of doing what is right. Please send the enclosed packages -to the council members,' and a copy of Kittredge Crossing's ' illustrative , site plan. I have taken the liberty of sending a copy of this information to Mayor Fournier. . Regards, (--� L__, Darrel 0 o� �l IF Hamel Road Hamel, Minnesota 55 340 ph. 763.553.9972 fax. 763.553.9983 IWRI Da rrel 'A. Farr EVEL0P MEN T CORPORATION January 4, 2005 W West Area Sanitary Sewer Dear Honorable Mayor Fournier and City Council: It would.appear that the memo prepared for the Mayor and Council by the city planner regarding the above is in conflict with agreements and action made and taken by the City and relied upon, by us as a developer. Based on our interpretation of the, planner's memo, we are 533 dwelling. units short of that provided, bythe agreements, actions, representations, assurances and understandings made between us and the City.' I fear "there are. misunderstandings that left: - unchecked , may lead to further misunderstandings and actions that will become more difficult to correct at a later date. We will clarify"our understanding of what has happened and what we hope will happen, consistent with our commitments and agreements. While this letter will not cite page and verse of each issue and document pointed out, we are confident in the correctness of our understanding and the documentation underlying it. We are of the belief that with all that is going on in Otsego (all of it positive and capable of consuming much of the Council's and all of the. staff's time), the understandings and agreements we previously reached have possibly been "lost in the shuffle ". We are aware that a meeting has been scheduled at City Hall with developers, City staff, and one or two elected officials to discuss the staff memo mentioned above. We are not convinced that what we have to offer below would contribute to the discussion in what we believe will be an "emotionally charged" atmosphere. The issues rn we raise here are peculiar to our situation and do not relate to conces that other developers may have with - restrictions on further .development in Otsego. These issues fall into two categories, technical and political. All of them clearly show the' path that. has been followed by the City and us, and the reliance we have had on the City's actions. 1. Hakanson Anderson prepared the Western area feasibility study for the City utilizing. 180,000 g.p.d. of sewer capacity for land West of #19. 2.' By resolution, the City reserved 180,000 g.p.d. of sewer capacity to land West of #19. (Copy of the resolution is attached). 172 Hamel Road Hamel, Minnesota 55340 ph. 763.553.9972 fax. 763.553.9983 3.. We relied on this allocation, contained in the Resolution adopted by the City Council, in implementing the plan for Kittredge Crossings. a. Of the 180,000, g.p.d. allocated to land West of #1 70% (the residential allocation, with 30% being the commercial allocation) equals precisely the number of dwelling units recommended -and approved for the 1 St Phase of Kittredge Crossings. The reserved 180,000 g.p.d X 70% = 126,000 g.,p.d . divided by 250 g.p.d. per residence = 504 dwelling units; the number recommended and approved. We were' ,specifically told on February 3, 2003 at the City Hall that this capacity was dedicated to projects west of County Road .19 . and would not 'be "re- allocated" to projects east of County Road 19. b. With the City and us relying on this allocation by resolution, 'we received a final plat, signed a Developers Agreement, paid fees, posted sureties, and constructed the sewer; water, streets, and storm sewer, for the improvement of 504 dwelling units. (See attachment of costs paid). c. We further placed.'sewer, water, streets, and ' storm sewer .for 27 acres of , commercial land pursuant to our agreements and paid the fees associated with this construction to the City: d. Nearly all of the lots in Phase I have been sold to builders and homes are - under "construction. _4. The approval and development of Kittredge Crossings- brought the sewer one mile .closer to nearly. all of the commercial land West of #19 in the West sewer district including the so called "Golden Triangle "'area. This improvement was funded by us at'a cost of $780,000. ($450,000 •was' paid to the, City and $330,000 to our contractor). - a. . As mentioned earlier,* have developed 27 acres 'of commercial land as part of Kittredge Crossings Phase 1: b. We are now 'ready to build a series of office warehouse, retail warehouse, office showroom and retail space on, this, land. L We expect to submit for final site approval in January of 2005 and apply for building permits in May =June of 2005. . ii. The estimated value of this construction is .approximately $12,000,000, which is about 25% of.the developed. commercial land in Phase I. Extrapolating . from -there would indicate •$40,000,000 to $50,000,000 of commercial development in Phase I of Kittredge Crossings when complete. Phases 1I, III, and IV of commercial development contain more than three times the land in Phase I. 5. With development of Kittredge Crossings Phase I and Pleasant Creek Farms, we have and are paying $954,,135 toward off site streets like McIver-and 70 6. Kittredge Crossings, by improving its land with sewer and other. infrastructure, insulated 3 /4 of a mile of common border with, -, . Albertville from potential annexation. The value of Phase I alone when complete .is $1.75,000,000. The value of all of Kittredge Crossings is expected to' be $450 - $5.50,000,000. a. It is almost a certainty that bringing the sewer-to this area, the balance of Otsego land in the West bordered by Albertville, including the Golden Triangle, is also protected from annexation. T. Pleasant Creek Farms on the East side of #19 contained the land upon which the sewer plant and its expansion are expected to take place to serve the Western area of Otsego. While five or so acres would have been adequate, the City correctly requested 20 acres of land. a. ' Thin land, appraised and proven by the market to be worth at least $1,000,000 was given to the City at no cost, by Farr. i. We were assured by the City that they would - make the former Lloyd Beaudry land, of which Pleasant Creek Farms is a part, a priority in the allocation of sewer and that we would be first to get capacity. ii. Based" upon this assurance, we platted 315 lots which we sold to U.S. Homes and upon which construction is taking place. .8. We -have, previously offered .to make a $750,000 contribution to a community center for Otsego in Kittredge Crossings. 9. To allocate sewer capacity in a way that would negate our previous agreements would cause Kittredge Crossings success to be jeopardized if not destroyed: i. We could not afford to. do the commercial development planned for 2005 and beyond because we. could not close and deliver residential lots to builders. ii. The negative perception by the marketplace of a slow, moving neighborhood would - be difficult if not impossible to overcome. iii. The costs to pay the interest and other costs associated with improved lots and commercial land upon which we could not build would be significant. 'We estimate these costs at $2,500,000 for 2005 alone. In this regard, we believe we would have the only improved lots with sewer: 'water. streets, and storm sewer in the iv. We would expect to be sued. by U.S" Homes, Donnay Homes, Kingman'Construction, our bank, and probably builders for the loss incurred- because of their /our reliance on the above representations by the City. . In summary:' 1. We "have been in the initiation of the Western -sewer area. 2. We have been promised resolution the sewer capacity-we so desperately need. 3 We have complied with all of the conditions. 4. The 'sewer capacity allocated to the area east of #1,9 would permit construction of 700 or more dwelling units per :year until a sewer expansion ,can "come on line ". It is highly. unlikely that the market would require this volume. _ 5: Kittredge Crossings cannot proceed as the walkable community that so excited the City and our company containing homes, recreation, home town environment and places to work. 6. We-.have given to the City $1,000,000 of land for the benefit of the West sewer area. 7. We have offered a $750,000 contribution to the development of an Otsego Community Center in Kittredge Crossings. 8. We have insulated most of the Western area commercial land from potential annexation." 9. We brought the sewer to most of the Western area commercial land. 10. We have been reasonable, honest and straight forward in all of our discussions, dealings and promises to Otsego. The benefits to Otsego of our developments far outweigh the benefits supplied by the usual suburban multi/single family developments proposed east of # 19. 1. For instance: Financial gain to the school, city and county through commercial property taxes, employment, and fewer public services per .capita required - because of the land uses and concentration of facilities. In conclusion, we take . our commitments seriously and have. done so in over 40 communities over a period of 40 years. In doing so, cities all over Minnesota sell G.O. bonds, and have since 1996,.to have us develop, build and operate senior communities on their behalf. We are pLoud of our reputation.. I persoriall'y believe based on my experience with persons' associated with the City of Otsego, that reason will prevail, memories will be re- kindled and what has been agreed to between us will turn out to be the best result for the citizens of Otsego. You "stuck to your guns" on the East' side and loo. k at the benefits the residents of Otsego are reaping in the . way of a real community with commercial opportunities, not a hurriedly - done "bedroom community" Please let myself or Lucinda Gardner" know if there is anything further you would like in the form of documentation or discussion.' Thank you. 'Sincerely, EXHIBIT REGARDING FINANCIAL RAMIFICATION OF SEWER ISSUE Loss of capacity on Kittredge Crossings estimated per year at $2,500,000.00 Loss of capacity on Pleasant Creek Farms estimated per year at $1,300,000.00 Potential annual loss (P-V- of income stream) $3,800,000.00 Fees paid to the City: Kittredge Crossings: $1,720,000.00 Pleasant Creek Farms: $ 950,000.00 Total fees paid to date: $2,625,000.00 Construction work by City (sewer extension)$ 450,000.00 Construction costs: Kittredge. Crossings: $6,980,000.00 Pleasant Creek Farms: . $1,875,000.00 Construction in place: $8,855,000.00 NOTES: I. These costs are exclusive of general and administrative costs generally equal to 5 -7% of value. 2. These costs do not include land costs. betleb ms `s 1 43leeltma City Outlots I, J and P; and (iv) record the Plat with the Wright County Recorder or Registrar of Titles within one hundred (100) days after the date hereof. Right to Proceed. Except as otherwise provided in Section 8 of this Agreement, Developer may not proceed with any development of any Outlot and 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 on any Outlot until final plats have been approved for such Outlot. Notwithstanding the above, City may, at its discretion allow limited preliminary site grading or other work to proceed subject to a separate written agreement with the City setting forth the specific work allowed as well as posting of adequate security by Developer to ensure completion of any work allowed. The City will require a Developer's Agreement, security, payment of applicable fees and escrow in a form and amount reasonably acceptable to City and Developer prior to its approval of development of any Outlot. Sanitary Sewer Service Allocation. Approval of the Plat does not guarantee sanitary sewer service to the Property. Approval of final plats (and meeting all required conditions of approval) on each Outlot will trigger allocation of sanitary sewer service to the Outlot final platted. 5. Conveyance of Outlots-I, J and P to City. Outlots 1, J and P have been identified as sites for park development. On or before October 17, 2003, Developer shall convey fee title to such Outlots by warranty deed to the City to meet a portion of the City's park dedication requirements for the Plat. Developer shall pay the City's re mainin g park and trail dedication fees in lieu of land dedication on a pro- rated basis for each Outlot at the time it is final platted at the applicable rate (after giving effect to the credits for the contribution of Outlots I, J and P) at the time of final plat for such Outlot. 6. Right of Entry. Upon execution of this Agreement, Developer grants to the City, its agents, employees, officers and contractors an irrevocable right of entry to enter onto the Property to test and inspect, and, in the event of default by Developer hereunder and for so long as such default continues, to undertake any and all work necessary to complete construction of public improvements within the Property. 7. Fees Reserved. All applicable fees imposed by the City upon a final plat are specifically reserved to subsequent agreements, except for that portion of Park dedication requirements satisfied by the land conveyances required under this Agreement. Said fees include, but are not limited to the fees and expenses set forth on Exhibit B attached hereto. 8. Escrow. The Developer shall pay a fee for consulting engineering administration. City engineering administration will include consultation with Developer and its engineer on status or problems regarding the project, monitoring during the 2 , dtility Plan. A utility plan has been submitted for the proposed development and is subject to review and approval of the City Engineer. Provision of sanitary sewer service to the subject site will require extension of trunk service lines over one -half mile from the waste water treatment plant. The applicant has petitioned for this service extension and the City Council has authorized the City Engineer to proceed with a feasibility report. The applicant will be responsible for the costs associated with extending the trunk sewer lines to the proposed development, subject to a limited reimbursement agreement should other potentially benefiting properties connect. Such an agreement is necessary to conform with the City's policies that "users pay" policy and of not requiring connection through assessment for properties not requesting service. _J� Development Contract. The applicant will be required to enter into a development contract upon approval of a final plat following approval of the present applications. One of the conditions of the Comprehensive Plan amendment was that specific provisions for staging development of residential elements of the project in relation to commercial or industrial uses are to be incorporated as part of subsequent zoning applications. City staff has discussed limiting the amount of residential development to 70 percent of. the sanitary sewer capacity allocated to this service district as part of the facility plan. This approach would be consistent with the broader application of the City's growth management policies for lands within the sanitary sewer service districts. The feasibility report allocates 180,000 gpd. of capacity for the area west of CSAH 19. Seventy percent of this capacity is 126,000 gpd. or 504 residential units at 250 gpd. per household. This approach would essentially require build out of all of the uses on the present PUD Master Guide Plan before expanding residential development to the other areas within the overall project anticipated as part of the Comprehensive Plan. As such, the following stipulations are to be incorporated in the development contract: 1. Approval of the preliminary plat shall not guarantee access to sanitary sewer service. The City shall only allocate sanitary sewer capacity to approved final plats with signed development contracts to assure the City of timely development. 2. The total sanitary sewer capacity allocated to the subject site shall not exceed 180,000 gallons per day, as determined by the City Engineer, unless approved by the City Council. 3. The total sanitary sewer capacity allocated to the subject site for residential uses shall not exceed 126,000 gallons per day, as determined by the City Engineer, unless approved by the City Council. 7 01/03/2005 04:23 7635503913 MOEN LEUER CONSTRUCT PAGE 02 Qua S D LLC Civil Engineering Land Development January 3, 2005 Mr. Mike Robertson City of Otsego 8899 Nashua Avenue NE Otsego, MN 55330 Re: Otsego Preserve Third Addition. Final. Plat Dear Mr. Robertson, This letter is written on behalf of the developer of the Otsego Preserve Third Addition project, Otsego West, LLC. As you know, the final plat was submitted on 12/27/04 to the City for approval.. The plat provides for 39 single family residential lots. We understand that the capacity of the West Treatment plant designated for residential use is limited, and that capacity reservation by final platted lots has reserved all but approximately 13 Residential Equivalent Units (RECs). We also understand that there will be some discussion by Council regarding the allotted residential capacity in upcoming Council meetings. With that in mind, if the Council so chooses to increase the amount of residential capacity, we would like to confirm our position to utilize any increase in capacity granted. Below are some reasons why we believe our project should remain. in line to receive additional service if so granted. 1. First Come — First Served: We have submitted our plat and understand that it is next in line for final plat approval. We should be granted the remaining 13 RECs at a minimum. 2. Park: The Otsego Preserve development project dedicated 7 acres of land for park dedication. The Third Addition plat will help pay for the land dedicated to the City. 3. 67 Street: The Otsego Preserve development project provided for improvements made to O street that are outside of the project boundaries that benefited other properties. The Third Addition. plat will help pay for those improvements. 4. Lift Station/Forcemain: The Otsego Preserve Second Addition project will install a lift station and forcemain that is to be utilized in the future by the City. The Third Addition plat will help pay for the lift station and forcemain. 5. Storm Sewer: The Otsego Preserve Second Addition project installed a storm sewer line along the south boundary to provide drainage for the 3600 Hr)lly .Lane lei., Suite 100, Plyinouc11, MN 55447 • Phvne (763) 550 -9056 a Fax (763) 550 -3913 01/03/2005 04:23 7635503913 MOEN LEUER CONSTRUCT PAGE 03 Zimmer Farms project and the Maciver Avenue improvement project. The Third Addition plat will help pay for this storm sewer line. 6. Site Grading: The site grading has been completed for the Third Addition not only in the anticipation of development, but also to provide for the installation of the storm sewer line along the south boundary as well as coordinating drainage with final platted lots of the Zimmer Farms project along the west boundary of the plat. 7. Safety Access: The Third Addition plat provides for a critical second access to all phases of the Otsego Preserve project. 64' Street of the Third Addition is proposed to connect to the Zimmer Farms project to the west. We also request that the final plat approval process continue for the Third Addition plat, including the drafting of the developers' agreement, such that we would be in a position to sign all documents and put securities in place as soon as possible. Provided of course, that the Council so chooses to allow additional plant capacity for residential use. Please do not hesitate to contact me for any questions at 763 -550 -9056. Sincerely, Quality Site Design, LLC Scott Dahlke Professional Engineer Cc: Otsego West, LLC File 00224 ITEM 8_7A Hakanson Anderson 3601 Thurston Avenue, Suite 101, Anoka, MN 55303 ASSOC., Inc. Phone: 763/427 -5860 Fax: 763/427 -0520 MEMORANDUM To: Honorable Mayor and City Council From: Ronald J. Wagner, Otsego City Engineer Date: January 5, 2005 Re: Paving 89 St. and Parrel Avenue As requested, we have estimated the cost for paving 89 Street and Parrel (Barthel Add.). We estimate the cost to be $41,650 and assessments would be approximately $3,800 /lot. I will be available at the City Council meeting for any questions or comments. Civil &Municipal �� ot361 hmccmemo l .doc Engineering Land Surveying for ^ Description Unit Unit Cost Total Number of Units Total Estimated Cost Remove Bituminous Pavement SY $1.00 90 $90.00 Sawing Bit Pavement Full Depth) Aggregate Base Class 5 Mill Bituminous Surface 2.0" LF TON SY $3.50 $9.00 $5.00 160 760 12 $560.00 $6,840.00 $60.00 Type LV 4 Wearing Course Mixture B Type LV 3 Non - Wearing Course Mixture B Bituminous Material For Tack Coat TON TON GAL $38.00 $33.00 $1.50 330 450 185 $12,540.00 $14,850.00 $277.50 Traffic Control LS $1,000.00 1 $1,000.00 Total Estimated Construction Cost $36,217.50 Contingency + 5% $1,810.88 Engineering, Administration and Legal + 10% $3,62135 Total Estimate Project Costl $41,650.13 Total Front Footage 2979.58 Cost per Front Foot $13.98 Cost per Lot $3,786.38 ASSESSMENTS FRONT FOOTAGE (LF BLOCK AND LOT PER LOT PER FRONT FOOTAGE Blk 1 Lot 4 $3,786.38 $3,216.18 230.08 Blk 1 Lot 5 $3,786.38 $3,749.46 268.23 Blk 1 Lot 6 $3,786.38 $3,749.46 268.23 Blk 1 Lot 7 $3,786.38 $3,749.46 268.23 Blk 1 Lot 8 $3,786.38 $3,752.12 268.42 Blk 2 Lot 1 $3,786.38 $3,364.63 240.70 Blk 2 Lot 2 $3,786.38 $2,467.91 176.55 Blk 2 Lot 3 $3,786.38 $3,507.35 250.91 Blk 2 Lot 4 $3,786.38 $4,413.44 315.73 Blk 2 Lot 5 $3,786.38 $4,413.44 315.73 Blk 2 Lot 6 $3,786.38 $5,266.69 376.77 TOTAL FRONT FOOTAGE 2979.58 TOTAL PROJECT COST $41,650.13 ITEM 8_1B Hakanson Anderson 3601 Thurston Avenue, Suite 101, Anoka, MN 55303 Assoc., Inc. Phone: 763/427-5860 Fax: 763/427-0520 MEMORANDUM To: Honorable Mayor and City Council CC: Mr. Mike Robertson, City Administrator Ms. Judy Hudson, City Clerk From: Ronald J. Wagner, Otsego City Engineer Date: January 3, 2005 Re: Street Lights — Parrell and 89th Attached is a letter I received from Elk River Utilities for costs and alternatives to place streetlights at the intersection of CSAH 39/Parrell Ave. and 89 Street/Parrell Ave. I would recommend option 1 for both with a 150 -watt at 89 and Parrell Ave. and 250 watt at CSAH 39 and Parrell Ave. Total installation would cost $2,180. The City would then pay the monthly electricity use. I am recommending the wooden 30' poles due to the cost savings and that the neighborhood has overhead lines already and will not see conversion to underground utilities in the foreseeable future. Civil 6 Municipal �� ot3 61 hmccmemo Engineering Land Surveying for r "" JAN -03 -05 11:24AM FROM -ELK RIVER UTILITIES 7634412276 . T -095 P.01 /01 F -247 Elk River t, Municipal Utilities 13069 Orono Parkway Elk River, MN 55330 December 30, 2004 Ron Wagner, Engineer City of Otsego 8899 Nashua Avenue NE Otsego, MN 55330 phone: 763.441.2020 Fax: 763.441.8099 Subject: Two Street Lights at 89 "' Street & Parrell Avenue and County Road 39 & Parrell Avenue Dear Mr. Wagner, This letter is in response to your request for street light pricing and options for two locations. Glenn Sundeen, Electric Superinrtendent is proposing the following: Installation Fee for 89` Street & Parrell Avenue Option 1 $1090 for 30' wood pole, underground electric to the pole and your choice of a 100, 150 or 250 watt HPS cobra head on a 6' mast arm. Option 2 $1590 for 23' fiberglass pole, underground electric to the pole and your choice of a 100 qr 150 watt HPS traditionaire head. Installation fee for County Road 39 & Parnell Avenu Option 1 $1090 for 30' wood pole, underground electric to the pole and your choice of a 100, 150 or 250 watt HPS cobra head on a 6' mast arm. Option 2 $1790 for 30' fiberglass pole, underground electric to the pole and your choice of a 100,150 or 250 watt HPS cobra head on a 6' mast arm. Elk River Municipal Utilities would like to suggest a 100 or 150 watt HPS at 89 Street & Parrel I Avenue, and a 2S0 watt HPS at County Road 39 & Parrell Avenue. On other related issues, we would encourage you to verify that easements are provided on all new plats so small utilities have adequate locations to install and maintain their facilities. If you need any other information do not hesitate to call. (;Best re aids, B Adams, P.E. neral Manager ITEM 8 -2 vs 7-Y off January 3, 2005 Wright County Surveyor Jerome C. Wittstock, PLS 4 Public Works Building 1901 Hwy. 25 North Buffalo, MN 55313 Phone: (763) 682 -7691 Fax: (763) 682 -7313 Email: Jay.Wittstock @co.wright.mn.us Mr. Michael Robertson City Administrator City of Otsego 8899 Nashua Ave NE Otsego, MN 55330 RE: Partnership in starting an Aerial Photography Program in 2005 Mr. Robertson, I am writing seeking your partnership in starting an aerial photography program in 2005. The County is considering spring digital color 1- foot - pixel - resolution aerial photography. The photography would be available to the partners and County to use in conjunction with Geographic Information Systems, which includes the County web site, or other systems. On November 23, 2004, the Wright County Board of Commissioners approved a $5.00 per lot aerial - photography fee that will be collected as part of the plat- checking process. This fee will generate approximately $15,000 per year, which is enough to cover about a third of the approximately $45,000 needed to fly the entire County or enough to fly about a third of the County per year. This estimate is based on a ballpark figure given to me by an aerial photography vendor. To start this program, I am interested in finding partners to help cover the cost of flying the entire County initially. Once complete, updates would be paid for from the aerial - photography fee with a third of the County being updated yearly or a complete re -flight every three years, depending on partner needs. If there is not any interest, the County will be flying about a third of the County yearly, completing the County in spring 2007. I would like to develop the Request for Proposals by the middle of February so please contact me by January 21, 2005 if you are interested. Thank you for your consideration of this item. q Jay Wittstock, PLS ITEM 17_1 CITY OF OTSEGO PARK SHELTER RENTAL POLICIES January, 2005 I. PARK SHELTER PRIORITY USE City of Otsego recreation activities and the annual Otsego Festival shall have top priority for use of City Park facilities, including the park shelter. After all of those activities have been scheduled then requests will be granted to other users in order of priority listed below. A. City sponsored events. B. Otsego based Non - Profit and Civic /Service groups (Otsego Festival, Women of Today, JC's, Lions, etc.). C. City Residents. D. School districts serving Otsego. E. All other requests on a first come, first served basis. II. RESERVATIONS City of Otsego recreation activities and the annual Otsego Festival shall have top priority for reserving use of City Park facilities. After all of those activities have been scheduled then requests will be granted to other users in order of priority listed below. A. City sponsored events may be scheduled as far in advance as the Otsego City Council deems appropriate. B. Otsego based Non - Profit organizations, Civic /Service groups, and Otsego residents may book Otsego facilities up to a year in advance. C. All other organizations and requests must be made after January 1 8 t of the calendar year in which the event will be held. F III. RESERVATION PERMITS A. Permits can be applied for filling out an application form at Otsego City Hall during regular office hours or calling 763/441 -4414 during regular office hours. B. Upon receipt of a completed permit application and fees, the City will verify space availability. An application is not complete until a signed facility user contract has been received. Until all fees are paid, space is not reserved. C. Receipt of a permit entitles the applicant to exclusive use of the Prairie Park shelter. It does not provide for exclusive use of any of the Prairie Park ball fields or park equipment. Applicants should be aware that there are many users of park equipment and ball fields and that they will be sharing these facilities with them. D. The park shelter has a capacity of approximately 30 -40 people depending on how the tables are arranged. City staff will.not be responsible for arranging tables or moving tables from one City park to another to accommodate larger groups. E. The person reserving the park shelter must have their copy of the signed permit with them. This person is also responsible for enforcing all City of Otsego park rules and ordinances. This person is also responsible for the conduct of the people participating in the event. F. The person or group responsible for reserving the park shelter is also responsible for cleaning up their garbage before leaving the park. City staff will verify garbage cleanup before returning the damage deposit. 3 IV. USAGE FEES A. Park Shelter Fees 1. Residents $ 10.00 /Day plus $200 Damage Deposit 2. Non - Profit, Civic /Service Groups & School Districts $ 15.00 /Day plus $200 Damage Deposit 3. All other Users $ 25.00 /Day plus $200 Damage Deposit Cancellations subject to 50% retainage of the rental fee. No refunds for inclement weather. The City Council reserves the right to waive fees. The City Will /Will Not supply electricity for the use of the facility renter. 21 CITY OF OTSEGO FACILITY USER CONTRACT I understand that I am fully responsible for the conduct of the people involved in the planned event, including the use of alcohol. I also understand that I am responsible for the safe and proper use of the reserved facility as per the purpose of the request. I understand that no refunds will be issued due to inclement weather. I understand the facility is to be left in the proper state of cleanliness, with garbage removed, and without damages. If any damages are incurred, I understand I will be responsible to pay for the replacement of articles and or property that is damaged. I further understand that in the event of non - payment of damages the City has the right to assess my property for damages or seek other remedies as it may determine necessary. The City of Otsego reserves the right to accept or reject applications based on past performance or cooperation of the applicant based on factors such as response to deadlines, facility maintenance and following established rules. I have fully read and understand this form, all rules and regulations pertaining to Otsego facility use requirements and will abide by them. Signature_ Name Address City Home Phone Group /Organization Name Date State zip Work Phone 5