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02-22-99 CCAGENDA SECTION: CITY OF OTSEGO REQUEST FOR COUNCIL ACTION DEPARTMENT: MEETING DATE: DEPARTMENT: PREPARED BY: 4. Open Forum:(5 Minute Limit) MEETING DATE Elaine Beatty Council of: 2/22/99-6:30PM ITEM NUMBER: ITEM DESCRIPTION: PREPARED BY: 4.1.SPECIAL PRESENTATION: A. TED FIELD, Engineer from Bonestroo - Consider Acceptance of Wastewater Treatment Plant Bids. B. GARY GROEN - Discussion of 1998 Budget Report BArZGROUND 4.1.A. As you know, The bids were opened for the wastewater treatment plant on Tuesday, February 16, 1999. Ted Field will be present to give you the results and ask for your consideration to accept same. 4.2.B. Attached are two Memos, one dated February 17' 1999 Re: 1998 Preliminary Budget Surplus and one dated February 16, 1999 Re: 1998 Preliminary Final Budget Report from Mike Robertson, City Administrator. Gary Groen and Mike Robertson will be present to explain and answer questions. o ECOM ENDAT I ON These are for Council consideration and approval. Thanks, Elaine REVENUES The City projected revenues of $1,246,052 in 1998 and received revenues of $1,334,888, for a surplus of $88,836. The major contributors to the surplus were the following; Building Permits - These were projected at $50,000 and came in at $86,374, a surplus of $36,374. Though we normally project Building Permits very conservatively because of their volatility, this is an amazing feat when you consider that we had a subdivision moratorium on. Mining P -s - No amount is normally budgeted for this item because this is such a volatile category, so the entire amount of $13,995 was a surplus. De indent Taxes - This also not budgeted. The City's tax collection rate is 98%, which is very good. The $12,225 collected in delinquent taxes probably represents back taxes owed for more than one year. Othert L- Aid Grants - We never budget for grants, so the entire amount of $10,141 that we received was a surplus. This includes the Minnesota Historic Society Grant of $5,000 for the Otsego Historic Context Study, the State Mighty Kids Grant of $2,500 for a variety of recreational activities, and others. Sem i rmitg - We projected $2,750 in septic permits and received $9,920 for a surplus of $7,170. This is primarily due to the County's "Point of Sale" Ordinance which requires a septic system to meet code when a property is sold. Interest - This was projected at $18,000 and came in at $24,008, a surplus of $6,008. 2 EXPENDITURES The City projected expenditures of $1,246,052 in 1998 and actually spent $1,161,456, a savings of $84,596. This savings represents 6.8% of the budget. Normally, unbudgeted expenditures should be in the range of 2-5%, but I think this is likely a one year aberration. Most of this surplus was in the Street Department ($62,600). Besides the aforementioned good weather, other contributors to the surplus were the fact that we budgeted for three full time public works employees but spent most of the year with 2-1/2. We also had substantial unexpended funds in City Council Contingency ($26,805); City Engineer ($11,533); and City Planner ($7,977). I have listed below each department and how it finished 1998. MAYOR & COUNCIL Mayor & Council was budgeted for $72,410 and spent 38,466, for a surplus of $33,944. The major contributor to the surplus was $26,805 in unspent Contingency funds. In 1999 Mayor & Council is budgeted at $66,110, and the Contingency Fund has been reduced to $24,000. ADMINISTRATION Administration was budgeted at $256,465 and spent $245,686 for a surplus of $10,779. The major contributor to the surplus was $6,388 in unspent Office Supplies. In 1999 Administration is budgeted at $255,525. FINANCE Finance was budgeted at $27,295 and spent $26,912 for a surplus of $382. Contracted Services (Gary Groen's time) was budgeted at $21,200 and spent $14,821 for a surplus of $6,378. However, the City purchased new financial software at an unbudgeted cost of $5,436 which took care of most of that surplus. In 1999 Finance is budgeted at $23,600. 3 ASSESSING Assessing was budgeted at $16,760 and spent $18,779, for a deficit of $2,019. The increase was due to the increased number of parcels Pete Merges reviewed. In 1999 Assessing is budgeted at $17,500. LEGAL Legal was budgeted for $40,000 and spent $41,302 for a deficit of $1,302. In 1999 Legal is budgeted for $50,000. PLANNING COMMISSION Planning Commission is budgeted for $3,700 and spent $3,445 for a surplus of $255. In 1999 Planning Commission is budgeted for $3,700. PLANNER The Planner was budgeted for $53,500 and spent $45,523 for a surplus of $7,977. In 1999 the Planner is budgeted for $54,000. EDA The EDA was budgeted for $6,491 and spent $320 for a surplus of $6,171. In 1999 the EDA is budgeted for $6,291. CITY HALL/PEAVEY HOUSE City Hall/Peavey House was budgeted for $78,076 and spent $71,327 for a surplus of $6,749. Contracted Services had a surplus of $2,822 and Cleaning Services had a surplus of $2,024. This helped to make up for a deficit of $2,127 in Repairs & Maintenance -Equipment. In 1999, City Hall/Peavey House is budgeted for $75,556. POLICE Police was budgeted for $103,806 and spent $103,806. In 1999 Police is budgeted for $135,310. BUILDING INSPECTION Building Inspection costs are a percentage of the amount of Building Permits. The Building Inspector was paid $48,009.75 in 1998. The City earned $86,374 from Building permits, so it came out $38,364.25 ahead. 0 ENGINEERING Engineering was budgeted for $52,000 and spent $40,466 for a surplus of $11,534. In 1999 Engineering is budgeted for $52,000. STREET LIGHTING Street Lighting was budgeted at $12,000 and spent $13,022 for a deficit of $1,022. In 1999 Street Lighting has been budgeted at $16,000. STREET MAINTENANCE Street Maintenance was budgeted at $374,846 and spent $312,246 for a surplus of $62,600. The major contributors to the surplus were having 2-1/2 men rather than the budgeted 3 ($23,000), savings on Sealcoating ($25,644); Gravel ($25,258); Crackfilling ($11,196); Salt & Sand ($9,569); and Gas & Oil ($4,444). These savings helped to cover overruns in Repairs & Maintenance -Equipment ($24,258); Culverts ($5,623); and Repair & Maintenance -Supplies ($2,897). In 1999 Street Maintenance is budgeted at $396,703. ANIMAL CONTROL Animal Control was budgeted at $3,500 and spent $1,964 for a surplus of $1,536. In 1999 Animal Control is budgeted at $3,500. RECYCLING Recycling was budgeted at $32,000 and spent $32,506 for a deficit of $506. In 1999 Recycling has been budgeted at $32,000. CLEANUP DAY Cleanup Day was budgeted at $8,000 and spent $10,725 for a deficit of $2,725. This is another area where an overrun is not such a bad thing. In 1999 Cleanup Day has been budgeted at $11,000. RIVER RIDER River Rider was not budgeted but we spent $3,195 out of the Mayor & Council Contingency Fund. In 1999 River Rider has been budgeted at $3,195. 5 COMMUNITY RECREATION Community Recreation was budgeted at $19,003 and spent $19,003. In 1999 Community Recreation has been budgeted at $19,900. PARR MAINTENANCE Park Maintenance was budgeted at $17,791 and spent $26,181 for a deficit of $8,390. The deficit was caused by spending $8,000 on tree cleanup in Prairie Park. This was paid for by FEMA Funds. In 1999 Park Maintenance is budgeted at $20,891. HISTORIC PRESERVATION Historic Preservation was budgeted at $6,091 and spent $8,474 for a deficit of $2,474. This deficit was caused by spending to produce the Historic Context Study. This study was covered by a grant the City received from the State. cc: City Staff C MEMO Date: February 17, 1999 To: Mayor & Council From: City Administrator Mike Robertson Re: 1998 Preliminary Budget Surplus Another memo has detailed the preliminary 1998 final budget figures, which have shown a budget surplus of $174,432 in 1998. As noted, this surplus is due to a variety of positive factors, all of which are not likely to reoccur again. The decision for the City Council is what to do with the 1998 budget surplus. You could leave the surplus as fund balance. Fund balance is that amount of the City's cash left over at the end of the year. Since the City receives its second half tax settlement and LGA payments in mid-December, its fund balance always looks nice. However, the fund balance has to last for over 6 months because the City will not receive anymore tax money until next July. Because of this, City auditors always recommend that a City have 45-50% of its yearly budget in fund balance. At the start of 1998, Otsego had a fund balance of $504,884. Otsego's budget for 1999 is $1,281,422. To have a fund balance of 45-50% of the 1999 budget, Otsego would need $576,000- $640,711 in fund balance. That means that the City Council should add a minimum of $72,000 from the budget surplus to its fund balance. That is what City Financial Consultant Gary Groen and I recommend. That means that the City has $102,434 in remaining surplus funds. What follows is a list of possible recommendations for the use of those funds, along with the pros and cons of each. This list is not assumed to include all possibilities. 1998 BUDGET SURPLUS OPTIONS 1. RETURN THE MONEY TO THE TAXPAYERS Pros - Everyone loves this idea. Cons - The City is not set up to do this. I could talk to the County to see if they have a mechanism for doing this. I would guess that the costs of doing this would use up a substantial amount of the surplus. 2. PLACE THE MONEY IN A SEWER & WATER BOND RESERVE FUND TO MARE BOND PAYMENTS IF THERE IS NOT ENOUGH DEVELOPMENT Pros - It would provide additional reserve for the Sewer/Water bond payments. Cons - The budget surplus money is tax and general revenue money. This method would use it to pay off enterprise fund bonds. 3. PLACE THE MONEY IN THE CAPITAL EQUIPMENT FUND TO PURCHASE FUTURE CAPITAL EQUIPMENT Pros - This would provide additional money to the fund and make it less likely that future capital equipment purchases would require tax increases. Cons - The Capital Equipment Fund is currently adequate to meet all immediate needs. 4. PLACE THE MONEY IN THE REVOLVING CAPITAL IMPROVEMENT FUND TO BE USED ON FUTURE CITY IMPROVEMENT PROJECTS Pros - This provides additional money for projects that cannot be assessed 100% and that are difficult to fund through other sources. Cons - This money is generated through 1998 taxes and receipts but will probably not be spent for a few years. 5. USE THE MONEY AS SEED MONEY FOR ECONOMIC DEVELOPMENT EFFORTS Pros - This provides money for marketing or a funding source for incentives to attract industrial or commercial development. Cons - The existence of a pot of money can sometimes cause it to be spent frivolously. E 6. PLACE THE MONEY IN THE MUNICIPAL BUILDING FUND TO BE USED FOR FUTURE EXPANSION OF CITY HALL Prn - This provides additional money for a future expansion of City Hall (Police Station?) (Post Office?) etc. that could most likely be funded only through tax supported bonds. Cons - This money is generated through 1998 taxes and receipts but will probably not be spent for quite a few years. 7. USE THE MONEY TO FUND FUTURE SCHEDULED PARK IMPROVEMENTS Pros - Everyone loves park improvements. COLS - City policy has been to fund those improvements through development fees and grants. 8. PAY DOWN THE LEASE ON CITY HALL Pros - This frees up money in the future if we make those payments now. Cork - The financial benefit to the City is not realized for several years until the lease is all paid up. 9. USE THE MONEY AS A REVENUE SOURCE FOR THE 2000 BUDGET AND REDUCE THE PROPERTY TAX RATE Prns - This provides additional revenue for the 2000 budget allowing less dependence on property taxes. .Cons - A budget surplus cannot be guaranteed every year and if the City becomes dependent upon it as a revenue source they would have to reduce spending or raise taxes suddenly if there was not any surplus. 10. USE THE MONEY TO FUND THE GENERAL OPERATIONS OF THE CITY Pres - This provides additional revenue for the general budget allowing less dependence on property taxes. Conn - A budget surplus cannot be guaranteed every year and if the City becomes dependent upon it as a revenue source they would have to reduce spending or raise taxes suddenly if there was not any surplus. 3 11. PROVIDE ONE TIME BONUSES TO THE FINANCIAL CONSULTANT AND CITY ADMINISTRATOR Pros - Since they're great guys they're worth every penny. Cons - It's a stupid idea and the rest of the staff and the citizens would probably want to shoot you for doing it. cc: City Staff C! CITY OF OTSEGO REQUEST FOR COUNCIL ACTION AGENDA SECTION: DEPARTMENT: MEETING DATE: DEPARTMENT: PREPARED BY: MEETING DATE r Dan Licht, Assistant City Planner Elaine Beatty, City Clerk Council of: 2/22/99-6:30PM ITEM NUMBER: ITEM DESCRIPTION: PREPARED BY: 6.1. Consider the proposed Zoning Ordinance Amendment; An Ordinance Amending The Otsego Zoning Ordinance Accessory Building Standards. BACKGROUND: 6.1. The Planning Commission held a Public Hearing on February 16, 1999 on this item. I am attaching draft minutes, a copy of a Memo from Dan Licht of February 17, 1999 and the proposed ordinance information for your review. Dan Licht will be present to give you any more information and answer questions. RECOMMENDATION! This is for Council consideration for approval Thanks, Elaine I CITY OF OTSEGO Q CITY OF OTSEGO PLANNING COMMISSION/ CITY COUNCIL. MEETING MINUTES TUESDAY, FEBRUARY 16, 1999 - 8PM 1. Chair Carl Swenson will call meeting to order: Chair Carl Swenson called the meeting to order at 8:03PM ROLL CALL: Carl Swenson, Chair, Patrick Moonen, Richard Nichols, Jim Kolles and Gene Goenner. Bruce Rask, Arleen Nagel and Christian Mbanefo, Alt. were absent from the P.C. Larry Fournier, Mayor, Virginia Wendel, Vern Heidner, Suzanne Ackerman Council Members were present. Mark Beming was absent. Mike Robertson, City Administrator, Elaine Beatty, City Clerk/Zoning Administrator and Dan Licht, City Planner from Staff. 2. Consideration of the Planning Commission Minutes of: A. February 1. 1999 Otsego P.C./CC Meeting RICHARD NICHOLS MOTIONED TO ADOPT THE MINUTES OF FEBRUARY 1, 1999 OTSEGO PC/CC MEETING MINUTES. JIM KOLLES SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 3 Hearing to consider the proposed Zoning Ordinance Amendments An Ordinance Amending the Otsego Zoning Ordinance Accessory Building Standards, Elaine Beatty noted that the proper publication, and posting had been completed. Dan Licht explained the current proposed ordinance (a copy is attached). Two new zoning districts have been added on Pg. 4, RC and I-3. Section 4 was stricken out and reserved for future use. Chair Swenson noted the formal Public Hearing procedure on the back side of the P.C. Agenda. PUBLIC HEARING WAS OPENED TO THE PUBLIC Keith Knutson He asked if a gazebo and if it is an accessory building. Mr. 6630 Odean Ave NE Licht answered all structures over 150 sq. ft are accessory buildings. Mr. Knutson questioned if he can go ahead with his existing CUP? Dan answered he can proceed with the conditions as approved. Mr. Knutson was curious to know why he was rejected with his request? Chair Swenson said it would be appropriate to ask the City Council about that. Mr. Knutson discussed the buildings he was asked to remove. Could he extend his time to complete that removal? Mr. Robertson answered, to change the CUP would be an amendment. Mr. Licht agreed and said he would need to come before the City Council to consider an amendment. CITY OF OTSEGO PLANNING COMMISSION/CITY COUNCIL MEETING MINUTES TUESDAY, FEBRUARY 16, 1999 - 8PM -PAGE 2 - Richard Will - Asked if new regulations are passed would you still need an 9309 Nellmark Administrative Permit to go over the 100 sq. ft? Answer: No. On his lot he can build up to 2,000sq. ft. of detached buildings or smaller buildings. Gene Goenner told Mr. Will to keep in mind he would still need to obtain a building permit. Dale Beaudry Mr. Beaudry has 5 acres of land in the Rural Service Area. He 7675 MacIver wants a 1800 sq. ft pole building. Will that be allowed? Mr. Licht explained that he could build the size he wanted but would have to build a stick -built structure instead building instead of a pole building. Pole buildings are only allowed on lots of over five acres in size. Mr. Beaudry feels it should read " 5 acres or more". Chair Swenson noted that we have had a lot of discussion on this issue. Discussion went back to the P.C. Patrick Moonen - Questioned the change to eliminate 1,000 sq. ft. accessory building space on one acre lots. What was the consideration to limit the larger structures? Mr. Licht explained we looked at the size of items typically stored in a garage. The only change is to eleminate exceptions through the CUP process. One acre lots are allowed a total of 2,000 sq. ft. in accessory building space including one detached garage. Mike Robertson added that the Council was trying to deal with the fact that none of the CUP's were being turned down and people were spending $500 to $800 on the CUP application. Hearing was re -opened to the public. Keith Knutson Agreed with Dale Beaudry that the size required should be stated as "equal to or greater than 5 acres in size". A five acre lot is quite a bit to maintain. Mr. Will Agreed with Dale Beaudry, He also felt that on a one acre lot one-half acre is taken up with septic. If you stick another 1,000 sq. ft on it, it will be cramped. Dale Beaudry It is my understanding that if I had 5.1 acres I could build a big shed, but I am limited because I only have 5 acres. Chair Swenson noted that the problem is there has to be a line drawn somewhere. Other people around me have 5 acre lots with big pole buildings and I have petitions from my neighbors that agree CITY OF OTSEGO PLANNING COMMISSION/CITY COUNCIL MEETING MINUTES TUESDAY, FEBRUARY 16, 1999 - 8PM -PAGE 3 - with me building a pole building. He felt that some stick built buildings he sees are in worse shape than the pole buildings. Chair Swenson - Noted that in general we are talking about a residential area and pole buildings do not look good in a residential area. Mr. Beaudry noted that he lives on MacIver Ave. Dan Licht noted he is a residential use. HEARING WAS CLOSED BY CHAIR SWENSON Discussion brought back to the P.C. Gene Goenner - All the people who spoke want it to read 5 acres and greater. Do we want to revisit it? I will be honest. I voted for over 5 acres. Richard Nichols - We went round and round on this for weeks at a time. I understand Dale's concern. I am personally not in favor of a change. We have to look at what's best for the City. Dan Licht - 10 acres or greater was the original size and we lowered it to pick up the larger than 5 acre hobby farms. RICHARD NICHOLS MOTIONED TO RECOMMEND APPROVAL OF THE AMENDMENT TO THE ZONING ORDINANCE FOR ACCESSORY BUILDING STANDARDS AS WRITTEN. GENE GOENNER SECONDED THE MOTION. MOTION CARRIED WITH PAT MOONEN VOTING AGAINST. This item will be on the Council Agenda of February 22, 1999 at 6:30PM. 4. Any other P.C. Business Chair Swenson noted that another problem we have is the minimum lot size in the Rural Service Area. Dan Licht explained that the proposed one acre minimum lot size in the Rural Service Area may be a problem. Possibly 2-1/2 acres to 5 acres is appropriate. On the issue of lot sizes smaller than the proposed minimum lot size, we can grandfather the one acre minimum lots that are established now. Gene Goenner. The main concern is the sewer system. Why not have them show ample sewer sites (2 or 3 sites). 2-1/2 acres is a lot to maintain. Chair Swenson agreed with them on having multiple septic sites. Mr. Goenner asked if we will require clustered 4 per 40's? Mr. Licht - Yes clustered, unless 10 acre divisions. A-1 is the Ag. Preservation District. A-2 more rural 4 per 40, four 10 -acre lots or clustered lots. More discussion. Chair Swenson noted that they would need road frontage on existing roads. Mike Robertson asked if the 4 per 40 are administrative splits or do they take P.C./ CC action? More discussion of 4 per 40 being administrative or application. Gene Goenner noted that if we are not notified of a neighbors 4 per 40 splits, someone could put their house on a 12" drain tile. He wanted to see the notice go out to neighbors. Richard Nichols - That would be true regardless of acreage. Elaine - Noted CITY OF OTSEGO PLANNING COMMISSION/CITY COUNCIL MEETING MINUTES TUESDAY, FEBRUARY 16, 1999 - 8PM -PAGE 4 - that for 4 per 40 it would have to be rezoned from A-1 to A-2. Dan Licht will prepare a matrix regarding this issue. P.C. did not want this on for hearing. They want it on for an Agenda item to discuss lot size. Mike Robertson gave the P.C. the good news that we received our sewer discharge permit and the wastewater treatment plant bids came in $271,000 below the engineers estimate. The low bidder is a very reputable company. The bids will be brought to the Council on the 22nd of February. 5. Adjourn by 10PM RICHARD NICHOLS MOTIONED TO ADJOURN THE PLANNING COMMISSION MEETING. PATRICK MOONEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. MEETING ADJOURNED AT 8:55PM. CITY OF OTSEGO: ARLEEN NAGEL, SECRETARY MINUTES BY: ELAINE BEATTY, CITY CLERK/RECORDING SECRETARY EB FU -E: 99-PCNIN.WPs FEB -17-1999 08:11 NAC 612 595 9837 P.02i02 N MEMORANDUM TO_ FROM: DATE: RE: FILE NO.: Otsego Mayor and City Council Daniel Licht 17 February 1999 Otsego - Zoning Ordinance Update. Accessory Buildings 176.08 - 98.07 J LTANTS RESEARCH The Planning Commission considered the proposed amendment to the accessory building provisions of the Zoning Ordinance at a public hearing on February 16, 1999. The proposed ordinance was in the format last discussed at the Planning Commission / City Council workshop on February 1, 1999. Three residents spoke as part of the public hearing regarding allowing pole buildings only on lots larger than 5 acres. The three residents believed that the regulation should be established allowing pole buildings on parcels "5 acres in size or larger". The Planning Commission and City Council had discussed this issue at length during the workshop sessions. The intent of the regulation as written was to allow pole buildings on true hobby farms or large rural parcels but discourage them from subdivisions of clustered suburban sized lots. The Planning Commission did not suggest changing the requirement. The Planning Commission voted to recommend approval of the proposed ordinance amendment by a vote of 4-1. The amendment will be considered by the City Council at their meeting on February 22, 1999. If there are any further questions regarding this matter, please do not hesitate to call me. PC. Mike Robertson Elaine Beatty Jerry Olsen Andy MacArthur 5775 WAYZATA BOULEVARD. SUITE 555 ST. LOUIS PARK, MINNESOTA 5541 6 PHONE 61 2-595-9636 FAX 612-595-9837 E-MAIL NAC WINTERNET.COM TOTAL P.02 N W^ f�% NORTHWEST ASSOCIATED CONSULTANTS INC COMMUNITY PLANNING - DESIGN - MARKET RESEARCH MEMORANDUM TO: Otsego Mayor and City Council Otsego Planning Commission FROM: Daniel Licht DATE: 2 February 1999 RE: Otsego - Zoning Ordinance Update: Accessory Buildings FILE NO.: 176.08 - 98.07 The attached ordinance for accessory building regulations reflects changes from the Planning Commission/City Council meeting on February 1, 1999. The only change was to reduce the area requirements for construction of a pole building in the rural service area from 10 acres or greater to greater than 5 acres. A public hearing to consider this amendment has been scheduled for the Planning Commission meeting on Tuesday, February 16, 1999 at 8:00 PM. PC. Mike Robertson Elaine Beatty Jerry Olsen Andy MacArthur 5775 WAYZATA BOULEVARD, SUITE 555 ST. LOUIS PARK, MINNESOTA 554 1 6 PHONE 61 2-595-9636 FAX 612-595-9837 E-MAIL NAC@WINTERNET.COM ACCESSORY BUILDING REGULATION MATRIX (02/02/98) Existing Regulations New Regulations Urban Service Area Rural Service Area (All Districts) Sewer No Sewer Districts Districts (R-4R5/R-6/R-7) (A-1/A-2JR-C/ R -1/R -2/R-3 Exemptions Farm and hobby farm uses Farms and uses in the R -MH District to be regulated in the R - MH District section. Attached 1,000 sq. ft. permitted, Min 480 sq. ft / Min 480 sq. ft / Min 480 sq. ft / Accessory Over 1,000 sq. ft. by CUP Max 1,000 sq. ft. Max 1,000 sq. ft. Max 1,000 sq. ft. Structures Detached 1,000 sq. ft. permitted, Max 150 sq. ft. 1,000 sq. ft. + 1,000 sq. ft. + 500 sq. ft. Accessory 1,000 sq. ft. to 1,500 sq. ft. by w/ attached 500 sq. ft. for for each additional Structures administrative permit, garage or 1,150 each additional acre > 1 acre up to Over 1,500 sq. ft. by CUP w/out attached acre > 1 acre up 3,000 sq. ft. Maximum garage to 2,000 sq. ft. size of a building = 1,500 Maximum size of sq. ft. a building = 1,500 sq. ft. Total Maximum 2,000 sq. ft. Max 1,150 sq. ft. 2,000 sq. ft. to 2,000 sq. ft. to 4,000 sq. Combined Over 2,000 sq. ft. by CUP 3,000 sq. ft. ft. based on lot size Accessory based on lot size Area Number of No more than one detached, No more than No more than No more than two structures more than one detached by one detached two detached detached structures CUP structure per structures per per dwelling. dwelling. dwelling. Relation to Except in the case of No regulation Total floor area Total floor area of all Size of manufactured homes, no of all accessory accessory structures Principal accessory building may structures shall shall not exceed 200 Structure exceed the size of the not exceed 200 percent of the gross floor principal structure, except by percent of the area of the principal CUP gross floor area structure or the of the principal maximum combined structure or the area allowed based maximum upon lot size, whichever combined area is least for parcels < 5 allowed based acres. No limit for upon lot size, parcels > 5 acres. whichever is least. Setbacks 10 ft from side/rear lot line 10 ft from side/rear lot line < 1,000 sq. ft. Principal building setback > 1,000 sq. ft. Pole Allowed by CUP in A-1 and Not allowed Allowed in A-1 and A-2 Buildings A-2 District District on parcels > 5 acres. CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA ORDINANCE #98 - AN ORDINANCE AMENDING THE RESIDENTIAL ACCESSORY STRUCTURE PROVISIONS OF THE OTSEGO ZONING ORDINANCE TO RESPOND TO DIRECTIVES OUTLINED IN THE COMPREHENSIVE PLAN UPDATE. THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. Section 20-16-4 of the Zoning Ordinance is hereby amended to read as follows: 20-16-4: ACCESSORY BUILDINGS, USES, AND EQUIPMENT: A. Exceptions: 1. Farm operations are exempt from the requirements of this subsection and are regulated by Section 26 of this Chapter. 2. R -MH District: Accessory buildings, uses, and equipment shall be as regulated within the district provisions of Section 60 of this Chapter. B. Detached Single Family and Two Family Uses: 1. No accessory use, building, structure or equipment shall be allowed within a required front yard. With the exception of a garage, no accessory building, structure, use or equipment may be placed within a front yard. 2. No accessory building, structure, and/or detached garage for a single family dwelling shall occupy more than ten (10) percent of the area of the required rear yard in the A-1, A-2, R -C, R-1, R-2 and R-3 Zoning Districts or not more than twenty- five (25) percent of the area of the required rear yard in the R-4, R-5, R-6, and R-7 Zoning Districts. 3. Accessory buildings with an area of one thousand (1,000) square feet or less may encroach into the principal building required side and rear yard setbacks within the rear yard of a lot, except, however, that no such encroachment may occur on 1 required easement, or in a required side yard setback abutting a street in the case of a corner lot and that no such encroachment shall be closer than ten (10) feet to any lot line, occur upon a required easement, or in a required side yard. 4. Attached accessory garages or structures within both the Urban and Rural Service areas, as defined by the Comprehensive Plan: a. The total floor area of an attached accessory garage shall not be less than four hundred eighty (480) square feet and shall not be greater than the gross floor area of the principal structure or one thousand (1,000) square feet, whichever is least. 5. Detached accessory buildings and structures within the Urban Service Area, as defined by the Comprehensive Plan: a. Within the A-1, A-2, R -C, R-1, R-2, and R-3 Zoning Districts: (1) The total floor area of detached accessory buildings shall not exceed one thousand (1,000) square feet, plus five hundred (500) square feet of additional detached accessory building area for each one (1) acre of lot area greater than one (1) acre. But in no case shall the floor area of an individual detached accessory building exceed one thousand five hundred (1,500) square feet or the total detached accessory building area exceed two thousand (2,000) square feet. (2) The total floor area of all accessory structures shall not exceed two hundred(200)percent of the gross floor area of the principal structure or shall not exceed the maximum combined accessory area allowed based upon lot size, as outlined in this section, whichever is least. 2 (3) No building permit shall be issued for more than two (2) detached private garages or accessory structure -a for each detached single or two-family dwelling. b. Within the R-4, R-5, R-6, and R-7 Zoning Districts: (1) No accessory detached building shall occupy more than one hundred fifty (150) square feet when accompanied by an attached garage on the same lot nor shall the combined total floor area of an accessory detached building and/or attached garage exceed one thousand one hundred fifty (1,150) square feet. (2) No building permit shall be issued for more than one (1) detached private garage or accessory structure for each detached single or two-family dwelling. 6. Detached accessory buildings within the Rural Service Area as defined by the Comprehensive Plan: a. The total floor area of all detached accessory structures shall not exceed one thousand (1,000) square feet, plus five hundred (500) square feet of additional detached accessory building area for each one (1) acre of lot area greater than one (1) acre. But in no case shall the floor area of an individual detached accessory building exceed one thousand five hundred (1,500) square feet or the total detached accessory area exceed three thousand (3,000) square feet. b. No building permit shall be issued for more than two (2) detached private garages or accessory structures for each single family dwelling. C. For parcels with an area of five (5) acres or less, the total floor area of all accessory structures shall not exceed two hundred(200)percent of the gross floor area of the principal structure or shall not exceed the maximum combined accessory area allowed 3 based upon lot size, as outlined in this section, whichever is least. Section 2. Section 20-16-4.G (Building Type and Standards) of the Zoning Ordinance is hereby amended to read as follows: 2. Pole buildings as defined by this Chapter are allowed as a permitted accessory structure within the A-1 and A-2 District provided that: a. The lot or parcel lies within the Rural Service Area, as defined by the Comprehensive Plan. b. The area of the lot or parcel on which the building is to be constructed is greater than five (5) acres. Section 3. Section 20-16-4.F (accessory building height) of the Zoning Ordinance is hereby amended to read as follows: F. Except as expressly allowed by conditional use permit, accessory buildings shall comply with the following height limitations: 1 Zoning District Maximum Heiaht A-1 District limit but not higher than the principal building A-2 District limit but not higher than the principal building R -C 16 feet R-1 16 feet R-2 16 feet R-3 16 feet R-4 16 feet R-5 16 feet R-6 16 feet R-7 16 feet R -B 16 feet INS District limit but not higher than the principal building B-1 16 feet B-2 16 feet B-3 16 feet B -W 20 feet 4 B -C District limit but not higher than the principal building I-1 District limit but not higher than the principal building I-2 District limit but not higher than the principal building I-3 District limit but not higher than the principal building Section 4. Section 20-16-4.H (Administrative Permits) of the Zoning Ordinance is hereby amended to read as follows: H. Reserved. Section 5. Section 20-60-5.C.6 (R -MH District - Building requirements) of the Zoning Ordinance is hereby amended to read as follows b. Accessory Buildings: (1) Accessory buildings including garages shall be limited to one (1) per mobile home lot. (2) Maximum allowable floor area shall not exceed six and one-half (6.5) percent of the lot size. (3) Maximum Building Height: Sixteen (16) feet. (4) Location: The manufactured home park site plan shall designate the locations proposed for the development of garages and/or accessory building on each manufactured home lot. Said accessory buildings shall comply with the following setback requirements: (a) No accessory building shall be located in the front yard. (b) An accessory building may be located 5 in side or rear yards. (c ) All accessory buildings shall be set back from all adjoining lots a minimum of five (5) feet. Garages may be allowed with a zero lot line setback and a shared driveway when built as a double garage and shared by adjacent lots. (d) Accessory buildings shall not be located within any utility easements. (e) On lots having a lot width of fifty- five (55) feet or greater, an accessory building shall be located at least ten (10) feet from any other building or structure on the same lot. On lots having a fifty (50) foot lot width, accessory buildings shall be located at least nine (8) feet from any building or structure on the same lot. Section 6. This Ordinance shall be in full force and effect upon its passage and publication. PASSED this day of ATTEST: s•: CITY OF OTSEGO RY- Larry Fournier, Mayor BY: Elaine Beatty,Zoning Administrator/City Clerk CITY OF OTSEGO REQUEST FOR COUNCIL ACTION AGENDA SECTION: DEPARTMENT: MEETING DATE: DEPARTMENT: PREPARED BY: MEETING DATE 7. Larry Koshak, City Engineer Elaine Beatty Council of: 2/22/99- 6:30PM ITEM NUMBER: ITEM DESCRIPTION: PREPARED BY: 7.1. Action needed based on Workshop on Bituminous Street Overlay Study for year 1999 - 2002 /Set Hearing Date 7.2. Update on State Aid Funds for 1999 7.3. Accept Plan and Spec for Trunk Sewer & Water Project, Authorize Going Out For Bids 7.4. Any other Engineering Business BACKGROUND: 7.1.through 7.3. Larry Koshak will be present to explain these items and answer any questions. Attached is the information from Larry Koshak. RECOMMENDATION: This is for Council information, update and any decisions. T} s, 0 �- � Elaine Hakanson Anderson 1-111 Assoc., Inc. ":moil & Municipal Engineering d Surveying CITY OF OTSEGO CITY ENGINEER COUNCIL AGENDA ITEMS COUNCIL MEETING 2/22199 ITEM 7.1 BITUMINOUS STREET OVERLAY PROJECT 3601 Thurston Avenue Suite 101 Anoka, Minnesota 55303 612/427.5860 612/427-0520 Fax A. Review bonding capacity and limits for this project. Mike has discussed this issue with the bonding company, and will relate his findings. B. Find enclosed a tabulation of potential maintenance costs prepared by Ron Wagner, P.E., that may need to be spent to maintain the entire group of streets in the study for a period of 5 years. This estimated cost assumes continued failure of sections of street in Hall's Addition and 80th Street that would require dig outs and patching with asphalt. The amounts shown are probably a worst case scenario. C. Consider setting a public hearing for the overlay project(s). ITEM 7.2 STATE AID FUNDS OF 1999 The unencumbered funds in the State Aid account as of 12/31/98 were $993,913. The allotment for 1999 is $306,366, of which $76,592 is maintenance funds and the remaining $229,774 is placed in the construction fund. The total of construction funding available in 1999 is $1,223,687. The Odean Avenue project could use up to $730,000 of the State Aid funds in 1999. Since no new streets were added in the City for 1998, the annual Certification of Mileage does not allow for placing additional mileage on the system. That will change with development. The City did lose funding for 1998-1999. That is largely from the $993,913 being deducted for the Needs Apportionment funding calculation. By not spending the construction fund allotted, the City is penalized. City Engineer Council Agenda Items PIge 1 of 2 February 17. 1999 (; 1:i(h ii:Ib'VPrIitildoc ITEM 7.3 TRUNK SEWER AND WATER PROJECT, COP #98.04 We will have a set of plans available for review at the City Hall on Monday 2/22/99. The specifications are not ready for this meeting, but will be for the next meeting on March 8, 1999. At that meeting, the Council may consider approval of the plans & specifications and order bids. A resolution for this process is attached to the item. Also included is John Harwood's memo on the matter. ITEM 7.4 ANY OTHER ENGINEERING BUSINESS City Engineer Council Agenda Items Hakanson Page 2 of 2 � Anderson t=ehruary 17, 1999 Assoc., Inc. C harcliVPnnmiIAOTSFG019iJllof901aiienclaZo-99 doc 7 Hakanson Anderson Assoc., Inc. it & Municipal Engineering d Surveying February 17, 1999 Mr. Mike Robertson, Administrator City of Otsego 8899 Nashua Avenue N.E. Otsego, MN 55330 RE: Otsego Overlays Dear Mr. Robertson, ITEM 7.1 B 3601 Thurston Avenue Suite 101 Anoka, Minnesota 55303 612/427-5860 612/427-0520 Fax As requested at the February 8, 1999 City Council meeting, we have determined an estimated cost of maintenance over the next 5 years for roadways in Otsego that are proposed for an overlay. The total estimated cost is $264,761. Roadways within subdivisions were estimated with the following maintenance work to be completed in the next 5 years: 1999 Patching & Seal Coat 2000 None 2001 Crack Filling 2002 None 2003 Crack Filling Roadways not within subdivisions were felt to be beyond sealcoat or crack filling type maintenance. Instead, $5,000 worth of patching per year for those roadways was estimated. A breakdown of maintenance costs are shown on the following page timetable was used for maintenance cost because if the roadways maintenance would be required around 2004 or so. t q„r If you have any,questions or comments, you can contact us at 427-5860. Sincerely, HAKANSON ANDERSON ASSOCIATES, INC. Ronald J. y agner� /clk C:\Share\WPmun MOTS EGO\336\ot336mr2.doc s. A five-year were overlaid, Estimated Savings in Maintenance Costs for Roadways Proposed to be Overlayed PROJECT LOCATION 1999 COST HALLS 1ST, 2ND,& 3RD ADDITIONS HALLS 1ST, 2ND,& 3RD ADDITIONS DEER FIELD ACRES & HIDDEN VALLEY DEER FIELD ACRES & HIDDEN VALLEY WALESCH ESTATES & WALESCH ESTATES 2nd ADDITION WALESCH ESTATES & WALESCH ESTATES 2nd ADDITION VASSEUR'S OAK GROVE ESTATES 1ST & 2ND ADDITIONS VASSEUR'S OAK GROVE ESTATES IST & 2ND ADDITIONS VASSEUR'S OAK GROVE ESTATES 3RD & 4TH ADDITIONS VASSEUR'S OAK GROVE ESTATES 3RD & 4TH ADDITIONS OTSEGO ACRES 1ST & 2ND ADDITIONS OTSEGO ACRES IST & 2ND ADDITIONS GREAT RIVER ACRES 1ST,2ND & 3RD ADDITIONS GREAT RIVER ACRES 1ST,2ND & 3RD ADDITIONS "COUNTRY ROADS" * 1999 MAINTENANCE SUBTOTAL * NOTE: "COUNTRY ROADS" CONSIST OF: MASON AVE NE (CSAR 39 TO 83RD ST NE)* 83 RD ST. (MASON AVE. NE TO MARLOWE AVE. NE)* MARLOWE AVE NE (83RD ST. NE TO 80TH ST. NE)* 80TH ST. (Mac IVER AVE. NE TO MARLOWE AVE. NE* 80 TH ST. (Mac IVER AVE. NE TO CSAH 19)* SEALCOAT $18,444 PATCHING $82,728 SEALCOAT $5,352 PATCHING $1,788 SEALCOAT $19,021 PATCHING $18,407 SEALCOAT $13,517 PATCHING $3,754 SEALCOAT $8,138 PATCHING $1,788 SEALCOAT $9,622 PATCHING $1,341 SEALCOAT $11,684 PATCHING $4,586 PATCHING $5,000 $205,168 PROJECT LOCATION 2000 COST "COUNTRY ROADS" Page 2 PATCHING $5,000 $5,000 Estimated Savings in Maintenance Costs for Roadways Proposed to be Overlayed PROJECT LOCATION 2001 COST HALLS 1ST, 2ND,& 3RD ADDITIONS CRACKFILLING $4,257 DEER FIELD ACRES & HIDDEN VALLEY CRACKFILLING $1,235 WALESCH ESTATES & WALESCH ESTATES 2nd ADDITION CRACKFILLING $4,390 VASSEUR'S OAK GROVE ESTATES IST & 2ND ADDITIONS CRACKFILLING $3,120 VASSEUR'S OAK GROVE ESTATES 3RD & 4TH ADDITIONS CRACKFILLING $1,878 OTSEGO ACRES 1ST & 2ND ADDITIONS CRACKFILLING $2,221 GREAT RIVER ACRES 1ST,2ND & 3RD ADDITIONS CRACKFILLING $2,697 "COUNTRY ROADS" * PATCHING $5,000 2001 MAINTENANCE SUBTOTAL $24,796 PROJECT LOCATION 2002 COST "COUNTRY ROADS" " PATCHING $5,000 2002 MAINTENANCE SUBTOTAL Page 3 $5,000 Estimated Savings in Maintenance Costs for Roadways Proposed to be Overlayed PROJECT LOCATION 2003 COST HALLS 1ST, 2ND,& 3RD ADDITIONS CRACKFILLING $4,257 DEER FIELD ACRES & HIDDEN VALLEY CRACKFILLING $1,235 WALESCH ESTATES & WALESCH ESTATES 2nd ADDITION CRACKFILLING $4,390 VASSEUR'S OAK GROVE ESTATES 1ST & 2ND ADDITIONS CRACKFILLING $3,120 VASSEUR'S OAK GROVE ESTATES 3RD & 4TH ADDITIONS CRACKFILLING $1,878 OTSEGO ACRES 1ST & 2ND ADDITIONS CRACKFILLING $2,221 GREAT RIVER ACRES 1ST,2ND & 3RD ADDITIONS CRACKFILLING $2,697 "COUNTRY ROADS" " PATCHING $5,000 2003 MAINTENANCE SUBTOTAL $24,796 TOTAL ESTIMATED MAINTENANCE COST $264,761 Page 4 ITEM 7.2 Municipalities Unencumbered Amount Available 12-31-97 Unencumbered Amount Available 12-31-98 Difference Between 1997 and 1998 Percentage of Total Amount in 1998 Account Ratio to City's 1998 Construction Allotment North Mankato $0 $0 $0 0.0000 0.0000 North St. Paul 65,625 0 (65,625) 0.0000 0.0000 )rthfield 711,858 803,785 91,927 1.7923 2.6644 mak Grove 0 0 0 0.0000 0.0000 Oakdale 0 0 0 0.0000 0.0000 Orono 686,185 513,502 (172,683) 1.1450 2.0155 Otsego 762,911 993,913 231,002 2.2163 4.4918 Owatonna 0 0 0 0.0000 0.0000 Plymouth 0 0 0 0.0000 0.0000 Prior Lake 684,598 313,295 (371,303) 0.6986 0.9540 Ramsey 685,006 1,008,450 323,444 2.2487 2.2389 Red Wing 0 0 0 0.0000 0.0000 Redwood Falls 75,740 208,630 132,890 0.4652 1.5958 Richfield 2,542,856 2,287,265 (255,591) 5.1003 3.1798 Robbinsdale 0 166,389 166,389 0.3710 0.4963 Rochester 714,722 969,847 255,125 2.1626 0.5868 Rosemount 400,471 89,713 (310,758) 0.2000 0.1948 Roseville 1,056,551 0 (1,056,551) 0.0000 0.0000 St. Anthony 502,914 134,314 (368,600) 0.2995 0.8755 St. Cloud 0 0 0 0.0000 0.0000 St. Louis Park 0 0 0 0.0000 0.0000 St. Michael 5,996 199,414 193,418 0.4447 0.8885 -` Paul 0 0 0 0.0000 0.0000 Paul Park 269,430 395,431 126,001 0.8818 0.0000 6t. Peter 696,809 221,712 (475,097) 0.4944 0.7493 Sartell 0 0 0 0.0000 0.0000 Sauk Rapids 0 0 0 0.0000 0.0000 Savage 0 325,425 325,425 0.7257 0.6365 Shakopee 106,202 278,776 172,574 0.6216 0.7778 Shoreview 95,910 0 (95,910) 0.0000 0.0000 Shorewood 1,196,942 1,356,588 159,646 3.0250 7.8981 South St. Paul 1,849,935 1,949,517 99,582 4.3472 5.6694 Spring Lake Park 0 0 0 0.0000 0.0000 Stewartville 0 106,649 106,649 0.2378 0.0000 Stillwater 415,634 505,458 89,824 1.1271 1.7300 Thief River Falls 394,331 447,938 53,607 0.9988 1.2665 Vadnais Heights 0 0 0 0.0000 0.0000 Virginia 0 0 0 0.0000 0.0000 Waite Park 0 0 0 0.0000 0.0000 Waseca 50,623 98,509 47,886 0.2197 0.4933 West St. Paul 0 79,082 79,082 0.1763 0.2212 White Bear Lake 0 0 0 0.0000 0.0000 Willmar 804,543 1,233,415 428,872 2.7504 2.8327 ,lona 364,330 655,581 291,251 1.4619 1.2343 jodbury 0 0 0 0.0000 0.0000 Worthin ton 971,073 668,511 302.562 1.4907 2.4717 TOTAL $49,110,546 $44,845,521 54,265,025 100.0000 0.6413 -54- MUNICIPALITY North Mankato North St. Paul Northfield Oak Grove Oakdale TOTAL APPORTION- MENT $416,983 337,786 448,628 281,634 648,571 TRUNK HIGHWAY TURNBACK MAINTENANCE ALLOWANCE AMOUN ' BOND INTEREST APPLIED TO MAINTENANCE $96.678 28,217 GENERAL MAINTENANCE ALLOCATION $31,274 84,447 112,157 23,835 133,926 TOTAL MAINTENANCE ALLOCATION $127,952 # 84,447 112,157 23,835 162,143 #### CONSTRUCTION ALLOCATION $289,031 253,339 336,471 257,799 486,428 Orono 355,988 88,997 88,997 * 266,991 Otsego 306,366 76,592 76,592 * 229,774 Owatonna 638,545 26,265 26,265 612,280 Plymouth 1,706,058 65,475 65,475 1,640,583 Prior Lake 442,053 110,513 110,513 * 331,540 Ramsey 614,790 85,000 85,000 # 529,790 Red Wing 672,345 235,321 235,321 ** 437,024 Redwood Falls 209,926 52,482 52,482 * 157,444 Richfield 958,768 239,692 239,692 * 719,076 Robbinsdale 348,895 15,090 15,090 333,805 Rochester 2,352,388 250,000 250,000 # 2,102,388 Rosemount 545,332 22,090 27,900 49,990 ### 495,342 Roseville **** 1,026,955 256,739 256,739 * 770,216 St. Anthony 235,502 58,876 58,876 * 176,626 St. Cloud 1,794,713 $8,784 28,986 71,925 109,695 ### 1,685,018 St. Louis Park 1,268,123 443,843 443,843 ** 824,280 St Michael 314,377 78,594 78,594 * 235,783 St. Paul 8,495,366 2,633,563 2,633,563 *** 5,861,803 St. Paul Park 168,390 42,098 42,098 * 126,292 St. Peter 367,203 17,550 17,550 349,653 Sartell 246,891 7,440 7,440 239,451 Sauk Rapids 279,710 15,255 15,255 264,455 Savage 597,304 78,825 14,310 93,135 ### 504,169 Shakopee 483,188 120,797 120,797 * 362,391 Shoreview 588,426 20,745 20,745 567,681 ITEM 7.3 CITY OF OTSEGO RESOLUTION RESOLUTION APPROVING PLANS & SPECIFICATIONS AND ORDERING ADVERTISEMENT OF BIDS WHEREAS, pursuant to a resolution passed by the Council, Hakanson Anderson Associates, Inc., the City engineer, has prepared plans and specifications for Phase I Trunk Sanitary Sewer and Watermain Project, and has presented such plans and specifications to the Council for approval; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO, MINNESOTA: 1. Such plans and specifications, a copy of which is attached hereto and made a part hereof, are hereby approved. 2. The City Clerk shall prepare and cause to be inserted in the official paper and in the Construction Bulletin an advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall specify the work to be done and shall state that bids will be opened at 11:00 a.m., on April 6, 1999, in the council chambers of the city hall. No bids will be considered unless sealed and filed with the clerk and accompanied by a cash deposit, cashier's check, bid bond or certified check payable to the City for five (5) percent of the amount of such bid. Mayor Clerk C:\Share\WPmuni\AOTSEGO\612\ot612res2.doc Hakanson Anderson Assoc., Inc. `wil & Municipal Engineering I Surveying 3601 Thurston Avenue Suite 101 Anoka, Minnesota 55303 612/427-5860 612/427-0520 Fax MEMORANDUM ITEM 7.3 TO: Larry Koshak, Otsego City Engineer FROM: John A. Harwood, PE DATE: February 17, 1999 RE: Phase I Trunk Sewer & Watermain Project Plans & Specs Enclosed are plans for the Phase I Trunk Sewer & Water Project. These are substantially the same as the plans dated 5/26/98, which were previously reviewed by the City council. The major revisions are related to the final location, of the water tower and Pumphouse No. 1. We have also deleted three jacked sewer & water utility line crossings of CR 42. The enclosed plans incorporate the details for sewer and water appurtenances as have been recommended for City of Otsego adoption. The project specifications are not enclosed. They follow MnDOT and City Engineer Association of Minnesota (CEAM) Standards. The specifications will be completed with a final quantity takeoff, cost estimate and schedule of structures and will be prepared prior to bidding. The schedule for start of construction is dependent on acquisition of right-of-way or easement. We expect that many if not most easements will be acquired through negotiation but that some property access will not be available until after the 90 day Eminent Domain period, which will and in mid-May. The recommended schedule is as follows: Council Receipt of Plans Feb 22, 1999 Final Council Approval March 8, 1999 Advertisement Period — 21 days Bid Opening Date Tuesday April 6, 1999 Council Consideration of Bids and Award April 12, 1999 Completion of Contract Execution and Notice to Proceed May 1, 1999 Full Availability of all Right -of -Way & Easement May 20, 1999 Substantial Completion (120 days) Sept. 17, 1999 Full Completion November 1, 1999 Final Punch List & Warranty Work Spring 2000 The sewer and water system can be ready for service on or about September 17, 1999. This is before the scheduled completion of the treatment facility. The city could consider allowing sewer hookups early by providing "honey wagon" service from the Quaday at CR 42 sewer lift station to disposal. The cost of this trucked disposal needs to be evaluated. I strongly recommend that the City reconsider the �rovision of sewer service to the west side of County Road 42 at 85th, at future 87th and at 88tF. These jackings of sewer and water have current estimated costs near $50,000 each. In the future, due to difficulties of re -constructing facilities, the crossing costs will increase by about 50%. This future expenditure will likely be a 100% trunk cost, to be funded solely by connection income. If sewer and water service west of CR 42 is likely to be needed within 10 years or so, the crossings should be made now. CAS hare=Pmuni\AOTSEGO\612\ot6121k 1.doc CITY OF OTSEGO REQUEST FOR COUNCIL ACTION AGENDA SECTION: DEPARTMENT: MEETING DATE: DEPARTMENT: PREPARED BY: MEETING DATE 8.Andrew MacArthur, City Attorney: EB Council 2/22/99 6:30PM ITEM NUMBER: ITEM DESCRIPTION: 8.1. Resolution Authorizing Condemnation for Odean Avenue Road Project. 8.2. Review Proposed Bonestroo Contract 8.3. Any Other Legal Business BACKGROUND* No.8.land 8.2 Above: Attached in the information from Andy MacArthur. He will be present to explain and answer any questions you may have. RECOMMENDATION: This is for Council consideration and Mr. MacArthur will explain which items he needs action on. Thanks, Elaine Michael C. Couri• COURI & MACARTHUR Andrew J. MacArthur Attorneys at Law Marcus W. Miller 705 Central Avenue East PO Box 369 amu° Unnued in nfinois St. Michael, MN 55376-0369 (612) 497-1930 (612) 497-2599 (FAX) counandmacarthur@pobox com February 17, 1999 City Council Members City of Otsego c/o Elaine Beatty, City Clerk 8899 Nashua Avenue NE Elk River, MN 55330 RE: Proposed Condemnation Resolution For Odean Avenue Dear Council Members: Please find enclosed a proposed resolution authorizing condemnation for Odean Avenue. I am recommending that this resolution be considered at the next Citv Council meeting. At this time all appraisals for Odean Avenue have not been completed, and the right of wav agents leave not yet been able to make offers to the property owners since they are still working on the sewer and water collection system easements. I will be available to further discuss the resolution and condemnation process at the regularly scheduled City Council meeting on Monday night. Very troy_ yours, Air drew J./NYacArthuf COURI A MACARTHUR Encl. cc: Larry Koshak, John Harwood, Hakanson Anderson Matt Storm, Evergreen Mike Robertson, City Administrator CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION AUTHORIZING PROCUREMENT OF PERMANENT AND TEMPORARY CONSTRUCTION EASEMENTS AND OTHER LANDS FOR IMPROVEMENTS TO ODEAN AVENUE BY EMINENT DOMAIN WHEREAS, -the City of Otsego proposes to construct and improve Odean Avenue; and WHEREAS, the improvements consist of a bituminous overlay and reconstruction of the roadway, including necessary storm water drainage improvements, retention and holding pond areas, and a bike path parallel or along the roadway of said Odean Avenue; and WHEREAS, certain permanent roadway easements, drainage and utility easements, land parcels, and temporary construction easements are required to construct said Odean Avenue as set forth on Exhibit A hereto attached; and WHEREAS, the City has authority to acquire said easements by eminent domain pursuant to Minn. Stat. 117.011 and 117.042; and WHEREAS, the City has the right to acquire the easements prior to the filing of an award by the court appointed Commissioners, pursuant to Minn. Stat. 117.011 and 117.042; and WHEREAS, the land over which said permanent roadway easements, utility and drainage easements, separate parcels, and temporary easements are required is owned by the following persons (See Exhibit A); and WHEREAS, the following have an interest in said lands (See Exhibit B); and WHEREAS, the City has contracted with Evergreen Land Services to negotiate said easements and acquisition of parcels; and WHEREAS, Evergreen Land Services has, as of this date, been unable to successfully negotiate the acquisition of the required easements and land parcels. NOW THEREFORE BE IT RESOLVED, that the City of Otsego City Council hereby authorizes the acquisition of said land by eminent domain and to take title and possession of that land prior to the filing of an award by the Court appointed Commissioners, pursuant to Minn. Stat. 163.02, Subd. 2, 117.011 and 117.042; and BE IT FURTHER RESOLVED, that the City Attorney is requested to file the necessary Petition therefor, and to prosecute such action to a successful conclusion or until it is abandoned, dismissed, or terminated by the City or the Court. Motion to adopt this Resolution made by . this IN FAVOR: OPPOSED: ATTEST: Elaine Beatty City Clerk day of and seconded by Council Member 1999. CITY OF OTSEGO Larry Fournier Mayor Michael C. Couri- Andrew J. MacArthur Marcus W. Miller *,41w teemed in nfinou February 17, 1999 City Council Members City of Otsego c/o Elaine Beatty, City Clerk 8899 Nashua Avenue NE Elk River, MN 55330 COURT & MACARTHUR Attorneys at Law 705 Central Avenue East PO Box 369 St. Michael, MN 55376-0369 (612) 497-1930 (612) 497-2599 (FAX) couriandntacarthurOpobox. com RE: Proposed Agreement between Bonestroo and Otsego For Construction Inspection Services Dear Council Members: Enclosed please find a copy of the proposed Agreement for Construction Observation between the City of Otsego and Bonestroo, as discussed at a previous City Council meeting. Since I just received the proposed agreement in the mail today I have not yet had a chance to review the document. I will provide the Council with my comments at the vlonday City Council meeting. It is my understanding that Ted Field from Bonestroo will be in attendance at the meeting. Very truly yours, Anch-ew J. MacArthur COURI & MACARTHUR Encl. cc: Ted Field, Bonestroo Mike Robertson, City Administrator FEB Bonestroo Rosene Letter of Transmittal A,=ci Anderlik & Assodates Engineers & ArMtects Date: February 11, 1999 We are sending you: Project. City of Otsego WWTF ® Attached ❑ Under Separate Cover File No: 50398003 To: Andrew MacArthur Couri & MacArthur 705 Central Ave E P.O. Box 369 St. Michael, MN 55376-0369 Re: PROFESSIONAL SERVICE AGREEMENT ❑ Shop Drawings ❑ Specifications ❑ Plans ❑ Copy of Letter ❑ Samples ❑ Change Order u Copies I Description Code 1 Between City of Otsego and Bonestroo, Rosene, Anderlik & Associates, Inc. 4 These are transmitted: (See Code) 1. For approval 5. No exceptions taken 9. Submit _ copies for distribution 2. For your use 6. Make noted corrections 10. Return _ corrected prints 3. As requested 7. Amend and resubmit 11. For Bids Due: 4. For review and comment 8. Resubmit _ copies for review 12. Remarks: Signed: 4 Bonestroo, Rosene, Anderlik and Associates, Inc. St. Paul Office: Milwaukee Office: Rochester Office: 2335 West Highway 36 1516 West Mequon Road 2222 Hwy 52 North St. Paul, MN 55113 Mequon, WI 53092 Rochester, MN 55901 Phone: 651-6364600 Phone: 414-241-4466 Phone: 507-282-2100 Fax: 651-636-1311 Fax: 414-241-4901 Fax: 507-282-3100 Willmar Office: 205 5th Street SW Willmar, MN 56201 Phone: 320-214-9557 Fax: 320-214-9458 St. Cloud Office: 2008 8th St. North St. Cloud, MN 56303 Phone: 320-251-4553 Fax: 320-251-6252 February 11, 1999 City of Otsego 8899 Nashua Ave NE Otsego MN 55330 Attn: Mike Robertson, City Administrator Re: Wastewater Treatment Plant Engineering Agreement Our File No. 50303 Dear l fike: Enclosed are two signed copies of the engineering agreement for construction services related to the wastewater treatment plant. A copy has been sent separately to Andy tifacArthur for his review_ The agreement includes full-time inspection services. Ii acceptable, please signboth copies and return one to our office. SLrcert-.l�', BONESTROO, ROSEINTE, AINDERLIK & ASSOC'L�kTES, PNC. Ted K. Field Incl 2335 West Highway 36 ■ St. Paul, MN 55113 ■ 651-636-4600 ■ Fax: 651-636-1311 Bonestroo 60neS000. Rose -e Anderhk and Associates, Inc. is an Affirmative ACtlon/Eoual O000rrumry Employer PrIrCICAIS Ott: = 3onestroo. PE • Icsepn C. Ancerlik. PE. • Marvin L. Sorvala. PE. Richard E 'urre'. '_. • Glenn R. rook. PE. • Robert G. Scnunicnt. P.E. •Jerry A. Bourder. PE. Rooert IN NEWRosene Rose-e,'E. and Susan M Eoerhn. C.PA.. Senior Consultants Anderlik & Associate Pnncars Howard A. Sanford. PE. • Kean A. Gordon, PE. • Rooert R. Pfefferfe. PE. Ricnarc '.V Fos%'E • David O. Loskota. PE. Rooert C. Russek. A.I.A. • Mark A. Hanson. P.E. Associates Micnael i Rau,- arn. PE. • Ted K. Fte'd. PE. • Kennetn P Anderson. PE. • Mark R. Roifs. ?c , Sidney P Wtlhar-scn. PE.. LS. • Rooert F Kotsmitn • Agnes M. Ring • Micnael P Rau. ?E. Allan lick Schm:c:. PE. Engineers & Architects Offices: St.'au: P:cnester. Willmar and St. Cloud. MN • ,Milwaukee. ` l weos;te ww.vc:^estroo.com February 11, 1999 City of Otsego 8899 Nashua Ave NE Otsego MN 55330 Attn: Mike Robertson, City Administrator Re: Wastewater Treatment Plant Engineering Agreement Our File No. 50303 Dear l fike: Enclosed are two signed copies of the engineering agreement for construction services related to the wastewater treatment plant. A copy has been sent separately to Andy tifacArthur for his review_ The agreement includes full-time inspection services. Ii acceptable, please signboth copies and return one to our office. SLrcert-.l�', BONESTROO, ROSEINTE, AINDERLIK & ASSOC'L�kTES, PNC. Ted K. Field Incl 2335 West Highway 36 ■ St. Paul, MN 55113 ■ 651-636-4600 ■ Fax: 651-636-1311 PROFESSIONAL SERVICES AGREEMENT Between CITY OF OTSEGO and BONESTROO, ROSENE, ANDERLIK AND ASSOCIATES, INC. THIS IS AN AGREEMENT, effective on February . 1999, between the City of Otsego, Minnesota ("Cihj") and Sonestroo, Rosene, Anderlik and Associates, Inc., St. Paul, MN ("Engineer'), for professional encineering services. City and Engineer agree as follows. SECTION 1. PROJECT DESCRIPTION AND UNDERSTANDING The "Project" consists of construction of a 200,000 gpd wastewater treatment facility as designed by and depicted in the plans and specifications prepared by the Engineer. The estimated construc5on cost is S2.3 million for the new facility. SECTION 2. ENGINEER'S SERVICES 2.1. Scooe of Basic Services The Encireer shall provide Basic Services as outlined in Appendix A, Section 1. 2.2. Supplemental Services As described in Appendix A, Section 2, if requested and authorized in advance by the City, the Engineer may furnish "Supplemental Services", services which are not included as Basic Services. Engineer shall submit a description and an estimate of the cost for any City--equested Supplemer,al Services for the City's written approval prior to commencement of the work. SECTION 3. COMPENSATION 3.1. Payment for Basic Services For completion of the Engineer's Basic Services as outlined in Appendix A„ the City will pay the Engineer on an hourly basis in accordance with the Billing Rate Schedule attached as Appendix C, plus reimbursable expenses. Engineer's labor costs are estimated to be $189,000 but actual costs may vary. Engineer's level of services (and thus, actual charges) will depend in part on such currently unknown factors as quality and responsiveness of the Contractor, weather conditions and adherence to the construction schedule, and unforeseen site conditions that may be reveaied during construction. 3.2. Payment for Supplemental Services For Supplemental Services authorized by the City and performed by the Engineer, the City will pay the Engineer on an hourly basis in accordance with the Billing Rate Schedule attached as Appendix C, plus Reimbursable Expenses. W DATAWSERWK7AGM0tsego A3 096.doc SECTION 4. STANDARD TERMS AND CONDITIONS The Standard Terms and Conditions attached as Appendix B are incorporated in this Agreement. .......................... H.......... H H....1 H..*......... IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement as of the day and year first above written. ENGINEER: BONESTROO, ROSENE, ANDERLIK & ASSOCIATES, INC. � � 1 By Ma in L. Sorvala, President Date `1 CITY: CITY OF OTSEGO, MINNESOTA By Larry Fournier, Mayor Date And by Mike Robertson, Administrator Date \\l DATA\USER\MKTPAGR\Otsego A3 0%.doc 2 Appendix A Engineer's Services Section 1. Basic Services Task 1 - Bidding and Award Purpose: To assist the City in obtaining construction bids and awarding a construction contract to the lowest responsive bidder. 1.1 Prepare bid proposal and contract forms 1.2 Issue bid advertisement 1.3 Hold pre-bid conference with prospective bidders 1.4 Issue addenda if necessary 1.5 Receive bids 1.6 Analyze bids and recommend award Task 2 - Contract Administration Purpose: To develop channels of communication between the contractor, City staff, and Engineer; to :keep the City informed about the progress of construction; and to review and approve shoo drawings. 2.1 Organize, attend and assist the City at the pre -construction conference with the successful bidder, and any other parties, bodies, or agencies who have an interest in the Project. 2.2 Review shoo drawings, samples and other submittals. Engineer shall review shoo drawings, samples and other submissions of the Contractor solely for their general compatibility with the Engineer's design intent and conformance with information given in the Contract Documents. The Engineer shall net be res,ccnsibie for any aspects of a shop drawing submission relating to the duties of the Contractor (such as the means, methods, techniques, sequences and operations of construcnon, safety precautions and programs incidental thereto) ail of which are the Contractor's responsibility, and not the responsibility of the Engineer. 2.3 Review the Contractor's request for progress payments, advise the City in writing as to the Engineer's opinion of the extent of the work completed in accordance with the terms of the Construction Contract, and issue for processing by the City ail requests for payment. 2.4 slake recommendations to the City as to all claims relating to the execution and progress of the construction work. 2.5 Issue such additional instructions to the Contractor as may be necessary to interpret the drawings and specifications or the illustrated changes required in the Contractor's work. 2.6 After consulting with the City, prepare Change Orders for work not covered by the Contract or for substantial over -run of estimated 'contract quantities" as defined in the Project's Contract Documents, for the City's approval and execution. Change Orders shall be processed as soon as practical after the City provides written approval to the Engineer. The City understands that Change Orders may be required during a Project for many reasons, including because of incompleteness, errors, or ambiguities in the Construction Documents. The Engineer shall not be liable for any type or quantity of Change Orders that are within professional standards. In no event shall the Engineer be responsible for paying the cost of a Change Order or other change to the extent that it would have been otherwise necessary to the Project or otherMse adds value or betterment to the Project. \\10A7AWSERWK71AGR10tseg A3 096.doc A - 1 2.7 Conduct bi-weekly construction progress reviews with the Contractor and the City related to the Contrectcr's date of completion. Task 3 - Construction Observation Purpose: To endeavor to assure that the plant is constructed in conformance with the plans and specifications. 3.1 Perform on-site construction observation as necessary to become generally familiar with the progress and quality of the contractor's work and to determine if the work is proceeding in general accordance with the Contract Dcc=ents. The City has not retained the Engineer to make detailed inspections or to provide exhaustive or continuous Project review and observation services. Further, the Engineer does not supervise or have control over the Contractor's work, the means or methods of construction, or safety precautions in connection with the work. As a result, the Engineer does not guarantee the performance of a contractor, and has no responsibility for the acts or omissions of any contractor, subcontractor, supplier or any other entity furnishing materials or performing any work on the Project. 3.2 Act as City's liaison with contractor 3.3 Maintain field records > Record of site visits and observations > Phone call log > Weather conditions > Meetings, discussions, observations and decisions > Photograph project progress and underground construction details 3.4 Provide monthly reports to City 3.5 Coordinate periodic field tests during the course of construction 3.6 Endeavor to assure that record plans are being maintained by all contracting forces T^e Engin3er's review of the Contractor's work (including reviewing the Contractor's shop drawings and samples, work product and requests for payments) do not increase the responsibility or duties of the Engineer beyond those explicitly described elsewhere in this Agreement. By making these review efforts, the Engineer does not guarantee the performance of the Contractor or assume responsibility for any acts or omissions of the Contractor, including any failure of the Contractor to properly perform its work or comply with its obligations, and the City's sole remedy for the Contractor's acts or omissions is from the Contractor and not the Engineer. Task 4 - Contract Close Out Purpose: To neip train plant operators; to endeavor to provide a successful transition from construction I o operation; to certify that construction is complete prior to final payment. 4.1 Prepare operation and maintenance manuals regarding operating and maintaining equipment, machinery and apparatus installed as part of the Project. Such instructions shall be supplied by the Contractor and manufacturers' representatives. 4.2 Provide plant start-up services. 4.3 Assist with training of operators. 4.4 Conduct an inspection to determine if the work is substantially complete. On the basis of its on-site observations, the Engineer shall prepare a "punch list" for the Contractor, listing work left to be completed by the Contractor. \\1 DATAWSER\MKMAGR\01sego A3 096.doc A-2 A .5 Conduct, in the presence of the City's Representative, a final inspection of the Project as constructed to determine whether it: 1) Generaiiy conforms with the Engineer's design concept of the Project as contained in the Contract Documents, and 2) Appears to be constructed in accordance with the Contract Documents. The Engineer shall certify a recommendation for acceptance of the work to the City and then shall forward to the City a written approval of the Contractor's Request for Final Payment which shall be signed by the Contractor. 4.6 Prepare and furnish the City a set of reproducible "Record Plans" of the Project showing those changes the Engineer considers significant which were made during the construction process, based on marked -up prints, drawings, and other data fumished by the Contractor, upon which the Engineer may rely in preparing the Record Plans. Section 2. Potential Supplemental Services If authorized in advance by the City, the Engineer may provide the following Supplemental Services: 2.1 klaking revisions in drawings, specifications or other documents when such revisions are: 2.1.1 Requested by the City and inconsistent with approvals or instructions previously given by the City; 2.1.2 Required by the enactment or revisions of codes, laws or regulations subsequent to the preparation of such documents; 2.1.3 Due to changes required as a result of the City's failure to render decisions in a timely manner; or 2.1.4 Due to any other causes beyond the Engineer's control. 2.2 Providing consultation regarding the replacement of all such parts of the Project as may be damaged by fire or other cause during construction and assisting the City in arranging for continuation of the work should the Contractor default for any reason. 2.3. Providing services made necessary by the default of a Contractor, by major defects or deficiencies in the work of a Contractor, or by failure of performance of either the City or a Contractor under the Contract for construction. 2.4 Construction dispute resolution assistance. 2.5 Providing services in connection with warranty work to be done by the Contractor. 2.6 Providing one or more full-time Resident Project Representatives (and assistant[sj) in order to provide the City with continuous representation at the Project site during the Construction Phase_ 2.7 Assisting the City or its representative in connection with mediation, arbitration, litigation or other proceedings involving the Project, including preparing to testify and testifying as an expert witness. 2.8 Providing any other service not otherwise included in Basic Services or not customarily furnished in accordance with generally accepted engineering practice. \\1 OATA\USER\MK7AGR\Otsego A3 096.doc A-3 Appendix B Standard Terms and Conditions SECTION 1. ENGINEER'S SERVICES ccrings, probirgs and subsurface explorations; -•,drographic surveys, laboratory tests and inspections of Engineer shall act as the City's ('Cwner's') agent only as samples, materials and equipment; appropriate provided for within this Agreement. professional interpretations of all of the foregoing; property, boundary, easement, and right-of-way surveys SECTION 2. THE OWNER'S RESPONSIBILITIES and property descriptions; zoning and deed restrictions. The Owner shalt: 1) Provide full information as to its requirements for the Project. 2) 3) 51 Fumish to the Engineer, prior to any performance by the Engineer under this Agreement, a copy of any planning, design and construction standards which the Owner shall require the Engineer to follow in the conduct of its services for the Project. Place at Engineer's disposal all available written data in the possession of or readily available to the Owner and pertinent to the Project, including existing reports, plats, surveys, contour mapping, utility mapping, record plans, ,.vetlands, land -use, and zoning maps, bcrirgs and other data useful to the Engineer in the performance of its services. Acquire all land, easements, and rights-cf-way and provide for land surveys and the preparation of legal descriptions and exhibits, certificates or plats. as may be necessary for the Project. 5) -rovide access to the Project site and make all provisions for the Engineer to enter upon public and private lands as required by the Engineer to perorm its se.riices. o) 7) N N Examir.e all studies, reports. sketc"res. Cpinions of Probable Construction Costs. specifications, drawings, proposais and other documents presented by the Engineer and render a decision when necessary within a reasonable period of time. Designate a single person to act as the Owner's Representative with respect to the Engineer's services. Such person shall have comciete authority to transmit instructions, receive information, and interpret and define the Owner's policies and decisions with respect to services covered by this Agreement, subject to Owner's governing body approval when required by law. Give prompt written notice to the Engineer whenever the Owner has actual knowledge of any defect in the Project. or has actual knowledge of any circumstance that affects the scope or timing of the Engineer's services. Fumish, or instruct the Engineer to provide at the Owner's expense, necessary "Supplemental Services' as may be provided for in this Agreement, or other services as they may be required. 10) Fumish to the Engineer, as required by the Engineer for performance of its services, information or consultations not covered in the Engineer's Basic Services, such as core 11) Fumish approvals and permits from all governmental authorities having jurisdiction over the Project, except for these permits and approvals for which the Engineer will be responsible for providing submittals under this Agreement, and such approvals and consents from others as may be necessary for completion of the work. 12) Fumish inspection or monitoring services as the Owner desires to verify that Contractor is complying with all laws or regulations and to verify that Contractor is taking all necessary safety precautions to protect persons and property, as the Engineer in this Agreement does not undertake to perform these services. In per-orming its services, the Engineer may rely upon the accuracy and completeness of all Owner -provided information, unless the Engineer has knowledge that the information may not be complete or accurate. SECTION 3. COMPENSATION 3.1 Payment for Reimbursable Expenses Unless otherwise provided, in addition to Engineering fees. the Owner will pay the Engineer for reasonable Reimbursable Expenses on the basis of the Engineer's cost. Although not a complete list, examples of Reimbursable Expenses include: the tests of plotting drawings and the reproduction of drawings and scecifications: project -specific printing, duplicating, tabs and indexes; testing; mileage; travel and per -diem expenses of the Engineer for out-of-town trips required for the Project; long distance telephone calls and faxes as required to expedite the work; the costs for cellular phone calls/service for Engineer's field personnel on a Project; project photographs taken before and during construction; construction stakes; postage and delivery charges; and out-of-pocket expenses incurred directly for the Project. 3.2. Obiections to Invoices/No Deductions It is important for the Engineer to be promptly informed of problems. If the Owner objects to any portion of an invoice, the Cwner shall notify the Engineer in writing within twenty days of the invoice's receipt. The Owner agrees to pay any portion of the invoice which reasonably appears to be undisputed, but reserves the right to later contest any portion of the invoice if it is later discovered that the work was not complete or was not done correctly. 3.3 Suspension of Work If the Owner fails to make payments when due or otherwise breaches this Agreement, the Engineer may suspend work after providing five days notice to the Owner. The Engineer will not be liable for any costs or damages resulting from such \\1CA7A\USERIA1KT\AGR`Ct5eg0 A3 096.doc B-1 a suspension of work. If the Engineer fails to timely perform, or otherwise breaches this Agreement, the Owner may stop ,yment to the Engineer and take whatever steps necessary to 7,plete the Project, including contracting with another _-gineer for timely completion of the Project. In the event of such a breach by the Engineer, any additional payment to the Ergineer will have deducted from it costs incurred by the city in remedying the breach. 3.4. Progress Payments The Engineer will submit a property documented invoice when it has completed the services described in § 1.5 of Appendix A to this Agreement or April 30, 1998, whichever comes first. The Owner shall make payment of all undisputed portions of that invoice (and later invoices, if such invoice is not for all services contemclated under this Agreement) within 30 days after the Owner's receipt of such invoice, subject to Section 3.2 of this Appendix. Owner may not reserve as retainage any portion of a payment due and owing under this Agreement 3.5. Interest/Collection Costs The Owner agrees to pay the Engineer 1% per month interest on all portions of Engineer's invoices which are due and owing, with interest beginning to accrue 30 days after the date of the invoice. Engineer agrees to pay all subcontractors on the Project within ten (10) days of receipt of payment of its invoice. SECTION 4. GENERAL CONSIDERATIONS '. Standard of Care . ,:e Engineer shail exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under like circumstances. 4.2. Delays cell the Engineer and the Owner will put forth reasonable ef;crs to compiete their respective duties in a timely manner. Secause the Encineer's performance must be governed by sound professional practices, the Engineer is not responsible fcr delays occasioned by factors beyond its control or that could not reasonably have been foreseen at the time of preparation of this Agreement.. 4.3. Ooinions of Costs and Schedules S.-ce the Engineer has no control over the cost of labor and material or over competitive bidding and market conditions, the Engineer's Opinion of Probable Construction Cost and of Project schedules can only be made on the basis of experience or qualifications as a professional Engineer. The Engineer does not guarantee that proposals, bids, actual Project costs or construction schedules will not vary from Engineers opinions or estimates. If the Owner desires greater assurance as to the anticipated Construction Cost of the Project, the Owner shall employ, or instruct the Engineer to provide as a Supplemental Service, an independent cost 'imator. 4. Insurance 4.4.1. The Engineer agrees to maintain a professional liability insurance policy for negligent acts, errors or omissions in an amount of at least 52,000,000 annual aggregate, on a claims -made basis as long as such insurance is reasonably available. 4.4.2. The Engineer shall maintain 1) Statutory workers compensation and employers' liability insurance coverage. 2) Comprehensive general liability and automobile liability insurance coverage in the sum of not less than S1,000,000 each. 4.5. Ownership of Instruments of Service 4.5.1 Documents (including Electronic Data) prepared by the Engineer, such as drawings, specifications and reports ("Engineering Documents") are instruments of the Engineer's professional services, and not products. A printed copy of the reports, drawings, and specifications prepared under this Agreement shall become the property of the Owner upon completion of the services and payment of all amounts due and owing the Engineer. However, the Engineer retains its rights in standard drawing details and specifications, and in its field data, notes, databases, computer files, software, proprietary property and intellectual proper,/ developed or modified in the performance of its services, and further retains an unrestricted right to use the Engineering Documents in the course of its business. 4.5.2 The Engineering Documents are prepared for the Project and may not be used for other projects, except the Owner has the right to use the Engineering Cccuments for informational purposes or to illustrate the design and/or location of existing facilities for purposes of expansion, rehabilitation, or retrofit of the Project. Except as permitted herein, the Owner agrees it will not use the Engineering Cccuments for other purposes or provide them to other persons for purposes other than the Project. If the Owner violates :his provision by using the Engineering Documents for unallowed purposes and, as a result of such violation, damage occurs to it or others, it waives claims against the Engineer caused by such violation and agrees to defend and indemnity the Ergineer from claims pursued by others against Engineer if caused by such violation. 4.6. Electronic Data 4.6.1. If included in Basic Services er Supplemental Services and as a convenience to the Owner, the Engineer will furnish the Owner with electronic data versions of certain drawings or other written documents ("Electronic Data") provided in hard copy form. In the event of any conflict between a hard copy document and the Electronic Data, the hard copy document governs. The Electronic Data shall be prepared in the current software in use by the Engineer and is not warranted to be compatible with other systems or software. 4.6.2. Any Electronic Data submitted by the Engineer to the City is submitted for an acceptance period of 60 days ('Acceptance Period"). Any defects that the City discovers during this period and reports to the Engineer will be corrected by the Engineer at no extra charge. For correction of defects reported to the Engineer after the Acceptance Period. the City shall compensate Engineer on an hourly basis at Engineer's billing rates set forth in Appendix C. The City understands that 'd'CATAWSE.RIMKTAGR1,Otsegc A3 096.doc &2 the Electronic Data is perishable and the City is responsible for maintaining it. 7. Termination, Suspension or Abandonment 4.7.1 The Cvner or the Engineer may termirate or suspend :ris Agreemert. The terminating or susperding party shall ,airy the other party 14 calendar days prior :o the effective Zate of the termiration or suspension. 4.7.2 The Engineer and the Owner will cooperate if the ngineer's work is terminated, suspended or abandoned for any reason. In addition, the Owner shall timely pay the Engineer for services rendered and costs incurred, if they are �ue and owing under this Agreement. Services and costs shall .nclude only those due and owing, rendered and incurred up to :.`.e time of ter—urination, suspension or abandonment. In the event that the Engineer terminates, suspends, or abandons this Agreement, and the City has paid all amounts due and owing under this Agreement, then Engineer shall promptly supply the Owner with all documents, to the extent prepared or completed by Engineer, provided, however, if there is a dispute as to amounts due and owing to Engineer, Owner shall only be entitled to such documents after payment to a mutuagy agreeable escrow agent the amount claimed due and owing by Engineer, and Engineer and Owner shall promptly resolve such dispute pursuant to § 4.8 of this Appendix. 4.3. Dispute Resolution 4.8.1 In an effort to resolve any conflicts that arise out of :`a services under this Agreement, all disputes between the wrier and the Engineer arising out of or relating to this reement shall be submitted to nonbinding mediation prior to �mmencing ar^itration or litigation. 4.3.2 Unless the Owner and the Engineer mutually agree c:hervise, all claims, disputes, and other matters in question _::sing out of or relating to this Agreement which are not �asolved by mediation and where the amount in controversy is ess than S200.3CO3 shall be decided by bindir-g arbitration in azcordarce witli :.ne then -most current Construc5on Industry -ules of the An-er,can Arbitration Association. 1.8.3 In the event of litigation or arbitration arising from or riated to the services provided under this Agreement, the prevailing party is entitled to recovery of all reasonable costs incurred. including staff time, court costs, attomeys fees and c:her related expenses. ;.8.4. if the Engineer or the Owner intends to assert a claim against ire other as a result of a dispute with a third party, the c:aiming tarty s -ail notify the other party as soon as possible, and in any event prior to resolving the dispute with the third =arty. 4.9. Hazardous Substance -he Engineer's scope of services does not include any services related to hazardous or toxic materials, including asbestos and PCBs. If it becomes known that such materials ^ay be present at or near a Project that may affect the ngineers services, the Engineer may suspend performance its services, without liability, and will assist the Owner to .ain appropriate consultants to adequately identify and abate such materials so that Engineer's services may resume. 4.10. Governing Law This Agreement shall be governed by the laws of the State of Minnesota and any dispute shall be venued in the state or federal courts in Minnesota. 4.11. Integration This is an integrated Agreement and it supersedes all prior negotiations or agreements between the parties. It shall be modified only by a written document signed by the party sought to be bound. The provisions of this Agreement are severable, and if any provision is found to be unenforceable, the remaining provisions continue to be valid, and the unenforceable provision shall be reformed with a valid provision that comes as near as possible to expressing the intention of the unenforceable provision. 4.12. Assignment Except for the Engineer's use of necessary consultants, the Engineer and the Owner shag not assign or delegate their respective obfigations under this Agreement without the written consent of the other party, which consent shall not be unreasonably withheld. SECTION 5. LIABILITY Having considered the potential liabiiities that exist during the performance of the Engineer's services, the benefits of the Project, the Engineer's fee for its services, and the promises contained in this Agreement, the Owner and the Engineer agree that risks should be allocated in accordance with this section, to the fullest extent permitted by law. 5.1 Indemnification The Engineer and the Owner each agree to defend and indemnity each other from liability for claims, losses, damages or expenses (including reasonable attorney's fees) to the extent they are caused by their negligent acts, errors or omissions relating to this Agreement. In the event the claims, losses, damages or expenses are caused by the joint or concurrent negligence of the Engineer and the Owner, they shall be bome by each party in proportion to its own negligence. 5.2 Limitation of Liability The Engineer's and its employees' aggregate liability to the Owner for any and all claims, losses or damages arising out of any Project or this Agreement for any cause shall not exceed the total combined sum of 52,000,000. 5.3 deleted 5.4 deleted CATA11;S_RWK7; GR%0tseg0 A3 046.dcc B-3 Appendix C 1997 Billing Rate Schedule Classification Hourly Rate Senior Principal S94.50 Principal/Project Manager; Senior Scientisti 84.50 Registered Engineer/Architect/Landscape Architect; Natural i !Resource Specialist 73.50 Prosect Engineer/Architect/Landscape Architect/Scientist; Sr. :Field Supervisor i 64.50 j GIS Specialist; Senior Designer 1 63.50 Graduate Engineer/Architect/Scientist• Field Supervisor I 57.50 iSenior Drafter/inspector i 52.00 ! Inspector, Drafter, Senior Technician I 48.50 j Technician I 34.50 Word Processor I 34.00 JTotal Station Equipment 20.00 GIS Workstation Equipment I 20.00 GPS Equipment ( 50.00 / haff da !Attendance at City Council Meetings I 50.00 / meeting I I i (These rates are adjusted annually in accordance with the normal review 'procedures of Bonestroo. Rosene, Anderiik and Associates. Inc. \\1OATXUSERWKT'AGR\Otsego A3 096.doc C_1 CLAIMS LIST CITY COUNCIL MEETING FEBRUARY 22, 1999 TO: City Council Attached is the Claims List for your consideration. The grand total you are considering is as follows: Batch 02-22-99 $154,530.03* GRAND TOTAL $154,530.03* *The check issued to Maguire Iron for $66,600.00 and the check issued to Traut Wells for $24,599.06 were previously approved by the Council and are now being issued. If you have any questions or if you would like to review this list further, please let me know. Judy Hudson Deputy Clerk/Treasurer 18 Fab 1999 Claims List Page 1 Thu 6:51 AM CITY OF OTSEGO Na Batch Name 022299 ABRA AUTOBODY & GLASS AFFORDABLE SANITATION AIRGAS, INC. BEAR ALARMS BT OFFICE PRODUCTS CAROL OLSON CROW RIVER FARM EQUIPMENT CROW RIVER NEWS CUB FOODS ELK RIVER DJ'S HEATING & AIR CONO DJ'S TOTAL HOME CENTER EAST SIDE LEASING CO ECM PUBLISHERS INC ECM PUBLISHERS INC ECM PUBLISHERS INC ECM PUBLISHERS INC ELK RIVER PRINTING & PARTY PLU EVERGREEN LAND SERVICES CO G & K TEXTILE LEASING SYSTEM G & K TEXTILE LEASING SYSTEM G & K TEXTILE LEASING SYSTEM GLF- 'RUCK CENTER INC GM JLTANTS, INC. GROG„ uARY CPA H G WEBER OIL COMPANY HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC HAKANSON ANDERSON ASSOC INC ICMA RETIREMENT TRUST 1CMA RETIREMENT TRUST MAGUIRE IRON, INC. M E O I C A MEDICA MENARC3 MINNESOTA .MUTUAL Mi' 'A MUTUAL 10. Dept Description Hwys, Streets, & Roads Culture and Rec (GENERAL) Hwys, Streets, & Roads General Govt Buildings -8899 Administration Hwys, Streets, & Roads Administration Culture and Rec (GENERAL) Hwys, Streets, & Roads Hwys, Streets, & Roads Administration Administration Administration Administration Administration Administration Sanitary Sewer Construction General Govt Buildings -8899 Hwys, Streets, & Roads Hwys, Streets, & Roads Hwys, Streets, & Roads Sanitary Sewer Construction Finance Hwys, Streets, & Roads Water Utilities (GENERAL) Hwys, Streets, & Roads Hays, Streets, & Roads Sanitary Sewer Construction Sanitary Sewer Construction Sanitary Sewer Construction Sanitary Sewer Construction Sanitary Sewer Construction Engineer Engineer Engineer Sanitary Sewer Construction Sanitary Sewer Construction Administration Hwys, Streets, & Roads Administration Sanitary Sewer Construction Hwys, Streets, & Roads Administration Culture and Rec (GENERAL) Administration Hwys, Streets, & Roads Hwys, Streets, & Roads Comments Repair Glass Windshield Rental toilet unit Rental 1 Yr monitoring Office Supplies Reinbursement Medical Miscell supplies 2 Yr renewal Winter Fest supplies Repair water heater Miscell supplies Monthly rental Legal notice Legal ordinace 99-1 City Summary Budget Display Ad - facility Bldg Permits printed ROW Supplies Supplies Uniforms Miscell supplies Testing serines January Services Gas & Oil Well Y1 MSA Adm Culvert Mason Ave Well No 2 Design Well No 2 Extra Services Water Tower Construction Water Tower Const Extra Trunk Sanitary Sew Extra Miscell Engineering City Map Staff Meeting Pump House &Controls Pump House/Controls Extra Heritage Hills a Odean Ave Extra Service PPE 2-6-99 PPE 2-6-99 Water Tank & Tower Const Health Ins Health Ins Supplies Life Ins Life Ins Miscell supplies Transaction Batch Amount Name 216.25 022299 114.50 022299 12.66 022299 272.64 022299 52.42 022299 66.00 022299 21.99 022299 38.00 022299 169.40 022299 89.00 022299 10.97 022299 237.92 022299 35.36 022299 172.10 022299 205.10 022299 18.70 022299 81.47 022299 6,411.00 022299 100.56 022299 100.57 022299 171.92 022299 43.50 022299 882.50 022299 870.00 022299 1,707.40 022299 105.00 022299 632.50 022299 196.18 022299 1,147.50 022299 349.35 022299 595.00 022299 1,544.13 022299 1,934.75 022299 1,120.00 022299 43.88 022299 455.00 022299 4,682.29 022299 274.88 022299 37.50 022299 4,326.72 022299 422.39 022299 192.31 022299 66,600.00 022299 796.37 022299 1,742.42 022299 69.86 022299 26.85 022299 29.60 022299 29.78 022299 18 Feb 1999 C11111 Lilt Page 2 Th( 6:51 AM CITY OF OTSEGO Dept Transaction Batch No Description Comments Amount Name Batch Name 022299 NORTHERN Hwys, Streets, 3 Roads Miscell supplies 26.61 022299 NORTHERN Hwys, Streets, & Roads Miscell supplies 58.56 022299 NORTHWEST ASSOC CONSULTANTS Sanitary Sewer Construction Water Tower CUP 130.03 022299 NORTHWEST ASSOC CONSULTANTS Planner Miss Wild & Scenic Plan 608.35 022299 NORTHWEST ASSOC CONSULTANTS Planner General Planning Issues 300.89 022299 NORTHWEST ASSOC CONSULTANTS Planner Wild & Scenic Ord Task 8.50 022299 NORTHWEST ASSOC CONSULTANTS Planner Sanitary Sew System Plan 21.25 022299 NORTHWEST ASSOC CONSULTANTS Planner Zoning Ord Update 1,332.91 022299 NORTHWEST ASSOC CONSULTANTS Planner Meetings 600.00 022299 PRINCIPAL FINANCIAL GROUP Hwys, Streets, & Roads Insurance 82.23 022299 PRINCIPAL FINANCIAL GROUP Administration Insurance 183.85 022299 PUBLIC EMPLOYEES RETIREMENT FD PPE 2-6-99 320.25 022299 PUBLIC EMPLOYEES RETIREMENT FD Hwys, Streets, b Roads PPE 2-6-99 188.23 022299 PUBLIC EMPLOYEES RETIREMENT FO Administration PPE 2-6-99 161.03 022299 STATE CAPITAL CREDIT UNION PPE 2-6-99 Olson 141923 50.00 022299 SUPERIOR SERVICES Recycling Recylcing services 460.00 022299 TRAUT WELLS Sanitary Sewer Construction Pay estimate #1 24,599.06 022299 UNLIMITED ELECTRIC INC Hwys, Streets, & Roads Wired garage doors 313.50 022299 WEST SHERBURNE TRIBUNE Administration Display Ad Fac 13.40 022299 WRIGHT COUNTY AUDITOR -TREASURE Police -Contracted Patrol for Jan & Feb 21,253.15 022299 WRTr"' COUNTY HIGHWAY DEPT Hwys, Streets, & Roads Salt and Sand 4,361.44 022299 Grand Total 154,530.03