ITEM 3.9 Approve purchase of Wetland Credits0
Ot�e,ffo
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Public Works
City Engineer Wagner
May 26, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
City Administrator Johnson
3.9
AGENDA ITEM DETAILS
RECOMMENDATION:
Approve Purchase of Wetland Credits from the Minnesota Wetland Bank for replacement of wetlands
filled for 70th St Proiect.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
With the approval of the required wetland fill for the 70th Street Improvement, the City of Otsego must
meet the requirements of those approvals. Much of the wetland fill is eligible under the BWSR Road
Program. BWSR will use their wetland banks to replace portions of the street improvement deemed
required to meet street safety upgrades. Construction of a trail is not eligible under the BWSR Road
Program. The County portion of the wetland impact replacement is being met by the County's own
wetland banks and BWSR banks. The City's non -eligible wetland impact replacement amount, after the
2:1 factor is applied, is 35,724 square feet. We have inquired three wetland banks that meet the
criteria. The least expensive option we found was a bank owned by Mr. Brad Paumen. He will sell the
bank to the City of Otsego for $0.70 per square foot plus tax. This amounts to $26,628.66.
In the past, if a City project impacted a wetland, the replacement was completed as part of the project.
Agencies involved in the replacement have determined that the construction of large wetland
complexes (wetland banks) nearby to several projects better serve the natural resources than many
smaller ones scattered at each project site. Therefore purchasing of wetland bank credits is a preferred.
This also keeps City's from having to ensure proper development of the replacement wetlands that can
take up to 5 years.
SUPPORTING DOCUMENTS: X ATTACHED NONE
• Transaction Form for Withdrawal of Wetland Credits from the
Exhibit 1 showing eligible and non -eligible portions
0 Wetland Mapping
MOTION: (Please word motion as you would like it to appear in the minutes.)
Motion to Approve Purchase of Wetland Credits from the Minnesota Wetland Bank for replacement of
wetlands filled for 701h St Project.
BUDGET INFORMATION
FUNDING:
MSA
Federal Funds
ACTION TAKEN
BUDGETED: X YES
NO
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
The following is a sample of a possible Purchase Agreement for the sale of Wetland Banking Credits.
This Purchase Agreement does not necessarily cover all of the issues that would be important to Sellers
and Buyers, nor does it address the terms that would be appropriate for any particular transaction.
Sellers and Buyers should obtain the services of qualified legal counsel to adapt this Purchase Agreement
to meet their specific needs.
PURCHASE AGREEMENT
FOR
WETLAND BANKING CREDITS
THIS AGREEMENT is made this _27th day of May , 2015 between
Brad Paumen (Seller) and City of Otsego (Buyer).
Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, the wetland banking credits
(Credits) listed below:
CREDITS TO BE SOLD
Credit
Acres or
Wetland
Plant Community Type
Cost per
Sub-
Sq. Ft.
Circ. 39
Acre or Sq.
State Fee
Fee
Groups
1
Type
Foot
6.5%
Estimate
A
.49
2
Fresh meadow
$30,492
0.065
$971
B
.33
3
Shallow marsh
$30,492
0.065
$654
C.
0.065
D.
0.065
E.
0.065
Totals
82
$30,492
$1625
❑ Check
here if additional
credit sub -groups are part of this account and are listed on an attachment to this document.
'A separate credit sub -group shall be established for each wetland or wetland area that has different wetland characteristics.
'Circular 39 types: 1, 1L, 2, 3, 4, 5, 6, 7, 8, B, U.
3Wetland plant community type: shallow open water, deep marsh, shallow marsh, sedge meadow, fresh meadow, wet to
wet-mesic prairie, calcareous fen, open bog or coniferous bog, shrub-carr/alder thicket, hardwood swamp or coniferous
swamp, floodplain forest, seasonally flooded basin. See Wetland Plants and Plant Communities of Minnesota and
Wisconsin (Eggers and Reed, 1997) as modified by the Board of Water and Soil Resources, United States Army Corps
of Engineers..
2. Seller represents and warrants as follows:
a) The Credits are deposited in an account in the Minnesota Wetland Bank administered by the
Minnesota Board of Water and Soil Resources (BWSR) pursuant to Minn. Rules Chapter
8420.0700-.0760.
b) Seller owns the Credits and has the right to sell the Credits to Buyer.
Page 1 of 2
BWSR Form: wca-bank-12 (purchase agreement).doc
Revised 6/26/2014
Buyer will pay Seller a total of $ 25003.44 for the Credits, as follows:
a) $_ _ as earnest money, to be paid when this Agreement is signed; and
b) The balance of $_ to be paid on the Closing Date listed below.
4. [® ] Buyer, [E ] Seller agrees to pay to a withdrawal fee of $ 1625.22 to the State of Minnesota
based on 6.5% of the agreed to purchase price. At the Closing Date, [[Z] Buyer, [F—I ] Seller will execute a
check made out for this amount, payable to the Board of Water and Soil Resources.
The closing of the purchase and sale shall occur on 27 , 2015 (Closing Date). The Closing Date
and location may be changed by written consent of both parties. Upon payment of the balance of the
purchase price, Seller will sign a fully executed Application for Withdrawal of the Credits in the form
specified BWSR, provide a copy of the Application for Withdrawal to the Buyer and forward the same to the
BWSR along with the check for the withdrawal fee.
6. Buyer has applied or will apply to _City of Otsego and BWSR (Local Government Unit (LGU) or
other regulatory authority) for approval of a replacement plan utilizing the Credits as the means of replacing
impacted wetlands. If the LGU has not approved the Buyer's application for a replacement plan utilizing the
Credits by the Closing Date, and no postponement of the Closing Date has been agreed to by Buyer and
Seller in writing, then either Buyer or Seller may cancel this Agreement by giving written notice to the other.
In this case, Seller shall return Buyer's earnest money, and neither Buyer nor Seller shall have any further
obligations under this Agreement. If the LGU has approved the replacement plan and the Seller is ready to
proceed with the sale on the Closing Date, but Buyer fails to proceed, then the Seller may retain the earnest
money as liquidated damages.
(Signature of Seller) (Date) (Signature of Buyer)
Page 2 of 2
BWSR Form: wca-bank-12 (purchase agreement).doc
Revised 6/26/2014
(Date)
Current Conditions*
Required Standard**
Proposed Design
Lane Width
10'
11'
12'
Shoulder Width
0.5'
1.0'
8'
Slope
2:1
3:1
4:1
Clear Zone
Varies, trees and steep
slopes
7'
30'
EXHIBIT 1
Total impact
Required standard
Proposed Design
(permanent fill or any
impact (eligible for
Impact and Trail (not
excavation)
BWSR Road Program)
eligible for BWSR
Road Program)
A
0 SF
NA
NA
B
6744 SF
725 SF
6019 SF
C
56 SF
56 SF
0 SF
D (road shifted north
5157 SF
2580 SF
2577 SF
so less impact)
E
1405 SF
900 SF
505 SF
F
486 SF
486 SF
0 SF
G
7203 SF
620 SF
6583 SF
CR 1
6272 SF
6272 SF
0 SF
CR 2
759 SF
759 SF
0 SF
H (tributary so not
0 SF
NA
NA
mitigated under WCA
or Corps)
I (not eligible for
2178 SF
NA
2178 SF
BWSR Replacement)
Total:
30,260 SF
12398 SF
17,862 SF
Replaced by City at
2:1 for total of 35,724
SF
EXHIBIT 1
Transaction Form for Withdrawal of Wetland Credits
from the Minnesota Wetland Bank
U L1IC 1ayUUL UL 11116 1U1111 JUU11,6 111GU11 ccl, G11U& U11 V 1CW, GLill LJUCL(//1Cti
1. Credit User
To be completed by the person or entity proposing to use the wetland credits.
Name: City of Otsego
Organization (if applicable):
Street Address: 8899 Nashua Ave. NE
City, State, Zip: Otsego, MN 55330
Phone: 763/441-4414 E -Mail Address*:
r, then save to your computer.
This space is for BWSR use only.
Debit Date:
2. Wetland Impact Information
To be completed for the project with wetland impacts that this withdrawal is intended to replace,
Project Name: 701h St. NE and Oakwood Ave.
County of Impact: Wright
Impact Major Watershed M 18
Impact Bank Service Area: 7
**Sec. 32 Twp. 121 Rge. 23
Wetland Impact Size (acres): 0.4100
Replacement Ratio: 2:1
Total Replacement Required (acres): 0.8200
U.S. Army Corps Permit # (if applicable):
LGU File # (if applicable): OT388
**Projects with multiple impact locations should use the most central location in relation to the project as a whole.
Comments: linear impact
By signature below, the proposed user of credits attests that he/she owns or has purchased the credits identified in this
application and has received approval from the applicable regulatory authority(ies).
Credit User Signature:
Date:
3. Regulatory Approval/Authorization
By signature below, the identified agency and authorized representative hereby certify that they have: a) verified that the subject
wetland credits are deposited in the account of the owner/seller, b) approved a wetland replacement plan or similar agreement under their
jurisdiction, and c) approve the proposed use of the wetland bank credits described herein.
WCA LGU/Agency: City of Otsego
E-mail address*: becky@haa-inc.com
LGU Representative: Becky Wozney Signature:
Date:
------------------------------------------------------------------------------------
(for NRCS, USACE, etc. if applicable)
Agency Name/Location:
Representative:
E-mail address*:
Signature:
Date:
*Confirmation will be e-mailed to user, seller, and regulatory representative when the transaction is complete. If you would like others notified,
enter e-mail addresses here.
Rev 3/1G/2015 Transaction Form for Withdrawal of Wetland Credits Page 1 of 2
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70TH STREET AND OAKWOOD AVENUE (CSAH 37) OT388
WETLAND IMPACTS — OVERALL 12/23/14
MVP-2015-00212--BGO, Page 1 of 4
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AQUATIC RESOURCE 1 WETLAND B
WETLAND C
WETLAND IMPACT FILL, PERMANENT
..........
.............
WETLAND IMPACT CUT, :FEMP9HAR4 PERMANENT (less than, 6.6 ft.)
WETLAND IMPACT — CUT, PERMANENT
AQUATIC RESOURCE IMPACT — FILL, PERMANENT
AQUATIC RESOURCE IMPACT — FILL, TEMPORARY
70TH STREET
WETLAND IMPACTS
WETLAND A
zu 0 3D m
SVALE IN FEU
OT588
12/23/14
[MVP-2015-00212-BGO, Page 3 of 4
AQUAT@C RESOURCE 2
AQUATIC RESOURCE IMPACT — FILL, PERMANENT -�
AQUATIC RESOURCE IMPACT — FILL, TEMPORARY a0 0 30 00
SChLE IN FEET
OAKWOOD AVENUE
WETLAND IMPACTS O� 38H
MVP-2015-00212-BGO, Page 4 of 4