ITEM 6.1 ISD 728OtsCITY OF
e o
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Legal
Andy MacArthur, City Attorney
July 27, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
City Attorney
Lori Johnson, City Administrator
6.1
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommends that the attached Preliminary Agreement between Otsego and ISD 728 be approved.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No.
No.
BACKGROUNDMUSTIFICATION:
ISD 728 has indicated that they are proceeding with plans to construct a new school facility in western
Otsego. The school district intends to open the facility in the Fall of 2017. In order to accommodate that
schedule the City will need to proceed with a public improvement project in 2016 to construct
improvements to 80th Street, to bring sewer and water to the school site and to construct a temporary
lift station on the school property.
In order to begin the process, the City needs to have a feasibility study for the project. The City Engineer
has already come up with preliminary cost data, but the data must be refined in the feasibility study.
The school district is responsible for all costs related to the road and temporary lift station
improvements either by direct payment or assessment. Additional costs that would also be included in
the City project relate to extending sewer and water to the property. These costs would ultimately also
be paid by the District through sewer and water availability charges which would be included in the
Developers Agreement executed at Final Plat approval. The District intends to proceed with subdivision
and zoning applications in the near future.
The Agreement is in the form of a cost Agreement between the City and School District and a petition
for a City public improvement project. This allows the City and School District to proceed either by direct
payment of costs or by assessment.
SUPPORTING DOCUMENTS: x ATTACHED ❑ NONE
• Proposed Agreement.
• Resolution approving Agreement.
MOTION: (Please word motion as you would like it to appear in the minutes.
Motion to approve Resolution No. 2015-38, approving Agreement between City of Otsego and ISD 728.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
NA o No
ACTION TAKEN
ENGINEER'S ESTIMATE
80TH STREET
IMPROVEMENTS
CITY OF OTSEGO, WRIGHT COUNTY, MN
Revision: 7/15/15
Bid Schedule "A" - Streets & Trail
Item
No,
Spec. Ref
Description
Unit
Estimated
Quantity
Unit Price
Total Estimated
Extension
1
2021.501
Mobilization
LS
1
$20,000.00
$20,000
2
2104,505
Remove Bituminous Pavement
SY
4729
$3.00
$14 187
3
2104,613
Sawing Bit Pavement Full Depth)
LF
100
$4.00
$400
4
2105.501
Common Excavation P
CY
5154
$4.50
$23,193
5
2105.635
Salva ed Topsoil From Stockpile LV
GY
3255
$3.50
$11 393
6
2105.635
Salvaged Topsoil in Stockpile EV
CY
10308
$3.50
$36,078
7
2211.501
Aggregate Base Class 3 or 4
TON
9735
$9.00
$87 615
8
2211.501
Aggregate Base Class 5 Mod
TON
3010
$13.00
$39,130
9
2232.501
Mill Bituminous Surface 1.5"
SY
17
$6.06
$102
10
2367.502
Bituminous Material For Tack Coat
GAL
558
$3.00
$1 674
11
2360.501
Type SP 9.5 Wearing Course Mixture 3,C
TON
910
$68.00
$61 880
12
2360.501
Type SP 12.5 Wearing Course Mixture 2,B Trail
TON
220
$67.00
$14 740
13
2360.502
Type SP 12.5 Non Wear Course Mixture 3,C
TON
1820
$60.00
$109,200
14
2411.507
Concrete Flume
EACH
2
$300.00
$600
15
2531.501
Concrete Curb & Gutter Design B418
LF
5050
$14.00
1 $70 700
16
2531.507
6" Concrete Driveway Pavement
SY
56
$45.00
$2,520
17
2531.618
Truncated Domes
SF
80
$55.00
$4 400
18
2563.601
Traffic Control
LS
1
$5,000.00
$5 000
19
2564.531
Sign Panels, Type C
SF
108
$32.00
$3 456
20
2573.502
Slit Fence Type MS
LF
3300
$2.00
$6,600
21
2573.530
Storm Drain Inlet Protection
EACH
10
$75.00
$750
22
2573.635
Stabilized Construction Exit
LS
2
$2,000.00
$4,000
23
2576.501
Seeding
ACRE
2.02
$3,000.00
$6,060
24
2575.523
Erosion Control Blanket - Category 2
SY
770
$2.50
$1,925
25
2582.501
Pavement Message Left Arrow - Paint
EACH
4
$75.00
$300
26
2582.601
Pavement Message (Right Arrow - Paint
EACH
5
$75.00
$375
27
2582.501
Pavement Message Thru Arrow - Paint
EACH
4
$75.00
$300
28
2582.502
4" Solid Line White - Paint
LF
6000
$0.10
$600
29
2582.502
4" Broken Line White - Paint
LF
275
$0.10
$28
30
2582.602
12" Stop Line White - Paint
LF
144
$2.60
$374
31
2582.502
24" Solid Line Yellow - Paint
LF
230 1
$2.45
$564
32
2682.602
4" Double Solid Line Yellow - Paint
LF
3300 1
$0.20
$660
rota) - Bid Schedule "A'
Bid Schedule "B" - Storm Sewer
$528,804.00
33
2501.515
15" RC Pipe Aron
EACH
2
$600.00
$1,000
34
2502.501
4" Precast Concrete Headwall
EACH
6
$240.00
$1,440
35
2502.541
4" Perf PVC Pipe Drain
LF
600
$15,00
$9,000
36
2503.541
15" RC Pipe Sewer Design 3006 CL V all depths)
LF
400
$38.00
$15,200
37
2503,541
18" RC Pipe Sewer Design 3006 CL V all depths)
LF
150
$41.00
$6,150
38
2503.541
21" RC Pipe Sewer Design 3006 CL III all depths)
LF
100
$43.00
$4,300
39
1 2506.501
lConstruct Drainage Structure Design 48-4020
LF
33
$600.00
$16,600
40
2506.501
Construct Drainage Structure Design H
LF
8
$460.00
$3,600
41
2506.501
1 Construct Drainage Structure Design N
LF
8
$450.00
$3,600
42
1 2515.503
jArticulated Interlocking Block Open Cell, Type A
SY
100
$115.00
$11,500
Total - Bid Schedule "B"
$7:4, 4UU
Bid Schedule "C" - Interim Lift Station
43 1 1 E-8 Lift Station LS 1 $200,000.00 $200,000
Total - Bid Schedule "C" $200,000
Total - Bid Schedule "A" - Streets & Trait $628,804
Total - Bid Schedule "B" - Storm Sewer $72,290
Total - Bid Schedule "C" - Interim LS $200,000
SCHOOL CONSTRUCTION Cost $801,094
126% of Construction Costs $1,001,368
S'.WunlclpaM0TSEG0M8\School Public Improvments EngEst (7-15-15) w - LS wo - H2O and sewer Page 1 of 2
AGREEMENT AND PETITION FOR PUBLIC IMPROVEMENT PROJECT RELATED TO IMPROVEMENTS TO
80T" STREET AND TEMPORARY LIFT STATION BETWEEN INDEPENDENT SCHOOL DISTRICT NO. 728 AND
THE CITY OF OTSEGO
THIS AGREEMENT made this _ day of July, 2015 by and between INDEPENDENT SCHOOL DISTRICT NO.
728 (ISD 728), a political subdivision of the State of Minnesota and the CITY OF OTSEGO (CITY), a
Minnesota municipal corporation.
WHEREAS, ISD 728 intends to construct a school facility and related improvements upon property
located within CITY; and
WHEREAS, ISD intends to open the school facility in the Fall of 2017; and
WHEREAS, in order to facilitate construction of the school facility certain public improvements must be
undertaken and completed during 2016, including improvements to 801h Street, construction of trunk
water and sewer lines and extensions and construction of a temporary lift station upon the ISD 728
property; and
WHEREAS, ISD 728 is hereby requesting that said improvements be undertaken as a CITY project for
construction in 2016; and
WHEREAS, in order to undertake such improvements, CITY needs assurance that Project and related
costs will be paid for by ISD 728.
NOW, THEREFORE IT IS AGREED by the Parties as follows:
1. PETITION. ISD 728 hereby petitions the CITY pursuant to Minnesota Statute 429 to initiate a
public improvement project for the improvements to 80th Street, extension of needed utilities
and construction of a temporary lift station, herein designated as the Project. ISD 728 agrees to
pay 100% of the final costs of the Project including necessary planning, engineering and legal
fees. ISD 728 requests that the CITY immediately undertake a feasibility study for the Project. In
order to facilitate and expedite the feasibility study ISD 728 shall immediately place in escrow
with the CITY $5,000.00 to cover the cost of the study. Any portion of the escrow expended will
not be returned to ISD 728 regardless of the results of the feasibility study, or whether or not
ISD 728 desires to complete development of the school facility. ISD 728 agrees to fully
cooperate with the CITY and its engineer and representatives to provide information required to
complete the Feasibility Study and the Project.
INITIAL ESTIMATE OF COSTS. CITY has provided an initial estimate of costs for benefit of ISD
728. The estimate is provided for informational purposes only, and CITY is in no way bound by
these estimates. Final payment shall be based upon final Project costs. The initial CITY estimates
are provided on Exhibit A to this Agreement.
WAIVER. ISD 728 hereby waives any and all hearings or any irregularities in proceedings in
relation to the petitioned for Project, and hereby waives any and all rights of appeal under
Minnesota Statute 429.081 or under any other right of appeal. Said waiver is for any billing or
assessment up to $1,100,000.00. This amount does not include utility availability and connection
charges related to the Plat and the school facility. In the event that the final billing or
assessment is above the amount waived the Parties will meet to review the billing and costs.
Any right of appeal or contest for an amount above the waiver amount is limited to only the
difference between the final costs and the amount waived.
4. PAYMENT. ISD 728 shall pay for all costs incurred by the CITY related to the Project within thirty
(30) days of receipt of an invoice from the CITY. Upon request by ISD 728, and at the sole
discretion of the CITY, Project costs may be assessed against the ISD 728 property at an interest
rate and for a term of years to be determined by the CITY based upon their current policy. In the
event that ISD 728 discontinues the school facility development or fails to make any required
payment, CITY may assess all amounts owed plus any additional costs incurred by CITY as the
result of the failure to pay against the property or pursue any other remedy available to CITY.
APPLICATION FOR DEVELOPMENT APPROVALS. ISD 728 shall proceed to apply to the CITY for
the necessary development approvals for the school facility as soon as is practicable. The Plat
shall provide for all necessary easements in favor of the CITY for it to proceed with the Project.
ISD 728 shall provide at no cost to CITY all necessary temporary easements or right of entry for
construction of the Project and for ongoing maintenance and repair of the temporary lift
station. In the event that a Plat has not been approved and recorded prior top CITY construction
of improvements, ISD 728 shall provide and execute written easements necessary for the CITY
to commence and complete the Project. This Agreement provides no assurance, and is not to be
construed as any guarantee that the CITY will approve the school facility zoning and subdivision
applications.
6. ABANDONMENT OF SCHOOL FACILITY PROJECT. ISD 728 is requesting that the City initiate and
complete the Project prior to construction of the school facility. In the event that CITY proceeds
with the Project and ISD 728 subsequently abandons or delays construction of the school
facility, ISD 728 shall remain responsible for immediate payment of all final Project costs. ISD has
requested that the CITY undertake the Project in 2016 so that the school facility can open in the
Fall of 2017.
7. ENTIRE AGREEMENT, This Agreement is the entire Agreement between the Parties and
supersedes any other Agreement either written or oral.
8. SEVERABILITY. In the event that any portion, paragraph or section of this Agreement is held
invalid by a court of competent jurisdiction, the entire Agreement shall be construed as to its
original intent without the invalidated portion.
9. VENUE. This Agreement is to be construed and enforced under the laws of the State of
Minnesota. Either party may take legal action to enforce the terms and conditions of this
Agreement after first entering into discussions and/or mediation to try and resolve any disputes
without litigation. This Agreement shall not be construed against the drafter.
Dated:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff City Clerk
Dated:
INDEPENDENT SCHOOL DSTRICT 728
in
Its
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO.2015-38
RESOLUTION APPROVING AGREEMENT AND PETITION FOR
PUBLIC IMPROVEMENT PROJECT RELATED TO 80TI STREET
IMPROVEMENTS AND TEMPORARY LIFT STATION BETWEEN
INDEPENDENT SCHOOL DISTRICT NO. 728 AND THE CITY OF
OTSEGO
WHEREAS, Independent School District No. 728 (ISD 728) is requesting a
public improvement project related to improvements to 80'h Street and
construction of a temporary lift station, and
WHEREAS, the request requires City construction of public improvements and
requires payment for the same by ISD 728 by direct payment or assessment; and
WHEREAS, the respective parties obligations and commitments are contained
and memorialized in the attached Agreement; and
WHEREAS, ISD 728 has requested that the City commence and complete the
City project in 2016 so that ISD 728 can open its school facilities in the Fall of
2017.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
Otsego, Wright County, Minnesota as follows;
1. The attached Agreement between the City of Otsego and ISD 728 is hereby
approved, subject to any Staff approved changes.
2. The Mayor and City Clerk are hereby authorized to execute the Agreement
on behalf of the City of Otsego.
ADOPTED this 27th day of July, 2015 by the City Council of Otsego.
MOTION TO ADOPT the Resolution by Council Member
and seconded by Council Member
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
2