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RES 15-38CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2015-38 RESOLUTION APPROVING AGREEMENT AND PETITION FOR PUBLIC IMPROVEMENT PROJECT RELATED TO 80T11 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 80th 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 Schroeder and seconded by Council Member Heidner. IN FAVOR: Stockamp, Schroeder, Heidner, Warehime OPPOSED: None CITY OF OTSEGO Tami Loff, City Clerk 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 80th 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: 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. 2. 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. 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 Its 3