HomeMy WebLinkAbout10B Stockpile Fill Agreement o .� rxt
� �
U rr�
4646 Dakota Street SE
'�IN�so'��' Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: JULY 22, 2013
AGENDA #: 10B
PREPARED BY: DAN ROGNESS, COMMUNITY 8� ECONOMIC DEVELOPMENT DIRECTOR
PRESENTED BY: DAN ROGNESS
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING A COOPERATIVE
AGREEMENT BETWEEN THE CITY OF PRIOR LAKE, D.R. HORTON, INC.
MINNESOTA AND TERRANCE HANSON FOR THE STOCKPILING OF CLEAN
FILL ON THE HICKORY SHORES SOUTH SITE
DISCUSSION: Introduction
The purpose of this agenda item is to consider approving a Cooperative Agreement
that would allow excess clean fill to be deposited on a proposed residential
development site. Normally, a conditional use permit is required for fill over 400
cubic yards. This agreement would allow excess fill on two existing development
sites, Welcome Avenue and Hickory Shores, to be deposited on a proposed
development site known as Hickory Shores South.
Hi StOry
D.R. Horton has entered into a purchase agreement to develop an area of
approximately 20 acres into single family residential lots (see Attachment #2), an
area previously referred to as Golden Pond. D.R. Horton has also submitted a PUD
and Preliminary Plat application to the city for possible approval in August. This
proposed subdivision would connect Turner Drive between Maple Glen and Hickory
Shores, which would also allow an important water connection to occur in that area
(see Attachment #3). The city would like to see that connection made in 2013, if
possible. D.R. Horton has indicated to the city that this development site could use
approximately 20,000 cubic yards of fill. At the same time, the city has excess fill
being generated from the Welcome Avenue project site, and D.R. Horton has
excess fill on the Hickory Shores development site.
Current Circumstances
The city attorney advised staff that a possible approach to address the excess fill
status on two approved project sites, as well as the fill needs of a proposed
development site, is to have the City Council approve a Cooperative Agreement.
The agreement would identify the responsibilities of three primary parties, including
the City of Prior Lake, D.R. Horton, Inc. Minnesota, and Terrance Hanson (the
property owner). The City Engineer is responsible for approving the plans and
specifications of the fill removal and deposit process. All necessary permits must
be obtained by D.R. Horton related to stormwater and erosion control.
Conclusion
There are some advantages to all parties in this Cooperative Agreement, including:
1. The city is expecting a contract credit for allowing Chard to deposit excess
fill material at the proposed deposit site.
2. The city is assisting D.R. Horton to complete the Turner Drive and water
connection between two existing subdivisions in 2013 by allowing fill to be
deposited there without going through a more lengthy conditional use permit
process.
3. D.R. Horton is able to remove excess soil on the active Hickory Shores site
to their proposed Hickory Shores South site, and in the process, facilitate
the development of walk out lots.
ISSUES: If the city does not approve the Hickory Shores South PUD and Preliminary Plat,
D.R. Horton must remove all deposited fill at the direction of either the city or the
landowner. A financial assurance is part of the agreement to secure that step, if
necessary.
FINANCIAL This agreement will reduce the Welcome Avenue contract cost and it will be a
IMPACT: financial advantage to D.R. Horton.
ALTERNATIVES: 1. A motion and second to approve a resolution approving a Cooperative
Agreement as proposed, or as amended by the City Council.
2. A motion and second to deny the resolution.
3. A motion and second to defer this item and provide staff with specific
direction.
RECOMMENDED Staff recommends Alternative #1
MOTION:
ATTACHMENTS: 1. Cooperative Agreement �
2. Location Map
3. Preliminary Plat for Hickory Shores South (under staff review)
o � riuo�
� �
U tr�
4646 Dakota Street SE
'�iN�so'��' Prior Lake, MN 55372
RESOLUTION 13-xxx
A RESOLUTION APPROVING A COOPERATIVE AGREEMENT BETWEEN THE CITY OF
PRIOR LAKE, D.R. HORTON, INC. MINNESOTA AND TERRANCE HANSON FOR THE
STOCKPILING OF CLEAN FILL ON THE HICKORY SHORES SOUTH SITE
Motion By: Second By:
WHEREAS, The City Council approved a development contract with D.R. Horton, Inc. Minnesota, dated
June 18, 2012 for the development of Hickory Shores 4th Addition; and
WHEREAS, The City Council approved a construction contract with Chard Tiling & Excavating, Inc., dated
May 28, 2013 for public infrastructure improvements in Welcome Avenue; and
WHEREAS, The Hickory Shores and Welcome Avenue sites have excess clean fill material; and
WHEREAS, D.R. Horton has submitted an application to the City for a Planned Unit Development and
Preliminary Plat, to be known as Hickory Shores South, which needs adtlitional clean fill; and
WHEREAS, For the mutual benefit of the City and D.R. Horton, a Cooperative Agreement establishes a
process whereby excess clean fill from Welcome Avenue and Hickory Shores can be
deposited on the Hickory Shores South site currently under a purchase agreement by D.R.
Horton with the property owner Terrance Hanson.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. A Cooperative Agreement between the City of Prior Lake, D.R. Horton, Inc. Minnesota, and Terrance
Hanson is hereby approvetl.
PASSED AND ADOPTED THIS 22�d DAY OF JULY, 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager
AGREEMENT
BETWEEN THE CITY OF PRIOR LAKE, D.R. HORTON INC.
MINNESOTA, AND TERRANCE HANSON
FOR THE
STOCKPILING OF CLEAN FILL ON THE
HICKORY SHORES SOUTH SITE
THIS COOPERATIVE AGREEMENT is entered into between the CITY OF
PRIOR LAKE, a Minnesota municipal corporation (hereinafter referred to as the "City"), D.R.
HORTON, INC. MINNESOTA, a Delaware Corporation (hereinafter referred to as the
"Developer", and TERRANCE HANSON an individual (hereinafter referred to as the
"Landowner") collectively hereinafter referred to as the "Parties".
RECITALS
A. The City has entered into a contract with Chard Tiling & Excavating, Inc. to install
public infrastructure in the Welcome Avenue industrial area in 2013 (the "Welcome Contract" on �
the "Welcome Site").
B. The City has entered into a contract with the Developer to complete a residential
subdivision known as Hickory Shores 4� Addition (the "Horton Contract" on the "Horton Site").
C. The City has received a complete Preliminary Plat application from the Developer
for a new subdivision to be known as Hickory Shores South Addition (the "Hickory South Site")
on property owned by the Landowner, as legally defined in Exhibit A.
D. The Developer has entered into a Purchase Agreement with the Landowner for the �
Hickory South Site. i
E. The Welcome Site and the Horton Site have excess soil material, while the Hickory
South Site needs additional clean fill, resulting in a mutual benefit for the City, Developer and
Landowner to stockpile excess soil material on the Hickory South Site (the "Site Improvements").
F. The Parties desire to enter into this Agreement to outline their respective duties and
obligations as it relates to above-described activity, including the payment of contractors for soil
removal and deposit and associated costs, and the crediting of soil removal costs to the City for the
Welcome Contract.
NOW, THEREFORE, in consideration of their mutual covenants, the Parties agree as
follows:
1. DEFINITIONS. The following terms and phrases as used in this Cooperative
Agreement shall mean:
"Agreement" means this cooperative agreement between the City, Developer and Landowner for
the removal and stockpiling of excess soil material.
"City Engineer" means the City Engineer for the City of Prior Lake, Minnesota
"Clean Fill" means uncontaminated natural earthen materials such as soil, sand and gravel.
"Horton Contract" means a contract entered into between the City and the Developer, dated June
18, 2012 for Hickory Shores 4 Addition, Project #12-114.
"Horton Site" means property defined in the final plat known as Hickory Shores 4 Addition; for
purposes of this Agreement, soils may be removed from any location within the Hickory Shores
1 S', 2° 3` or 4�' Additions.
"Site Improvements" means the trucking and deposit of excess soil material from the Horton and
Welcome Sites, to be stockpiled in an area defined as the northern portion of the Hickory South
Site, approximately 550 feet (north/south) by 830 feet (east/west).
"Hickory South Site" means an area of approximately twenty (20) acres owned by Terrance
Hanson, under a purchase agreement with D.R Horton, Inc. Minnesota; PID 259100280, as legally
defined in Exhibit A.
"Project Costs" include, but are not limited to: hauling and soil deposit costs; surveying, testing
and inspection. Project Costs do not include the Parties' staff time and benefits, administrative
costs, City Engineer or other engineering fees.
"Purchase Agreement" means the Purchase Agreement between D.R. Horton, Inc. Minnesota and
Terrance Hanson dated
"Welcome Contract" means entered into between the City and Chard Tiling & Excavating, Inc.,
dated May 28, 2013, Project #12-012.
"Welcome Site" means all property subject to improvements and/or assessments associated with
the Welcome Contract.
2. SITE IMPROVEMENTS. With respect to the Site Improvements:
A. Plans and Specifications. The Developer shall submit plans and
specifications of sufficient detail to be approved by the City Engineer for the Site
Improvements, including but not be limited to, truck hauling route(s), schedule and
hours of operation, amount of soil material stockpiling, Stormwater Pollution
Prevention Plan (SWPPP), and preliminary grading plans.
B. Cover. Following placement, the clean fill must not be left bare and must
be covered within a reasonable amount of time with an appropriate cover material
that prevents runoff and erosion. Vegetation is an acceptable cover under this
section.
C. MPCA Permits. The Developer shall submit a National Pollutant Discharge
Elimination System (NPDES) Stormwater Construction Permit to the Minnesota
Pollution Control Agency (MPCA).
D. Gradin . The Developer shall be allowed to grade the Hickory South Site
according to an approved grading plan, subsequent to a City-approved preliminary
plat for Hickory Shores South Addition. If approval of the preliminary plat is not
granted by the City, the Developer shall remove all stockpiled clean fill within a
time period as may be directed by the City and/or Landowner.
E. Project Costs. Costs associated with the Site Improvements shall be paid in
whole by the Developer, Landowner, and/or Chard Tiling & Excavating, Inc. The
City shall have no responsibility for costs associated with the Site Improvements.
F. Supervision. The City Engineer will supervise the proper execution and
completion of the Site Improvements.
G. Financial Assurance. The Developer shall provide a performance bond or
cash escrow in an amount equal to one hundred twenty-five percent (125%) of the
estimated cost to remove all clean fill from the Hickory South Site. The complete
financial assurance shall be returned or released to the Developer upon the City's
approval of the Hickory Shores South PUD and Preliminary Plat.
3. OWNERSHIP. Following completion, the Developer or Landowner shall own
and maintain the Site Improvements.
4. RULES AND REGULATIONS. The City, Developer and Landowner shall abide
by Minnesota Department of Transportation Standard Specifications rules and contract
administration procedures.
5. INDEMNIFICATION. The Developer and Landowner agree to defend,
indemnify, and hold harmless the City against any and all claims, liability, loss, damage, or
expense arising under the provisions of this Agreement and caused by or resulting from negligent
acts or omissions of the Developer or Landowner and/or those of their employees or agents. The
City agrees to defend, indemnify, and hold harmless the Developer and Landowner against any
and all claims, liability, loss, damage, or expense arising under the provisions of this Agreement
for which the City is responsible, including future operation and maintenance of facilities owned
by the City and caused by or resulting from negligent acts or omissions of the City and/or those of
the City's employees or agents. Under no circumstances, however, shall a party be required to pay
on behalf of itself and the other party any amounts in excess of the limits on liability established
in Minnesota Statutes Chapter 466 applicable to any one party. The limits of liability for both
Parties may not be added together to determine the maximum amount of liability for either party.
The intent of this paragraph is to impose on each party a limited duty to defend and indemnify
each other subject to the limits of liability under Minnesota Statutes Chapter 466. The purpose of
creating this duty to defend and indemnify is to simplify the defense of claims by eliminating
conflicts among the Parties and to permit liability claims against both Parties from a single
occurrence to be defended by a single attorney.
6. WAIVER. Any and all persons engaged in the work to be performed by one party
to this Agreement shall not be considered employees of the other party to this Agreement for any
purpose, including Worker's Compensation, or any and all claims that may or might arise out of
the employment context on behalf of the employees while so engaged. Any and all claims made
by any third party as a consequence of any act or omission on the part of one party's employees
while so engaged on any of the work contemplated herein shall not be the obligation or
responsibility of the other party.
7. AUDITS. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, any books, records,
documents, and accounting procedures and practices of the City , Developer and Landowner
relevant to this Agreement are subject to examination by the City, Developer, Landowner, and
either the Legislative Auditor or the State Auditor as appropriate. The City, Developer and
Landowner agree to maintain these records for a period of six years from the date of performance
of all services covered under this Agreement.
8. DATA PRACTICES ACT. The Parties shall at all times abide by the Minnesota
Government Data Practices Act, Minn. Stat. Chapter 13.
9. INTEGRATION. The entire and integrated agreement of the Parties contained
in this Agreement shall supersede all prior negotiations, representations, or agreements between �
the City, Developer and Landowner regarding the project; whether written or oral.
10. COUNTERPARTS. This Agreement may be executed in one or more ,
counterparts, all of which shall be considered one and the same agreement and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to
the other parties, it being understood that all parties need not sign the same counterpart.
(the remainder of this page is left intentionally blank)
IN WITNESS THEREOF, the Parties have caused this Agreement to be executed by their duly
authorized officials.
D.R. HORTON, INC. MINNESOTA CITY OF PRIOR LAKE
BY: BY:
Its Its Mayor
AND AND
Its Its City Manager
TERRANCE HANSON
BY:
�
I
EXHIBIT A
Legal Description
Hickory Shores 3rd Addition
Location Map
� � r P ' C�� j� ` �. �
o g �
Q a . �o� � `� ° �.� � � " �
. Ar ' L k p ' �� � '� x ' r ,, � � k ,�� � �� a .
t �" r � + �° � ��� �
� `'ry ,c � >�
• wer Prior La # �` �i '"° � ��
o , � � � �' ; � � �� �
o , r .. $_, � x � a
0 �� � �C
� � a o I�lar e " `y �" � �' � �' ,�
S Hickory Shores � ` � � *�� �"�� � � � ti��'� ' �
� � ��
South Addition � � • ��'��� ��� �.��� �
Spring Lake �a � ��e��' � ,�°� '�3'� ''�
p Q o �` � �.� .,�: �� �. a g; .
D a � Q � � #$�> � � .. �
° � • � .' o�� leary Lake � y ' � �,�'� �.� „�;.�;�, ���, � � �`��.
f � ,� <
" <.
l'� / ` � � � `��` ��
� � ;.
� ' , ,, ; �� � ;'^ ��� � s� � • �'' � '� �
� �" �;� �,� � � y � �,.� �����'� �'� � ,�-;. �;
v.�^ ,j "qy � a``` .�.`�`e , � � `
,'�,��` 5"s �� �* �. `�, � �.. # � "��z�'�� �$ x„yv
. �" ��. -. 4 .� �� �� �� £ � .. .
� i f . .. . R�5 e
; = ,,, - �.:,
'R � 1 a .� .. � �� . . w=:.
�
r� � �` ' � h � � � '` � °r � r '
d:.� � ' d f �" '� : �` r �,. � t �� � . . x � � f e
� = h . eh }�' T S � , �� . �'` ..E
. "" . � 'k akF . � +e;. s I t �
. '� �
� ��"r .i fi '�c�e �s[ � . �. � . .. . . 4' *�' ° k .Srt �:
�y^ f r ` zg + .x A— -.J" ± ` .f
*� � ��,��- � '�` ' � � � � ��.. •.� � � �;
� � � � <
���t<�° ���`, r� � .s
a, � ,
�, _
k
,. � � , ,
� . � .
. x� � '',
. -
, , . �
. .�
,�� �� � -. �
' � ` TURNER � �R 5�'J � � ,
M
. �.
Hickory Shores �� "�� � �� �
% t ..'""� ��� � � �
..
' South Addition �
�,
_ �
: �� ��.�
� , � t �...� a..,....�......_, . . . , �.
�, � ^ '.k ,��" � ,- ,a'�3. .
> d��:
� � �. .� g�5�. i .,� k 3 # m- 'R,
. � � � � �a �v ��i ry��.
� . _.��� � . . .. � ^.>C:.
�:.. .. . � . . ,_
r , ... - .. - . .
: : � ,
. . . .x,. f-� �.n
� i ' . . �. . . .. . �� i�•K�r
� .. �4 � . � . . . � ..
+ +.�
, Y
I '. � -v . � . . � ' . � .
E � � ± Y. � � �."'� � � � y�< ` .� �, � y •:
�,"�¢ �
�'� ~�! �� 's1a�`.. 3� . � � `F°'3 x
R E E D �^JAY S W t ��
� -�� �� �� � �� � �.� ,�-.� � �<�
;� � � � �� �
� � � �
.. n r
,. a. � . �
- �� K � � �
�
. �.. '
-� � �� '� � , � � �,
�'� � . ` .
T
.,
.
� '� , ;
"�
F �< �� �� �.:
°�' � . �.; �� ' `+ � -.
,,
f
�. �
_� �.; . . ,._ � ,
��� . �,x �� �. R � °� �'
� ;� ��� � � , ,
�:� � �� §� � �` �� �
_� - � � �'' � _
��.."��`'�' ` �;
� .F
,, , ,;: ,� � , n , e,
—� . �
� '�:� .� � � ,� � _;� -�� � � �
_
, F ,
�" ,� e � ��':; � �
��,� �
.
p
�_ , .
v � � . � u � �, � �. �
e
..,. �- ... � � m • ,. � , ,, �
s ,- r
'�t ;� .
<
� �- ,. ,�'. �� �.
� � .
u
, y _ _ � � ��
� _
,� . � �. � � � ��.
P . ��� � �� F �' -- �= � � �� �
. �,
: .�� N `�� ::� ",� �� �� � ��� ��� � �
��: � , �
a �os zio a2o � " �� �� .� �'�, �, s � -� . �`
Feet _ � ia �� '� � � ��� � :' .�, , +�y�" � ,ie
r
�� � �,� �' �R "' �� � �, '`�`� ;� �' ��'�
�
�a �
a I
�€�° �
� o � �� ����� i
� tE � � p, ���
i c�, •Ta `.-; , � � - � �:R � N z Fa ��� a �
i : •,, ~ ^-. �~ ,�. � � � ��P�-�o��i� � ��
�:' � '. � "'t�s. y � ' � � P� t7 �d ��
Fj: ;. . , ,� �: .-i� � t-.z�?������ a� ��
S .i � ':��. . { � ~ � ` � � � m i����� ���� �� �
s . � , ` 3 -� ��, �
�.. _ �, - � � �n�
� �; .� ��� ,>- - -��� S ��.~. �`� _ � � �� �� oo���� ��
if� ��.?,�- �� } � �` ���4 � �� �� Ri��¢t{l� � �
{X � t t !a . p E �qt"R4 V» ,
� . g ;4� �� _l�� �' ^ � � �N� � �k�B's � �� --c�ic*ivivt�a c3F
�, i_ � � F � . ' � 00 r � 4
�� � i-.. y ,�' z �
���
ag�
�J � °�
I
I
!
I �
� � � I —
� � I
�. �
E
{
� 4 " \` • f � ' � ; �
O � O �` / • \�%, r• f � � � • � 8
O �rT, � -� • /� �' �i�� i v "� 4 �+ab� j
� F�-� 1 � t �, �`�fG 71
��� � ,e .� � �
w � _ ,
._,-� ,
O A '� '° ' ' . ��
�,
,
^ ,� ' aa6
t�i F"� � � �1 � .e
�+ � � ����_�� � ; -
O A � � {� �'•� ••.. � � ; -
� a O � - � '•.�� : � r �#--.. � ,
Z,,,) Ey `! e -�-._ _ � � � �
;.4 p' ___ � �
a . ; � � � , , � `....:::::, l �
� � a � �____J I t
� ' ' r� I �� R �
� �
1 i 1 � `` � y i ��+ � j
1
' t ' + 1 ' �
`` \ � 1
`' ; - � �'� � ,, � _ � r. —I
I j L , 1 1 I i f
i i 1
� £ � ����
f �J
�� � � � Z;
� � s � � g �
C d Y �� ��� 8u� � � t�
��j5 n� s� � � � 6�� $ � �
� �� �. ; ����� a � ���� ����� �3 ���4�as� � �� � � r�
3 � a Z _
€ � � ��£ �'€ S $�b���� �� y�r @ �aaa�� y � � s �� � � � �� � � i RE
���� Y � � �e���� � � z �FB � ¢ � � � � �� � � �
� ��' �� a .,G a � �,4 $_ � ��g< � $ � Q � g � � � �. �� i �[ �
� � K � z�� � � � �3�� � � � �� �� `� � ���5�
p '���z�o� �z3������z�d�'a�������� � � 8 d� �a 5i �b� �
gc� YZ•� eoveo! i�i �� �� � �
2 � � f - 'r; :f' ii
� I �1 i � � '�.' ': }� z f
� ��' x °Q ���� il! 1 � 3 A'+�I wy'� ���� a�b�o�:�bo�..r#eYCObSOO.}a� {: �< � �
�� s � �t � . . i ��� � �
� ` ��� �. � 's � ������
�,} �g� aaoz.� :,�i �f ��.: ���� ���� I
�
-- . �