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Home My WebLink About5L Amend Eagle Creek Estates Dev Contract O PRIOR 4646 Dakota Street SE Prior Lake, MN 55372 `iiINxss e" CITY COUNCIL AGENDA REPORT MEETING DATE: FEBRUARY 24, 2014 AGENDA #: 5L PREPARED BY: JEFF MATZKE, PLANNER LARRY POPPLER, CITY ENGINEER & INSPECTIONS DIRECTOR PRESENTED BY: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE DEVELOPMENT CONTRACT FOR EAGLE CREEK ESTATES DISCUSSION: Introduction The purpose of this agenda item is for the City Council to consider Amendment No. 1 to the Eagle Creek Estates Development Contract. History On July 8, 2014, the City Council approved the Development Contact for the subdivision known as Eagle Creek Estates. As part of the Development Contract the City agreed to pay the Developer oversizing reimbursement in the amount $325,257.00. Current Circumstances The Developer, KRB Development LLC, has requested additional oversizing cost to cover additional utility relocation work, lane stripping, and street Tight costs on Fish Point Road. The Eagle Creek Estates project included construction of Fish Point Road which is a City collector street. Collector streets are built to higher standards as they will carry many more vehicles than standard local streets. When these streets are constructed by developers, the developers are reimbursed through trunk funds and street oversize funds for construction to the higher standard. The original development contract detailed oversizing costs for the development. Many of the line items within the development contract for oversizing were accurate once construction was concluded. A few line items require amendment to the development contract. These items include utility relocation at County Road 21, striping of Fish Point Road at County Road 21, and installation of a street light at the intersection of Fish Point Road at Snell Court. ISSUES: The connection of Fish Point Road at County Road 21 involved coordination and movement of many utilities. During the course of construction it was discovered that a signal handhole was located within the proposed roadway. This handhole required movement outside the roadway pavement. A change order was needed for the movement of the handhole but also involved a design change and coordination. If the handhole were discovered prior to the commencement of the original development contract, additional oversizing would have been computed for its movement. The striping for Fish Point Road at County Road 21 was not part of the original oversizing calculation. This work should have been a part of the calculation as it involved striping that is outside of a normal local street improvement. The Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com amendment to the street lighting policy now contemplates street lights at each intersecting segment onto a State highway, County road, or collector street. Fish Point Road is expected to carry 12,000 vehicle trips per day. Because the roadway is separated by a center median, as a matter of safety, it was appropriate to place street lighting at each intersecting leg onto Fish Point Road. The street lighting policy simply dictated lighting spacing and did not contemplate lighting at each side street. The City Engineer determined that it was appropriate to place lighting on each leg of the intersecting roadways to Fish Point Road which exceeds our neighborhood street standard. In addition to the amendment for oversizing, the completion date for the improvements also requires amendment. The original completion date for the improvements was December 31, 2013. While many of the streets and utilities were completed before the completion date, the construction of Credit River Road was not finished. Chard Tiling and Excavating was the contractor for the project, and were not able to complete the improvements prior to the completion date. Staff is recommending a revised completion date of June 30, 2014. This change does not impact the city's efforts to collect liquidated damages from Chard for failure to meet deadlines for certain city projects. FINANCIAL The development contract amendment provides for additional oversizing credit IMPACT: to the developer in the amount of $23,971. Funding for this amendment would come from the Street Oversizing Fund. Street oversize acreage charges are collected by the City with each development, to fund these types of improvements. ALTERNATIVES: The alternatives are as follows: 1. Approve Amendment No. 1 to the Development Contract for Eagle Creek Estates. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item until some date in the future. RECOMMENDED 1. Motion and second to approve Amendment No. 1 to the Development MOTION: Contract for Eagle Creek Estates. EXHIBITS: 1. Resolution 14 -XXX 2. Amendment No. 1 O� PRIp� 4646 Dakota Street SE Prior Lake, MN 55372 \ < 1 ,..tArivEsol t* RESOLUTION 14 -XXX A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE EAGLE CREEK ESTATES DEVELOPMENT CONTRACT Motion By: Second By: WHEREAS, On July 8, 2014, the Prior Lake City Council approved the Development Contract for Eagle Creek Estates with KRB Development LLC (the "Developer"); and WHEREAS, KRB has requested additional oversizing reimbursement to cover utility relocation work, collector road striping, street lighting costs in the amount of $23,971.00; and WHEREAS, It is the policy of the City of Prior Lake to reimburse a developer for costs incurred for the oversizing of public infrastructure that benefit future development and exceed the needs of the current development alone; 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. The Mayor and City Manager are authorized to execute on the City's behalf Amendment No. 1 to the Development Contract for Eagle Creek Estates. PASSED AND ADOPTED THIS 24th DAY OF FEBRUARY 2014. YES NO Hedberg Hedberg Keeney Keeney McGuire McGuire Morton Morton Soukup Soukup Frank Boyles, City Manager Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com DEVELOPMENT CONTRACT EAGLE CREEK ESTATES AMENDMENT NUMBER 1 PROJECT #11 -101 This AMENDMENT NUMBER 1 ( "Amendment ") to the DEVELOPMENT CONTRACT dated July 8, 2013, for Eagle Creek Estates is entered into this 24th day of February, 2014, by and between the City of Prior Lake, a Minnesota municipal corporation ( "City "), and KRB Development LLC., a Minnesota Limited Liability Company (the "Developer "). Eagle Creek Estates (referred to in the Development Contract and this Amendment as the "Plat ") is legally described as shown on attached Exhibit A which is incorporated herein as if fully set forth. Based on the mutual promises and covenants set forth herein, the sufficiency of which is not disputed, the City and the Developer (collectively "Parties ") agree as follows: 1. TIME OF PERFORMANCE. Paragraph 2 of the Eagle Creek Estates Development Contract, recorded document #A941865 in the Office of the Scott County Recorder, requires the Developer to complete all public improvements by December 31, 2013. The completion date shall be changed to June 30, 2014. Page 1 2. OVERSIZING. Paragraph 30 of the Eagle Creek Estates Development Contract, recorded document #A941865 in the Office of the Scott County Recorder, states the "City and Developer agree that the Developer Installed Improvements should be oversized for the benefit of future development. Oversizing is the construction of a Developer Installed Improvement to City specifications that exceeds those that would otherwise be required of the Developer. Oversizing improvements include, but are not limited to, sanitary sewer, water, storm drainage facilities, and road improvements. If the City Engineer determines that oversizing is required, the City shall reimburse the Developer for the costs associated with this work and as approved in this contract. City and Developer agree that the cost of system oversizing to be reimbursed to the Developer is $325,257.00 as identified in Exhibit E." The amount of oversizing reimbursement is hereby amended to include an additional $23, 971.00 (for an overall total of $349,228.00). This additional amount is due to additional costs of utility relocation work, lane striping, and street lighting for Fish Point Road as detailed in Exhibit B of this contract amendment. 3. MISCELLANEOUS. A. Amendments. All of the provisions of the DEVELOPMENT CONTRACT for Eagle Creek Estates, with the exception of this amendment, shall remain in full force and effect, unless otherwise amended. No additional amendments to the Development Contract shall be valid unless in writing, signed by the parties and approved by resolution of the City Council. The City's failure to promptly take legal action to enforce this Development Contract shall not be a waiver or release. B. Severability. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Amendment is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Amendment. C. Assignment. The Developer may not assign this Amendment without the prior written approval of the City Council which approval shall not unreasonably be withheld. The Developer's Page 2 obligation hereunder shall continue in full force and effect even if the Developer sells one or more lots, the entire Plat, or any part of it. D. Interpretation. This Amendment shall be interpreted in accordance with and governed by the laws of the State of Minnesota. The words herein and hereof and words of similar import, without reference to any particular section or subdivision, refer to this Amendment as a whole rather than to any particular section or subdivision hereof. Titles in this Amendment are inserted for convenience of reference only and shall be disregarded in constructing or interpreting any of its provisions. E. Jurisdiction. This Amendment shall be governed by the laws of the State of Minnesota. Page 3 CITY OF PRIOR LAKE By: (SEAL) Kenneth L. Hedberg, Mayor By: Frank Boyles, City Manager DEVELOPER: By: Its: STATE OF MINNESOTA ) ( ss. COUNTY OF SCOTT) The foregoing instrument was acknowledged before me this day of , 20, by Kenneth L. Hedberg, Mayor, and by Frank Boyles, City Manager, of the City of Prior Lake, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 , by NOTARY PUBLIC DRAFTED BY: City of Prior Lake 4646 Dakota Street Prior Lake, Minnesota 55372 Page 4 EXHIBIT "A" TO AMENDMENT NUMBER 1 TO DEVELOPMENT CONTRACT Final Plat, Including Title Sheet Page 5 EXHIBIT "A" TO AMENDMENT NUMBER 1 TO DEVELOPMENT CONTRACT Final Plat, Including Title Sheet Page 6 EXHIBIT "A" TO AMENDMENT NUMBER 1 TO DEVELOPMENT CONTRACT Final Plat, Including Title Sheet Page 7 EXHIBIT "A" TO AMENDMENT NUMBER 1 TO DEVELOPMENT CONTRACT Final Plat, Including Title Sheet Page 8 EXHIBIT "A" TO AMENDMENT NUMBER 1 TO DEVELOPMENT CONTRACT Final Plat, Including Title Sheet Page 9 EXHIBIT "B" TO AMENDMENT NUMBER 1 TO DEVELOPMENT CONTRACT Additional Oversizing Costs: Additional costs for Utility relocation work at Co. Rd. 21 per Chard bid $ 1,445.00 Chard change order #14 to move the hand hole at Co. Rd. 21 $ 11,985.00 Spack Consulting invoice to design utility relocation work $ 2,460.00 Civil Site Group time to coordinate plans for utility relocation work $ 2,500.00 Striping of Fish Point Road turn lanes (temporary and permanent) $ 1,490.00 Additional street lights costs (Street light added to Fish Point Road) $ 4,091.00 Total net increase to Exhibit E (Fish Point Road Street Oversizing) $ 23,971.00 Page 10