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HomeMy WebLinkAbout9B - CSAH 12 (City Proj. 03-34) 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: SUBJECT: DECEMBER 6, 2004 98 STEVE ALBRECHT, CITY ENGINEER CONSIDER APPROVAL OF A RESOLUTION APPROVING A LETTER OF UNDERSTANDING FOR THE CSAH 12 IMPROVEMENTS, BETWEEN THE CITY OF PRIOR LAKE, SCOTT COUNTY AND ARCON DEVELOPMENT, CITY PROJECT 03-34. DISCUSSION: Historv On August 16, 2004 the City Council approved the proposed CR 12 alignment. The approved plan included realignment of approximately 2,500 feet of CR 12 (Figures 1 and 2) through Spring Lake Park and the Stemmer Ridge Property. The CR 12 project was originally scheduled to begin construction in 2006. However, the revised Scott County Draft Capital Improvements Program (CIP) has revised construction for 2010. Arcon Development has approached the City and County with a plan to accelerate the 2,500-foot segment of CR 12 realignment to begin construction in 2005. The estimated cost of this segment of CR 12 is $1,500,000. Based on the attached "Letter of Understanding" Arcon Development is agreeing to pay for approximately $960,000 of that cost. The total cost savings to the City and County would be approximately $300,000 and $660,000 respectively. Current Circumstances The City Council will be considering approval of the Preliminary Plat for Stemmer Ridge at their December 6, 2004 Council Meeting. There are a variety of reasons for proceeding with the preliminary plat: 1) The Developer has agreed to extend sewer and water to their property and construct a portion of CR 12 at their own cost. 2) The realignment of CR 12 will be beneficial to the development of Spring Lake Park. 3) While the development of this subdivision will add traffic to CR 12, the volumes are not anticipated to over-tax the roadway. Additionally this development will help facilitate future alternate access to CR 17 to the west through the Tollefson Property and to CR 82 to the north through the Menden Property. G:\Agenda\Agenda04\Stemmer Ridge LOU.DOC www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 Attached to this report is a draft "Letter of Understanding" which is a condition of the Preliminary Plat approval for this project. This letter has been reviewed and the language agreed to by the Developer, City and County Staff. If the City Council approves this letter City Staff will move forward with preparation of a Cooperative Agreement with Scott County for the project. The attached letter is meant to provide a framework for a Cooperative Agreement for reimbursement of project costs. The Cooperative Agreement will need to be approved by the Prior Lake City Council and Scott County Board. If approved the Cooperative Agreement will be incorporated into a Development Contract with Arcon Development. The City of Prior Lake 2005-2009 Capital Improvements Program (CIP) adopted in May of 2004 identified funding for Trunk Utility improvements associated with the Stemmer Property in 2005. The CIP also identifies funds for the CR 12 and Stemmer Ridge Street Improvements in 2006. Issues We understand that the County has revised their Draft 10 Year CIP for CR 12 to begin construction in 2010. If that date remains unchanged in the final County CIP the realignment segment of CR 12 will be completed 2 to 3 years before construction on the balance of CR 12 begins. The Stemmer Ridge and future Belmont Estates developments will most likely be completed prior to 2010. This will result in some of the traffic from approximately 130 additional homes on CR 12 prior to the proposed reconstruction of CR 12 all the way to TH 13. Conclusion Staff recommends that the City Council approve the Letter of Understanding and authorize staff to begin drafting a Cooperative agreement with Scott County for the Stemmer Ridge CR 12 Improvements. ALTERNATIVES: The alternatives are as follows: 1. Adopt the attached resolution that approves the "Letter of Understanding" for the Stemmer Ridge CR 12 Improvements and authorize City Staff to begin work on a draft Cooperative Agreement with Scott County for the improvements, Project 03-34. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item for specific reason. RECOMMENDED MOTION: Alternative 1 above. REVIEWED BY: WHEREAS, WHEREAS, WHEREAS, WHEREAS, 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 04-)00( A RESOLUTION APPROVING A LETTER OF UNDERSTANDING FOR THE CSAH 12 IMPROVEMENTS, BETWEEN THE CITY OF PRIOR LAKE, SCOTT COUNTY AND ARCON DEVELOPMENT, CITY PROJECT 03-34. MOTION BY: xxxx SECOND BY: xxx The City has planned the CSAH 12 Improvement Project, City Project No. 04 - 02, and identified this project for construction in the Capital Improvement Program in 2006,and A preliminary design/alignment for the improvement of CSAH 12 from TH 13 to CSAH 17 was approved by the City Council on August 16, 2004, and A Letter of Understanding has been drafted by City and County Staff and has been agreed to by the Developer, and The City Council approves the Letter of Understanding and authorizes City Staff to begin drafting a Cooperative Agreement with Scott County for the project. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. The recitals set forth above are incorporated herein. 2. The Letter of Understanding for Stemmer Ridge CSAH 12 Improvements is approved as recommended by staff. 3. Staff is authorized to begin drafting a Cooperative Agreement with Scott County for project 03-34. Passed and adopted this 6th day of December 2004. { Seal } YES NO Blomberg Blomberg Haugen Haugen LeMair LeMair Petersen Petersen Zieska Zieska City Manager www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 December 6, 2004 Mr. Dustin Kern Arcon Development, Inc. 7625 Metro Blvd. #350 Edina, MN 55439 RE: Stemmer Ridge CSAH 12 Improvements Cost Share Letter of Understanding Dear Mr. Kern: The purpose of this letter is to detail the responsibilities for costs and reimbursement of the costs associated with the construction of CR 12 through the Spring Lake Park and Stemmer Ridge properties being developed by Arcon Development ("Developer"). The basis for this letter is the meeting held August 18th with Bud Osmundson and Greg Ilkka. Please note that the purpose of this letter is to provide a framework for the cost reimbursement of CR 12 improvements done by the Developer that benefit the City and County. This letter is not intended to create a legally binding agreement. Furthermore the Developer understands that until the Prior Lake City Council and Scott County Board approve a Cooperative Agreement for cost reimbursement that no agreement exists. Any work completed prior to execution of the Cooperative Agreement is done at the Developer's risk. Cost Reimbursement: No reimbursement shall be made to Arcon Development until the Prior Lake City Council has approved the Final Plat and Development Agreement. Fees for oversizing of utilities shall be reimbursed to Arcon Development in accordance with the Development Agreement with the City. The City and Scott County shall enter into a Cooperative Agreement for repayment of the costs associated with road construction on the Spring Lake Park Property and other costs approved for reimbursement incurred by the Developer. This Cooperative Agreement will need to be approved by the Prior Lake City Council and Scott County Board prior to any cost reimbursement. The cost for all proposed improvements shall be provided to the City and County for review and be agreed upon with the Developer prior to the City and County entering into a Cooperative Agreement for reimbursement. Reimbursement of costs incurred by the Developer will be detailed in the Cooperative Agreement and Development Agreement. Spring Lake Park Property 1) Permits: The Developer shall be responsible for obtaining the following permits: MPCA NPDES, MPCA Sewer Extension, MDH Watermain Extension, and Prior Lake Spring Lake Watershed District (PLSLWD) Permit. The County will provide necessary technical information for CR 12 portion of the PLSL WD Permit. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 RE: Stemmer Ridge CSAH 12 Improvements Cost Share Letter of Understanding December 6, 2004 2) Final Design/Construction Plans/Specifications: The Developer shall be responsible for the Final Design, Construction Plans and Specifications for this segment of CRI2. The County and City must approve the plans prior to construction. 3) Street and Storm Sewer Construction: The Developer shall be responsible for the costs of grading this segment of CR12 to subgrade elevation. The County shall be responsible for any subgrade corrections required for grading of this segment. The amount of reimbursement for subgrade corrections shall be agreed upon in the Cooperative Agreement. The Developer shall not be reimbursed for any subgrade correction work above and beyond the agreed upon amount unless approved by the County. The Developer shall be reimbursed by the City through the Cooperative Agreement with the County for construction of the street, storm sewer and trail/sidewalk costs upon acceptance of the improvements. 4) Existing CR 12 Bituminous Removal: The Developer shall be reimbursed by the City through the Cooperative Agreement with the County for removal and disposal of the existing CR 12 bituminous surface upon completion of the work. 5) Sanitary Sewer and Watermain: The developer shall be responsible for the costs of connecting too and extending sanitary sewer and watermain through this segment of CR 12. The City will reimburse the Developer as part of the Development Agreement for oversizing of the watermain from 8-inch to 16-inch and sanitary sewer from 8-inch to 10-inch. Stemmer Ridge Property 1) Permits: The Developer shall be responsible for obtaining the following permits: MPCA NPDES, MPCA Sewer Extension, MDH Watermain Extension, Prior Lake Spring Lake Watershed District (PLSL WD) Permit. The County will provide necessary technical information for CR 12 portion of the PLSL WD Permit. The County will obtain the wetland mitigation permits for this segment ofCR 12. 2) Final Design/Construction Plans/Specifications: The Developer shall be responsible for the Final Design, Construction Plans and Specifications for this segment of CR12. The County and City must approve the plans prior to construction. 3) Street and Storm Sewer Construction: The Developer shall be responsible for the costs of grading, street, storm sewer and trail/sidewalk construction for this segment of CRI2. The County shall be responsible for any sub grade corrections required for grading of this segment. The amount of reimbursement for sub grade corrections shall be agreed upon in the Cooperative Agreement. The Developer shall not be reimbursed for any sub grade correction work above and beyond the agreed upon amount unless approved by the County. 4) Existing CR 12 Bituminous Removal: The Developer shall be reimbursed by the City through the Cooperative Agreement with the County for removal and disposal of the existing CR 12 bituminous upon completion of the work. 5) Sanitary Sewer and Watermain: The Developer shall be responsible for the costs of connecting to and extending sanitary sewer and watermain through this segment of CR 12. The City will reimburse the Developer as part of the Development Agreement for installation of the 21-inch forcemain and oversizing of watermain from 8-inch to 16-inch and sanitary sewer from 8-inch to 10-inch. 6) Wetland Mitigation: The Developer shall be reimbursed by the City through the Cooperative Agreement with the County for wetland mitigation required on the Stemmer Ridge property as stipulated by the approved wetland mitigation permit. 7) Stormwater Pond Construction: The CR 12 contribution to the proposed stormwater pond on the Stemmer Ridge Property has been estimated to be 24% of the total grading required. The G:\PROJECTS\2003\02 _ CSAH 12 alignment\Letter of Understanding 9204.doc - 2 - RE: Stemmer Ridge CSAH 12 Improvements Cost Share Letter of Understanding December 6, 2004 Developer shall be reimbursed by the City through the Cooperative Agreement with the County for 24% of the agreed cost for the stormwater pond and outlet facilities. Right-of- Way and Easement Acquisition Scott County will be responsible for the acquisition of all easements and right-of-way required for construction of CRl2 from the eastern side of Spring Lake Park to the western edge of the Stemmer Ridge Property for construction of the roadway and associated facilities. All right-of-way and easements required for CR 12 on properties under the ownership of Arcon Development shall be dedicated during the plat process for public use with no compensation to the Developer from the County. The Final Plat will set this out as a condition in its resolution approving the plat. Timing of Improvements The Developer will be permitted to begin grading of the CR 12 roadway after obtaining the required preliminary plat approval and permits in accordance with City requirements. Construction of street and utility improvements will not be permitted until the final plat and Development Agreement with Arcon Development have been approved and signed by the Developer and the City. Additionally the Developer must provide all financial securities and permits required in the Development Agreement to the City. Upon approval of the preliminary plat the City and County Staff will prepare a Cooperative Agreement to be approved by the City Council and County Board at the same time as the Final Plat and Development Agreement. Please contact me at (952) 447-9831 if you have any questions or concerns regarding this letter. Sincerely, ~~)IIl Stephen A. Albrecht, P .E. City Engineer CITY OF PRIOR LAKE cc: Bud Osmundson, P.E., Public Works Director Greg Ilkka, P .E., Scott County Engineer G:\PROJECTS\2003\02 _ CSAH 12 alignment\Letter of Understanding 9204.doc - 3 - ~ .' / \,<\ \. f L-~-.---=:~" /,///., . _:::::~::':--~>/ "-~ .......... . .~.~./>.: ---~...~"... /....."""" PLAN SUBJECT TO CHANGE NURP POND COUNTY Ie ~ FOR CONSTRUCTION pared for. Areon Development Company 7625 Metro Blvd. Suite 350 Edina. Minnesota 55439 Stemmer Ridge Prior Lab.. JofinJlesota Call 48 Hours before digging: GOPHER STATE ONE CALL Twin City Areo 651-454-0002 Mn. Toll Free 1-800-252-1166 \. x , I o' 200' 400' 500' L-I 2002101 lSOr06.DWG DMe 11/12/04 Shftt: 1 OF 1 Preliminary Regional Site Map kSUt'. ~