HomeMy WebLinkAbout9B - Knob Hill Second Addn.
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
STAFF AGENDA REPORT
9B
JANE KANSIER, PLANNING COORDINATOR
SUE MCDERMOTT, ASSISTANT CITY ENGINEER
CONSIDER APPROVAL OF AN AMENDMENT TO THE
DEVELOPERS CONTRACT FOR "KNOB HILL SECOND
ADDITION"
FEBRUARY 17, 1998
The purpose of this agenda item is to consider approval of a
request to amend the Developer's Contract for Knob Hill
Second Addition. The final plat and Development Contract
for Knob Hill Second Addition were approved by the City
Council on July 7, 1997. On December 23, 1997, Gold
Nugget Development submitted the attached letter
requesting the City amend the Development Contract for
Knob Hill Second Addition, and reimburse the developer for
costs related to pond excavation. The total reimbursement
requested is $9,125.00.
The final plat of Knob Hill Second Addition is made up of land
included in two preliminary plats. The southerly portion of the
land included in this final plat was part of the preliminary plat
of Knob Hill, approved by the Council on August 1, 1994.
The northerly portion of the site was the preliminary plat of
Knob Hill North, approved by the Council on March 3,1997.
In June, 1997, prior to the approval of the final plats, the
developer applied for and received a grading permit to begin
grading and excavation on this site. The Subdivision
Ordinance allows the City to issue a grading permit once a
preliminary plat has been approved. This grading permit
includes site preparation, pond excavation, and other grading
work. A letter of credit for the grading work is submitted
along with the permit application.
The final plat and development contract for Knob Hill Second
Addition were approved by the City Council on July 7, 1997.
Prior to approval by the City Council, the developer reviewed
and signed the development contract, which included a listing
of all the required fees and reimbursements, as well as the
terms of the contract. Subsequently, the developer
submitted the required letter of credit and fees, and recorded
1:\97fjles\97~ubdiv\final\knobhiI2\amddvcnt.doc P~g~ 1
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
the final plat.
DISCUSSION:
One of the required submittals for a final plat is an estimate
or actual bid for the construction costs of the project. It is the
developer's responsibility to submit these numbers. The staff
checks the figures to determine if they are reasonable and
fairly accurate for the project, but otherwise relies on these
figures. The staff then uses these figures to determine the
amount of the letter of credit, as well as the fees and the
amount of reimbursement for the project.
The City Assessment Policy and the Development Contract
state the City will reimburse the developer for the costs to
construct drainage facilities as required for storm water
control as determined and approved by the City Engineer.
The construction costs of such facilities to be credited is
limited to catch basins, manholes, conduit, pond excavation,
water quality control structures and landscaping around
newly constructed water quality treatment ponds. Pond
excavation is typically included as a common excavation cost
in the grading bid. It is up to the developer to determine the
volume excavated for the pond as well as the amount of
landscaping required, and to provide a breakout of these
costs as a part of the bids. If the costs are not broken out in
this manner, the staff is not responsible for making these
determinations.
The City has paid for pond excavation in other developments,
such as Wilderness Ponds. However, the developer did
provide a breakout of the cost along with his construction
estimates.
ISSUES:
There are two major issues involved in this request. One
issue is the responsibility of the developer. In his letter, the
developer states the reason for this request is to rectify an
oversight which occurred when the storm sewer fees were
compiled for inclusion in the development contract. As noted
above, all fees were based on the information submitted by
the developer. Grading costs were not included as a project
cost because of the previously issued grading permit. It is
the developer's responsibility to supply the staff with bids or
. estimates of the project. The developer also had the
opportunity to review and sign the contract before the City
Council meeting. Since all the fees and reimbursement
amounts were included in the contract, any changes could
have been made before the City Council approval.
The second issue is what kind of precedent approval of this
request will set. If the City approves this amendment, it sets
a precedent for other requests by developers for all types of
reimbursements. For example, we could potentially be asked
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AL TERNA TIVES:
RECOMMENDATION:
ACTION REQUIRED:
ATTACHMENTS:
to amend contracts to reimburse fees at a later date every
time the actual bids are lower or higher than the original
estimates. If this is the case, it would be more advantageous
for the City to do the improvements in new subdivisions as
regular assessment projects. In that way, the City would
control the bidding of the project, and would assess the costs
back to the developer.
The City Attorney has reviewed this request and has
responded in the attached letter. In brief, the City Attorney
concurs with the staffs opinion in this matter. The letter
notes the plans and estimates for storm water drainage
facilities were submitted by the Developer and approved by
the City Engineer, and then incorporated into the
Development Contract. As the letter points out, if the actual
costs of the improvements is less than the estimate, the City
is not entitled to a reimbursement of the difference.
Conversely, the City is not obligated to reimburse the
Developer if the actual cost is greater.
1. Approve the Developer's request and direct the staff to
prepare an amendment to the Development Contract and
a Resolution for City Council approval on the Consent
Agenda. If the Council approves this request, it should
be noted that the City will not reimburse the Developer for
clearing and grubbing costs as requested. The City will
also subtract the 6% Construction Observation Fee and
6% Administration Fee from the reimbursement amount,
since this would have been collected with the
Development Contract.
2. Deny the Developer's Request
3. Defer consideration of this item for specific reasons.
Alternative #2. The present Development Contract is clear
as to its intent. If the Council wishes to change the City's
approach on this issue, it should direct the staff to prepare
the appropriate amendments to the standard Development
Contract to apply to all future developments.
Motion and second to deny this request for
reimbursement.
1.
2.
3.
Contract for Knob Hill Second
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GOLD NUGGET DEVELOPMENT INC.
8857 Zealand Avenue North
Brooklyn Park, Minnesota 554<45
(612) 42<4-<4955
r~~~-~~:~ [I
December 23, 1997
Don Rye, Planning Director
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, MN 55372-1714
RE: Amendment to Development Contract Knob Hill 2nd Addition; Project# 97-43
Dear Mr. Rye,
Please accept this letter as a request to amend the above referenced development contact. The
reason for the amendment request is to rectify an oversight which occurred when the storm sewer
fees were complied for inclusion in the development contract. The grubbing, landscaping and
excavation which are reimbursable expenses to Gold Nugget Development Inc. (GND) were
inadvertently left out of the development contract. Consequently GND was not reimbursed for
this work.
Prior Lakes assessment policy relative to storm sewer improvements calls for the developer to pay
a trunk storm sewer area charge based on net square feet in the project prior to release to the final
plat. The city in turn reimburses the developer for the partial cost of constructing the storm sewer
system. Costs which are eligible for reimbursement include catch basins, manholes, conduit, pond
excavation, control structures and landscaping around water quality treatment ponds (see
paragraph 33 of this projects development contract).
GND was reimbursed a total of$166,526.90 which was the actual bid construction cost for the
storm sewer by S.R. Weidema Inc.. In addition GND should have also been reimbursed for work
done by RC.M. Construction Inc. as follows:
Clearing and Grubbing
Pond Excavation
Turf Establishment
Total Additional Due GND
$ 1500.00
7200.00
425.00
$ 9125.00
Brian Krystofiak, project engineer for Knob Hill 2nd Addition calculated the quantities. The
quantities were then multiplied by the original bid prices from the contractor (see attached letter
from Brian Krystofiak and a copy of the original bid proposal from RC.M. Construction Inc.)
In the event you have questions please contact Brian or myself. Thank you for your anticipated
cooperation in this matter.
Respectfully,
Horst Graser, roject Manager
Gold Nugget Development
attachments
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* PIONEER
~ engineering
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Civil Engineers. Land Planners. Land Surveyors · Landscape Architects
December 22, 1995
Mr. Horst Graser
Gold Nugget Development, Inc.
8857 Zealand Ave. N.
Brooklyn Park, MN 55445
RE: KNOB IllLL 2ND ADDITION
P.E. JOB # 14347
Dear Horst:
The following is a summary of the additional storm sewer costs for reimbursement as per your
request. Also attached is a copy of the original bid proposal from the contractor.
Common Excavation for pond = 8000 C.Y. @ $0.90/CY
Clearing & Grubbing (Approx. $ 150/Tree)(10 Trees)
Turf Establishment = 1 Ac @ $ 425 lAc
Inspection = Approx 6 % of Storm sewer Cost (.06)($170,000)
Design Cost: Total Construction cost stm swr = 170,000 I 658,000
= Approx 25 %; Design Cost = ($ 1200ILot)(54 Lots)(.25)
$7200.00
$1500.00
$ 425.00
$10,200.00
$16.200.00
Total =$35.525.00
If you have any questions or require additional information please call.
Sincerely,
PIONEER ENGINEERING, P.A.
~~/
Brian ~st~~G~
BKmh
enclosure
14347. 1222971tr
2422 Enterprise Drive. Mendota Heights, Minnesota 55120. (612) 681-1914. Fax 681-9488
625 Highway 10 N.E.. 8laine, Minnesota 55434. (612) 783-1880. Fax 783-1883
FROt1 : P I m~EER ENG I NEER I NG, PA
. 05115/1~97 03;31 5073322093
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PHONE NO. 612 783 1883
BGM CONSTRUCTION
Dec. 23 1997 02:43PM P2
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CONTRACT PROPOSAL
FOR
. KNOB HILL 2"4> ADOITION
GRADING
PRIOR LAKE, MINNESOTA
Gold Nugget OQvelopment. 'nc.
clo PIon..r Englne.ring I P .A.
626 Highway 10 N.E.
Blaine, MInnesota 55434
RE: The bid opening has been let for Mav 1a" 1997,2:00 p.m., at Pioneer Engineering.
PA., e2S HIghway 10 N.e.. Blalne, Mlnn8sofs1 65434.
O..r Sit:
The undersigned bidder. having oxamined the shoof the proposed work and ha"lng full knowledgQ of the
conditions under which the wodt m'* be peffonned, hereby propoSGd that he enters into and perfOlJTl5
the contrea aet forth in the Contract Documents. of whiGh this proposal forms a pan, and will do the
construction therein described on the tenns and conditIOns therein &et forth and that he wiR furnish all
requirecllabor. tools. equipmont end materiel$and pay aU incidental costs, alf in ttrlct conformity with th9 '
Contrad Documents, for the roUowlng prices as payment in full.
'" "'" ~ ~ DO :.
1 L.S. Clear & Grub, Oemolttton & @ ~ Q"bO /L.S.= $ ~a ~~ -
DISpoSal
1100 L.F, Slit Fence @ I~ A..F.=$ '.s:~5' ..!
q.O ~ 00
104~OO C.Y. Common Excavation @ 0- IC.Y.=$~
I~ ~'i'-.sb "0
31500 C.Y. Subgrade COlTectlon @ /C.Y.;; , ,..
11100 C.y, Topsoil Re$prMd o~ ~ ss-o ~
@ jC.Y.a $ -
21.0 Ae. Turf Eittlblishment 0 'I;AS ~ lAc. = $._ 8Cf ~$ .,.,
.0 ~
1 Ea. Gl'8vel Entnaneo 0 0500 ~ /Ea. = $ Soa
2762 S.F. Retaining Wa. @ ISC. lEa. · $ 1-/ :l ~ ~c. fS
: ~
TOTAL BASE BID = $~."30J <l.UD..
FRor1P IONEER ENG I NEER I NG, PA
~5/15/1997 09:31 Se73322093
PHONE NO.
612 783 1883
OCM CONSTRUCTION
Dec. 23 1997 02:44PM P3
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: t:lIONI!I!!A
* enst--r1ng
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OMI e!nV1FMJef"8 . ioand "lennIt.. . Land SI.J'~)IOra . Landeoape Arehlteets
ADDENDUM 1#1
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OllADINO CONSTIlUCTlON
fbr
KNOll Hn..L 2MDADDmON
in
PRIOR LAXI, MlNNESOTA
...
COLD NVCiGETDBVELOPMBNT, INe
. !IE'14347
The additions. ~siCll1S, ormlsicms, eorrecUOrlS aM. eWmcetiocu contained hc:rCn shan b~ made to the projoct plans and
l)MC:iiOltia>> ead IhaD be included In the ~ ctwotk and COtai~.~ ..part of the Contract Documents.
~tIJCClI rGIde below to plans and~catia1l shall be used.. a gerunlguicle The CoctractcfS shall ddemUnt for
~ tho work ~ by Addmdum itsnI.
&Ill
IbM .. <<7
NoceIIDd shadins wete added to dcacte the bituminous. remoVll .~I
,~t.-i_
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980 SY RWQO.... and DilPOlo ofExi~ Bituminoua . @
C.) 0 REMOVE AND D~POSE OF EXISTJ;NG BmIMl'NOl1.3
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Tho C~ &ball be rttp<I1IJibl6fbr the rwnovaJ of tho nistins bituminous driveway and disposal of
the ruterials ~ . .~ IGC:ltion oif aite Tho COfJtrac:tor sha1I abo s\,1bc:ut removal areas that ~o not
alnady bliDs..-w. IIld place .' mimnurn f)/.ty offDp5oil.and then seed. The Contractor 'shall vcriff
!be f!Xf.ed of'lWnOV81 at die two ecitting houHa wiCh 00Id NUf5&C Dewlop~. me
D-t 1tEM~A1. 4f'lD bI8POS~ 9P EXISTING Bn-uMij'-lQl.JS
MM.urtn\.-J& UId pa)'lnGlt AIr tbo ~vaJ and diaposal of~.ni,tin& bituminous dri\'eWsylbaU be at
tho unit priCl p<< .quarw yard. Subcutcin8. topsmlaPd ltodii1achalI be axuic;fcred incldlGal to this
atan. .
UU linterpri_ ~Iv. . M..,... ",haI. Mlnn.... &5120 · (8' 2) 881-191 <4 . "ex 081.948.
826 HlOhwav 10 N.e-.. aiel".. Ml"~ ~. (e'~713.'eeo. Fax 783.1883
FROM,: PIONEER ENGINEERING, PR
~S/15/199~ eS:Jl 5e73322e93
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PHONE NO.
612 783 1883
8C~ CONSiRUCT10N
Dec. 23 1997 02:44PM P4
t"~!:. v~
,In subrnlttlrlV this bid, it Is understood that the right Ie reserved by thl! Owner to reject any or all
bids. and to waive In-egulartlle.ln bidding.
Receipt of Addendum NO.-L-.. through
~
is acknowledged.
"a. C,.rd. G\AJ~1I tmc~ ~c..
Contractor
BY;~
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ADDRESS: P.O. ~o'( \:1
F='~\ 6A.~\..~ , ~ 1 ~'~
PHONE: ~I~ l~o -'\,S'\l#
~01..'
SUBCONTRACTORS:
1.
2.
3.
tAMP BELL KNUTSON
Feb 10,98 15:04 No.003 P.02
CAMPBELL KNUTSON
Pl'ofessiorwl A~~("K:jal inn
Arrorn(,'y~ at J _,lw
Thllllla:\ J. Cnl11plx'lI
"ll!:l'! N, KI1~I("l11
Thlllni\~ M. Sl'C.1l1
Ulilltt H, KII,'I:;,,'h
Slll'.~,,111 L.'a P,\(l'
(61 Z) 4SZ-S000
~IlX (612) 4.52--5550
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j"d J. j'"l1l1ik
AIllI...." Ml'Duw...lI Pl"'''!..'
M:ttthl'W K. F1r"kl.
J"hll F. Kelly
MHullt.w J, T\.li
}"hr~lInit" M. McC:.r,,)I1
Ue.-.rge'J'. SI.:phemnl1
. Alw Ul'i'll.wd in Vo'/i.~l "11.\ ill
Writer's ))ir~ct Dilll: 234-6216
Writer's Fox: 452-5550
(.lJ"(;Ollll."'/
Oary (J. rlldl'
Pebruary 10, 1998
Mr. David Sellegrcn
Dougherty, Rumhle & Butler
3500 Fifth Street Towers
150 South Fifth Street
Minneapolis, MN 55402
Re: City of Prior Lake I Knob Hill 2nd Addition & Maple Hill 2nd Addition
Our File No. 3693/068 (CPL-1ZI>.
Dear Mr. Sellegren:
Suesan Lea Pace has asked that I respond to your leller of January 22, 1998 regarding the issues
relating to the Developmem Contracts referenced above. In ft:sponse lo your let.tel' dated January 22,
1998, I will firsl address the issue of costs associated wit.h the;; cllllSlruction of the dl'ainage facility as
it relates to each of your clients, and will then addre;;ss the Development Fees for Maple Hill 2nd
Addition.
The City disagrees with your position that Exhibit "E" has no relevance to paragraph 33 as to
what costs are to be reimbursed for items mentioned therein. Paragraph 33 specifically states that: "The
Ciry will reimburse che Developer for costs to CO{ISl/'UCf drainw!e rac:ililif!~ as required for STonn W(ller
control as delermined and aooroved by rile City J::n:iineer. [emphasis added]". The plans to construct
the drainage facilities for stonn water ("Storm Sewer") and the costs relat.ed to said construction
("Costs") (See exhibiT "E"), were submiued by your client. to the City Engineer who approved the
Cosr.s. Those Costs were then incorporated into lhe respecrive Development Contracts. (See paragraph
7c. Storm Sewer; Paragraph 28 under Developer Improvement Cos~; and Exhibits D & E). The Costs
for Storm Sewer reimbursement ($166,526.90 and $54,516.00) in the Development Contracts for Knob
Hill and Maple Hill are specitically set forth in Paragraph 28 under Dc.:vdoper Improvement Cose and
in item D of Exhibit "D" in each Developmcnt Contract. E~hibjl "E" is incorporated in E~hibil "D"
and is the amount that the parties agreed thc City would reimburse your client under Paragraph 33, just
as item A of Exhibit D references the amount (if <my) that the City would reimburse your client for
ovcrsizing various jtem$. The amount set forth in Exhibit "D" for Slllml Sewer is [he amount that the
City actually reimbursed each of your diems pursuanr to the De;;ve;;lopmenl Contract. If the Storm Sewer
improvemems did not cost your clients thae amoum, the City j~ not enlilled to be reimbursed for the
difference between the actual COSlS and the amount agreed upon. Conversely, the City is not obligated
to reimburse your clients if the actual costs are grt:Clter.
SLlilt:317 · E:1g:mdalt'OmccCcnrcr · UHOC(1rpoJ't1t~~Ccntl~rClJTv~ · E"g,Ul,MNSSI21
CAMPBELL KNUTSON
Feb 10,98 15:04 No.003 P.03'
D. SelIegren
February 10, 1998
rage 2 of 2
The Development Fees paid by your client UD<Je;:r the Maple Hill 2nd Addition again were agreed
to by your client, Maple Hill Company LLC, under the terms of the Development Contract. Your
client provided the infon1l8tion use;:d to calculate the Developmenl Fees and had the opportunity to
review the same prior to e"ecuting the Developlllem Contra~t. Therefore, the City is not required to
recalculate the Development Fees after the fa~t.
If you have any questions or further comme;:nls, please call me at your convenience. Thank you.
Very truly yours,
CAMPBRI .I, KNUTSON
Professional Association
By:
JFK:kgm
cc: Suesall Lea Pace, City Attornl;y
Frank Boyles, City Manager
Don Rye, Planning Director
Jane Kansier, Planning Coordinator
DEVELOP~ffiNTCONTRACT
KNOB IllLL SECOND ADDITION
PROJECT #97-43
AGREElVIENT dated July 7, 1997, by and between the CITY OF PRIOR LAKE, a Minnesota
municipal corporation ("City"), and Gold Nugget Development, Inc. (the "Developer").
1. REOUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a
Plat for Knob Hill Second Addition (referred to in this Contract as the "Plat"). The land is legally
described as shown on anached Exhibit A which is incorporated herein as if fully set forth.
2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the Plat on condition
that the Developer enter into this Contract, furnish the security required by it, and record the Plat with
the County Recorder or Registrar of Titles within 60 days after the City Council approves the fmal Plat.
3. RIGHT TO PROCEED. Within the Plat or land to be planed, the Developer may not
construct sewer lines, water lines, streets, utilities, public or private improvements, or any buildings
until all the following conditions have been satisfied: 1) this Contract has been fully executed by both
parties, 2) the necessary security, development fees and insurance have been received by the City, and
3) the City Engineer or Designee has issued a lener that all conditions have been satisfied and that the
Developer may proceed.
4. PHASED DEVELOPLtfENT. If the Plat is a phase of a multiphased preliminary Plat,
the City may refuse to approve fmal Plats of subsequent phases if the Developer has breached this
Contract or the Resolution approving the Final Plat and the breach has not been remedied. Development
of subsequent phases may not proceed until Development Contracts for such phases are approved by the
City. Fees and charges collected by the City in connection with infrastructure and public improvements
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are not being imposed on outlots, if any, in the Plat that are designated in an approved preliminary Plat
for future subdivision into lots and blocks. Such charges will be calculated and imposed when the outlots
are subdivided into lots and blocks.
5. PRELli141NARY PLAT STATUS. If the Plat is a phase of a multiphased preliminary
Plat, the Developer shall submit a Staging Plan for City Council approval which may allow the
Developer more than one (1) year to subdivide the property into lots and blocks.
6. DEVELOP"1t/ENT PLANS. The Plat shall be developed in accordance with the
following plans. The plans shall not be attached to this Contract, but are incorporated by reference and
made a pan of this Contract as if fully set forth herein. If the plans vary from the written terms of this
Contract, the written terms shall control. The plans are:
Plan A --
Approved Final Plat Dated June 13, 1997 (Prepared by Pioneer
Engineering)
Plan B --
Final Grading, Development, and Erosion Control Planes). The soil
erosion plan must also be approved by the Prior Lake/Spring Lake
Watershed District. Dated June 20, 1997 (prepared by Pioneer
Engineering)
Plan C --
Tree Preservation and Replacement Plans and Landscaping Plan Dated
June 24, 1997 (prepared by Pioneer Engineering)
Plan D --
One set of mylar reproducible Plans and Specifications for Developer
Improvements
Plan E --
Street Lighting Plan Dated 6/6/97 (prepared by Shakopee Public Utilities)
7. DEVELOPER li\1PROVEMENTS. The Developer shall install and pay for the
following:
A. Sanitary Sewer System
B. Water System
C. Storm Sewer
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D. Streets
E. Concrete Curb and Gutter
F. Street Lights
G. Site Grading and Ponding
H. Underground Utilities
1. Setting of Iron Monuments
J. Sidewalks and Trails
K Tree Preservation and Replacement
The improvements shall be installed in accordance with the City subdivision ordinance; City
standard specifications for utilities and street construction; the City's Public Works Design Manual and
any other applicable City ordinances, all of which are incorporated herein by reference. The Developer
shall submit plans and specifications which have been prepared by a Minnesota registered professional
civil engineer to the City for approval by the City Engineer. The Developer shall obtain all necessary
permits from the Metropolitan Council and other agencies before proceeding with construction. The
Developer, its contractors and subcontractors, shall follow all instructions received from the City's
authorized personnel. The Developer or his engineer shall schedule a preconstruction meeting with all
parties concerned, including the City staff, to review the program for the construction work. Before the
security for the completion of utilities is released, iron monuments must be installed in accordance with
Minn. Stat. S 505.02. The Developer's surveyor shall submit a written notice to the City certifying that
the monuments have been installed.
8. CONSTRUCTION OBSERV A TlON.
a. The City's authorized personnel shall inspect the DEVELOPER
IMPROVEMENTS in accordance with the Public Works Design Manual. Inspection services by
the City shall include:
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1. Inspection of required improvements which include grading, sanitary
sewer, watermain, storm sewer/ponding and street system.
2. Documentation of construction work and all testing of improvements.
3. As-built location dimensions for sanitary sewer, watermain and storm
sewer facilities. The City will prepare as-built record drawings.
9. DEVELOPER SERViCES. The Developer shall be responsible for providing all other
construction services including, but not limited to:
a. Construction surveying
b. As-built drawings of grading plans.
c. As-built elevations of all utility improvements, including but not limited to top nut
of hydrants, manhole rims, manhole inverts. (Tie dimensions to sewer and water services from
City staff or City consultants.)
d. Project Testing: The Developer is responsible through its testing company, at the
Developer's cost, to provide testing to certify that Developer Improvements were completed in
compliance with the approved final plans and specifications. The personnel performing the
testing shall be certified by the Minnesota Deparnnent of Transportation. The City Engineer may
require additional testing if in his opinion adequate testing is not being performed. The cost of
additional testing is to be paid by the Developer.
e. Lot comers and monuments
10. BOULEVARD AND AREA RESTORATiON. The Developer shall seed or lay cultured
sod in all boulevards within 30 days of the completion of street related improvements and restore all
other areas disturbed by the development grading operation in accordance with the approved erosion
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control plan. Upon request of the City Engineer, the Developer shall remove the silt fences after turf
establishment.
11.
SUBDIVISION MONUMENTS.
The Developer shall install all subdivision
monumentation within one year from the date of recording the plat, or the monumentation shall be
installed on a per lot basis at the time the building permit for the subject lot is issued, whichever occurs
first. At the end of the one year period from recording of the Plat, the Developer shall submit to the
City Engineer written verification by a registered land surveyor that the required monuments have been
installed throughout the plat.
12. OCCUPANCY. A permanent Certificate of Occupancy shall not be issued for any
building in the plat until water and sanitary sewer improvements have been installed and the streets have
been completed and the first lift of bituminous has been placed and said improvements have been
inspected and determined by the City to be available for use.
13. Tlil,tlE OF PERFORiWANCE. The Developer shall install all required public
improvements by December 31, 1999, with the exception of the fmal wear course of asphalt on streets.
The fmal wear course on streets shall be installed the first summer after the base layer of asphalt has
been in place for one freeze thaw cycle. The Developer may, however, request an extension of time
from the City. If an extension is granted, it shall be in writing and conditioned upon updating the
security posted by the Developer to reflect cost increases and the extended completion date.
14. LICENSE. The Developer hereby grants the City, its agents, employees, officers and
contractors a non-revocable license to enter the Plat to perform all work and inspections deemed
appropriate by the City in conjunction with Plat development.
15. EROSION CONTROL. Prior to initiating site grading, the erosion control plan, Plan B,
shall be implemented by the Developer and inspected and approved by the City. The City may impose
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additional erosion control requirements if, in the City Engineer's opinion they are necessary to meet
erosion control objectives at no cost to the City. All areas disturbed by the excavation and backfilling
operations shall be reseeded forthwith after the completion of the work in that area. All seeded areas
shall be mulched, and disc anchored as necessary for seed retention. The parties recognize that time is of
the essence in controlling erosion. If the Developer does not comply with the erosion control plan and
schedule or supplementary instructions received from the City, the City may take such action as it deems
appropriate to control erosion. The City will endeavor to notify the Developer in advance of any
proposed action, but failure of the City to do so will not affect the Developer's and City's rights or
obligations hereunder. If the Developer does not reimburse the City for any cost the City incurred for
such work within ten (10) days, the City may draw down the letter of credit to pay any costs. No
development, utility or street construction will be allowed unless the Plat is in full compliance with the
erosion control requirements.
16. CLEAN UP. The Developer shall daily clean dirt and debris from streets that has
resulted from construction work by the Developer or its agents. Prior to any construction in the Plat, the
Developer shall identify in writing a responsible party for erosion control, street cleaning, and street
sweep mg.
17. GRADING PLAN. The Plat shall be graded in accordance with the approved grading,
development and erosion control planes), Plan "B". The plan shall conform to City of Prior Lake Public
Works Design Manual.
Before the City releases the security, the Developer shall provide the City with an "as
built" grading plan and a certification by a registered land surveyor or engineer that all ponds, swales,
and ditches have been constructed on public easements or land owned by the City. The "as built" plan
shall include field verified elevations of the following: a) cross sections of ponds, b) location and
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elevations along all swales and ditches, and c) lot corners and house pads. The City may withhold
issuance of building permits until the approved certified grading plan is on fIle with the City and all
erosion control measures are in place as determined by the City Engineer.
18.
OWNERSHIP OF IMPROVEMENTS.
Upon completion of the Developer
Improvements required by this Contract and final written acceptance by the City Engineer, the
improvements lying within public easements shall become City property without funher notice or action.
19. CITY ADiWINISTRATION. The Developer shall pay a fee for City administration. City
administration will include all activities necessary to implement this Developer's Contract. These
activities include, but are not limited to, preparation of the Development Contract, consultation with
Developer and its engineer on the status of or problems regarding the project, project monitoring during
the warranty period, processing of requests for reduction in security. and City legal expenses. Fees for
this service shall be SL'<. percent (6 %) of the estimated construction cost as detailed in Exhibit E, less
oversizing costs outlined in Exhibit D, Section A, assuming normal construction and project scheduling.
20. CITY CONSTRUCTION OBSERVATION. The Developer shall pay six percent (6%)
of the estimated construction cost, less oversizing costs outlined in Exhibit D, Section A, for
construction observation performed by the City's authorized personnel. Construction observation shall
include, but is not limited to, part or full-time inspection of proposed grading, public utilities and street
construction, and preparation of "as-built" drawings.
21. TRUNK STOR.J.W SEWER AREA CHARGE. The Developer shall pay a trunk storm
sewer area connection charge of $134,132.21 'prior to the City signing the fmal Plat. The amount was
calculated as follows: 798,406 square feet at 16.8C per square foot.
22. SANITARY SEWER AND WATERMAIN TRUNK AREA CHARGES. A Sanitary
sewer and watermain trunk area charge of $22,820.00 shall be paid by the Developer for sanitary sewer
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and watermain trunk improvements prior to the City signing the fInal Plat. The amount was calculated as
follows: 6.52 acres at $3500.00 per acre.
23. COLLECTOR STREET FEE. This Development Contract requires the Developer to
pay a collector street fee of $27,450.00 for collector street improvements prior to the City signing the
fmal Plat. The amount was calculated as follows: 18.3 acres at $1500.00 per acre.
24. PARK AND TRAIL DEDICATION. The Developer shall dedicate to the public an
amount of cash or land or a combination of both as established by the Parks and Recreation Director.
The land to be dedicated shall be approved by the City Park and Recreation Director and consistent with
City Code provisions. A portion of the dedication requirement for this plat was satisfIed by the park
dedication in the original Knob Hill plat. The remaining dedication is based on a total area of 17.01
acres. The Park Dedication is a combination of land and cash, so the amount of land dedicated as park is
deducted from the total acreage. and the cash amount is based on the remaining acres. The land
dedication will be 0.15 acres and the cash contribution will be $21,918.00. This amount was calculated
as follows: Gross area of the plat: 17.01 acres minus 0.15 acres dedication equals 16.86 acres X 10%
X $13,000.00 (the current fair market value of the land per acre as established by the Prior Lake City
Council). The fee shall be paid prior to the City signing the fmal Plat.
25. TRAFFIC CONTROL SIGNS. STREET SIGNS. AND STREET LIGHTS AND
OPERATIONAL COSTS. Before the City signs the fmal Plat, the Developer shall pay to the City
$200.00 for installation of traffic control signs and street signs. The Developer shall be fmancially
responsible for the installation of street identifIcation signs and non-mechanical and non-electrical traffic
control signs. Street signs will be in conformance with the names as indicated on the Plat and pursuant
to City standards. The actual number and location of signs to be installed shall be determined by the
City and actual installation shall be performed by City authorized personnel. The Developer is
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responsible for the installation of the street lighting. The Developer shall pay the full capital cost of
every light to be installed; this includes poles, fIxtures, underground wiring, and all appurtenant work.
The street light plan must be acceptable to the City Engineer and in accordance with Exhibit F.
26. LANDSCAPING (Sin!!le-Familv Residential>. Each residential lot in the Plat must have
at least two (2) front yard trees as required in the Subdivision provisions of the City Code. The
Developer or lot purchaser shall plant the two (2) front yard trees on every lot in the Plat which does not
already meet this requirement at the time of the building permit. The trees shall be planted according to
the requirements for subdivision trees as set forth in the Subdivision provisions of the City Code. The
Developer or lot purchaser shall sod the front yard, boulevard, and side yards to the rear of every
structure on every lot at the time of the building permit. If this section is to be satisfIed by existing
trees, a tree protection security may also be required. Upon satisfactory completion of the landscaping,
the escrow funds, without interest, less any draw made by the City, shall be returned to the person who
deposited the funds with the City. If the required landscaping is not installed the City is granted a
license to enter upon a lot and install the landscaping using the escrowed funds deposited by the builder
at the time the building permit was issued.
27. TREE PRESERVATION AND REPLACEMENT. Subject to approved Plan C, the
Developer shall provide a fmancial guarantee of $27,309.45 based on an amount equal to 125% of the
estimated cost to furnish and plant the replacement trees. The estimated cost shall be provided by the
Developer subject to approval by the City, and shall be at least as much as the reasonable amount
charged by nurseries for the furnishing and planting of replacement trees. The security shall be
maintained for a least one (1) year after the date the last replacement tree has been planted. At the end
of such year, the portion of the security equal to 125 % of the estimated cost of the replacement trees
which are alive and healthy may be released. Any portion of the security not entitled to be released
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shall be maintained and shall secure the Developer's obligation to remove and replant replacement trees
which are not alive or are unhealthy, and to replant missing trees. Upon completion of the replanting of
these trees, the entire security may be released.
28. SECURITY. To guarantee compliance with the terms of this Contract, payment of real
estate taxes including interest and penalties, payment of special assessments, payment of the costs of all
public improvements, and construction of all public improvements, the Developer shall furnish the City
with an Irrevocable Letter of Credit in an amount equal to 125 % of the estimated Developer
Improvement Costs. The Irrevocable Letter of Credit shall be in the form attached hereto, from a bank
("Security") for $856,598.20, plus a cash fee of $285,747.57 for City Development Fees. The amount
of the Security was calculated as follows:
DEVELOPER INIPROVEMENTS COSTS:
Sanitary Sewer
$
103,609.42
Watermain
$
148,343.31
Storm Sewer
$
166,526.90
Streets/Sidewalks/Trails
$
244,951.37
Tree Preservation and Replacement
$
21,847.56
ESTIlVIATED DEVELOPER INIPROVEMENTS SUBTOTAL
$
685.278.56
X 1.25
TOTAL FOR IRREVOCABLE LETTER OF CREDIT Al\10UNT $
856.598.20
CITY DEVELOPMENT ~ES:
City Administration Fee (6.0%) (19)
$
39,613.68
City Construction Observation (6%) (20)
$
39,613.68
Trunk Storm Sewer Area Charges (21)
$
134,132.21
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-------..---
"
Sanitary Sewer and Watermain Trunk Area Charges (22) $ 22,820.00
Collector Street Fees (23) $ 27,450.00
Park Dedication Fee (if in lieu of land) (24) $ 21,918.00
Street and Traffic Control Signs (25) $ 200.00
TOTAL CITY DEVELOPJ.\tIENT FEES $ 285.747.57
This breakdown is for historical reference; it is not a restriction on the use of the Security. The
bank shall be subject to the approval of the City Manager. The Security shall be for a term ending
December 31, 1999. Individual Security instruments may be for shorter terms provided they are
replaced at least sixty (60) days prior to their expiration. The City may draw down the Security, with<?ut
notice, for any violation of the terms of this Contract or if the Security is allowed to lapse prior to the
end of the required term. If the required Developer Improvements are not completed at least thirty (30)
days prior to the expiration of the Security, the City may also draw it down. If the Security is drawn
down, the proceeds shall be used to cure the default.
29. REDUCTION OF SECURITY. Upon receipt of proof satisfactory to the City that work
has been completed and financial obligations to the City have been satisfied, with City approval the
Security may be reduced from time to time by seventy-five percent (75 %) of the financial obligations
that have been satisfied. Twenty-five percent (25%) of the Security shall be retained until all
improvements have been completed, all fmancial obligations to the City satisfied. and the required "as-
built" grading plans and information have been received by the City. The City Public Works Design
Manual outlines the procedures for Security reductions.
30. WARRANTY. The Developer warrants all improvements required to be constructed by it
pursuant to this Contract against poor material and faulty workmanship. The warranty period for streets
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is one year. The warranty period for underground utilities is two years. The warranty period on streets
shall commence after the fmal wear course has been installed and accepted by the City and the warranty
period on underground utilities shall commence following their completion and acceptance by the City.
The Developer shall post maintenance bonds to secure the warranties. All trees shall be warranted to be
alive, of good quality, and disease free for twelve (12) months after planting. Any replacements shall be
warranted for twelve (12) months from the time of planting. The City shall retain twenty-five percent
(25 %) of the Security posted by the Developer until the Developer Improvements are accepted by the
City Engineer and the bonds are furnished to the City. The security retainage may be used to pay for
warranty work. The City standard specifications for utilities and street construction identify the
procedures for final acceptance of streets and utilities.
31. REDUCTION OF SECURITY TO FIVE PERCENT (5%). The Security guaranteeing
satisfactory performance of the Developer Improvements can be reduced to 5 % of the original cost of
the construction costs as set forth in Paragraph 28 by the City Engineer in writing and by providing the
City a performance bond or a warranty bond from the Developer or its contractors in an amount equal to
the construction costs which shall be in force for one (1) year for streets and two (2) years for utilities
(the "Warranty Period") following acceptance of all required improvements and shall guarantee
satisfactory performance of such improvements. All punch list items must be completed before a
reduction in Security will be considered. The Warranty Period shall begin effective the date that the
City Engineer accepts, in writing, all of the completed Developer Improvements.
The five percent (5 %) Security shall not be released until the Developer provides the City
Engineer with a certificate from the Developer's land surveyor stating that all irons have been set
following site grading and utility and street construction.
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32. OVERSIZING. City and Developer agree that the Developer Improvements consisting
of watermain on Pike Lake Trail should be oversized for the benefit of future development. As a special
condition of the Knob Hill Development Contract dated May 1, 1995, the City will reimburse the
Developer for the cost of oversizing Pike Lake Trail from a 7 -ton to a 9-ton aggregate base and concrete
to construct a sidewalk along Pike Lake Trail. City and Developer agree that the cost of watermain and
street oversizing and sidewalk construction to be reimbursed to the Developer is 525,049.09 based upon
a cost estimate as determined by both quotes received from the Developer's subcontractor and the City
Engineer using the City's Assessment Policy based on a fmal engineering design. The calculation for
oversizing and sidewalk construction is attached as Exhibit D.
If the City Engineer determines additional work as the result of oversizing is required, the City
shall reimburse the Developer for the costs associated with this work.
33. STORiH WATER DRAINAGE IiHPROVEMENTS. The City will reimburse the
Developer for the costs to construct drainage facilities as required for storm water control as determined
and approved by the City Engineer. The construction cost of such facilities to be credited shall be
limited to catch basins, manholes, conduit, pond excavation, water quality control structures and
landscaping around newly constructed water quality treatment ponds.
34. CLAIiHS.
A. City Authorized to Commence Interpleader Action. In the event that the City
receives claims from labor, materialmen, or others that work required by this Contract has been
performed, the sums due them have not been paid, and the laborers, materialmen, or others are seeking
payment from the City, the Developer hereby authorizes the City to commence an Interpleader action
pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District CourtS, to draw upon the
Security in an amount up to 125 % of the claim(s) and deposit the funds in compliance with the Rule, and
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upon such deposit, the Developer shall release, discharge, and dismiss the City from any further
proceedings as it pertains to the letters of credit deposited with the District Court, except that the Court
shall retain jurisdiction to determine attorneys' fees pursuant to this Contract.
B. Prompt Payment to Subcontractors Required. The Developer shall pay any
subcontractor within ten (10) days of the Developer's receipt of payment by the City for undisputed
services provided by the subcontractor. If the Developer fails within that time to pay the subcontractor
any undisputed amount for which the Developer has received payment by the City, the Developer shall
pay interest to the subcontractor on the unpaid amount at the rate of 11/2 percent (1.5 %) per month or
any part of a month. The minimum monthly interest penalty payment for an unpaid balance of $100 or
more is $10. For an unpaid balance of less than $100, the Developer shall pay the actual interest
penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest
penalties from the Developer shall be awarded its costs and disbursement, including attorney's fees.
incurred in bringing the action. (See Minn. Stat. 9471.425, Subd. 4a.)
35. SPECIAL PROVISIONS. The following special provisions shall apply to Plat
development:
A. Implementation of the conditions listed in the Resolution approving the fmal plat.
B. The Developer is required to submit the fInal Plat in electronic format. The
electronic format shall be compatible with the City's software.
C. The provisions of Minn. Stat. 9462.358 are incorporated herein as if fully set
forth. To the extent this Contract or the City's ordinances differ form the statute, the more stringent
shall apply.
36. RESPONSIBILITY FOR COSTS.
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A. Once the City Engineer approves the construction costs or estimates, there will
not be any reimbursement to the City by the Developer or by the Developer to the City for "Other
Costs" as set forth herein.
B. The Developer shall hold the City and its officers, employees, and agents
harmless from claims made by itself and third parties for damages sustained or costs incurred resulting
from Plat approval and development. The Developer shall indemnify the City and its officers,
employees, and agents for all costs, damages, or expenses which the City may payor incur in
consequence of such claims, including attorneys' fees.
C. The Developer shall reimburse the City for costs incurred in the enforcement of
this Contract, including engineering and attorneys I fees.
D. The Developer shall pay in full all bills submitted to it by the City for obligations
incurred under this Contract within thirty (30) days after receipt. If the bills are not paid on time, the
City may halt Plat development and construction until the bills are paid in full. Bills not paid within
thirty (30) days shall accrue interest at the rate of eighteen percent (18%) per year.
37. DEVELOPER'S DEFAULT. In the event of default by the Developer as to any of the
work to be performed by it hereunder, the City may, at its option, perform the work and the Developer
shall promptly reimburse the City for any expense incurred by the City, provided the Developer, except
in an emergency as determined by the City, is fIrst given notice of the work in default, not less than 48
hours in advance. This Contract is a license for the City to act, and it shall not be necessary for the City
to seek a Court order for permission to enter the land. When the City does any. such work, the City
may, in addition to its other remedies, assess the cost in whole or in part against all or any portion of the
property within the Plat. The Developer hereby waives any and all procedural or substantive objections
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to any special assessment levied to pay the cost to remedy a Developer default, including but not limited
to hearing requirements and any claim that the assessment exceeds the benefit to the Property.
38. INDEMNIFICATION. Developer shall indemnify, defend, and hold the City, its
Council, agents, employees, attorneys and representatives hannless against and in respect of any and all
claims, demands, actions, suits, proceedings, liens, losses, costs, expenses, obligations, liabilities,
damages, recoveries, and deficiencies, including interest, penalties, and attorneys' fees, that the City
incurs or suffers, which arise out of, result from or relate to this Development Contract.
39. jl1ISCELLANEOUS.
A. The Developer represents to the City that the Plat complies with all city, county,
metropolitan, state, and federal laws and regulations, including but not limited to: subdivision
ordinances, zoning ordinances, and environmental regulations. If the City determines that the Plat does
not comply, the City may, at its option, refuse to allow construction or development work in the Plat
until the Developer does comply. Upon the City's demand, the Developer shall cease work until there is
compliance.
B. Developer shall be responsible for all street maintenance until final written
acceptance by the City of the Developer Improvements. Warning signs and detour signs, if determined
to be necessary by the City Engineer, shall be placed when hazards develop in streets to prevent the
public from traveling on same and directing attention to detours. If and when streets become
impassable, such streets shall be barricaded and closed.
C. Third parties shall have no recourse against the City under this Contract.
D. Breach of the terms of this Contract by the Developer shall be grounds for denial
of building permits, including lots sold to third parties.
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r,
.d
>II ....
E. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this
Contract is for any reason held invalid, such decision shall not affect the validity of the remaining
portion of this Contract.
F. Grading, curbing, and one lift of bituminous shall be installed and accepted on all
public streets prior to issuance of any certificates of occupancy, except for model purposes only, a
maximum of ten percent (10%) of the total lots in the active phase of the subdivision may be issued
building permits prior to utility and street construction. All such lots must be readily accessible for
inspection by way of a two wheel drive vehicle, but in no case shall the distance exceed 300 feet of an
existing roadway. If certificates of occupancy are issued prior to the completion and acceptance of
Developer Improvements, the Developer assumes all liability and costs resulting in delays in completion
of Developer Improvements and damage to Developer Improvements caused by the City, Developer, its
contractors, subcontractors, materialmen, employees, agents, or third parties. No sewer and water
connection permits may be issued and no permanent certificates of occupancy may be issued until the
streets needed for access have been paved with a bituminous surface and the Developer Improvements
including utilities are accepted by the City Engineer.
G. The action or inaction of the City shall not constitute a waiver or amendment to
the provisions of this Contract. To be binding, amendments or waivers shall be 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 Contract shall not be a waiver or release.
H. This Contract shall run with the land. The Developer, at his/her sole expense,
shall record this Contract against the title to the property within ten (10) days of the City Council's
approval of the Contract. The Developer shall provide the City with a recorded copy of the Contract.
The Developer covenants with the City, its successors and assigns, that the Developer is well seized in
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fee title of the property being fmal platted and/or has obtained consents to this Contract, in the form
attached hereto, from all parties who have an interest in the property; that there are no unrecorded
interests in the property being fmal platted; and that the Developer will indemnify and hold the City
harmless for any breach of the foregoing covenants.
1. Developer, at its sole cost and expense, shall take out and maintain or cause to be
taken out and maintained, until the expiration of the warranty period(s) on the Developer Improvements,
public liability and property damage insurance covering personal injury, including death, and claims for
property damage which may arise out of Developer's work or the work of its subcontractors or by one
directly or indirectly employed by any of them. Limits for bodily injury and death shall be not less than
$1,000,000 for one person and $2,000,000 for each occurrence; limits for property damage shall be not
less than $500:000 for each occurrence; or a combination single limit policy of $1,000,000 or more.
The City shall be named as an additional insured on the policy, and the Developer shall file with the
City a certificate evidencing coverage prior to the City signing the Plat. The certificate shall provide
that the City must be given thirty (30) days advance written notice of the cancellation of the insurance.
J. Each right, power or remedy herein conferred upon the City is cumulative and in
addition to every other right, power or remedy, express or implied, now or hereafter arising, available
to City, at law or in equity, or under any other agreement, and each and every right, power and remedy
herein set forth or otherwise so existing may be exercised from time to time as often and in such order
as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time
thereafter any other right, power or remedy.
K. The Developer may not assign this Contract without the prior written approval of
the City Council. The Developer's 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.
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:..
40. Ai\tfENDMENTS. Developer hereby acknowledges that the City is working with the
Developer Community through a series of "Developer Workshops" to standardize its Development
Contract. If the City Council approves a standardized Development Contract, and the terms, provisions
or conditions thereof differ materially from the terms, provision or conditions herein, City agrees it will
amend this Development Contract, if requested by the Developer, to be consistent with the provisions
and the approved standardized Development Contract referenced herein. If a standardized Development
Contract provides for fees that differ from those set forth in this Development Contract, the fees in this
Development Contract will be amended to be consistent with the fees established in a standardized
contract. Not withstanding the foregoing, no amendment to this contract shall be made unless both
parties agree in writing to the amendment. The provisions of this paragraph shall be null and void',
without any further action, one (1) year from the date the City Council approves this Development
Contract.
41. NOTICES. Required Notices to the Developer shall be in writing, and shall be either
hand delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at
the following address: Gold Nugget Development, Inc., 8857 Zealand Avenue North, Brooklyn Park,
MN 55445. Notices to the City shall be in writing and shall be either hand delivered to the City
Manager, or mailed to the City by certified mail in care of the City Manager at the following address:
City of Prior Lake, 16200 Eagle Creek Avenue, Prior Lake, Minnesota 55372-1714. Concurrent with
providing Notice to the City, Notice(s) shall be served upon the City Attorney Sues an Lea Pace, Esq. at
Campbell, Knutson, Scott & Fuchs, P.A., 1380 Corporate Center Curve, Suite 317, Eagan, Minnesota
55121.
42. INTERPRETATION. This agreement 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
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import, without reference to any particular section or subdivision, refer to this Contract as a whole
rather than to any particular section or subdivision hereof. Titles in this Contract are inserted for
convenience of reference only and shall be disregarded in constructing or interpreting any of its
provisions .
43. SEVERABILITY. In the event any provisions of this Contract shall be held invalid,
illegal, or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or
render unenforceable any other provision hereof, and the remaining provisions shall not in any way be
affected or impaired thereby.
44.
COUNTERPARTS.
This Contract may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute one and the same
instrument.
45. JURISDICTION. This Contract shall be governed by the laws of the State of
Minnesota.
CITY OF PRIOR LAKE
(SEAL)
By:
Its:
Reviewed for Form and Execution:
By: ~~id- ~
(
Suesan Lea Pace
City Attorney
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, "-"'I
...-
By:
Its:
STATE OF MINNESOTA )
( 55.
COUNTY OF SCOTT )
The foregoing instrument was acknowledged before me this ~ day of \U,t,L1 , 197J
by Lydia Andren, Mayor, and by Frank Boyles, City Manager, of the City of P~innesota
municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City
Council. Ck.n{{
NOTARY PUBLI
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this 3rd day of JuLy-
19 jJ by ~) N./ / -.') U
CONNIE M. CARLSON
NOTARY PUBLIC-MINNESOTA
DRAFTED BY:
Campbell, Knutson, Scott & Fuchs, P.A.
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(612) 452-5000
SLP:kgrn
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FEE OWNER CONSENT
TO
DEVELOPMENT CONTRACT
, fee owners of all or part of
the subject property, the development of which is governed by the foregoing Development Contract,
affIrm and consent to the provisions thereof and agree to be bound by the provisions as the same may
apply to that portion of the subject property owned by them.
Dated this _ day of
,'19_.
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
19_, by
NOTARY PUBLIC
DRAFTED BY:
Campbell, Knutson, Scott
& Fuchs, P.A.
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesorn 55121
(612) 452-5000
SLP:kgm
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06/25/97
MORTGAGE CONSENT
TO
DEVELOPl\1ENT CONTRACT
, which holds a mortgage on
the subject property, the development of which is governed by the foregoing Development Contract,
agrees that the Development Contract shall remain in full force and effect even if it forecloses on its
mortgage.
Dated this _ day of
,19_
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
19_, by
NOTARY PUBLIC
DRAFTED BY:
Campbell, Knutson, Scott
& Fuchs, P.A.
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(612) 452-5000
SLP:kgm
I: \97fi1es\97 subdiv\final\knobhiI2\dvcntrct. doc 23
06/25/97
CONTRACT PURCHASER CONSENT
TO
DEVELOPMENT CONTRACT
, whichJwho has a
contract purchaser's interest in all or part of the subject property, the development of which is governed
by the foregoing Development Contract, hereby affirms and consents to the provisions thereof and
agrees to be bound by the provisions as the same may apply to that portion of the subject property in
which there is a contract purchaser's interest.
Dated this
day of
,19_
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
19_, by
NOTARY PUBUC
DRAFTED BY:
Campbell, Knutson, Scott
& Fuchs, P.A.
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(612) 452-5000
SLP:kgm
I: \97files\97 subdiv\tlnal\\mobhiI2\dvcntrct. doc 24
06/25/97
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EXlfiBIT "B"
SAJ.'VIPLE IRREVOCABLE LETTER OF CREDIT
No.
Date:
TO: City of Prior lake
16200 Eagle Creek Avenue
Prior Lake, Minnesota 55372-1715
Dear Sir or Madam:
We hereby issue, for the account of
Irrevocable letter of Credit in the amount of $
sight on the undersigned bank.
(Name of Developerl and in your favor, our
, available to you by your draft drawn on
The draft must:
a) Bear the clause, "Drawn under letter of Credit No.
19_, of (Name of Bank) ";
, dated
b) Be signed by the Mayor or City Manager of the City of Prior Lake.
c) Be presented for payment at
November 30, 1 9_
(Address of Bank)
, on or before 4:00 p.m. on
This letter of Credit shall automatically renew for successive one-year terms unless, at least
forty-five (45) days prior to the next annual renewal date (which shall be November 30 of each
year), the Bank delivers written notice to the Prior lake City Manager that it intends to modify the
terms of, or cancel, this letter of Credit. Written notice is effective if sent by certified mail, postage
prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal
date addressed as follows: Prior lake City Manager, Prior Lake City Hall, 16200 Eagle Creek
Avenue, Prior Lake, Minnesota 55372-1714, and is actually received by the City Manager at least
forty-five (45) days prior to the renewal date.
This letter of Credit sets forth in full our understanding which shall not in any way be
modified, amended, amplified, or limited by reference to any document, instrument, or agreement,
whether or not referred to herein.
This Letter of Credit is not assignable. This is not a Notation letter of Credit. More than one
draw may be made under this Letter of Credit.
This Letter of Credit shall be governed by the most recent revision of the Uniforr.n Customs
and Practice for Documentary Credits, International Chamber of Commerce Publication No. 400.
We hereby agree that a draft drawn under and in compliance with this letter of Credit shall
be duly honored upon presentation.
BY:
Its
I: \97 files\97 subdiv\ tinal\knobhi 12\dvcntrct. doc 26
06/25/97
EXHIBIT "C"
CERTIFICATE OF INSURANCE
PROJECT:
CERTIFICATE HOLDER:
City of Prior Lake
16200 Eagle Creek Avenue
Prior Lake, Minnesota 55372-1714
INSURED:
ADDITIONAL INSURED:
City of Prior Lake
AGENT:
WORKERS' COMPENSATION:
Policy No.
Effective Date:
Expiration Date:
Insurance Company:
COVERAGE - Workers' Compensation, Statutory.
GENERAL LIABILITY:
Policy No.
Effective Date:
Expiration Date:
Insurance Company:
( ) Claims Made
( ) Occurrence
LIMITS: [Minimum]
Bodily Injury and Death:
$ 500,000 for one person $1,000,000 fpr each occurrence
Property Damage:
$200,000 for each occurrence
-OR-
Combination Single Limit Policy $1,000,000 or more
COVERAGE PROVIDED:
1: \97 files\97 subdiv\ final\knobhi12\dvcmrct. doc 27
06/25/97
Operations of Contractor: ~
Operations of Sub-Contractor (Contingent): lli
Does Personal Injury Include Claims Related to Employment? lli
Completed Operations/Products: lli.
Contractual Liability (Broad Form): lli
Governmental Immunity is Waived: lli
Property Damage Liability Includes:
Damage Due to Blasting lli
Damage Due to Collapse lli
Damage Due to Underground Facilities lli
Broad Form Property Damage ill
AUTOMOBILE LIABILITY:
Policy No.
Effective Date:
Expiration Date:
Insurance Company:
(X) Any Auto
LIMITS: [Minimum]
Bodily Injury:
$500,000 each person
$1,000,000 each occurrence
Property Damage:
$500,000 each occurrence
-OR-
Combined Single Limit Policy:
$1,000,000 each occurrence
ARE ANY DEDUCTIBLES APPLICABLE TO BODILY INJURY OR PROPERTY DAMAGE ON ANY OF
THE ABOVE COVERAGES:
If so, list:
Amount: $
[Not to exceed $1,000.00]
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELED BEFORE THE EXPIRATION
DATE THEREOF, THE ISSUING COMPANY WILL MAIL TEN (10) DAYS WRITTEN NOTICE TO THE
PARTIES TO WHOM THIS CERTIFICATE IS ISSUED.
,
Dated at
On
BY:
Authorized Insurance Representative
I: \97 files\97 subdiv\ tinal\knobhi12\dvcntrct.doc 28
06/25/97
- - ---.------
.1
EXHIBIT "0"
TO
DEVELOPMENT CONTRACT
(Oversizin9 and Storm Sewer Improvements Calculations for Developer Improvements)
A. OVERSIZING
1) Watermain (oversizing from 8" to 10" watermain in Pike Lake Trail)
· 1375 LF of watermain (DIP) from 8" to 10" @ $3.15/LF = $4,331.25
· 3 Each. Gate Valves from 8" to 10" @ $267.00/Ea. = $ 801.00
· 495 Ibs. 0.1. Fittings from 8" to 10" @ 1.01 lib. = $ 499.95
TOTAL COST = $5,632.20
2) Pike Lake Trail
. From 30' wide to 32' wide face to face of curb
. From 7-ton to 9-ton pavement design
TOTAL COST
= $2,673.74
= $4.655.85
$7,329.59
3) Sidewalk (from Exhibit E)
. 6050 SF (1210 LF X 5 FT) of sidewalk @ $1.89/SF
. 4 Each Pedestrian Ramps @ $163.20 Ea.
. TOTAL COST
= $11,434.50
= $ 652.80
= $12,087.30
Total Oversizing and Sidewalk Costs
$25,049.09
B. STORM SEWER IMPROVEMENTS (from Exhibit E)
Storm Sewer Cost = $166,526.90
1: \97files\97 subdiv\ final\knobhiI2\dvcntrct. doc 29
06/25/97
FR8M PIONEER ENGINEERING, P~
PHONE NO. : 612 783 1883
Jun. 25 1997 11:39~M P2
EXHIBIT IIEII
PR.OJECT NAME:
PROJECT No. :
Knob Hill 2nd Addition
14347
OWNER:
PAGE:
Gold Nugget Development, Inc.
10f4
ITE.M CONTRACT ITEM UNIT UNIT PAYMENT SCHEDULE WORK. COMPLETE
NO. PRICE QUANTITY AMOUNT QUANTITY AMOUNT
SANITARY SEWER
1. 8" PVC SDIl 35 10-12' Depth w/sand LF $12.55 l344 $16,867.20 $0.00
bedding
2. 8" PVC SDR 35 12-14' Depth w/sanci LF $13.65 1467 $20,024.55 $0.00
bedding
3. 8" PVC SDR 35 14-16' Depth w/Sand LF $15.05 12'1 $1,911.35 SO.OO
bedding
4. g" PVC SDIl 2614-16' Depth. w/sand LF $15.80 123 $1,943.40 $0.00
bedding
5. 8" PVC SDR 2616-18' Depth w/saM. LF $17.80 400 57,120.00 $0.00
bedding
6. 8" PVC SDR26 18-20' Depth w/sand L'F $20.80 185 53,848.00 SO.OO
bedding
7. Sanitary Sewer Manhole Ea $1,220.00 22 $26,840.00 $0.00
8. Manhole built in excess of 10' VF' $77.55 73.77 $5,720.&6 $0.00
,
9. g" It 4" Service Wye , EA $15.95 S3 $845.35 SO.OO
10. 4" PVC SDR 26 Servcie.pipe w/sand LF $6;65 2465 $16,392.25 SO.ao
bedding
11. 4" PVC SDR 26 Service Riser VF $6.82 32.5 $221. 65 $0.00
12. 4" PVC Cleanaut VF $86.40 3" $259.20 $0.00
13. 1 Vz" Rock for Grandular Pipe Ton S12.70 100 $1,270.00 $0.00
Foa:n.d3ti.on (100% Crushed RoCk)
14. Connect to existing Ea $345.60 1 S345.60 SO.OO
, ,
15. Sewer Test . , LS. $0.01 1 SO.OI $0.00
SUBTOTAL FOR SANITARY $]03,609.42 SO.OO
SEWER. ,
S.R. Weidema, Inc. ACTUAL BIDS
PR.OJECT NAME:
PROIECTNo.:
PHONE NO. : 612 783 1883
EXHIBIT IIEII
Knob Hill 2ad Addition OWNER: Gold Nugget Development, Inc.
14347 PAGE: 2of4
Jun. 25 1997 11:40RM P3
~QM : P~ONEER ENGINEERING, PR
l'I'EM CONI'llAcr ITEM UNIT UNIT PAYMENT SCHEDULE WORK COMPLETE I
NO. PRICE QUANTlTY AMOUNT QUANTITY AMOUNT
WATDMAIN
1. 6" DJ.P. CL. 52 LF S17.75 448 $1,952.00 SO.OO
2. 8" DJ.P. CL. 52 LF $17.70 5010 is''1,la'13.oo $0.00
3. Fire Hydrant w/gate valve Ea $1,866.00 11 $20,526.00 $0,00
4. 0.1. Fittings Ibs $1.01 5100 ~'5) I '51 .00 so. 00
5. 1" Corporation Stop Ea. S13.35 54 $720.90 $0.00
6. Curb Stop &: Bolt Ea. S61.60 54 $3,326.40 $0,00
.
1. I" Copper Service Pipe Type K LF $7.26 2640 $19,166,40 $0.00
S. 6" Gar.e Valve & Box Ea $394.75 2 $789.50 sO.oo
9. 8" Gate Valve & Bex Ea. $540.75 " $0.00
10. WatI:r Test LS $0.01 1 $0.01 $0.00
11. Connect to Existing Ea $420.40 4 SI,681.60 $0.00
J:), }O" DIP - --., LF $' :)O~BS 1375' . '$2#, CaCc8~7S so.oo
13
iO" (1c.. +< Ii c- (v Q ~ Bo)(.
Ea.. 4807.75
..3
.l..2 <-I). 3 . '2.5
,
;\tt e.l ?l..l 3.'3 I
'5' \.J V'.:> It: T'):\ L W f). '\ e<L ,... '1. ~ f "-J
... S.R.\Veidema, Inc. ACTUAL BIDS
FROM
PIONEER ENGINEERING, PA
PHONE NO. : 612 783 1883
EXHIBIT IIEII
Knob Hill 2nd Addition OwNER: Gold Nugget Development, Inc.
14347 PAOE: 3 of 4
Jun. 25 1997 11:40AM P4
PItOJECT NAME:
PROJECT No.:
ITEM CONTRACT ITEM UNIT UNIT PAYMENT SCHEDULE WORK COMPLE.TE
NO. PRICE QUANTITY AMOUNT QUANTITY AMOUNT
STORM SEWER.
l. 12" HOPE LF $19.60 1265 $24,794.00 SO.OO
2. IS" HOPE LF S19.60 200 $3.920.00 $0.00
3. 18" HOPE L:f1 $23.60 145 $'3.422.00 $0.00
4. 12" RCP CL. 5 L:f1 521.10 902 $19,032.20 SO.OO
5. 15" RCP CL. 5 LF $21.10 896 S18,905,60 $0.00
6. 18" RCP CL. 5 . LF $25.10 113 $2,836.30 $0.00
7. 21" RCP CL. 4 LF $26.65 384 $10,233.60 $0.00
8. 24" RCP CL. 3 L:f1 $27.60 222 S6,127.20 $0.00
9. 27" RCP cr.. 3 LF $35.20 432 $15,206.40 $0.00
10. 30" RCP CL. 3 LF $39.10 172 $6,725.20 $0.00
11. 12" RCP Apron wi trashguard Ea. S165.65 4 $662.60 $0.00
12. 12" RCP Apron Ea. $312.85 3 $938.55 SO,OO
13. 15" RCP Apron Ea. $330.25 1 $330.25 SO.OO
14. 18" RCP Apron Ea. $355.95 2 $711.90 $0.00
15. 30" RCP Apron w/trashguard Ea $984.10 1 $984.10 $0.00
16. RIP RAP CL. 3 w/filter Cy $64.15 48 $3,079,20 SO.OO
17. 48" Dia. Stann Manhole 0-10' Ea. $1,150.35 6 $6,902.10 $0.00
18. 48" Dia. Catch Basin Manhole 0-10' Ea. $I,018.7S 25 $25,46&.75 $0.00
19. 27" Dia. Catch Basin : Ea $512.95 2 SI,025.90 SO.OO
20. 21 X 3' Catch Basin Ea S810.00 1 $5,.670,00 $0,00
21. 54" Dia. Catch Basin Manhole. Ea. $t,299.00: , 2 $2,598.00 $0.00
22. 60" Dia Cau:h Basin :Manhole; ,Ea $1,8.51.95 ; 1 $1,851.95 SO.OO
23. Batned Weir (including RIP ~) Ea $1,985.60 ' 1 $1,985.60 SO.OO
24. Connect to Existing : Ea. $232.75 2 $465.50 SO.oo
25. Outlet Control Manhole ; Ea $2,650.00 1 $2,650.00 SO.OO.
SUBTOTALFORSTORMSE~ 5166.516.90 SO.OO
......f...
..
S.R, Weiderria, Inc. ACTUAL BIDS
"'ROJECT NAME:
JROJECTNo.:
PHONE NO. : 612 783 1883
EXHIBIT IIEII
Knob Hill 2acl Addition OWNER.: Gold Nugget Development, Inc.
14347 PAGE: 4of4
Jun. 25 1997 11:41RM P5
~CM : P~ONEER ENGINEERING, PA
ITEM CONTRAct ITEM UNIT UNIT PAYMENT SCHEDULE I WORK. COMPLETE
NO. PRICE QUANTITY AMOUNT QUANl1TY AMOUNT
STBEETS
i
J 1. SubgradePIepa.ratiOD Sy SO.1& 19119 $3,441.42 $0.00
! 6" Aggxegate Base CL. 5 SY $2.j3
I 2. 12449 $31,495.97 $0.00
MnDOT 3138 (100% Crushed Sti:me)
I 3. 7" Aggreg31e Base CL. 5 SY $2.95 5060 $14,927.00 $0.00
MnDOT 3138 (100% Crushed Stone)
,
, 2Y:z" Bit. Base Course I SY $2.94 10901 $32,048.94
4. $0.00
MnOOI'Type 31B ;
,
5. 3" Bit Base Course MnDOf ~ 31B SY $3.62 4209 $15,236.58 $0.00
, ,
6. 1 W' Bit. Wear Course , SY $2.02 10901 S22,020.02 $0.00
,
MnDOf'IYP' 41A (1998) ~
.
7. 2" Bit. Wear. Course SY $2.65 4209 S11, 153. 85 SO.OO
MnDOfType 41A (1998)
8. Tack Coat M:nDOT 2357 Gal S 1. 63 SOO $1.304.00 $0.00
9. Surmoun.table Curb & Gutter , LF $5.76 5585 $32,169.60 $000
10. B618 CI.u'b & Gutter LF $6.12 3465 S21,20j.80 SO.OO
11. 4" Concrete Sidewalk wi 4" GranUlar SF $1.89 12350 $23,341.50 $0.00
Base
12. Concrete Pedestrian Ramps ; Ea. $163.20 7 $1,142.40 SO.OO
13. Adjust Gata Valve Box . Ea $145.86 18 $2,625.48 $000
: .. .
Adjust Catch Basin. Casting :
14. E.a. S40.80 34 $] ,387.20 $0.00
15. Adjust Manhole Casting : Ea. $190.74 48 $9,155.52
; SO.OO
16. S3WQ1t Bitumincus LF S2.04 34 S69.36 SO.OO
17. Mill Bituminous : LF $4.08 34 $13&.72 SO.OO
18. Subg,ra.dc Excavation , CY $2.81 1000 $2.810.00 $0.00
19. GeotaXtile Fabric : Sy $1.53 1000 S 1.5'30. 00 $0.00
20. CI... 5 ~~ts MnDOf 3138 <for Tan $7.65 1000 $7.650.00 $0.00
Subgrad.c Excavation Backfill) :
:
I
21. Permanent Barricade , Ea. 517,.50 6 $1,071.00 $0.00
22. Regrade and Patch Existing ~way LS $867.00 1 $867.00 $0.00
wlEqual Section !
23. ' Bacldill Ctubs & Grad Blvd LS $0.01 1 $0.01 $0.00
,
24. Tuxf EstablisluneDt ; AC $816.00 10.0 $8,160.00 $0.00
!
,
. SuBTOTAL S'I'BEETS i SZU.951..37 so~oo
I $' 'f.Jl.s; 3 I -43 I , 0 0
'TOTAL FOR PROJEer i .. $0.00
.i.
S.R. Weidema, Inc. ACTUAL. BIDS
. -.. "
.' .{:.~,~;:.~.::::~..::,'....: ;
EXHIBIT "F"
TO
DEVELOPMENT CONTRACT
RESIDENTIAL STREET LIGHTING POLICY
BACKGROUND
The City intends that this street lighting policy promote the safe travel of city streets in a manner both fair and affordable to the City
and its residents. Residential street lighting promotes pedestrian and traffic safety to the extent that the City shall approve street
lighting where warranted by such concerns. Lighting requests shall come either by recommendation of the City Engineer or by
resident petition. The capital costs of residential street lighting shall be the responsibility of those residents, or any portion of those
residents, determined to be affected by the light. .
NEW SUBDIVISIONS
All lighting plans require approval by the City and the utility responsible for street light operation and maintenance. In new
subdivisions, street lights shall be placed at intersections, every 300 feet between intersections where intersections are more than 600
feet apart, and at the ends of cul-de-sacs where the distance from said end to the intersection of the cul-de-sac where the street is
greater than 300 feet. Within their developments, developers shall also install lights to City standards at the intersections of
residential streets with collector streets. The developer shall pay full capital cost of every light to be installed; this includes poles,
fixtures, underground wiring, and all appurtenant work. The developer shall pay operation and maintenance for the light system until
the City accepts the project, at which time the billing shall be transferred to the City. 100 or 150 watt high pressure sodium lights in
traditional or cobra-head style (as approved by the City and the utility) shall be the standard for new subdivisions. Where a portion of
the development is already lit. new lights shall match in style and wattage those already in place.
In cases where developers wish to install more lights than warranted by City policy ,or wish to install non-standard lights, monthly
operation and maintenance becomes the responsibility of the development's residents through their homeowner's association or similar
organization. The City will not take over such non-standard systems, though City approval shall still be required.
EXISTING SUBDIVISIONS
Where traffic safety clearly warrants, a street light may be placed upon the recommendation of the City Engineer's office. The basis
of such warrants shall be a minimum Average Daily Traffic of 2000 vehicles or a layout such that, in the City Engineer's estimation,
significant improvement in safety might be obtained by the placement of a street light. Since the benefit of such installations extends
to the City as a whole, these will be done at City expense.
When residents request additional lighting for their neighborhoods, they must do so by petition - signed by 60% of the neighbors
affected by the proposed light. The affected area shall be 100 linear feet on either side of the proposed light, on both sides of the
street. The placement of the proposed light shall be specified in the petition. Petitioners shall approach the City prior to circulating
their petition to obtain direction as to where street lights are warranted for their neighborhoods. Lights shall be approved only as they
meet the following warrants for existing subdivisions: intersections, between intersections at intervals of 300 feet where the distance
between intersections is greater than 600 feet, and at the ends of cul-de-sacs where the distance from said end to the intersection of the
cul-de-sac where the street is greater than 300 feet.
If approved, each street light shall be purchased by the affected residents. Payment shall be made prior to the installation of the light
and shall include the cost of the poles, fi'Ctures, underground wiring, and all appurtenant work. The method of payment shall be as
directed by the City Finance Department. The City shall assume operation and maintenance cost for a light from the time it is
energized by the utility.
In existing developments, new lights shall match in style and wattage those already in place. If no lights be currently in place, 100 or
150 watt high pressure sodium lights in cobra-head or traditional style shall be the standard.
1:\97files\97subdiv\tinal\knobhi12\dvcntrct.doc 31
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EXIllBIT "G"
TO
DEVELOPMENT CONTRACT
CONDIDONS OF PLAT APPROVAL
1. A current title opinion or commitment of title insurance be submitted acceptable to the City
Attorney.
2. Payment of all fees prior to release of the [mal plat mylars.
3. Reductions of the entire [mal plat be submitted, to the following scales: 1" = 800'; 1" = 200';
and one reduction at no scale which fits onto an 81/2" x 11" sheet of paper.
4. Four mylar sets of the fmal plat with all required signatures be submitted.
5. The developer provide [mancial security, acceptable to the City Engineer prior to release of the
fmal plat mylars.
6. The [mal plat and all pertinent documents must be filed with Scott County within 60 days from the
date of [mal plat approval. Failure to record the documents by September 7, 1997, will render the
fmal plat null and void.
, ,
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