CC Staff Report 10-26-20CITY COUNCIL STAFF REPORT
Monday,October 26,2020
Subject Consider Modification of Work Hours for The Bluffs at Lake Lucy
Section OLD BUSINESS Item No:G.1.
Prepared By Kate Aanenson,Community
Development Director
File No:Planning Case No.2019-01
PROPOSED MOTION
Should the City Council choose to amend the Development Contract,staff recommends the following amendment
for the attached Development Contract:
U.Construction hours,including pick-up and deliveries of material and equipment and the operation of any internal
combustion engine,may only occur from 7:00 a.m.to 6:00 p.m.on weekdays,and from 9:00 a.m.to 5:00 p.m.on
Saturdays with no such activity allowed on Sundays or on legal holidays.Contractors must require their
subcontractors,agents and suppliers to comply with these requirements and the Contractor is responsible for their
failure to do so.Under emergency conditions,this limitation may be waived by the written consent of the City
Engineer.If construction occurs outside of the permitted construction hours,the Contractor shall pay the following
administrative penalties:
First Violation $500.00
Second Violation $1,000.00
Third Subsequent Violations All site development and construction must cease for seven 7)calendar
days"
Approval requires a Simple Majority Vote of members present.
SUMMARY
The Development Contract for Grading for The Bluffs at Lake Lucy was approved by the City Council at their
October 12,2020 meeting.The item was on the Consent Agenda but was moved off to discuss construction
activity.The Development Contract was amended to prohibit construction activity on Saturday's on the upper portion
of the development including the area of Lake Lucy Lane and Topaz Drive.
The developer would like to discuss with Council the impacts of the Saturday restriction and ask for a modification.
BACKGROUND
The Development Contract and Construction Plans and Specifications for The Bluffs at Lake Lucy were approved on
September 12,2020.There were no working days limitations placed on the developer at that time.
CITY COUNCIL STAFFREPORTMonday,October 26,2020SubjectConsiderModification of Work Hours for The Bluffs at LakeLucySectionOLDBUSINESSItemNo:G.1.Prepared By Kate Aanenson,CommunityDevelopmentDirector File No:Planning Case No.2019-01PROPOSEDMOTIONShouldtheCityCouncilchoosetoamendtheDevelopmentContract,staff recommends the followingamendmentfortheattachedDevelopmentContract:"U.Construction hours,including pick-up and deliveries of material and equipment and the operation of anyinternalcombustionengine,may only occur from 7:00 a.m.to 6:00 p.m.on weekdays,and from 9:00 a.m.to 5:00 p.m.onSaturdayswithnosuchactivityallowedonSundaysoronlegalholidays.Contractors must requiretheirsubcontractors,agents and suppliers to comply with these requirements and the Contractor is responsible fortheirfailuretodoso.Under emergency conditions,this limitation may be waived by the written consent of theCityEngineer.If construction occurs outside of the permitted construction hours,the Contractor shall pay thefollowingadministrativepenalties:First Violation $500.00SecondViolation $1,000.00ThirdSubsequentViolationsAllsite development and construction must cease for seven 7)calendardays"Approval requires a Simple Majority Vote of members present.SUMMARYTheDevelopment Contract for Grading for The Bluffs at Lake Lucy was approved by the City Council attheirOctober12,2020 meeting.The item was on the Consent Agenda but was moved off to discussconstructionactivity.The Development Contract was amended to prohibit construction activity on Saturday's on the upperportionofthedevelopmentincludingtheareaofLakeLucyLaneandTopazDrive.The developer would like to discuss with Council the impacts of the Saturday restriction and ask for a modification.BACKGROUND
The Development Contract and Construction Plans and Specifications for The Bluffs at Lake Lucy were approved on
September 12,2020.There were no working days limitations placed on the developer at that time.
The developer wanted to begin working because they were being held up by the Recorder's Office.In order to
expedite the process,they chose to break out the grading as a separate Development Contract.
The developer is preparing to record the overall Development Contract but would still like to have the opportunity to
amend the language in the Development Contract as shown below.
DISCUSSION
Developer's requested amendment:
U.Construction hours,including pick-up and deliveries of material and equipment and the operation of any internal
combustion engine,may only occur from 7:00 a.m.to 6:00 p.m.on weekdays,no work on Saturdays for the areas
illustrated in Inset B”of the Final Plat,and from 9:00 a.m.to 5:00 p.m.on Saturdays for all other areas
outside of Inset B”of the Final Plat with no such activity allowed on Sundays or on legal holidays.Contractors
must require their subcontractors,agents and suppliers to comply with these requirements and the Contractor is
responsible for their failure to do so.Under emergency conditions,this limitation may be waived by the written consent
of the City Engineer.If construction occurs outside of the permitted construction hours,the Contractor shall pay the
following administrative penalties:
First Violation $500.00
Second Violation $1,000.00
Third Subsequent Violations All site development and construction must cease for seven 7)calendar
days
RECOMMENDATION
Consider amended hours of operation for the Development Contract.
ATTACHMENTS:
Grading Development Contract
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
THE BLUFFS AT LAKE LUCY
DEVELOPMENT CONTRACT FOR
GRADING PURPOSES
1
CITY OF CHANHASSEN
DEVELOPMENT CONTRACT FOR GRADING PURPOSES
THE BLUFF AT LAKE LUCY
SPECIAL PROVISIONS
AGREEMENT dated October 12, 2020 by and between the CITY OF CHANHASSEN, a
Minnesota municipal corporation (the "City"), and, CHAN THREE DEVELOPMENT, INC., a
Minnesota Corporation (the "Developer").
1. Development Plans. The plan shall be developed in accordance with the following
plans: Grading Plan and Erosion Control Plan dated September 16, 2020, contingent upon updates
based on the conditions of this Agreement.
2. Security. To guarantee compliance with the plans the Developer shall furnish the
City with a letter of credit in the form attached hereto, from a bank acceptable to the City, or cash
escrow ("security") for $469,444.71, which is 110% of the estimated erosion control, grading and
pond excavation costs as calculated below:
The City may draw down the security, without notice, for any violation of the terms of this Contract.
If the security is drawn down, the draw shall be used to cure the default.
3. Notice. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer, its employees or agents, or mailed to the Developer by registered mail at
the following address:
Craig Allen
Chan Three Development, Inc.
10850 Old County Road 15, Suite 200
Plymouth, MN 55441
Phone: 952-270-4473
E-mail: craig@gonyeacompany.com
Notices to the City shall be in writing and shall be either hand delivered to the City Manager, or
mailed to the City by certified mail in care of the City Manager at the following address:
Grading/Erosion Control/Restoration 391,530.20$
Subtotal, construction costs 391,530.20$
Engineering/Surveying/Inspection (7% const. cost) 27,407.11$
Landscaping (2% const. cost) 7,830.60$
Subtotal, other costs 35,237.72$
Construction Costs + Other Costs 426,767.92$
110% 469,444.71$
2
Chanhassen City Hall
7700 Market Boulevard
P.O. Box 147
Chanhassen, Minnesota 55317
Telephone: (952) 227-1100
4. Other Special Conditions.
a. Within the plat or land to be platted, the Developer may not grade or otherwise disturb the
earth or remove trees until all the following conditions have been satisfied: 1) this agreement
has been fully executed by both parties and filed with the City Clerk, 2) the necessary security
and fees have been received by the City, 3) a pre-construction meeting held by the developer
and their contractor(s) with the City and its representatives has been conducted 4) the City
Engineer has issued a letter that the foregoing conditions have been satisfied and then the
Developer may proceed (Right to Proceed).
b. The improvements shall be installed in accordance with City standards, ordinances, and plans
and specifications which have been prepared and signed by a competent registered
professional engineer furnished to the City and approved by the City Engineer. The City will,
at the Developer's expense, have one or more construction inspectors and a soil engineer
inspect the work on a full or part-time basis. The Developer shall also provide a qualified
inspector to perform site inspections on a daily basis. Inspector qualifications shall be
submitted in writing to the City Engineer. The Developer shall instruct its project
engineer/inspector to respond to questions from the City Inspector(s) and to make periodic
site visits to satisfy that the construction is being performed to an acceptable level of quality
in accordance with the engineer's design.
c. Any requirements set by the MCES to work within the MCES’s sewer and utility easement
shall be addressed by the Developer. An executed agreement between the developer and the
MCES allowing work within the MCES’s easement shall be provided to the City prior to the
issuance of the Right to Proceed.
d. Developer shall continue to coordinate with Carver County (“County”) and the City
regarding future improvements to Galpin Boulevard. The Developer shall address all
conditions associated with the County’s review. Final grading plans, including pond
locations, sizing and analysis, along with right-of-way dedications off Galpin Boulevard,
shall conform to the future Galpin Boulevard reconstruction project. Cross reference of
grading plans, profiles, and respective cross sections are to be provided at key locations
such as intersections, ponds, or other special features required by the county and city for
review prior to acceptance and recording of the final plat.
e. Grading within bluff setbacks is subject to review and approval by the City prior to
grading.
3
f. The developer shall conduct a walk-through of the staked grading limits on site with city
staff prior to removals to inspect for opportunities for additional tree preservation prior to
grading operations.
g. Tree preservation fencing shall be installed around existing trees to be saved prior to any
grading activities and remain installed until completion.
h. A geotechnical engineering firm shall be on-site during grading operations as required to
ensure the City’s Standard Specifications and Detail Plates are adhered to. If
groundwater is encountered during grading, grades shall be adjusted to maintain a 3 foot
separation from the bottom floor elevation and adhering to the recommendations of the
soil engineer on site. Changes to grades shall be submitted to the city for review and
approval.
i. Haul routes for the import or export of soil, construction material, construction equipment
or construction debris, or any other purpose, shall be provided for review and approval
prior to commencement of grading operations.
j. The provided erosion control plan does not fully met the requirements of Sec. 19-145 of
City Ordinances, and shall be updated accordingly, subject to review and approval by the
City and prior to the issuance of the Right to Proceed.
k. The applicant shall submit the full SWPPP and plans to the city for review and approval
prior to grading on site. The updated SWPPP shall meet all requirements set forth in the
applicant’s General Permit (NPDES Construction Permit), such as locations of concrete
wash-outs, stockpile areas, estimated quantities of erosion control BMPs, site location
map and proximity to impaired waters, training credentials of SWPPP designer and
installer, inlet protection locations, etc.
l. Access routes to storm basins shall have a slope no greater than 3:1
m. The remnant driveway entrance north of “Della Drive” shall not be removed in
association with the development, the City will assess its removal upon commencement
of the Galpin Boulevard improvement project, plans shall be updated accordingly.
n. Approved permits from Carver County for temporary access off of Galpin Boulevard
shall be provided prior to grading operations.
o. All comments and conditions set forth by the Riley Purgatory Bluff Creek Watershed
District shall be addressed by the applicant prior to grading operations.
p. The Developer shall maintain a neat and orderly work site and shall daily clean, on and off
site, dirt and debris, including blowables, from streets and the surrounding area that has
resulted from construction work by the Developer, its agents or assigns.
q. In the event that the City receives claims from laborers, materialmen, or others that work
required by this Contract has been performed, the sums due them have not been paid, and
4
the laborers, materialmen, or others are seeking payment out of the financial guarantees
posted with the City, and if the claims are not resolved at least ninety (90) days before the
security required by this Contract will expire, 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 letters of credit in an amount up to 125% of the
claim(s) and deposit the funds in compliance with the Rule, and 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.
r. 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 is first
given notice of the work in default, not less than four (4) days 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.
s. Placement of on-site construction trailers and temporary job site offices shall be approved
by the City Engineer as a part of the pre-construction meeting for installation of public
improvements. Trailers shall be removed from the subject property within thirty (30) days
following the acceptance of the public improvements unless otherwise approved by the City
Engineer.
t. Developer shall take out and maintain until six (6) months after the City has accepted the
public 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 $500,000 for one person and
1,000,000 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 issuing the Right to Proceed. The
certificate shall provide that the City must be given ten (10) days advance written notice of
the cancellation of the insurance. The certificate may not contain any disclaimer for failure
to give the required notice.
u. Construction hours, including pick-up and deliveries of material and equipment and the
operation of any internal combustion engine, may only occur from 7:00 a.m. to 6:00 p.m. on
weekdays, no work on Saturdays for the areas illustrated in “Inset B” of the Final Plat, and
from 9:00 a.m. to 5:00 p.m. on Saturdays for all other areas outside of “Inset B” of the Final
Plat with no such activity allowed on Sundays or on legal holidays. Contractors must require
their subcontractors, agents and supplies to comply with these requirements and the
Contractor is responsible for their failure to do so. Under emergency conditions, this limitation
may be waived by the written consent of the City Engineer. If construction occurs outside of
the permitted construction hours, the Contractor shall pay the following administrative
penalties:
5
First violation $ 500.00
Second violation $ 1,000.00
Third & subsequent violations All site development and construction must cease for
seven (7) calendar days
v. The Developer acknowledges that the City makes no representations or warranties as to the
condition of the soils on the property or its fitness for construction of the improvements or
any other purpose for which the Developer may make use of such property. The Developer
further agrees that it will indemnify, defend, and hold harmless the City, its governing body
members, officers, and employees from any claims or actions arising out of the presence, if
any, of hazardous wastes or pollutants on the property, unless hazardous wastes or pollutants
were caused to be there by the City.
w. The Developer shall be responsible for soil correction work on the property. The City makes
no representation to the Developer concerning the nature of suitability of soils nor the cost of
correcting any unsuitable soil conditions which may exist. On lots which have no fill material
a soils report from a qualified soils engineer is not required unless the City's building
inspection department determines from observation that there may be a soils problem. On
lots with fill material that have been mass graded as part of a multi-lot grading project, a
satisfactory soils report from a qualified soils engineer shall be provided before the City issues
a building permit for the lot. On lots with fill material that have been custom graded, a
satisfactory soils report from a qualified soils engineer shall be provided before the City
inspects the foundation for a building on the lot.
Remainder of page intentionally left blank]
6
CITY OF CHANHASSEN
BY:
Elise Ryan, Mayor
SEAL)
AND:
Heather Johnston, Interim City Manager
CHAN THREE DEVELOPMENT, INC.:
BY:
Craig Allen, President
STATE OF MINNESOTA )
ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me this day of ,
2020, by Elise Ryan, Mayor, and by Heather Johnston, Interim City Manager, of the City of
Chanhassen, 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 ,
2020, by Craig Allen, President of Chan Three Development, Inc., a Minnesota Corporation, on
behalf of the company.
NOTARY PUBLIC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
952) 227-1100
EXHIBIT "A" TO DEVELOPMENT CONTRACT
The Bluffs at Lake Lucy - Grading Extents:
Inset B” of Final Plat
MORTGAGE HOLDER CONSENT
TO
DEVELOPMENT 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 , 20 .
STATE OF MINNESOTA )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
20___, by .
NOTARY PUBLIC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
952) 227-1100
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 , 20 .
STATE OF MINNESOTA )
ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of ,
20___, by .
NOTARY PUBLIC
DRAFTED BY:
City of Chanhassen
7700 Market Boulevard
P.O. Box 147
Chanhassen, MN 55317
952) 227-1100
IRREVOCABLE LETTER OF CREDIT
No. ___________________
Date: _________________
TO: City of Chanhassen
7700 Market Boulevard, Box 147
Chanhassen, Minnesota 55317
Dear Sir or Madam:
We hereby issue, for the account of (Name of Developer) and in your favor, our Irrevocable
Letter of Credit in the amount of $____________, available to you by your draft drawn on sight on the
undersigned bank.
The draft must:
a) Bear the clause, "Drawn under Letter of Credit No. __________, dated ________________,
2______, of (Name of Bank) ";
b) Be signed by the Mayor or City Manager of the City of Chanhassen.
c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 30,
2______.
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 Chanhassen 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: Chanhassen
City Manager, Chanhassen City Hall, 7700 Market Boulevard, P.O. Box 147, Chanhassen, MN 55317, and is
actually received by the City Manager at least thirty (30) 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 Uniform Customs and
Practice for Documentary Credits, International Chamber of Commerce Publication No. 500.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly
honored upon presentation.
BY: ____________________________________
Its ______________________________