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Item 4.8 Median Encroachment and Maintenance Agreement Request for City Council Action DEPARTMENT INFORMATION ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 11 May 2026 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty City Attorney Kendall 4.8 – Riverwood National STRATEGIC VISION MEETS: THE CITY OF OTSEGO: Is a strong organization that is committed to leading the community through innovative communication. Has proactively expanded infrastructure to responsibly provide core services. Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. X Is a social community with diverse housing, service options, and employment opportunities. X Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff recommend the City Council approve a right-of-way encroachment and maintenance agreement. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? Yes No BACKGROUND/JUSTIFICATION: The Riverwood National plat includes center islands within public right-of-way located at the intersections of Kadler Avenue/90th Street and Kadler Avenue/93rd Street. There is also a longer center island on Kagan Court south of 90th Street. These islands were landscaped by the developer with rock, perennials, grasses, and trees. There is also a subdivision identification sign in each of the medians at Kadler Avenue. The three medians are maintained by the Riverwood National Homeowners Association. There is no easement or agreement in place allowing for the improvements within the right-of-way or requiring the Riverwood National Homeowners Association to maintain these areas. The Riverwood National Homeowners Association contacted City staff about their intent to remove the more maintenance intensive plantings from the right-of-way and asking for City assistance. The Parks and Recreation Director and Streets Operations Manager met with representatives of the Riverwood National Homeowners Association on-site to evaluate the proposed scope of work and discuss how the City may participate. City staff proposed that the City would remove certain plants and provide replacement landscape rock. City participation in the improvements to the medians is contingent on a right-of-way encroachment agreement drafted by the City Attorney that has been executed by the Riverwood National Homeowners Association. The agreement outlines that City assistance with regards to maintenance of the medians is limited to this one-time replacement of existing plantings. Once complete, all the improvements within the medians and maintenance thereof will be the responsibility of the Riverwood National Homeowners Association. SUPPORTING DOCUMENTS ATTACHED: • Site Location Map • Resolution 2026-39 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES: Motion to adopt Resolution 2026-39 approving a Median Encroachment and Maintenance Agreement for Riverwood National. BUDGET INFORMATION FUNDING: BUDGETED: General Fund – Street Maintenance (43100) Yes Riverwood National ROW Medians 374 ft Overview 1 CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2026-39 APPROVING AN ENCROACHMENT AND MAINTENANCE AGREEMENT RIVERWOOD NATIONAL WHEREAS, the Riverwood National plat includes public right-of-way with three center medians located at the intersections of Kadler Avenue and 90th Street; Kadler Avenue and 93rd Street; and Kagan Court south of 90th Street; and WHEREAS, the improvements, including signs and landscaping, have been established within these medians; and WHEREAS, the improvements are maintained by the Riverwood Homeowners Association; and WHEREAS, no easement or other agreement exists for the improvements to be located within public right-of-way; and WHEREAS, the City has determined a need for the Riverwood Homeowners Association to enter into a median encroachment and maintenance agreement to provide the City guaranties for the maintenance of the improvements, remove the City from any liabilities related to the improvements, and to provide the City various remedies in the event that the improvements are not maintained; and WHEREAS, those obligations are outlined and memorialized in the attached Median Encroachment and Maintenance Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA THAT: 1. The Median Encroachment and Maintenance Agreement attached hereto between the City of Otsego and Riverwood National Homeowners Association, Inc. is hereby approved in form subject to modification of as approved by City staff. 2. The Mayor and City Clerk are hereby authorized to execute the Median Encroachment and Maintenance Agreement on behalf of the City of Otsego. 2 ADOPTED by the City Council of the City of Otsego this 11th day of May, 2026. MOTION BY: SECONDED BY: IN FAVOR: OPPOSED: CITY OF OTSEGO __________________________________ Jessica L. Stockamp, Mayor ATTEST: __________________________________ Audra Etzel, City Clerk 238676v3 (reserved for recording information) MEDIAN ENCROACHMENT AND MAINTENANCE AGREEMENT AGREEMENT made this _____ day of _____________, 2026, by and between the CITY OF OTSEGO, a Minnesota municipal corporation (“City”), and RIVERWOOD NATIONAL HOMEOWERS ASSOCIATION, INC., a Minnesota non-profit corporation, (“Riverwood National HOA”). 1. BACKGROUND. The City owns easements for right of way purposes within the plat of Riverwood National Second Addition (“Easement Areas”) as identified in the plat of Riverwood National, filed in the Office of the County Recorder, Wright County, Minnesota as Document No. 903454. Riverwood National HOA owns and maintains monument signs and landscaping within median islands (“Improvements”) installed within 90th Street, 93rd Street, and Kagen Court N.E. as part of the development of Riverwood National. The Improvements encroach on the City’s Easement Areas. 2. ENCROACHMENT AUTHORIZATION. The City hereby approves the encroachment in its Easement Areas subject to the conditions set forth in this Agreement. Further conditions of encroachment approval are: a. City shall be responsible for the one-time removal of existing spirea and day lily plantings within Improvements. b. City shall be responsible for the one-time procurement of granite landscape rock and single occurrence installation of granite landscape rock within the Improvements. c. Riverwood National HOA shall own and maintain monument signs, remaining landscaping, and the granite landscape rock installed by the City within the Improvements. 238676v3 d. Riverwood National HOA shall be responsible for the future maintenance, repair, removal, or replacement of monument signs, remaining landscaping, and granite landscape rock installed by the City within the Improvements. e. Installation of any additional plantings within the Easement Area, including replacement of remaining landscaping, shall be subject to review and approval of the Zoning Administrator. f. The City shall have no responsibility to maintain the remaining landscaping or granite landscape rock installed by the City within the Improvements. g. The City shall have no responsibility to replace or maintain the monument signs located within the Improvements. Riverwood National HOA, its successors or assigns, shall include the terms of this Agreement in any future Declarations that assign responsibility for the ownership and maintenance of the monument signs, remaining landscaping, and granite landscape rock within the Improvements to the Riverwood National HOA. 3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to encroach in the City’s Easement Areas, Riverwood National HOA, for itself, its successors and assigns, hereby agrees to indemnify and hold the City harmless from any damage caused to the Improvements relating to or arising out of the City granting permission to encroach within the City’s Easement Areas. Riverwood National HOA, for itself, it successors and assigns, hereby agrees to indemnify and hold the City harmless from any damage caused to the Improvements relating to or arising out of the City’s one-time installation of granite landscape rock within the Improvements. 4. TERMINATION OF AGREEMENT. The City may, at its sole discretion, terminate this Agreement at any time by giving the then owner of the Property thirty (30) days advance written notice, except that no notice period will be required in the case of an emergency condition as determined solely by the City and the Agreement may then be terminated immediately. If Improvements interfere with the use, maintenance, or repair of the Easement Areas, Riverwood National HOA shall remove the Improvements at Riverwood National HOA’s sole expense. If the Improvements must be replaced, replacement shall occur at Riverwood National HOA’s sole expense, and shall comply with all terms of this Agreement. If the Riverwood National HOA fails to remove the Improvements as directed, the City may remove the Improvements, and assess the cost of removal back to the Riverwood National HOA for reimbursement. 238676v3 5. RECORDING. This Agreement shall run with the land and shall be recorded against the title to the Subject Property. 238676v3 CITY OF OTSEGO By ___________________________________ (SEAL) Jessica Stockamp, Mayor And __________________________________ Audra Etzel, City Clerk STATE OF MINNESOTA ) )ss. COUNTY OF WRIGHT ) The foregoing instrument was acknowledged before me this _______ day of __________________, 2026, by Jessica Stockamp and by Audra Etzel, respectively the Mayor and City Clerk of the City of Otsego, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. ____________________________________ Notary Public 238676v3 RIVERWOOD NATIONAL HOMEOWNERS ASSOCIATION, INC. By: _______________________ [print name] Its: ____________________ [title] STATE OF MINNESOTA ) )ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ______ day of ____________, 2026, by __________________________________________, the _________________________ of Riverwood Homeowners Association, Inc., a Minnesota non-profit corporation, on behalf of said entity. ___________________________________ Notary Public DRAFTED BY: CAMPBELL KNUTSON, Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: 651-452-5000