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HomeMy Public PortalAboutPKT-CC-2014-11-06City of Moab 217 East Center Street Moab, Utah 84532-2534 Main Number (435) 259-5121 Fax Number (435) 259-4135 Memorandum To: Councilmembers and Media From: Mayor David L. Sakrison Date: 11/5/2014 Re: Special City Council Meeting Mayor: Council: David L. Sakrison Kyle Bailey Heila Ershadi Doug McElhaney Kirstin Peterson Gregg W. Stucki The City of Moab will hold a Special City Council Meeting on Thursday, November 6, 2014 at 10:00 AM. The purpose of this meeting will be: 1-1 1-2 1-3 1-4 1-5 Approval of Proposed Resolution #44-2014 — A Resolution of the Moab City Council Accepting the Dedication of Public Right -of -Way From Scott McFarland for the Deer Trail Townhome Subdivision on Property Located at 792 West 400 North Approval of Proposed Resolution #47-2014 — A Resolution Conditionally Approving the Final Plat for the Deer Trail Townhome Subdivision on Property Located at 792 West 400 North in the R-4 Zoning District Approval of Proposed Resolution #48-2014 — A Resolution Approving the Subdivision Improvements Agreement and Escrow Agreement with Scott McFarland, for the Deer Trail Townhome Subdivision on Property Located at 792 West 400 North in the R-4 Zoning District Approval of Proposed Resolution #49-2014 — A Resolution Approving the Subdivision Improvements Agreement and Escrow Agreement with the Housing Authority of Southeastern Utah, for the Deer Trail Townhome Subdivision on Property Located at 792 West 400 North in the R-4 Zoning District Approval of Employee Health Insurance Proposal for an Effective Date of January 1, 2015 The meeting will be held in the Council Chambers at the Moab City Center at 217 East Center Street, Moab, Utah. David L. Sakrison Mayor In compliance with the Americans with Disabilities Act, individuals needing special accommodations during this meeting should notify the Recorder's Office at 217 East Center Street, Moab, Utah 84532; or phone (435) 259-5121 at least three (3) working days prior to the meeting. REC-MEM-14-11-001 First EPA Green Power Community in the Nation Page 1 of 67 Agenda f Agenda Summary CITY COUNCIL MEETING ...liovember 6, 2014 PL-14-070 Agenda item #: 1-1 Title: Approval of Resolution #48-2014 Accepting a Warranty Deed for Dedication of Right -of - Way for a Portion of 400 North Street Frontage for Deer Trail Subdivision at 792 West 400 North Staff Presenter(s): Jeff Reinhart Department: Planning and Zoning Applicant: Scott McFarland Background/Summary: Deer Trail Townhome Subdivision is a six -unit affordable housing proposal that will be located at 792 West 400 North in the R-4 Zone. An insufficient right-of-way width fronts the property and the dedication will widen the street to provide for curb, gutter, and on -street parking. The dedication brings the property into full compliance with the code so the homes in Deer Trail Subdivision can be constructed. The dedication is 15 feet in width and 156.28 feet in length for a total area of roughly 2,344 square feet or approximately .05 acre. Options: The City Council can: 1. Adopt Resolution #48-2014 to accept the 400 North street right-of-way dedication for Deer Trail Townhome Subdivision. Staff Recommendation: Staff recommends that the dedication of the street right-of-way be accepted. Recommended Motion: I move to adopt Resolution 48-2014 and approve the acceptance of the 400 North Street right-of-way dedication. Attachment(s): Resolution #48-2o3.4 Warranty Deed, property description, and survey Page 2 of 67 Moab City Council PL-II-004 January G, 2011 Vacation of Portal Vista Block 4 Ordinance #2011-03 Page 2 of 2 p:\planning department \2014\correspondence\p1-14-070 deer trail raw dedication.dacx Page 3 of 67 CITY OF MOAB RESOLUTION #44-2014 A RESOLUTION OF THE MOAB CITY COUNCIL ACCEPTING THE DEDICATION OF PUBLIC RIGHT-OF-WAY FROM SCOTT MCFARLAND FOR THE DEER TRAIL TOWNHOME SUBDIVISION ON PROPERTY LOCATED AT 792 WEST 400 NORTH WHEREAS, in association with an application for the six -unit Deer Trail Townhome Subdivision, Scott McFarland, of 775 Hillside Drive, Moab, Utah 84532, as the property (Owner), has dedicated additional public right-of-way over a portion of his property located at 792 West, 400 North,; and WHEREAS, City staff has reviewed the documents and determined that the right-of-way deed, attached as Exhibit A, is satisfactory and ready for acceptance; and WHEREAS, the work to be performed within the dedicated additional public right-of-way will result in a minor expansion of use or capacity of the public street and sidewalk pursuant to Title 16, Subdivisions, and Title 17, Zoning, of the Moab Municipal Code. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Moab hereby accepts the dedication of the public right of way over a portion of the property at 792 West 400 North in Moab, Utah, as provided on the attached public right-of-way Warranty Deed with exhibits; and authorizes the City Manager to certify and file said deed with the Grand County Recorder's Office for recordation. PASSED AND ADOPTED in open Council by a majority vote of the Governing Body of the City of Moab this 6th day of November, A.D., 2014. ATTEST: Rachel E. Stenta City of Moab David L. Sakrison Mayor Page 4 of 67 WARRANTY DEED DEER TRAIL TOWNHOMES, LLC, a Utah limited liability company, GRANTOR(S) whose address is PO Box 1191, Moab, Utah 84532 hereby CONVEYS AND WARRANTS TO THE CITY OF MOAB A MUNICIPAL CORPORATION GRANTEE(S) whose address is 217 E. Center, Moab, Utah 84532, for the sum of ($10.00) Ten Dollars and other good and valuable considerations the following described tract of land in Grand County, State of Utah, to -wit: SEE ATTACHED EXHIBITS "A" and "B" WITNESS the hand of said Grantor, this 24th day of October 2014. County of Grand ss. State of Utah Deer Trail Townhomes, LLC, a Utah limited liability company !rJ Scott Alan McFarland, Memb The foregoing Quit Claim Deed was acknowledged before me this o?g day of October, 2014, by Scott Alan McFarland acting in behalf of Deer Trail Townhomes, LLC, a Utah limited liability company in his capacity as Manager/Member. NOTARY PUBLIC Connie Sheffer 651251 My Commission Expires January 9, 2016 STATE OF UTAH yy OTARY PUBLIC Residing in : �19-rz , I My Commission Expires: l r97I&• -a C d a) Q Page 5 of 67 EDIT A A parcel of land situate in the SW 1/4 SE 1/4 Section 35, T25S, R21E, SLBM, Grand County, Utah, more particularly described as follows: Commencing with a tie at a 2" aluminum cap stamped "190107-2201" in a monument box for the SE corner of Section 35, T25S, R21 E, SLBM; Thence, along the South line of said Section 35, S89°54'00"W 1675.60 feet; Thence, N00°27'41 "W 24.80 feet to the true Point of Beginning on the North line of the existing right-of-way of 400 North Street; Thence, N00°2741 "W 15.00 feet; Thence, N89°49'14"E 156.28 feet; Thence, 35.97 feet along an arc of a 23.00 foot radius tangent curve to the left, through a central angle of 89°36'32", with a chord bearing N45°00'58"E a distance of 32.41 feet to a point on the West right-of-way line of River Sands Road; Thence, non -tangent to said curve and along said right-of-way line, S00°12'42"W 37.84 feet to a point on said North right-of-way line of 400 North Street; Thence, along said North right-of-way line, S89°49'14"W 179.05 feet to the true Point of Beginning and containing 0.064 acres, more or less. See attached Exhibit B for a sketch of said Parcel. c 1e01off-2201 El WIIWAM F. S),5 BREWSTER ° 11/41k2r.%‘i P This description was prepared by: William F. Brewster Utah P.L.S. 190107-2201 11 North Main Street #7 Moab, Utah 84532 fit/ /o-/4-/4 NOTICE: Any rewriting or retyping of this description must NOT include this preparation information. Lack of an original seal indicates this document is not the original 1 of 2 ca -a c d a) Q Page 6 of 67 o a0o +ri -4 N N r- o * t0 N Z ? a� 0 15 30 .■,.SMS. SCALE 01FEU FOUND 5/8" REBAR WITH RED 3/4" PLASTIC CAP RUMBLE THIS Elann' IS FOR THE PURPOSE OF GRAPHICALLY RBPRESENTING A menu DESCRIPTION - IT DOES NOT REPRESENT A MONUMENTED BOUNDARY SURVEY FOUND 5/8" REBAR WITH RED 3/4" PLASTIC CAP 1LLEgBLE�`�,,, 15' STREET GRANTED TO CITY OF MOAB ViA WARRANTY DEED (HATCHED AREA) \FOUND 5/B" REBAR POINT OF BEGINNING FOUND 3" BRASS CAP IN RANGE BOX SOUTH 1/4 CORNER SECTION 35 T25S R21E A=89'36'32" L=35.97' R=23.00' CH=N45'00'58"E 32.41' -\ iiiiiiiiiiiiiiiiiiiiiirFOUND 5/ir MBAR M)S89 49'14"W 179.05' (R)S89'54'00"W 179.60' BASIS OF BEARING S89'54'00"W 1675.60' h0 0, N N r � slJ.i N O d O 1410 No mix w 400 NORTH STREET O In FOUND 2" BRASS CAP IN RANGE BOX SOUTH EAST CORNER SECTION 35 T25S R21E ON 02/2010 CORNER DESTROYED DURING STREET RECONSTRUCTION REPLACED. WITH 2" ALUMINUM CAP 190107--2201 IN MONUMENT BOX FROM PREVIOUS SURVEY AND MONUMENT RECORDS MCFARLAND harNIIMMO mandluadhasmi EXHIBIT-B EASEMENT woo ee BKB OIREs 10-16-13 amigo1* WFB SCALE r=30 Prima Noe 8619896 SHEET it 1 i''"' ea -a c a> a) a Page 7 of 67 f Agenda Summary CITY COUNCIL MEETING h.JSLauember 6, 2014 V Agenda item #:1-2 Cia MOAB PL-14-067 Title: Final Plat for Deer Trail Subdivision, as Amended, and Review and Adoption of Resolution #47- 2014 Conditionally Approving the Final Plat of the Six- Unit Townhome Subdivision Staff Presenter(s): Jeff Reinhart Department: Planning and Zoning Applicant: Scott McFarland Background/Summary: Deer Trail Townhome Subdivision is a six -unit proposal that will be located at 792 West 400 North in the R-4 Zone. The property is 22,216 square feet (.51 acres) in size. Required improvements include curb, gutter, sidewalk, and a widening of 400 North. A street dedication of fifteen feet to widen 400 North is necessary to attain an adequate right-of-way width. The townhome units will be constructed as affordable housing by the Housing Authority of Southeastern Utah (HASU). The units will be attached two story dwellings that have an approximate footprint of 950 square feet and a total size of 1900 square feet including a garage, and the lot coverage is approximately 26% of the lot area. The Planning Commission reviewed the proposal during a duly advertised public hearing on September 25, 2014. Subsequent to the hearing, the Commission voted 3-0 to have the applicant go forward with the final plat. On October 14, 2014, the City Council approved the final plat for the Deer Trail development. That plat was not recorded. Some changes were made by the surveyor to the legal description after he replaced a monument that had been destroyed when the street surface was constructed. The new legal description references the new 2" aluminum cap. Also, the drainage and utility easement along the north and west edges of the property has been widened from ten feet to twenty five feet in width. The plat shows the 400 North Street right-of-way dedication as required by the code. Options: The City Council can: 1. Adopt Resolution #47-2014 to approve the Final Plat for Deer Trail Townhome Subdivision with the listed conditions; 2. Adopt Resolution #47-2014 to approve the Final plat for Deer Trail Townhome Subdivision with additional conditions; 3. Vote to not adopt Resolution #47-2014 and state their reasons; 4. Table the vote on the resolution until a later date and request additional information Staff Recommendation: Staff recommends that the Final Plat for Deer Trail Townhome Subdivision, located at 792 West 400 North, be approved with the listed conditions. l Page 8 of 67 Agenda City Council November 47, 2014 Final Plat Deer Trail Townhome Subdivision Recommended Motion: I move to adopt Resolution #47-2014 conditionally approving the Final Plat for the Deer Trail Townhome Subdivision with the conditions that: 1. Applicant shall work with the City Staff to create an approvable storm water drainage plan. 2. Applicant shall continue to work with City Staff to generate an acceptable design for sanitary sewer connections. 3. Applicant shall follow the requirements of Rocky Mountain Power in relocation of the power pole that is currently located within the proposed street right-of-way. Attachment(s): Resolution #47-2o3.4 Final plat p:\planning department \2014\correspondence \pi-14-067 cc final deer trail th sub.docx Page 9 of 67 CITY OF MOAB RESOLUTION #47-2014 A RESOLUTION CONDITIONALLY APPROVING THE FINAL PLAT FOR THE DEER TRAIL TOWNHOME SUBDIVISION ON PROPERTY LOCATED AT 792 WEST 400 NORTH IN THE R-4 ZONING DISTRICT WHEREAS, Scott McFarland, "Applicant", of 775 Hillside Drive, Moab, Utah 84532, has applied for approval of a Preliminary Plat for the Deer Trail Townhome Subdivision on property he owns located in the R-4 (Residential) Zone at 792 West 400 North, and consisting of .51 acres and more particularly described as: DEED DESCRIPTION A PARCEL OF LAND IN THE SE 1/2 SECTION 35, T25S, R21E, SLBM, GRAND COUNTY, UTAH, MORE PARTICULARLY DESCRIBED AS FOLLOWS; BEGINNING AT A POINT WHICH BEARS WITH THE SECTION LINE S 89 DEG. 54' W 1675.6 FEET THENCE N 0 DEG. 06' W 25.0 FEET FROM THE SE CORNER SECTION 35, T25S, R21E, SLBM, AND PROCEEDING THENCE N 0 DEG. 06' W 123.90 FEET, THENCE N 89 DEG. 54' E 179.6 FEET, THENCE S 0 DEG. 06' E 123.9 FEET, THENCE S 89 DEG. 54' W 179.60 FEET TO THE POINT OF BEGINNING. SURVEYOR'S DESCRIPTION A PARCEL OF LAND IN THE SW 1/4 SE 1/4 SECTION 35, T25S, R21E, SLBM. GRAND COUNTY, UTAH, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A 2" ALUMINUM CAP 190107-2201 IN A MONUMENT BOX FOR THE SE CORNER OF SAID SECTION 35; THENCE ALONG SOUTH LINE OF SAID SECTION S89°54'00"W A DISTANCE OF 1675.60 FEET; THENCE N00°27141 "W A DISTANCE OF 24.80 FEET TO THE POINT OF BEGINNING; THENCE N00°03'23"W 125.05 FEET; THENCE N89°54'40"E 179.63 FEET; THENCE S00° 12'42"W 124.77 FEET; THENCE S89°49'14"W 179.05 FEET TO THE POINT OF BEGINNING. CONTAINING 0.514 ACRES, MORE OR LESS. and WHEREAS, Applicant desires to construct a six -unit townhome subdivision on the described property which is an allowed use in the R-4 Zone under an approved subdivision plat; and WHEREAS, Applicant provided the City of Moab with the necessary documents, plans and drawings to complete the application for review of the Final Plat of the proposed Deer Trail Townhome Subdivision as required in Moab Municipal Code (MMC) Title 16.; and WHEREAS, the City of Moab Planning Commission ("Commission") reviewed the Development in a duly advertised public hearing for compliance with the requirements of MMC Title 16, Subdivisions September 25, 2014 and subsequent to the hearing unanimously adopted Planning Resolution #13-2014 and found that the development met or can meet the requirements of MMC Title 16 and Title 17; and WHEREAS, the City Council reviewed the subdivision at a regularly scheduled meeting on October 14, 2014, and again on November 6, 2014, and having considered Staff recommendations, and discussed the pertinent aspects of the development, determined that the Final Subdivision Plat of Deer Trail Townhome Subdivision has met or can meet the requirements of Title 16 and Title 17 of the Moab Municipal Code with the following conditions. 1. Applicant shall work with the City Staff to create an approvable storm water drainage plan. 2. Applicant shall continue to work with City Staff to generate an acceptable design for sanitary sewer connections. 3. Applicant shall follow the requirements of Rocky Mountain Power in relocation of the power pole that is currently located within the proposed street right-of-way. NOW, THEREFORE, BE IT RESOLVED by the Moab City Council, that adoption of Resolution #47-2014 conditionally approves the Final Plat for Deer Trail Townhome Subdivision. Page 10 of 67 2 PASSED AND APPROVED in open Council by a majority vote of the Governing Body of Moab City Council on November 6, 2014. SIGNED: David L. Sakrison, Mayor ATTEST: Rachel E. Stenta, Recorder Page 11 of 67 FINAL PLAT FOUND 3" BRASS CAP IN RANGE BOX SOUTH 1/4 CORNER SECTION 35 T255 R21E 0 1'- FOUND 5/8" REBAR WITH RED 3/4" PLASTIC CAPA ILLEGIBLE bin rno rrj psi N N p i�7 aN [o i'7 a0 as zz tt 2 FOUND 5/8" REBAR POINT OF BEGINN DEER TRAIL TOWNHO VIE SUBDIVISION (R)N89'54'00"E 179.60' (M)N89'54'40"E 179.63' • z 0 25.00' or w 10.00' T DEDICATED 0 3 36.08' a Lri LOT 1 n 3974sf 6.5' 0 15' 0 a 6 25.19" 25' DRAINAGE ai a LOT 2 2770sf a N �n a O z 6' UTILITY 25.19' & UTILITY LOT 3 EASEMENT 25.19' EASEMENT LOT 4 • LOCATED WITHIN THE SW1/4 SE114 OF SECTION 35, T25S, R21E, SLBM, MOAB CITY, GRAND COUNTY, UTAH 25.19' DEDICATED DEDICATED LOT 5 2770sf FOUND 5/8" REBAR WITH RED 3/4" PLASTIC CAP ILLEGIBLE � • HEREON CO 0 HEREON 25.19' 25.19' • 25.19' • S89'49' 1 4"W 156.28' 15' STREET GRANTED TO CITY OF MOAB VIA WARRANTY DEED 25.19' 42.79' LOT 6 4556sf A=89'36'32" L=35.97' R=23.00' CH=S45°00'58"W 32.41' 19.37' rn op �Q 1,6 N N • W N a d-0 N CD p O 0 (.11 cr) �cr • CO BASIS OF BEARING N89'54'00"E PROJECT LOCATION 400 NORTH STREET RIVER SANDS ROAD WEST STREET 35 McGILL 36 0 J } GRAND OASIS BARTLET PUBLIC WORKS DIRECTOR APPROVED THIS DAY OF 2014, BY 1 PARK 200 NORT-1 WALNUT 100 NORT1 WILLIAMS WAY CENTE VICINITY MAP SCALE 1" = 1000' M S89'49'14"W 179.05' (R)589°54'00"W 179.60' FOUND 5/8" REBAR 400 NORTH STREET 589'54100'W 2642.32' ACREAGE CHART X LOTS 0.450 AG 87% STREET ROW 0.066 AC. 13% TOTAL .516 AC 100% LEGEND • FOUND SECTION MONUMENT A5 NOTED • SET 5/8" REBAR WITH ALUM CAP MARKED 190107-2201 O FOUND SURVEY MONUMENT AS NOTED Q d 0 RIVER SANDS a r� ROW GRANTED BOOK 126 PAGE 128, PAGE a M] 589'54'00'W 1675.60' TO DESCRIPTION TIE 20 10 20 40 ( IN FEET ) 1 inch = 20 ft. FOUND 2" BRASS CAP IN RANGE BOX SOUTH EAST CORNER SECTION 35 T255 R21E ON 02/2010 CORNER DESTROYED DURING STREET RECONSTRUCTION DEED DESCRIPTION A PARCEL OF LAND IN THE SE 1/2 SECTION 35, T25S, R21E, SLBM, GRAND COUNTY, UTAH, MORE PARTICULARLY DESCRIBED AS FOLLOWS,' BEGINNING AT A POINT WHICH BEARS WITH THE SECTION LINES 89 DEG. 54' W 1675.6 FEET THENCE N 0 DEG. 06' W 25.0 FEET FROM THE 5E CORNER SECTION 35, T25S, R21E, SLBM, AND PROCEEDING THENCE N 0 DEG. 06' W 123.90 FEET THENCE N 89 DEG. 54' E 179.6 FEET, THENCE S 0 DEG. 06' E 123.9 FEET THENCE S 89 DEG. 54' W 179.60 FEET TO THE POINT OF BEGINNING. SUR VE YOR'S DESCRIPTION A PARCEL OF LAND IN THE SW 1/4 SE 1/4 SECTION 35, T255, R21E, SLBM. GRAND COUNTY, UTAH, MORE PARTICULARLY DESCRIBED AS FOLLOWS - COMMENCING AT A 2" ALUMINUM CAP 190107-2201 IN A MONUMENT BOX FOR THE SF CORNER OF SAID SECTION 35; 771ENCE ALONG SOUTH LINE OF SAID SECTION 58954'00"W A DISTANCE OF 1675.60 FEET; 771ENCE N002741 "W A DISTANCE OF 24.80 FEET TO 77/E POINT OF BEGINNING, 771ENCE NOO 03 23 "W 125.05 FEET THENCE N89 54 40 E 179 63 FEET; THENCE 50072'42 "W 124.77 FEET; THENCE 58949'14"W 179.05 FEET TO THE POINT OF BEGINNING. CONTAINING 0.514 ACRES, MORE OR LESS OWNER'S & MORTGAGEE'S DEDICATION KNOW ALL MEN BY THESE PRESENTS THAT , THE UNDERSIGNED OWNER(S) OF THE ABOVE DESCRIBED TRACT OF LAND, HAVING CAUSED SAME TO BE SUBDIVIDED INTO LOTS AND STREETS HEREAFTER TO BE KNOWN AS THE DEER TRAIL TOWNHOME SUBDIVISION DO HEREBY DEDICATE FOR PERPETUAL USE OF THE PUBLIC ALL DRAINAGE AND UTILITY EASEMENTS AS INTENDED FOR PUBLIC USE. 1N W17NESS WHEREOF ____ HAVE HEREUNTO SET ____ HANDS THIS DAY OF , A.D., 2014. ACKNOWLEDGMENT STATE OF UTAH ) ) S. S. COUNTY OF GRAND ) ON THE DAY OF A.D., 2014 PERSONALLY APPEARED BEFORE ME, THE UNDERSIGNED NOTARY PUBLIC, IN AND FOR THE COUNTY OF IN SAID 5TA TE OF UTAH, 77/E SIGNERS) OF THE ABOVE OWNERS DEDICATION, IN NUMBER, WHO DULY ACKNOWLEDGED TO ME THAT SIGNED 1 T FREELY AND VOLUNTARILY AND FOR THE USES AND PURPOSES THEREIN MEN77ONED. MY COMMISSION EXPIRES REPLACED WITH 2" ALUMINUM CAP 190107-2201 AND #6 REBAR 36" IN MONUMENT BOX FROM PREVIOUS SURVEY AND MONUMENT RECORDS NOTARY PUBLIC RESIDING IN COUNTY SURVEYOR'S CERTIFICATE 1, WILLIAM F. BREWSTER, DO HEREBY CERTIFY THAT 1 AM A REGISTERED UTAH LAND SURVEYOR, AND THAT 1 HOLD CERTIf7CA 7E NO.190107-2201 AS PRESCRIBED UNDER THE LAWS OF THE STATE OF UTAH, AND I FURTHER CERTIFY 771A T UNDER AUTHORITY OF THE OWNERS, I HAVE MADE A SURVEY OF THE TRACT OF LAND SHOWN ON THIS PLAT AND DESCRIBED BELOW, AND HAVE SUBDIVIDED SAID TRACT OF LAND INTO LOTS, HEREAFTER TO BE KNOWN AS DEER TRAIL TOWNHOME SUBDIVISION AND THAT SAME HAS BEEN CORRECTLY SURVEYED AND STAKED ON THE GROUND AS SHOWN ON THIS PLAT: FINAL PLAT DEER TRAIL TO WNHOME SUBDIVISION LOCATED WITHIN THE SW1/4 SEI/4 OF SECTION 35, T25S, R21E, SLBM, MOAB CITY, GRAND COUNTY, UTAH REVISION DATE: 10/07/14 DA I L: 03/10/2010 PROJECT NO: 8619896 SHEET 1 OF 1 DRAWN BY ,bkh PLANNING COMMISSION CERTIFICATE APPROVED THIS DAY OF 2014, BY PLANNING COMMISSION CITY ENGINEERS CERTIFICATE 1 HEREBY CERTIFY THAT I HAVE HAD THIS PLAT AND SAID IRA C T AS STAKED EXAMINED BY THIS OFFICE AND IT IS CORRECT AND IN ACCORDANCE WITH INFORMATION ON FILE IN THIS OFFICE. CITY COUNCIL APPROVAL PRESENTED TO THE THIS DAY OF , 2014. SUBDIVISION WAS ACCEPTED AND APPROVED. APPROVAL AS TO FORM APPROVED A5 TO FORM 71-115 ___ DAY OF 2074, COUNTY RECORDER NO. S TA TE OF UTAH, COUNTY OF GRAND, RECORDED AT THE REQUEST OF DATE TIME BOOK PAGE FEE A,_\/.5A:1\/_1/1,44 SOUDER, MILLER & ASSOCIATES 11 North Main Street, Suite #7 Moab, Utah 84532 Tel: 970-243-6067 - Fax: 970-241-2845 www.soudermiller.com Serving the Southwest & Rocky Mountains Albuquerque - Farmington - Las Cruces - Roswell - Santa Fe, NM Cortez - Grand Junction, CO - Safford, AZ CHAIRMAN PLANNING COMMISSION DATE ATTEST. - CITY ATTORNEY A TIES T.- COUNTY RECORDER Page 12 of 67 f Agenda Summary CITY COUNCIL MEETING November 6, 2014 Agenda. Item #:1-3 and #1-4 ciTY D war 1.11 MOAB Title: Approval of Resolutions #48 and #49 for the Deer Trail Subdivision Improvements Agreements and Escrow Agreements Staff Presenter(s): Donna Metzler Department: Administration Applicant: Scott McFarland and Housing Authority of Southeastern Utah Background/Summary: Deer Trail Townhome Subdivision is a six -unit proposal that will be located at 792 West 400 North in the R-4 Zone. The property is 22,216 square feet (.51 acres) in size. Required improvements include curb, gutter, sidewalk, and a widening of 400 North. A street dedication of fifteen feet to widen 400 North is necessary to attain an adequate right-of-way width. The townhome units will be constructed as affordable housing by the Housing Authority of Southeastern Utah (HASU). The Subdivider is responsible for constructing all of the required public improvements for the subdivision. Scott McFarland as the Subdivider has elected to post a financial assurance in the form of placing money in escrow for 150% of the estimated cost of completing the required improvements. This method requires the approval of an escrow agreement setting forth the terms and conditions of the escrow account and disbursals from the account upon partial and/or complete completion of the improvements. In addition, the Subdivider and the Housing Authority of Southeastern Utah have a purchase agreement setting forth the terms and conditions of the Subdivider's selling the project property to the Housing Authority. This agreement provides that the Subdivider will perform some of the required improvements and that HASU will perform some of the required improvements. Because of this, we will need to have two Subdivision Improvements Agreements and two Escrow Agreements — one for Scott McFarland stipulating the improvements that he will complete and one with HASU for the improvements that they will complete. Cost estimates for all improvements have been generated and are attached to the agreements. Options: The City Council may: 1. Adopt Resolution #48-2014 and #49-2014 approving the Subdivision Improvements Agreements and Escrow Agreements for the Deer Trail Townhome Subdivision; 2. Adopt Resolution #48-2014 and #49-2014 approving the Subdivision Improvements Agreements and Escrow Agreements for the Deer Trail Townhome Subdivision, with changes; 3. Vote to not adopt the resolutions and state their reasons; 4. Postpone the vote on the resolutions until a later date and request additional information. Staff Recommendation: Staff recommends that the resolutions be adopted as submitted. Attachment(s): Resolutions #48-zoi4 and #49-2o3.4 Subdivision Improvements Agreements and Escrow Agreements l Page 13 of 67 Agenda CITY OF MOAB RESOLUTION #48-2014 A RESOLUTION APPROVING THE SUBDIVISION IMPROVEMENTS AGREEMENT AND ESCROW AGREEMENT WITH SCOTT MCFARLAND, FOR THE DEER TRAIL TOWNHOME SUBDIVISION ON PROPERTY LOCATED AT 792 WEST 400 NORTH IN THE R-4 ZONING DISTRICT WHEREAS, Scott McFarland, "Applicant," has provided the City of Moab with the necessary documents, plans and drawings to complete the application for review of the Final Plat of the proposed Deer Trail Townhome Subdivision as required in Moab Municipal Code (MMC) Title 16.; and WHEREAS, Applicant desires to construct a six -unit townhome subdivision on the described property which is an allowed use in the R-4 Zone under an approved subdivision plat; and WHEREAS, the City of Moab Planning Commission ("Commission") reviewed the Development in a duly advertised public hearing for compliance with the requirements of MMC Title 16, Subdivisions September 25, 2014 and subsequent to the hearing unanimously adopted Planning Resolution #13-2014 and found that the development met or can meet the requirements of MMC Title 16 and Title 17; and WHEREAS, the City Council reviewed the subdivision at a regularly scheduled meeting on October 14, 2014, and again on November 6, 2014, and having considered Staff recommendations, and discussed the pertinent aspects of the development, determined that the Final Subdivision Plat of Deer Trail Townhome Subdivision has met or can meet the requirements of Title 16 and Title 17 of the Moab Municipal Code conditions; and WHEREAS, the City Council has approved the Final Subdivision Plat of Deer Trail Townhome Subdivision; and WHEREAS, Applicant is required to complete public and other improvements for the Subdivision; and WHEREAS, A Subdivision Improvements Agreement between the City and Applicant is needed in order to provide for the completion of, and financial assurance for, the required improvements for the Subdivision; and WHEREAS, An Escrow Agreement is needed in order to provide for the financial assurance for the required improvements; and WHEREAS, the Subdivision Improvements Agreement and the Escrow Agreement have been presented to this meeting of the Moab City Council; and NOW, THEREFORE, be it resolved by the Moab City Council, that adoption of Resolution #48-2014 hereby approves the Subdivision Improvements Agreement and Escrow Agreement with Scott McFarland, and authorizes the appropriate officials to execute and deliver said agreements. PASSED AND APPROVED in an open meeting by a majority vote of the Governing Body of Moab City Council on November 6, 2014. SIGNED: David L. Sakrison, Mayor ATTEST: Rachel Stenta, Recorder Resolution #48-2014 Page 14 of 67 SUBDIVISION IMPROVEMENTS AGREEMENT For Deer Trail Townhome Subdivision Scott McFarland The CITY OF MOAB, a Utah municipality (hereinafter "CITY"), and Scott McFarland, (hereinafter "SUBDIVIDER") mutually referred to as the "Parties", do hereby enter into the following Agreement, pursuant to Moab Municipal Code (hereinafter: "City Code") Section 16.20, to cover the installation of subdivision improvements required by City Code (hereinafter: the "Required Improvements"). I. RECITALS. A. The City Planning Commission ("Commission"), as the recommending body to the Land Use Authority for preliminary subdivision plat approval, after following all required procedures and meeting noticing requirements, approved a Preliminary Plat for the Deer Trail Townhome Subdivision on September 25, 2014. B. The Commission, after following all required procedures and meeting notice requirements, recommended conditional approval of the Final Plat for the Deer Trail Townhome Subdivision to the Moab City Council ("Council"). C. The Council, as the Land Use Authority for Final Subdivision Plat approval, approved the Final Plat of the Deer Trail Townhome Subdivision (hereafter "the Subdivision" or "the Plat") at its regular City Council meeting on October 14, 2014. D. SUBDIVIDER has submitted to CITY for its review construction plans and specifications, having been prepared by Souder Miller and Associates (SMA) and bearing the stamp of a licensed Professional Engineer (hereinafter: the "Construction Plans"). Said Construction Plans show in sufficient detail the Required Improvements for the Subdivision. E. The Construction Plans have been reviewed and approved subject to such modifications as may have been specified by each of the following entities: (i) The City Engineer with respect to site grading, pathway, street, and storm water drainage improvements, (ii) The City Public Works Department with respect to public culinary water and sewer improvements. II. AGREEMENT IN CONSIDERATION OF THE ABOVE PREMISES, THE PARTIES HEREBY AGREE AS FOLLOWS: 11Page Page 15 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and Scott McFarland Page 2 of 8 1. Covered Property. The real property subject to this Agreement (hereinafter; the "Property") is described as follows by survey: SURVEYOR'S DESCRIPTION A PARCEL OF LAND IN THE SW 1/4 SE 1/4 SECTION 35, T255, R21E, SLBM. GRAND COUNTY, UTAH, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A 2" ALUMINUM CAP 190107-2201 IN A MONUMENT BOX FOR THE SE CORNER OF SAID SECTION 35; THENCE ALONG SOUTH LINE OF SAID SECTION S89°54'00"W A DISTANCE OF 1675.60 FEET; THENCE N00°27'41"W A DISTANCE OF 24.80 FEET TO THE POINT OF BEGINNING; THENCE N00°03'23"W 125.05 FEET; THENCE N89°54'40"E 179.63 FEET; THENCE S00°12'42"W 124.77 FEET; THENCE S89°49'14"W 179.05 FEET TO THE POINT OF BEGINNING. CONTAINING 0.514 ACRES, MORE OR LESS. 2. Required Improvements. SUBDIVIDER will make all improvements to the property shown on the Construction Plans. Required Improvements shall include but not be limited to the following: (a) Site clearing and removal of obstructions are required, but shall be performed under a separate Improvements Agreement with the Housing Authority of Southeastern Utah. (b) General site grading is required, but shall be performed under a separate Improvements Agreement with the Housing Authority of Southeastern Utah. (c) Site utilities including culinary water and sanitary sewer and electric stub - outs (d) Streets, curb & gutter, and sidewalks (e) Street striping and signage (f) Storm water drainage facilities, including grading and berming, are required, but shall be installed under a separate Improvements Agreement with the Housing Authority of Southeastern Utah. 3. Improvements to be Completed in Conformance with Construction Plans. Improvements shall be completed in conformance with the approved Construction Plans. All changes to the Construction Plans must be authorized in writing by the City Engineer. In addition, all improvements shall be completed in conformance with the City of Moab Public Improvement Specifications, and all state and federal regulations as applicable. Where discrepancies occur between the Construction Plans and the listed reference standards, the reference standard shall prevail. 4. Building Permits. No Building Permits will be issued until the final plat is recorded AND a financial assurance as provided for in this agreement has been Page 16 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and Scott McFarland Page 3 of 8 filed. 5. Acceptance of Improvements, Warranty. All work shall be subject to quality assurance testing and inspection as specified in the Construction Plans and/or applicable reference standards. SUBDIVIDER or SUBDIVIDER's authorized representative shall provide 48 hours minimum notification to CITY as applicable when inspection by either entity is required. The costs associated with such testing and inspection shall be the responsibility of SUBDIVIDER. (a) Upon satisfactory completion of improvements as evidenced by inspection & testing as applicable, all water and sewer mains shall be dedicated to the CITY and all street and public pathway improvements in public rights -of - way shall be dedicated to CITY. (b) SUBDIVIDER warrants that all public improvements dedicated to CITY shall be constructed in a workmanlike manner and in accordance with approved plans and specifications, and that all such improvements shall be free of defects in materials and workmanship for a period of one (1) year from the date of acceptance by CITY. (i) SUBDIVIDER shall promptly repair or replace any defective work following receipt of written notice under this warranty from the CITY. (ii) SUBDIVIDER additionally warrants that all public improvements shall be delivered free and clear of any lien or encumbrance. (c) SUBDIVIDER shall post with the city an amount not to exceed 10% of the total costs of construction of the Required Improvements for a warranty period not to exceed one year of the date of final inspection and acceptance by the CITY. The warranty amount shall be promptly returned to SUBDIVIDER upon expiration of the one year warranty period. This amount shall be in addition to the 140% Performance Guaranty provided for below, for a total initial financial assurance of 150%. 6. Performance Guaranty/Financial Assurance. Pursuant to City Code 16.20.060, SUBDIVIDER has elected to post a performance guaranty with CITY prior to recordation of the Plat. (a) SUBDIVIDER shall post a financial assurance, in the form of an escrow account, for the use and benefit of CITY and/or any subcontractors, laborers, or suppliers providing labor or materials for construction of the Required Improvements. The amount of the assurance shall be 140% of the estimated cost of the Required Improvements remaining to be completed at the time of the posting of the financial assurance. The cost estimate is attached hereto as Exhibit A. It is the SUBDIVIDER's responsibility to contact the City Manager to arrange for the posting of the financial assurance. This financial assurance shall be in addition to the 10% of total construction cost warranty amount provided for herein, for a Page 17 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and Scott McFarland Page 4 of 8 total initial financial assurance of 150%. 7. Recordation of Plat and Filing of Financial Assurance. If the financial assurance in 9(a) above has not been established before the six-month time frame to record the final plat, CITY shall issue an immediate cease and desist order to SUBDIVIDER and all work shall be discontinued until such time as an acceptable financial assurance has been established. In no case shall any building permits be issued until the required financial assurance is received by the CITY. Recordation of the Final Plat shall not occur unless SUBDIVIDER files an acceptable financial assurance with the City, as provided for herein. If SUDIVIDER fails to file the financial assurance or complete the Required Improvements within six months of the approval of the Final Plat by the City Council, recordation of the Final Plat will not occur and approval of the Final Plat will lapse. In such case as the approval of the Final Plat lapses, a cease and desist order will be issued, and other action against SUBDIVIDER as allowed by law will be taken. 8. Partial Releases of Financial Assurance. Upon partial completion of any class of improvements within the Required Improvements, as listed as a separate line item in Exhibit A, such as curb & gutter by way of example, SUBDIVIDER may request a partial release of escrow funds. The amount of funds released in a partial release shall not total more than one hundred thirty percent (130%) of the estimated cost of the completed improvements determined in accordance with Exhibit A, less the sum of all prior releases. Partial releases shall not be made for partial completion of a class of improvements. (a) In order for SUBDIVIDER to receive such partial disbursement, the following shall be presented to CITY: (i) A completed Escrow/Financial Assurance Partial Release Form supplied by CITY and signed by a professional engineer serving as agent for SUBDIVIDER (hereinafter: SUBDIVIDER's Engineer), (ii) Copies of all quality assurance test results/inspection reports required for the completed improvements, (iii) Copies of all weight/quantity tickets for materials incorporated in the work for all items that were estimated on the basis of weight/quantity, (iv) Copies of all bill of lading receipts for materials delivered to the site and not yet incorporated in the work for which a partial release is being requested. (b) The partial release request shall be reviewed for completeness and accuracy by City Public Works Director and/or City Engineer. CITY may adjust the amount of request if field inspection shows that quantities are not accurate, or all items of work have not been completed in accordance with the approved Construction Plans. (c) CITY shall process request within seven working days of receipt of a Page 18 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and Scott McFarland Page 5 of 8 complete request application. 9. Final Release of Financial Assurance. Upon completion of all Required Improvements in accordance with the approved Construction Plans, SUBDIVIDER may request that the remainder of the Financial Assurance be released. The 10% warranty amount shall be retained until one year after the acceptance of improvements. (a) In order for SUBDIVIDER to receive final release of the financial assurance, the following shall be presented to CITY: (i) A completed Escrow/Financial Assurance Final Release Form supplied by CITY and signed by SUBDIVIDER. Said form shall include SUBDIVIDER's certification of warranty for the completed improvements. (ii) Copies of lien waivers/releases from all contractors who performed work on the project and all suppliers who supplied materials that were incorporated into the work. (iii) Written certification by SUBDIVIDER that all outstanding charges for the Improvements have been paid and that there are no liens, encumbrances, or other restrictions on the Improvements. (b) Upon acceptance of a complete request for final release, City Engineer and City Public Works Director shall verify that all Required Improvements are complete and in accordance with the approved Construction Plans and Final Plat. (c) Upon written certification from City Engineer that SUBDIVIDER has completed all of the required public and other subdivision improvements in accordance with this Agreement, and that there are not liens, encumbrances or other restrictions on the Improvements, and that such Improvements have been inspected and approved by the City Public Works Director and the City Engineer, the City Council shall execute a resolution verifying the acceptance of the Improvements and, if applicable, authorizing the Escrow Agent to disburse to the SUBDIVIDER any remaining funds, including any accrued interest, save the 10% warranty amount. (d) The 10% warranty amount, plus any accrued interest on this amount, shall be returned to the SUBDIVIDER one year after acceptance of the Required Improvements by the City, provided that no defects covered by the one-year warranty are discovered. SUBDIVIDER shall remedy any and all defects in the Required Improvements, or be subject to the relinquishment of the 10% warranty amount. 10. CITY's Use of Performance Guaranty upon Default. Upon written certification by the City Manager that the SUBDIVIDER has failed to perform its obligations under this Agreement, within the time period set forth in this Agreement, and if Page 19 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and Scott McFarland Page 6 of 8 the CITY intends to proceed with the task of installing any or all of the Required Improvements covered by this Agreement, the Escrow Agent or other authorized individual shall then disburse Escrow Funds to the CITY or other payee authorized in writing by the CITY, in such amounts requested by the CITY. 11. Zoning Compliance. Certificates of Occupancy for structures within the Property shall only be issued upon satisfactory completion and acceptance of all Required Improvements as stipulated herein. 12. Default, Remedies, Lapse of Plat. All provisions of this Agreement are material and any violation is grounds for declaration of Default. Prior to invoking any remedies for Default under this Agreement the CITY shall deliver written notice to the SUBDIVIDER describing the act, event, or omission constituting same, and allowing SUBDIVIDER a period of not less than thirty (30) days in which to cure or abate the violation. Cure within that period reinstates this Agreement. (a) Upon declaration of default the CITY may exercise any remedies for violation available under City ordinances or Utah statutes, including, without limitation, proceeding against the payment or performance bonds; withholding building permits or certificates of occupancy/zoning compliance; an action to enjoin or abate zoning violations; recording of a lapse of plat, in whole or in part; and any other remedies available at law or equity, including specific performance or injunctive relief. (b) The recording of a lapse of plat by the CITY shall result in the reversion of the approval of the subdivision. A lapse of plat shall terminate all previous approvals and result in the elimination of platted lots for the affected property. 13. General Provisions. This Agreement shall be binding on and inure to the benefit of the successors and assigns of SUBDIVIDER in the ownership or development of all or any portion of the Property. Prior to assigning any or all of his rights and duties under this Agreement SUBDIVIDER shall obtain from any transferee a written assumption acknowledging and agreeing to be bound by this Agreement. (a) This Agreement is the product of mutual bargaining. All terms shall be construed in accordance with their plain meaning, regardless of the extent to which either party participated in the drafting. (b) Failure of a party to exercise any right under this Agreement shall not be deemed a waiver of any such right, nor shall any course of dealing or previous action or inaction be deemed a waiver of any rights or claims arising with respect to later or subsequent breaches, acts or omissions. (c) The term "Agreement" includes this Improvements Agreement, all exhibits hereto, the Final Plat/Plan for the subdivision, and all related design drawings, which documents shall constitute the sole and complete Agreement between the parties. The Agreement shall supersede all prior Agreements or representations, however evidenced. No modifications to Page 20 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and Scott McFarland Page 7 of 8 any of the terms of this Agreement shall be binding, unless reduced to writing and lawfully executed by both parties. (d) The place of performance of this Agreement is Grand County, Utah. In the event of any legal dispute concerning the subjects of this Agreement, the parties stipulate to venue in the Seventh Judicial District Court, Grand County, Utah. In any such proceeding the parties waive trial to a jury on all claims and agree that the action shall be tried to the court. (e) In any legal proceeding concerning the terms of this Agreement the substantially prevailing party shall be entitled to recover its reasonable attorney fees and court costs in addition to any other relief authorized herein. (0 (g) This Agreement shall be governed by Utah law. This Agreement does not create any third party beneficiary rights. It is specifically understood by the parties that; (i) the Project is a private development; (ii) the CITY of Moab has no interest in, responsibilities for, or duty to third parties concerning any improvements to the Property, unless the CITY accepts the improvements pursuant to this Agreement; (iii) and except as otherwise provided herein, SUBDIVIDER shall have full power and exclusive control of the Property. (h) The provisions of this Agreement are severable, and if any portion should be held to be void or unenforceable, then the remainder of this Agreement shall be construed to be in full force without reference to the invalid provision. In the event of any legal dispute concerning this Agreement neither party shall be liable to the other for consequential damages, lost profits, or delay related damages of any kind. (j) All notices under this Agreement shall be given in writing by first class or certified mail, postage prepaid, and delivered to the following addresses: (i) To the City of Moab: City of Moab 217 East Center Street Moab, Utah 84532 Attn: City Manager To SUBDIVIDER: Scott McFarland 775 Hillside Drive Moab, UT 84532 Page 21 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and Scott McFarland Page 8 of 8 Phone: 435-259-2972 Email: scott@highpointhummer.com (k) Notice may be delivered to such other parties or addresses as the parties may designate in writing from time to time. IN WITNESS WHEREOF, this Agreement has been executed by the City of Moab, acting by and through the Moab City Council, which has duly authorized execution, and by SUBDIVIDER as of the date(s) specified below. CITY OF MOAB: Mayor David L. Sakrison Date ATTEST: Rachel Stenta City Recorder SUBDIVIDER: SCOTT MCFARLAND Scott McFarland STATE OF UTAH COUNTY OF GRAND Date Date The foregoing agreement was executed before me by , this day of , 20. Witness my hand and official seal. My commission expires: Notary Public, State of Utah Address: Page 22 of 67 EXHIBIT A Deer Trail Townhomes Opinion of Probable Construction Costs -Pond Improvements Housing Authority Cost Share Item #. Item Description Unit Quantity Unit Price Total Price 1 Cut CY 42 $ 7.05 $ 296.10 2 Fill CY 42 $ 7.05 $ 296.10 3 Site Grading/Pond Shaping SY 300 $ 4.49 $ 1,347.00 4 Construction Staking Hr 3 $ 150.00 $ 450.00 5 Mobilization LS 1 PoC* $ 358.38 SubTotal Of Construction Cost $ 2,747.58 20% Contingency $ 549.52 Total Opinion of probable Construction Cost $ 3,297.10 Plus 50% *PoC - Percentage of Construction Cost This cost estimate is a guide. Actual sizes and quantities shall be governed by the construction plans, city specifications and field conditions 4,945.50 Page 23 of 67 EXHIBIT A Deer Trail Townhomes Opinion of Probable Construction Costs -Lot Improvements Item #. Item Description Unit Quantity Unit Price Total Price 1 Clear and Grub the Site SY 2468 $ 2.25 $ 5,553.00 1 Furnish, Load, Hauling & Depositing of Fill Dirt at Site CY 150 $ 25.60 $ 3,840.00 3 Placing and Compacting Imported Fill CY 150 $ 4.00 $ 600.00 4 Site Grading SY 1500 $ 4.49 $ 6,735.00 5 Construction Staking LS 1 $ 1,500.00 $ 1,500.00 6 Materials Testing LS 1 PoC $ 836.40 7 Mobilization LS 1 PoC $ 2,026.71 SubTotal Of Construction Cost $ 15,538.11 20% Contingency $ 3,107.62 Total Opinion of probable Construction Cost $ 18,645.73 No Financial Assurance Needed PoC - Percentage of Construction Cost This cost estimate is a guide. Actual sizes and quantities shall be governed by the construction plans, city specifications and field conditions Page 24 of 67 EXHIBIT A Deer Trail Townhomes Opinion of Probable Construction Costs -Subdivision Development Scott McFarland Cost Share Item #. Item Description Unit Quantity Unit Price Total Price 1 Subgrade Prep SY 335 $ 2.76 $ 924.94 2 8" Base Course In Place Ton 255 $ 22.00 $ 5,610.00 3 4" Asphalt In Place Ton 130 $ 98.00 $ 12,740.00 4 Std Curb and Gutter LF 20 $ 18.00 $ 360.00 5 Std Rolled Curb and Gutter LF 191 $ 18.00 $ 3,438.00 6 Std 5' sidewalk LF 201 $ 23.60 $ 4,743.60 7 Construct Catch Basin on Existing 30" CMP Storm Drain Ea 1 $ 5,125.00 $ 5,125.00 8 72" manhole Ea 1 $ 4,975.00 $ 4,975.00 9 48" manhole Ea 1 $ 3,180.00 $ 3,180.00 10 Trench and Backfill for sewer LF 142 $ 11.50 $ 1,633.00 11 8" sewer PVC LF 142 $ 10.00 $ 1,420.00 12 Pipe bedding Ton 40 $ 11.00 $ 440.00 13 8" cleanout w/ traffic lid Ea 1 $ 500.00 $ 500.00 14 Sanitary Sewer Line/MH Testing LS 1 $ 1,000.00 $ 1,000.00 15 ADA Ramp Ea 1 $ 780.00 $ 780.00 16 Sawcut Asphalt LF 400 $ 6.00 $ 2,400.00 17 Construction Staking LS 1 $ 5,400.00 $ 5,400.00 18 Materials Testing LS 1 PoC $ 2,229.48 19 Traffic Control LS 1 $ 3,500.00 $ 3,500.00 20 Water Service Lateral Ea 6 $ 1,500.00 $ 9,000.00 21 Sewer Service Lateral Ea 6 $ 2,000.00 $ 12,000.00 22 Mobilization LS 1 $ 11,229.61 SubTotal Of Construction Cost $ 86,093.69 20% Contingency $ 17,218.74 Total Opinion of probable Construction Cost $ 103,312.43 Plus 50% $ 154,968.00 This cost estimate is a guide. Actual sizes and quantities shall be governed by the construction plans, city specifications and field conditions Page 25 of 67 CITY OF MOAB SUBDIVISION IMPROVEMENTS ESCROW AND DISBURSEMENT AGREEMENT DEER TRAIL SUBDIVISION SCOTT MCFARLAND, SUBDIVIDER THIS AGREEMENT is entered into on , by and between THE CITY OF MOAB, UTAH, a municipal corporation, whose address is 217 East Center Ave, Moab, Utah ("CITY") and Scott McFarland ("SUBDIVIDER"). RECITALS: A. Whereas, the City and SUBDIVIDER entered into an Improvements Agreement dated , ("Subdivision Improvements Agreement") containing terms and conditions regarding the subdivision and development of certain property as described by this survey: SURVEYOR'S DESCRIPTION A PARCEL OF LAND IN THE SW 1/4 SE 1/4 SECTION 35, T25S, R21E, SLBM. GRAND COUNTY, UTAH, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A 2" ALUMINUM CAP 190107-2201 IN A MONUMENT BOX FOR THE SE CORNER OF SAID SECTION 35; THENCE ALONG SOUTH LINE OF SAID SECTION S89°54'00"W A DISTANCE OF 1675.60 FEET; THENCE N00°27'41"W A DISTANCE OF 24.80 FEET TO THE POINT OF BEGINNING; THENCE N00°03'23"W 125.05 FEET; THENCE N89°54'40"E 179.63 FEET; THENCE S00°12'42"W 124.77 FEET; THENCE S89°49'14"W 179.05 FEET TO THE POINT OF BEGINNING. CONTAINING 0.514 ACRES, MORE OR LESS. B. Whereas, in accordance with the Subdivision Improvements Agreement, SUBDIVIDER is required to post a performance bond in the amount of INSERT AMOUNT in an amount equal to one hundred fifty percent (140%) of estimated cost of constructing and installing certain described public and other required subdivision improvements, plus 10% of the estimated cost of said improvements as a warranty. SUBDIVIDER is required to deposit the sum of INSERT AMOUNT ("Escrow Funds") with the City Treasurer's Office to guarantee the construction and installation of a portion of said improvements. NOW, THEREFORE, in consideration of the recitals described above, the mutual covenants and conditions contained in this Escrow and Disbursement Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the SUBDIVIDER, the parties agree as follows: Page 1 of 6 Page 26 of 67 SECTION 1 CONSTRUCTION OF IMPROVEMENTS SUBDIVIDER agrees to complete the construction and installation of the public and other required subdivision improvements in accordance with all terms and conditions contained in the Subdivision Improvements Agreement. Such construction and installation shall be at SUBDIVIDER's sole expense. SECTION 2 FUNDS HELD IN ESCROW Concurrently with the execution of this Escrow and Disbursement Agreement, SUBDIVIDER shall deposit the sum of $154,968.00 with the City Treasurer's Department. The City Treasurer's Department agrees to hold this amount in escrow and any additional amounts deposited in accordance with the terms of the Subdivision Improvements Agreement. This escrow account shall be for the use and benefit of CITY and/or any subcontractors, laborers, or suppliers providing labor or materials for construction of the Required Improvements. The amount of the assurance shall be 140% of the estimated cost of the Required Improvements remaining to be completed at the time of the posting of the financial assurance. The cost estimate is attached hereto as Exhibit A. This financial assurance shall be in addition to the 10% of total construction cost warranty amount provided for herein, for a total initial financial assurance of 150%. The entire financial assurance shall be deposited in the escrow account and shall be referred to as Escrow Funds. SECTION 3 DUTIES OF THE CITY AS ESCROW AGENT The duties of the Escrow Agent shall be as follows: 3.1 Disbursement of Funds. During the term of this Escrow and Disbursement Agreement, the City Treasurer's Department shall hold and disburse the Escrow Funds in accordance with the terms and provisions of this Escrow and Disbursement Agreement. 3.2 Limited Liability. The City and SUBDIVIDER agree and acknowledge that the City assumes no liability in connection with this Escrow and Disbursement Agreement except for gross negligence or willful misconduct. 3.3 Disputes. If the City Treasurer's Department is unable to determine at any time to whom the Escrow Funds should be delivered, or if a dispute develops between the City and the SUBDIVIDER concerning to whom the Escrow Funds should be delivered, then in such event, the City Page 2 of 6 Page 27 of 67 Treasurer's Office shall coordinate the delivery of the Escrow Funds in accordance with the joint written instructions of the City and SUBDIVIDER. SECTION 4 PARTIES' CONSENT The City and SUBDIVIDER hereby expressly consent to the disbursement of funds and other conduct of the City Treasurer's Department as Escrow Agent as authorized by the provisions of this Escrow and Disbursement Agreement. SECTION 5 DISBURSEMENT OF ESCROW FUNDS 5.1 Partial Releases of Financial Assurance. Upon partial completion of any class of improvements within the Required Improvements, as listed as a separate line item in Exhibit A, such as curb & gutter by way of example, SUBDIVIDER may request a partial release of escrow funds. The amount of funds released in a partial release shall not total more than one hundred thirty percent (130%) of the estimated cost of the completed improvements determined in accordance with Exhibit A, less the sum of all prior releases. Partial releases shall not be made for partial completion of a class of improvements. (a) In order for SUBDIVIDER to receive such partial disbursement, the following shall be presented to CITY: (i) A completed Escrow/Financial Assurance Partial Release Form supplied by CITY and signed by a professional engineer serving as agent for SUBDIVIDER (hereinafter: SUBDIVIDER's Engineer), (ii) Copies of all quality assurance test results/inspection reports required for the completed improvements, (iii) Copies of all weight/quantity tickets for materials incorporated in the work for all items that were estimated on the basis of weight/quantity, (iv) Copies of all bill of lading receipts for materials delivered to the site and not yet incorporated in the work for which a partial release is being requested. (b) The partial release request shall be reviewed for completeness and accuracy by City Public Works Director and/or City Engineer. CITY may adjust the amount of request if field inspection shows that quantities are not accurate, or all items of work have not been completed in accordance with the approved Construction Plans. (c) CITY shall process request within seven working days of receipt of a complete request application. Page 3 of 6 Page 28 of 67 Agenda 5.2 Final Release of Financial Assurance. Upon completion of all Required Improvements in accordance with the approved Construction Plans, SUBDIVIDER may request that the remainder of the Financial Assurance be released. The 10% warranty amount shall be retained until one year after the acceptance of improvements. (a) In order for SUBDIVIDER to receive final release of the financial assurance, the following shall be presented to CITY: (i) A completed Escrow/Financial Assurance Final Release Form supplied by CITY and signed by SUBDIVIDER. Said form shall include SUBDIVIDER's certification of warranty for the completed improvements. (ii) Copies of lien waivers/releases from all contractors who performed work on the project and all suppliers who supplied materials that were incorporated into the work. (iii) Written certification by SUBDIVIDER that all outstanding charges for the Improvements have been paid and that there are no liens, encumbrances, or other restrictions on the Improvements. (b) Upon acceptance of a complete request for final release, City Engineer and City Public Works Director shall verify that all Required Improvements are complete and in accordance with the approved Construction Plans and Final Plat. (c) Upon written certification from City Engineer that SUBDIVIDER has completed all of the required public and other subdivision improvements in accordance with this Agreement, and that there are not liens, encumbrances or other restrictions on the Improvements, and that such Improvements have been inspected and approved by the City Public Works Director and the City Engineer, the City Council shall execute a resolution verifying the acceptance of the Improvements and, if applicable, authorizing the City Treasurer to coordinate disbursement to the SUBDIVIDER any remaining funds, including any accrued interest, save the 10% warranty amount. (d) The 10% warranty amount, plus any accrued interest on this amount, shall be returned to the SUBDIVIDER one year after acceptance of the Required Improvements by the City, provided that no defects covered by the one-year warranty are discovered. SUBDIVIDER shall remedy any and all defects in the Required Improvements, or be subject to the relinquishment of the 10% warranty amount. 5.3 CITY's Use of Performance Guaranty upon Default. Upon written certification of the City Manager that the SUBDIVIDER has failed to perform its obligations under this Agreement, within the time period set forth in this Agreement, and if the CITY intends to proceed with the task of installing any or all of the Required Improvements covered by this Agreement, the City Treasurer or other authorized Page 4 of 6 Page 29 of 67 individual shall then coordinate disbursement of Escrow Funds to the CITY or other payee authorized in writing by the CITY, in such amounts requested by the CITY. SECTION 6 NOTICES All notices required or given by the terms of this Escrow and Disbursement Agreement shall be made by personal delivery or by certified first class mail, postage pre -paid, return receipt requested, to the parties at their addresses listed below. All notices shall be effective upon personal delivery or mailing. These addresses shall remain valid until notice of a change of address is given to all parties. If to the City: City of Moab, City Manager 217 East Center Ave Moab, UT 84532 If to SUBDIVIDER: Scott McFarland 775 Hillside Drive Moab, UT 94532 Page 5 of 6 Page 30 of 67 IN WITNESS WHEREOF, each parry to this Escrow and Disbursement Agreement has caused it to be executed on the date indicated below. THE CITY OF MOAB, UTAH By: Mayor Date ATTEST: City Recorder SUBDIVIDER: By: Scott McFarland STATE OF UTAH ) )§ COUNTY OF GRAND ) Subscribed and sworn to before me this day of 20 , by: Scott McFarland (SUBDIVIDER) WITNESS MY HAND AND OFFICIAL SEAL My commission expires: Notary Public Page 6 of 6 Page 31 of 67 illiLionda f Agenda Summary CITY COUNCIL MEETING November 6, 2014 Agenda. Item #:1-3 and #1-4 ciTY D Arc 1,, war 1.11 MOAB Title: Approval of Resolutions #48 and #49 for the Deer Trail Subdivision Improvements Agreements and Escrow Agreements Staff Presenter(s): Donna Metzler Department: Administration Applicant: Scott McFarland and Housing Authority of Southeastern Utah Background/Summary: Deer Trail Townhome Subdivision is a six -unit proposal that will be located at 792 West 400 North in the R-4 Zone. The property is 22,216 square feet (.51 acres) in size. Required improvements include curb, gutter, sidewalk, and a widening of 400 North. A street dedication of fifteen feet to widen 400 North is necessary to attain an adequate right-of-way width. The townhome units will be constructed as affordable housing by the Housing Authority of Southeastern Utah (HASU). The Subdivider is responsible for constructing all of the required public improvements for the subdivision. Scott McFarland as the Subdivider has elected to post a financial assurance in the form of placing money in escrow for 150% of the estimated cost of completing the required improvements. This method requires the approval of an escrow agreement setting forth the terms and conditions of the escrow account and disbursals from the account upon partial and/or complete completion of the improvements. In addition, the Subdivider and the Housing Authority of Southeastern Utah have a purchase agreement setting forth the terms and conditions of the Subdivider's selling the project property to the Housing Authority. This agreement provides that the Subdivider will perform some of the required improvements and that HASU will perform some of the required improvements. Because of this, we will need to have two Subdivision Improvements Agreements and two Escrow Agreements — one for Scott McFarland stipulating the improvements that he will complete and one with HASU for the improvements that they will complete. Cost estimates for all improvements have been generated and are attached to the agreements. Options: The City Council may: 1. Adopt Resolution #48-2014 and #49-2014 approving the Subdivision Improvements Agreements and Escrow Agreements for the Deer Trail Townhome Subdivision; 2. Adopt Resolution #48-2014 and #49-2014 approving the Subdivision Improvements Agreements and Escrow Agreements for the Deer Trail Townhome Subdivision, with changes; 3. Vote to not adopt the resolutions and state their reasons; 4. Postpone the vote on the resolutions until a later date and request additional information. Staff Recommendation: Staff recommends that the resolutions be adopted as submitted. Attachment(s): Resolutions #48-zoi4 and #49-2o3.4 Subdivision Improvements Agreements and Escrow Agreements l Page 32 of 67 CITY OF MOAB RESOLUTION #49-2014 A RESOLUTION APPROVING THE SUBDIVISION IMPROVEMENTS AGREEMENT AND ESCROW AGREEMENT WITH THE HOUSING AUTHORITY OF SOUTHEASTERN UTAH, FOR THE DEER TRAIL TOWNHOME SUBDIVISION ON PROPERTY LOCATED AT 792 WEST 400 NORTH IN THE R- 4 ZONING DISTRICT WHEREAS, Scott McFarland, as Subdivider, has provided the City of Moab with the necessary documents, plans and drawings to complete the application for review of the Final Plat of the proposed Deer Trail Townhome Subdivision as required in Moab Municipal Code (MMC) Title 16.; and WHEREAS, the City of Moab Planning Commission ("Commission") reviewed the Development in a duly advertised public hearing for compliance with the requirements of MMC Title 16, Subdivisions September 25, 2014 and subsequent to the hearing unanimously adopted Planning Resolution #13-2014 and found that the development met or can meet the requirements of MMC Title 16 and Title 17; and WHEREAS, the City Council reviewed the subdivision at a regularly scheduled meeting on October 14, 2014, and again on November 6, 2014, and having considered Staff recommendations, and discussed the pertinent aspects of the development, determined that the Final Subdivision Plat of Deer Trail Townhome Subdivision has met or can meet the requirements of Title 16 and Title 17 of the Moab Municipal Code conditions; and WHEREAS, the City Council has approved the Final Subdivision Plat of Deer Trail Townhome Subdivision; and WHEREAS, Subdivider is required to complete public and other improvements for the Subdivision; and WHEREAS, the Housing Authority of Southeastern Utah (HASU) has entered into an agreement with Subdivider for purchase of the subject property and for the completion of certain required improvements for the Subdivision; and WHEREAS, HASU will complete a portion of the required improvements for the Subdivision; and WHEREAS, a Subdivision Improvements Agreement between the City and HASU is needed in order to provide for the completion of, and financial assurance for, a portion of the required improvements for the Subdivision; and WHEREAS, an Escrow Agreement is needed in order to provide for the financial assurance for the required improvements; and WHEREAS, the Subdivision Improvements Agreement and the Escrow Agreement have been presented to this meeting of the Moab City Council; and NOW, THEREFORE, be it resolved by the Moab City Council, that adoption of Resolution #48-2014 hereby approves the Subdivision Improvements Agreement and Escrow Agreement with HASU, and authorizes the appropriate officials to execute and deliver said agreements. Resolution #49-2014 Page 33 of 67 PASSED AND APPROVED in an open meeting by a majority vote of the Governing Body of Moab City Council on November 6, 2014. SIGNED: David L. Sakrison, Mayor ATTEST: Rachel Stenta, Recorder SIGNED: David L. Sakrison, Mayor ATTEST: Rachel Stenta, Recorder Page 34 of 67 SUBDIVISION IMPROVEMENTS AGREEMENT For Deer Trail Townhome Subdivision Housing Authority of Southeastern Utah The CITY OF MOAB, a Utah municipality (hereinafter "CITY"), and Housing Authority of Southeastern Utah, (hereinafter "DEVELOPER") mutually referred to as the "Parties", do hereby enter into the following Agreement, pursuant to Moab Municipal Code (hereinafter: "City Code") Section 16.20, to cover the installation of subdivision improvements required by City Code (hereinafter: the "Required Improvements"). I. RECITALS. A. The City Planning Commission ("Commission"), as the recommending body to the Land Use Authority for preliminary subdivision plat approval, after following all required procedures and meeting noticing requirements, approved a Preliminary Plat for the Deer Trail Townhome Subdivision on September 25, 2014. B. The Commission, after following all required procedures and meeting notice requirements, recommended conditional approval of the Final Plat for the Deer Trail Townhome Subdivision to the Moab City Council ("Council"). C. The Council, as the Land Use Authority for Final Subdivision Plat approval, approved the Final Plat of the Deer Trail Townhome Subdivision (hereafter "the Subdivision" or "the Plat") at its regular City Council meeting on October 14, 2014. D. Scott McFarland, the SUBDIVIDER for the Subdivision, has submitted to CITY for its review construction plans and specifications, having been prepared by Souder Miller and Associates (SMA) and bearing the stamp of a licensed Professional Engineer (hereinafter: the "Construction Plans"). Said Construction Plans show in sufficient detail the Required Improvements for the Subdivision. E. The Construction Plans have been reviewed and approved subject to such modifications as may have been specified by each of the following entities: (i) The City Engineer with respect to site grading, pathway, street, and storm water drainage improvements, (ii) The City Public Works Department with respect to public culinary water and sewer improvements. F. SUBDIVDER has agreed to construct all required improvements for the Subdivision, with the exception of the storm water drainage improvements, which DEVELOPER has agreed to construct. Wage Page 35 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and the Housing Authority of Southeastern Utah Page 2 of 8 II. AGREEMENT IN CONSIDERATION OF THE ABOVE PREMISES, THE PARTIES HEREBY AGREE AS FOLLOWS: 1. Covered Property. The real property subject to this Agreement (hereinafter; the "Property") is described as follows by survey: SURVEYOR'S DESCRIPTION A PARCEL OF LAND IN THE SW 1/4 SE 1/4 SECTION 35, T25S, R21E, SLBM. GRAND COUNTY, UTAH, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A 2" ALUMINUM CAP 190107-2201 IN A MONUMENT BOX FOR THE SE CORNER OF SAID SECTION 35; THENCE ALONG SOUTH LINE OF SAID SECTION S89°54'00"W A DISTANCE OF 1675.60 FEET; THENCE NOO°27'41"W A DISTANCE OF 24.80 FEET TO THE POINT OF BEGINNING; THENCE NOO°03'23"W 125.05 FEET; THENCE N89°54'40"E 179.63 FEET; THENCE SOO°12'42"W 124.77 FEET; THENCE S89°49'14"W 179.05 FEET TO THE POINT OF BEGINNING. CONTAINING 0.514 ACRES, MORE OR LESS. 2. Required Improvements. DEVELOPER will make the following improvements to the property shown on the Construction Plans. Required Improvements shall include but not be limited to the following: (a) Storm water drainage facilities, including grading and berming (b) Site clearing and removal of obstructions (c) General site grading 3. Improvements to be Completed in Conformance with Construction Plans. Improvements shall be completed in conformance with the approved Construction Plans. All changes to the Construction Plans must be authorized in writing by the City Engineer. In addition, all improvements shall be completed in conformance with the City of Moab Public Improvement Specifications, and all state and federal regulations as applicable. Where discrepancies occur between the Construction Plans and the listed reference standards, the reference standard shall prevail. 4. Building Permits. No Building Permits will be issued until the final plat is recorded AND a financial assurance as provided for in this agreement has been filed. 5. Acceptance of Improvements, Warranty. All work shall be subject to quality assurance testing and inspection as specified in the Construction Plans and/or applicable reference standards. DEVELOPER or DEVELOPER's authorized Page 36 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and the Housing Authority of Southeastern Utah Page 3 of 8 representative shall provide 48 hours minimum notification to CITY as applicable when inspection by either entity is required. The costs associated with such testing and inspection shall be the responsibility of DEVELOPER. (a) Upon satisfactory completion of improvements as evidenced by inspection & testing as applicable, all water and sewer mains shall be dedicated to the CITY and all street and public pathway improvements in public rights -of - way shall be dedicated to CITY. (b) DEVELOPER warrants that all public improvements dedicated to CITY shall be constructed in a workmanlike manner and in accordance with approved plans and specifications, and that all such improvements shall be free of defects in materials and workmanship for a period of one (1) year from the date of acceptance by CITY. (i) DEVELOPER shall promptly repair or replace any defective work following receipt of written notice under this warranty from the CITY. (ii) DEVELOPER additionally warrants that all public improvements shall be delivered free and clear of any lien or encumbrance. (c) DEVELOPER shall post with the city an amount not to exceed 10% of the total costs of construction of the Required Improvements for a warranty period not to exceed one year of the date of final inspection and acceptance by the CITY. The warranty amount shall be promptly returned to DEVELOPER upon expiration of the one year warranty period. This amount shall be in addition to the 140% Performance Guaranty provided for below, for a total initial financial assurance of 150%. 6. Performance Guaranty/Financial Assurance. Pursuant to City Code 16.20.060, DEVELOPER has elected to post a performance guaranty with CITY prior to recordation of the Plat. (a) DEVELOPER shall post a financial assurance, in the form of an escrow account, for the use and benefit of CITY and/or any subcontractors, laborers, or suppliers providing labor or materials for construction of the Required Improvements. The amount of the assurance shall be 140% of the estimated cost of the Required Improvements remaining to be completed at the time of the posting of the financial assurance. The cost estimate is attached hereto as Exhibit A. It is the DEVELOPER's responsibility to contact the City Manager to arrange for the posting of the financial assurance. This financial assurance shall be in addition to the 10% of total construction cost warranty amount provided for herein, for a total initial financial assurance of 150%. 7. Recordation of Plat and Filing of Financial Assurance. If the financial assurance in 9(a) above has not been established before the six-month time frame to record the final plat, CITY shall issue an immediate cease and desist order to Page 37 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and the Housing Authority of Southeastern Utah Page 4 of 8 DEVELOPER and all work shall be discontinued until such time as an acceptable financial assurance has been established. In no case shall any building permits be issued until the required financial assurance is received by the CITY. Recordation of the Final Plat shall not occur unless DEVELOPER files an acceptable financial assurance with the City, as provided for herein. If SUDIVIDER fails to file the financial assurance or complete the Required Improvements within six months of the approval of the Final Plat by the City Council, recordation of the Final Plat will not occur and approval of the Final Plat will lapse. In such case as the approval of the Final Plat lapses, a cease and desist order will be issued, and other action against DEVELOPER as allowed by law will be taken. 8. Partial Releases of Financial Assurance. Upon partial completion of any class of improvements within the Required Improvements, as listed as a separate line item in Exhibit A, such as curb & gutter by way of example, DEVELOPER may request a partial release of escrow funds. The amount of funds released in a partial release shall not total more than one hundred thirty percent (130%) of the estimated cost of the completed improvements determined in accordance with Exhibit A, less the sum of all prior releases. Partial releases shall not be made for partial completion of a class of improvements. (a) In order for DEVELOPER to receive such partial disbursement, the following shall be presented to CITY: (i) A completed Escrow/Financial Assurance Partial Release Form supplied by CITY and signed by a professional engineer serving as agent for DEVELOPER (hereinafter: DEVELOPER's Engineer), (ii) Copies of all quality assurance test results/inspection reports required for the completed improvements, (iii) Copies of all weight/quantity tickets for materials incorporated in the work for all items that were estimated on the basis of weight/quantity, (iv) Copies of all bill of lading receipts for materials delivered to the site and not yet incorporated in the work for which a partial release is being requested. (b) The partial release request shall be reviewed for completeness and accuracy by City Public Works Director and/or City Engineer. CITY may adjust the amount of request if field inspection shows that quantities are not accurate, or all items of work have not been completed in accordance with the approved Construction Plans. (c) CITY shall process request within seven working days of receipt of a complete request application. 9. Final Release of Financial Assurance. Upon completion of all Required Improvements in accordance with the approved Construction Plans, Page 38 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and the Housing Authority of Southeastern Utah Page 5 of 8 DEVELOPER may request that the remainder of the Financial Assurance be released. The 10% warranty amount shall be retained until one year after the acceptance of improvements. (a) In order for DEVELOPER to receive final release of the financial assurance, the following shall be presented to CITY: (i) A completed Escrow/Financial Assurance Final Release Form supplied by CITY and signed by DEVELOPER. Said form shall include DEVELOPER'S certification of warranty for the completed improvements. (ii) Copies of lien waivers/releases from all contractors who performed work on the project and all suppliers who supplied materials that were incorporated into the work. (iii) Written certification by DEVELOPER that all outstanding charges for the Improvements have been paid and that there are no liens, encumbrances, or other restrictions on the Improvements. (b) Upon acceptance of a complete request for final release, City Engineer and City Public Works Director shall verify that all Required Improvements are complete and in accordance with the approved Construction Plans and Final Plat. (c) Upon written certification from City Engineer that DEVELOPER has completed all of the required public and other subdivision improvements in accordance with this Agreement, and that there are not liens, encumbrances or other restrictions on the Improvements, and that such Improvements have been inspected and approved by the City Public Works Director and the City Engineer, the City Council shall execute a resolution verifying the acceptance of the Improvements and, if applicable, authorizing the Escrow Agent to disburse to the DEVELOPER any remaining funds, including any accrued interest, save the 10% warranty amount. (d) The 10% warranty amount, plus any accrued interest on this amount, shall be returned to the DEVELOPER one year after acceptance of the Required Improvements by the City, provided that no defects covered by the one- year warranty are discovered. DEVELOPER shall remedy any and all defects in the Required Improvements, or be subject to the relinquishment of the 10% warranty amount. 10. CITY's Use of Performance Guaranty upon Default. Upon written certification by the City Manager that the DEVELOPER has failed to perform its obligations under this Agreement, within the time period set forth in this Agreement, and if the CITY intends to proceed with the task of installing any or all of the Required Improvements covered by this Agreement, the Escrow Agent or other authorized individual shall then disburse Escrow Funds to the CITY or other payee authorized in writing by the CITY, in such amounts requested by the CITY. Page 39 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and the Housing Authority of Southeastern Utah Page 6 of 8 11. Zoning Compliance. Certificates of Occupancy for structures within the Property shall only be issued upon satisfactory completion and acceptance of all Required Improvements as stipulated herein. 12. Default, Remedies, Lapse of Plat. All provisions of this Agreement are material and any violation is grounds for declaration of Default. Prior to invoking any remedies for Default under this Agreement the CITY shall deliver written notice to the DEVELOPER describing the act, event, or omission constituting same, and allowing DEVELOPER a period of not less than thirty (30) days in which to cure or abate the violation. Cure within that period reinstates this Agreement. (a) Upon declaration of default the CITY may exercise any remedies for violation available under City ordinances or Utah statutes, including, without limitation, proceeding against the payment or performance bonds; withholding building permits or certificates of occupancy/zoning compliance; an action to enjoin or abate zoning violations; recording of a lapse of plat, in whole or in part; and any other remedies available at law or equity, including specific performance or injunctive relief. (b) The recording of a lapse of plat by the CITY shall result in the reversion of the approval of the subdivision. A lapse of plat shall terminate all previous approvals and result in the elimination of platted lots for the affected property. 13. General Provisions. This Agreement shall be binding on and inure to the benefit of the successors and assigns of DEVELOPER in the ownership or development of all or any portion of the Property. Prior to assigning any or all of his rights and duties under this Agreement DEVELOPER shall obtain from any transferee a written assumption acknowledging and agreeing to be bound by this Agreement. (a) This Agreement is the product of mutual bargaining. All terms shall be construed in accordance with their plain meaning, regardless of the extent to which either party participated in the drafting. (b) Failure of a party to exercise any right under this Agreement shall not be deemed a waiver of any such right, nor shall any course of dealing or previous action or inaction be deemed a waiver of any rights or claims arising with respect to later or subsequent breaches, acts or omissions. (c) The term "Agreement" includes this Improvements Agreement, all exhibits hereto, the Final Plat/Plan for the subdivision, and all related design drawings, which documents shall constitute the sole and complete Agreement between the parties. The Agreement shall supersede all prior Agreements or representations, however evidenced. No modifications to any of the terms of this Agreement shall be binding, unless reduced to writing and lawfully executed by both parties. (d) The place of performance of this Agreement is Grand County, Utah. In Page 40 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and the Housing Authority of Southeastern Utah Page 7 of 8 the event of any legal dispute concerning the subjects of this Agreement, the parties stipulate to venue in the Seventh Judicial District Court, Grand County, Utah. In any such proceeding the parties waive trial to a jury on all claims and agree that the action shall be tried to the court. (e) In any legal proceeding concerning the terms of this Agreement the substantially prevailing party shall be entitled to recover its reasonable attorney fees and court costs in addition to any other relief authorized herein. (f) This Agreement shall be governed by Utah law. (g) This Agreement does not create any third parry beneficiary rights. It is specifically understood by the parties that; (i) the Project is a private development; (ii) the CITY of Moab has no interest in, responsibilities for, or duty to third parties concerning any improvements to the Property, unless the CITY accepts the improvements pursuant to this Agreement; (iii) and except as otherwise provided herein, DEVELOPER shall have full power and exclusive control of the Property. (h) The provisions of this Agreement are severable, and if any portion should be held to be void or unenforceable, then the remainder of this Agreement shall be construed to be in full force without reference to the invalid provision. In the event of any legal dispute concerning this Agreement neither party shall be liable to the other for consequential damages, lost profits, or delay related damages of any kind. (j) All notices under this Agreement shall be given in writing by first class or certified mail, postage prepaid, and delivered to the following addresses: (i) To the City of Moab: City of Moab 217 East Center Street Moab, Utah 84532 Attn: City Manager To DEVELOPER: Housing Authority of Southeastern Utah 321 E. Center Street Moab, UT 84532 Phone: 435-259-5891 (k) Notice may be delivered to such other parties or addresses as the parties Agenda Page 41 of 67 Deer Trail Townhome Subdivision Subdivision Improvements Agreement City of Moab and the Housing Authority of Southeastern Utah Page 8 of 8 may designate in writing from time to time. IN WITNESS WHEREOF, this Agreement has been executed by the City of Moab, acting by and through the Moab City Council, which has duly authorized execution, and by DEVELOPER as of the date(s) specified below. CITY OF MOAB: Mayor David L. Sakrison Date ATTEST: Rachel Stenta City Recorder Date DEVELOPER: HOUSING AUTHORITY OF SOUTHEASTERN UTAH Housing Authority of Southeastern Utah Name: By Its STATE OF UTAH COUNTY OF GRAND ) )§ ) Date The foregoing agreement was executed before me by , this day of , 20. Witness my hand and official seal. My commission expires: Notary Public, State of Utah Address: Page 42 of 67 EXHIBIT A Deer Trail Townhomes Opinion of Probable Construction Costs -Pond Improvements Housing Authority Cost Share Item #. Item Description Unit Quantity Unit Price Total Price 1 Cut CY 42 $ 7.05 $ 296.10 2 Fill CY 42 $ 7.05 $ 296.10 3 Site Grading/Pond Shaping SY 300 $ 4.49 $ 1,347.00 4 Construction Staking Hr 3 $ 150.00 $ 450.00 5 Mobilization LS 1 PoC* $ 358.38 SubTotal Of Construction Cost $ 2,747.58 20% Contingency $ 549.52 Total Opinion of probable Construction Cost $ 3,297.10 Plus 50% *PoC - Percentage of Construction Cost This cost estimate is a guide. Actual sizes and quantities shall be governed by the construction plans, city specifications and field conditions 4,945.50 Page 43 of 67 EXHIBIT A Deer Trail Townhomes Opinion of Probable Construction Costs -Lot Improvements Item #. Item Description Unit Quantity Unit Price Total Price 1 Clear and Grub the Site SY 2468 $ 2.25 $ 5,553.00 1 Furnish, Load, Hauling & Depositing of Fill Dirt at Site CY 150 $ 25.60 $ 3,840.00 3 Placing and Compacting Imported Fill CY 150 $ 4.00 $ 600.00 4 Site Grading SY 1500 $ 4.49 $ 6,735.00 5 Construction Staking LS 1 $ 1,500.00 $ 1,500.00 6 Materials Testing LS 1 PoC $ 836.40 7 Mobilization LS 1 PoC $ 2,026.71 SubTotal Of Construction Cost $ 15,538.11 20% Contingency $ 3,107.62 Total Opinion of probable Construction Cost $ 18,645.73 No Financial Assurance Needed PoC - Percentage of Construction Cost This cost estimate is a guide. Actual sizes and quantities shall be governed by the construction plans, city specifications and field conditions Page 44 of 67 EXHIBIT A Deer Trail Townhomes Opinion of Probable Construction Costs -Subdivision Development Scott McFarland Cost Share Item #. Item Description Unit Quantity Unit Price Total Price 1 Subgrade Prep SY 335 $ 2.76 $ 924.94 2 8" Base Course In Place Ton 255 $ 22.00 $ 5,610.00 3 4" Asphalt In Place Ton 130 $ 98.00 $ 12,740.00 4 Std Curb and Gutter LF 20 $ 18.00 $ 360.00 5 Std Rolled Curb and Gutter LF 191 $ 18.00 $ 3,438.00 6 Std 5' sidewalk LF 201 $ 23.60 $ 4,743.60 7 Construct Catch Basin on Existing 30" CMP Storm Drain Ea 1 $ 5,125.00 $ 5,125.00 8 72" manhole Ea 1 $ 4,975.00 $ 4,975.00 9 48" manhole Ea 1 $ 3,180.00 $ 3,180.00 10 Trench and Backfill for sewer LF 142 $ 11.50 $ 1,633.00 11 8" sewer PVC LF 142 $ 10.00 $ 1,420.00 12 Pipe bedding Ton 40 $ 11.00 $ 440.00 13 8" cleanout w/ traffic lid Ea 1 $ 500.00 $ 500.00 14 Sanitary Sewer Line/MH Testing LS 1 $ 1,000.00 $ 1,000.00 15 ADA Ramp Ea 1 $ 780.00 $ 780.00 16 Sawcut Asphalt LF 400 $ 6.00 $ 2,400.00 17 Construction Staking LS 1 $ 5,400.00 $ 5,400.00 18 Materials Testing LS 1 PoC $ 2,229.48 19 Traffic Control LS 1 $ 3,500.00 $ 3,500.00 20 Water Service Lateral Ea 6 $ 1,500.00 $ 9,000.00 21 Sewer Service Lateral Ea 6 $ 2,000.00 $ 12,000.00 22 Mobilization LS 1 $ 11,229.61 SubTotal Of Construction Cost $ 86,093.69 20% Contingency $ 17,218.74 Total Opinion of probable Construction Cost $ 103,312.43 Plus 50% $ 154,968.00 This cost estimate is a guide. Actual sizes and quantities shall be governed by the construction plans, city specifications and field conditions Page 45 of 67 CITY OF MOAB SUBDIVISION IMPROVEMENTS ESCROW AND DISBURSEMENT AGREEMENT DEER TRAIL SUBDIVISION HOUSING AUTHORITY OF SOUTHEASTERN UTAH THIS AGREEMENT is entered into on , by and between THE CITY OF MOAB, UTAH, a municipal corporation, whose address is 217 East Center Ave, Moab, Utah ("CITY") and the Housing Authority of Southeastern Utah ("DEVELOPER"). RECITALS: A. Whereas, the City and DEVELOPER entered into an Improvements Agreement dated , ("Subdivision Improvements Agreement") containing terms and conditions regarding the subdivision and development of certain property as described by this survey: SURVEYOR'S DESCRIPTION A PARCEL OF LAND IN THE SW 1/4 SE 1/4 SECTION 35, T25S, R21E, SLBM. GRAND COUNTY, UTAH, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A 2" ALUMINUM CAP 190107-2201 IN A MONUMENT BOX FOR THE SE CORNER OF SAID SECTION 35; THENCE ALONG SOUTH LINE OF SAID SECTION 589°54'00"W A DISTANCE OF 1675.60 FEET; THENCE N00°27'41"W A DISTANCE OF 24.80 FEET TO THE POINT OF BEGINNING; THENCE N00°03'23"W 125.05 FEET; THENCE N89°54'40"E 179.63 FEET; THENCE S00°12'42"W 124.77 FEET; THENCE S89°49'14"W 179.05 FEET TO THE POINT OF BEGINNING. CONTAINING 0.514 ACRES, MORE OR LESS. B. Whereas, in accordance with the Subdivision Improvements Agreement, DEVELOPER is required to post a performance bond in the amount of INSERT AMOUNT in an amount equal to one hundred fifty percent (140%) of estimated cost of constructing and installing certain described public and other required subdivision improvements, plus 10% of the estimated cost of said improvements as a warranty. DEVELOPER is required to deposit the sum of INSERT AMOUNT ("Escrow Funds") with the City Treasurer's Office to guarantee the construction and installation of a portion of said improvements. NOW, THEREFORE, in consideration of the recitals described above, the mutual covenants and conditions contained in this Escrow and Disbursement Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the DEVELOPER, the parties agree as follows: Page 1 of 6 Page 46 of 67 SECTION 1 CONSTRUCTION OF IMPROVEMENTS DEVELOPER agrees to complete the construction and installation of the public and other required subdivision improvements in accordance with all terms and conditions contained in the Subdivision Improvements Agreement. Such construction and installation shall be at DEVELOPER's sole expense. SECTION 2 FUNDS HELD IN ESCROW Concurrently with the execution of this Escrow and Disbursement Agreement, DEVELOPER shall deposit the sum of $4,945.50 with the City Treasurer's Department. The City Treasurer's Department agrees to hold this amount in escrow and any additional amounts deposited in accordance with the terms of the Subdivision Improvements Agreement. This escrow account shall be for the use and benefit of CITY and/or any subcontractors, laborers, or suppliers providing labor or materials for construction of the Required Improvements. The amount of the assurance shall be 140% of the estimated cost of the Required Improvements remaining to be completed at the time of the posting of the financial assurance. The cost estimate is attached hereto as Exhibit A. This financial assurance shall be in addition to the 10% of total construction cost warranty amount provided for herein, for a total initial financial assurance of 150%. The entire financial assurance shall be deposited in the escrow account and shall be referred to as Escrow Funds. SECTION 3 DUTIES OF THE CITY AS ESCROW AGENT The duties of the Escrow Agent shall be as follows: 3.1 Disbursement of Funds. During the term of this Escrow and Disbursement Agreement, the City Treasurer's Department shall hold and disburse the Escrow Funds in accordance with the terms and provisions of this Escrow and Disbursement Agreement. 3.2 Limited Liability. The City and DEVELOPER agree and acknowledge that the City assumes no liability in connection with this Escrow and Disbursement Agreement except for gross negligence or willful misconduct. 3.3 Disputes. If the City Treasurer's Department is unable to determine at any time to whom the Escrow Funds should be delivered, or if a dispute develops between the City and the DEVELOPER concerning to whom the Escrow Funds should be delivered, then in such event, the City Page 2 of 6 Page 47 of 67 Treasurer's Office shall coordinate the delivery of the Escrow Funds in accordance with the joint written instructions of the City and DEVELOPER. SECTION 4 PARTIES' CONSENT The City and DEVELOPER hereby expressly consent to the disbursement of funds and other conduct of the City Treasurer's Department as Escrow Agent as authorized by the provisions of this Escrow and Disbursement Agreement. SECTION 5 DISBURSEMENT OF ESCROW FUNDS 5.1 Partial Releases of Financial Assurance. Upon partial completion of any class of improvements within the Required Improvements, as listed as a separate line item in Exhibit A, such as curb & gutter by way of example, DEVELOPER may request a partial release of escrow funds. The amount of funds released in a partial release shall not total more than one hundred thirty percent (130%) of the estimated cost of the completed improvements determined in accordance with Exhibit A, less the sum of all prior releases. Partial releases shall not be made for partial completion of a class of improvements. (a) In order for DEVELOPER to receive such partial disbursement, the following shall be presented to CITY: (i) A completed Escrow/Financial Assurance Partial Release Form supplied by CITY and signed by a professional engineer serving as agent for DEVELOPER (hereinafter: DEVELOPER's Engineer), (ii) Copies of all quality assurance test results/inspection reports required for the completed improvements, (iii) Copies of all weight/quantity tickets for materials incorporated in the work for all items that were estimated on the basis of weight/quantity, (iv) Copies of all bill of lading receipts for materials delivered to the site and not yet incorporated in the work for which a partial release is being requested. (b) The partial release request shall be reviewed for completeness and accuracy by City Public Works Director and/or City Engineer. CITY may adjust the amount of request if field inspection shows that quantities are not accurate, or all items of work have not been completed in accordance with the approved Construction Plans. (c) CITY shall process request within seven working days of receipt of a complete request application. Page 3 of 6 Page 48 of 67 Agenda 5.2 Final Release of Financial Assurance. Upon completion of all Required Improvements in accordance with the approved Construction Plans, DEVELOPER may request that the remainder of the Financial Assurance be released. The 10% warranty amount shall be retained until one year after the acceptance of improvements. (a) In order for DEVELOPER to receive final release of the financial assurance, the following shall be presented to CITY: (i) A completed Escrow/Financial Assurance Final Release Form supplied by CITY and signed by DEVELOPER. Said form shall include DEVELOPER's certification of warranty for the completed improvements. (ii) Copies of lien waivers/releases from all contractors who performed work on the project and all suppliers who supplied materials that were incorporated into the work. (iii) Written certification by DEVELOPER that all outstanding charges for the Improvements have been paid and that there are no liens, encumbrances, or other restrictions on the Improvements. (b) Upon acceptance of a complete request for final release, City Engineer and City Public Works Director shall verify that all Required Improvements are complete and in accordance with the approved Construction Plans and Final Plat. (c) Upon written certification from City Engineer that DEVELOPER has completed all of the required public and other subdivision improvements in accordance with this Agreement, and that there are not liens, encumbrances or other restrictions on the Improvements, and that such Improvements have been inspected and approved by the City Public Works Director and the City Engineer, the City Council shall execute a resolution verifying the acceptance of the Improvements and, if applicable, authorizing the City Treasurer to coordinate disbursement to the DEVELOPER any remaining funds, including any accrued interest, save the 10% warranty amount. (d) The 10% warranty amount, plus any accrued interest on this amount, shall be returned to the DEVELOPER one year after acceptance of the Required Improvements by the City, provided that no defects covered by the one- year warranty are discovered. DEVELOPER shall remedy any and all defects in the Required Improvements, or be subject to the relinquishment of the 10% warranty amount. 5.3 CITY's Use of Performance Guaranty upon Default. Upon written certification of the City Manager that the DEVELOPER has failed to perform its obligations under this Agreement, within the time period set forth in this Agreement, and if the CITY intends to proceed with the task of installing any or all of the Required Improvements covered by this Agreement, the City Treasurer or other authorized Page 4 of 6 Page 49 of 67 individual shall then coordinate disbursement of Escrow Funds to the CITY or other payee authorized in writing by the CITY, in such amounts requested by the CITY. SECTION 6 NOTICES All notices required or given by the terms of this Escrow and Disbursement Agreement shall be made by personal delivery or by certified first class mail, postage pre -paid, return receipt requested, to the parties at their addresses listed below. All notices shall be effective upon personal delivery or mailing. These addresses shall remain valid until notice of a change of address is given to all parties. If to the City: City of Moab, City Manager 217 East Center Ave Moab, UT 84532 If to DEVELOPER: Housing Authority of Southeaster Utah 321 East Center Street Moab, UT 84532 Page 5 of 6 Page 50 of 67 IN WITNESS WHEREOF, each parry to this Escrow and Disbursement Agreement has caused it to be executed on the date indicated below. THE CITY OF MOAB, UTAH By: Mayor Date ATTEST: City Recorder DEVELOPER: HOUSING AUTHORITY OF SOUTHEASTERN UTAH Housing Authority of Southeastern Utah Printed Name: Title: STATE OF UTAH COUNTY OF GRAND ) )§ ) Date The foregoing agreement was executed before me by , this day of , 20. Witness my hand and official seal. My commission expires: Notary Public, State of Utah Address: Page 6 of 6 Page 51 of 67 AGENDA SUMMARY MOAB CITY COUNCIL MEETING November 6, 2°14 / / Agenda item #:1-5 Title: Approval of Employee Health Insurance Proposal for an Effective Date of January 1, 2015 Fiscal Impact: offset Staff Presenter(s): Rachel Stenta, City Recorder/Assistant City Manager Department: Recorder/Human Resources Applicant: N/A Background/Summary: As you are aware, we have been looking at Health Insurance options for our group given the current negotiations between Moab Regional Hospital and Regence Blue Cross of Utah. We have solicited proposals from three companies maintaining our current deductibles and coverage levels: Arches Medical, Public Employees Health Program (PEHP) and Cigna. While both Arches and Cigna offered lower rates comparatively, staff recommends PEHP as the provider of City health insurance. PEHP is a division of Utah Retirement Systems (URS) and staff believes that PEHP offers a superior insurance product and better networking coverage. PEHP offers many resources for our employees such as wellness incentives, quality/cost tools and as a non-profit agency that only insures local government employees, the City will be eligible to participate in a rebate program similar to Utah Local Governments Trust (please see the attached proposal for more information on PEHP). I have also attached financial comparisons of the rates we currently pay, the rates that were budgeted and the proposed rates. This proposal anticipates employee contributions towards premiums and employer contributions to the Health Savings Accounts (HSA) to remain the same. Please note that the PEHP proposed rate is approximately 13.28% higher than the current BCBS rate,10.34% higher than our budgeted rate and that I have determined potential offsets to the increase in premiums. The increase is projected to be approximately $99,954 per year. We will realize a savings in the Executive benefits budget of $65,000 and we have saved over $46,000 the last 1 Page 52 of 67 Agenda three years by self -funding our dental coverage. These funds will cover the additional amount needed for the current budget year. Options: Approve, Deny or take no action. Staff Recommendation: Staff recommends awarding the 2015 Health Insurance Proposal to Public Employees Health Plan at the rates listed and maintaining the Health Savings Contributions at the rates listed. Recommended Motion: I move to approve the 2015 Health Insurance and HSA rates as presented and to award the Health Insurance proposal to PEHP. Attachment(s): Health Insurance Rates Comparison PEHP Health Insurance Proposal I Agenda, Page 53 of 67 Health Insurance Rates* Comparison (January 1 - December 31, 2015) ■ FY 2014-2015 Budgeted Rates Current BCBS Rates PEHP Proposed Rates Im • act to Bud: et Employee Cost Family 2- Party Member/Child Single Annual Costs Estimated HSA Totals: $ 1,538.99 $ 1,499.03 $ 1,620.45 $ $ 1,063.19 $ 1,039.20 $ 1,175.21 $ $ 1,538.99 $ 1,023.50 $ 1,610.64 $ $ 502.08 $ 475.59 $ 570.05 $ $ 1,092,482.52 $ 1,064,102.40 $ 1,205,411.52 $ 203,000.00 $ 190,025.00 $ 190,025.00 $ 1,295,482.52 $ 1,254,127.40 $ 1,395,436.52 $ HSA Annual Contributions 2015 T •e Match Total Family/2 Party Single $ 3,275.00 $ $ 1,650.00 $ 3,275.00 1,650.00 81.46 $ 112.02 $ 71.65 $ 67.97 $ 50.00 30.00 30.00 15.00 99,954.00 (65,000.00) Executive Benefits (34,954.00) Self Funded Dental Savings (0.00) Total Moab City Recorder's Office * includes Dental and Vision R:\Health Insurance\rates.xlsx 11/5/2014 Page 54 of 67 pewServing the Employees Who Serve Utah 560 East 200 South » Salt Lake City, UT » 84102-2004 » 801-366-7555 » 800-765-7347 » www.pehp.org We appreciate the opportunity to offer healthcare benefits to you and your employees. Here are a few things you should know about PEHP: Serving the Public Sector PEHP is not a traditional insurance company driven by profits; we're a self -funded trust, created and administered for Utah public employees. Employers choose PEHP because when costs are reduced, employers, not PEHP, directly reap the financial benefit. For example, employers in the Local Governments Risk Pool (LGRP) received a premium holiday earlier this year, amounting to more than $10 million. We are focused on providing exceptional service to our clients and members, and it shows. An independent survey company found the level of satisfaction among PEHP members at 87% was "off the charts" for this market. A recent survey of employers resulted in a 95% overall satisfaction rating. Low Cost Administration: A Value That Can't Be Matched You get a great value with our low cost administrative fee. We include more in the price than others. You get hassle -free access to all hospitals and providers in Utah through a single insurance contract, COBRA administration, online enrollment, "LTD premium waiver", open enrollment services, exceptional claims payment, customer service, and more. Convenience PEHP can be your single source for most employee benefits. All benefits from one source, means less confusion an inequities for employees, plus better coordination and efficiencies. Ask us about Dental, Life, LTD, Flex, or other benefit options. PEHP's Offer Medical The rates provided in the attached cost proposal are based on your participation in the Local Governments Risk Pool (LGRP). We set pricing based on utilization, trends, and expected costs —we never "buy business". PEHP is able to closely match current medical benefits with some modifications. The most commonly used difference is in the pharmacy benefit. PEHP offers six different options for pharmacy, see the Pharmacy Options for 2015 sheet for details. In addition, there may be policy differences including limitations and exclusions. If you would like a copy of our Master Policy to be compared to the current carriers master policy, please contact January Geertsen. Dental Consider offering one or two of our three dental plans to your employees. These plans are designed to give employees the coverage they want at a low price. Preferred Choice is the lowest costing option with standard coverage, while groups who prefer additional coverage can select the Traditional or Premium plans. Page 55 of 67 Additional Benefits Included: • Healthy Utah and Waist Aweigh are proven wellness programs where your employees can earn rebates and incentives by completing health screenings and assessments or improving health by lowering their risk factors. • PEHP Integrated Care, maximizes savings and patient care. Disease management, wellness programs, case management, and pharmacy work together under Integrated Care to help members achieve the best possible health and wellness stature while keeping costs down. • WeeCare is PEHP's prenatal program. It helps expectant mothers have a healthy pregnancy, a safe delivery, and a healthy baby. • The PEHP Out -of -State Network Card offers members the ability to receive in -network benefits when traveling outside of the state. • PEHP shares 100% of all pharmacy rebates with the groups who earned the rebate. In 2013, PEHP returned more than $14 million to the various pools. • All of your employees are likely eligible for PEHP Medicare Supplement plans when they retire, whether you offer PEHP benefits or not. Medicare Supplement eligibility is tied to their Utah Retirement Systems benefit. When your retirees become Medicare eligible, have them contact PEHP for their options. Page 56 of 67 Moab City Cost Proposal Medical and Dental January 1, 2015 - December 31, 2015 PEHP proposes the options below for Moab City. Please note: • Rates are effective January 1, 2015 — December 31, 2015 • PEHP STAR plans are HSA-qualified high deductible health plans • All medical plans rated below include pharmacy benefits; however, if Pharmacy Benefit B is selected there will be a rate increase of 1.5% (see Pharmacy Options for 2015 sheet for plan details) • All rates listed are monthly • Rates listed below include non contracted provider benefits (a complete list of providers can be found at pehp.org) • Rates are for active employees only (COBRA and retiree rates are higher depending on status) • Rates are only valid if PEHP is the sole carrier • If Enrollment varies by +/- 10% PEHP reserves the right to adjust the rates as necessary • There are two Preferred Choice Dental plan options. The lower priced option includes a 5-year waiting period for missing teeth and a 6-month waiting period for major dental work for new enrollees. You can pay little more for Preferred, or select Traditional Choice or Premium Choice MEDICAL PLANS SINGLE DOUBLE FAMILY Advantage or Summit STAR 549.92 1138.33 1539.77 DENTAL PLANS Preferred Choice (with waiting periods) Preferred Choice Traditional Choice Premium Choice 45.27 45.81 46.74 50.98 61.91 62.66 63.94 69.70 93.72 94.85 96.79 105.52 Page 57 of 67 Medical Networks PEHP Medical Networks PEHP Advantage Care The PEHP Advantage Care network of contracted providers consists of predominantly Intermountain Healthcare (IHC) providers and facilities. It includes 34 participating hospitals and more than 7,500 participating providers. PARTICIPATING HOSPITALS Beaver County Beaver Valley Hospital Milford Valley Memorial Hospital Box Elder County Bear River Valley Hospital Cache County Logan Regional Hospital Carbon County Castleview Hospital Davis County Davis Hospital Duchesne County Uintah Basin Medical Center Garfield County Garfield Memorial Hospital Grand County Moab Regional Hospital Iron County Valley View Medical Center Juab County Central Valley Medical Center Kane County Kane County Hospital Millard County Delta Community Medical Center Fillmore Community Hospital Salt Lake County Alta View Hospital Intermountain Medical Center Salt Lake County (cont.) The Orthopedic Specialty Hospital (TOSH) LDS Hospital PrimaryChildren's Medical Center Riverton Hospital San Juan County Blue Mountain Hospital San Juan Hospital Sanpete County Gunnison Valley Hospital San pete Valley Hospital Sevier County Sevier Valley Medical Center Summit County Park City Medical Center Tooele County Mountain West Medical Center Uintah County Ashley Valley Medical Center Utah County American Fork Hospital Orem Community Hospital Utah Valley Regional Medical Center Wasatch County Heber Valley Medical Center Washington County Dixie Regional Medical Center Weber County McKay -Dee Hospital PEHP Summit Care The PEHP Summit Care network of contracted Providers consists of predominantly IASIS, MountainStar, and University of Utah hospitals & clinics providers and facilities. It includes 39 participating hospitals and more than 7,500 participating providers. PARTICIPATING HOSPITALS Beaver County Beaver Valley Hospital Milford Valley Memorial Hospital Box Elder County Bear River Valley Hospital Brigham City Community Hospital Cache County Logan Regional Hospital Carbon County Castleview Hospital Davis County Lakeview Hospital Davis Hospital Duchesne County Uintah Basin Medical Center Garfield County Garfield Memorial Hospital Grand County Moab Regional Hospital Iron County Valley View Medical Center Juab County Central Valley Medical Center Kane County Kane County Hospital Millard County Delta Community Medical Center Fillmore Community Hospital Salt Lake County Huntsman Cancer Hospital Jordan Valley Hospital Salt Lake County (cont.) Lone Peak Hospital Pioneer Valley Hospital PrimaryChildren's Medical Center Riverton Children's Unit St. Marks Hospital Salt Lake Regional Medical Center University of Utah Hospital University Orthopaedic Center San Juan County Blue Mountain Hospital San Juan Hospital Sanpete County Gunnison Valley Hospital San pete Valley Hospital Sevier County Sevier Valley Medical Center Summit County Park City Medical Center Tooele County Mountain West Medical Center Uintah County Ashley Valley Medical Center Utah County Mountain View Hospital Timpanogos Regional Hospital Wasatch County Heber Valley Medical Center Washington County Dixie Regional Medical Center Weber County Ogden Regional Medical Center Find Participating Providers Go to www.pehp.org to look up participating providers for each plan. PeHP Page 58 of 67 Moab City 2015 ») Medical Benefits Grid DD STAR PCHP STAR MEDICAL BENEFITS GRID: WHATYOU PAY Refer to the Master Policy for specific criteria for the benefits listed below, as well as information on limitations and exclusions. YOU PAY In -Network Provider Out -of -Network Provider* DEDUCTIBLES, PLAN MAXIMUMS, AND LIMITS $5,000 per family Plan year Deductible $2,500 per single, Plan year Out -of -Pocket Maximum $5,000 per single, $10,000 per family INPATIENT FACILITY SERVICES Medical and Surgical I Requirespre-notification20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Skilled Nursing Facility I Non -custodial Up to 60 days per plan year. Requires pre -authorization and Medical Case Management 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Hospice I Up to6months ina3-year period. Requires pre -authorization and Medical Case Management 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Rehabilitation I Requirespre-authorizationand Medical Case Management 20% of In -Network Rate after deductible 400/0 of In -Network Rate after deductible Mental Health and Substance Abuse Requires pre -authorization 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible OUTPATIENT FACILITY SERVICES 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Outpatient Facility and Ambulatory Surgery Ambulance (ground or air) Medical emergencies only, as determined by PEHP 20% of In -Network Rate after deductible 20% of In -Network Rate after deductible Emergency Room Medical emergencies only, as determined byPEHP. If admitted, inpatient facility benefit will apply 20% of In -Network Rate after deductible 20% of In -Network Rate after deductible plus any balance billing above In -Network Rate Urgent Care Facility ..i. 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Diagnostic Tests, X-rays, Minor For each test allowing $350 or less, when the only services performed are diagnostic testing 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Diagnostic Tests, X-rays, Major For each test allowing more than $350, when the only services performed are diagnostic testing 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Chemotherapy, Radiation, and Dialysis Dialysis with Out -of -Network Providers requires pre -authorization 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Physical and Occupational Therapy Requires pre -authorization after 12 combined visits per plan year 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible *You pay 20% of In -Network Rate after Out -of -Pocket Maximum is met for Out -of -Network Providers. They may charge more than the In -Network Rate unless they have an agreement with you not to. Any amount above the In -Network Rate will be billed to you and will not count toward your deductible or out-of-pocket maximum. WyVayleP .9iG Moab City 2015 ») Medical Benefits Grid DD STAR In -Network Provider Out -of -Network Provider* PROFESSIONAL SERVICES Inpatient Physician Office Visits 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Surgery and Anesthesia 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Primary Care Office Visits and Office Surgeries 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Specialist Office Visits and Office Surgeries 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Emergency Room Specialist Visits 20% of In -Network Rate after deductible 20% of In -Network Rate after deductible Diagnostic Tests, X-rays, Minor For each test allowing $350 or less 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Diagnostic Tests, X-rays, Major For each test allowing more than $350 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Mental Health and Substance Abuse Includes psychiatric testing. No pre -authorization required for outpatient service. Inpatient services require pre -authorization PRESCRIPTION DRUGS 1 SEE PHARMACY 50% of In -Network Rate after deductible OPTIONS FOR 2015 40% of In -Network Rate after deductible All pharmacy benefits for The STAR Plan are subject to the deductible Specialty Medications, retail pharmacy * Up to 30-day supply Tier A: 20%. No maximum co -pay Tier B:30%. No maximum co -pay Plan pays up to the discounted cost, minus the preferred co -pay. Member pays any balance Specialty Medications, office/outpatient Up to 30-day supply Tier A: 20% of In -Network Rate. No maximum co -pay Tier B: 30% of In -Network Rate. No maximum co -pay Tier A: 40% of In -Network Rate after deductible. No maximum co -pay Tier B: 50% of In -Network Rate after deductible. No maximum co -pay Specialty Medications, through specialty vendor Accredo Up to 30-daysupply MISCELLANEOUS SERVICES Tier A: 20%. $150 maximum co -pay Tier B: 30%. $225 maximum co -pay Not covered Adoption I See limitations 20% after deductible, plan pays up to $4000 per adoption 20% after deductible, plan pays up to $4000 per adoption Affordable Care Act Preventive Services See Summary for complete list No charge 40% of In -Network Rate after deductible Allergy Serum 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Chiropractic Care I Up to 20 visits per plan year 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Dental Accident 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Durable Medical Equipment, DME Except for oxygen and Sleep Disorder Equipment, DME over $750, rentals that exceed 60 days, or as indicated in Appendix A of the Summary require pre -authorization. Maximum limits apply on many items. See the Summary for benefit limits 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Medical Supplies 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Home Health/Skilled Nursing Up to 60 visits per plan year. Requires pre -authorization and Medical Case Management 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Infertility Services Select services only. See Summary for details 50% of In -Network Rate after deductible 50% of In -Network Rate after deductible Injections Requires pre -authorization if over $750 20% of In -Network Rate after deductible 40% of In -Network Rate after deductible Temporomandibular Joint Dysfunction Up to $1,000 Lifetime Maximum 50% of In -Network Rate after deductible 50% of In -Network Rate after deductible WltyyeP6F.clifitpfiG 2015 LORP Pharmacy Options PeHP CONSULT YOUR PHARMACY BENEFIT CARD TO FIND OUT WHICH PLAN APPLIES TO YOU. Refills at retail and/or mail-order are not payable until 75% of the total day supply within the last 180 days is used. Refer to the Master Policy or PEHP Formulary for a list of medicines provided at no cost under the Affordable Care Act. BENEFIT A Retail Pharmacy (30-day supply) Mail order Pharmacy (90-day supply) Generic Drugs $10 Copayment $20 Copayment Brand Formularies 25% of discounted cost, $25 minimum / $75 maximum 25% of discounted cost, $50 minimum / $150 maximum Non -Formulary Brands 50% of discounted cost, $50 minimum / $100 maximum 50% of discounted cost, $100 minimum / $200 maximum BENEFIT B Retail Pharmacy (30-day supply) Mail order Pharmacy (90-day supply) Generic Drugs $10 Copayment $20 Copayment Brand Formularies $25 Copayment $50 Copayment Non -Formulary Brands $50 Copayment $100 Copayment BENEF IT C Retail Pharmacy (30-day supply) Mail order Pharmacy (90-day supply) Generic Drugs $15 Copayment $30 Copayment Brand Formularies $30 Copayment $60 Copayment Non -Formulary Brands $65 Copayment $130 Copayment BENEFIT D 111 etail Pharmacy (30-day supply) Mail order Pharmacy (90-day supply) Generic Drugs $10 Copayment $20 Copayment Brand Formularies 25%of discounted cost, $25 minimum / NO maximum 25% of discounted cost, $50 minimum / NO maximum Non -Formulary Brands 50% of discounted cost, $50 minimum / NO maximum 50% of discounted cost, $100 minimum / NO maximum BENEFIT E Meta Pharmacy (30-day supply) _Mail order Pharmacy (90-day supply) Generic Drugs $10 Copayment $20 Copayment Brand Formularies 35% of discounted cost, $25 minimum / $75 mamimum 35% of discounted cost, $50 minimum / $150 maximum Non -Formulary Brands 50% of discounted cost, $50 minimum / $100 maximum 50% of discounted cost, $100 minimum / $200 maximum BENEFIT ill Retail Pharmacy(30-daysupply) Mail order Pharmacy(90-day supply) Generic Drugs $10 Copayment $20 Copayment Brand Formularies 35% of discounted cost, $25 minimum / NO maximum 35% of discounted cost, $50 minimum / NO maximum Non -Formulary Brands 50% of discounted cost, $50 minimum / NO maximum 50% of discounted cost, $100 minimum / NO maximum Pharmacy charges will apply to the deductible and out-of-pocket maximum for members enrolled in The STAR Plan. Page 61 of 67 PEHP Dental Care Refer to the PEHP Dental Master Policy for complete benefit limitations and exclusions and specific plan guidelines. Out of network benefits are paid at 20% less than the allowed amount. Preferred Choice Traditional Choice Premium Choice DEDUCTIBLES, PLAN MAXIMUMS, AND LIMITS Deductible Does not apply to Diagnostic & Preventive Services $0 $25 per individual $75 per family $0 Annual Benefit Maximum $1,500 $1,500 $2,000 DIAGNOSTIC Periodic Oral Examinations No charge No charge No charge X-rays 20% of AA No charge No charge PREVENTIVE Cleanings and Fluoride Solutions 20% of AA No charge No charge Sealants I Permanent molars only through age 17 20% of AA No charge No charge RESTORATIVE Amalgam Restoration 20% of AA 20% of AA 20% of AA Composite Restoration 20% of AA 20% of AA 20% of AA ENDODONTICS Pulpotomy 20% of AA 20% of AA 20% of AA Root Canal 20% of AA 20% of AA 20% of AA PERIODONTICS 20% of AA 20% of AA 20% of AA ORAL SURGERY Extractions 20% of AA 20% of AA 20% of AA ANESTHESIA General Anesthesia in conjunction with oral surgery or impacted teeth only 20% of AA 20% of AA 20% of AA PROSTHODONTIC BENEFITS 1 Pre -authorization may be required Crowns 50% of AA 50% of AA 50% of AA Bridges 50% of AA 50% of AA 50% of AA Dentures (partial) 50% of AA 50% of AA 50% of AA Dentures (full) 50% of AA 50% of AA 50% of AA IMPLANTS All related services 50% of AA 50% of AA 50% of AA ORTHODONTIC BENEFITS Maximum Lifetime Benefit per member $1,500 $1,500 $1,500 Eligible Appliances and Procedures 50% of eligible fees to plan maximum 50% of eligible fees to plan maximum 50% of eligible fees to plan maximum AA = Allowed Amount Page 62 of 67 LGRP Renewal Packet - July 2013 !ARP Selection S Participation Guidelines Please review carefully Medical lick here to see dditional information » If an agency offers both the Advantage Care and Summit Care networks, it must se�he same plan option for each network. Only one Preferred Care plan can be offered alongside Advantage and Summit Care plans. Example: If you offer Advantage Care Traditional Option 1, you must offer Summit Care Traditional Option 1. » An agency can offer no more than five total plan and network combinations. » The employer is required to contribute either 100% of the single premium or a minimum of 50% of the single, two-party and family premiums. Medical plans require 80% participation of eligible employees. Traditional Only or STAR Only Agencies with 9 subscribers or less » May offer only one medical plan and one network. Agencies with 10-50 subscribers » May offer two medical plans and two networks. Agencies with 51-99 subscribers » May offer up to three medical plans and two networks. Agencies with more than 99 subscribers » May offer up to three medical plans and two networks. Dental STAR and Traditional as Dual Option Agencies with 9 subscribers or less » Dual option is not available. Agencies with 10-50 subscribers » May offer one Traditional and one STAR and two networks in the following combinations: > Traditional Option 1 with STAR Option 1. > Traditional Option 2, 3 or 4 with any STAR Option. Agencies with 51-99 subscribers » May offer two Traditional and one STAR and three networks. > Traditional Option 1 with STAR Option 1. > Traditional Option 2, 3 or 4 with any STAR Option. Agencies with more than 99 subscribers » May offer two Traditional and one STAR and three networks. > Traditional Option 1 with STAR Option 1. > Traditional Option 2, 3 or 4 with any STAR Option. » An agency may choose 2 of the 3 available dental plan designs. » The Preferred Choice plan includes a 5-year waiting period on missing tooth and a 6-month waiting period for new enrollees in need of major dental work. An agency may choose to eliminate both waiting periods at an additional cost to the plan. The two new dental plans, Traditional Choice and Premium Choice, are offered without both waiting periods. » Dental plans require 75% participation of eligible employees. Vision » An agency may choose to offer one or both of the vision plans. » The vision plans are completely voluntary. wMileP .PPG P HP Eligibility Requirements In order for coverage to be provided by PEHP, the following eligibility requirements must be met: • Groups of 4 employees or less must have at least 100%* of the eligible employees enrolled. • Groups with 5 employees or more must have at least 80%* of the eligible employees enrolled. 1. If the number of eligible employees is less than required the group may be considered ineligible. 2. If a group is deemed eligible and enrolls on a plan and enrollment drops below the required level, the group is considered ineligible. • Employees must work an average of 20 hours or more per week to qualify for medical and/or dental benefits. This follows Utah Retirement Systems (URS) participation guidelines. • Elected and appointed officials, including board members, must meet one of the following criteria to be eligible for medical and/or dental benefits: 1. Elected and appointed officials, including board members, elected after July 1, 2006 must meet URS participation guidelines. They earn the minimum salary during the first full month of the term of the office. ($825.00 effective February 1, 2006). The employer would report earnings for subsequent months; or 2. In accordance with LGRP employer contribution guidelines, the agency must meet the minimum employer contribution guidelines. * Percentages are based on the number of benefit eligible employees who are not waiving benefits due to other coverage. Compliance with the LGRP guidelines will be subject to audit and review Employer Contribution Guidelines Agencies will be required to meet one of the following criteria in regards to employer minimum contribution guidelines: 1. Employer contributes a minimum of 100% of the single premium. 2. Employer contributes a minimum of 50% of the single, double and family premiums. Early Retiree Benefits • Early retiree benefits are offered to employees under the age of 65 years. At age 65 the former employee is no longer eligible for the early retiree benefits. The former employee is eligible for PEHP's Medicare Supplement Plan. Former employee's eligible dependents under the age 65 may remain on the plan(s) for the remainder of the time period as stated by the agency's early retiree policy. • Retiree rates are based on the active employee rates. Retirees are billed 102% of the active employee rate for the first 18 months of retirement. After 18 months, retirees are billed 120% of the active employee rate for dental coverage and 130% of the active employee rate for medical coverage. • Retirees are eligible to remain on the group medical and dental plan until age 65 or until notified by group. Page 64 of 67 POHP LOCAL GOVERNMENTS RISK POOL Compliance Agreement SECTION A: Agency Information PEHP 560 East 200 South Salt Lake City, UT 84102-2004 801.366.7505 Voice 801.245.7505 Fax AGENCY NAME DATE COMPLETED / / STREET ADDRESS PO BOX CITY STATE ZIP CODE r PHONE NUMBER , COMPLETED BY TITLE ` FAX NUMBER 1 SECTION B: Eligibility Requirements B1 Employees must work an average of 20 hours or more per week to qualify for medical/dental benefits. (This follows URS participation guidelines.) ❑ Yes ❑ No B2 Elected officials, Board Members and Council Members elected after 7/1/06 must meet one of the following requirements to be eligible for medical and/or dental benefits. 1) Must meet URS participation guidelines. They earn the minimum salary during the first full month of the term of the office. The employer would report earnings for subsequent months. 2) Employer minimum contribution guidelines in Section B3. ❑ Yes ❑ No B3 Employer minimum contribution guidelines. Employer pays 100% of the single premium or The employer pays a minimum of 50% of the single two-party, and family premium(s) ❑ Yes ❑ No SECTION C: Early Retiree Rules C1 Early Retiree Benefits are offered to employees under the age of 65 years. At age 65 the former employee is no longer eligible for the Early Retiree Benefits. The former employee is eligible for PEHP's Medicare Supplement Plan. Former employee's eligible dependents under the age of 65 may remain on the plan(s) for the remainder of the time period as stated by the GROUP's early retiree policy. C2 PEHP sets the Early Retiree rate which currently is set at 130% of the active employee premium. This is reviewed on an annual basis and based on utilization and costs of the Early Retiree population and is subject to change. By signing below I/We acknowledge I have read the requirements and rules pertaining to becoming a member of the LGRP. Furthermore, after having read and understood the requirements, I/We agree to the rules and requirements of the Local Governments Risk Pool and are requesting a Request For Benefits (RFP) from PEHP. (Print name) Agency Title Signature Date LGRP Compliance Agreement 1 Page 65 of 67 © Copyright 2010 PEHP- All rights reserved LGRP Vesting Frequently Asked Questions New LGRP groups may be subject to a vesting period. Here's why. What is the LGRP? The Local Government Risk Pool (LGRP) consists of the majority of municipalities, counties, and special service districts throughout Utah. These groups have their money held in trust by PEHP to share risk and offset cost. Does my group have to sign a three-year contract to join the LGRP? No. Any group that joins the LGRP is only required to sign a year-to-year contract. To receive full membership in the LGRP, there is a three-year vesting period. This vesting period requires a group to pay back any deficit it incurs if the group leaves before the vesting period ends. Why must groups wait to become vested? PEHP is a fiduciary for the funds we hold in trust on behalf of LGRP groups. In order to protect the reserves the LGRP has built, PEHP requires new groups to vest for three years. This protects the participating groups in the LGRP, preventing any one group from depleting the reserves and then leaving the other groups responsible for the deficit. Since 2001, only two groups have left the LGRP during their vesting period. In both cases, neither group had a deficit, so there was nothing to repay. Is there a way to be vested immediately upon joining the LGRP? Yes. If a new group provides a minimum of two years of credible claims experience, PEHP may waive the vesting period and the deficit repayment requirement. Typically, this only applies to groups with more than 100 employees. It is rare for a carrier to release claims experience to groups with fewer than 100. SEE OTHER SIDE FOR MORE FAQs pall, Serving the Employees Who Serve Utah 07„ 7„ 2 Page 66 of 67 How do I know that PEHP will not give me an unfairly high renewal rate during the three-year vesting period? As a nonprofit, government trust, PEHP does not offer artificially low rates to get business and then make up the difference through artificially high renewals. Instead, rates and subsequent renewals are based entirely on trends, expected claims costs, and the lowest administrative costs in the market. Indeed, as the accompanying graph shows, since 2008, nearly 90% of groups who renewed during their vesting period received a renewal at or below the average renewal of groups already vested in the LGRP. How often has a group had to repay a deficit when they left the LGRP? Never. Only two groups have ever left the pool during their vesting period. In both cases, neither group had a deficit, so there was nothing to repay. Once vested, a group can leave the pool with no requirement to repay a deficit. Finally, a group is never restricted from leaving the LGRP. It just has to pay back any deficit it created in the pool during the vesting period. Groups Joining the LGRP Since January 2008 coal Total Renewals 53 On average, groups in their vesting period received a renewal of 0.5% lower than the pool average. What advantage is there to joining the LGRP? Choosing to self -fund through the LGRP and PEHP has one distinct advantage, it's always your money. The money we hold belongs to our clients because we operate as a trust. We set pricing based on trends and expected costs. If actual costs are lower, the entire pool benefits. In 2012, PEHP refunded more than $10 million to participating employers in the way of a "premium holiday." LEARN MORE ABOUT PEHP » VISIT WWW.PEHP.ORG Page 67 of 67