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HomeMy WebLinkAbout8. Old Business4 ROSEMOUNT MINNESOTA M E M O R A N D U M Date: May 17, 2005 From: Jamie Verbrugge, City Administra To: Mayor Droste and Council Members Subject: Additional Information for Council Agenda of May 17, 2005 Old Business Item 8.a. Receive Bids /Award Contract for 2005 Pavement Management Improvements, City Project 392 The bids for the 2005 Pavement Management Improvements, City Project 392 were opened on Friday, May 13, 2005. Eight alternates were presented for consideration. Two companies responded to the bids. See City Engineer's memo regarding alternate choice. McNamara Contracting, Inc. was the low bidder. The bids were under the estimated cost and staff recommends that all alternates be completed at the cost of $1,841,201.44. Old Business Item 8.b. City Acquisition of 3205 143` Street The final draft of the Contract for Deed and Lease Agreement for the above property is attached. ADOPTED this 17 day of May, 2005. Af IEST: Linda Jentmk, City Clerk CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2005 A RESOLUTION RECEIVING BIDS AND AWARDING CONTRACT FOR THE 2005 PAVEMENT MANAGEMENT PROJECT CITY PROJECT #392 Will am H Droste, Mayor BE IT RESOLVED, by the City Council of the City of Rosemount, Minnesota, as follows: 1. All bids on construction of the 2005 Pavement Management Project are hereby received and tabulated. 2. The bid of McNamara Contracting, Inc., m the amount of $1,416,308.80 for the construction of said improvements are in accordance with the plans and specifications and advertisement for bids is the lowest responsible bid and shall be and hereby is accepted. 3. The Mayor and Clerk are hereby authorized and directed to enter into a contract with said bidder for the construction of said improvements for and on behalf of the City of Rosemount 4. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposit of all successful bidder and the next two lowest bidders shall be retained until a contract has been executed Motion by: Seconded bv' Voted m favor: Voted against: Estimated Project Costs Based on Low Bid 146th Street Reconstruction 398,686.73 Rehabilitation Area 915,964.53 Dodd Court Reconstruction 106,581.02 130th Street Overlay 91,245.05 Alternate 2 Sewer Rehabilitation 74,261.59 Alternate 3 Darling Path Reconstruct 108,581.07 Alternate 4 Connemara Trail Overlay 145,881.45 Total 1,841,201.44 MEMORANDUM 4 ROSEMOUNri PUBLIC WORKS DATE: May 17, 2005 TO: Honorable Mayor and City Council CC: Jamie Verbrugge, City Administrator FROM: Andrew J. Brotzler, P.E., City Engineer Anthony Aderhold, P.E., Project Engineer RE: 2005 Pavement Management Project, City Project #392 Award of Contract Bids were received and opened on Friday, May 13, 2005 for the 2005 Pavement Management Project, City Project #392. The bid package included eight different bid options as a result of four alternates. Alternates 1 and 2 consisted of two different methods for repairing the sanitary sewer within the original project area. Alternate 3 includes reconstructing approximately 1000 feet of Darling Path and Alternate 4 includes milling and overlaying Connemara Trail between Diamond Path and Shannon Parkway. Alternates 3 and 4 were added prior to bidding the project and were reviewed by Council at the April 19, 2005 meeting After reviewing the low bid and estimating the total project cost, which includes engineering, finance, administration and legal fees there is available funding to include the addition of Alternates 3 and 4. A breakdown of the estimated project costs is as follows: Proposed Funding Street C1P 1,007,524.99 Dodd Court CIP Encumbrance 48,000.00 Sanitary Sewer Utility Fund 139,561.44 Water Utility Fund 91,848.71 Storm Sewer Utility Fund 80,797,41 Sidewalk Fund 42,145.55 Special Assessments 431,323,35 Total 1,841,201,44 A table that displays the breakdown for proposed funding is as follows: Staff recommends that Council award the contract to McNamara Contracting, Inc. based on the bid option that includes Total Base Bid plus Alternate 2, Alternate 3 and Alternate 4. WSB B Assoceates, Inc May 16, 2005 Infrastructure 1 Engineering 1 Planning 1 Construction Honorable Mayor and City Council City of Rosemount 2875 145` Street West Rosemount, MN 55068 Re: 2005 Pavement Management Project City of Rosemount Project No. 392 WSB Project No. 1556 -29 Dear Mayor and Council Members: Bids were received for the above referenced project on Friday, May 13, 2005, and were opened and read aloud. A total of two bids were received. The bids were checked for mathematical accuracy and tabulated. Please find enclosed the bid tabulation indicating the low bidder, for the Total Base Bid and all alternates, as McNamara Contracting, Inc., Rosemount, Minnesota. We recommend that the City Council consider these bids and award a contract to McNamara Contracting, Inc. based on the results of the bids received. Sincerely, WSB Associates, Inc. Enclosure srb Anthony derhold, P.E. Project Manager cc: Kevin McNamara, McNamara Contracting, Inc. Andy Brotzler, City of Rosemount Cindy Domiden, City of Rosemount caswv .i#Ca ,.w „w.uweccna.a4veosrx Minneapolis 1 St Cloud Equal Opportunity Employer 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel 763- 541 -4800 fax 763- 541 -1700 0 °i n z2 0 W o 0 0 66 2 Q Q a c u E r EQ w ma 2 O c 1 m n f o m c m E1 i o n Z o V w 0 0 O N n v M O CO CO b M1 o co 00 0 N CD w 0 0 a m OD X X X X 1 m 'o E 0 N b m a m OD CO cri a 0 m 0 n 2 N m a a Q This is a Lease. It is a legal agreement between the Tenant and the Landlord to rent the Property described below. The word Landlord as used in this Lease means the City of Rosemount, a municipal corporation under the laws of the State of Minnesota, and the Landlord's address is 2875 145 Street West, Rosemount, MN 55068. The word Tenant as used in this Lease means Claire M. Olsen d/b /a T C Daycare and Tenant's address is 3310 143` Street, Rosemount, MN 55068. This Lease is a legal contract that can be enforced in court against the Landlord or the Tenant if either one of them does not comply with this Lease. 1. Description of Property. The address of the Property is 3205 143 Street West, Rosemount, MN 55068. 2. Term of Lease. This Lease is for an initial term of one year from the day of 2005, at 12:00 o'clock, a.m. and ending June 30, 2006 at 12:00 a.m., unless sooner terminated by written agreement of the parties or operation of law "Initial Term Tenant may terminate this lease upon 30 days notice. The second term is from July 1, 2006 and ending June 30, 2007, unless sooner terminated by written agreement of the parties or operation of law "Second Term 3. Rent. There is no rent due under this Lease for the Initial Term ending June 30, 2006. Rent for the Second Term is $1,000 per month, plus a monthly payment of 1/12 of the real estate taxes due and payable in the year the rent is due. If in place of ad valorem real estate taxes levied against the property, Dakota County assesses a personal tax against Tenant by reason of Tenant's rental of the Property, Tenant will pay such tax. 4. Security Deposit. The Tenant has given the Landlord no security deposit. 5. Quiet Enjoyment. If Tenant complies with all terms of this Lease, Tenant may use the Property for the term of this Lease. 6. Use of Property. The Property must be used only as a daycare facility operated by Tenant, and no other purpose The Tenant may not use the Property for any unlawful activity. In particular, Tenant agrees that (a) Tenant will not unlawfully allow controlled substances in the Property, and (b) the property will not be used by the Tenant or others acting under his or her control to manufacture, sell, give away, barter, deliver, exchange, distribute, or possess a controlled substance in violation of any local, state, or federal law, including Minn. Stat. Chapter 152. 7. Maintenance and Repair. a. By Landlord. Landlord makes no representation that the Property is fit for use as a daycare facility. CBR- 258725v2 RS230 -36 PROPERTY LEASE 8. Alterations. Tenant must obtain Landlord's prior written consent to install any paneling, flooring, or partitions to make alterations or to paint or wallpaper any portion of the Property. Tenant must not change the heating, electrical, plumbing, ventilation or air conditioning systems without the pnor written consent of the Landlord. 9. Damage to the Property. If the Property is damaged or destroyed, Landlord may terminate this Lease immediately and may decide not to rebuild or repair the Property, in which case this lease is terminated and neither party has any further obligation to the other. 10. Insurance. Tenant shall maintain a policy of renter's insurance on personal property at their own expense. Tenant shall also maintain a policy of liability insurance in the amount of not less than Tenant's present policy limits with respect to injury or death to a single person, and said policy of insurance shall name Landlord as an additional insured. Tenant shall indemnify and hold harmless Landlord from any claim or damage to person or property arising out of activities by Tenants or Tenants' invitees on the Property. 11. Utilities. Tenant shall pay for all utilities provided to the Property during the term of this Lease 12. Right of Entry. Landlord and Landlord's agents may enter the Property at reasonable hours to repair or inspect the Property and perform any work that Landlord decides is necessary. 13. Assignment and Subletting. Tenant may not assign this Lease, lease the Property to anyone else (sublet), sell this Lease or permit any other person to use the Property without the prior written consent of the Landlord. If Tenant does so, Landlord may terminate this Lease. Any assignment or sublease made without Landlord's written consent will not be effective. Tenant must get Landlord's permission each time Tenant wants to assign or sublet. Landlord's permission is legally effective only for that specific assignment or sublease. 14. Surrender of Premises. Tenant shall move out of the Property upon termination of this Lease in accordance with Section 2 hereof. 15. Default. If Tenant violates any term of this Lease, Landlord may terminate this Lease. If Tenant does not move out, Landlord may bring an eviction action. If Tenant violates a term of this Lease and Landlord does not terminate this Lease or evict Tenant, Landlord may still terminate this Lease and evict Tenant for any other violation of this Lease If contraband or a controlled substance manufactured, distributed, or acquired m violation of Minnesota law is seized in the Property or on the property on which the Property is CBR- 258725v2 RS230 -36 b. By Tenant. Tenant promises, at Tenant's expense, to make all repairs and eliminate any violation of health and safety laws. Tenant shall comply with all the sanitary laws affecting the cleanliness, occupancy and preservation of the Property, except where the Landlord is required by law to comply with the sanitary laws (see Minnesota Statute, Section 504.18). located incident to a lawful search or arrest, and if Tenant has no defense under Minnesota Statutes 609.5317, Tenant shall have no further right to possession of the Property, and Landlord may bring an eviction action against Tenant. 16. Heirs and Assigns. The terms of this Lease apply to the Tenant and Landlord and any heirs, legal representatives, successors and assigns of Tenant or Landlord. DATED: 2005. LANDLORD: TENANT: City of Rosemount By Its Mayor By Its Clerk CBR- 258725v2 RS230 -36 Claire M. Olsen d /b /a T C Daycare May -17 -05 13:55 From Kennedy Graven count Act FOR UCED Jmlivrdaal Seller No delinquent use. and transfer entered, Certificate of Real twee Value tiled not requited Certificate of Real Estate Value No. County Auditor (Dal by Deputy Dine• THIS CONTRACT FOR DEED (the Contract") is Made en the ;drove date by Jeffrey A. Olarn and (i.nra M Olsen husband and wife Selkr (whether one or more), ;and +0123379310 City of Rosemount a municipal corporation undo the laws of the Stare of.Mmnesora Purchaser (whether one or more) (check box if joint tenancy). Seller and Purchaser agree to the following terms: 1 PROPERTY DESCRIPTION Seiler hemby sells. and Purchaser hereby huge, Mil property in Dakota County Minnesota, described as follows 1 in 200, Block 27, Auditors Subdivision Nn. 1 T -440 P 002/009 F -957 Fenn No. M Minnecrra ilnifohtl Conveyancing Bionics (2n)0j (fcserved for recording data) ingather with an hereditaments and appurtenances belonging theteto (the "Property I. Unless otherwise specified Seller hereby delivery posaesaion of the Property to Purchaser an the dale hereof. Seller check applicable bore n The Seller certifies that the Seller does not know of any wells on the described ital property. A well disclosure certificate uccompanics this document. l� 1 am familiar with the property dreerbed in this instrument and 1 certify ghat the status and number of wells on the described real properly have not changed since the last previously filed well disclosure certificate. 2. TITLE Seller warrants that ntc to the Property as, on the date of tins Contract, subject only to the following exception. (0) Covenants, eondmons, restrictions (without eaatedvc Conoiture provisions) and declaration, of record, if any: (bi Reset vauon of minerals or mineral tights by the State of Minnesota, if any (c) Unhry otld (runage cdsemcnts which do not ulrerfere with present improvements: (d) Applt able laws, ordmanecs and regulations, t4,, lc) The lien of real estate taxes .md- iestanment+.t .p.<:v) +.rti.nments; ;Se payable by Purchaser pursuant to paragraph 6 of this Contract, and rip the following hens or encumbrances, F.aseme,U of record that do not interfere with ptrChaser's enjoyment of he Properly. 3 DELIVERY OF DEED AND EVIDENCE OF TITLE. Upon Purchaser's full performance of thta Conoact Seller shalt (n) Execute, acknowledge and deliver to Purchaser a Wattrmty feed, ur recordable form, conveying marketable rile to the Property to Pureheter, subject only to the following exceptions (t) Thoae exeeptinns referred to in paragraph 2(4, (b). (c), (d), and (t) of Mk Contract, (n) Liens. encumbrance?, adverse claims o' other natter. which Purcha4shas created, .uttered or permmrtedd to aceruli after the due of this Contract. and (id) The following hens or encumbrances. Easements of record that do not interfere watt Purchasers mjoymem of the Properly_ (b) Deliver 10 Put-chaos the ab4trna of silk to the Property. without further extension. 10 the extent required by the purchase agreement fit any) between Seiler and Purchaser May -17 -05 13:55 From Kennedy Graven +61233T9310 T-440 P.003/009 F -957 4. PURCHASE PRICE. Purekucr shall pay to Sella at the sum of ate Hundred Seventy Thousand Dollars 1 tu,WU ttu as and for the purchase price (the "Purchase Price for the Property, payabk as follows: $100.000.00 cash at closing, the receipt et which is hereby admowledged. S70,000 -00 together with interest at the rate of six percent (6%) per anum, compmmded annually on Jime 30, 2006, 5. PREPAYMENT Unless othcrwhse provided m this Couaaet Pmchuser shall have the right to fully or partially prepay this Contract at any Mlle without penalty. Any partial prepayment shall bc applied first to payment of anoints nts then due under this Contract, including unpaid accrual interest and the balance shall be applied to the principal imnillmeab to be paid in the inverse order of their maturity Partial prepayment shall nor postpone the due date of the matallments to bc paid pursuant to this Contract or change the amount of such installments, 6. REAL ESTATE TAXES AND ASSESSMENTS. Real caste nixes encheistrenreerwiriments which are due and payable in the year in which this Contact is dated shall to paid as follows: Prorated as ofrhr date herm4 except as provided in the Property Lease dated .7005; Special ucseasmms levied prior to the date of the Purchase Agreement between Seller and Puchaaer will be paid by Seller and Seller warrants that they have been paid in fill Special asssssmeles levied on or after said date will be paid by Purchaser. Purchaser shall pay, before penalty accrues, all real estate taxes and installments of special assessments assessed against the Property which arc due and payabk in all subsequent years. Seller w.unmrs Mal the teal estate tuxes and msialhnents of special assessments which were duc and payable in thc years preceding thc year in which this Contract is dated are paid in full- If thc Property is subject to a recorded declamuon providing for assessments to be levied against the Property by any owners' assecia- don. Purchaser shall promptly pay, when duc, all assessments imposed by the owners association or other governing body as required by the provisions of the declaration or other related documents. 7, PROPERTY INSURANCE INSURED RISKS AND AMOUNTS. Purchaser shall kocp till buildings, Improvements and fixtures now or later located on or a part of the Property insured against loss by fire, lightning and such otter perils as are included in a biandanl "all risk" endorsement, and against lose or damage by all otter risks and hazards coveted by a standard =gender/ coverage insurance policy, including, without limitation, vandalism, malicious mischief, burglary, theft and, if applicable, steam boil- er explosion- Such insurance shall Lc in en amount tic dew t the full replactment cost of he buildings, improvements and fixtures, without deduction for physical depreciation if any of the building,. improvements or fixtures are located in a federally designated fiats prone area- and if flood insurance is araileble for that arcs, Pmehaser shall procure and main- tain flood insurance in amounts reasonably satisfactory to Seger. OITER TERMS- The insurance policy shall contain a loss payable clause in favor of Seller which provides that Seller's right to recover under the insurance shall not be impaired by any acts or omissions of Purchaser or Seller, and that Seller shall otherwise be afforded all rights and privileges customarily provided a mortgagee under the so -called standard mort- gage clause (c) NOPICh OF DAMAGE. Io the event of damage to the Property by fire or other casualty, Purchaser shall promptly give notice of such damage to Seller and the insurance caraway. (s) (b) g. DAMAGE TO THE PROPERTY. (a) (b) APPLICATION OF INSURANCE PROCEEDS, If the Property is damaged by fire or other casualty, the insurance pro- ceeds pmd on account of such damage shall be applied to payment of the amounts payable b} Purchaser under this Contract, w en if such amounts arc not then due to bc paid, unless Purchaser makes a permitted electron described in the next para- graph, Such amounts shall be first applied to unpaid accrued interest and next m the installments to be pmd as provided in this Contract in the inverse order of their manic iy Such payment shall not postpone tho duc dam of die installments to be paid pursuant to this Contract or change the amount of such installments. The balance of insurance proceeds, if any, shall be the property of Purchaser. PURCHASER'S ELECTION TO REBUILD. If Purchaser is not in default under this Contract, or after cuing any such default- and if the mortgagees in any prior mortgages and sellers in any prior contracts for deed do not require otherwise, Pumhascr may elect to have that pardon of such insurance proceeds near ry to repair replace er restore the damaged Ftopaty (the "Repairs &posited to escrow watt a bank or tole insurance company qualified to do business m the State of Minnesota, or such other party as may be mutually agreeable to Seller and Purch.cscr, The election may only be made by written notice to Seller within sixty days after the damage occurs Also the election will only be permitted if the plans and spedbcauons and contracts for the Repairs arc approved by Seller, which approval Seller shall not unreasonably with- hold or delay. If such a permitted election h made by Purchaser, Seller and Purchaser shall jointly deposit, when paid, such insurance proceeds into such escrow. It such insurance proceeds an insufficient tor the Repairs, Purchaser shall befom the commencement of the Repairs, deposit into such escrow sufficient additional money to insure the full payment for the Repairs. Even if the insurance proceeds are unavailable or ate insufficient to pay the cost of (he Repairs, Purchaser shall ar all times be responsible to pay the full cost of the Repairs. All escrowed funds shall be disbursed by the escrowee in accor- dance with generally accepted sound construction disbursement procedures. The coats incurred or to be incurred on account of such escrow shall be deposited by Purchaser into such cscrvw before the commencement of the Repairs, Purchaser sboli complete the Repairs as soon as reasonably possible and as a good and workmanlike manner. and and in any event the Contract for Deed Form 54-M page 2. May -17 -05 13:55 From Kennedy Graven 4. PURCHASE PRICE. Parehaser shall pay to Shcex at the sum of 0.11 eve as and for the purchase price (the "Purchase Poet") for the Property, payable as follows: 5100,000.00 cash at closing, the receipt of which is hereby acknowledged 7. PROPERTY INSURANCE. (a) (a) (b) +6123379310 a 570,000.00 together With interest at the rate of six percent (6 per enure, compounded annually on June 30, 2006. e, DAMAGE TOME PROPERTY. Connect for Deed Farm 54-M page 2. 1 rtr,WU.W T -440 P 004/009 F -957 5, PREPAYMENT. Unless otherwise provided in this Contract, Purchaser shall have the ngbt to fully or partially prepay this Contract at any time without penalty, Any partial prepayment shall be applied fast w payment of amounts ten due wider this Contract, including unpaid accrued interest, and the balance shall be applied to the principal installments to be paid in the inverse order of ten maturity. Parti,d prepayment shall not postpone the due date of the installments to be paid pursuant to this Contract or change the amount of such ioatallmmts 6. REAL ESTATE TAXES AND ASSESSMENTS. Real aware taxes mtd ...ILa,,.,.., ,d .4..dd- aeemeneets which are due and payable in the year in which this Conant is dated shall be paid as follows: Prorated as of the date hereof Special/Mt .rents Lured pnor to the date of the Purchase Agreement between Seller and Purchaser will be paid by Seller and Seller warrants that they have been paid in full. Special assessments levied on or after said mate will be paid by Purchaser_ Purchaser shall pay, before penalty aeenueq all real estate taxes and installments of special assessments assessed against to A aye+ 'y which are due and payable in all subsequent years. Seller warrants that the real estate taxes and installments of special assessments which were dne and payable in the yeah preceding dic year in which this Contact is dated are paid in full. If the Property is subject to a recorded declaration providing for absessments to be levied against the Aoperty by any owners' associa- tion, Purchaser shall pmmpdy pay. when due, all arse m:neors imposed by the owners' asaocration or other governing body as required by the provisions of thc declaration or other related documents. 'INSURED RISKS AND AMOUNTS. Purchaser shall keep all baitthnga, improvements and fumes now or later located an or it part of the Property insured against Its by fie, lightaing and such other perils as are included in a standard "all- risk" endorsement and against lot's or damage by all other nsks and hazards covered by a staodud extended coverage insurance policy, including, without huumoon, vandalism, malicious mischief, burglary, theft and if applicable, steam boil- er explosion. Such insurance shall be to an amount no less man the full replacement cost of the buildings, improvements and francs, without deduction for physical depreciation. If any of the buildings, improvements or fixtures are located in a federally designated flood prone arc, and if flood insurance is available for that arta, Purchaser shall procure and main- tain flood mbur in amounts reasonably satisfactory m Seller (b) OTHER TERMS. The insurance policy shall Gewait a loss payable dause in favor of Seiler which provides that Seller's nght to recover under tho insurance shill not be impaired by any ace or omissions of Purchaser or Seller, and that Seller shall otherwise be afforded all rights and pnvileges customarily provided a mmtgagee under the so-called stanch 's' molt gage claws. (c) NOTICE OF DAMAGE In the event of danjage to the Property by fire or [alter casualty, Purchaser shall promptly give nonce of such damage to Sella and the insurance company. APPLICATION OP INSURANCE PROCEEDS If the Pmperry is damaged by Ste or other casually, the insurance pro- ceeds paid on account of such damage shall be applied to payment of the amoums payable by Purchaser under this Contract even if such amounts are ha then due to paid, tmless Purchaser makrs a permitted election described in the next para- graph Such amounts shall be fist applied to unpaid accrued interest and next to the installments to be paid as provides] in this Contract in the inverse order of their maturity. Such payment shall nor postpone the due date of the installments to be paid pursuant to this Contract or change thc amount of such installments. The b,dance of insurance proceeds, if any, shall be the properly of Purchases PURCHASER'S ELECT/ON TO REBUILD. if Puttiuscr IS not in default under this Contra or after curing any such default. and if the mortgagees in any prior mortgages and seller in any prior contracts for dad do not require otherwise, Purchaser may elect to have that pardon of such insurance proceeds necessary to repair, replace or restore the damaged P1vp,aq (the "Repairs") deposited in escrow with a bank or tide instance company qualified to do busman in the State of M.nnesnta. of such other parry as may be mutually agreeable to Seller and Purchaser. The election may only be made by written notice to Seller within sixty days after the dsmagc OMITS Alin, the election will only be permitted if the plans and specifications and contract for the Repairs are approved by Seller. which approval Seller shall not unreasonably with- hold or delay. If such a permitted election h male by Purchaser, Seller and Purchaser shall jointly deposit, when paid, such insurance proceeds rem such escrow. If such mamanct proceeds me insufficient for the Repairs, Purchaser shall, before the commmexment of the Repairs, deposit into wet) escrow sufficient additional money to insure the full payment for the Repaha Ever if the instance proceeds are unavailable or are insufficient to pay the east of thc Repair, Punhaser sham at all times be responsible to pay the full cost of the Repairs. All escrowed funds shall be disbursed by the escrowee in accor- dance with generally accepted sound construction disbursement proecdum The costs incurred err to bo incurred on account of such escrow shall h dcposlid by Purchaser into such escrow before the commencement of the Repays. Purchaser shag complete the Repairs as Goon as reasonably possible and in a good and workmanlike manner, and and in any event the Hay -17 -05 13:55 from Kennedy Graven +5123379310 T -440 P 005/009 F -957 (cl 9 INJURY OR DAMAGE OCCURRING ON THE PROPERTY. LIAEILITY. Seller shall be free from liability and claims for damages by reason of miuries occurring on or after the date of this Contract to any person or person. or property while on of about the Proprrty*Purchaser shall defend and indemni- fy Setter from all liability, loss, cost and obhgutionh, including reasonable attorneys' fees, on account of or arising out of any such m)unes flowerer, Purchaser shall have no liability or obligation m Seller for such injuries wind, are caused by The negligence or intentional wrongful acts or oafs: ion. of LIABILITY INSURANCE. Purchaser shall, at Purchaser's own expense, procure and maintain liability insurance against claims for bodily injury, death and property damage occurring on or about the Property in amounts reasonably satisfacto- ry to Seller and naming Seller us An athwart! insured, 1U. INSURANCE GENERALLY- The insurance which Purchaser is remand to procure and maintain pursuant to paragraphs 7 and of this Contract shall he issued by an insurance company or companies hceascd to do business b the State of Mmoevota and acceptable to Seller. The insurance shall be maintained by Purchaser at all umcs while any amount remains unpaid under this Contract The insurance policies shall provide for not lens than len [lays' written nonce m Seller before cancellation, not- ienew- al, temmation or change m coverage, and Purchaser shall deliver to Seller a duplicate original or certificate of such insurance policy or policies, 11. CONDEMNATION If all or any part of the Property 1s taken In condemnation proceedings instituted under power of eminent domain or ss conveyed in lieu thereof under threat of condemnation, the money paid pursuant to such condemnation or con- veyance in lieu thatof shall be applied to payment of the amounts payable by Purchaser under this Contract. even if such amounts am not Then due to be paid Such amounts shall be applied in the same manner as a prepayment as provided in para- graph 5 of this Contract Such payments shall not postpone the due tar of the rnsallmenis m be paid purtuam to this Contract. or change the amount of such installments The balance, if any shalt be t c property of Purchaser Z. WASTE REPAIR AND 1JENS Purchaser shall not remove or demolish any buildings. improvements or Butane now or later located on or a part of the Properly, nor shall Purchaser coming or alto.. waste of the Property. Purchaser shall aw'nnin the Property IT goad condition and repair. Purchaser shall not create or permit to accrue Iienr or advere claims against the Property which commune a lien or claim against Seller's interest in the Property. Purchaser shall pay to Seller all attouns, COSTS and expenses, including sea• onahle :atomeys' fees, incurred by Seller In remose any such lien, or n averse dam+ 13. COMPLIANCE WITH LAWS Except formatter, which Seller has created suffered orperautted to exist prior to the date of the' Contract Purchaser shall comply or cause compliance with all laws and regulations of any govemmenml authonry which affect the Property or the manner of using or operating the same, and with all rein icilye covenants. IF any, aReetmg tide 10 iM PO/petty or the use thereof (a) N) Repats shall be completed by Purchaser within tine year aflor the damage occurs. lf, following the completion of and pap meoc for the Repairs, them remains any undtahurscd escrow funds, such hinds shall be applied to payment of the amounts payable by Purchaser under this Contract tit accordance wmh paragraph R(a) above. OWNERS ASSOCIATION. If the Property is subject to a recorded declaration so long a the on nerd acsoemuon main terns a master or blanker policy of iisurance again$[ &t extended coverage perils and such other harards and in such amount as are jtquued by this Contract then: (t) Purchaser's obligation in the Contract to maintain hazard insurance cov- erage on the Property is saugded: (u) the provisions of paragraph R(a) of this Contract regarding application of insurance proceeds shall be supersedcdby the provisions of the declaration or other mimed documents; and (iii) in the event of a dis- tribution of insurance proceeds in lieu of restoration or repair following an insured casualty low to the Pmpeny, any such proceeds payable to Purchaser are hereby assigned and shall be paid to Seller tor application to the suxn secured by thin Contract, with the excess, i(ony, paid to Purchaser. 14. RECORDING OF CONTRACT, DEED TAX Purchaser shall. at Purchaser's expense. record this Contract in the office of the county recorder or registrar of titles to the county in which the Property ih located within four (4) month, utter the date hereof Purhhaser shall pay any penalty imposed undo Minnesota Statutes Section 5 07235 for failure to timely record the Contract Seller.hall, upon Purchaser's full perfannance of this Cnnuum, pay the decd mx due upon the recording of the deed to be deliv- ered by Seiler. 15, NOTICE OF ASSIGNMENT. If either Seller a Purchaser asagms their interest in the Property, the assigning pany shall prompt. ly furnish a copy of such assignment m the non- asagnntg party. 16. PROTECTION OF INTERESTS. It Purchaser tail, to pay any sum of Looney required under the terms of this Contract or falls In pe fnnn any of the Purchaser's obligations as wt forth m this Contract, Seller may, at Seller's option, pay the same or cause the same to be performed. or both, and the amounts So paid by Seller and the cost of such performance shall be payable at once, with interest at the rate stated in paragraph 4 of this Contact, ai an additional amount due Seller under this Contract If there now exists ur if Sella hereafter err rtes, suffers or permits to amrue, any ion ge, contract for deed lien or encumbrance against the Property which r, non herein expressly assumed by Purchaser. and provided Purchaser as not in default under thus Contact Seller shad timely pay all amounts due thereon, and if Seller fails to do co, Purchaser may, at Purchaser's npunn. pay any such delinquent amounts ortuce any actions re,non.rbly necessary to cum debults thereunder and deduct the amounts so paid togeth- er with interest at the rate provided In this Contract from the payments next coming due under this Contract. 17. DEFAULTS AND RPMEDIPS. The time of performance by Purchaser of the term, of this Contract pi an essential part of this Commp. If Purchac& fails to timely perform any teem of this Contract Seller may, at Seller's opnon, elect to declare this Contract cancelled and temtmated by nonce to Purchaser in accordance with applicable law ar elect any other remedy available at law of m equity If Seiler clams to terminate this Contract all right ode, and aneest acquired under this Contract by Purchaser shall then cease and temmnam, and all improvements made upon the Property and all payments made by Purchaser pursuant to this Contract (Including escrow payments, if any) shall belong to Seller as liquidated damages for breach of this Connect_ Neither the exmtsmn of the time for payment of any ;um of money to be paid hcre.nder nor tiny waiver by Seller of Seller's rights to declare this Contract forfeited by reason of any breach shall in any maa oer affect Sellers nght to cancel this Contract because of defaults subsequently occurring, and no exterhton of tune Shall be valid roles, agreed to in witting. After service of notice of default and failure to cure such default within the period allowed by law, Purchaser shall. upon demand, surmnder possession of the Property to Seller. but Purchaser shall be ended to possexsmn of the Property until the expiration of such pennd. Fiihye by Seller to exercise one or mom remedies available under this paragraph 17 shall not constitute a waiver of the right to exercise such remedy or remedies thereafter. Contract for Deed Form 54-M page 3 r *excep rime is in possession of the property. May -17 -05 13:56 From Kennedy Graven +61233T9310 T -440 P 006/009 F -957 I8. BINDING EFFECT, The terms of this Canaaa shall run wnh uje (and and bind the panic.; hereto and the auccesson in interest 19 HEADINGS. Headings of the parogaphg of dug Contract are for convenience only and do not define. limit nr conttrue the con. tents of such paragraphs. 20, ADDITIONAL TERMS' Check bete CI If an Addendum to Conoact for Deed containing additional terms and conditions is attached hereto SELLER PURCHASED CITY OF ROSEMOUNT Jeffrey A, Olamt Clauto M. Olen STATE OFMINNESOTA COUNTY OF This inItruMem was acknowledged before me on by William 11. Dixon! and lames VefbN ¢P,(j1sysd_dod C] Admintsoator of the of Rosemotmt. a Minnesota municipal corporation on behalf of the municipal corporation. NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK) STATE OF MINNESOTA COUNTY OF NOTARIAL nettle OR SEAL (OR OTHER TITLE OR RANK) THIS INSTRUMENT WAS DRAFTED BY: (NAME AND ABakessi Kennedy Graven. Chartered 470 U S Bank Plaza 200 South Sixth Street Minneapolis, MN 55492 R5230 -3G Mayor City Manager SIGNATURE Ob NOTARY PuELIC OR OTHER OFFICIAL This instrument was acknowledged before me on by Irffiry A O1ata end (leer M ()Isom hnghnnd and wife SICNAt'URE OF NOTARY PueuC OR OTHER OFFICIAL Cheek here if all or pan of the land Is registered (Torrent). Tax Statement, for the real pmpeny described in ibis immi- nent Mould be gent to (mctude name and address) C� ry of Rnsemm.ot (2875 145th Street West RO5entOVm', MN 55068 FAILURE TO RECORD THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIES PRIORITY OVER PURCHASER'S INTEREST IN THE PROPERTY. Contract for Deed Form 54 page 4. May -17 -05 13:56 From Kennedy Graven +6123379310 T -440 P 007 /009 F -957 This is a Lease. It is a legal agreement between the Tenant and the Landlord to rent the Property described below. The word Landlord as used in this Lease means the City of Rosemount, a municipal corporation under the laws of the State of Minnesota, and the Landlord's address is 2875 145' Street West, Rosemount, MN 55068. The word Tenant as used in this Lease means Claire M. Olsen d/b /a T C Daycare and Tenant's address is 3310 143' Street, Rosemount, MN 55068. This Lease is a legal contract that can be enforced in court against the Landlord or the Tenant if either one of them does not comply with this Lease. 1. Description of Property. The address of the Property is 3205 143' Street West, Rosemount, MN 55068. 2. Term of Lease. This Lease is for an initial term of one year from the day of 2005, at 12:00 o'clock, a.m. and ending June 30, 2006 at J2:00 a.m., unless sooner terminated by written agreement of the parties or operation of law "Initial Term Tenant may terminate this lease upon 30 days notice. The second term is from July 1, 2006 and ending June 30, 2007, unless sooner terminated by written agreement of the parties or operation of law "Second Term 3. Rent. There is no rent due under this Lease for the Initial Term ending June 30, 2006. Rent for the Second Term is $1,000 per month plus a monthly payment of' 1/12 of the real estate taxes due and payable in the year the rent is due. If in place of ad valorem real estate taxes levied against the property, Dakota County assesses a personal tax against Tenant by reason of Tenant's rental of the Property, Tenant will pay such tax. 4. Security Deposit. The Tenant has given the Landlord no security deposit. 5. Quiet Enjoyment. If Tenant complies with all terms of this Lease, Tenant may use the Property for the term of this Lease. 6. Use of Property. The Property must be used only as a daycare facility operated by Tenant, and no other purpose. The Tenant may not use the Property for any unlawful activity. In particular, Tenant agrees that (a) Tenant will not unlawfully allow controlled substances in the Property; and (b) the property will not be used by the Tenant or others acting under his or her control to manufacture, sell, give away, barter, deliver, exchange, distribute, or possess a controlled substance in violation of any local, state, or federal law, including Minn. Stat. Chapter 152. 7. Maintenance and Repair. a. By Landlord. Landlord makes no representation that the Property is fit for use as a daycare facility. CBR- 258725v2 85230.36 PROPERTY LEASE May -17 -05 13:56 From Kennedy Graven +6123379310 T -440 P 008/009 F -957 8. Alterations. Tenant must obtain Landlord's prior written consent to install any paneling, flooring, or partitions to make alterations or to paint or wallpaper any portion of the Property. Tenant must not change the heating, electrical, plumbing, ventilation or air conditioning systems without the prior written consent of the Landlord. 9. Damage to the Property. If the Property is damaged or destroyed, Landlord may terminate this Lease immediately and may decide not to rebuild or repair the Property, in which case this lease is terminated and neither party has any further obligation to the other. 10. Insurance. Tenant shall maintain a policy of renter's insurance on persona] property at their own expense. Tenant shall also maintain a policy of liability insurance in the amount of not less than Tenant's present policy limits with respect to injury or death to a single person, and said policy of insurance shall name Landlord as an additional insured. Tenant shall indemnify and hold harmless Landlord from any claim or damage to person or property arising out of activities by Tenants or Tenants' invitees on the Property. 11. Utilities. Tenant shall pay for all utilities provided to the Property during the term of this Lease. 12. Right of Entry. Landlord and Landlord's agents may enter the Property at reasonable hours to repair or inspect the Property and perform any work that Landlord decides is necessary. 13. Assignment and Subletting. Tenant may not assign this Lease, lease the Property to anyone else (sublet), sell this Lease or permit any other person to use the Property without the prior written consent of the Landlord_ If Tenant does so, Landlord may terminate this Lease. Any assignment or sublease made without Landlord's written consent will not be effective_ Tenant must get Landlord's permission each time Tenant wants to assign or sublet. Landlord's permission is legally effective only for that specific assignment or sublease. 14. Surrender of Premises. Tenant shall move out of the Property upon termination of this Lease in accordance with Section 2 hereof. 15. Default. If Tenant violates any term of this Lease, Landlord may terminate this Lease. If Tenant does not move out, Landlord may bring an eviction action. If Tenant violates a term of this Lease and Landlord does not terminate this Lease or evict Tenant, Landlord may still terminate this Lease and evict Tenant for any other violation of this Lease. If contraband or a controlled substance manufactured, distributed, or acquired in violation of Minnesota law is seized in the Property or on the property on which the Property is CRR- 258725v2 R5230 -36 b.. I3y Tenant Tenant promises, at Tenant's expense, to make all repairs and eliminate any violation of health and safety laws. Tenant shall comply with all the sanitary laws affecting the cleanliness, occupancy and preservation of the Property, except where the Landlord is required by law to comply with the sanitary laws (see Minnesota Statute, Section 504.18). May-17-05 13:56 From- Kennedy Graven +5123379310 T -440 P 009/009 F -857 CRR- 25Z725v2 RS230 -36 located incident to a lawful search or arrest, and if Tenant has no defense under Minnesota Statutes 609.5317, Tenant shall have no further right to possession of the Property, and Landlord may bring an eviction action against Tenant. 16. Heirs and Assigns. The terms of this Lease apply to the Tenant and Landlord and any heirs, legal representatives, successors and assigns of Tenant or Landlord. DATED: 2005. LANDLORD: TENANT: City of Rosemount Ry Its Mayor By Its Clerk Claire M. Olsen d/b /a T C Daycare Xcel Energy= VIA FACSIMILE (651- 792 -7020) May 13, 2005 Mr. James Verbrugge City Administrator City of Rosemount City Hall 2875 145th Street West Rosemount, MN 55068 Dear Mr. Verbragge- Kerry C Koep Assistant General Counsel eY C.-L/t 7 L U oeeoS/ c?r eroiu✓' cr. 1' "i 800 Nicollet Mall, Suite 2900 Minneapolis, Minnesota 55402 Phone 612 215 4583 Fax. 612 215 4544 Thank you for the opportunity to respond to the City's proposed ordinance. As we understand the proposal, the ordinance would require all entities providing natural gas service in the City to enter into a franchise agreement with the City. We also understand that the City would require, as a condition of the franchise, that we agree to the gas service territory map prepared by the City. This would, in effect, prohibit us from providing new natural gas service to anyone outside of our currently drawn territory boundaries. With due respect to the needs and wishes of the City, Northern States Power Company d/b /a Xcel Energy cannot accept and must oppose the proposed ordinance. Although we are willing to enter into a nondiscriminatory gas franchise agreement, the imposition of arbitrary service territory boundaries raises troubling anticompetitive /antitrust and discrimination issues. Although the State of Minnesota has articulated a need for exclusive electric service territories regulated by the Minnesota Public Utilities Commission (MPIJ it consciously decided not to create state regulated natural gas service territories and has not granted express municipal authority to establish exclusive gas service areas. The authority to regulate natural gas service areas thus must be implied from a municipality's police power authority over public safety and rights of way. Additionally, the proposed ordinance does not benefit the City's residents or businesses because it does not allow them the opportunity to choose between competing entities and obtain the most advantageous services and prices. We realize the City wishes to avoid unnecessary duplication of facilities, ensure public safety and appropriately manage public rights of way. Xcel Energy supports those goals, but we feel the City has other effective options for addressing these concerns, such as regulating natural gas service through permitting, or through construction ordinances by which developers are allowed to select the gas utility for each incremental subdivision. There are several examples in the metro area of municipalities with such ordinances (Woodbury among them). Such options would provide the benefits to consumers of competition but 1 See Community Communications Co. v City of Boulder, 455 U.S. 40 (1982) (city not Immune from antitrust challenge to telecommunications franchising decisions), but see Municipal Utilities Board of Albertville v Alabama Power Co 21 F 3d 384 (11th Cir 1994), cert denied 130 L Ed. 2d 1064 (1995) RED MAY 16 2005 avoid any concerns (for either the City or the utility) over whether gas utility franchises or the City's franchise ordinances discriminate in favor of one gas utility over another. Xcel Energy and numerous other Minnesota municipalities have faced this same issue over the last few years. The Company would be happy to provide the City with examples of the ordinances adopted by other municipalities in Minnesota which allow the various goals to be satisfied. Sincerely, Kerry C. Koep