HomeMy WebLinkAbout7.a. Lease Agreement with Department of Military Affairsi ►
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: January 18, 2000
AGENDA ITEM: Lease Agreement with Department of Military AGENDA SECTION:
Affairs OLD BUSINESS
i PREPARED BY: Dan Schultz, Parks and Recreation Director AGENDOW
ATTACHMENTS: Letter to MSABC, Proposed 2000 Lease and APPROVED BY:
Addendum
Since April of 1999, the Department of Military Affairs and City staff have been working to renew a 2000
lease agreement for the Rosemount National Guard Training and Community Center. Our current lease
expired in 1998 and we have since been operating on a month to month basis. When negotiations commenced
to renew the lease, City Administrator Burt sent a letter to Terrence Palmer of the Minnesota State Armory
Building Commission, asking to evaluate our current lease agreement. The City requested that our monthly
lease payment be reduced in lieu of the increased janitorial and maintenance services the City was providing
to the National Guard shared use areas.
The Department of Military Affairs has proposed the City provide janitorial and light maintenance work in
the National Guard use areas and the shared use areas of the Training and Community Center. The
Department of Military Affairs would then reimburse the City for the costs involved with the work. This
agreement would be an addendum to the proposed 2000 lease. Upon approval of the 2000 lease agreement,
staff would internally post for the position full -time Building Maintenance Worker.
Staff will review these items with you at the meeting.
RECOMMENDED ACTION: Motion to approve the 2000 Rosemount National Guard Training and
Community Center Lease Agreement and Addendum.
COUNCIL ACTION:
CITY OF .ROSEMOU NT
PARKS & RECREATION
"The Benefits Are. Endless"
April 15, 1999
Terrence Palmer
Executive Director
Minnesota State Armory Building Commission
Veterans Services Building
20 West 12th Street
St. Paul, MN 55155
Dear Terry:
ROSEMOUNT COMMUNITY CENTER
AND ARENA
13885 South Robert Traii
Rosemount, MN 55068 -3.138
Main: 651.322 -6000
Fax: 651-322-6080-
TDD: 651-423-62
Information Line: 612-89i-943i
I am requesting an evaluation of the lease agreement between the MSABC and the City of
Rosemount. The reason for my request is to settle additional maintenance costs passed onto the
City of Rosemount since the departure of State employee Don Remstrom on November 4, 1998.
When the Rosemount National Guard Training and Community Center was first opened five
years ago, cleaning duties of the shared areas were divided between Guard and City. Since Don
Remstorm has left. the City has completed 100% of the maintenance of the shared areas with
exception to the shower areas. The City can no longer justify the added responsibility of the
shared areas and requests adjustment to section 2 of the lease agreement, to read:
2. PAYMENT: The City agrees to pay MSABC the sum of three hundred seventy
five and no /100 Dollars ($375.00) each month. The amount is payable on the fifteenth of
each month for the previous month's occupancy. All payments are to be made to the
MSABC and mailed to Executive Director — MSABC. Veterans Service Building, 20
West 12 "' Street, St. Paul, MN, 55125.
Assuming the total City rental fee is reduced to $375.00 per month, I propose the following
division of maintenance responsibilities for shared areas of the Center:
City of Rosemount National Guard
1) Cleaning labor of shower areas. None 100%
2) Shower area supplies and repair. None 100%
3) Cleanina labor of remaining areas. 100% None
4-ME
I
Thomas Burt
City Administrator
City of Rosemount
National Guard
4)
Cleaning supplies of remaining areas.
100%
None
5)
Non- cleaning maintenance labor.
100%
None
(Bulbs, filters, painting, repair, etc.)
6)
Non - cleaning maintenance supplies.
50%
50%
7)
Gym floor resurfacing labor.
100%
None
8)
Gym floor resurfacing materials.
50% 0
50%
9)
Grounds maintenance labor.
100%
$17,000.00 fee /year
10)
Seal coat, striping, parking lot lights.
67%
33%
11)
Elevator maintenance contract.
75%
25%
12)
Boiler maintenance contract.
50%
50%
U)
Fire alarm contract.
50%
50%
14)
Chiller maintenance contract.
67%
33%
15)
Gas — Peoples
52%
48 %.
16)
Electric Meter G090050784
30%
70%
17)
Electric Meter for Arena & Banquet
100%
0%
18)
Other costs.
50%
50%
I wish to arrange a time with you to discuss this proposal. I can be reached at (651) 322 -2006.
Thank you for your consideration.
Best regards,
Thomas Burt
City Administrator
I
AGREEMENT BETWEEN THE MINNESOTA STATE ARMORY
BUILDING COMMISSION AND THE CITY OF ROSEMOUNT
ROSEMOUNT TO LEASE SPACE
WHEREAS, the Minnesota State Armory Building Commission, hereinafter
referred to as MSABC, has constructed an armory in the City of Rosemount;
WHEREAS, M.S. 193.145, Subd. 5, anticipates that portions of such armory can
be leased to other entities as long as such lease does not conflict with the lease to and use
of the armory by the State of Minnesota for military purposes;
WHEREAS, the City of Rosemount, hereafter referred to as City, desires to
utilize a portion of said armory;
WHEREAS, the MSABC desires to enter into an agreement with the City for the
use of the armory when it is not being used for military purposes.
NOW, THEREFORE, BE IT AGREED that the MSABC does hereby lease to the
City, and the City does hereby accept lease of, that portion of the armory located in the
City of Rosemount, also known as the Rosemount National Guard Training and
Community Center as described on Attachment A hereto, on the following terms and
conditions:
1. TERM: The term of this agreement shall be for one year beginning
January 19, 2000 and continuing to December 31, 2000, whereupon this lease shall
continue on a month -to -month basis until terminated or modified by a one - rental period
written notice. Lessee agrees not to assign this lease or any portion thereof without first
obtaining the written consent of the lessor.
A
t'
2. PAYMENT: The City agrees to pay the MSABC the sum of One
Thousand Four Hundred and no /100 Dollars ($1,400.00) each month. The amount is
payable on an annual basis. All payments are to be made payable to the MSABC and
mailed to Executive Director — MSABC, Veterans Service Building, 20 West 12 Street,
St. Paul, MN 55155.
3. CANCELLATION: The MSABC reserves the right to cancel this lease at
any time in the event that an emergency arises which shall make necessary the use of this
armory by the military forces for the State of Minnesota, and that no claims for any
damage that may result to the City from any such cancellation shall be asserted or
maintained against the MSABC.
4. LIABILITY: The MSABC shall defend, indemnify, and hold harmless the
City, its officials, employees and gents, from any and all claims, causes of
action, lawsuits, damages, losses, or expenses, including attorney fees,
arising out of or resulting from the MSABC's performance of the duties
required under this lease, provided that any such claim, damages, loss or
expenses is attributable to bodily injury, sickness, diseases or death or to
injury to or destruction of property including the loss of use resulting
therefrom and is caused in whole or in part by any negligent act or
omission or willful misconduct of the MSABC. All such liability and
indemnity shall be limited to the coverage provided by the MSABC's
insurance carrier, if any, and if no coverage is provided, therefore, by
limits imposed by Minnesota Statutes Section 466.04.
L
The City shall defend, indemnify and hold harmless the MSABC, its officials,
employees and agents, from any and all claims, causes of action, lawsuits, damages,
losses, or expenses, including attorney fees, arising out of or resulting from the City's
performance of the duties required under this lease, provided that any such claim,
damages, loss or expense is attributable to bodily injury, sickness, diseases or death or to
injury to or destruction of property including the loss of use resulting therefrom and is
caused in whole or in part by any negligent act or omission or willful misconduct of the
City. All such liability and indemnity shall be limited to the coverage provided by the
City's insurance carrier, if any, and if no coverage is provided, therefore, by limits
imposed by Minnesota Statutes Section 446.04.
5. COMPLIANCE WITH LAW: The City agrees to comply with all of the
laws, rules, and regulations of the United States and the State of Minnesota, and the rules
and regulations of the MSABC for the government and management of said armory
together with all rules and requirements of the Police and Fire Departments of the City of
Rosemount. Furthermore the City shall obtain all permits or licenses required by any
provision of law, municipal charter or ordinance for the conduct of programs and
activities organized and managed by the City on the leased premises, and the MSABC
and the State of Minnesota shall not be responsible for the City's failure to obtain such
permits and licenses or to comply with any other requirement imposed upon the City for
the conduct of such activity.
1
6. VACATION: The City agrees to vacate the leased premises, remove
debris and restore same to ordinary cleanliness within one week after termination of the
period covered by this lease.
7. SCHEDULE OF USE: It is agreed and understood that the facility is
primarily for use by the Minnesota National Guard and that military activities must take
precedence over any use by the City. The City and the MSABC shall cooperate to avoid
any conflicts between uses. The MSABC shall provide the City with a written schedule
of its use of the armory's shared facilities one year in advance. This schedule will
become part of the lease. The City will incorporate this schedule into theirs. It is
understood that the schedule may change from time to time, and the MSABC shall give
reasonable notice to the City in such cases. If, for any reason, the schedule requires
changing by the City, the City shall give reasonable notice to the MSABC
8. OPERATING COSTS: On the basis of the space and time utilized under
this and future leases with the City, the City will pay water, sewer, electricity, heating
and other services and utilities associated with its use or lease of the facilities, and will
provide the necessary janitorial service, snow removal, grounds keeping commensurate
with its use. The City agrees further that it will pay a pro rata share of mutually agreed
upon major maintenance or improvement (sometimes called "repair, replacement or
betterment ") to the facility where such major maintenance or improvement is required
because of the City's use of the premises. The intent of the parties in executing this lease
is that the parties will annually review and establish the City's use schedule and the
City's schedule of its pro rata share of operating costs based upon the use and costs for
the previous year. The Department of Military Affairs, State of Minnesota, shall pay the
City for the direct costs of services provided to the National Guard portion of the facility
and a pro rata share of the cost of services for the shared portion of the facility. These
services shall include. grounds keeping and snow removal.
It is understood by the parties that other questions may arise during
operation of the facility. Both parties pledge their cooperation to make this work for the
public benefit. The parties agree to cooperate in every reasonable manner to erect and
operate a facility which first and foremost shall be considered a military structure for use
by the National Guard and, secondly, shall be considered a public facility for use by the
public.
The City agrees to make no change in the stage, curtains, electric, wiring
fixtures or furnishings of those portions of the armory or shared spaces covered by the
lease. The expense of any agreed upon changes shall be assumed by the City and shall
include the cost of restoring the premises to its former conditions without damage.
9. MINOR REPAIR AND MAINTENANCE: The Department of Military
Affairs, State of Minnesota shall be responsible for maintenance of any specially fenced
secure area for military vehicles or any accessory building utilized to store government
equipment, and shall be responsible for maintenance and repair of shared areas incident
to and after use by the National Guard. The City shall have personnel on the premises at
all times during City use or City generated lease of the building and shall be responsible
for maintenance and repair and securing the building when personnel are not present.
10. NOTICE: Any notices under this lease may be given to the MSABC by
sending to: Executive Director
Minn. State Armory Building Commission
Veterans Service Building
20 W 12' Street
St. Paul, MN 55155
And to the City by sending to:
11. INSURANCE: Each party shall maintain insurance on their property
interests in the facility.
IN TESTIMONY WHEREOF, both parties have hereunto set their hands
and seals this day of , 2000.
MINNESOTA STATE ARMORY CITY OF ROSEMOUNT
BUILDING COMMISSION
_:
Its Chairman
In
Its Mayor
By: By:
Its Superintendent Its Director
ATTACHMENT A
TO
ROSEMOUNT NATIONAL GUARD TRAINING AND COMMUNITY CENTER
LEASE
Schedule of City's Anticipated
and
Requested Use of Facilities
Schedule of Use:
Area of Building: Dates and time of use
(1) Gymnasium and Sunday thru Saturday from 7:00 a.m. to 10:00
Locker Room areas p.m. except where it conflicts with those days
scheduled as drill dates with the City.
(2) Classrooms ( #204, Same as above.
205, 206, 208, 210, 212,
214, 215 and Auditorium)
(3) Kitchen, lower level Same as above.
ADDENDUM TO LEASE AGREEMENT
This agreement by and between the Department of Military Affairs, the Minnesota Army
National Guard ( "Guard ") and the City of Rosemount ( "City ") modifies and supplements a
certain lease agreement between MSABC and the City.
WHEREAS, MSABC leased to the City a portion of the Rosemount National Guard
Training and Community Center ( "Center ") on terms and conditions specified in the attached
lease agreement ( "Lease ") which has been extended by the parties on a month -to -month basis;
WHEREAS, the Lease contemplates that questions would arise during operation and
maintenance of the Center and that the parties would cooperate in resolving such questions;
WHEREAS, MSABC and the City desire to modify and supplement the terms of the
Lease and MSABC, the Guard, and the City have agreed upon certain terms and conditions;
NOW, THEREFORE, BE IT AGREED that for good and valuable consideration the
parties agree as follows:
1. The City will employ and provide one (1) additional city building maintenance worker to
perform custodial and minor preventative maintenance duties at the Center. The Worker
shall be a city employee for all purposes and shall be paid by the City. The Guard shall
pay the City $32,000.00 annually to reimburse the City. for the costs of paying the
worker. The Guard shall also make a one time reimbursement of $1,700.00 to the City for
hiring expenses The City and Guard may agree to increase the amount of reimbursement
in future years.
2. The City will enter into a mechanical air handler contract. The Guard will pay the City
$15,000.00 annually to partially reimburse the cost of this contract. The City will invoice
the Guard annually for such reimbursement.
3. The City will continue to provide certain janitorial supplies in shared use areas of the
Center. The Guard will pay up to $1,800.00 annually for its pro rata share of the cost of
such supplies. The City will monthly invoice the Guard for reimbursement of these
expenses.
4. The Guard will continue to pay its portion of the "chiller" maintenance contract which
shall remain separate from the air handler contract. The City will quarterly invoice the
Guard for its pro rata portion of the contract expense.
5. The Guard will provide the City with a list detailing the City's duties and responsibilities
concerning use and maintenance of the Center, including the level and quality of services
to be provided by the City or its agents. Upon agreement by City, the list will become a
part of this agreement.
s
6. The Guard will keep all equipment purchased, wholly or in part, with City funds at the
Center for custodial or maintenance activities. The Guard may reassign tools or
equipment purchased solely with state funds to other sites but the City shall have no
obligation to replace such tools or equipment. The Guard and City will prepare a list
identifying equipment purchased with City funds. The list will become a part of this
agreement.
7. The Guard will identify and pay for repairs, changes or alternations to space used solely
by the Guard. The City may identify needed repairs, changes or alterations in shared use
spaces. The City shall request the Guard's authorization and a work order number prior
to performing or contracting for work in the Center. Upon receipt of authorization and a
work order number, the City may invoice the Guard for repairs, changes or alterations to
the Center. The City may perform emergency work immediately and notify the Guard as
soon as is practical.
8. The terms and conditions of this addendum shall be effective beginning on January 19,
2000, and the Lease and this addendum shall terminate on December 31, 2000 unless
modified or extended by written agreement of the parties.
The parties acknowledge the terms and conditions of the Lease and agree that any provision of
the Lease. which is inconsistent with the foregoing terms and conditions shall be deemed
superseded and replaced by the terms herein.
IN WITNESS WHEREOF, the parties have executed this agreement this_ day of
2000.
MINNESOTA STATE ARMORY
BUILDING COMMISSION
By:
Its Chairman
By
Its Superintendent
MINNESOTA ARMY NATIONAL
GUARD
By:
By:
CITY OF ROSEMOUNT
By:
Its Mayor
By:
Its Director