HomeMy WebLinkAbout2008-06-11 Agenda & Handouts
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CITY COUNCIL MEETING
AGENDA
COUNCIL MEETING
VVednesday,Junell,2008
6:30 p.m.
Set Agenda = Items in Red
I. CALL TO ORDER
1. Roll Call
II. PUBLIC HEARING
III. OPEN FORUM: An opportunity for members of the public to address the City Council on items not on
the current agenda. Items requiring Council action maybe deferred to staff or Boards and Commissions for research
and future Council Agendas if appropriate. You will be limited to two (2) minutes and we ask that you conduct
yourself in a professional, courteous manner, and refrain from the use of profanity. Failure to abide by this policy
may result in the loss of your privilege to speak. Persons wishing to speak will be required to complete a sign-up
sheet and give it to the mayor or a staff person prior to the start of the meeting.
IV. APPROVAL OF AGENDA
V. APPROVAL OF MINUTES
1. May 14,2008 City Council Meeting Minutes (Pages 1-6)
2. May 14,2008 City Council Closed Executive Session Meeting Minutes (Page
7)
3. May 21,2008, City Council Work Session Meeting Minutes (Pages 8-22)
4. May 28, 2008, City Council Meeting Minutes (Pages 23-32)
5. May 28,2008, City Council Work Session Meeting Minutes (Pages 33-39)
6. May 28, 2008, City Council Closed Executive Session Meeting Minutes
(Pages 40)
7. June 10, 2008, City Council Work Session Meeting Minutes (Page 40a-40b)
VII. CONSENT AGENDA
1. City ofCenterville May 29,2008 through June 11, 2008 Claims (Pages 41 &
41a)
2. Trio Inn Request for Annual Renewal of 2 A.M. Liquor Serving License
(Page 42)
3. Mediation Services of Anoka County Request of $420 for the 2009 Budget
(pages 43-45)
4. Ms. Tracy Zarembinski Request for Massage Therapist Certificate to
Practice at Serenity Now Healing (Successful Background Check &
Educational Requirements Met)
5. St. Genevieve's Church Request for Temp. Gambling Permit - Chicken
Dinner (August 17, 2008) (Bingo, Ruffles, Paddlewheels, Pull-Tabs &
Tipboards) Waive Fee (Pages 45a-45c)
6. All Around Rental Request for Rock Wall at Battle of the Boards & Boards
June 14, 2008 - Fees to be Paid by Participants (Pages 45d)
VI. AWARDS/PRESENT A TIONS/ APPEARANCES
VII. OLD BUSINESS
1. Res. #08-0XX - Ordering Improvements - 2009 Street Project (Pages 45e)
2. Res. #08-0XX - Declaring Cost to be Assessed, Ordering Prep. of Proposed
Assessment & Calling for a Public Hearing - Part of Old Mill Road
3. Appraisal Updates/Expenditure of Funds - Old Mill Road & Backage Road
Special Assessments
4. Extend Purchase Agreement for Property in Block 7, Downtown to
Centerville Mainstreet, LLC/Beard Group (Pages 45f-45r)
VIII. NEW BUSINESS
1. Contaminated SoilslDowntown Area (Page 46-46i)
2. CSAH14 Project - Permits for Street ObstructionlOpening- Waiver of Fees
3. Sign for Public Works Building (Page 47)
IX. ANNOUNCEMENTSIUPDATES
1. City Administrator, Mr. Dallas Larson
2. Emergency Communications - City Hall (CapralLakso)
3. Code Update
X. ADJOURNMENT
* *REMINDERS* *
Council Meeting - June 25, 2008, 6:30 p.m. Council Chambers
Planning & Zoning Commission Meeting - July 1, 2008, 6:30 p.m. Council Chambers
Parks & Recreation Committee Meeting - July 2, 2008, 6:30 p.m. Council Chambers
Independence Day - July 4, 2008 - City Hall Closed
City Council 2008-06-10- 9:30 p.m.
Minutes of Work Session
Not AP~
Present were Mayor Capra, Council members Tom Lee, JeffPaar, Linda Broussard-
Vickers, and Michelle Lakso. Also present was Mark Statz of Bonestroo & Assoc. City
Attorney Kurt Glaser arrived at about 7:45 p.m.
The Council discussed the scope of the proposed street improvement for 2009. Engineer
Statz presented maps outlining the possible improvement areas and one map included the
age of the various streets under consideration.
Mayor Capra indicate that she would support a project of $2,000,000, and may consider a
slight increase to include Mill Road if the Council agrees to do that, but is concerned that
that work is being driven by the pedestrian trail. Mill Road would add about $230,000.
Mayor Capra expressed concerns of tax increases already voted on for the CSAH 14 and
Backage Road projects.
Council member Paar expressed concern that the Council should not reduce the project
below the $4.5 million number that was proposed at the last work session. He felt that the
decision must be made on what is right for the whole city and that the Council will likely
regret not doing more. He indicated that he would probably vote against the project if it
was reduced significantly from the $4.5 million amount.
Council member Lee noted that the Council has made progress with improving the
infrastructure in the last five years and that not following the Pavement Management Plan
will cause a future council problems dealing with the maintenance expense associated
with roads. He indicated that he supports doing as much as reasonably possible.
Council member Lakso wants to do the project but would like to cut out Brian Drive
north of Fox Run. She was unsure about Mill Road and the C-type improvements on
Peterson Trail, Houle, Hayfield and Fox Run west of Peterson. She definitely feels the
project size should be reduced.
Linda Broussard Vickers suggested the Council needs to be very committed to whatever
the project that is finally agreed to, since a significant investment in engineering would
be wasted ifthe project were dropped after bids were received. She feels that the city is
not making progress on its street program if the project is limited $2 million. This would
only make the future projects much larger.
Mayor Capra asked if Council member Broussard Vickers will support the watermain in
the streets that don't have it, if she would support a larger project. Council member
Broussard Vickers indicated that she would support the watermain, if the Council can
agree on an appropriate project scope.
After some discussion there was a consensus to do a project estimated at $3.3 million.
The project would drop all of Mill Road and would defer the C improvements on
Peterson Trail, Houle Circle, and Hayfield & Fox Run west of Peterson. These C
improvement and also Center Street, Sumac and Ivy Court may be part of a second round
of improvements, if the bids are good on the base project.
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The Council briefly discussed the method of assessing comer lots and concerns with
sump pumps discharging into the street. The consensus was that sump pumps should be
routed to rear yards.
The meeting was adjourned at approximately 8:10 p.m.
Dallas Larson, Administrator
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CITY OF CENTERVILLE
06/11/083:15 PM
Page 1
tervi[[e
*Check Summary Register@)
'E'ita6(ishc.( ./857
.JUNE 2008
lJPDllTE
Name
Check Date
10100 MAIN STREET BANK
Paid Chk# 023423 AFLAC 6/11/2008
Paid Chk# 023424 AMERICAN WATER WORKS 6/11/2008
Paid Chk# 023425 ANDREW ROSS & PATRIOT 6/11/2008
Paid Chk# 023426 ANOKA COUNTY PROPERTY 6/11/2008
Paid Chk# 023427 AVLlC 6/11/2008
Paid Chk# 023428 CITY OF ST. PAUL 6/11/2008
Paid Chk# 023429 HUGO FEED MILL 6/11/2008
Paid Chk# 023430 KENNETH A. TOLZMANN, SAMA 6/11/2008
Paid Chk# 023431 LANG BUILDERS 6/11/2008
Paid Chk# 023432 MARATHON ASHLAND 6/11/2008
Paid Chk# 023433 MENARDS - FOREST LAKE 6/11/2008
Paid Chk# 023434 NATIONWIDE RETIREMENT 6/11/2008
Paid Chk# 023435 ON SITE SANITATION 6/11/2008
Paid Chk# 023436 PRESS PUBLICATIONS 6/11/2008
Paid Chk# 023437 QWEST 6/11/2008
Paid Chk# 023438 SAVAGE CONTROLS 6/11/2008
Paid Chk# 023439 TRU GREEN - CHEM LAWN 6/11/2008
Paid Chk# 023440 USA MOBILITY WIRELESS, INC. 6/11/2008
Paid Chk# 023441 VISU-SEWER CLEAN & SEAL INC 6/11/2008
Paid Chk# 023442 WHITE BEAR LOCKSMITH 6/11/2008
Paid Chk# 023443 XCEL ENERGY 6/11/2008
Paid Chk# 023444 HUGO MILL OUTDOOR POWER 6/11/2008
Paid Chk# 023445 SAVAGE CONTROLS 6/11/2008
Paid Chk# 023446 PRESS PUBLICATIONS 6/11/2008
Paid Chk# BI-WEEKLY ACH 6/12/2008
Total Checks
Check Amt
$32.20 J.MEYER AFLAC INS
$65.00 P. PALZER ANNUAL MEMBER SHIP -
$11,657.00 PARTIAL PYMT FOR TRACIE MCBRID
$1,772.02 23-31-22-23-0011 PROPERTY TAXE
$150.00 DEF COMPW/H 6-12-08
$815.36 ASPHALT
$0.00 VOID
$7,583.00 1ST & 2ND QTR PYMT 2010 PROP.
$500.00 1790 PARTRIDGE PL -06-133-ESCR
$1,071.67 FUEL - THRU 5-29-08
$83.76 OPERATING SUPPLIES
$1,063.96 DEF COMPW/H 6-12-08
$894.60 6970 LAMOTTE DR - LAMOTTE PARK
$61.20 BIDS FOR 2008 SEAL COAT
$55.52 651-426-6579 SERV THRU6-30-08
$0.00 VOID
$1,705.75 CITY HALL - LAWN CARE
$8.10 612-640-2534 ON CALL PAGER
$1,755.00 EMERGENCY SEWER CLEAN & TV
$208.12 REPAIR LOCKS & REKEY CITY HALL
$14.43 1601 LAMOTE DR - SERV THRU 6-5
$2.97 SPARK PLUG FOR CHAIN SAW
$1,240.14 ASSESS FEASIBILITY OF MOVING P
$921.45 SEASONAL MAINTENANCE WORKER
$15,133.53 PAY PERIOD 12
$46,794.78
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ACORD", CERTIFICA TE OF LIABILITY INSURANCE I DAlE jIIMIDIIIYYYY)
6/11/08 ,
PRODUCEIt Alllea Specl.alty Insurance THIS CERnFICATE IS ISSUED AS A MATTER OF INFORMAnON
85 N.E. Loop 410 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
Suite 600 ~pLDER. THIS CERTIFICA TEDOES NOT AMEND. EXTEND OR
San Antonio, TX 78216
INSURERS AFFORDING COVERAGE HAlC.
IlIURED All Around Rental INSURERA: T . H. E. Insurance Company
7129 20th Ave. N. INSURER 8: --
Centerville, MN 55038 INSURER c:
INSURER D:
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THE POlICIES OF INSURANCE USTED BELOW HAVE BEEN ISSUED TO lllE INSURED NAMED ABOVE FOR THE POLlCY PERIOD INDICATED. NOlWTHSTANDlNG
AHY REQUIREMENT. TERM OR CONDITION OF N4Y CONTRACT OR OTHER DOCUMENT'MTH RESPECT TO 'MilCH 1lllS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN. THE INSURANCE AFFORDED BY THE POUCIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXa.USIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE UMlTS SHOV\tI MAY HAVE BEEN REDUCED BY PAID CLAIMS.
IN. MlD'l. POLICY NUMBER POIJC'( EFFI!C1M! POIJC'( EllPIRA lION LMt'lll
~LIUIUlY EACH OC:C:UAAENCE I 1,000,000
1\ ..!.OMERCIAL GENERAL UAIlIUTY M8MT8420 06/05/08 06/0S/0B twW3E TO RENTED I 50,000
~ ClAIMS MADE 00 OCX:UR MEOEXPINrv_ _I I.
~.- PERSONAl. & NN INJURY I 1,000,000
- GENERAL AGGREGATE I 1,000,000
~=rUun;1J>prrR: 1lAoDUc:Ts. OOMP,Q> /100 I
PI I~ lac
~UTOMOBU UAUJ1Y COMBINED SlNOI.E UNIT I
AN'I AUTO (EII1lCIIillInll
-
- ALL OWNEDAUTOll IlOOII. Y INJURY
(lltr ..-l I
- SCHEOULEOAUTOS
- HlREDAUTOS BClOIL Y INJURY
(lltr~ I
I-- NON-oYMED AUTOS --
- - PROPERTY IWUGE I
(lltr~
=rE~UTY AUTO ONLY. EAACClDENT I
AN'I AUTO OTHER TIWI EA ACe I
AUTO ONLY: &1".10 i.
~"""'1IIrEI.I.A UABLm' EACH OCCURREHCI! I
OCCUR 0 CLAIMS MADE I AOOAEaA1E I
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RETEIlITIt'W I ..
WORQRI CClMl'EHIAllOH AND I YtCSTATU- I I~
EMl'LOVERl' UA8L/1Y E.L T I
AN'I PROPRIETORIPARTNERlEXECUTIIIE
OFFlCEMlEMBER EXCLUDED? E.L llI8EASe . EA EMPLOYEE I
~,~under E.L DISEASE . IT .
OTHER
DElCRI'TlON OF OPERAllOHIl LOCAlIONI I VEHICl.U I IllCLUIlONI ADDED BY ENOORIEIIfJIT I llPECW. PRCMIIClNS
ADDITIONAL INSURED: CITY OF CENTERVILLE, MINNESOTA WITH RESPECTS TO
OPERATIONS OF NAMED INSURED ONLY
DATE: JUNE 14, 2008
CITY OF CENTERVILLE, MINNESOTA
CITY HALL
1880 MAIN STREET
CENTERVILLE MN 55038
IHOULD AH'r OF THE A8O'lIE DUCRI8ID POUCIEI BE CAfoI.... I fl\ 8IFOM THE DNATION
DAlE 11tEREOF. MISIUIIGIlIUAEltWLUNDEAWlR10MAL ~ DAYlWRITlEN
N01ICE 10 THE CERTlFlCA lE MOI..DER IWIED 10 THE LEFT. auT FAIWllE 10 DO 10 IIIAL1.
IIIPOH NO OIIUGAlION OR LlA8lUTY OF AMY KIID UPON THe 1NIURE",11lI AGINTI OR
ACORD 25 (2001108)
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C ACORD CORPORAnON 1888
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DRAFT
DRAFT
DRAFT
RESOLUTION NUMBER 08-XXX
A RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING
PREPARATION OF PROPOSED ASSESSMENT AND CALLING FOR A
PUBLIC HEARING ON IMPROVEMENT OF PART OF OLD MILL ROAD
WHEREAS, a contract has been let and costs have been determined the improvement of
Old Mill Road from a point approximately 200 feet north of Revoir Street to the north
city limits by installation of watermain, sanitary sewer, street pavement, curb, storm
sewer and related drainage improvements, and the contract price for the improvement is
$297,495, and the expenses to be incurred in the making of such improvement amount to
$ 116,537 so that the total cost of the improvement will be $414,032.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
CENTERVILLE, MINNESOTA:
1. The portion of the cost of such improvement to be paid by the city is hereby declared
to be $ -0- and the portion to be assessed against benefiting property is declared to be
$414,032.
2. The City Administrator, with the assistance of the consulting engineer shall forthwith
calculate the proper amount to be specially assessed for such improvement against
every assessable lot, piece or parcel of land within the district affected, without regard
to cash valuation, as provided by law and in accordance with the adopted assessment
policy of the City, and he shall file a copy of such proposed assessment in his office
for public inspection.
3. A hearing shall be held on the 9th day of July, 2008, in city hall at 6:30 p.m. to pass
upon the proposed assessment and at such time and place all persons owning property
affected by such improvement will be given an opportunity to be heard with reference
to such assessment.
4. The City Clerk is hereby directed to cause a notice of the hearing on the proposed
assessment to be published once in the official newspaper at least two weeks prior to
the hearing and he shall state in the notice the total cost of the improvement. He shall
also cause mailed notice to be given to the owner of each parcel described in the
assessment roll not less than two weeks prior to the hearing.
Adopted by the Council this 11th day of June, 2008.
Mary Capra, Mayor
Attest:
Teresa Bender, City Clerk
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PURCHASE AGREEMENT
THIS AGREEMENT is made as of June _, 2008, by and between the CITY OF
CENTERVILLE, MINNESOTA., ("Seller") and THE BEARD GROUP, INC. ("Buyer").
In consideration ofthis Agreement, Seller and Buyer agree as follows:
1. Sale of Property. Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, the
following property (collectively, the "Property"): the real property located in the City of
Centerville (the "City"), and legally described on Exhibit A (the legal description is
subject to modification based on the survey of the real property described in Section 6.1
hereof) (the "Land"), together with (1) all buildings and improvements constructed or
located on the Land (the "Buildings"), and (2) all easements and rights benefiting or
appurtenant to the Land (collectively, the "Real Property" or the "Property").
2. Purchase Price and Manner of Payment. The total purchase price (the "Purchase Price")
to be paid for the Property shall be Four Hundred Twenty Thousand and No/l 00 Dollars
($420,000.00). The Purchase Price shall be payable as follows:
2.1. $5,000.00 as earnest money ("Earnest Money"), which Earnest Money shall be
held Commercial Partners Title, LLC. ("Escrow Agent") in accordance with an
escrow agreement among Seller, Buyer and Escrow Agent. The Earnest Money
shall be paid by Buyer within 48 hours after receiving a fully executed original of
this Purchase Agreement from Seller.
2.2. $415,000.00 in cash, certified check, cashier's check or by wire transfer of funds
on the Closing Date reduced by any Additional Earnest Money deposited by
Buyer pursuant to Section 4.
3. Contingencies. The obligations of Buyer under this Agreement are contingent upon each
of the following:
3.1. Representations and Warranties. The representations and warranties of Seller
contained in this Agreement must be true now and on the Closing Date as if made
on the Closing Date.
3.2. Title. Title shall have been found acceptable, or been made acceptable, In
accordance with the requirements and terms of Section 6 below.
3.3. Access and Inspection. Seller shall have allowed Buyer, and Buyer's agents,
immediate access to the Real Property without charge and at all reasonable times
for the purpose of Buyer's investigation and testing the same. Seller shall make
available to Buyer and Buyer's Agents without charge all records, inventories,
permits and correspondence in Seller's possession relating to Hazardous
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Substances affecting the Property; and the right to interview employees of Seller
who may have knowledge of such matters. Buyer shall have been satisfied with
the results of all tests and investigations performed by it on or before the
Contingency Date.
3.4. Government Approvals. Buyer shall have obtained, at its sole cost and expense,
on or before the Contingency Date, all final governmental approvals necessary in
Buyer's judgment in order to make the use of the Property which Buyer intends,
including a commitment from the City for tax increment financing and a letter of
support from the City for the development of approximately forty-one (41)
affordable rental housing units. Seller shall cooperate in all reasonable respects
with Buyer in obtaining such approvals, and shall execute such applications,
permits and other documents as may be reasonably required in connection
therewith.
3.5. Financing. Buyer shall have received, on or before the Contingency Date,
commitments for financing necessary and sufficient, in Buyer's opinion, to
implement Buyer's plans for and to complete the purchase and development of the
Property .
3.6. Environmental Assessment. At Buyer's sole cost and expense, Buyer shall have
obtained and be satisfied with, in Buyer's sole discretion, on or before the
Contingency Date, a Phase I Environmental Site Assessment of the Property in
accordance with the Minnesota Pollution Control Agency Voluntary Investigation
and Cleanup Guidance Document #8.
If any contingency has not been satisfied on or before October 30, 2008 (the
"Contingency Date"), or such other date determined pursuant to Section 6, as the case
may be, then this Agreement may be terminated by notice from Buyer to Seller. Upon
termination, the Earnest Money, and any interest accrued thereon, if any, shall be released
to Buyer and upon return; neither party will have any further rights or obligations
regarding this Agreement or the Real Property. All the contingencies are specifically for
the benefit of the Buyer, and the Buyer shall have the right to waive any contingency by
written notice to Seller. If this Agreement is not terminated by Buyer on or before the
Contingency Date, the Earnest Money shall be nonrefundable absent Seller's default.
4. Closing. The closing of the purchase and sale contemplated by this Agreement (the
"Closing") shall occur on or before December 30, 2008 (the "Closing Date"). Buyer shall
have the right to extend the Closing Date for up to thirty (30) days. In order to extend the
Closing Date, Buyer shall, prior to the Closing Date, give written notice to Seller of the
extension and delivery to the Escrow Agent Five Thousand and No/lOO Dollars
($5,000.00) additional earnest money ("Additional Earnest Money"). The Closing shall
take place at the office of The Beard Group, Inc. in Hopkins, Minnesota. Seller agrees to
deliver possession of the Property to Buyer on the Closing Date.
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4.1. Seller's Closing: Documents. On the Closing Date, Seller shall execute and deliver
to Buyer the following (collectively, "Seller's Closing Documents"), all in form
and content reasonably satisfactory to Buyer:
4.1.1. Deed. A Warranty Deed conveying the Real Property to Buyer, free and
clear of all encumbrances, except the Permitted Encumbrances hereafter
defined.
4.1.2. FIRPTA Affidavit. A non-foreign affidavit, properly executed, containing
such information as is required by IRC Section 1445(b )(2) and its
regulations.
4.1.3. IRS Forms. A Designation Agreement designating the "reporting person"
for purposes of completing Internal Revenue Form 1099 and, if applicable,
Internal Revenue Form 8594.
4.1.4. Well Certificate. A Certificate signed by Seller warranting that there are
no "Wells" on the Property within the meaning of Minn. Stat. ~ 1031 or if
there are "Wells", a Well Certificate in the form required by law.
4.1.5. Storage Tanks. If the Property contains or contained a storage tank, an
affidavit with respect thereto, as required by Minn. Stat. ~ 116.48.
4.1.6. Individual Sewage Treatment Systems. If the Property contains an
individual sewage treatment system, a disclosure statement as required by
Minn. Stat. ~ 115.55.
4.1.7. Other Documents. All other documents reasonably determined by Buyer
or Title to be necessary to transfer the Property to Buyer free and clear of
all encumbrances, except the permitted encumbrances.
4.2. Buyer's Closing: Documents. On the Closing Date, Buyer will execute and deliver
to Seller the following (collectively, "Buyer's Closing Documents"):
4.2.1. Purchase Price. Funds representing the Purchase Price, by wire transfer
and execution or delivery of any required Seller's financing documents.
4.2.2. IRS Form. A Designation Agreement designating the "reporting person"
for purposes of completing Internal Revenue Form 1099 and, if applicable,
Internal Revenue Form 8594.
5. Prorations. Seller and Buyer agree to the following prorations and allocation of costs
regarding this Agreement:
5.1. Title Insurance and Closing Fee. Seller will pay all costs of the Title Evidence
and the fees charged by Title for any escrow required regarding Buyer's
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Objections. Buyer will pay all premiums required for the issuance of any Title
Policy. Seller and Buyer will each pay one-half of any closing fee or charge
imposed by any closing agent or by the title company.
5.2. Deed Tax. Seller shall pay all State Deed Tax payable in connection with this
transaction. Buyer shall pay all Mortgage Registry Tax payable in connection
with Buyer's financing.
5.3. Real Estate Taxes and Special Assessments. All Real Estate Taxes and Special
Assessments payable in the years prior to the year in which the Closing occurs
shall be paid by Seller. Real Estate Taxes payable in the year in which Closing
occurs, and installments of Special Assessments payable therewith, shall be pro-
rated based upon a calendar year based upon the Date of Closing, except that if
Buyer's lender shall require Special Assessments to be prepaid, Seller shall prepay
the same on the Date of Closing.
5.4. Other Costs. All operating costs of the Property, if any, shall be allocated
between Seller and Buyer as of the Closing Date, so that Seller pays that part of
operating costs payable before the Closing Date, and Buyer pays that part of
operating costs payable from and after the Closing Date.
5.5. Attorney's Fees. Each of the parties will pay its own attorney's fees, except that a
party defaulting under this Agreement or any Closing Document will pay the
reasonable attorneys' fees and court costs incurred by the nondefaulting party to
enforce its rights hereunder.
6. Title Examination. Title Examination will be conducted as follows:
6.1. Seller's Title Evidence. Seller shall, within twenty (20) days after the date of this
Agreement, furnish the following (collectively, "Title Evidence") to Buyer: (a) a
commitment ("Title Commitment") for an ALTA Form B 1990 Owner's Policy of
Title Insurance insuring title to the Real Property, deleting standard exceptions
and including affirmative insurance regarding zoning, contiguity, appurtenant
easements and such other matters as may be identified by Buyer, in the amount of
the Purchase Price, issued by a title insurance company acceptable to Buyer
("Title"); (b) if the Property is abstract property, Seller shall also deliver to Title or
Buyer an Abstract of Title to the Real Property certified to a current date to
include all appropriate judgment and bankruptcy searches; (c) an AL T A survey
prepared by a registered land surveyor and certified to Buyer and Buyer's lender, if
any, within thirty (30) days from the date hereof showing the Real Property and
location of all buildings and easements thereon and such other information and
containing such matters as Buyer or Buyer's lender shall reasonably request.
6.2. Buver's Objections. Within twenty (20) days after receiving the last of the Title
Evidence, Buyer will make written objections ("Objections") to the form and/or
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contents of the Title Evidence. Buyer's failure to make Objections within such
time period will constitute waiver of Objections. Any matter shown on such Title
Evidence and not objected to by Buyer shall be a "Permitted Encumbrance"
hereunder. Seller will have thirty (30) days after receipt of the Objections to cure
the Objections, during which period the Closing will be postponed, if necessary.
Seller shall use its best efforts to correct any Objections. To the extent an
Objection can be satisfied by the payment of money, Buyer shall have the right to
apply a portion of the cash payable to Seller at the Closing to satisfaction of such
Objection, and the amount so applied shall reduce the amount of cash payable to
Seller at the Closing. If the Objections are not cured within such thirty (30) day
period, Buyer will have the option to do any of the following:
6.2.1. Terminate this Agreement and receive a refund of the Earnest Money and
the interest accrued and unpaid on the Earnest Money, if any.
6.2.2. Withhold from the Purchase Price an amount which, in the reasonable
judgment of Title, is sufficient to assure cure of the Objections. Any
amount so withheld will be placed in escrow with Title, pending such
cure. If Seller does not cure such Objections within sixty (60) days after
such escrow is established, Buyer may then cure such Objections and
charge the costs against the escrowed amount. The parties agree to
execute and deliver such documents as may be reasonably required by
Title, and Seller agrees to pay the charges of Title to create and administer
the escrow.
6.2.3. Waive the objections and proceed to close.
7. Operation Prior to Closing. During the period from the date of Seller's acceptance of this
Agreement until the Closing Date (the "Executory Period"), Seller shall operate and
maintain the Property in the ordinary course of business in accordance with prudent,
reasonable business standards, including the maintenance of adequate liability insurance.
Seller shall execute no contracts, leases or other agreements regarding the Property during
the Executory Period that are not terminable on or before the Closing Date, without the
prior written consent of Buyer, which consent may be withheld by Buyer at its sole
discretion.
8. Representations and Warranties bv Seller. Seller represents and warrants to Buyer as
follows:
8.1. Existence: Authority. Seller is duly organized, qualified and in good standing,
and has the requisite power and authority to enter into and perform this
Agreement and Seller's Closing Documents; such documents have been duly
authorized by all necessary action; such documents are valid and binding
obligations of Seller, and are enforceable in accordance with their terms.
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8.2. Environmental Laws. To the best of Seller's knowledge, no toxic or hazardous
substances or wastes, pollutants or contaminants (including, without limitation,
asbestos, urea formaldehyde, the group of organic compounds known as
polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude
oil and various constituents of such products, and any hazardous substance as
defined in any state, local or federal law, regulation, rule, policy or order relating
to the protection of the environment) (collectively, "Hazardous Substance") have
been generated, treated, stored, transferred from, released or disposed of, or
otherwise placed, deposited in or located on the Property, nor has any activity
been undertaken on the Property that would cause or contribute to the Property
becoming a treatment, storage or disposal facility within the meaning of, or
otherwise bring the Property within the ambit of, any state, local or federal law,
regulation, rule, policy or order relating to the protection of the environment. To
the best of Seller's knowledge, there has been no discharge, release or threatened
release of Hazardous Substances from the Property. To the best of Seller's
knowledge, there are no Hazardous Substances or conditions in or on the Property
that may support a claim or cause of action under any state, local or federal law,
regulation, rule, policy or order relating to the protection of the environment. The
Property is not now, and to the best knowledge of Seller never has been, listed on
any list of sites contaminated with Hazardous Substances, nor used as landfill,
dump, disposal or storage site for Hazardous Substances.
8.3. FIRPTA. Seller is not a "foreign person", "foreign partnership", "foreign trust" or
"foreign estate", as those terms are defined in Section 1445 of the Internal
Revenue Code.
8.4. Wells and Individual Sewage Treatment Systems. The Seller certifies and
warrants that the Seller does not know of any "Wells" on the described Property
within the meaning of Minn. Stat. ~ 1031 or "Individual Sewage Treatment
Systems" on the described Property within the meaning of Minn. Stat. ~ 115.55.
This representation is intended to satisfy the requirements of those statutes.
8.5. Storage Tanks. No above ground or underground tanks are located in or about the
Property, or have been located under, in or about the Property and have
subsequently been removed or filled. To the extent storage tanks exist on or
under the Real Property, such storage tanks have been duly registered with all
appropriate regulatory and governmental bodies, and otherwise are in compliance
with applicable federal, state and local statutes, regulations, ordinances and other
regulatory requirements.
8.6. Reports. Seller has delivered to Buyer copies of all environmental reports and
studies relating to the Property which are in the possession of Seller.
8.7. No Conflict or Lien. Neither the execution or delivery of this Agreement nor the
consummation of the transaction as contemplated herein will conflict with or
- 6 -
/51
result in a breach of any contract, license or undertaking to which Seller is a party
or by which any of its property is bound, or constitute a default thereunder or,
except as contemplated herein, result in the creation of any lien or encumbrance
upon the Property.
8.8. No Proceedings. No legal or administrative proceeding is threatened or pending
against Seller which would adversely affect its right to convey the Real Property
to Buyer as contemplated in this Agreement. There are no condemnation or
eminent domain proceedings pending or threatened with respect to the Real
Property and there are no legal or administrative proceedings pending or
threatened affecting the Real Property.
8.9. Utilities. Water, gas, telephone, electricity and storm sewer utilities are currently
available on or near the Real Property and with the capacity to handle the
proposed improvement without additional cost to Buyer.
8.10. Private Restrictions. There are no and will be no private restrictions that affect
the uses which may be made of the Real Property by Buyer, including, but not
limited to, the size or cost of any building or structures to be placed on the Real
Property, limitations on use or restrictions in regard to fences, roofs, garages and
heights of buildings or structures to be placed on the Real Property, agreements to
subject architectural plans to an association or other group, provisions requiring
the joining with others in group actions, or restrictions imposed on the Real
Property due to its historical significance.
8.11. Additional Interests. There are no property interests or other improvements that
are owned by Seller and which are necessary or useful for the operation of the
Property that are not being conveyed pursuant to this Agreement.
Seller will indemnify Buyer, its successors and assigns, against, and will hold Buyer, its
successors and assigns, harmless from, any expenses or damages, including reasonable
attorneys' fees, that Buyer incurs because of the breach of any of the above
representations and warranties, whether such breach is discovered before or after Closing.
Consummation of this Agreement by Buyer with knowledge of any such breach by Seller
will not constitute a waiver or release by Buyer of any claims due to such breach.
9. Condemnation. If eminent domain proceedings are threatened or commenced against all
or any part of the Property, Seller shall immediately give notice to Buyer, and Buyer shall
have the right to terminate this Agreement and receive back all Earnest Money by giving
notice within thirty (30) days after Seller's notice. If Buyer shall fail to give the notice,
then the parties shall proceed to Closing, and Seller shall assign to Buyer all rights to
appear in and receive any award from such proceedings.
10. Broker's Commission. Seller agrees to pay any and all broker's commISSIons in
connection with this transaction, if any, and agree to indemnify and hold the Buyer
- 7 -
15t
harmless from all claims, damages, costs or expenses of or for any other such fees or
commissions resulting from their actions or agreements regarding the execution or
performance of this Agreement, and will pay all costs of defending any action or lawsuit
brought to recover any such fees or commissions incurred by the other party, including
reasonable attorneys' fees.
11. Assignment. Either party may assign its rights under this Agreement before or after the
Closing. Any such assignment will not relieve such assigning party of its obligations
under this Agreement.
12. Survival. All of the terms of this Agreement and warranties and representations herein
contained shall survive and be enforceable after the Closing.
13. Notices. Any notice required or permitted hereunder shall be given by personal delivery
upon an authorized representative of a party hereto; or if mailed in a sealed wrapper by
United States registered or certified mail, return receipt requested, postage prepaid; or if
transmitted by facsimile copy followed by mailed notice; or if deposited cost paid with a
nationally recognized, reputable overnight courier, properly addressed as follows:
Ifto Buyer:
The Beard Group, Inc.
750 2nd Street NE, Suite 100
Hopkins, MN
Attention: Ronald G. Mehl
Facsimile #: (952) 930-0631
If to Seller:
The City of Centerville
City Hall
1880 Main Street
Centerville, MN 55038-9794
United States of America
Attention: John Meyer
Facsimile #: (651) 429-3232 Ext. 11
Notices shall be deemed effective on the earlier of the date of receipt or the date of
deposit, as aforesaid; provided, however, that if notice is given by deposit, the time for
response to any notice by the other party shall commence to run one business day after
any such deposit. Any party may change its address for the service of notice by giving
notice of such change ten (10) days prior to the effective date of such change.
14. Miscellaneous. The paragraph headings or captions appearing in this Agreement are for
convenience only, are not a part of this Agreement, and are not to be considered in
interpreting this Agreement. This written Agreement constitutes the complete agreement
between the parties and supersedes any prior oral or written agreements between the
parties regarding the Property. There are no verbal agreements that change this
Agreement, and no waiver of any of its terms will be effective unless in writing executed
- 8 -
;j~
1----- --
by the parties. This Agreement binds and benefits the parties and their successors and
assigns. This Agreement has been made under the laws of the State of Minnesota and
such laws will control its interpretation.
15. Remedies. If Buyer defaults under this Agreement, Seller's sole right will be to terminate
this Agreement pursuant to Minnesota Statute Section 559.21 and obtain the Earnest
Money as liquidated damages and the Buyer will not be liable for damages or specific
performance. If Seller defaults under this Agreement, the Earnest Money and the
Additional Earnest Money, if any, shall be returned to Buyer, and Buyer shall recover as
damages from Seller all of Buyer's out-of-pocket costs and fees, including without
limitation, attorneys' fees, accountants' fees and other consultants' fees incurred by Buyer
in preparing and negotiating this Agreement, preparing for the closing, obtaining
financing commitments, investigating the status, title and condition of the Property, and
other similar and reasonable costs and expenses, or shall recover specific performance of
this Agreement.
16. Withdrawal of Offer. This Agreement shall be deemed to be withdrawn, unless accepted
by Seller, and a fully executed counterpart of this Agreement returned to Buyer on or
before June 15,2008.
- 9 -
IOIJ
Seller and Buyer have executed this Agreement as of the date first written above.
Date of Signature
Date of Signature
SELLER:
City of Centerville, Minnesota
By:
, 2008
Its
Seller's Tax J.D. Number
BUYER:
The Beard Group, Inc.
By:
, 2008
Its
Buyer's Tax J.D. Number
- 10-
1St)
ESCROW RECEIPT
The undersigned, Commercial Partners Title, LLC ("Escrow Agent"), acknowledges receipt of
Ten Thousand and Noll 00 Dollars ($5,000.00) (the "Deposit") to be held by it pursuant to the
Purchase Agreement to which this Escrow Receipt is attached. Escrow Agent agrees to hold the
Deposit in accordance with the terms of the Purchase Agreement and disburse the same strictly in
accordance with such terms. Escrow Agent shall invest the Deposit in such interest-bearing
accounts or instruments as shall be approved by both Buyer and Seller. Interest shall accrue for
the benefit of Buyer.
Seller and Buyer represent that their respective Tax LD. Numbers are as follows: Seller,
; Buyer,
Escrow Agent shall have no responsibility for any decision concerning performance or
effectiveness of the Purchase Agreement or to resolve any disputes concerning the Purchase
Agreement. Escrow Agent shall be responsible only to act in accordance with the joint and
mutual direction of both Seller and Buyer, or in lieu thereof, the direction of a court of competent
jurisdiction. Seller and Buyer undertake to hold Escrow Agent harmless from all claims for
damages arising out of this Escrow Receipt and do hereby agree to indemnify Escrow Agent for
an costs and expenses in connection with this escrow, including court costs and attorneys' fees,
except for Escrow Agent's failure to account for the funds held hereunder, or acting in conflict
with the terms hereof.
The fees and charges ofthe Escrow Agent shall be paid by Buyer.
ESCROW AGENT:
Commercial Partners Title, LLC
By
Its
%J,
SELLER:
City of Centerville, Minnesota
By
Its
BUYER:
The Beard Group, Inc.
By
Its
15g
EXHIBIT A
(Legal Description)
~5r
9219 East River Road NW
Minneapolis, MN 55433
Phone 763-786-1445
Fax 763-786-1030
www.prosourcelech.com
p..osg!!!:~.
June 9, 2008
Mr. Mark Statz, P.E.
City Engineer-City of Centerville
C/o Bonestroo
2335 Highway 36 West
S1. Paul, Minnesota 55113
Re: Scope of Work and Cost Estimate to Conduct a Soil Vapor Survey
Main Street Redevelopment Corridor
Centerville, Minnesota
Dear Mr. Statz:
As you are aware, ProSource Technologies, Inc. (Pro Source) has been retained by
Anoka County and their contractor, North Pine Aggregate, Inc. to provide soil
management and oversight services during CSAH 14 road reconstruction and utility
upgrade. As requested, we have prepared a Scope of Work and Cost Estimate to
conduct a Soil Vapor Survey (SVS) for the corridor extending along CSAH 14 (Main
Street) located in Centerville, Minnesota. This corridor lies from the western end of
1695 Main Street in the west, extending eastward to Progress Road. A SVS has been
requested to assess the potential for vapor migration in the proposed redevelopment
area resulting from petroleum contamination encountered along this corridor. Our
Proposal is based upon our meeting on June 3rd, 2008. The following sections discuss
the Scope of Work and Cost Estimate associated to complete this work.
Scone of Work
Backgroulld
According to research and previous knowledge of the area, there are two Minnesota
Pollution Control Agency (MPCA) Leaking Underground Storage Tank (LUST) leak
sites located at within this cOlTidor.
. 1724 Main Street: This is currently a closed Leak site; however, based on recent
utility work conducted in the area, ProSource also understands that this leak site
is currently under additional MPCA review, with the potential of reopening of
the file.
. 1695 Main Street: This site also has been issued a Leak file as a leaking fuel-oil
UST was discovered during the above-mentioned utility work. ProSource is
planning to bid on performing the required MPCA site investigation to address
this leak.
. 7095 Centerville Road: During the utility reconstruction in this area,
contamination was found on this Property. However due to the absence of a
UST, the MPCA LUST Program has yet to issue a Leak file.
4~4-
Environmental. Right of Way · Engineering
Equal Opporlunity Employer
Scope of Work and Cost Estimate
Soil Vapor Survey
Main Street Corridor Development - Centerville, Minnesota
Page 2
Site File Review
In conjunction with the MPCA determination of site file status at the 1724 Main Street Property,
Pro Source will perform a detailed file review of the available environmental reports on file with the
MPCA, in an effort to obtain additional information pertaining to the petroleum release and investigative
and corrective actions taken. Results of the file review will be conducted prior to start of field work and
incorporated into the Soil Vapor Survey Report.
Subsurface Investigation
Weare proposing the installation of up to ten soil vapor probes along the corridor. Three probes will be
advanced in the right-of-way north of Main Street, spaced at approximately 125 foot intervals. An
identical set of three will also be advanced along the south right-of-way of Main Street. Based on site
reconnaissance, most of these areas are unpaved. If utility and traffic patterns allow, ProSource also
recommends the advancement of up to two borings through the paved roadway to address conditions
below the impervious surfaces. One of the remaining two vapor borings is proposed to be advanced west
of Centerville road and south of Main Street. The final boring would be proposed in what is currently
the parking area located between Kelly's Bar and the Noble Welding building. ProSource assumes that
access to these areas will be granted/provided by the City of Centerville (City). If some of these areas
are not accessible, boring locations will be adjusted accordingly.
Soil vapor probes are proposed to be advanced to 14 feet below grade to assess the soil vapor conditions
through the corridor using direct push technology. This method utilizes a small drill rig which employs a
hydraulically-powered probe that utilizes static force and percussion to advance sampling tools into the
subsurface for the collection of soil vapor samples. Upon advancement, the tubing used for sampling
will be purged and immediately connected to a sampling canister under a pre-determined vacuum. Soil
vapor sampling will be conducted in accordance with MPCA Guidance Document 4-0Ia "Vapor
Intrusion Assessments Performed During Site Investigations".
Soil gas samples will be submitted to a MPCA certified laboratory for chemical analysis using the
Environmental Protection Agency (EPA) TO-I5 method for volatile organic compounds (VOC's) in the
Minnesota Soil Gas List.
Soil Vapor Survey Report
Following completion of the above-identified tasks and upon receipt of the analytical testing results,
ProSource will prepare a Soil Vapor Survey Report. In short, the report will include:
. A discussion of field methods and results of the subsurface investigation;
. Results and discussion of the laboratory analytical data, site figures, tables, etc;
. Recommendations and conclusions as to whether additional work will be necessary at the Site;
and
. Applicable tables, figures and supporting data (i.e. field forms, analytical reports, etc.).
ProSource Technologies, Inc.
~tiJ
June 9, 2008
Scope of Work and Cost Estimate
Soil Vapor Survey
Main Street Corridor Development - Centerville, Minnesota
Page 3
Development RespOllse Action Plan
It is our understanding that the City has initiated a planning process to redevelop the area adjacent to the
corridor into a mix of commercial buildings with underground parking, townhomes and multi-family
dwellings. As petroleum contamination has already been identified on multiple Properties, we strongly
recommend that a Development Response Action Plan (DRAP) be prepared and submitted to the MPCA
Petroleum Brownfields Program (PBP) for approval. Concurrent with the submittal of the DRAP, the
City will need to prepare an application to enter into the PBP. The PBP was established to assist
voluntary parties who address environmental concerns, and in exchange, they can issue Letters of
Assurance to limit future liabilities as part of Site redevelopment activities.
Specifically, we will request from the PBP:
. A General Liability Letter on behalf of the City
. Tank Removal Verification Letter for former UST(s)
. File Closure Confirmation Letter(s) for Sites closed through the LUST Program.
. Review of existing documentation
. Review and Approval of the DRAP
ProSource will prepare the DRAP to address handling contaminated soil and/or ground water that may
be encountered during redevelopment/construction activities. The DRAP will be completed in
accordance with the MPCA PBP Guidelines. Specifically, the DRAP will discuss:
. Summary of site history and previous environmental investigations;
. Anticipated Response Actions to address the presence of contaminated soil and/or ground
water;
. Methods and procedures to implement Response Actions;
. Confirmation sampling and analysis;
. Site restoration plan;
. Contingency planning in the event an unknown condition is encountered; and
. A description of the proposed development and tentative schedule.
Cost Estimate
Our cost estimate to complete the Soil Vapor Survey and prepare the DRAP is $11,196. If additional
costs are incurred by completing work outside the scope of this proposal, those costs will be brought to
your attention immediately upon discovery and additional work may be completed per your approval.
The costs below include labor, equipment, subcontractors, and expenses related to this Scope of Work.
Soil Vapor Survey, File Review and Reporting:
Prepare PB Application, DRAP and Liaison with MPCA:
Total:
$ 8,830
$ 2366
$ 11,196
JtL
ProSource Technologies, Inc.
June 9, 2008
Scope of Work and Cost Estimate
Soil Vapor Survey
Main Street Corridor Development - Centerville, Minnesota
Page 4
If Pro Source is selected to perform the site investigation at 1695 Main Street, as well as further
investigation at 1724 Main Street, and provided that parties associated with the above-mentioned
properties agree, there is the opportunity for information sharing in these multiple investigations.
Information sharing may allow for reduced investigation costs to the City.
Closine:
Once authorized, Pro Source would be able to initiate work immediately. We appreciate the opportunity
to submit this Scope of Work and Cost Estimate. If you have any questions or comments, please feel
free to call me at (763) 786-1445 or email atjneisse@prosourcetech.com. Thank you for your time and
consideration.
Sincerely,
ProSource Technologies, Inc.
tJMIt~
Jeffrey M. Neisse
Staff Hydrogeologist
Jam B. Crowl III, P.G.
Senior Hydrogeologist
.t!Jd
ProSource Technologies, Inc.
June 9, 2008
I --
Scope of Work and Cost Estimate
Soil Vapor Survey
MaIn Street Corridor Development - Centerville, Minnesota
Page 5
STANDARD TERMS AND CONDITIONS
1. STANDARD OF CARE. Services shall be perfonned in accordance with the standard of professional practice
ordinarily exercised by the applicable profession at the time and within the locality where the Services are perfonned.
Professional Services are not subject to, and ProSource can not provide, any warranty or guarantee, express or implied,
including warranties or guarantees contained in any unifonn commercial code. Any such warranties or guarantees contained
in any purchase orders, requisitions or notices to proceed issued by a client are specifically objected to.
2. CHANGE OF SCOPE. The scope of Services set forth in this Agreement is based on facts known at the time of
execution of this Agreement, including, if applicable, infonnation supplied by Client. For some projects the scope may not be
fully definable during the initial phases. As the Project progresses, facts discovered may indicate that scope must be
redefined. ProSource will promptly provide Client with an amendment to this Agreement to recognize such change, which
shall be deemed approved if not objected to within 15 days of receipt by Client.
3. SAFETY. ProSouree has established and maintains corporate programs and procedures for the safety of its employees.
Unless specifically included as a service to be provided as a service under this Agreement, ProSource specifically disclaims
any authority or responsibility for general job site safety and safety of persons other than Pro Source employees.
4. DELAYS. If events beyond the control of Client or ProSource, including, but not limited to, fire, flood, explosion, riot,
strike, war, process shutdown, acts of God or the public enemy, and act or regulation of any government agency, result in
delay to any schedule established in this Agreement, such schedule shall be amended to the extent necessary to compensate
for such delay. In the event such delay exceeds 90 days, ProSource shall be entitled to an equitable adjustment in
compensation.
In the event that the project is delayed by Client and such delay exceeds 30 days, ProSource shall be entitled to an extension
of time equal to the delay and an equitable adjustment in compensation.
5. TERMINATION / SUSPENSION. Either party may tenninate this Agreement upon 30 days written notice to the
other party. Client shall pay ProSource for all Services, including any expenses, incurred prior to tennination.
In the event that either party defaults in its obligations under this Agreement (including Clients obligation to make the
payments required hereunder), the non-defaulting party may, after 7 days written notice stating its intention to suspend
performance under the Agreement if cure of such default is not commenced and diligently continued, and failure of the
defaulting party to commence cure within such time limit and diligently continue, suspend performance under this Agreement.
6. OPINIONS OF CONSTRUCTION COST. Any opinion of construction costs prepared by ProSource is
supplied for the general guidance of the Client only. Since ProSource has no control over the competitive bidding or market
conditions, ProSource cannot guarantee the accuracy of such opinions as compared to contract bids or actual costs to client.
7. RELATIONSHIP WITH CONTRACTORS. ProSource shall serve as Client's professional representative for
the Services, and may make recommendations to Client concerning actions relating to Client's contractors, but ProSource
specifically disclaims any authority to direct or supervise the means, methods, techniques, sequences, or procedures or
construction selected by Client's contractors.
8. CONSTRUCTION/CONTRACTOR OVERSIGHT. For projects involving construction or contractor
oversight, Client acknowledges that under generally accepted professional practice, interpretations of construction documents
or field plans in the field are normally required, and that performance of construction-related services by the design
professional for the project pemlits errors or omissions to be identified and corrected at comparatively low cost. Client agrees
to hold ProSource harmless from any claims resulting from performance of construction-related or contractor oversight
services by persons other than Pro Source.
;/'e
ProSource Technologies, Inc.
June 9, 2008
Scope of Work and Cost Estimate
Soil Vapor Survey
Main Street Corridor Development - Centerville, Minnesota
Page 6
9. INSURANCE. Pro Source will maintain insurance coverage for Comprehensive General, Automobile and Worker's
Compensation in amounts in accordance with legal, and ProSource's business, requirements. Certificates evidencing such
coverage will be provided to Client upon request.
10. INDEMNITIES. To the fullest extent permitted by law, ProSource shall indemnify and save harmless Client from and
against loss, liability, and damages sustained by Client, its agents, employees, and representatives by reason of injury or death
to persons or damage to tangible property to the extent caused directly by the willful misconduct or failure to adhere to the
standard of care described in Paragraph 1 above of Pro Source, its agent or employees.
To the fullest extent permitted by law, Client shall defend, indemnify, and save harmless ProSource, its agents, employees,
and representatives from and against loss, liability, and damages (including reasonable litigation costs) arising from or relating
to claims for injury or death to persons, damages to tangible property, or other losses, alleged to be caused by any of the
following: (a) any substance, condition, element, or material or any combination of the foregoing (i) produced, emitted or
released from Project (ii) tested by ProSource under this Agreement, or (Hi) used or incorporated by ProSource in the
Services; or (b) operation or management of the Project. Client also agrees to require its construction contractor, if any, to
include ProSource as an indemnitee under indemnification obligation to Client.
11. LIMITATIONS OF LIABILITY. No employee or agent of Pro Source shall have individual liability to Client.
Client agrees that, to the fullest extent permitted by law, Pro Source's liability to Client for any and all injuries, claims, losses,
expenses or damages whatsoever arising out of or in any way related to the Project or this Agreement from any causes
including, but not limited to, ProSource's negligence, errors, omissions, strict liability, or breach of contract shall not exceed
the total compensation received by Pro Source under this Agreement. If Client desires a limit of liability greater than that
provided above, Client and ProSource shall include in Part III of this Agreement the amount of such limit and the additional
compensation to be paid to ProSource for assumption of such additional risk.
IN NO EVENT AND UNDER NO CIRCUMSTANCES SHALL PROSOURCE BE LIABLE TO CLIENT FOR
CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES.
12. ACCESS. Client shall provide Pro Source safe access to any premises necessary for Pro Source to provide services.
13. REUSE OF PROJECT DELIVERABLES. Reuse of any documents or other deliverables, including electronic
media, pertaining to the Project by Client for any purpose other than that for which such documents or deliverables were
originally prepared, or alteration of such documents or deliverables without written verification or adaptation by ProSource
for the specific purpose intended, shall be at the Client's risk. Client agrees to defend, indemnify, and hold harmless
ProSource from all claims, damages, and expenses (including reasonable litigation costs), arising out of such reuse or
alteration by Client or others acting through Client.
14. AMENDMENT. This Agreement, upon execution by both parties hereto, can be amended only by a written instrument
signed by both parties.
15. ASSIGNMENT. Except for assignments (a) to entities which control, or are controlled by, the parties hereto or (b)
resulting from operation of law, the rights and obligations of this Agreement cannot be assigned by either party without
written permission of the other party. This Agreement shall be binding upon and inure to the benefit of any permitted assigns.
16. STATUTES OF LIMITATION. To the fullest extent permitted by law, parties agree that, except for
indemnification, the time period for bringing claims under this Agreement shall expire one year after Project completion.
17. PREVAILING PARTY LITIGATION COSTS. In the event any actions are brought to enforce this
Agreement, the prevailing party shall be entitled to collect its litigation costs from the other party.
~f'
Pro Source Technologies, Inc.
June 9, 2008
I-
I
I
I
Scope of Work and Cost Estimate
Soil Vapor Survey
Main Street Corridor Development - Centerville, Minnesota
Page 7
18. NO WAIVER. No waiver by either party of any default by the other party in the perfonnance of any particular section
of this Agreement shaH invalidate any other section of this Agreement or operate as a waiver of any future default, whether
like or different in character.
19. NO THIRD-PARTY BENEFICIARY. Nothing contained in this Agreement, nor the performance of the parties
hereunder, is intended to benefit, nor shall inure to the benefit of, any third party, including Client's contractors, ifany.
20. SEVERABILITY. The various terms, provisions and covenants herein contained shall be deemed to be separate and
severable, and the invalidity or unenforceability of any of them shall not affect or impair the validity or enforceability of the
remainder.
21. AUTHORITY. The persons signing this Agreement warrant that they have the authority to sign as, or on behalf of, the
party for whom they are signing.
ProSource Technologies, Inc.
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Contamination Cleanup and Investigation Grant Program Information
Page 1 of 1
~.
Department of Employment
. ... 51 V liineSdid
Contamination Cleanup and Investigation Grant Program
Information
Investigation and RAP Development grants pay for up to 75% of the costs of Phase I, Phase II
investigation and/or RAP preparation (awards not to exceed $50,000). Contamination Cleanup grants
pay for up to 75% of the costs of cleaning up contaminants defined under M.S. 115B.02, or petroleum
contamination that is not eligible for reimbursement under the Minnesota Petrofund. Eligible cleanup
costs do not include RAP implementation incurred before the award date of a grant unless the
application for the grant was submitted within 180 days after the RAP was approved by the MPCA.
Cleanup grant applicants must have an MPCA-approved RAP and must meet a pre-cleanup land value
vs. cleanup cost criteria. Both applications require a 25% local match, participation in the Metropolitan
Council's Local Housing Incentives Programs for Twin Cities Metro area applicants, and the serious
expectation that the site will be redeveloped.
Applications are ranked on the following criteria:
. Tax base increase resulting from the cleanup and development of the site.
. Social value of the cleanup, demonstrated by the number of jobs created through cleanup and
redevelopment.
. An MPCA evaluation of the reduced threat to public health and the environment as a result of
cleanup.
. Likelihood that the site will be cleaned up without government money.
. Amount of the cleanup cost.
. Commitment of local municipality to pay for the local match
4;.
http://www.deed.state.mn.us/Community/contam/Proglnfo.htm
6/11/2008
MAY 2008
CITY OF CENTERVILLE
CITY COUNCIL REPORT
1. Financial Statement & Budget Report
2. Bank Reconciliation & Fund Cash Balance
Prepared By: John W. Meyer
Finance Director
/4f.Rudtted
General Fund
Monthly Financial Report
Month Ended May 31, 2008
i..%Of~t.
! . .~t..7!%
MTD YTD Budget Variance % of Budget
5/31/08 2008 2008 +(-) Used
Revenues:
Property Taxes 0.00 0.00 1,985,600.00 1,985,600.00 0.00%
Other Taxes & Assessments 0.00 0.00 50,000.00 50,000.00 0.00%
Licenses & Permits 18,196.12 57,226.13 170,000.00 112,773.87 33.66%
Building Inspection 17,032.12 31,880.41 111,000.00 79,119.59 28.72%
Fines & Forfeits 2,067.89 11,895.35 35,000.00 23,104.65 33.99%
Intergovernmental 0.00 4,000.00 120,000.00 116,000.00 3.33%
Fire Relief Aid 0.00 4,000.00 95,000.00 91,000.00 4.21%
Charges for Services 0.00 46.25 2,000.00 1,953.75 2.31%
Interest Earnings 406.98 20,288.77 60,000.00 39,711.23 33.81 %
Miscellaneous Revenues 0.25 108.25 19,000.00 18,891.75 0.57%
Refunds & Reimbursements 102.75 1,175.87 0.00 (1,175.87) 0.00%
Fund Balance 0.00 0.00 0.00 0.00 0.00%
Total Revenues 20,773.99 94,740.62 2,441,600.00 2,346,859.38 3.88%
Expenditures:
Current
General Government
Mayor and Council 2,612.76 10,972.20 35,000.00 24,027.80 31.35%
Elections 0.00 31.31 7,000.00 6,968.69 0.00%
Planning & Zoning 122.50 6,096.94 10,000.00 3,903.06 60.97%
Administration 46,940.46 159,270.56 403,000.00 243,729.44 39.52%
Financial Administration 0.00 0.00 13,500.00 13,500.00 0.00%
Assessing 0.00 0.00 19,500.00 19,500.00 0.00%
Legal 0.00 9,921.04 70,000.00 60,078.96 14.17%
City Hall 1,757.66 10,242.92 40,000.00 29,757.08 25.61 %
Total General Government 51,433.38 196,534.97 598,000.00 401,465.03 32.87%
Public Safety
Police Protection 0.00 239,422.79 706,100.00 466,677.21 33.91 %
Fire Protection 4,000.00 30,627.50 202,000.00 171,372.50 15.16%
Building Inspection 10,219.68 54,193.96 160,000.00 105,806.04 33.87%
Electrical Inspection 0.00 64.34 7,000.00 6,935.66 0.92%
Civil Defense 0.00 0.00 3,400.00 3,400.00 0.00%
Animal Control 136.92 963.78 2,000.00 1,036.22 48.19%
Total Public Safety 14,356.60 325,272.37 1,080,500.00 755,227.63 30.10%
Public Works
Public Works 26,108.69 83,409.81 180,000.00 96,590.19 46.34%
Engineering Services 4,024.62 7,407.15 20,000.00 12,592.85 0.00%
Recycling 1,301.23 1,764.54 6,000.00 4,235.46 29.41%
Streets 1,681.46 2,473.76 83,000.00 80,526.24 2.98%
Street Lighting 2,174.04 11,027.36 32,000.00 20,972.64 34.46%
Total Public Works 35,290.04 106,082.62 321,000.00 214,917.38 33.05%
6/11/2008
8:47 AM
budget GF 2008 may
,uu-t-l4t1Au"
MTD YTD Budget Variance % of Budget
5/31/08 2008 2008 +(.) Used
Culture and Recreation
Park/Rec. Committee 0.00 260.00 4,000.00 3,740.00 6.50%
Park/Rec. Programs 0.00 10,838.85 16,000.00 5,161.15 67.74%
Park Maintenance 18,104.57 28,857.64 68,000.00 39,142.36 42.44%
Total Culture and Recreation 18,104.57 39,956.49 88,000.00 48,043.51 45.41%
Community Development 495.33 495.33 0.00 (495.33) 0.00%
Economic Development
Economic Development 0.00 8,547.05 6,500.00 (2,047.05) 131.49%
EDC - Frozen Fete Des Lacs 0.00 0.00
EDC - Business Directory 0.00 0.00
EDC - Business Promotion 0.00 0.00
EDC - Miscellaneous 0.00 0.00
Tax Abatement 0.00 6,335.21
Total Economic Development 0.00 8,547.05 6,500.00 (2,047.05) 131.49%
Unallocated
Miscellaneous 0.00 0.00 0.00 0.00 0.00%
Refunds & Reimbursements 0.00 0.00 0.00 0.00 0.00%
City Summer Festival 0.00 0.00 20,000.00 20,000.00 0.00%
Total Miscellaneous 0.00 0.00 20,000.00 20,000.00 0.00%
Total Current Expenditures 119,679.92 676,888.83 2,114,000.00 1,437,606.50 32.02%
Capital Outlay
General Government 0.00 11,104.76 23,000.00 11,895.24 48.28%
Public Safety 0.00 0.00 5,000.00 5,000.00 0.00%
Streets and Highways 1,853.98 427,030.67 95,000.00 (332,030.67) 449.51%
Culture and Recreation 9,200.58 9,200.58 0.00 (9,200.58) 0.00%
Total Capital Outlay 11,054.56 447,336.01 123,000.00 (324,336.01 ) 363.69%
TOTAL EXPENDITURES 130,734.48 1,124,224.84 2,237,000.00 1,113,270.49 50.26%
EXCESS (DEFICIT) OF REVENUES (109,960.49) (1,029,484.22) 204,600.00 1,233,588.89 N/A
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating Transfer In 0.00 36,548.03 0.00 (36,548.03) N/A
Operating Transfer Out 0.00 0.00 (204,600.00) (204,600.00) N/A
Sale of General Fixed Assets 0.00 0.00 0.00 0.00 N/A
TOTAL OTHER FINANCING 0.00 36,548.03 (204,600.00) (241,148.03) N/A
SOURCES (USES)
EXCESS (DEFICIENCY) OF (109,960.49) (992,936.19) 0.00 992,440.86
REVENUE AND OTHER FINANCING
SOURCES OVER EXPENDITURES
AND OTHER FINANCING USES
PREPARED BY: JOHN W. MEYER, FINANCE DIRECTOR
6/11/2008
8:47 AM
budget GF 2008 may
UJ4Itudtted
Sewer Fund
Monthly Financial Report
Month Ended May 31, 2008
% of year -
41.67%
MTD YTD Budget Variance % of Budget
5/31/08 2008 2008 +(-) Used
Operating Revenue:
Charges for Services 46,351.31 141,295.47 350,000.00 208,704.53 40.37%
Total Operating Revenue 46,351.31 141,295.47 350,000.00 208,704.53 40.37%
Operating Expenses:
Salaries and Benefits 7,955.00 31,144.91 75,000.00 43,855.09 41.53%
Professional Services 6,356.89 9,402.99 30,000.00 20,597.01 31.34%
Supplies 441.00 3,234.78 10,000.00 6,765.22 32.35%
MCES Disposal Charges 13,530.63 81,183.78 200,000.00 118,816.22 40.59%
Utilities 249.73 1,140.32 5,000.00 3,859.68 22.81%
Depreciation 0.00 0.00 100,000.00 100,000.00 0.00%
Total Operating Expenses 28,533.25 126,106.78 420,000.00 293,893.22 30.03%
OPERA TING INCOME 17,818.06 15,188.69 (70,000.00) (85,188.69) 0.00%
Nonoperating Revenue (Expense)
Interest on Investments 613.61 30,589.54 70,000.00 39,410.46 43.70%
Special Assessments 0.00 0.00 0.00 0.00 0.00%
Hook up Fees and Unit Charges 0.00 0.00 0.00 0.00 0.00%
Other Equipment 0.00 (400,852.00) 0.00 400,852.00 0.00%
Interest Expense 0.00 0.00 0.00 0.00 0.00%
Refunds & Reimbursements Rev 0.00 0.00 0.00 0.00 0.00%
Refunds & Reimbursements Exp 0.00 (314.00) 0.00 314.00 0.00%
Total Nonoperating Revenue 613.61 (370,576.46) 70,000.00 440,576.46 -529.39%
(Expense)
INCOME BEFORE OPERATING 18,431.67 (355,387.77) 0.00 355,387.77 #DIV/O!
TRANSFERS
OPERATING TRANSFERS OUT 0.00 0.00 0.00 0.00 0.00%
NET INCOME 18,431.67 (355,387.77) 0.00 355,387.77 #DIV/O!
CREDIT FOR DEPRECIATION ON 0.00 0.00 0.00 0.00 0.00%
CONTRIBUTED ASSETS
NET INCREASE IN RETAINED 18,431.67 (355,387.77) 0.00 355,387.77 #DIV/OI
EARNINGS
PREPARED BY:
JOHN MEYER
FINANCE DIRECTOR
6/11/2008
9:30 AM
budget report sewer 08
(,.(JII,IIudtted
Water Fund
Monthly Financial Report
Month Ended May 31, 2008
% of year-
41.67%
MTD YTD Budget Variance % of Budget
5/31/08 2008 2008 +(.) Used
Operating Revenue:
Charges for Services 27,161.80 89,378.64 330,000.00 240,621.36 27.08%
Total Operating Revenue 27,161.80 89,378.64 330,000.00 240,621.36 27.08%
Operating Expenses:
Salaries and Benefits 7,914.31 30,791.71 75,000.00 44,208.29 41.06%
Professional Services 0.00 0.00 40,000.00 40,000.00 0.00%
Supplies 17,338.35 34,561.31 30,000.00 (4,561.31) 115.20%
Other Services and Charges 1,524.00 3,048.00 40,000.00 36,952.00 7.62%
Utilities 616.96 3,952.89 5,000.00 1,047.11 79.06%
Depreciation 0.00 0.00 155,000.00 155,000.00 0.00%
Total Operating Expenses 27,393.62 72,353.91 345,000.00 272,646.09 20.97%
OPERATING INCOME (231.82) 17,024.73 (15,000.00) (32,024.73) -113.50%
Nonoperating Revenue (Expense)
Interest on Investments 230.23 7,891.41 15,000.00 7,108.59 52.61%
Special Assessments 0.00 0.00 0.00 0.00 0.00%
Hook up Fees and Unit Charges 2,075.00 4,188.00 0.00 (4,188.00) 0.00%
Other Equipment 0.00 (213,085.80) 0.00 213,085.80 0.00%
Interest Expense 0.00 0.00 0.00 0.00 0.00%
Community Development Exp 0.00 0.00 0.00 0.00 0.00%
Refunds & Reimbursements Rev 20.22 53.83 0.00 (53.83) 0.00%
Refunds & Reimbursements Exp 0.00 0.00 0.00 0.00 0.00%
Total Nonoperating Revenue 2,325.45 (200,952.56) 15,000.00 215,952.56 -1339.68%
(Expense)
INCOME BEFORE OPERATING 2,093.63 (183,927.83) 0.00 183,927.83 0.00%
TRANSFERS
OPERATING TRANSFERS OUT 0.00 0.00 0.00 0.00 0.00%
NET INCOME 2,093.63 (183,927.83) 0.00 183,927.83 0.00%
CREDIT FOR DEPRECIATION ON 0.00 0.00 0.00 0.00 0.00%
CONTRIBUTED ASSETS
NET INCREASE IN RETAINED 2,093.63 (183,927.83) 0.00 183,927.83 0.00%
EARNINGS
PREPARED BY:
JOHN MEYER
FINANCE DIRECTOR
6/11/2008
9:48 AM
budget report water 08
------------
2008 MONTHLY CASH/GENERAL LEDGER BALANCE RECONCILIATIONS
2008 Interest 5/31/2008 6/30/2008 7/31/2008 8/31/2008
Bank Checking Statement Balance $ 1,080,097.20
Outstanding Deposits
Outstanding Checks $ (654,752.61)
Monthly Interest $ 8,623.59 $ 962.86
Net Checking Account Balance $ 425,344.59
Investments
Mainstreet Bank Flex CD
Beginning $ 1,574,215.68
Other T ansactions $ (687,000.00)
Monthly Interest $ 25,453.41
Ending Balance $ 887,215.68
Mainstreet Bank CD's
Beginning
1003302586 CDARS $ 600,000.00
1003111039 CDARS $ 675,000.00
1003154544 CDARS $ 1,149,561.76
1003638274 CDARS $ 350,000.00
Monthly Interest- CD $
Monthly Interest- CDARS $ 28,958.94
Ending Balance $ 2,774,561.76
Malnstreet Bank - Subtotal $ 4,087,122.03
Smith Barney
Smith Barney Money Fund
Beginning $ 363,469.89
Monthly Adjustments $ 15,942.90 $ 1,126.61
Other Transactions $ (363,000.00)
Ending Balance $ 1,596.50
Smith Barney Gov~ Bonds
Beginning $ 250,493.16
FHLB DTD 9/29/03
FHLB DTD 6/30/03 $ 411.37
FHLMC DTD 8/14/03
FHLMC DTD 6/30/03 $ 99,750.00
FNMA DTD 217/03
FNMA DTD 3/30/04 $ 0.12
FNMA DTD 4/8/04 $ 394.17
FHLB DTD 4/19/04 $
FHLM DTD 11/28/03
FHLM DTD 3/25/04
FHLM DTD 3/17/04 $ (62.50)
FHLM DTD 3/24/04 $ 150,000.00
FHLM DTD 2/27/03
Other Transactions
Annual Fair Market Adjustments $
Ending Balance $ 250,493.16
Smith Barney CD's
Beginning $ 281,100.00
Direct Merchants Bank
Capitol One Bank $ 90,000.00
Hemisphere Nall Bank
Lehman Brothers Bank $ 96,000.00
CIB Bank $ (900.00)
Compass Bank
1 sl. Nall Bk of Nevada
Cole Taylor Bank $ 96,000.00
Other Transactions
Monthly Adjustments $
Ending Balance $ 281,100.00
Smith Barney - Subtotal $ 533,189.66
Total Cashllnvestments Per Statement $ 4,620,311.69
General Ledger Cash Balance $ 4,620,311.69
Total Monthly Interest & Adjustments $ 78,978.84 $ 2,089.47
CITY OF CENTERVILLE
Cash Balances jwm
MTD MTD Current
FUND Oescr Account Debit Credit Balance
Last Dim 10100
GENERAL FUND G 101-10100 $21,855.05 $133,158.60 $909,203.58
21ST AVE IMP DEBT SERVICE G 308-10100 $0.00 $0.00 $44,898.07
JOINT POLICE STATION 2005A G 309-10100 $0.00 $0.00 $18,170.76
MUNI STREET IMP DEBT SERVICE G 312-10100 $128.69 $100.00 $458,483.67
PARKVIEW DEVELOPMENT DEBT SERV G 324-10100 $0.00 $0.00 $4,971.17
G.O. Bond Pheasant I 2001 G 327-10100 $0.00 $0.00 -$258.23
G.O. Bond Hunters Cross I 2000 G 336-10100 $21.72 $0.00 $75,441.04
PHEASANT MARSH II G.O. 2002 G 342-10100 $0.00 $0.00 -$571.01
PEL TIER PRESERVE DEBT SERVICE G 345-10100 $0.00 $0.00 $5,974.52
Hunters Crossing II G.O. Bond G 346-10100 $0.00 $0.00 -$36,908.10
GO Bond 2006A (Hunter3/back) G 348-10100 $80.01 $54,578.75 $222,792.11
GO Bond 2007A (CSAH 14, OM, F) G 349-10100 $54,520.74 $48,251.32 $148,312.29
PARK CAPITAL PROJECT G 402-10100 $23.39 $0.00 $81,163.37
MUNI STREET CAPITAL PROJECT G 412-10100 $0.00 $0.00 -$299.74
PEDESTRIAN TRAIL WAYS G 414-10100 $0.00 $0.00 $12,817.25
STORM WATER IMP PROJECTS G 415-10100 $4,565.57 $1,336.02 $397,014.72
HUNTERS CROSSING PHASE II G 446-10100 $0.00 $0.00 -$126.38
HUNTER'S CROSSING 3RD ADDN G 448-10100 $33.63 $0.00 $116,922.05
2006 Municipal Improvements G 449-10100 $0.00 $1,976.06 -$278,192.10
CSAH 14 Improvements 2007 G 450-10100 $345.03 $474,293.99 $414,890.60
2009 Street & Utility Improve G 451-10100 $0.00 $100.00 -$107,816.29
2007 Developments G 452-10100 $25.06 $4,061.69 $63,581.43
2007 Downtown Redevelopment G 453-10100 $26.32 $0.00 $98,354.11
WATER FUND G 601-10100 $29,564.63 $27,396.62 $602,087.80
SEWER FUND G 602-10100 $47,017.92 $28,586.25 $1,353,428.66
CABLE TV FUND G 614-10100 $0.00 $842.68 $15,976.34
Last Dim 10100 $158,207.76 $774,681.98 $4,620,311.69
$158,207.76 $774,681.98 $4,620,311.69
06/11/089:51 AM
Page 1
June 11, 2008
Dallas Larson
Administrator
City of CenteNille
1880 Main Street
CenteNille, MN 55038
Re: 2009 Street and Utility Improvements
Engineering Scope and Fee Proposal
City of CenteNille
Bonestroo File No.: 000616-7158-0
Dear Dallas:
Thus far, we have submitted two short letter proposals which were subsequently approved by the City
Council. The first authorized us to complete a Feasibility Report, the second authorized the Preliminary
SUNey and some initial design work. Those three tasks have been completed. Additionally, we have done
some work ancillary to these tasks as changes in the project scope have developed including exploration
and associated cost estimating for: the abandonment of lift Station 3, inclusion of water seNices between
the curb box and home, and well abanadonment. We have also prepared for, attended and performed
follow-up tasks for numerous public open houses, on-site neighborhood resident meetings, Council
workshops and official City Council meetings relating to the project.
Having now refined the scope of this project to something with which the council is comfortable, it may be
appropriate to authorize the preparation of plans and specifications along with some other pre-bid work.
This letter is to seNe as the scope and fee proposal for that work as described herein. If the Council wishes,
they could also authorize the advertisement for bids, or they could wait for that action until after the plans
have been prepared and approved.
Scope
The scope of the work leading up to the bid is divided into several categories.
2335 Highway 36 W
St. Paul, MN 55113
Tel 651-636-4600
Fax 651-636-1311
www.bonestroo.com
... Bonestroo
St. Paul
St. Cloud
Rochester
Milwaukee
Ch icago
Engineering
Planning
InnovatIOn
City of Centerville
2009 Street and Utility Improvements
Page 2
6/77/08
Preliminary Survey
This work was completed under previous authorizations. If additional work, not directly related to the
streets in the current scope is added to the project, additional survey information will need to be collected.
Structure Assessment
Sanitary sewer televising reports have been reviewed and used to assess repair needs for the pipe under
streets in the project area. The TV reports do not, however, give an adequate condition assessment of the
manholes. This work involves inspecting each manhole and documenting its condition, including any
problems with: inverts, benches, doghouses, barrel section joints, steps, rings and castings. This work will
be done from the street surface and will not involve entering the structure. The information gathered can
be cataloged and any needed repairs included in the scope of work. The same type of assessment should
be completed for the storm sewer structures.
Based on the current project scope, there are 72 sanitary manholes, 57 storm sewer manholes/catch basins
and 51 flared ends or weir structures to be inspected.
Design {Plans and Specifications} & Bidding
This work includes the detailed design of the project documents including: plans, specifications, a bid form
and other related documents. To clarify exactly what the scope of this project is, we have attached several
figures outlining tire project as it is defined at the time-of this proposal. Should the scope change, the
proposed fees contained in this letter will need to be modified.
The figures outline street improvements of varying levels (B thru E) as shown on the typical sections. Also
noted in the legend are those areas which will have water main and/or water services installed. Still other
areas already have water services, but will be offered the installation of the service between the curb stop
and home. The work to add this option to the project is not part of this scope, because at the time of this
letter, the extent of that work is not known.
Not shown on the figures, but part of the design scope are miscellaneous sanitary and storm sewer
improvements, required infiltration features, and other work directly associated with the streets in the
current scope. These improvements were further outlined in the Feasibility Study. Several trail segments
are also shown on the attached figures and are included in those items to be designed under this scope of
work.
Improvements not directly related to the streets being constructed such as back yard drainage problems or
regional storm water work are not part of this scope.
Upon completion of the contract documents, we will assist the City in obtaining bids through the public
bidding process. We will then tabulate the bids received and prepare a bid results letter.
Easements
Until design of the project nears completion, the number and size of easements necessary will be difficult to
predict. The easement process is further broken down into a few components: sketch and description,
City of Centervll1e
2009 Street and Utility Improvements
Page 3
6/11/08
staking, on-site meeting with residents, negotiation, and recording. We assume that City staff will handle
the final two steps. Therefore, negotiation and recording are not part of this scope.
Permits
A number of permits will be needed for the completion of this project. We anticipate the following permits
will be needed:
. Rice Creek Watershed District
. Anoka County Highway Department - Permit for work within County ROW
. MN Dept. of Health - Water Main Extension Permit
Obtaining these permits may involve filling out the application, providing back-up information, drafting
figures, responding to comments from submittals, resubmittals, and meetings with agency staff.
Fee
The fees for the work described above are proposed as follows:
Preliminary Survey
Any additional survey work needed will be done on an hourly basis at our normal r~tes.
Structure Assessment
To assess all storm and sanitary sewer structures on the project our fees would not exceed $9,900.
Alternatively, City staff may be able to perform all or part of this work themselves.
Design (Plans and Specifications) & Bidding
Under our normal contractual arrangement, the design and bidding portion of a project is billed as a lump
sum fee based on a percentage of the construction costs. This fee percentage varies with the dollar amount
of the project as calculated based on a fee curve, widely used throughout the industry. The higher the
project cost, the lower the fee percentage. This helps account for savings realized in the efficiencies of
larger projects. For the current scope of the project, our construction cost estimate, is $2,538,000. Using
the fee curve, this produces a fee percentage of 6.7% or $170,000.
We understand that the City of Centerville does not wish to pay for our services under this arrangement,
but rather wishes to continue to pay on an hourly basis. Therefore, we propose to perform this work on an
hourly basis per our approved rate schedule, setting a not-to-exceed limit equal to the calculated fee as
shown above. Typically, we also credit the Feasibility Report back against the fee. When managing our
budget against the not-to-exceed limit, we will make this same assumption. Any time billed to the
Feasibility Report or other preliminary design work will count against our not-to-exceed limit with the
exception of time spent exploring options or alternatives that do not end up as part of the final project
scope.
City of Centerville
2009 Street and Utility Improvements
Page 4
6/11/08
Easements
For the purposes of this proposal, we will assume a need for 10 small permanent easements for rain
gardens or other improvements.
Item Unit $ Oty. Total
Sketch and Description $800 10 $8,000
Staking $500 10 $5,000
On-site meeting (1 mtg,) $250 10 $2.500
Total $15,500
Again, these figures do not include any negotiation, recording, appraisals, or title work, if necessary. The
actual fee will depend on the final number and size of easements.
Permits
Based on past experience with permitting, we have found that estimating the amount of effort needed is
difficult to predict. The following is an estimate of the effort needed to obtain the permits for this project.
Permit
Rice Creek Watershed District
Anoka County Highway Department - Permit for work within County ROW
MN Dept. of Health - Water Main Extension Permit
Estimated Cost
$15,000
$1,000
$1,000
It is important to note that these figures are only estimates based on past experience. The final amounts
may be significantly more or less depending on the level of detail each agency may feel obligated to require.
Fee Summary
Previous Authorization
$45,000
$18,000
$25,000
$7,000
$38,500
$10,300
$8,200
$15,500
$0
$0
$0
$0
$167,500
Item
Feasibility Study
Prelim. Design (Mill Rd. & Center St.)
Preliminary Survey
Addn'l Study Work in final Scope
Addn'l Study Work not in final Scope
Council Meetingstworkshops
Public Open Houses
On-site resident meetings
Structure Assessment
Design/Bidding
Easements
Permits
Total
*These are estimated amounts.
Current Authorization
($19,000)
$0
$0
($7,000)
$0
$0
$0
$0
$9,700
$170,000
$15,5QO*
$17.000*
$186,200
Total to Date
$26,000
$18,000
$25,000
$0
$38,500
$10,300
$8,200
$15,500
$9,700
$170,000
$15,500
$17.000
$353,700
City of Centerville
2009 Street and Utility Improvements
Page 5
6/11/08
Work not Included in this Scope
Several options which have not been quantified to this point include offering water service hook-ups to
homes off the project and other off-project storm water work. We have not included a scope or fee
proposal for those items in this letter. Once those tasks are more well defined, we can formulate an outline
of our duties for that work.
Aside from items discussed above, additional work beyond the bid date will be necessary to complete the
project. This work includes construction observation, surveying, materials testing, record plans and other
project close-out items. If the contract is awarded, we will present a separate scope and fee proposal at
that time to cover the remaining work.
Schedule
We have attached the current project schedule.
Sincerely,
BONESTROO
~4--
Mark Statz, PE
City Engineer
651-604-4709
attachments:
Project Schedule
Current Cost Estimate
Final Scope Project Map with color coded improvements
copy: Paul Palzer - Public Works Director
RJG, ELM, CWL2 - Bonestroo
file
PubJlc Open HQuse,
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Final Scope Cost Estimates
City of Centerville, Minnesota
2009 Street and Utility Improvement Project
6/11/2008
# Bonestroo
Average
Concrete Curb & Sanitary Sewer Watermain Storm Sewer Street Maintenance Cost
Ootion Street Name From To C1llenath (ft,) Sidewalk Cost Gutter Cost* Reoairs Cost Cost** Reoairs Cost Construction Cost Per IF Total Cost
1IlIN
FULL RECONSTRUCTION
B' Peltier Lake Drive CSAH 14 Dead End (E) 2500 $28,320.31 $70,900.00 $42,600.00 $144,300.00 $81,000.00 $411,500.00 $330.00 $778,620.31
B' Peltier Lake Drive Peltier Circle Peltier Circle 600 $6,796.88 N/A $10,300.00 $33,800.00 $23,000.00 $139,600.00 $330.00 $213,496.88
B2 Centerville Road 140' North of Lakeland Cir Peltier Lake Drive 320 $3,625.00 $9,100.00 $3,900.00 N/A $21,600.00 $86,600.00 $380.00 $124,825.00
B2 Peltier Lake Drive Centerville Road Peltier Circle - West Leq 380 $4,304.69 $10,800.00 $2,200.00 N/A $21,600.00 $101,100.00 $380.00 $140,004.69
B2 Peltier Lake Drive Peltier Circle - East Le Mill Road 370 $4,191.41 $10,500.00 $14,200.00 N/A $13,500.00 $99,100.00 $380.00 $141,491.41
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FULL DEPTH RECONSTRUCT ~-
C' Brian Way Brian Drive 275' East of Brian Drive 275 $3,115.23 N/A N/A $3,400.00 $13,500.00 $68,900.00 $250.00 $88,915.23
C' Centerville Road 140' North of Lakeland Cir Peltier Lake Drive 575 $6,513.67 N/A $3,900.00 $3,400.00 $21,600.00 $89,300.00 $250.00 $124,713.67
C' Graingeview 40' North of CDS CDS (S) 150 $1,699.22 N/A N/A $1,700.00 $21,600.00 $49,800.00 $250.00 $74,799.22
C' 73rd Street 20th Avenue N Develo ment break west of Brian 1330 $15,066.41 N/A N/A $6,800.00 $37,800.00 $237,200.00 $250.00 $296,866.41
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FULL BITUMINOUS R&R - -
D' 72nd Street Unity Avenue Brian Drive 1050 $11,894.53 N/A $1,400.00 $6,800.00 $24,300.00 $107,100.00 $130.00 $151,494.53
D' Brian Drive 72nd Street 300' North of 73rd St 2080 $23,562.50 N/A N/A $6,800.00 $24,300.00 $181,300.00 $130.00 $235,962.50
D' Twin Lakes Avenue 73rd Street 72nd 1/2 Street 670 $7,589.84 N/A N/A $3,400.00 $8,100.00 $76,200.00 $130.00 $95,289.84
D' Peterson Trail Prairie Drive 73rd Street 290 $3,285.16 N/A N/A $1,700.00 $0.00 $28,300.00 $0.00 $33,285.16
D' Prairie Drive Mill Road CDS (E) 1300 $14,726.56 N/A $700.00 $6,800.00 $16,200.00 $114,100.00 $0.00 $152,526.56
D' Unity Avenue 72nd and 1/2 Street CDS (N) 700 $7,929.69 N/A N/A $3,400.00 $8,100.00 $66,700.00 $0.00 $86,129.69
D 72nd 1/2 Street Unity Avenue Twin Lake Avenue 360 $4,078.13 N/A N/A $3,400.00 $8,100.00 $38,600.00 $0.00 $54,178.13
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EDGE MILL & OVERLAY
E Brian Drive CSAH 14 72nd Street 660 $7,476.56 N/A N/A N/A $0.00 $47,900.00 $90.00 $55,376.56
E Brian Way 275' East of Brian Drive CDS (S) 560 $6,343.75 N/A N/A N/A $0.00 $28,600.00 $90.00 $34,943.75
E Clear Ridqe Mill Road CDS (W) 1260 $14,273.44 N/A $10,700.00 N/A $13,500.00 $63,600.00 $90.00 $102,073.44
E Fox Run Brian Drive Peterson Trail 720 $8,156.25 N/A N/A N/A $0.00 $38,000.00 $90.00 $46,156.25
* Applies only where no curb or gutter existed before reconstruction .. - - ~ ~- - 16640 $ 184,988.28 $ 1 01 ,300.00 $89,900.00 $263,800.00 $364,600.00 $2,084,000.00 $3,088,588.28
** II
All costs over and above a 6 diameter are financed by City Trunk Fund
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PROPOSED BllUMINOUS PATH
PROPOSED CONCRETE SIDEWAlK
EXISTING BllUMINOUS lRAIL
EXlSITNG CONCRETE SIDEWAlK
NUMBER OF NEW WATER SERVICES PROPOSED
PARCEL NOT CURRENlLY SERVED WITH OTY WATER
A1- WATER MAIN EXTENSION WITH SERVICES
A2.- SERVICE INSTALLATION ONLY
B1- FULL RECON WITH WM. SERVICES, NEW CURB & DRAIN TILE
B2- FULL RECON WITH NEW CURB & DRAINTILE
C1- FULL DEPTH RECON CURB SPOT REPAIRS & DRAINTILE
C2- FULL DEPTH RECON WITH WM. CURB SPOT REPAIRS & DRAINllLE
01- FULL BIT. R&R WITH CURB SPOT REPAIRS & DRAINTILE
02.- FULL BIT. R&R WITH SERVICES & DRAINTILE
03- FULL BIT. R&R WITH WM, SERVICES, & DRAINTILE
E- EDGE MILL & OVERLAY WITH CURB SPOT REPAIRS
ASSESSMENT WILL VARY
SlREETS REMOVED FROM PROJECT
.CONNECTION CHARGE WILL BE APPUED IN UEU OF WATER
MAIN ASSSESSMENT
,
FINAL PROJECT SCOPE
FIGURE 2
CITY OF CENTERVILLE
2009 STREET AND UTILITY IMPROVEMENT PROJECT
61607158F002FINALSCOPE.DW\1!TE: 6/11/08
COMM: 616-07-158
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