1c-1. Financial Agreement UofMCITYOF
CHAN EN
7700 Market Boulevard
PO Box 147
Chanhassen MN 55317
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MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Matt Saam, Acting City Engineer/Public Works Director/t,{9
DATE: October 30, 2003
SUB J: Approve Financial Agreement with University of Minnesota
Project No. 02-08
REQUESTED ACTION
The City Council is requested to approve the attached financial agreement between
the City and the University of Minnesota for the Minnewashta Watermain Loop
along the south end of Lake Minnewashta.
BACKGROUND
On May 13, 2002, the City Council approved a work order with Black & Veatch for
the design of the Minnewashta Watermain Loop.
On August 11, 2003, the City Council approved plans and specifications and
authorized the advertisement of bids on the project.
DISCUSSION
The attached financial agreement lays out the terms of the cost sharing between the
City and the University of Minnesota for this project. Basically, the agreement states
that all costs associated with the project will be shared 50/50 between the two parties.
These costs include: consulting engineering fees, plan/specification preparation,
bidding costs, permit fees, construction costs and inspection costs.
The City Attorney ha~reviewed the agreement. The University of
Minnesota has already approved and signed the agreement.
RECOMMENDATION (simple majority is required)
Staff recommends that the City Council adopt the following motion:
"The Chanhassen City Council approves the attached financial agreement with the
University of Minnesota for a 50/50 cost sharing of the Minnewashta Watermain
Loop project."
Attachment: Financial Agreement
c:
Sue Weinberg, University of Minnesota Real Estate
Peter Moe, University of Minnesota Landscape Arboretum
Kelley Janes, Utility Superintendent
Bruce DeJong, Finance Director
g:\cng\publick02-08kfinancial agreement.doc
The City of Chanhassen · A grov,,mg com,munity with clean lakes, quality schools a dnarmir'g (lov,,n~towr] thriving busrnesses winding trails and beautiful paks A great ;,lace ?,) I,~e, ,¢~ork a[xl pla!
AGREEMENT
THIS AGREEMENT is made and entered into this l q'+~ day of
(~z>~3t, vX" , 2003, by and between the REGENTS OF THE UNIVERSITY OF
MINNESOTA, a constitutional corporation, whose address is C/O Real Estate Office, 424
Donhowe Building, 319-15th Avenue SE, Minneapolis, MN 55455 ("UofM"), and the CITY OF
CHANHASSEN, a Minnesota municipal corporation, whose address is 7700 Market Boulevard,
Chanhassen, Minnesota 55317 ("City").
RECITALS
A. The parties have agreed to have constructed a 12-inch diameter public watermain
within the State Highway 5 right-of-way along the north property line of the UofM's Landscape
Arboretum and to make a connection from the 12-inch watermain to the existing 10-inch water
stubs on the south side of State Highway 5 (hereinafter the "Project").
B. The parties have agreed to share in the Project cost.
C. All reasonable efforts will be made to construct the Project in 2004.
D. The estimated Project cost is $838,266.
NOW, THEREFORE, IN CONSIDERATION
COVENANTS, THE PARTIES AGREE AS FOLLOWS:
OF THEIR MUTUAL
1. APPROVAL PROCESS. The City shall have plans and specifications and
contract documents prepared, approve the plans and specifications and contract documents,
advertise for bids, award a contract and supervise the project.
2. BID APPROVAL. Both parties must approve the bid before a contract is
awarded. If both parties do not approve the bid, the City shall not authorize construction on the
Project. Out of pocket costs (up to a maximum of $150,000) incurred prior to Project
abandonment, if that should occur, shall be apportioned in accordance with paragraph 4 below.
3. CONTRACT AWARD AND SUPERVISION. Following bid approval, the
City shall award the contract and oversee Project completion. The City may approve change
orders to the contract as long as the cumulative value of the change orders do not exceed 10% of
the bid amount. Cumulative change orders totaling over 10% of the bid amount must be
approved by both parties.
4. COST ALLOCATION. The following Project costs shall be shared 50% by the
City ad 50% by the UofM:
consulting engineering fees
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· City staff engineering fees at it relates to construction contract administration
(at a rate of $59.40/hr to a maximum of $3000)
· preparation of plans and specifications
· document preparation and bidding costs
· permit fees
· construction costs, including change orders pursuant to this agreement
· inspection and testing fees
· costs associated with commercially reasonable steps taken by the City to
enforce the construction contract, net of any recovery
5. PAYMENT. The City will act as the paying agent for all Project costs including
all payments to the contractor. Payments to the contractor will be made as the Project work
progresses and when certified by the City Engineer. The City, in turn, will bill the UofM for the
UofM's share of the costs as specified in this Agreement. A retainage of 5% of the contract cost
will be held until final acceptance of the Project. Upon presentation of an itemized claim by one
agency to the other, the receiving agency shall reimburse the invoicing agency for its share of the
costs incurred under this Agreement within thirty (30) days from the presentation of the claim. If
any portion of an itemized claim is questioned by the receiving agency, the remainder of the
claim shall be promptly paid, and accompanied by a written explanation of the amounts in
question.
6. PROJECT OWNERSHIP. Upon completion of the Project, the Project shall be
owned by the City.
7. RELATIONSHIP OF THE PARTIES; EMPLOYEE STATUS. This
Agreement does not create a joint venture, partnership or any other relationship between the
parties and is intended solely for the purpose of determining the UofM's share of the Project
cost. The City, and not the UofM, is responsible for the design and construction of the Project
and the payment of Project costs. Subject to the limitations and immunities in Minnesota
Statutes Chapter 466 which are not waived or extended, the City shall defend, indemnify and
hold harmless the UofM, its regents, employees and agents from claims of whatsoever nature by
third parties arising out of or related to the design, construction and contracting process for the
Project. Any and all persons engaged in the work to be performed by the City shall not be
considered employees of the UofM, and any and all claims that may or might arise out of said
employment context on behalf of employees while so engaged, an any and all claims made by
any third party as a consequence of any act or omission on the part of employees while so
engaged on any of the work contemplated herein shall not be the obligation or responsibility of
the UofM. The opposite situation shall apply: the City shall not be responsible under the
Worker's Compensation Act for any employees of the UofM.
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8. AUDITS. Any books, records, documents, and accounting procedures and
practices of the City and the UofM relevant to this Agreement are subject to examination by the
UofM or the City and either the Legislative Auditor or the State Auditor as appropriate. The
City and UofM agree to maintain these records for a period of six years from the date of
performance of all services covered under this Agreement.
9. INTEGRATION. The entire and integrated agreement of the parties contained
in this Agreement shall supersede all prior negotiations, representations, or agreements between
the City and the UofM regarding the Project; whether written or oral.
10. WATER METERS. The City will sell the UofM water meters when buildings at
the Landscape Arboretum are connected to the UofM's privately owned 8" looped line.
11. FLUSHING LINES. The City will, without charge to the UofM, flush the
UofM's 8" looped water lines at the same intervals lines owned by the City are flushed. The
UofM shall in all respects be responsible for its privately owned 8" line.
12. HOOK-UP CHARGES. All applicable water service hook-up charges must be
paid at the time of connection of buildings at the Landscape Arboretum.
IN WITNESS WHEREOF, this Agreement has been executed as of the day and year
first above written.
REGENTS OF THE
UNIVERSITY OF MINNESOTA
BY:
CFO - Treasurer
CITY OF CHANHASSEN
BY:
AND
Thomas A. Furlong, Mayor
Todd Gerhardt, City Manager
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STATE OF MINNESOTA )
( SS.
COUNTY OF
The foregoing instrument was acknowledged before me this /z/t day of
~C-jZa;,4'.,_ , 2003, by K~7'/q. t-'/t,.f ~;,~, .A.: ,_.%,. the
of the Regents of the University of M~mnesota, a constitutional corporation, on beha'~f of the
corporation.
STATE OF MINNESOTA )
( SS.
COUNTY OF CARVER )
NOTARY PU,~~ ~¥~
1 ~__~ ~ ~i~t Notary Public
The foregoing instrument was acknowledged before me this day of
, 2003, by Thomas A. Furlong and by Todd Gerhardt, the Mayor and City
Manager of the City of Chanhassen, a Minnesota municipal corporation, on behalf of the
corporation and pursuant to the authority granted by its City Council.
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55121
Telephone: (652) 452-5000
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