1f. Deposit of Securities Northdale Const , ,
1 CITYOF
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.:P. 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900 • FAX (612) 937-5739 Action by City Adrini trztor
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MEMORANDUM Er!dorsel
ldodi`ied__
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TO: Don Ashworth, City Manager Re o
Dat Al2-17q FROM: Gary Warren, City Engineer,t� Date subm:: to cc: T_son
II Date Sabrri cd to io'sl
DATE: February 20, 1990 '
1 SUBJ: Approve Agreement for Deposit of Securities in Lieu of
Retainage - Northdale Construction
Project No. 88-22A
IIRecent changes in State Statutes allow for contractors to provide
cities with securities in lieu of retainage for construction
I projects. The City currently has in force a securities agreement
of this nature with Shafer Construction Company for the Downtown
Redevelopment project. The attached agreement is the same as
II that prepared for the Shafer project by the City Attorney' s
office. The attached February 15, 1990 correspondence from
Firstar St. Anthony Bank confirms the securities which Northdale
has pledged in lieu of the retainage on the project.
II find the attached agreement and security confirmation in order
and as such recommend the approval and execution of the attached
II agreement. It is further recommended that the attached
application for payment No. 5 be approved which will release the
retainage consistent with this agreement.
I ktm
Attachments: 1. Agreement.
II 2. February 15 , 1990 Confirmation of Securities
from Firstar St. Anthony Bank.
3 . Application for Payment No. 5
II c: Gary Ehret, BRW
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AGREEMENT FOR DEPOSIT OF SECURITIES
IN LIEU OF RETAINAGE
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THIS AGREEMENT, dated as of the Iz day of February, 1990,
among the City of Chanhassen ( "CITY" ) , Northdale Construction
' Company, Inc. , 14450 Northdale Boulevard, Rogers, MN 55374
("CONTRACTOR") and Firstar St. Anthony Bank, N.A. , 2401 Lowry
' Avenue NE, St. Anthony, MN 55418 ( "BANK") .
' It is agreed that:
' 1. The CONTRACTOR may from time to time during the term of
this AGREEMENT deposit with BANK certificates representing
ownership of securities consisting of the following:
' a. Bills , certificates, notes or bonds of the United
States;
b. Other obligations of the United States or its
agencies;
' c. Obligations of any corporation owned wholly by the
Federal government;
d. Indebtedness of the Federal National Mortgage
Association; or
e. Other bonds or securities approved by the Treasurer
of the State of Minnesota P ursuant to Minn. Stat.
15 .73, as the same from time to time be amended.
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Such certificates shall be in the name of CONTRACTOR and I
endorsed to the BANK or shall be in the name of the BANK.
Neither the certificates nor the securities represented thereby
shall be subject to any restrictions on transfer.
2. Upon receipt of any such certificates, the BANK shall
deliver to the CITY and to the CONTRACTOR a receipt signed by the
BANK, setting forth the number and type of securities represented ,
by such certificates and certifying the market value thereof as
of the date of deposit. i
3. The BANK shall act as custodian, hold such certificates '
for safekeeping and dispose of such certificates only in
accordance herewith. ,
4. During the term of this AGREEMENT, all interest or 1
dividends on the securities represented by the certificate then
held by the BANK hereunder shall be paid to the CONTRACTOR upon
receipt thereof by the BANK.
5. During the term of this AGREEMENT, CONTRACTOR may submit
a request, as set forth in Exhibit A, certifying the market value
of all pledged securities as of the date of the CONTRACTOR'S Pay '
Request, to be an alternate retainage with respect to any
contract between the CITY and the CONTRACTOR requiring I
withholding of a retainage. In the event the retainagets)
required pursuant to such contract exceed the current market
value of securities pledged hereto, the CONTRACTOR shall deposit I
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additional securities pursuant to this AGREEMENT or the CITY will
retain sufficient cash retainage as a part of the partial payment.
6. The BANK shall , upon written instruction executed by the
CITY Executive Director or his authorized representative, endorse
and deliver to the CITY or the CONTRACTOR, as may be specified in
such instruction, all certificates deposited by the CONTRACTOR
' hereunder.
' 7. The applicable custodial fee shall be paid to the BANK
by the CONTRACTOR as deposits are made.
8. (a) The BANK may endorse and deliver all or some of the
' certificates deposited hereunder pursuant to an order of any
court of competent jurisdiction.
(b) This AGREEMENT shall automatically terminate upon
endorsement and delivery of all certificates deposited hereunder
in accordance with the terms thereof.
(c) This AGREEMENT may be amended only by and upon a
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written instrument executed by all parties hereto.
' (d) This AGREEMENT shall be binding upon and shall
inure to the benefit of the respective parties, their personal
' representative, successors and assigns.
Eel This AGREEMENT shall be construed and the rights
hereunder determined in accordance with the laws of the State of
Minnesota.
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(f) All deposits, notices, instructions or other
communications required or permitted to be made or delivered
hereunder shall be in writing and delivered in person or sent by
certified or registered mail to the following address or such 1
other address as the party shall have directed:
To the BANK: Firstar St. Anthony Bank, N.A.
2401 Lowry Avenue NE '
St. Anthony, MN 55418
Attn: Saundra A. Powers
Administrative Officer
To the CITY: City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317 '
Attn: Mr. Gary G. Warren
City Engineer '
To the CONTRACTOR: Northdale Construction Company, Inc. '
14450 Northdale Boulevard
Rogers, MN 55374 '
Attn: Mr. Thomas A. Wilebski
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rIN WITNESS WHEREOF, the parties hereto have executed this
AGREEMENT as of the day and year first above written.
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FIRSTAR ST. ANTHONY BANK, N.A.
BANK By:
416f—
1 X Ti e: 9X Ct s J
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CITY OF CHANHASSEN
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CITY By:
Donald J. Chmiel, Mayor
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By:
Don Ashworth, City Manager
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NORTHDALE CONSTRUCTION COMP Y, INC.
CONTRACTOR By: .1-2.�--� i t,.�_
1 Title: C',L'cv;A ( 1\11 A ' c*('4'�
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EXHIBIT A
REQUEST
ATTACHMENT TO PAY Q UEST NO.
REQUEST FOR ALTERNATE RETAINAGE '
PROJECT: City of Chanhassen
Lake Drive/TH 101 Realignment Project
Project No. 88-22A
CONTRACTOR: Northdale Construction Company, Inc.
Value of Work Completed to Date t I,r/O{ 3 2y,3$
Five Percent of Value of Work Completed to DateB8/ V()•147
Value of Pledged Securities:
Current Market Value
Security Description Face Value as of
TtuAsv 6k'qs eer 2t ? 88, 2 6,t( I?
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Note: Attach signed Bank receipt for any new securities pledged.
CERTIFICATE OF THE CONTRACTOR:
I hereby request that the cash retainage of the above contract be
reduced by an amount not to exceed the current market value of
bonds or securities on deposit under the terms of the Agreement
dated 7 - 41 `(7C ' , between the City of Chanhassen,
Northdale Construction Company, Inc. and Firstar St. Anthony Bank.
I hereby certify that the information contained herein represents
the current market value of bonds and securities on deposit
pursuant to the aforementioned Agreement.
NORTSDALE CONSTRU TION COMPAN INC.
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Date: �+
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Firstar St.Anthony Bank,N.A.
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FIRSTAR
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February 15, 1990
Mr. Gary Warren
City Engineer
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Re: Project CP-88-22 T.H. 101 ,
Realignment/Lake Drive
Northdale Construction Company, Inc.
Dear Mr. Warren:
Enclosed is a copy of the confirmation of the purchase of Treasury
Bills regarding the above referenced project. As you can see these
Treasury Bills are being safekept by First Wisconsin National Bank of
Milwaukee.
Should you have any further questions regarding this matter, please
call me directly at 782-1517.
Sincerely, 1
Saundra A. Powers
Administrative Officer
SP/sp 1
CITY Of L AIISSTN
Enclosures re r� �
FEB 16 1990
ENGINEERING DEPT.
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St.Anthony'2401 Lowry Avenue Northeast,St.Anthony,Minnesota 55418 612/781-6991
Andover:3445 Bunker Lake Boulevard,Andover,Minnesota 55304 612/421-0198
ELAy HONEM Y 4,7:i `+}-i ANTArrLA:ACLt IAAHtrvnIiriuwILL
COURn i.1�* , . t;,► q" ,Y BE IN TAX ID:NO. 41-0876571
II .�.�` 'ATH'i`l 'l !�`� ;tl
MIL AU s r,:�F y I .
;.- p16 ,�..y..�, '! ' • , ,; +,- -i,� COLLECTION AND CREDIT OF PROCEEDS
• tt11 ; r ,, • n FOR CALLABLE SECURITIES WILL BE
I • . `xlr-;- , ON A BEST EFFORT BASIS ONLY
NOTIFY US IMMEDIATELY IF THIS DOES NOT AGREE WITH YOUR UNDERSTANDING OF THE TRANSACTION. ,
TRADE DATE CONRMAA iON NO.
Ac PRTNr..TPAJ LF HAVF Sill D TO YOU 01/29r9C .631804
PAR AMOUNT INTEREST RATE MAWRITY DATE BASIS PRICE YIELD SETTLEMENT DATE
175.000.00 1 07/26/1990) 7.50 1 96.3125000 7.895'- 01/.30/5
IU S TREASURY BILL PRINCIPAL 168,546.E
DUE 07/26/90 , _ ..• ►:;. .q..
DTD 0i/25/90 , ;I. . . . ; •.•.• ,:.xtrvn. ;id.!if:it.i...
• .:�l•I.•,, . ' ,'...1,,%,- ..44.ISOVl. :t!p; K•I?•.i,^t:,t°ti$,7.tit stir,
I •• ••• • •: '..., i.• - . - I. ' ... ,,i,44,4.r i•1t s4': r.,14,1..-,3 a,:7 w
`: *.rrit.,, i .••"i ixG tIAVV•.:.:'.1 al 4Y:b4444 'Mi
. : :An ;•':Y.:Alidifle 4111101 •
. ! SECURITY NUMBER ( REP.NO. CUSTOMER NO. ACCOUNT NO.
NET AMOUNT 168,546.€
NORTHDALE CONSTRUCTION CO INC PAYMENT AND DELIVERY INSTRUCTIONS
I FIRSTAR ST ANTHONY BANK N A WE CHARGE YOUR CHECKING ACCT.
CUSTOMER TRANS ACCT SECURITIES SAFEKEPT BY FWNB
ATTN KATHY CRIPE L-26 00 MILW. SEPARATE RECEIPT FOLLOWS
2401 LOWRY AVE NE.' • .. • 'I
IIST ANTHONY MN . , .55418 •" r r, > .I DUPLICATE CONFIRM;
'THIS TRANSACTION IS FURTHER SUBJECT TO THE TERMS AND CONDITIONS STATED ON THE REVERSE SIDE HEREOF.
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1990 •
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_ .. - Firstar St.Anthony._.nk.N.A. ' ' .
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- - January 30, 1990. II
Mr. Gary Warren - - 1
City Engineer
City of Chanhassen
- 690 Coulter Drive II
. Chanhassen, MN 55317
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Re: Securities in Lieu of Retainage
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Project CP-88-22 T.H. 101 Realignment/Lake Drive .
City of Chanhassen, MN
. Dear Mr. Warren: 1
At the request of Thomas Wilebski of Northdale Construction Company,
Inc. I recently purchased, through our Investment Department, six- II
month Treasury Bills. These Treasury Bills totalling $88,216.47 are
being held in a safekeeping account and cannot be released or
redeemed without my permission. I will not give our safekeeping II department permission to release or redeem these Treasury Bills,until
so instructed by the City of Chanhassen. Upon written request from
. the city, we will deliver said securities to your office. .
If I can be of any further assistance, please give me a call. , I
Yours truly, •1
FIRSTAR ST. ANTHONY BANK, N.A.
.01 . Pte°'
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Saundra A. Powers -
Administrative Officer 1
SP/sp
- cc: Joan Meuwissen . • Tom Wilebski
City of Chanhassen Northdale Construction Company, Inc.
- 690 Coulter Drive 14450 Northdale Boulevard t
Chanhassen, MN 55317 Rogers, MN 55374
ill
Gary Ehret CITY OF CHA SSF
B.R.W., Inc. - OF :€ J
700 Third Street South, S-600 �2m rzir J il
Minneapolis, MN 55415 •
- FEB 16 193'J • .
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ENGINEERING DEP
St.Mthony:2401 Lowry Avenue Northeast.St.Anthony.Minnesota 55418 612/781-6991 1
Andover:3445 Bunker t.ake Boulevard.Andover Minnesota 55304 612/421-0198 • . .
1
BRW Cat
City Co
ContrLoto,
inspec.ic,
APPLICATION FOR PAYMENT
NO. 5
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Project TH 101 Realignment/Lake Drive
Owner City of Chanhassen
' Owner's Project No. CP 88-22A Engineer's File No. 7-8816
Contractor Northdale Construction Co. , Inc.
Application Date 2/26/90 For Period Ending 2/26/90
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STATEMENT OF WORK
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1 Original Contract Amount $ 2,203,218.38
Net Change By Contract Amendment $ 90,932.46
Contract Amount to Date $ 2,294,150.84
Total Amount of Work Completed to Date $ 1,764,329.38
Material Suitably Stored on Site but not
Incorporated into Work $ 0.00
Gross Amount Due to Date $ 1,764,329.38
Less 0% Retainage $ 0.00*
Amount Due to Date $ 1,764,329.38
' Less Previous Payments $ 1,676,112.91
Payment Due this Application $ 88,216.47
* Retention is released in accordance with Minnesota Statutes in lieu of
1 securities deposited in the name of the City of Chanhassen in the amount
of $88,216.47.
I hereby certify that all items and amounts shown are correct for the work
completed to date.
Contr. , •r _ N'rthdj construction Co. , Inc. '
'
BAIL , ,, ;.b.• Date 2 h
(Name and -t e '
The work on this project and the application for payment have been reviewed and
the amount shown is recommended for payment.
BRW, INC.
By Date e
JPiect Manager)
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APPROVED FOR PAYMENT
Owner City of Chanhassen
By ■ Date 2/ 1.11/CO
Name and Title) t
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