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1h License Agreement with MCES for Septage Disposal Site CITY OF CHANHASSEN JO City Center Drive, PO Box 147 Chanhassen, Minnesota 55317 Phone 612.937.1900 General Fax 612.937.5739 Engineering Fax 612.937.9152 Jublic Safety Fax 612.934.2524 mb ll'ww.ci.chanIJflJJeI/. mn.us 1-~ - MEMORANDUM TO: Don Ashworth, City Manager Charles D. F olch, Public Works Director ~ November 17, 1998 FROM: DATE: SUBJECT: Approve License Agreement with Metropolitan Council Environmental Services (MCES) for Septage Disposal Site in Chanhassen to be Located on Park Place - PW File 077B This item was brought before the city council back in August due to the Metropolitan Council Environmental Services (MCES) desire to locate a discharge point into the Lake Ann interceptor sewer system for area sept age haulers. Initially, MCES proposed to acquire an easement from the City to establish this facility on city property located on Park Place. However, the city council's desire was to create a license agreement for the use of the property which would give the city council greater authority over regulating the use of property and more ability to achieve resolutions to any problems which may result with these operations. The initial term of this license agreement is five years at a fee of $500 per year which is equivalent to the previous offer agreed upon. MCES would have the right to request an extension to this agreement for two additional two year terms for a compensation to be negotiated by both parities. Either party may terminate this agreement for cause at any time upon giving ninety days written notice to the other party specifying the date and cause of the termination. Either party would have the opportunity during the ninety day notice period to remedy the cause of the proposed termination. It is therefore recommended that the city council approve the license agreement with the Metropolitan Council of Environmental Services for the use of a Septage Disposal Site on Park Place. Attachments: 1. License agreement 2. Staff report dated August 18, 1998 City ofChm/hasseII. A growing community with c!etlil Mes, quality schools, a channing downtoUJn, thriving bminesses, and beautiful Pilrks. A greilt plilce to liL'f, work, and play. LICENSE AGREEMENT THIS AGREEMENT, effective as of , by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation (hereinafter referred to as "Licensor") and the METROPOLITAN COUNCIL, a public corporation and political subdivision of the State of Minnesota (hereinafter referred to as "Licensee"). In consideration of the mutual promises contained in this Agreement, the Licensor and Licensee agree as follows: SECTION 1: GRANT OF LICENSE. DESCRIPTION OF PREMISES: Licensor hereby grants to Licensee a license to occupy and use, subject to all of the terms and conditions of this Agreement, the property described in the attached Exhibit" A" ("Licensed Premises"). SECTION 2: LIMITATION To DESCRIBED PuRPOSE: The Licensed Premises may be occupied, constructed and used by Licensee solely for a septage disposal site in accordance with the site plan approved by Licensor and for incidental purposes related to such purpose during the term of this License Agreement, including the right to enter the Licensed Premises for purposes of constructing, operating, maintaining, altering, repairing, replacing and/or removing said sewers and utilities. SECTION 3: TERM: The term of this License Agreement shall be five (5) years ("Initial Term") commencing on ("Commencement Date") and ending . Licensee shall have the right to extend this Agreement for two (2) additional two year terms ("Renewal Terms"). The Renewal Terms shall be on the same terms and conditions as set forth herein except for adjustments in payment which shall be negotiated by the parties piior to commencement of a Renewal Term. Licensee must notify Licensor of its intent to renew the license at least one-hundred eighty (180) days prior to the. expiration of the Initial Term or the first Renewal Term. SECTION 4: PERIODIC PAYMENTS: Licensee shall pay Licensor for this license at the rate of Five Hundred Dollars ($500.00) per year payable in advance. The first payment shall be made on the Commencement Date. Subsequent payments shall be made in advance promptly on each anniversary of the Commencement Date thereafter during the continuation of the Agreement. SECTION 5: TERMINATION: Either party may terminate this Agreement for cause at any time, without regard to payment periods by giving written notice to the other, specifying the date and cause of the termination, such notice to be given not less than ninety (90) days prior to the date specified in such notice for the date of termination. Either party shall have the opportunity during the ninety (90) day period to remedy the cause of the terinination. If by the end of the ninety (90) day notice period, Licensee has remedied the cause of the termination, the Agreement shall not terminate and all terms and conditions of the Agreement shall remain in effect. For purposes of this Agreement, the term "for cause" shall include, but not be limited 65500 to, failure to comply with the terms of this Agreement, inappropriate use of the Licensed Premises or abutting property, inappropriate conduct on or about Licensed Premises on the part of Licensee, or Licensee's employees or agents. SECTION 6: GOVERNING LAW: It is agreed that this Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Minnesota. SECTION 7: ENTIRE AGREEMENT: This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement. SECTION 8: MODIFICATION OF AGREEMENT: Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if evidenced in writing signed by each party or an authorized representative of each party. SECTION 9: NOTICES: Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth as follows: LICENSOR: Charles Folch Director of Public Works City of Chanhassen Public Works 1591 Park Road Chanhassen, MN 55317 LICENSEE: General Manager of Metropolitan Council Environmental Services, Wastewater Services Metropolitan Council 230 East Fifth Street St. Paul, Minnesota 55101-1626 SECTION 10: ASSIGNMENT OF RIGHTS: The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party. Notwithstanding the previous sentence, Licensee shall have the right to assign this License to a statutory successor of Licensee without Licensor's consent. Such assignment shall be subject to the following condition: Any assignees shall be subject to all of the terms of this License. 65500 -2- SECTION 11: USE OF LICENSED PREMISES: Licensor, its successors and assigns, will not erect, construct or create any building, improvement, obstruction or structure of any kind, either above or below the surface, or stockpile soils, construction debris or construction equipment or change the grade thereof, without the express written permission of the Licensee. Notwithstanding the aforementioned provision, the following improvements by Licensor, its successors or assigns, do not require Licensee's written approval: fences, parking lots, street and/or roadways, landscaping, bushes, shrubs. SECTION 12: RESTORATION OF LICENSED PREMISES: The Licensee agrees that if it or any of its employees or agents causes any physical damage to the Licensed Premises which it does not restore to a condition as nearly as equal as possible to that which existed prior to the construction and/or maintenance of the purposes described herein within a reasonable time after completion of that construction, including the replacement of grass, sod or fences, the Licensee shall pay the costs of restoring the damaged premises to a condition as nearly equal as possible to that which existed prior to construction. It is understood that in the removal of large trees, shrubs, and other plants that a like replacement for those items removed during construction is not always possible and the Licensee shall not be obligated to replace the same. SECTION 13: COMPLIANCE WITH LAWS: Licensee shall comply with all federal, state and local laws and regulations relating to the operation of septage hauler site on the Licensed Premises. SECTION 14: LIABILITY: Each party agrees that it will be responsible for its own acts and the results thereof to the extent authorized by law, and shall not be responsible for the acts of the other party and the results thereof. The Licensor's and the Licensee's liability are governed by the provisions of Minn. Stat. Chapter 466. IN WITNESS WHEREOF, the parties hereto have entered into this Agreement the day and year first above written. LICENSOR: CITY OF CHANHASSEN LICENSEE: METROPOLITAN COUNCIL By: By: Nancy K. Mancino, Mayor Its: By: By: Don Ashworth City Manager/Clerk Its: 65500 -3- STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 1998, by Nancy K. Mancino and Don Ashworth, the Mayor and City Manager/Clerk of the CITY OF CHANHASSEN, a Minnesota municipal corporation, on its behalf and through the authority granted by its City Council. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of , 1998, by and , the and of the METROPOLITAN COUNCIL, a public corporation and political subdivision of the State of Minnesota, on its behalf. Notary Public THIS INSTRUMENT DRAFTED By: CAMPBELL KNUTSON, P.A. 317 Eagandale Office Center 1380 Corporate Center Curve Eagan, MN 55121 AMP 65500 -4- EXHIBIT "A" Description of Licensor's Property: Outlot A, Chanhassen Lakes Business Park 5th Addition, according to the recorded plat thereof, Carver County, Minnesota, evidenced by Certificate of Title No. 15985. Description of Licensed Premises: That part of Outlot A, Chanhassen Lakes Business Park 5th Addition, according to the recorded plat thereof, Carver County, Minnesota, described as follows: Beginning at the Southwest comer of said Outlot A; thence northeasterly along the southerly line of said Outlot A, a distance of 140.00 feet; thence northwesterly parallel with the easterly line of said Outlot A, a distance of 80.00 feet; thence southwesterly parallel with the southerly line of said Outlot A, a distance of 200.00 feet, to the westerly line of said Outlot A; thence southeasterly along the westerly line of said Outlot A, a distance of 99.00 feet to the point of beginning. 65500 -5- CITY OF CHANHASSEN 690 City Center Drive, PO Box 147 Chanhassen, Minnesota 55317 Phone 612.937.1900 General Fax 612.937.5739 Engineering Fax 612.937.9152 Public Safety Fax 612.934.2524 \Veb www.ci.chanhassen.mn.us 1e MEMORANDUM TO: Don Ashworth, City Manager Charles D. Folch, Public Works Director~ August 18, 1998 FROM: DATE: SUBJECT: Approve Easement Agreement with Metropolitan Council Environmental Services Septic Disposal Site on Park Place PW File 077B Based upon requests from local septage hauler companies, the Metropolitan Council Environmental Services would like to provide a local discharge point into the interceptor sewer system. Currently the septage haulers working in this area must travel south to the Blue Lake Treatment Plant in Shakopee to dump their loads. Some local haulers have asked the Metropolitan Council to provide a more local disposal site in or around the Chanhassen area. As a result, Met Council and the Chanhassen Staff have been working cooperatively to find possible locations for such a facility. Criteria for the ideal location includes that it be located where there is direct connection into the Metropolitan Council's interceptor facility, has good local road access and is located in an area of industrial zoning rather than residential. Based on these criteria, an ideal location was established along Park Place on Outlot A in the Chanhassen Lakes Business Park 5th Addition. This outlot is owned by the city and is currently encumbered with an existing utility easement for Metropolitan Council's Lake Ann Interceptor Sewer. This proposed easement is bounded to north by wetland, to the west by Park Place right-of-way and to the south by private property (Heitman Parking Lot). The extent of the septage discharge facility would involve the construction of a paved drive isle and turn around with an at grade manhole structure which would connect directly into the MCES Lake Ann Interceptor System. No above ground buildings or structures are proposed for this facility, only a gate bar, light pole, and a drainage culvert are associated with this facility. Construction of this facility necessitates that MCES acquire a total easement area of approximately 13,500 square feet of which a little more than 3,400 square foot is currently encumbered by the existing interceptor sewer easement. Outlot A itself is not a developable property as it is mostly encumbered with existing wetland and utility easements. Due to its unbuildability status, appraisal of the property has been determined to be be City ofClJanhtlSsen. A growing community with clean lakes, qua/it)' sc/Joo/s. ,/ charming downtown, thriving bllSinesses, and beautiful parks. A great place to live, work, and pl~l: Mr. Don Ashworth August 18, 1998 Page 2 approximately fifteen cents per square foot. This results in a compensation of approximately $1,513.80 for the ten thousand and two square feet of new permanent easement.In addition to this amount, City Staff has requested that an additional $500.00 be added to this offer to cover the administrative and legal costs the City will incur with processing this easement request the Metropolitan Environmental Services has agreed and proposes a total offer of $2,013.80. Staff believes that providing a septic disposal such as this is a benefit to the local area and that this is the most feasible and cost effective location to install such a facility. It is therefore recommended the City Council approve the permanent utility easement offer for the easement described in exhibit A of the attached agreement, which would encumber Outlot A, Chanhassen Lakes Business Park 5th Addition for a total compensation amount of$2,013.80. Attachment: 1. Location Map 2. Easement Agreement 3. 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LOCATION MAP ,.nc,)" - J, i . ~ '2; o o - " '00 9200 I '300 I 9400 I I '500 I 9600 -, j ~ ::l · "3 G < 01 ,~I ;: , ~" '/' ,: / -' . ~ , -~ .--.., I'l.......-.-~ -r- ; "l .'__ _-----,.~~..:~:~ '. oil I . -'l . , , j -"-'- ~._ ~ --- J,........... 1 .-; .- ;: ';: ___ , t EASEMENT THIS INSTRUMENT, MADE THIS ____ day of , 19_, by and between The City of Chanhassen, a Corporation, the County of Carver, State of Minnesota, Grantor, and the Metropolitan Council, a public corporation and political subdivision of the state (successor to the Metropolitan Waste Control Commission), Grantee; WITNESSETH, that Grantor, in consideration of One Dollar and other good and valuable consideration to it in hand paid by Grantee, the receipt of which is hereby acknowledged, does hereby grant, bargain, sell, and convey to Grantee, its successors and assigns, the following described easement for sanitary sewer and utility purposes (construction of septage disposal site): See Exhibit A attached hereto for legal description of permanent easement. -1- The above described easement includes the rights of grantee, its contractors, agents and employees to do whatever is necessary for enjoyment of the rights granted herein including the right to enter the easement for purposes of constructing, operating, maintaining, altering, repairing, replacing, and/or removing said sewers and utilities. Grantor, its herrs, successors and assigns, will not erect, construct, or create any building, improvement, obstruction or structure of any kind, either above or below the surface, or stockpile soils, construction debris, or construction equipment or change the grade thereof, without the express written permission of the Grantee. Notwithstanding the aforementioned provision, the following improvements by Grantor, 'its heirs, successors, and assigns do not require Grantee's written approval: fences, parking lots, street and/or roadways, landscaping, bushes, shrubs. As further consideration for this easement, the Grantee agreees that if it or any of its employees or agents causes any physical damage to the above described easement premises which it -2- does not restore to a condition as nearly as equal as possible to that which existed prior to the construction and/or maintenance of the purposes described herein within a reasonable time after completion of that construction, including the replacement of grass, sod, or fences, the Grantee shall pay the costs of restoring the damaged premises to a condition as nearly equal as possible to that which existed prior to construction. It is understood that in the removal of large trees, shrubs, and other plants that a like replacement for those items removed during construction is not always possible and the Grantee shall not be obligated to replace the same. As a condition of this Easement Agreement, Grantee shall comply with all federal, state, and local laws and regulations relating to the operation of septage hauler site on the Easement Premises. Each party agrees that it will be responsible for its own acts and the results thereof to the extent authorized by law, and shall not be responsible for the acts of the other party and the results thereof. The City's and the Council's liability is governed by the provisions of Minnesota Statutes, Chapter 466. -3- Grantor covenants that it is the Owner and is in possession of the above described premises and has lawful right and authority to convey and grant the easement described herein. IN WITNESS WHEREOF, the said Grantor has caused this Easement to be executed as of the date noted above. CITY OF CHANHASSEN, a Corporation . - By Its By Its STATE OF MINNESOTA COUNTY OF On the before me a appeared respectively, instrument was day of , 19 notary public within and for said County, personally named in the foregoing instrument, and that said signed on behalf of said City of Chanhassen, a Corporation, by authority of its Board of Directors and acknowledged said instrument to be the free act and deed of said Corporation. Notary Public -4- EXHIBIT A PROPERTY DESCRIPTION: Outlot A. Chanhassen Lakes Business Park 5th Addition. according to the recorded plat thereof. Carver County. Minnesota, evidenced by Certiticate of Title No. 15985. EASEMENT DESCRIPTION: A permanent easement for sanitary sewer purposes over. under and across that part of Outlot A, Chanhassen Lakes Business Park 5th Addition, according to the recorded plat thereof, Carver Coum)', Minnesota, described as follows: .- . - Beginning at the Southwest Comer of said Outlot A; thence northeasterly along the southerly line of said Outlot A, a distance of 140.00 feet; thence northwesterly parallel with the easterly line of said Outlot A, a distance of 80.00 feet; thence southwesterly parallel with the southerly line of said Outlot A, a distance of 200.00 feet, to the westerly line of said Outlot A; thence southeasterly along the westerly line of said Outlot A, a distance of99.00 feet to the point of beginning. Sheet 1 of 2 sheets 1 BLK ,.-...., L ~~ ..;ft t<<\,f ~ S1r COR LOT 1 ~\)~\: ~ ~\ZY-- 1" I -so ~ ~/ Exhibii A ~/~/ 5 hCt:t :;z C>~ ~ 5 ~Le.is D \ \ r T \~ r: ~ ./' ~ Metropolitl 01 Council ~ Working for the Region, Planning for the Future July 17, 1998 Mr. Charles Folch City of Chanhassen Public Works 1591 Park Road Chanhassen, MN 55317 RE: Easement Acquisition Chanhassen Septage Disposal Site Me Project Number 960509 Based on the appraisal prepared by Edmund Bowler of Bowler Appraisals, Inc. appraiser for the above referenced project, and a request by the City of Chanhassen, the Metropolitan Council Environmental Services hereby makes the following offer: 10,092 sq. ft. permanent easement Administrative Settlement $ 1,513.80 $ 500.00 TOTAL OFFER $ 2,013.80 Please indicate your acceptance or non-acceptance below: Accept Do Not Accept CITY OF CHANHASSEN CITY OF CHANHASSEN By By Its Its JJS:LLM:llm copies: J.Lindgren, MC, J.Matross, MC K.Bombach, MCES, L. Engen, MCES L. Major, MC 230 East fifth Street St. Paul. Minnesota 55101-1634 (612) 291-6359 fax 291-6550 TOO /TrY 291-0904 An Equal Opportwtll!J Employer Metro Info Line 229-3780