ITEM 5.1 Valerious MeadowsOtSTC F O
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Legal
Andy MacArthur, City Attorney
November 14, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
City Attorney
Interim City Administrator
5.1
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommends that the City Council reaffirm the one year warranty previously approved in the
Agreement with Valerius Meadows.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
Yes.
IS A PUBLIC HEARING REQUIRED?
No.
BACKGROUND/JUSTIFICATION: The City Council approved an Agreement with Valerius Meadows at the last
regular meeting which included a one year warranty on the proposed pipe construction. Subsequent to
that meeting, Valerius Meadows has indicated that they want the City Council to consider a change to
the already approved agreement to include a three year warranty for the Project. Valerius Meadows is
not seeking any other changes to the approved Agreement.
City staff has indicated to Valerius Meadows that they would oppose changing the agreement. The City
has already negotiated with contractor for a one year warranty. Approval of additional warranty would
either require additional expense to obtain the extra two years from the contractor or it would require
the City to honor the additional two years of warranty. The City has no means to monitor the warranty
period or respond to claims except for to hire additional contractors. Additionally, this would require
extension of the right of entry on the property. It would be hard to determine whether any claim of
deficiency of the pipe would be the result of such failure or would be a product of the failure of the
existing drainage tile system, which Valerius Meadows has previously admitted is in very poor condition.
The rational for the request by Valerius Meadows is there concern that with a one year warranty, if the
coming year is a dry year there will be no way to know whether or not the system is working until it
receives substantial water.
The Council has previously indicated that they were willing to pay for the additional cost of the pipe to
the ditch in order to relieve any potential liability from other property owners and in order to get the
matter resolved as soon as possible. The Council was not interested in a public easement over the pipe
nor were they interested in long term commitment to the facilities.
SUPPORTING DOCUMENTS: m ATTACHED ❑ NONE
Previously approved Agreement with Valerius Meadows.
MOTION: (Please word motion as you would like it to appear in the minutes.)
If the Council stands by the previously adopted Agreement, no motion is necessary. If the Council wants
to make changes to that Agreement a motion should be made specifying the changes.
R1IDG'FT INFORMATION
FUNDING: BUDGETED: ❑ YES
NA o NO
TEMPORARY EASEMENT, AGREEMENT AND RIGHT TO CONSTRUCT
For valuable consideration Valerius Meadows, Inc., a Minnesota Corporation (GRANTOR) hereby grants
to the City of Otsego, a Minnesota Municipal Corporation, (GRANTEE) a temporary easement for
excavation and construction purposes over, under and across the following described property in Wright
County, Minnesota:
See Exhibit A.
IT IS FURTHER AGREED between the Parties as follows:
1. GRANTEE shall construct over, under and across the described properties an approximately
2,276 foot eight (8) inch drainage line as set forth on Exhibit B (the Project). GRANTEE its
officers, employees agents, consultants and contractors shall be granted blanket easement to
enter the properties described in Exhibit A and construct the pipeline in the general location as
set forth on Exhibit B. It is understood that the location of the pipeline on said Exhibit B is
conceptual in nature and that the actual location may slightly deviate from this Exhibit based
upon conditions found upon the properties. GRANTEE will need a construction area of at least
twenty five (25) feet on each side of the path of the pipeline. GRANTEE shall make all good faith
efforts to identify and provide connection from the pipeline being constructed to existing field
tiles, as identified by GRANTOR, during construction.
GRANTEE shall restore the property to acceptable condition, as close to the original condition as
possible including replacing existing disturbed topsoil wherever possible or providing equivalent
quality topsoil.
Once constructed, the pipeline shall become the property of the GRANTOR, subject only to
conditions as set forth in this Agreement. GRANTEE shall provide a one year warranty period
(commencing upon the date of Project completion) to GRANTOR, guaranteeing the materials
and workmanship on the Project. Said guarantee only relates to the pipe being constructed in
the Project and the connection points to existing field tiles, it does not include any obligation to
correct or repair any field tile beyond its connection point to the installed pipeline.
4. GRANTOR hereby waives and forever discharges GRANTEE, its employees, officers, contractors,
consultants and agents and Wright County, its employees, officers, contractors, consultants and
agents from any and all claims or causes of action of whatever nature related to or arising from
the retention pond and the pipeline including its construction, operation and maintenance,
except for claims related to the one year warranty provided herein.
5. GRANTOR agrees to hold harmless and indemnify GRANTEE, its employees, officers, contractors,
consultants and agents and Wright County its employees, officers, contractors, consultants and
agents from any and all claims or causes of action of whatever nature related to or arising from
the retention pond and the pipeline, including its construction, operation and maintenance
except for the grossly negligent or intentional acts of GRANTEE or Wright County, their
employees, officers, contractors, consultants and agents, except for claims related to the one
year warranty provided herein.
6. GRANTEE shall have no further responsibility for removal or repair of the existing tile drainage
system on GRANTOR's property, except for the one year warranty provided herein.
7. GRANTEE shall provide GRANTOR with a copy of as built plans for the Project as well as GPS
coordinate of all identified points of intersection between the Project pipeline and existing field
tiles
Said temporary easement and right to construct to expire on December 31, 2017.
GRANTOR
VALERIUS MEADOWS, INC.
Allen Valerius
Its Chief Executive Officer
2
GRANTEE
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT
Subscribed and sworn before me this _ day of October, 2016
by Allen Valerius, Chief Executive Officer of Valerius Meadows, Inc.
with authority.
NOTARY PUBLIC
STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT )
Subscribed and sworn before me this _ day of April, 2016
3
By Jessica Stockamp, Mayor and Tami Loff City Clerk of the City of Otsego
With authority and on behalf of the City.
NOTARY PUBLIC
DRAFTED BY:
MacArthur Law Office, LLC
3601 Thurston Ave N.
Suite 103
Anoka, MN 55303
763-231-5850
rd