HomeMy WebLinkAboutItem 06.gSeptember 15, 2015 Item No.
THOMAS MEADOWS - FINAL ACCEPTANCE OF PUBLIC STREETS AND A HOLD
HARMLESS AND INDEMNITY AGREEMENT WITH NEW MARKET BANK
September 21, 2015 City Council Meeting
Proposed Action
Staff recommends adoption of the following motion: Move to approve final acceptance of
public streets within Thomas Meadows and a Hold Harmless and Indemnity Agreement
"Agreement" with New Market Bank.
Passage of this motion will result in approval and acceptance of the developer -installed
public street improvements constructed with the Thomas Meadows subdivision and approval
of an Agreement with New Market Bank.
Overview
New Market Bank has completed the obligations of the Thomas Meadows Development
Contract and is requesting acceptance of the public street improvements and release of the
Letter of Credit "LOC". The curb and gutter and bituminous base course were constructed in
2007. The final bituminous wearing course was installed in 2008. The contractor who
performed the street improvements on this project was Ryan Contracting Company. The
street improvements for this project have been tested and inspected by WSB & Associates
and the Public Works Department. The City Attorney recommends that the City enter into the
attached Agreement with New Market Bank to protect the City against any claims. Upon
acceptance of the streets and approval of the Agreement, the City will release the balance of
the LOC.
Primary Issues to Consider
• Do the completed improvements meet City standards? All work was satisfactorily
completed consistent with the City's construction standard specifications and the
Developer has met the administrative requirements for final acceptance.
Supporting Information
• Hold Harmless and Indemnity Agreement
Zach ohnson, ty lineer
Financial Impact: $0 Budgeted:
Related Documents (CIP, ERP, etc.):
Community Values: Good Value for Public Services
N/A Source:
HOLD HARMLESS
AND INDEMNITY AGREEMENT
THIS HOLD HARMLESS AND INDEMNITY AGREEMENT (this "Agreement") is
made as of '2015, by and between the CITY OF LAKEVILLE, a
Minnesota municipal corporation ("Lakeville" or "City"), and NEW MARKET BANK, a
Minnesota corporation (`Bank").
RECITALS
A. Lakeville entered into a Development Contract with Rongitsch Properties, Inc., a
Minnesota corporation ("Developer"), dated March 14, 2007 and recorded with the Dakota County
Recorder's Office on March 25, 2007, as Document No. 2519660 for the approval and
development of the Thomas Meadows plat in Lakeville ("Development Contract").
B. Pursuant to the requirements of the Development Contract, Bank furnished
Lakeville a letter of credit for $179,527.76.
C. The letter of credit in part guarantees the obligation of the Developer to hold the
City and its officers, employees, and agents harmless from claims made by itself and third parties
for damages sustained or costs incurred resulting from plat approval and development. The
Developer shall indemnify the City and its officers, employees, and agents for all costs, damages,
or expenses the City may pay or incur in consequence of such claims, including attorney's fees.
D. The Bank has requested that the City release the letter of credit.
NOW, THEREFORE, in consideration of their mutual covenants the parties agree as
follows:
1. Lakeville hereby releases that letter of credit attached hereto as Exhibit "A".
2. Bank agrees to defend, indemnify and hold harmless Lakeville, its officers,
employees, insurers or self-insurance pool, from liens on property in the City of Lakeville, whether
or not owned by Lakeville, and claims made and damages sustained or costs incurred by Lakeville
resulting from approval and development of the Thomas Meadows plat. The Bank shall indemnify
the City and its officers, employees, and agents for all costs, damages, or expenses the City may
pay or incur in consequence of such claims, including attorney's fees. This agreement to
indemnify, hold harmless and defend is limited to $23,076.94.
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CITY OF LAKEVILLE
Matt Little, Mayor
Charlene Friedges, City Clerk
NEW MARKET B K
By
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And
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EXHIBIT "A"
TO
HOLD HARMLESS & INDEMNITY AGREEMENT
IWAI Was)la,}'.t�5lihitp.i
NEW RAWKET
Waixrfolc BANK
K-u-u.newmarketbank.com
IRREVOCABLE LETTER OF CREDIT
No. 1102
Cate. March -14.200t
TO: City of Lakeville
20195 Holyoke Avenue
Lakeville, Minnesota 55044
Gear Sir or Madam;
We hereby issue, for the account of Ron itsch Pro ernes Inc. and in your favor, our
Irrevocable Letter of Credit in the amount of $179,527.76, available to you by your draft drawn on
sight on the undersigned bank.
The draft must:
a) Bear the clause, "Drawn under Leiter of Credit No. 1102, dated March 14, 2007- of
New Market :Bank'
b) Be signed by the Mayor or Citty Administrator of the City of Lakeville.
c) Be presented for payment at 20151 Icenic Trail, Lakeville MN 55044 on or before
2.00 p.m on March 14, 2008.
This Letter of Credit shall automatically renew for successive one-year terms unless, at least
forty-five (45) days prior to the next annual renewal date (which shall be March 14 of each year),
the Bank delivers written notice to the Lakeville City Administrator that it intends to modify the terms
of, or cancel, this Letter of Credit. Written notice is effective if sent by certified mail, postage
prepaid, and deposited in the U S. Mail, at least forty-five (45) days prior to the next annual renewal
date addressed as follows, Lakeville City Administrator, Lakeville City Hall, 20195 Holyoke
Avenue, Lakeville, MN 55044, and is actually received by the City Administrator at least thirty (30)
days prior to the renewal date,
This Letter of Credit sets forth in full our understanding which shall not in any way be
modified, amended, amplified, or limited by reference to any document, instrument, or agreement.
whether or not referred to herein.
This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one
draw may be made under this Letter of Credit.
PD. Box 69.461 Main Siren, Nrw, 444, MN 55051 20111 Ictnic 7Yail, IalxMlk, MN 5U44
11276 210th Strttt W., taknrillt, MN &%U 20856 Hollwke Aixnut, t.akeWle, MN 55644
1832620
EW MAR
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BANKFDIC
www.oe,A,onarketbatik.com
This Letter of Credit shall be governed by the most recent revision of the Uniform Customs
and Practice for Documentary Credits, International Chamber of Commerce Publication No. 500.
We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall
be duly honored upon presentation -
BY.
Its
Ito. Brix 69.761 Alain Slracl, hews Market. MNS$0.5420151 lemic ?rail, IAniflt, MN 55044
11276 210th Stme! AV., LAMOv. MN 550144 2O&W Hoole Avenue. lalcevitk, MN SSM4
183262vl