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HomeMy WebLinkAbout5O Ponds Park Storage Building Report4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: 26, 2016 AGENDA #: SEPTEMBER 5O PREPARED BY: KATY GEHLER, PUBLIC WORKS DIRECTOR PRESENTED BY: KATY GEHLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE EXECUTION OF A USE AGREEMENT WITH THE PRIOR LAKE ATHLETICS FOR YOUTH (PLAY) ASSOCIATION FOR THE CONSTRUCTION OF A STORAGE BUILDING AT PONDS PARK. DISCUSSION: Introduction The purpose of this item is to authorize the Mayor and City Manager to execute a Use Agreement with the Prior Lake Athletics for Youth (PLAY) Association for the construction and use of a storage building at Ponds Park. History PLAY has identified an operational need for more storage space to address their growing inventory of equipment. They were originally looking to add on to the Ponds Park football storage building but no feasible design would fit the limited space in that area of the park. They then requested to build a standalone building in an undeveloped corner of Ponds Park that would be much more convenient to both Ponds and Ryan Parks, and provide the additional space they need for stor- age and operation of their growing programs. The attached map shows the pro- posed location on the south side of Ponds Park. Current Circumstances Staff has worked with PLAY to develop a building that serves their needs. The building proposed will be a 28’ by 36’ slab on grade, wood construction with a ga- bled roof. There will be limited storage in the attic for items in more long term stor- age. This building will not be heated or have utilities extended except for electric- ity for lighting. The PLAY Board took action to contribute the cost of the building in the amount of $48,000. In addition to the material and contract costs, the city’s contribution for the building is the project management and most of the labor to complete the building. Once completed, the building becomes an asset of the City and a responsibility of the city to maintain. To acknowledge the contribution, a use agreement has been drafted which guarantees the use of the building for a minimum of 10 years with the potential to renew or extend the use. The agreement is attached for City Coun- cil consideration. 2 Conclusion Staff is asking for approval of the agreement so work on the building can proceed. Pending approval, the foundation and slab will be poured the week of Oct. 7 with framing and exterior work starting a week later. ISSUES: The City has historically worked in collaboration with the athletic associations to address needs at the athletic facilities. Specifically, the City has received contribu- tions from PLAY for other storage facilities and field improvements. As funding re- sources remain constant, these collaborations are key in addressing park needs. Approval of the use agreement will allow the City to confidently move forward with the project with commitment from PLAY. Payment of the funds will include fifty percent up front with the remaining after the project is complete. FINANCIAL IMPACT: The City will contribute the project management and most of the labor in an amount estimated to be $10,000. The material costs and contract work are esti- mated to be $48,000 and will be reimbursed by the funds contributed by PLAY. The approving resolution also provides for a budget amendment to include the ex- penditures in the Parks budget 101-45200.00-55530.00 and the revenues in 101- 45200.00-34760.01. ALTERNATIVES: 1. As part of the consent agenda approve a resolution approving the Use Agree- ment with PLAY for the Ponds Park Storage Building project. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Staff recommends alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-XXX A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A USE AGREEMENT WITH THE PRIOR LAKE ATHLETIVS FOR YOUTH. Motion By: Second By: WHEREAS, Prior Lake Athletics for Youth has expressed interest in a storage building at Ponds Park; and WHEREAS, The cost of the building will be paid by Prior Lake Athletics for Youth. The contribution amount will be based on the final cost of the building and is estimated to be $48,000; and WHEREAS, The City will provide project management and act as the general contractor for the completion of the construction; and WHEREAS, The City will enter into a use agreement with Prior Lake Athletics for Youth to guarantee space in the building for a minimum of 10 years. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council authorizes the Mayor and City Manager to execute the Use Agreement with Prior Lake Athletics for Youth for the construction and use of a storage building at Ponds Park. 3. The Parks Budget is amended to reflect the revenues from the Contributions from Prior Lake Athletics for Youth and the expenditures for the project. PASSED AND ADOPTED THIS 26th DAY OF SEPTEMBER 2016 VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager 1 DEVELOPMENT AND FACILITY USE AGREEMENT BY AND BETWEEN THE CITY OF PRIOR LAKE AND PRIOR LAKE ATHLETICS FOR YOUTH THIS DEVELOPMENT AND FACILITY USE AGREEMENT (the “Agreement”), is made as of the _______ day of _____________________, 2016 between THE CITY OF PRIOR LAKE, a municipal corporation under the laws of the State of Minnesota (the “City”) and THE PRIOR LAKE ATHLETICS FOR YOUTH (P.L.A.Y.), a nonprofit corporation under the laws of the state of Minnesota (the “Association”). RECITALS: WHEREAS, the City is the owner of certain land in the County of Scott, State of Minnesota, known as Ponds Park (the “Park”) as shown on Exhibit A attached hereto and made a part hereof; WHEREAS, the City will construct a building in the Park to provide storage (“Building”); WHEREAS, the Association has promised a financial contribution toward the construction of the Building in exchange for use of the Building as provided in this Agreement; NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants, conditions, and promises set forth in this Agreement: 1. Building. The Association shall be granted exclusive use of the Building identified on Exhibit B, attached hereto and incorporated herein, (“Premises”) pursuant to the terms and conditions of this Agreement. The Association may begin use of the Premises upon payment of the Financial Contribution defined below. 2. Association’s Financial Contribution. The Association shall pay to the City as a financial contribution toward the construction of the Building $48,000 (“Financial Contribution”) to cover materials and contract work. Half of the payment will be due on October 31, 2016. The final payment will be due once the project is complete and final costs are calculated. 3. Term. In consideration for its Financial Contribution, the Association shall be permitted to use the Premises for storage. The term of this Agreement and the Association’s right to use the Premises for storage shall expire on December 31, 2026. 4. No Additional Financial Obligation. The Association shall be under no obligation to make any payments to the City for use of the Premises pursuant to this Agreement, other than the Financial Contribution set forth above. 2 5. Building Rules and Regulations. The City may, in its sole discretion, adopt and enforce rules and regulations for the use and occupancy of the Building. The Association, its members, agents, employees, officers, invitees or anyone who uses the Building pursuant to this Agreement (collectively “Association Affiliates”) agree to follow all such rules and regulations adopted by the City. The Association and all Association Affiliates shall use the Building solely for storage and shall comply with all reasonable requests of the City relating to use of the Building. If the Association fails to follow any such rules and regulations the City may terminate this Agreement and the Association shall no longer have any rights to use the Premises. 6. Inspection. The City shall, at all times, have the right to enter the Building and the Premises for purposes of inspection and to enforce any provisions of this Agreement; provided, however, no liability shall be imposed upon the City for any failure to inspect or enforce. 7. Building Owned By City. The Building shall at all times be the sole property of the City. The Association’s only interest in the Building shall the right to use the Building as set forth herein. 8. Insurance. The City shall maintain insurance coverage for damage to the Building. The Association shall obtain and maintain commercial general liability insurance protecting the City and the Association against liability for all injuries to or death of any person or damage to or loss of property arising out of or in any way relating to the Associa tion or Association Affiliate, their property, or their use of the Building. City shall not be responsible for any personal injury, death or property damage arising from or relating to the Association or Association Affiliate, their property or their use of the Building. 9. Indemnification. The Association shall indemnify, defend and hold harmless the City, its officers, employees and agents, with respect to any loss, liability, injury or damage that arises out of, or is in any way related to the acts or omissions of the Association or the Association Affiliates use of the Building. 10. Destruction of Building. If, at any time during the term of this Agreement, the Building shall be damaged or destroyed, the City shall have sole discretion as to whe ther the Building shall be repaired or restored. The City may consult with the Association in making such a decision, but shall not be required to do so. If the City, within one year of the destruction or damage, determines to repair or restore the Building this Agreement shall remain in effect and the Association shall pay to the City the costs of any such repair or restoration that is not covered by the City’s insurance, including any deductible. If the Association fails to pay the costs as required herein the City may terminate this Agreement and the Association shall have no further rights to use of the Building or Premises. If the City, within one year of the destruction or damage, determines not to repair or restore the Building or does not make a determination regarding repair or restoration, this Agreement shall terminate automatically. The City shall not be liable to the Association for the destruction of the Building, the loss of Association personal property or the decision relating to repair or restoration. 3 Under no circumstances shall the City be obligated to repay the Financial Contribution the Association pays to the City pursuant to this Agreement; provided however, the City may elect, in the City’s sole discretion, to refund a portion of the Financial Contribution to the Association if the City receives “excess insurance proceeds”. As used in this paragraph, “excess insurance proceeds” constitute those insurance proceeds remaining after deduction of all costs incurred by the City in relation to the damage or destruction of the Building including but not limited to repair, restoration, demolition, site restoration, and administration. 11. Damage to Building. If the Building is damaged arising out of or in any way related to the Association or Association Affiliate’s use of the Building, the Association shall be liable to the City for all damage caused. The City shall evaluate the damage and provide a written invoice to the Association setting forth the amount due to the City. The Association shall pay any amounts due within 30 days of receipt of the invoice. The Association’s payment to the City for damage to the Building shall not obligate the City to repair the Building. 12. Surrender of Premises. Upon termination or expiration of this Agreement, the Association shall remove all equipment and personal property from the Premises. The Association shall surrender the Premises to the City in the same or similar condition as when the Association’s use began excepting ordinary wear and tear. 13. Good Faith Negotiation. At the expiration of this Agreement the City shall for a minimum of 90 days negotiate in good faith with the Association to extend or renew the Association’s use of the Premises with terms and rent mutually agreeable to both parties. 14. Assignment. The Association may not assign or delegate its rights and obligations under this Agreement to any other party without prior written approval from the City, which may be denied in the City’s sole discretion. 15. Data Practices Act. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). The Association, in performing any of the functions of the City, shall comply with those requirements as if it were a government entity The City does not consider the storage of private equipment pursuant to this Agreement to be a government function, however if it is found to be a government function by the legislature or a court of competent jurisdiction the Association shall comply with the Data Practices Act. All subcontracts entered into by Association in relation to this Agreement shall contain similar Data Practices Act compliance language. 16. Discrimination. In performance of this Agreement, the Association shall not discriminate on the grounds or because of race, color, creed, religion, nation origin, sex, marital status, status with regard to public assistance, disability, sexual orientation, or age against any employee of the Association, any member of the Association, or any applicant to the Association. The Association shall include a similar provision in all contracts with contractors involved in the Project. The Association further agrees to comply with all aspects of the Minnesota Human Rights Act, Minn. Stat. § 363.01, et seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 4 17. Entire Agreement. This Agreement and the Exhibits contained herein constitute the final and complete agreement of the parties and shall supersede and replace any prior oral or written agreements between City and Association. Any subsequent modification must be in writing signed by both parties. 18. Limitation of Remedies. In the event of a breach of the Agreement by the City, the Association shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 19. Governing Law. This Agreement shall be governed and construed under the laws of the State of Minnesota and the parties agree that an y actions arising out of or related to this agreement shall be venued in the State of Minnesota, Hennepin County District Court. IN WITNESS WHEREOF, the parties to this Agreement have hereunto set their hands as of the date set forth above. CITY OF PRIOR LAKE By ________________________________ Kenneth L. Hedberg, Mayor By ________________________________ Frank Boyles, City Manager PRIOR LAKE ATHLETICS FOR YOUTH (P.L.A.Y.) By _________________________________ Its: 5 EXHIBIT A THE PARK W IL D E R N E S S T R L S E HORIZONTRLSE H O RIZONTRLSE OAKWOODCIRSE W E S T O A K P O I N T D R S E WOODVIE W CTSE R I D G E W O O D C T S E 170 ST E PONDS PKWYSE P O N D S E D G E L N S E ThePondsPark Scott County GIS Pond s Par kOverview Parks Pond/Lake Marsh Storm Pond \\plfile01\gis\Parks\Parks by Name\The_Ponds\Ponds_PLAY_Shelter_2016.mxd 0 100 200 300 400 500Feet 456712 456783 456718 456781 456723 456787 456717 456716 456778 456742 456721 456744456782456714 ?A13?A282 PriorLakeLocation M a p City of Prior Lake Public W orks Departmen t City of P rior Lake²Minnesota 2016 Proposed StorageBuilding Exhibit A 6 EXHIBIT B THE PREMISES P O N D S P K W Y S E The PondsPark Scott County GIS Pond s Par k Stora ge BuildingPremises Parks Pond/Lake Marsh Storm Pond \\plfile01\gis\Parks\Parks by Name\The_Ponds\Ponds_PLAY_Shelter_ExhibitB_2016.mxd 0 25 50 75 100Feet 456712 456783 456718 456781 456723 456787 456717 456716 456778 456742 456721 456744456782456714 ?A13?A282 PriorLakeLocation M a p City of Prior Lake Public W orks Departmen t City of P rior Lake²Minnesota 2016 Proposed StorageBuilding Exhibit B