2008-09-30 Cost of Utility Design Agreement
CITY OF ALBERTVILLE
AGREEMENT RELATING TO
COST OF UTILITY DESIGN
WHEREAS, Niemeyer Properties LLC (''Niemeyer'') is requesting that the City
design and install sanitary sewer and municipal water lines (''Utilities'') to serve property
owned by Wellerson, LLP and others along Wright County State Aid Highway No. 37 in
the City of Albertville; and
WHEREAS, Niemeyer has a purchase interest in the property to be served by
the Utilities; and
WHEREAS, the City has indicated that it will proceed to the design phase for
the Utilities if Niemeyer posts a letter of credit or other surety acceptable to the City for
the cost of the design of the Utilities; and
WHEREAS, the City estimates that it will cost $36,500 to design the Utilities;
NOW, THEREFORE, the City and Niemeyer agree as follows:
1. Niemeyer agrees to post a letter of credit acceptable to the City in the amount of
$36,500 to reimburse the City for the cost of designing the Utilities in accordance
with this Agreement.
2. The City shall commission the City Engineer to design the Utilities.
3. In the event the City awards a construction contract for the Utilities within three
years from the date of this Agreement, the City will include all Utility design
costs as project costs and will fund such design costs via connection charges,
acreage charges, special assessments, or any combination of the above. In such
case, the City shall release Niemeyer's letter of credit upon passage of such
ordinance or special assessment which impose such project costs.
4. In the event the City does not award a construction contract for the Utilities within
three years from the date of this Agreement, the City may draw on Niemeyer's
$36,500 letter of credit to reimburse itself for the actual costs the City incurred in
designing said Utilities, including all engineering and surveying fees incurred by
the City and all legal fees incurred in drafting this Agreement. Upon full
reimbursement of all such costs incurred by the City, the City shall release the
remainder of Niemeyer' s letter of credit.
5. Niemeyer shall renew its letter of credit at least 45 days prior to its expiration,
unless previously released by the City. In the event Niemeyer fails to renew its
letter of credit at least 45 days prior to its expiration, the City may draw on
Niemeyer's letter of credit and hold such monies in escrow to fulfill the City's
reimbursement rights as set out in this Agreement. The City shall return any
unused funds to Niemeyer after the City's Utility design costs have been fully
reimbursed.
Dated: September 30,2008
CITY OF ALBERTVILLE
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