4.11 SR 10-07-2024The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.11
Meeting Date
October 7, 2024
Prepared By
Zack Carlton, Community Development Director
Item Description
Accept Bids for Property Clean-up and Demolition
at 19176 Kent Street
Reviewed by
Zack Carlton
Cal Portner
Tina Allard
Action Requested
Approve, by motion, the proposals for property clean-up and demolition of the hazardous building at 19176
Kent Street
Background/Discussion
Earlier this year, the City Council passed a resolution ordering the repair or removal of a hazardous building
at 19176 Kent Street NW. Since then, staff and the city attorney have been working through the legal process
towards a resolution allowing the city to demolish the building, removing the public hazard.
The court approved the city's motion for summary enforcement on August 19, 2024, authorizing the city to
enter the property to remove the remaining items and demolish the structures. Once the process has been
completed, the costs associated with enforcing the order, including legal fees, can be assessed back to the
property.
Staff solicited bids for the removal of personal property, including a public auction of salvageable items,
disposal of trash and debris, and demolition of the home. After talking with numerous contractors about the
project and reviewing their proposals, staff recommends approval of the attached proposals from Your Turn
LLC and Patrick Dorn Construction.
Property clean-up is expected to begin the week of October 7, 2024, with demolition following shortly after
the items have been removed from the property.
Financial Impact
The city will pay for the costs to clean up the home, but those costs will be assessed back to the property and
can be recovered at the time of sale.
Mission/Policy/Goal
Improve citizen quality of life.
Attachments
Page 65 of 139
1. Court Order
2. Patrick Dorn Demolition Proposal
3. Your Turn LLC Property Cleanup Proposal
Page 66 of 139
S T A T E O F MI N N E S O T A
C O U N T Y O F S H E R B U R N E
DI S T RI C T C O U R T
T E N T H J U DI CI A L DI S T RI C T
Case Type: Civil Other/ Misc.
______________________________________________________________________________
I N R E:
The Matter of a Hazardous Building Located at
19176 Kent Street North west, City of Elk
River, Sherburne County, Minnesota.
Case File No.: 71- C V-24-869
J u dge Bria n ne J. B uccico ne
O R D ER F O R JU D G M E N T A N D
J U D G M E N T
______________________________________________________________________________
On A ug ust 19, 2024, at 8:30 a. m., the above-entitled matter ca me on for hearing before
the undersigned, Judge of District Court, on the City of Elk River’s motion for su m mary
enforce ment of an Order for Repair or Re moval of Hazardous Building for the property located at
19176 Kent Street North west, in the City of Elk River, Minnesota (“ Property”) under Minn. Stat.
§ 463.19.
The City was represented by Cole A. Birkeland, of Ca mpbell Knutson, Professional
Association, Grand Oak Office Center I, 860 Blue Gentian Road, Suite 290, Eagan, Minnesota
55121. No appearances were made by Dean G. Tho mpson or The Huntington National Bank.
Based on all the files, me moranda of la w, and proceedings herein, and having carefully
considered the argu ments of counsel, I T I S H E R E BY O R D E R E D:
1.The City’s Motion for Su m mary Enforce ment is hereby G R A N T E D.
2.The City is hereby authorized to enter the property i m mediately and to take any action
necessary to repair or re move the existing hazards identified in the Order for Repair or
Re moval of Hazardous Conditions. This action may include re moving t he building,
7 1- C V- 2 4- 8 6 9 File d i n District C o urt
State of Mi n nes ota
0 8/ 1 9/ 2 0 2 4
Page 67 of 139
re moval and destruction of all personal property within the building, re moval and
destruction of vehicles on the property, and the backfill and grading of the property.
3.The City may seek an assess ment on the Property of costs of the repairs, razing,
corrections, and re moval of property, including attorney’s fees and costs in accordance
with Minn. Stat. §§ 463.21 and 463.22.
4.This order shall be binding on all o wners and lien holders of record as well as their
successors in interest, if any.
5.The Clerk of Court shall either give a copy of this Order to the parties or mail a copy
of this Order to the parties by first class mail.
L E T J U D G M E N T B E E N T E R E D A C C O R DI N G L Y
B Y T H E C O U R T:
Date:________________ _______________________________
The Hon. _______________________
Judge of District Court
J U D G M E N T
I hereby certify that the above Order constitutes the entry of Judg ment of the Court.
Date: ____________________ C O U R T A D MI NI S T R A T O R:
By: __________________________
7 1- C V- 2 4- 8 6 9
Bri a nn e J. B u c c i c o n e
B uccic o ne, Bria n ne (J u d ge)
2 0 2 4. 0 8. 1 9 0 8: 4 7: 1 2 - 0 5' 0 0'
8/19/24
Page 68 of 139
19165 81st Place North • Maple Grove, MN 55311 • Phone: 612-801-6453
City of Elk River
Proposal for City of Elk River house demo
Thank you for choosing Patrick Dorn Construction, Inc. The estimate is ready for your review.
If you would like to proceed with the project, check the Disclaimer box and click the Approve button at the bottom of the estimate. Once this is
signed, it becomes the contract.
Job Address:
19176 Kent Street
Elk River, MN 55330
Print Date: 9-12-2024
Items Description Qty/Unit Unit Price Price
1010 - Building
Permits
Any permits required for the demo will be billed out at cost 1 $0.00 $0.00
1450 - Sewer
System
cave in existing septic system and fill with dirt 1 $500.00 $500.00
1460 - Gas
Service
Quality utility will remove the gas meter at no charge 1 $0.00 $0.00
1470 - Electric
Service
Line up Xcel to disconnect power at transformer.1 $500.00 $500.00
1420 -
Individual Wells
The current well is not capped. Cap existing well.
Well can range from 60' to 200' deep and there is a 20% chance that we may
have to do perforation.
Estimated cost = $2,000
Potential additional cost could be $2800, will not know final cost until Well
service company is onsite, doing the work.
1 $2,000.00 $2,000.00
1300 -
Demolition
Demo existing house and garage, haul away all debri.
remove all concrete, and backfill.
Note: this price is for all interior contents and personal property to be removed
by others
1 $24,000.00 $24,000.00
Overhead and
Profit
0.1 $27,000.00 $2,700.00
Total Price:$ , .
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Construction Contract
License No. BC723909
Registration No. QB118407
This Contract is entered into this day (date listed in the estimate above), between Patrick Dorn Construction,
Inc. (“Company”), whose principal place of business is located at 19165 81 Place North, Maple Grove, MN
55311, and the property address listed in the estimate above (“Owners”). Owners hereby certify that they are
the owners of the real property located at the address listed in the estimate above (“the Property”).
Owners hereby contract with Company to provide labor and materials (“the Work”) to improve the Property,
as defined in the Bid / Estimate provided by Company to Owners (“the Project”). Owners agree to the terms
of the Bid / Estimate, specifically including the proposed price, which terms form part of this Contract and
are specifically incorporated herein by reference.
PAYMENT AND CONTRACT PRICE
Owners agree to pay Company the sum listed in the estimate above (“Total Price”) for the Work defined in
the Bid / Estimate, and to make payment in accordance with Payment Schedule and Terms specified herein.
Owners agree to pay Company according to the Payment Terms contained in the Bid / Estimate. Invoices not
paid when due will be subject to interest at the rate of the greater of 1.5 percent per month (18 percent per
year) or the maximum rate allowed by law.
PAYMENT SCHEDULE AND TERMS
The contract price shall be paid to the Company according to an agreed upon schedule based on the format
below.
Event Percentage Amount
Initial Deposit upon acceptance 10% of Total Contract Price $2,970
$
$
Balance upon Completion 90% Remaining Balance $26,730
TOTAL CONTRACT PRICE: $29,700
If the Work is to be paid by Owners from the proceeds of a property or casualty insurance policy, and the
insurance company requires a different payment schedule than the above, Owners and Company shall
modify the Payment Schedule to comply with the insurance company requirements for payment (including
provision of sworn construction statements or lien waivers).
IF THE WORK IS TO BE PAID FOR BY AN INSURANCE COMPANY, AND OWNERS ARE NOTIFIED THAT
THEIR INSURANCE COMPANY HAS DENIED THEIR CLAIM TO PAY FOR THE WORK, OWNERS MAY
CANCEL THIS CONTRACT AT ANY TIME WITHIN 72 HOURS OF RECEIVING THAT NOTICE FROM THEIR
INSURANCE COMPANY. See Exhibit B to the Contract, which can be provided to you by the Company upon
request.
Owners are hereby notified that, under Section 325E.66 of the Minnesota Statutes, a residential contractor
providing home repair or improvement services to be paid by an insured from the proceeds of a property or
st
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casualty insurance policy shall not, as an inducement to the sale or provision of goods or services to an
insured, advertise or promise to pay, directly or indirectly, all or part of any applicable insurance deductible
or offer to compensate an insured for providing any service to the insured. If a residential contractor violates
this section, the insurer to whom the insured tendered the claim shall not be obligated to consider the
estimate prepared by the residential contractor. The residential contractor must provide a written
notification of the requirements of this section with its initial estimate.
If Owners fail to pay Company any payment(s) due under the terms of this Contract, Company may suspend
its Work without further notice to Owners. Upon any suspension of Work by Company for nonpayment by
Owners, Owners will remain liable to Company for all payments due up to the time that Work is suspended,
and for all losses or damages sustained or suffered by Company, whether direct or consequential, including
any costs to suspend or mobilize Work. Company shall restart work only upon payment by Owners of all
money due to Company, including any losses damages sustained or suffered by Company. If Work remains
suspended for a period of 14 days due to nonpayment by Owners, Company may, at its option, treat this
Contract as having been breached by Owners, and pursue all available remedies and damages.
THE WORK
Company will furnish all labor, materials, services, tools, equipment, and fixtures necessary to complete the
Work in a good and workmanlike manner. The Work shall be completed in compliance with all laws,
ordinances, building codes, and rules and regulations governing the Work.
PERMITS AND AUTHORIZATIONS
Unless otherwise agreed and included in the Contract Price, Owners shall be responsible for obtaining any
required permits, permissions, authorizations, or other approvals for proceeding with the Project, including
making any selections of materials or options. Owners shall be responsible for any repairs or changes
necessary to the structure for Company to properly complete the Work on the Project.
WARRANTIES BY OWNERS
Owners represent and warrant that they are not aware of any pending or threatened litigation, action or
administrative proceeding against them with respect the Property, nor are Owners aware of any basis or
grounds for any such litigation, action or proceeding against them or the Property. No unpaid work, labor,
or materials have been supplied to the Property upon which anyone could base a mechanics’ lien, equitable
lien, or any other type of lien against the Property.
COSTS OF COLLECTION
If Company takes any actions to enforce this Contract or collect monies owed to it by Owners arising out of
or in connection with this Contract, Company shall be entitled to have and recover from Owners all of
Company’s attorney’s fees, costs, and disbursements incurred, including pre-judgment interest.
PROPOSED PROJECT SCHEDULE
Company shall commence Work on the Project after payment of the initial deposit by Owners and after
expiration of any right of Owners to cancel the Project, and no later than 30 days of final execution of this
Contract. If the Project has not commenced within 30 days of final execution of this Contract due to failure
of Owners to make payments when due, obtain permits or authorizations, or other satisfy other obligations,
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Company shall have the right to cancel and terminate this Contract. In the event od such termination,
Company will refund any unearned payments made by Owners, and shall remove any tools, equipment, or
materials delivered to the Project.
All Work shall be substantially complete within the agreed number of days after commencement of Work.
Substantial completion shall mean completion of all work with the exception of any final punch list items.
Owners agree that Company is not responsible for delays in completion of the Work due to acts of God,
weather, strikes, war, civil disturbance or riot, shortage or delay in obtaining materials, shortage or delay in
labor or subcontracting, government regulations, court actions, delays in obtaining materials, or any other
causes beyond Company’s control, including any delays caused by Owners (specifically including, but not
limited to, Owners’ failure to make any payment to Company when due), Owner’s agents, representatives, or
guests, or any other persons, parties, or causes not under Company’s control. In the event of any such delay,
Company’s time to achieve Substantial Completion shall be extended by a period equal to the time lost by
reason of such delay. However, if Work remains suspended for a period of 14 consecutive days due to
nonpayment by Owners, Company may, at its option, treat this Contract as having been breached by
Owners, and pursue all available remedies and damages.
CHANGE ORDERS
Owners may request changes within the general scope of the Work. Any material change will only be
effective if it is the form of a written Change Order signed by Owners and Company. Owners agree that only
one signature shall be required to execute and authorize a Change Order on behalf of Owners. Owners
agree that a Change Order may result in an increase in the amount of the Contract Price, or in the amount of
time allowed for Substantial Completion. Company shall not be obligated to proceed with the Change
Order until the value of such Change Order and its effect on the time of performance or on warranties has
been agreed upon, and a Change Order has been signed by Owners and Company.
LIMITED WARRANTY
Company warrants that all work shall be completed in a workmanlike manner and in compliance with all
codes and applicable building standards and practices. In addition, to the extent that the Work constitutes a
major structural changes or addition to a residential building, the statutory warranties of Section 327A of the
Minnesota Statutes apply (see Exhibit A to the Contract). Company shall not be responsible for repairs due
to damage by wind, ice, hail, or other causes or damage beyond the control of Company. Company does
not warrant work which has not been performed by Company or its subcontractors.
SUBCONTRACTORS
Company may, at its sole discretion, engage subcontractors to perform services under this Contract, but
Company shall remain responsible for proper completion of this Contract. Upon request by Owners,
Company will provide a complete list of subcontractors and material suppliers to be used by Company on
the Project. However, Owners shall not have the power to reject subcontractors or materials used in the
Work unless specifically agreed to in writing by Company.
PHOTOGRAPHS AND TESTIMONIALS
Any photographs taken of the project before construction, in progress, and after construction, are property
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of the Contractor. The Contactor has the right to use these construction photographs to promote their
business via their website, social media, and other advertising, as applicable. The Contractor will not use the
photos for any reason other than business purposes. With the Owner’s written permission, any written
testimonials provided to Contractor by the Owner can be used to promote the Contractor’s business.
INSURANCE
Company agrees to maintain adequate insurance to comply with any requirements of statute or law. Owners
agree, upon request of Company prior to commencement of the Work, to provide Company with a copy of
Owners’ property insurance policy showing coverage for property damage and liability claims.
MODIFICATION / WAIVER
This Contract shall not be altered, amended, or modified by oral representation made before or after the
execution of this Contract. Any modifications to this Contract must be in writing and duly executed by all
Parties. Any waiver of any requirement of this Contract must be in writing, and shall be limited to the
circumstance or event specifically referenced in the written waiver document and shall not be deemed a
waiver of any other term of this Contract.
INDEMNIFICATION
Owners agree to indemnify and hold harmless Company from any physical damage to property or injury to
persons, including death, to the extent resulting directly from negligence of Owners or their agents under or
arising out of this Contract. In the event any such damage or injury is caused by the joint or concurrent
negligence of Company and Owners, the loss shall be borne by each party in proportion to its negligence.
BINDING EFFECT / ASSIGNMENT
This Contract shall be binding on and shall inure to the benefit of the Parties and their respective heirs,
executors, administrators, agents, representatives, successors, and assignees. Any individuals whose
signatures are affixed to this Contract in a representative capacity represent and warrant that they are
authorized to execute the Contract on behalf of and to bind the entity on whose behalf the signature is
affixed.
Owners shall not assign any duties, rights or obligations hereunder without the prior written consent of the
Company, which consent shall not be unreasonably withheld.
Company shall have the right to assign any part of the work to any subsidiary or affiliated company, and the
Owners agree to execute any documents reasonably required to affect the transfer to such company of all
rights and obligations associated with such portion of work.
ENTIRE AGREEMENT
This Contract, along with the Bid / Estimate, represents a single, integrated, written contract expressing the
entire understanding and agreement between the Parties concerning the subject matter hereof and
supersedes any prior agreements, whether written or oral, relating thereto.
SEVERABILITY
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The provisions of this Contract are severable. If any portion, provision, or part of this Contract is held,
determined, or adjudicated by a court of competent jurisdiction to be invalid, unenforceable or void for any
reason whatsoever, each such portion, provision or part shall be severed from the remaining portions,
provisions or parts of this Contract and shall not affect the validity or enforceability of any remaining
portions, provisions or parts, which remaining portions, provisions or parts shall be enforced as amended.
APPLICABLE LAW
This Contract is entered into in the State of Minnesota, and shall be governed by the laws of the State of
Minnesota. Owners and Company consent to jurisdiction and venue in the courts of the State of Minnesota.
NOTICES
Any Notices required to be sent or provided under this Contract shall be mailed, sent or delivered to the
parties at the addresses given below. Notices shall be deemed as delivered upon mailing or upon
transmission if sent by facsimile, or upon receipt if delivered by hand or by any other means. Notices shall
not be provided or accepted by electronic mail, but electronic mail may be used for normal correspondence
between Company and Owners.
Patrick Dorn Construction, Inc. [Owners]
19165 81 Place North [Street Address]
Maple Grove, MN 55311 [City, State, Zip Code]
ATTN: Patrick Dorn, Project Manager
MECHANICS LIEN NOTICE
Pursuant to Minn. Stat. §514.011, every person who enters into a contract with the Owners for the
improvement of real property and who has contracted or will contract with any subcontractors or material
suppliers to provide labor, skill or materials for the improvement shall include in any written contract with
the Owners the following notice, and shall provide the Owners with a copy of the written contract:
“(A) ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT TO
YOUR PROPERTY MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT
PAID FOR THE CONTRIBUTIONS.
(B) UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS WHO SUPPLIED LABOR OR
MATERIALS FOR THIS IMPROVEMENT DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT
PRICE, OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS AFTER COMPLETION OF
THE IMPROVEMENT UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY
LABOR OR MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY NOTICE.”
RIGHT TO CANCEL HOME SOLICITATION SALE
If this Contract has been entered into by Owners at a location other than the office of Company, the Owners
have the right to cancel the Contract until midnight of the third business day on which the Contract has been
entered into with Company. See Exhibit C to the Contract, which can be provided to you by the Company
upon request.
IN WITNESS THEREOF, the parties thereto have executed the document by their authorized representatives
st
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on the date first above written. The signature line is listed below this contract.
The release of this estimate acts as the electronic signature for Patrick Dorn. The date and time stamp of the
release applies for this electronic signature.
Electronic Signature: Patrick Dorn
EXHIBIT A – STATUTORY WARRANTIES
Under Section 327A of the Minnesota Statutes, various warranties apply to residential home improvement
work. That section provides specific definitions for various terms, and also requires specific dispute
resolution procedures. The full text of that section can be found on-line at the website of the Minnesota
Revisor of Statutes: https://www.revisor.mn.gov/statutes/cite/327A
If the Contract between Company and Owners is to provide home improvement work involving
major structural changes or additions to a residential building, then (1) during the one-year
period from and after the warranty date the home improvement shall be free from defects
caused by faulty workmanship and defective materials due to noncompliance with building
standards; and (2) during the ten-year period from and after the warranty date the home
improvement shall be free from major construction defects due to noncompliance with building
standards.
If the Contract between Company and Owners is to provide home improvement involving the
installation of plumbing, electrical, heating or cooling systems, then during the two-year period
from and after the warranty date, the home improvement shall be free from defects caused by
the faulty installation of the system or systems due to noncompliance with building standards.
If the Contract between Company and Owners is to provide home improvement not covered by
the above two paragraphs, then during the one-year period from and after the warranty date,
the home improvement shall be free from defects caused by faulty workmanship or defective
materials due to noncompliance with building standards.
These warranties are limited and are subject to various exclusions found in Section 327A.03, including the
following for home improvement work:
(a) loss or damage not reported by the owner to the home improvement contractor in writing within six
months after the owner discovers or should have discovered the loss or damage; unless the owner
establishes that the home improvement contractor had actual notice of the loss or damage;
(b) loss or damage caused by defects in design, installation, or materials which the vendee or the owner
supplied, installed, or directed to be installed;
(c) secondary loss or damage such as personal injury or property damage;
(d) loss or damage from normal wear and tear;
(e) loss or damage from normal shrinkage caused by drying of the dwelling or the home improvement within
tolerances of building standards;
(f) loss or damage from dampness and condensation due to insufficient ventilation after occupancy;
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(g) loss or damage from negligence, improper maintenance or alteration of the dwelling or the home
improvement by parties other than the home improvement contractor;
(h) loss or damage from changes in grading of the ground around the dwelling or the home improvement
by parties other than the home improvement contractor;
(i) landscaping or insect loss or damage;
(j) loss or damage from failure to maintain the dwelling or the home improvement in good repair;
(k) loss or damage which the Owners, whenever feasible, have not taken timely action to minimize;
(l) loss or damage which occurs after the dwelling or the home improvement is no longer used primarily as a
residence;
(m) accidental loss or damage usually described as acts of God, including, but not limited to: fire, explosion,
smoke, water escape, windstorm, hail or lightning, falling trees, aircraft and vehicles, flood, and earthquake,
except when the loss or damage is caused by failure to comply with building standards;
(n) loss or damage from soil movement which is compensated by legislation or covered by insurance;
(o) loss or damage due to soil conditions where construction is done upon lands owned by the Owners and
obtained by the Owners from a source independent of the home improvement contractor;
(p) in the case of home improvement work, loss or damage due to defects in the existing structure and
systems not caused by the home improvement.
In addition, the terms of the home improvement warranties required by Section 327A commence upon
completion of the home improvement and the term shall not be required to be renewed or extended if the
home improvement contractor performs additional improvements required by warranty, and the warranties
in Section 327A do not include products or materials installed that are already covered by implied or written
warranty.
It is important to note that Section 327A.03 requires the Owners to notify Company in writing within six
months after the Owners discovers or should have discovered any loss or damage alleged to have occurred
in the home improvement work caused by faulty workmanship or defective materials. The Owners must also
allow Company to inspect the Property to evaluate the alleged loss or damages, and to prepare a written
offer to repair. This process is detailed in Section 327A.02.
The Owners must allow an inspection for purposes of the preparation of an offer to repair the alleged
loss or damage under subdivision 5. The inspection must be performed by the home improvement
contractor within 30 days of the notification under Section 327A.02, clause (a). Any damage to
property caused as a result of an inspection must be promptly repaired by the inspecting party to
restore the property to its pre-inspected condition.
Within 15 days of completion of the inspection the home improvement contractor must provide to
the vendee or Owners a written offer to repair. The offer to repair must include, at a minimum: (1) the
scope of the proposed repair work; and (2) the proposed date on which the repair work would begin
and the estimated date of completion.
If the parties agree to a scope of work, the vendor or home improvement contractor must perform
the repair work in accordance with the offer to repair. If the parties do not agree to a scope of work,
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the Owners must submit the matter to the homeowner warranty dispute resolution process under
Section 327A.051.
This section does not prevent the Owners from obtaining the information in a written offer to repair
from another contractor or from negotiating with the vendor or home improvement contractor for a
different scope of work.
Upon completion of repairs described in an offer to repair, the home improvement contractor must
provide the Owners with a written notice that the scope of the work agreed upon has been
completed, a list of the repairs made and a notice that the Owners may have a right to pursue a
warranty claim under this chapter. Provision of this statement is not an admission of liability, and
compliance with this requirement does not affect any rights of the Owners under this Section 327A.
As noted above, if the parties do not agree to a scope of work, the Owners must submit the matter to the
homeowner warranty dispute resolution process under Section 327A.051. That process includes the
following:
The home warranty dispute resolution process is commenced by written application to the
commissioner. A request must include the complete current address and full name of the contact
person for each participating party.
Within ten days of receiving a written request, the commissioner shall provide each party with a
written list of three qualified neutrals randomly selected from the panel of neutrals established by the
commissioner. The commissioner shall also provide complete contact information for each qualified
neutral.
Within five business days after receipt of the list from the commissioner, the parties shall mutually
select one of the three qualified neutrals identified by the commissioner to serve as the qualified
neutral for their dispute. If the parties cannot mutually agree on a neutral, the home improvement
contractor shall strike one of the neutrals from the list, the Owners shall subsequently strike one of
the remaining neutrals from the list, and the remaining neutral shall serve as the qualified neutral for
the dispute resolution process. The parties shall notify the selected qualified neutral and the
commissioner of the selection.
The qualified neutral selected by the parties shall convene, and each party shall attend, an in-person
conference of the parties. The qualified neutral shall select the date for the conference after
consulting the parties. The conference must occur no later than 30 days after the neutral's selection,
except by mutual agreement of the parties. In addition, the neutral shall collect from each party an
administrative fee of $25 and shall submit those fees to the commissioner no later than ten days after
the completion of the conference.
At least seven days before the conference, each party must provide the qualified neutral and the other
party with all information and documentation necessary to understanding the dispute, or the alleged
loss or damages.
After reviewing the information and documentation provided by the parties and after consulting with
the parties at the conference, the neutral shall issue to the parties a nonbinding, written
determination, which must include, to the extent possible, findings and recommendations on the
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scope and number of repairs necessary, if any. The qualified neutral shall mail the determination to
each party within ten days after the conference.
The parties shall share the expense of the qualified neutral's billed time equally, unless otherwise
agreed. The neutral's billed time for evaluation of documents, meeting with the parties, and issuing a
written determination must not exceed six hours, unless agreed to in writing by both parties. The
neutral must identify the neutral's hourly rate to the parties.
The written determination issued by the qualified neutral and all communications relating to the
home warranty dispute resolution process, except those between any party and the commissioner, are
deemed confidential settlement communications pursuant to Rule 408 of the Minnesota Rules of
Evidence.
No party may use the written offer of repair provided by a vendor or home improvement contractor, a
counteroffer to repair, or a written determination issued by the qualified neutral as evidence of
liability in subsequent litigation between the parties. The qualified neutral may not be called to testify
regarding the dispute resolution proceedings.
Any amount paid by a party for the services of a qualified neutral under this section is deemed a
taxable cost of the prevailing party in a subsequent litigation involving the same subject matter.
If both parties agree, the parties may designate an alternative dispute resolution process in lieu of
participating in the home warranty dispute resolution process established by Section 327A.051. If the parties
agree to an alternative dispute resolution process, they shall provide written notice of the agreement and a
description of the selected process to the commissioner as soon as practicable, but no later than the date
the parties are required to select a neutral. Failure to strictly comply with the timelines in this section shall
not be grounds for dismissal of any claim brought under Section 327A.05, provided that the parties establish
good faith effort in complying with Section 327A.051.
If the dispute resolution process is not successful in resolving the dispute between Owners and the home
improvement contractor, the Owners may proceed to commence an action against the home improvement
contractor.
The applicable statute of limitations and statute of repose for an action based on breach of a warranty
imposed Section 327A, or any other action in contract, tort, or other law for any injury to real or personal
property or bodily injury or wrongful death arising out of the alleged loss or damage, is tolled from the date
the written notice provided by the Owners is postmarked, or if not sent through the mail, received by the
home improvement contractor until the latest of the following:
(1) the date of completion of the home warranty dispute resolution process under Section 327A.051; or
(2) 180 days.
If the home improvement contractor fails to perform an inspection or fails to make an offer to repair or
perform agreed upon repairs, the Owners may commence an action. For all other cases for which the statute
of limitations or statute of repose is tolled, an action must not be commenced in district court until the
earlier of:
9/12/24, 9:13 PM Proposal Print
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(1) the completion of the home warranty dispute resolution process under Section 327A.051; or
(2) 60 days after the written offer of repair is provided to the Owners.
9/12/24, 9:13 PM Proposal Print
https://buildertrend.net/app/LeadProposal/Print/10081477 11/12Page 79 of 139
I confirm that my action here represents my electronic signature and is binding. This is a legal contract. I agree to have Patrick Dorn Construction,
Inc. start construction as agreed per the contract.
Signature:
Date:
Print Name:
9/12/24, 9:13 PM Proposal Print
https://buildertrend.net/app/LeadProposal/Print/10081477 12/12Page 80 of 139
Dear City of Elk River,
We are pleased to submit our proposal for the clean-out and auction services required at
the property located in your jurisdiction. Given the condition of the house—particularly the
roof caving in at various points and the presence of mold in the basement—we understand
the urgency and complexity of this project.
Scope of Work:
1. Clean-Out and Disposal
We will provide all necessary labor, equipment, and disposal services to safely and
eƯiciently clean out the property. Our team will handle the removal of debris,
damaged materials, and unsalvageable items.
o Total Estimated Labor: 128 hours
o Labor Rate: $75 per hour
o Total Estimated Cost: $9,600
This estimate accounts for the labor required due to the hazardous conditions, including
the collapsed roof and mold remediation in the basement.
2. Dumpster, Disposal Fees, Truck Rental
Based on the condition of the property, we anticipate requiring four (3) 40-yard
dumpsters to remove waste and discarded items.
o Dumpster Fee (per unit): $800
o Total Estimated Dumpster Fees: $2,400
o Truck Rental (Bringing Items from property to secure warehouse in Eden
Prairie): $600.00
These fees will be deducted from the auction commissions.
o Auction of Valuable Items
Our team will evaluate and manage the sale of any items of value remaining
in the house. We estimate that these items will generate between $25,000
and $30,000 at auction. This includes the eƯort to catalog, photograph, and
list the items for sale. All marketing and advertising costs will be covered by
our company. Additionally, the City of Elk River’s assistance in promoting
the auction through social media, newsletters, and other communication
channels would greatly help in reaching a broader audience, potentially
increasing the auction’s visibility and overall sales.
Page 81 of 139
o Revenue Split: 50/50 split of net proceeds from paid auction invoices
After the auction, any unsold items will be discarded at additional cost to the City of Elk
River.
3. Additional Services
The following services are included in our fee:
o Advertising and promotion of the auction
o Management of the entire sale process, including item descriptions and
photography
o Discarding of unsold items post-auction
We believe our expertise, combined with a transparent cost and revenue-sharing model,
ensures that this project will be completed eƯiciently and with maximum return on any
salvageable assets.
Thank you for the opportunity to assist in this important project. We are available to
discuss further details and answer any questions you may have.
Sincerely,
John Allaire
Your Turn LLC
Contact@yourturnsale.com
Page 82 of 139