3.9. SR 03-17-2008REQUEST FOR ACTION
To Item Number
Ci Council 3.9.
Agenda Section Meeting Date Prepared by
Consent March 17, 2008 Te Maurer, Public Works Director
Item Description Reviewed by
Road Use and Maintenance Agreement for Aggregate Industries
and Gemstone Companies Reviewed by
Action Requested
Approval of the road use and maintenance agreement for 213' Avenue from TH 169 to the
Aggregate Industries' and Gemstone Companies' property.
Background/Discussion
This piece of roadway used to be County Road 77. With the realignment of Proctor Avenue and
CSAH 33, this portion of roadway was turned back to the City of Elk River. Aggregate Industries
and Gemstone Companies use this portion of 213` Avenue to access TH 169 from rhea property
gate. They would like the ability to haul normal size loads from their property, even during spring
weight restrictions. Rather than provide a permit for each vehicle leaving their property, we have
decided to approach this issue from a road use and maintenance agreement. The agreement that
has been reviewed by City Attorney Peter Beck calls fox Aggregate Industries and Gemstone to
pay fox any damage caused by their overweight trucks during the spring road restrictions. The
agreement is on a one-year basis that automatically renews January 1, unless either party notifies
the other in writing that the agreement will not be renewed.
City staff feels that this is an appropriate way of maintaining the operation of their business in the
spring of the year. Ultimately, as this area is mined out and reclaimed for other uses, it is likely
that this portion of roadway will be mined under and reconstructed, just as Proctor Avenue south
of CSAH 33 was recently.
Financial Impact
There should be no financial impact to the city due to this agreement
Attachments
• Road Use and Maintenance Agreement
Action Motion by _ Second by Vote
Follow Up
S:\EngineetImpiovPxoj\20(N Improvement Projec[s\CH 33LH 77 Aeafignmenc\03 17 OS cc Road Main[ AgmGdoc
ROAD USE AND MAINTENANCE AGREEMENT
This Road Use and Maintenance Agreement (the "Agreement") is made this
day of March, 2008 by and between Aggregate Industries -North Central
Region, Inc., a Minnesota corporation (hereinafter referred to as "Aggregate'), Gemstone
Products Company, Inc., a Minnesota corporation (hereinafter referred to as "Gemstone")
and the City of Elk River, a municipality (hereafter referred to as "City"), collectively
referred to as the Parties.
RECITA>Js
WHEREAS, the subject of this Agreement is that certain east -west section of
roadway situated in the City of Elk River, Sherburne County, Minnesota, known as 213x'
Avenue as depicted on the attached Exhibit A (the "Roadway"); and
WHEREAS, the Roadway has been turned over by Sherburne County to the City,
and
WHEREAS, Aggregate is the owner of real property located in the City, situated
adjacent to the Roadway, as depicted on the attached Exhibit A; and
WHEREAS, Gemstone is the owner of real property located in the City, situated
adjacent to the Roadway as depicted on the attached Exhibit A; and
WHEREAS, Aggregate and Gemstone desire to use the Roadway for ingress and
egress purposes by over weight tucks during the spring road postings; and
WHEREAS, City agrees to allow Aggregate and Gemstone to use the Roadway
for ingress and egress purposes for over weight trucks during the spring road postings,
provided Aggregate and Gemstone agree to certain terms.
NOW THEREFORE, for good and valuable consideration, the Parties agree to
the following conditions:
Use of Roadwav. Aggregate and Gemstone may use the Roadway for
ingress and egress purposes only.
2. Term of Agreement. The term of this Agreement shall be for one year,
commencing on January 1, 2008 through December 31, 2008. This
Agreement shall automatically renew on January ls` each subsequent year,
unless one of the parties has given written notice to the other parties on or
before the preceding December 15~ of its intent not to renew the
Agreement, in which case the Agreement shall automatically terminate at
the end of the then current one-year term.
3. Maintenance and Upgrades. It is anticipated that Aggregate and
Gemstone's use of the Roadway will result in increased maintenance costs
for damage caused by overweight trucks during the spring road closings.
Aggregate and Gemstone therefore agree to repair and maintain the
Roadway as directed by the City while this Agreement is in effect. The
cost of such repair and maintenance shall be borne by Aggregate and
Gemstone according to a separate agreement between Aggregate and
Gemstone.
4. Indemnification. Aggregate and Gemstone agree to indemnify and hold
the City harmless from any claims by third parties related to their use of
the Roadway for overweight trucks and/or their activities to repair and
maintain the Roadway as required by this Agreement.
5. Notices. All notices shall be in writing and shall be deemed to have been
duly given and effective: (i) on the date of delivery, if delivered
personally; (ii) on the earlier of the third (3) business day after mailing or
the date of the return receipt acknowledgement, if mailed by first class
mail, postage prepaid, by certified or registered mail, return receipt
requested; or (iii) on the day after delivery to Federal Express or a similar
overnight courier or the express mail service maintained by the United
States Postal Service. Notices shall be made to the addresses set forth
below:
If to Aggregate: Aggregate Industries -North Central Region, Inc.
Attention: Bob Bieraugel
2915 Waters Road, Suite 105
Eagan, MN 55121
Telephone: (651) 683-8133
Facsimile: (651) 683-8182
If to Gemstone:
Gemstone Products Company, Inc.
Attention:
Gemstone Products Company
2025 Centre Point Blvd
Mendota Heights, MN 55120
Telephone: (651) 688-9292
Facsimile: (651) 688-0124
If to City: City of Elk River
Attention: Public Works Director
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330
Telephone: (763) 635-1051
Facsimile:
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6. State Law. Minnesota law governs this Agreement.
7. Entire Agreement This Agreement constitutes the entire understanding
and agreement of the Parties, and no representations, documents, promises
or agreements, oral or otherwise, trade usage, or course of conduct
between the Parties not embodied herein will be of any force or effect.
IN WITNESS WHEREOF, the Parties hereto have duly executed this
Agreement as of the date first set forth above.
Aggregate Industries -
North Central Region, Inc.
By:
Its:
By:
Gemstone Products Company, Inc.
By:
Its:
By:
Its:
City of Elk River
By:
Its:
By:
Its:
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