265106 WHI7E - CITV CLERK �����
PINK - FiINANCE CO1111C11
CANAR`- DEPARTMENT GITY OF SAINT PAIIL File NO.
BLUE - MAYOR
� cil Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLVED, that the Council of the City of Saint Paul
does hereby approve and authorize execution of agreement
whereby the City will obtain the services of The Towle
Company in assisting the City in the operation and main—
tenance of the Lowry Annex, as more particularly set forth
in the said agreement, a copy of which is attached hereto,
the eosts of such service to be eharged to Fund 3 O �/4 O
Approved as to funding:
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X Rog Matt o Director
Dept. of Finance and Management Services
COUIVCILMEN Requeste artment of: �it dministrator
Yeas Nays
Christensen '
Hozza In Favor
Levine �
Rcedler Against By Thomas J. Kelle,y
Sylvester
T-�C'7C4"
President Hunt
Adopted by Council: Date M� 4 �� Form Approve y ity ttorney
Certifie Council Secretar�, BY
By
Appro d by Mayor: Date M s �� Approved Mayor b is ' to cil
By By
PUBLISHED MAR A 1975
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'� - CITY OF SAINT PAUL ��51_�6
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Rose Mix � •i2,�s;%�::• � Albert B. Olson
City Clerk a»d � �-�."'-•�" ~ Co�c�tcil Rccorder
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Cou�icil Secretary ��, �e
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OFFICE OF THE CITY CLERK BUREAU OF RECORDS
386 City flall St. Paz�l,161innesota 5510°l
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Pho�ie 293-l�.^�31 �
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fieb�c�aa-ry i�+, 1975
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Counci7l::an Robert Sylvester
Cliairr�,an, Fiiiunce Co��;r;�ittee
7th Fl�or, City 3�a,11
I'iea-r Sir:
il?e City Co��r_cil re_^erl�ed to f,he l�'3_r��nce Cor�2iiittee for
cansidc;�a,;'.on �.ild recc,;i:�.,e�idatio?i f;ne rol_�o�r�ng r�-.�olu�?ens
Fx.1d Ui'c;?Y)t'ilce:
�r
.l. ^eso�i��-ion t_��:nsfe-r?•�_»�; �,�jj,00C from Contin�;ent
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Rese-r��e -- Specifl_ed �.nd :;209,250 f_olil Contingent
Rese�:ve -- r�eclica�ed �o a new ac�iv�t� in General
Go�ern_ment Accoun�s �or T:c;�rry �r_i:ex - �ccuisi�ion ;
a?�d Rerr�ociela.ng. [
?_. F��solution w�»�oyino execution of �i ag-reer.?ent �
w�i�:re�y tne City wi11 o��ain sei�vices of tiie
�Gi4T1e ~o;��rp2_ny -n <:.ss�si�ing the Cit�y in ±he op�ration '
��n_d r:���i7i�c:��.nce oi t_?e To;4iy An?�ex. i
T. �t L• k • i• L
3. _,c:o.�u"io�l �:.�,.�l�orizin� execu�.,_on of an a�-z�e�.r�.en�
�lli.h I�oi72'y I�;cd_ic31 Ct'i?i:�'i .t"-_:S�)�:?-'lii.�s p:COV7_dl.rig °
i.
�or tr�e lcase of t�ie I,c;vey l.n.��x �*i'.;h option to �
p�_zrch�se.
�+. Cly' 2050?0 - An o-rdinance �,.rnc��dirl� 1�75 bu�et
to �rovide for supplelr�eri�;al uppY�opriatior�s in
the amoant of �250,OOU ior Lozti-ry r:nnex - Acquisi�ion
2nd Rev�odeling. ;
Ve- truly yours, I'
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City C1e-rk ,
ABO:sm C��
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CTTY IIi1LI., t�?�'NEX - PROPERTY M�NAGEM�NT AGRE�M�NT
. THIS AGR�EMENT, Made and entered into this day of
March, 19?5, `by and bet�veen the CITY �I' SAINT PAUL, hereinaiter
re�errecl to as "City", and L-he TOtaLE R�AL ESTATE COMPANY, a
Minnesota corporation, hereinaF�er designated as "Manager" ;
WITNESSETH:
W€i�REAS, The City has �eased �aith an option ta purchase the
City Hall Annex (Lowry Medical Arts Annex) , located at Fourth
Street bet�aeen Wabasha arid St. Peter Streets in th�e City o� Saizzt
Paul, Minnesota. This- building was formerly used for m�dical and
dental office purposes, and the City wili be converting the build--
ing from its present us� to i�hat of governmental office purpos�s .
The City requires the servic�s of a manager i�o manage the property
for the p�urpose of colZecting rent from the present medical and
' dental tenants, pravide security services and other services ,
necessary for an .office building, and to assist the City in the
conv�rsio�.z and remodeling of the exisi:ing build�ng to City-Gov-
ernmental office Purposes; and
WHEREAS, The Manager has the professianal and techna.cal exper-
tise and capab�lii�y of assisting the City in the above endeavor
and has agreed to do sa in accordance with the terms and conditions
set forth belo�a;
NOW, TIILI2�I'OItE, TO Cf112P.Y OUT TI-iE AIiOVE PURPOS�S, Thc� Ci ty and
Mana�cr, for the considerations hereinafi:er set �orth below, do
. her.eby muCually agree as follows :
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TERM �
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The City herc�by employs Manager �or the purpose of managing .
the �roperty known as the C�_ty Hall An�ex (formerly the Lo�ary
Medical Annex Building) , to perform those duties and f_unctions set
forth below, far the consicleration set forth below, f_or a period
of t�hree years �eginning on the __ day of �
1975, ar�d terminating on �he day af �
1978, and co�.ztinuing thereafter from year to year un.less �ither •
City or Manager elects to terminate this Agreement by giving written
notice to the other party sixty (60) days prior to the end of any
surh yearly period. .
II . � �
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COMPENSATION �
In consideration for the services to be provided hereunder,
the Cii�y agrees to pay Manager the sum of iwenty-Five Thousand ,
($25,000.04) Dollars for the first year of this contraci� and the
sum of Twenty Thousand ($20, 000.00) Dollars for each of .the second
and i:hird years of this Agreement and for any year follo�,�ing the
end of the third year. The annual compensation shall be paid by
the Cii:y to Mariager prorated over a twelve (12) month period, and
shall Ue paid by Cii�y at i�he same time that City remits monthly
payments to Manager for services set forth below and in accordance
with the approveci Uucige� and itemized statement submitl:ecl by
Manager.
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IIT.
- MANAGERIAL DUTIES AND AUTH�RITY
The City hereby grants to the Manager the following authority,
and the Mai�ger does hereby agree L-o perform the following services:
A. Fu11 and complete management and control o� the City Hall
Annex with authority to collect all rents and other moneys and
securities from tenants in the property and issue receipts therefor.
B. Under the supervision ot the City' s Direc�or of' Fina.nce
and Ma.nagement Services, to negotiate new leases and renewals of
existing leases in accordance with schedules approved by the City,
which new leases and renewals shall be approved and executed by the ,
proper officers ot the City. " .
C. To maintain the premises in a manner sai:isfactory to the
City, to have minor repairs made, to purchas� necessary supplies,
to pay all bills on behalf of the building ogerations and on behalf
of the City; provided, �ZOwever, that the City' s accoun� shal•1 be
� credited with all discounts given by suppliers and cont.ractors on
the cost of all repairs or operational expenses incurred by the
Manager. The City' s approval sha11 first be obtained on any repairs
that may exceed the sum of Five Hundred ($500.00) Dollars in cost.
City shall be obligated to pay the actual cost of all such repairs
and supplies, and Ma.nager shall not be entitled to receive any fee,
cotrnnission, percentage, Urokerage fee, or any other consideration
contingen� upon or resulL-ing from the award or malcing of the
-� purchase of such rePairs or supplies .
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� D. To propose and upon approval of the City, to execute a . :
calendar-year budget for the operations, maintenance and repair of
the building. This budget is to be prepared on forms provided by
the City and submitted to the City on the schedule established by
it.
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E. To serve vacate notices on tenants and with the. assistance
of the City' s Attorney bring legal aetions to evict tenants and re-
cover rents . .
. , F. To hire, discharge, and employ, as its employees, persons
. necessary for the maintenance and operation of the building, the
� said employ�es to be the Manager' s employees or employees of the
Manager' s affiliate, the Towle Ma.nagement Company.
G. For �the purposes of this Agreement, the Ma.nager shall be �
deemed to be an independent contractor, and not an employee of tYie
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. City. Any and all employees of the Manager or other persons, while
engaged in the performance of any work or services required by the �
Ma.nager under this Agreement, shall not be considered employees of
the City, and any and all claims that may or might arise under the
Workmen's Compensation Act of Minnesota on behalf of said employees
or other persons while so engaged, and any and all claims made by
any third party as a consequence of any act or omission on the part
of the Manager' s employees, or other persons while so engaged on � ',
any of the work or services to be rendered, shall in na way be the
obligation or responsibility of the City. The Ma.na.ger shall pay,
as they become due, all just claims for work, tools , machinery, '
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skills, materials, insurance premiums, equipment and supplies
furnished, rendered or performed in the execution of this Agreement.
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IV.
S�RVICES TO BUILDING
The Ma.nager will manage, supervise, and provide either by its
� own employees or under contract to the Manager or to the City, the
following services and levels of service:
A. Cleaning of all occupied offices, corridors and common
areas on a daily basis including; but not limited to, dustin�; of
furniture, cleaning ash trays and emptying waste baskets .
B. Repair of elevators including parts, oil and �rease. �
C. Window washing on the interior and exterior on a bi-monthl.y `
schedule . �,-
' D. Operation, maintenance, repair and metering of all util-
ities for which the City is responsible under its lease with ogtion
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agreement and to other building owners on the same block on which
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the City Hall Annex is located. . .
E. Maintenance of the two wells servicing the building.
F. Preventive rnaintenance on a schedule previously agreed to
by the City.
G. Operation and ma.intenance of the power steam plant includ-
'; ing the purchase of fuel or the purcha.se of fuel under the City' s
contract at the City' s discretion.
H. Provide physical security appropriate to the City Hall
Annex building use and operation.
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I. Manager' s employees' expense and contract service ex- •
penses shall be enumerated in the budget set forth in Article II
above. � . .
. . V. .
RE�TENUES AND EXPENSES; FIDELITY BONDS
Ma.nager shall eollect all rent due to the City. Ma.na.ger does
not guarantee the payment of rentals by the tenants, but will make
every reasonable effort to collect the same when and as they become .
due. Ma.na.ger shall remit net revenue to City together with item-
ized statement in duplicate of receipts and expenditures, on or
bef ore the 15th day of the next succeeding month. Such statement '
shall be accompanied by invoices showing location and detailed •
description of work and services performed supporting al1 disburse-
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ments, and the amounts se�t forth sha.11 stand as approved by City
unless exceptions are ma.de thereto prior to the rendering of the
next succeeding month' s statement. . Should expenditures exceed re-
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� ceipts, City will promptly reimburse Ma.nager upon receipt ot written �
� demand. All collections ma.de by the Ma.nager shall be deposited in '�
its Trust checking account, and the Ma.nager sha.11 ma.intain separate
ledgers in its books or records for all income expenses and reve�
nues . Records of the Manager' s expenses incurred for the purposes
of this Agreement sha.11 be kept on a generally recognized account-
ing basis and shall be available to the City at mutually convenient
times. The City reserves to itself the right of audit of all
' financial transactions that the Manager ma,kes under this Agreement,
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� to be made during usual office hours. Manager shall provide the
. City, in form approved by the City' s Attorney, a fidelity or-�
surety bond in the amount of Fifty Thousand ($50,000.00) Dollars, '
which bond shall be in force during the full term of this Agreement
together with �any extensions thereof. �
. VI. �
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INSURANCE - CITY
� City agrees to adequa.tely insure the building against ha.zards
and pa.y all premiums thereon f or its own account. . City agrees to
hold Mana.ger harmless for all damage suits or claims for injuries
to persons or property sustained by any person arising out of the
City' s negligence or alleged negligent acts or acts of the City' s
employees . City shall ma.intain, at its expense, elevator and steam
boiler insurance together with such other insurance that the City ;
deems necessary. At the present time the City is self-insured for
tort liability; however, the City does have the right and option to
purchase public liability insurance in such amounts as it deems
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necessary. -
VII. .
� • MANAGER - INDEMNITY TO CITY
The Mana.ger shall indemnify, hold harmless and protect the '
City from all suits, actions or claims of any character brought
for or account of injuries or damages received by any person or
property, including the City, resulting from any error or negligent
act of the Manager or any persons employed by the Manager in
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carrying out the terms of this Agreement. Manager shall ma.intain, ' ,
at its own expense, such insurance' as the Mana.ger deems necessary
so as to adequa.tely protect itself and the City from any such
negligent acts of the Manager or its employees. .
. VIII. '
NONPISCRIMTNATION -
The Manager shall be deemed a contractor for the application
of all provisions hereto and laws against unlawful discrimznation ,
on account of race, creed, religion, color, sex, na.tiona.l origin,
ancestry, affectianal or sexual preference, age, or disability. The
Manager agrees that in accordance with Chapter 238, Laws of
Minnesota for 1941, and in accordance with Chapter 74 of the Saint
Paul Legislative Code, that in the hiring of common or skilled
labor for the performance of any work under this Agreement, it
sha.11 not, by reason of race, creed, religion, color, sex, national
origin, ancestry, affectiona.l or sexual preference, age, or •dis-
ability, discriminate against any person who is qualified aud
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available to perform the work to which such employment relates;
that no contractor, material supplier or vendor under this Agreement,
shall in any ma.nner discriminate against, or intimidate, or prevent
the employment of any person for the performance of work under
' this Agreement on account of race, creed, religion, color, sex,
�. national origin, ancestry, affectional or sexual preference, age,
or disability; �nd that tnis Agreement ma.y be canceled or terminated
by the City and all money due or to become due hereunder shall be
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forfeited for a second or any subsequent violation of the terms or
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� conditions of this Agreement.
IN WITNESS WHEREOF, The City and Manager have caused this
Agreement to be executed the day and year first above written.
Approved as to Form: C�TY OF SAINT PAUL ..
_ ��� .�. .•,.�h� !;` i?. �+�/� . '
Assistant City Attorney �Yor ,
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� Director, Department of Finance
and Management Services
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TOWLE REAL ESTATE C�MPANY
Its
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