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HomeMy WebLinkAbout26-119 - Resolution - Easement Encroachment Agreement - MN Pipe LineCITY OF LINO LAKES RESOLUTION NO. 26-119 APPROVING EASEMENT ENCROACHMENT AGREEMENT WHEREAS, the Minnesota Pipe Line Company, LLC (the "Grantor") owns a pipeline easement (the "easement") that crosses the lies within the Otter Lake Road Extension (the "Project) Right -of -Way corridor, and WHEREAS, Sanitary sewer, water main, storm sewer and roadway improvements constructed as part of the Project, will encroach upon said easement, and WHEREAS, Grantor has agreed to allow encroachment onto the easement subject to certain terms and conditions included in the Encroachment Agreement, attached hereto as Exhibit A; NOW, THEREFORE BE IT RESOLVED by the City Council of Lino Lakes, Minnesota that the City hereby approves the Encroachment Agreement and the Mayor and City Clerk are hereby authorized to execute the agreement on behalf of the City subject to final review by the City Attorney. Adopted by the City Council of the City of Lino Lakes this 22"d day of June, 2026. 0-14 a erff f y Y, Mayor ATTEST: Roberta Colotti, CIVIC, City Clerk DRAFTED BY AND RECORDING REQUESTED BY: MINNESOTA PIPE LINE COMPANY, LLC 3120 117t' St. East Inver Grove Heights, MN 55077 FOLLOWING RECORDING, RETURN TO: FLINT HILLS RESOURCES, LC SAME ADDRESS AS ABOVE ATTENTION: ROW GROUP ENCROACHMENT AGREEMENT This Encroachment Agreement (the "Agreement") is made and entered into on this _ day of , 2026 (the "Effective Date"), by and between Minnesota Pipe Line Company LLC, a Delaware limited liability company ("Grantor") and the City of Lino Lakes, Minnesota, a Minnesota municipal corporation ("Grantee"). WHEREAS, Grantor has agreed to permit Grantee to encroach upon the pipeline easement, more particularly described below, with the Encroachment described below, subject to the terms and conditions of this Agreement. NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows: Grantor, as pipeline owner, consents to Grantee encroachment as detailed below: Property Location: ROW Parcel 3 as shown on CITY OF LINO LAKES RIGHT OF WAY PLAT NO. 4, County of Anoka, Minnesota; AND P.E. Parcel 3 as shown on CITY OF LINO LAKES RIGHT OF WAY PLAT NO. 4, County of Anoka, Minnesota; AND P.E. Parcel 4 as shown on CITY OF LINO LAKES RIGHT OF WAY PLAT NO. 4, County of Anoka, Minnesota ("Grantor Easement(s)"). Encroachment: One road crossing with curbs and gutters to be called Otter Lake Road, three twelve inch (12") diameter plastic sanitary sewer (separation variance approved 1.4'), one ductile iron pipe water main (separation of greater than 24"), Otter Lake Road with curb and gutter with a minimum road surface of greater than 48" of finished grade over Grantor's pipelines, and one eight -foot (8') wide bituminous walking path paralleling Otter Lake Road, as depicted and/or described in Exhibit A, which is incorporated herein by reference, and as further detailed in Section 1 below. Contact: Grantor Contact Name: Ed Traut Telephone: (320) 232-8910 Special Provisions: Grantee Contact Name: Community Development Director Address: 600 Town Center Parkway Lino Lakes, MN 55014-1182 Telephone: 651-982-2427 1). The surface of Otter Lake Road must maintain a separation distance between Grantor's pipelines of a minimum of forty-eight inches (48"). 2) The road and walking path must cross Grantor's pipelines between a sixty (60) degree and ninety (90) degree angle. General Terms and Conditions 1. Grantee's Facilities. Grantee may construct the Encroachment, within the Grantor Easements, subject to the terms of this Agreement. Grantee shall be solely responsible for construction, maintenance, damages to and operations of the Encroachment at no cost or expense to Grantor. 2. Grantor's Easement Rights. This Agreement is subject to the easement rights of Grantor. Grantor may place additional restrictions concerning the Encroachment, not contained in this Agreement, in order to protect its easement rights and pipeline facilities. Specifications. Grantee shall supply plans, surveys, and drawings for the Encroachment upon Grantor's request. Grantee shall ensure a minimum clearance between Grantor's pipe and the Encroachment of twenty-four inches (24"), or one and a half (1.5) times the diameter of Grantor's pipe, whichever is greater. 4. Notification. Grantee shall notify, or cause its representative to notify, the appropriate state One -Call notification center as required by law, but in no event less than 48 hours prior to the commencement of excavation in or near Grantor Easements. Grantee shall provide Grantor's representative a valid One Call Ticket before beginning excavation. Excavation Monitor. Grantor's representative must be onsite if any excavation activity occurs within twenty-five feet (25') of Grantor's pipe. Grantee shall hand dig when within two feet (2`) of Grantor's pipe. No work shall take place without Grantor's staff being given the opportunity to be present at the specified worksite. If Grantor reasonably determines that any proposed work may potentially cause an unsafe condition or damage to Grantor's pipe, Grantor shall have the authority to temporarily suspend such work to the extent necessary to address such concern; provided, however, that Grantor acknowledges and agrees that the use, construction, operation, and maintenance of a public right-of-way and customary municipal infrastructure therein (including roadways, utilities, drainage, and related public improvements) within the Encroachment shall not, in and of itself, be deemed to potentially cause an unsafe condition, so long as appropriate and industry -standard safety measures are implemented by Grantee. 6. Construction. a. The Encroachment shall be constructed and maintained to comply with all applicable laws and industry standards. Grantee shall construct the Encroachment to as close to a ninety (90) degree angle as practicable unless otherwise approved by Grantor in writing. b. Grantor acknowledges that it has reviewed the project plans and specifications prepared by Grantee describing the location and nature of the Encroachment and that, subject to review of construction means and methods as provided herein, Grantor does not object to the completed improvements contemplated by such plans and specifications. Grantee will provide Grantor construction plans that include the construction means and methods (the "Construction Plans") within the Encroachment for Grantor's review. Grantor will complete its review and provide either approval or comment, as applicable, within fourteen (14) days of Grantee providing the Construction Plans to Grantor. c. Grantee may remove existing cover or lateral support from Grantor's facilities to the extent reasonably necessary to construct the approved Construction Plans. Except as required for such construction or to the extent prior written approval is granted by Grantor, Grantee will not remove or permit the removal of any further existing cover from over Grantor's Pipelines or remove or permit the removal of any further lateral support for Grantor's Pipelines. If Grantor grants permission for Grantee to remove cover from over Grantor's Pipelines, Grantee must obtain Grantor's prior written approval of backfill material to be placed over the top of the Pipelines. Further, Grantor must review and approve all construction methods of addition or removal of cover from over Grantor's Pipelines. d. If the Encroachment crosses above or below Grantor's Pipelines, Grantee shall install sight holes to monitor the Encroachment during construction. e. Grantee shall not place heavy equipment on or over Grantor's Pipelines if less than five feet (5') of cover exists, unless otherwise approved by Grantor. 7. Grantor's Facilities. a. Notwithstanding the notice and procedures contained in this Section 7, Grantor shall not be required to obtain approval, consent, permission, or any type of permit from Grantee prior to performing work on Grantor's facilities located within the Easement Area. The parties agree that any work done by Grantor must comply with applicable law and City ordinance. b. Grantee agrees that Grantor may remove or damage any Encroachment or portion thereof if, in Grantor's judgment, it is reasonably necessary to do so in order to construct, alter, maintain, repair, or replace Grantor's facilities located within the Easement Area, or in order to construct or install new facilities. If Grantor does so, Grantor shall not be responsible for any repair, replacement, restoration, or cost of the Project or Encroachment. Once Grantor has completed its construction, alteration, maintenance, repair, or replacement, Grantee shall be solely responsible for repairing, replacing, and restoring the Encroachment, at Grantee's sole cost and expense. Grantor shall not be responsible or liable for any costs or expenses related to the repair, replacement, or restoration of the Encroachment. At least thirty (30) days before any non -emergency work in the Easement Area, Grantor will provide Grantee written notice. If requested by Grantor, Grantee shall be responsible for ceasing use of the Encroachment such that the Encroachment may not be used while Grantor is performing work on Grantor's Easements (which may include closing the road to all traffic). Grantor shall not be responsible for any costs. and expenses of closing the Encroachment. Further, Grantee fully waives any and all damages caused or contributed to by Grantor's work within its Easements, including but not limited to consequential damages, loss of profits and revenue, loss of business opportunity, delay, and loss of ability to use the Encroachment. d. In the event of an emergency that requires Grantor to damage or remove the Encroachment in order to access and perform maintenance or repairs on its Pipelines, Grantor will give Grantee notice as soon as reasonably practicable. Upon receipt of such notice of an emergency and upon request of the Grantor, Grantee shall immediately close and shut down the Encroachment such that the Encroachment may not be used while Grantor performs the work on Grantor's Easements. Grantor shall not be responsible for any costs and expenses of closing the Encroachment. Further, Grantee fully waives any and all damages caused or contributed to by Grantor's work within its Easements, including but not limited to consequential damages, loss of profits and revenue, loss of business opportunity, delay, and loss of ability to use the Encroachment. 8. Corrosion Control Device. Grantee shall ensure that any corrosion control device or system utilized in connection with, or any condition, created as a result of, the Encroachment will be compatible with any device or system utilized by Grantor to control corrosion on its facilities. If Grantee's control device or system is not compatible with Grantor's device or system, Grantor may require Grantee to discontinue use of Grantee's device or system, make such modifications to its device or system, or correct any condition created to Grantor's facilities, as a result of the Encroachment, at Grantee's cost and risk to ensure the compatibility of the Encroachment with Grantor's device or system. Termination. Notwithstanding anything to the contrary in this Agreement, Grantor and Grantee agree that during the first 37.5 years of the Term ("Protection Period"), the sole remedy for any uncured breach by Grantee shall be an order for Grantee's specific performance of such terms and conditions of this Encroachment in favor of Grantor. Grantee shall be responsible for Grantor's reasonable costs and attorneys' fees incurred in obtaining such specific performance. Upon expiration of the Protection Period, or if Grantee fails to comply with a final, non -appealable order of a court of competent jurisdiction requiring specific performance within a reasonable period of time (taking into account seasonal and operational constraints applicable to public infrastructure), Grantor's termination rights shall be reinstated and may be exercised in accordance with the remaining provisions of this Section. For the avoidance of doubt, nothing in this Section shall prevent Grantor from taking reasonable actions necessary to respond to an emergency posing an immediate threat to the safety or integrity of Grantor's facilities; provided, however, that such actions shall not permanently interfere with Grantee's rights under this Agreement except to the minimum extent necessary to address such emergency.. 10. Term and Restoration. Grantee shall complete construction of the Encroachment within two years of the date of this Agreement. If construction of the Encroachment is not complete within two years, the entire Agreement shall automatically terminate. If this Agreement is terminated and the Easement Area has been disturbed by Grantee, Grantee shall restore the Easement Area to its pre-existing condition at no cost or expense to Grantor. This restoration requirement survives the termination or expiration of this Agreement. 11. Grantor Facilities Maintenance. Grantee agrees that Grantor may remove, at Grantee's expense, any Encroachment or portion thereof if, in Grantor's judgment, it is reasonably necessary to do so in order to construct, alter, maintain, repair, or replace Grantor's facilities located within the Easement Area, or in order to construct or install new facilities; provided, however, that except in the case of an emergency, Grantor shall provide Grantee with reasonable advance written notice of such activities and shall make commercially reasonable efforts to coordinate with Grantee to minimize disruption to the Encroachment and any public improvements. 12. Indemnification. To the fullest extent permitted by law, Grantee agrees to release, defend, indemnify, and hold harmless Grantor, its respective parent companies, partners, subsidiaries and any other related or affiliated entity, and their respective officers, agents, directors, employees, and shareholders (collectively the "Indemnified Parties") against all claims, liabilities, damages, demands, lawsuits, causes of action, strict liability claims, penalties, fines, administrative law actions and orders, environmental claims, remediation costs, cleanup costs, restoration costs, expenses (including, but not limited to, attorneys' fees and other costs of defense) and costs of every kind and character (collectively "Claims/Liabilities"), arising from or in any way connected to the installation, maintenance, repair, removal and/or presence of the Encroachment regardless of whether such harm is to Grantee, the Indemnified Parties or any other person or entity. THE DUTY TO RELEASE, DEFEND, INDEMNIFY AND HOLD THE INDEMNIFIED PARTIES HARMLESS SHALL INCLUDE, BUT NOT BE LIMITED TO, CLAIMS/LIABILITIES THAT RESULT FROM THE COMPARATIVE, CONCURRENT OR CONTRIBUTING NEGLIGENCE OF ANY PERSON OR ENTITY INCLUDING, BUT NOT LIMITED TO, THE INDEMNIFIED PARTIES, EXCEPT GRANTEE SHALL NOT BE LIABLE UNDER THIS SECTION FOR CLAIMS/LIABILITIES RESULTING FROM THE SOLE NEGLIGENCE OF THE INDEMNIFIED PARTIES. Grantee shall select legal counsel acceptable to Grantor to defend any Claim/Liability, and Grantor shall have the right to participate in the defense at Grantee's expense. No settlement of any Claim/Liability shall be made without Grantor's prior written consent. Grantee's duties under this section shall survive the termination, revocation, or expiration of this Agreement. 13. Insurance. Grantee is a municipal corporation and shall maintain, at its sole cost and expense, such insurance coverages as are usual and customary for similarly situated public entities in the State of Minnesota in connection with the construction, operation, and maintenance of public infrastructure of the type contemplated by this Agreement. To the extent Grantee maintains commercial insurance applicable to the Encroachment, Grantee shall use commercially reasonable efforts to name Grantor as an additional insured, as available and permitted under such policies and applicable law. Grantee shall provide reasonable evidence of such insurance upon Grantor's written request. 14. Liability for Damage. Grantee accepts full liability for any damage to Grantor's facilities from the placement, operation, and/or maintenance of the Encroachment. 15. Special Provisions. In addition, Grantee shall perform any requirements set forth in the Special Provisions section above. To the extent that any of the requirements set forth in the Special Provisions section conflict with or are more stringent than the requirements set forth in this Agreement, the requirements set forth in Special Provisions shall control. 16. Remedies. The violation of any of the terms and conditions of this Agreement would be irreparable and immediately harmful to Grantor and Grantor is entitled to enforce the terms and conditions of this Agreement through injunctive proceedings, specific performance, or other equitable relief in addition to such other remedies as may be available. 17. Governing Law. THIS AGREEMENT AND ALL RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE WHERE THE ENCROACHMENT IS LOCATED, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF ANY OTHER LAW. 18. Entirety. This Agreement between the parties comprises the entire agreement between the parties with respect to the subject matter hereof, and there are no agreements, understandings, requirements, warranties, or representations, oral or written, expressed or implied, that are not merged herein or superseded hereby. 19. Counterparts. This Agreement may be executed in counterparts, each of which shall be considered an original instrument for all purposes but which together shall constitute on and the same instrument. 20. Assignment. Grantee shall not assign, transfer, convey, or encumber this Agreement or any rights or obligations hereunder, in whole or in part, without the prior written consent of Grantor, which consent may be withheld in Grantor's sole and absolute discretion. Any attempted assignment without such consent shall be null and void and shall constitute a material breach of this Agreement. No assignment shall relieve Grantee of any of its obligations hereunder. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. 21. Representations and Warranties. Grantee represents and warrants to Grantor that: (a) Grantee has the full power and authority to enter into this Agreement and perform all of its obligations hereunder; (b) the execution and performance of this Agreement does not and will not violate any law, regulation, court order, or agreement to which Grantee is bound; (c) Grantee has obtained all licenses, permits, and approvals required for the construction, operation, and maintenance of the Encroachment; and (d) Grantee is financially capable of performing its obligations under this Agreement, including the indemnification and insurance obligations set forth herein. These representations and warranties shall survive the termination or expiration of this Agreement. Grantor represents and warrants to Grantee that Grantor has the full power and authority to enter into this Agreement and to perform all of its obligations hereunder, and that the execution and performance of this Agreement have been duly authorized. 22. Inspection Rights. Grantor and its authorized representatives shall have the right, at any time and from time to time, with or without notice to Grantee, to enter upon and inspect the Encroachment, the Easement Area, and any records relating to the construction, operation, or maintenance of the Encroachment. Grantee shall cooperate fully with any such inspection and shall provide Grantor with copies of any requested documents within five (5) business days of Grantor's request. 23. No Property Rights Granted. This Agreement does not give any property rights to Grantee and is not a grant/assignment of easement nor a conveyance of property or land. This Agreement provides the terms and conditions upon which Grantor will permit the Encroachment over and across Grantor's Pipelines. Prior to encroachment upon Grantor's Pipelines/Easements, Grantee shall acquire the necessary property rights from the landowner. Grantor is not granting any such property rights to Grantee in this Agreement. 24. Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect. The invalid, illegal, or unenforceable provision shall be modified to the minimum extent necessary to make it valid, legal, and enforceable while preserving the parties' original intent. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the Effective Date. Signature Pages Follow GRANTOR: MINNESOTA PIPE LINE COMPANY By: Printed Name: Title: STATE OF ) ) SS. COUNTY OF The foregoing instrument was acknowledged before me on the day of , 2026, by , on behalf of Minnesota Pipe Line Company, LLC, a Delaware limited liability company. NOTARY PUBLIC My commission expires: NOTARY STAMP OR SEAL GRANTEE: City of Lino Lakes, Minnesota By: Name: Rob Rafferty Its: Mayor By: Name: Roberta Colotti Its: City Clerk STATE OF ) ) SS. COUNTY OF The foregoing instrument was acknowledged before me on the day of , 2026, by Rob Rafferty as Mayor and Roberta Colotti as City Clerk of City of Lino Lakes, a municipal corporation under the laws of Minnesota on behalf of said city. NOTARY PUBLIC My commission expires: NOTARY STAMP OR SEAL Acknowledtement The undersigned is the fee owner of a portion of the Property Location in which the Encroachment is located and acknowledges notice of this Encroachment Agreement between Grantor and Grantee. Bernier Family Farm, LLC STATE OF ) ) SS. COUNTY OF The foregoing instrument was acknowledged before me on the day of , 2026, by , as of Bernier Family Farm, LLC, a Minnesota limited liability company, on behalf of said company. NOTARY STAMP OR SEAL NOTARY PUBLIC My commission expires: 10 Acknowledtement The undersigned is the fee owner of a portion of the Property Location in which the Encroachment is located and acknowledges notice of this Encroachment Agreement between Grantor and Grantee. DPS-Wooddale, LLC STATE OF ) ) SS. COUNTY OF The foregoing instrument was acknowledged before me on the day of , 2026, by , as of DPS-Wooddale, LLC, a Minnesota limited liability company, on behalf of said company. NOTARY STAMP OR SEAL NOTARY PUBLIC My commission expires: 11 EXHIBIT A || §MSHEU !.. � � � ■ i , �; i � . \ « ] � � ; � |. z § �& f IrL | ! ||| � ! §| f| Gig -MMMME \ \ y" UNE _� �■ |(|§ I �� , e e| .■;•,!. � r•■|;|; |,||;����`�� . • 12 0) was 66`6T6 13 . .. 'I � � 6B'fW l3 .. . . yy 6. 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