12-15-2009 ERMU MIN - Laserfiche WebLink

Home Browse Search

DEPOSIT AGREEMENT AND RELEASE OTSEGO WATERFRONT EAST This Deposit Agreement and Release entered into this 15~' day of December, 2009 by and between Rock Solid Realty Minnesota, LLC, dba Rock Solid Management (RSR) and the City of Elk River Municipal Utilities (ERMU). Recitals RSR has been appointed receiver of certain properties known as Otsego Waterfront East, including two buildings located at 16201 90th Street and 9010 Quantrill Avenue, in the City of Otsego, Minnesota. ERMU provides electrical service to each of the buildings, including to three "House Meters" which provide electrical service to the common areas of the buildings. The ERMU account numbers for the three House Meters aze: 16911, 16268, and 16269 (the "House Accounts"). As of September 25, 2009, the House Meters serving the House Accounts had been disconnected due to nonpayment of charges for electrical service. Total arrearages on the three House Accounts as of September 25, 2009 are $12,996.34. RSR took over management of the buildings on September 24, 2009, and met with ERMU staff on September 25, 2009 to request reconnection of the House Meters, which were reconnected at that time. In addition to the House Meters, RSR has requested that electrical service be restored to two additional meters to prevent damage to the buildings. Service to these meters was restored on December 9, 2009. The ERMU account numbers and the arreazages on these meters are: Account No. 16762: $134.40; Account No. 16764: $138.09. ERMU policies provide that all previously incurred obligations or delinquent bills to the Elk River Municipal Utilities must be paid in full before a new application for service will be accepted; and further require that a deposit equal to twice the highest monthly bill, rounded to the nearest $10, be submitted before service will be restored to an account which has been disconnected for failure to make payment. RSR has submitted the required deposits for the House Accounts, but disputes the requirement of ERMU policy that an eazages be paid in full before a new application for service will be accepted. The parties enter into this Deposit Agreement and Release in order to settle the dispute over payment of the arreazages on the five accounts identified above, and to memorialize RSR's deposits for continued service on the five accounts. Release ERMU has agreed to accept $8,664.23 as payment in full of all arrearages due on the House Accounts, and $186.66 as payment in full of the arrearages on the two additional accounts identified above. Upon payment of $8,850.89 by RSR, ERMU will release any and all claims it has or may have for providing electrical service to the House Accounts up to September 25, 2009 and to the two additional accounts up to December 9, 2009. RSR acknowledges its responsibility for all charges incurred for electrical service provided to the House Accounts from September 25, 2009 forward, and for all service provided to the two additional accounts from December 9, 2009 forward.