HRA 05/14/1987 - 6531HOUSING & REDEVEMR -MU AUTHDRITY
THURSDAY, MAY 14, 1987 7;00 P.M.
Nasim Qureshi
Director of HRA
and Official Copy
City of Fridley
AGENDA
HOUSING & RE WM0HgENT AUTHORITY MEETING THURSDAY, MAY 14, 1987 7: 00 P.M.
Location:. Council Chamber (upper level) PAGES
CALL TO ORDER:
Housing & Redevelopment Authority Minutes: April 9, 1987
CONSIDERATION OF LCU LUNDGREN'S LETTER, OF CREDIT . . . . . . . . • 1
CONSIDERATION OF BARTON- ASCHMAN AGREEMENT FOR UNIVERSITY
AVENUE PLAN. . . . . . . . . . . . . . . . . . . . . 2
LAKE POINTE STATUS REPORT:
a. Consideration of Street Easement for Union 76 at TH 65 . . . . 3
b. Confirmation of SEH Contract Amendments . . . . . . . . . . . 3A - 3E
c. Consideration of Earthwork Change Orders . . . . . . . . . . 3F
CLAM. . . . . . . . . . . . . . . . . . . . . . . . . . . 4
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CITY OF FRIDLEY
HOUSING & REDEVELOPMENT AUTHORITY MEETING, APRIL 9, 1987
CALL TO ORDER:
Vice - Chairperson Schnabel called the April 9, 1987, Housing & Redevelopment
Authority neeting to order at 7:04 p.m.
ROLL CALL:
Menbers Present: Virginia Schnabel, Walter Rasmussen, John Meyer
Nei.1bers Absent: Larry Commers, Duane Prairie
Others Present: Jock Robertson, HRA Director
Nasim Qureshi, City Manager
Dave Newman, HRA Attorney
Rick Pribyl, Finance Director
;fancy Jorgenson, Councilperson -at -Large
Jack Kiffe, 313 - 114th Ave. N.W., Coon Rapids
June Lundgren, 1140 Minnesota Bldg., St. Paul
Cherry Lundgren, " 11 11 It
APPROVAL OF MARCH 12, 1987, HOUSI14G & REDEVELOPMENT AUTHORITY MINUTES:
140TIOII BY MR. MEYER, SECONDED BY MR. RASMUSSEN, TO APPROVE THE HARCH 12, 1987,
HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN.
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
1. CONSIDERATION OF LEASE OF DR. RYAN'S AUTOHOTIVE PROPERTY:
Mr. Robertson stated that at the February meeting, the HRA approved and
directed Staff to consummate a lease agreement with a buyer, fir. George Frey,
for Mr. Ryan's business. That deal fell through, but Mr. Ryan has found a
new potential buyer, Mr. Jack Kiffe. Mr. Kiffe has agreed to meet all the
conditions the HRA approved at their February meeting. fie stated he had
polled the HRA members by telephone several weeks ago, because at that time
he was under the impression that the lease would start the first of April.
About the first of April, he was told that the lease would start the first of
May. So,, this was now back on the agenda for the HRA's consideration.
Mr. Robertson stated Mr. Kiffe was in the audience and would be glad to answer
any questions the HRA might have. Mr. Newman has reviewed and approved the
.lease as it is. Since there was no substantive changes to the lease since
the HRA considered it in February, Staff would recommend the HRA approve the
lease with Mr. Kiffe.
Mr. Newman asked Mr. Kiffe if he had had an opportunity to review the terms
of the lease with his attorney.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, APRIL 9, 1987 PAGE 2
fir. Kiffe stated he had and the lease was acceptable to him.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER, TO APPROVE THE LEASE WITH
MR. JACK KIFFE THE NEW BUYER OF DR. RYAN'S AUTOMOTIVE, WITH THE UNDERSTANDING
THAT THE LEASE WOULD C011MENCE 01; 14AY 1, 1987.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
2. CONSIDERATION OF LOU LUNDGREN'S LETTER OF CREDIT:
!1r. Robertson stated that in the agenda was a letter from Mr. Lundgren to
the HRA dated April 2, 1987. He stated he felt the letter was fairly self -
explanatory. It stated that Mr. Lundgren could not be at the meqting.
Essentially, fir. Lundgren was saying that he was exploring simultaneously
several different options for participation; however, he had not reached
the point where a feasible financing plan could be arranged.
Mr. Robertson stated Cherry Lundgren was at the meeting to answer questions
about any of the details of the financing.
Fir. Robertson stated another item he would like to call to the attention of
the HRA was that several times in the past, they have referred to the effec-
tive date of the letter of credit as sometime this spring. That has been
moved forward in the revised development agreement, so it was not as urgent
as Mr. Lundgren referred to earlier. He believed the effective date of the
letter of credit was February 1988.
Mr. Rasmussen stated they have been discussing all along that May was the
deadline for the letter of credit.
fir. Newman stated that what happened was that at one of the earlier meetings,
the question was asked about the effective date of the letter of credit; and
at that time Mr. Lundgren's attorney,Sherrill Kuretich, stated it was June 1987
(Jan. 8, 1987, HRA minutes, page 5). Everyone assumed that was correct, but
later they found that in the revised development agreement it was actually
February 1988.
Mr. Rasmussen stated he felt the Commission had had a concensus that the
deadline for the letter of credit would be flay.
Ms. Schnabel stated, yes, they had talked about May or June, but that was
probably based on the misinformation that was given to them.
Mr. Robertson stated that, as the HRA recalled, Staff has recommended since
last November that the HRA call on the letter of credit. Staff's recommenda-
tion had not changed.
HOUSING & REDEVELOPlIE14T AUTHORITY MEETING, APRIL 9, 1987 PAGE 3
Mr. Rasmussen stated that was exactly why he felt the Commission had a con -
census that they would give Mr. Lundgren until Play. In reading Mr. Lundgren's
letter, lie did not see that much had progressed in the last 30 days.
Mr._P•1eyer stated it seemed Mr. Lundgren had progressed a lot farther than
where he was last December.
Ms. Cherry Lundgren stated she has worked on the project for over 12 months.
Mr. Lundgren apologized that he could not be at the meeting, but he was speak-
ing at a seminar in Washington Q.C. She stated that with due diligence, she
has made every effort to contact all six lenders they are dealing with, and
they have written proposals from all six lendinq groups in writing. She stated
three were ready to sign immediately with just the information they have as far
as issuing the commitment.
Ms. Lundgren stated that at the last HRA meeting, that was the actual date they
had the final feasibility study from 11r. Maxfield. Prior to that, the lenders
had the loan packages but not the actual feasibility study, so the lenders have
only had four weeks to review the numbers.
Pis. Lundgren reviewed fir. Lundgren's April 2 letter with the HRA members,
describing each of the lending groups who have expressed an interest in the
development: Summit Fund II of New York City; Winfield Development Co.;
Mr. Ed Goldin of Goldin & Co. of Denver, Colorado; Plurray Savings & Loan in
Dallas, Texas; Mr. Doug Mayo of Rothschild Financial Corp.; and Mr. Ben Steinberg
of Steinberg Financial Co.
Ms. Lundgren stated they have an individual working on syndication, should
syndication be necessary, who was familiar with the package and what the
payout would be over the ten years under the scenario of (1) a conventional
mortgage of $6.8 million and (2) a participating mortgage which would be a
little higher. She stated Mr. Lundgren has a very preliminary sketch of the
tax exempt bond package, an entirely different package as far as syndication.
Ms. Lundgren stated that at this point, even if Mr. Lundgren was in town, she
thought he would like to give Winfield the opportunity to respond to the
package. If Winfield chooses not to participate, there are two other
people who have discussed coming in on the project. By the end of the week,
they will have a "yea" or "nay" and will be able to proceed with one of the
six packages.
Ms. Lundgren stated that if the HRA chose not to call on the letter of credit,
Mr. Lundgren was under the assumption that within two weeks they hope to be
back with an actual development agreement with a lender and a financing
-package already in place. They have used a construction date of July 1, 1987,
with the exception of the tax exempt bonds which she did not know the time
line for.
Mr. Meyer stated it seemed to him Mr. Lundgren has fulfilled his obligation
because up until now everything had been extremely negative. As he saw it,
Mr. Lundgren was now on firm ground and there was almost a surety of a project
which was far different than where they were at a few months ago.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, APRIL 9, 1987 PAGE 4
Mr. Qureshi stated that, yes, the project looked better now than it did the
last couple of months. There was a little more "meat" in the documentation
than there was last month or the month before. If the HRA's understanding
has been that they would draw upon the letter of credit in May or June, then
there was probably no harm in delaying this a month or two more to let
Mr.—Lundgren proceed further.
Mr. Newman stated that at a prior meeting, he felt it was made very clear
to Mr. Lundgren that June was the final deadline, even though since then they
have found that the letter of credit was for a longer period of time. Unless
there was some very significant progress by the June meeting, that should be
the final deadline.
Mr. Rasmussen stated he had no problem with extending the deadline for another
month, but fie did think the HRA should have some kind of deadline.
Ms. Schnabel stated Mr. Rasmussen's point was well taken. They might want to
consider a deadline at some point in time -- possibly at the next meeting.
Ms. Schnabel stated that no action was to be taken on the letter of credit,
and the item would remain on the table.
3. CONSIDERATION OF A RESOLUTION APPROVING THE AMENDMENT OF REDEVELOPMENT
PROJECT NO. 1:
Mr. Robertson stated that in January, the HRA authorized Staff to start the
wheels in motion for amending Redevelopment Plan No. 1 to include the Univer-
sity Avenue Corridor plan area. This was a suggestion made by the City
Council. He stated they have proceeded to complete the draft which has been
reviewed by James O'Meara of O'Connor & Hannan. The total plan with amend-
ments has already been sent to the School Districts for their review.
Mr. Robertson stated Staff was recommending the following two action items
by the HRA: (1) to approve the resolution to amend the redevelopment plan;
and (2) to approve the timetable.
Mr. Robertson stated that for the HRA's information, the notice for the City
Council's public hearing on April 6 had been published in the Focus Newspaper.
At the Planning Commission meeting the previous evening, they had adopted the
recommendations for the plan changes.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER TO APPROVE RESOLUTION NO. 5
A RESOLUTION RELATING TO ENLARGING REDEVELOPMENT PROJECT NO. 1 AND AMENDING
THE MODIFIED REDEVELOPMENT PLAN RELATING THERETO AND AMENDING THE TAX INCREMENT
-FINANCING PLANS RELATING TO TAX INCREMENT FINANCING DISTRICTS NO. 2 THROUGH
NO. 8 WITHIN THE PROJECT AREA.
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, APRIL 9, 1987 PAGE 5
MOTION BY MR. MEYER, SECONDED BY MR. RASMUSSEN, TO APPROVE THE TIMETABLE TO
AMEND REDEVELOPMENT PROJECT NO. 1, MODIFY BY ENLARGEMENT REDEVELOPMENT
PROJECT NO. 1 AND THE MODIFIED REDEVELOPMENT PLAN RELATING THERETO.
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
4. CONSIDERATION OF A RESOLUTION] DESIGNATING OFFICIAL DEPOSITORIES:
5.
fir. Pribyl stated this resolution was brought before the HRA once a year so
they can designate the official depository for the HRA and to authorize the
withdrawal of funds from those accounts. He stated Fridley State Bank•has
been the official depository in the past for the HRA and the City of Fridley.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER, TO APPROVE RESOLUTION NO.
HRA -1987, RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR THE FRIDLEY
HOUSING AND REDEVELOPMENT AUTHORITY.
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
CONSIDERATION OF MODIFYING S.E.H. CONTRACT FOR ADDITIONAL DESIGN WORK:
fir. Robertson stated that S.E.H. has been working on the design of the inter-
section at T.H . 65 /Lake Pointe /Old Central for several years, beginning with
a $55,000 contract. A nuciber of additional work items have been added from
time to tine. This was the latest contract addition which covered street
lighting study ,ri -cjht -of -way acquisition and landscaping in the amount of
$8,270. He stated it would be in order for the HRA to authorize this amount
ads an addition to the original contract.
Mr. Robertson stated he would have more details at subsequent meetings.
Ms. Schnabel asked if the HRA had discussed these additional expenses for
this contract.
Mr. Robertson stated it had'been discussed before when they discussed the
intersection improvements and in connection with the Lake Pointe Project.
There has been ea total of about $20,000 in increases authorized over the last
year. This $3,270 was the latest of the increases.
MOTION BY MR. MEYER, SECONDED BY MR. RASMUSSEN, TO APPROVE THE AMOUNT OF THE
EXISTING AGREEMENT WITH S.E.H. FOR AN ADDITIONAL $8,270 TOWARD DESIGN OF THE
HIGHWAY 65 INTERSECTION.
.UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPHENT AUTHORITY MEETING, APRIL 9, 1987 PAGE 6
6. RECEIVE UPDATE 014 UNIVERSITY AVENUE ASSOCIATES:
Mr. Robertson stated the City Council approved the rezoning request on
March 23, 1987. Enclosed in the agenda was the "City Council Action Taken
Notice" dated March 25, 1987, which listed all the stipulations the City
Council incorporated into the final rezoning agreement.
Mr. Robertson stated the only outstanding item now before the final building
permit was issued was a maintenance agreement to go with the storm water
run -off system. They had just received it at staff level, the Public Works
Department was reviewing it, and when it was approved, all the documents would
be ready to sign.
MOTION BY 19R. RASMUSSEN, SECONDED BY MR. MEYER, TO RECEIVE THE UPDATE ON THE
UNIVERSITY AVENUE ASSOCIATES PROJECT.
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
7. UPDATE ON UNIVERSITY AVENUE PLAN:
Mr. Robertson stated that after discussions with the HRA and City Council
regarding the Barton - Aschman proposal, some minor changes were recommended.
The first phase will cover an urban demonstration segment from 57th Ave. to
61st Ave. N.E., and a rural demonstration segment from Osborne Rd. south to
73rd Ave. N.E. (rather than north to 81st Ave.) This latter change was
recommended by the City Council in order that the demonstration include treat-
ments from both sides of the Corridor in the City of Fridley.
Mr. Robertson stated he was recommending that the HRA authorize him to enter
into a contractual agreenent with Barton - Aschman for getting the design work
for these two demonstration segments done over this construction season. The
work would be accomplished in two stages (April 3, 1987, memo from Mr. Robertson
to Mr. Qureshi). Barton- Aschnan has prepared the working drawings, and they
have given the City a budget not to exceed $23,300. He was asking for authoriza-
tion to consummate that agreement.
Ms. Schnabel stated she had reviewed the proposal, and it looked very thorough
and very comprehensive. She could see no problems with authorizing Staff to
enter into an agreement with Barton - Aschman.
Mr. Meyer stated he was interested by the fact that there was no provisions
for field observation of the work on the part of Barton - Aschman. He felt they
should ask Barton - Aschman for a quote of what they would charge for proper
.field observation, and then this could be discussed at the next meeting.
MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER, TO APPROVE A BUDGET WITH
BARTON- ASCHMAN NOT TO EXCEED $23,300 TO COVER THE UNIVERSITY AVENUE CORRIDOR.
DETAIL DESIGN, AND TO ASK BARTON- ASCHMAN TO SUBMIT A BID FOR FIELD OBSERVATION.
THIS BID TO BE REVIEWED AT THE NEXT MEETING BY THE HRA.
UPON A VOICE VOTE, ALL VOTX17G AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, APRIL 9, 1987 PAGE 7
S. CLAIMS (1589- 1594):
140TION BY MR. RASMUSSEN, SECONDED BY MR. MEYER, TO APPROVE THE CHECY. REGISTER
AS SUBMITTED.
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
9. OTHER BUSINESS:
a. 100 Twin Site
Mr. Robertson stated the [IRA had received at the meeting a memo from
special legal counsel, Raymond Haik, and correspondence he has had with
fir. David Weir.
140TION BY MR. MEYER, SECONDED BY MR. RASMUSSEN, TO RECEIVE AND REVIEW
A MEMO DATED APRIL 1, 1987, FROM RAY14OND HAIK TO THE MAYOR AND CITY
COUNCIL, AND ATTACHED CORRESPONDENCE.
UPON A VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE
MOTION CARRIED UNANIMOUSLY.
r1r. Kobertson stated that as the HRA members were aware, they were in
the process of completing the contracts for the earthwork, the streets
and utilities, and the landscaping on the 100 Twin site. In order to be
on the record that they intend to fulfill these present contract obliga-
tions, it would be in order for the HRA to simply direct that these
contract obligations be completed to the point where the site would be
presentable.
Mr. Robertson stated the background on this was that there was a question
on the final alignment for Lake Pointe Drive as it connects with the
intersection of West Moore Lake Drive and T.H. 65. There are two houses
that Woodbridge has obtained options on. They do not know if Woodbridge
intends to exercise these options; however, if they do not exercise these
options for any reason, Staff would like to be authorized to make a
temporary connection to West Moore Lake Drive so essentially the property
was complete and ready for inspection.
fir. Newman stated the HRA has already entered into the contracts for on-
site improvements, but special counsel would like to have it clear in the
minutes that the exact final alignment of this portion of road has not
been completely resolved yet. That was one of the items under dispute.
Because all of the site work was going to be done this summer and because there
was still some uncertainty at this point as to when this issue would be
resolved, it was the recommendation by Staff that a temporary road be con-
structed connecting Lake Pointe Drive with Moore Lake Drive-so that access
could be made to the Lake Pointe property.
HOUSING & REDEVELOPMENT AUTHORITY MEETING, APRIL 9, 1987 PAGE 8
Mr. Newman stated he wanted to make it clear in the minutes that this
would only be a temporary positioning of the road, not a permanant road.
Once the dispute was resolved, that road may be repositioned into its
permanent position.
140TION BY MR. MEYER, SECONDED BY 11R. RASMUSSEN, TO AUTHORIZE STAFF TO
PROCEED WITH DIRECTING THE CONSTRUCTION OF A TEMPORARY ROAD TO CONNECT
LAKE POINT DRIVE TO WEST 140ORE LAKE DRIVE.
UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED
THE MOTION CARRIED UNANIMOUSLY.
IAMM11I17i RISkike
MOTION BY 11R. RASMUSSEN, SECONDED BY 11R. MEYER, TO ADJOURN THE MEETING. UPON A
VOICE VOTE, ALL VOTING AYE, VICE- CHAIRPERSON SCHNABEL DECLARED THE APRIL 9, 1987,
HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 8:55 P.M.
Respectfully sub 'tied,
Lyn a Saba
Recording Secretary
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FRIDLEY PLAZA ASSOCIATES A LIMITED PARTNERSHIP
May 7, 1987
Members of the Fridley HRA
% Nasim M. Qureshi,
City Manager
6431 University Ave. Northeast
Fridley, MN 55432
Re: Up -date on financing
Fridley Plaza Project
Gentlepersons:
This letter is intended as a progress report on the
financing of the Fridley Plaza Project.
We have been proceeding with due diligence and some
success in the negotiations previously indicated to
you in my letter of April 2, 1987.
In order to be able to give you the most current report
possible, I would like to make my report orally at your
meeting on Thursday, May 14, 1987.
Accordingly, I request to be put on the agenda for that
purpose.
Very truly yours,
FRIDLEY PLAZA ASSOCIATES
R. Lundgren
Man Lou's ging General Partner
LRL:rz
1140 minnesota building, at. Paul, minnesota 55101
611.114 -4765
2
MEMORANDUM
MEND M: Nasim Qureshi, Director of HRA
MEND FROM: Jock Robertson, Executive Director of BRA
MEMO LATE: May 8, 1987
RETARDING: University Avenue -Corridor Plan Implementation
Reflecting on John Meyer's comments about accountability for this project I
have concluded that he has correctly identified the problems inherent in
"design by committee" and diagnosed a need for one prime consultant to be
directed by one accountable staff project manager. Therefore I have directed
Barton- Aschman to make an addition to their March 27, 1987 scope of work.
The consultant would also be responsible for base mapping and final design of
intersections. This is dated April 20, 1987.
Concerning John Meyer's specific request for a quote covering "proper field
observation ", Barton- Aschman estimates that if they were to do this alone, it
would cost seven to eight thousand and be done over a ten to 16 week
construction period. At peak activity they would make two four hour site
visits per week and in the remaining period, one four hour site visit per
week. The rates would be the same as those listed for the other work.
Interestingly, they recommend supplemental field observations by our staff
under their supervision. This would increase actual field supervision
effectiveness and would reduce our cost by an estimated two to three thousand
dollars.
I recommend that the HRA amend the budget to not exceed $28,800 for the basic
work and $15,800 for the optional tasks and request authorization to proceed
with consummating agreements as included in the packet.
M-87 -107
J3-
CITY OF -
FRI DLEY
CIVIC CENTER •(}131 UNIVERSITY AVE. N.E. FRIDLEY. MINNESOTA 55432 • PHONE 6612) 571 -3.150
April 24, 1987 A187-79
Mr. George W. Knox
UNOCAL
1650 East Gulf Road
Chjaumberg, IL 60196
S7BJECT: Right -of -way Easement - 5695 Hackmann Avenue
Dear Mr. Knox:
I am in receipt of your letter dated April 7, 1987 regarding your appraised
value for the 1,253 square foot easement requested for the street
improvement project scheduled for the Highway 65/01d
Central /Hathaway /Hillwind intersection
Last year, the City, via a willing seller /willing buyer and a condemnation
proceeding, procured the 43 acres associated with the 100 Twin and Gerald
Johnson property west of the existing UNOCAL e ry i e Band upon the price 3
established for that land was $2.75 per sg r
square foot easement area, we are discussing an amount of $3,445.75.
In order to complete and expedite this right -of -way agreement, I will be
willing to recommend to the HRA to pay $5,000.00 for the street easement
and to cover the cost for the relocation of your sign from the easement
area.
Per out telephone conversation of April 20, 1987, I hope that this offer is
agreeable to your company so that we may execute the street and utility
easement previously sutmitted.
7hank you for your support and assistance in this matter. If I can provide
you any additional information, please feel free to contact me.
Sincerely yours,
_John G. Flora
Director of Riblic Works
JGF /ts
O
CINOF
fRlDLEY
DIRECTORATE o0
O F o• n
o�. o
00
PUBLIC WORKS
MEMORANDUM
9D: Jock L. Robertson, Executive Director -HRA
FRO14: John G. Flora, fpubl is Works Director
DATE: April 9, 1987
SUBJECT: Highway 65 and Lake Pointe /Old
Central Intersection Agreement
IW87 -108
The BRA, on September 11, 1986 by Resolution 16 -1986, authorized S. E. H. to
design the intersection improvements for Highway 65 and the Lake Pointe -Old
Central /Hathaway - Hackman legs. The authorized expenditure for this final
design was identified at $55,500.00.
We have received notice from S.E.H. for reimbursement of additional
services provided beyond the original project scope. These include the
traffic study and preliminary design revisions due to the Indirect Source
Permit requirements, traffic signal justifications, realignment of Lake
Pointe Drive, addition of the bikeway /walkway system, the Union 76
easement, application for the Old Central variance, public meetings and
alternate designs for Old Central and 5755 Hackmann garage modifications
totalling $20,052.15.
In addition to that work which has already been completed, S. E. H. submitted
a letter on March 13, 1987 identifying additional work requested to be
included in the project including the Lake Pointe -Old Central and Highway
65 lighting systems, survey of the 5760 Hackmann Avenue property exchange
and corridor landscaping modifications estimated at $8,270.00. This was a
working number which would be established at an hourly rate used upon the
executed agreement.
Recommend the HRA approve the additional $20,052.15 for the work requested
and completed plus an additional $10,000 for the completion of the plans
and specifications desired for the intersection project.
Based upon the estimated cost of the project and the agreed to contract
amounts including the above additions would result in a 13 percent contract
and inspection amount which is within the normal costs expected for this
type of work.
JGF /ts
Attachments
M
ASEH
ENGINEERS ■ ARCHITECTS / PLANNERS
April 8, 1987 RE: FRIDLEY, MINNESOTA
LAKE POINTE DRIVE AND
OLD CENTRAL AVENUE
CITY PROJECT ST- 1987 -3
SEH FILE: 84142.01
Mr. John Flora
Director of Public Works
City of Fridley
6431 University Avenue N.E.
Fridley, MN 55432
Dear Mr. Flora:
As you are aware, the engineering services contract was defined
for a specific project scope. This scope was based on the items
of work known at the time of the commencement of the project.
During the course of the design, additional services were
provided that are beyond the original scope of our contract. The
additional design was prepared based on your direction to
expedite the plan completion and meet the project schedule. Due
to the accelerated schedule to meet Mn /DOT review deadlines, the
actual cost of these services was not known until recent cost
accounting could be tabulated. The additional services and
associated costs for the completed work are are follows:
Traffic Study and Preliminary Design Revisions
1. Review and coordination of changes to preliminary design
requested by developer's traffic engineer. This involved
review of traffic generation and distribution forecasts
(several times), several meetings with engineer, City and
DNR, review of concept drawings, preparation of revised
preliminary plan and coordination of proposed changes with
Mn /DOT.
Project Engineer 18.2 hours @ $71.15 = $ 1,294.93
Design Engineer 50.6 hours @ $43.84 = 2,218.30
Design Engineer 11.6 hours @ $36.01 = 414.12
Drafter 4.5 hours @ $24.11 = 108.45
Mileage 41.78
$ 4,077.58
3C
City of Fridley
March 27, 1987
Page 2
2. Signal Justification Report
Due to recent Mn /DOT policy changes, this report was not
anticipated as part of the prepared and original scope.
Traffic Engineer 3 hours @ $71.15 = S 213.45
Clerical 1 hour @ $26.29 = 26.29
$ 239.74
3. Redesign /Realignment of Lake Pointe Drive
After the final plans were substantially complete the
Developer requested that Lake Pointe Drive be moved
northerly from the layout concept route. The new alignment
required redesign of the TH65 intersection, turn lanes,
medians and entire length of Lake Point Drive geometrics and
grades.
Project Manager
80
hours
@
$52.59 =
$4,207.20
Technician
80
hours
@
$47.17 =
3,773.60
Computer
20
hours
@
$18.00 =
360.00
Technician II
3
hours
@
$34.95 =
$8,340.80
4. Addition of Bituminous Trails and
Conduit Systems
for Future
Utility Installations
$26.29 =
52.58
Computer
2
hours
Design, drafting, specifications,
quantities and cost
estimates for the trails
and conduits.
Project Manager
12
hours
@
$52.59 =
$ 631.08
Technician
23
hours
@
$38.67 =
889.41
Drafter
9
hours
@
$23.45 =
211.05
Clerical
1
hour
@ $26.29 =
26.29
$1,757.83
5. Union 76 Easement Description
Calculation and writing of legal description and map
preparation.
Project Manager
9
hours
@
$52.59 =
$ 473.31
Traffic Engineer
4
hours
@
$71.15 =
284.60
Technician III
7
hours
@
$38.73 =
271.11
Technician II
3
hours
@
$34.95 =
104.85
Clerical
2
hours
@
$26.29 =
52.58
Computer
2
hours
@
$18.00 =
36.00
$1,222.45
City of Fridley
March 27, 1987
Page 3
9C
6. ..Old Central Avenue Variance Request and Resolutions
Preparation of letters of request and justification and
resolutions for the variance of the roadway width on Old
Central Avenue; meetings and coordination with Mn /DOT and
Anoka County.
Project Manager 6 hours @ $52.59 = $ 315.54
Traffic Engineer 18 hours @ $71.15 = 1,280.70
Clerical 2.5 hours @ $26.29 = 65.73
$1,661.97
7. Investigate Alternative Roadway Geometrics for Old Central
Avenue and Rice Creek Road
Subsequent to plan and specification completion: investigate
alternative lane configurations and widths. Write report,
make recommendations and attend public informational
meetings.
Project Manager
Traffic Engineer
Design Engineer
Technician I
Clerical
Computer
4.5 hours @ $52.59 = $ 236.66
21.1 hours @ $71.15 = 1,501.27
10.5 hours @ $47.95 503.48
6 hours @ $34.03 = 204.18
2 hours @ $26.29 = 52.58
2 hours @ $18.00 = 36.00
$2,534.17
8. Specification for Garage Modification at 5755 Central Avenue
Meeting with property owner, garage and site inspection, and
writing of specification.
Project Manager 3.5 hours @ $52.59 = $ 184.07
Clerical 1 hour @ $26.29 = 26.29
Mileage 7.25
$ 217.61
$20,052.15
City of Fridley
March 27, 1987
Page 4
The fees for other additional work that has been requested, but
not -yet completed, is detailed in our letter dated March 13,
1987. This work is necessitated by recent City standard changes
and citizen participation. As stated in the letter, the
estimated fee for this work is about $8,300. This is an estimate
and not a maximum not to exceed figure. When revising the budget
for engineering services the City may want to consider rounding
this figure to $10,000 to avoid future budget revisions.
If no further plan revisions
identified in this letter should
design phase of this project.
jms
are requested, the fee amount
allow for the completion of the
Sincerely,
David J. Pillatzke, P.E.
3E
cITYOF
f RI DLEY
DIRECTORATE
OF
PUBLIC WORKS
MEMORANDUM
ZO: Jock Robertson, Executive Director - IM EW87 -141
FROM: John G. Flora,�Public Works Director
DATE: May 7, 1987
SUBJECT: Grading and Site Demolition
Project - Lake Pointe ,
Enebak Construction was awarded the Demolition and Site Grading Project for
the Lake Pointe Development area at the 100 Twin Drive -in Site. The
original agreement was a lump sum contract for the work specified in the
bid sheet.
Since the work started, Enebak has claimed additional work requirements and
this past winter initiated an arbitration hearing dealing with the work
accomplished on the site. Currently, the arbitration meeting is scheduled
for the latter part of this month.
As we are reviewing the remaining work to be completed, there will probably
be a change in the area identified as Pad A and some additional road
excavation due to poor soils. If this occurs, this will undoubtedly be
another change in the original 'contract bid and will be opened for
arbitration. Accordinly, we have suggested to Enebak to delay the
arbitration hearing until all the work is completed whereby we can review
the pluses and minuses of the site work.
In the meantime, if work is required different from the plans and
specifications bid, the City will have to initiate change orders in a
timely mariner in order to allow the construction to proceed without delay.
Therefore, it would be appropriate for the 8RA to authorize the City to
execute any change orders to the contract deemed necessary by the City and
our consulting engineers.
JGF /ts
o t�
CLAIMS
1595 TO 1603