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HRA 08/13/1987 - 6534HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, AUGUST.131- 1987 7;00 P.M. Nasim Qureshi Director of BRA and Official Copy City of Fridley AGENDA HOUSING & FEDEVELOPMENT AUTHORITY MEETI9; THURSDAY, AUGUST 13, 1987 7:00 P.M. Location: Council Chamber (upper level) CALL 70 ORDER: ROLL CALL- A_EMQML OF INQTES• Housing & Redevelopment Authority Minutes: July 9, 1987 CONSIDERATION OF LOU LUNtOGREN' S LETTER OF CREDIT . . . . . . . . . . . . . 1 CONSIDERATION OF RICE CREEK ROAD AND VICINITY ENGINEERRU . . . . . . . . 2 - 2C FEES, SCOPE OF SERVICES AND ESTIMATED COSTS CONSIDERATION OF UNIVERSITY AVENUE (T. H. 47) MEDIAN . . . . 3 TREATMENT . ASIDE M10N OF COMPLETION OF PASCHKE PONDIM AREA . . . . . . . . . . . 4 - 4B CONSIDERATION OF LAKE POINTE PAD A EXCAVATION CHANGE ORDER. . . . . . . . 5C INFORMATION CN LAKE POINTS DETENTION FOND - POTENTIAL CHANGE. . . . . . . 6A ORDER AMID IRRIGATION INFORMATION CN CIVIC CENTER BI -LEVEL PARKING RAMP . . . . . f • . . . 7 - 7B CLAIMS . • • . . • . f f • • f f f f f 8 OPHER BUSINESS: 9 CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 9, 1987 CALL TO ORDER: Vice - Chairperson Schnabel called the July 9, 1987, Housing & Redevelopment Authority meeting to order at 7:08 p.m. ROLL CALL: Members Present: Virginia Schnabel, Duane Prairie, Walter Rasmussen, John Meyer, Larry Commers (arr. 8:10 p.m.) Members Absent: None Others Present: Jock Robertson, HRA Director Idasim Qureshi, City Manager Rick Pribyl, Finance Director Julie Burt, Asst. Finance Officer Jim Robinson, Planning Coordinator Dave Newman, HRA Attorney June & Louis Lundgren, 1140 Minnesota B1dg.,St. Paul Gerald Sunde, Sunde Engineering Barry Warner, Barton - Aschman Russell Jacobson, 327 W. Lake St., Chisholm, Mn. 55719 APPROVAL OF JUNE 11, 1987, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER, TO APPROVE THE JUNE 11, 1987, HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, VICE - CHAIRPERSON SCHNABEL DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. C014SIDERATIO14 OF LOU LUNDGREN'S LETTER OF CREDIT: Mr. Lundgren stated that since the last HRA meeting, he had felt the need to get some additional help in terms of trying to get the.financing lined up, particularly in terms of how to present it to the various kinds of investors. In order to help do that, he had obtained the services of Russell Jacobson, who was also at the meeting. He stated Mr. Jacobson has a long experience in terms of planning and in terms of being on the government side of 6 -7 communities throughout the country. Mr. Lundgren stated he has known Mr. Jacobson for about 10 years, and Mr. Jacobson was very creative in assembling numbers to be presented to investors. Mr. Lundgren stated they (not only their development team, but also the City and the HRA) have come to the preliminary conclusion that their best interest at the present time was probably in the direction of a taxable bond issue for both Phase I and Phase II. He stated he had a meeting with Miller A HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 9, 1987 PAGE 2 Schroeder at 10:00 a.m. that morning at which he presented to Miller & Schroeder the general information of the entire project, the market feasi- bility of the market rate of the six -story apartment building, and cash flow projections prepared by Mr. Jacobson. Miller & Schroeder has expressed some interest in the project, and that interest was expressed in a letter which the HRA members had received a copy of at this meeting. He stated there was nothing in the letter that suggested any commitment of any kind, but Miller & Schroeder has said they would be dealing with the numbers given to them and will come back within 7 -10 days with a number of alternative ways of possibly doing the project. Miller & Schroeder said that if they felt they could do the project, they could do it within a period of 4 -6 weeks. Mr. Lundgren stated he felt that was a very optimistic timetable. Mr. Jacobson stated he has been involved in city government for the past 16 years. For the past 7 years, he was with the City of Virginia, Minnesota, heavily involved in economic development finance, tax exempt community develop- ment action grants, revenue bonds, and related aspects. He resigned from the City of Virginia and has opened up his own office in private financial packaging, municipal planning, as well as some real estate development. Mr. Jacobson stated he felt the first two phases of the project were very inter - related and interdependent for the overall success of both of them. The project has produced some major interest on the part of Miller & Schroeder. After going through the numbers and looking at the site, he felt there was a strong possibility they will be able to obtain financing through Miller & Schroeder. Mr. Meyer asked Mr. Lundgren if he had retained Mr. Jacobson only for the Miller & Schroeder effort, or had he also retained him to pursue other activities if Miller & Schroeder does not finance the project? Mr. Lundgren stated he has retained Mr. Jacobson to help solve the financing problem, so his efforts were not limited to Miller & Schroeder. Ms. Schnabel asked about the other possible financial backers that Mr. Lundgren has discussed in the past. Mr. Lundgren stated there were at least two "savings and loan" type of con- ventional financiers still open. Mr. Newman asked Mr. Lundgren if he had talked to any other underwriters other than Miller & Schroeder, and did he have any plans to talk to other under- writers? Mr. Lundgren stated he and Mr. Jacobson would pursue anywhere they found an interest. On the other hand, they were going to give Miller & Schroeder-time to get back with a "yes" or "no" answer. Mr. Newman stated it was not uncommon to be shopping for more than one under- writer at one time. He stated this predicament has been going on for about HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 9, 1987 PAGE 3 a year now, and if the HRA decided not to act on Mr. Lundgren's letter of credit, he would encourage Mr. Lundgren to consider shopping multiple under- writers at once because of the time limitations involved. Mr. Lundgren stated he appreciated that suggestion and would appreciate any specific suggestions as far as underwriters. Mr. Rasmussen asked for Staff's recommendation concerning whether or not to call the letter of credit. Mr. Robertson stated that since there were no other developers at this stage yet, he would recommend that the HRA delay any action on the letter of credit for another month in order to see what happens with Miller & Schroeder. No action was taken on the letter of credit, and the item remained on the table. 2. PRESENTATION OF UNIVERSITY AVENUE CORRIDOR MEDIAN TREATMENT PROPOSAL BY BARRY WARNER F BARTON C HMAN ASSOCIATION, I Mr. Warner stated that last year at this time, Barton Aschman participated with a committee of citizens and business people to establish a corridor master plan for University Avenue. That established a direction and a design theme for basically the right -of -way treatment and abutting parcels primarily to enhance the image. Subsequent to the preparation of the master plan, one of the topics that continued to have some discussion was the exact median treat- ments- -what could be done, what was possible given MnDOT's design constraints. Barton Aschman was retained by the HRA to pursue various alternatives - -some moderate level enhancement treatment to a treatment much more significant. Mr. Warner stated he felt it was appropriate at this meeting to start out with a group education process so they collectively understand the possibilities that could occur within the corridor and also some of the opportunities, talk about some group goals and objective goals, and then visit some other corridors that have done some median treatments so the HRA can understand why or why not some of these median treatments could be adapted to the Univeristy Avenue median. After that, they would go back and visit some of the alternatives prepared for both the rural and urban portions of the roadway. He stated he would welcome any questions during the presentation. Mr. Warner stated one of the most important things the decision makers needed to understand was what they are trying to ascertain with any treatment of the median. What, as the result of any investment, would they be getting out of it? Mr. Warner gave the fol- lowimg presentation: Fri dl emir's Median Design Goals? A. Improve community image when viewed from University Avenue B. Provide a distinct community image which contrasts abutting cities a HOUSING & REDEVELOMENT AUTHORITY MEETING, JULY 9, 1987 PAGE 4 C. Provide an attractive "front yard" setting for University Avenue businesses D. Set an example of the community's pride Mr. Warner stated the HRA members should think about what they personally think the goals are and possibly write those down so that when they begin talking about the alternatives, they can test the alternatives back to see if they meet the goal the HRA members think it should. Mr. Warner stated one of the things they learn very quickly when they deal with median treatment was that there are many differing agendas for the median. The roadway obviously has as its primary function the requirement to carry vehicles and transport goods in a safe, concise manner, and that was certainly MnDOT's primary objective. Factors Which Influence Median Design A.- Median-and Right -of -Way Width B. Roadway designation (i.e., state trunk highways) C. Drainage design - urban section - rural section D. Overhead lighting - none - median - side E. Design speed F. Traffic volume G. Clear zone /recovery zone H. Number of lanes /shoulders I. Future maintenance J. Construction cost /funding opportunities K. Liability Mr. Warner stated it was very important in front of all the alternatives that the HRA have a firm understanding on what they could and could not do. I HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 9, 1987 PAGE 5 Median Design Elements: A. Roadway surface (lanes and shoulders) B. Drainage design C. Lighting - optional D. Ground cover, i.e., turf E. Landscaping, i.e., shrubs and trees F. Required protective barriers G. Traffic signals and signs Mr. Warner stated he would show some slides of a few other projects in Minneapolis of some median improvements in order to give the HRA members an opportunity to see what has been done. Mr. Warner stated the last part of his presentation was illustrated on draw- ings showing six alternatives for both the rural sections and the urban sections, going from moderate level passive -type improvements to more aggressive improvements. (Mr. Comers arrived at 8:10 p.m.) Mr. Warner handed out an information sheet entitled, "University Avenue Median Alternatives - Fridley, Minnesota, General Cost Implications." Mr. Warner stated that irrigation was included in the more aggressive alter- natives which involved raising up the median with a Jersey Barrier; otherwise, they could get by without irrigation. He stated that irrigation would cost approximately 75¢ /sq. ft. Mr. Robertson stated no action was needed at this meeting. It was information for the HRA members to think about and make any comments. Mr. Warner stated he would reduce the drawings showing the six alternatives, make copies, and send these to the HRA members. It would take about a week. Mr. Rasmussen stated his main concern would be the cost of maintenance for any median improvements. Mr. Warner stated that lighting visually makes a very strong statement. On the other hand, there was also the traffic and safety question.and both MnDOT and the Public Works Department were interested in participating in that decision. Lighting did not always equate to safe roadways. With traffic counts increasing, they might see lighting as a more attractive feature. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 9, 1987 PAGE 6 Mr. Robertson stated they have some schematics of potential acquisition and redevelopment of the northeast corner of 57th and University, the southern intersection of the urban demonstration section. He would defer this to later in the meeting. 3. LAKE POINTE CHANGE ORDERS: a. Arbitration Payment Change Order b. Arbitration Agreement Proposal for Mining Sand Mr. Robertson stated the total award for the arbitration proceedings was $123,363. It also included a rate to be charged if sand would have to be imported from off the site. On Friday, June 19, Staff met with the City Attorney and Mr. Enebek and his attorney, Mr. Svoboda, and discussed the arbitration award. In the second paragraph of a memo dated June 26, 1987, to Mr. Qureshi from Mr. Flora, it stated: "As a result of the dis- cussion, it was agreed that a change order would be executed for the payment of the $123,363. Award included within that change order would be the agreement that any sand mined outside of the perimeters of the contract, excavations would be accomplished at a rate of $1.00 per cubic yard and the replacement of compacted sand at $.25 per cubic yard." Mr. Robertson stated it was agreed at this meeting that the City would not import sand and would use the sand on site in various mixtures with other soils. He stated they asked Mr. Sunde to attend this meeting to explain how this can be done in terms of completing the job without importing sand. Mr. Gerald Sunde stated that in the arbitration, the arbitrators indicated a set price for on -site sand and for mining off -site sand. So, the prices were quite different- -quite high for off -site sand. It was their plan to complete the hotel pad, which was the one remaining pad that required sand, by using sand within the excavation limits as shown in the plans and also by on -site mining, but they do not plan to export any sand off -site. Mr. Sunde stated he believed they would need about 20- 40,000 yards of sand. Mr. Meyer stated he questioned the language in Mr. Flora's June 26, 1987, memo stating: "any sand mined outside of the perimeters of the contract, excavations would be accomplished at a rate of $1.00 per cubic yard and the replacement of compacted clay at $ -.25 per cubic yard,." He stated it took a lot of extra work to compact clay properly with sand, and 25¢ per cubic yard was pretty cheap. This was rather unusual language to convey the fact that this was providing clay compacted in place for 25t per cubic yard. Mr. Commers stated he felt Mr. Flora's language was intended to be a clarification of the actual arbitration award. I HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 99 1987 PAGE 7 Mr. Sunde stated the language was quite clear in the "Award of Arbitrators" (agenda page 3 -C) which stated: "Mine sand from areas on project site not presently planned to be excavated - $1.00 cubic yard (excavated volume)." Mr. Newman referred the HRA to agenda page 3 -0 which was a summary of the discussion which the City received from Mr. Enebak's attorney dated June 19, 1987, outlining the understanding of the agreement. He referred to paragraph 5: "in order to facilitate measurement and payment for the sand mining and clay compaction fill in those areas of sand mining, the City will issue a change order directing payment for mined sand at $1.00 cubic yard (excavated volume) and for clay replacement and compaction at 25t cubic yard." Mr. Meyer stated he was very concerned that there not be any misunderstand- ing between the City and the developer, which has been the problem in the past. Mr. Meyer stated if their big objective was to make the hotel pad class A sand by taking sand from Pad A, was there something in the contract that said that was what the developer expected the City to do? Mr. Commers stated as he understood it, when Mr. Flora interpreted the arbitration award, his interpretation was ambiguous. Were they going to get other ambiguous interpretations of that award, or did they need a change order signed by everyone to make sure they all were in agreement as to what the award said? Mr. Newman stated that what he understood the HRA members to be'saying was they were not challenging the wording of the award but were questioning the wording related to the future work. At this time, he would recommend the HRA authorize the payment of the $123,363 to Enebak pursuant to the arbi- trator's award, but they could get some clarification on the language regarding the mining of sand for review at the next HRA meeting. Mr. Sunde stated it was important for the HRA to know that Enebak was proceeding with the work in mining sand to complete the hotel pad at this time. So, mining was already taking place beyond the excavation limits because it was the only way they could get the hotel pad done. If that was delayed a month,, it would mean another month of work without a change order. Mr. Meyer stated he felt Mr. Newman's suggestion to authorize payment of the $123,363 as the base arbitration award was a good suggestion,bat then the COS' -r per cubic yard, etc., he felt that language had to be more spelled out. It seemed they could ask Mr. Sunde to work up a language that conveys precisely what that really means for the next HRA meeting. Mr. Coroners stated that if the work by Enebak was already done by the next HRA meeting, what good would it do the HRA to have the language clarified? HOUSING a REDEVELOPMENT AUTHORITY MEETING, JULY 9, 1987 PAGE 8 Mr. Sunde stated he wanted some legal basis on which to tell Mr. Enebak that he could continue with the work. Mr. Commers asked Mr. Sunde if he was satisfied with the language in the arbitration award. Mr. Sunde stated there was no dispute by either Enebak or himself on the understanding of the language in the arbitration award. Mr. Commers Stated that since Enebak and Mr. Sunde were in agreement, then he did not think the HRA should have a problem with it. Mr. Sunde stated that since June 19, Enebak has conducted operations according to what was discussed in terms of mining on the site. Enebak has done a very good job on the site. MOTION BY MS. SCHNABEL, SECONDED BY MR. MEYER, THAT THE HRA RECOGNIZES THE ARBITRATION AWARD AS ISSUED BY THE ARBITRATION BOARD, AND IN RECOG- NITION OF THAT, AUTHORIZES THE PAYMENT OF $123,363. THE HRA FURTHER AUTHORIZES MR. SUNDE TO PREPARE A CHANGE ORDER FOR EXECUTION BY THE CITY COUNCIL IN KEEPING WITH THE LANGUAGE OF THE ARBITRATION AWARD THAT SAND WILL BE MINED FROI4 AREAS ON THE PROJECT SITE NOT PRESENTLY PLANNED TO BE EXCAVATED AT $1.00 1CUBIC YARD AND THAT CLAY BE COMPACTED TO REPLACE SAND IN THOSE AREAS AT $.25 PER CUBIC YARD. Mr. Meyer stated that somewhere in the change order, there should be some specifics written down about what was to be done with the soil. Mr. Sunde stated he would agree with that. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY c. Woodbridge Drive Road Improvement Change Order Mr. Sunde stated this was discussed at the last HRA meeting about the poor soil in a section of this road. He stated as a follow -up he had written a letter to the City dated July 1, 1987, (agenda item 3 -E). He had reviewed the soil borings in that area and there were a couple of borings that showed silty fine sand underlain by SC and CL soils. The borings did not show a water table near the ground surface, but did show some fairly heavy soils down a short distance. This situation has persisted until just recently when the unusually dry spring and early summer resulted in drying. Mr. Sunde stated they questioned the soils engineer about the recommenda- tion and his main concern was not the presence of water at times near the surface but damp conditions that would cause frost heaving. Mr. Meyer asked if they were seeing this frost susceptibility elsewhere on the site. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 9, 1987 PAGE 9 Mr. Sunde stated he thought this case was a little unusual because it overlays a fairly dense soil where the water tends to accumulate. Mr. Robertson stated this change order was approved by the HRA at their last meeting so this was an informational item. d. Street Light Bolt Change Order Mr. Pribyl stated that on Monday, July 6, the City Council approved $5,585.47 for anchor bolts for street lighting, taking into account the total number at $50 -75 per set. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO CONCUR WITH THE ACTION TARN BY THE CITY COUNCIL REGARDING ANCHOR BOLTS FOR STREET LIGHTING. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. e. Approval of the Pad A Modified Equal Agreement Mr. Sunde stated the HRA had a copy of a letter from Enebak dated June 24, 1987 (agenda item 3 -P) stating they agreed to perform the exca- vation and backfill at the pad "A" location for the same price as the original contract price. Ms. Schnabel stated she questioned item #4 in the letter which stated: "The City of Fridley accepts and agrees to all items outlined in Mr. Svoboda's letter dated June 22, 1987,with the following exception (this credit will be available only if the final plans for the sand fill requirements at the Hotel Pad are not changed), we agree to strike that from the agreement." In other words, Enebak was agreeing to strike from the agreement the sand requirements for the hotel if the pad was not changed. Mr. Sunde stated he was planning to write a letter of concurrence to Mr. Enebak, but before doing that, he would like to review the wording of item #4 with Mr. Newman and get a clarification of that statement. He was not quite sure what was meant by that statement either. MOTION BY MS. SCHNABEL, SECONDED BY MR. MEYER, TO APPROVE THE CHANGE ORDER WITH RESPECT TO THE MODIFICATION OF PAD A, WITH THE EXCEPTION THAT ITEM #4 IN MR. ENEBAK'S JUNE 22, 1987, LETTER TO MR. SUNDE BE CLARIFIED. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 9, 1987 PAGE 10 f. Hotel Pad Sand Requirement Mr. Robertson stated there was a letter from Subterranean Engineering Corporation to the HRA clarifying the recommendations contained in their Soil Report for the Hotel Site. This was an informational item. g. Possible Pad A Enlargement Approval Mr. Sunde stated Woodbridge was requesting that a sketch be drawn up and it be sent to Subterranean and Enebak for a cost so Woodbridge can determine whether or not they want to do the extra work. (letter dated June 17, 1987, to Mark Burch from Eric Nesset - agenda item 3 -Y). This was an informational item also. 4. CONSIDERATION OF ORDERING DETAIL DESIGN FOR RICE CREEK ROAD IMPROVEMENTS: Mr. Robertson stated there was a racquet club /shopping center development proposed on the south side of Rice Creek Road. The Planning Commission has reviewed it and made a favorable recommendation to the City Council. The City Council will have a public hearing at their next meeting. He stated the City was now faced with the task of doing a detailed engineering design of that improved Rice Creek Road according to its conceptual layout which was included in the HRA agenda. The question before the HRA was: Did they at this time want to proceed with directing SEH to proceed with detailed design work or did the HRA merely want to take this under advisement and ask for a cost estimate from-SEH for the next meeting, at which time, the HRA would make a decision on who would do the detailed design? Mr. Commers stated that since there was still going to be a public hearing at the next City Council meeting on the project, he did not-see how the. HRA could proceed with directing SEH to do the final design work before that meeting. MOTION BY MR. RASMUSSEN, SECONDED BY MR. PRAIRIE, TO REQUEST SEH TO PREPARE A COST ESTIMATE FOR THE DETAIL DESIGN WORK FOR THE RICE CREEK ROAD IMPROVEMENT BASED ON THE PRELIMINARY DESIGN, AND BASED ON THE CITY COUNCIL'S APPROVAL OF THE PROJECT. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. CLAIMS (1615- 1627): MOTION BY MR. RASMUSSEN, SECONDED BY MS. SCHNABEL, TO APPROVE THE CHECK REGISTER AS PRESENTED. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY HOUSING & REDEVELOPMENT AUTHORITY MEETING, JULY 9, 1987 PAGE 11 Mr. Pribyl stated he would also like the HRA to authorize payment of $30,000 to Winfield Development for soil correction according to the development agreement. Winfield Development has now completed construction._ MOTION BY MR. PRAIRIE, SECONDED BY MS. SCHNABEL, TO APPROVE THE CERTIFICATE OF COMPLETION AND AUTHORIZE A PAYMENT OF $30,000 TO WINFIELD DEVELOPMENT FOR SOIL CORRECTION COSTS. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Because of some concerns expressed by the HRA members, Mr. Pribyl stated he would send the HRA members a copy of the insurance policy covering them. 6. AN14UAL FINANCIAL STATEMENT: Continued until next meeting. 7. OTHER BUSINESS: a. University Avenue Corridor Plan Mr. Robertson stated that in January, the City Council expressed an interest in having a redevelopment project at the lower end of University Avenue. At the last City Council meeting,Mr. Qureshi presented to the City Council three different alternative concepts for redevelopment of the area comprising Shorty's Towing, Rapid Oil Change, and the property behind that. Mr.-Qureshi stated that if the HRA wanted Staff to do more work, Staff would run some numbers and bring these.back to the HRA. The HRA members agreed to have Staff pursue this and bring back a package for the HRA's review. ADJOURNMENT: MOTION BY MR. RASMUSSEN, SECONDED BY MR. MEYER, TO ADJOURN THE MEETING. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE JULY 9, 1987, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 10:33 P.M. Respectfully submi ted, r Eynnf Saba Recording Secretary 0-USING and REDEVELOPMENT AUTHORITY COMMISSION MEMBERS CITY OF FRIDLEY LAWRENCE COMMERS, CHAIRMAN JOHN MEYER DUANE PRAIRIE WALTER RAMUSSEN VIRGINIA SCHNABEL MEND M: dousing & Redevelopnent Authority FED FROM: Jack Robertson, Executive Director of HRA rEM) DATE: August 71 1987 REGARDING: Lundgren Letter of Credit I spoke with Mr. Lundgren today regarding the status of his letter of credit. Mr. Lundgren feels he is making some progress in the negotiations previously discussed with the HRA. Mr. Lundgren will be in attendance at the HRA meeting on August 13, 1987 to update the HRA on his current position. JLR/dm W -87 -170 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450 FRIDLEY, MN 55432 EXT. 117 ENGINEERS ARCHITECTS/ PLANNERS 222 EAST LITTLE CANADA ROAD, ST PAUL. MINNESOTA 55117 612 494.0272 August 4, 1987 Mr. John Flora, Director of Public Works City of Fridley 643' 1_7171i;ersitY Avenue tJ.F,. Fridley, Minnesota 55432 Dear Mr. Flora: Final plans and specifications were completed earlier this year for the upgrading of the T.N. 65 -Old Central Avenue -West Moore Lake Drive interchange. These plans were prepared as a result of a transportation study that addressed traffic capacity needs for this general area. Since the T.N. 65 plan completion, the City has developed lighting standards and concept plans for the T.H. 65 corridor. In keeping with these standards, the plans and specifications should be revised to include the roadway lighting. The study also recommended improvements along Rice Creek Road between T.H. 65 and Old Central Avenue. The improvements are proposed to provide an incentive for south bound Central Avenue traffic to divert to T.H. 65 via Rice Creek Road. A Project Development Report was prepared to address the general roadway with characteristics. The PDR concept plan was presented at a public hearing and addressed the requirements of the proposed commercial development in the southwest quadrant of Rice Creek Road and Old Central Avenue. The next step in the improvement process is to prepare final plans and cpecificatiors-S detaiiing the project features.' During the design of the T.H. 65 intersection reconstruction, the need for upgrading Old Central Avenue between Rice Creek Road and Hathaway Avenue surfaced. In order to fully achieve the desired traffic diversion onto Rice Creek Road, improvements restricting traffic capacity along Old Central Avenue must be implemented. The general concept is to modify Old Central into a parkway. The general ideas consider two single lanes separated by wide landscaped islands. The exact width and parking considerations have not been fully resolved. Several alternatives are available for the City's review. A preliminary study is required to address the alternatives and investigate the best solution. _ _ 5:% Mr. John Flora, City of Fridley August 4, 1987 Page 2 As requested, we have made an attempt to estimate our engineering fees for the stated work. The scope of services and estimated costs are identified as follows: T.H. 65 Lighting Prepare final plans and specifications and make changes to the T.N. 65 plans to include street lighting for north bound and south bound lanes along T.H. 65 between the I -694 northerly ramps and Rice Creek Road. Revise the bidding schedule and engineers estimate to include the street lighting features. Estimated Fee Not to Exceed $5,100 $6,375 Rice Creek Road Based on the approved PDR concept plan, prepare final plans and specifications to include the following features; street, medians, south boulevard sidewalk, lateral storm sewer, landscaping, decorative brick, city owned utility adjustments, street lighting along both boulevards, T.H. 65 signal adjustments, traffic control plan, construction sequencing plan, temporary easement descriptions, permit applications application fees) and coordination with Mn /DOT and Anoka County. Estimated Fee Not to Exceed $42,000 $52,500 Construction related services to include construction staking, documentation, review of contractors progress and payments, project, representation shop drawing review. Estimated Fee $50,500 2A Old Central Avenue - Preliminary Stud Investigate alternative parkway concepts and address advantages and disadvantages of the concepts studied. Review feasibility of a new parking lot situated in the City park area. Address the general project features of landscaping, street width, median configuration, street lighting, bituminous trail, storm sewer, City owned utility adjustments and right -of -way requirements for the alternatives. Prepare estimate of project costs for the selected concept. Estimated Fee $18,000 John Flora, City of Fridley August 4, 1987 Page 3 Basis of Fees We request that the fees be based on an hourly rate of the actual people employed and multiplied by a factor of 2.1 for overhead §nd profit. Where not to exceed figures are given, we feel that the scope is well enough defined. Otherwise we request that a straight hourly basis be used where the scope may change based on need. This will allow the City the option of modifying the scope based on the findings as the study proceeds. The construction related services does not have a not to exceed figure since our time on the project is based on the progress of a third party (the contractor). Thank you for considering SEH in continuing our services. Sincerely, Shor - Elliott- Hendrickson, Inc. Donald G. C istoffersen, P.E. Civil Department Head DGC /dmh M R 2C SCHEDULE HOURLY PAYROLL COST RATE RANGE BY CLASSIFICATION(1) CLASSIFICATION PAYROLL COST(2)(3) OFFICE STAFF Principal Engineer Project Manager Project Engineer /Architect Design Engineer /Architect Planner /Landscape Architect Designer Engineering Technician III Engineering Technician - II Engineering Technician - I Drafters Clerical II Clerical I FIELD STAFF Resident Project Representative II Resident Project Representative I Field Survey Crew Chief Field Survey Rodman $41.00 - $48.10 $24.50 - $35.80 $20.00 - $25.75 $15.65 - $22.00 $16.80 $19.35 - $23.50 $14.90 - $20.15 $12.65 - $17.90 $ 9.65 - $13.45 $ 7.00 - $13.60 $ 9.65 - $17.30 $ 6.70 - $10.30 $15.25 - $23.00 $ 9.65 - $13.45 $11.90 - $22.25 $ 7.00 - $12.70 (1) The actual rate charge is dependent upon the hourly rate of the employee assigned to the project. The rates shown are subject to change. (2) Payroll cost equals the actual amount paid to the employees plus fringe benefits. The benefits include social security, workmens compensation, hospitalization insurance, etc. (3) The payroll cost will be multiplied by a factor to cover the cost of administrative overhead and profit. Issued: May 18, 1987 Expires: April 15, 1988 IOUSING and REDEVELOPMENT AUTHORffY CITY OF FRIDLEY COMMISSION MEMBERS LAWRENCE COMMERS, CHAIRMAN JOHN MEYER DUANE PRAIRIE WALTER RAMUSSEN VIRGINIA SCHNABEL NEW 2D: Fridley Housing and Redevelopment Authority MM3 FROM: Jock Robertson, Community Development Director kiE D DATE: August 7, 1987 REGARDII;: University Avenue (T.H. 47) Median Treatment Alternatives We have reviewed the Barton- Aschman memo of July 16, 19871 which summarized the presentation of the median alternatives to the HRA on July 9. The staff had somewhat the same reaction as the board did at that time in that it first seemed like a bewildering array of choices. However, when we began to look at this in more detail, we decided we could combine some of the best features of several of these alternatives, rather than sticking strictly to one choice for rural median and one choice for the urban median. As a result, we would like to recommend the following combinations which achieves all of the design intents listed on page 1 of the Barton- Aschman memo, but which would provide more variety with an emphasis on intensity of landscaping treatment at intersections. Traff is is slower and there is an emphasis on landscaping of the cross streets. On the urban sections, we would recommend that the HRA adopt median treatment F, the full width raised median with plantings, at the intersections, extending back for only the length of the left turn lane. Between intersections, then we would recommend treatment. A, the maintained grass median turf improvements, with the addition of occasional treatment C, berm median shrub or wildflower massings. We believe that it is important to try a wildflower massing because of the color provided, and the low maintenance characteristics of this type of plant material. Further, MnDoT has a specialist on the staff who is promoting experiments with these materials and the staff would like to approach MnDoT to see if they would be interested in a joint venture on this demonstration project. 7he rural section would have the same theme. Treatment F, the alternating trees with protective barrier, at the intersections, as far back as the lef t turn lane. Treatment A, upgrading of the grass drainage swale median in between these intersections with intermittent treatment D (bermed shrub and wildflower massing). We believe this solution would provide the maximum visibility to our investment on a per linear foot basis while reducing maintenance costs to an effective minimum. JLR/1mn EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (6 12) 571 -3450 FRinLEY, MN 55432 EXT. 117 }f CITYOF FRIDLEY CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY. MINNESOTA 55432 • PHONE (612) 571 -3450 March 5, 1987 CERTIFICATE OF OCCUPANCY AGREEMENT Fbr 7980 RANCHER'S ROAD N. E , FRIrLEY On March 5, 1987, I was issued a Certificate of Occupancy for 7980 Rancher's Road with the agreement that I will complete the fallowing: I agree to install the hedge at 7980 and 7940 Rancher's Road, between the larking lots and Rancher's Road, as per permit stipulation on permit #18163 and permit #18109. I agree that the hedge will be edged and mulched and will be planted prior to July 1, 1987. I agree to grace the bottom of the pond so that it will drain after a storm and will seed the pond so that it can be cleaned and the grass maned, by July 1, 1987. I agree to construct the outflow control structures according to approved plans by Gomstock & Davis, Inc. , by July 1, 1987. I also agree to provide a fire protection system or install a Class A -3 hour roll -up fire door in the existing fire well in 7980 Rancher' s Road on or bef ore April 15, 1987. AS gur - Pasdhke Properties 3-- ,-� r -- rte% Date r 4,4 I � • CIVIC CENTER • 6431 UNIVERSITY AVE. N.E. FRIDLEY. MINNESOTA 55432 • PHONE (612) 571 -3450 July 7, 1987 PW87 -131 Mr. Gerry Paschke G.W. Paschke Properties 7970 University Ave., N.E. Fridley, MST 55432 Dear Mr. Paschke: We have been working with your canpany for several years attenpting to facilitate the arnpletion of the storm water detention pond at 79th Ave. and Main St. As of this date, there are two items which remain to be carpleted: 1. Establish ground cover on the entire pond. This can be done by either seeding or sodding. However, our experience has shown that sodding is the most effective way to establish cover in detention ponding areas. 2. Correctly install the outlet control weir. The weir which has been constructed will not function properly and is not of adequate length or set at the correct elevation according to the plans suhai.tted by Paschke Properties. We feel that we have afforded you sufficient time to crnplete the construc- tion of this detention facility. We are hereby notifying you of our intent to hire an independent contractor to couplete these improvements if you have not done so by July 24, 1987 and that we intend to deduct the cost of the work fran the $10,000.00 account that is being held by the BRA. Sincerely, Mark L. Burch Assistant Director of Public Works NWAS cc: Virgil Herrick, City Attorney Nasim M. Qureshi, City Manager John G: Flora, Public Works Director Jock Robertson, Executive Director - HRA i A r: CIIYOF FRIDL>:Y Cr -NT%R • (t.71 UNIVERSITY AVE. N.E. FRIDLEY, MINNESOTA 55432 -PHONE (612) 571 -3450 July 31, 1987 Fir. Jerry Paschke G. W. Paschke Properties 7970 University Avenue N.E. Fridley, M 55432 PW87 -148 Certified Mail #P -493 947 456 SUBJECT: Storm Water Detention Pond Completion Requirements Dear Mr. Paschke: At our meeting on July 30, 1987 we discussed the requirements for completion of the storm water detention pond which services your development north of 79th Avenue. We reviewed the reed for mowing the pond area, grading of the bottcre, of the Lund, proper installation of the weir, and seeding or sodding the pond to red-ce erosion. You stated at our meeting that you believe you have sati sf ied your obligations on this ponding area and would not complete the items outlined in this letter. Mherefore, as we have previously notified you by letter dated July 71 1987, we will reounmend to the BRA that they award a contract for the completion of the improvements to this detention facility and that the cost of these improvements be deducted from the monies being held by the BRA. Upon approval of the BRA we will commence construction as soon as possible to com.plete the storm water facility. Please feel free to contact me at 571 -3450 if you have any questions on this matter. Sincerely, KM L. BURGH Assistant Public Works Director t1B /mh OUSING and REDEVELOPMENT AUTHORITY CITY OF FRIDLEY COMMISSION MEMBERS LAWRENCE COMMERS, CHAIRMAN JOHN MEYER DUANE PRAIRIE WALTER RAMUSSEN VIRGINIA SCHNABEL AE14D 7D: Nasim Qureshi, HRA Director NEE) FROM: Jock Robertson, HRA Executive Director John Flora, Director of Public Works MEND DATE: August 6, 1987 R03ARDIM: Lake Pointe Pad A Excavation Changes We have been informed that the May 12, 1987 earthwork estimate for the modified Pad A as subsequently approved by Woodbridge, was in error, due to the finding of a larger amount of unsuitable soils at the southern edge of the proposed Pad site. Consulting engineer, Jerry Sunde, has indicated that this could result in an increase of 20,000 cubic yards at a potential cost increase of $25,000. Immediately we informed Woodbridge of the situation but as we go to press they have indicated that they do not accept an increase in cost of the work but desire that Pad A be prepared as approved. We are constrained by time because the contractor is working in the area. Therefore, our consulting engineer, Jerry Sunde, has directed the contractor to proceed with the change order with the understanding that the change order will be approved by the HRA and executed by the City Council. JLR/dm N-87 -165 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. (61 2) 571 -3450 FRIDLEY, MN 55432 EXT. 117 01 5A CITYOF FM DLEY CI`'IC CENTER - 6431 UNIVERSITY AVE. N.E. FRIDLEY. MINNESOTA 55432 - PHONE (612) 571 -3450 August 5, 1987 Jon McClure Woodbridge Properties, Inc. 320 Woodridge Plaza 10201 Wayzata Boulevard Minnetonka, M 55343 RE: Pad A Excavation Quantities and Estimates As a follow -up to our phone conversation I am enclosing a copy of the letter from Subterranean Engineering Corp. today with the final information regarding building Pad A of August 5, 1987. Since our phone conversation, Eric Nesset returned my call and I repeated the same information to him. I subsequently talked with Jerry Sunde of Sunde Engineering and he indicated he would prepare a complete packet of background information on this item and drop it off at your office by tomorrow morning. It is important that we reach an agreement on this quickly. The BRA board meets Thursday, August 13, 1987 and the earthwork contractor is working in this area. 1 hey have indicated they could hold off until Thursday afternoon, August 6, but we must be in a position to give them a decision by the end of the day on Thursday. If we do not hear from you in time to make the decision we will proceed on our own to have the contractor finish the project to our best judgement. If I can be of further assistance to you on this matter please do not hesitate to contact me at your earliest convenience at 571 -3450 x 158. Sincerely, Z�Xe.,Z Mark Burg Assistant Public Works Director bB /dm C-87-352 C ffIs ShcOrMU"IAIVEAN ENGINEERING CORP. professionz: sol ,bons to your sod engineering needs Job No. X -85077 August 5, 1987 Fridley H.R.A. City of Fridley 6431 University Avenue N.E. Fridley, Minnesota 55432 re: Building Pad "A" Lake Pointe Corporate Center Fridley Minnesota Dear Mark: Pursuant to our telephone conversation today, we have reassessed Building Pad "A ", and have three comments: 1.) Report by Subterranean Engineering Corp. in June 1987 under estimated the size of the peat bog in the southern portion of the pad. A subsequent report dated July 9, 1987 shows correct contour lines of excavation. 2.) Additional borings recently conducted by Subterranean Engineering Corp. will provide additional information in this area. Actual excavation contours may change accordingly. 6875 Highway 65 N.E. P.O. Box 32308 Minneapolis, MN 55432 (612) 574 -1242 12203 Nicollet Ave So. B+v►nsville. MN 55337 (612) 890 -6510 P� 3.) The report dated June 1987 assumed the limits of excavation extended 40 feet beyond the proposed building line. The July 9, 1987 report extended the limits of the base excavation to include a 40 foot building pad oversizing. Thus the excavation volume figures provided in June were too low, not having provided for a large enough oversizing at the base. We trust this is suitable for your present needs. If you have any questions, please call the undersigned at 574 -1242. RWA /pg Sincerely, SUBTERRA EA INEERING CORP. Rod ey W. Ambrosie �errrsera�rw� ae�e. ns. ie r�io. 5C En - 'i66eSir19 Sew e[ Wate` S! Ois' g Ralhie"fia,4ce MEMORANDUM TO: John G. Flora, Public Works Director EW87 -256 FROM: fiark L. Burch, Asst. Public Works Director DATE: July 29, 1987 SUBJECT: Lake Pointe Project fleeting Regarding Detention Pond Landscaping CP, i 6 s' The folly ,7ing people were present at a meeting held on July 28 here at the Civic Center to discuss the landscape treatment of the detention ponds on the Lake Pointe site: Dave Weir, Woodbridge Properties Gene Ernst, Ernst Associates, Inc. Eric Nesset, Woodbridge Prcperties John Flora, City of Fridley John IicClure, Woo6bridge Properties Mark Burch, City of Fridley 71,e purpose of the meeting was to consider changing the landscape treatment of the detention ponds in Lake Pointe from rip -rap and boulder treatment to sod kits, concrete valley gutters along the flow line to assure good drainage. Gene Err:st reviewed the history of the ripr-rap ana Moulder design and recommended that the option of sodding with concrete spillways was a preferrable solution from both an appearance and maintenance stand point. After discussing the options outlined by Gene Ernst and the possible cost savings of $30,000 to $50,000, we made a field inspection of several storm pones in Fridley with and without the spillways. After viewing the pones in the field, everyone agreed that the preferred solution would be to sod the detention ponds and construct spillways to ensure good drainage. I instructed Gene Ernst to work with Minnesota Valley Landscaping to prepare a change order to deduct the boulders and rip -rap and add sod and irrigation to the bottom of the ponds. When the change order is ready, we will have it approved by Woodbridge Properties and then request City Council ana HRA approval. • 6A Forge Wo - R -187 -256 Another item which was discussed at the meeting was the deletion of irrigation systei;s on the building sites. Dave Weir requested that the City consider deleting all of the automatic irrigation systems in the seeded areas where future buildings will be built. We informed Dave that we felt it was everyone's intention when the project was proposed to have the irrigation system to insure a "park -like, campus" setting on the site until all of the buildings were constructed and final landscaping and irrigation was in place. After much discussion, I informed Dave Weir that if he would write a letter requesting this change that we would forward it to the City Council and HRA for their consideration but that we would take no action on his request without a letter from Woodbridge. FI B/ts cc: Nasim Qureshi ve Neuman ock Robertson Gene Ernst, Ernst Associates, Inc. Gerry Sunde, Sunde Engineering OUSING and REDEVELOPMENT AUTHORITY CITY OF FRIDLEY COMMISSION MEMBERS LAWRENCE COMMERS, CHAIRMAN JOHN MEYER DUANE PRAIRIE WALTER RAMUSSEN VIRGINIA SCHNABEL NEND Z0: Fridley Housing and Redevelopment Authority MEMD FROM: Jock Robertson, Director of HRA MEMD DAZE: August 7, 1987 RFGARDIM: Proposed Civic Center Bi -Level Parking Ramp City Council has reviewed progress on the overall Civic Center expansion and remodeling project to date and has directed the architect, Boarman and Associates, to proceed with the independent cost estimations for the various project oomponents. 7hese estimates will be ready in approximately two weeks and are for the same type of project that you reviewed informally several months ago. Specifically I want to call your attention to item V, attached memo from Boarman and Associates, the proposed bi- level, 96 stall parking ramp. The estimated cost of $7,500 per stall is consistent with independent estimates for parking facilities of this type. This ramp would be the latest in a series of proposals for parking ramps that began in 1985. As soon as we receive updated cost estimates on the ramp then they will be passed along. JLR/lmn rf-87 -171 EXECUTIVE DIRECTOR: JOCK ROBERTSON 6431 UNIVERSITY AVE. 16 12) 571 -3450 FRIDLEY. MN 55432 EXT. 117 7 C) BOARMAN & ASSOCIATES A _ N , E _ E E n G t r. E E A t N G N I E n ' 0 R C'E'. 1 G N RE: FRIDLEY MUNICIPAL FACILITIES SCHEMATIC DEISGN BUDGET PROJECTIONS MAY 18, 1987 I. CITY HALL /UPPER LEVEL . Existing Remodeled $252,000.00 12,600 s.f. @ $20.00 (Original Budget) New Construction 5,785 s.f. @ $80.00 s.f. $462,800.00 . Site Work (Canopy, sidewalks, lunch $50,000.00 rm. area, graphics) . Furnishings 8 Equipment $125,000.00 . Video Equipment 3500000.00 . Contingency (Schematic $110,600.00 Design). SUBTOTAL: $1,050,400.00 . Arch. & Eng. Fees @ 9% Remodeling 8% New Construction II. POLICE DEPARTMENT /LOWER LEVEL Existing Remodeled 10,150 s.f. @ $20.00 (Original. Budget) New Construction 5440 s.f. @ $70.00 s.f. Sitework (Sallyport apron, sec. gate, signage) Furnishings 8 Equipment Contingency (Schematic Design) SUBTOTAL: . Arch. & Eng. Fees @ 9% A 8 E FEES PROJECTED TOTAL (9%) $22,680.00 (8%) $37,024.001 (8%) 340000.001 (8%) $10,000.00 (8%) $4,000.00 (8%) $8v848.00 7A A & E FEES SCHEMATIC DESIGN @ 15% $86,552.001 $12,982.80 5203400.00 (9%) $18,270.00 $352,800.00 (8%) $28,224.00 $25,000.00 (8%) $2,000.00 $60,000.00 (8%) $4,800.00 $100,800.00 (8%) 58464.00 5741400.00 E A Fv M h h E S C' A .. : 4 $61,358.001 $9,200.10 III. FIRESTATION . Existing Remodeled SUBTOTAL: . Arch. & Eng. Fees @ 9% IV. EXTERIOR RENOVATION Demolition Bridge Window Louvers & Facia Entry Modifications North Elevation New Windows Brick Tile 3,480 s.f. @ $10 s.f. New Window Facia and sunscreens 24 @ $600 ea. Entry Canopy 1,470 s.f. @ $25 s.f. Contingency 5% SUBTOTAL: . Arch. & Eng. Fees @ 9% V. PARKING RAMP . 96 Stalls @ $7,500 per stall Sitework New Bridge SUBTOTAL: . Arch. & Eng. Fees @ 4% TOTAL: $1000000.00 $1000000.00 $15,000.00 $34,800.00 $14,400.00 $36,750.00 $5,050.00 $106,000.00 $720,000.00 $30,000.00 $15,000.00 $765,000.00 $2063,000.00 A & E FEES PROJECTED TOTAL F; & E FEES CHEMATIC ESIGN @ 15% $9,000.001 $1,350.00 (9%) $9,540.001 $1,431.00 (4 %) $30,600.001 $4,590.00 CLAIMS 1631 - 1644