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HRA 01/06/1994 - 29568"� '"� CITY OF BRIDLEY HOIISING & REDEVELOPMENT AIITHORITY MTETING� JANUARY 6, 1994 ______________________.,______________..___________________________ CALL TO ORDER: Vice-Chairperson Schnabel called the January 6, Redevelopment Authority minutes to order at 7:30 ROLL CALL: 1994, Housing & p.m. Members Present: Virginia Schnabel, John Meyer, Jim McFarland Members Absent: Larry Commers, Duane Prairie Others Present: William Burns, Executive Director of HRA Barbara Dacy, Community Development Director Craig Ellestad, Accountant APPROVAL OF DECEMBER 16 1993 HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the December 16, 1993, Housing & Redevelopment Authority minutes as written. IIPON A VOICE VOTE, ALL VOTING AYE, VICE-CHAIRPE1t30N BCHNABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. 1. CONSIDER AUTHORIZATION TO PUBLISH SPECIFICATIONS AND TAKE BID$ FOR DEMOLITION OF RICE PLAZA: Ms. Dacy stated that the Engineering Department and she coordinated and prepared the spec document, the notice to bidders, and two publications to the Fridley Focus and Construction Bulletin. The taking of bids will occur on Thursday, January 27, 1994. The HRA will receive and award the bids and authorize demolition at its February 3, 1994, meeting. Ms. Dacy stated the contractor will be responsible for the demolition and removal of the building, its contents, and the foundation by March 15, 1994, and regrading and reseeding the site by May 1, 1994. The City is also asking the contractor to remove the concrete sidewalk in front of the building and the bituminous pavement to the rear and west of the building. The pavement in front of the building will remain to allow the drive-through traffic for the Dairy Queen. Mr. Meyer referred to A-2, Scope of Work, page 1, of the Specifications, second sentence from the bottom, which states: "Upon completion of the demolition work, the Contractor shall fill � the excavation and compact the f ill ." He would recommend that this HOIISING & REDEVELOPMENT AIITHORITY MESTING. JAN. 6. 1994 - PAGE 2 ^ sentence be changed to: "Upon completion of the demolition work, the Contractor shall fill the excavation with clean qranular fill and compact the fill." Mr. Meyer stated that B-12, Failure to Complete the Work on Time, page 7, shows a"Schedule of Deduction for Each Day of Overrun in Contract Time". He asked why the City is penalizing the contractor for not finishing work by a certain time. The reason for his question is that usually this is not done unless the City can prove liquidated damages (a demonstrated loss to the City). If the City penalizes a contractor, then legally the City has to indemnify an extra as a bonus or reward. These are things he has been told by lawyers in his work as an engineer. Ms. Dacy stated staff took the Engineering Department's typical bid package and amended it for this particular project. However, this is the HRA's project, and the HRA can amend B-12 if they wish to do so. Mr. Burns stated that the Council has been very adamant on penalties and rewards in City contracts. Mr. Meyer stated that when a contractor sees a schedule like this, usually the contractor will add something onto the cost to protect him/herself. So, it can artificially increase the cost of the bid. ^ There is no need for the City to have a schedule like this unless there is a real need to do that. It is just not good business. Mr. Meyer referred to C-14, Site Restoration, number 1, Topsoil page 14, which stated: "When sodding or seeding is specified, the contractor shall furnish the designated quantities of natural soil." He stated that in another part of the specifications, it says "fill material, grading, top soil, and seeding", and it implies that seeding is a part of the work. He believed they should be very specific with where the seeding is required on the site. Who is going to maintain the seeding? Does the HRA want the contractor to water it for a period of time, or should the City's Public Works Department maintain the seeding? Ms. Dacy stated the contractor is only required to demolish the building and seed the area. After demolition and seeding, the HRA can have the Public Works Department water and maintain the site or the HRA can contract out for the maintenance. Ms. Dacy stated that regarding Mr. Meyer's comment about being specific about the seeding, C-14, page 16 of the Contract, is specific that "placement of topsoil, seed and mulch shall be completed by May 1, 1994, and shall constitute the final completion of the project." She believed C-14 is the typical language used in all City specifications. The Contract on pages 16-17 will be the contract that the HRA will approve at the February meeting. ,� Mr. Meyer stated that if they want seeding to be done, they should be specific that 'seeding shall be done' and be specific about the HOIIBING & REDEVELOPMENT AIITHORITY MELTING{, JAN. 6. 1994 - PAaE 3 i"'� area where the seeding should be. Then this should obviously be - carried through into the contract verbiage. Ms. Dacy stated she will incorporate the change regarding the seeding into the text so it is clear. Mr. Meyer stated he would still like to see the penalty, section B-12, taken out of the contract. Usually, in a contract, the owner will ask the contractor to estimate how many days it will take to complete the project. There doesn't seem to be any place for that in the specifications. Ms. Dacy stated the project is supposed to be completed by March 15, 1994. The City will issue the contractor a notice to proceed within 10 days after the award of the bid. Mr. McFarland stated the project is set up so that the HRA would not pay the contractor until the work is completed. He believed that would be enough of an incentive for the contractor to get the project completed within a reasonable length of time. MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the Specifications for Demolition of Structure at Rice Plaza, 236 Mississippi Street N.E., with the change in wording to "clean granular fill" in A-2, Scope of Work; the deletion of B-12, Failure to Complete Work on Time; and a definition of the area to be � seeded. IIPON A VOICE VOTE� ALL VOTING AYE, VICE-CHAIRPER80N BCHNABEL DECLARED T$E MOTION CARRIED IINANIMOIIBLY. 2. CONSIDER APPROVAL OF 1994 HRA BUDGET: Ms. Dacy stated the HRA budget has been prepared in the same booklet form, color coded, as last year. As last year, staff is trying to separate the expense portion side into two funds, the operating expenses and the housing expenses. The operating expenses are proposed to decrease by 5�, and the housing expenses will approximately double because the HRA has not made any payments for the rehab programs to date, nor have they have acquired any scattered site properties. Staff took the 1993 allocation and added the 1994 allocation, and that accounts for the increase in the size of the housing budget. Ms. Dacy stated that subsequent to the December 1993 HRA meeting, staff did make one minor change in the housing budget. That was to increase the advertising by about 100%. Mr. Grant Fernelius, Housing Coordinator, feels that the HRA should be more aggressive in advertising the first-time homebuyer program and more aggressive in advertising rehabilitation programs for the single family homes. So, this will probably be the first year of advertising the � multiple family rehab programs. Staff would like to do a full page ad on the first-time homebuyer program early this year. HOIISIN(� & REDEVELOPMENT AIITHORITY MEETINa. JAN. 6. 1994 - PAafE 4 r°"� Mr. McFarland asked if the NNgiiFA would split the advertising costs. Ms. Dacy stated the NII3FA will provide a basic brochure on the program and will customize the brochure to accommodate the local community. In terms of other advertising, NIIiFA runs its own routine ad in local papers, and that is usually just a press release. Mr. McFarland asked if the banks would participate in the advertising costs. He stated that if the banks are beneficiaries of the loans, they may be willing to do that. Ms. Dacy stated that is a good idea, and staff will ask the banks if they would consider participatinq in the advertising costs. Ms. Dacy stated that staff also prepared an overall view of the revenues versus expenditures. Staff is trying to be as realistic as possible in terms of the anticipated cash flow up to the year 2000. It is staff's consensus that it is not realistic to make too many assumptions after the year 2000. The only negative balance that occurs in terms of the annual balance is in 1995, in large part because of the final payment of the Lake Pointe temporary tax increment bond. Rick Pribyl, Finance Director, has advised her that staff will probably come to the HRA to sell another bond and/or roll-over that bond into another issue. '� Ms. Dacy stated staff has not programmed the Suh acquisition into the expenditures, but did include the possible acquisition of the Gunderson property and Fridley Town Square assistance of $300,000. Ms. Dacy stated the HRA 1994 budget is conservative, but it is realistic. Staff recommends approval of the 1994 HRA budget. MOTION by Mr. McFarland, seconded by Mr. Meyer, to approve the 1994 HRA budget as presented. IIPON A VOICE VOTE� ALL VOTING AYF� VICE-CHAIRPERSON BCHNABEL DECLARED THE MOTION CARRIED IINANIMOIISLY. 3. APPROVE RESOLUTION 1V0. HRA 1- 1994. RESOLUTION DESIGNATING OFFICIAL DEPOSITORIES FOR THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY: MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve Resolution No. HRA 1-1994, Resolution Designating Official Depositories for the Fridley Housing and Redevelopment Authority. IIPON A VOICE VOTE, ALL VOTI1dG AYE, VICE-CBAIRPERSON SCBNABEL DECLARED THE MOTION CARRIED DNANIMOIISLY. 4. LAKE POINTE MAINTENANCE: ,�1 Ms. Dacy stated staff recommends that the HRA approve a motion to authorize staff to prepare plans and specifications and take bids � �, � HOIIBING & REDEVELOPI�IBNT AIITHORITY MEETIN(�, JAN. 6. 1994 - PAGE 5 for the Lake Pointe maintenance project. This is an annual proj ect . MOTION by Mr. McFarland, seconded by Mr. Meyer, to authorize staff to prepare plans and specifications and take bids for the 1994 Lake Pointe maintenance project. UPON A VOICE VOTE, ALL VOTINm AYE, VICE-CHAIRPER80N BCHNABEL DECLARED T8E MOTION CARRIED IINANIMOIIBLY. 5. CLAIMS AND EXPENSES: MOTION by Mr. Meyer, seconded by Mr. McFarland, to approve the check register (checks 2482-2497) as presented. QPON A VOICE VOTE, ALL VOTINa AYF, VICL-CBAIRPER80N 8CffiJABEL DECLARED THE MOTION CARRIED IINANIMOIIBLY. 6. RICE PLAZA UPDATE: Ms. Dacy stated Hong Kong Kitchen closed on December 24, 1993. Staff is wrapping up all the details with Jim Kordiak before demolition. 7. LAKE POINTE MARKETING PROPOSALS: Ms. Dacy stated the HRA had an informational memo dated January 6, 1994, on this item. She stated Merrill Busch, the consultant, has prepared a tentative schedule for the marketing program. Ms. Dacy stated Mr. Burns, Mayor Nee, Mr. Busch, and herself have been looking at potential logos, sign styles, and brochure designs. She showed the HRA members the various logos, sign styles, and brochure designs. Ms. Dacy stated that in terms of an identity or logo, the consultant did a number of variations on the theme of Lake Pointe. The consultant developed a number of different styles in terms of lettering and how it would appear on the printed materials. Mr. Meyer asked if they are overworking the use of the word "corporate", suggesting a use for the site that might be too restrictive to other uses that might also be acceptable. Ms. Dacy stated she thought a corporate use was always the HRA's intent of the use for the site. Corporate could mean many things. The word "corporate" seems to convey the campus image. Ms. Schnabel stated she believed the HRA's original intent was to have this as a corporate site or office buildings where many corporations would have their offices, yet they had also thought of a bank and maybe a hotel. HOIISING & REDEVELOPMENT AIITHORITY MEETING. JAN. 6. 1994 - PAGE 6 ^ Mr. Meyer stated that if they dropped the word "corporate" and used the words "office park", that would include many different types of businesses but with an office environment. He just doesn't want them to imply that only one corporation takes the whole site. Mr. Burns stated the marketing program is being aimed at Minnesota corporations. That was the HRA's and City Council's direction to staff as a result.of the joint HIZA/City Council work session on January 9, 1993, and that has been the whole thrust with Mr. Busch. Mr. Meyer stated that if the HRA and City Council had agreed on a corporate headquarters in their earlier discussions, then this is f ine . Mr. McFarland asked how the HRA will control the aesthetics on site once the land is sold. Ms. Dacy stated that question came up in interviews with the brokers. She stated she believed the HRA should look at a specific set of design criteria and architectural guidelines. What she is hearing from the HRA is that they want this to be a high�class, visible project that is a showpiece for Fridley. They might want to put these changes in the development contract or restrictive covenants. That is part of the reason for setting the style in the advertising to let people know that this is a high class site. '� Mr. Meyer stated he believed the HRA had some pretty specific design criteria in the agreements with the first developer. He stated that as this site is being marketed, there might be some questions in terms of restrictive covenants, zoning, etc., and it might be smart to have those answers already in hand. Ms. Dacy stated that is a good idea. The HRA members were in agreement with the logo and design work as chosen by staff. ADJOURNMENT: MOTION by Mr. Meyer, seconded by Mr. McFarland, to adjourn the meeting. Upon a voice vote, all voting aye, Vice-Chairperson Schnabel declared the motion carried and the January 6, 1994, Housing and Redevelopment Authority meeting adjourned at 8:40 p.m. Respectfully sub itted, �� � � � `Ly Saba Recording Secretary