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EDA 1995 02 16CHANHASS~ HOUSING AND RI~~P~ AUTHORrI'Y RF~ULAR ~G FEBRUARY 16, 1995 Chairman Boyle called the meeting to order at 7:30 p.m. MP. MBERS PRF_~ENT: Gary Boyle, Don Chmiel, Mike Mason, Jim Bohn and Charlie Robbins STAFF PR~~; Todd Gerhardt, Assr Executive Director APPRQyAL OF MINUTe: Chmiel moved, Bohn seconded to approve the Minutes of tho Housing and Redevelopment Authority meeting dated January 19, 1995 as presented. All voted in favor and the motion carded. VISOR PR~I~ITATIONS; Boyle: The next thing on the agenda is visitor presentations. Did you have anything you'd like to, being you're the only one in the audience. Steve Berquist: I just showed up to see how city government really works. Well actually Todd and I have talked and ~y as I have talked about the...and a little bit about tho city center, he was going to provide us with a recap of what has been approved and what hasn't been approved and then we go from there. Boyle: When you say provide us, you mean City Council? Or all of us? Steve Berquist: Oh everybody. Gerhardt: At the last City Council meeting staff felt it was a directive to give a recap of the situation and some of the action that had been taken in the past on that issue. Hopefully we'll have it by the next City Council and cc the I-IRA on that. I have already started the pull a lot of the information together but I'm far from even being complete on it. Boyle: Maybe this would be a good time to, since the subject was brought up about the pedestrian bridge. I noticed in tonighfs paper, today's Villager that bonds are being sought and one of the areas was the bridge. Can that happen without HRA approval? I mean final approval? What is the process Todd? Housing and Redevelopment Authority - February 16, 1995 Gerhardt: We did sell bonds for the lump amount, or 'estimated amount for the pedestrian bridge but those funds can be reallocated to other areas if the HRA for some reason did not approve the bid on the bond. Or the bid on the pedestrian bridge. That will be coming back to you at your March mooting. Bid opening for the pedestrian bridge will be Marc~ 1. Through past meetings that we~,e had with the HRA, I mean you,re moved ahead with this bridge as if it was going to be constructed with the caveat that if bids are way out of whack, that you know, that you're going to probably look at rejecting the project Or look at other methods of trying to get favorable bids. So with that, kind of wait and seeing with this March I bid date and mo gathering information showing th~ both the City Council and the HRA have authorized tho project and approved it. Boyle: Todd, if the HRA, the assumption, did approve to sell the bonds and utilizing that money for construction of the bridge. Could City Council, then does it have to go in front of City Council for final approval? Gerhardt: City Council has approved the plans and specs for the bridge with the amount of $400,000.00. Staff is under the understanding that the difference between the $400,000.00 and the current estimate was due to increases in the land and increases with adding the trail systems on both sides. With that we feel that if you take those two elements out of the thing and it's in line with what the City Council approved on February 14, 1994. Boyle: Okay. Charlie. Robbins: I guess one of the lines regarding the bridge. I think back and we had a meeting last fall and I can't remember the date. Whether it be the September meeting or the October meeting, and I think we were brought to light that tho estimated budget was $750 or $800. Whatever that number was and I think I'm actually on record by saying it appears that it's getting a little bit out of whack here and I think we should table doing anything, or doing any approval at all and we didn't do any approvals on this bridge project at HRA level. We did not do any approvals at all. Now that's my understanding. Bohn: No. No, no, no. Robbins: ~im, let me state the case please. That was my understanding that it was not an approval to do any formal funding for this bridge project because it looked like the cost was getting a little exorbitant. Gerhardt: Well, as I stated earlier, I'd really like to research this item instead of everybody trying to guess what happened almost 2 years ago. Some of my research that I have done for Steve and I just haven't completed it. I just don't feel comfortable trying to say exactly what Housing and Redevelopment Authority - February 16, 1995 had happened in the past. But to think that we got to the point where we are where plans and specifications are out and bids are being taken without the HRA aware of this, I don't think I'm that tricky. I think I brought a lot of issues back to you and kept you abreast of where we are and where we're going and I'd like to prove that and just have further research into the file to do that. Steve Berquist: Can I just say one thing? Boyle: Steve, why don't you step up to the mic. Steve Berquist: At that same meeting Charlie, it was decided that since the specifications had been done, that it would go to bid and we would then look at and see what the numbers were and whether or not it was feasible. The problem that I had in looking at the bond issue is that there was $800,000.00 that we were actually selling bonds for and the question came to mind, has this been approved. And in fact, no it has not...contingency fund at Monday's Council. So March 1st when the bids are open, then we really have to decide whether or not it's a doable deal. Boyle: And I think that's understood at this time from everybody here and the Council and Todd so... Mason: I clearly remember the HRA meeting when I said to Todd, well if we're going to kill it, should we kill it now. Something to that effect and it was well, we really should wait. I mean the time to do that is when the bids come. If thafs how we choose. That's my recollection. Chmiel: The additional costs that were incurred with that also with the land that we had to purchase, that's where a good portion of those dollars went as well. Boyle: I kind of agree with Todd. Rather than sit here and kind of speculate or assume or whatever, let's wait until Todd has it together and then we'll discuss it. Then when the bids come in, we'll take it from there. Thank you. CQNSmER AWARDING BID FOR DEMQLITIQN OF TI:IK PRYZMIJ /PQNY EXeRtS sVn o G. Gerhardt: I apologize. Under the schedule I was working off of I thought we were going to have our meeting the 23rd and with that, things didn't, I think have worked out fairly well. That we were table to tabulate the bids this afternoon and I handed this out in front of you. We've got an unbelievable amount of activity for this small project. We had 11 bidders and Housing and Redevelopment Authority - February 16, 1995 the bids ranged from $40,648.25 to a high of $91,404.00 by Tim's Lawn and Landscaping. The range in there was in the $50,000.00 bracket and you had a couple people in tho high end and a few in the 40's. Staff is aware of Angstrom Excavating. They're a local firm. They're on the Chanhassen/Bden Prairie border down off of Pioneer Trail. They have not done work with the city but they have done other grading work in Chanhassen on a private basis whore staff has reviewed their work. We think they are capable of doing the work. We've also asked them where they plan on taking the fill material, or the demo material and they've said Shakopee demolition landfill and that is an appropriate and proper place to dispose of that. So with that, staff would recommend that the lIRA award the bid to Angstrom Bxcavating for the bid amount of $40,648.25. Boyle: Okay. Any comments? Discussion. Charlie, do you have anything? Robbins: Just with regard to the bids and the bids, you're right. They range from downward to upward. But the question is, in terms of are all fi~ings equal in terms of when they bid. Are they all bidding on the same thing so they know up front what's involved and what happens so we're not given all of a sudden after the fact another bill that was not covered by the original bid? Gerhardt: There was a set of plans and specifications put together by BRW and a bid tabulation was sent out. Attached to the bids is a copy of that bid document and an itemiTed list in the back. And BRW has gone through that and compared everybody's bids and added it all up twice to make sure that the bid amount is correct. And with that, there was only one bidder that was off by 50 cents of the 11 so they're pretty good adders. Robbins: And then the next comment would be, is that it's something that's going to be occurring like now or is it in the next few weeks or whatever. I'm just ~inking about the spring/winter having, if they demolish it now, it's going to look basically a torn down area for a while with the cold and snow in there. Is there any reason to do it now compared to doing it a month from now or whatever the circumstances are? Gerhardt: They're not going to get all the work done now. Some of the work will have to occur this summer. They are not going to be able to bring, to do a lot of the sidewalk work. There's going to have to be some of the sidewalks around that building are going to have to probably be torn up and compaction ratios. It's going to be a little difficult to do maybe this time of year but it's open ended that they get to start March 1 and we're hoping that a good portion of the buildings will be down before road restrictions go on. And we're expecting those to go on the week of March 15th. I kind of felt that the HRA wanted to see this project down as soon as possible. I'm not sure if we can hold them up to wait until summer on the thing. I think they're going to want to try to get some work done now. To get 11 Housing and Redevelopment Authority - February 16, 1995 bidders like this, I still think that doing winter demo projects, we%e done them in the past and we really receive some good bids. Robbins: What's the bid contract form? I mean whafs the longevity in term~ of this bid, how long is the bid good for? Gerhardt: I can't answer that. I want to say 60 to 30 days. Something like that. You need to make a decision in that amount of time. Boyle: I do believe in the past we did give ~aff the indication that we were anxious. That HRA, this commission was anxious to proceed as quickly as possible in demolition. Todd, is there any problems with the, and I know this has probably come up before. Is that a common wall between the Pauly building and the Pryzmus building? I mean is there any problems with that wall? Okay. Gerhardt: There's a foot and a half separation. As you drive along West 78th Street there, it does give you the appearance that the two walls are connected but ifs just a board or a facade. If you go in the back, you can see a gap between tho two physical buildings. And as we put the specs together, we put specific terms in there that they must take precautions when demoing that east wall of the Pryzmus building so that it does not, for some reason, fall the other way and play havoc with the Pauly building. And we also beefed up the insurance that they take the full liability if that should happen and they're going to have to pay for loss of business and any damages that occurs on that Pauly building. Boyle: Okay, thank you. Did you have another question Charlie? Robbins: Well one question regarding the insurance in terms of if anything does happen on that and apparently that's been answereA The other was just a courtesy to the Pauly's. Are they aware that we're looking at doing the demolition so just in terms of their traffic flow and people around there and seeing things being torn down, are they aware of that? Gerhardt: I haven't talked to Russ but I will and I think that's a good idem Robbins: I think as a matter of courtesy, ifd just be nice to tell them that there might be trucks showing up one of these days. Gerhardt: Good ides... Boyle: Jim? Any comments or questions? Housin8 and Redevelopment Authority - February 16, 1995 Bohn: No. Boyle: Don, do you have a question? Chmiel: Just one. In taking out the asbestos that are there. What precautions will they take? There are certain precautions that you have to take with asbestos and I want to make sure that they're in their proper attire so we don't have any liabiliW. And I think that there's certain areas that they have to cover and hopefully who is going to check to make sure that they comply w/th those requirements? Gerhardt: They need to hire a certified asbestos remover and they have to provide that person or business that they~e hired to do that with BRW and the city. And they have to get a city building permit. Demolition permit. And they have to follow the asbestos rules as put out by the federal government and State of Minnesota. Chmiel: I guess I'm just looking for the certification that comes back to us so we're not liable for any of those specific things because they can tell you one thing and do another. So making sure of that disposal, it does have to go into a landfill and it does have to be covered. Gerhardt: I'd say that I got some unbelievable phone calls this week and last week. Non stop and most of them were from environmentalists that the contractors were trying to get on board and the environmentalists also asked for a list of all the bidders so after the project's awarded, you will probably see these demo people take bids from environmentalists for that removal. We will ask for their certification and want to make sure that they have the proper credentials to do the work. Chmiel: Okay, good. The other question was, no. Pll ask it later. Boyle: Jim, I think you had one more. Bohn: The 4 foot concrete sidewalk. What are you talking about a 4 foot concrete sidewalk? Gerhardt: You have to disconnect the sewer and water hook-ups and the boxes are underneath the sidewalks. So the only way you can properly disconnect those is to remove the sidewalk. Bohn: The sidewalk is more than 4 feet wide. Oh, it's 4 inches. 4 inch concrete sidewalk. Boyle: I'm not going to argue ~im. You know your sidewalks. Housing and Redevelopment Authority - February 16, 1995 Bohn: Yeah. That's 4 inch sidewalk. Thick sidewalk. Gerhardt: They have to replace the sidewalks. The width. Boyle: Charlie. Robbins: Comment. Ifs not on this but it's just more of a general comment that Mayor Chmiel made. In terms of people that bid items where there is asbestos, is it a requirement that they show that they are certified up front or is it something we have to ask for in the future? Shouldn't it be a requirement up front? Chmiel: I can probably answer that for you if you want. Robbins: Yeah, please do. Chmiel: Because we used to do this at NSP. If the contractor who gets the bid is not certified, he has to have a subcontractor who is certified in order to do that removal. And the vehicles that they have, have to be covered in going to the landfill and then there's normally a sign off that that was deposited within a landfill and there was immediate fill put over that asbestos. That's the only way you can get rid of it. Robbins: But, okay coupled with that, back to these bids or wherever the bid is. Shouldn't that be just always kind of a thing that we ask for all people to do that always then? Chmiel: In that particular case I think we shoulcL Gerhardt: We did specify that they had to use a certified asbestos remover in the packet. So if they're not doing that, they're not in compliance with the... Robbins: Thank you. Boyle: And somebody will follow up to assure that they are doing that, right? Gerhardt: Yeah. We'll have a person on with this pre-construction meeting with Angstrom and ask them who their asbestos remover will be and we'll ask them for those certifications and licenses and that they are bonded to do that work. We do have, we are covered under liability insurance that we,re demanded that this contractor have. Robbins: I would move that we accept item, bid number 1, Angstrom Excavating as stated by staff showing the dollars as in there attached to us. Housing and Redevelopment Authority - Febmar~ ! 6, ! 9~ Boyle: In the amount of $40,648.00. Robbins: In the amount shown on the memo as $40,648.25. Boyle: For the demolition of the Pryzmus and Pony Express building, is that correct? Robbins: So moved. Boyle: Can I have a second? Bohn: Second. Chrniel: Could I just have a discussion7 Boyle: Yes. Chmiel: I looked and I forgot to mention this one. That underground tank that they have existing. Is that an oil? Gerhardt: Fuel oil tank for fiLrnace. Chrniel: Okay. We could have some additional dollars that could come from that if, in the event, that tank is leaking and I guess I just wanted to make HRA aware of that. You don~t know until once you start excavating that the soils are moist. Then there's some additional dollars that's going to take place. Gerhardt: And that is our responsibility. Chmiel: Yep. Gerhardt: And the way the laws are all set up, you can go back and try to get it from who generated it but at that point we will have to be the up front agency to go in there, contact Minrlesota Pollution Control. They will come out with a remedial action plan for us to follow through and correct those possible spills that might occur. You just don~t know what you've got until you start removing the tank. We did have the tank pumpecL It is empty and so when they do remove it, they aren't going to have any spills. Robbins: Have samples been drawn from soils through now at all? Homing and Redevelopment Authority - February 16, 1995 Gerhardt: No. Not as yet. We are waiting to once they start the demolition project and start to remove the tank and then we'll do the inspection on the ground. Robbins: I'm just thinking about when we did the Cennex deal. We ran into some real interesting problems there with core samples and what was involved with that. Gerhardt: That was from the fuel oil tanks for the gas station. This is a 500 gallon tank. It was for heating purposes. Until you get into it, you don~t know but Pm hoping it wont be the magnitude of the Union 76 gas station. Boyle: Hope not. Has oil been used for heating in the recent years? Gerhardt: Yes. Yeah, we just had the tank pumped and he was living in there for the last 4 or 5 years. He just moved out in September. We had to p~rmp once he lef~. So he had been using it. Robbins: With regard to the same question. On the liability of the demolishing, when they're taking it out, if by chance they crack the tank or whatever and the soft seeps, whatever happens on that? If they pull the tank out, what's our liability we have7 Gerhardt: When the demo crew's taking the tank out if fuel should spill out of it? Chmiel: Well they'll pump the oil out of it. Robbins: Well, it's pumped or whatever but it tums out that there's leakage or the fuel's been, whatever it is. It shows that there's been fuel in the ground. Gerhardt: Over the years? Robbins: Yes. Gerhardt: Then we have to contact the MPCA and they will come out with their ~ifl~er and take samples and there will be a whole remedial action plan where you might have to drill some test wells and things like that. But I just can~ I can't get into it any further until we Bohn: Fuel oil tanks have been removed from homes around Chanhassen for years. In fact two I know on Highland Drive were just removed in the last, one was removed 2 years ago and one was removed about 8 years ago. Homing and Redevelopment Auflaority - February 16, 1995 Boyle: Well lefs hope that there isn't any major spill. There's a motion and a second on the floor. Any further discussion? Robbins moved, Bohn seconded that the HRA award the bid to Angstrom Excavating for ~he bid amount of $40,648.2S for the demolition of the IqTzmm~ony Express Building. All voted in favor and the motion carded. UPDATE ON ~ LEGISLATURE. Gerhardt: Some of you may have read in the paper, on our last bond sale staff was scrambling 2 weeks prior to that sale. Representative Ostmond from Rosemount introduced a bill that would stop any municipality from selling general obligation and tax increment bonds after February 1st. Well what this did was put a hold on our bond sale. I mean our bonding attorney would not sign off on the, give a legal opinion for the sale of those bonds to occur until Mr. Ostmond would modify his bill. So we were in contact with Representative Workman and we talked directly to Mr. Ostmond and requested that he modify his bill at least for the interim, change tho dates on the bill. We didn't seem like we were getting much headway with him. He didn't really care too much about little Chanhassen but when the Target Center deal, City of Minneapolis buyout deal was also affected and potential sale in the upcoming months for the City of St. Paul, $50 million redevelopment efforts that they're working on, seemed to hit home with Mr. Ostmond. And he did change his bill to reflect that and I*ve attached a letter, ifs Attachment #1. No, ifs Attachment #2, a memo from Ostmond to Representative .Ann Rask making those date changes to say that anybody that has authorization to sell bonds as of February 1st, which we have and which Minneapolis and St. Paul have. So we just wanted you to be aware that there are some of these bills out there to impact any future projects that you might be considering. We are constantly monitoring this. Mr. Workman is aware of them and if you would ask me that this bill would get passed, I would say no because it affects anybody from doing anything in the tax increment. And the few little projects that we might have outstanding is nothing but you're talking about Minneapolis, St. Paul, Bloomington, Rosemount. I mean even his own district he's affecting. I mean Rosemount has come over here I don~t know how many times. Sitting down with Don and I saying, how can you do some of the things that you~v0 done. I mean they've brought their lIRA over here. We've talked to the City Manager and their HR Director a couple of times and it just took us back to see the Representative from Rosemount introduce a bill like this, and he's affecting his own district and things that they want to try to accomplish too. So from where we stand, we~,e pretty much completed everything that we want to try to get done...support our tax increment and hope that they don't put those many limitations on other people trying to accomplish things. But I still don~t think that this bill will make it through... 10 Housing and Redevelopment Authority - February 16, 1995 (There was a tape change at this point in tho discussion.) APPROVAL OF BILI~; C]uniel moved, Mason seconded t~ approve the HRA bills as pzesented. All votr~d in favor and the motion carried. lIRA PRESENTATIONS: Robbins: ...I move to move the time to 7:00. Boyle: Discussion. Chmiel: It doesn't matter to me. Mason: Most of the time it doesn't matter to me. Boyle: It's usually better for me too. And we've had some discussion prior and I know some people. One of the reasons that we didn't in the past was that it's kind of' established that each of the City Council and other commissions meet at 7:30 but I don't think that would be an issue. Chmiel: No. Planning Commission now starts at 7:00. Boyle: Oh do they? Okay. Bohn: I don't see any reason why we can't. Boyle: Well, we have a motion on the floor. May I have a second? Bohn: I'll second it. Robbim moved, Bohn seconded that the Housing and Redevelo~ Authority start their meetings at 7.~0 lxm. imtead of 7'.30 l~m. AH voted in favor and the motion carried. Boyle: Todd, if youql make notes so everybody will remember next time when the packet comes, it's 7:00 p.m.. Gerhardt: I don't know why we couldn't go ahead and meet at 7:00 but it will take a modification to your By-laws to reflect that so I will put that on as an item for you. ll Housing and Redevelopment Authority - February 16, 1995 Mason: Well then do we need to meet at 7:30 the next time until it's been modified in the By-laws or can we chance it? Robbins: Let's become an outlaw and meet at 7:00, what do you think? Mason: Well I just don't want to be accused of doing anyli~g under handed or contrary. Boyle: One other issue. Date for next month's meeting. We did say we were going to discuss that each meeting. Maybe we'd better decide that before we adjourn. This being February. March. Third week would be March 16th. Gerhardt: I'm going to have to go upstairs and get my calendar. Boyle: I've got it fight here. Oh, excuse me. It was scheduled for the 23rd. Mason: Oh, that's right and I said I was going to be out of town that day. Pm not going to be able to make Council that Monday either. No, it's in March. FII be here at the next one. It's the 21st of March. Thafs spring break. Boyle: I would probably be gone that week too. Gerhardt: I just don*t think it's fair to Mike and Don The Council meeting went until 1:00 on Monday. Mason: I'm still recovering from that one. Boyle: What Monday in March would be the Council meeting? Mason: 21st. Gerhardt: It's the 21st? Mason: It's the 7th, well I think it is. Gerhardt: It's not, the 21st isn't a Monday. Mason: Okay, well now wait a minute. I'd better, let me check a calendar here. I might be wrong. No, I will be here on the 23rd, I'm sorry. Ifs the 27th. It's that Monday after that FI1 be out of town. Fll be in town for the 23rd. So whatever is your pleasure. I mean we're scheduled for the 23rd but. 12 Housing and Redevelopment Authority - February 16, 1995 Gerhardt: Tentatively we are, as long as everybody can make iL Boyle: I will probably be out that Thursday but if everybody else is here, and the 16th is not convenient. Mason: Well I don't care. I mean I can meet the 16th. It doesn't make any difference... Boyle: Would there be a reason the 16th would not be. Mason: You know, I need to check. I believe, I think that's okay but like I don~t have my calendar here. Robbins: How about the 30th? Mason: See I'm gone. That week. I can tell you this. l~m gone the week of the 27th. Boyle: I think what we'd like to do is, I'd like to make a motion that we schedule it for the 16th if possible. Bohn: That's fine. Chmiel: That's frae. Mason: That's fine, and if it doesn't work, l~ll get a hold of TodcL Boyle: Do we need a second on that? Robbins: So moved. Boyle: Oh, is that the wrong week? I though the Council. Mason: Well we have Council on the 13th and the 27th but, I mean do you see, what's anything in the hopper in March yet? Chmiel: It's always been the third week. Gerhardt: I think the big one coming up is that residential one got pushed to the 16th because you were gone and their attorney was gone. M~son: 13th. 13 Housing and Redevelopment Authority - February 16, 1995 Robbins: But is there anything within our, on the bids or any of these documents 'of any land or anything that needs to be resolved before the 15th or 30th that needs to be done now? Gerhardt: We do, if you have it on the 16th I think I will be able to have Strgar-Roscoe come here and give you an update on the road situation down here on Great Plains and the lighting scenario downtown. They've finished their report on that. Was one thing I was going to schedule. Well the other one would be award bids on the pedestrian bridge. Mason: Well everybody needs to be here on that one. Something tells me. Gerhardt: So those are the two big ones in March. Mason: You think that will be ready by the 16th? The bids? Gerhardt: The bids. Boyle: Can we leave it the 16th then for now? Okay. 16th it is. Robbins: Todd would you send out, just a follow up memo in a couple weeks or the first week in March just alerting us that we have...just to make sure. Gerhardt: Tho HRA members when the meeting date? Robbins: Yes. Thank you. Boyle: It will also be in the Minutes in your packet. Can I have a motion to adjourn the meeting? Ma~on moved, C~mlel ~conded t~ adjoum the meeting. All voted in favor and the motion carried. The meeting wm adjourned. Submitted by Don Ashworth Executive Director Prepared by Nann Opheim 14