HomeMy WebLinkAbout1994/02/22 - ADMIN - Agenda Packets - Economic Development Authority - RegularAGEND A
ECONOMIC DEVELOPMENT AUTHORITY
ST. LOUIS PARK, MINN ESOTA
Tuesday, February 22, 1994
7:15 p.m.
1.
2.
3.
4.
5.
6 .
Call to order
Roll call
J
7.
8 .
Approval of minutes of February 7, 1994 meeting
Approval of agenda for February 22, 1994
Reports
Unfinished business
a. Bid Tabulation: Site Improvements at Tower Place
Bids were received on February 7th for the removal of
demolition debris and soils from approximately the
southerly half of the Tower Place site. Award of bid
was deferred from the February 7th meeting.
Action:
New business
Other business
9. Communications and bills
10. Adjournment
3
REQUEST- FOR EDA ACTION
DATE February 22, 1994
AGENDA SECTION:
NO. 6
Unfinished Business
ORIGINATING DEPARTMENT:
Public Works
ITEM: Bid Tabulation: Site Improvements
at Tower Place - Project No. 94-14
NO. 6a
APPROVED: )./2..ch_
James N. Grube
Director of Public Works
)
Synopsis: This report addresses the issue of site preparation at the Tower
Place site and recommends the Economic Development Authority (EDA) award a
contract for the work.
Background: On February 7, 1994 the EDA considered the issue of site
preparation at the Tower Place site. The scope of the site preparation
activities included the removal of soils and demolition debris and the import
and compaction of granular soils to a graded finish which would accommodate
building and paving construction. Bids were received for the work on February
.7, 1994; however the EDA postponed contract award until the issue of project
financing has been reconciled.
Discussion: Over the last two weeks EDA staff has collaborated with
representatives of Frauenshuh Companies (Frauenshuh), the site developer, to
establish an equitable cost share for the parties. Based on the results of
the discussion, it appears Frauenshuh is responsible for $100,000 of the total
cost of the site preparation and the EDA is responsible for $303,770 in costs.
Staff and Frauenshuh representatives established the cost split based on the
fact the parties expected the site to be free of demolition debris, and when
it was discovered, Frauenshuh possessed a quotation of approximately $80,000
to $100,000 to conduct site preparation activities under unhampered
conditions. The presence of the demolition debris and the subsequent
postponement of site preparation activities from Fall, 1993 to Winter, 1994
has caused an increase in activity and related costs. Staff/Frauenshuh
negotiations resulted in the $303,770/$100,000 cost'split. Frauenshuh
representatives have indicated the firm is prepared to pay the EDA $100,000
for its portion of the project cost. In addition Frauenshuh has expressed a
willingness to pay for one-half of Kraus-Anderson Construction Company three
percent (3%) project management fee, or $6,000.
(continued)
PUBLIC WORKS
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EDA staff has examined ways to reduce the EDA cost, and found that a savings
of $20,000 to $40,000 can be realized if sites are designated for placement of
a portion of the soils scheduled for removal. Two nearby sites - one at Wolfe
Park and one at the Oak Park Village soccer field s have been identif ied as
sites in need of approxim ately 4,OOO - 5,OOO cubic yards of fill (each).
Alt hough it will be necessary to receive Conditional Use Permits for the
placement of fill at each site, representatives of the Community Development
Department and Inspection Division have indicated they will allow the
stockpiling of the material on the sites prior to issuance of the permits for
fill placement. Insofar as the Wolfe Park site had been issued a permit for
fill placement previously , it is anticipated no objection will be received
when a new permit is sought. While the placement of 4,000 to 5,000 cubic
yards of material in the Oak Park Village site appears signif icant, it
represents only a 6 to 12 inch increase in the level of the two soccer fields
at the site. Such site grading is not uncommon for athletic fields within the
City , and no opposition to the soccer field grading is anticipated.
If the EDA (and City Council) agree to the use of the sites, EDA staff will
negotiate a contract cost reduction with Minger Construction, Inc. (Minger) to
reflect material transportation cost savings. Minger is the lowest
responsible bidder (see attached February 7, 1994 report) to whom a contract
may be awarded if the EDA elects to proceed with the project. The results of
the negotiation will be reported to the EDA at its next meeting if the EDA
authorizes staff to proceed with the negotiations with Minger.
Recommendation: It is recommended the Economic Development Authority accept
the bid of Minger Construction, Inc. in the amount of $403,770, to complete
site preparation activities at Tower Place.
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R E Q U E S T- F O R E D A A C T IO N
DATE February 7, 1994
AGENDA SECTION:
NO. 5
Reports ORIGINATING DEPARTMENT:
ITEM:
NO.
.Bid Tabulation - Site Improvements
Sa Supplement at Tower Place
APPROVED: ./ , AA-Z,, » dames N. Grube } "°
Director of Public Works
Synopsis: This report supplements an Economic Development Authority (EDA)
report to be considered at the February 7, 1994 EDA meeting (Item 5a).
Background: On January 18, 1994 the EDA authorized staff to solicit bids for
the removal of demolition debris and soils from the southerly half of the
Tower Place site. Bids were received for the Tower Place site preparation on
February 7, 1994 in accordance with an advertisement for bids placed in the
St. Louis Park Sun-Sailor on January 26 and February 2, 1994 and the
Construction Bulletin on January 28 and February 4, 1994. The result of the
bid letting is as follows:
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Contractor
Minger Construction, Inc.
S.M. Hentges & Sons, Inc.
Midwest Asphalt Corporation
Friedges, Inc.
Steininger Construction
F.M. Frattalone & Sons, Inc.
Bolander & Sons, Inc.
G.L. Contracting, Inc.
Kevitt Excavating, Inc.
Veit & Company, Inc.
Bid Amount
$403,770.00
404,000.00
430,690.00
432,100.00
438,270.00
471,180.00
497,130.00
520,835.00
641,350.00
686,816.00
Analysis of the Bids: The low bid'was submitted by Minger Construction, Inc.
(Minger). Minger is a "spin-off" company of the former J.P. Norex, Inc. Mr.
Patrick Minger, a principal in the firm, is a former principal in J.P. Norex,
Inc. Mr. Minger was significantly involved in the W. 36th Street
reconstruction project (in the vicinity of the Knollwood Mall) in 1991/1992.
In fact Minger Construction, Inc. finished the project in 1992 after J.P.
Norex, Inc. was dissolved in 1991. Although the firm is relatively new (as a
spin-off), staff is satisfied it can complete the work in accordance with the
contract provisions. Accordingly, Minger's bid is considered the lowest
responsible bid.
(continued)
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