041811completeagendaCITY OF RICHFIELD, MINNESOTA
MONDAY, APRIL 18, 2011
SPECIAL RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
WORKSESSION
RICHFIELD CITY HALL COUNCIL CHAMBERS
6700 PORTLAND AVENUE
6:30 P.M.
AGENDA
Call to order
Roll call
1. Discussion with Wellington Management, Inc. regarding preliminary proposal for
redevelopment of former Kmart site, 66th Street and Lyndale Avenue
Notes:
Adjournment
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
Roll call
1. Approval of minutes of (1) Special HRA/City Council/Planning Commission
Worksession of March 21, 2011 and (2) Regular HRA Meeting of March 21, 2011
2. HRA approval of agenda
3. Consideration of contract for demolition with S.R. Stevens Excavating for demolition at
7537 Dupont Avenue, 7220 Russell Avenue, 6345 Bloomington Avenue, 6616 Second
Avenue and authorizing staff to contract for any uncovered abatement costs
Staff Report No. 15
Notes:
4. HRA Discussion Items
Notes:
5. Executive Director report
Notes:
6. Claims and payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must
be made at least 96 hours in advance to the City Clerk at 612-861-9738.
richfield: April 2011
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CALL TO ORDER
SPECIAL HOUSING AND REDEVELOPMENT
AUTHORITY/CITY COUNCIL/PLANNING
COMMISSION WORKSESSION MINUTES
Richfield, Minnesota
March 21, 2011
The meeting was called to order by Chair Sandahl at 5:45 p.m.
ROLL CALL
HRA Members Sue Sandahl, Chair; Joan Helmberger, Debbie Goettel, Doris Rubenstein
Present: (arrived at 6:40 p.m.) and Steven Quam
Council Members Debbie Goettel, Mayor; Fred Wroge, Tom Fitzhenry, and Sue Sandahl
Present:
Council Members Pat Elliott
Absent.,
Planning Commission Maureen Scaglia, Tom Rublein, Rick Jabs, Joshua Root, Robert Hall,
Members Present: Dennis Schuller, Daniel Kitzberger
Planning Commission Gordon Vizecky
Members Absent.
Staff Present: Steve Devich, Executive Director; John Stark, Community Development
Director; Bill Fillmore, Municipal Liquor Operations Director; Christine
Costello, Community Development Coordinator; and Nancy Gibbs, City
Clerk.
The City Council unanimously agreed to excuse Council Member Elliott.
Item #1 DISCUSSION REGARDING THE CORNERSTONE GROUP PROPOSAL FOR
LYNDALE GARDEN CENTER SITE
Colleen Carey, President of The Cornerstone Group and Beth Pfeifer, Director of
Development, discussed their proposal for the Lyndale Garden Center site.
Chair of HRA/Council Member Sandahl thanked The Cornerstone Group and stated her
support for the project.
HRA Commissioner Member Quam stated he is very supportive of the project at this point.
Special Counil/HRA/Planning Commission Meeting -2-
March 21, 2011
Item #2 DISCUSSION REGARDING 301 WEST 77TH STREET — VACANT CANDLEWOOD
PARCEL
Tom Woods, owner of Richfield Bloomington Honda, Tim Carter, General Manager of
Richfield Bloomington Honda and Mark Balay, architect from Balay Architects, discussed proposed
plans for the Candlewood parcel.
George Sherman, owner of Sherman Associates, Ryan Sailer, Development and Project
Manager, and Collin Kaas, architect from Kaas Wilson Architects, presented their proposed plans
for the Candlewood parcel.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:57 p.m.
Date Approved: April 18, 2011
Nancy Gibbs
City Clerk
Suzanne M. Sandahl
Chair
Steven L. Devich
Executive Director
J
CALL TO ORDER
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
March 21, 2011
The meeting was called to order by Chair Sandahl at 7:01 p.m.
ROLL CALL
HRA Members Sue Sandahl, Chair; Joan Helmberger, Debbie Goettel, Doris Rubenstein
Present: and Steven Quam.
Staff Present: Steve Devich, Executive Director; John Stark, Community Development
Director; and Nancy Gibbs, City Clerk.
Item #1 APPROVAL OF MINUTES OF SPECIAL HRA MEETING OF FEBRUARY 22, 2011
M/Quam, S/Goettel to approve the minutes of the February 22 2011 Special HRA Meeting.
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
M/Goettel, S/Quam to approve the agenda.
Motion carried 5-0.
Item #3 PRESENTATION OF PENN CENTRAL ANNUAL REPORT
David Gepner, 6845 Penn Avenue, presented Penn Central Annual Report.
Item #4 CONSIDERATION OF REQUEST FOR SUBORDINATION OF HRA FIRST TIME
ADVANTAGE HOME LOAN AT 6400 PORTLAND AVENUE (STAFF REPORT NO.
11)
HRA Meeting -2- March 21, 2011
Community Development Director Stark presented Staff Report No. 11.
M/Quam, S/Goettel to approve a request for subordination of HRA First Time Advantage
Home Loan at 6400 Portland Avenue.
Motion carried 5-0.
Item #5 CONSIDERATION OF REQUEST FOR SUBORDINATION OF HRA FIRST TIME
ADVANTAGE HOME LOAN 7536 FREMONT AVENUE (STAFF REPORT NO. 12)
Community Development Director Stark presented Staff Report No. 12.
M/Goettel, S/Rubenstein to approve a request for subordination of HRA First Time
Advantage Home Loan at 7536 Fremont Avenue.
Motion carried 5-0.
Item #6 CONSIDERATION OF PRELIMINARY AGREEMENT WITH RON CLARK
CONSTRUCTION AND DESIGN COMPANY FOR EXPLORING FEASIBILITY OF
REDEVELOPMENT OF 3.5 ACRE AREA AT FORMER SITE OF RICHFIELD
PUBLIC WOKS MAINTENANCE FACILITY AND ADJACENT PROPERTIES; AND
RIGHT -OF -ENTRY AGREEMENT FOR USE OF 211 76TH STREET WEST AND 7608
PILLSBURY AVENUE BY RON CLARK CONSTRUCTION AND DESIGN
COMPANY (STAFF REPORT NO. 13)
Community Development Director Stark presented Staff Report No. 13.
Commission Member Quam stated he is concerned about this project due to the length of
time the property would be tied up, at this point it would be from fifteen to twenty-one months. He
also stated he would like the HRA to study what the goals are for housing in Richfield.
M/Sandhal, S/Goettel to approve a preliminary agreement with Ron Clark Construction and
Desian Companv for exploring feasibilitv of redevelopment of 3.5 acre area at former site of
Richfield Public Works Maintenance Facility and adjacent properties; and right -of -entry agreement
for use of 211 76th Street West and 7608 Pillsbury Avenue by Ron Clark Construction and Design
Company.
Motion carried 4-1. Commission Member Quam opposed.
Item #7 CONSIDERATION OF AMENDMENT TO CONTRACT WITH ARTEKA
COMPANIES, LLC FOR STREETSCAPE IMPROVEMENTS AT 6401 AND 6444
PENN AVENUE (STAFF REPORT NO. 14)
City Manager/Executive Director Devich presented Staff Report No. 14.
M/Goettel, S/Sandahl to amend a contract with Arteka Companies, LLC for streetscape
improvements at 6401 and 6444 Penn Avenue.
HRA Meeting -3-
Motion carried 5-0.
Item #8 HRA DISCUSSION ITEMS
March 21. 2011
Commission Member Goettel suggested having a worksession to discuss goals on the types
of housing the HRA is looking for and the locations of different types of housing.
Item #9 EXECUTIVE DIRECTOR REPORT
• May 16 Regular HRA Meeting
Executive Director Devich suggested canceling the May HRA meeting due to the move into
the new Municipal Center.
M/Sandahl, S/Goettel to cancel the Regular HRA Meeting of May 16, 2011.
Motion carried 5-0.
Item #10 CLAIMS AND PAYROLL
M/Quam, S/Rubenstein that the following claims and payrolls be approved:
U.S BANK 03/21/2011
Section 8 Checks: 120214-120337 $ 160,014.40
HRA Checks: 31151-31174 $ 37,583.49
TOTAL $ 197,597.89
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:15 p.m.
Date Approved: April 18, 2011
Nancy Gibbs
City Clerk
Suzanne M. Sandahl_
Chair
Steve Devich
Executive Director
AGENDA ITEM#: 3
REPORT #: 15
STAFF REPORT
HOUSING AND REDEVELOPMENT
REPORT PREPARED BY:
REPORT PRESENTER:
DEPARTMENT DIRECTOR R
REVIEWED BY EXECUTIVE
AUTHORITY MEETING
AUGUST 16, 2010
JULIE URBAN, HOUSING SPECIALIST
NAME, T77LE
KAREN BARTON, ASSISTANT COMMUNITY
ITEM FOR HRA CONSIDERATION:
Consideration of a contract with S.R. Stevens Excavating, Inc. for demolition at 7537 Dupont
Avenue, 7220 Russell Avenue, 6345 Bloomington Avenue, 6616 2nd Avenue and authorize
staff to contract for any uncovered abatement costs.
I. RECOMMENDED ACTION:
By Motion:
1) Approve the attached Contract for Demolition with S.R. Stevens
Excavating for demolition at 7537 Dupont Avenue, 7220 Russell
Avenue, 6345 Bloomington Avenue, 6616 2nd Avenue; and
2) Authorize staff to contract for anv uncovered abatement costs.
II. BACKGROUND
In 2010 the Housing and Redevelopment Authority (HRA) acquired properties at
7537 Dupont Avenue, 7220 Russell Avenue, 6345 Bloomington Avenue, and 6616
2nd Avenue. The HRA plans to demolish the existing substandard structures and
make the lots at 7537 Dupont Avenue, 7720 Russell Avenue and 6616 2nd Avenue
available for new home construction through the Richfield Rediscovered Program
and develop a new affordable home on the lot at 6616 2nd Avenue through the New
Home program.
04182011 Demo RR and New home houses.doc
HRA staff solicited bids for demolition of the houses and garages from seven
companies: S.R. Stevens Excavating, Inc.; Frattalone Companies; VEIT &
Company; Semple Excavating & Trucking, Inc.; Demo, Dig & Haul, Inc.;
Doboszenski & Sons; and K.A. Kamish Excavation, Inc. Four companies
responded to the request, submitting the following estimates:
• S.R. Stevens Excavating, Inc. $29,600
• K.A. Kamish Excavation, Inc. $35,670
• Frattalone Companies $37,978
• Semple Excavating & Trucking, Inc. $42,890
Staff recommends that the HRA approve a contract with S.R. Stevens Excavating,
Inca (S.R. Stevens) for the demolition work to be completed by June 30, 2011.
As part of the contract, S.R. Stevens will survey properties for asbestos and other
hazardous materials; the cost for removal is not covered by the contract but will be
subcontracted for as necessary. The contract also requires the contractor to grade
and seed each property.
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA has demonstrated success through its Richfield
Rediscovered and New Home Programs in removing obsolete housing
in poor condition and developing new housing that meets the needs of
today's households.
• Historically, the HRA has demolished existing homes prior to selling the
properties.
B. CRITICAL TIMING ISSUES
• The houses are currently vacant. To reduce potential risks, holding
costs, and negative impacts to the surrounding neighborhood, the
houses should be demolished as soon as possible.
• If the contract is approved, demolition will be completed by June 30,
2011.
C. FINANCIAL
• S.R. Stevens submitted the lowest bid at $29,600.
• Any abatement costs will be considered above and beyond the
demolition costs.
• There are funds available for the demolition and any necessary
abatement in the 2011 budget.
D. LEGAL
• Legal counsel drafted the Contract for Demolition.
IV. ALTERNATIVE RECOMMENDATION(S)
• Do not approve the Contract for Demolition.
• Award contract to another bidder.
V. ATTACHMENTS
• Contract for Demolition.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
3-1
CONTRACT FOR DEMOLITION OF
7537 DUPONT AVENUE SOUTH
7220 RUSSELL AVENUE SOUTH
66162 ND AVENUE SOUTH
6345 BLOOMINGTON AVENUE SOUTH
THIS CONTRACT is made and entered into this day of , 2011, by and
between S.R. Stevens Excavating, Inc. (the "Contractor") and the Housing and
Redevelopment Authority in and for the City of Richfield, State of Minnesota (the "HRA")
(collectively, the "Parties"), for the demolition of buildings and abatement of hazardous
substances and materials of the property located at 7537 Dupont Avenue South, 7220 Russell
Avenue South, 6616 2nd Avenue South, and 6345 Bloomington Avenue South, Richfield, MN
55423.
RECITALS
WHEREAS, the HRA requires the demolition of buildings at 7537 Dupont Avenue
South, 7220 Russell Avenue South, 6616 2nd Avenue South, and 6345 Bloomington Avenue
South, Richfield, MN 55423 including among other items, the testing for hazardous substances
and materials (the "Work").
WHEREAS, the HRA has awarded the Work to the Contractor;
WHEREAS, the Contractor represents that it has the necessary personnel, experience,
competence, and legal right to perform the Work;
NOW, THEREFORE, in consideration of the mutual obligations of the Parties hereto,
each of them does hereby covenant and agree as follows:
Section 1. Definitions
"Asbestos" means any material containing more than one percent asbestos, which is friable,
releasing asbestos fibers into the air, above current levels established by the United States
Occupational Safety and Health Administration.
"Contract" or "Agreement" means this agreement between the HRA and Contractor for the
performance of the Work, together with all exhibits, amendments, or modifications to the
Contract.
"Destructive Report" means a hazardous materials abatement inventory prepared to assist in
establishing the scope of the Work.
"Final Completion" means all items of the Work, "punch list items" and site work are completed
and Contractor is eligible for Final Payment.
314396v2 MTN RC125-1
1
3 -a
"Hazardous Materials" means asbestos, PCBs, petroleum hazardous waste, radioactive material,
or any other hazardous materials or hazardous wastes within the meaning of City, State of
Minnesota, or Federal definitions of hazardous materials or hazardous waste.
"Owner" means the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota.
"Property" means 7537 Dupont Avenue South, 7220 Russell Avenue South, 6616 2nd Avenue
South, and 6345 Bloomington Avenue South, Richfield, MN 55423.
"Substantial Completion" means the time at which the HRA determines that the Work has
progressed to a point where it is sufficiently complete, leaving only minor "punch list" and close
out items and other minor site work required to be completed for full payment of the contract
price.
"Work" means the entire completed demolition, testing for hazardous materials, and all other
activities to be performed by Contractor on the Property as provided for in the Contract.
Section 2. General Requirements
2.1. Rights of the HRA. The HRA and the City reserve the right to reject any or all
proposals or parts of proposals, to accept part or all of proposals on the basis of
considerations other than lowest cost, and to create a project of lesser or greater expense
and reimbursement than described in this Contract. The HRA also reserves the right to
cancel the Contract without penalty, if circumstances arise which prevent the HRA from
completing the project. In the event of any conflict between the General Conditions and
this Contract, this Contract shall control.
2.2. Interest of Members of City or HRA. The Contractor agrees that no member of
the governing body, officer, employee, or agent of the City or the HRA shall have any
interest, financial or otherwise, direct or indirect, in the Contract.
2.3. Equal Opportunity Statement. Contractor agrees to comply with the provisions of
all applicable federal, state, and City of Richfield statutes, ordinances, and regulations
pertaining to civil rights and nondiscrimination including without limitation Minnesota
Statutes, Section 181.59 as amended, incorporated herein by reference.
2.4. Transfer of Interest. The Contractor shall not assign any interest in the Contract,
and shall not transfer any interest in the same either by assignment or novation, without
the prior written approval of the HRA, provided, however, that claims for money due or
to income due to the Contractor may be assigned to a bank, trust company, or other
financial institution, or to a Trustee in Bankruptcy without such approval. Notice of any
such assignment or transfer shall be furnished to the HRA. Notwithstanding the
foregoing, Contractor shall be entitled to use subcontractors to perform the Work.
314396v2 MTN RC125-1 2
3 -3
2.5. Independent Contractor. Nothing contained in this agreement is intended to, or
shall be construed in any manner, as creating or establishing the relationship of
employer/employee between the parties. The Contractor shall at all times remain an
independent contractor with respect to the services to be performed under this agreement.
The HRA shall be exempt from payment of all Unemployment Compensation, FICA,
retirement, life and/or medical insurance and Workers Compensation Insurance as the
Contractor is an independent contractor.
2.6. Hold Harmless. The Contractor agrees to defend, indemnify and hold harmless
the HRA and the City, its officers and employees, from any liabilities, claims, damages,
costs, judgments, and expenses, including attorney's fees, resulting directly or indirectly
from an act or omission of the contractor, its employees, its agents, or employees of
subcontractors, in the performance of the services provided by this contract or by reason
of the failure of the contractor to fully perform, in any respect, all of its obligations under
this Contract.
2.7. Accounting Standards. The Contractor agrees to maintain the necessary source
documentation and enforce sufficient internal controls as dictated by normally accepted
accounting practices to properly account for expenses incurred under this contract.
2.8. Retention of Records. The Contractor shall retain all records pertinent to
expenditures incurred under this Contract for a period of three years after the resolution
of all audit findings. Records for non -expendable property acquired with funds under this
contract shall be retained for three years after final disposition of such property.
2.9. Disclosure. The Contractor agrees to comply with the Minnesota Government
Data Practices Act, Minnesota Statutes, Chapter 13, and all other applicable state and
federal laws relating to data privacy or confidentiality, as those laws may be amended.
The Contractor shall immediately report to the HRA any requests from third parties for
information relating to this agreement. All data created, collected, received, stored, used,
maintained, or disseminated by the Contractor in performing its obligations is subject to
the requirements of the Act, and the Contractor must comply with those requirements as
if it were a government entity. The HRA agrees to promptly respond to inquiries from
the Contractor concerning data requests. The Contractor agrees to hold the City and the
HRA, its officers, department heads and employees harmless from any claims resulting
from the Contractor's failure to disclose data maintained by the Contractor and
authorized for release by the HRA, and from Contractor's unlawful disclosure or use of
data protected under state and federal laws.
Section 3. Contract Price
3.1. Upon compliance with all the requirements of this Contract, Contractor shall be
paid the Contract Price of $29,600, pursuant to Section 28 of this Contract. Any cost to
remove asbestos and other hazardous materials as identified in the Destructive Materials
Report and as authorized by the HRA will be paid separately from the Contract Price.
314396v2 MTN RC125-1 3
S-4
Section 4. Project Schedule
4.1. Contractor shall commence the Work on or after contract execution and
Substantial Completion of the Work shall be achieved no later than June 30, 2011.
Section 5. Local Permit Requirements and Related Submittals
5.1. Contractor shall obtain permits required by the City of Richfield, including a
plumbing permit (for water & sanitary sewer disconnects) and a demolition permit.
Questions about these permits, permit fees, and the scheduling process for the required
inspections should be directed to the Building Inspections Department at Richfield City
Hall (612-861-9816). Contractor has not been provided a copy of an abatement
hazardous materials inventory ("Destructive Report"). As part of the Work, the
Contractor will arrange for a Destructive Report to be prepared on the properties.
5.2. No less than 2 days prior to beginning the Work, the Contractor shall provide:
- Description of proposed dust and noise control measures for the Property.
5.3. Upon completion of the Work, Contractor shall provide:
- Copies of any permits required by government agencies other than the City
of Richfield, such as transport or disposal permits.
- Copies of any test results required by government agencies other than the
City of Richfield, including but not limited to testing required as part of the
asbestos abatement process.
- Copies of all landfill records indicating receipt and acceptance of hazardous
wastes by a landfill licensed to accept hazardous wastes.
Section 6. Job Conditions - General
6.1. Contractor will disconnect and abandon utilities serving the Property, including
water, sanitary sewer, electricity, gas and telecommunications; or arrange for
disconnection and abandonment of same. Contractor shall not begin work before field -
verifying that disconnection and abandonment has been completed.
6.2. Owner shall ensure that the buildings will be vacated and use of the property will
be discontinued prior to start of work.
6.3. Owner assumes no responsibility for actual condition of structures to be
demolished. Conditions existing at time of inspection for bidding purposes will be
maintained by Owner to the extent practicable. Contractor may salvage any and all
materials and equipment from the Property. Variations within structures may occur due
to removal and salvage operations prior to the start of demolition work.
314396v2 MTN RC125-1 4
6.4. This is a lump sum contract. Contractor must immediately contact Owner prior to
exceeding the Contract Price set out in Section 3.1. Change orders for additional
payment will not be granted due to the Contractor underestimating quantities of
material(s).
6.5. Contractor shall provide all labor, materials, equipment, employee training,
compliance with all regulations, permits, notifications, licenses and agreement necessary
to perform the work described in this Contract.
6.6. All materials from undertaking the Work shall become the property and
responsibility of the Contractor.
6.7. Contractor may choose to salvage materials and equipment. Any salvaged items
must be removed from the Property in a timely manner as they are salvaged. On site
storage or sale of salvaged items is prohibited.
6.8. The use of explosives and on site burning by the Contractor are prohibited.
6.9. Contractor shall provide water, electricity, communications and toilet facilities on
site as necessary to complete the work.
6.10. Contractor shall provide and maintain uninterrupted vehicular access to the
Property, including temporary demolition facilities, storage and work areas, for not only
persons and equipment involved in the project but also emergency vehicles.
6.11. Contractor shall keep fire hydrants and water control valves free from obstruction
and accessible for use.
6.12. Contractor shall take all necessary safeguards to prevent damage or injury to
neighboring property.
6.13. Prior to closing or rerouting existing traffic lanes or sidewalks in any public street
easement or right-of-way adjacent to streets, the Contractor shall obtain written
permission from the City Engineer. Expenses related to lane closures, including but not
limited to traffic barriers, signs and similar equipment as well as traffic control personnel,
shall be the responsibility of the Contractor.
Section 7. Asbestos Abatement
7.1 Contractor shall remove and properly dispose of all friable and category 2 non -
friable asbestos containing materials and complete asbestos abatement on the Property in
accordance with Minnesota Pollution Control Agency regulations and the Destructive
Report identified in Section 5.1 of this Contract.
314396v2 MTN RC125-1 5
S-6
7.2. Contractor shall decontaminate and encapsulate the work area prior to final
clearance and air monitoring.
7.3. Contractor shall provide final cleanup and removal of all remaining temporary
barriers, equipment and supplies.
7.4. Contractor shall provide all monitoring and analysis of air samples as required by
state and federal regulations.
7.5. Contractor shall complete final clearance and air monitoring as required by state
and federal regulations.
Section 8. Other Hazardous Materials Abatement
Pursuant to Minnesota Pollution Control Agency regulations (and the Destructive Report),
Contractor shall remove and properly dispose of the following materials and items from the
Property:
8.1. Mercury:
a. Batteries: Smoke detectors, emergency lighting, exit signs, security
systems and alarms.
b. Lighting: Fluorescent lights and bulbs; high intensity discharge lights
(metal halide, high pressure sodium, mercury vapor and neon); switches
and controls for lighting.
C. Heating, Ventilating and Air Conditioning Systems: controls, devices,
thermostats, aquastats, pressurestats, firestats, manometers, thermometers.
d. Boilers, Furnaces, Heaters and Tanks: Mercury flame sensors by pilot
lights; manometers, thermometers, gauges, pressure-trol, float and level
controls, space heater and unit ventilator controls.
e. Electrical systems: Load meters and supply relays, phase splitters,
microwave relays and mercury displacement relays.
f. Miscellaneous: All vacuum, pressure, fluid level, temperature and flow
rate control boxes and panels.
g. Any electrical wiring from fixtures or equipment being removed for
abatement shall be capped.
8.2. Poly -Chlorinated Biphenyls (PCBs): Transformers, transistors, capacitors, heat
transfer equipment, light ballasts.
314396v2 MTN RC125-1 6
3-�
8.3. Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs): Fire
extinguishers, air conditioners, walk-in coolers and freezers, water fountains and
dehumidifiers, refrigerators/freezers/chillers, and heat pumps.
8.4. Miscellaneous:
a. Hazardous waste including general-purpose cleaners, paints and thinners.
b. Oils including used oil and hydraulic oil in door closers.
C. Water heaters.
d. Space heaters.
e. Air compressors and controls.
f. Building unit ventilators.
g. Radiators.
h. Fuse boxes and electrical panels.
i. Roof top exhaust vents with motors.
j. Boiler chemicals.
k. Heating fuel tank, including contents, if any.
Section 9. Demolition
9.1 Owner has not conducted any testing to determine the extent of lead based paint.
Contractor shall conduct demolition in compliance with any state or federal regulations
governing demolition of structures containing lead based paint.
9.2. Contractor shall use water sprinkling, temporary enclosures and other suitable
methods to limit dust and dirt rising and scattering in air. Contractor shall comply with
any and all governing regulations pertaining to environmental protection. Contractor
shall not use water when it may create hazardous or objectionable conditions such as
flooding or pollution.
9.3. Contractor shall clean adjacent structures and improvements of dust, dirt and
debris caused by demolition operations and return adjacent areas to condition existing
prior to start of work.
9.4. Contractor shall demolish buildings, other structures, improvements, and
landscaping completely and remove all debris from the Property. Contractor may use
such methods as required to complete the work subject to the limitations of governing
regulations.
9.5. Contractor shall proceed with demolition in a systematic manner, from top of
structures to ground, and will complete demolition work above each floor or tier before
disturbing supports on lower levels.
9.6. Contractor shall locate demolition equipment throughout the building and remove
materials so as to not impose excessive loads to supporting walls, floor or framing.
314396v2 MTN RC125-1 7
9.7. Contractor shall provide and maintain interior and exterior shoring, bracing or
other structural support to preserve structural stability and prevent movement, settlement
or collapse of the building.
9.8. Contractor shall break up any concrete slabs -on -grade and remove from the
Property.
9.9. Contractor shall demolish footings, foundation walls, tunnels and other below -
grade structures and remove from the Property.
9.10 Contractor shall provide certificate of well abandonment if required.
Section 10. Debris Control
10.1. Contractor shall maintain the Property free of extraneous debris.
10.2. Contractor shall prohibit overloading of trucks to prevent spillage on access and
haul routes.
10.3. Contractor shall maintain a sweeping and clean-up program to prevent deposition,
release and disbursal of soils and debris onto paved surfaces.
Section 11. Disposal
11.1. Contractor shall move from the Property all debris, rubbish and other materials
resulting from demolition operations.
11.2. Contractor shall transport materials from the Property and legally dispose of them
off-site in accordance with governing regulations.
Section 12. Earthwork
12.1. Contractor shall rough grade the Property using clean fill after completing all
abatement and demolition activities; taper edges of all excavated areas to
minimize slope of 2 to 1, keeping soil disturbance to a minimum.
Section 13. Excusable Delays
13.1. The following circumstances, and only these circumstances, will, at the HRA's
discretion, be considered legitimate cause for a change in the commencement and/or
completion dates specified in Section 4 of this Agreement:
a. Material delay -- material delays that are beyond the control of the
Contractor, which can be shown to have directly caused the overall late
completion.
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b. Adverse weather and emergency conditions -- weather or emergency
conditions that directly affect the scheduling of exterior work over a
significant portion of the term of this Agreement.
C. Strikes -- Contractors who face union work stoppage in the case where
they have to rely on such a work force in order to complete the Work.
d. Amendments -- amendments in the original scope of work, which can be
reasonably shown to require an extension of the time allowed for
completion.
e. Other delays — act or neglect of the Owner, or of an employee of either, or
of a separate contractor employed by the Owner, or by changes ordered in
the Work or by unavoidable casualties or other causes beyond the
Contractor's control.
Section 14. Change Order
14.1. The HRA shall have the right, within the general scope of the Work and without
notice to any surety or sureties of the Contractor, if any, to make changes in the Work,
either by altering the nature of the same or by adding to or deducting from it. All changes
shall, except in the case of emergencies endangering the safety of persons or property, be
made by written Change Order. The parties shall determine the effect of any Change
Order on the Contract Price and project schedule by mutual agreement. The Contractor
shall promptly comply with any and all written Change Orders. No such Change Order
shall be deemed to invalidate the remaining terms and conditions contained in the
Contract.
Section 15. Waiver of Liability
15.1 It is agreed that the Work is undertaken at the sole risk of the Contractor. The
Contractor does expressly forever release the HRA and the City of Richfield from any
claims, demands, injuries, damage actions, or causes of action whatsoever, arising out of
or connected with the Work.
Section 16. Indemnification
16.1. Any and all claims that arise or may arise as a consequence of any act or omission
on the part of the Contractor, its agents, servants, or employees while engaged in the
performance of the Work shall in no way be the obligation or responsibility of the HRA
or the City of Richfield. The Contractor shall indemnify, hold harmless, and defend the
HRA and the City of Richfield, its commissioners, council members, officers, employees,
successors, and assigns against any and all liability, loss, cost, damages, expenses, claims,
or actions, including attorney's fees which the HRA and the City of Richfield, its
commissioners, council members, officers, or employees may hereinafter incur or be
required to pay on account of injury to or death of any person or persons or damage to
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any property arising out of or by reason of any act or omission of the Contractor, its
agents, servants, or employees in the execution, performance, or failure to adequately
perform its obligations under this Agreement, whatever the cause of such injuries or
damage.
Section 17. Insurance
17.1. The Contractor agrees that in order to protect itself, the HRA, and the City of
Richfield under the indemnity provisions set forth in Section 16 of this Agreement, it will
at all times during the term of this Agreement, maintain, at a minimum, the following
insurance policies:
a. Workers Compensation Insurance. The Contractor shall maintain worker's
compensation insurance in compliance with all applicable statutes
including Chapter 176 of the Minnesota Statutes. Such policy shall
include Employer's Liability Coverage and at least such amount(s) as are
customarily provided in worker's compensation policies issued in
Minnesota. Contractor further agrees to require all subcontractors and
independent contractors to maintain worker's compensation insurance in
compliance with all applicable statutes and to monitor the compliance of
such subcontractors and independent contractors with the applicable
statutes.
b. Commercial General Liability Insurance. The Contractor shall maintain
Occurrence Based Commercial General Liability Insurance ("CGL"),
providing coverage on an "occurrence", rather than on a "claims made"
basis, which policy shall include coverage for the Completed Operations
Hazard, and which shall also include a Broad Form General Liability
Endorsement, ISO number GL 0404, or an equivalent form (or forms), so
long as such an equivalent form (or forms) affords coverage which is in all
material respects at least as broad. Any equivalent form (or forms) of
coverage shall be approved by the HRA.
The Contractor agrees to maintain total liability policy limits of at least
One Million Dollars ($1,000,000), applying to liability for Bodily Injury,
Personal Injury, and Property Damage, which total limits may be satisfied
by the limits afforded under its Occurrence Based CGL policy as specified
above, or by such policy in combination with the limits afforded by an
Umbrella Liability Policy (or policies) provided, however, that the
coverage afforded under any such Umbrella Liability Policy shall be at
least as broad as that afforded by the underlying occurrence based CGL
Policy as specified above.
C. Automobile Liability Insurance. The Contractor shall maintain automobile
liability insurance covering liability for Bodily Injury and Property
Damage arising out of the ownership, use, maintenance, or operation of all
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owned, non -owned, and hired automobiles and other motor vehicles. Such
policy shall provide total liability limits for combined Bodily Injury and/or
Property Damage in the amount of at least One Million Dollars
($1,000,000) per accident, which total limits may be satisfied by the limits
afforded under such policy, or by such policy in combination with the
limits afforded by an Umbrella Liability Policy (or policies) provided,
however, that the coverage afforded under any such Umbrella Liability
Policy shall be at least as broad as that afforded by the underlying
automobile liability insurance policy.
The HRA and the City of Richfield shall be named as "additional insured" parties with
respect to the insurance policies specified in (b) and (c) above. The Contractor shall not
commence work until a Certificate of Insurance evidencing all of the insurance policies
required above is approved and a written Notice to Proceed is issued by an authorized
representative of the HRA. The HRA shall, at any time during the term of this
agreement, have the right to require that the Contractor secure any additional insurance,
or additional feature to existing insurance, as the HRA may reasonably require for the
protection of its interests or those of the public. It is expressly understood that the HRA
does not in any way represent that the minimum insurance coverage set forth in this
paragraph is sufficient or adequate to protect the interest or liabilities of the Contractor.
Section 18. Bond
18.1. No payment or performance bonds for the Work shall be required pursuant to
Minn. Stat. § 574.26.
Section 19. Lien Waiver
19.1. Neither the Contractor nor any subcontractor or other person or entity furnishing
labor, equipment, or materials in connection with the Work shall file any mechanic's lien
against the HRA's buildings, structures or land or any part thereof, provided that the HRA
makes all payments due to Contractor under this Contract. The Contractor shall protect,
defend, indemnify, and hold harmless the HRA and the City of Richfield from any and all
claims, demands, or actions of whatever nature arising out of work, labor, equipment, or
materials furnished by the Contractor or its subcontractors in connection with the Work,
provided that the HRA makes all payments due to Contractor under this Contract.
Payment of the Contract Price shall not be due until the Contractor has delivered to the
HRA lien waivers acceptable to the HRA, which release the HRA from all liens that may
arise in connection with the Work. The Contractor shall list on the attached Exhibit A the
names of all suppliers and/or subcontractors that will provide materials, services, or labor
in connection with the Work. The Contractor will notify the HRA of any changes in this
list prior to the commencement of the Work.
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Section 20. Subcontractors
20.1. Contractor agrees to bind every subcontractor by the terms, conditions, and
provisions set forth in the Contract that are applicable to the subcontractor's work,
unless otherwise specifically agreed otherwise in writing by the HRA.
20.2. Contractor agrees to pay every subcontractor within 10 days of receipt of payment
from the HRA pursuant to Minn. Stat. § 471.425.
Section 21. Assignment
21.1. This Contract shall be binding upon the Contractor, its legal representatives, heirs,
successors, and assigns. No assignment or attempted assignment of this Contract or any
rights hereunder shall be effective unless the written consent of the HRA is first obtained.
No such assignment, even if consented to by the HRA, shall relieve the Contractor from
liability under this Contract for the performance and completion of the Work in
accordance with the Contract. Notwithstanding the foregoing, Contractor shall be
entitled to use subcontractors to perform the Work.
Section 22. Entire Agreement
22.1. The Contract contains all the terms, conditions, and provisions pertaining to the
Work to be completed by the Contractor, there being no other understandings,
agreements, or warranties, express or implied. All prior negotiations and dealings
regarding the subject matter of the Agreement are superseded by and merged into the
Contract.
Section 23. Applicable Law
23.1. This Contract shall be construed in accordance with and governed by the laws of
the state of Minnesota.
Section 24. Amendment
24.1. This Contract may be modified or amended only with the written approval of the
HRA and the Contractor.
Section 25. Construction
25.1. In the event that any one or more of the provisions of this Contract, or any
application thereof, shall be found to be invalid, illegal, or otherwise unenforceable, the
validity, legality, and enforceability of the remaining provisions or any application
thereof shall not in any way be affected or impaired thereby.
Section 26. Authority
314396v2 MTN RC125-1 12
26.1. Each of the undersigned parties warrants that it has the full authority to execute
this Contract, and each individual signing this Contract on behalf of a corporation hereby
warrants that he or she has full authority to sign on behalf of the corporation and that he
or she represents and binds such corporation thereby.
Section 27. Waiver
27.1. No failure by the HRA to insist upon the strict performance of any covenant, duty,
agreement, or condition contained in this Agreement or to exercise any right or remedy
consequent upon a breach thereof shall constitute a waiver of any such breach or any
other covenant, agreement, term, or condition, nor does it imply that such covenant,
agreement, term, or condition may be waived again.
Section 28. Payments to Contractor and Completion
28.1. The Contractor shall be paid upon completion of the Work in accordance with the
payment schedule of the HRA, if any, and this section.
28.2. Application for Payment. Prior to receiving payment for Substantial Completion
of the Work, the Contractor shall in writing state that the respective portion of the
Work has been substantially completed and is free and clear of all liens as
provided in this Contract. Upon Substantial Completion and inspection and
verification by the HRA, the payment for that portion of the Work shall be made.
Final payment shall be made when Contractor certifies that Final Completion has
been achieved and verified by the HRA.
IN WITNESS WHEREOF, the parties have caused this Contract to be duly executed in
their names and behalves and on or as of the date and year first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By
Suzanne M.Sandahl
Its Chair
By
Steven L. Devich
Its Executive Director
314396v2 MTN RC125-1 13
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CONTRACTOR
By
Its
By
Its
THIS INSTRUMENT DRAFTED BY:
Housing & Redevelopment Authority
City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
612-861-9760
314396-v I .DOC
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EXHIBIT A
LIST OF SUPPLIERS AND SUBCONTRACTORS
314396v2 MTN RC125-1
A-1