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HomeMy WebLinkAbout1988-06-06 HRA Regular Meeting MINUTES EDINA HOUSING AND REDEVELOPMENT AUTHORITY JUNE 6, 1988 Answering rollcall were Commissioners Kelly, Richards, Smith and Turner. The meeting was chaired by Commissioner Richards. MINUTES of the HRA Meeting of May 16, 1988 were approved as submitted by motion of Commissioner Smith, seconded by Commissioner Turner. Ayes: Kelly, Richards, Smith, Turner, Courtney Motion carried. BID AWARDED FOR PARKING FACILITY ADDITION (51ST STREET RAMP) . Executive Director Gordon Hughes advised that on May 13, 1988 bids were opened for the 51st Street Ramp Expansion and Upgrade project which was authorized in connection with the Edina Theatre expansion. The bid was structured with a number of add or deduct alternate bids in order to provide flexibility in awarding the various elements of the project, most notably the possible addition of brick to upgrade the appearance of the facility as well as the addition of an enclosed stairtower in the northeast corner of the ramp. Staff decided that it was likewise advisable to receive bids for certain repair work and upgrading within the existing ramp, given the age of the facility and the presumption that the best prices would be received in connection with the expansion project. Costs for this repair and upgrading were not estimated at the time of the project hearing. The cost of this repair and upgrading is included in the basic construction bid as follows: Project Hrg Estimate Bid Add One Level (including repairs and upgrades to existing ramp) $620,000 $ 781,519 Stairtower (alternate bid) 20,000 40,000 Brick Upgrade (alternate bid) 78,000 227,000 Contingency 42.000 -0- TOTAL $760,000 $1,048,519 Director Hughes said that in analyzing the bids the estimated cost of adding the one level of the ramp was very close to the estimated price of $620,000, the difference represents the consultant's estimate of the cost of doing the repairs and upgrades. The major overrun is in two areas: 1) the addition of an enclosed stairtower in the northeasterly corner of the ramp, and 2) the brick upgrade. Based upon review of the bids, staff believes that the HRA has the following options. He noted that Sheehy Construction is the low-bidder regardless of which option is selected. Option 1: Award the entire project including the brick addition stairtower and repair and upgrade work 1 048 519 P Pg $ , Option 2: Award the ramp expansion and repair and upgrade work but delete the brick addition and the stairtower. Due to the complexity of this bidding process, staff believes that if the brick is deleted, the stairtower also must be deleted. If this option is selected, the stairtower should be rebid or negotiated as a change order later. $ 781,519 The basic decision for the HRA is the desirability of enhancing the ramp's appearance with brick. If brick is deleted, the existing ramp and expansion would be patched and repainted. Based upon staff's review of the bids and discussion with contractors, it is not felt that the brick upgrade could be accomplished later at a lesser cost. In that the brick upgrade was discussed at the project hearing, Director Hughes said that the residents of The Lanterns Condominiums and the 50th and France Business Association has been invited to attend this meeting. A letter has been received from Dr. James Layer, owner of the 3939 W. 50th Street building who recommended that the brick not be added. It is apparent from the letter that it is his understanding that this will be assessed against commercial property owners. The proposal was to assess a portion of the cost to the Edina Theatre project and the rest would be paid through tax increment financing. H.R.A. Minutes June 6, 1988 Page 2 Director Hughes presented graphics showing the excess increments that the 50th and France District is now generating and is projected to generate in the future. The projections show that the addition of the brick is affordable but it is an additional expenditure over the estimate. Mayor Pro-Tem Richards asked if the assessment to the theatre would go up proportionately. Director Hughes explained that it was not proposed that the theatre should pay a share of the repair work and upgrading of the existing facility. The assessment to the theatre is estimated at $240,000 and the impact on the tax increment district will be greater. Gene Haugland, property owner at 50th and France, asked about the timing for the brick upgrade and why it would be wiser to delete the stairtower at this time and re-bid or negotiate as a change order later. Engineer Hoffman said that the total project, including the brick upgrade, will be done by late September. Between the theatre construction and the ramp upgrade, the stairtower will be the last thing to be finished, probably late October. Regarding the stairtower, it was obvious that the bidder did not understand the specifications. Director Hughes said when you delete the brick from the stairtower there are no walls left; by deleting the brick the low bidder in essence deleted the stairtower also. The only option is to go with the next low bidder or re-bid the project. Walter Sandison, 4612 58th Street, asked if the brick upgrade was worth the cost. William Korst, Korst Jewelers, said the ramp was over-due for a face lift, should be upgraded and that the stairtower was needed. Mr. Haugland asked about the effect on the tax increment district and alternative amenities. Engineer Hoffman said the decision for the HRA was what investment they wanted to make in the structure itself and how important it is to the 50th and France commercial district. Director Hughes said that it would add a desirable element and that he would recommend the brick upgrade. Commissioner Smith commented that he could not support the expenditure for the brick upgrade. Commissioner Turner said she would favor Option 2 and that the stairtower was important and should be negotiated. Following some discussion regarding the stairtower as to re-bidding or negotiating as a change order, Commissioner Turner moved approval of Option 2 as outlined with the stairtower to be negotiated to recommended low bidder, Sheehy Construction, at $781,519. Motion was seconded by Commissioner Smith. Mayor Pro-Tem Richards said he would support Option 1 and that it was important to to continue to enhance the retail area at 50th and France. Engineer Hoffman pointed out that there is a push to next year renovating the the and sidewalks at 50th and France and that maybe something could be done architecturally to improve the ramp appearance as part of that package without doing all brick upgrade. Following further discussion, Mayor Pro-Tem called for vote on the motion. Rollcall: Ayes: Kelly, Smith, Turner Nays: Richards Motion carried. PURCHASE OF PUBLIC OFFICIAL LIABILITY INSURANCE FOR HRA APPROVED. Ceil Smith, Assistant to Manager, recalled that at the last meeting the Council considered a proposal for purchase of public official liability insurance for the HRA and the commissioners had asked for further information as to the need for this type of coverage. She referred to a letter from David Crowther dated May 18, 1988 in which he explained that the public official coverage for the City contains a specific exclusion in the definition of the insured for actions of boards and commissions including housing authorities and therefore the HRA must secure its own public official coverage. National Casualty Company has provided two quotations for this coverage and staff would recommend Option A which would provide $1,000,000 in coverage for each occurrence with $5,000 deductible for each claim. Commissioner Smith moved approval of purchase of public official liability insurance for the HRA from National Casualty Company for $1,000,000 coverage with H.R.A. Minutes June 6, 1988 Page 3 $5,000 deductible at a premium of $4,575.00. Motion was seconded by Commissioner Turner. Ayes: Kelly, Smith, Turner, Richards Motion carried. RESOLUTION ADOPTED APPROVING ACTIVITIES OF HRA DIRECTOR EMPLOYEES OFFICERS AND AGENTS IN CONSULTING/ADVISING EAST EDINA HOUSING FOUNDATION. In reference to indemnity of HRA officials by the HRA and as recommended by Attorney Erickson, Commissioner Turner moved adoption of the following resolution: RESOLUTION APPROVING THE ACTIVITIES OF THE DIRECTOR, EXECUTIVE DIRECTOR AND EMPLOYEES, OFFICERS AND AGENTS OF THE HRA IN CONSULTING WITH AND ADVISING THE EAST EDINA HOUSING FOUNDATION AND RECOGNIZING THAT SUCH CONSULTATION AND ADVICE IS WITHIN THE SCOPE OF THEIR EMPLOYMENT AND OFFICIAL DUTIES BE IT RESOLVED, by the Housing and Redevelopment Authority of Edina, Minnesota (the "HRA"), as follows.. WHEREAS, the HRA has entered into a Land Sale Agreement and Contract for Private Redevelopment, dated August 1, 1985, with East Edina Housing Foundation, a Minnesota nonprofit corporation, for the development of property in the City of Edina described in the Agreement and known as Edinborough, and has entered into a Land Sale Agreement and Contract for Private Redevelopment with East Edina Housing Foundation, dated on or as of March 14, 1988, for the development of property in the City of Edina known as the Hedberg Project; and WHEREAS, the Director and Executive Director and other employees, officers and agents of the HRA, in connection with those Agreements, have been working with, advising, and consulting with the Foundation relative to those projects and relative to the low and moderate income housing that was developed in Edinborough and is proposed to be developed in the Hedberg Project, and in connection with the second mortgages which the Foundation has obtained in the Edinborough project and are proposed to be obtained in the Hedberg project; and WHEREAS, the activities, including consultation and advice, of the Director and Executive Director and other employees, officers and agents of the HRA, have been necessary for the success of the Edinborough project and are and will be necessary for the success of the Hedberg Project, and to achieve the goals of the HRA in developing those two projects. IT IS, THEREFORE, recognized and acknowledged by the HRA that all of the activities, including consultation and advice, heretofore done or given or hereafter to be done or given by the Director and Executive Director, or any other officer, employee or agent of the HRA or City, in connection with the Hedberg Project or the Edinborough project, or any other project in which the Foundation may hereafter be involved in the City of Edina, is within the scope of the employment of all such officers, employees and agents and in performance of a part of their official duties, and all such activities of any of such parties heretofore taken or made are hereby ratified and confirmed as within their authority as officer, employees or agents of the HRA and as within the scope of their employment and official duties. Motion for adoption of the resolution was seconded by Commissioner Smith. Rollcall: Ayes: Kelly, Smith, Turner, Richards Resolution adopted. HRA PARTIAL FUNDING OF SUMMIT AVENUE ISLAND REFUSED. Director Hughes referred to a letter directed to the HRA from Robert Hamilton, owner of Interlachen Town Homes, concerning the traffic diversion island for the Summit Avenue/Interlachen Boulevard intersection. He recalled that the construction of this diversion was the responsibility of Westminster Corporation in conjunction with the construction H.R.A. Minutes June 6, 1988 Page 4 of the Summit Point elderly housing project. Westminster is willing to construct a division, however, they apparently are unable financially to construct the upgraded diverter requested by Mr. Hamilton. Bid for the diverter totaled $21,000.00. In that this diversion is proposed to be located on both Westminster's and Hamilton's properties, both owners must agree. The solution as suggested by Mr. Hamilton is that the HRA contribute $9,000 toward the construction of the island. Mr. Hamilton proposes to contribute $8,000 and Westminster proposes to contribute $4,000 which is their budgeted amount for the work. Mr. Hamilton has suggested a more ambitious diverter with added landscaping, signage, etc. and has submitted a plan for that purpose. Because the HRA was involved in the Summit Point elderly housing project, Mr. Hamilton suggested that the HRA should assume some of the cost of constructing the upgraded diverter. In that HRA financial participation in this work has never been discussed, Mr. Hamilton was advised that the HRA would have to authorize this expenditure. If the HRA does not wish to participate, and if Westminster and Mr. Hamilton cannot agree on a private project, then the City will be required to construct a simple but functional diverter within the Interlachen Boulevard right of way. This simplified diverter could be constructed within the $4,000 budget of Westminster. Commissioner Turner asked if a simplified diverter would do the job. Engineer Hoffman said that it would. Commissioner Smith asked how to get the temporary barrier removed and the diverter constructed. Director Hughes said that the HRA has already authorized a diverter to be constructed. Manager Rosland suggested that the HRA refuse to participate in funding the upgraded diverter and so advise the parties involved, giving them a deadline to come to agreement or the City will put in the diverter. Commissioner Smith moved that Robert Hamilton and Westminster be advised that the BRA does not intend to participate in partial funding of the diverter and if the two parties cannot come to agreement within two weeks the City will construct a simple diverter, cost of which shall be the responsibility of Westminster Corporation. Motion was seconded by Commissioner Turner. Ayes: Kelly, Smith, Turner, Richards Motion carried. There being no further business on the HRA Agenda, Commissioner Kelly moved adjournment. Motion was seconded by Commissioner Turner a carried. Executiv ctor