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Home My WebLink About5G - Properties @ 16318 and 16328 Main Ave MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: .CC)lJ~JCil 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT August 4,2008 5G Kelly Meyer, Asst. City Manager CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING FUNDING FOR ASBESTOS ABATEMENT AND ENVIRONMENTAL ASSESSMENT FOR PROPERTIES AT 16318 AND 16328 MAIN AVENUE. Introduction The purpose of this action is to authorize funding for asbestos abatement and an environment assessment (soil and groundwater testing) in preparation for the removal of the buildings at 16318 and 16328 Main Avenue, and the subsequent construction of a parking lot. Historv Over the past six years, the City Council has undertaken a number of initiatives to revitalize the downtown Prior Lake area. Initiatives have included acquisition of property for redevelopment, street reconstruction, streetscape improvements, purchasing amenities such as benches, planters and trash receptacles, installation of the Rotary Gateway rain garden park, fac;ade improvement program, construction of new buildings (City Hall and Police Station), and planning for intersection and roadway improvements related to CSAH 21/Arcadia and Hwy 13/16Oth. The 2030 Vision and Strategic Plan envisions a pedestrian-friendly small town environment in the Downtown. The 2030 Vision and Strategic Plan specifically sets the following Downtown Redevelopment goals (among others): · Encourage redevelopment and construction of multi-use buildings. · Evaluate potential sites for parking structures and surface parking lots. · Construct new parking facilities as part of Downtown redevelopment projects. Current Circumstances In 2002, the City acquired property at 16318 Main Avenue (formerly Joe's Pizza) with the intention of removing the blighted structure as part of a redevelopment effort in the south end of downtown. In June of this year, the City also acquired the neighboring property at 16328 Main Avenue (formerly MN Nails). Ultimately, the combined properties are intended to be available for a future private redevelopment that envisions a parking structure and multi-use building. For the present, the Council has directed that the blighted buildings be removed and the site used as an additional surface parking area. The history of these properties as a former gas station, and a former garage, lead staff to believe that there is a potential for soil contamination on the www.cityofpriorlake.com REPCFF3\2!1Ph8t1~c992'.~1~'!Jt)'Cft)iC!aPascJ95'2.t.<<tV;~m563.: '3 21-d ~ 632;3 r. ':verueDCC combined site. Since razing the buildings and removing the foundations will disturb the soils, the City is required by the MPCA to initiate testing of the site in order to determine what, if any, remediation is necessary. Similar to the process for construction of the City Hall and Police Station, the City will have an environmental assessment completed that includes an historical review of the site, and soil and groundwater sampling and testing for contaminates. Since Braun Intertec is familiar with the Downtown area (having been involved in similar processes for the Library, City Hall, the Police Station, and Premiere Dance), staff would propose to utilize there expertise in this case as well. The quote provided by Braun for this work is $9650. In the same context, the City is also required to test the structures themselves for contaminants. The City had a hazardous building materials inspection completed by Charles Gierke of Environmental Demolition. Mr. Gierke completed similar inspections for the properties acquired for the construction of City Hall. Mr. Gierke's inspection and attached written report found materials containing asbestos in both buildings in the form of spray-on ceiling texture, layers of floor tiles and floor mastic, and roof tar, felt and flashing. Other potentially hazardous materials identified include light ballasts, solar panels, HVAC unit, old appliances, and cleaning chemicals. The MPCA requires abatement of asbestos in accordance with state and federal rules and regulations, and that disposal of the material occur at a landfill permitted to take asbestos. The City received two quotes for this work as follows: Vendor Bid I Dennis Environmental Operations $9,860.00 1 Mavo Enviro and Specialty $15,971.00 ContractinQ Services Conclusion Staff is proposing to use Dennis Environmental Operations for the hazardous materials removal and disposal, and Braun Intertec for the soil testing, in an amount not to exceed $19,510. Since the acquisition of these properties is for parking, funding is proposed from the Transit fund balance. ISSUES: Hazardous Materials Removal. Abatement and disposal of the hazardous materials is required by the MPCA for the removal of the buildings. The Council does have the option to leave the buildings standing and have any future developer assume the costs for disposal. This action would mean that new parking would not be constructed until such time that redevelopment occurs. Soil Testina & Remediation: In the short term, the buildings could be razed leaving the foundations in tact, and thereby postponing the requirement for soil testing and potential remediation. The City would fill the foundation and overlay the areas with Class 5. In this manner, the soil testing and remediation would not be conducted until the site was redeveloped. The developer would then assume the costs and additional time within its construction project. Staff is recommending that the City undertake the full effort to test and provide remediation to the site at this time rather than waiting for redevelopment. The rationale for the recommendation is as follows: M\COUNCIL\.AGENIJ/j, REFCRTS\2GD'.080403 remo'.'81 ard sed 16318 and 16328 Main AvenLie.DCC 1. The foundation will have to be removed at some point and performing testing and any subsequent remediation is inevitable. 2. We do not know when a redevelopment project will occur. Providing a temporary solution to the parking lot construction does not demonstrate the City's commitment to quality redevelopment in Downtown. 3. The ability to provide a site that is free of any hidden costs or additional delay is more valuable and attractive to a potential developer. 4. Cleaning up hazardous materials and any soil conditions is part of our responsibility as public servants, and is directly responsive to our 2030 Vision goals to protect the health and safety of our residents, natural resources, and water quality. 5. Remediation of soil contaminated by oil and gas is eligible for up to 75% reimbursement from the MPCA's PetroFund. The action before the Council asks for authorization to conduct the environmental assessment only. Once we know the extent of contamination, if any, staff would come back to the Council with more specific costs related to remediation. The Council could choose to decide whether or not to proceed with remediation at that time. FINANCIAL IMPACT: There is no General Fund impact of this work. Adequate funding is available in the transit fund balance. ALTERNATIVES: 1. As part of the Consent Agenda, motion and second to adopt a Resolution authorizing expenditures from the transit fund balance to conduct asbestos abatement and hazardous material removal, and to conduct soil testing at property located at 16318 and 16328 Main Avenue in an amount not to exceed $9860.00, and $9650.00, respectively. 2. Remove this Item from the Consent Agenda for further discussion or direction. RECOMMENDED Alternative No. 1 MOTION: ReVie~J t f , Frank BOYles-v+ger M\COU NC i L\oC"C Et'J DP\ ierno\'al 16328 Ma:n p..venueCOC ~o~ PR~ E-. )> U ~ ~"p 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION OS-xxx A RESOLUTION AUTHORIZING EXPENDITURES TO CONDUCT ASBESTOS ABATEMENT AND HAZARDOUS MATERIAL REMOVAL, AND TO CONDUCT AN ENVIRONMENTAL ASSESSMENT AT PROPERTY LOCATED AT 16318 AND 16328 MAIN AVENUE. Motion By: Second By: WHEREAS, the City has acquired property located at 16318 and 16328 Main Avenue for the purposes of redevelopment; and WHEREAS, the structures located on the property are vacant and blighted properties; and WHEREAS, the 2030 Vision and Strategic Plan identifies goals for Downtown redevelopment that include (1) encouraging redevelopment and construction of multi-use buildings, (2) evaluating potential sites for parking structures and surface parking lots; and (3) constructing new parking facilities as part of Downtown redevelopment projects; and WHEREAS, the City Council has determined that the City-owned properties be used to address parking needs in the Downtown until such time as the City has a redevelopment project; and WHEREAS, removal of the buildings requires the remediation of any contamination or hazardous materials from the site prior to demolition. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. City staff is authorized to conduct asbestos abatement and an environmental assessment on the site in preparation for demolition. 3. Funding in an amount not to exceed $19,510.00 is authorized from the Transit Fund balance. PASSED AND ADOPTED THIS 4TH DAY OF AUGUST, 2008. YES NO HaURen Erickson Hedberg LeMair Millar Haugen Erickson HedberQ LeMair Millar Frank Boyles, City Manager S..,~r<;;jtyqf{l!'~~1t;;s>m Phone 952.447.9800 / Fax 952.447.4245 lv1. r, -g 0 ~ }-\ v+c..~""'.s C t>. S2. _ 441- 41..4S T 0.. Y. C.D U C r -, pl~jc(.) h tc)\lot..!; 10 Hazardous Building Materials Report For The City of Prior Lake . Project: . Two Commercial Buildings 16318 and 16328 Main Street Southeast Prior Lake, Minnesota . Project Number 08-4165 July 15,2008 Bdb) AcM.. R.~.(,\b ,..... SQ"\-~u-.. C.\. (P"J<!Z) Environmental DEMOLITION Inspections & Consulting 368 River Road Hudson, WI 54016 Phone: 651/208-2"811 Fax: 715/377-1450 dl!."'J;" J;'osSenter.com " .-:....~._._.__.....~.._.~ ..... .......~...... ---~-_'''''.'..'o:'''''' :"':---:--':'7' Expert asbestos building inspections and ~nvlronmental demolition consulting. ':":~::':~ ,::''';:''7~''''''/~,:/>:",\:,~,:(~:,::,~!~,,,,,~,:::,,: ; Hazardous Building Materials Report For The City of Prior Lake . Pr~.iect: . TWo Commercial Buildings 16318 and 16328 Main Street Southeast Prior Lake, Minnesota Project Number 08-4165 July 15, 2008 t ,. 10 A Scope of Services Envi. "....., .ental Demolition Inspections and Consulting (EDIC) uses the following scope of services: 1. Site inspection for the yA.........cc of SUspect asbestos-containing materials. 2. Collect A.....~""'"....,:...;.., .oe'bWk...,,,,,...lcs of .....~...;a1s ~t'......~~d to contain asbestos. Submit bulk samples to an accredited 'Iab"'L"~',.,.J for analysis ohsOOstos content. 3. Document the suspect asbcstos-containing .\...~...;a1s location and friability. 4. Inspect for and document the presc~_ of potential PCB, mercury, and refrigerantslCFCslHCFCs containing units (i,c, ''HVAC'', "waDe-in cooler" or "bel1a.c;t", etc). 5. Gcn~rate a final report. summarizing the building in..c;pcdion's findings. . Note - J:J..II~ does not provide decisiOtlS, consulting, or advice in regards to a..qbeQtoslhazordous mataial removal, trans:pot\ or disposal. TIle scope of savices is performed undet the General Conditions (section F.). B. Description The test site is twO commercial buildings located at 1631.8 and 16328 Main Street Southeast, Prior Lake, Mimtesota. This site i~ scheduJed for demol.itioIL C. Asbestos Results': . ; . ,', C.l. Asbestos-Containi.ng:MateriaJs-(ACM):. .. ,. Twenty (20) suspect~~ samples w.crc ,collected on July 11, 2008, and submitted for analysis. _ .':. . ." - The following is a list of materials found or assumed to contain asbestos: 1.6318 Main Street SE . 220 square feet offriabte ~",,"f on cex1ing textUIc located in the dining. ..."... was found to .......~...in asbestos. . 100 ,)"1......... feet of non friable red floor tile located in the front entrance (under non ACM tile) was found to contain asbestos. Mastic negative {or asbestos. . 910 square feet of non friable brown marble like patterned 1 'x 1 ' floor tile and black mastic located lUlder the dining room carpeting. in furnace room, and in bathrooms was found to contain asbestos. . 120 square feet of non friable 6'''''''' 9"x9" floor tile located in the storage room was found to contain asbcstos,_Mastic.negative for'asbestos. . 120 square feetcOf,non friable l'xJ.' wh1tefloor tile located in thc kitchen was found to contain asbeStos. This ACM is the top layer. . 120 square feetoffriablclinoleum located in the kitchen was found to contain asbestos. This ACM is the bc......... layer. ],6328 Main Street SE . 130 square feet of friable ,)tlJG..1 on ceiling t~rc located in the office was found to contain asbestos. . 950 ..'1......." feet of non friable roof tar and felt and roof flashing was found to contain asbestos. C.2. Non Asbestos-Containing ~.eriaJs Tho following is a list af mat~ls that were sampled and found to be non asbestos-containing materials: . d.':" 16318 Main Street SE Tar and felt roof Roof flashing Exterior paint CTVa' roof foam E."rterior concrete finish White tile in front entrance (top layer) 16328 Main Street SE Interior wallboard I' x I' floor tile and blaClc.x:n.asti~:iI:J,~acc room ..' ..'.. : 2 - to D. Other Hazardous Building Materials Hazardous building materials must be ~..J 1"., _. ..Jy and removed priorto demolition. The following is a sample .of hazardous building materials. . Polychlorinated Biphenyls (PCBs) found in light ballasts. capllCito~ HV AC systemS, and tranSformers. . Mercury found in flU...'A.;.)"'....t J.:....r~' sWitches, vapor 1.:.....I'.lo, thermostats, metal balidc lamps. bigh-,t'........Jre sodium lamps, neoi1lamps, manomet.en, and gau~. Many InetcUIY- containing materials were usUl in appliances. HV AC systems, or industrlal switches or controls, thermocouples, tempcratul'e sensors, and other electrical and non-electrical equipment. . Pb based paint that is not adhering to the subgtrate . Refri~...",..,;stCFC9IHCFCs are found in refrige:rato~ AC systems,. drinking fountains. dehumidifiers, vending machines, heat )'......)'s. clrillers, freezers, ice machines, food display cases. . Trash, furniture, mattresses, engine .t'cuG, construction waste, etc. . AppliaruJcs inCluding ~oves.. refri&_o:tms, furnaces. air exchangets, water heaters, chemicals, oils, batteries. p8int C:an:s.agriailtuI8I. chCmiOals, other h....-.Jous building materials. The abovo information is guidance and not an exhaustive list of all p--'-:...;':al hazardous building materials. The list is intended: as a.general icf.."....ct for h:v;ardous material issues in relation to demolitiOJ1!renovatiort projects 8nd is notsite"spccific. The following is a list of potential hazardous building materials that have been identified: 16318 Main Street SE Rooftop HVAC Pizza oven 4 rcfTi6......~ors Water heater F{ee7..er Clcauing cbemicals Restaurant supplies . . 10 f1u..~;"j......t bulbs and ~ Wall thermostat . 'J" Chairs and tables 16328 Main Street SE Rooftop AC Sot.,r panels on roof Exitliglrts 14 fluorescent bulbs 8 ballasts Wall thermostat Lawn Mower Water heatet Furnace E. DiscussiQn,_Asbe~9s~Contaiuing Materials The following intbnnation is intended as a 6"..'......1 re;::...'....ce for asbestos issues in relation to demolition/renovation and is neither site specific nor all enc"A,,~uSSing. The site may meet Minne!lOt8 Pollution CI.. ..1....1 Agency (MPCA) demolition n.otification requirements; the owner or demolition operator must notify tile MPCA ten working days prior to the demolition by filing a ''Notification of Intent to Perronn a Demolition" (NOI). Asbestos abatement must be conducted in accordance to meet state and federal rules and regulations. According to the Environmental Protection Agency (EP A) Category I non~ftiablc ACM that is in good condition can stay in place for demolition. If the material does stay in place for demolition tIle ACM must be disposed of as asbestos. Category 1 non~friable ACM means asbestos containing non-friable resilient floor coverings and asphalt roofing products. The disposal must be at a landfill pctmitted to take Category I asbestos. A reporting requirement of the MPCA's NOI .)L..l..... tbat the Category r n...,.J".;..ble AGM be quantified. , :S-IO Bulk ~sbestos analysis was conducted in accordanoe with EP A and Minnesota Dl!:partment of Health (MOB) required methodology. F. General Conditions EDIt's .c.'rr".,..:h to Otis in.,,.......Jon was to identify and .-...~e or assume heM. and ifin the ""'W'l''' of services: identify potential bazardous building material units. The results afthis inspection are provided to the client in writing; the \\ . :......, results of this i.~",..Jon supefCedc any ...'.....:.ous oral opinions on the status of the site. An """l'_l in..J! .._:on was conduch:d, att,.....J!;S lWte made to locate and identifY materials in accessible areas and areas rcquirb1g l~ted ~L...cti.ve entry. EDIC will not be respon.~ble for repairing l1lateda1s damaged during the inspection or any subsequent damage caused by this inspxtion. On any site, the potenti31 eXists for bazardous materials to be hidden. EDIC meets and exceeds industry-sampling practices for locating .,(I......~ building materials, h.owewr tlns inspection does not g1Jo........;...c all ACM: and potential hazardous building materials were found. Therefore BOle cannot be held responsible for the I".........oe ofbiddcn ha7.al'dous ...~...:als. Regulators. conttaetors, and inspectors of the demolition industry all acknowledge that ACM and ha7.mdous building materials can be hidden on site and become a...~:ble, exposed, or identified by the demolition process, the MPCA and the MDH then expectS the demolition .......L.o.ctor to identify the suspect ACM and/or potc~ b~~olls building materials and properly manage tlle situation. General areas tl1at hold hidden, ACM or hv.ardous building materials include: inside of walls and floor spaces, underneath basem~t W. concrete floors, und",,6' "'und, 'crawlspaces, areas where different levels of the building meet, llndem~th exterior ~iding. - , : , <. . ',' . , " . ..," .'., G. Asbestos Building Inspector Certifjcation I, the Imdersigned, do hereby ccItifY tbat I am an accredited Asbestos Building Inspector in the State of Minnesota, certified by the D '"..,' ...l, , .mt of Health No. Al3171 and this inspection was conducted in compliance with Minnesota Rules Chapter 4620.3460. S~: f7L (!.ff/ (/ - 'i"- Charles C. Gierke ' Project Manager and Owner, Environmental Demolition Inspections and Consulting. Date: 07-1S"-de ,:--; " 4-/0 . 1 BRAUN INTERTEC July 30,2008 Braun Intertec Corporation 11001 Hampshire Avenue 5 Minneapolis, MN 55438 Phone: 952.995_2000 Fax: 952.995.2020 Web: brauninfertec.com Proposal BL-08-03420 Ms. Kelly Meyer City of Prior Lake 4646 Dakota Street Southeast Prior Lake, MN 55372 Re: Proposal for Environmental Services Former MN Nails Property 16318 & 16328 Main Avenue Southeast Prior Lake, Minnesota Dear Ms. Meyer: Braun Intertec is pleased to present this proposal to conduct environmental services at the referenced site (site). It is our understanding that City of Prior Lake (City) will demolish and remove the existing buildings at the site and construct a new paved parking lot with the overall plan for future redevelopment. The site was previously occupied by a possible fueling station and automotive repair facility. We propose the following scope of services to assist the City in evaluating potential soil and/or groundwater impacts at the site: · Phase I Environmental Site Assessment · Phase II Environmental Site Assessment Scope of Services Phase I Environmental Site Assessment Objective The objective of the Phase I Environmental Site Assessment (ESA) will be to evaluate the site for indications of recognized environmental conditions and to assist in satisfying All Appropriate Inquiries (MI) criteria and requirements. The Phase I ESA will be conducted in general conformance with the scope and limitations of American Society for Testing Materials (ASTM) Practice E 1527-05 and 40 CFR Part 312.21. Site History Review The Phase I ESA will summarize reasonably ascertainable information pertaining to former and current land-use activities at the site. Our summary will include a review of aerial photographs, fire insurance atlases, city directories, property tax files, building records, topographic maps and/or other historical documents. This summary will be conducted in order to satiSfy the historical-use requirements of the ASTM Practice E 1527-05 and 40 CFR Part 312.21. :, Celebrating 50 years of growth through service and trust City of Prior Lake Proposal BL-08-03420 July 30, 2008 Page 2 Regulatory Information Review Braun Intertec will request that a national regulatory information vendor, such as Environmental Data Resources, Inc., conduct a limited file evaluation of the site. If readily available and practically reviewable, the file evaluation will include a review of the following databases within the corresponding radius indicated in the ASTM Practice E 1527-05 and 40 CFR Part 312.21: · Federal National Priorities List (NPL) · Federal Comprehensive Environmental Response, Compensation, and Liability Information System (CERCLlS) · Federal Institutional and Engineering Controls · Federal Resource Conservation and Recovery Act (RCRA) Transport, Storage and Disposal (TSD) facilities · Federal RCRA TSD facilities that have received RCRA corrective action activities · Federal RCRA generators · Federal Emergency Response Notification (ERNS) sites · State NPL and CERCLlS equivalents · State landfill and/or solid waste disposal sites State Voluntary cleanup programs · State leaking underground and aboveground storage tank (LUST/LAST) sites · State registered underground and aboveground storage tank (UST/AST) sites · State Brownfield programs · State Institutional and Engineering Controls · State spills list · Environmental Liens Braun Intertec will review and summarize this information, and comment on known and potential environmental hazards that may have an impact on the site. Our scope of work does not include a detailed review of file information of identified facilities listed on the regulatory databases. Site Reconnaissance and Interviews The Phase I ESA will include a reconnaissance of the site. During the reconnaissance, we will note, if observed, the type of vegetation, exposed soils, open excavations or depressions, and site topography. Visible indications of underground and aboveground storage tanks, dumping, spills of petroleum and chemicals, and other obvious potential sources of contamination will be noted. In addition, Braun Intertec will conduct interviews with site representatives and governmental officials regarding past and current land-use activities. User-Provided Information As part of Phase I ESA, the "User" should provide available information to Braun Intertec as the Environmental Professional to help identify the possibility of recognized environmental conditions in connection with the Site. A "User" is the party seeking to use ASTM Practice E 1527-05 to complete an environmental site assessment and may include, without limitation, a potential purchaser, tenant or owner of the property, a lender, or a property manager. The attached User questionnaire should be completed in its entirety by the User(s} and returned with the signed authorization. 1/ multiple Users are requesting reliance on the Phase I ESA, please forward a copy of the questionnaire to the appropriate entities. BRAUN I NTE RTEC City of Prior Lake Proposal BL-OS-Q3420 July 30,2008 Page 3 Phase II Environmental Site Assessment Objective The objective of the Phase II ESA is to evaluate whether the soil and/or groundwater at the site has been impacted from the recognized environmental conditions identified during the Phase I ESA. For the purposes of this proposal, we are proposing to advance hollow-stem auger soil borings at the site to evaluate the subsurface conditions. Once sufficient information has been obtained during the Phase I ESA, modifications to the scope of services for the Phase II ESA might be necessary. Drilling Activities We will advance the soil borings with a truck-mounted core-and-auger drill equipped with 3 1/4-inch inside-diameter hollow-stem auger. We advanced the boreholes with the hollow-stem auger to the desired test depths. A 140-pound hammer falling 30 inches was then used to drive the standard 2-inch split-barrel sampler a total penetration of 11/2 feet below the tip of the hollow-stem auger. Samples were taken at 2 1/2-foot vertical intervals to the is-foot depth and then at S-foot intervals to the termination depths of the borings. Samples will be returned to our laboratory where they will be visually classified and logged by a geologist/engineer. Utility Clearance We will stake the soil boring locations, determine surface elevations, and coordinate the clearing of public utilities. We will locate soil boring locations using Global Positioning System (GPS) technology. Prior to advancing the push probes, Braun Intertec or our subcontractor will contact Gopher State One Call and request they notify the appropriate utility vendors to clear the underground utilities at the site. We request you or your authorized representative notify Braun Intertec immediately of the presence and location of any underground objects or private utilities that are not the responsibility of public agencies. Braun Intertec will take reasonable precautions to avoid damaging underground objects. In authorizing this proposal, you agree to waive any claim against Braun Intertec and will indemnify and hold Braun Intertec harmless from any claim of liability, injury or loss allegedly arising from us damaging underground objects not called to our attention prior to beginning the work. Site Safety Plan Due to the potential of encountering impacted soils and/or groundwater, Braun Intertec will prepare a site safety plan for its employees prior to commencing work at the site. The site safety plan will define the procedures and responsibilities necessary to implement on-site safety during the proposed soil-sampling activities for this project. Soil Screening A Braun Intertec environmental field technician will be at the site during the soil boring activities to monitor the subsurface materials encountered at each location. Indications of soil discoloration and odors will be documented if observed. In addition, soil samples will be screened for the presence of organic vapors with a photoionization detector (PID) using both direct readings and the headspace method of analysis recommended in "Soil Sample Collection and Analysis Procedures," Minnesota Pollution Control Agency (MPCA) Tanks and Emergency Response Section Fact Sheet #3.22. BRAUN I NTE RTEC City of Prior Lake Proposal BL-D8-03420 July 30, 2008 Page 4 5011 Sampling For the purposes of this proposal, we anticipate that three (3) soil samples will be collected from the soil borings at the site. One soil sample will be collected from each soil boring from the depth interval exhibiting the highest organic vapor reading (PID), staining, and/or odors. If no indications of contamination are observed, the soil sample will be collected from the terminus of the soil boring and if saturated, the soil sample will be collected from the deepest unsaturated depth interval. Groundwater Sampling For the purposes of this proposal, we anticipate that three (3) groundwater samples will be collected from the soil borings at the site. Upon advancement of the soil borings, temporary monitoring wells will be installed to obtain groundwater samples. The temporary monitoring wells will be sealed in accordance with Minnesota Department of Health (MDH) requirements immediately upon retrieval of the groundwater sample. Laboratory Analysis The soil and groundwater samples will be analyzed for the presence and concentration of the following parameters: · Gasoline-Range Organics (GRO) · Diesel-Range Organics (DRO) · Volatile Organic Compounds (VOCs) · Polynuclear Aromatic Hydrocarbons (PAHs) · The list of eight (8) Resource Conservation and Recovery (RCRA) metals (Soil Only) All samples will be transported under refrigerated conditions, as needed, and accompanied by Braun Intertec chain-of-custody records. All analyses will be performed within U.S. Environmental Protection Agency (EPA) holding times. Quality Assurance/Quality Control Braun Intertec is currently certified to conduct inorganic and organic laboratory analyses by the Minnesota Department of Health, the Wisconsin Department of Natural Resources and the North Dakota State Department of Health. All chemical analyses will be performed according to methods published by the United States Environmental Protection Agency or other authoritative sources. The quality assurance program at Braun Intertec has been designed to generate laboratory data that are both accurate and consistent. To maintain a high level of performance, quality-control assessment is used to monitor both precision and accuracy of the instruments and analyses. The examination of routine blanks, sample duplicates, spikes and standards highlight areas of each analytical procedure where preventive and/or corrective measures will be most effective. A copy of our Quality Assurance Manual is available for your review upon request. Results and Reporting Once sufficient information is obtained during the Phase I ESA, modifications to the Phase II ESA scope of services might be necessary. BRAUN INTERTEC I I I City of Prior lake Proposal Bl-08-03420 July 30, 2008 Page 5 Verbal results ofthe Phase II ESA will be communicated to you as they become available. Following receipt of the analytical results, a draft Phase II ESA report summarizing our findings will be prepared and submitted to you for review and comment. The Phase" ESA report will include our findings and conclusions, as well as recommendations for additional work, if any, and possible regulatory assistance and/or reporting scenarios. A draft Phase I ESA report and Phase II ESA report will be forwarded to you for review and comment. The reports will remain in draft status until we .are notified by you to proceed with issuance of final reports. Cost Estimate Based on our current understanding of the site conditions and the assumptions stated in this proposal, we will furnish the services described above on a hourly and unit cost basis in accordance with our current schedule of charges. Our estimated costs are estimated as follows: Service DescriDtion Cost Estimate Phase I ESA $ 1,400 Phase II ESA Drilling Activities Includes drill rig, mobilization (1 day), and permitting 3 soil borings and 3 temporary monitoring wells $ 2,145 Utility Clearance and Staking $ 300 Soil Screening and Sampling Includes a technician, travel, and equipment $ 925 Laboratory Analysis $ 2,610 Soil samples - 3 for GRO, DRO, VOCs, PAHs, and RCRA metals Groundwater samples - 3 for GRO, DRO, VOCS, and PAHs Reporting S 2.270 Includes project management, correspondence, and report preparation Total Phase II ESA $ 8.250 Total Proposed Costs $ 9,650 BRAUN I NTE RTEC I City of Prior Lake Proposal Bl-08-03420 July 30, 2008 Page 6 Schedule Based on our current schedule, the Phase I ESA will be completed within approximately 2 weeks from receipt of your authorization. Once sufficient information is obtained from the Phase I ESA, we will conduct the on-site drilling and sampling activities. Approximately 1 day is required to conduct the on-site drilling and sampling activities. Standard turnaround time for laboratory analysis is approximately 10 to 12 days. Expedited turnaround is available at an additional cost. The draft reports will be prepared and submitted to you for review and comment. The reports will remain in draft status until we are notified by you to proceed with issuance of final reports. Assessment Limitations If indications of soil and/or groundwater impacts are encountered during the assessment, additional assessment of the site may be necessary to evaluate the full extent and magnitude of the soil and/or groundwater contamination, and what type of remedial activities, if any, should be conducted. Therefore, the Scope of Services for the proposed assessment may not adequately define the extent of contamination that may be present at the site. Acceptance of Proposal Braun Intertec appreciates the opportunity to present this Proposal to you. It is being presented in duplicate so if it is acceptable, the original con be retained for your records and the copy con be signed and returned to us by fox, emoil, or u.s. Moil in its entirety, including the General Conditions. The fee presented in this Proposal is based on the scope of services described and the assumption that the Proposal will be authorized within 30 days and that the project will be completed within the proposed schedule. If the project is not authorized within 30 days, we may need to modify the Proposal. If the project cannot be completed within the proposed schedule due to circumstances beyond our control, revising the Proposal may be required for completion of the remaining tasks. If you have questions concerning the contents of this proposal or the project in general, please call Jeremy Coughlin at 952.995.2446 or Mike Bratrud at 952.995.2430. Sincerely, t!& Michael. l. Bratrud, PG Principal BRAUN INTERTEC CORPORATION BRAUN INTERTEC I PH 2 ESA ProposaI- Fnnr MN Nails '~ Authorization to Proceed: Please proceed according to the described scope of services: Authorizer's Firm Authorizer's Name (please print or type) Authorizer's Signature Authorizer's Title Date Attachment: General Conditions (6-15-06) PH 2 Proposal-Former MN Nails City of Prior Lake Proposal Bl-08-03420 July 30, 2008 Page 7 BRAUN INTERTEC I ASTM Practice E 1527-05 User Questionnaire Site: Former MN Nails 16318 & 16328 Main Avenue Southeast Prior Lake, Minnesota Name: Date: Company: (.1) Chaln-of- Title Records Chain-of-title records may be helpful for the environmental professional to assist in evaluating the land- use history of the property. Please provide the chain-of-title records if you request that chaln-of-tltle be included in the Phase I ESA for the property. Chain-of-title records can be ordered by Braun Intertec at an additional cost, if requested by you. Will you provide chain-of-title records? (2) Environmental cleanup liens that are filed or recorded against the site Are you aware of any environmental cleanup liens against the property that are filed or recorded under federal, tribal, state or local law? (3) Activity and land-use limitations that are In place on the site or that have been flied or recorded In a registry Are you aware of any AULs (Access and Use Limitations), such as engineering controls, land-use restrictions or institutional controls that are in place at the site and/or have been filed or recorded in a registry under federal, tribal, state or local law? (4) Specialized knowledge or experience of the person seeking to qualify for the Landowner' Uablllty Protections (LLP) (a) As the User of this ESA, do you have any specialized knowledge or experience related to the property or nearby properties? For example, are you involved in the same line of business as the current or former occupants of the property or an adjoining property so that you would have specialized knowledge of the chemicals and processes used by this type of business? (b) As the User of this ESA, based on your knowledge and experience related to the property, are there any obvious indicators that point to the presence or likely presence of contamination at the property? (5) Relationship of the purchase price to the fair market value of the property if it were not contaminated Does the purchase price being paid for this property reasonably reflect the fair market value of the property? If you conclude that there is a difference, have you considered whether the lower purchase price is because contamination is known or believed to be present at the property? (6) Commonly known or reasonably ascertainable information about the property Are you aware of commonly known or reasonably ascertainable information about the property that would help the environmental professional to identify conditions indicative of releases or threatened releases? For example, as User, (a) Do you know the past uses of the property? If so, please explain. (b) Do you know of specific chemicals that are present or once were present at the property? If so, please explain. (c) Do you know of spills or other chemical releases that have taken place at the property? If so, please explain. . , (d) Do you know of any environmental cleanups that have taken place at the property? If so, please explain. I 'j I I General Conditions Our agreement ("Agreement") with you consists of these General Conditions and the accompanying written proposal or authorization. Section 1: Our Responsibilities 1.1 We will provide the services specifically described in our Agreement with you. You agree that we are not responsible for services that are not fairly included in our specific undertaking. Unless otherwise agreed in writing, our findings, opinions, and recommendations will be provided to you in writing. You agree not to rely on oral findings, opinions, or recommendations without our written approval. 1.2 In performing our professional services, we will use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of our profession practicing in the same locality. If you direct us to deviate from our recommended procedures, you agree to hold us harmless from claims, damages, and expenses arising out of your direction. 1.3 We will reference our field observations and sampling to available reference points, but we will not survey, set, or check the accuracy of those points unless we accept that duty in writing. Locations of field observations or sampling described in our report or shown on our sketches are based on information provided by others or estimates made by our personnel. You agree that such dimensions, depths, or elevations are approximations unless specifically stated otherwise in the report. You accept the inherent risk that samples or observations may not be representative of things not sampled or seen and, further, that site conditions may change over lime. 1.4 Our duties do not include supervising your contractors or commenting on, overseeing, or providing the means and methods of their work, unless we accept such duties in writing. We will not be responsible for the failure of your contractors to perform in accordance with their undertakings, and the providing of our services will not relieve others of their responsibilities to you or to others. 1.5 We will provide a health and safety program for our employees, but we will not be responsible for contractor, job, or site health or safety unless we accept that duty in writing. 1.6 You will provide, at no cost to us, appropriate site safety measures as to work areas to be observed or inspected by us. Our employees are authorized by you to refuse to work under conditions that may be unsafe. 1.7 Estimates of our fees or other project costs will be based on information available to us and on our experience and knowledge. Such estimates are an exercise of our professional judgment and are not guaranteed or warranted. Actual costs may vary. You should allow a contingency in addition to estimated costs. Section 2: Your Responsibilities 2.1 You will provide us with prior geotechnical and other reports, specifications, plans, and information to which you have access about the site. You agree to provide us with all plans, changes in plans, and new information as to site conditions until we have completed our work. 2.2 You will provide access to the site. In the course of our work some site damage is normal even when due care is exercised. We will use reasonable care to minimize damage to the site. We have not included the cost of restoration of normal damage in the estimated charges. 2.3 You agree to provide us, in a timely manner, with information that you have regarding buried objects at the site. We will not be responsible for locating buried objects at the site unless we accept that duty in writing. You agree to hold us harmless from claims, damages, losses, and related expenses involving buried objects of which you had knowledge but did not timely call to our attention or correctly show on the plans you or others on your behalf furnished to us. 2.4 You will notify us of any knowledge or suspicion of the presence of hazardous or dangerous materials in a sample provided to us. You agree to provide us with information in your possession or control relating to contamination at the work site. If we observe or suspect the presence of contaminants not anticipated in our Agreement, we may terminate our work without liability to you or to others, and we will be paid for the services we have provided. 2.5 Neither this Agreement nor the providing of services will operate to make us an owner, operator, generator, transporter, treater, storer, or a disposal facility within the meaning of the Resource Conservation Recovery Act, as amended, or within the meaning of any other law governing the handling, treatment, storage, or disposal of hazardous materials. You agree to hold us harmless and indemnify us from any such claim or loss. BRAUN INTERTEC 2.6 Monitoring wells are your property, and you are responsible for their permitting, maintenance, and abandonment unless we accept that duty in writing. 2.7 You agree to make disclosures required by law. In the event you do not own the site, you acknowledge that it is your duty to inform the owner of the discovery or release of contaminants at the site. You agree to hold us harmless and indemnify us from claims related to disclosures made by us that are required by law and from claims related to the informing or failure to inform the site owner of the discovery of contaminants. Section 3: Reports and Records 3.1 We will furnish reports to you in duplicate. We will retain analytical data for seven years and financial data for three years. 3.2 Our reports, notes, calculations, and other documents and our computer software and data are instruments of our service to you, and they remain our property but are subject to a license to you for your use in the related project for the purposes disclosed to us. You may not transfer our reports to others or use them for a purpose for which they were not prepared without our written approval, which will not be unreasonably withheld. You agree to indemnify and hold us harmless from claims, damages, losses, and expenses, including attorney fees, arising out of such a transfer or use. At your request, we will provide endorsements of our reports or letters of reliance, but only if the recipients agree to be bound by the terms of our agreement with you and only if we are paid the administrative fee stated in our then current Schedule of Charges. 3.3 Because electronic documents may be modified intentionally or inadvertently, you agree that we will not be liable for damages resulting from change in an electronic document occurring after we transmit it to you. In case of any difference or ambiguity between an electronic and a paper document, the paper document shall govern. 3.4 If you do not pay for our services in full as agreed, we may retain work not yet delivered to you and you agree to return to us all of our work that is in your possession or under your control. You agree not to use or rely upon our work for any purpose whatsoever until it is paid for in full. Page I of2 · Providing engineering and environmental solutions since 1957 ~ 3.5 Samples remaining after tests are conducted and field and laboratory equipment that cannot be adequately cleansed of contaminants are and continue to be your property. They will be discarded or returned to you, at our discretion, unless within 15 days of the report date you give us written direction to store or transfer the materials at your expense. Section 4: C ,.., ........:DO 4.1 You will pay for services as agreed upon or according to our then current Schedule of Charges if there is no other written agreement as to price. An estimated cost is not a firm figure. You agree to pay all sales taxes and other taxes based on your payment of our compensation. OUI performance is subject to credit approval and payment of any specified retainer. 4.2 You will notify us of billing disputes within 15 days. You will pay undisputed portions of invoices on receipt. You agree to pay interest on unpaid balances beginning 30 days after invoice dates at the rate of 1.5% per month, or at the maximum rate allowed by law. 4.3 If you direct us to invoice another, we will do so, but you agree to be responsible for OUI compensation unless you provide us with that person's written acceptance of all terms of OUI A&~~.uent and we agree to extend credit to that person and to release you. 4.4 You agree to compensate us in accordance with our fee schedule if we are asked or required to respond to legal process arising out of a proceeding related to the project and as to which we are not a party. 4.5 If we are delayed by factors beyond our control, or if project conditions or the scope or amount of work change, or if changed labor union conditions result in increased costs, decreased efficiency, or delays, or if the standards or methods change, we will give you timely notice and we will receive an equitable adjustment of our compensation. If you and we do not reach a5'.;.~.~ent on such compensation within 30 days of our written application, we may terminate without liability to you or others. 4.6 If you fail to pay us within 60 days following invoice date, we may consider the default a total breach of OUI A5'.;.~.~ent and, at our option, terminate our duties without liability to you or to others. 4.7 In consideration of our providing insurance to cover claims made by you, you hereby waive any right of offset as to fees othetWise due us. Section 5: Disputes, Damage, and Risk Allocation 5.1 Each of us will exercise good faith efforts to resolve disputes without litigation. Such efforts will include, but not be limited to, a meeting(s) attended by each party's ..........entative(s) empowered to resolve the dispute. Before either of us commences an action against the other, disputes (except collections) will be submitted to mediation. 5.2 Neither of us will be liable for special, incidental, consequential, or punitive damages, including but not limited to those arising from delay, loss of use, loss of profits or revenue, loss of fmancing commitments or fees, or the cost of capital. 5.3 We will not be liable for damages unless suit is commenced within two years of the date of injury or loss or within two years of the date of the completion of our services, whichever is earlier. We will not be liable unless you have notified us of the discovery of the claimed breach of contract, negligent act, or omission within 30 days of the date of discovery and unless you have given us an v....v. ;unity to investigate and to recommend ways of mitigating damages. 5.4 For you to obtain the benefit of a fee which includes a reasonable allowance for risks, you agree that OUI aggregate liability will not exceed the fee paid for OUI services or $50,000, whichever is greater, and you agree to indemnify us from all liability to others in excess of that amount. If you are unwilling to accept this allocation of risk, we will increase OUI aggregate liability to $100,000 provided that, within 10 days of the date of our Agreement, you provide payment in an amount that will increase our fees by 10%, but not less than $500, to compensate us for the greater risk undertaken. This increased fee is not the pUIchase of insUIance. 5.5 If you do not pay us within 60 days of invoice date, or if you make a claim against us that is resolved in OUI favor, you agree to reimburse OUI expenses, including but not limited to attorney fees, staff time, expert witness fees, and other costs of collection or litigation. 5.6 The law of the state in which our servicing office is located will govern all disputes. Each of us waives trial by jury. No employee acting within the scope of employment shall have individual liability for his or her acts or omissions, and you agree not make a claim against individual employees. Sectioo 6: General Indemnification 6.1 We will indemnify and hold you hannless from and against demands, damages, and expenses to the comparative extent they are caused by OUI negligent acts or omissions or those negligent acts or omissions of persons for whom we are legally .~~..v~sible. You will indemnify and hold us harmless from and against demands, damages, and expenses to the comparative extent they are caused by YOUI negligent acts or omissions or those negligent acts or omissions of persons for whom you are legally responsible. 6.2 To the extent it may be necessary to indemnify either of us under Section 6.1, you and we expressly waive, in favor of the other only, any immunity or exemption from liability that exists under any worker compensation law. 6.3 You agree to indemnify us against losses and costs arising out of claims of patent or copyright infringement as to any process or system that is specified or selected by you or by others on your behalf. Section 7: MisceIIaneoIl'l Provisioll'i 7.1 We will provide a certificate of insUIance to you upon request. Any claim as an Additional Insured shall be limited to losses caused by OUI sole negligence. 7.2 This A&';'~ment is OUI entire a&.;.~u,ent. It supersedes prior agreements. It may be modified only in a writing, making specific reference to the provision modified. 7.3 Neither ofus will assign or transfer any interest, any claim, any cause of action, or any right against the other. Neither of us will assign or otherwise transfer or encumber any proceeds or expected proceeds or compensation from the project or project claims to any third person, whether directly or as collateral or otherwise. 7.4 Our Agreement may be terminated early only in writing. We will receive an equitable adjustment of our compensation in the event of early termination. Revised 6-15-06 Page 2 0[2 GC