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Home My WebLink About10A Demo Buildings on Main Avenue 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: October 6, 2008 10A Robert D. Hutchins, Building Official AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING FUNDING FOR DEMOLITION OF BUILDINGS AND PREPARATION OF A SITE FOR A PARKING LOT LOCATED AT 16318 AND 16328 MAIN AVENUE. DISCUSSION: Introduction The purpose of this agenda report is to seek authorization for funding for the removal of the buildings at 16318 and 16328 Main Avenue and the subsequent construction of a parking lot. Histol"\l 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, facade improvements, street reconstruction, streetscape improvements, purchasing amenities such as benches, planters and trash receptacles, park facade improvement program, construction of the City Hall and Police Station, and planning for intersection and roadway improvements related to CSAH 21, Arcadia and Hwy 13. The 2030 Vision and Strategic Plan envisions a pedestrian-friendly, small town environment in the Downtown. The 2030 Vision and Strategic Plan specifically states 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. 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 the blighted buildings be removed and the site be used as an additional surface parking area. Soil Contaminants: The history of these properties as a former gas station and a former garage led staff to believe there was a potential for soil contamination on the 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. Resolution 08-102 authorized the City to engage Braun Intertec to conduct an environmental www.cityofpriorlake.com ,.\vvc" ,v;;\ZCJJ 0';"" ,Jo I "'fNI ~.:>\ 1 C CJ JC'''';CIIIU uuilu;II\:j:::> dyt:IIUd.UU\,; Phone 952.447.9800 / Fax 952.447.4245 assessment that included a historical review of the site, soil and groundwater sampling, and testing for contaminates. That report was completed on September 3, 2008. In the Phase II Environmental Site Assessment, which evaluated whether the soil and or groundwater was impacted due to the past land uses of the site, a relatively low concentration of Diesel-Range Organics (DRO) was found in a soil sample collected in one location at a depth of 7.5 feet. Structure Contaminants: Similar to the soil testing, 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's inspection 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 requires disposal of the material occur at a landfill permitted to take asbestos. The City Council authorized this work by Resolution 08-102. Dennis Environmental Operations removed the materials containing asbestos from each building. That work was completed on August 8, 2008. A Special Waste Manifest is attached. Current Circumstances The next step in the process of removing these buildings and constructing a temporary parking area is to seek quotes for the demolition and removal of the structures. City staff prepared a Request for Quotes and asked three demolition companies to offer prices for completing this work, including deconstruction of the buildings, removal of foundations, capping and burying of sewer and water and all utilities, importing soils and providing compaction of the soils to existing grade including testing by a recognized testing company for the project. Should the demolition company detect additional soil contamination during demolition, Braun Intertec has also completed a Construction Contingency Plan (CCP) that provides procedures for the detection, evaluation, handling, treatment and/or disposal of potential petroleum impacted soil, fill soil and material (Le., buried bricks and debris), and other environmental issues that are unknown at this time, but that might be encountered during redevelopment activities. The CCP is contained in the Request for Quotes for the demolition of the buildings. The City received two quotes for this demolishing work as follows: I Vendor Quote I Lloyd's Construction Services, Inc. $15,700.00 I CF Madson Excavating LLC $12,800.00 Conclusion Staff is proposing to use CF Madson Excavating LLC for the demolition and disposal of the buildings in an amount not to exceed $12,800.00. Since the acquisition of these properties is for parking, funding is proposed from the Transit fund balance ISSUES: Demolition: The Council does have the option to leave the buildings standing and have any future developer assume the costs of demolition and disposal. This action would mean that new parking would not be constructed until redevelopment occurs, and the buildings would remain vacant and an eye-sore for an indefinite period of time. Soil Remediation: The Braun Intertec Phase II Environmental Site Assessment, found a relatively low concentration of Diesel-Range Organics (DRO) below grade. If not found in the removal of the building foundations, the contaminated soils will be left intact. Any future developer would assume the costs and additional time within its construction project to remove any additional contaminated soils. The City would be able to provide the developer our analysis to date. Staff did not believe it was appropriate to initiate further testing (or expense) until we knew what we were dealing with. The very low level of contamination within the one soil sample seems to indicate that there is not a problem on the site. No other borings identified contamination. At this point, staff is recommending that the City proceed with the demolition of the buildings and, as stated in the Construction Contingency Plan, address any contaminated soils if found during demolition. If no further contamination is apparent, the City would proceed to pave the lot. FINANCIAL There is no General Fund impact of this work. Adequate funding is available in IMPACT: the transit fund balance. ALTERNATIVES: 1. Motion and second to adopt a Resolution authorizing expenditures from the transit fund balance to buildings located at 16318 and 16328 Main Avenue in an amount not to exceed $12,800.00. 2. Defer this item and provide staff with direction. RECOMMENDED Alternative No 1 MOTION: ReVicJ;,L Frank BOD ~ i nager 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 08-xxx A RESOLUTION AUTHORIZING EXPENDITURES TO CONDUCT REMOVAL AND DEMOLITION OF BUILDINGS AND TO PREPARE SITE FOR A PARKING LOT 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 as defined by Minnesota Statutes; 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, Demolishing the buildings will meet these objectives. 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 removal and demolition of buildings and prepare site for a parking lot. 3. Funding in an amount not to exceed $12,800.00 is authorized from the Transit Fund balance. PASSED AND ADOPTED THIS 6TH DAY OF OCTOBER, 2008. YES NO I Haugen I Erickson I Hedber9 I leMair I Millar Hau.sen Erickson Hedber9 leMair . Millar Frank Boyles, City Manager www.cityofpriorlake.com :'!?PR8rl~:9~:~~1:~~ / Fax 952.447.4245 .:: ,...of # I Manifest # 1994 ;.;.~ e.. . .'N', , . .., -.. .... . .' ; elc" , ;~~~~~ioOil~~_;;;:;r"'\' ,Ii..: \"'" r-,r'i:f'- . {".J, (2-l'\J'!p..A!,..J .O-pe""'-~' '" ~ '.' '. "';~'" ;_.J <:2. '. ," """. .....,. ....\.... .' - ..' '. ~ ' . t .;, . ;~~-'; ,/ . "S:' , ..n... ."-.',;~..-r;.~- :~:':~,~::i~ ..~. , "~'NalM: Ci+y o'~ {),\ot- L"ke, i ~(V.'. '.~~.T~hi:Jhe: !,fV") ~ (,1 (I 7 - 'n3 SJ I j <'-', ,',... .... ~,~ /:~,':~s:t~~:;".;,:.-;_.,;,.:;, '. '.' _'''';-'~:g 1;~4BB-:_Y:l'f$?;: ... .-.:','f.:. ,,:,'1'i; , ......;.....:, .~.. ",:;i,i. TRANSPORTER ~ ~J!!fiIr Lloyd's Construction Services, Inc. 7207 W. 12Sth St. Savage, MN 55378 Phone (952)746-5832 Fax (952)746-5800 PROPOSAL To: City of Prior Lake 16200 Eagle Creek Ave. SE Prior Lake, MN 55372 Ph: 952-447-9851 Fax: 952-447-4245 AUn: Robert Hutchins Proposal NO:_12339_ Page No. 1 of 2 Date:_9J23J08 Job Location and Name: 16318 & 16328 Main Ave., Prior Lake Scope of Work: BUILDING DEMOLITION Removal and disposal of building structures & foundations complete including: water & sewer disconnects at property line, silt fence on north property line, import sand fill as needed, 4R of recycled class 5, compaction & testing, recycling of lamps/ballasts/freon. Conditions: *Pay applications will be submitted on the 25th of the month and are due by the 10th of the following month (maximum 47 days) at which interest will accrue plus attomey fees. *This proposal will become an attachment to any contracts for the work accepted or will become the contract if no contract is submitted to LCS. *This bid is conditioned upon the use of the Consensus Documents 750 and on the exclusion of any requirementto name additional insureds or to waive subrogation for claims covered by work mans compensation or commercial general liability insurance. *Retainage not to exceed 5% and is due 90 days from acceptance of work. *Pre-demolition asbestos survey to be completed by others prior to demolition work. *AlI salvage rights belong to demolition contractor. Exclusions: *No asbestos, lead paint, mold, or hazardous waste of any kind will be handled or hauled by us. *No removal of asphalt, grass areas, or sidewalks. Total Bid: All work will be performed and completed in a substantial workmanlike manner for the sum of ...... n:::I::N THOUSAND SEVEN HlJNDRED DOLLARS AND NO/100THS f'15.700.00\ Payment includes all labor, dumpsters, and equipment necessary to complete our bid. ~~.t!V Lloyd's Construction Services, Inc. 7207 W. 128th St. Savage, MN 55378 Phone (952) 746-5832 Fax (952) 746-5800 PROPOSAL To: City of Prior Lake 16200 Eagle Creek Ave. SE Prior Lake, MN 55372 Ph: 952-447-9851 Fax: 952-447-4245 Attn: Robert Hutchins Proposal NO:_12339_ Page No. 2 of 2 Date:_9/23108 Job Location and Name: 16318 & 16328 Main Ave., Prior Lake Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders and will become an extra charge over and above this proposal. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other insurance on above work. Workmen's Compensation and other Public Liability Insurance on above work will be taken out by Lloyd's Construction Services, Inc.. Bonding or any extra Insurance Requirements, such as Additional Insured requirements, are not included in this bid and will be an extra charge. Respectfully Submitted Jeff Stocker Note-- This proposal may be withdrawn by us if not accepted within 60 days. ~~~..~~~~T~~~~~r~~~7~~~'Tr.~~Tr.~~Tr~~~Tr~~~~~r~~T~M'~T~~'Trr------------ ACCEPTANCE The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work specified. Payment will be made as outlined above. Accepted: Date Signature