06-07-10 SCCITEM 3
D. DANIEL LICHT
From: Ron Wagner [RonW@hakanson-anderson.comj
Sent: Friday, May 28, 2010 11:32 AM
To: Tom Brown; Todd
Cc: Mike Robertson; Gary Groen; Tami Loff; Andy MacArthur; Brad Belair; ddl@planningco.com
Subject: GRC Street Issues
Tom
As stated at the meeting on Thursday, Brad and I find milling and patching of existing deficiencies in the base asphalt
coarse and a 1 %" overlay unacceptable. It is our opinions that the existing pavement is too far gone and a fix which is
likely more costly than the $125,000 in escrow is warranted.
Acceptable alternatives that Brad and I discussed are as follows
1) Remove existing base coarse and pave a new 2 %" base coarse and a 1 '/_" wear coarse
2) Mill existing base coarse to 1" thick. Tack at 0.1 gal/SY. Pave new 2" base coarse on remaining old base
coarse (preferably on a very warm day and roll with rubber tire roller). Tack at 0.05 gal/SY and pave 1 %"
wear coarse. Saw and seal every 100'
3) Least preferable option. Reclaim existing base and inject asphalt oil at geotechnical firms recommended %.
Blade and pack to within 2" of final grade. Pave 2" new wear coarse.
Please have estimates for all three options available to council June 7th. The council has a workshop scheduled but that
will likely be changed to a special meeting to deal with GRC street issues. I would suggest Appello and yourself
attending.
Thanks
Ron
1`111rderson
Ronald J. Wagner, CEO
3601 Thurston Avenue
Anoka, MN 55303
Phone (763) 427-5860
Fax (763) 427-0520
terra
An general contractors, llc
21025 Commence Blvd, Suite 1000 - Rogers, Minnesota 55374 e ph. 763.463.0220 - fax. 763.463.0290 o www. terragc.com
May 27, 2010
Mr. Ronald Wagner
Hakanson Anderson Associates
3601 Thurston Avenue
Suite 101
Anoka, MN 55303
Re: GRC of Otsego Bituminous
Dear Ron:
.,V
On behalf of The Appello Group, LLC (Appello), please find the summery our review of the conditions of
the asphalt base course on the remaining streets yet to receive the wea.course at Great River Centre
of Otsego (GRC).
Per your request we were asked to review the condition of the asphalt: with outside agenejq§ and
contractors for solutions that would satisfy your concern for"the potential telegraphing of the cracks in
the base course. We have met with a geotechnical firm and with a bituminous contractor on developing
options; however, the options=range from crack -sealing prior to ;placing the wear course, fabrics and
°.-complete replacement. In either case, cracking will occur and neither entity could convey that either
option would not completely {eliminate what has occurred nor could they confirm that it was necessary.
No specific testing was completed other than observations.
Appello is prepared to place the last lift of bituminous per the original design documents and extends "
this commitment to the city per their development agreement. •':This work has been delayed for nearly
four (4) years; however, =this has been communicated to the a city and everyone has been aware why
; riginal improvements (road and utilities
)APPeIlo was waiting Additionally, Appello Paid for he o
throughout GRC and with the $125,000 escrow from the sale to Frauenshuh has the funds to complete.
the work as designed.
If the City of Otsego desires a different approach to the balance of this work or prefers to complete this ,Y
work themselves, they may do so. Again, Appello is prepared to complete the work as designed upon' -
approval from the city.
look forward to answering any questions that you may have.
,erely,
mas H. Brown
THB/tb
C: Brad Belair, City of Otsego
Todd Plaisted, Appello
Roger Jensen, Appello
File
DRAFT- November 13, 2009
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
AGREEMENT BETWEEN THE CITY OF OTSEGO, APPELLO GROUP, LLC
AND 21sT CENTURY BANK RELATIVE TO ESCROW FUNDS TO COMPLETE
CERTAIN REQUIRED PUBLIC IMPROVEMENTS TO THE GREAT RVER
CENTRE
WHEREAS, the CITY OF OTSEGO (CITY) has entered into an Agreement and
addendums thereto with APPELLO GROUP LLC (APPELLO) relative to the Plat of
GREAT RIVER CENTRE located within the CITY; and
WHEREAS, said Agreement and Addendums require APELLO to timely complete
public improvements including, but not limited to, bituminous paving and repair work as
well as construction of concrete medians; and
WHEREAS, the CITY has been attempting to have APPELLO complete this work over
the last six months, but the work has not been timely completed; and
WHEREAS, manhole covers were raised in contemplation of the work being completed
this year, and the CITY has documented portions of the street which now need patch
work as a result of the second lift of bituminous not being applied; and
WHEREAS, the CITY has contacted APPELLO and 21 ST CENTURY BANK (BANK)
and indicated that the CITY was prepared to draw on the existing Letter of Credit issued
by the BANK on behalf of APPELLO in order to assure completion of the public
improvements; and
WHEREAS, APPELLO and the BANK have indicated that they would escrow certain
proceeds from a contemplated closing between APPELLO and TWIN CITY
ORTHOPEDIC, and dedicate them to the completion of those most needed public
improvements by a date certain, in lieu of the CITY drawing on the Letter of Credit.
NOW THEREFORE, IT IS AGREED BETWEEN THE PARTIES as follows:
1. In the event that all conditions of the Purchase Agreement are complied with and
the proposed transaction between APPELLO and TWIN CITY ORTHOPEDIC
actually closes, BANK and APPELLO agree that from that transaction
$125,000.00 will be held in escrow by BANK for the benefit of CITY and
specifically to cause repairs to existing roadway, a second lift of bituminous and
construction of concrete medians within GREAT RIVER CENTRE as set forth on
attached Exhibit A, said repairs and improvements to be completed by June 1,
2010.
2. The escrowed funds may be released to make payment for the work if the work is
completed by APPELLO, with written authorization of the CITY. In the event
that APPELLO does not complete or undertake the work, or does not undertake or
complete the work in a timely fashion the escrowed funds shall be released to
CITY upon their request for the specific purpose of completing the designated
work.
3. In the event that the above mentioned transaction, for whatever reason, does not
proceed to closing, or the closing does not occur at such time as to allow the work
to be completed by June 1, neither the CITY nor BANK shall have any
obligations under this Agreement and the CITY may proceed with any and all
other remedies available to it under its Agreements, or by statute or other law,
including draw on the current Letter of Credit.
AGREED to this _ day of November, 2009.
APPELLO GROUP, LLC
By:
Its
21sT CENTURY BANK
Jon Dolphin
Vice President
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
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Tami Loff
From: Ron Wagner [RonW@hakanson-anderson.com]
Sent: Monday, June 07, 2010 8:10 AM
To: Mike Robertson; Brad Belair; Gary Groen
Cc: Andy MacArthur; Tami Loff
Subject: FW: GRC Street Issues
Attachments: image002.gif; image001.gif
Tami,
Can you make copies for tonights meeting?
1101 - il7
lit M91,
I�a�erson
Ronald J. Wagner, CEO
3601 Thurston Avenue
Anoka, MN 55303
Phone (763) 427-5860
Fax (763) 427-0520
From: Tom Brown [mailto:TBrown@terragc.com]
Sent: Monday, June 07, 2010 7:50 AM
To: Ron Wagner
Cc: Bill Christian; Roger Jensen; Todd
Subject: RE: GRC Street Issues
Good Morning Ron
It is my understanding that Bill Christian of Appello is going to the council meeting this evening. I will be talking
with him this morning.
I did receive pricing from Omann Bros for the options that the city wanted to review. As suspected, the cost to
do any of the options is considerably more than what Appello has in escrow ($125,000) and the reason the
cracking has occurred has not been determined.
The cause of the cracking is unknown. It could be caused by lack of traffic as you have suggested. I have
also heard that because the city's mix design it does not provide for the same flexibility as other mixes that use
more RAS (recycled shingles). The only thing we can say is that we are unsure. No geotechnical testing has
been completed to know the cause.
The acceptable alternatives according to the city are as follows:
Option #1
Remove existing base coarse and pave a new 2'/" base coarse and a 1 W wear coarse
Additional cost to remove base coarse and install new base is $130,000
Option #2
Mill existing base coarse to 1" thick. Tack at 0.1 gal/SY. Pave new 2" base coarse on remaining old base
coarse (preferably on a very warm day and roll with rubber tire roller). Tack at 0.05 gal/SY and pave 1 '/" wear
coarse. Saw and seal every 100'
Additional cost to mill base coarse, remove millings, tack, saw and seal is $107,976
Option #3
Least preferable option. Reclaim existing base and inject asphalt oil at geotechnical firms recommended %.
Blade and pack to within 2" of final grade. Pave 2" new wear coarse.
Additional cost to reclaim base, remove excess, inject, grade and compact is $134,112.50
In summary:
- The roads have considerable cracking
- Appello has $125,000 in escrow and is prepared to perform the balance of the paving as discussed last year
- Appello constructed the roads per the City of Otsego's design standards
- The City of Otsego tested and inspected the roads as they were installed
- Appello has paid for all roads, curb and gutter, utilities, bikepaths, sidewalks and lighting that is currently
installed
- The additional cost for the options proposed by the city range from $108,000 to $135,000
Tom H. Brown
Terra General Contractors
d:763.463.0289 c:612.384.5522
From: Ron Wagner [mailto:RonW@hakanson-anderson.com]
Sent: Friday, June 04, 2010 2:50 PM
To: Tom Brown
Subject: RE: GRC Street Issues
Any luck on estimated costs Tom
Ron
LIHkanson
arson
Ronald J. Wagner, CEO
3601 Thurston Avenue
Anoka, MN 55303
Phone (763) 427-5860
Fax (763) 427-0520
From: Tom Brown [mailto:TBrown@terragc.com]
Sent: Friday, May 28, 2010 12:29 PM
To: Ron Wagner; Todd
Cc: Mike Robertson; Gary Groen; Tami Loff; Andy MacArthur; Brad Belair; ddl@planningco.com; Roger Jensen
Subject: RE: GRC Street Issues
Thanks Ron.....1 will provide pricing to Appello and have them forward onto you.
Regarding the meeting on June 7th ..... I will rely on Appello to let me know if they want me there otherwise I
would assume they will be in attendance.
Tom H. Brown
Terra General Contractors
d:763.463.0289 c:612.384.5522
From: Ron Wagner [mailto:RonW@hakanson-anderson.com]
Sent: Friday, May 28, 2010 11:32 AM
To: Tom Brown; Todd
Cc: Mike Robertson; Gary Groen; Tam! Loff; Andy MacArthur; Brad Belair; ddl@planningco.com
Subject: GRC Street Issues
Tom
As stated at the meeting on Thursday, Brad and I find milling and patching of existing deficiencies in the base asphalt
coarse and a 1 Y2" overlay unacceptable. It is our opinions that the existing pavement is too far gone and a fix which is
likely more costly than the $125,000 in escrow is warranted.
Acceptable alternatives that Brad and I discussed are as follows
1) Remove existing base coarse and pave a new 2 %" base coarse and a 1 %" wear coarse
2) Mill existing base coarse to 1" thick. Tack at 0.1 gal/SY. Pave new 2" base coarse on remaining old base
coarse (preferably on a very warm day and roll with rubber tire roller). Tack at 0.05 gal/SY and pave 1
wear coarse. Saw and seal every 100'
3) Least preferable option. Reclaim existing base and inject asphalt oil at geotechnical firms recommended %.
Blade and pack to within 2" of final grade. Pave 2" new wear coarse.
Please have estimates for all three options available to council June 7th. The council has a workshop scheduled but that
will likely be changed to a special meeting to deal with GRC street issues. I would suggest Appello and yourself
attending.
Thanks
Ron
Hakanson
derson
Ronald J. Wagner, CEO
3601 Thurston Avenue
Anoka, MN 55303
Phone (763) 427-5860
Fax (763) 427-0520