6.2. HRSR 03-06-2023
Request for Action
To Item Number
Housing and Redevelopment Authority 6.2
Agenda Section Meeting Date Prepared by
General Business March 6, 2023 Brent O’Neil, Economic Development Director
Item Description Reviewed by
Demolition Contract for 724 Main Street Joshua Mollan, Economic Development Specialist
Reviewed by
Brandon Wisner, Engineering Project Manager
Action Requested
Authorize, by motion, the executive director and chair to execute an agreement, in substantially the same form as
attached, between the HRA and Veit and Company, Inc. (Veit) for demolition of the property at 724 Main Street.
Background/Discussion
Three quotes have been received for the demolition of 724 Main Street, the former Elk River Meats property now
owned by the HRA. The low quote of $64,500 was received by Veit and meets the objectives the HRA has for the
demolition of the property. The scope of work is included in the attached contract.
While this contract will result in the demolition of the property, there are some conditions that may necessitate
change orders during the demolition process. Two of these conditions are related to a non-functioning water shut-
off valve and to the degree the pavers on the south side of the building will be disrupted during the demolition
activity. We have been and will continue to work with Veit to minimize impacts and costs. There are also other
costs incidental to the demolition that are not included in this contract, which include costs for disconnecting
electric utilities and will be billed to the HRA by Elk River Municipal Utilities.
Pending approval, remediation of environmental items would begin as soon as March 7, with demolition beginning
as soon as March 9. The process is expected to take less than two weeks.
Additional quotes were received from New Look and Brenteson, for $107,479 and $172,610 respectively.
Financial Impact
Approval of the contract will commit $64,500 for the demolition and is proposed to be sourced from the HRA’s
fund balance. In the event change orders or additional work is needed, it is anticipated those items would not
exceed $20,000 collectively.
Mission/Policy/Goal
Support downtown and redevelopment.
Attachments
Veit Demolition Contract
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
SEE TERMS AND CONDITIONS
INCORPORATED HEREIN AND ATTACHED HERETO AS EXHIBIT A
Veit & Company, Inc.veitusa.com 14000 Veit Place, Rogers, MN 55374 P: (763) 428.2242
SERVICE AGREEMENT
February 24, 2023
Client: City of Elk River Veit Project No.: 230033
Project Name: Former Elk River Meat Market
Project Location: 724 Main Street Elk River, MN 55330
Scope of Work / Price: Demolition Services $64,500.00
See Veit’s proposal dated February 17, 2023, for additional scope detail (attached hereto as Exhibit B)
Project Schedule: As mutually agreed upon by the parties
Veit & Company, Inc.
______________________________
Title: _________________________
Agreed and Accepted by:
City of Elk River
______________________________
Title: ________________________
Date: _________________________
______________________________
Title: ________________________
Date: _________________________
Date: _________________________
EXHIBIT A
TERMS AND CONDITIONS
PAYMENTS: Client shall pay for all services, materials, and equipment
furnished by Veit within thirty (30) days of the date of Veit's invoice. All
invoices not contested in writing within fifteen (15) business days of receipt
are deemed accepted by Client as true and accurate and are payable in full.
Interest will be charged on all accounts not paid when due at the maximum
rate allowed by law. In the event Client fails to pay Veit all amounts which
become due under this Service Agreement or fails to perform its obligations
hereunder, and Veit refers such matter to an attorney or collection agency,
Client shall pay, in addition to the amounts due, any and all costs incurred by
Veit as a result of such action, including reasonable attorney fees.
RETAINAGE: Client may withhold as retainage zero percent (0%) of the
contract amount.
CHANGE ORDERS: Client reserves the right to make changes to the work
as necessary. If changes are made, fair adjustments to Veit’s price and
schedule shall be made.
CANCELLATION: Client shall pay Veit for all costs of work performed
including material, services, and equipment provided should this contract be
canceled for any reason beyond the direct control of Veit. Cancellation for
convenience of the Client, directives of governmental agencies, non-issuance
of required permitting based upon the proposed program of work, or other
reasons beyond the direct control of Veit shall be reimbursable at actual cost
plus audited overhead and ten percent (10%) profit.
INSURANCE: Veit shall provide at its own expense and maintain during the
term of this Agreement insurance to cover Veit’s activities in connection with
this Project. Such insurance shall provide coverage of the nature and in the
amounts listed below:
a. For claims covered by Workers' Compensation and Employer's Liability,
the amount of statutory limits for any state in which operations are to be
performed.
b. Insurance upon each motor vehicle used by Veit in connection with the
work providing public liability coverage as to such vehicle of vehicles of
not less than $1,000,000 for one injury and $1,000,000 for all injuries in
one accident, and property damage coverage of not less than $1,000,000
applying to any one loss.
c. A comprehensive general liability policy providing bodily injury
coverage, including death for not less than $1,000,000 coverage as to
each occurrence and $1,000,000 aggregate.
Notwithstanding any other provision of this Agreement to the contrary, should
any policy required above be canceled or otherwise terminated before the
completion of the work hereunder, Veit shall exert all reasonable efforts to
procure and provide certificates of such insurance to Client upon written
request. In the event that Veit is unable to obtain the required insurance
coverage on a reasonable basis, then either Veit or Client shall have the right
to terminate this Contract without penalty.
INDEMNIFICATION: Veit will indemnify and hold harmless Client, its
directors, employees, agents and officers, from and against only those claims,
causes of action, liabilities, costs of expenses, including reasonable attorney's
fees, attributable to bodily injury, death or property damage which Client may
incur or which may be asserted against Client and which result from Veit's
solely negligent acts in the performance of this Agreement. In no event shall
Veit's liability under this indemnification provision exceed, either for a single
incident or in the aggregate, the insurance amounts specified in this
Agreement.
SUBCONTRACTORS: Veit may enter into agreements with subcontractors
for performance of services within the scope of the work hereunder; provided,
however, that Veit shall notify Client of the identity of each subcontractor and
the nature of the work to be performed by that subcontractor, and provided
further that Veit shall remain responsible for performance of the work in
compliance with plans and specifications.
CONTRACTUAL RELATIONSHIP: Veit is an independent contractor
and not an agent, servant or representative of Client. Veit’s activities while on
the premises/jobsite shall be as negotiated and set forth in this contract and
under no circumstances shall Veit assume any operations responsibility. It is
the express intent of the parties that Client shall remain the sole operator of
Client’s premises/jobsite.
PLANS & SPECIFICATIONS: Unless otherwise noted in the body of this
document, Client is solely responsible for preparation of plans and
specifications relating to the work to be performed hereunder, and Veit makes
no representations or warranties regarding those documents. Changed
conditions will be negotiated prior to performance of the work.
LIMITED WARRANTY & LIMITS OF LIABILITY
a. Warranty: Veit's sole and exclusive warranty with respect to all work
and labor specified herein is that is shall perform the work in accordance
with plans and specifications. NO OTHER EXPRESS OR IMPLIED
WARRANTY OF ANY KIND IS GIVEN.
b. Exclusive Remedy: All work is warrantied for one year from completion
thereof ("the warranty period"). If within the warranty period Veit
receives prompt written notice form Client that work was defective, Veit,
at its discretion, shall repair or replace defective work or refund all or a
portion of the contract price thereof. The foregoing shall be the Client's
exclusive remedy for defective work. c. Limitation of Liability: IT IS HEREBY SPECIFICALLY AGREED BY AND BETWEEN VEIT AND CLIENT THAT IN NO EVENT SHALL VEIT'S LIABILITY TO CLIENT EXCEED EITHER: (1) THE AMOUNT SPECIFIED UNDER SUBPARAGRAPH INSURANCE FOR A WORKER'S COMPENSATION CLAIM, OR (2) AS TO ALL OTHER LIABILITY, INCLUDING LIABILITIES ARISING OUT OF THE USE OF OPERATION OF MOTOR VEHICLES, LIABILITIES OF THE TYPE NORMALLY COVERED BY A COMPREHENSIVE GENERAL LIABILITY POLICY PROVIDING BODILY INJURY COVERAGE, INCLUDING DEATH, THE SUM OF $2,000,000 IN THE AGGREGATE. d. Exclusion of Damages: VEIT SHALL NOT BE LIABLE TO CLIENT FOR ANY CONSEQUENTIAL, SPECIAL, INCIDENTAL, INDIRECT OR PUNITVE DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS, LOSS OF PRODUCTION OR LOSS OF OPPORTUNITY
APPLICABLE LAW: This Agreement shall be construed, governed, and
interpreted in accordance with the laws of the state where the work is
performed, excluding the rules relating to the choice of law.
DISPUTE RESOLUTION: All disputes shall be litigated and venued in the
county where the work is performed. As a condition precedent to filing suit
the Client and Veit’s Executives in charge of the Project shall first meet in
Minneapolis, Minnesota for at least one day to attempt to resolve issues in
dispute.
PRE-LIEN NOTICE:
(A) ANY PERSON OR COMPANY SUPPLYING LABOR
OR MATERIALS FOR THIS IMPROVEMENT TO
YOUR PROPERTY MAY FILE A LIEN AGAINST
YOUR PROPERTY IF THAT PERSON OR COMPANY
IS NOT PAID FOR THE CONTRIBUTIONS.
(B) UNDER MINNESOTA LAW, YOU HAVE THE
RIGHT TO PAY PERSONS WHO SUPPLIED LABOR
OR MATERIALS FOR THIS IMPROVEMENT
DIRECTLY AND DEDUCT THIS AMOUNT FROM
OUR CONTRACT PRICE, OR WITHHOLD THE
AMOUNTS DUE THEM FROM US UNTIL 120 DAYS
AFTER COMPLETION OF THE IMPROVEMENT
UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY
PERSONS WHO SUPPLIED ANY LABOR OR
MATERIAL FOR THE IMPROVEMENT AND WHO
GAVE YOU TIMELY NOTICE.
FORCE MAJEURE: Except with respect to payment obligations under this
Agreement, neither party shall be liable for delays or failure to perform
resulting from acts beyond its reasonable control, including, without
limitation, any act of God or a public enemy or terrorist, act of any military,
civil or regulatory authority, pandemic or public health emergency, civil
unrest, change in any law or regulation, fire, flood, earthquake, storm or other
like event (each, a 'Force Majeure Event'). Within 24 hours of the occurrence
of a Force Majeure Event, the affected party shall notify the other party of the
occurrence in writing. In the event of a Force Majeure Event, each party
agrees to take reasonable steps to minimize delay in performance and mitigate
their effects but shall have no liability with respect thereto.
ENTIRE AGREEMENT: This Agreement constitutes the entire agreement
and understanding between the parties with respect to the subject matter
hereof and it supersedes and replaces all discussions, communications,
undertakings and agreements between the parties with respect to this subject
matter. This Agreement shall not be modified or amended except as set forth
in a written amendment to this Agreement, signed by both parties.
I/Ell
Brent O'Neil
City of Elk River
Former Elk River Meat Market
Location: 724 Main Street Elk River, MN
Date: February 17, 2023
Estimate: Total Demolition
$64,500.00
Clarifications
Veit is not responsible for the restoration of the cobblestone sidewalk.
Veit is to submit disposal paperwork for all asbestos and regulated waste removed from building.
Veit will work with the City of Elk River in regards to the disconnection of power for building along with
dealing with existing pole NW of the structure
The Trees directly to the east on the building are to be removed.
Seeding blanket to be a temporary coverage for erosion control. No final seeding included.
500 LF of 6" chain link temporary panelized construction fencing can remain in place for 14 Days.
INCLUDES
Mobilization (Assuming one)
MPCA 10 Permit
City Demolition Permit
Water and Sewer Disconnects
Asbestos Abatement
Site Removals
Supervision/Coordination
Backfilling building footprint and rough grading
Building Removal including Footing and Foundations
Legal Disposal and Recycling of Materials at approved facilities
Regulated Materials Removal (Bulbs, Ballasts, Mercury Switches, Door Closures, Freon, Etc.)
Updates price includes 6' fence and seeding with hay-mulching.
EXCLUDES
City Permits for Parking Spots, Sidewalk, Etc.
Utility Disconnects
Saw-Cutting
Erosion Control (Silt Fencing, Rock Entrance, Inlet Protection, Etc.)
Construction/Safety Fencing/ Site Security
Contaminated Soils
Veit & Company, Inc. Lauren Osborn, Estimator M: 612 834 9655 La uren.Osborn@VeitUSA.com 14000 Veit Place.
Rogers, MN 55374
Dewatering
Pe rsona l Property Removal
Engineered Demolition Plan
Ro ad Restriction s
Bond (Add 1%)
Notes: This proposal is good for 30 days.
If y ou have any questions , pl ease call me at: 612 -8 34 -9655
Res pectfully,
Lauren Osborn
Ve i t & Company, Inc. I
~----
L a ur en Osborn, Estimator M: 612 83 4 965 5
I/Ell
Lauren .Osborn@VeitUS A .com 1 4000 Veit P l ace .
Rogers. MN 5537 4