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HomeMy WebLinkAbout1988 01-11 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER JANUARY 11, 1988 (7:05 p.m.) 1. Call to Order 2. Roll Call 3. Approval of Minutes — December 14, 1987 4. Resolutions: a. Designating Depositories of EDA Funds b. Approving Ond (1) Brooklyn Center Economic Development Authority Grant c. Accepting and Approving Contract with Heskin Resource Group, Inc. 5. Adjournment MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION DECEMBER 14, 1987 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Dean Nyquist at 7:06 p.m. ROLL CALL President Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis. Also present were EDA Director Gerald Splinter, Finance Director Paul Holmlund, City Engineer Henry Spurrier, Director of Planning and Inspection Ron Warren, Chief of Police Jim Lindsay, City Attorney Charlie LeFevere, HRA Coordinator Brad Hoffman, and Personnel Coordinator Geralyn Barone. APPROVAL OF MINUTES - NOVEMBER 23 1987 There was a motion by Commissioner Lhotka and seconded by Commissioner Scott to approve the minutes of the November 23, 1987, Economic Development Authority meeting as submitted. The motion passed unanimously. The HRA Coordinator noted the minutes should reflect that the Finance Director was appointed Assistant Treasurer of the EDA and the HRA Coordinator was appointed Secretary of the EDA. The Personnel Coordinator said this action was taken at the November 9, 1987, EDA meeting. RESOLUTION NO. 87 -10 Member Gene Lhotka introduced the following resolution and moved its adoption: RESOLUTION APPROVING THREE (3) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANTS The motion for the adoption of the foregoing resolution was duly seconded by member Rich Theis, and the motion passed unanimously. DISCUSSION ITEM: EARLE BROWN FARM COMMITTEE RECOMMENDATION The HRA Coordinator said the Earle Brown Farm Committee has been considering uses for the Earle Brown Farm for several years now. He reviewed the suggested uses recommended for these buildings. The HRA Coordinator said the Earle Brown Farm Committee is recommending the hippodrome be used as a multipurpose facility with emphasis on banquets and trade shows, with a variety of other activities in addition to these. He noted this will account for a major portion of the budget. The HRA Coordinator said it is anticipated that the stable will be used for banquet kitchen facilities, restaurant kitchen facilities, and storage space. He added the entryway to the stable may even be used as a small restaurant if feasible. If not, it could be used for meetin g space. ace. The HRA • Coordinator said the H and G barns would be useful as office space. 12 -14 -87 -1- t - The HRA Coordinator said the housing complex, including the guest house, farm house, garage, and main house, is recommended for use as a bed and breakfast facility. He said the general public should have access to the Earle Brown Farm, and the housing complex would allow for that. The HRA Coordinator said this area is of particular interest to the Brooklyn Historical Society because it would like to finish off one of the rooms in a 1920's or 1930's era decor. He pointed out that in addition to providing opportunity for the public to see the farm, the bed and breakfast facility could be used for small business luncheons in a quiet setting. The HRA Coordinator said the D barn and blacksmith shop uses will be a function . of the budget. He noted there is a strong desire on the part of senior citizens to dedicate space for a senior drop -in center and suggested the uses of these buildings be reviewed more closely once the budget falls in place for the rest of the buildings. The HRA Coordinator said there were no strong recommendations for the uses of the cook shed and bunk house, although the buildings should be retained. He noted the bunk house could be part of the bed and breakfast facility or used by the Brooklyn Historical Society or the seniors. The HRA Coordinator referred the Council to his memorandum noting the staff concerns regarding use of the space, especially to the extent that the space may be used for nonrevenue generating activities. He said the more this is done, the more the EDA will have to subsidize the budget of the farm with a general levy. He added if the G or H buildings are used for nonrevenue generating activities, the EDA will have to seriously consider how this will affect paying for the project. Commissioner Hawes asked if the water tower is going to be retained, and the HRA Coordinator responded affirmatively. He said the height of the water tower may be raised to act as a billboard for the farm. President Nyquist recognized Dr. Duane Orn, chairman of Earle Brown Farm Committee. He said the design and development team is in place and the citizens' committee has a slightly different view than staff on the uses of the buildings. Dr. Orn said the committee feels the hippodrome should have multiuse activities such as banquets and trade shows. The stable could be used as a kitchen facility and a restaurant, as well as some office space. He said the two barns could be used for office space, and the houses would be used for a bed and breakfast facility. Dr. Orn suggested one of the barn buildings have some space reserved for the Chamber of Commerce or tourism bureau, for which rent could be paid at a market rate. However, he suggested some preferential invitations for use may be given to civic groups like the Lions Club or the Rotary Club. He said the Brooklyn Historical, Society should also have some designated space. Dr. Orn said the senior citizens should have some identified area, whether it be office space for a senior activities coordinator, a drop -in lounge, or something to serve a large number of people at one time. He suggested the outside barn be moved closer to the other buildings and use it as best as can be. Dr. Orn noted he understands some changes may occur as the project develops and understands some of the differences in opinion with staff. However, the committee is prepared to work with staff to iron out the differences. Commissioner Theis asked what specific uses the G and H barns could be for other 12 -14 -87 -2- than office uses. Dr. Orn said - it would be nice if some of the service organizations could be located in these buildings. He added none of the service organizations have been notified suggesting this yet, and said the activities of the civic groups may be enhanced if the groups are brought together in a general area. The HRA Coordinator said the action from the EDA tonight would be to accept the program discussed this evening and forward it on to the architect. There was a motion by Commissioner Scott and seconded by Commissioner Hawes to adopt the staff's report on the uses of the Earle Brown Farm. The motion passed unanimously. RESOLUTIONS (CONTINUED) RESOLUTION NO. 87 -11 Member Gene Lhotka introduced the following resolution and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS The motion for the adoption of the foregoing resolution was duly seconded by member Bill Hawes, and the motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Hawes and seconded by Commissioner Theis to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 7:34 p.m. President 12 -14 -87 -3- Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION DESIGNATING DEPOSITORIES OF EDA FUNDS BE IT RESOLVED by the Economic Development Authority (EDA) of Brooklyn Center, Minnesota, that the First Brookdale State Bank be and is hereby designated as the depository for the funds of the Economic Development Authority of Brooklyn Center, Minnesota. BE IT RESOLVED that the following named banks are hereby designated additional depositories to be used for investment purposes:. First National Bank of Minneapolis F &M Marquette National Bank of Minneapolis Norwest Bank Minneapolis First National Bank of St. Paul American National Bank of St. Paul First Western Bank Camden Norwest Bank First Minnesota Savings & Loan Association Midwest Federal Savings & Loan Association Twin City Federal Savings & Loan Association The treasurer or assistant treasurer is authorized to deposit EDA funds in the named depositories to the extent that repayment is guaranteed by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation and such additional funds not to exceed the amount of 90% of collateral pledged to the EDA, and approved by the EDA, by said depository. BE IT FURTHER RESOLVED that the persons authorized by the EDA to act for the EDA in any of its business with the depository are any persons holding office from time to time as treasurer and assistant treasurer. A c s r 11 heck drawn .upon an account of the EDA shall be signed by both of the above designated persons. BE IT FURTHER RESOLVED that the treasurer is Dean A. Nyquist and the assistant treasurer is Paul W. Holmlund. - Date President The motion for the adoption of the foregoing resolution was duly seconded by member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANT WHEREAS, the Brooklyn Center Economic Development Authority established a Home Rehabilitation Grant Program to assist low and moderate income individuals in the maintenance and repair of their homes; and WHEREAS, the Brooklyn Center Economic Development Authority has received one (1) application from an eligible individual to receive grant assistance; and WHEREAS, an inspection by the City of Brooklyn Center has determined that the work is necessary and appropriate under the Brooklyn Center Economic Development Authority Grant Program; and WHEREAS, the estimated cost of the proposed grant application is estimated at $8,250. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Economic Development Authority that: 1. The Brooklyn Center Economic Development Authority does approve the one (1) housing rehabilitation g rant application as recommended by the staff. 2. That the work be performed as recommended in the confidential memorandum dated January 8, 1988, and that the applicant be directed to obtain the necessary bids for staff review and approval. 3. The project shall not exceed the grant limit of $8,250 per house. Date President The motion for the adoption of the foregoing resolution was duly seconded by member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. MEMORANDUM TO: Gerald G. Splinter, City Manager FROM: Brad Hoffman, EDA Coordinator DATE: January 8, 1988 i SUBJECT: EDA Rehabilitation Grant I have received one application for a rehabilitation grant. Attached are the.recommendations for work to be performed on the home. I recommend approval by the EDA. The information contained in this memo is private and not available to the general public. 4 y r. URBAN HENNEPIN COUNTY HOUSING REHABILITATION GRANT PROGRAM PROPERTY INSPECTION REPORT APPLICANT INSPECTION Name Sharon L. Dahl Staff Address 6807 T o l edo A North Date Brookl Cente M 55429 Time Phone 561 -0484 Inspector Building Age: Garage: NOTICE TO CONTRACTORS All successful bidders awarded a contract to perform H.R.A. Grant work in the City of Brooklyn Center shall acquire permits for each specific phase of work to be completed i.e. Building, Plumbing, Heating and Electrical). These permits shall be a "No Charge" permit with the exception of the State surcharge fee. Contractors are also advised to refer to the Table of Contents for easy reference of worm to be accomplished with the grant. Example:. Part 1 0 would indicate are item to be bid on the grant. Refer to Page 1 for complete details of Item 1. �l U 1. �?�, i TABLE OF CONTENTS 4 RT PAGE 1 ❑ HANDRAIL - GUARDRAIL: $ 1 Where required, Height of, Baluster Spacing and Installation, Specification for 2 ❑ INTERIOR - EXTERIOR STAIRS $ 1 Repair or Replacement of, Rise and Run and Installation, Specification for 3 ❑ FOUNDATION $ 2 Repair of —Tuck Pointing Insulation Installation and Specification for 14 4 ❑ CRAWL SPACE: $ 2 Insulation of and Vapor Barrier, Installation for 5 Q BASEMENT FLOOR $ 2 Repair of 6 (_] POST AND BEAM: $ 3 Repair of, Replace 7 ❑ AC CESSIBILITY IMPROVEMENT $ 3 For Barrier Free and Handicapped Persons ❑x ELECTRICAL $ 3 Upgrade Service, Unprotected Conductor,Washer, Dryer, Hanging Receptacle-, Furnace and Kitchen Circuits Wall Receptacle, Ground Fault 4 9 ❑ ELECTRICAL MAST: $ 4 Relocation of 10 Q MECHA NICAL: $ 4 Enclosed Space Ventilation, Replace Furnace Thermostat, Chimney, Registers, Ductwork 11 Q PLUMBING: $ 5 Water Heater Replacement, Cold - Co Water Shut-off, Gas P � a Valve T.P.R. Valve, Vent Connector, Dryer Gas Valve, Dryer 6 Ventilation, Open Gas Device,Well Abandonment, Plugged Sewer, Water Softener, Kitchen Sink Vent, Trap, Water Supply, Lavatory Vent, Trap, Water Supply, Water Closet and Sealing Gasket, Bathtub Vent, Trap, Wall Enclosure, Laundry Tub Vent, Trap, Floor Drain Plumbing Fixture Material and Performance Specifications 7 for, Drain Tile, Main Water Line Septic System, City Sewer g -1- , TABLE OF CONTENTS PART PAGE FRI CEILINGS $ 8 Repair of 13 0 MALLS: $ 8 Repair of 13 Oiling and Mall Performance and Material Specifications for 9 -10 14 0 FINIS! FLOORS: $ 10 -11 Replacement of, Performance and Material Specifications for 15 EXTERIOR DOORS: $ 11 Repair - Refinish of, Weather Sealing, and Replacement of, Performance Specification for 16 EXTERIOR STORM DOORS: $ 11 Repair - Rep acement of, Material Specification for 17 INTERIOR BOORS $ 12 Repair - Replacement of, Performance and Material Specifications for 18 0 'EXTERIOR STORM AND SCREEN WINDOWS $ 13 Repair r - R p eplacement of Material Specification for U - OUSE WINDOWS: 13 14 Repair - Refinish of, Weather Sealing of, Replacement of,, Material and Performance Specification for 20 INSULATION: $ 14 -15 Attic, Wall,-Foundation, Rim Joist Installation, Material and Performance .Specification for, Code Requirement 21 VENTILATION: $ 15 Provision of Attic, Kitchen, Bathroom, Repair of, Material and Performance Specification for 22 n EXTERIOR SIDING: $ 16 Installation, Repair or Replacement of, Soffit and Facia, Window, Door and Cornice Trim, Material and Performance Specification for 23 [] EXTERIOR PAINTING: $ 17 Materia an Performance Specification for 24 GUTTERS AND DOWNSPOUTS: $ 17 Provision for and Replacement of, Material and Performance Specification for ROOFING: $ 18 R — ep - Replacement - Removal of, Material and Performance Specification for -2- TABLE OF CONTENTS PART PAGE 26 CHIMNEY Repair - Reline - Replacement of $ 5 -19 27 [ KITCHEN & BATHROOM CABINETS $ 19 28 SMOKE DETECTORS Installation of $ 20 29 GRADING Material and Placement Specification for, Seeding and $ 28 Sodding of 30 EXTERIOR CONCRETE WORK Replacement - Repair of, Sidewalks, Garage Apron, Etc. $ 28 31 MISCELLANEOUS-. $ 28 TOTAL $ .3- Sharon L. Dahl 6807 Toledo Avenue North 1. INSTALL HANDRAIL: ❑ Basement Stair ❑ Front Stair ❑ Rear Stair ❑ Upper Level Stair One handrail shall be installed on stairways 44" or less in width, except that stairways open on one or both sides shall have handrails provided on the open side or sides. Handrails shall not be less than 30 nor more than 34 in height above stair tread. Unenclosed floor, open landings and ramps at a height of over 30" from floor or grade shall have a guardrail. Guardrail shall not be less than 36" in height and shall have intermediate rails or an ornamental pattern such that a sphere 6 in diameter cannot pass through. Materials and finish shall be specified in the Scope of Improvements and installation shall be in compliance with the State Building Codes. p g [( Addition: 2. INTERIOR _ EXTERIOR STAIRS Q Repair 1 Basement ❑ Second Storey Q Front Q Rear Entrance Stairs ❑ Replace ❑ Basement ❑ Second Storey ❑ Front Q Rear Entrance Stairs Stair riser to be a minimum of 4" to a maximum of 7 " high. Stair tread to be a minimum of 11" wide. Wood stair stringer shall be of 2 x 10 nominal stock. Exterior stairs can be of treated stock or concrete having footings 42" minimum below grade. .n Addition: -1- 3. REPAIR FOUNDATION: [� All joints shall be completely filled with mortar. D Tuck pointing shall be done only after the joints have been raked out to a minimum depth of 1/2" and wetted. Q Addition: 4. CRAWL SPACE: ❑ Either insulate perimeter foundation wall to R -11 or floor to a minimum of R -lg. A 6 mil. polyethylene plastic vapor barrier shall be installed over dirt area and be weighted by sand, rocks or other non -wood materials. Addition: 5. BASEMENT FLOOR: [� Patch holes and large cracks. Addition: -2- b. POST AND BEAM F Repair or replace as marked. C] Addition: 7. ACCESSIBILITY IMPROVEMENTS Refer to Minnesota State Building Code Chapter 55 for accessibility architecture specifications. The type and scope of accessibility improvements shall be at the discretion of the Grant Administrator. Addition: 8. ELECTRICAL: Install new U.L. certified 100 amp service panel and circuit breakers. E Relocate unprotected plastic coated conductors to center of wood joist or in metal protective tubing located in on basement ceiling in laundry, family, a nd storage rooms 11 Provide grounded receptacle for: ❑ Washer &Dryer on a separate 20 amp circuit. Q Water Softner. Other Replace hanging light or receptacle with porcelain fixture mounted on an approved box and properly grounded. Fl Provide separate 15 amp circuit to furnace. F Provide separate 20 amp circuit to kitchen countertop work area receptacles. -3- ELECTRICAL CONTINUED ❑ Add wall receptacle in; jo kitchen; ❑ in dining room; ❑ bedroom ❑ bedroom ❑ bedroom ❑ bedroom ❑ living room❑ bathroom ❑ with ❑ without ground fault. ❑ laundry room 0 Addition: properly wire ceiling light in basement family room (fixture by owner) and laundry room 9. ELECTRICAL MAST; ❑ Relocate ❑ Other Addition: ALL ELECTRICAL WORK SHALL BE IN COMPLIANCE TO THE NATIONAL ELECTRICAL CODE. 10. MECHANICAL: ❑ Provide ventilation of enclosed furnace space. ❑ Provide heat loss calculation of dwelling and install new heating manufacturer's instructions capable to meet the heat loss. The minimum AFUE shall be listed at 80% and shall include damper efficiency. New appliance shall be AGA or UL listed and orsat tested. • -4- Replace gas valve with approved lever handle gas valve or ball valve ❑ Replace vent connector from furnace to chimney with 26 gauge galv. sheet metal vent materials. (bottom of chimney only) Provide combustion air ❑ Provide set back thermostat. ❑ Reline existing Class B Chimney to expel water heater or other gas appliance combustion gases if new heating appliance is vented through the side wall. Remove ❑ Reline existing Class B Asbestos Chimney. ❑ .Add warm air register in ❑ Add return air register in Add Duct work Addition: clean u;Qn connector and service and clean furnace, provide chimney cap ALL MECHANICAL WORK SHALL BE IN COMPLIANCE WITH STATE MECHANICAL CODES. 11. PLUMBING ❑ Install new gallon energy miser water heater having AGA or UL listing complete with necessary gas piping tested for leaks, new lever handle gas valve or ball valve, new vent connector sealed and secured at all joints, new temperature pressure relief valve with 3/4 overflow tube extending to 6 above finished floor. Water heater shall be warranted for five years. ❑ Install cold water shut off valve on existing water heater. ❑ Install approved gas valve on existing water heater. -5- i PLUMBING continued ❑ Install temp., pressure, relief valve on existing water heater. Install new vent connector on existing water heater. Install new approved gas valve on gas dryer. ❑ Vent gas dryer to outside air. ❑ Plug or cap open gas valve or fitting located at or near ❑ Disconnect existing well water and reconnect water service to City water with meter and reconnect electrical ground to City side of water meter. Well to be properly abandoned, inspected and approved by the State Health Department or City Sanitarian. ❑ Rout out main house sewer and clear stoppage. ❑ Repair or replace inoperable water softener. ❑ Install new kitchen sink vented to outside air. ❑' Install new kitchen sink water supply tubes and valves. ❑ Install new kitchen sink trap. ❑ Install new lavatory sink vented to outside air. ❑ Install new bathroom lavatory water supply tubes and valves. ❑ Install new bathroom lavatory trap. ❑ Install new bathroom water closet complete with seat and shut off valve. ❑ Install new water closet setting seal gasket. [j Install new bathtub vented to outside air. D Install new bathtub waste trap. main floor ❑ Install new bathtub wall enclosure and shower curtain rod. ❑ Install new laundry tub vented to outside air. ® Install new laundry tub waste trap. ❑ Floor Drain ❑ Inoperable ❑ Install Other Replace faucet on kitchen sink -6- PLUMBING continued New kitchen sink shall be 33 x 22 self - rimming, unless otherwise specified in the Scope of Improvements. Sink shall be stainless steel or cast iron and faucets shall be either single lever or two handle. a. Garbage disposal is only an acceptable work item in these two circumstances. ❑ 1. reinstallation of existing disposal when installing a new sink. ❑ 2. removing and disposal. ❑ New bathtub shall be cast iron, fiberglas or steel. Faucets shall either be single lever or two handle. Color selection shall be limited white unless specified to match existing color. Installation of a fiberglas tub insert is at the discretion of the Grant Administrator. ❑ New lavatory shall be wall -hung or with vanity. Trap shall be .17 gauge. Color selection shall be limited to white unless specified to match existing color. Refer to Carpentry section for dabinet specification. ❑ New water closet shall be viterous china with close coupled tank, include seat and anti- siphon ballcock. Color selection shall be limited to white unless specified to match existing color. ❑ New laundry tub shall be fiberglas and securely attached to wall or free standing. Faucet shall reade or with a vacuu m 11 be stainless steel or brass type and nont d YP breaker. �] Provide basement interior perimeter wall drain tile system and floor sump pump. Sump pump shall discharge to an exterior french drain or City storm sewer. French drain shall be located a minimum of ft. from foundation wall and be filled with a minimum of cubic feet of 3/4 stone. Stone shall be topped with sod or reseeded to match existing landscape. [� Addition: ❑ Provide Municipal Water - House connection to municipal water line shall entail a bid specifying municipal tap -in fee, total length and cost per foot, location and permit. Connect to house supply lines, patch any unnecessary holes incurred where water line enters house, repair any necessary street damage, back fill and mound to allow settlement to previous ground level. Seeding or sodding the ground to match existing or blend in with the adjoining and surrounding work shall be at the discretion of the Grant Administrator. Addition: -7- I PLUMBING continued ❑ Provide Septic Sewage System -System shall be specified in the bid and include drawing. Installation shall include testing and permit costs. Connect to house drainage lines, provide reasonable protection to lawn, driveways, etc., back fill and mound to allow settlement to previous ground level. Seeding or sodding the ground to match existing or blend in with the adjoining and surrounding work shall be at the discretion of the Grant Administrator. ❑ Addition: I ❑ Provide Municipal Sewer - House connection to municipal sewer line shall entail a bid specifying municipal tap -in fee, total length of line and cost per foot, location and permit. Connect to house drainage lines, patch any unnecessary holes incurred where line enters house, repair any necessary street damage, fill existing septic tank(s) with dirt and back fill and mound to allow settlement to previous ground level. Seeding or sodding the ground to match existing or blend in with the adjoining ng and surroundin g work. ❑ Addition: i ALL PLUMBING WORK SHALL BE IN COMPLIANCE WITH THE STATE PLUMBING CODE 12. CEILINGS (See General Specification) ❑ Repair Ceiling in ❑ Kitchen ❑ Dining room ❑ Livingroom ❑ Bathroom ❑ Bedroom ❑x front Bedroom F] Bedroom ❑ Bedroom ❑ Basement ❑ Basement ❑ Closet b 13. WALLS 3 (See General Specification) Repair Wall in ❑ Kitchen ❑ Dining room ❑ Livingroom [:]Bathroom ❑ Bedroom ❑ Bedroom [] Bedroom ❑ Bedroom ❑ Basement ❑ Closet of -8- WALLS continued ❑ Wall and Ceiling Repair General Specification: 1. Wherever existing walls or ceilings are to be repaired, the damaged and loose material shall be completely removed and new material shall be sized and installed to match and blend in with the adjoining and surrounding work. All repairs shall be properly prepared to receive the finish application. 2. Plastering - New plastering work shall be installed in compliance with the State Building Codes. 3. Wall Board - shall be installed in compliance with the State Building codes. 4. Perforated Tape Mix - shall comply with the recommendations of the manufacturer. A minimum temperature of 55 degrees Fahrenheit shall be maintained in the room where work is done until the cement is completely dry. 5. Perforated Tape Application - Follow manufacturer's directions. a. Over Joints the tape shall be embedded in cement and covered with a thin layer of cement. A second and third coat shall be applied. Each coat shall be dry before applying the next coat. Each coat shall be featheredged and extended beyond the previous coat (approximately 2 The finish coat shall be sanded lightly and any imperfections filled in prior to any painting and decorating. b. Check to see that all nails have been driven so that their heads are below the surface of the board leaving a dimple in the surface without breaking the paper. Cover the nails dimple with three applications of cement allowing time to dry between each coat. The final coat shall be sanded lightly before application of paint or other decoration. c. Inside corners shall be reinforced with tape embedded in cement finished as specified "Over Joints ". d. Outside corners shall be protected by wood moulding, metal moulding or metal corner reinforcement. Metal corner reinforcement shall be finished with two coats of cement as specified. 6. Waterproof gypsum board shall be used in areas specified in the State Building Code. Install water resistant wall board base in the bath and shower enclosure, and apply wall board with long edge horizontally over the tub, allowing 1/4" space between the board and tub. 7. Adhesive is an acceptable bonding material. Adhesive shall be specified according to usage and location and applied in strict compliance with the manufacturer's specifications. -9- WALLS continued 8. Paneling installation shall be 3/16" prefinished paneling of a medium quality installed as per manufacturer's recommendations. Owner shall have choice of paneling color and style. 9. Furring strips - New ceiling shall be installed over 1" x 3" furring strips, 12" on center. When ceiling butts to wood or paneled walls, 3/4 to 1 112 cove moulding shall be installed along edge. New walls shall be installed over 1 x 2 furring strips, 16 on center. Any existing baseboard, window or door trim shall be removed and reinstalled or replaced with new trim over new wall material, unless otherwise specified in the Scope of Improvements. New work shall be level and plumb with adjoining and surrounding work. ❑ Addition: 14. FINISH FLOORING Replace Floor Covering in [] Kitchen ❑ Diningroom ❑ Livingroom ❑ Bathroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Basement ❑ Closet of 1. Existing wood flooring shall be repaired to match existing or blend in with the adjoining and surrounding work. 2. Resilient flooring shall be sheed vinyl or vinyl asbestos tile minimum thickness 1/16 Tile shall be medium quality and laid inexact accordance with the manufacturer's specifications. Owner to select color and pattern from readily available selection. 3. Carpet shall be a color and pattern from readily available selection of medium quality and priced carpet. 4. A finished wood, vinyl or metal moulding along edge of flooring shall be installed as part of the finish flooring installation. -10- FLOORING continued 5. Plywood used as subfloor shall be a minimum of 1/2" thick, nailed to joist spaced 16" on center along intermediate members, installed with outer plies at right angles to the joists and staggered so the end joists in adjacent panels bear on different joists. 6. Underlayment shall be 1/4 structural grade plywood, particle board or untempered hard board placed with smooth side up. Addition: 15. EXTERIOR DOORS u Repair and Refinish: ❑ Front Door ❑ Rear Door [] Side Door ❑ Garage Door u Weather Seal: ❑ Front Door ❑ Rear Door ❑ Front Storm Door ❑ Rear Storm Door i Replace: Q Front Door ❑x Rear Door ❑ Garage Door All exterior doors shall be solid core wood or insulated steel and complete w' ple e ith hardware, strike plat and lock set. Installed doors shall be prehung or sized to fit frame complete with stops, weatherstripping and jambs. After trimming and fitting of door, all edges shall be finished to match existing or blend in with the adjoining and surrounding work. 'A door bumper and threshold are included on all exterior doors. 16. EXTERIOR STORM DOOR [] Repair: ❑ Front Storm Door ❑ Side Storm Door © Replace: ❑ Front Storm Door ❑ Side Storm Door Storm doors shall be solid core aluminum or wood with storm and screen inserts and complete with hardware and strike plate. Installed doors shall be sized to fit frame. All edges of wood storm shall be finished to match existing or blend in with the adjoining and surrounding work. -11- 17. INTERIOR DOORS ❑ Repair Door to: Basement ❑ Bathroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Closet in Replace Door To: Basement ❑ Bathroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Closet in Interior doors shall be hollow core or panel and complete with hardware and stri e plate. Installed doors shall be prehung or sized to fit frame complete with stops and jambs. After trimming and fitting of door, all edges shall be finished to match existing or blend in with the adjoining and surrounding work. A door bumper is included on all interior doors. Bathroom door shall be provided with "privacy" lock set. ❑ Addition: -12- 18. EXTERIOR STORM AND SCREEN WINDOWS ❑ Repair ❑ Replace [ Basement ❑ Kitchen E: Diningroom Livingroom ❑ Bathroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom Storm windows shall be aluminum combinations of medium quality, unless otherwise specified in the Scope of Improvements. 19. HOUSE WINDOWS (J Repair and Refinish Windows in: ❑ Basement ❑ Kitchen ❑ Diningroom J Livingroom E Bathroom ❑ Bedroom ❑x front Bedroom ❑ Bedroom ❑ rear Bedroom Repair of windows or replacements of frames, sills, sash, trim and hardware shall match existing work in wood, design, dimensions and finish, unless otherwise specified in the Scope of Improvements. Where sash counter balances are to be removed, the area must be insulated properly. Friction guides are acceptable as substitutes. Cotton. cord replacement is acceptable. A positive locking device shall• be• installed on all windows. All broken glass shall be replaced with new glass, matching existing in size and design and properly reglazed. All excess material shall be removed and all glass left clean. Weather Seal Windows in: ❑x Kitchen ❑x Diningroom Q Livingroom ❑x Bathroom front Bedroom 0 rear Bedroom ❑ Bedroom ❑ Bedroom ❑ Basement Caulk and weatherstrip around all primary door and window frames, window panes or other locations that lead to an unheated space or which calls for a seal and watertight job. Materials shall be of standard brands and application shall be in exact accordance with the manufacturer's specifications. p ications. -13- Replace Window in: a Kitchen ❑ Diningroom ❑ Livingroom ❑ Bathroom ❑t Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Basement Openings of new window units shall be framed to provide a rigid enclosure for the installation of windows. Frames shall be set plumb, level and square within clearance limits. New windows shall match the adjacent windows in design, glass, material and finish, unless e otherwise specified � in the Scope of Improvements. Installed windows shall be weatherstripped, left clean, tight and weatherproof. ❑ A positive locking device shall be installed on all windows. Installed below grade bedroom window used as an excape exit shall have a opening size of not less than 5.7 sq. ft. with a minimum of 24" depth and 20" width. The interior sill height shall not be more than 48" from floor. Exterior of window shall be cleared for exit and when an areawell is installed it shall be of treated wood or galvanized metal. ❑ When a bedroom window unit is replaced, the new unit shall be sized to meet the requirements of the State Building Codes. Q Addition : install window well at rear egress window, match south side 20. INSULATION Q Insulate attic space to meet a minimum R -38 rating and have a vapor barrier, where accessible. Air chutes shall be installed where there is soffit venting. Provide protection around all recessed lights, junction boxes and chimney. Access opening shall be sized a minimum of 22" x 30 ", framed and insulated. [] Insulate exterior walls to a minimum of R -11. Drill holes and blow in insulation between wall studs approximately every 16" on center and below each fire stop. Holes shall be patched to match existing or blend with adjoining and surrounding work. 0 Insulate exterior foundation with rigid insulation of R -11 to above grade and extend insulation 2' below grade and cover insulation with a non - combustible material. Foundation insulation shall be at the discretion of the Grant Administrator. -14- INSULATION continued ❑ Insulate accessible area rim joist to a minimum of R -19 with vapor barrier facing warm side. Q Addition: Repair window on living room south (won't open), repair sill on kitchen west window (outside) 21. VENTILATION Provide attic ventilation per Uniform Building Code as follows: Ventilation - where determined necessary by the building official due to atmospheric or climatic conditions, enclosed attics and enclosed rafter spaces formed where ceilings are applied direct to the underside of roof rafters shall have cross ventilation for each separate space by ventilating openings protected against the entrance of rain and snow. The net free ventilating area shall be not less than 1/150 of the area of the space ventilated, except that the area may be 1/300, provided at least 50% of the required ventilating area is provided by ventilators located in the upper portion of the space to be ventilated at least three feet above eave or cornice vents with the balance of the required ventilation provided by eave or cornice vents. The openings shall be covered with corrosion- resistant metal mesh with mesh openings of 1/4 in dimension. Provide kitchen ventilation - Exhaust Fan - kitchen without means of natural or below minimum requirements of ventilation shall be equipped with a mechanical exhaust fan. Installation shall include mounting fan on ceiling, venting through the roof or exterior wall with cap, insulating vent in unheated space and wiring on a separate wall switch. ❑ Repair kitchen ventilation. ® Provide bathroom ventilation - Exhaust Fan - Bathroom without means of natural or below minimum requirements of ventilation shall be equipped with a mechanical exhaust fan. Installation shall include mouting fan on ceiling, venting through the roof or exterior wall with cap, insulating vent in unheated space and wiring on a separate wall switch. ❑ Repair bathroom ventilation. ❑ Addition: -15- 22. EXTERIOR SIDING [ Repair or replace all rotten boards and nail down all loose boards or shingles prior to receiving new siding. Side walls shall be furred out if necessary to make walls level, plumb and free from waves, buckles and sags. Installation shall be in strict compliance with the manufacturer's specifications. [] Existing brick work shall be repaired to match existing or blend in with the adjoining and surrounding work. Fl Reside exterior with .024 gauge, nominal thickness, insulated type aluminum of medium quality or equal. Color selection by owner. Installation shall include window J channel, door channel, inside and outside corners, starter strip, finish mould and caulking. Backing shall be installed under siding and be of proper thickness. All nails and rivets shall be properly secured. Staples shall not be used for installation. M Cover all window, door trim and sills with baked enamel aluminum, minimum .019 gauge. Color selection by owner. Lap - Siding shall be minimum 7/16" thick x 16" long, smooth, pre - primed masonite panels. Siding shall be installed with corrosion resistant nails and all ends shall be attached together with H- moulding and sealed with exterior caulking. Lap siding shall extend to 6" above finish grade. Novelty - Cover indicated sections of structure with new wood novelty siding, or other specified material. All joints shall be tight and adjacent end joints shall be staggered. Siding shall be installed over vapor barrier, blend and conform with existing structure. All horizontally applied siding shall be staggered with minimum of two stud spaces. Cover soffit and fascia with .019 gauge baked enamel aluminum using solid or perforated soffit material. Color selection by owner. Soffit panels shall be secured in channels to eliminate looseness and rattling. Materials shall be lapped for proper drainage and applied in full sections. Caulk joints. Staples shall not be used for installation. ® Addition: R epair all fascia boards before covering with aluminum -16- 23. PAINTING 7 Repaint exterior siding, cornice, window and door trim including doors and windows as follows: Wood surfaces to be painted shall be cleaned by best means possible to remove loose and scaley paint and rough spots any any obvious oil and /or grease that may be covering existing wood or paint. Where previous coats have chipped and peeled, the edge shall be feathered to the maximum extent feasible and spot primed with a high quality oil base paint before finish coats are applied. No paint shall be applied until all nail holes have been filled and sanded and all defects in wood work have been eliminated. Paint shall be medium grade and applied according to the manufacturer's specifications and applied to secure full coverage. Use primer where required. Owner to select color from readily available selection. Spray application is not acceptable, unless authorized by the Grant Administrator. 24. GUTTERS AND DOWN SPOUTS [] Provide gutters and down spouts as follows: a) New gutters shall be minimum 5" wide .032 gauge aluminum with hangers placed under roofing. b) New downspouts 'shall be minimum 2" x 3 " rectangular .020 gauge aluminum. C) Finish of gutters and downspouts shall be a baked on enamel finish. Owner to select color from readily available selection. d) Gutters shall be installed with slight pitch to the downspout. Gutters shall be securely mounted to the roof, 36 or less on center. Downspouts to be installed at one end of gutters and extend 2' at the bottom with extension. Extension or splash block shall be installed when the gutter and downspout system does not directly connect into a drainage system. ❑ Addition: -17- i 25. ROOFING Provide new roof per City of Brooklyn Center Handout and as follows: New roofing shall be in compliance with the State Building Codes and Manufacturer's installation instructions. Flashing, plumbing jacks and roof vents shall be checked and replaced with new when damaged, rusted or missing. Drip edge shall be installed along eave edge. All damaged or rotted sheathing boards shall be replaced with new. End joints shall be made over a rafter and all sagging portions of roof shall be corrected. Materials - New roofing shall carry the Class C label of wind resistance from the Underwriter's Laboratories and be applied according to the manufacturer's specifications. The type and weight of the materials used for the roofing shall be in compliance with the State Building Codes. Application - Surfaces to which roofing is to be applied shall be even, sound, thoroughly clean, dry and free from all defects that might affect the quality of application. a) Asphalt Shingles - No more than one overlay of asphalt shingles shall be applied over an existing asphalt shingle roof. Shingles shall be fastened with not less than four nails or staples per shingle. Installed shingles shall be 235# - 240# 3 -tab self sealing. Roll roofing shall be installed when the slope is 4 or less. Owner to select color of shingles from readily available selection. b) Built-up Existing n roofing material shall be removed P g g m ved down to bare wood. New roofing shall be 4 -ply built -up tar and slag or gravel roof, including all new flashing of either metal or asphalt mineral roll material. Roof shall be installed in such a way that there is no ponding water. c) Wood Shingles and Shakes - Repair of existing roof shall match existing or blend in with the adjoining and surrounding work and include a contractor warranty for the repair work. d) Fiberglas - is an acceptable roofing material. Tear off existing roof and remove from site. xx Addition: Reroof garage. -18- 26. CHIMNEY ❑ Repair or replace missing brick. ❑ Tuck pointing shall be done only after the joints have been raked out to a minimum depth of 1/2" and wetted. ❑ Provide masonry chimney cap. ❑ Addition: 27. KITCHEN AND BATHROOM CABINETS Repair damaged kitchen cabinets. iJ Repair damaged bathroom lavatory cabinet. ❑ Replace or add kitchen cabinets: New cabinets shall be described in complete detail, including design, dimension, installation and location of top or base units, detail of drawers, doors and shelves, type of material and finish in the Scope of Improvements. The contractor shall submit a drawing of the proposed cabinets. ❑ Replace bathroom lavatory cabinet: Vanity - lavatory base cabinet shall be medium quality. Top shall be approximately 22" wide with 3 back splash and covered with formica preformed or self edge top. Imitation moulded marble tops can be used as a substitute. [] Replace kitchen cabinet top: Kitchen Counter Top - shall be self edge or self forming formica with 4 backsplash. Separate backsplash material shall match formica counter top material. ❑ Replace bathroom lavatory vanity: Vanity -lavatory base cabinet shall be medium quality. Top shall be approximately 22" wide with 3 11 back splash and covered with formica preformed or self edge top. Imitation moulded marble tops can be used as a substitute. ❑ Provide bathroom medicine cabinet: Cabinet - shall be standard size, recessed, or surface mounted, with a minimum of three shelves and mirror. When light fixture is included, fixture shall be wired on separate wall switch. -19- I 28. SMOKE DETECTORS Install UL listed battery- operated smoke detector per manufacturer's instructions without escape light complete with working batteries. Main floor and basement. 29. GRADING Provide grade fill as follows: ❑ Grade - Fill material shall be free of debris or other detrimental material. All fill shall be compacted to a density that will avoid damaging settlement to lot improvement. Top soil shall be a minimum of 4 compacted depth and free from stones, debris and other materials detrimental to plants. Slope away from building, 4" -6 over a distance of 3' - out from wall. Foundation walls shall extend at least 6 above the finished grade adjacent to the wall at all points. ❑ Seeding and Soddin as required. 30. EXTERIOR CONCRETE WORK ❑ Replace crumbled or broken sidewalks. [� Replace crumbled or broken garage entrance apron. i 31. MISCELLANEOUS i Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ACCEPTING AND APPROVING CONTRACT WITH HESKIN RESOURCE GROUP, INC. WHEREAS, the Economic Development Authority has accepted resumes from construction management firms; and WHEREAS, the Economic Development Authority has reviewed the submissions of each construction management firm; and WHEREAS e th firm of Heskin Resource Group, Inc. was determined to be the group that best suits the needs of the Brooklyn Center Economic Development Authority for the restoration of the Earle Brown Farm. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that the negotiated contract with Heskin Resource Group, Inc. is hereby accepted and the President and Executive Director are hereby authorized to execute an agreement for those services. Date President The motion for the adoption of the foregoing resolution was duly seconded by r Y and upon vote being taken P g en thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. MEMORANDUM TO: Gerald G. Splinter, City Manager FROM: Brad Hoffman, EDA Coordinator , , DATE: January 7, 1988 SUBJECT: Heskin Resource Group, Inc. Contract On Monday evening a construction management contract with the Heskin Resource Group will be presented for acceptance to the EDA. The contract is for professional services as construction managers representing the EDA in the restoration of the Earle Brown Farm. The body of the contract is for the most part taken from the American Institute of Architects Construction Management contract. Under the terms of the contract, Heskin will function as the EDA's representative coordinating g and overseeing the restoration of the farm. They will provide advice and recommendations to the EDA relative to design, materials, construction methods, and soforth and then be responsible for implementing the decision of the EDA. As you will note, there are two (2) phases to this contact: the preconstruction phase during which plans and budgets are finalized and the construction phase where actual restoration of the farm takes place. Compensation to Heskin is based upon 4.5 percent of the total project cost as defined in 3.1 of the contract. It does not include the cost of the land or other costs that are the responsibility of the EDA. Specifically, the project cost includes all contracts let, including the architect and other consultants. A minimum project cost was established at $3.5 million, meaning the minimum payment to Heskin will be $157,500. Not included in the scope of their basic services is a parking ramp, should one be needed. At this point in time, it is rather evident that a ram will be p required. A parking ramp was intentionally considered as an additional service. Let us assume a ramp is built at a cost of $750,000, at 4.5 percent Heskin would receive $33,750. As an additional service at a rate of $75 per hour, I would anticipate a maximum of 100 to maybe 150 hours for a cost of between $7,500 to $11,250. Other additional services are defined in 1.3 through 1.3.10 of the contract. At this point, services for tenant improvements are the most likely other service that would be utilized by the EDA. Heskin has offered an alternative for the basic services contract (would not include additional services) of $220,000 capped. The cost of the project would have to be greater than $4,888,000 before the EDA would benefit. That represents a cost of $106 per foot not including the ramp or tenant improvements. I believe a cost in the area of $76 per foot will provide the EDA with a very nice restoration. I should inform you that I have looked at project costs for such restorations ranging from $50 per foot to over $125 per foot. I am recommending this contract with ith Heskin. I will be available Monday to discuss the contract as will the city attorney and a representative of Heskin. EXHIBIT A EARLE BROWN FARM PROGRAM The hippodrome will be developed as a multipurpose facility. We envision using this facility for banquets, seating as many as 1200 if possible, to a trade show arena. I would estimate the facility would accommodate approximately 100 booths. Other activities contemplated for the hippodrome would include weddings, dances, musical entertainment, perhaps like the Carlton, exercise classes, and so forth. Design of the hippodrome should anticipate dividing the room up to accommodate several smaller groups on given occasions. The stable, which is physically connected to the hippodrome, would encompass kitchen facilities for banquets and quite possibly a restaurant in the main entryway to the stable. The northern most wing would most likely be office space. Most likely, we will have only one tenant for the office space in the stable. The loft areas of the stable would function as storage space for the hippodrome. The G and H barns located to the north end of the project would be office space. We anticipate the design would connect the two buildings, but that would be subject to tenant needs and the architects review and suggestions. Orientation of the G and H buildings could be changed to accommodate design needs. The housing complex which includes the main house, the farm house, and the guest house will be developed as a "bed and breakfast" facility. Special attention to this will be of primary concern to the Brooklyn Historical Society. Consideration should be given to incorporation historical artifacts and possibly the restoration of a room to be roped off from the public. Note, the design of the "bed and breakfast" must take priority, however. The D barn will function as an office building dependent upon certain budget considerations. The blacksmith's shop, located outside of the property, would be moved onto the site and used as a senior drop -in center, budget allowing. If not, the D barn would function as an artist's loft and senior drop -in center. The bunk house will be used in conjunction with the "bed and breakfast" or the senior drop -in center. Along with the cooks shed and the pump house (water tower), uses of the buildings should be supportive of the other uses as determined in the design phase. For example, the cook's shed could provide storage space etc. I have presented you with a broad outline of intended uses for the buildings on the farm. Obviously, as we start the design process and tenants are identified some modifications can be anticipated; however, I do not foresee any significant changes in this program. It would be our preference to complete this project in a single phase. WATER BLACKSMITHS Tr SHOP BUNK I HOUSE O FARM O _ MAIN HOUSE HOUSE GUEST. G GE HOUSE I I D BARN t I x I ' I I STABLE HIPPODROME • x rb I I � COOK'S I � f [ AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER AND HESKIN RESOURCE GROUP, INC. This Agreement is made as of the day of in the year of Nineteen Hundred and Eighty -Eight between the Economic Development Authority of the City of Brooklyn Center (Owner) and Heskin Resource Group, Inc., (Construction Manager) for the following project: Restoration and redevelopment of the Earle Brown Farm in Brooklyn Center, Minnesota, for use as a multipurpose trade show center, banquet facility and /or business conference center as further described in Exhibit A hereto. The Owner and Construction Manager agree as set forth below. TERMS AND CONDITIONS OF AGREEMENT BETWEEN OWNER AND CONSTRUCTION MANAGER ARTICLE 1 CONSTRUCTION MANAGER'S SERVICES AND RESPONSIBILITIES The Construction Manager covenants with the Owner to further the interests of the Owner by furnishing the Construction Manag- er's skill and judgment in cooperation with, and in reliance upon, the services of an architect. The Construction Manager agrees to furnish business administration and management services and to perform in an expeditious and economical manner consistent with the interests of the Owner. Basic Services The Construction Manager's Basic Services consist of the two Phases described below and any other services included in Article t i 16 as Basic Services. 1.1 PRECONSTR®CTION PHASE 1.1.1 Provide preliminary evaluation of the program and Project budget requirements, each in terms of the other. With the Architect's assistance, prepare preliminary estimates of Construction Cost for early schematic designs based on area, volume or other standards. Assist the Owner and the Architect in achieving mutually agreed upon program and Project budget re- quirements and other design parameters. Provide cost evaluations of alternative materials and systems. 1.1.2 Review designs during their development. Advise on site use and improvements, selection of materials, building systems and equipment and methods of Project delivery. Provide recommendations on relative feasibility of construction methods, availability of materials and labor, time requirements for procurement, installation and construction, and factors related to cost including, but not limited to, costs of alternative designs or materials, preliminary budgets and possible economies. 1.1.3 Provide for the Architect's and the Owner's review and acceptance, and periodically update, a Project Schedule that coordinates and integrates the Construction Manager's services, the Architect's services, Contractor's services, interior design services, and the Owner's responsibilities with anticipated construction schedules. 1.1.4 Prepare for the Owner's approval a more detailed estimate of Construction Cost, as defined in Article 3, developed by using estimating techniques which anticipate the various 2 Y + elements of the Project, and based on Schematic Design Documents prepared by the Architect. Update and refine this estimate periodically as the Architect prepares Design Development and Construction Documents. Advise the Owner and the Architect if it appears that the Construction Cost may exceed the Project budget. Make recommendations for corrective action. 1.1.5 Coordinate Contract Documents by consulting with the Owner and the Architect regarding Drawings and Specifications as they are being prepared, and recommending alternative solutions whenever design details affect construction feasibility, cost or schedules. 1.1.5.1 Provide recommendations and information to the Owner and the Architect regarding the assignment of responsibili- ties for safety precautions and programs, temporary Project facilities, and equipment, materials and services for common use of Contractors. Verify that the requirements and assignment of responsibilities are included in the proposed Contract Documents. 1.1.5.2 Advise on the separation of the Project into Contracts for various categories of Work. Advise on the method to be used for selecting Contractors and awarding Contracts. If separate Contracts are to be awarded, review the Drawings and Specifications and make recommendations as required to provide that (1) the Work of the separate Contractors is coordinated, (2) all requirements for the Project have been assigned to the appropriate separate Contract, (3) the likelihood of jurisdic- tional disputes has been minimized, and (4) proper coordination has been provided for phased construction. 3 1.1.5.3 Develop a Project Construction Schedule providing for all major elements such as phasing of construction and times of commencement and completion required of each sepa- rate Contractor. Provide the Project ro ' ect C � onstruction Schedule for each set of Bidding Documents. 1.1.5.4 Investigate and recommend a schedule for the Owner's purchase of materials and equipment requiring long lead time procurement, and coordinate the schedule with the early preparation of portions of the Contract Documents by the Archi- tect. Expedite and coordinate delivery of these purchases. 1.1.6 Provide an analysis of the types and quantities of labor required for the Project and review the availability of appropriate categories of labor required for critical Phases. Make recommendations for actions designed to minimize adverse effects of labor shortages. 1.1.6.1 Identify or verify applicable requirements for equal employment opportunity programs for inclusion in the proposed Contract Documents. 1.1.7 In consultation with the Owner, make recommendations for pre - qualification criteria for Bidders and develop Bidders' interest in the Project. Establish bidding schedules. Compile and issue Bidding Documents to Bidders. Conduct pre -bid confer- ences to familiarize Bidders with the Bidding Documents and management techniques and with any special systems, materials or methods. Assist the Architect with the receipt of questions from Bidders, and with the issuance of Addenda. 4 r r 1.1.7.1 With the Architect's assistance, receive Bids, prepare bid analyses and make recommendations to the Owner for award of Contracts or rejection of Bids. 1.1.8 With the Architect's assistance, conduct pre -award conferences with successful Bidders. Assist the Owner in prepar- ing Construction Contracts and advise the Owner on the accept- ability of Subcontractors and material suppliers proposed by Contractors. 1.1.9 Assist the Architect in providing services related to investigations, appraisals or evaluations of existing conditions, facilities or equipment, or verification of the accuracy of existing drawings or other information furnished by the Owner. 1.1.10 Assist the Owner in obtaining interior design services for the Project and make recommendations to the Owner for retaining a suitable interior design firm. Coordinate the interior design services with those of the Architect, Contractors and Subcontractors. 1.2 CONSTRUCTION PHASE The Construction Phase will commence with the award of the initial Construction Contract or purchase order and, together with the Construction Manager's obligation to provide Basic Services under this Agreement, will end 30 days after final payment to all Contractors is due. 1.2.1 Unless otherwise provided in this Agreement and incorporated in the Contract Documents, the Construction Manager, in cooperation with the Architect, shall provide administration of the Contracts for Construction as set forth below and in the 5 1980 Edition of AIA Document A201 /CM, General Conditions of the Contract for Construction, Construction Management Edition. To the extent there is any conflict between the duties, responsibil- ities or obligations of the Construction Manager as set forth in this Agreement and any other Contract document, including, but not limited to the General Conditions of the Contract, the provisions of this Agreement shall control. 1.2.2 Provide administrative, management and related services as required to coordinate Work of the Contractors with each other and with the activities and responsibilities of the Construction Manager, the Owner and the Architect to complete the Project in accordance with the Owner's objectives for cost, time and quality. Provide sufficient organization, personnel and manaa_,ement to carry out the requirements of this Agreement. 1.2.2.1 Schedule and conduct pre - construction, con- struction and progress meetings to discuss such matters as procedures, progress, problems and scheduling. Prepare and promptly distribute minutes. 1.2.2.2 Consistent with the Project Construction Il i Schedule issued with the Bidding Documents, and utilizing the Contractors' Construction Schedules provided by the separate Contractors, update the Project Construction Schedule incorporat- ing the activities of Contractors on the Project, including activity sequences and durations, allocation of labor and materi- als, processing of Shop Drawings, Product Data and Samples, and delivery of products requiring long lead time procurement. Include the Owner's occupancy requirements showing portions of 6 y r the Pro having g occupancy priority. Update and reissue the Project Construction Schedule as required to show current condi- tions and revisions required by actual experience. 1.2.2.3 Endeavor to achieve satisfactory performance from each of the Contractors. Recommend courses of action to the Owner when requirements of a Contract are not being fulfilled, and the nonperforming party will not take satisfactory corrective action. 1.2.3 Revise and refine the approved estimate of Construc- tion Cost, incorporate approved changes as they occur, and develop cash flow reports and forecasts as needed. 1.2.3.1 Provide regular monitoring of the approved estimate of Construction Cost, showing actual costs for activi- ties in progress and estimates for uncompleted tasks. Identify variances between actual and budgeted or estimated costs, and advise the Owner and the Architect whenever projected costs exceed budgets or estimates. 1.2.3.2 Maintain cost accounting records on authorized Work performed under unit costs, additional Work performed on the basis of actual costs of labor and materials, or other Work requiring accounting records. 1.2.3.3 Recommend necessary or desirable changes to the Architect and the Owner, review requests for changes, assist in negotiating Contractors' proposals, submit recommendations to the Architect and the Owner, and if they are accepted, prepare and sign Change Orders for the Architect's signature and the Owner's authorization. 7 I 1.2.3.4 Develop and implement procedures for the review and processing of Applications by Contractors for progress and final payments. Make recommendations to the Architect for certification to the Owner for payment. 1.2.4 Review the safety programs developed by each of the Contractors as required by their Contract Documents and coordi- nate the safety programs for the Project. 1.2.5 Assist in obtaining building permits and special permits for permanent improvements, excluding permits required to be obtained directly by the various Contractors. Verify that the Owner has paid applicable fees and assessments. Assist in obtaining approvals from authorities having jurisdiction over the Project. 1.2.6 If required, assist the Owner in selecting and retaining the professional services of surveyors, special con- . sultants and testing laboratories. Coordinate their services. 1.2.7 Determine in general that the Work of each Contractor is being performed in accordance with the requirements of the Contract Documents. Endeavor to guard the Owner against defects and deficiencies in the Work. As appropriate, require special inspection or testing, or make recommendations to the Architect regarding special inspection or testing, of Work not in accor- dance with the provisions of the Contract Documents whether or not such Work be then fabricated, installed or completed. Subject to review by the Architect, reject Work which does not conform to the requirements of the Contact Documents. 8 J 1.2.7.1 The Construction Manager shall not be respon- sible for construction means, methods, techniques, sequences and procedures employed by Contractors in the performance of their Contracts, and shall not be responsible for the failure of any Contractor to carry out Work in accordance with the Contract Documents. 1.2.8 Consult with the Architect and the Owner if any Contractor requests interpretations of the meaning and intent of the Drawings and Specifications, and assist in the resolution of questions which may arise. 1.2.9 Receive Certificates of Insurance from the Contrac- tors, and forward them to the Owner with a copy to the Architect. 1.2.10 Receive from the Contractors all Shop drawings, Product Data, Samples and other submittals and transmit to the Architect for review and approval. In collaboration with the Architect, establish and implement procedures for expediting the processing and approval of Shop Drawings, Product Data, Samples and other submittals. 1.2.11 Record the progress of the Project. Submit weekly written progress reports to the Owner and the Architect including information on each Contractor and each Contractor's Work, as well as the entire Project, showing percentages of completion and the number and amounts of Change Orders. Keep a daily log containing a record of weather, Contractors Work on the site, number of workers, Work accomplished, problems encountered, and other similar relevant data as the Owner may require. Make the log available to the Owner and the Architect. 9 1.2.11.1 Maintain at the Construction Manager's office, on a durrent basis: a record copy of all Contractors, Drawings, Specifications, Addenda, Change Orders and other Modifications, in good order and marked to record all changes made during construction; Shop Drawings; product Data; Samples; submittals; purchases; materials; equipment; applicable hand- books; maintenance and operating manuals and instructions; other related documents and revisions which arise out of the Contracts or Work. Maintain records, in duplicate, of principal building layout lines, elevations of the bottom of footings, floor levels and key site elevations certified by a qualified surveyor or professional engineer. Make all records available to the Owner and the Architect. At the completion of the Project, deliver all such records to the Owner after review and inspection by the Architect and Engineer. 1.2.12 Arrange for delivery and storage, protection and security for owner - purchased materials, systems and equipment which are a part of the Project, until such items are incor- porated into the Project. 1.2.13 With the Architect and the Owner's maintenance personnel, observe the Contractors' checkout of utilities, operational systems and equipment for readiness and assist in their initial start -up testing. 1.2.14 When the Construction Manager considers each Con- tractor's Work or a designated portion thereof substantially complete, the Construction Manager shall prepare for the Archi- tect a list of incomplete or unsatisfactory items and a schedule 10 t , for their completion. The Construction Manager shall provide administrative assistance to the Architect in conducting inspec- tions. After the Architect certifies the Date of Substantial Completion of the Work, the Construction Manager shall coordinate the correction and completion of the Work. 1.2.15 Provide administrative assistance to the Architect in determining when the Project or a designated portion thereof is substantially complete. Prepare for the Architect a summary of the status of the Work of each Contractor, listing changes in the previously issued Certificates of Substantial Completion of the Work and recommending the times within which Contractors shall complete uncompleted items on their Certificate of Substan- tial Completion of the Work. 1.2.16 Following the Architect's issuance of a Certificate of Substantial Completion of the Project or designated portion thereof, evaluate the completion of the Work of the Contractors and make recommendations to the Architect when Work is ready for final inspection. Provide administrative assistance to the Architect in conducting final inspections. Secure and transmit to the Owner required guarantees, affidavits, releases, bonds and waivers. Deliver all keys, manuals, record drawings and mainte- nance stocks to the Owner. 1.2.17 The extent of the duties, responsibilities and limitations of authority to the Construction Manager as a repre- sentative of the Owner during construction shall not be modified or extended without the written consent of the Owner, the 11 Contractors, the Architect and the Construction Manager, which consent shall not be unreasonably withheld. 1.3 ADDITIONAL SERVICES The following Additional Services shall be performed upon authorization in writing from the Owner and shall be paid for as provided in this Agreement. 1.3.1 Services related to Owner - furnished furniture, furnishings and equipment which are not a part of the Project. 1.3.2 Services for tenant improvement construction and design. 1.3.3 Consultation on replacement of Work damaged by fire or other cause during construction, and furnishing services in conjunction with the replacement of such Work. 1.3.4 Services made necessary by the default of a Contrac- tor, subcontractor, materialman, supplier, or anyone else fur- nishing labor or materials for the Project other than the Con- struction Manager. 1.3.5 Preparing to serve or serving as a witness in connec- tion with any public hearing, arbitration proceeding or legal proceeding. 1.3.6 Recruiting or training maintenance personnel. 1.3.7 Inspections of, and services related to, the Project after the end of the Construction Phase. 1.3.8 Services related to parking ramps and building additions other than those specified in the current program as described in Exhibit A. 1.3.9 Services related to the preparation or furnishing of leasing aids such as pamphlets or brochures. 12 1.3.10 Providing any other services not otherwise included in this Agreement. 1.4 TITHE 1.4.1 The Construction Manager shall perform Basic and Additional Services as expeditiously as is consistent with reasonable skill and care and the orderly progress of the Project. ARTICLE 2 THE OWNER'S RESPONSIBILITIES 2.1 The Owner shall provide full information regarding the requirements of the Project, including a program, which shall set forth the Owner's objectives, constraints and criteria, including space requirements and relationships, flexibility and expandabil- ity requirements, special equipment and systems and site require- ments. 2.2 The Owner shall provide a budget for the Project, based on consultation with the Construction Manager and the Architect, which shall include contingencies for bidding, changes during construction and other costs which are the responsibility of the Owner. The Owner shall, at the request of the Construction Manager, provide a statement of funds available for the Project and their source. 2.3 The Owner shall designate a representative authorized to act in the Owner's behalf with respect to the Project. The 13 d t Owner, or such authorized representative, shall examine documents submitted by the Construction Manager and shall render decisions pertaining thereto rom t)_ to avoid p p y unreasonable delay in the progress of the Construction Manager's services. 2.4 The Owner shall retain an architect. The Terms and Conditions of the Owner- Architect Agreement will be furnished to the Construction Manager, and will not be modified without written consent of the Construction Manager, which consent shall not be unreasonably withheld. Actions taken by the Architect as agent of the Owner shall be the acts of the Owner and the Con- struction Manager shall not be responsible for them. 2.5 The Owner shall furnish structural, mechanical, chemi- cal and other laboratory tests, inspections and reports as required by law or the Contract Documents. 2.6 The Owner shall furnish such legal, accounting and insurance counseling services as may be necessary for the Project, including such auditing services as the Owner may require to verify the Project Applications for Payment or to ascertain how or for what purposes the Contractors have used the monies paid by or on behalf of the Owner. 2.7 The Owner shall furnish the Construction Manager a .sufficient quantity of construction documents. 2.8 The services, information and reports required by Paragraphs 2.1 through 2.7, inclusive, shall be furnished at the Owner's expense, and the Construction Manager shall be entitled to rely upon their accuracy and completeness. 14 2.9 If the Owner observes or otherwise becomes aware of any fault or defect in the Project, or nonconformance with the Contract Documents, prompt written notice thereof shall be given by the Owner to the Construction Manager and the Architect. 2.10 The Owner reserves the right to perform work related to the Project with the Owner's own forces, and to award con- tracts in connection with the Project which are not part of the Construction Manager's responsibilities under this Agreement. The Construction Manager shall notify the Owner if any such independent action will in any way compromise the Construction Manager's ability to meet the Construction Manager's responsibil- ities under this Agreement. 1&.11 The Owner shall furnish the required information and services and shall render approvals and decisions as expedi- tiously as necessary for the orderly progress of the Construction Manager's services and the Work of the Contractors. ARTICLE 3 CONSTRUCTION COST 3.1 Construction Cost shall be the total of the final Contract Sums of all of the separate Contracts, actual Reimburs- able Costs relating to the Construction Phase as defined in Article 6, and the Construction Manager's Compensation and the compensation of the Architect, the Architect's consultants and any soil engineering firm retained for the Project. 15 i 3.2 Construction Cost does not include the cost of the land, rights -of -way or other costs which are the responsibility of the Owner as provided in Paragraphs 2.3 through 2.7, inclu- sive. 3.3 Evaluations of the Owner's Project budget and cost estimates prepared by the Construction Manager represent the Construction Manager's best judgment as a professional familiar with the construction industry. It is recognized, however, that neither the Construction Manager nor the Owner has control over the cost of labor, materials or equipment, over Contractors' methods of determining Bid prices or other competitive bidding or negotiating conditions. Accordingly, the Construction Manager cannot and does not warrant or represent that Bids or negotiated prices will not vary from the Project budget proposed, estab- lished or approved by the Owner, or from any cost estimate or evaluation prepared by the Construction Manager. 3.4 No fixed limit of Construction Cost shall be estab- lished as a condition of this Agreement by the furnishing, proposal or establishment of a Project budget under Subparagraph 1.1.1 or Paragraph 2.2, or otherwise, unless such fixed limit has been agreed upon in writing and signed by the parties to this Agreement. If such a fixed limit has been established, the Construction Manager shall include contingencies for design, bidding and price escalation, and shall consult with the Archi- tect to determine what materials, equipment, component systems and types of construction are to be included in the Contract Documents, to suggest reasonable adjustments in the scope of the 16 Project, and to suggest alternate Bids in the Construction Documents to adjust the Construction Cost to the fixed limit. Any such fixed limit shall be increased in the amount of any increase in the Contract Sums occurring after the execution of the Contracts for Construction. 3.4.1 If Bids are not received within the time scheduled at the time the fixed limit of Construction Cost was established, due to causes beyond the Construction Manager's control, any fixed limit of Construction Cost established as a condition of this Agreement shall be adjusted to reflect any change in the general level of prices in the construction industry occurring between the originally scheduled date and the date on which Bids are received. 3.4.2 If a fixed limit of Construction Cost (adjusted as provided in Subparagraph 3.4.1) is exceeded by the sum of the lowest figures from bona fide Bids or negotiated proposals plus the Construction Manager's estimate of other elements of Con- struction Cost for the Project, the Owner shall (1) give written approval of an increase in such fixed limit, (2) authorize rebidding or renegotiation of the Project or portions of the Project within a reasonable time, (3) if the Project is aban- doned, terminate in accordance with Paragraph 10.2, or (4) cooperate in revising the scope and quality of the Work as re- quired to reduce the Construction Cost. In the case of item (4), the Construction Manager, without additional compensation, shall cooperate with the Architect as necessary to bring the Construc- tion Cost within the fixed limit. 17 e ARTICLE 4 CONSTRUCTION SUPPORT ACTIVITIES 4.1 Construction support activities, if provided by Con- struction Manager, shall be governed by separate contractual arrangements unless otherwise provided in Article 16. ARTICLE 5 DIRECT PERSONNEL EXPENSE 5.1 Direct Personnel Expense is defined as the direct salaries of all of the Construction Manager's personnel engaged on the Project, excluding those whose compensation is included in the fee, and the portion of the cost of their mandatory and customary contributions and benefits related thereto such as employment taxes and other statutory employee benefits, insur- ance, sick leave, holidays, vacations, pensions, and similar contributions and benefits. ARTICLE 6 REIMBURSABLE COSTS 6.1 The term Reimbursable Costs shall mean costs necessar- ily incurred in the proper performance of services and paid by the Construction Manager. Such costs shall be at rates not higher than the standard paid in the locality of the Project, 18 f except with the prior consent of the Owner. Reimbursable Costs and costs not to be reimbursed shall be listed in Article 16. 6.2 Trade discounts, rebates and refunds, and returns from sale of surplus materials and equipment shall accrue to the Owner, and the Construction Manager shall make provisions so that they can be secured. ARTICLE 7 PAYMENTS TO THE CONSTRUCTION MANAGER 7.1 PAYMENTS ON ACCOUNT OF BASIC SERVICES 7.1.1 An initial payment as set forth in Paragraph 15.1 is the minimum payment under this Agreement. 7.1.2 Subsequent payments r q P y for Basic Services shall be made monthly and shall be in proportion to services performed within each Phase of Services, on the basis set forth in Article 15. 7.1.3 If and to the extent that the time initially estab- lished for the Construction Phase of the Project is exceeded or extended through no fault of the Construction Manager, compensa- tion for Basic Services required for such extended period of Administration of the Construction Contract shall be computed as set forth in Paragraph 15.3 for Additional Services. 7.1.4 When compensation is based on a percentage of the total of the Contract Sums of all the separate Contracts, and any portions of the Project are deleted or otherwise not constructed, compensation for such portions of the Project shall be payable to the extent services are performed on such portions, in accordance 19 with the schedule set forth in Subparagraphs 15.2.1, based on (1) the lowest figures from bona fide Bids or negotiated proposals, or (2) if no such Bids or proposals are received, the most recent estimate of the total of the Contract Sums of all the separate Contracts for suc h ort' p ions of the Project. 7.2 PAYMENTS ON ACCOUNT OF ADDITIONAL SERVICES AND REIMBURSABLE COSTS 7.2.1 Payments on account of the Construction Manager's additional services, as defined in Paragraph 1.3, and for Reim- bursable Costs, as defined in Article 16, shall be made monthly upon presentation of the Construction Manager's statement of services rendered or costs incurred. 7.3 PAYMENTS WITHHELD 7.3.1 No deductions shall be made from the Construction Manager's compensation on account of penalty, liquidated damages or other sums withheld from payments to Contractors, or on account of the cost of changes in Work other than those for which the Construction Manager is held legally liable. 7.4 PROJECT SUSPENSION OR ABANDONMENT 7.4.1 If the Project is suspended or abandoned in whole or in part for more than three months, the Construction Manager shall be compensated for all services performed prior to receipt of written notice from the Owner of such suspension or abandon- ment, together with Reimbursable Costs then due and all Termina- tion Expenses defined in Paragraph 10.4. If the Project is resumed after being suspended for more than three months, the Construction Manager's compensation shall be equitably adjusted. 20 7.4.2 If construction of the Project has started and is stopped by a reason of circumstances not the fault of the Con- struction Manager, the Owner shall reimburse the Construction Manager for the costs of the Construction Manager's Project -site staff_ as provided for by this Agreement. The Construction Manager shall reduce the size of the Project -site staff after 30 days' delay, or sooner if feasible, for the remainder of the delay period as directed by the Owner and, during that period, the Owner shall reimburse the Construction Manager for the costs of such staff prior to reduction plus any relocation or emplov- ment termination costs. Upon the termination of the stoppage, the Construction Manager shall provide the necessary Project -site staff as soon as practicable. ARTICLE 8 CONSTRUCTION MANAGER'S ACCOUNTING RECORDS 8.1 Records of Reimbursable Costs and costs pertaining to services performed on the basis of a Multiple of Direct Personnel Expense shall be kept on the basis of generally accepted account- ing principles and shall be available to the Owner or the Owner's authorized representative at mutually convenient times. The Construction Manager shall also keep accurate time records of all services performed in detail sufficient to allow the accurate computation of compensation due Construction Manager under this Agreement and shall make such records available to Owner upon request. 21 ARTICLE .9 ARBITRATION 9.1 All claims, disputes and other matters in question between the parties to this Agreement arising out of or relating to this Agreement or the breach thereof, shall be decided by arbitration in accordance with the Construction Industry Arbitra- tion Rules of the American Arbitration Association then obtaining unless the parties mutually agree otherwise. No arbitration arising out of or relating to this Agreement shall include, by consolidation, joinder or in any other manner, any additional person not a party to this Agreement except by written consent containing a specific reference to this Agreement and signed by the Construction Manager, the Owner, and any other person sought to be joined. Any consent to arbitration involving an additional person or persons duly consented to by the parties to this Agreement shall be specifically enforceable under the prevailing arbitration law. 9.2 Notice of demand for arbitration shall be filed in writing with the other party to this Agreement and with the American Arbitration Association, and a copy shall also be filed with the Architect. The demand shall be made within a reasonable time after the claim, dispute or other matter in question has arisen. In no event shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. 22 r f 9.3 The award rendered by the arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. ARTICLE 10 TERMINATION OF AGREEMENT 10.1 This Agreement may be terminated by either party upon seven days' written notice should the other party fail substan- tially to perform in accordance with its terms through no fault of the party initiating the termination. 10.2 This Agreement may be terminated by the Owner upon at least fourteen days' written notice to the Construction Manager in the event that the Project is permanently abandoned. 10.3 In the event of termination not the fault of the Construction Manager, the Construction Manager shall be compen- sated for all services performed to the termination date as provided in Subparagraph 15.2.2 together with Reimbursable Costs then due and all Termination Expenses. 10.4 Termination Expenses are defined as Reimbursable Costs directly attributable to termination for which the Construction Manager is not otherwise compensated. 23 r 1 ARTICLE 11 MISCELLANEOUS PROVISIONS 11.1 Unless otherwise specified, this Agreement shall be governed by the law in effect at the location of the Project. 11.2 Terms in this Agreement shall have the same meaning as those in the 1980 Edition of AIA Document A201 /CM, General Conditions of the Contract for Construction, Construction Manage- ment Edition. 11.3 As between the parties to this Agreement: as to all acts or failures to act by either party to this Agreement, any applicable statute of limitation shall commence to run, and any alleged cause of action shall be deemed to have accrued, in any and all events not later than the elevant Date r at of Substantial Completion of the Project, and as to any acts or failures to act occurring after the relevant Date of Substantial Completion of the Project, not later than the date of issuance of the final Project Certificate for Payment. 11.4 The Owner and the Construction Manager waive all rights against each other, and against the contractors, consul- tants, agents and employees of the other, for damages covered by any property insurance during construction, as set forth in the 1980 Edition of AIA Document A201 /CM, General Conditions of the Contract for Construction, Construction Management Edition. The Owner and the Construction Manager shall each require appropriate similar waivers from their contractors, consultants and agents. 24 11.5 The Construction Manager is not an architect, engineer or designer and nothing contained in this Agreement or in any of the Contract Documents shall create or be construed to create any liability or guarantee on the part of Construction manager with respect to the safety or sufficiency of the desiqn of any aspect of the Project. 11.6 Construction Manager is providing its services to Owner hereunder as an independent contractor to Owner. In no event shall Construction Manager and Owner be considered to be engaged in a joint venture or a partnership. 11.7 It is understood and agreed that Construction Manager is free to engage in other activities in the real estate area and other areas, and Owner acknowledged that Construction Manager intends to, among other things, enter into construction manage- ment and other agreements for real estate projects and develop- ments in which Owner is not involved. ARTICLE 12 SUCCESSORS AND ASSIGNS 12.1 The Owner and the Construction Manager, respectively, bind themselves, their partners, successors, assigns and legal representatives to the other party to this Agreement, and to the partners, successors, assigns, and legal representatives of such other party with respect to all covenants of this Agreement. Neither the Owner nor the Construction Manager shall assign, 25 ti 1 sublet or transfer any interest in this Agreement without the written consent of the other. ARTICLE 13 EXTENT OF AGREEMENT 13.1 This Agreement represents the entire and integrated agreement between the Owner and the Construction Manager and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both the Owner and the Construction Manager. 13.2 Nothing contained herein shall be deemed to create any contractual relationship between the Construction Manager and the Architect or any of the Contractors, Subcontractors or material suppliers on the Project; nor shall anything contained in this Agreement be deemed to give any third party any claim or right of action against the Owner of the Construction Manager which does not otherwise exist without regard to this Agreement. ARTICLE 14 INSURANCE 14.1 The Construction Manager shall purchase and maintain insurance for protection from claims under workers' or workmen's compensation acts; claims for damages because of bodily injury, including personal injury, sickness, disease or death of any of the Construction Manager's employees or of any person; and from 26 claims for damages because of injury to or destruction of tangi- ble property including loss of use resulting therefrom. The Construction Manager shall furnish proof of such insurance to the Owner upon Owner's request. ARTICLE 15 BASIS OF COMPENSATION The Owner shall compensate the Construction Manager for the Scope of Services provided, in accordance with Article 7, Pay- ments to the Construction Manager, and the other Terms and Conditions of this Agreement, as follows: 15.1 An Initial Payment of Fifteen thousand dollars ($15,000.00) shall be made upon execution of this Agreement and A Second Payment of twenty -five thousand dollars ($25,000.00) shall be made on March 15, 1988. Both payments shall be credited against the first installment due pursuant to Paragraph 15.2. 15.2 BASIC COMPENSATION 15.2.1 For Basic Services, as described in Paragraphs 1.1 and 1.2, and any other services included in Article 16 as part of Basic Services, Basic Compensation shall be four and one -half percent (4.5%) of Project Costs, as defined below, and shall be payable as follows: (a) The initial and second payment as provided in Paragraph 15.1. (b) The greater of Fifteen Thousand Seven Hundred Fifty Dollars ($15,750.00) or 10 percent of Project costs as 27 estimated at the time Contracts are let, shall be paid 30 days after final payment to all Contractors is due. (c) The balance shall be paid in fifteen equal monthly installments beginning July 1, 1988 or on the first day of the first month after construction commences, whichever is later (d) Any increases or decreases in Project costs because of changes in the scope of the Project shall be taken into account in determining the amount payable pursu- ant to Paragraph 15.2., in the manner prescribed in Subpara- graph 7.1.4. It is understood and agreed that Project Costs upon completion of the Project shall not be less than $3.5 million for the purpose of determining the amount payable pursuant to Paragraph 15.2. 15.2.2 If the Project is abandoned or terminated in whole or in part at any time, Construction Manager's compensation for Basic Services will be the greater of the amount computed pursu- ant to Paragraph 15.1 and the value of the services rendered by Construction Manager computed at the rates provided in Paragraph 15.3.1 plus out -of- pocket expenses. 15.2.3 For purposes of computing Basic Compensation, Project Costs are defined as the sum of the following: (i) All design and development costs for the Project, including, but not limited to, the fees of the Architect, engineers and con- sultants and the cost of installation for site utilities and roadways; and 28 7 (ii) The aggregate of the final Contract Sums of all separate contracts on the Project, including, but not limited to, contracts for landscaping, interior design costs, fixtures to be installed in the buildings and other amenities. 15.3 COMPENSATION FOR ADDITIONAL SERVICES 15.3.1 FOR ADDITIONAL SERVICES OF THE CONSTRUCTION MANAGER, as described in Paragraph 1.3, and any other services included in Article 16 as Additional Services, compensation shall be computed as follows: Principals: $100 per hour (Steven Cox, Ellen Higgins) Project Manager $ 75 per hour (Gregory S. Watson) Marketing Manager: $ 75 per hour Property Manager: $ 50 per hour Clerical and Accounting: $ 35 per hour 15.4 REIMBURSABLE COSTS 15.4.1 Construction Manager's Basic Compensation for Basic Services as calculated in Paragraph 15.2 includes $5,000 for Reimbursable Costs as described in Article 6 and Paragraph 16.7. In the event that Reimbursable Costs exceed $5,000, Owner shall reimburse Construction Manager for such additional reimbursable Costs as provided in Subparagraph 7.2.1. In the event that Reimbursable Costs total less than $5,000, Construction Manager 29 y shall pay to Owner upon completion of the Project the difference between $5,000 and actual Reimbursable Costs. 15.5 Payments due the Construction Manager and unpaid for 30 days under this Agreement shall bear interest from the date payment is due at 9% per annum. 15.6 The Owner and the Construction Manager agree in accordance with the Terms and Conditions of this Agreement that: 15.6.1 IF THE SERVICES covered by this Agreement have not been completed by December 31, 1989, through no fault of the Construction Manager, the amounts of compensation, rates and multiples set forth herein shall be computed as provided in Article 15, Subparagraph 15.3.1 plus out -of- pocket expenses for services furnished by the Construction Manager after that date. ARTICLE 16 OTHER CONDITIONS OR SERVICES 16.1 It is understood that the development of all buildings will proceed in one phase and construction will be completed by December 31, 1989. 16.2 The buildings will not be placed on the National Historic Register at this time and related work for certification is not part of this Contract. 16.3 Winsor /Faricy Architects, Inc. will be retained as Architect. 16.4 McGough Construction Company will be retained as General Contractor. 30 16.5 HAZARDOUS MATERIALS 16.5.1 The term "Hazardous Materials" includes, but is not limited to, asbestos, toxic chemicals, waste acids, alkalis, irritants, contaminants or other pollutants. 16.5.2 The Construction Manager has no duty to discover or detect the presence of any Hazardous Materials at or near the site at any time prior to, during, or after the design or con- struction of the Project. 16.5.3 If Hazardous Materials are discovered by the Con- struction Manager, its only obligation is to disclose that information to the Owner_. If the Owner knows or discovers that Hazardous Materials is specified by the Construction Manager for use in the construction of the Project, the Owner will disclose that fact to the Construction Manager. 16.5.4 If a project, material or process known by the Construction Manager to contain or involve the use of Hazardous Materials is specified by the Construction Manager for use in the construction of the Project, the Construction Manager will disclose that fact to the Owner. 16.5.5 The services provided by the Construction Manager pursuant to this agreement do not include the identification, sampling, testing, abatement, replacement or removal of a prod- uct, material or process containing or involving the use of a Hazardous Material. 16.5.6 Construction Manager shall have no liability for injuries or damages arising out of the presence of Hazardous Wastes at or near the site unless such injuries or damages are 31 caused by Construction Manager's failure to inform the Owner of its discovery of Hazardous Materials as required by Subparagraph 16.5.2 and Owner agrees to indemnify and hold Construction Manager harmless of and from any injuries or damage incurred by itself, its employees or its consultants by reason of such Hazardous Wastes unless caused by Construction Manager's failure to inform Owner as required by Subparagraph 16.5.2. Except in the case of direct and causative negligence of Construction Manager, its employees or consultants, Construction Manager shall not be liable to Owner for injuries or damages arising out of the use of any product, material or process containing or involving the use of a Hazardous Material in the construction of the Project, it being understood and agreed that the Construction Manager, its employees and /or consultants are not liable to the Owner for any claims based on the selection or manner of use of a Hazardous Material in the construction of the Project. 16.6 The builder's risk coverages of Contractors and Subcontractors shall name specifically as named insured the Owner, Architect, its Consultants, Construction Manager, and all prime Contractors and shall include as insureds all subcontrac- tors and suppliers at the job site. 16.7 Reimbursable Costs include the following: expense of out -of -town transportation in connection with the Project; living expenses in connection with out -of -town travel; long distance communications; postage; reproduction and copying costs; and other expenses reasonably incurred for the purpose of furnishing services under this Agreement. Reimbursable Costs in excess of 32 $500.00 must be approved in advance by Owner which approval shall not be unreasonably withheld. OWNER CONSTRUCTION MANAGER 0007AA04. n 41 33