CR 91-236 Vernturian Agreement For Site InvestigationOctober 30,1991
James Gessele
Engineering Superintendent
AGREEMENT WITH VENTURIAN CORPORATION
ENVIRONMENTAL SITE INVESTIGATION
Council Report: 91 -236
Proposed Action.
Staff recommends the following motion: Move that Council
authorize the mayor and city manager to enter into an
agreement with the Venturian Corporation concerning sharing
of costs of an environmental site investigation.
Overview.
Among environmental issues discussed at a September 10
council worksession was the City's cooperative effort with
the Venturian Corporation to conduct a. site investigation of
the property lying south of County Road 3 and between Nine
Mile Creek and 17th Avenue. Council was made aware that the
City has been working with Venturian representatives in
documenting a waste disposal history of the site to
facilitate the sale of the property to a prospective buyer.
This preliminary site assessment, titled "Site History
Review," describes disposal locations, periods and
activities that could have an impact on conditions of the
area. The scope of the report was expanded to include
property bounded by County Road 3, Nine Mile Creek, llth
Avenue South and the former Chicago Northwestern Railroad,
hereafter referred to as the Justus site.
Staff reported to Council that this site history would be
submitted to the MPCA for review and that in all likelihood
additional investigatory work, e.g. monitoring wells, would
be needed to document the scope of environmental
contamination.
The question of funding for such a site history and
additional investigation was discussed, and Council agreed
to City participation in the cost. Staff has obtained cost
estimates and reached an understanding with Venturian in the
apportionment of the costs.
Primary Issues to Consider.
o What are the costs of a site investigation?
o What is the substance of the agreement?
Supporting Information.
o Costs estimates - Braun Intertec
o Letter from Doherty Rumble & Butler
Analysis.
o What are the costs of a site investigation?
A cost estimate furnished by Braun Intertec projects a total
study expenditure of almost $39,225. This covers the cost
of developing a work plan and its submittal to the MPCA,
installation of monitoring wells and gas probes, data
interpretation, and report preparation. Braun calculates
that the western site (Venturian) be allocated with 65%
($25,500) of the estimated cost and the eastern site
(Justus) with 35% ($13,725) of the cost.
o What is the substance of the agreement?
Although no detailed document is available, City staff has
reached an agreement in principle with Venturian whereby
each party will assume one -half the apportioned cost of a
site investigation. Staff is still in discussion with
Justus representatives concerning their site and feels
confident similar cost - splitting arrangements can be made.
The overall implication of both agreements is the City
spending roughly $20,000 of its own funds on this
investigation. This figure does not vary much from the
preliminary cost presented at the September. 10 worksession.
Staff recommends authorization to enter into an agreement
with Venturian under the above - referenced parameters.
23-0a-91
6 A,CRI IN TBRTEC PHOPCMIX 91 --0019 Site na mel- lopkms Cty Road 3 WWII
I
STAFF COSTS
�R
St Sci 67 Staff &i $67 staff $0 c = =inaicate rate
E3I initials here TOTAL
REPORT SECTION Hours cost Hours oast Hours cost i-iaurs cost EACH
SECTION
20 $1,7001
MPC,A Wa'icrlan Appru+ral 10 $850 I
Manage MW 5
Instatlatim
1
!
20 $1,700 r
$4
TOTAL EACH PERSON 68 $5,780
Other expenses:
Vehicle Rental
LOCAL_ MLEAGE @ .45
TYPING X43
. Pia
GasTech
Consumaties
Surveying
Clearing Utilites
Dewlap w«lcpan
Interpret Anzlyticat Result
Report prep
project wrapup & invoice
Total Other Staff
011-IER ADMIN. SUPPORT 100 $100
Di ng $11,275
Ch $6,
OTHER STAFF Hours Rale Amount
Kewin Ausseta i0 $53
CAD vast= 10 $25
Tech Office 12 $48 $576
Field Tech 72 $48 $3,456
Feld Tech DeviSamp 16 68 1088
LC (invoice tens) 2 $138
Tech 1 3 33
{
$0
$0 $335
$0 t 10 $670
{
$o { 8 $536
o { $2,680
{
$0 I
11 187
480 $216
17 $731 PROJECT TOTAL... $39,217
72 864
6
$135
50(l
450
20 $1.3401
$3040
$1,185
$1,095
$1,216
$4,380
$11,,ato
DOHERTY
RUMBLE
& BUTLER
PROFESSIONAL ASSOCIAT
Attorneys at Law
October 24, 1991
Martha Brand
Leonard, Street & Deinard
150 S. 5th St., Suite 2300
Minneapolis, MN 55402
Re: Venturian Site Investigation
Dear Martha:
I write on behalf of the City of Hopkins to confirm its
understanding of the apparent agreement between the City and
Venturian Corporation to each pay one half of the costs associated
with the proposed environmental assessment work on the Venturian .
property west of Nine Mile Creek and south of County Road 3. At
the meeting between Venturian and City Staff held on October 17th,
the City understood that Venturian agreed to split the costs that
Braun Intertec and its subcontractors will incur in performing the
work plan for this investigation dated October 29, 1991.
If acceptable to Venturian, we ask that Braun submit separate
billing statement to the City and Venturian with the total costs
reflecting the split identified as to each party.
As Steve Mielke advised at our meeting on the 17th, the City
Council has asked for an opportunity to review and approve
proposals for environmental assessments of the Venturian and
Justice Lumber sites. This matter will be submitted to the City
Council for action at its meeting on November 5th. In the
meantime, once the work plan and this agreement have been found
acceptable, the City staff has no objection to sending the work
plan to the MPCA for review.
If Venturian has any disagreement with this understanding regarding
the payment arrangement, please let us know as soon as possible.
Ver��.t1ruly yours,
2800 Minnesota World Trade Center
30 East Seventh Street
Saint Paul, Minnesota 55101 -4999
Telephone (612) 291 -9333
FAX (612) 291 -9313
Writer's direct dial number:
DicY Nowlin, for
DOHERTY, RUMBLE & BUTLER, P.A.
FDN24510 /mmo
cc:
Steve Rifler
Jim Gessele l/
Steve Mielke
291 -9376
3750 IDS Tower
80 South Eighth Street
Minneapolis. Minnesota 55402 -2252
Telephone (612) 340 -5555
FAX (612) 340 -5584
Magruder Building
1625 M Street, N.W.
Washington, D.C. 20036 -3203
Telephone (202) 293 -0555
FAX (202) 659 -0466
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