04-14-1999 Council Agenda - Laserfiche WebLink

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Howarc R. Green Cor r ipany CONSULTING ENGINEERS April 9, 1999 File: 805140J -0071 The Honorable Mayor and City Council City of Little Canada 515 Little Canada Road Little Canada, MN 55117 RE: NORTH VALLEY, INC. Dear Council Members: As directed at the last City Council meeting, Joel Hanson and I have met with Brad Schmitbauer of North Valley, Inc., to obtain some additional information. In our meeting, Brad indicated that he is in the process of purchasing the north metro portion of Valley Paving. Brad incorporated that portion of the company as North Valley, Inc., May 1, 1998. Currently, Brad owns 60 percent of the operation and 40 percent is still owned by Rich. Brad's plan is to be sole owner within five years. Brad indicated that he makes all of the decisions relative to which projects to bid and operational issues relative to performance of work on the project on which he is the successful bidder. Brad did indicate that at least once a week he meets with Rich to discuss financial issues relative to North Valley, Inc. North Valley, Inc., is approximately the same size as the north metro operation of Valley Paving, Inc., prior to Brad's purchase. Brad has many of the same people still working for him. Brad did state that the foreman for the Little Canada project, if it is awarded to him, would be different than the last time. Brad also indicated that he felt a portion of his problem last time was that they, Valley Paving, Inc., tried to do their own restoration. With the 1999 Street project, Brad's bid includes a subcontractor, Ray Jordon & Sons, as the landscaper who will do all of the necessary restoration work. Brad will be in attendance at the April 14, 1999 City Council meeting should the City Council have any direct questions for him. I would like to restate for the City Council's consideration that we have no concerns about successfully completing the 1999 Street project if awarded to North Valley, Inc. We have spent two meetings and several telephone calls communicating with Brad regarding what we expect from him in a way of performance and Brad has also discussed with us the problems he perceives with the last project in Little Canada. We are committed to not repeating those problems and successfully completing the 1999 Street project. o. /proj./805140J/0071 /140- 0409.april99 1326 Energy Park Drive • St. Paul, MN 55108 • 651/644 -4389 fax 651/644 -9446 toll free 888/368 -4389 Page 31