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2 KRAUS-ANDERSON®CONSTRUCTION COMPANY CONTRACTORS & CONSTRUCTION MANAGERS March 27,2002 Mr.Michael J:Mornson Saint Anthony Village 3301 Silver Lake Road St.Anthony,MN 55418-1699 RE: New Fire Station and Public Works Facility Dear Mr. Mornson: It has been a pleasure for Jon Kuenstling and myself to meet with you and other staff recently to learn about the projects being contemplated by the City of St.Anthony. It is our feeling that the City of St. Anthony would get their greatest value by having Kraus-Anderson Construction Company provide Construction Management services for your proposed Fire Station and Public Works projects. Our Construction Management services are comprehensive in that we will assist you not only in the initial study phase of planning and budgeting the project,but also in hiring an architect to provide design services for your project. In addition, our pre-construction services will include project communication, scheduling, cost estimating, value engineering and ultimately the bid and award of the work to trade contractors. Once the project is under construction, our Construction Management services will include full-time site supervision as well as project management of the contractor work. In this way, Kraus-Anderson will provide trade contractors coordination,quality assurance of the work, as well as communicating and administrating the contracts, pay requests and other construction phase items. In the instance that a building project results and Kraus-Anderson is engaged by the City of St Anthony, our fee for these Construction management services would be a lump sum negotiated with the City, based on the actual scope of work of the project. This fee usually ends up in the range of 2% - 3%, depending on the scope and complexity of the building project. We hope this letter summarizes the discussions we have had about Kraus-Anderson's offer to provide the City with comprehensive construction management services, from preliminary through construction. We are excited about the prospect of serving the City of St. Anthony in developing solutions to its facility needs. Should you have any further questions, please do noLhesitate to call me at(763) 786-7711. We look forward to the opportunity to discuss this further in our meeting with the City Council. Very truly yours, KRAUS-ANDERSON CONSTRUCTION COMPANY ST DIVISION ary D.tlenson Vice President GDB/mp Enclosures Midwest Division 8625 Rendova Street, Circle Pines, MN 55014p,�r,\� Phone: (763) 786-7711 Fax: (763) 786-2650