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01/24/1995 - City Council Special MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota January 24, 1995 A special meeting of the Eagan City Council was held on Tuesday, January 24, 1995 at 5:30 p.m. at the Eagan Municipal Center. Present were Mayor Egan and Councilmembers Wachter, Awada and Hunter. Absent was Counciimember Masin. Also present were City Administrator Tom Hedges, Director of Parks and Recreation Ken Vraa, Finance Director Gene VanOverbeke, and architects for the Civic Arena project, Paul Dahlberg and Jeff Hensel. CIVIC ARENA BID AWARD Administrator Hedges reviewed the bids, noting the bids were good and very competitive. He reviewed the budget for the project and noted that the Civic Arena Fundraising Committee has received $3,00044,000 more in funds. He reviewed the base bid and possible alternates in order of priority. Discussion followed concerning how much the project is short. Parks and Recreation Director Vraa noted that some of the alternates could be done later; however the costs will go up dramatically. The prices on these alternates are very good, which Is why they are being recommended to be done now. He went over the dasher board proposal and indicated they feel the best proposal was $104,000. He noted they received only one proposal for the wading pool, a combined bid from two-companies. Mayor Egan asked a question about the bleachers and Paul Dahlberg explained that the concrete structure would be installed now but the seats could be put in later. Councilmember Awada estimated the base bid overage to be approximately $34,000. Counciimem- ber Hunter asked which alternates were included in the original estimate. Jeff Hensel indicated that none of the alternates were in the estimate. Some alternates were included in the base bid, and some alternates are being strongly recommended due to the excellent bid amounts. He continued that the total construction amount is actually under the estimate, not over. Discussion followed concerning whether the bids were so favorable due to the intent by Mike Gresser and Opus Corporation to provide reduced bids. Even though they weren't the low bidders, it was felt it lead to the favorable bids. Parks and Recreation Director Vraa noted that the bids are within 2% of the estimate which is very good. Councilmember Awada agreed that the bids look good. She noted that the policy question Is whether the Fundraising Committee is short $112,000 due to the fact that the bid reduction proposal by Gresser and Opus Is no longer valid since neither were the low bidder. The Council can either not build the project; absorb the overage; or take a large item out of the project that would be installed near completion of the project with the understanding that it won't be put in unless the committee raises the funds. Councilmember Hunter stated that he feels the Fundraising Committee is only $60,000 short according to his analysis because the bid is $52,000 under the estimate. The Council could go ahead with the project and challenge the committee, in good faith, to raise the additional $60,000. Administrator Hedges noted It will be difficult to not have the seats in the arena. Perhaps the high school should be approached to see If they would be willing to contribute. Councilmember Wachter noted that the Council made a commitment to the public that the project would not go forward unless $600,000 was raised. If the Council agrees to this, how can the City justify it to the public? Pat Dill, of the Fundralsing Committee, stated he thinks the committee met their commitment. They have done everything in good faith to satisfy their obligations. The Opus and Gresser agreement were In-kind contributions, and the bids are lower than their proposals, so he feels their obligation has been met. Some discussion followed 0 (Ile' EAGAN SPECIAL CITY COUNCIL MINUTES; JANUARY 24, 1995 PAGE 2 concerning the bid amounts. Parks and Recreation Director Vraa clarified that the base bids are under budget, but with the suggested alternates, the budget Is over. Councllmember Hunter stated that the committee came up $112,000 short. He stated that according to his analysis, the bids came in $52,000 under the estimate. He is disturbed that the committee is unwilling to raise the additional funds. He feels the city went out on a limb by accepting the Opus and Gresser proposals as In-kind contributions. Now that the project is tangible, people may be more willing to make contributions. Councilmember Wachter asked If anyone approached during the fundraising would contribute If the project was definite. Pat Dill indicated that the committee is exhausted, but they are willing to do whatever needs to be done to make this a reality. He feels the committee has acted in good faith. Mayor Egan Indicated the City would have to front a loan until the money was raised. The City cannot finance it, however. He feels it will be easier now that the project is a reality. He Indicated he was amazed that the committee was able to attain their goal since it was unsure whether the project would be built. He commended the committee on their successful fundraising. Councilmember Hunter noted there are a lot of people who are angry about this project and don't understand why it went through after two failed referendums. There needs to be continued integrity on this process. Councilmember Awada concurred. The Council consensus was that the City has endorsed the Civic Arena project, and the excellent bids provide an opportunity for the City to proceed with the project at this time. Hunter moved, Awada seconded a motion to approve the bids and "priority alternates", per the low bid submitted by Lund Martin, to proceed with the Civic Arena project, with the understanding that efforts will be pursued to raise $60,000 from the community to satisfy the funding match, which includes ISD #196 as a resource for funding. Paul Dahlberg noted that the low bid for dasher boards was from Becker Arena Products. He noted they would like to interview two companies on the refrigeration and the dehumidification systems to see which would be the best system for the facility. Discussion followed concerning the source of funds for the additional city participation. Hunter and Awada proposed a friendly amendment to their motion to include that $1.4 million will come from the Community Investment Fund; with the remaining to come from the Park Site Acquisition & Development fund which has recently received the proceeds from the 1972-73 bond. Aye: 4 Nay: 0 A question was raised as to how to proceed with raising these additional funds. Councilmember Hunter proposed that a new committee be formed to raise these funds. Pat Dill and members of the committee indicated they would prefer not to do that. He suggested members of the committee meet with Administrator Hedges and discuss future action. Councilmember Awada congratulated Paul Dahlberg and Jeff Hensel for their work on this project and keeping it on budget. She feels they did an excellent job. Other Council members concurred. ICE ARENA RESURFACER Parks and Recreation Director Vraa explained that the prices for the Ice resurfaces are. very competitive, but are quite different machines. He explained the differences between propane and electric ice resurfacers and indicated he would like to do proposals rather than bids. He noted the city would save on fuel and maintenance costs ff the electric one is purchased. However, if the city specifies an electric ice resurfacer, they won't get competitive bids. Councilmember Wachter indicated a concern about pollution in the building. Parks and Recreation Director Vraa explained that with a propane ice resurfacer, air quality tests are required on a weekly basis, and more air needs to be circulated into the building. He added that the battery life on the electric ice resurfacer has now been extended to 8 years. Discussion followed concerning the two different types of resurfacers and how it can be funded. Councilmember Hunter asked why it couldn't be funded by user fees and amortized. Finance Director VanOverbeke noted that there would be a cash flow problem because the money would have to be borrowed from somewhere. 00OZ3 EAGAN SPECIAL CITY COUNCIL MINUTES; JANUARY 24, 1995 PAGE 3 It was the Council consensus that an electric resurfacer makes the most sense and concurred with the request for proposal to ensure competitiveness. The meeting adjourned at 8:15 p.m. at which time the Council had a retreat. DLP ti January 24, 1995 r. p, Date City Clerk If you need these minutes in an alternative form such as large print, braille, audio tape, etc., please contact the City of Eagan, 3830 Pilot Knob Road, Eagan, MN 55122, (612) 681-4600, (TDD phone: (612) 454-8535). The City of Eagan is committed to the policy that all persons have equal access to Its programs, services, activities, facilities and employment without regard to race, color, creed, religion, national origin, sex, disability, age, marital status or status with regard to public assistance.