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03/07/1995 - City Council Special MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota March 7, 1995 A special meeting of the Eagan City Council was held on Tuesday, March 7, 1995 at 5:00 p.m. at the Eagan Municipal Center. Present were Mayor Egan and Councilmembers Wachter, Awada, and Masin. (Councilmember Hunter arrived at 5:00 p.m.) Also present were City Administrator Tom Hedges, Director of Public Works Tom Colbert, Assistant to the Administrator Jon Hohenstein, Finance Director Gene VanOverbeke, Police Chief Pat Geagan, Chief Building Official Doug Reid and Superintendent of Recreation Dorothy Peterson. CONSIDERATION OF MUNICIPAL CENTER ADDITION AND REMODELING BIDS Administrator Hedges reviewed the bids, noting they are 11 1/2% over budget. The hem with the largest overage was the electrical bid. He indicated he is comfortable with the bidding process even though they came in high. They have determined that the estimate for electrical was in error. He noted it is Important to maintain the integrity of the project. He feels there should be a level of quality similar to the police facility. He noted that several scenarios have been suggested to deal with this overage. He noted that Councilmember Hunter requested quantitative information on what the cost would be to demolish the building and rebuild It. That has been researched, and the breakdown shows that it would be significantly higher. He noted another question raised was whether the community room is needed. He has provided information on the types of events Bumsville's community room is used for. Relative to the bids, Administrator Hedges noted that prices for materials and services are going up and it was not anticipated. Councilmember Masin asked what percentage of overage would be acceptable, and Councilmember Awada responded that there shouldn't be an overage. The contingency should have been able to cover It. Mike Stowe, the Construction Manager for the project, indicated that there is a shortage of almost all tradesmen in the metro area, and materials costs are continuing to go up. He noted there Is a shortage of aluminum, and that steel has gone up six times in the last 13 months. He indicated they were hoping for a competitive bidding market; however, there is no shortage of work right now. The electrical bid amounts are competitive, and the prices are right. Councilmember Awada questioned the electrical bids, asking why the lighting is so much higher than In the police facility. Mike Stowe explained the fixtures proposed, which need parabolic lenses, which makes them considerably higher than the police facility. (Councilmember Hunter arrived at this time.) These fixtures are meant to reduce glare and eye strain for computer users. There are a lot more office areas in the Municipal Center than in the police facility. He also explained that a dimmer system was proposed for the Council Chambers to give better quality In the cablecasting. A portion of that amount is also for outdoor lighting. Administrator Hedges noted it was determined that the number of fixtures and type was wrong in the estimate. Dewey Thorbeck, the architect for the project, added that the Municipal Center has about three time as many fixtures as the police facility. Mayor Egan stated that If the Council had known the correct amounts when the budget was being prepared, items could have been deleted or the design modified to accommodate that amount. The Council doesn't have that option now. He feels the Council expressed very firmly its feelings on the budget. EAGAN SPECIAL CITY COUNCIL MINUTES; MARCH 7, 1995 PAGE 2 Councilmember Hunter noted that it would cost $4.4 million to demolish this building and build a new facility. It is still significantly higher than going ahead with the bids. Councilmember Wachter stated he doesn't think rebidding will save any money. He thinks it will only cost more. He doesn't feel comfortable with the bids, but doesn't see how the Council can do anything but move ahead with the project. Councilmember Awada stated it Is clear that the bids were not wrong-the estimate was. She thinks the project needs to go forward, but she thinks the plan is wrong. She feels the plans are grandiose. She indicated she would vote to rebid if the plan were changed. Councilmember Hunter referred to the report on community room usage. He indicated what he was looking for is what the demand Is. Superintendent of Parks Peterson indicated the use would be similar to Burnsville. Councilmember Awada questioned whether it Is government's duty to provide meeting room space for these groups. If so, she questioned whether it needs to be at the Municipal Center or whether it could be somewhere else. Councilmember Hunter suggested the upper level of the Civic Arena as a possibility. Administrator Hedges explained some potential uses for the community room. Whether the council chambers should be built was discussed. Councilmember Awada stated that this Is the third time this project is over budget. She feels it is out of hand. Councilmember Wachter stated he doesn't feel the upper level of the Civic Arena will be available as a community room. It will be used for programming. He Indicated the new council chambers may not be needed now, but it will be needed shortly. He stressed that the Council needs look at future needs, not just what is needed now. Councilmember Awada agreed; however, she is concerned there won't be any money left in the Community Investment Fund. Mayor Egan noted that a mistake was made, and questioned whether a claim Is In line. He noted there is an arbitration process to determine who is at fault. It would be relatively inexpensive to pursue and would maintain the Integrity of the project. Councilmember Hunter expressed a concern about arbitration, in that the city would have to prove they were damaged. Mayor Egan stated he feels there was damage, because the Council would have modified the design to fit into the budget If the costs were estimated correctly. The Council doesn't have that option now, and therein lies the damage. A redesign of the building was discussed, and how it would affect the contracts with the architect and construction manager. It was determined that the liquidated damages to date are approximately $160,000. Dewey Thorbeck Indicated there is no penalty clause In his contract, so If the building were redesigned, the City would just have to pay him for the work done to date. Considerable discussion followed concerning what the main problem Is and how it can be remedied. Mayor Egan indicated he doubts it Is possible to redesign this project with any type of savings and still maintain the quality needed for this project. He Indicated a space needs analysis was done, and there Is no guarantee that bids will come in any lower than these. He added that there has been a lot of staff time put Into this. Counclimember Awada stated she feels that part of the problem Is micromanagement on this project. Discussion followed concerning the construction management process and how it worked for this project. Councilmember Masin stated that the time to cancel the project was six months ago, not now. However, her confidence level with going ahead has diminished. Administrator Hedges noted that the plans just meet the needs outlined in the space needs analysis that was done. The lobby, council chambers, and community room are public spaces that could be modified. The office areas are very basic. EAGAN SPECIAL CITY COUNCIL MINUTES; MARCH 7, 1995 PAGE 3 Councilmember Wachter again stressed the Importance of planning for the future. If the new council chambers is eliminated, the Council shouldn't plan on adding it later because the heating and ventilation won't work. This building is meeting the needs of the community. It is not grandiose. If the Council waits, costs will just get higher. He thinks voting this down Is a big mistake. There Is nothing In this plan that will be wasted. Mayor Egan stated that If the main concern is the council chambers, eliminating it would bring the project close to being within budget. Councilmember Masin noted that some redesigning would still be needed. After more discussion, it was decided to further discuss the options at the regular Council meeting. The meeting adjourned at 6:00 p.m. DI.P Mach 7, 1995 Date City Clerk