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08/16/1994 - City Council Special MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota August 16, 1994 A Special City Council meeting was held on Tuesday, August 16, 1994 at 5:00 p.m. in the lunchroom of the Eagan Municipal Center. Those in attendance were Mayor Egan and City Councilmembers Awada, Hunter, Masin and Wachter. Also present were Director of Public Works Colbert, Park and Recreation Director Ken Vraa, Administrator Tom Hedges and members of the Civic Arena Fundraising Committee. EAGAN CIVIC ARENA FUNDRAISING COMMITTEE Doug Franzen, a member of the Civic Arena Fundraising Committee, reviewed the committee's fundraising efforts, specifically the time frame and amount of effort the community provided In the last 15 months to meet the $600,000 commitment. He also Introduced several members of the committee who were present, and thanked them for their involvement. Brad Schmidt, a member of the Civic Arena Fundraising Committee, reviewed the results of their fundraising campaign to date. He noted their total net cash contributions total $86,300. He reviewed who they have received contributions from, and reviewed their "Dreams Can Come True" raffle. He noted they have confirmed pledges of $302,750, and added they can start collecting these pledges as soon as this is approved. He reviewed who they have received pledges from. He explained other in-kind services, Including donation of products of $23,056; donation of building materials of $22,800; and sweat equity projects valued at $40,320, for a total of $86,176. He noted they saved $34,000 by awarding the bid to Arena Consulting & Construction, Inc., and have commitments for a reduction in construction and materials of $75,000-$150,000, if the project is done by Mike Gresser and Opus Corporation. This brings the total raised to between $609,226 and $684,226, depending upon the savings realized during construction. He noted they are still waiting on a lot of donations they haven't heard back from. Councilmember Hunter questioned whether some of these items are subject to competitive bidding and referred to the City Attorney's memo relative to this issue. He particularly questioned the in-kind services, construction and materials, and the reduction in design services. Brad Schmidt noted that Arena Consulting & Construction was awarded the bid, and this savings Is already realized. Hunter questioned whether the $34,000 savings can really be considered money raised. Just because one subcontract was under budget doesn't mean another one won't go over. Administrator Hedges noted that in-kind services can be excluded from competitive bidding if the amount is under $25,000. He noted that Mr. Gresser alluded to a change in the law that would allow him to build the arena through donations; however he has not been able to find such a law as it pertains to public buildings. Councilmember Masin asked what they are looking for from non-profit organizations. Brad Schmidt Indicated that for organizations that have a 501(3)(c) exemption, they can buy equipment tax-free. The savings could amount to $16,000-$18,000. John Freeman added that because it hasn't been clarified whether that can actually be done, it was not Included in these figures. Councilmember Hunter stressed that the city needs to audit the cash and pledges to make sure they are accurate and solid. If any of the pledges are risky, that needs to be quantified and that amount needs to be covered. Brad Schmidt indicated he would be willing to go over the figures with city staff. Councilmember Awada questioned the offers by Gresser and Opus Corporation to build the arena at a substantial savings. She would like more details. Brad Schmidt indicated they looked at the costs Involved with building the arena, and have committed to building it for $75,000 less than what they would r OILo have bid it at. Hunter asked whether they have been told that this needs to go out for competitive bids. Administrator Hedges indicated he told them he thought the project would have to be bid; however, he feels the same thing can be accomplished using competitive bids. If they are willing to build it at such a reduced cost, chances are they would be the low bidder. He noted that both Gresser and Opus have indicated they would like to review the plans to see If they can further reduce the costs. Wachter stated he feels both companies would do a good job; however, he feels this must be done with competitive bids. Awada and Hunter concurred. Members of the committee indicated they need the city to acknowledge that the committee. met their goal, and indicated they are worried about inflation driving the costs up. They stressed that this project needs to move forward. Considerable discussion followed concerning how soon the project could be bid, when would be the best time to bid the project, and whether winter construction would add to the construction costs. Upon committee members expressing a need to bid this as soon as possible, a suggestion was made to bid the project in the Fall for Spring construction. It was the consensus of the Council that the fundraising commitment by the Civic Arena Fundraising Committee be ratified, subject to the audit and a risk assessment on the pledges. The presentation by the architects was delayed until after the regular Council meeting due to time constraints. HOLZ FARM City Attorney Sheldon indicated that if the City is interested in acquiring the Holz farm, it would be necessary to provide access to Outlot B. Because of this requirement, he feels if the City wants to acquire this farm, they should also acquire Outlot B and Lot 10. He estimated the cost to be between $120-180,000. Both Outlot B and Lot 10 are owned by Bob Middlemist, who also has a right of first refusal on the Holz farm. Councilmember Wachter asked how the Parks, Recreation and Natural Resources Committee feels about this acquisition. Parks and Recreation Director Vraa noted that the board is worried about losing any open space right now. They feel it is expensive, but important. Councilmember Awada stated she feels the cost is too high, and it is the wrong location for this type of park property. Mayor Egan concurred, stating he feels there is more suitable land elsewhere. Wachter stated he thinks the City should acquire all three lots, or none at all. Hunter also feels the cost is too high. Discussion followed concerning whether the O'Neil farm should be pursued. Mayor Egan asked whether the Parks, Recreation & Natural Resources Committee feels this Is a priority. Parks and Recreation Director Vraa indicated it is important, but it is not top priority. He suggested that they could submit a purchase agreement to both Middlemist and the Holz', both contingent upon the sale of the other. After more discussion, the consensus was to not pursue this location at this time. The meeting recessed at 6:38 p.m. The meeting reconvened at 10:00 p.m. Paul Dahlberg, of Arena Consulting & Construction, Inc. reviewed the site plan, noting they wanted to set the building as low as possible. There were better soil conditions than they expected. He reviewed four possible locations for the wading pool, and the advantages and disadvantages of each location. He discussed the amenities available and the costs associated with these amenities. He noted that $100,000, would basically provide for the pool, with five feet of concrete around it, a filtration system, and a chain link fence. i..> 01c0 4:.3 EAGAN SPECIAL CITY COUNCIL MINUTES; AUGUST 16, 1994 PAGE 3 Parks and Recreation Director Vraa Indicated there Is room on the site to expand the facility to Include a second sheet of ice, a gym, or a swimming pool, but the location of the wading pool will affect that. He did express a concern about the ice arena and swimming pool sharing the same facilities. He is concerned about safety when there are people with skates sharing the same area with barefoot people. Parks and Recreation Director Vraa indicated they will move ahead with the design development package and will bring It back for a formal decision on September 6th in order to proceed to formal plans and specifications. They will come up with some options on the wading pool to see what the Council wants included In the project. Members of the committee again expressed a concern about the time frame. They stressed that they need Council approval so they can start collecting pledges. Mayor Egan noted he feels that approval has already been given, contingent upon the audit. Councilmember Awada stressed she doesn't want the budget to exceed $1.9 million. She suggested creating a committee to review the options and stay within that budget amount. Wachter and Egan volunteered to be on the committee, along with the architect, the Parks and Recreation Director, and two members of the Civic Arena Fundraising Committee. Concern was again expressed by committee members about the time needed to prepare bids and specifications. Pat Dill stated he is concerned that if there is a problem down the road, that the Council can come back and say the committee didn't meet their goal by the deadline. Hunter indicated that the Council could extend the deadline; however he feels that the Council's ratification tonight is acknowledgement that the money has been raised and the commitment fulfilled. The Council concurred. Mayor Egan stated he would like to see the plans and specifications done as quickly as possible, but he also wants a quality product. Councilmember Hunter noted that in June, the Council agreed that if the pool goes over $100,000, either it would be removed from the project, or the City would put in more money to construct it. He feels the basic design is acceptable, and favors site #2, which Is the site off the northeast comer of the civic arena. Awada and Egan concurred. Councilmember Masin expressed a concern about putting the wading pool where a swimming pool could be put in the future. Mayor Egan noted that if the wading pool is put farther away from the civic arena, the cost will go over budget. Awada noted she feels the best location for the pool is downtown. The consensus of the Council was to put the wading pool at site #2. The meeting adjourned at 11:00 p.m. DLP August 16, 1994 Date City rk 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.