City Council Minutes 11-02-1998 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday, November 2, 1998 - 5 p.m.
Members Present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen
Members Absent: None
A special meeting of the City Council was held for the purpose of considering bids and award of
the contract for the community center project.
Mark Wentzell of Ankeny Kell Architects reported that nine bids were received on Thursday,
October 29, 1998. The low bid was received from Donlar Contractors at $8,032,340, with the
second low bid by Arkay Construction at $8,134,000, followed by Shingobee Builders at
$8,217,000. The low bid was approximately $300,000 to $400,000 higher than the target budget;
however, Mr. Wentzell felt that the bids were very good considering that various other projects
during the last couple of weeks have bid much higher.
Deputy City Administrator Jeff O'Neill reviewed three options presented by staff for Council
discussion using various alternates. An error was noted in the amount for the electronic controls
alternate, which would need to be corrected from $1,820 to $18,000 far final totals. Option #1
was the least expensive and included the pool ceramic tile, millwork, the main water play
structure, water slide, and the spa pools for a total construction cost of $8,049,600. Option #2
included the additional items of terrazzo flooring in a portion of the building, the wheel park and
fencing, the pool finish, electronic controls, and light fixture in the gallery far a total of
$8,231,800. Option #3 added the operable partition, raindrops and lemon drops, and the lily pad
walk for a total of $8,347,500. O'Neill also reviewed additional project costs such as
contingencies, engineering, landscaping, etc., which totaled $1,777,960. In relationship to the
target budget amount of $9,569,000, option #1 was 2.7% higher at $9,800,008, option #2 was
4.7% higher at $9,996,784, and option #3 was approximately 5.5% higher at $10,125,460.
Rusty Fifield of Ehlers & Associates reviewed the average annual debt service for each option
compared to the target debt service amount of $560,017. Options 1, 2, and 3 were estimated to
have annual debt service amounts of $571,605, $587,290, and $597,891 respectively. Projected
tax impact was also reviewed for each option using increased bond issue amounts to reflect the
actual bid amount. Calculations using a residential homestead property with a market value of
$120,000 resulted in a tax increase of $43 for Option. # 1, $45 for Option #2, and $46 for
Option #3. The HRA is scheduled to meet on Monday, November 9, at 6 p.m., to approve the
bond sale, followed by the Council meeting at 7 p.m. He also explained that the State Auditor
has agreed to notify him of any potential problems found prior to going forward with the bond
sale, but Mr. Fifield assured the Council that Ehlers & Associates as well as Kennedy and
Graven are confident that the City is on solid legal ground to enter into a development agreement
with and sublease to the National Guard.
Page 1
Special Council Minutes - 11/2/9$
..:~,
Council discussed the grant funds for which the City has applied totaling more than $1,000,000.
Jeff O'Neill explained that he was recently informed that 20 communities submitted applications
for the $2 million available through youth initiative funds and that some of the alternates could
be added at a later date if grant funds were received.
A MOTION WAS MADE BY BRUCE TH[ELEN AND SECONDED BY BILL FAIR TO ACCEPT
BIDS AND AWARD THE CONTRACT TO DONLAR CONTRACTORS AS DESCRIBED IN
OPTION #2, AND TO INCLUDE THE OPERABLE PARTITION ALTERNATE.
City resident John Sandberg attempted to discuss with Council the increase in the project amount
and the $9.6 million maximum amount previously approved by the HRA; however, since this
was not a public hearing, Mayor Fair explained that the discussion would be limited to Council
members and staff. It was also noted that the HRA would be meeting on November 9 to discuss
increasing the amount of the band issue to accommodate the project.
After a brief recess to allow staff to calculate final figures, Jeff O'Neill reported that the total
cost of the project as proposed in Councilmernber Bruce Thielen's motion would be
approximately $10,020,000.
VOTING IN FAVOR OF THE MOTION: BRUCE 'I'HIELEN, ROGER CARLSON, BILL FAIR.
OPPOSED: GLINT HERBST, BRIAN STUMPF. Motion carried.
A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY BRIAN STUMPF TO
ADJOURN THE MEETING. Motion carried unanimously.
~.. ~
Karen ty
Deputy City Clerk
Page 2