06-08-1992 CC MIN
~ MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL CONFERENCE ROOM
MONDAY, JUNE 8, 1992
Members Present: Vice Mayor Holmgren, Councilmembers Dietz, Kropuenske
and Schuldt (6:50 p.m.)
Members Absent: Mayor Tra11e
Staff Present: Pat Klaers, City Administrator; Bill Rubin, Economic
Development Coordinator
Also Present: Zack Johnson, Eos Architecture
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River
City Council was called to order by Vice Mayor Holmgren at 6:45 p.m.
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The City Administrator noted that
Chamber of Commerce, Jackie Schuelein,
to discuss contributions to the 4th of
Executive Vice President of the
would b~ present at this meeting
July celebration.
2. Award City Hall Contract
Zack Johnson, Eos Architecture, reviewed with the City Council the bids
for the Elk River City Hall/Police Station construction project. It
was noted that fourteen bids were received and opened on June 2, 1992.
BOR-SON Construction from Bloomington, Minnesota was the low bidder in
the amount of $2,182,500. The bids were very competitive with the
highest bid being within 9% of the lowest bid.
Zack discussed with the City Council some concerns over the cost for
mechanical and electrical work. Zack indicated that a meeting was held
with Eos Architecture, the consultants for Eos Architecture in the
mechanical and electrical area and the mechanical and electrical
subcontractors who will be working with BOR-SON on this project. Zack
stated that no negotiations have taken place, but after general
discussions it is his belief that some change orders can take place
that will reduce the cost in the mechanical and electrical areas and
yet the City will still be able to retain the building quality as
originally proposed.
Councilmember Schuldt arrived at this time.
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Discussion took place regarding the alternatives in the bid package.
The City Administrator and Zack Johnson both recommended that all the
alternatives remain in the project. The granite alternative received
most of the discussion from the City Council whereby burnished block
could be substituted and $33,100 could be saved. It was noted that if
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Elk River City Council Minutes
June 8, 1992
Page 2
this alternative was going to be selected, then the decision should be
made at this time. However, a decision on this issue can be made any
time before the contractor orders the material.
COUNCILMEMBER KROPUENSKE MOVED TO APPROVE RESOLUTION 92-49, A
RESOLUTION AWARDING THE CONTRACT FOR THE CONSTRUCTION OF THE CITY
HALL/POLICE STATION TO BOR-SON CONSTRUCTION, INC., OF BLOOMINGTON,
MINNESOTA FOR THE AMOUNT OF $2,182,500 WITH THE CONCERN BEING NOTED
THAT IF THE MECHANICAL AND ELECTRICAL EXPENSES ARE NOT REDUCED THROUGH
CHANGE ORDERS THEN THE CITY COUNCIL WILL CONSIDER THE ALTERNATIVE TO
THE GRANITE MATERIAL. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
2.5. Chamber of Commerce Request
Executive Vice President of the Elk River Area Chamber of Commerce,
Jackie Schuelein, was present to discuss problems that the Chamber is
having in obtaining donations for the 4th of July celebration.
Previously, the Legion, Eagles and VFW have contributed money to the
Chamber of Commerce for the 4th of July celebration, but recent state
law now prohibits these organizations from contributing pull tab
profits directly to the Chamber of Commerce.
Councilmember Schuldt indicated that he believes the State is concerned
with accountability and that this is the reason providing funds to
Chambers of Commerces is no longer acceptable. It was noted that the
City can request money and that it is legal for charitable gambling
organizations to contribute money to cities provided it is not for law
enforcement activities.
Discussion took place on whether or not the City
from the Eagles, VFW and Legion Club and add
the City already contributes to the Chamber of
help finance the 4th of July celebration.
should request money
that money to the funds
Commerce in order to
It was the consensus of the City Council that, provided no legal
concerns exist, the City would request funds from the Eagles, VFW and
Legion Club in order to help finance the Chamber sponsored 4th of July
event.
3. Consider Chuba Company Development Agreement
Economic Development Coordinator, Bill Rubin, reviewed the parameters
of the Developer Agreement with the Chuba Company for the redevelopment
project at 307 Main Street. It was noted that a 6,400 square foot
office condominum is proposed and that it have a minimum market value
for tax purposes of $440,000. Dennis Chuba, owner of the Chuba Company
has reviewed the proposed Development Agreement and has found it to be
acceptable. The maximum funds being provided to the Chuba Company is
$20,000 and this could be lower if actual expenses are lower.
COUNCILMEMBER SCHULDT MOVED TO APPROVE THE DEVELOPMENT
BETWEEN THE CITY AND THE CHUBA COMPANY. COUNCILMEMBER DIETZ
AGREEMENT
SECONDED
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Elk River City Council Minutes
June 8, 1992
Page 3
THE MOTION. THE MOTION CARRIED 3-0-1. Councilmember Kropuenske
abstained as he is involved in a bank loan to the Chuba Company.
4.
Adjournment
There being no further business, COUNCILMEMBER DIETZ MOVED
THE MEETING. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION.
CARRIED 4-0.
The meeting of the Elk River City Council adjourned at 7:15 p.m.
Respectfully submitted,
Patrick D. K1aers
City Administrator
TO ADJOURN
THE MOTION