5.6. SR 01-23-1995
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ITEM 5.6.
MEMORANDUM
TO:
Mayor & City Council
FROM: Pat Klaers, City Administratoc/ J
,
DATE: January 23. 1995
SUBJECT: Ice Arena Update
The ice arena project is moving forward and it is appropriate for the Council to receive an
update on this project at its 1/23/95 meeting. Project architect, Chuck Freiberg, from
RSP Architects, Ltd., will be present to review the plans for the project. Attached for
your review are some pages from the project proposal.
Construction Manager, Mr. Brad Lemberg, from Independent Consulting Engineers, Inc.,
will also be in attendance at this meeting to review with the City Council the estimated
costs for various components of the project. At this time, it is estimated that the total
project will cost approximately $2.45 million. This is less than the project estimate that
was discussed with the City Council on 11/28/94. The amount discussed in November
was approximately $2.8 million.
e In the attached memo from Mr. Lemberg there are approximately $476,500 worth of
possible deductions from the project. If all of these deductions took place, the project
would be slightly under $2 million. It should be noted that it is not possible to deduct all
of the items listed. Such items as the parking lot (#2), the utility work (#3), and the
landscaping (#14) have to be constructed, but Mr. Lemberg is showing these as possible
deductions because he hopes they can be financed outside of the bond issue. These three
items are about $50,000. Also, it is a goal of the Task Force to have such items as #4 and
#5 (referring to bleachers) incorporated into the project at this time. Nonetheless, if $2.45
million is not available, and it doesn't look like it will be, some of these deduction items
could be added at a later date.
Regarding the finances for the project, Mr. Lemberg indicates that with all the deductions
we are still above the project budget of $1.8 million. This was the estimated amount that
would be available from a bond sale based on approximately $220,000 per year being
available for debt. We have very positive information from the local banks that a bond
sale in the open market will not be necessary and that the City can directly negotiate the
selling of bonds to our local banks. Due to the local banking requirements versus the
requirements for the selling of bonds on the open market, it is now estimated that we will
have more than $1.8 million available for the project. The amount for the project could
be as high as $1.9 million.
-
13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. (612) 441-7420. Fax: (612) 441-7425
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At this time, it is necessary for Elk River Youth Hockey Association and other
individuals to do some fundraising for this project. In order to do a $2 million project,
either additional funds have to be raised, or the bids have to come in low. In order to do
the $2 million project plus some bleachers (approximately $200,000), additional
contributions have to be received.
In the discussions with the banks, the City is looking at a twenty year debt structure
where the interest rate is fixed for five year intervals. It is estimated that less than
$200,000 will annually be necessary for the first five year period. The financing
recommendations will get to the City Council in the next 30-45 days. The financing
recommendations will also require some City Council action on the "worst case"
scenarios for operating expenses and the repayment of debt for this project. Based on our
available funds for debt (revenues minus expenses) and the amount ofthe payments that
will be needed for this project; no City funds are anticipated to be needed for either the
project debt or operating expenses.
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At this time, everything looks positive from a financial point of view in order for this
project to move forward. The project is slightly behind in its original timetable. This
timetable, dated 11/2/94, is attached for your reference. In order to not fall further behind
in our timetable, and in spite of the finances not being 100% finalized, it is recommended
that the City Council authorize the architects to move forward with this project. As the
Council may recall, the architects were only authorized to do phase one of the project. At
this time, as far as the Task Force can see, the project is a reality and the City should
authorize the architect to proceed in order for the project to be completed this year.
Within the next few months, not only will the City Council have to approve the funding
for the project, but they will also have to review and consider some land transactions
between the City, School, and Youth Hockey. Also, the Planning Commission and City
Council will be reviewing an administrative subdivision and conditional use permit for
this project along with landscaping, parking plans, cross easements for parking, and
access easements to School Street. Further along in the project, the Council will be
authorizing the project to go out for bids, awarding the bids, and monitoring the
construction of the project during the summer of 1995.
The Council should also be aware of one other issue related to the finances of the project.
As I understand it, there is some possible legislation that is going to be introduced that
would provide up to $250,000 per community for the construction of new ice arenas. The
goal is to help fund new arenas in order to meet the gender equity state law requirements.
However, it appears that Elk River will be moving forward with this project prior to any
legislation being approved or signed into law. If this is the case, we may not be eligible
for any ofthese construction grant monies, simply because our project was bid out before
any state law was approved. The Task Force needs to do additional research on the status
of this possible legislation and whether or not Elk River would be eligible for any funds.
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One of the final issues regarding this project that is just beginning to receive some
discussion by the Task Force is the ice arena management board. The City Council, if it
owns one or both of the facilities, will have the final say over all aspects of the ice arena
operations. However, the Council will have to rely greatly upon an Ice Arena Board that
has more expertise in the operations of the ice arena and more time to commit to
managing the facility. The size, shape, structure, and rules of such a governing board that
makes recommendations to the City Council is just now beginning to be discussed.
However, the importance of this Committee/Board cannot be understated as this ice arena
is a significant and complicated financial undertaking. Furthermore, through this
operation becoming a City facility, we will be adding additional City employees such as
an Ice Arena Manager. Currently there is an Ice Arena Manager that is employed by
Youth Hockey, and the retaining of this individual in this capacity as a City employee
will also need City Council and Task Force discussion.
Recommendation
It is recommended that the City Council authorize RSP Architects, Ltd., to proceed with
the completion of their contract with the City for the ice arena project. The additional
work for the architects includes completion of the design development, construction
document, bidding, and construction phases.
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INPEPENDENT
CONSUL TING
_ENGINEERS, INC.
80 W. County Road C
Little Canada
St. Paul, Minnesota 55117
Suite 801
Bradford A. Lemberg, P.E., President
PHONE: 612-482-9313
FAX: 612-482-9558
MEMO
Project No. 230294
TO:
FROM:
DATE:
Elk River Ice Arena Task Force
Brad Lemberg
January 5, 1995
The attached listing of Opinion of probable Cost for the
Elk River Arena Expansion project is made up a a prelimi-
nary opinion based on the schematic drawings.
The anticipated total cost of the the "finished" arena
including all fees etc. is $2,448,289, as shown on the
attached statement of Probable Construction Costs.
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possible deducts as listed are in the amount of $476,500.
There are only some of the costs that may be deducted as a
part of the first phase of the project. Other possible
deducts are to omit the glass and frames for windows,
delete some of the rubber flooring and obtain used belting
from a gravel pit or other source, hold expansion of the
lobby public toilet area until second phase and several
others.
By deleting the items shown and priced the opinion of the
project cost is $1,971,789. This is $171,789 over the
budget of $1,800.000.
with help from the Hockey Association, donations and
possible fundraisers and also reduced prices from local
contractors this budget should be very easily met.
The cost shown herein are preliminary in nature and will
be revised at the time the plans are more detailed.
It is recommended that the City Councel authorize the
design team to proceed with the preparation of construc-
tion documents.
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INDEPENDENT
CONSUL TING
_ENGINEERS, INC.
Bradford A. Lemberg, P.E., President
Statement of probable Construction Cost
project:
City:
state:
Date:
Pro ject No.:
Estimate No:
General Data
Building Type:
Construction start:
Construction finish:
Total weeks-bid and
construction:
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Di v .1
Div.2
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80 W. County Road C
Little Canada
St. Paul, Minnesota 55117
Suite 801
PHONE: 612-482-9313
FAX: 612-482-9558
Elk River Ice Arena Expansion
Elk River
Minnesota
January 5, 1995
230294
1 - based on schematic drawings
In-door arena
April 15, 1995
October 1, 1995
28
Division 1 contracts
Division 1 contract
Total
sitework
2060 Demolition
2350 Piles and caissons
2200 Earthwork
2440 Site Signage
2450 Flag poles
2510 Ashpalt paving
2560 Site concrete
2700 Site utilities
2900 Landscape work
2020 Lawn Irrigation
2920 Chain link fencing
Sitework total
$10,000
o
$18,000
o
o
$30,000
$24,000
$14,000
$8,500
$3,000
$107,500
page 2
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Div.3
Concrete
3300 Cast in place concrete
3400 Precast concrete
Concrete total
Div.4
Masonry
4200 Unit masonry
Masonry total
Di v .5
Metals
5100 structural Steel
5400 Cold formed metal framing
Metals total
Di v .6
Wood and plastics
6100 Carpentry rough and finish
6400 Custom casework
wood and plastics
total
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Div.7
Thermal and moisture protection
7100 waterproofing
7150 Bituminous dampproofing
7200 Insulation
7250 Ext. Insul. & finish systems
7500 Roofing
7600 Metal roofing
7900 Joint sealers
22,000
313,000
$335,000
18,000
$18,000
250,000
30,000
$280,000
10,000
5,000
$15,000
4,500
105,000
3,500
70,000
8,500
5,000
Thermal and moisture
protection total $196,50U
Div.8
Doors and windows
8100 Doors, frames, hardware
8400 Glass and aluminum
8300 Special doors
Doors and windows
total
Di v . 9
Finishes
9250 Gypsum drywall .
9300 Tile ceramic & ~T.
9512 Acoustical tile ceilings
9660 Resilient floors
9680 Carpeting
9900 Painting
9961 Vinyl wallcovering
Finishes total
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13,000
3,500
6,800
$23,300
4,000
5,000
2,000
8,000
20,000
$39,000
Page 3
Div.l0
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Div.ll
Div.12
Div.13
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Div.14
Div.15
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Specialties
10160 Metal toilet partitions
10550 Locker room benches
10300 Kitchenette
10320 Kitchen equipment
10400 Interior signage
10500 Metal lockers
10520 Fire extinguisher & cabinet
10800 Toilet & bath accesories
Specialties total
Equipment
11200 Ice resurfacer
Equipment Total
Furnishings
12700 Telescopic bleachers(1700)
12750 concrete bleachers
3,000
1,500
500
1,500
1,500
800
$8,800
o
96,000
99,000
Furnishings total $195,000
Special construction
Running track
Sub-Division
13160 Ice rink general
13161 Ice rink refrigeration
13162 Ice rink floors
13163 Ice rink equipment
249,000
100,000
included
above
110,000
1,500
13164 Ice rink dasherboards
13165 Ice rink accessories
35,000
460,500
Special contruction
total $495,500
conveying systems
14100 Dumbwaiter
14200 Elevators
14600 Wheelchair lift
Conveying systems
total
Mechanical
15300 Fire protection
15400 Plumbing
15450 Special systems
15600 HVAC
Mechanical total
24,000
$24,000
40,000
72,200
142,400
$254,600
e page 4
Div.16
Electrical
16000 Electrical work
16100 Demolition(in 2060)
16200 Basic electrical systems
16300 Main service
16400 Power wiring
16700 Special systems
76,917
o
40,522
22,200
15,950
2,000
Total electrical $157,589
project contingency $150,000
Total construction cost $2,299,789
professional fees 138,500
3,000
7,000
Special engineering reports-civil
soil
Total probable project cost
Project Notes:
e 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
.
Section 13162 ice rink floor - price includes
concrete floor - if sand floor is acceptable
Parking area paid by city or school
If utility lines installation by school
Omit stacking bleachers at this time
Omit fixed bleachers at this time
Delete interior painting for now
Omit toilets in team. rooms for now
and build only 2 locker rooms per program
Omit running track
omit corner storage rooms
Omit curbing in parking lot
Omit painting of exterior
Omit new entry vestibule/office/ticket room
Omit remodel of concession/rental office
Landscaping
Omit chain link fence
possible deduct total
possible Phase I Cost
$2,448,289
refrigeration
deduct $50,000
deduct 30,000
deduct 14,000
deduct 96,000
deduct 99,000
deduct 10,000
deduct 28,000
deduct
deduct
deduct
deduct
deduct
deduct
deduct
deduct
55,000
18,000
12,000
4,000
38,000
10,000
8,500
3,000
$476,500
$1,971,789.00
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ELK RIVER ICE ARENA EXPANSION
.
preliminary Project Schedule
November 2, 1994
Item
Set up arena financing
RFP to architects
project On-Site Walk Thru
Receive arch proposals &
Short list architects
Interview & select architect
Council approval of architect
~epare construction documents
"""P & S)
Plan review (Bldg insp. etc.)
Plan review & authorize bids
by Council
. Advertise for bids
. Receive construction bids
. Bids accepted & approved
by Council
. Contracts out for contractors
. Building construction
. Start rink floor
. Pour rink floor
. Start-up & test equipment
.~en Arena - starting skating
Dates Interval
Nov 4 - Nov 28, 1994
Nov 7, 1994
Nov 10, 1994 at 2:30 P.M.
Nov 15, 1994
Nov 22-23, 1994
Nov 28, 1994
Dee 5, 194 - Jan 27, 1995 (8 weeks)
Jan 30 - Feb 6, 1995 (I week)
Feb 6, 1995
Feb 8 - Mar 1, 1995 (21 days)
Mar 2, 1995
Mar 6, 1995
Mar 6 - Mar 20, 1995
Mar 27 - Sept 25, 1995 (6 months)
Aug 14, 1995
Aug 28, 1995
Sept 25, 1995
Oct 1, 1995
3.3
Ice Arena Proiect
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Jeff Gongoll. Ice Arena Task Force Chair. reviewed the staff memo on this
topic. Staff memo included the following components:
· financial reports;
· task force recommendation to hire RSP Architects for design services
for the Ice Arena Project;
· review of the schedule for Ice Arena Project and target dates.
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Jeff Gongoll stated that the task force will be requesting council
authorization to hire RSP Architects to provide the necessary schematic
design and fine tuning of the costs for the project. Jeff Gongoll
introduced Brad -- Lemberg who is a construction manager for the Ice
Arena Project. Councilmember Dietz questioned Mr. Lemberg as to cost
projections for the project. He stated he did not want to commit money
for an architect until he is assured that the City can afford the project.
Brad Lemberg stated that he would like the Council to consider hiring an
architect to provide preliminary drawings, soil borings and schematics in
order to get more accurate cost projections for the project. He stated
that an average cost for an ice arena, completely finished at 49.000
square feet, would be approximately 2.8 million dollars.
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Dave McGillivray of Springsted briefly summarized the financing options.
He indicated that funding by gross revenue bonds would be the most
viable. He explained that funding by gross revenue bonds requires that
bond payments are derived from the revenues of the facility, therefore,
binding the City to operate the ice arena for the life of the bond. He also
explained that the City would be required to hold $260,000 to pay for the
bond issue in case the ice arena does not raise enough revenue to pay
for the bond.
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COUNCILMEMBER HOLMGREN MOVED TO DIRECT STAFF TO ENTER INTO
NEGOTIATIONS WITH THE RSP FOR DESIGN SERVICE AT A MAXIMUM OF
$89,500, WITH THE $89,500 BEING PAID IN INCREMENTS AS THE PHASES OF
THE PROJECT ARE COMPLETED. COUNCILMEMBER DIETZ SECONDED THE
MOTION.
Council member Holmgren thanked Finance Director Lori Johnson and
City Administrator Pat Klaers for their work on the ice arena project.
City Council Minutes
November 28, 1994
Page 3
.
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Councilmember Dietz stated that he would prefer to pay an initial fee of
$15,000 to RSP and at that point, it will be determined if the project will be
viable.
COUNCILMEMBER HOLMGREN MOVED TO AMEND HIS MOTION TO STATE
THAT THE FIRST PHASE, WHICH INCLUDES CONCEPTUAL SCHEMATIC DESIGN,
BE CAPPED AT $18,000. COUNCILMEMBER DIETZ SECONDED THE
AMENDMENT. THE MOTION AS AMENDED CARRIED 3.0.1. Councilmember
Scheel abstained.
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