5.4. SR 05-08-1995~~r ~~
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ITEM 5.4.
MEMORANDUM
Mayor & City Council
Pat Klaers, City Administr~r
May 8, 1995
SUBJECT: Ice Arena Update
The ice arena project is continuing to move forward. The city recently hired
Mortenson as the construction manager for this project. The Mortenson
Project Manager Gil Fleischhacker has met with the committee twice.
Everyone is continuing efforts to reduce the cost of the project and raise
revenues in order to close the financial gap that currently exists between the
available revenues and the bare minimum cost of the project.
In spite of the finances for this project not being finalized, some activity on
bids is taking place. This activity is taking place in order to determine the
actual cost of the project and how this matches up to available revenues.
This preliminary activity does not put the city at risk financially.
• The proposed schedule calls for the city to advertise for bids on May 15, 1995,
for the pre-cast concrete and steel components of the project. As previously
discussed with the council, these two construction components are the key
issues for the timing of the entire project. It takes about four months or more
from the time of awarding the bid to actually getting these construction
components on site. The bids are scheduled to be advertised on May 15, be
received in twenty-one days, and presented to the City Council for its
consideration in mid June. An important consideration in the bids will be
how much it costs the city to have the construction drawings prepared and
how much it will cost the city to cancel its bid if all the rest of the project does
not financially "fall into place".
Additionally, it is proposed that the city go out for bids for the rest of the
components of the project in mid June. These bids also will be received after
twenty-one days. At that time, shortly after the July 4, we should have firm
bids for the entire project. The decision can then be made at that time on
whether or not this project should proceed.
The Task Force and Construction Manager Gil Fleischhacker are scheduled
to make a presentation to the City Council on Monday, May 22, 1995. At this
meeting the proposed project schedule and an updated bid estimate for the
entire project will be presented.
• On May 8, Task Force members and Councilmembers Farber and Dietz may
also be able to provide additional information on the status of this project.
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425