HomeMy WebLinkAbout2003 [05] May 085-8-03
Page 1 of 2
CITY OF ST. JOSEPH
ECONOMIC DEVELOPMENT AUTHORITY
Meeting Minutes -Special Joint Session with City Council
Wednesday, May 8, 2003
Present: EDA Board Members Mike Deutz, Bruce Gohman and Ross Rieke. Absent: EDA Board
Members Tom Skahen and Larry Hosch.
Also present: City Council Members AI Rassier and Dale Wick, City Administrator Judy Weyrens,
Outsource Management Representative Dean Wick, Amy Shaffer from SEH, Public Works
Superintendent Dick Taufen, Wastewater Treatment Supervisor Jim Marthaler and Cynthia Smith-Strack
of Municipal Development Group.
Chair Deutz called the special EDA meeting to order at 4:06 p.m.
The City Council meeting was also called to order.
Lease Purchase Agreement
Strack indicated a copy of a revised lease purchase agreement for the Public Works Maintenance Facility
was included in the packet. The revised agreement specifically grants the EDA the authority to review
and approve change order requests. Strack clarified the City Council also has the authority to approve
change order requests.
Gohman provided input on the lease purchase agreement. Gohman requested clarification from Bond
Counsel regarding a definitive hold harmless clause. He also indicated a desire to confirm that the
`permitted encumbrances' clause of the agreement provides coverage for all costs typically included in a
net, net, net (triple net) agreement. Gohman specified several other points on pages 10, 11, 14, 16, 22
and 24.
Strack offered to verify the hold harmless clause and triple net agreement language with Bond Counsel.
In addition Strack provided an overview of Section 8.7 "Release of Unimproved Lands".
Moved by Rieke, seconded by Gohman fo approve the revised lease. Motion carried 3-0.
The City Council also approved the lease purchase agreement.
Maintenance Facility Change Orders
Mr. Dean Wick of Outsource Management Group indicated he had drafted change order request #7
earlier in the day. All present requested copies of the change order request and supporting documents.
Wick indicated the need for the latest change order revision was due to the fact a deeper storm water
retention/detention basin is needed. Associated increased costs were reflected in the general conditions
and earthwork subsections. Wick indicated the general conditions reflected an additional six weeks of
work for the project and the earthwork reflected the increased excavation required. Shaffer provided an
overview of the ponding requirements and earthwork needed at the site.
Deutz requested information regarding the roughly $10,000 in cost savings in the earthwork line item
resulting from the change in building location.
Gohman expressed concerns with itemized costs included in the general conditions line item, indicating
they seemed high. Wick offered to review the itemized costs with the contractor. Gohman also
expressed concern with the 2 1/2 % bond upcharge, indicating industry standard for that item is one
percent. Wick indicated the cost was included in the initial project contract between the builder and the
city.
EDA Special Meeting Minutes -May 8, 2003 Page 1
5-8-03
Page 2 of 2
Rassier questioned the need for the increased pond size, the cost of the 'general conditions' line item and
expressed concern over the number of change orders to date.
Strack suggested Wick review the six previous change order requests as a means of providing further
context for persons not familiar with the project's history. Wick provided an overview of all previous
change orders considered, who considered them, their status and the differences between the requests.
Rieke requested a step by step review of all items included in change order seven. Wick provided an
overview of the items.
Rassier, Deutz and Gohman raised concerns about project costs. Rieke suggested Wick return with
detailed information on each line item. Weyrens suggested abreak-out of costs similar to those included
in engineering documents for city street and utility projects. Wick indicated the contractor may not be
able to provide such specific information. Rieke suggested the Project Coordinator be present at the next
meeting.
Additional information and the timeline for ~athering the information was discussed. A meeting was
tentatively scheduled for Wednesday, May 14 at 4:00 p.m.
Moved by Gohman, seconded by Rieke to table the EDA discussion of the change order and adjourn the
EDA meeting. Motio carne 3-O;iMeeting adjourned at 5:06 p.m.
C~ 6~~~~'
EDA Special Meeting Minutes -May 8, 2003 Page 2