HomeMy WebLinkAbout2003 [05] May 125-12-03
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CITY OF ST. JOSEPH
ECONOMIC DEVELOPMENT AUTHORITY
Meeting Minutes -Special Joint Session with City Council
Monday, May 12, 2003
Present: EDA Board Members Mike Deutz, Bruce Gohman, Ross Rieke and Tom Skahen. Absent: EDA
Board Member Larry Hosch.
Also present: City Council Members AI Rassier, Gary Utsch and Dale Wick, City Administrator Judy
Weyrens, Outsource Management Representative Dean Wick, City Engineer Joe Bettendorf, Project
Manager Jeff Baggenstoss and Vice President Steve Schultz from Shingobee Builders, 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 5:06 p.m.
The City Council meeting was called to order by Acting Mayor Utsch.
Maintenance Facility Change Orders
City Administrator Weyrens gave a brief update on an organizational meeting held on Friday, May 9, 2003
with representatives from the City and Shingobee Builders. The purpose of the meeting was to give
Shingobee specific direction on what additional bid information was needed to proceed with change order
review. At the meeting, the builder was directed to reinsert previously removed items including fencing
and landscaping.
Baggenstoss then provided an overview of revised change order number seven which was distributed at
the meeting. The revised change order indicates: four additional weeks of project management and field
supervision along with additional temporary facilities, testing, permits and insurance costs; site work
including the excavation of a 120' X 80' X 6' deep retention pond; water system installation; the
installation of paving and pavement markings; landscaping of the site; fencing of the site; concrete work
(curb & gutter, dumpster pad, bollards for dumpster pad); steel materials (bollards); and, mechanical and
electrical changes. The revised change order totaled $148,088.00.
Rassier and Rieke expanded on the possibility of removing the fencing and landscaping items from the
contracted work. Deutz explained past discussions regarding landscaping being performed by the Public
Works Department.
Rassier requested comment on individual items included in the general conditions line item. Further
discussion regarding the appropriateness of the itemized charges followed including, telephone,
electrical, dumpster, permit, testing and surveying services. Weyrens indicated the City could waive the
building permit fee for the maintenance facility affecting both the increased cost itemized in the change
order and the original building permit fee for total savings of an estimated $4,600.00.
Utsch questioned whether any portion of the bituminous surfacing could be removed from the contract
and installed in conjunction with other street project(s). Weyrens indicated the City had previously
discussed removing the asphalt from the Shingobee contract and installing it in conjunction with other
street work, thereby generating cost savings and accessing other methods of payment. Weyrens
indicated the water and sewer enterprise funds can be used to fund bonds for street/utility projects.
Further discussion followed regarding fencing of the site. Baggenstoss indicated the low bidder for
fencing was willing to honor the bid until November of this year. If the City contracts directly with the low
bidder they could achieve cost savings of twelve percent which corresponds to Shingobee's increased
overhead costs and bond/insurance costs.
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City Engineer Joe Bettendorf questioned the amount of granular fill needed to prepare the building pad.
Bettendorf indicated he would approve of slightly adjusting the proposed site contour to allow the
excavator to skim additional base material from the site.
Skahen questioned the total project cost's relationship to the proceeds of the bond. Weyrens indicated if
the EDA and City Council approved the change order as presented City would have to identify an
additional $74,069.00 to finance the project. Skahen clarified that the City, and not the EDA, was
expected to identify additional resources which may include water and sewer enterprise funds and
resources previously earmarked for parks.
Skahen questioned what would occur if the EDA did not support approval of change order 7R. Weyrens
clarified approval by both the EDA and City Council was required. Council member Wick indicated full
denial of the change order would result in costs for storage of the building materials once they are
delivered. Schultz indicated commitments from the sub-contractors would also be delayed if the change
order were not approved.
Additional discussion occurred with comments from Rieke, Utsch and Rassier relative to the removal of
bituminous paving, fencing and landscaping from the contract and the waiving of building permit fees.
Deutz inquired as to whether general conditions would decrease if the items were removed from the
contract. Baggenstoss indicated work on-site could be reduced by one week for an additional cost
savings of $1,800.00.
Weyrens and Council Member Wick reported the following estimated reduction in costs associated with
removing items from the contract as discussed:
Item Removed from Change Order Overall Cost Savings
Removal of asphalt paving $27,031.20 $ 2,896.20
Removal of Fencing $ 7,963.20 $ 853.20
Removal of Landscaping $ 8,736.00 $ 936.00
Waiving of Building Permit Fee $ 1,452.64 $ 5,152.00
Reduction in General Conditions $ 2,016.00 2 016.00
TOTAL $47,199.04 $11,901.40"
*Paving, fencing and landscaping will still be completed as separate city projects, therefore the overall
cost savings is $11,901.40.
EDA Board Member Skahen questioned whether a change order in the amount of roughly $100,804
would be acceptable for change order 7R. Deutz requested a summary of all costs associated with the
project, assuming change order 7R remained at that amount. Weyrens reported site acquisition and
assessments costs of $219,250; plus building costs of $381,750; plus a previous change order in the
amount of $1,856 and the proposed change order 7R in the amount of $100,804. Asphalt paving, fencing
and landscaping would be additional at time of installation. Strack noted zoning ordinance requires
paving, fencing and landscaping in conjunction with the project.
Gohman inquired as to additional fees for architecture and engineering. Wick indicated those costs were
part of the original contract. Skahen asked about the total bond proceeds available for the project.
Weyrens indicated proceeds were $654,734.81. Skahen confirmed the remaining shortfall would be
covered by other City resources.
Moved by Rieke, seconded by Skahen to approve change order 7R without asphalt paving, fencing and
landscaping items for a change order 7R total of $100, 804. Motion carried 4-0.
The City Council entertained and approved a similar motion.
Moved by Gohman, seconded by Skahen to adjourn the EDA meeting. Motion carried unanimously. The
EDA m eting~~adjour d of 6:1_6 p~.
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