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HomeMy WebLinkAboutWK February 25, 2003 0»'ùLu;Þ O-ð-J LU·-'\.èt:tv1.3-f& -63 CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US Special City Council Workshop Tuesday, February 25, 2003 Conference Room A 1. Call to Order - 7:00 p.m. 2. Consider Community Center RFP Selection Committee Recommendations - Administration 3. AHYHA Update - Finance 4. Other Business 5. Adjournment CITY of ANDOVER SPECIAL CITY COUNCIL WORKSHOP - FEBRUARY 25, 2003 - MINUTES A Special City Council Workshop was called to order by Mayor Mike Gamache at 7:03 p.m., Tuesday, February 25, 2003 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, MirmesotL Council Members present: Mike Knight, Don Jacobson, Ken Orttel, Julie Trude Council Members absent: None Also present: John Erar, City Administrator Jim Dickinson, Finance Dirèctor Dave Almgren, Building Official Dave Berkowitz, City Engineer Others AGENDA APPROVAL MOTION by Jacobson, seconded by Orttel to approve the agenda as presented. Motion carried unanimously. CONSIDER COMMUNITY CENTER RFP SELECTION COMMITTEE RECOMMENDATIONS Mr. Erar introduced Harold MezilIe, the YMCA President and CEO and Phil Nyvall, the General Manager of Properties and Facilities of the YMCA. Mr. Erar reviewed his memo regarding the selection process for architectural and construction management services, noting that 39 proposals were received and 17 were selected for interviews. The committee spent approximately 17 hours interviewing fIrms and almost 10 hours deliberating the merits of the various proposals. He explained that the committee articulated 21 considerations that supported their recommendations. Mr. Erar continued his review, noting that the firms felt a realistic budget for this project is $14,000,000. Many of the firms stressed the importance of air quality systems, energy management systems and architectural appeal. Mr. Erar noted that the committee chose to make recommendations on both separate contracts for architects and construction managers and also for joint proposals. Votes Special City Council Workshop February 25, 2003 - Minutes Page 2 were taken for the joint service proposals with Ryan Companies receiving 6 votes and Opus receiving 1 vote. The committee then voted on separate service proposals with RJM Construction and Rozeboom-Miller receiving the majority. Mr. Erar reviewed the fees associated with the proposals, noting that on a $14,000,000.00 project budget Ryan's fees would be $1,477,630. RJM and Rozeboom-Miller's fee would be $1,326,983. Mr. Erar reviewed the conclusions the committee felt were important to the project such as using durable finishes and quality materials and constructing the center in a cost- effective, aesthetically pleasing, attractive manner. The committee identified a range between $12,250,000 to $14,000,000 to build the center. Five members felt that the project cost would be between $13,000,000 and $14,000,000 and two members felt the cost would be between $12,150,000 and $12,500,000. Mr. Erar asked Council to take the following actions: 1) determine whether to use Joint Consultant Services or Separate Consultant Services; 2) appoint the firm or firms; and 3) establish a project budget, direct staff to prepare a project cash flow analysis and begin negotiations with theY MCA regarding a lease commitment agreement. Councilmember Jacobson asked what quality standards were provided to the fITIlls who submitted proposals. Mr. Erar stated that most firms presented different types of materials as indicated in a council adopted resolution. Also, most proposers indicated that the cost would be between 13 and 14 million dollars to get those standards. Council discussed the process the firms went through to come up with their proposals. Mr. Erar stated that most of the fIrms felt they lacked the complete understanding of the type of design and the amenities the building would be composed of. Councilmember Orttel didn't feel we would have a true number until a fITIll is appointed and they draw up a set of plans. At that time we would get an engineering estimate of the project cost. Mr. Erar noted that we received cost estimates from a number of firms ranging &om 9.5 million to 16.234 million. The RFP process served to confirm the cost per square foot. Councilmember Knight stated that Opus got their concept &om our website. Council member Trude also noted that Opus didn't do a cost per square foot. They had spec sheets with the components priced out. Council members questioned the matrix provided showing that some of the firms that were interviewed were unclear about some of the items listed. Mr. Erar explained that he put the matrix together prior to the interviews as a preliminary review of the proposals. -. ~- Special Council Workshop February 25,2003 - Minutes Page 3 Councilmember Trude felt that this is a very important public project and a lot of people will continue to follow it. MOTION by Trude, seconded by Knight that we set up interviews with the fIrms listed plus Opus to get answers on bonding, tax implications, etc. Councilmember Knight noted that money has to be a big consideration because we're 100king at some big cuts at the state level. Councilmember Jacobson asked what Mr. Dickinson was estimating the cost of the community center to be when he did the spreadsheets in September 2002 regarding lease revenue with donations. Mr. Dickinson noted that it was 13.5 million dollars. Councilmember Jacobson asked if we will be able to afford bond payments if the Governor's proposal goes into effect. Mr. Dickinson responded that there are a lot of unknown variables as to what the legislature is going to do so we don't have an answer. Councilmember Orttel asked if the motion means that we should re-interview the individuals. Councilmember Trude stated yes as there are many questions that need to be asked. Councilmember Orttel explained that the committee that did the interviews was composed of professionals and he didn't think he could do anything different or better than the committee did. Everything has been discussed and analyzed. Councilmember Trude stated that she would feel better talking to her constituents if the Council interviewed the firms. Councilmember Jacobson noted that once we select a f= or firms we will tell them what we are going to use as a figUre for the project and they will base their fees on that number. Mr. Erar stated that the fees for professional services are a percentage of what the final project cost will be. He also noted that the YMCA is a very important part of this as their lease payments will be for the debt service the city will incur. Harold Mezille, YMCA, felt that it is important to build a quality facility. If the specifications are not appropriate, you find yourself spending more money later on. Phil Nyvall, YMCA, noted that it was quite a process with 17 hours of interviews. Mr. Erar's write-up is accurate and complete. Council does have some difficult budgeting considerations, He felt that the project is closer to $14 million. He explained that in the process of selecting someone, part of the process is to come up with skematic plans. From there you try to develop the project on budget. Special City Council Workshop February 25, 2003 - Minutes Page 4 Councilmember Jacobson asked what obligation we have to the fIrm selected. If the architect says it's now going to be $15 million and we decide to drop the project, do we have a financial obligation to the firm? Mr. Erar explained that we would negotiate that in the contract. There would be some fmancial expenses that the firms would want to be paid for up to the point where the project would be stopped. Councilmember Trude stated that a project of this size is going to require the whole group to work together. She is asking Council to give up a couple of hours so her concerns can be answered. Councilmember Knight stated that he resents the inference that Councilmember Orttel feels that the thing with Opus is about friendship. He hasn't spoken to anyone at Opus since this whole thing started. He checked with the city attorney who found no problem. Mr. Erar also checked with the city attorney and he said there was no problem. Councilmember Orttel stated he was not implying that Councilmember Knight did anything wrong. The problem is taking someone who had no votes and bring them back to be interviewed. Councilmember Trude noted that a member of the committee had asked her several times why Opus was not being interviewed. Mayor Gamache noted that what he uses to make his decision is experience with YMCA's, ice arenas, etc. He didn't know what more he could ask the firms. Councilmember Jacobson asked what the interviews would be based on if the fIrms were re-interviewed. Councilmember Knight stated that he would abstain from voting. Councilmember Orttel noted that the ultimate decision is what it will cost the residents. It would seem more logical for Jim to do a pro forma based on a $12 or $14 million facility so we know what the net cost to the public would be. That will determine how much of a building we can afford. He stated that he would not be available for any interviews or meetings from March 5 through March 15. Councilmember Trude asked if he would be unhappy ifCouncil did the interviews while he is gone. Councilmember Orttel stated he would be. Councilmember Trude wondered if the people who want to go with the staff recommendation are concerned with the budget implications. Mr. Erar stated that the committee never suggested that the budget for this project was irrelevant. He noted that a well-constructed building would be $14 million. If Council wants to spend only $12 million we will look at the size of the building and the programs. Special City Council Workshop February 25, 2003 - Minutes Page 5 Councilmember Knight stated that at one of the meetings he said that we have to be cognizant of what the residents will have to pay and Mr. Erar said that was a political decision. Mr. Erar stated that if Council wants the same values that were identified in the proposal, then the consequences would be to reduce the size of the building. Councilmember Trude stated that she and Councilmember Knight feel a deep commitment to the pocketbooks of the residents and she feels their integrity has been compromised. Frank Kellogg stated that everyone is concerned about the cost. He questioned whether an increase in cost is due to the YMCA. Vote on Motion: Yes - Trude; No - Orttel, Gamache, Jacobson; Abstain - Knight Mayor Gamache stated that the separate proposals are R1M Construction and Rozeboom Miller and the joint service proposal is Ryan Companies. Councilmember Trude noted that at a special council workshop on November 13, 2002 the minutes indicate that Council should have a presentation from the top two or three fIrms so people know what is going on. Council discussed which proposal would be best, separate services or joint services. It was noted that the joint services proposal provided by Ryan Companies is approximately $150,000 more than the separate construction manager and architect proposals. Councilmember Jacobson stated that even ifhe votes on a company tonight doesn't mean that he will vote on a project. Councilmember Trude noted that as a part of the process references need to be checked and projects done by the firms should be looked at. Mr. Erar noted that references would be checked as part of our due diligence. Councilmember Orttel noted that only five or six of the fIrms came up with any type of cost estimate. Councilmember Jacobson asked the representatives of Ryan and R1M about their estimates. R1M Construction representative stated that a building could be done for $10 million. However, there are very specific standards in the RFP. He stated that the fee is the issue tonight. - - -- -. - .- - Special Council Workshop February 25, 2003 - Minutes Page 6 Ryan Companies representative stated that they could work to any number Council chooses. He asked Council to choose a team they are comfortable with. . Phil Nyvall felt that the process went very well. Everyone had the opportunity to speak their minds. Typically the YMCA would prefer a separate architect and construction management services primarily because of the checks and balances type affect. Mr. Erar noted that he also has the minutes ITom the November 13, 2002 meeting in terms of the process because it's been suggested that the process was not being followed. The minutes indicate under Recommendation #3 that Councilmember Trude stated she would like to see Councilmember Knight remain as the Council' s representative on the task force. She also stated she would sit in on it if they need two members. The motion was to approve items 1-5 of document 5ai with changes to item 3 which was to include a resident and CounciImember Knight in the interview process. He believes that the direction Council set as far as the interview process went was followed to the letter. He reaffumed his position that Councilmember Knight does not have a conflict of interest, MOTION by Trude, seconded by Knight that we interview those three fums tomorrow night or Friday night before Ken Orttel goes out oftown or Saturday if we need to make that decision. Councilmember Knight asked at what point in the process do we get all the costs and details to compare. He felt it would be hard to make a choice before having that information. Councilmember Orttel stated that when the plans and specs are drawn, we would know that information. Mr. Erar felt it's important not to micro-manage these details. It's always been a staff function to insure that once Council identifies a project budget that those components are incorporated in a manner in keeping with the values the Council articulates. Vote on motion: Yes - Trude; No - Jacobson, Knight, Gamache, Orttel. Motion fails. MOTION by Jacobson, seconded by Orttel to go ahead with the separate proposals. Motion carried on a 4-yes (Orttel, Gamache, Trude, Jacobson); I-no (Knight) vote. Council questioned whether the motion meant that we are simply going with separate proposals or if Rozeboom-Miller and RJM Construction are the firms we will use. Councilmember Jacobson stated that his motion was to go with Rozeboom-Miller and RJM Construction. Special Council Workshop February 25, 2003 - Minutes Page 7 Mayor Gamache stated that the next item is to establish a project budget and direct staff to prepare a cash flow analysis and begin preliminary negotiations with the YMCA regarding a Lease Commitment Agreement Councilmember Trude didn't think we are ready to do that yet. MOTION by Trude, seconded by Jacobson to go with a $12 million facility and evaluate other factors that we don't have at this time such as the YMCA report and Saterbak's current status of fundraising goals. RJM Construction representative stated that they will give the city scenarios for $10, $12 and $14 million facilities and it will be the city's decision to pick which one they want. Mr. Erar noted that work committees would be formed and suggested that a representative from the hockey association be on the committee. Councilmember Jacobson asked Mr. Erar to bring back a recommended list of committee members. Motion carried unanimously. Recess at 9:45 pm - Reconvene 9:55 pm. AHYHA UPDATE Mr. Dickinson explained that at the February 18,2003 meeting Council directed the Finance Director to meet with the AHYHA to review their responses to staff's report that was provided to the Council regarding the proposal to remove the ice arena &om the Community Center project. Mr. Dickinson reviewed his staff report noting that AHYHA is seeking a long-term lease; the city is being requested to underwrite and absorb cost of all site improvements; the city is being requested to issue 501 c3 bonds for constructing the ice arena; AHYHA is requesting $200,000 cash for startup operations and $125,000 annually for 8 years thereafter; and AHYHA is requesting that the building be built privately and run privately by an ice arena board of directors. Mr. Dickinson reported that the city's interest rates would probably be lower on a bond issuance than a 50lc3 issuance. AHYHA used non-governmental run facilities as their models rather than governmental run facilities. The issue of fiscal disparities depends on who is the underlying owner of the property. If owned by the city there would most likely be no fiscal disparities contribution necessary. AHYHA is contending that the design/build construction approach they intend to use will yield a 6 to 7 percent cost -. - - - Special Council Workshop February 25, 2003 - Minutes Page 8 savings. AHYHA also states that with only 5% of residents supporting an ice arena, having the arena attached to the community center is not needed. AHYHA needs to commit to ice time and secure ice time for the ensuing season each June. They contend that if a contract were signed in March of this year, an arena would be available by November 1,2003. AHYHA also feels that the Council should look at the equality of the city's expenditures to various athletic programs. Frank Kellogg, AHYHA, asked to hear Council's thought process as it relates to their proposal. Mayor Gamache stated that he believes the Council should move forward on the community center as a whole. Councilmember Jacobson felt that separating the ice arena ITom the community center would be a disservice to the project. Councilmember Orttel agreed. Councilmember Knight noted that he understands the hockey association's problem. The city will be spending $1.25 million on fields in Andover Station North and he believes the hockey association deserves their share. JoAnn Taie, hockey association, didn't feel comfortable that the community center will be a reality. She didn't know what options they have but stated they will continue to explore them. They are the only group pushing to get the community center built when they need it. The soccer people haven't been asking for indoor soccer facilities. Councilmember Knight suggested a fallback plan in the event the community center is not built. JoAnn Taie - stated that the city has been talking about this for two and a half years and they still don't have a place for their kids to skate. Frank Kellogg noted that they have always said they would like to keep the ice arena as part of the community center. Their proposal states that the kids will be skating by November 1, 2003 if a contract is signed by April 1 st. They want a guarantee that October 1, 2004 is a reality if the ice arena is part of the community center. At that time they need to go out and try to secure ice for the next season. Mr. Kellogg asked that Councillook at their proposal and put a time line on it as Council will know by November 1 if the community center is going to be built. He also requested Council to tell the hockey association which parts of their proposal they agree with. Councilmember Jacobson stated that within 90 days we will know what is going on with the state and we'll know what we're going to do. Tony Howard asked for some assurance from the Council that the community center project will be done. Mayor Gamache stated that it's difficult to give them a commitment right now because we don't know what's going to happen at the state. - -. ~- Special Council Workshop February 25, 2003 - Minutes Page 9 Councilmember Trude expressed concern with lease revenue bonds. She felt it would be prudent to have a fallback pIan. JoAnn Taie asked if the community center comes in at $12 million, does Council feel that is what was communicated to the public. Mayor Gamache explained that Council will have to get out and convey the price to the public. Bill Hupp asked if there are costs associated with each of the components of the community center. Mayor Gamache stated that will be part of the negotiations. MOTION by Knight, seconded by Jacobson to adjourn. Motion carried unanimously. Meeting adjourned at 10:55 pm. Respectfully submitted, fL¿ {/ß Vicki Volk City Clerk - -.