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HomeMy WebLinkAboutSP August 27, 2002 CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755·8923. WWW.CLANDOVER.MN.US Special City Council Meeting Cornmunity Center Project Conference Room A Tuesday, August 27,2002 1. Call to Order - 7:00 p.m. 2. Further Review and Discussion/Community Center Project 3. Other Business 4. Adjournment , - ---- ------ -- ~ CL<l/ Wl.-dt..Ln O¡-n -cd.. CITY of ANDOVER SPECIAL ANDOVER CITY COUNCIL MEETING - AUGUST 17, 1001 MINUTES A Special City Council Meeting of the Andover City Council was called to order by Mayor Mike Gamache, August 27,2002, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Don Jacobson, Mike Knight, Ken Orttel, Julie Trude Councilmember absent: None Also present: City Finance Director, Jim Dickinson City Administrator, John Erar Others AGENDA APPROVAL There were no changes. Motion by Jacobson, Seconded by Knight, to approve the Agenda as amended above. Motion carried unanimously. REVIEW PROJECT SCHEDULES AND ACTIVITIES Mr. Erar stated the City Council has requested information regarding anticipated project completion timelines for the proposed Community Center under three different scenarios. Project Schedules have been prepared for Council review. Time estimates are based on a typical 5-day work week, with the exception of construction activity, which is based on a six day work week for on-site contractors. Mr. Erar stated there were three scenarios for the Community Center Project. The first is Council Authorized Project in September 2002, the second scenario is Special Voter Referendum in November 2002 and the third scenario is Special Voter Referendum in March 2003. He discussed the three scenarios with the Council and showed the project schedule. Councilmember Trude asked what the difference was between an owner's representative and a construction manager. Mr. Erar stated an owner's representative does not have as much control or authority. He stated with this type of project an owner's representative would be a better value. He stated it is more cost effective to have a general contractor with an owner representative. ...-.. .~. I - Special Andover City Council Meeting Minutes - August 27, 2002 Page 2 Mr. Erar stated the schedule would be timed to coincide with all the Council meetings as long as there would not be any problems. Councilmember Orttel asked if they needed an architect when the building is prefab. Mr. Erar stated design is still involved so they would still need an architect for this. He stated they have put together ideas of what they wanted in the Community Center but the architect is the one that actually designs it. Mayor Gamache asked if they would be getting infonnation from the architects along the way and when they have the neighborhood meetings. Mr. Erar stated the Council would probably have two Council workshops during this time and will also be updated on the progress of the proj ect. Mr. Erar stated the best time to bid out this project is usually the early part of the year but if everything ran smoothly, they could possibly bid in late fall if the construction plan could be completed in the fall of2003. He stated he did not think they would get the best bids in the late fall. They would be better off bidding it in the early spring. Councilmember Trude thought that time was money and the longer they wait, the more it would cost. Mr. Erar stated that the three building experts who were consulted felt that using a project schedule was a very aggressive timeframe. Mr. Gary Shibrowski asked if someone is not going to give a good bid in the fall, why would they give a good bid in the spring. Mr. Erar stated if these things could be done quicker, they could bid them out in the fall. Mr. Frank Kellogg stated the economy would playa factor. Mr. Jeff Hansel stated if the economy remained the way it is, it would not matter when they bid out a project. Mr. Erar stated that typically the best time to bid is in the beginning part of the year because contractors are looking for work instead of being too busy to take the time to give a good bid. Mr. Erar stated the construction schedule is built upon a Monday through Saturday timeline. Councilmember Jacobson asked why they do this. Mr. Erar stated this is based on deadlines and some construction companies will have their men at the site five days a week and some will have them there six days a week depending on the deadline. Mr. Kellogg asked what occurs with the CS person after the facility is done and is it approved. Mr. Erar stated that it is in the budget and the CS person would actually manage the facility after it opens. Mayor Gamache stated with the March referendum there would be little time to get the design done for bidding in the fall. Mr. Kellogg stated the average home at $150,000 would be hit about $300.00. He asked ifit would it be wise to have a special referendum. He stated personally he would wait until the next election. Mr. Erar reviewed the Architect and Construction Manager with the Council. He stated he recommended not hiring anyone until the Council decides if they want to do the project and to identify the funding first. -, -0._- Special Andover City Council Meeting Minutes - August 27, 2002 Page 3 Mayor Gamache asked if anyone had any ideas on how the process could be shortened. He stated the project budget is indicated to be light. Councilmember Knight stated that they have had three public meetings where infonnation was given regarding the cost of the project. If the project ends up costing more, there would be a credibility problem with the Council and the residents. Mr. Kellogg asked what has transpired from February 2002 to today that would suggest the numbers are wrong. Mr. Erar stated the task force amounts have always been viewed as preliminary numbe-s and some costs have been indicated as being light. The $9.9 million is thought to be light. Mr. Kellogg stated the numbers included much of what has been discussed. He stated the intent was to bring a great user value. He is troubled to hear after two years of discussion that this issue was never brought up to the task force. Mr. Erar stated he believed from the beginning, the amounts were tight and discussed that they were tight. The entire process to the task force has included preliminary costs. Gary Shibrowski stated he thought they had come forward with a recommendation in the report and he did not think they could afford a higher priced project. Mr. Erar stated he was suggesting the Council validate the numbers. He was not suggesting they cut out anything or raise the budget for the project. Mr. Erar stated from the beginning they looked at an amount that they wanted to stay under and they set up the project based on this. Councilmember Jacobson stated if the cost of the structure were twelve million when finished and Saterbach found three million in donations, there was a variability and this would bring the amount down to nine million. Councilmember Orttel stated the three million in donations was supposed to bring the amount down to six million. Councilmember Jacobson stated the public has been told all along that nine million would be needed to make the project happen and this would be public money. Councilmember Knight asked Mr. Hansel how many projects Greystone has constructed. Mr. Hansel stated they constructed three centers. Councilmember Orttel asked who would do the validation. Mr. Erar stated he thought they would use two architectural finns to bring them some numbers. Councilmember Jacobson asked if the $9.9 million include the expanding of the parking lot, sewer expansion and other items. Mr. Dickinson stated this was included in the budget. Mr. Kellogg presented a proposal for Greystone to perfonn a preliminary design scope of work. Mr. Hansel presented the Council with a proposal for the Community Center. Mr. Kellogg asked what the cost and timeline was to build the Blaine Center. Mr. Hansel stated it was a five month project with packages bid early and the cost was $3.5 million. Councilmember Trude asked if Greystone has a dedicated architect that always works with them. Mr. Hansel stated this is true. Councilmember Jacobson asked how the proposal fit into the State time lines that the City has to operate under. Mr. Hansel stated the proposal is a typical timetable and meets all the State criteria as far as the construction documents. . .~- Special Andover City Council Meeting Minutes -August 27,2002 Page 4 Mr. Erar asked how they could design this and bid on this. Mr. Hansel stated they are acting as the Construction Manager. Councilmember Trude asked if they would still hire contractors on a bid process. Mr. Hansel stated this is true. Mr. Erar stated that if you have the same company design and build this, there is not a check and balance system. If one firm does it all there could be some conflict and this does not make him comfortable. Councilmember Trude asked how Mr. Hansel would describe checks and balances. Mr. Hansel stated the CSM would come in at the design stage and check over the work. Gary Shibrowski stated the engineers have to have licenses and by signing off they are certifÿing their work was done correctly. Councilmember Orttel asked Mr. Erar if the architect has a checklist. Mr. Erar stated there is an owner representative that overlooks the project and makes sure it is in balance. Councilmember Or¡tel stated they decided they would not start construction until they were underway on the Capital Campaign. Mr. Erar stated they would still continue with the architectural design while involved with the Capital Campaign. Councilmember Orttel stated his main concern is the structural integrity of the building. Mr. Kellogg stated the idea ofthis discussion was to validate what the task force has done in the last year. Mr. Erar discussed the other aspects of the schedules and activities with the Council. Councilmember Ortte1 asked if the Stakeholder Design Team would be the same as the Management Board. Mr. Erar stated this would be different than the Community Center Advisory Board (CCAB). He stated the Board is advisory because the ultimate authority is the Council. Councilmember Jacobson stated they need to first validate the cost and then see if they are going to set up a referendum and then set about starting the charitable organization. Mayor Gamache stated they needed someone to run the facility. Mr. Erar stated they needed to hire a person at least six months before the facility opened and this person would run the entire park system in the City. REVIEW REVISED PROJECT PRO FORMAS Mr. Dickinson stated the YMCA's involvement in the facility is included in the proformas. He discussed the YMCA's involvement in the facility with the Council. He reviewed with the Council the revised project pro formas. Councilmember Trude asked what the role of the YMCA is. Mr. Dickinson stated they would be managing what the YMCA usually manages, which is families and children. CouncilmemberTrude stated residents are concerned with the YMCA fee possibly involved with the facility. - - --- ~ -- - Special Andover City Council Meeting Minutes - August 27, 2002 Page 5 Councilmember Knight stated he had two concerns. One was the weeknight use of the aquatic facility and whether there is a provision for non-members. Mr. Dickinson stated there would be that option. Mr. Erar stated the YMCA is the best case scenario and if that portion is not included, then the facility would lose money from the start. Mr. Hedin stated some of the aquatic associations would like to schedule time and it does not show up in the report. Mr. Dickinson stated that this would need to go through the YMCA. Mr. Erar suggested the Council reimburse YMCA half of the cost for the market study as long as they continue to move forward with the City as a partner and the City would get a copy of the market study. Mr. Tony Howard asked what residents would need to pay in order to use the facility. Mr. Dickinson stated that non-resident members would be charged $82.50 a month per family and $42.00per month for individuals. Residents would be charged $61.00 a month per family and $41.00 a month per individual. Councilmember Orttel asked why the rent is static for twenty years. Mr. Dickinson stated that he is trying to get the YMCA to bring additional money up front to the facility. Councilmember Orttel asked what basis of inflation was used. Mr. Dickinson stated inflation was looked at on a constant basis of five percent per year. Councilmember Jacobson asked what the all building pass would allow a resident to do. Mr. Dickinson stated that it would allow a resident to use everything in the facility unless it is leased out to some other organization such as a school activity. Mr. Erar stated the YMCA has run these programs in other Cities and have been very successful. Councilmember Trude stated they need to understand what they are getting into as a Council because they need to sell this to the residents. The Council further discussed the options regarding the YMCA and the costs associated with them. DISCUSS PROJECT FUNDING METHODOLOGIES Mr. Erar discussed with the Council project funding methodologies. PROPOSED CCAB STRUCTURE AND OPERATING PLAN Mr. Erar stated the Council has discussed the need for an operating structure and business plan that supports the self-sufficient nature ofthe Community Center. Developing a business plan associated with the oversight, management and operations of the Community Center has been discussed by Council relative to ensuring the facility is operated in a business-like manner to reduce the need for , -~- Special Andover City Council Meeting Minutes - August 27. 2002 Page 6 public subsidy. The Council may wish to consider the creation of a Community Center Advisory Board (CCAB) that would be appointed by and accountable to the City Council. Mr. Erar discussed the proposed Operating Structure! Business Plan with the Council. STATUS OF YMCA PARTICIPATION Mr. Dickinson discussed with the Council the status of YMCA participation in the Community Center. PROJECT BUDGET The project budget was discussed with the Council. OTHER BUSINESS Mr. Dave Assmus stated all of the questions brought up at this meeting are normal for this type of project and more questions will continue to come up. Once there are answers, they can begin to consistently give out information to the public. Councilmember Knight asked to what degree can they push ahead even though Mr. Assmus' work is not done. He asked if they should go ahead with the project with a ballpark figure. Mr. Assmus stated they carmot do anything with the campaign until the City Council would decide to go ahead with the project. He stated the steps outlined is an excellent progression that needs to be followed. People will want to see a schematic on this. Mayor Gamache suggested they ask the YMCA's opinion of what facility use would be and the use of it to the swim teams. Motion by Knight, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting adjourned at 10:35 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary ~ . --~_._.....- - Special Andover City Council Meeting Minutes - August 27. 2002 Page 7 REGULAR ANDOVER CITY COUNCIL MEETING MINUTES - AUGUST 17,1001 TABLE OF CONTENTS AGENDA APPROV AL............................................................................................................. 1 REVIEW PROJECT SCHEDULES AND ACTIVITIES ......................................................... 1 REVIEW REVISED PROJECT PERFORMAS .......................................................................4 DISCUSS PROJECT FUNDING METHODOLOGIES ...........................................................5 PROPOSED CCAB STRUCTURE AND OPERATING PLAN ..............................................5 STATUS OF YMCA P ARTICIP ATION .................................................................................. 6 PROJECT BUDGET ................................................................................................................. 6 OTHER BUSINESS ......,........................................................................................................... 6 ADJOURNMENT...................................................................................................................... 6 . -----