HomeMy WebLinkAboutWK November 13, 2002
CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N.W, . ANDOVER. MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW.cJ.ANDOVERMN,US
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Special City Council Workshop
Miscellaneous City Issues
Wednesday, November 13,2002 -7:00 pm
Conference Room A
1. Call to Order
2. Adopt Agenda
3. Public Works Site Acquisition - Presentation
4. Agricultural Preserve - Information
5. Proposed Community Center Project
a. Construction Methodology
i. Staff Research
; ) ii. Project Approach
'J Hi. Request for Proposal
b. Establish Preliminary Project Budget
c. Resolution on YMCA Partnership Principles and Values
d. Capital Campaign Considerationsrrime Line
6. Council Policies - Consider ParklTrail Policies
7. Consider North Metro Mayors Association Membership
8. 2003 Budget - Discussion
9. Other Business
10.Adjournment
/
3
CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW.CLANDOVER.MN,US
TO: Mayor and Council members
CC: John Erar, City Administrator ~
Will Neumeister, Community Development DirectorWcl--
FROM: Jon Sevald, Planning - Administration Intern~
SUBJECT: Public Works Expansion (Council Goal #3)
DATE: November 13,2002
Project Scope
The expansion of the Public Works facilities should take into consideration the expansion needs of
the entire City Hall complex, including the proposed community center and the possible relocation
of the sheriffs office. When designing the facility's site plan, it should be considered that
Andover may have a "built-out" population of 50,000 or greater. The site plan should be designed
in a way to accommodate the future growth of the Public Works facilities while potentially serving
some of the present needs of Parks and Recreation (i.e. temporary soccer/football fields).
\ Land Identification
/ Approximately 15 acres adjacent to the Public Works complex have been identified as the ideal
location for facility expansion, allowing to maintain the department's central location. The
estimated market values are listed below:
CITY OF ANDOVER
Public Works Future Expansion
Current TaxYr TaxYr
Est. Market Est. Market Taxable
PIN Address Owner Acres Value Value Value
22 32 24 42 0003 1813 Crosstown Blvd torN City of Andover 2,28 87,500 52,000 43,900
22 32 24 42 0004 1831 Crosstown Blvd ~ Louden, Steven 1,11 131,400 92,400 92,400
223224420011 1853 Crosstown Blvd t-IN Click, Michael 1.15 153,100 113,600 113,600
22 32 24 42 0008 1901 Crosstown Blvd t#i Ostrowski, Frederick 2,56 140,100 93,900 93,900
22 32 24 42 0006 1929 Crosstown Blvd NW Barett, Lorren & Sheila 1,00 141,000 104,500 104,500
22 32 24 42 0007 1949 Crosstown Blvd NW Thorson, Steven & Deanna 1,99 167,000 124,300 124,300
22 32 24 42 0002 15211 Nightingale 5t NW Sryzuk, Kennth & Mary 29,00 1,115,200 254,500 254,500
22 32 24 42 0001 15211 Nightingale 5t Nf'I Slyzuk, Kennth & Mary 0,78 $ 202 200 $ 158,300 $ 158,300
/
39,87 $ 2,137,500 $ 993,500 $985,400
Public Works Expansion (Council Goal #3)
Page 2
"- The city is negotiating the purchase of the 15 acres from Ken Slyzuk and 1.11 acres from
I Steven Louden (property adjacent to the water treatment plant). Currently, the city is
waiting to hear back from the appraiser on the Slyzuk property and is trying to contact
Mr. Louden regarding the hiring of an appraiser.
Needs Assessment
Land Acquisition Uses
Street Department
. Salt Storage Bldg. (12,000 sq. ft.)
. Street sweeping and storm sewer sand reclaim area
. Class 5 gravel storage area
. Paved seal coat rock area
. Vehicle wash down area
Parks Department
. Black dirt storage
. Washed sand storage
. Ag-Lime storage
. Landscape/Nursery area
. Shelter for equipment implements (100x12xI2)
I . Playground equipment storage
Utility Department
. Contaminated sand dumping facility
. Pipe and casting storage
. Storm sewer rip rap storage area
. Under ground utility/safety training area
Recycling
. Need to move from present location and increase the size
Possible Site Plans
Three campus plans have been created identifying facility locations and transportation
access, see attached aerial photos. They only differ in how the main public works
building is to be designed. Each drawing shows a slightly different layout of the
building, but contains the same amount of space.
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o Scenario One (1,020 Acres)
D Scenario Two (1,293 Acres)
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,---, May 1 2005 ' ,
L-J ' Andover Planmng
D December 8,2007 10,16,02
D None Filed
Source: Anoka County Tax System
.5(J..(i)
CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD NW, . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WW\VCLANDOVERMN,US
TO: Mayor and Councilmembers
FROM: John F. Erar, City Administrator
SUBJECT: Research on Public Facility Construction Methodologies
DATE: November 13,2002
INTRODUCTION
At the special Council workshop held on Wednesday, October 9, 2002, Council Member Knight
identified several public entities of which Council directed staff to research concerning the type of
construction methodology used on their respective public projects. Facilities identified for further
research included the City of Hopkins Center for the Arts; Westonka Ice Arena; Edina
Library/Senior Center; and the Eagan YMCA. In addition, staff has included information from
Anoka County, Anoka-Hennepin School District, the Association of Metropolitan Municipalities
and the City Attorney's Office.
DISCUSSION
The following information was received as result of this additional research.
Mound-Westonka School District - Staff spoke with Mr. Bob Kuehl, Activities Director for the
Mound-Westonka School District and President of the Westonka Sports Association, a private
group of individuals organized as a SOlc3. Mr. Kuehl indicated that neither the City nor the School
District is involved in the construction of this facility nor are there any public monies being used in
connection with this facility, The Westonka Sports Association is privately spearheading the
construction of this facility through private donations and fundraising. The Association is leasing
land from the School District, but the School District has no other type of involvement,
Construction on the facility has not yet started as they are waiting to raise adequate funds first, and
will be looking at a private loan to finance the facility, Mr. Kuehl was unsure of the construction
approach at this point in time.
Eagan YMCA _ The Eagan YMCA is not affiliated with City government and thus is not subject to
the same statutory restrictions on design-build. No public monies were used to build this facility. For
purposes of providing Council with some additional background, staff did speak with their director,
Mr, Tim Staley of the YMCA Eagan facility, Mr. Staley conveyed the following information
regarding their facility. First, the facility was built as a shell first, then was progressively completed as
money became available creating significant cash flow issues over the first three years, Again, the
YMCA is a non-profit and is not subject to state statutes on design build. Mr, Staley indicated he
Construction Management Approach - Research
~ovember13,ZOOZ
Page Z of 4
\ would "never build" this facility the same way again, given the many problems and cash flow issues
that emerged. Mr. Staley did indicate he liked design-build but that his experience with design-build
was on the procurement of materials only. For example, lighting, flooring etc. were shopped around
with vendors and contractors until the price and quality of materials needed met their budget and
YMCA quality needs. Based on staffs conversations with Mr, Staley, it does not appear that this
facility was constructed using a design-build approach.
City of Hopkins Center for the Arts - Staff spoke with Mr, Steve Mielke, Hopkins City Manager
who confirmed that their facility was not constructed under a design-build approach, as in Mr.
Mielke's opinion the design-build approach is prohibited under state statute. Mr, Mielke also
indicated that they used an independent architect who was hired by the City, and that the facility was
constructed using a construction manager approach. Separate bid packages were prepared and
awarded under a competitive bid process. Mr. Mielke indicated that their architect fully designed the
building first, project estimates were then prepared based on the final design. With final design in
hand, OPUS provided them with a guaranteed at-risk cost based on final design quality parameters.
Bid packages were then prepared by OPUS for all related trade disciplines and they were
competitively bid. In addition, Mr, tvtielke indicated that while OPUS was allowed to bid on the
trade packages, they were not allowed to inspect the work they performed. The independent
architect selected by the City was responsible for inspection of any work that OPUS performed
outside their CM related responsibilities.
Edina Library fSenior Center - Staff spoke with Mr. Gordon Hughes, Edina City Manager who
confirmed that the Edina facility was not constructed as a design-build project, Mr, Hughes
indicated that OPUS was both the architect/CM on this particular project, but that the city library
facility was part of a much larger mixed-use private development. In any case, OPUS was required
to publicly bid all contract work on a competitive basis, and that while they did bid on the work,
they were successful on only 3 of the Z5 packages put out to bid. Mr. Hughes also indicated that as a
rule he would not typically allow a CM to also serve as an architect on a stand-alone government
facility, and that their City does not allow the CM to be the prime contractor on bid packages the
CM prepares for public bid.
Mr. Hughes indicated that the Edina facility was a special case given the much larger context of the
mixed-use private development project and that currently Adolphson-Peterson is serving as a CM
on their City Hall project and is not allowed to bid on the work as a prime contractor. They also
have an independent architect on their City Hall project. Similarly, Mr. Hughes indicated that in his
opinion the City does benefit from the natural tension between an architectural firm and CM who
are independently hired,
Finally, Mr. Hughes indicated that while the "guaranteed at-risk" CM approach to project cost is
comforting, it does not allow the City flexibility in making changes to building design once it is
given. For example, a price guarantee provided by OPUS at the preliminary design stage makes a
number of assumptions that if changed are not covered under the guaranteed at-risk price. Given
the number of stakeholders that would be involved in the Andover Community Center design, it
would essentially lock the City into a design that may have to be substantially changed during the
design process.
Construction Management Approach - Research
November 13, 2002
Page 3 of 4
Anoka County - Staff also spoke with Mr. Bob Swanson, Construction Manager for Anoka County
who confirmed that the County has not used the design-build process for any County facilities,
including libraries, in light of statutory prohibitions. Mr. Swanson has worked for Anoka County for
7 years, and prior to his current position worked for the University of Minnesota for 18 years. Mr.
Swanson indicated that to his knowledge the University of MN has never used the design-build
process for any University building projects. Mr, Swanson even went so far as to question the real
benefit of even using a construction manager approach and indicated that Anoka County will be
using the more traditional general contractor approach as he felt it was more efficient and effective
to deal with one prime contractor as opposed to multiple contractors in terms of direct
accountability. He also indicated that the County would be acting as its own construction manager
on all future building projects,
Mr. Swanson also indicated that the County's construction management process would not allow the
construction manager to also bid on packages they have prepared given potential conflicts-of-
interest and concerns over checks and balances relative to inspection. Mr. Swanson confirmed that
Anoka County has never built a public facility using a design-build approach and that all work is
publicly and competitively bid. Finally, Mr. Swanson indicated that the County prefers to hire
architects that are independendy selected from the construction manager,
Anoka-Hennepin School District - Staff also spoke with Tom Durand from the Anoka-Hennepin
School District. Mr, Durand indicated substantially the same thing relative to the prohibitions on
design-build in constructing school facilities. Mr. Durand was contacted several weeks ago and his
comments and insights were incorporated into a separate staff report attached to this report. Mr.
Durand also confirmed that the School District has never built a school facility using a design-build
approach given statutory restrictions and that he also would have preferred using a design-bid-build
approach (general contractor) over the construction manager approach on the Andover High
School.
League of MN Cities/ AMM - Staff also contacted Mr. Gene Raneiri, the Executive Director for
the AMM. Mr. Raneiri's comments are similar to other's listed in this report regarding the
prohibition of the design-build process. His view is that cities cannot utilize the design-build
approach given statutory restrictions and that some cities to his knowledge have been sued for
attempting to use this process. He also expressed concerns with a Construction Manager approach
that allows the CM to design, prepare plans/specifications, bid, build and inspect a project.
City Attorney Bill Hawkins - A copy of his written legal opinion is attached, Mr. Hawkins
expressed the view that design-build wherein one firm is responsible for all facets of project
completion is not authorized under state law and that cities must competitively bid projects out, Mr.
Hawkins also indicates that he feels that the City should not, as a matter of business practice, allow
the construction manager to both prepare plans and specification, and then bid on the packages they
have prepared, then rely upon the same firm to inspect the completed work 1-Ir, Hawkins will be in
attendance at the November 13, 2002 Council workshop.
ACTION REQUESTED
In light of the information received, the following recommendations are presented for Council
consideration:
Construction Management Approach - Research
November 13,2002
Page 4 of 4
1. Direct staff to prepare separate Requests for Proposals for a project architect and construction
manager; but that the process would allow one firm or two firms, as a team, the opportunity to
submit proposals for dual services on the project for both construction management and design
services. The City would have a separate contractual agreement for each service provided, If
directed to prepare the RFPs, staff could have these two documents in final draft form for the
November 19, 2002 Council meeting,
2. Consider whether to include provisions into the RFP that would allow architectural firms to
submit project proposals based on a $10,000,000, $12,000,000 and $14,000,000 project budget,
inclusive of professional service fees. This approach would be rather unique as most project
budgets are established first, before going forward with a request for proposals.
3, Confirm that the responsibility for interviewing, selecting and recommending a qualified
consulting firm(s) to the City Council remain with City staff as is the case with all other City
projects, and that the interview team include a YMCA staff representative. A "shortlist" of five
qualified firms would be selected by staff for interview that would include Greystone
Construction and OPUS,
4. Confirm that the Construction Manager selected for the project be prohibited from bidding on
the project as the "prime contractor" and that any sub-contracting work performed by the
Construction Manager be independently inspected by a neutral third party at the expense of the
selected firm. Any subcontracting work bid on by the Construction Manager would be
competitively awarded on the basis of the lowest qualifying bid,
5. Confirm that if a firm offers to provide a guaranteed at-risk proposal on the project that any
guarantees be based on final design parameters ,vith respect to preferred materials, final design
, layout and building composition to include architectural features,
/
Respectfully submitted,
John F. Erar
City Administrator
5 a (ii)
, CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755.8923 . WWW.CLANDOVER.MN.US
TO: Mavor and Councilmembers
,
FROM: John Erar, City Administrator
SUBJECT: Project Management Approach - Comparative Analysis
DATE: September 23, 2002
INTRODUCTION
Attached, please find information received from Tom Durand, Director of Administrative Services
for the Anoka-Hennepin School District on the two construction management approaches currently
allowed under state law for public facility construction. The information is directly related to
traditional Design-Bid-Build vs, Construction Management (CM) , I believe this information should
be helpful to Council and others in understanding the key differences between general contracting
and construction management approaches.
/ DISCUSSION
The School District utilized a construction management approach in the building of the new
Andover High School, as did the City of Coon Rapids in the construction of their new City
Hall/Police Station/Civic Center facility in 1996. Council should be aware that the attached
literature is from companies that advocate the construction management approach over the
traditional general contracting approach, I would agree with Tom Durand that the attached
information offers a succinct description of the two building delivery approaches currently in use.
Based on personal professional experiences and in discussions with Tom Durand and City Engineer
Scott Erickson, the following key points should be emphasized:
. Public bidding is required in both approaches whether through a total project bid by a
general contractor or through individual bid packages prepared and administered by the CM,
"Low" bids in either process are generally required to be accepted by the City unless there is
a legally bona fide reason for rejection, Public bidding is controlled by state statute and the
City is required to observe statutory requirements on public bidding,
. A CM approach is an added-value service above the traditional role of a general contractor.
Consequently, the cost for this added value service is not free and is charged as patt of a
percentage of total construction costs through a professional consulting contract service,
. A CM will charge for their services in both preparing/ administering individual bid packages
and serving in the role of the general contractor on the site. Typically, fees for a CM to serve
as a general contractor on the site are similar to what a general contractor will charge as part
of their bid in coordinating on-site subcontractors and monitoring project completion, Both , '\
approaches are profit driven in terms of the services provided, \
. Under the CM approach, working directly with as many as 20 to 30 individual
subcontractors on a project can be more challenging, time consuming and complex as the
City, through the eM serves to select individual subcontractors. Issues such as union vs non-
union contractors or sub-contractors who have never worked together on a major project
can result in time delays and miscommunication. Tom Durand indicated that their
experiences with a CM approach relative to subcontractors were generally more challenging
and complex than a General Contractor approach,
. A General Contractor typically selects subcontractors based on the previous work
experience of the subcontractor and usually avoids subcontractors that are low quality or
problematic. A CM approach requires the City to select sub-contractors based on the lowest
qualified bid, unless there is a legally bona-fide reason for rejection, making it more difficult
to avoid troublesome subcontractors in the process,
. Under a CM approach, decisions typically made by the General Contractor on selecting sub-
contractors are shifted to staff adding additional time and paperwork atttibuted to the public
bidding process.
. With respect to building warranty issues, it can be more challenging for the City to go after
individual subcontractors as opposed to working with a single general contractor who is
responsible for the entire facility warranty and all related building sys~ems,
The highlights above should not be interpreted to suggest that a CM approach is problematic or that
my office is opposed to a Construction Manager, but is provided to offer Council a balanced r
perspective on the pros and cons associated with the two approaches, The attached literature \
provides a very positive view of the CM approach as it relates to project management.
ACTION REQUIRED
For Council discussion and review. Staff is willing to offer a recommendation on the preferred
construction management approach if requested,
\
Page 1 of 1
John Erar
From: John Erar
, Sent: Wednesday, September 25,20023:18 PM
, I To: City Council
Cc: James Dickinson; Scott Erickson; Pat Janssen
Subject: FW: Construction managmentldesign build agreements
Mayor and Council:
Given some of the comments and questions which continue to be raised regarding the construction management
approach, I have asked Bill Hawkins to clarify the limitations that exist under state law. For your convenience, I
have also included the LMC's research document on Competitive Bidding Requirements, Please note pages 8,
11, 18, 33 & 34 and 41 for specific citations on issues currently under consideration by the Council.
Please review the following and forward any questions you may have to Bill Hawkins or me, Thank you,
John Erar
City Administrator
City of Andover, MN 55304
763.767.5100
-----Original Message-----
From: HawkLawl@aol.com [mailto:HawkLawl@aol.com]
Sent: Wednesday, September 25, 2002 2:06 PM
To: JErar@ci.andover.mn.us
Subject: Construction managmentfdesign build agreements
John,
/ At your request we have reviewed the legal issues surrounding the use of construction management and design
build agreements for public facilities,
We do not feel the use of these agreements presents any legal problems as long as the competitive bidding
requirements of Minnesota law are followed.
The hiring of the construction manager or design build contractor would not require the use of competitive bidding
since these companies would be providing professional services to the city and therefore public bidding is not
required, The city's current practice of seeking requests for proposals from several firms would be acceptable,
However, the construction of a public facility would require compliance with the public bidding law,
The question that you have raised is whether the construction manager or design company could legally bid on
the project since they would have prepared the plans and specifications and would supervise and inspect the
construction of the facility.
Minnesota law requires when bids are required for a project, the solicitation of such must be in a fair and open
manner. While we can find no Minnesota legal decisions which have dealt directly with this question and would
prohibit this practice, we feel that since the manager had direct involvement in preparation of the specifications a
potential for a claim of unfair advantage exists from competitive bidders, This is particularly true where the bids
are for a unique and complex project This argument could be rebutted by the city, however, it seems legally
prudent to not place ourselves in this position so as to avoid possibility of potential litigation which may delay the
project Furthermore the city should carefully consider the potential for a conflict of interest where one firm
designs, builds and inspects a public project
If you have further questions, please contact me,
Bill
/
10/1 0/2002
Memorandum
TO: Anoka-Hennepin School Board and Superintendent Giroux
FROM: Tom Durand ~
Director of Administrative Services
DATE: December 8, 1999
RE: Construction Delivery Options and Implications
As you requested, the following is a comparison of the two main building delivery processes available
to us. We are considering the general contractor (single prime) approach and the construction
manager approach. You may be aware of other approaches such as design build and construction
manager at risk; however, these two approaches are not available to school districts under current
law.
As you recall, the general contractor approach is where the architect designs the facility and we bid
, out that design to a single entity (low-bidder) who then gives us a fixed price and coordinates the
work of the sub-contractors. In the construction manager approach the construction manager is hired
prior to the design and has input into the design. The construction manager then works with the
district to bid out the various prime contractor work (low-bid). The construction manager then works
with the contractors to schedule their work and assure the quality of the work.
The general contractor would, of course, include overhead, profit and general conditions in their bid
price and the construction manager would charge a fee for overseeing the project. These costs vary
from firm to firm, but it is likely that the construction manager costs could be somewhat lower.
There are obviously advantages and disadvantages in each approach and, ultimately, the quality of
the firm providing the service has a large impaCt on the cost and quality of the final product.
Assuming that the process works as desired, the construction manager should be in a position to
identify potential problems in the design prior to bidding, which minimizes the potential for change
orders. Further, because the various prime contractors would be bidding their work directly to the
District, there are some sales tax savings on certain materials. As you recall, this approach requires
the District to process multiple bidders for the various building components.
Besides the following comparison, I have attached a document done by a construction management
firm which I think pretty succinctly describes the current thinking on these two building delivery
approaches.
Traditional Design-Bid-Build using a General Contractor
. Owner contracts with multiple architects and/or engineers following a qualification-based
selection process.
. Owner contracts with specialized consultants who have specific expertise in areas such as
technology, geotechnical and environmental.
Memorandum
Anoka-Hennepin School Board and Superintendent Giroux , ,
December 8, 1999 /
Construction Delivery Options and Implications
. Owner contracts with a single general construction (GC) firm. Bids are received following a
competitive bid process and awarded to the lowest, qualified bidder.
. Owner assumes management role of entire program and becomes referee over inevitable
disputes between designers and constructors.
. GC has no involvement in the design process, therefore their expertise in cost and
constructibility does not benefit the Owner.
. GC does not represent, or act on behalf of, the Owner.
. Architects provide construction administration role with no real management responsibility for
construction.
. Sequential process (design-bid-build) may take longer.
. Bid price from the GC may not be the final price - change orders can add on to the cost of the
final product.
. Adversarial relationships can develop between Owner, architect(s) and general contractor(s).
Construction Management - Agency
. Owner contracts with multiple architects and/or engineers following a qualification-based selection
process.
. Owner contracts with specialized consultants who have specific expertise in areas such as
technology, geotechnical and environmental. " / \
I
. Owner contracts with construction manager (CM) following a qualification-based selection
process. The CM works with the architect, engineers, etc. , assists with the bidding of work to
multiple contractors and oversees the project schedule and contractors work.
. Owner directly contracts with multiple prime contractors (mechanical, electrical, general trades,
masonry, etc.). Bids are received following a competitive bid process and awarded to the lowest,
qualified bidder for each trade category.
. CM potentially brings construction expertise to the design process in the following areas:
- cost estimating
- value engineering
- scheduling and phasing for total program vs. individual projects
- constructibility review
- procurement of long-lead time items
. CM represents the Owner during construction phases:
- coordinates and manages the work of each prime contractor
- manages program schedule
- monitors claims and change orders from prime contractors
- full-time, on-site management as Owner's representative
- manages some of general conditions costs
. Owner assumes management role of entire program as in traditional design-bid-build approach,
but role is reduced somewhat due to assistance from CM.
. Fast-track construction process can be implemented to shorten individual project duration.
. Owner is referee over inevitable disputes between designers and constructors.
," )
If you have questions please contact me at 506-1175.
Enclosure
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I i CONSTRUCTION MANAGEMENT DEFINED _
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CONTAcr PERsoN
SHERYL B. MAlBACH
BARTON MALOW COMPA1\,'Y ')27777 FRANlalN ROAD .
SUITE 800
SounmD, MI 48034
(313)351-4500
Barton
Malow
In orderto tightly control the construction process i construction program is management. The
andgetthemostfortheirmoney,schooldistricts i program must be actively managed and
across the country are choosing construction i controlled in order to avoid the pitfalls of projects
management (CM) as their building method in ! which are over budget and off schedule.
order to tightly control the process. Educational i
facilities construction is complex and requires i ConstructionManagementisabuildingdelivery
full-time management by school construction I method in which the owner, architect and CM ,
experts. You cannot afford to train a novice on work together as a team, from the beginning of
your important project, which is under scrutiny design through completion of construction. By
by the public and press. serving as an agent of the owner, the CM is able
I to give the owner greater control over the project
Becauseallpublicprojectshaveestablishedbudget , to ensure successful completion.
limits and schedules which must be adhered to,
control of the building program is a high priority. I
This becomes even more Critical during school
renovation work. The key to a successful I
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I be safe and functional, as well as provide food I phase to avoid cost overruns. The CM makes
service, auditorium, administrative and : recommendationswhichoftenleadstocostand/
,
f recreational space. A construction manager can : ?r time savi~gs. The C~ also provid~s insi~t
J help provide expertise in these different areas ; mtoalternativetechno!o~esand matenalswhich
d . t th chitects d . d . i can be, used to maXInuze cost and schedule
an aSSlS ear urmg eSlgn. I dh
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! construction - as a team. i out all of the trade construction work. It is a
I ! conflict of interest to manage the construction
" I tis easier and less expensive to change things on I process and self perform subcontracting work.
t paper during the design process, than in the I
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( construction experience during thedesign phase, I Manager performs. Th~ s~rvices ~ be tailored
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f , problems in design while they are still on paper, I
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I . MASTER PROGRAM ScHEDULING . CONSTRUCTION COORDINATION
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I . DESIGN COORDINATION AND REVIEW . COST CONTROL/PROjEcr ACCOUNTING
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I . V AWE ENGlNEERING . CONTRAcr DocuMINrATION
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\ . EsTIMATING . SUBCONTRACTOR FIELD MANAGEMENT
,1 . BUDGET DEvELOPMENT AND ANALYSIS . QUAUTY CONTROL
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iJ . CASH FLOW ANALYSIS . PERFORMANCE DOCUMENTATION
. LIFE-CYQ.E COSTING . EQUIPMINr &FURNISHlNGS PROCUREMENT
:~ . LONG-LEAD PROCUREMENT . OPERATIONS / MAlNrENANCE MANuALS
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:~ . QUAUTY CONTROL PROCEDURES . FACIUTY START-UP
~ . SAlUY PLAN . WARRANTY COORDINATION
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construction manager's expertise, theownercan be relieved from most of the administrative burdens associated
~."...,.,. with ccmstruction.
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FREQUENTLY ASKED QUESTIONS
"WILL HIRING A CONSTRUCTION MANAGER "WHAT IS THE RELATIONSHIP BETWEEN
ADD TO MY CONSTRUCTION COSTS? THE OWNER AND TIlE CM?"
i
No. Constructiaunanagementallcrwstheownerto ! The construction manager provides a
realize maximum savings through competitive i professional service, and acts as an agent of the
bidding of each trade package. The coostruction I owner. The eM: provides recommendations for
manager bids out all trade work to qualified the owner's decision on matters of scope and
subcDntractors. 1his way the owner avoids the budget, and directs the overall construction
generalcontractors'rnark-up. process. It is the construction manager's
responsibility to assure that the design and
It is a construction manager's job to find every construction phases are coordinated, that all
opportunity for savings in the project. Savings services are provided for, and that the owner's
which are realized in the design review and interests have been upheld.
value engineering process should more than I
. cover the cost of hiring a construction manager. I "CAN CONSTRUCTION MANAGEMENT SAVE
Beca.use the con.struction ~ager I?rovides II TIME AS WELL AS MONEY?"
continuous on-sIte supervISIOn, savmgs are ,
generated through tight control and planning of I Y es. PhasingthecOOstru~on programinvol ves
the project. Savings realized are returned 100% I biddingportionsofa project as deSign, develops,
to the owner. before the entire building design is finished.
I This involves simultaneous construction and
"DOES CONSTRUCTION MANAGEMENT I design over non-conflicting areas of a project. It
DUPLICATE THE SERVICES AN AlE applies to both new construction and renovation
PROVIDES?" work, and can significantiyreduce the time frame
for the whole project. Since time is money, time
No. A construction manager provides professional savings can result in cost savings.
servia:s to complement lOOse provided by design
professionals. The eM: provides independent I "DOES CONSTRUCTION MANAGEMENT
estimating and s<heduling serviCES to cornplerrent REDUCE COMPETITIVE BIDDING?"
theA/E'sdesignfunction. Valueengireeringduring
thedesignphaseisanaddedberefit,.1heconstructim No. Construction management increases
manager reviews the designs as an indepeOOent competitive bidding process through multiple
party and rerornmends cost saving alternatives. bid packages. Consequently, more trade
- Architectsmayvisitthesiteandobserveanstructioo; contractors are allowed to bid. The eM: tailors
, , however, it is the eM: who provides continuous 00- bid packages to the available trades in order to
i sitemanagementand supervision of construction. maximize local and minority involvement. The
! result is the lowest prices for each bid package.
I In sununary, the owner realized great~r c~st
. savings while providing local and mmonty
J contractors a greater opportunity to participate
in the program.
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. MAXIMUM LOCAL SUBCONTRACTOR AND
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. FAST TRACK CAPABIlITY · FULL DISCLOSURE REPORTING
· DETAILED EsTIMATING In conclusion, construction management has
become the preferred construction delivery 'I
. CHANGE ORDER CON'IROL system for educational facilities. It gives the
owner an ability to control the building program
. LOWEST AGGREGATE BIDS and receive themostfacilityfor the money within
prescribed budget and time constraints.
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, SA VINGS contractor.
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f1 GENERAL interprets general items.
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, CONDITIONS Items completed at CC6t, no mark-
,I condition items. .
SA VINGS . All savings/unused up.
0 items to general . All savings/unused items
I contractor. retained by Owner.
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I Sa-lEDULE - EARLY . Entire design must be . Construction can be phased
COMPLETION complete before bid out during design to speed up
to a general contractor completion.
I O\^/NER CHANGES . Limited by contract . Contracts structured for
items. flexibility.
I TEAM CHEMISTRY . Potential for adversary . "Checks & Balances" with open
relationship. communications.
I TOTAL PROJECT . Determined only when . Not-to-exceed fee determined
job is complete. prior to construction.
COST
. Change orders can
enhance contractors fee
and greatly add to the
project's cost.
PLAI'oINING A."lD . No input . D2s:ign phase input, value
DESIGN PHASE . No value engineering engireering analysis and
INl'UT Constructability reviews.
. 80% of all savings lake place
during the design phase
I PRIORITIES 1. Profitability 1. Quality construction
2. Reputation 2. Reputation
3. Quality construction 3. Budget! schedule control
REPORTING! . Limited or no reporting . Monthly written Project Manager's
COMMUNICATION Report
. Full Disclosure Reporting
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project personnel. . Owner selects project
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ScHOOL . Low bidder gets the job. . School construction spe:ialists.
CONSTRUCTION . May have no school
EXPERTISE experience.
I DECISION MAKING . General contractor makes . Team (owner, AlE, CM)
decisions about: makes decisions about:
- subcontractors - suo.,Sontractors
- supervision - supervision / "
- sequence of - sequence of construction /
construction - occupancy
- occupancy
I CHANGE ORDERS . 7"/0 mark-up on . Barton Malow does not charge
subcontractors changes, an additional fee for managing
. 15% mark-up for change orders, regardless of
overhead and profit. the amount.
I FEES . Set by market conditions . Pre-determined and fixed prior
and number of change to the start of construction.
orders.
I COMPETITION . Limited by availability of . Limited by school construction
bonded contractors. expertise.
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COST COMPARISON
CONSTRUCTION MANAGEMENT vs. GENERAL CONTRACTING
The attached page illustrates a key difference between Construction Management and General
Contracting in the Public Sector. When opting for the General Contracting method, the Owner,
as a public entity is required to accept the lowest responsible bidder on a single bid package for
the General Contract. Three to Five bids from three to five contractors each taking sub-bids
from trade contractors. The General Contractors solicit bids from whomever they wish and are
not required to take the low bid for each trade, and may also preclude the use of local
contractors. When the Owner receives the bids and determines the "low bid," one cannot be
sure that this low number represents the lowest responsible bid for each trade, it is merely the
lowest compared to the other General Contractors.
Construction Management provides an opportunity to have an open bidding process which
encourages local contractor involvement, plays no favorites, and increases competition which
/ favors the Owner. The Construction Manager prepares multiple bid packages. The Owner is
able to review and select the lowest responsible bid for each and every trade. The attached sheet
highlights several projects for which Bossardt has acted as Construction Manager. In the
examples, we compare actuat-bids received by small general contractor's bidding on several of a
project's bid packages with actual low bids received by individual contractors for the same
packages. The savings as shown in the column at right highlights that the savings is significant
even for just several bid packages.
When this is viewed in light of a project having 30-60 bid packages, depending on complexity,
the resulting savings achieved with Construction Management is difficult to ignore.
Bossardt Corporation
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COST COMPARISON
CONSTRUCTION MANAGEMENT vs. GENERAL CONTRACTING
Low General CM
Individual Contractor Cost
CM Bids Bid Savings
. Willmar High School
Grading/Site Preparation $496,000 Combination Bid
Storm Utilities 168,500 listed below
Sanitary/Sewer Utilities 122,000
$786,500 $819,000 $32,500
. Owatonna Junior High and
Wilson Elementary
Cast-in-Place Concrete $337,600 Combination Bid
Miscellaneous Metal Install 13,025 listed below
Carpentry 173,373
Drywall/Plaster 218,400
~ .... .... $742,398 $1,135,000 $392,602 ( \
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. Triton Public Schools
Concrete ~, $566,000 Combination Bid
Masonry 570,000 listed below
Steel Erection 178,545
Carpentry !Demo 234,200
$1,548,745 $1,635,000 $86,255
. Crookston High School
Building Excavation $343,200 Combination Bid
Concrete 535,092 listed below
Masonry 1,474,082
Structural Steel Supply 607,000
Structural Steel Install 410,000
$3,369,374 $3,767,800 $398,426
. Mower County Government Center
Bituminous Paving $60,733 Combination Bid
Selective Demo/Concrete/Masonry 243,733 listed below / '\
Carpentry 93,600 ,
Gypsum Board Systems 185,733
$583,799 $670,333 $86,534
Bossardt Corporation
Page 2 of 2
'-
, Queen City Constr., As stated before, some cities have required contractors to enter into
lne. v. City of PLAs as part of their contracts. The Minnesota Court of Appeals appears
Rochester, 604
N.W,2d 368 (Minn, to support the ability of cities to require PLAs. In a 1999 decision, the
App.1999) Minnesota Court of Appeals found that nothing in Minnesota law
prevents a public entity from imposing a bid specification that requires
successful bidders to sign a PLA
Minnesota Chapter In a challenge of a school district's PLA requirement on a construction
of Assoc. Builders project, the contractor claimed the PLA had an anticompetitive effect.
and Contractors,
Inc. v. Minnetonka However, the Minnesota Court of Appeals saw it differently, In the
lndep. School DisL court's unpublished opinion, it found that a PLA would not have an
No, 276, C2-99837 anticompetitive effect because Minnesota's prevailing wage law would
(Minn. App,
unpubl., Dec. 28, require contractors on a project to pay wages essentially equivalent to
1999) uruon wages.
Contact the League's Research and Information Services at (651) 281-
1200 or (800) 925-1122 for a sample PLA
C. Types of contracts
This section gives an overview of some of the different types of contracts
that have been considered by cities. It is not intended as an exhaustive
list. Cities should contact the League for additional information on any of
these types of contracts.
/ 1. Designlbidlbuild contracts
See Bailey, The designlbid/build contract procedure is the most traditional type used
ltlanagement of for building construction. With such a contract, the city contracts with an
Facility Design and
Construction, architect who designs the building. The architect's drawings are then
lCMA MIS R<p. used as the specifications to advertise for bids on the construction of the
Vol. 20, No.6 (June
1988) building. The winning bidder is contracted with to build the building.
The strength of this type of contract is that it allows the city to plan the
entire building before the construction begins. It also allows for some
follow-up between the contractor and the architect.
The weakness of this type of contract is that disagreements can arise
between the city, the architect, and the general contractor because of
competing interests, For example, the architect may not be aware of the
most current cost of materials and procedures, or the costs could change
significantly between the time the building was designed and the time the
construction begins. This procedure is slow because the project must be
entirely planned out and bid before the construction costs can be fixed.
Competitive Bidding Requirements in Cities 33
2. Construction manager
See Bailey, In this type of contract, the city retains a construction manager who is
Management of responsible for overseeing the contractor or advising the city ifthe city is
F acUity Design and
Construction, acting as the general contractor. Often, the city will take the
ICMA MIS Rep. responsibility for purchasing the construction materials, This type of
VoL 20, No.6 (June
1988) contract once allowed Minnesota cities to save the cost of sales tax on
building materials. However, since cities are now subject to the sales
tax, this savings is no longer available.
The strengths of a construction manager contract are that the city can
avoid contractor mark-ups on the cost of materials, and the city can have
additional supervision and feedback on the architectural design and
construction,
The weaknesses of a construction manager contract include the
possibility of higher administrative costs for the city and possible delays
because the responsibility for purchasing materials is not that of the
contractor. There also can be more opportunities for city, architect, and
contractor disagreements.
3. Designlbuild
JY. J.-: Ne/son In a design/build contract, the city hires a firm whose architect and
Constr. Co. v. City contractor design and construct the building, The use of an architect or
of Lindstrom, 565
N,W,2d 434 (Minn, designer does NOT exempt these contracts from competitive bidding
App.1997) requirements, The Minnesota Court of Appeals found that a design/build
contract for a municipal liquor store was a contract that was subject to
competitive bidding requirements, The Legislature also refused to
approve a bill that would have exempted design/build contracts from
competitive bidding.
See Jones, The strengths of the design/build contract are that the construction and
Design/Build design costs are established early and the responsibility for the entire
Negotiated
Contract Cuts Risk project is with one firm; thus, the architect and the contractor work
a/Construction together on the project. This type of procedure may also be faster
Cost Overruns for because the construction can begin while the final design is still being
Municipalities,
Illinois Mun. Rev. finished.
(Apr. 1991)
See Bailey, The weaknesses of the design/build contract are that the project may not
Management of be completely planned in advance, and the city may have less access to
F acitity Design and
Construction, and control over the architect. Additionally, there is often little
ICMA MIS Rep. opportunity for outside checks and balances by other professionals
Vol. 20, No.6 (June
1988) because the responsibility for the project rests with one organization.
34 League of Minnesota Cities
2. The Clayton Act
15 U's,C... 12, The Clayton Act generally prohibits price discrimination and certain
13,14-19,22-27 mergers and acquisitions. It also prohibits the sale or lease of goods
conditioned upon a buyer's agreement not to use the goods of a
competitor. Such practices could result in substantially less competition
or tend to create a monopoly.
3. The Robinson-Patman Act
15 u'S,C, .. 13a, The Robinson-Patman Act was adopted to amend the price
13b, and 213 discrimination part of the Clayton Act. It prohibits sellers from setting
unreasonably low prices for the purpose of driving out competitors. It
also prohibits sellers from charging different prices for the same item
based upon geographic location for the purpose of driving out
competitors, In addition, the law makes it a crime for buyers to
knowingly induce or receive an illegal discriminatory price,
C. The application of these laws to cities
Decisions made by the United States Supreme Court have made it clear
that federal anti-trust laws can also apply to cities. As such, it is
important for cities to keep these laws in mind when contracting and
purchasing,
,
/ City of Columbia The state's immunity from the federal anti-trust laws does not apply
v. Omni Outdoor directly to local governments, However, a city may have immunity if
Advertising, Inc.,
111 S, Ct, 1344 acting under a clearly expressed state policy.
(1991)
At a minimum, city officials should add an anti-trust mindset, like their
current anti-discrimination mindset, to their mental checklist of
considerations before acting and before speaking on city purchases and
contracts. They should resolve to only act openly through formal
meetings, and keep a well-documented record through minutes, formal
findings, and resolutions setting out exactly what was done and why.
The following suggestions should be kept in mind when making a
contract to keep purchases and contracts free of anti-trust problems:
. Use competitive bids or quotations even when the law does not
require it.
See Part 111- A . Avoid using vendor-furnished specifications that might
unnecessarily limit competitive bidding, When consultants
prepare bid specifications, they generally should not bid on the
requirements they have helped to create.
Compelitive Bidding Requirements in Cities 41
Although it is unclear whether the sales tax should also be included when
estimating the cost of a contract to purchase equipment, cities may wish
to include this amount. For example, suppose a city with a population
under 2,500 is going to purchase office equipment priced at $34,999
without sales tax and the city opts not to use the competitive bidding
process because the amount is under $35,000, However, the addition of
the sales tax brings the amount to more than $35,000, It is certainly
possible someone could argue that the contract should have been let
using the competitive bidding process.
4. Bids sent by facsimile
Minn. Stat. . It would appear cities cannot accept a bid sent to them via a facsimile
471.345, subd, 3 machine, According to the competitive bidding statute, bids must be
"sealed." It would also be impossible to submit a negotiable bid bond
or check in this manner. Acceptance of bids by facsimile machine is
common in the private sector, but not really workable for govemment
contracts that use the competitive bidding process.
5. Pre-qualification of bidders
The authority of cities to require bidders to pre-quality before allowing
them to bid on a contract is unclear, Requiring bidders to meet certain
minimum qualifications in advance would appear to be for the purpose of
\ eliminating unresponsible bidders and reducing the total number of bids
/ the city will need to consider. It also may give potential bidders an idea
of the criteria the council will use to determine the responsibility of the
bids,
Although it is arguable that a pre-qualification requirement is within a
city's powers, it is not possible to cite any direct authority for such a
practice at this time. However, decisions in cases from other states
suggest that pre-bid criteria are permissible when established under a
state policy, Cities may want to have their city attorneys consider any
pre-qualification criteria that are being considered for bidders.
6. Requests for proposals (RFPs)
See Part V1D, The competitive bidding statute does not provide for an alternative
Outline of an RFP purchasing procedure such as a "request for proposal" (RFP). If a
contract is required to be let through competitive bidding, cities may not
accept RFPs instead of sealed bids, However, RFPs are commonly used
for contracts that are not required to be competitively bid (such as
professional services,)
18 League of Minnesota Cities
j
\
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City of Andover
\
Memo
To: John Erar, City Administrator
From: Scott Erickson, City Engineer
cc: Jim Dickinson, City Finance Director
Date: 10/17/2002
Re: Opus
On Wednesday, October 16, 2002, I spoke with Mr, Leith Dumas of Opus Northwest LLC to clarify a
few items in their preliminary cost estimate for the Andover Athletic Center, The points of discussion
are as follows:
1, The cost estimate for the field house and other areas anticipates precast, tilt-up, panels for the
construction, There would be brick/block accents around the entrance area to the facility. The
flooring in the field house would be modular rubberized flooring,
2, Additional technologies, such as announcing/sound systems, are not included with the estimate, It
\ was indicated that there is a wide variety of options and costs in these types of components,
j
3, All areas would be air-conditioned, .
4, The sample projects are as identified in the previous memos provided by Opus,
5, Anticipated method of design would be CM and they have their own in-house architects, I have
called Mr. Dumas back to see if a City appointed architect could be used,
6, The "at-risk" or guaranteed price would typically be determined once the project is fully defined,
7, Opus would propose to bid on various components of the project to insure bottom line pricing,
The inspection process was discussed and it was indicated that independent test labs are utilized
for the required testing and if necessary the City could hire independent inspection for these
particular activities,
8, The field house will be air-conditioned and have locker facilities, It does not appear that there are
any additional amenities included,
9, It was indicated that the CM costs/fees included in their preliminary proposal would include all CM
activity from start to finish,
It was discussed that a more detailed project scope would better define the project parameters and
would allow for a more accurate cost comparison, Allowing 2-4 firms to make more detailed proposals
could assist the City in further defining the project scope and result in more accurate cost estimates,
/
1
f!}) [(&J /111 (f}@[fJr! @
RESOLUTION ESTABLISHING COMMUNITY CENTER
PARTNERSHIP PRINCIPLES AND VALUES BETWEEN THE
CITY OF ANDOVER AND THE YMCA OF METROPOLITAN
MINNEAPOLIS
WHEREAS, it is the mission of the YMCA to develop the whole person - spirit, mind and body through
character developing programs that build strong kids, strong families and strong communities;
WHEREAS, it is the intent of the City of Andover to provide a multi-purpose community facility that
offers a variety of community-based recreational, educational, social and athletic activities and programs,
WHEREAS, it is the desire of the YMCA of Metropolitan Minneapolis and the City of Andover to develop
a community center in the City of Andover housing a field house/gymnasium, aquatics center, and ice
arena;
WHEREAS, the YMCA is committed to taking a leadership role in developing a community center in the
City of Andover.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE YMCA AND
THE CITY COUNCIL OF THE CITY OF ANDOVER:
I) That the YMCA and the City of Andover establish a partnership for the purpose of developing,
constructing and managing a community center to be located in the City of Andover;
2) That the design, development, construction and operation of such facility be based on the
following principles and values:
a. That the facility be constructed in a cost-effective, aesthetically pleasing and attractive
manner consistent with values that incorporate high quality workmanship, durability of
design and material, a reasonable level of attractiveness, usability and efficiency;
b, That the facility design team will include staff representation from the YMCA to consider
YMCA operational needs and incorporate appropriate design characteristics;
c. Sound [mancial principles based on user fees, capital campaign fundraising, and other
sources of funding deemed appropriate to support the construction and operation of the
facility;
d, That the operation of the facility be conducted in a business-like manner with the intent
of supporting facility operations primarily through public and private use, with minimal
public subsidy;
e. Partnership principles will be based on a commitment of mutual respect, open
communication and appreciation in the meeting the needs of both the City of Andover
and the YMCA of Metropolitan Minneapolis; and
f, That the YMCA's facility lease commitment shall be dependent on meeting established
fundraising targets prior to construction beginning on the facility
3) That, within available resources, the YMCA will endeavor to accommodate all who wish to
participate in YMCA programs and services.
4) That no one will be denied access to YMCA programs or services based solely on an inability to
pay.
5) That the YMCA and the City of Andover will develop a special membership incentive for
residents of the City of Andover.
6) That the City of Andover will underwrite the capital costs of the entire facility, with the YMCA
agreeing to a lease period of not less than 20 years to allow the City of Andover the opportunity to
recover its proportionate share of costs attributed to YMCA space and program needs (Would the
YMCA consider a 30 year lease period??) This is a discussible issue. but we would need to talk
about what happens at the end of the lease term,
f!}) [1[) 111l (0 @ [fJ rJ .
7) That the City of Andover and YMCA will jointly direct and manage all functions and services
provided in the facility through a separate joint use agreement;
, 8) That a Community Board, appointed as outlined in YMCA Bylaws and Constitution, will be
, developed to support YMCA activities;
9) That the City of Andover and the YMCA will jointly participate in a Capital Campaign
fundraising effort in which the name of the YMCA can be used to solicit funding for the facility,
10) That a five (5) member Community Center Advisory Board will be established by the City of
Andover to oversee the facility and advise the City Council. Members will be appointed by the
Andover City Council, which will include (I) one pennanent seat for YMCA representation,
Dated:
Harold Mezile Mayor Mike Gamache
President & CEO City of Andover
YMCA of Metropolitan Minneapolis
Attest:
Vicki Volk, City Clerk
" CITY OF ANDOVER
)
1685 CROSSTOWN BOULEVARD NW, . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW,CLANDOVER.MN,US
TO: Mayor and Councilmembers
FROM: John F. Erar, City Administrator
SUBJECT: Capital Campaign Considerations/Time Line
DATE: November 13, 2002
INTRODUCTION
In order to gain a better understanding of the factors and variables impacting an effective capital
campaign effort, staff met with Mr, Harold Mezile, YMCA President/CEO and Dave Assmus,
Fundraising Consultant with Saterbak and Associates,
DISCUSSION
Both gentlemen have indicated the following concerns:
. Both parties agree that beginning construction of anyone facility component before the
/ fund raising effort is completed could seriously jeopardize the City's chances to meet the
funding raising target of $3.5 million, Both individuals indicate that public perceptions of
facility need and urgency could be imperiled through phased construction, thereby lessening
citizen interest and desire in financially supporting the entire project,
. Mr. Mezile indicated that the YMCA's lease commitment shall be dependent upon the City
meeting the fundraising targets as outlined. Failure to meet these targets would have
significant consequences on the YMCA's financial capabilities to meet projected cash flow
requirements of the facility. In its private fundraising efforts, the YMCA has never initiated
the construction of a facility until fundraising efforts have been completed--corroborating
the City's capital campaign consultant's recommendation that the City should not begin
construction until fundraising efforts have been concluded,
. Mr, Assmus has submitted a letter (attached), which he wrote to Council Member Knight
outlining his views on the question of phasing construction of the facility before established
fundraising targets have been met, Mr, Assmus's experience and views as the City's capital
campaign consultant should be taken into account if the City Council were to deviate from
his fundraising recommendations, According to Mr. Assmus, the importance of maintaining
broad community support for the project in its entirety cannot be underemphasized if the
campaign effort is be successful,
. The YMCA and Saterbak & Associates through their broad range of experiences have
expressed significant concerns with beginning construction of the facility before the
completion of the fundraising effort,
. Mr. Assmus indicated that the capital campaign effort should be completed within 12-13
months of Council commission, with a target completion date of February, 2004,
BUDGET IMPACT
Failure to meet fundraising targets would result in a higher tax burden \annual City subsidy due to
reduced private revenue sources. The YM:CA has also expressed strong concerns on their ability to
cash flow their portion of the facility's operations should the City's capital campaign effort fall short
of established target goals,
ACTION REQUIRED
For Council information and discussion.
Cc: Mr. Harold Mezile, President/CEO, YM:CA
Mr. Dave Assmus, Saterbak and Associates
Attachment
/
- .
Satervak & Associates
, Serving those who serve others,
J
November 5, 2002
Mr, Mike Knight
4660 175th Avenue NW
Andover, MN 55304
Dear Councilman Knight.
It was good to visit with you on the 29th, I have thought further about some of the things
we talked about and I wanted to get back to you, As I think about your question, "Is there
any way to build the community center in a phased approach?", I still find myself saying
no, not without creating some significant risks, Our industry's experience has been that. as
a general rule, once you start groundbreaking the fundraising stops, Construction activity
sends the message that the city has all the resources it needs to complete the project. The
sense of urgency for people to financially support the project is gone,
I am currently assisting another community in raising money for an expansion of their
community's recreation center. The actual construction of this addition was completed
-, last spring, We are finding that the fundraising to cover the cost of already completed
I
/ construction is significantly more difficult than it would have been had it been done before
construction had been started, Human nature being what it is, those who are most
interested in having the additional facilities are no longer interested in working on or
supporting the campaign, We continually encounter the attitude, "We have the facility, I
don't need to get involved,"
Given the fact that the project Andover is considering addresses many important
community needs, a successful campaign will require the involvement of community
leaders who have a broad spectrum of interests, It would not be helpful to have one
section of the project be completed before the entire campaign is complete, as there is
every likelihood that many of those whose interest is in the area that has been completed
would choose not to be involved in the campaign, There is also the possibility that phased
construction could provoke dissension by creating an opportunity for the question, "Why
was their phase completed before ours?" Campaigns are designed to bring a community
together, and dissension obviously makes the process more difficult.
We discussed how a phased approach to construction might affect the final cost of the
project. My feeling is that dividing a project will add to its cost, but our expertise is not in
that area, The answer to that question has to come from the city's facilities manager or
the architect who is designing the project. It is an important question that needs to be
addressed,
-,
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C'''5LdlaIJIS 111 P!,ilanll1ropy . 917 SOL/Ill 4111, Suite 103 . La Crosse, WI 54601 . 608.782.5988 . fax 608.782.5989 . a[@salerba!wssoccom
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, I reviewed my notes from interviewing the 6] people in Andover. Only two people asked if
\ ; the project could be done in phases, The rest of the people expressed support for the
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community center. The concept of a community center was what motivated the people,
not the timing,
At one of the city meetings I attended, I remember conversations about Andover's sense
of pride in things that are done well. That factor is especially important in projects that are
supported through charitable gifts, No one wants to be associated with a project that is
put together in haste,
Finally, your community has only one chance to mount a successful first campaign, How
this project is planned, how the campaign is managed, and how the facility is ultimately
received by the community will influence the City of Andover for decades, This project
must be done well. that is much mOie Ciitical than a six month or one year difference in its
completion date,
I hope that this letter helps you as you consider the decisions the City Council will be
making over the next few weeks, If other issues arise, please feel free to contact me at any
time,
Sincerely,
j;J~
'- / David Assmus
Partner
cc: John Erar
Mayor Mike Gamache
Jim Dickinson
Allen J, Saterbak
DAjtdl
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, CITY OF ANDOVER
1685 CROSSTOWN BOULEVARD N.w, . ANDOVER, MINNESOTA 55304. (763) 755.5100
FAX (763) 755-8923 . WWW,CI,ANDOVER.l\IN,US
TO: Mayor and Councilmembers
Park and Recreation Advisory Commission
FROM: John F. Erar, City Administrator
SUBJECT: Council Policies - Miscellaneous Park Issues
DATE: November 13,2002
INTRODUCTION
At the 2002 Council Goal-Setting Session, the City Council discussed the need to develop several
policies to clarify Council/Commission inter-relationships and oversight responsibilities of the Park
and Recreational Advisory Commission. Draft policies were initially presented to Council on
September 12, 2002, with direction that staff should bring these proposed policies back to Council
at a separate workshop,
DISCUSSION
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Attached, please find copies of three (3) draft policies for Council review and discussion. The
proposed policies have been developed in conjunction with the City Engineer and Assistant City
Engineer/Parks Coordinator and Finance Director to address issues raised by the City Council to
ensure a productive, positive and collaborative relationship.
ACTION REQUIRED
Discuss, modify and/or consider adoption of the attached policies as presented.
2002-03 Council Goal Setting - Development of Draft Policies
) PROVIDING FOR THE PLANNING, DESIGN, CONSTRUCTION AND FINANCING
OF PEDESTRIAN TRAILS
The City Council supports the concept of a bi-modal transportation system providing for
both vehicular and pedestrian travel. The planning, design, construction, and funding of
City trails for pedestrian travel are a critical component ofthe City's bi-modal
transportation system. As such, the City Council retains direct authority for all pedestrian
trail improvements in the community.
Multi-use pedestrian trails will be defined as "separate and distinct from recreational
trails as they provide the walking public with alternate means of travel along County and
City roadways." Accordingly, the purpose of pedestrian trails is to keep non-motorized
pedestrian travel off of County and City roadways. Planning activities associated with
pedestrian trail construction shall be under the direct authority of the City Council.
The planning, design, and construction of trails shall be recommended by the City
Engineering Department, with concurrence by the Public Works Division and
incorporated within the City's Five Year Capital Improvement Plan, subject to approval
by the City Council.
Funding for multiuse pedestrian trails shall be underwritten through the City Trail Fund,
'\ Municipal State Aid and grants, with maintenance activities funded by the annual Road
/ and Bridge Levy. A funding formula designated for the maintenance, repair and
reconstruction of pedestrian trails will continue to developed to ensure that long-term
needs are adequately addressed. Connections between pedestrian and recreational trails
shall be coordinated between the City Engineering Department and the Parks and
Recreation Commission, with funding allocated according to trail segmentation
apportionment between pedestrian and recreational use. Final approval will be subject to
the City Council.
ESTABLISHING A PROTOCOL FOR THE EXPENDITURE OF PUBLIC FUNDS BY
THE PARK AND RECREATION ADVISORY COMMISSION
The Park and Recreation Advisory Commission is an advisory body to the City Council
with the purpose of advising, formulating and recommending policies, measures and
programming to enhance the quality oflife related to the City's Park and Recreation
System. The City Council respects and appreciates the role of the Park Commission as it
pertains to developing and recommending a comprehensive plan for park and recreational
trail improvements funded by Park Dedication Fees, Capital Park Project Levies and state
and federal grants.
The expenditure of public funds including but not limited to Park Dedication Fees, Grants
and Capital Park Project levies is subject to final approval by the City Council.
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/ THE ROLE OF THE PARK AND RECREATION ADVISORY COMMISSION
The role of the Park and Recreation Advisory Commission is to advise, formulate and
recommend policies to the City Council on issues affecting the City's park and recreation
system. All actions taken by the Park and Recreation Commission are subject to review
and approval or denial by the City Council. Areas of oversight expressly delegated to the
Parks and Recreation Commission by the City Council include:
. Recommend Capital Park and Recreational Trail Projects subject to available
funding sources
. Recommend Policies affecting the use of the City's Park System
. Advise the Council on matters affecting the City's park and recreation system
Implementation of policies affecting resident use of the City's park system as
recommended by the Parks Commission and adopted by the City Council is a staff
function subject to final review and oversight by the City Council.
Maintenance, upkeep and repair of the City's park and recreation infrastructure is a staff
function subject to the control of the Public Works Superintendent.
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CITY OF ANDOVER
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1685 CROSSTOWN BOULEVARD N.w, . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW,CI.ANDOVER.l\fN,US
TO: Mayor and Councilmembers
FROM: John F, Erar, City Administrator
SUBJECT: North Metro Mayors Assoc. Membership Presentation
DATE: November 13, 2002
INTRODUCTION
At the 2002-2003 Council Goal-Setting Workshop, Council indicated its desire to receive additional
information from the North Metro Mayor's Association on the benefits of membership before
making a final decision, On September 17, 2002, Ramsey Mayor Gamec, Brooklyn Park Mayor
Arbogast and Mr. Joseph Strauss, Legislative Director from the North Metro Mayor's Association
(NMJ\iA), were in attendance and made a presentation to the Council on the benefits of
membership,
DISCUSSION
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Mayor Gamec and Mayor Arbogast have jointly authored to the Council regarding membership
benefits (attached).
This workshop is in response to Council Goal-setting discussions to determine whether the City of
Andover will join the NMJ\iA,
BUDGET IMPACT
If Council is receptive to joining the NMJ\iA, the 2003 Proposed Budget includes costs for
membership. Membership fees are based on a population formula and are anticipated at
approximately $13,700 for 2003,
ACTION REQUIRED
Consider NMJ\iA membership information and discuss level of interest in joining the NMJ\iA,
ohn F, Erar
City Administrator
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NORTH METRO MAYORS
/ A S S 0 C I A T I 0 N ~lElI:lEnH~
OCT - 7 2002
October 4, 2002 CITY OF ANDOVER
i'\ ; K~
The Honorable ~ Gamache
Mayor
City of Andover
1685 Crosstown Boulevard NW
Andover, MN 55304
Dear Mayor Gamache:
Thank you to you and your fellow council members for the opportunity to visit regarding the
North Metro Mayors Association. As stated in person, the City of Andover was one of the
founding members of the organization and participated fully as a member for a number of years.
During the question and answer portion of our presentation Council Member Don Jacobson
asked how the city might benefit from rejoining the NMMA versus remaining a member of
J AMM, It is not our practice to suggest that cities join only the NMMA as opposed to other very
worthy organizations. In fact we work closely with the AMM and the League of Cities on
numerous legislative initiatives where the issue is much broader than just North Metro
communities.
Our response to this question is that there are certain issues that only the North Metro Mayors
Association can quickly come to consensus on and move aggressively to act for the benefit of
our membership and/or individual member needs. This is because we have a closely-knit group
of dedicated elected and professional staff members. There is a real commitment to finding
solutions and building consensus. Frequently, our local issues are not high on the list of
priorities for the LMC and AMM. For example, the NMMA acted on behalf of the City of
Andover:
. to work with the Metropolitan Council to resolve your issue with METC on septic
system inspections. NMMA staff negotiated the arrangement referenced in the attached
letter from Mr, Richard Fursman, your former City Administrator.
. to assist when you sought 'clean-up funding' for its Andover Station site from the
legislature. The organization worked with your local State Senator (Paula Hanson) and
several House members, monitored the funding process through various committee stages
and worked with leadership in the House and the Senate, as well as the Administration to
ensure that this legislation was passed. It is our recollection that the legislation included
$500,000 in funding for the Andover Station site.
8525 Edinbrook Crossing, Suite #5, Brooklvn Park, MN 55443
TEL (763) 493-5115 .... FAX(763) 424-1174
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These are just a couple of examples of 'direct benefit' that the City of Andover has received
from its past membership. Wherever possible, NMMA has historically worked closely with
members as they have pursued individual administrative and legislative objectives.
Regarding the NMMA's Community Outreach program this fall, we appreciate the fact that the
city has agreed to allow NMMA to use your Council Chambers for one of our Legislative
Candidate Forums, This is but one of 10 such forums throughout the North Metro area, where
we hope to make 'municipal issues' a campaign matter, by both informing candidates as well as
the broader community. Hopefully we will have a better-educated elected legislator and have
more legislators standing up for local government issues in the NMMA area in the future,
One other question that was asked dealt with composition of our Board. Although each city
retains the right to nominate person to serve on the Board, our Joint Powers Agreement
suggested that cities name their respective Mayors and city manager/administrators as the two
representatives to the Board. Our Board meets five times per year. The Operating Committee
comprised of each city's manager/administrator meets bi-monthly, six times per year, The
Operating Committee is responsible for day-to-day operational issues and makes
\ recommendations to the Board for its consideration.
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The organization has the following officer and administrative position:
. President, Mayor Grace Arbogast, Brooklyn Park
. Vice President, Mayor Thomas Gamec, Ramsey
. Executive Vice President, Joseph D, Strauss
. Executive Director, Sarah Eppard
. Chair of the Operating Committee, Dan Donahue, New Hope City Manager
. Chair of the Audit Committee James Keinath, Circle Pines City Administrator
The organization is both a 'policy driven' and 'transaction' organization. The Association has
achieved multiple successes over the years in funding for transportation projects. It has achieved
a reputation for delivering 'credible information' on such issues as tax reform, local
governmental aids, fiscal disparities, transportation and transit funding, housing data, and
economic development. It has spun off several coalitions that are focused on specific targeted
projects, e.g" North Metro Crossing Coalition, North Metro Highway 1 00 Council, North Metro
Highway 10 Corridor Coalition, NM 1-35W Corridor Coalition, as well as the Northwest
Corridor Partnership (Highway 81).
Lastly, as a direct result of the Association, our communities have entered into numerous joint
powers agreements that have benefited our communities through shared service and program
delivery, such as, fire, housing, economic development, etc.
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We invite the City of Andover to rejoin the North Metro Mayors Association. Our Association
includes fully developed and developing communities, low to moderate and fairly high tax base
communities, Yet, we have common issues and we are dedicated to finding solutions that make
municipal government work better for the good of our residents.
We are a non-partisan organization and our goal is to make the North Metro Area the best place
to live, work, recreate, get an education and just enjoy the finer things in life. We look forward
to your future participation in our mission,
Sincerely,
J,",jJ,i~~ ~~
. Grace Arbogast Thomas Gamec
v
Mayor, Brooklyn Park Mayor, Ramsey
President, NMMA Vice President, NMMA
cc: City Council Members
/ City Administrator
Enclosure
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MEMBERSHIP - 22 Communities
Anoka Blaine Brooklyn Center
Brooklyn Park Champlin Circle Pines
, Coon Rapids Crystal Dayton
, Fridley Lexington Maple Grove
Minneapolis MCDA Mounds View
New Brighton New Hope Oak Grove
Osseo Ramsey Robbinsdale
Spring Lake Park
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COMMUNITY PARTNERS - 26 Area Businesses
AI Garcia and Associates PA Barna, Guzy & Steffen, Ltd,
Bonestroo, Rosene, Anderlik & Associates Bremer National Bank
Capitol Connections Community Resource Partnerships
Connexus Energy Contractor Property Developers
Company
Duckor & Associates Ehlers & Associates Inc.
Government & Enterprise Services Kennedy & Graven Chartered
Krass Monroe, PA Liberty Diversified Industries
M & I Bank Minneapolis Metro North Convention
and Visitors Bureau
North Memorial Community Foundation North Star Bank
Northeast Bank Reliant Energy/Minnegasco
Scherer Bros, Lumber Co. Springsted Incorporated
\ Strauss Management Company Tiller Corporation
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AI Garcia and Associates PA American Family Insurance
AT & T Broadband, LLC Barna, Guzy & Steffen, LId,
Bonestroo, Rosene, Anderlik & Associates Buffalo Wild Wings Crystal
Capitol Connections Cass Screw Machine Products Co,
Community First National Bank Community Resource Partnerships
Connexus Energy Corporate Express
Dorsey & Whitney LLP Duckor & Associates
E & V Consultants & Construction Mngrs Edina Realty
Excensus LLC Gary A. LaPalme CPA
Government & Enterprise Services Greater Metropolitan Housing Corp,
Hakanson Anderson Associates Inc, Mike Opat For Commissioner Committee
HLB Tautges Redpath, LId, John R. Nelson Farms
Krass Monroe, P,A. M & I Bank
Meyer, Mohaddes Associates, Inc, Minneapolis Metro North Conv, & Visitors Bureau
Nancy Reeves & Associates North Memorial Community Foundation
North Star Bank Northcross Partners
Northeast Bank Northland Inn & Conference Center
Relaxation Advantage Reliant Energy/Minnegasco
Short-Elliott-Hendrickson Inc, Springsted Incorporated
SRF Consulting Group, Inc, State Farm Insurance
Strauss Management Company Thirteen Moons
/ TR Computer Sales, LLC URS Corporation
US Bank Piper Jaffray Asset Mgmt, Inc, Wells Fargo
WSB & Associates, Inc, Xcel Energy
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JOINT POWERS AGREEMENT
, TO FORM A COALITION OF METROPOLITAN COMMUNITIES
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THIS AGREEMENT, made and entered into this day of , 2002, by and
between the city of and other political subdivisions
executing identical agreements, hereinafterreferred to as "Agencies."
The Agency hereto agree to establish an organization to be known as the North Metro Mayors Association
to promote transportation and economic development projects.
Any other public entity may become an agency upon approval by a majority of the then Agencies.
Minnesota Statutes Section 471.59 authorizes two or more governmental units to enter into an agreement
for the joint and cooperative exercise of any power common to the contracting parties, Whereas,
improvements to transportation systems serve the Agencies by promoting the public's health, safety and
general welfare and economic development enhances the local tax base thereby enabling the Agencies to
provide needed municipal services at acceptable tax rates,
NOW THEREFORE, pursuant to the authority granted by Minnesota Statutes Section 471.59, the parties
hereto do agree as follows:
1) BOARD OF DIRECTORS, The governing body of the coalition shall be its Board of Directors.
Each agency shall be entitled to two (2) directors. Each director shall have one (1) vote. Each
" agency shall appoint two (2) directors, one (1) of whom shall be the City Manager or Administrator
, / or other designee.
A majority of the Board of Directors shall constitute a quorum of the Board.
2) MEETINGS. The coalition shall meet on call ofthe president or by the Operating Committee.
3) OPERATING COMMITTEE. The Board of Directors shall appoint an Operating Committee. The
Operating Committee shall have authority to manage the affairs and business of the coalition
between coalition meetings, but at all times, shall be subject to the control and direction ofthe
Board.
The Operating Committee shall meet as needed at a time and place to be determined by the
Operating Committee.
4) FINANCIAL MATTERS. Coalition funds may be expended by the Board. Other legal instruments
shall be executed with the Authority of the Board. The Board shall have no authority to expend
funds in excess of the coalition funds or incur any debt.
The financial contribution of the Agencies in support ofthe coalition shall be per capital for full
members. Each of the Agencies shall, by February 2nd of each year, pay to the coalition an amount
as annually determined by the coalition based on the most recent Metropolitan Council population
estimates. The Board may authorize changes in the per capita charge for all members upon
majority vote. The annual assessment levy shall be determined by October 1st ofthe preceding
year.
.
The Board may receive financial contributions from private associations, entities or financial
" institutions. Such associations, entities or institutions shall then become honorary associate
, members. Honorary associate members may send representatives to Board meetings, but shall not
be entitled to representation on the Board or have any voting rights.
5) WITHDRAWAL. Any Agency may withdraw from this agreement effective on January 1 of any
year by giving notice prior to October 15 of the preceding year.
6) TERMINATION. The coalition shall be dissolved if less than three (3) Agencies remain, or by
mutual signed agreement of all of the Agencies. Upon termination, remaining assets of the
coalition shall be distributed to the full members still remaining at the time oftermination, pro rated
according to their respective contributions.
7) NOTICES. All notices or other communications required herein shall be sufficiently given and
shall be deemed given when delivered or mailed by registered or certified mail, postage prepaid,
addressed to the following parties: President, Board of Directors, and Chairman, ofthe Operating
Committee,
8) AMENDMENTS. This agreement may be amended and become effective only by written
agreement entered into by all members in good standing.
9) MULTIPLE EXECUTION. This Joint Powers Agreement may be executed simultaneously in any
number of counterparts, each of which counterparts shall be deemed to be an original and all such
" counterpart shall constitute but one and the same instrument. An originally executed counterpart
,
\ j shall be filed with Sarah M, Eppard, Executive Director, North Metro Mayors Association, 8525
Edinbrook Crossing, Suite #5, Brooklyn Park, MN 55443,
10) EFFECTIVE DATE. This agreement shall be in full force and effect upon receipt by Sarah M.
Eppard, Executive Director, North Metro Mayors Association, 8525 Edinbrook Crossing, Suite #5,
Brooklyn Park, MN 55443, of a joint agreements, along with a copy of a certified resolution of the
governing bodies authorizing the execution and delivery ofthe joint powers agreement.
CITY OF
By:
By:
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" CITY OF ANDOVER
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1685 CROSSTOWN BOULEVARD NW, . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.cI,ANDOVER,MN,US
TO: Mayor and Councilmembers
FROM: John F. Erar, City Administrator
SUBJECT: 2003 Proposed Budget - Discussion
DATE: ~ovember13,2002
I~TRODUCTIO~
The Proposed 2003 Budget was reviewed by the Council at two separate workshops, The first
workshop occurred prior to the preparation of the 2003 Budget, with the second workshop
occurring prior to the adoption of the Proposed 2003 Budget. Council subsequendy adopted the
proposed 2003 Budget and scheduled a Truth-in-Taxation Hearing for Tuesday, December 10,2002
at 7:00 p,m.
'. DISCUSSIO~
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This item has been placed on this workshop agenda in response to further requests for discussion of
certain budgetary items related to wages and benefits, At this point, staff has responded to questions
previously raised by Council members Jacobson and Trude regarding wage and benefit budget
issues, Both Finance Director Dickinson and I would be pleased to provide any additional
information Council may desire for further review and discussion,
ACTIO~ REQUIRED
For Council information, Finance Director Dickinson has received some updated property tax rate
information from Anoka County that he will share with the Council,
Respectfully submitted,
John F, Erar
City Administrator
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