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HomeMy WebLinkAbout01-04-1993 Council Minutes Special MeetingMINUTES OF A SPECIAL ORONO COUNCIL MEETING HELD JANUARY 4, 1993 ROLL The Council met on the above date with the following members present: Mayor Edward Callahan, Councilmembers J. Diann Goetten, Gabriel Jabbour, Charles Kelley, and JoEllen Hurr. The following represented the City staff: City Administrator Ron Moorse, Public Works Director John Gerhardson, City Clerk Dorothy Hallin, Finance Director Tom Kuehn, and City Recorder Teri Naab. Jack Boarman, architect, and John Davies, Construction Manager, were also present. Mayor Callahan called the meeting to order at 4:00 P.M. ( #1) OATH OF OFFICE HaIIin administered the Oath of Office to Mayor Edward Callahan, and Councilmembers Charles Kelley and JoEllen Hurr. ( #2) APPOINTMENTS It was moved by Mayor Callahan, seconded by Hurr, to appoint Goetten as Acting Mayor. Ayes 5, nays 0. ( #3) DISCUSSION OF BUDGET FOR CITY FACILITIES Mayor Callahan recalled at the last meeting of the Council a number of invoices were submitted for payment, of which, one had since been paid. Moorse concurred and reported it was to Allied Mechanical. Mayor Callahan clarified that the payment to Allied is within the bounds of the contract with Allied, leaves the City with a 10% retainage, and the contract had not been altered from the beginning to the end except for a reduction or to benefit the City. Moorse concurred. Callahan asked if there were a number of other bills with those same characteristics. Moorse stated there were. Jabbour noted the problem he has with the issue is that on September 28th, the Councilmembers left the meeting with a budget estimate, which since has been revised and the Council was not apprised of the revisions until specifically asked for. He clarified that currently the Council is asked to authorize payment for work done in November. Davies stated that is correct. Goetten asked if security for the Police Department has been reduced. 1 MINUTES OF A SPECIAL ORONO COUNCIL MEETING HELD JANUARY 4, 1993 Moorse explained the holding cells meet the requirements of a 72 hour holding cell, but a security area and day room would need to be added to use the facility as such. He noted the City decided it necessary to have an area to hold persons until Hennepin County could transport them to their facility. He said they do not have a complete facility to hold persons for 72 hours. Boarman clarified that the facilities the Council toured prior to construction are similar to what has been constructed. He stated currently there is not a facility in the metropolitan area that has a holding cell rated for more than 4 to 8 hours. He noted the inclusion of windows in the cell allows for a longer stay. He indicated the difference from a 72 hour rated cell from what they currently have is the need for a day room area and a food service area. He added the more significant reasons for not providing a 72 hour rated cell are insurance, liability and additional staffing needs to service the detainees. He said they could change the fac i I i ty from the current 4 hour rated ce I I to a 72 hour rated ce I I without physically changing the building, but noted they would need to add staff to do so. He felt this situation allows for the most efficient use of patrol personnel. Kelley asked the City's current policy for holding detainees. • Moorse said the City currently holds persons for transfer either by Hennepin County or a CSO officer. Boarman noted the Department of Corrections will spend time with the Police Department prior to occupancy reviewing allowed procedures for usage of the facility. Goetten reiterated she understood from the beginning the facility would be rated for use of up to 72 hours. Boarman suggested staff monitor usage and do a cost comparison in the future to determine the cost of additional personnel versus the transport costs. Goetten thought the Council wanted a longer holding period. Jabbour noted a concern that someone sold the Council on this feature. Mayor Callahan agreed, and recalled the Council was told they would actually make money by allowing surrounding communities to use the facilities. He noted all three Councilmembers agree that is what they were originally told. • 2 • MINUTES OF A SPECIAL ORONO COUNCIL MEETING HELD JANUARY 4, 1993 Boarman noted the I -3 detention area cost the City an additional $135,000 to $150,000. Mayor Callahan suggested meeting with the Police Chief and indicate to him the need to monitor the economic situation pertaining to the facility. Kelley asked if it is to be the policy of the City to allow usage of the facility by other jurisdictions. Mayor Callahan noted that is not the current policy, but understood that the City was actively going to pursue that option. Kelley suggested informing the Police Chief that the current policy is not to allow other communities to use the facilities. Hurr asked how strict the 4 hour regulation is enforced. Boarman stated there may be some flexibility to that rating. Hurr asked what additional expense was incurred to provide a 72 • hour facility. Boarman noted the only additional cost was for the windows. Hurr asked who signs change orders. Moorse noted they are signed by the Mayor after Council approval. Jabbour indicated he has not heard of any change orders since September 28th. Davies noted they are behind on the paper work dealing with change orders, but all changes have been approved by the Council. He noted the Council will soon be receiving the documents regarding those. Jabbour felt some change orders have been brought to the Council after the work has been done. He suggested staff review with the City Attorney the procedures they are following regarding the responsibility of the HRA Board and the Council. Hurr asked whose obligation it is to ensure the contract includes all necessary items. Davies responded it is his responsibility to write the contract to include the scope of the project. He noted in some cases an item • may have been omitted from the drawings or there may have been a mis- interpretation which resulted in change orders, but have not 3 MINUTES OF A SPECIAL ORONO COUNCIL MEETING • HELD JANUARY 4, 1993 actually cost the City additional as they were never included in any of the contracts. Mayor Callahan noted there are currently some disputes regarding invoices submitted, which are being addressed. Jabbour expressed his concern that the building be built to allow the City to function as it deems appropriate and to get the maximum usage from the building. He added, some items may have been inadvertently forgotten which were later realized. Hurr noted the City has not received all that was included in the original budget. Jabbour explained some items have been changed or eliminated to stay within the budget. Boarman noted the $43,000 over the budget will pay for everything the Council has approved to date. Mayor Callahan explained when the bonds were sold the City did not have finalized drawings and based the budget on estimate solely. • He noted some of those estimated amounts were not accurate. He stated the Council has tried to stay within that budget by changing whatever was necessary. He felt the Council had established a workable system to track expenditures and the construction. He noted the City is holding a retainage to pay for any liability of the contractor. Jabbour asked who is paying for the concrete walls for the kennel. Davies explained that is a disputed item with the contractor. Mayor Callahan noted the large change of amount in the owners' contingency. Davies indicated the cost of the cold storage building had been added back into the budget. Mayor Callahan clarified that there have been little changes since September 28th. Davies referred to Exhibits D, E and G, which indicate those changes since the meeting of September 28th. • 4 • MINUTES OF A SPECIAL ORONO COUNCIL MEETING HELD JANUARY 4, 1993 Jabbour questioned the light for the salt storage. He noted the original estimate for providing electricity to the cold storage building was near the total amount to run the electricity for one light. Davies explained that item includes additional amounts for other electricity provided than what was needed for just the light on the salt storage building. Mayor Callahan noted the contingency available as of September 28th, plus the additions and deletions since then do not amount to the contingency presented to date. He suggested staff and the consultants review the numbers. He asked the dollar amount needed to complete the project. Davies reported $137,000 has not been contracted for to date, and $639,000 represents work completed but not yet billed for, and this amount includes a number of things in dispute. Kuehn noted the City has escrowed $400,000 of the bond sale as part of the indenture in case the City is unable to make the bond • payment. He noted the City did include $190,000 within the budget from the building fund. Davies noted the City is also sitting on $200,000 for retainage. Ke I I ey and Mayor Ca I I ahan i nd i cated the C i ty i s short by an amount. Jabbour asked about the corrected construction manager's fee. • Davies noted the Finance Director discovered the fee had been incorrectly billed. Jabbour asked about the architect's reimbursables. Moorse stated they are currently working on that amount. Kelley asked that the contractor provide the Councilmembers a revised budget, eliminating the cold storage building which has been deferred at this time. Boarman noted there were two items deferred in September, which are still deferred, which total $71,000. He said the stucco on the Public Works building has not been completed, and it has been determined it will cost more to complete it in the winter months than the damage sustained by waiting for warmer weather. 5 MINUTES OF A SPECIAL ORONO COUNCIL MEETING • HELD JANUARY 4, 1993 Moorse indicated some of the work had been started and the City will incur some cost for temporary heat. Boarman noted the only other item to be completed would be additional signage. He offered to present the Council with a proposed budget for the additional signage at no additional cost. He added, the contested items (over the reimbursable amount) amount to $10,000 to $20,000. Mayor Callahan directed staff to submit to the Council a list of the items that are being contested, and the estimated signage budget. Hurr asked how much Boarman has received to date for his services. Boarman noted it is approximately $272,000, of which $9,000 will be refunded to the City for incorrect billing of the schematics. Hurr asked about the estimated and actual amounts for reimbursables. Boarman explained that part of the additional costs are due to the • necessity to reprint the plans three times. He noted the original budget included $3,000 for reimbursables and $15,000 for miscellaneous costs, which was transferred to the moving budget. It was moved by Jabbour, seconded by Goetten, to authorize staff to disburse the funds for invoices submitted by Kraus Anderson and reviewed and approved by staff and the architect. Ayes 4, nays 0. Hurr abstained. Jabbour asked the status of the amount owed Pump and Meter for cancellation of the underground tanks. Moorse reported they original requested $10,000, but that has been reduced to $2,000. Jabbour noted Pump and Meter had actual design time which they need to be reimbursed for. Moorse indicated the change orders will be reviewed at the next Council meeting. Mayor Callahan asked that they be redistributed. Jabbour asked that a list of the disputed items be submitted for review at the next meeting. • 6 • MINUTES OF A SPECIAL ORONO COUNCIL MEETING HELD JANUARY 4, 1993 • • ADJOURNMENT Mayor Callahan adjourned the special Orono City Council meeting at 6:05 p.m. Ayes 5, nays 0. 7