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Page 1 of 2 <br /> <br /> <br />AGENDA ITEM – 1E <br /> <br />MEMORANDUM <br /> <br />DATE: October 19, 2020 <br /> <br />TO: Honorable Mayor and City Councilmembers <br /> Dave Perrault, City Administrator <br /> <br />FROM: Todd Blomstrom, Public Works Director/City Engineer <br /> <br />SUBJECT: Hazelnut Park Warming House and Parking Lot <br /> <br />Budgeted Amount: Actual Amount: Funding Sources: <br />$71,780 – warming house <br />$185,000 – parking lot <br />(per draft 2021-2025 CIP) <br />TBD PIR Fund <br /> <br />Council Should Consider <br />City Council direction is requested regarding the replacement and rental of the warming house <br />and improvements for the parking lot at Hazelnut Park. <br /> <br />Background <br />1. WARMING HOUSE REPLCEMENT <br />The warming house at Hazelnut Park was lost to a structure fire in 2018. The League of <br />Minnesota Cities Insurance Trust has asked if the City wishes to take a cash settlement for the <br />structure loss and closeout the insurance claim. The total estimated payout is $31,461.86 based <br />on the depreciated value of the loss in 2018, as outlined in Attachment B. <br />The City solicited bids for replacement of the warming house structure in early 2019. Pricing <br />ranged from $34,600 to $62,600, but did not include replacement of the footings and concrete <br />slab for the structure. The low quote was provided by a company that is no longer in business. <br />Staff solicited updated quotes this year, including replacement of the footings and concrete slab, <br />and received a price of $60,560 as shown on Attachment C. <br />A temporary potable warming house has been placed at the site during the winter months since <br />the structure loss. The warming house rental cost for the 2019/2020 season was $4,070.00. <br />Council Direction: <br />1. Does the City Council wish to accept the insurance settlement and close the insurance claim? <br />2. Does the Council continue to prefer including the structure replacement in the CIP for 2022 <br />as previously directed? <br />3. Should the portable warming house be placed this winter for the rink attendants, given that <br />warming houses will not be open to the public due to COVID-19?