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ARDEN HILLS CITY COUNCIL WORK SESSION – OCTOBER 19, 2020 7 <br /> <br />Mayor Grant felt the $10,000 authorization limit for the City Administrator seemed too high but <br />he was OK to go with it, and up to $5,000 for Department Directors. But he would like the <br />unbudgeted amount to stay. <br /> <br />Councilmember Scott would take out the unbudgeted amounts. <br /> <br />Councilmember McClung was fine with the way staff had drafted it, and felt the unbudgeted <br />amounts weren’t necessary. <br /> <br />Councilmember Holmes agreed. <br /> <br />Councilmember Holden was OK either way. <br /> <br />E. Hazelnut Park Warming House and Parking Lot <br /> <br />Public Works Director/City Engineer Blomstrom stated the first item involves the insurance <br />settlement for the warming house at Hazelnut Park that was lost to a structure fire in 2018. The <br />League of Minnesota Cities Insurance Trust has asked if the City wishes to take a cash settlement <br />for the structure loss and closeout the insurance claim. The total estimated payout is $31,461.86 <br />based on the depreciated value of the loss in 2018, as outlined in Attachment B. The City <br />solicited bids for replacement of the warming house structure in early 2019. Pricing ranged from <br />$34,600 to $62,600, but did not include replacement of the footings and concrete slab for the <br />structure. The low quote was provided by a company that is no longer in business. Staff solicited <br />updated quotes this year, including replacement of the footings and concrete slab, and received a <br />price of $60,560 as shown on Attachment C. The temporary portable warming house has been <br />placed at the site during the winter months since the structure loss. The warming house rental cost <br />for the 2019/2020 season was $4,070.00. <br /> <br />There are 3 questions for the Council: <br />1. Does the City Council wish to accept the insurance settlement and close the insurance claim? <br />2. Does the Council wish to continue to have the structure replacement included in the CIP for <br />2022 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? <br />City Administrator Perrault said if the City takes the cash payout the money is in hand but they <br />will lose approximately 20%. <br />Public Works Director/City Engineer Blomstrom noted staff has been in talks with ICWC. <br />The City would be required to have the footings and pad poured, prepare plans for the structure <br />and provide all the materials. There could potentially be architectural expenses but ICWC has <br />indicated they are willing to construct the building in the future. <br />City Administrator Perrault reminded the Council that the building project was pushed out to <br />2022 in the CIP. He said the question tonight is if the Council wants to have a temporary <br />warming house in light of COVID and whether or not they’d like to accept the cash insurance <br />payout for a reduced amount now or get the full payout in 2022 when the project moves forward.