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