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ARDEN HILLS REGULAR CITY COUNCIL MEETING MINUTES AUGUST 8, 2005 3 . bid amount of $1,375,247.66. The low bid was approximately $35,000 greater than the Engineer's estimate. He recommended the award of the 2005 Pavement Management Program to Amt Construction Company, Inc. for the total amount of$I,375,247.66. Councilmember Holden asked what was happening with the Xcd Energy parking issues in this area. Mr. Brown replied Xcel Energy had begun some of the work that was being done in conjunction with Qwest. The main parking issue was with East Side Beverage and they had prepared a draft scheme to get parking on their site. He stated East Side Beverage needed to finalize their parking and they were looking at possibly using some of Smith's parking across the street. With respect to Intemational Paper, the project as is, included the removal of the frontage road on the west side ofInternational Paper and they want to shorten Fox Road, which would take some property of Intemational Paper and they were working with them on a purchase of this land. He noted this purchase would be of benefit to the City, but it was possible to also do the project as is, and if they could not reach a mutual agreement, they would proceed with the project as proposed. . Councilmember Grant asked if there was a poor bidding environment at the current time because all of the bids came in over estimate. Mr. Brown replied unfortunately inflation was catching up and generally when they had a lot of bids and they were in a fairly tight pattem, he felt it was a good representation of the market at this time and it was an underestimate on his part by not catching up with the current costs of construction. MOTION: Councilmember Larson moved and Councilmember Grant seconded a motion to award the 2005 Pavement Management Program bid to Amt Construction Company, Inc. in the total amount of $1,375,247.66. The motion carried unanimously (4-0). MOTION: Councilmember Grant moved and Councilmember Larson moved to instruct staff to adjust the CIP budget by an increase of $80,000.00. The motion carried unanimously (4-0). B. Extension of Roval Oaks Purchase Al!reement . Mr. Clark stated on July 18, 2005, the City Council voted three to two to approve the Planned Unit Development and related documents for the Royal Oaks condominium office park located at the old City Hall site at the southwestern quadrant of Hamline A venue and Highway 96. Since the P1auned Unit Development required four votes to affirm, the project was denied. Due to this action staff is seeking direction from the Council on how to proceed with the disposal of the property. He indicated there appeared to be three general options: Do nothing for a selected period of time; renegotiate with Royal Oaks regarding a new purchase agreement; or start a new sales process which could include a request for proposal, marketing by signage and/or contacting selected developer/brokers as appropriate.