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HomeMy WebLinkAboutCC 08-15-2000 . . . MINUTES CITY OF ARDEN HILLS, MINNESOTA SPECIAL CITY COUNCIL MEETING AUGUST 15, 2000 8:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDERlROLL CALL Pursuant to due call and notice thereof: Mayor Dennis Probst called to order a Special Meeting of the Arden Hills City Council at 8:02 p,m, Present: Mayor Probst; Councilmembers Beverly Aplikowski, David Grant, Gregg Larson and Lois Rem, Absent: None, Also present were City Administrator, Joe Lynch; Parks and Recreation Director, Tom Moore; Recreation Program Supervisor, Michelle Olson; City Attorney, Jerry Filla; and Recording Secretary, Sheila Stowell. PURPOSE OF MEETING The purpose of the meeting was to consider approval of the Right of Early Entry to the City Hall site on the Twin Cities Army Ammunition Plant (TCAAP); and award of a partial or whole construction bid to Rochon Construetion for eonstruction of the new City Hall. ADOPT AGENDA MOTION: Councilmember Grant moved and Councilmember Aplikowski seconded the motion to adopt the agenda as presented, The motion carried unanimously (5-0), APPROVAL OF RIGHT OF EARLY ENTRY Mayor Probst introduced the City Hall construction project, and briefly reviewed the lengthy process involved in obtaining the land conveyance and arriving at this phase of the project, Mayor Probst stated that most recent conversations with the Department of Army (DoA) indicated that the City was due to receive Fee Title to the City Hall site by September 29,2000, Mayor Probst recognized this milestone, making the City of Ardcn Hills one of the firSt non- military entities to be granted ownership of any property on the TCAAP site, with the exception of several minor rights-of-way having been granted, Mayor Probst invited Councilmembers to comment at this time, Councilmember Aplikowski referred to the proposed "Right of Entry" document, specifically addressing the wording, "", when and if"," in Item 2, "Consideration," on page three (3) of the document. . ARDEN HILLS CITY COUNCIL - August 15,2000 2 City Attorney Filla addressed the document languagc, stating that is was standard language for federal government contracts, and as legislation had already determined the suitability of conveyance, Mr. Filla saw no reason for concern, Councilmember Rem addressed concerns regarding the outstanding public comment period for the Finding of Suitability for Transfer (FOST) remaining open until September 5, 2000, and the COlillcil taking any action prior to the end of the comment period, City Attorney Filla stated that the FOST simply documented a small portion of the agreement; and there was minimal chance of any controversy or even public comment on the document, as the transfer was not a controversial issue. Councilmember Rem further expressed concerns regarding the limited time frame - six (6) months - of the Right of Entry Agreement, while waiting for the Fee Title paperwork to be processed, as it related to start of construction, . Mayor Probst addressed Councilmember Rem's concerns, stating that Congress had acted and the land conveyance was eminent, with only the federal bureaucracy and paperwork process with thc DoA remaining outstanding, Mayor Probst reiterated his confidence that this will happen, Mayor Probst expressed his concern that continued delays were escalating costs to taxpayers, with the City having to bid the project twice, as we were unaware of the required paperwork process. Councilmembcr Grant concurred with Councilmember Rem's concerns regarding the Right of Entry Agreement's six (6) month term, and continued delays by the DoA for the land conveyance. Councilmember Grant referenced several dates addressed in the July 21, 2000 letter from Rochon Corporation to the City of Arden Hills, City Administrator Lynch stated that the dates in the letter were based on conversations with the Army Corps of Engincers, and since those conversations the dates had further changed, Mr. Lynch deferred to City Attorney Filla to address several minor legal concerns, but stated that staff had verified that awarding the contract conditionally, with a limited Notice to Proceed, in accordance with limitations of the DoA's Right of Entry document, would not commit the City to ordering of the steel for the project, a major financial undertaking, and the City wonld be committing to the work done to-date, Peter Vesterholt, Architect with Architectural Alliance, stated that the letter from Rochon Corporation had been reviewed and dralled at the recommendation of Rochon Corporation's attorney, and concurrence with the City's Architect. Mr. Robert Dew, Project Manager with Rochon, clarified his intentions in the July 2151 letter, stating that at the time of writing, thc dates specified were used as a "hopeful milestone," and were used, as directed by their company's legal counsel, to protect their firm from any fallout . should the City invoke suspension of the contract, and to protect from ramifications with their . ARDEN HILLS CITY COUNCIL - August 15, 2000 3 subcontractors, Mr. Dew stated that, should the City award the full contract, with conditions for partial work, - therc was limited liability to Rochon, or their subcontractors, as all contracts with subcontractors would contain the same verbiage in a flow-through clause, Mr. Dew assured the City that, according to bid procedure and the way the contract documents are written, the City still maintained control in the amount of work the contractor would be authorized to proceed with. Mayor Probst asked for City Attorney Filla's opinion on public bidding laws and the City's responsibility regarding awarding of the full contract, and the inability to modify the contract without a rebid process, . City Attorney Filla clarified that the City could not issue a partial contract, Mr. Filla reviewed several of the contract's terms; specifically the ramifications ifthe City were not able to acquire title to the property after part of contract is partially started and that the contract stated that either party can terminate contract for cause, Mr. Filla stated that the contract speaks in terms of damages to parties; with arbitration binding after contract issue; and that the City would only be liable for the work done to-date, and would not need to proceed further. Mr. Filla stated that there was limited liability to the City, and ifthc contract were terminated, it would need to be detcrnlined what loss/profit there would be, and the contractor would need to be reimbursed for costs to-date, Mr. Filla referenced the July 21, 2000 letter from Rochon Corporation, addressing their company's exposure and the City's risk to approximately $330,000, Mr. Filla stated that the City's options were either to award the contract before the contract award expiration, or rebid the project oncc Fee Title to tlle property is obtained. Councilmember Larson concurred with Mr. Filla's comments, stating the small risk to the City was not a great concern, as there was minimal risk that the property conveyance would not happen, Councilmember Larson emphasized that the legislation had officially authorized transfer of the property, Councilmember Larson stated that he fully supported award of the contract, that it was time for the City to take the step, that it was a great design, a symbol of our City and its government, and a facility that the citizens and staff could be proud of. Mayor Probst again addressed the minimal risk to the City, stating that the City's environmental consultant had held up the process due to discussions with the Minnesota Pollution Control Agency (MPCA); and that the DoA was making every attempt to process the paperwork in a timely way, Councilmember Aplikowski stated that she continued to have reservations without the actual Fee Title, but concurred that, at this point, there was minimal risk to the City and she was willing to support the project going forward, Councilmember Aplikowski did express concerns about the additional costs projected due to winter construction, Councilmember Grant stated that he concurred Witll Councilmember Rem's comments, and continued to have concerns about the language in tlle Right of Entry document, and questioned . . . . ARDEN HILLS CITY COUNCIL - August 15, 2000 4 whether this was standard language for the DoA, Councilmember Grant was concerned that the document fully protected the DoA's rights, but the City had little recourse, City Attorney Filla stated that the document appeared to be standard for a DoA document, with the first paragraph addressing their right to essentially rcvoke the document at any time, Mr. Filla stated that he wouldn't expect any other document from a federal agency, as they usually maintained all authority, Mr. Filla reminded Councilmembers that the DoA had also been working on the land conveyance for ten (10) years, and that the City was dealing with a branch of the D,S, Government, and should havc every reasonable expectation that the land conveyance will occur. Mr. Filla stated that, ifthc Council was looking for a document that guaranteed no financial risk to the City, the DoA would not cooperate with such verbiage, Mr. Filla stated that, the only reasonable event that they would not convey, would be for an environmental issue, and the property has been reviewed so thoroughly, there should be no reason to suspect any environmental issue, Councilmember Rem stated that the City's environmental consultant had found environmental issues that the DoA had missed beforc, and while the City had received the legislation, we still had no firm date, and since the City had been pursuing the property for ten (10) years already, she was not confident of that process, Councilmember Rem expressed concerns about what the cost had been to the City in bidding the project twice, prior to possession of Fee Title, Mayor Probst concurred with the comments made by Councilmember Larson, and City Attorney Fills regarding the good faith action by the DoA in providing an early Right-of-Entry document to accommodate preliminary construction work, and that the small parcel for City Hall had been held to a higher standard of environmental concern than any other portion of TCAAP, Mayor Probst encouraged Councilmembers to move the project forward at this time, Councilmember Grant expressed further concerns that the DoA had all the legal authority in the Right of Entry document, with the City being required to take the legal document at face value and take a "leap of faith" hoping that all would work out. Councilmember Larson acknowledged Councilmember Rem's comments regarding actions of previous City Council's in decisions regarding moving forward with plans for the new City Hall following the Council's endorscment of that decision with other actions, MOTION: Councilmember Larson moved, and Councilmember Aplikowski seconded a motion to authorize Mayor Probst to enter into a Right-of-Entry Agreement as prepared by the Department of Army (DoA) Material Command, Document No, DACA45-3-00-6088, The motion carried (4-1, Councilmember Rem opposed), A WARD OF PARTIAL OR WHOLE CONSTRUCTION BID City Attorney Filla initiated discussion on the contract, and its potential award as addressed in the July 21, 2000 letter from Rochon Corporation and subsequent July 24, 2000 letter from . . . ARDEN HILLS CITY COUNCIL - August 15,2000 5 Architectural Alliance regarding conditions for a Notice to Proceed and stipulating the work to be authorized. Architect, Peter Vestcrholt, clarified the referenced turn lane condition as being one in thc same with the median cut on Highway 96. COlmcilmember Grant requested Mr. Dew to explain the items listed as Rochon's cost for the project at the start of the project, provided the City gives a Notice to Proceed, Mr. Dew explained that this is preconstruction mobilization costs that typically amount to 70% of their total cost and include site setup; on-site office for their construction superintendent; and temporary utilities, Council member Aplikowski asked Mr. Dew to clarify what happens, from Rochon's perspective, ifby September 29, 2000 the City still does not have Fee Title to the property. Mr. Dew explained that from his perspective, hc's in much the same situation as the City, and that lack of the Fee Title documcnt is a step offaith for their company as well, Mr. Dew emphasized the cooperative work relationship required by the City and Rochon in getting the project completed, Mr. Dew stated that, once the project is begun the City and Rochon would need to decide the (easibility of winter construction (i,e" concrete pour), or whethcr the project needcd to be shut down (or a time and resumed in the spring. Mr. Dew further stated that his company had a proven ability to work out an equitable solution tor all parties, and that he was hopeful that all parties could agree on a workable timeframe, Mr. Dew addressed Councilmember Aplikowski's concerns regarding winter construction costs, stating that thcy were already built into the contract. City Attorney Filla stated that the term of the standard construction agreement "vas for one (1) year; and that when there were delays, the time for completion is sometimes extended, with some cost adjustments, as agreed upon by both parties. Mr. Filla further stated that the contract documents address all of these issues, Councilmember Rem stated that her concerns were not with the contractor, but with the Do A, and that as a Councilmember, she needed to be concerned about where the City's money was spent. Mr. Dew stated that he had previously worked for the Department of Army, and as a general rule, they operated in good faith. He stated that he was confident that, if the City had gotten this far in the land conveyance process, the DoA would fulfill their obligations and take the next step, Mr. Dew expressed his previous experience with the bureaucratic process, and stated the City's experience is not lUlUsual, or lengthier than the usual process, . . . ARDEN HILLS CITY COUNCIL - August t 5, 2000 6 MOTION: Councilmember Aplikowski moved and Councilmember Larson seconded a motion to award the contract for construction of a new City Hall facility to Rochon Corporation; authorize Mayor Probst to enter into an agreement identified as a "Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum;" and authorize issuance of a partial Notice to Proceed to Rochon Corporation in an amOlUlt not to exceed $329,150,00, for the following work: I. Earthwork ($54, I 00,00); 2, Outside utilities ($174,400.00); 3, Turn lane work described as "Alternate No, B," Highway 96 median cut ($16,000,00); 4, Shop Drawings for long lead items, inclusive of structural steel, joist, deck, precast concrete, stone masonry, concrete reinforcement, electrical switchgear, elevator, and air handling equipment ($18,000,00); and 5, Rochon's Costs, inclusive of mobilization and set up ($65,650,00), The motion carried (4-1, Councilmember Rem opposed), Mayor Probst announced that this concluded the "Unfinished and New Business" to be conducted at the meeting, Mr, Vesterholt requested that the contract be executed by Mayor Probst immediately to allow preparation of the formal Notice to Proceed to the contractor. GROUNDBREAKING CEREMONY. PRELIMINARY DISCUSSION On a related note, conclusive of the two actions taken by the City Council. Mayor Probst inquired as to the Council's willingness to schedule a public groundbreaking on the new City Hall site, after Rochon Corporation has mobilized, City Councilmember concurred that staff be directed to begin preparations for a public groundbreaking ceremony in early September, with invitations to include dignitaries (i,e" Congressman Vento; Senator Grams; former Mayors and Councilmembers and others as observed,) MOTION: Councilmember Grant moved and Councilmember Aplikowski seconded a otion . adjourn the Special Meeting ofthe Arden Hills City Council at 9:03 motion carried unanimously (5-0), ~