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HomeMy WebLinkAboutOctober 29, 2001OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL SPECIAL MEETING OCTOBER 29, 2001 The following are the minutes of a special meeting of the City Council held at 7:00 p.m. on Monday, October 29, 2001 in Conference Room 1, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. CALL TO ORDER Called to order at 7:01 p.m. ROLL CALL Present: Mayor Peterson, Councilmember Szurek, Councilmember Wyckoff, Councilmember Williams, and Councilmember Nawrocki, PLEDGE OF ALLEGIANCE DELETIONS TO MEETING AGENDA -none CONSENT AGENDA City Hall Roof Repair Motion by Szurek, second by Wyckoff to award the bid to Omni Roofing, based upon their low, qualified, responsible bid in the amount of $128, 590, with funds to be appropriated from the unexpended fund balance of 2001, with $20,090 to be contingent upon review and determination of metal replacement, and to authorize the Mayor and City Manager to enter into an agreement for the same. Walt Fehst, City Manager, indicated this item is to ratify action taken at the last special City Council meeting. Upon vote: All ayes. Motion carried. ITEMS FOR CONSIDERATION Other Ordinances and Resolutions 1) First Reading of Ordinance #1443, being an Ordinance amending Ordinance No. 853, City Code of 1977 authorization to convey certain real estate located at 4656 Monroe Street Peterson stated this Ordinance continues the process of the property sale at 4656 Monroe Street. Fehst gave the background on removing County CDBG fund restrictions from this property. The reason for lifting the restrictions was to allow for an upscale home to be built, rather than a starter home. Bid requirements asked specific questions of the bidders, and the base bid requirement was $33,000. Fehst read the intended scope of the bid. Bids were evaluated on the purchase price and the value of the proposed home. Bidders were told that the highest bid would not necessarily be the recommendation. Bidders were also told at the bid opening that bids would be considered at 6:30 p.m. at a City Council work session, and action could be taken at the Council meeting to follow. The bid was awarded to Foss/Nedegaard Construction. The final estimated value of the home was $225,000 and the property bid was $37,500. RAM Construction bid $53,000 on the property and value of their proposed home was $180,000 with a lesser square footage than the Nedegaard property. Fehst stated that the assessed value would have to be assured in the purchase agreement. There must be two readings of this ordinance, with the second reading scheduled for Monday, November 5th. Fehst stated that RAM Construction is represented at this meeting. City Council Special Meeting Minutes October 29, 2001 Page 2 of 4 Peterson asked if Council members had questions. Williams stated that his brother bid on this property and did not include the value after all work was completed. Williams favored the Nedegaard bid because of the total value of the property. Williams felt this was a very political issue. Nawrocki indicated the procedure was subjective, not political. Mel Collova, Building Official, stated that with his estimates, the Foss/Nedegaard bid would be valued at 20% more than any other bid on the list. He stated this bid was more valuable to the city, long term. Peterson asked the gentleman from RAM construction for his comments. Naresh RAM indicated the square footage of his plan should have read 28,000 square feet and that the third car garage was to be added at the time of building also. He stated he did not have enough time to have an architect to do an exact plan. RAM indicated that he was told it would take a week or so for Council to make a decision. Fehst indicated that bidders were informed at the bid opening that there was a work session that evening and that a decision could be made at the Council meeting following the work session. Ani RAM stated they were not invited to the Council meeting last Monday. RAM stated that he really wanted the land, so he bid a very high price. He stated that the final value of their home would be $238,000. Peterson referred to the bid questions. Ram indicated the home value was $180,000 and the property was $53,000 and should have been added together for a total value. Peterson referred to the attorney for comment. Jim Hoeft, City Attorney, stated that the City has no affirmative obligation to indicate to an individual the holding of a meeting, as all meetings are all open to the public. He stated that this was really a request for proposal process, not a bid process. This allowed Council great latitude as to what they want on the property. The higher bid for the lot was not what determined the choice. Also, the timing of the project was a consideration. Hoeft stated that the process, consideration and decision were not contrary to any ordinance or statute of the State. Nawrocki indicated that the documents stated it was a bid proposal. Hoeft stated this is more familiarly called a Request for Proposal. Nawrocki debated the issue. RAM stating the wording of the bid did not talk about the style of the home. He referred to the neighbor who purchased a lot from the City, and so he proposed a similar home that would fit in the neighborhood. He again stated that the square footage was listed incorrectly. Collova stated that staff used the information submitted with the bid. Hoeft indicated that under item #2 Council was given the option to consider other items in the bid. Staff was available at all times to answer questions. Williams stated there would be more lots available for sale in the future. Ani RAM stated they have lived in Columbia Heights for six years and researched the schools and wanted to live in this area, and felt Council should have waited one more day to research the information. Fehst reiterated information given at the bid opening. Collova stated that any change would have to allow everyone to re-bid. He stated that the county would not value this lot at what RAM offered. Ani RAM stated that apparently everyone misunderstood the information and this was not fair. RAM stated he would ask his lawyer if this was justice. RAM disputed that the questions asked for the value of the home, not the property. Williams stated that in the USA the final value of the home includes the lot. Tina Foss, recipient of the bid, stated that it was everyone's responsibility to be clear about the requirements. Peterson referred to the RAM plan indicating a two stall garage with a third stall added later. RAM stated that if Council had questions, the process should have waited a day and called for the answers. City Council Special Meeting Minutes October 29, 2001 Page 3 of 4 RAM asked if the party that the bid had been awarded to had given a bond or personal check. Tim Johnson, City Planner, stated it was a bid bond or certified check. Fehst stated bid bonds and plans were to be kept for 30 days. Johnson stated RAM picked up his plans and bond on Friday. Williams asked that the sale process not be handled this way again. Fehst stated it was proper, but could include consideration of the price variance in five or ten years. Szurek commented regarding RAM not having enough time to have plans drawn; the other bidders had completed plans. Johnson stated there was approximately a 60 day notification. Collova stated that the plan from RAM was backwards. Nawrocki indicated the plan was not part of the specifications. He stated that when bidding, it is against specifications; and if a proposal, it is for plans. Fehst stated that this would be noted, and next time not called a bid. Nawrocki indicated he wants a "Findings of Fact" in writing, from the attorney, indicating that this is a legally acceptable process. Peterson questioned when and how the lot would be paid for. Fehst stated there would be a sales agreement. Nawrocki stated to be sure that past taxes were taken care of, that the sales documents indicated the bid was from Nedegaard, and whom the homeowners would be. Hoeft stated that the sales agreement has not yet been drafted, and would lock the owner into an agreement for the size of house, and minimum home value for assessment. Peterson asked if the sales agreement would be with the Foss's or Nedegaard? Hoeft stated it would be best if it would be with the Foss' s. Motion by Szurek, second by Williams, to waive the reading of Ordinance No. 1443, there being ample copies available to the public. Upon vote: All ayes. Motion carried. Motion by Szurek, second by Williams, to estabfish November 5, 2001, at approximately 7:00p. m. as the second reading of Ordinance ~1443, being an ordinance pertaining to the sale of City-owned property at 4656 Monroe Street NE. Upon vote: All ayes. Motion carried. B) Bid Considerations 1) Replacement of HVAC units at City Hall Williams asked if the HVAC units need replacing. Collova stated that the units are twenty years old and it would not be wise to put the old ones back on the roof after the new roof is in place. There will be about a 30 percent energy savings with new units. Szurek asked if bids were on a Honeywell product or any product they choose. Collova stated the product would be Carrier and there are four subtypes of this product. He contacted the major licensed City contractors. Honeywell does not do installation and would have subcontracted the work and charged $55,000. Five bids were received. Suburban had given a rough bid at $28,000 and were not the low bid. Collova stated that Thermex had the low bid, and are well known and reputable. These units are supplemental heat to the boilers. Honeywell will decrease the cost of maintenance by $4,500 the first year and $2,000 each year of the six year contract, because of the new units. Collova stated there would also be a $750 rebate from NSP. The bid is for Carrier units, with a one year warranty on labor and five year warranty on parts. Collova felt the pay back estimate would be four years, including the reduction in maintenance costs. Possible additional costs would be moving pipes for the roofers. Peterson questioned the wiring options. Collova stated that if the wiring were all replaced, it would be $700. Duct work may also have to be moved. Wyckoff asked about the unexpended fund balance. Fehst stated that any purchases in the budget for the remainder of this year might not be allowed. Wyckoff stated this was not fair to those who purchased items at the beginning of the year. Nawrocki stated the mistake was not allowing for roof repairs in this City Council Special Meeting Minutes October 29, 2001 Page 4 of 4 year's budget. Fehst stated that we were trying to get by, and staff had the roof looked at many times over the last five years. Collova stated the police department roof was repaired, on average, six times a year. Nawrocki stated his researched showed this price is probably about right. Fehst stated Honeywell admitted they could not compete with new equipment costs, and that their area of expertise is maintenance. Nawrocki asked that other companies be looked at for the maintenance contract. Fehst stated that staff is discussing this. Motion by Williams, second by Szurek, to award replacement of HVgC unit; at City Hall to Thermex Corporation, based upon their qualified, responsible bid in the amount of $24, 700. 00, with funds to be appropriated from the unexpended fund balance of 2001, and to authorize the Mayor and City Manager to enter into an agreement for the same. Nawrocki stated he wants to see periodic reports on what budget spending is not approved and how the necessary cuts are being met. Upon vote: All ayes. Motion carried. MISCELLANEOUS Collova explained a request from the resident at 4522 6th Street to put up a carport. He issued this person a permit until May 1, 2002. The resident wanted to leave up temporary structure for a year and a half, so Collova revoked the permit. Another carport on 52nd is made from 2 x 2 studs. He asked if Council would back him requiring a permanent structure. Collova stated he required a conditional use permit for a carport request in Hilltop. Collova stated a temporary structure could be limited to 30 or 60 days. Nawrocki stated he looked at the property and described the situation. Peterson asked if it is within the square footage allowed on the lot. Nawrocki stated it is aesthetically not very pleasing. Peterson questioned the City's liability if the structure collapsed. Fehst questioned carports being allowed. Collova stated they are not addressed in the code. Fehst thanked Mel Collova for his work on the HVAC bids. ADJOURNMENT Mayor Peterson adjourned the meeting at 8:30 p.m. Patricia Muscovitz, Deputy City Clerk