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FAIRMONT-- The Fairmont City Council on Monday considered using budgeted funds to pay for a new refrigeration system for the Martin County Arena.
Public Works Director, Matthew York, explained that the city has a contract with Kraus-Anderson to provide construction management services. As part of the project, Kraus-Anderson put out a bid for the project.
The final cost of the project came in to be roughly $1.5 million, which York noted was about $355,000 under budget. The money the city budgeted for the refrigeration system comes out of the $14 million raised in local option sales tax.
However, York shared that the $1.5 million does not cover the entire project as carpentry work hasn't been bid on yet. He said Kraus-Anderson will work with some of the subcontractors to get pricing on that work.
"Some of the costs associated with this is the time and material, which is $88,000... there's also an $80,000 construction contingency and then there's a $10,000 permit...," York said.
Council Member Jay Maynard asked whether the contract for the ice work is part of the contract that was negotiated with Kraus-Anderson for the proposed community center.
York said there was a contract with Kraus-Anderson for pre-construction services up through and including bidding, which has been in play up until now. He said there is also a contract to continue with construction management services.
"Kraus-Anderson will be the general contractor for the project, but there are other contracts that roll together with this...," York said.
Maynard said that he was asking because the contract formerly approved by the city council was recommended by the former city administrator, over the objections of the city's owner's representative at that time. He speculated that that issue was a major reason why the city's owner's representative withdrew from working with the city on the proposed community center.
"Are we going ahead with essentially the same contract that Tegra (former city owner's representative) said they would never recommend?" Maynard asked.
York, who has been with the city since June, said they would be going with a contract he felt comfortable with but that he couldn't speak to past conversations that took place.
"I believe that we are able to work with Kraus-Anderson to complete this project," York said.
Council Member Michele Miller said that she had concerns with the Fairmont Area Community Center Foundation wanting to end the contract with Kraus-Anderson.
However, Miller said after hearing York's explanation, she strongly felt like she wanted to move forward with the contract on the table because she was assured that they are two separate projects.
"Except for that I am concerned that all these changes that the Fairmont Area Community Center Foundation wants to make are costing the city money that isn't budgeted...," Miller said.
Council Member Britney Kawecki said she felt that it was in the best interest of the council and the citizens to go out for a new Request for Proposal (RFP).
Miller asked York what it would mean for the current ice compressor system if they were to start over on the project by going out for a new RFP. York detailed a lengthy timeline that spanned about five months before another RFP could be awarded. He said it would be another five months to get materials.
Council member Randy Lubenow said he wasn't so concerned with Kraus-Anderson and the bid, as he was with what to tell constituents who ask why the city is giving $1.5 million to the hockey association. He questioned whether the council was opening itself up to other non-profits to come ask for money.
He provided some statistics from the hockey association, sharing that there are about 175 youth in the association and about 45 who play high school hockey. He shared that there are about 300 people who attend rock on ice, which happens about seven times a year and another 50 people who attend open skate.
"When you look at it, we're not just supporting the hockey association, we're really supporting the use of indoor ice throughout the county," Lubenow said.
He again asked how the council can respond to the constituents who ask how the council can justify giving money to the hockey association while there are entities in the city that can benefit from money.
Maynard said he has heard that question more than once, but he felt like the council should remember that the facility the refrigeration system is going into is partly owned by the city and needs to be replaced.
Mayor Lee Baarts called for a vote on whether the council would approve a guaranteed maximum price with Kraus-Anderson in an amount not to exceed $1,577,271.
In a roll call vote, the motion passed 4-1 with Kawecki voting no.
Also during Monday's meeting, the council heard that of the three city administrator candidates it said it would like to meet for in-person interviews, two of them are interviewing for other full-time positions this week and that the third candidate is waiting to hear how the other two proceed.
While the three candidates were anticipated to be in Fairmont Sept. 5 and 6, Baarts said on Monday that now the expected date would be sometime the week of Sept. 11.
"Right now, we do have three, but we could be out both of them because they're looking at different jobs, but not the same job," Baarts said.
Kawecki asked whether they're planning on all three candidates to be in Fairmont the week of Sept. 11 and Baarts said that was the hope if candidates one and two didn't take other jobs beforehand.
In other news:
-- The council approved a motion to enter into a contract with Gag Sheet Metal of New Ulm in the amount of $106,450 for the Sylvania Park Bandshell roof replacement. York said that the phase one project came in under budget and should be completed by Nov. 3.