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FAIRMONT-- A lengthy discussion regarding a contract amendment with construction company Kraus-Anderson was held between members of the Fairmont City Council and city staff on Monday evening.
Matthew York, the city's public works director, explained that back on March 17, 2022, the city contracted with Kraus-Anderson as construction manager at risk for work on the community center, ice arena and refrigeration project at the Martin County Arena.
"Due to the city passing along construction operations of the community center to the Foundation, the city needs to modify the current contract with Kraus-Anderson," York said.
He stressed that it's not a new contract, but an amendment to an existing contract and that there were no penalties for removing the community center project from the contract, but that the city just needs to pay out the cost for services provided to Kraus-Anderson, which was $24,500.
"Staff supports the amendment and continuing to utilize Kraus-Anderson for the ice arena planning and refrigeration replacement projects," York said.
Council Member Jay Maynard said, "I think that it bears repeating, this change is not costing the city any money at all, despite what has been said by some of the rather more vocal opponents of the community center project in the community."
York confirmed that that was true.
Council Member Britney Kawecki asked what kind of problems could arise with the current contract. York explained some issues, including the fact that the Foundation has now found its own construction manager, RJM, for the community center project.
Kawecki said she has an issue both with signing a contract for a project at a conceptual phase and for a project without required funds. However she said that after the November election, when the question of an additional half cent sales tax (intended to build a new ice arena) will be on the ballot, she would be in favor of discussing a contract.
Councilor Kawecki questioned why Taft, the city's bond counsel, which has been reviewing all other contracts for the community center and ice arena, has not reviewed the amended contract.
"Why are we binding ourselves to a contract when we have no idea if it will come to fruition," Kawecki asked.
York pointed out that the contract that was signed was for concept phase, schematic design and design development. He said the amendment is to continue the current contract that was already approved by the city council.
Kawecki again asked why they're moving forward on spending money on a design for a project when it's unknown if it will even happen.
"When the council signed the original contracts... for the ice arena and community center... all of this moved forward. We, as staff, have not been told by city council that it's time to slam on the brakes," York said.
City Finance Director Paul Hoye jumped in and said that the city has requested some information from Taft regarding the Kraus-Anderson contract. He said that Taft said if another firm were to do the next phase of the community center project, it would be prudent to amend the current contract.
York said the task at hand was giving Kraus-Anderson the OK to go forward with the contract it had already been approved to do with the city.
"This is an amendment to a contract we already have signed. This is not an approval of any additional work. This is simply stopping some work that we had previously contracted for," Maynard said.
Several questions were asked by council members about what company would be involved with the ice arena project if it comes to be. Interim City Administrator, Jeff O'Neil said that that's what the contract currently says.
Kawecki asked about the possibility of breaking the current contract for the three projects into three separate contracts.
"We've already incurred costs on this existing contract. I don't know how you can take an existing contract that we're already in the process of paying, and working being done, and say to the contractor, 'well we want to cancel this contract and enter into two separate contracts.' I think we're a little ways down the road of work being done," said Hoye.
It was suggested that the city's attorney chime in. Cara Brown with Flaherty and Hood said that her firm would need more time to review the contract before it could speak on it.
"To repeat what Matt (York) said, staff moved forward based on the original contract presuming that that was what council decided and wanted to pursue in the future. When it came that the Foundation would manage the project, it left the contract in limbo and with that, how can we adjust the existing contract because they're still intricately related to each other-- the community center and the ice arena," said O'Neil.
Maynard made a motion to approve the amendment to the Kraus-Anderson construction manager at-risk contract. Council Member Michele Miller seconded it. The motion failed 3-2.
Kawecki made a new motion to have Taft provide legal options moving forward.
Miller pointed out that the action would incur more attorney costs that the council did not budget for.
Kawecki's motion received no second and thus failed.
York said, "What has happened tonight, is we have stalled the process. We can fix it... we need to come up with a way that we can continue this project. As we move forward with the finalization of the YMCA/community center portion of the project, we need to have some of this stuff done and Kraus-Anderson or someone part of it so when it comes down to it, we know what the ice arena side is going to be."
Lubenow made a motion to re-vote on the original motion. O'Neil said the council would need to vote on whether it wanted to reconsider the original motion.
The motion passed 3-2 with Kawecki and Council Member Wayne Hasek voting no.
Lubenow made a motion to approve the Kraus-Anderson construction manager at-risk contract. The motion passed 3-2 with Kawecki and Hasek again voting no.
In other action, the council:
-- Approved continuing its contract with Bolton and Menk for providing interim engineering services.
-- Approved the 2024 improvement program engineering report.
-- Approved the airport pavement maintenance project grant request project.
-- Approved the appointment of long-time city employee Betsy Steuber to the position of city clerk upon the retirement of current city clerk Patty Monsen, who plans to retire in April of this year.
-- Approved an update to the demolition program guidelines.
-- Approved the earned sick and safe time policy.
The council also approved the following official designations:
-- Council Member Michele Miller as mayor pro-team.
-- City Clerk Patty Monsen as council secretary.
-- Bank Midwest as the depository of city funds.
-- Sentinel as the official newspaper.