Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Monday, July 15, 1996 - 7:00 p.m.

Members present: Beach, Polovitz. (Others present: John O'Leary, exec. director, Urban Development, Dick Olson, Grand Forks Development Foundation, and Mike Kuntz, Schoen & Assoc.

1. Consideration of bids for Cirrus building.
John O'Leary reported they had opened bids for Cirrus building and received good bids; only one problem, low bidder Baukol Construction, made error on bids and would like to have bid withdrawn, bids opened at July 9 at 3:00 and Baukol called about 4:00 p.m.; Community Contractors next lowest bidder. He reported he checked with Mr. Vein and Mr. Swanson and both indicated some precedence in not holding them to the bid, and probably right thing to do; believes they made an honest error, alternative is to hold them to the bid, but in discussing everyone agrees the thing to do is to allow them to withdraw.

Summary of bids received was presented, project bid in three packages: mechanical, electrical and general contracts.

Members reviewed bid summary, and it was noted there were couple things to be added on: A/E fees, contingencies, cost of bond. It was reported that Cirrus has not had opportunity to look at in detail; and City will ask them to execute lease agreement before start construction. Mr. O'Leary stated they prefer to make sure that this is acceptable to Cirrus and would run all numbers past city auditor and city attorney, working with them in both fees and interim construction fees. It was noted that Growth Fund money to guarantee bond payments, 20 year bond issue, March 30, 1997, est. completion date, and will pass all costs on to Cirrus.

Mr. Olson stated that Cirrus saw Community bid and satisfied, and recommended to allow Baukol to withdraw their bid and accept next lowest bid.

Polovitz moved that we accept withdrawal of Baukol Builder's bid based on their admitted error; Beach seconded the motion. Motion carried.

Polovitz moved that we accept the bid of Community Builders for general construction in the amount of $2,001,800.00, the bid of D & D Heating & Sheet Metal for mechanical construction in the amount of $530,309, and the bid of Bergstrom Electric for electrical contract in the amount of $273,490.00, pending review of appropriate city officials and acceptance by the lessee and execution of the lease by Cirrus Design Corp. Motion carried.

Meeting adjourned.

Alice Fontaine
City Clerk
Dated: 8/12/96