05-05-1980 CC MIN - Laserfiche WebLink

Home Browse Search

May 5~ 1980 Page 3 ~ were flooded, who would pay necessary costs, was the engineer's fee a per- centage of the project, what was to be received from the HUD grant, and what from the DNR. The City Administrator reviewed the available funding and expenditures for the project as follows: $913,000 was ~urrent1y planned for and available to fund the repairs with $225,000 to be received from HUD and the balance of $688,000 to be divided between the DNR and the City. The City's share was planned to be composed of $115,000 from the Elk River Utilities, $40,000 from the lake owners, and the balance of $189,000 to be assessed. The City Administrator reviewed the current actual cost of the contract as follows: the base bid $876,630, the gate contract $66,000, engineering $121,000, for a total of $1,063,630, of. which approximately $50,000 could be cut in construction change orders leaving the total project at approximately $1,013,000. The City Administrator indicated with the new projected costs of the project to be $1.013,000 that would leave a balance of $289,000 to be assessed citywide, subject to Council review and alteration at the assessment hearing. Some discussion was carried on regarding the cost of tearing down the dam and doing nothing about the rehabilitation and who would pay for the costs of eliminating the dam. Mr. Schneider indicated the cost of tearing down the project would now be approximately $357,000. Mr. Jack Hoyn asked if it was possible to go back to the state and renegotiate the amount of the grant. Mayor Madsen indicated the grant was funded by a specific bill for the Orono Dam and four others, appropriated by the legis- lature. Discussion was carried on between the lake owners as to how the $40,000 would be assessed to each property owner, and how much benefit the property owners would receive from the rehabilitation of the dam. Further discussion was carried on regarding the cost assessed over the entire city, how the funds would be raised through a bond sale, and when the project would start and when it would be completed. Mayor Madsen indicated he felt the project needed to be done and soon, as costs were continually increasing, it would be a tight schedule to complete before winter,- and further indicated it would cost over $300,000 to dispose of the dam. COUNCILMAN TOTH MOVED APPROVAL OF RESOLUTION 80-6, APPROVING THE PLANS AND _S~~CIFICATIONS OF THE LAKE ORONO DAM R~HABILITATION AND ORDERING THE.IMPROVEMENT. COUNCILMAN DUITSMAN SECONDED THE MOTION. MOTION PASSED 4-0. 9. Orono DarilBid Award COUNCILMAN ENGSTROM MOVED APPROVAL OF RESOLUTION 80-7, ACCEPTING THE BIDS FO.RTHE LAKE ORONO DAM REHABILITATION AND AWARDING THE CONTRACT TO THE LOW BIDDER, ACTON CONSTRUCTION, FOR.$876,630. COUNCILMAN TOTH SECONDED THE MOTION; MOTIONPASSED4~0. 10. Sale of Hydro Generation Equipment The City Administrator indicated one proposal had been received in the amount of $2,500.00 for the purchase of the hydro equipment from the Orono Dam power house to be removed at the buyer's expense. The City Administrator further indicated that another proposal for considerably more money was expected within the next day and, therefore, recommended the City Council not take