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~i°` " ~c <br />Ri <br />ITEM 5.1. <br />MEMORANDUM <br />TO: Mayor & City Council <br />VeY' FROM: Pat Klaers, City Ad ini rator <br />DATE: March 13, 1995 ~ <br />SUBJECT: Ice Arena Construction Documents <br />The City Council was advised at its 3/6/95 meeting that the ice arena budget <br />estimates were higher than anticipated. These cost estimates are still being <br />analyzed and reviewed and are not yet ready to be presented to the City <br />Council. <br />At the 3/6/95 Council meeting, the City Council was also advised that timing <br />is becoming a critical issue if the arena is to be constructed and people are to <br />be skating this November. Timing is critical based on the need to order steel <br />and pre-cast concrete so that this material is available during the summer for <br />construction. Timing is also critical so that Youth Hockey can sell ice time to <br />other organizations and, therefore, ensure revenues for the upcoming season. <br />Ice time cannot be sold, nor can materials be ordered, until the City Council <br />• authorizes a project. Likewise, a project cannot be authorized by the Council <br />until construction documents are completed, bids are received, a budget <br />accepted, and a bond authorized. <br />In an effort to not lose time in this process, Youth Hockey has offered to use <br />some of its funds for this project to finance architectural services for <br />construction documents. The City hired RSP Architects for the ice arena <br />project with a base bid of $89,500. The construction documents are estimated <br />to cost $40,250 or 40% of this total. The City Council would have a difficult <br />time authorizing this expenditure until financing for the project is finalized. <br />Youth Hockey is aware of this predicament and are willing to front-end this <br />expenditure. Additionally, it should be noted that if financing for the project <br />is not finalized and the project is delayed, these construction documents. are <br />still valid for a project in 1996. <br />Please see the attached letter from Youth Hockey on the construction <br />documents request. Also, the minutes from the 2/27/95 Elk River Youth <br />Association Board Meeting regarding its cash contribution to the project are <br />attached. <br />P.S...On Friday morning, I heard a brief news update on proposed legislation <br />to help finance ice sheets for communities. I haven't seen anything in writing <br />yet, but maybe more information on this legislation will be available for <br />Monday's meeting. <br />13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 <br />