M I N U T E S Port Authority Special Meeting Monday, December 15, 2014 4:30 P.M

M I N U T E S PORT AUTHORITY SPECIAL MEETING MONDAY, DECEMBER 15, 2014 4:30 P.M. COUNCIL CHAMBERS – CITY HALL

Members Present: Commissioners Jerry McCarthy, Michaell Bednar, Jeff Austin, Lee Bjorndal, Jerry Mohrfeld, Larry Maus (4:39) and Roger Boughton.

Members Absent: None.

Staff Present: Port Authority Assistant Attorney Craig Byram and Port Authority Secretary Tom Dankert.

Others Present: Jon Erichson, Austin Daily Herald, and Austin Post Bulletin.

President McCarthy called the meeting to order at 4:30 pm. President McCarthy introduced Craig Clark as the new City Administrator, and that he would be approved in 2015 as the new Executive Director of the Port Authority.

Item #2. – Approval of the minutes of the November 12, 2014 special meeting: Motion by Commissioner Boughton, seconded by Commissioner Austin, to approve the minutes of the November 12, 2014 Port Authority meeting. Carried 6-0.

Item #3. – Approval of Spam Museum extension agreement: Mr. Byram discussed the proposed extension agreement requested by Hormel Foods Corporation for the land that is to be transferred to Hormel for the new Spam Museum. We have some title issues that Mr. Byram is clearing up, plus Hormel would like to do some soil testing for a Phase II study to ensure the land is not contaminated. Mr. Byram noted he would be very surprised if anything was found, but any time you remove 100+ year-old buildings it is prudent to do such testing. This would push the closing date back to February 27, 2015 (or earlier if jointly agreed).

Motion by Commissioner Bjorndal, seconded by Commissioner Austin to approve the extension agreement as proposed for the Spam Museum land transfer. Carried 6-0.

Item #4. – Approval of Spam Museum site access agreement: Mr. Byram discussed the site access agreement as requested by Hormel Foods Corporation such that they could do some soil borings and testing for their new Spam Museum. Mr. Byram noted staff have been involved reviewing such agreement and recommend approval.

Motion by Commissioner Austin, seconded by Commissioner Bednar to approve of the site access agreement. Carried 6-0.

Item #5. – Oak Park Mall funds transfer: Mr. Dankert noted at the November 12 Port Authority meeting the Board approved the funding for the Oak Park Mall project, including $500,000 of support from the Port Authority. Mr. Dankert noted he has created a new fund for the Port Authority to track the costs associated with such, and would like Port Authority authorization to transfer the $500,000 from the Port Authority General Fund into the Port Authority Oak Park Mall Fund.

Motion by Commissioner Austin, seconded by Commissioner Boughton to approve of the $500,000 transfer from the Port Authority general Fund into the Port Authority Oak Park Mall Fund. Carried 6-0.

Item #6. – Hormel Institute change orders: Mr. Erichson discussed the status of the Hormel Institute project, noting after these change orders are approved we will still be considerably under budget.

 6ai Fraser Construction – Motion by Commissioner Boughton, seconded by Commissioner Bjorndal to approve Change Order #1 for $14,803. Carried 7-0.  6aii Fraser Construction - Motion by Commissioner Boughton, seconded by Commissioner Bjorndal to approve Change Order #2 for $16,866. Carried 7-0.  6bi Knutson Construction - Motion by Commissioner Boughton, seconded by Commissioner Maus to approve Change Order #1 for $100,632. Carried 7-0.  6bii Knutson Construction - Motion by Commissioner Boughton, seconded by Commissioner Austin to approve Change Order #2 for $11,644. Carried 7-0.  6ci Merit Construction - Motion by Commissioner Mohrfeld, seconded by Commissioner Boughton to approve Change Order #1 for $56,769. Carried 7-0.  6cii Merit Construction - Motion by Commissioner Austin, seconded by Commissioner Boughton to approve Change Order #2 for ($8,251). Carried 7-0.  6di Joseph Company - Motion by Commissioner Boughton, seconded by Commissioner Mohrfeld to approve Change Order #1 for $37,057. Carried 7-0.  6ei Palmer Soderberg - Motion by Commissioner Mohrfeld, seconded by Commissioner Boughton to approve Change Order #1 for $10,341. Carried 7-0.  6fi Carciofini Company - Motion by Commissioner Austin, seconded by Commissioner Bjorndal to approve Change Order #1 for $4,400. Carried 7-0.  6g1 WHV Inc. - Motion by Commissioner Boughton, seconded by Commissioner Austin to approve Change Order #1 for $112,083. Carried 7-0.  6g1 WHV Inc. - Motion by Commissioner Austin, seconded by Commissioner Bednar to approve Change Order #2 for $3,376. Carried 7-0.

Item #7. – Other business: President McCarthy recognized Commissioner Boughton for his service on the Port Authority since 2012. President McCarthy noted some of the big projects Commissioner Boughton has been involved with include the fire site, Hormel Institute expansion, Spam Museum, and Oak Park Mall.

Item #8. – Next meeting December 23, 2014 at 4:30 p.m.: Mr. Dankert noted he has tentatively scheduled a meeting for December 23, 2014 at 4:30 in the event we need to take action regarding the Oak Park Mall development.

Item #9. Adjournment: With no further business, motion by Commissioner Mohrfeld, seconded by Commissioner Bednar to adjourn the meeting at 4:50 pm. Carried 7-0.

Approved:

President:

Secretary: