REQUEST FOR COUNCIL ACTION Date: July 12, 2021 Item No.: 9.e Department Approval City Manager Approval Item Description: Approve Grant Agreement to the State of Minnesota and Architect for the Guidant John Rose Minnesota OVAL Projects 1 BACKGROUND 2 The 2020 State Bonding Bill included $3,900,000 for general improvements to the Guidant John 3 Rose Minnesota OVAL available in 2021. The project needs to be complete and funds utilized 4 by December 31, 2024. 5 6 On March 22, 2021 the City Council authorized a required resolution and grant application for 7 the State to review and approved to allow the city to proceed toward the next step of an actual 8 grant agreement and further the project planning. 9 10 Staff has continued to work with the State of Minnesota and the City Attorney on the official 11 Construction Grant Agreement, it is attached for your review and approval. 12 13 Grant Agreement 14 To proceed with the projects, the State of Minnesota requires the attached grant agreement be 15 approved. Included in the agreement is a declaration that is required with all General Obligation 16 Bond funded projects that imposes a restriction that any future transfer of the property needs to 17 be done with State consent. It is the position of the State of Minnesota that the terms in the grant 18 agreement are non-negotiable. 19 20 Architectural/Engineering Needs 21 As part of the grant agreement, the specific architect information is expected to be named. 22 23 The capital budget request that was submitted to the State of Minnesota were pre-design amounts 24 with the full understanding that the specific design/engineering work would need to be done as a 25 part of the project and budget. The funds for these planning and management items is included in 26 the budget. Staff solicited proposals from three engineering firms for a design - bid - build 27 approach with the following results: 28 Firm Base Proposal *Alternate #1 **Alternate #2 Total 29 B32 Engineering Group $263,900 n/a $9,850 $273,750 30 KFI Engineers $240,000 $26,000 n/a $266,000 31 Stantec Consulting Group $328,000 n/a n/a $328,000 32 *Add Alternate #1 – Commissioning – this will be done as part of the contractors responsibility Page 1 of 4 33 to ensure operations 34 ** Add Alternate #2 – Study Geothermal (study feasibility and options, not to construct) 35 n/a – no proposal 36 37 After careful review and consideration of each firm, their overall understanding of the project 38 and the fee proposals, staff is recommending that the City of Roseville enter into an agreement 39 with B32 Engineer Group for this project including the alternate to study connecting to the 40 existing Geothermal system for a cost of $273,750 (proposal is attached). 41 42 The B32 Engineer Group is familiar with the facility and has a full understanding of the project. 43 They were the engineers that led us through a catastrophic mechanical failure renovation project 44 in 2005 and did an excellent job. 45 46 The proposed construction timeframe is late fall through October 2022 with some potential 47 carryover into 2023. 48 49 Final bids and construction schedule will be brought to the City Council for final approval. 50 51 An overview of the identified projects and predesign cost estimates based on the 2018 dollar 52 value and Condition Assessment Report are as follows: 53 54 Project Pre-Design Estimates 55 1. Renovate Refrigeration Plant 56 Compressors $ 140,000 57 Chiller $ 830,000 58 Condenser and Pumps $ 340,000 59 Treatment/Ammonia Detection, Electrical Systems $ 250,000 60 61 2. Renovate Brine Pumping Systems 62 Brine Replacement and Filtration $ 60,000 63 Pumps $ 100,000 64 Expansion Tanks $ 32,000 65 66 3. Renovate Concrete Refrigeration Rink 67 Renovate Expansion Joints $ 200,000 68 New Insulated Grade Beams with expansion joints $ 525,000 69 70 4. Renovate Perimeter Paving $ 90,000 71 Mill and blacktop perimeter (training track) of OVAL 72 73 5. Renovate Perimeter and Underground Drainage System $ 142,000 74 Mill and blacktop perimeter (training track) of OVAL/turf 75 improvements. All this is to improve drainage systems to 76 prevent water from undermining the slab 77 78 6. Replace Padding and Fence System $ 450,000 79 Replace fence surrounding the OVAL to secure padding system 80 Replace padding system around the OVAL to meet world Page 2 of 4 81 competition standards 82 83 Subtotal before contingency and planning/management costs $ 3,159,000 84 Contingency and planning/management costs $ 821,340 85 Total with contingency, planning/management costs $ 3,980,340 86 87 Based upon the time lapse from the cost estimates (inflationary factors), it may be necessary to 88 value engineer this project. 89 90 Following the completion of all necessary State of Minnesota documents, the anticipated 91 timeframe for the project is 2021/2022/2023. The next steps as identified are as follows: 92 • Submit resolution and grant application to the State of Minnesota – COMPLETE 93 • Project internal review by the State – COMPLETE 94 • Preparation and approvals to execute final grant agreement – COMPLETE 95 • Execute final grant agreement with the city and authorize engineer to develop 96 plans and specifications – July 12, 2021 97 • Prepare plans and specifications – Summer/Fall 2021 98 • Advertise for competitive bids – Fall 2021 99 • Begin project – Fall 2021/Winter 2022 100 101 We are hopeful that the required steps can progress so that work can begin in 2021 with 102 continuation and substantial completion in the off-ice season 2022. 103 104 POLICY OBJECTIVE 105 The proposed project, grant agreement and the use of professional engineering services are 106 consistent with city policy on performing necessary work outside of the realm of staff for the 107 proper execution of the project and the safe operation of the city infrastructure. 108 109 FINANCIAL IMPACTS 110 Approval of the attached grant agreement will allow the State of Minnesota to formally begin the 111 grant process for the projects. 112 113 The cost for architectural/engineering services as outlined in the attached proposal provided by 114 B32 Engineering Group for a cost of $273,750 will be taken from the State Bond proceeds. 115 116 STAFF RECOMMENDATION 117 To meet State requirements, staff recommends that the Mayor and City Manager be authorized to 118 sign the attached grant agreement. 119 120 Staff also recommends that based upon the proposals received, that the City Manager be authorized 121 to enter into an agreement with B32 Engineering Group for a cost of $273,750 as outlined in the 122 attached proposal. 123 124 REQUESTED COUNCIL ACTION 125 1) Motion authorizing the Mayor and City Manager to sign the attached construction grant 126 agreement with the State of Minnesota for the Guidant John Rose Minnesota OVAL project 127 as presented. 128 129 2) Motion Authorizing the City Manager to enter into an agreement with the B32 Engineering Page 3 of 4 130 Group for a cost of $273,750 for professional engineering services for the projects as 131 outlined to be paid for out of the grant proceeds planning/management budget. Prepared by: Lonnie Brokke, Director Matthew Johnson, Assistant Director Attachments: A. 2021 Special Appropriation General Obligation Bond Grant Agreement B. Standard Agreement for Professional Services C. B32 Engineering Group Proposal – Guidant John Rose MN OVAL Ice System Improvement Project Page 4 of 4 Attachment A SPAP-20-0033-P-FY21 SC General Obligation Bond Proceeds Grant Agreement - Construction Grant for the Roseville – Guidant John Rose Oval Project under the General Obligation Bonds Program Generic GO Bond Proceeds Ver – 6/30/14 Grant Agreement for Program Construction Grants TABLE OF CONTENTS RECITALS Article I - DEFINITIONS Section 1.01 – Defined Terms Article II - GRANT Section 2.01 – Grant of Monies Section 2.02 – Public Ownership Section 2.03 – Use of Grant Proceeds Section 2.04 – Operation of the Real Property and Facility Section 2.05 – Public Entity Representations and Warranties Section 2.06 – Ownership by Leasehold or Easement Section 2.07 – Event(s) of Default Section 2.08 – Remedies Section 2.09 – Notification of Event of Default Section 2.10 – Survival of Event of Default Section 2.11 – Term of Grant Agreement Section 2.12 – Modification and/or Early Termination of Grant Section 2.13 – Excess Funds Article III – USE CONTRACTS Section 3.01 – General Provisions Section 3.02 – Initial Term and Renewal Section 3.03 – Reimbursement of Counterparty Section 3.04 – Receipt of Monies Under a Use Contract Article IV – SALE Section 4.01 – Sale Section 4.02 – Proceeds of a Sale Article V – COMPLIANCE WITH G.O. COMPLIANCE LEGISLATION AND THE COMMISSIONER’S ORDER Section 5.01 – State Bond Financed Property Section 5.02 – Preservation of Tax Exempt Status Section 5.03 – Changes to G.O. Compliance Legislation or the Commissioner’s Order Generic GO Bond Proceeds Ver – 6/30/14 Grant Agreement for Program Construction Grants Article VI – DISBURSEMENT OF GRANT PROCEEDS Section 6.01– The Advances Section 6.02 – Draw Requisitions Section 6.03 – Additional Funds Section 6.04 – Conditions Precedent to Any Advance Section 6.05 – Construction Inspections i Article VII- MISCELLANEOUS Section 7.01 – Insurance Section 7.02 – Condemnation Section 7.03 – Use, Maintenance, Repair and Alterations Section 7.04 – Records Keeping and Reporting Section 7.05 – Inspections by State Entity Section 7.06 – Data Practices Section 7.07 – Non-Discrimination Section 7.08 – Worker’s Compensation Section 7.09 – Antitrust Claims Section