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MINUTES <br />CITY COUNCIL <br />AUGUST 30, 1990 <br />Fire Protection - Again, Beckwith requested delaying <br />awarding of this bid item. Beckwith reported that <br />many of the mechanical contractors have included the <br />sprinkler system in their bid proposals, and he <br />needs an opportunity to review these bids more <br />closely. <br />Electrical - Beckwith recommended that the <br />electrical bids be rejected and rebid once the <br />mechanical section has been reviewed. Beckwith <br />reported that the low bid received was not complete <br />due to the generator being omitted. Since the City <br />cannot allow this item to be added into the bid even <br />though the bid would still be low, Beckwith is <br />recommending that all the bids be rejected and the <br />item rebid. <br />Beckwith reported that incorporating the low bids and <br />target budgets for those bid items that are yet <br />undetermined, there is an estimated budget of <br />$1,833,589 for the Fire Station project. <br />The City Administrator reported that the original <br />budget proposed for the Fire Station was $1,850,000. <br />The Administrator also pointed out that there are <br />issues such as the sales tax issue that needs to be <br />resolved, and depending on the outcome, there is the <br />chance that the final budget for the Fire Station will <br />be reduced. <br />Beckwith reported that he is discussing with NSP the <br />possibility of relocating lights and utilities in the <br />area of the Fire Station site. Estimated cost from N5P <br />for putting utilities underground is $100,000, however, <br />Beckwith reported that he is exploring other <br />alternatives which should be more cost effective, such <br />as rerouting utilities behind the building. <br />Council asked about the sales tax issue. <br />Beckwith reported that he has included monies for sales <br />tax in the budget in the event that the State <br />determines that sales tax must be paid. <br />The City Administrator pointed out that the approach <br />being taken is a conservative one. There are <br />procedures that the City needs to follow to obtain tax <br />exempt status for the Fire Station and City Center <br />projects. If these procedures are followed, the <br />Administrator felt it unlikely that the State will <br />require sales tax be paid. <br />Page 3 <br />