Agenda Packets - 2012/08/27 - Laserfiche WebLink

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Mounds View City Council July 23, 2012 Regular Meeting Page 5 E. Resolution 7972, Authorizing the Purchase of 400 Chairs for the Event 1 Center in the Mounds Vice Community Center. 2 3 Public Works Director DeBar explained the Community Center was built in 1997, at which time 4 400 chairs were purchased to assist with hosting events in the banquet rooms. The original 5 chairs were now in need of replacement. This was a budgeted expense that was deferred from 6 2011. A bid for the chairs was received from MinnCor through the State Cooperative at a rate of 7 $137.25 per chair or $54,900 plus $2,000 for freight and $3,911.88 for tax. 8 9 Public Works Director DeBar indicated the proposed chairs were stackable, had a brushed 10 aluminum finish and came with a 12-year warranty on the frame. Staff budgeted $40,000 for this 11 purchase. Finance Director Beer assured staff that funds were available in this year’s budget to 12 cover the difference. He noted the current chairs would be placed on the League of Minnesota 13 Cities website. Staff recommended approval of the 400 chairs for the event center. 14 15 Mayor Flaherty noted he spoke with staff regarding this issue as the expense had come in 50% 16 over budget. He asked if the Council was being asked to increase the Community Center’s 17 budget by $20,000 or for the City to cover the expense. Public Works Director DeBar indicated 18 the Community Center’s expenses would be increased by $20,000. He deferred this question 19 further to Finance Director Beer. 20 21 Mayor Flaherty requested further comment from staff. City Administrator Ericson stated he was 22 unsure whether there was sufficient surplus for the Community Center at this time. A surplus 23 could be used to assist with the purchase of the chairs. 24 25 Mayor Flaherty stated the $20,000 was a substantial amount over the budgeted amount. He 26 indicated he would like further comment from Finance Director Beer on this issue. 27 28 Council Member Gunn asked if the order is split, would the City be spending addition funds on 29 freight. She reiterated that Finance Director Beer had commented that funds were available to 30 cover the overage for this expense. 31 32 Mayor Flaherty stated the 2012 budget was previously approved with this expense at $40,000. 33 He was in favor of proceeding so long as the Community Center could cover the additional 34 expense. Public Works Director DeBar commented the proceeds from the sale of the existing 35 chairs would be placed in the City’s General Fund. 36 37 Council Member Mueller was in favor of the purchase so long as the City’s overall budget for 38 2012 does not increase. She understood that the furniture within the Event Center was important 39 to booking future events at the Community Center. City Administrator Ericson indicated there 40 would be a surplus within the 2012 budget to cover this expense. 41 42 MOTION/SECOND: Gunn/Hull. To Waive the Reading and Adopt Resolution 7972, 43 Authorizing the Purchase of 400 Chairs for the Event Center in the Mounds Vice Community 44 Center. 45