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Home My WebLink About12-23-1959Record of Official- Proceedings of the .Common Council of the City of Rochester,. Minn., December -23, 1959 . 3 S 7 • 1 1 • 1 Minutes of a special meeting of the Common Council of the City.of Rochester, Minnesota held in the Council Chambers, in the City Hall, in said City on December 23rd,.1959. President Kamm•called the meeting to order at 4:30 o'clock P. M. with the.following member being present: President Kamm,.Aldermen Hanlon, McGuckin, Morris, Tingley and Wilkus. Absent: Alderman Haas. The call of the special meeting was read.and President Kamm ordered the same placed on fi the said meeting having been called for the purpose of (1) Consider lease with Gopher Aviation, Inc.I (2) Consider agreement with Rochester Airport Company (3).Accept certain bids (4) Reject.certain bids. Upon motion by Tingley, second by Morris, the meeting was adjourned until 9:00 o'clock P. in order to permit a final review of the lease agreement by the City Attorney and attorneys for Gopher Aviation, Inc.. All voted in favor thereof. The meeting was called to order at 9:30 o'clock P. M. with the following members being present: President Kamm, Aldermen Haas, Hanlon, McGuckin, Morris and Wilkus. Absent: Alderman Tingley. A letter -from Fred W. Schuster, Chairman of the Rochester Airport Commission, recommending the following was read: (1) The Airport Commission having reviewed in detail with the City Attorney the lease between the -City of Rochester, The Rochester Airport Company and Gopher Aviation, Incorporated recommends its acceptance by the City. (2) That the City accept bids for the construction of Hangar B and Alternate #1 - - and related facilities as.outlined in the letter prepared by the Architects and attached hereto. (3) The Mayor be authorized to sign the letter dated December 23rd, 1959 directed - _ to Fred W. Schuster, -President of the Rochester Airport Company, a copy of which is attached hereto. The following proposed letter from Mayor Alex P. Smekta was also read: Mr. Fred W..Schuster, President Rochester Airport Company Rochester, Minnesota ; RE: Lease, Gopher Aviation - New Airport. Dear Mr. Schuster: In that lease dated'December 23, 1959, between the City of Rochester and the Rochester Airport Comp- any, lessors, and Gopher Aviation, Incorporated, lessee, certain rentals are to be paid by Gopher Aviation, Incorporated. In accordance with discussions in the Airport Commission and with the Common Council, and .in view of the agreement and lease under which the Rochester Airport Company will operate the new airport until October 31,1975, certain of the rentals to be paid by Gopher -Aviation, Incorporated, at the new Rochester Airport will,directly, or indirectly, be paid to the Rochester Airport Company, Rentals to be paid to the Rochester Airport Company are as follows: 1. One-half of the ground rentals derived from Area A as defined in the lease, and one-half of these rentals as they may be adjusted at certain intervals by the application of specified United States Department of labor Indexes. 2. All of the rentals to be derived from Area B. 3. Rentals which may be due from Gopher Aviation as a consequence of the provision effective in 1970 whereby Gopher is to pay additional rentals equal to two percent on all gross applicable sales in excess of $1;000,000 annually, shall be divided equally between the City and the Airport-Company;.except as follows: If from the date upon which the -Airport Company assumes the operation of the _new airport, it experiences and shows on its books,by independent audit an accumulated deficit, then all_of the additional rentals paid by Gopher as a consequence of the--percentage.,of sales provision, will. he; paid to the Airport Company until such accumulated deficits have been reimbursed'to-the Airport Company • .: z- • 38 Record of Official. Proceedings of the Common Council of the City of -Rochester, Minn.,_ December 23,.. 1959 • 4. After October 31, 1975 all rentals paid -by Gopher Aviation will be retained by the City of Rochester, excepting such pro-rata share of rentals as may be due to the Rochester Airport Company, but not paid as of October 31, 1975. The City of Rochester understands that it may purchase from the Rochester Airport Company the steel hangar situated at the old airport for the sum of $25,000. The City also under- stands that the offer'of this hangar by the Rochester Airport Company is not a continuing offer, but will remain effective until July 31, 1960. It is further understood by the City that the Rochester Airport Company will continue to receive the rentals from this hangar until such time as Gopher Aviation, Incorporated shall move out of the hangar in pre- paration for the hangar to be moved, and at such time as this occurs the sum of $25,000 will be paid to Rochester Airport Company by the City of Rochester. As soon as possible a formal agreement covering the points outlined above should be executed by the City of Rochester and the Rochester Airport Company. Yours very truly, Alex P. Smekta, Mayor - City of Rochester A.motion was made by Wilkus, second by Morris and.upon roll call and all present voting in favor thereof,.the contents of the letters were approved and the Mayor was authorized'to sign the letter addressed to Mr. Fred W. Schuster, President of the Rochester Airport Company.. The contents of'the lease between the City of Rochester, the Rochester Airport Company and Gopher Aviation, Inc. were outlined by R. V. Ehrick, City Attorney. Alderman Wilkus introduced a resolution authorizing and directing the Mayor and City Clerk to execute the lease with Gopher Aviation, Inc. Upon motion by Haas, second by Wilkus and upon roll call and all present voting in favor thereof, the resolution was approved. The following recommendation from Ellerbe and Company was read: "Honorable Mayor & Common Council City of Rochester Rochester, Minnesota Gentlemen: We have been directed by the Airport Commission to prepare contracts for the construction of buildings at the new Rochester Airport in accordance with the low bids received by the Rochester City Council, November 9, 1959 for the "BY hanger (Base Bid) and the two north bays addition to the "B" hanger, (Alternate No. 1) and reject the alternate for the smaller "A:" hanger, pole hangers, and "T" hangers. We were also directed to enter intol,negotiations with the low bidder for the general construction to eliminate the base, sub -base; and -seal cost work on the complete site. This has been.done by Addenda No. 4 and resulted in a deduction_ of-$37;703 from the general contractor's base bid. We have examined the bids as received and recommend that the awards be made to the low bidders as follows: . 4. General Construction - Alvin Benike Construction Company Base Bid ("B" hanger only) $229,922.00 Add Alternate No. 1 (2 north bays) '57,764.00 Deduct Addenda No. 4.(site work)-37;703.00 Total Contract Cost $249,983.00 2. Mechanical Construction - Kirckof Plumbing and Heating Company Base Bid $ 36,599.00 A lternate-M-1 10,899.00 Total Contract Amount $ 47,498.00 3. Electrical Construction - Nietz Electric and Appliance Company Base Bid $ 17,915..00 Alternate E-1 - - 5;820.00 Total Contract Cost $ 23,735.00 Respectfully yours, ELLERBE AND COMPANY By: s/ V. Behm." Upon motion by Haas, second by Hanlon and upon roll .call and all present voting in favor thereof, the recommendation was accepted. Alderman Stanley M. Morris then introduced the following resolutions:which were read and 1 1 • 1 upon motion made, seconded and all voting in favor thereof, President Kamm declared the said 0 Record of Official -Proceedings. of the Common Council of the .City of _Rochester, :Minn., ,December. 23, 1959 F, • 1 1 L resolutions duly passed and adopted: Resolution accepting the bid of Nietz Electric and Appliance Company for electrical con- struction at the new Municipal Airport (Gopher Aviation, Inc.) Upon motion by Wilkus, second by Morris, resolution adopted. Resolution accepting the bid of Alvin Benike for General Construction at the new Municipal Airport (Gopher Aviation, Inc.). Upon motion by Wilkus, second by Haas, resolution adopted. Resolution accepting the bid of Kirckof Plumbing and Heating Company for Mechanical Con- struction at the new Municipal Airport (Gopher Aviation, Inc.). Upon motion by Haas, second by Wilkus, resolution adopted. A motion was then made by Haas, second by Wilkus, that the City Clerk return the certified checks to the unsuccessful bidders and the checks of the successful bidders when the City is furnished with a proper bond by each. All present voted in favor thereof. _ Upon motion by Wilkus, second by Hanlon, the meeting was adjourned. Deputy City Clerk