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Locker Systems for the Pavilion High School C.R C,ITY p • June 12, 2007 N O P K I N S Council Report: 2007-062 Locker Systems for the Pavilion High School Team Rooms Proposed Action. Staff recommends adoption of the following motion; Move to approve an expenditure of $24,000 for the construction and installation of locker svstems for the Pavilion Team Room Addition and authorize staff to revise the pavment schedule for the existinq Ground Lease. Aqreement to include the repavment of this expenditure bv the Hopkins High School Bovs Hockey Boosters Club. Overview. A proposal has been submitted by the Hopkins High School Boys Hockey Booster Club asking for funds to construct and install forty (40) wood lockers in the high school boy's hockey team rooms. Any funds provided would be repaid with interest to the City of Hopkins by revising the Booster Club's payment schedule. The payment schedule is part of the Ground Lease Agreement the City signed with Hopkins Youth Hockey Association in 2004. The Hopkins Youth Hockey Association approved the revisions to the Boosters Club's payment schedule at their June 18, 2007 board meeting. The lockers were part of the original team room expansion project but were cut due to project budget limitations and were always intended to be completed • by the Booster Club. Adoption of this motion will result in an increase to the payments made to the City by the Hopkins High School Boys Hockey Booster Club. Primarv Issue to Consider • Should the expenditure be made to construct a forty wood locker system for the Pavilion's Hopkins High School Boys Hockey team rooms? Recommendations • Staff recommends the approval of an expenditure of $24,000 to construct wood lockers for the Pavilion's high school team rooms, with the necessary payment schedule revisions needed to repay the expenditure. Supporting Information • Detailed Background — Payment schedule • Hopkins High School Boys Hockey Booster Clubs Proposal • Two uotes for the construction of the wood lockers --�-�� Don Olson, Pavilion Manager • Financial Impact: $ 24,000 Budgeted: No Source: E ui ment Re lacement Fund Related Documents (CIP, ERP, etc.): Notes: Lease payments will be made to the ERP to repay the expenditure of $24 000 • Detailed Backqround Outline of the Booster Club's current remaining payments and revised payments with a$24,000 proposed expenditure: Payment Current Payment Revised Payment Adjustmenf to Date Schedule Schedule Pavments 2/1 /08 $9,170 $8,781 ($388) 2/1 /09 $9,170 $8,920 ($250) 2/1/10 $5,000 $8,860 $3,860 2/1/11 $5,000 $8,800 $3,800 2%1/12 $5,000 $8,740 $3,740 2/1/13 $5,000 $8,680 $3,680 2/1/14 $5,000 $8,620 $3,620 2/1/15 -------- $8.870 $8,870 Totals $43,340 $70,271 $26,932 Since 2005 the Booster Club has made lease payments totaling $31,660 and all payments have been paid on time according to the current schedule. With their current and future fundraising programs they are confident they will be able to meet the revised payment schedule. Should the expenditure be made to construct forty wood lockers system for the • Pavilion's Hopkins High School Boys Hockey team rooms? The Booster Club has demonstrated to Pavilion staff through use of the facility, and through previous payments, that they have the ability to meet their financial obligations. The addition of the lockers would be an improvement to the facility at no cost to the city. The project puts the finishing touches on, and completes the original finishing plan, of the team room addition project started in 2004. • • June 5, 2007 To: Don Olson, Hopkins Pavilion City of Hopkins Hopkins Youth Hockey Association, Brady Bizal, President From: Hopkins High School Boys Booster Club Re: Our proposal for adding additional funds to our existing locker room loan to fund new wood lockers for both the Varsity and Junior Varsity locker rooms at the Pavilion. It is our desire to continue the upgrade of the boy's high school locker rooms at the Pavilion with the addition of wood lockers in both the Varsity and JV locker rooms. The Booster Club and Coach Nyberg have visited several high school locker rooms in the area to get ideas for � new lockers. We met with two custom cabinet companies to get independent bids for the lockers. Both bids are attached. It is our desire to use the bid from Anderson Millwork out of Eden Prairie. They gave us a very favorable bid and after meeting with them and looking at a sample of the wood they use we are very pleased and confident that they will provide us with an excellent product. Two items will likely be deducted from their bid, the doors with 2 hinges ($2,898.00) will not be needed and I presume we will not be paying sales tax (?). We need to buy some miscellaneous items for installation, so the final amount we would need � should be close to $23,000-$24,000. Our current obligation for the locker room building addition is $9,100/year payable in Jan./Feb. of 2008 and 2009 and $5,000/year for 5 additional years, 2010-2014 (a total of $43,200). What we propose is the following: � � Total both debts; $43,200 +$24,000 =$67,200 and divide it evenly over the remaining 7 years PLUS ONE ADDITIONAL YEAR. Therefore, annual payments would be equal at $67,200 i 8 years =$ 8,400/year. We are confident we can meet this payment schedule with our ongoing fundraising and we understand that we have a 2% interest obligation on the new money. We also understand that the HYHA board must approve the addition of these funds to our loan as they are the lease holder for the locker room addition. Brady, please make sure you put on your agenda for your June meeting to discuss this request and take a vote for approval by the board. Thank you and please feel free to contact me with any questions. We would like the City to review this as soon as possible at their next work session in 3une. We could come to this session to discuss our proposal. Anderson Millwork would like to order the wood ASAP. Sincerely, • John Kallas President, Hopkins Boys Hockey Booster Cluib 612-599-7199, ,�ohnkallas(acomcast.net 04/03/2007 12:21 7634416284 ZROKA CABINEf AND FX PAGE 01IO2 �° Z1tOKA C.ASII�IEI & �'�TURE CO., �1C. �' � ST��ATJ� 9895 Quecn vc„ Nf` * N1k Ri er. 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ANDERSON MIL.LVYQRK PFZOPOSAL • 71 �O SHADY OAK RD � EDEN PRAIRIE MN 55,344 DATE PROPOSAL # • Phone # (952) 938 sli6i2oo7 2323 FaX # (952)935-0046 A Progosal For: Pxo�cT Lockers Hopkins Hockey Association Customer Contact Customer Phone Customer Fazc P.O. NO. TERMS POB 1/2 down, balance on delivery Pavilion DESCRIPTION QTY COST Tofal Baltic Birch lockers w/ 3/4" sides, shelves and dividers w/ lift up lids; black commercial 0.00 hospital tipped heavy hinges, clear lacquer fmish delivered to Pavilion . 20"D x 30" W x 72° H lockers as described above 3b 495.00 17,820.00T 20" D x 48" W x 72"H lockers as described above 6 550.00 3,300.00T Baltic Birch door w/ 2 hittges, l knob, 1 lock, I angle bracket to stop door (installed hy 42 69.00 2,898.00T • others) Misc. Hardwaze set (installed by others); 1 1/16" chrome rod w/ 2 ends for mounting; 4 small 0.00 coat hooks and 2 Iarge coat hooks Hardware set as described above for 30" lockers 36 27_SO 994.00T Hardware set as described above for 48" lockers 6 32.00 192.00T S21es teX 6.65% 1,675.80 Thank you for considering Anderson Millwork! I understand and accept this proposal. � I Signed: Date: � $26,875.80 Not included: finishing, installation, Countertops, glass, moulding, pulI hardware, nor delivery unless specifically stated. Normal compleflon: 4 to 6 . weeks after confirmation of order (estimated leadtime, not guaranteed). Presume nothing #o be included unless specifically stated. See "Shop Standards" for our specifications_ Any changes in job may result in increased charges; price is guazanteed only by written change order. This proposal is good for 45 days. Down payments are a commitment to do the work, order material and, as such, aze non-refundable. Our liability on defective merchandise islimited to replacement or refund (our option). Past due accounts are subject to a finance charge of 1-1/2% per month. Returned checks aze chazged a$20 return fee. Costs of coIlecting on a past due account, including attomey's fees, aze customer's responsibility.