MINUTES
PORT AUTHORITY SPECIAL MEETING
MONDAY, JULY 23, 2014
4:30 P.M.
COUNCIL CHAMBERS – CITY HALL
Members Present:
Commissioners Jerry McCarthy, Jerry Mohrfeld, Michaell Bednar,
Jeff Austin, Larry Maus, Roger Boughton and Lee Bjorndal.
Members Absent:
None.
Staff Present:
Port Authority Attorney David Hoversten and Port Authority
Secretary Tom Dankert.
Others Present:
Jon Erichson (Turtle Creek Engineering and Consulting), Steve Rizzi
(The Hormel Foundation) and Tim Penny (SMIF).
President McCarthy called the meeting to order at 4:30 pm.
Additional Item. – Tim Penny, Southern Minnesota Initiative Foundation (Foundation):
Executive Director Tim Penny discussed the Foundation and the support they gave our
community over the last year. Mr. Penny also thanked the Port Board for their $5,000
commitment for 2014 and is requesting $6,000 for 2015. Mr. Penny noted they have a $4.5-$5
million budget, 10% of which comes from local support like the Port Authority gives.
Item #2. – Approval of the minutes of the July 1, 2014 special meeting: Motion by
Commissioner Boughton, seconded by Commissioner Mohrfeld, to approve the minutes of the July
1, 2014 Port Authority meeting. Carried 7-0.
Item #3. – Claims for Payment: Mr. Dankert presented the claims for payment for the period of
June 20, 2014 to July 17, 2014 for $209,000.27 discussing several items briefly. Commissioner
Mohrfeld questioned the Ellumilite equipment move costs. Mr. Dankert noted that these are the
costs associated with getting the Ellumilite equipment moved from one suite to the other to
accommodate the building sale to Drapery Services and the contracts had been approved at a
previous meeting.
Motion by Commissioner Mohrfeld, seconded by Commissioner Bjorndal to approve the claims for
payment as presented. Carried 7-0.
Item #4a. – Hormel Institute Core and Shell Bid Approvals – Reject Bid Package 1E Steel
Install: Mr. Erichson discussed the last bids that were taken, and the fact that no contractor bid on
the Bid Package 1D Steel Supply. Additionally, the low bidder for Bid Package 1E Steel Install
needs to be rejected as the apparent low bidder has provided documentation of an obvious error in
their bid and would like to be released from such bid.
Motion by Commissioner Boughton, seconded by Commissioner Bednar to reject Bid Package 1E
Steel Install as recommended. Carried 7-0.
Item #4b. – Hormel Institute Core and Shell Bid Approvals – Approve Bid Package 1D Steel
Supply and Bid Package 1E Steel Install: Mr. Erichson took bids today for the above bid
packages, and now that we have rejected the other bids we would recommend approval from the
Board to accept the low bidder for the steel install and steel supply contracts for the Hormel Institute.
Mr. Erichson noted we had two bidders as follows:
 The Joseph Company Inc.
$1,541,000
 Hawk and Son’s
$1,974,000
 Engineer’s Estimate
$1,647,209
Mr. Erichson noted The Joseph Company has confirmed their bid and is ready to stand behind it.
Mr. Erichson recommended approval of the bid from The Joseph Company contingent upon
receiving state approval.
Motion by Commissioner Austin, seconded by Commissioner Bjorndal to approve Bid Package 1D
Steel Supply and Bid Package 1E Steel Install to The Joseph Company, contingent upon receiving
state approval. Carried 7-0.
Item #6. – Hormel Institute change order process: Mr. Erichson noted there is a need to keep the
project moving forward once construction starts, and that change orders will inevitably happen
during the project. On some prior City projects, we have utilized a process where the Board
approves staff making decisions on change orders up to a certain dollar amount (say $10,000) and
then we bundle all of those up during the process for official Board approval at a later date. This
allows staff to keep the project rolling forward without delays for the Board to officially make
decisions.
After further discussion, motion by Commissioner Austin, seconded by Commissioner Bjorndal to
approve Mr. Erichson and Mr. Dankert having administrative authority to approve changes up to
$25,000, with the packages then being brought back at a later date for official Port Authority
approval. Carried 7-0.
Item #5. – Hormel Institute Resolution: Mr. Dankert discussed the resolution drafted by our
attorney Jennifer Hanson at Dorsey and Whitney authorizing the President and Secretary to sign any
and all documents related to the Hormel Institute expansion. By approving this resolution all leases,
bond agreements, construction agreements, etc. can be signed without bringing each individual item
back for Board approval.
Motion by Commissioner Boughton, seconded by Commissioner Austin to approve of the
Resolution approving the acquisition and lease of state GO Bond financed property to The Hormel
Foundation. Carried 7-0.
Item #7. – Other Business: None.
Item #8. – Next meeting August 13 at 4:30 p.m.: This is for FYI only for the need of more
meetings related to The Hormel Institute expansion, and other projects we may be bringing forward.
Item #9. Adjournment: With no further business, motion by Commissioner Bjorndal,
seconded by Commissioner Austin to adjourn the meeting at 5:25 pm. Carried 7-0.
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Approved:
President:
Secretary:
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