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City Engineer Westby reviewed the staff report and recommendation to adopt Resolution #16- <br /> 07-134 accepting bids and awarding a construction contract for Improvement Project #16-00 <br /> Division B; 2016 Mill and Overlay Improvements. <br /> Motion by Councilmember LeTourneau, seconded by Councilmember Kuzma, to Adopt <br /> Resolution 916-07-134 Accepting Bids and Awarding a Construction Contract for Improvement <br /> Project 916-00 Division B 2016 Mill and Overlay Improvements. <br /> Further discussion: Councilmember LeTourneau asked if the lower bid would result in a lower <br /> assessment when the assessment hearing rolls around. City Engineer Westby stated that this <br /> assessment was not based on 25 percent of the overall project cost and therefore the assessment <br /> would not be impacted by the lower cost. He stated that the recommendation of staff will be to <br /> leave the assessment as proposed. <br /> Motion carried. Voting Yes: Mayor Strommen, Councilmembers LeTourneau, Kuzma, Johns, <br /> Riley, Shryock, and Williams. Voting No: None. <br /> 7.06: Consider Property Management Agreement with Premier Commercial Realty <br /> Asst. City Administrator/Economic Development Manager Brama reviewed the staff report and <br /> recommendation to approve the property management agreement with Premier Commercial <br /> Realty which includes the addition of 7443 Highway 10, increased spending limit for Premier <br /> Commercial Realty from $100 to $500, and minor housekeeping items. <br /> Councilmember Kuzma asked if there is a provision included that states that Premier would <br /> share in the rate reduction should a rental property request a reduction. <br /> Asst. City Administrator/Economic Development Manager Brama replied this agreement does <br /> not include that because Premier Realty charges a flat fee based on the property and therefore is <br /> not a commission or tenant approach. He stated that this is the property management agreement <br /> and Premier is also the leasing agent so perhaps that reduction could be made on that end if <br /> necessary. <br /> Councilmember Shryock asked who proposed the increase. <br /> Asst. City Administrator/Economic Development Manager Brama stated that staff suggested that <br /> increase in order to increase efficiencies. He stated that this would not reduce transparency and <br /> noted that the business is very transparent. <br /> Motion by Councilmember LeTourneau, seconded by Councilmember Johns, to approve the <br /> Rental Property Management Agreement with Premier Commercial Realty. <br /> Further discussion: Councilmember Williams stated that contracts like this are very important in <br /> allowing staff to focus on what they need to focus on. <br /> City Council/July 26, 2016 <br /> Page 6 of 8 <br />