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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 #16-07-134 Accepting Bids and Awarding a Construction Contract for Improvement <br />Project #16-00 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 />