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HomeMy WebLinkAbout2010-05-17 Finance Committee Minutes FINANCE COMMITTEE May 17, 2010 Minutes Councilors: Bronson, Gratwick, Weston, Palmer, Nealley, Wheeler, Blanchette Staff: Cyr, Dyer, Hupp, McNeil, Dawes, Ring, Willette, Seymour Others: N. Young, E Russell, J. Baldacci, J. Simpson 1. Consent Agenda A motion was made and seconded to approve the consent agenda items. a. Quitclaim Deed – 207 Warren Street b. Emergency Purchase Notification – Bus Engine c. Order, Authorizing Application and Acceptance of $240,000 in Non-point Source Pollution Grant Funds for Projects within Capehart and Penjajawoc Streams 2. Bids/Purchasing a. Mower – Parks & Rec – Greenway Equipment - $47,150 Cyr noted that the City was contacted late this afternoon by Greenway Equipment, the low bidder. The model that the bidder had proposed and that staff had recommended for purchase was a demo. The bid had not been officially awarded, and someone has purchased it off the lot. The recommendation is now to award to the second low bidder, which is also Greenway Equipment, for the exact same mower. It is a new unit. The make and model specified did not meet specifications as written. Staff had asked for all front deck mower attachments allowing the operator to have a good line of vision for all of the mowing decks. Staff looked at the equipment and feel this model will be appropriate for their use. Staff recommended the award of bid to Greenway Equipment in the amount of $49,150 which does include the $400 mulching kit as well as the rotary broom attachment of $4,775. The total amount was included in the FY10 budget. Weston made a motion to approve staff recommendation; Nealley seconded the motion. b. Window Replacement – Airport – Portland Glass - $24,450 Cyr said that the window replacement is being requested for the ramp side of the International Arrivals Building and will replace original windows installed in 1992. The windows are clear but covered with a tinting film that is peeling. This project will replace windows and recoat windows as necessary. This has been previously reviewed by the Finance Committee and the recommendation is to award to the low bidder, Portland Glass, in the amount of $24,450. A motion was made and seconded to approve staff’s recommendation. c. RFQ - Preconstruction Manager Services – Arena – Cianbro Cyr said that both items c. and d. deal with the schematic design level for a potential arena in Bangor. As clarification, she noted that both items came forward based on the direction of Council during a February workshop session at which time seven Councilors asked staff to prepare an RFQ for a preconstruction manager, to obtain a proposal from Sink, Combs and Dethlefs for architectural and engineer services, and both were to be up through the schematic design phase, which is the first natural break point in a project such as this to re-evaluate the next step. This work will enable the Council to decide on specific issues related to the overall scope of the project and further refine the Council’s overall vision and choice. At this point, the information is conceptual in nature and does not provide the necessary data to make any sort of an informed decision as to whether or not a project should go forward and what it should look like. Once the schematic design is complete, the plans will be reviewed in detail with the Council, and it will be at the Council’s discretion what happens or does not happen at that point. By going to the schematic design, Cyr clarified that it commits the Council to get to a level of detail whereby it can actually get real numbers associated with it. The Council can decide to stop at any point in time. Going to a schematic does not insure that the project will move forward, and it does not assume that it will look as it is currently proposed. Part of the schematic design process is for all parties to determine priorities and parameters. Cyr said that the City issued an RFQ at the end of March for interested construction managers at risk. Five responses were received from: Barr & Barr, Cianbro, Consigli, Gilbane, and Hunt Group. All firms participated in an in-depth interview process made up of a six member panel (Council Chair Stone, Councilor Hawes, Deb Cyr, Mike Dyer, and John Simpson). All responders were scored independently by each interview team member and, when all final scoring was compiled, two respondents were equal: Cianbro and Hunt Group. Both firms had personnel, background experience, relationships and desire to complete the project. There were a great number of similarities between the two firms. Both indicated that during the preconstruction value engineering process, the City would be presented options based not only on first costs but on life costs. Life costs include the overall operating costs. Cyr reviewed the LEED experience which varied by proposer but each cited similar opportunities to implement LEED building techniques within the facility. Through the interview process, it was clear that the proposed project delivery method of CM and A/E each working for the City as members of a project team was a typical model employed for projects such as this. All respondents were committed to using local subcontractors should the project move forward. Each firm was asked to provide a fee for preconstruction manager services and they varied from $41,000 to $175,000. Most indicated a willingness to deduct some or the entire proposed fee should the City move forward with the project and both parties are in an agreement to continue a relationship. Cianbro’s preconstruction team includes employees with some limited, direct or random sports facility experience but did make provisions to augment this with the use of a special advisory council, which would serve as a resource upon which to draw. It would include structural engineering, food and beverage providers and a general contractor with more extensive arena type experience. Recently, Cianbro has significantly augmented their direct staff experience related to construction and this type of a project. Cianbro proposes Norb Young as their preconstruction manager. He has a significant background in similar type facilities and on a much grander scale including the Atlanta Olympics. The other front runner was the Hunt Group who has the greatest overall direct experience with arenas similar in size and potential use as Bangor’s proposal. They also work with Sink Combs and Dethlefs. Their in-house team has substantially all of the specialized knowledge relating to this type of a construction project as well as a structural engineer and MEP. They have established relationships with all specialty vendors. The Hunt group is headquartered in Indianapolis and their workload routinely takes them on the road. They have developed a methodology for reaching out to local subcontractors directly and through the various trade associations. The interview panel recommended that this contract be awarded up to schematic design to Cianbro. If the City were to move forward with a construction project within 24 months, Cianbro has offered to turn back their preconstruction manager fee of $175,000 into the project. The financial implications associated with construction services should a project move forward were reviewed with each firm and Cianbro’s fees were generally lower than Hunt’s. Lastly, this project has significant local and regional implications and has the potential to be the largest project the City may ever consider. Cianbro is most likely to understand the high profile nature of the project as well as the related implications. Norbert Young, Board of Directors of Cianbro, addressed the Committee. He would serve as the project director for Cianbro for Bangor’s arena project and would be the point of contact with full responsibility to consistently deliver Cianbro’s services. He detailed his background experience. Palmer spoke about the importance of basketball to the venue. Responding to Nealley, Young spoke about his experience with the Olympics in Georgia. Gratwick spoke about his concern with upcoming budget decisions and with the need to proceed within 24 months on the arena. He asked if there was flexibility to move to 48 months and still have credit for money spent. Young said there would be flexibility. Nealley asked if Cyr could contact EMDC for an update on their efforts. Responding to Wheeler regarding bonding, Cyr said that nothing has yet been decided. For planning purposes, she estimated that the total bonding for the total project was approximately $40M to be bonded in two increments. Until a point is reached with a consensus as to what the project may or may not look like and the preconstruction phase is completed which actually culminates into a guaranteed maximum price, the unknowns cannot be firmed up. Palmer noted that the current Bass Park facilities loses approximately a half million annually. He feels that Phase I can be completed without impacting the taxpayers. John Simpson addressed the Committee. He provided background detail concerning his past experience in the construction history. Simpson was a member of the interview panel for the RFQ respondents. He noted that any of the 5 firms could build an arena in Bangor. He spoke about the need to tailor a project to meet the intended use. Simpson spoke about various aspects of Hunt and Cianbro. He stated that he feels that Cianbro is the right company for the project. After 40 years in the construction business, he did note that he knew somebody from each of the companies except Hunt. Responding to Nealley about Barr and Barr, Simpson said he is familiar with the company and it is an excellent company. During the interview process, Simpson rated them in third place. Responding to Palmer, Simpson said he thinks the community absolutely needs the facility. He feels there is a way to build a new arena without interrupting the current operations. Weston agreed with Simpson’s comments relating to Peter Vigue being a champion of economic development in Maine. Responding to Weston, Simpson said that he has heard some discussion of bringing in a CM at risk prior to an architect. He feels it would be a mistake and that both should come on board simultaneously and work together. Assuming that the City moves forward with the preconstruction phase, he feels the City needs to define a fairly small ad hoc committee to work with the design consultants and the CM team with preauthorization on decision making. Weston spoke about preserving some of Bangor’s memories at the new arena. Responding to Wheeler, Young said the life expectancy of a new facility at approximately $40M would be around 40 years. If staff recommendation is moved for the preconstruction manager at about $175,000, Weston asked if by protocol would the construction project go to Cianbro. Cyr said no, clarifying that the proposed contract form at this point would be for preconstruction manager services only. The Council Order related to the award of contract for preconstruction manager services would include a caveat that at the end of the preconstruction period through schematic design level the Council and the contractor have an opportunity, if mutually agreeable, to continue that relationship on to the construction manager at risk. At that time, a fee would need to be negotiated for those services. When this phase is completed, Weston asked if the taxpayer would have an opportunity to see a RFP for construction services? Cyr said the Council will have the option to waive that as was written in the initially released RFQ for preconstruction manager services. If the job for the construction manager phase working with the architect’s plan is to come to an actual quote, Weston asked how the City knows that shopping that quote wouldn’t be in the best interest of the City. Cyr said it would be a Council decision. Simpson felt it would be ill-advised to shop a number and to bring in new firms unless there is a problem with performance. He noted that a contract would be structured with an actual cost, a fee plus a guaranteed maximum price. Bronson spoke about his concerns in making a commitment to be handed to the next City Council. He also expressed concern that a commitment has taken place. He also spoke of the need for a Council Workshop on this specific project. In the interim and with noticeable hesitation, Bronson said that he will support the two steps: preconstruction manager and architectural services. Nealley made a motion to approve staff’s recommendation for preconstruction manager services awarded to Cianbro. Weston seconded the motion. d. Architectural Services – Arena – Sink, Combs and Dethlefs Cyr said this recommendation is to award an architectural service contract to Sink, Combs and Dethlefs. This comes back in conjunction with the preconstruction manager st services as directed by the Finance Committee on April 21. The recommendation is for only through schematic design at which point all parties would have an opportunity to revisit the relationship and to continue at the City’s and contractor’s option. The fee structure for schematic design is only 6.5% of 15% of established cost. Cyr assured Bronson that the Council will have the opportunity to spend a great deal of time with the preconstruction manager and the architectural/engineering firm before they proceed too far into the project. They will need the Council’s input and established parameters. Once the schematic design portion has been completed, a scope will have been identified with clearly defined expectations. If at that time the City wants to continue on with Sink, Combs and Dethlefs, another contract would need to be negotiated and executed. Once the schematic design portion is completed, a guaranteed maximum price will be set. Cyr pointed out that the fees also include subcontractors, specialty engineering, telephone engineering, mechanical, electrical and plumbing, structural engineers, and landscapers to name a few. Dethlefs will work with the City on its input on subcontracting, use of local subs, etc. Staff’s recommendation is to award contract for architectural services up through schematic design level for an arena project to Sink, Combs, and Dethlefs. Responding to Wheeler, Cyr said the associated fee is approximately $390,000. In response to Nealley, Simpson said he did not know of anyone in Maine specializing in sports arena. He felt the City would be well served to go with a company with the best credentials and encourage them to work with local subcontractors. Nealley spoke of negotiating a different fee rather than the 15% of established cost. Simpson said he would recommend coming up with a fixed fee. Cyr said that the 15% is the industry standard of the amount of effort required to achieve schematic design in a construction project. As previously noted, Cyr said that Dethlefs is willing to drop the rate down to a 6% and/or look at a fixed fee. She does, however, have concerns that the City will be asking the team to do any number of iterations. Firms should be remunerated for services performed for the City. Young agreed with Simpson regarding a fixed fee. Weston made a motion to move staff’s recommendation. Assuming that staff will negotiate a fixed fee for the first phase of the project, Nealley said he would second the motion to award the architectural services contract to Sink, Combs and Dethlefs. Weston revised his motion to state that staff recommendation is moved based on the premise that an attempt is made to renegotiate a fixed fee. Cyr stated that she expects to have an answer prior to Monday night’s Council meeting and it is anticipated that an Order will be ready on Monday as well as a fixed fee proposal in accordance with the Committee’s desire. Wheeler said that he is not comfortable with a motion framed in such language. It seems to him, although he does not have a vote on this, that a more appropriate motion would be to authorize the Finance Director to negotiate a fixed fee and then to act on her recommendation which comes as a result to that negotiation. He feels that there are two motions being mixed together. Bronson then asked Cyr if within a week she could be back with a negotiation completed. Cyr said yes. Weston withdrew the prior motion and moved that the Committee authorize the Finance Director to negotiate a fixed price with said architect and return to full Council. The motion was seconded. Bronson admitted that he feels more comfortable with this discussion to include the comments from Mr. Simpson regarding an authorized committee. Palmer wanted to note that the City is somewhere near $600,000 in these two motions and wanted to also remind the viewing audience this is not coming from taxpayer money. He said that this is the arena fund and is coming from money that has gone through the machines at Hollywood slots as part of the agreement. If it was not for Hollywood Slots, this discussion would not be taking place and there would be no the funds to move forward. A motion was made to move into executive session. 3. Executive Session – 1 MRSA Section 405 (6)(E) – Workers’ Compensation Settlement A motion was made and seconded to move into Executive session. 4. Executive Session – 36 MRSA Section 841 (2) Hardship Abatement 5. Open Session a. Hardship Abatement Decision b. Workers Compensation Settlement Recommendation A motion was made and seconded to approve staff’s recommendation. Adjournment: 6:45 pm.