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.