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HomeMy WebLinkAbout2005-08-01 Finance Committee Minutes FINANCE COMMITTEE , August 1, 2005 @ 5:00 p.m. , Minutes Councilor Attendance: Cashwell, D'Errico, Hawes, Gratwick. Farrington, , Tremble Staff Attendance: Barrett, Little, Dawes, Winslow, Gastia, Hupp, Caruso Others: Barker, Residents of 7�' Street, McCarthy, Clemons, � Representatives from Rich & Associates and Walker Associates 1. Consent Agenda , Cashwell noted that item b is recommended but the City has to clear up a sewer � lien against the property. A motion was made and seconded to approve the consentagenda. a. Quitclaim Deed — 21 Martel's Park —Thompson � b. Quitclaim Deed — 222 Howard Street — 0'Conner c. Workout Agreement— Lot 145 Cedar Falls — Roy � ' 2. Bids/Purchasing a. Skid Steer Tractor — Motor Pool — Jordan Equipment - $28,768.23 � A motion was made and seconded to approve staff's recommendation. b. Trailer Mounted Brush Chipper— Motor Pool — Nortrax - $37,767 � A motion was made and seconded to approve staff's recommendation. � c. Police Patrol Crusiers — Motor Pool — Kallis Ford Chrysler Jeep - $45,338 Per Councilor Gratwick, discussion took place regarding local and out of town � purchases. Barrett explained the specific policy is award bid to the lowest responsive bidder. In evaluating the bid, staff does look at other factors that might impact the City's cost over time. In the past there has been very close , competition between a Bangor business and a non-Bangor business where staff identified some additional costs that would make it more advantageous to staff with the local vendor. � A motion was made and seconded to approve staff's recommendation. d. Police Station — Police — Nickerson & 0'Day - $6,776,143 , Barrett said the original estimate for construction in the range of $6.2M, The Police Chief, WBRC, and Nickerson & 0'Day have been looking at the bid � specs and alternate bid items included and other options. Some detailed analysis on other options is still in progress. Winslow said that 13 add alternate items were broken out in anticipation that the bid would come back , higher than it did. Those are: a) The public address system, adding speaker the phone system — recommend. , , ' b) $91,447 for storage, condensed file system for achieved and active files and ' evidence handling — recommend. c) Masonry veneer upgrade — due to an error on the part of the contractor, he will "eaY' several thousand dollars. Recommend upgrading to real brick. � d) Roller shades — the least expensive for window treatment. Recommended. e) Range hood/exhaust system — recommend a stove with oven and burners. The fire marshal requires an exhaust system vented to the outside up through the roof. Recommend. , � Storage lockers and equipment. Recommend removing and seeking grant monies. If not successful with grant, items can be added without � construction costs to the building. Monies will be needed to purchase the lockers and equipment. g) The innergin system upgrade, which is a chemical fire suppression system, � used in areas where computers are located that can be damaged by water. There are three areas in the building but it is a must in the IT room. The upgrade would include the forensic lab and in dispatch. Winslow said they ' have opted to remove those areas and, at minimum cost, can do a dry sprinkler system that will prevent an accidental water discharge. ' h) Evidence lab equipment — holding out for a grant that the Finance Committee has already approved application for. If the grant isn't received, it will cost more to place the equipment. Those items that need to be ducted to the � outside ($29,000) will be left in the project but potentially it will be removed if grant monies are received. The remaining $11,000 is equipment that the Chief will be added later on without major renovation required. M i) Hoping for Homeland Security monies. $28,885 will be removed. Roof warranty upgrade. $2,100. Recommend keeping. j) Indoor firearms range and heat ventilation system. This came in higher than � anticipated at $335,448. Preliminary figures were $200,000. Recommending to back out of the computerized range operation. Will be around $60,000. Would like to go ahead with the ventilation system, the range itself, the bullet ' recovery system. k) Anti-static flooring stays. It is in dispatch. ' I) Site security bollards, a series of granite posts with chains around the main entrance to the building, Recommend to remove at this point. Hoping for Homeland Security funding. , In addition, Winslow said that Nickerson & 0'Day has been diligently working with WBRC regarding items to save estimated at $195,319. It is called "value � engineering." As an example, Winslow cited a series of pipes recommended to be copper or steel, which can be replaced with pcv schedule 40 pipe and save $20,000. The bottom line construction cost is $6,474,077. The staff , recommendation is to award the bid to Nickerson & 0'Day for construction costs not to exceed $6,474,077. � In response to Gratwick, Barrett said the City would bond the project. The Council has authorized $7.5M in bonds to date of which the City has issued ' � $5.4M. An additional bond authorization will be required at some point to cover ' other costs associated with this project. This should be approximately $750,000 , to $1M. Will also need funding to demolish the existing police station. Matt , Carter, WBRC, spoke about the projecYs budget. Acquisition of the radiator shop is another $200,000. Tremble asked if drug seizure money could be used for any of the option � items. Winslow indicated he has $12,000 available. Responding to Farrington, Barrett said the undetermined amounts associated with items still under , consideration would not be significant. There is a construction contingency included in the budget that will not be known until construction is completed. It should be closer to $8.4M in total, which does not include the demolition of Court � Street. The fourth story to the building will stay in the project. Tremble asked about the clerk position and Barrett said that WBRC will make a proposal to the � City Engineer for review. Ring's estimate of $68,000 was to hire an individual at the high end. Gratwick spoke of the savings with regional dispatch. Winslow said a space has ' been programmed for the communications center, supervisor's office, a small locker room and bathroom. The space will still exist regardless of the Council's , decision on regional dispatch. Winslow is quite confident that the actual computer equipment and dispatch equipment itself will be funded through Homeland security funds. If the dispatch goes to the counry, Winslow � recommends the installation of two consoles so that in en emergency the department can dispatch for police and fire for Bangor. The area would probably become an emergency operations center rather than using the classroom � upstairs. Gratwick asked about the cost differential if the Council makes a decision on regional dispatch. Gastia said there should be no impact as the room �, will be in place, it will exist. Cashwell spoke of the contingency for overruns and the policy of work orders not ' included in the bid. Barrett said in most projects there is a contingency for change orders, which are approved by the department involved and by the Ciry Manager. The contingency for this project is 5%. � A motion was made and seconded to approve staff's recommendation. This item will be on the August 8�' City Council meeting for final adion. � 3. Request to Waive the Bid Process for Plow Trucks and Plowing Equipment � Dawes explained that purchasing two plow trucks and two plowing packages now would result in the City acquiring the equipment at last year's prices at , $94,703/each for a total of $284,109. A motion was made and seconded to approve staff's recommendation. 4. Request to Purchase 49 & 51 Seventh Street ` Hamer explained the situation, as outlined in a memo with the agenda, indicating there are two competing proposals before the City. For density reasons, staff � , , recommends the property in question be divided amongst the abutting property owners. Abutting property owners were in attendance, and Sharon Barker, 47 1 �cn Street, represented the group. A motion was made and seconded to authorize staff to negotiate in a fair manner to divide the property between the 1 abutting owners for a total price of $7,500. Cashwell asked that staff research the previous payment of taxes as to who paid what amount. Hamer said this will need to come back to the full Council for final action. Little said he would check � with the legal staff regarding payment of past taxes. Under state law, the city can only refund up to three years but the Council has the right to refund any amount due to the City. � 5. Request to Enter into a Lease Agreement— Bass Park — American Folk Festival � Heather McCarthy presented her request. A motion was made and seconded to enter into a lease with the American Folk Festival to charge $5/day or � $10/weekend for parking associated with the upcoming Festival. The parking will be handled by Republic Parking. The OTB will be operating at the grandstand that weekend as well and that parking arrangement will be taken ' care of. 6. Request to Enter into a Professional Engineering Service Agreement— � Airport— Re-Construction of Terminal Apron Phase IV The contract includes design fees of $161,933 and construction administration and resident engineering fees of $157,229 including approximately $30,000 for � materials testing to insure that design requirements are met. A motion was made and seconded to recommend approval with the request that additional information be provided on the location of the work and background on the ' engineering services selection process. This project will be funded through the Airport's Passenger Facility Charges which assesses each ticketed passenger a $3 fee for capital improvements. The improvements to be funded must be in � accordance with a plan approved by the FAA after consultation with the airlines using the facility. Edwards and Kelcey is the airport's design consultant for a � period of time (3 to 5 years). This was designated through the RFP process. So all design work automatically goes to Edwards and Kelcey. Gratwick asked for further information on the bid process. Barrett reviewed specific FAA ' regulations. D'Errico said the ramp is 48 years old and Edwards & Kelcey has performed prior work on the ramp. A motion was made and seconded to approve staff's recommendation. This item will appear on the August grn � Council agenda. D'Errico asked Hupp to explain the source of funds that pays for all of the major construction projects. Hupp reviewed the FAA and AIP funding programs. Barrett and Hupp will meet to review the questions brought forth and ' return to the Committee. 7. Request to Seli Deicing Truck - Airport 1 Caruso said the airport has received a new environmentally friendly de-icing unit. Training has started. It was purchased as a replacement vehicle for one of the 1 three de-icing units currently in the airport's fleet. The Airport would like to take ' unit #41 out of service. It was purchased in 1989. Staff determined that smaller � airports might have an interest in purchasing it. BIA was approached by , Superior Ground Support Equipment in New Brunswick, which inspected the vehicle and offered $48,000. It also includes spare replacement parts. A motion was made and seconded to approve staff's recommendation. � 8. Discussion — Airport Parking Garage Cashwell noted that at the last Finance Committee meeting a presentation was , made on this issue. He felt there was not complete information regarding cost pricing. Due to the lack of a complete proposal and finding there were costs in question of a half million, Cashwell thought it prudent to bring the proposal back � for a more thorough discussion. Hupp reviewed the selection committee process. The committee included staff, Republic Parking, and the Purchasing � Agent. In protecting the best interests of the airport and the Ciry, the committee wanted to select the best company based on qualifications, experience, similar projects, and staff assigned to the project. The committee looked at parking � design, access design, and critical areas. In relation to FAA projects, price is generally not a factor when dealing with airport projects so it was not initially included in the RFP. It was strictly based on a qualification scenario recognizing ' the city's desire to be cost conscious and recognizing the City's desire to select local firms when everything else is equal. It was the unanimous consensus of the selection committee that the best proposer was Walker Boston. Because it � was non-FAA, the committee was able to consider price. As a result, the top three firms, which had been rank ordered by the selection committee, were asked to submit price estimates. These estimates were intended to allow the � Committee to evaluate pricing against the rank order preference to determine whether any change in this order was justified and that the price proposed by , the preferred firm would not be prohibitive. The cost appraisal was intended only to confirm the recommendation, not to become a bid. The memo from the Purchasing Agent outlines the assumptions upon which the firms were asked to � develop their cost estimates. Please not that some of these assumptions may not come to fruition; i.e. a ground level walkway, poured in place or precast. Parke Clemons, Republic Parking, provided an overview of airport parking ' indicating it is very unique and complex. In looking at the proposals, he said the selection committee's bottom line was the best company for Bangor to result in a superior project. He is concerned with the functionality of the system; all else � can be negotiated. He spoke of transiting the Raleigh/Durham airport recently with an incredibly functional airport parking system. Clemons spoke of working with Rich and Associates on the downtown parking garage. Has not had ' experience with Walker. Clemons felt that Walker's proposal is structured so that they are partnering with Harriman and Associates of Auburn and with Hoyle , Tanner out of Manchester. Rich has partnered with Ames Engineering. In airport parking, expertise is a must, and Walker has that experience. Gratwick asked if anyone had seen structures constructed by either firm. Portland's was , created by Rich, very functional but expensive. Walker did Auburn's. Walker had designed the Raleigh Durham structure. � i � Responding to Cashwell, Hupp said this project will be paid for through a bond which will be covered through Airport revenues. The cost of the design phase � was included in this year's budget. The FAA will not fund a parking garage, nothing that is a revenue producing area. ' Tremble asked about letters of recommendation for the firms. Hupp said only Walker's references were sought as the selection committee chose that firm and , the references came back very positive. Responding to Tremble, Clemons said he look at the overall experience of the � firms as the bottom line. Tremble asked if the concentration was in just airport parking structures. Clemons said he looked at airports. � In answer to Tremble regarding Walker vs. Rich, Hupp said that Walker has a .2% design change order. The industry average is 2-3.7%. It was a factor considered by the selection committee. � Clemons' experience with Rich had not been smooth in dealing with the � downtown parking garage in 2001. Gratwick asked him to be specific; i.e. design, execution, attention to detail, engineering, availabiliry. Clemons spoke of the need for him to become involved in design management and engineering � type questions, which was not his responsibility. Rich's response time was not good either. They were not aggressive and proactive. Clemons did state that the final product is a well designed parking structure. tRepresentatives from Rich Associates and Walker Parking both addressed the Committee. � The Walker representative said he understood the process to be a qualification- based process to be followed by good faith fee negotiation based on the final ' agreed upon scope of services. He said it is a bit unusual to ask for a fee once the process has occurred, but Walker is okay with it. The biggest issue is that it , is difficult to put a scope onto the work to prepare a fee estimate. Using the assumptions outlined by the City, he is confident the proposal is fair and provides a high level of service and design. Regarding the proposal, Walker had ' suggested a 5% fee range based on construction costs. Walker is the largest firm nationwide specializing in this area, has the largest presence in New England, is currently working on three other airports in the region, and has done more parking in Maine than any other firm. Walker has teamed successfully with ' Harriman on several occasions (Auburn and Augusta). Hoyle Tanner has the highest qualifications and most experience in airport work in New England. ' Walker's assumption for the project is $15,000/space at 500 spaces, which represents $7.5M. If something is different, Walker can work with it and equitably adjust. Gratwick asked about errors on the part of Walker. Walker � said they are not perfect, but don't make the same mistake twice. Walker has written a textbook on airport parking, which could be ordered on line or through � the local library. Walker's change order history is less than .2%, which is lower ' than industry standard. Tremble asked a question about the 2-3.7% , contingency. Walker said he would follow through and provide information to � the Committee. Barrett said there is a combination of factors that cause change orders, but a lot of it is design-driven. The Rich and Associates representative addressed the Committee. Mr. Rich took ' exception to Clemon's comments regarding Rich's perFormance with the downtown parking garage. The Rich firm had been asked to minimize their , travel expenses and was not always on site. Sturgeon, from Ames AE, spoke. He referenced that the selection committee's choice of three firms, indicating all were very capable of the design and, because of the closeness and capabilities of � the three firms, the selection committee chose to ask for cost proposals. Sturgeon said he wished he had known at that time that the committee had � made a selection for a prime firm based upon qualifications. His issue is that at that point the firms were asked to produced a very accurate cost estimate which took time a money just to see if it was a balipark price. He doesn't understand � that process, how was Ames AE categorized as a capable firm with 10-12% lower costs and not be chosen? He thinks there are issues missing in each proposal. , After considerable additional discussion, the Committee requested that staff undertake a more extensive review of the references of both Walker Boston and � Rich Associates and return this information to the Committee at a future meeting. 9. Assessor's Update — FY 2006: Item Postponed to Next Finance Committee , 10. Executive Session — Hardship Abatement— 36 M.R.S.A. Section 841 (2) , A motion was made and seconded to go into Executive Session. , 31. Open Session — Hardship Abatement Decision , The Committee voted to approve the abatement as recommended by the � Finance Director. � , � � ,