Chief DuCharme explained bids for the East Side Station had been opened on September 30, 2003, reviewed by Kraus-Anderson, and were being presented to the Board for discussion this evening. Chief DuCharme noted the presence of John Boerboon, of Kraus-Anderson, to answer any questions the Board may have had regarding the bidding process.
Boardmember Bolles questioned the excavating figure submitted. Mr. Boerboon stated he was surprised there were not more bids submitted as it had been his expectation that at least five bids were to be part of the bidding process. He noted over eighty letters had been sent soliciting bids for the project.
Boardmember Hill questioned the likelihood of soil boring issues with the site. Mr. Boerboon explained engineers from Braun Engineering had taken site condition testing. Chief DuCharme stated eight samples had been taken with 6 near the parking area, and 2-3 taken in the site pad area. Boardmember Skrede questioned why other samples had not been taken in the site pad area, and if items could be rebid. Mr. Boerboon stated due diligence had been taken in the process, but the bids could be rejected at a cost to delay the project. EDA Executive Director Dawson stated the statutory process for the bidding would delay the project for at least 6 weeks. He further stated he was concerned about the impact delaying the first step would have on the overall project, as it would hold up all the subsequent steps in the process as well.
In response to Boardmember Hill’s question regarding the change in the General Conditions Budget, Mr. Boerboon reviewed the history of the project’s contractual obligations, noting Kraus-Anderson was hired to build the East and West Side projects simultaneously. As that was not the case and construction of the East Side Facility would not be completed prior to March 2004, additional cost was assumed as part of the General Conditions Budget. Boardmember Bolles questioned how that delay related to the assumed increase. Mr. Boerboon explained how the cost of management of these projects was tabulated for the budget.
Discussion ensued regarding the notification to the Board of added cost to delay in managing construction of the projects.
Executive Director Dawson stated a policy decision had been made by the EFD Governing Board to delay the East Side project to bring resolution to issues of concern.
Chair Keller stated he had no problem with the increase in the General Conditions Budget, but he would like to see how the budgeted amount was tabulated per month to better understand how these costs were accumulated. He also stated there were many areas of concern at the time consideration was being given to the East Side Facility. He stated that facility was being built for all five cities involved in the Joint Powers Agreement, and he thought it time the Chief be allowed to determine the needs of the building and allow the project to move forward. He stated it was important for parties concerned with the cost of construction to become more involved and learn more about the project and its associated costs. He stated he, too, was concerned for a single excavation bid being submitted, however; he had no problems with the bids submitted. He stated the City of Deephaven had the choice of siding and exterior qualities, but it was important to allow the EFD Chief to decide what to put on the inside.
Chair Love stated he believed all members of the EFD Board needed to assume some responsibility in determining why the project was delayed, however, more importantly, was how to make the next step into the construction of the East Side Facility.
Boardmember Skrede stated he was concerned it appeared the project had been delayed as a result of actions taken by the City of Deephaven, and that was not the case. He stated the bid pack could have been generated in May and the project could have moved forward by now without additional cost. He stated he was disappointed the leadership staff in the project had not brought the additional expense associated with delaying the project to the Board earlier in the process.
Chair Keller questioned what monies could be saved to delay the project further by rejecting bids and asking them to be rebid in the spring of 2004. Mr. Boerboon stated Kraus-Anderson could finish construction of the West Side Facility and stop billing for construction management if no action was being taken on the East Side Facility. He noted there was risk involved in this action as bids could increase for the next construction season as well.
Boardmember Bolles questioned Boardmember Skrede on his position to move forward with the project. Boardmember Skrede stated the City of Deephaven was not interested in slowing the project at this point. If the bidding process would not be changed, nor would there be any guarantee that the bids or management fees would be lower, there did not appear to be any advantages to waiting until next year. Boardmember Skrede went on to state he was not prepared to vote on these bids this evening as he remained concerned about the issues pertaining to providing water to the East Side Facility as well as the General Conditions Budget and a single excavation bid submitted for review.
Chair Love stated he would like to see a delineated letter demonstrating costs incurred for the project as part of the General Conditions Budget. He stated he also wanted to follow the process for moving forward with the project, including having the City of Deephaven act first, and then the EFD Governing Board. He also stated he did not want to risk waiting too long to begin construction, and it was his intent to vote on these issues at the next meeting of the EFD Governing Board.
Skrede moved, Hill seconded, Directing Staff to Solicit, from John Boerboon of Kraus-Anderson, an electronic copy of an analysis of the General Conditions Budget amount and an analysis of the excavation bid as provided by the bidder for the East Side Facility.
