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HomeMy WebLinkAboutMinutes - City Council - 1998-07-13 188 City Council, Special Meeting Council Chambers 1313 California Street Redding, California 96001 July 13, 1998 The meeting was called to order at 5:00 p.m. by Mayor Kehoe and recessed at 5:05 p.m. to provide additional time for individuals to arrive at the Council Chambers to attend the meeting. The Meeting was reconvened at 5:15 p.m. by Mayor Kehoe with the following Council Members present: Anderson, Cibula, Kight, McGeorge and Mayor Kehoe. Also present were City Manager Warren, Assistant City Manager Perry, Deputy City Manager Starman, City Attorney Wingate, Development Services Director Swanson, Assistant City Engineer Russell, Finance Manager Strong, Personnel Analysts II Sciarra and Niemer, City Clerk Strohmayer and Executive Secretary Sherman. CONSIDERATION OF BIDS RECEIVED FOR CONSTRUCTION OF CIVIC CENTER (B-050-020 & C-050-025) Assistant City Manager Perry reviewed in detail the Report to City Council dated July 9, 1998, incorporated herein by reference, regarding the award of Bid Schedule No. 3204, City Council Chambers and City Office Building (Civic Center, Phase II) project. Mr. Perry provided a chronological report of the history of the Civic Center project beginning with a report and recommendations from the Civic Center Committee which concluded that a new civic center was needed. Mr. Perry produced an overhead slide presentation depicting the site location for the civic center and the area encompassed by the project of approximately 45.54 acres on Parkview Avenue. Mr. Perry reported that in response to a request for bids for construction of the new Civic Center, Phase II, eight bids were received and tightly grouped with respect to the amount bid. Mr. Perry explained that Allen L. Bender, Inc., submitted the low bid at a cost of$15,147,778, 10% higher than the cost estimator's estimate of$13,850,000, and 5% to 6% higher than the cost estimate guidelines provided by the Civic Center Committee of$14,340,666. Mr. Perry advised that Council must now decide how to proceed, and he reviewed the following options: 1) Reject all bids and (a) drop the project; (b) direct staff to redesign the project at a lower cost; 2) Award the bid to the low bidder, Allen L. Bender, Inc., in the amount of$15,147,778; 3) Award the bid and direct staff to negotiate deductive change orders of up to 10% to bring the cost into conformance with the cost estimator's estimate, plus a 5%bid contingency, or approximately $13,850,000; 4) Award the bid and direct staff to negotiate change orders of 5%to 6%to bring the cost within the limit assigned by the Civic Center Committee for construction, plus site work, audio visual, and security systems, plus a 5% bid contingency, or approximately$14,340,666; 5)Defer consideration until the Project Manager obtains pricing information from subcontractors in order to value engineer potential changes in order to make a selective decision; and 6) Ask the Civic Center Committee for a recommendation now that the building is designed and bids are received. Mr. Perry reviewed existing problems within the current City Hall building which will be mediated with the new Civic Center, and he also reviewed the funding formula and break down of funds for the new Civic Center project. City Manager Warren acknowledged that the Redding Civic Center project has been discussed, studied and debated in the community for over two decades since it first became apparent that a new civic center was needed. Mr. Warren explained that past efforts failed because the project was not citizen driven; however, on this occasion, citizens were involved in the process and on February 25, 1997, the 25-member Civic Center Committee (Committee) was formed, and after review and study of the existing City Hall, concluded that a new civic center was necessary. The Committee worked long and hard to provide a successful direction for the City, and staff worked diligently to plan a tasteful, modest, functional building, and to save money. Mr. Warren pointed out that the civic center will not be just a City Hall building, but a community center with many public uses, as well as bringing the outlying City locations together. Mr. Warren advised that the only distinct issue Council 7/13/98 189 must deal with is to build or not to build. Mr. Warren emphasized that the civic center will be built within the financial parameters set by the Committee and City Council; and although it would be nice to build it as planned, he assured Council that the project will not go over budget. Mr. Warren expressed support of staffs recommendation to award the bid to the low bidder and immediately begin discussions on deductive change orders to reduce the project cost. Mr. Warren explained that the reasons for his recommendation are: 1) The architect is responsible for the modifications at no additional charge; 2) the City incurs a risk in rejecting the bids and rebidding the contract because there is no assurance that the bids will be lower; and 3) the deductive change orders will bring down the cost. Mr. Warren concluded that the City has many projects waiting, and he recommends Council move forward on the civic center. Mayor Kehoe invited comments from the floor. John Dunlap, 4211 Frances Drive recalled that he was very vocal in his objections to the $23 million civic center project proposed a few years ago. However, he no longer has reservations with proceeding because this project is well thought out and well planned. Mr. Dunlap pointed out that the close grouping in bid amounts proves that the value is there. Mr. Dunlap urged Council to Award the bid. Don Gallino, Donald F. Gallino Construction, Inc., 4784 Alta Camino Drive related that he submitted a bid on the civic center project and spent a great deal of time preparing his bid. Mr. Gallino recognized that the low bidder bid a fair amount on the project and urged Council to award the contract in the full amount. Mr. Gallino added that he, too, had objected to an earlier proposal to build the civic center in the Benton Ranch area. However, this project has merit and is well planned. He urged Council to go forward. John Fitzpatrick, 822 Northridge Drive cautioned Council regarding negotiations for deductive changes in building structure or design which may create unforseen problems in the future. Mr. Fitzpatrick agreed that the budget established for the project should be respected, but eliminating things which will affect the original design appearance of the building or structural requirements would be unwise. Wayne Nadon, Project Manager for the Civic Center asserted that he is not in favor of rebidding the project, citing increased costs and time implications if it is rebid. Mr. Nadon also warned of the possibility of losing local subcontractors who will commit to other projects if the civic center is delayed by rebidding. Dave Scott, 1056 River Ridge Drive advised that he was also representing Ward Gandy who was unable to attend the meeting, and he informed Council that they are in favor of awarding the contract and moving forward with the project. Dwight Bailey, 941 Mussel Shoals Drive, Shasta Lake City, expressed concerned regarding the use of$2 million in redevelopment funds on the project, and the fact that the ground work price has increased from original estimates. Mr. Bailey requested that Council review the propriety of using redevelopment funds for the civic center project. Richard Chapek, Chief Estimator for Allen L. Bender, Inc., asserted that his firm worked hard to win this bid award and they would be proud to build the civic center for the City. He stressed his willingness to work with staff and do whatever is necessary to build the project. Council Member Kight recused himself from discussion and voting on this matter. In response to Council Member Anderson, Mr. Chapek suggested several areas suitable for reductions which are strictly cosmetic in nature, adding that he could easily visualize $1 million in reductions without affecting the integrity of the structure. Mr. Warren asked what assurances the City has once reductions are in place, that the dollar-for-dollar value will remain. Mr. Chapek responded that he represents the owners of Allen L. Bender, Inc. and he has the authority to speak for them. He asserted that his firm is an honorable one, and assured that the City will receive dollar-for-dollar value. Mr. Chapek added that the Project Manager will be provided with a complete break down of prices. 07/13/98 190 Council Member Anderson asked if the November 1999 move-in date is reasonable. Mr. Chapek advised that his firm requires 340 working days, and the project should be completed on time barring unforseen problems or prolonged adverse weather conditions through the winter. Council Member McGeorge acknowledged that there is validity in not rebidding the contract. Construction jobs are plentiful at this time, and contractors are being selective in the projects they bid and are bidding them at the high end. Council Member Kehoe recalled that when the Civic Center Committee submitted its report, the projected size of the building was 67,000 square feet, and the estimated cost was far less than the low bidder's price. Mr. Kehoe conceded that the City needs a new civic center but costs and size estimates have increased as anticipated. Mr. Kehoe maintained that building an expensive structure will divert funds from other needed projects, and he cannot support moving forward with the project. City Attorney Wingate advised Council that two motions are required; the first should deal with the award of bid, and a second motion should be considered to deal with the deductive change orders. MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, awarding Bid Schedule No. 3204, Civic Center Construction Project, Phase II to the low bidder, Allen L. Bender, Inc., in the amount of$15,147,778. The Vote: AYES: Council Members: Anderson, Cibula and McGeorge NOES: Council Members: Kehoe ABSTAIN: Council Members: Kight ABSENT: Council Members: None MOTION: Made by Council Member Anderson, seconded by Council Member McGeorge, authorizing that deductive change orders to Bid Schedule No. 3204, Civic Center Construction Project, Phase II, be agreed upon by the City and Allen L. Bender, Inc., signed and issued within the 30 days after the award of the contract to reduce the bid price by 5% to 6%; and directing that changes made will not reduce the functionality of the building or prevent the project from complying with building and/or fire code requirements; and authorizing that a construction contingency fund be established at 5%to accommodate design issues, unforseen conditions, etc. The Vote was as follows: AYES: Council Members: Anderson, Cibula and McGeorge NOES: Council Members: Kehoe ABSTAIN: Council Members: Kight ABSENT: Council Members: None RESOLUTION - Rescinding Resolution No. 98-83, Regarding Employee Benefits Policies for Unrepresented Employees (P-100-246)-agQ--ICU Council Member McGeorge related that an issue brought before and adopted by the City Council at the regular meeting of June 2, 1998, regarding Amending the Employee Benefit Policy for Unrepresented Employees (Policy), is being reconsidered at this meeting at Council's request. Mr. McGeorge explained that following the meeting, he learned of community-wide concern and dissention regarding adoption of the Policy, and received numerous inquiries from the public regarding a provision included in the Policy which provided that the City would pay 100% of the health, dental, and vision insurance for the City Manager, the City Attorney and City Council Members who retire after at least eight(8)years of service to the City. Mr. McGeorge acknowledged that in retrospect, his decision to vote in favor of adoption of the Policy was not a wise one. Mr. McGeorge related that his decision was based on what he considered to be a minimal financial impact to the City's General Fund; however, what he did not consider was the perception of inequity by the citizens of Redding and City employees. Mr. McGeorge offered sincerest apologies for the oversight, concluding that he made a mistake and he would like to amend it. Council Member Anderson concurred with the sentiments expressed by Council Member McGeorge. Council Member Kight acknowledged that it is always gratifying to make the right decision, but the decision he made to vote in favor of adoption of the Policy was wrong and not well thought out. Mr. Kight pointed out, however, that when a mistake is made, the public will make their feelings known. 7/13/98 191 He conceded that it is never easy or pleasant to admit that a decision was wrong, but on this issue it was, and he would like to rectify it. City Manager Warren and City Attorney Wingate shared Council's sentiments, and supported deletion of the titles of City Manager and City Attorney from the Policy provision. MOTION: Made by Council Member McGeorge, seconded by Council Member Anderson adopting Resolution No. 98-107, a resolution of the City Council of the City of Redding rescinding Resolution No. 98-83, and revising a portion of the City of Redding Employee Benefit Policies for Unrepresented Employees relating to group health insurance coverage for positions of City Manager, City Attorney, and City Council Members, deleting therefrom the following sentence: "The City will pay 100% of the group health insurance for persons holding the position of City Manager, City Attorney, or City Council Member retiring with eight (8) or more years of service to the City." The Vote: Unanimous Ayes. Resolution No. 98-107 is on file in the Office of the City Clerk. ADJOURNMENT There being no further business, at the hour of 6:15 p.m., Mayor Kehoe declared the meeting adjourned. APPROVED: Mayor Keh:- ATTEST: ii�/ City Clerk 07/13/98