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12/02/77 SP City Council Minutes",IN THE HEART OF THE NATION'S PLAYGROUND" BOX 1035 KALISPELL, MONTANA 59901 00 THE HONORABLE BOARD OF COIINCILMEN `ITY OF KALISPELL, MONTANA GLUTLEMEN: ibere will be a Special Meeting of the City Council, Friday, December 2, 1977 at 12:00 a. M., Noon in the Trails 94Rocm, Outlaw Tsui, for the following purposes: Award Bid for New City Hall Complex z, the undersigned, being all of the members of the City Council, do hereby waive notice f the date and purpose of the Special Meeting of the City Council to be held Friday, Francis T. O'Boyle Norbert F. Dogbhue, City Attorney Acting Mayor Daley presided. All councilmen were present. City Attorney Donahue out of town. Acting Mayor Daley stated that he would call on each councilman for comment before en.tertainin• a motion to award the bid for the new city hall complex. 61 1 1 Finance Director Nystul explained that there is a difference of approximately $300,000.00 between the bid and the amount of the EDA grant. The architect and department heads have worked out -change orders deleting about $100,000.00 The City will ask for approximately $40,000.00 of Omnibus Crime funds since a new jail is involved. The bid for the storm drain project has an underrun of $84,000.00 and the -following letter has been drafted for council approval asking that these funds be transferred from the storm drain projec* to the city hall project: ",IN THE HEART OF THE NATION'S PLAYGROUND" BOX 1035 KALISPELL, MONTANA 59901 December 2, 1977 Projects: 05-51-26637 05-51-20682 Mr. Drew Bodnar Economic Development Administration 1531 Stout Street Room 333 Denver, CO 80202 Dear Mr. Bodnar: We request that the above projects be amended by transferring $98,400.00 from 20682 (storm sewer) to 26637 (city hall). This will utilize an underrun on the storm sewer. The requested budget changes are as follows:. Project 0S-5120682 PRESENT BUDGET. Administrative Expense $ 8,000 Project Inspection Fees 47,000 Construction NLabor 464,000 Non —labor 821,000 Project 05-51-26637 Construction (a) Labor 445,000 b Non —labor 544,500 :NWI al, :1," NQ $ 4,000 37,000 424,000 776,600 49o,000 597,900 These changes are justified in that the storm sewer bid is $84,400 under the project budget. The inspection fees and administration budget included salaries that were to be paid city employees working on the project. Since these are not eligible costs, they will not be utilized on the project. The city hall project bid came in at $317,000 over budget. Utilization of underrun funds available in the storm sewer project will reduce the amount of funds required locally to complete the subject. Due to the project start time involved, an urgent consideration and reply is requested. FWD/mg Very truly yours, Forrest W. Daley, Acting Mayor `?62 There have been two telephone conversations with EDA, but no firm committment from EDA will be forthcoming until our request is made in writing. Councilman Grainger moved to rescind the motion made at the November 28th meeting giving the City Development Committee power to act on awarding the bid for the new city hall. Seconded by Councilman Williams. Motion carried. Councilman Grainger explained that since the bid was so much over the grant he felt the whole council should make the decision. Acting Mayor Daley called on each councilman for comment. Each had a few reservations about awarding the bid without a guarantee that the transfer of funds would be approved. They all agreed that we need the new facilities and that we do not want to lose the grant. The time element for staring the project forces the bid awarding at once. Councilman Griffin stressed the fact that after interviewing every architect in,the valley. John Schwartz was picked by the entire council as the best for this project. The plans are good and the Spokane Architects who are assisting are good. He stated that he was not in favor of using all revenue sharing funds for the deficity but would rather see more cuts in the building. Councilman Allen stated he felt we should go for the building and commit future revenue sharing funds. Councilman Williams, Chairman of the Finance Committee, stated that he would favor going ahead, but with 3 conditions — (1) to approve the request to EDA on transfer of funds; (2) to adopt ways of facing the cost overrun to reduce the deficit to $115,000.00; (3) to award the bid on these conditions. Councilman Williams moved that the City commit itself to cost overrun based upon the following: Change orders from the Contractor in the amount of $100,000.00 be included to lower the overrun; the storm sewer transfers of approximately $100,000.00 be included to lower the overrun; an LEAA grant or other grants that may come up be included to reduce the overrun; an attempt be made to secure a waiver of $50,000.00 in contingency to reduce the overrun bringing us down to $115,000.00 to be made up with revenue sharing funds. In event any of these sources to reduce our cost overrun are not available to us, that we put in like manner change orders on the contract to cover cost of unavailable funds. Seconded by Councilman Allen. Rich Hadley, Executive Director of the Chamber of Commerce, asked if these monies do not come in, can you do it. Councilmen explained that you can go to the vote of the people and ask for general obligation bonds. Mr. Hadley asked if it would not be a good idea to ask our representatives in congress to assist. Bill Janes, of Stewart & Janes, low bidder on the contract, stated that he has done five - EDA projects and has had transfers on three of them. He also felt that there is lots of time for changeorders. Councilman Grainger moved to amend the motion to read "change orders may only be made with the approval of the City Development Committee". Seconded by Councilman Griffin. Question called. Roll call vote. All voted aye. Councilman Williams moved to approve the draft letter to the EDA requesting bransfer of monies from the storm drain project to the city hall project. Seconded by Councilman Grainger. Motion carried. Councilman Williams moved that the bid be awarded to Stewart & Janes and that Acting Mayor Daley be authorized to sign the contract. Seconded by Councilman Allen. Roll call vote. All voted aye. Councilman Allen moved to adjourn. Seconded by Councilman Griffin. Motion carried. Minutes approved as presented December 19, 1977. ATTEST: Forrest W. Daley, Act' yor C l(h_i ` Mar brie Giermann, Deputy City Clerk 1