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.
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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
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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
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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
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