SPECIAL COUNCIL MEETING

June 5, 1978

A Special Meeting of Council to consider bids submitted for Phase II of the Downtown Revitalization Program was held on June 5, 1978 at 7:30 p.m. with Mayor Legates presiding. Councilmen present were Messrs. McDonough, Weyandt, Muir, Hardcastle, Carey and Witt. Councilmen Carson and Bewick were absent.

In the absence of the Reverend J.H. Williams, Mayor Legates dispensed with the invocation.

Acting City Manager Hodge referred the report of the bid opening for Phase II of the downtown revitalization to Mr. James for a detailed explanation.

Mr. James reported that a single bid from George and Lynch was received in the amount of $819,122.35. Approximately $245,000 has been expended on the first phase. He stated that the bid for the second phase came to $572,095.55. He stated that the bid for the second phase exceeds available funds by some $246,000.00. When the overage in the bid submitted by George and Lynch became obvious, no further bids were awarded and the project now remains dormant until further consideration by Council.

Mr. James contacted the EDA office in Washington and was informed that the City could reject the bid but this would involve additional time which requires special permission from the federal level to re-advertise for bids.

A second alternative would require that the City furnish the additional funds needed to complete Phase II.

If it was decided to scrap the entire project, the City would be responsible for any monies already expended.

Mr. James expressed a desire to discuss a fourth alternative with Council, which could include possibly the engineers, that might be a viable solution.

Questioned by Mr. Hardcastle and Mr. McDonough, Mr. James stated that a review of each item on the bid has been conducted and certain unessentials deleted.

Resulting from a request by Mr. Witt, Mr. Ryan of Mann-Talley stated that the difference between the bid price and the engineering estimate was probably due to the following items:

1. The federal requirement for minority contractors and the engineers estimate and submitted contractors price on the electrical phase of the project.

2. Only one bid was submitted and Mann-Talley cannot surmise if the figures for other items are a result of the requirement for minority participation.

Mr. Ryan stated that electrical bids have been running 15% to 20% over projected estimates. The electrical contractor bidding on Phase II is a minority organization. This was the only explanation that he could submit at this time.

Mr. Hardcastle took exception to Mr. Ryan’s reasoning on the bid as submitted, citing similar projects that are now under construction that were below engineering estimates. He suggested that more homework is required to guarantee that more than one bid will be submitted and thought it would be wise to rebid the project.

Mr. McDonough found it hard to believe that the overage on the bid could be contributed to minority contractors and suggested a study of each bid item submitted by George and Lynch. He also favored re-advertising the bid after a study and elimination of certain items.

Through conversations with federal agencies, Mr. James thought that EDA officials would act quickly on a request to rebid the project or convey an indication on what decision would be made. This would probably mean an extension on the completion date to July 1, 1979.

Mr. Witt moved to freeze any payments on the project until such time that Council approves a method of action. The motion failed for lack of a second.

Mr. McDonough moved to petition the federal government to facilitate permission for a delay in the completion of the project to afford proper time to re-advertise and cut the scope of the project.

Mr. James suggested a delay in such action to allow time for a study of the project that would eliminate certain items. It was his thought that alterations in the project might involve redesign.

Mr. McDonough’s motion failed for lack of a second.

Questioned by Mr. Weyandt, Mr. Woods stated that the project was bid on an itemized unit price basis which contained some 200 units.

Mr. Weyandt advised consultation with the federal agency before any action is taken.

Mr. Weyandt moved to table action on the project with further consultation with the City Manager and additional background information. The motion was seconded by Mr. Carey and carried by a vote of five (5) yes, one (1) no (Mr. Witt).

It was noted that the bid by George and Lynch contains a thirty (30) day response stipulation.

Mr. Weyandt moved that Council meet with the City Manager within seven (7) days at the call of the Manager. The motion was seconded by Mr. Carey and carried by a vote of five (5) yes, one (1) no (Mr. Witt).

Meeting Adjourned at 8:15 P.M.

                                                            William H. Willis

                                                            City Clerk

Charles A. Legates, Jr.

                                                            Mayor

June 8, 1978

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