HomeMy Public PortalAboutMinutes - MURA - 2007-06-06City of McCall
Urban Renewal Agency
Minutes
June 6, 2007 — 8:00 am
McCall City Hall, lower level
216 E. Park Street
1. CALL TO ORDER AND ROLL CALL at 8:00 am.
Rick Fereday, John Watkins, Fred Drake and Don Bailey are present. There is a quorum
present.
Also present: Lindley Kirkpatrick, Steven Hasson, Mandi Roberts (by phone), Joe Samer,
Brock Heasley, John Larsen and Chuck Bloom representing Petra.
2. MINUTES — minutes were deferred to the next meeting.
3. APPROVAL OF INVOICES
Three invoices were presented.
a. Task order #36 from CH2M Hill
b. Two Star News invoices
Rick Fereday motioned to approve payment; seconded by John Watkins and Fred Drake;
carried.
4. McCALL LAKEFRONT IMPROVEMENT PROJECT
Don Bailey said that he was concerned that CH2M Hill had provided a summary of what
was budgeted and that he would like to see a fuller accounting of expenditures.
John Larsen handed out a financial report on a spreadsheet and he noted that the Urban
Redevelopment Agency had a balance sheet as of April 30, 2007 of $210,000 but that
the balance needed to be reduced by $24,000 to reflect the latest CH2M Hill invoice.
There was a discussion about how the agency had spent the bond proceeds. That we
initially had $5,000.000 and that a sum of money was expended for attorney fees and the
purchase of property. At present, there is $3,263,749 available for contract services
however a sum should be set aside for reserve.
John Larsen noted that the church lot had been $564,000. He said that we were
acquiring interest on the revenue from the bond sale and that there should be $50,000
accrued interest by the end of the fiscal year.
John Larsen noted that the $3.2 million is our starting point and he believes that we
should have % million dollars to cover unknowns.
Rick Fereday said that $3.0 million is available for contract service.
John Larsen said that interest income is about 5%.
Rick Fereday cautioned that we need to be assured that we have the monies in reserve
for bond repayment. Lindley Kirkpatrick clarified that the money has been set aside in
reserve for next years bond payment. He also stated that Linda Stokes, City Financial
Officer, should be at the meeting. Rick Fereday requested to see a line item for bond
payment.
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The bids received for schedule `A' and `B' combined were 4.1 million instead of the 3.0
million available. It was noted only one bidder submitted and that was Knife River and
Petra combined. Rick Fereday asked why it was over so much and John Larsen replied
that they are having a heck of a time with unit costs and the lack of understanding to do
business in McCall. John Larsen stated the only competition was on the landscaping.
John Larsen said because schedule `A and `B' combined need to be 3 million, the board
has the option to reject the bid. He said we could wait until the bidding climate got better;
we simply started too late. John Larsen said the statutes provide if you have made an
effort to be competitive then you have the discretion to go to the open market to acquire
services without going through the competitive bidding process. He said therefore, you
can negotiate with the construction manager if you like. He said they have 80 sheets of
construction drawings that do not need to be replicated. We could sit down with Petra or
a construction manager and negotiate a fee. He then observed that this was what we
wanted to do in the first place but the public process would not allow it.
Mandi Roberts said costs were higher than anticipated and particularly the parking lot
costs have gotten out of hand.
General discussion continued about the parking lot. It was observed that the retaining
wall had to continually be adjusted to accommodate design changes and issues
associated with Transamerica Title. It was noted that the retaining wall was moved back
20 feet and the cost associated was $500,000. The project started out to accommodate
130 cars and is now down to 108 cars due to these adjustments. Because of all of these
adjustments, the engineering costs are $100,000 that are not able to be recouped by
efforts to downsize the project.
The discussion continued and a quarter of the dirt that is removed for the parking area
will be exported to Legacy Park.
It had been estimated that $50,000 would be necessary to relocate the sewer line in the
parking lot, but that sewer line apparently was not within the parking lot area so this
represents a savings. The vortex will cost $70,000 so there is no savings there. There
will be savings in liquidated damages of $50,000 and there will also be savings in the
lighting. Each pole was approximately $10,000 but the number of poles has been
reduced. Rick Fereday asked how long a time frame the agency has to initiate action
and what does it have to be spent on.
There was discussion on Resolution #07-01 that rejects the bid received and affords the
Urban Redevelopment Agency to acquire contract services on the open market. It was
agreed that the board did not have the capital required to sign the contract and that the
resolution, if approved, would allow us to negotiate with Petra. Chuck Bloom estimated
that by not having to attend to all the permits and requirements that you could reduce the
bid offered by $300,000 right off of the top.
Don Bailey motioned to approve Resolution #07-01; seconded by Rick Fereday and John
Watkins; carried.
It was noted that there needed to be action taken to acquire the service of a contstruction
manager and to fulfill our commitment to the Hotel McCall. General discussion followed
about the manager position and scope of work. David Carey said that they can't proceed
and are waiting for something to be done by the Agency. He said they could not put off
their contractors. Discussion followed whether we should use the Hotel McCall's
contractor to coordinate. Then discussion continued with respect toe the Hotel McCall
property. Rick Fereday said that we need to take care of the Hotel McCall as soon as
possible. He said that we have all of the documents we need to address their needs.
Rick Fereday and Don Bailey were authorized to make decisions on behalf of the Urban
Redevelopment Agency.
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Bonnie Bertram arrives at 10:02 a.m.
Rick Fereday clarified the park should be open the entire summer. Chuck Bloom noted
that his plan was to work until October of November for demolition and earth work.
Discussion on consensus of priority.
1. Lake Street and Hotel McCall Project
2. parking lot
3. Legacy Park
Lindley said that Don and Rick will negotiate whatever it takes to get the Hotel McCall
project up and running.
Discussion of the need to apply for an NOI permit continued.
Further discussion to hire construction manager noted that the contractor would have to
have a public works license above a certain amount.
Fred Drake left at 10:34 a.m.
Discussion continued regarding the need to formalize the process to get a construction
manager.
It was noted that a statement needs to be made to get the word out that the bids came in
over budget and we are re-evaluating our position and that the board is authorized to
proceed for the most cost effective manner on the open market; the park will be open
until further notice.
It was noted to put off locating a construction manager as we need to renegotiate.
There was discussion regarding adopting the By -Laws. Don Bailey discussed the
changes to the By -Laws. John Watkins motioned to approve the By -Laws; seconded by
Bonnie Bertram; carried.
Meeting adjourned at 11:33 a.m.
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