City Council

MINUTES SPECIAL MEETING OF CITY COUNCIL CITY OF DEKALB March 22, 2012 The City Council of DeKalb, Illinois held a special meeting on Thursday, March 22, 2012 in the Council Chambers of the DeKalb Municipal Building, 200 South Fourth Street, DeKalb, Illinois. Notice was given and the meeting was called pursuant to the provisions of Chapter 2, Section 2.05 of the Municipal Code of the City of DeKalb, Illinois. Mayor Povlsen called the meeting to order at 6:00 p.m. A. ROLL CALL: City Clerk Wright called the roll and the following members of City Council were present: Mayor Kris Povlsen, Alderman David Jacobson, Alderman Tom Teresinski, Alderman Kristen Lash, Alderman Brendon Gallagher, Alderman David Baker and Alderman Monica O’Leary. Absent was Alderman Ronald Naylor. Also present were: Mark Biernacki, City Manager; T.J. Moore, Public Works Director; Ron Pearson, Interim Police Chief; Gary Spangler, Police Lieutenant; Carl Leoni, Police Lieutenant; Jeff Birtell, I&T Technician; and Diane Wright, City Clerk. B. CONSIDERATION ITEM: 1. CONSIDERATION OF HIRING A CONSTRUCTION MANAGER FOR THE PUBLIC SAFETY FACILITY TO BEGIN CONSTRUCTION IN 2012. Mr. Moore stated that this item focuses on the next phase of the Police Station; the hiring of the construction manager. He said the construction manager will help design the building and work with the staff regarding pre-construction services. They will provide a cost of the building which is what the City will pay for the construction. Mr. Moore stated that three firms will make presentations to Council, the Mayor will pose five questions to each and Council will also be able to ask questions of each firm. Mr. Moore said that Council was provided a spreadsheet listing the responses on costs that the firms provided; not included are general conditions which are negotiable. Mr. Moore introduced Leopardo Construction; Mr. Rick Mattiola, President, who stated that they will showcase their abilities and highlight resources available. Mr. Mattiola noted that Leopardo is a thirty-year old general contracting firm with $200 million to $250 million a year in revenue. Ms. Leigh McMillen, Project Executive, stated that Leopardo has been in the public safety construction arena for ten years. She noted some of their accomplishments include the Aurora and the Highland Park Police Stations. She introduced the team that will be working with her on Special City Council Meeting Minutes March 22, 2012 Page 2 of 6 the DeKalb project including: Rory Tihinen, Pre-Construction/Estimating; Nicole Bobula, Project Manager; George Tuhowski, General Superintendent (not present at meeting); Neil Dose, MEP/Security/Detention Coordinator, James McInerney, VP, Field Operations; and Christopher Hogan, Project Superintendent. They each provided a background of their expertise and what they will bring to this project. Ms. McMillen and her team stated that they will insure the City has high quality materials, will generate detailed accurate estimates, provide critical document reviews, identify long lead items for pre-purchase, work closely with the architect, take drawings and scrub them. Additionally, they stressed they will bring expertise to the project, and will be responsible for the safety and quality of the building, insuring that it comes in under budget. Ald. Gallagher left the meeting at 6:20 p.m. Ms. McMillen advised Council that Leopardo worked with PSA Dewberry on the Hanover Park project in which the fourteen (14) month construction project was completed on time and under budget. She pointed out that they purchased the entire project at an 18% discount which allowed Hanover Park to include a heated garage and a fully equipped firing range which wasn't initially included in the project. Ms. McMillen stated that Leopardo would explore local ordinances and focus on using local contractors, adding that they would partner with the sub contractors. She pointed out that Leopardo has completed over 500,000 square feet of public safety projects. Mayor Povlsen asked Leopardo questions on contingencies and allowances, and conflicts with construction documents which Ms McMillen answered. Additionally, Council asked other questions which were answered by Leopardo. Also, they pointed out that they would identify lead items and will pre-purchase them ahead of the schedule. Finally, Mayor Povlsen asked why Council should select Leopardo. Ms. McMillen replied that Leopardo has demonstrated their expertise, specifically in constructing police stations, having built two of the largest in northern Illinois. Additionally, she pointed out that Leopardo enjoys an excellent relationship with PSA Dewberry, the City's architects on the Police Station. Council asked questions of Leopardo including fees, general conditions, use of local contractors and unions. Mayor Povlsen and Council thanked Leopardo for their presentation. Leopardo left the meeting at 6:52 p.m. Mayor Povlsen called for a ten-minute break. At 7:00 p.m., Mr. Moore introduced Lamp, Inc. who began their presentation. Ald. Baker and Ald. Gallagher were not present. Mr. Ian Lamp, Vice President of Marketing and Sales for Lamp thanked Council for inviting them to make a presentation. He introduced the team from Lamp who would be working on the project, including Jennifer Norton, Director of Preconstruction; Steve Straub, Project Executive; Chad Alexander, Project Manager; and Duane Pry, Project Superintendent. Ald. Baker returned at 7:04 p.m. Ms. Norton stated that Lamp will set up a preliminary project schedule to insure that the project is on time. She noted that they will promote local businesses in the construction process and utilize the Gradebeam System online to search for additional bidders. All bid documents will be  Special City Council Meeting Minutes March 22, 2012 Page 3 of 6 uploaded there, she added. She stated that she anticipates bidding to begin in August, and Lamp wants to get the building enclosed as much as possible before winter. Ms. Norton stated that Lamp wants to complete this project in fourteen (14) months which means that the Police will occupy the building six (6) months earlier than anticipated. This will save the City approximately $200,000, she said. Mr. Straub noted that Lamp built the Streamwood Police Station directly adjacent to the existing facility and they are very experienced with tight sites. The Lamp team stressed that they will work closely with PSA Dewberry and City staff to establish milestones and a construction schedule. They noted that all their submittals to the City will be provided electronically as well as hard copies. Lamp offers a two-year warranty on all construction manager projects, but will partner with the City for the life of the building, Mr. Alexander stated. Mayor Povlsen asked the Lamp team questions on contingencies and allowances, and conflicts with construction documents which Lamp answered. Ms. Norton pointed out that lead items are factored into the schedule and they would pre-purchase some in advance. Mr. Alexander noted that they are constantly monitoring their punch list and the quality of the work. Ald. Gallagher returned to the meeting at 7:30 p.m. Council asked further questions of the Lamp team which were answered. Mr. Lamp stated that he would like to see the City get the firing range for the Police Station. Also, he said, they have worked with Burgess Castle, architects, a firm that was bought by PSA Dewberry. Additionally, he said, they would focus on hiring local sub contractors, and could waive the bidding process for them. Finally, Mayor Povlsen asked why the City should hire Lamp. Mr. Lamp stated they have built police stations; they are knowledgeable and a team. He added they have been doing construction management for twenty years and have completed approximately $1 billion in construction and have not exceeded budget or project time. He stated that they would anticipate a ribbon cutting for the Police Station on October 24, 2013. Mayor Povlsen and Council thanked Lamp for the presentation. They left the meeting at 7:44 p.m. Mayor Povlsen called for a ten-minute break. At 8:00 p.m., Mr. Moore introduced Irving Construction. Mr. Steve Irving, Project Executive, thanked Council for the opportunity to provide a presentation. He noted that he has been in business 38 years and noted his specialties. He introduced his team including Barbara Littlejohn, Project Coordinator; Emery Harmon, Project Superintendent; TJ Irving, Office Manager; Lou Sur, Architect; and Rick Monas. Mr. Irving provided a history of his projects. Mr. Irving stated that a police station is a commercial building with specialties. He provided a recap of his projects including Collins Dental, DeKalb Clinic, Castle Bank and renovations to DeKalb County Courthouse, and Sandwich City Hall and Police Station. He asked Council to give serious consideration to a local firm. Special City Council Meeting Minutes March 22, 2012 Page 4 of 6 Mayor Povlsen asked Mr. Irving questions on contingencies and allowances, and conflicts with construction documents which Mr. Irving answered. Mr. Irving noted that contingencies have not been defined and stressed that it is critical to start the work on the foundation quickly. Mr. Irving was asked by Ald. Baker if he would be prepared to pre-purchase items and place them in storage. Mr. Irving stated there needs to be a cash flow, and on most projects he would pre-order items and store them. Mr. Irving stated he provides a performance bond and stated he would not mind doing millwork, concrete, etc; and suggested that his firm be allowed to contract particular trades and perform it. He added that the sub contractors have to provide a performance bond. Ald. Gallagher asked Mr. Irving if he could save money on the project in order to include the firing range. Mr. Irving replied he could. Ald. Gallagher asked Mr. Irving if he could set a date for the ribbon cutting; Mr. Irving replied December 15, 2013, based on receiving the architectural drawings. He added that he doesn't know how long it will take to design the building and hoped the City will give some authority to fast track the work done by the architects. Additionally, he said, he hoped that PSA Dewberry can perform on this project. Ald. Baker stated that the other two firms have broken down additional costs for staff on site and asked Mr. Irving what is included in his 1.5% contingency. Mr. Irving replied he has no additional costs. He noted that his staff includes the general office, field and construction. He added the fence would be put in with an excavator and he doesn't know what it will be until he gets the site plan. Ald. Baker stated that he doesn't know if the 4.75% includes staff; Mr. Irving said it includes everything. Ald. Baker clarified that 4.75% includes salaries, bond; Mr. Irving replied affirmatively. Mayor Povlsen and Council thanked Mr. Irving for his presentation. Mr. Irving left the meeting at 9:00 p.m. Mayor Povlsen called for a ten-minute break. The meeting resumed at 9:10 p.m Mayor Povlsen asked Mr. Larry Hlavacek, Business Unit Manager, and Mr. Jonathan Tallman, Architect, of PSA Dewberry for their comments. Mr. Hlavacek stated that when deciding on a construction manager, the City should look at three areas: 1) pre-construction services; 2) construction manager's fee and 3) general conditions. He noted that the general conditions include staffing costs, trailer on site, and these conditions can vary from contractor to contractor. Council discussed at length the differences in the three contractors, specifically their staffing costs and that Mr. Irving stated his fee includes staffing. Mr. Hlavacek agreed he was concerned in that Mr. Irving stated he was not including at least $200,000 in staffing costs which equates to 2.75%. Mr. Moore stated that once the City negotiates a contract, all of the firms' fees should be in an approximate vicinity of each other and recommended that Council focus on who can deliver the best product. Ald. Gallagher asked Mr. Hlavacek if he has any problem working with any of the three firms. Mr. Hlavacek stated that contractually he is not allowed to vote, but if Council directs him, he  Special City Council Meeting Minutes March 22, 2012 Page 5 of 6 can provide an answer. He added that whomever Council hires, he will work with on the project. Ald. Lash asked for an opinion from the Police staff on the three firms. Interim Chief Pearson stated that he prefers the experience of firms that have constructed similar projects. He added that the DeKalb Clinic is a fine building, but is not the same as a police facility. Lt. Spangler deferred to the architects, but added that any of the three firms can build the station, but some very important points were brought up that may cause problems down the road. Mr. Biernacki said that it is important that they be mentioned. Mr. Larry Hlavacek stated he did an independent evaluation during the presentations and stated that Leopardo and Lamp gave clear answers on managing contingencies, but Mr. Irving did not. He added that controlling contingencies throughout the project is critical. Also, he said, the City wants a construction manager who will have aggressive control over the construction and put the money into the building. He added that the construction manager must make decisions quickly and was concerned that Mr. Irving stated he would do it as quickly as possible but it is up to the architect. Mr. Hlavacek stated that both Lamp and Leopardo talked about major lead items and purchasing them and was surprised that question had to be asked of Mr. Irving. Also, he said, having eighteen (18) months of staff on site compared to fourteen (14) months is a critical issue. Ald. Lash pointed out that the committee was given thirteen (13) proposals to consider and Irving was the only local firm. She stated that the committee ranked Leopardo first, Lamp second and Irving third. She added she has concerns about Mr. Irving's answers. Mr. Hlavacek stated he has witnessed Leopardo's actions with quality control issues and expects the same of Lamp. Ald. Baker asked if the questions asked today were questions that Leopardo and Lamp may be familiar with because of other projects. Mr. T.J. Moore replied they are very standard questions in any interview of this sort. Council discussed at length the three firms and the City getting the most value for the building. Ald. Baker noted that Irving is the least expensive and he believes Irving will be able to deliver on the promise that the firing range will be included. Ald. Lash disagreed and stated that she does not believe his staffing costs are included in his figures. Ald. O'Leary stated she wanted someone local for the project, but Irving did not give a good presentation. She added she has not made her decision yet. Also, she said, she thought Irving was less expensive, but would possibly prefer Leopardo. Mayor Povlsen stated he too would like to hire local, but thinks Leopardo would provide the best value and product. Ald. Jacobson stated it is important for the City to get the one and two year guarantees, but added that Council needs more answers in order to make a decision. Ald. Gallagher suggested that staff negotiate the costs down. Mr. Biernacki said that staff would be willing to negotiate, but Council still must decide which of the three firms. Ald. Gallagher said he preferred Irving. Council decided to take a consensus on the firms: Jacobson, Teresinski, and Lash preferred Leopardo; Gallagher, Baker and O'Leary preferred Irving for 3-3 tie. Mayor Povlsen stated he preferred Irving for a 4-3 consensus in favor of Irving. Special City Council Meeting Minutes March 22, 2012 Page 6 of 6 Mayor Povlsen asked the architects if they think Mr. Irving can build the Police Station. Mr. Hlavacek stated he worked with Leopardo previously and the customer received extras because of their pre-construction services and the pre-bidding that occurred; he added they are a proven firm. Also, he said that it is not possible today for Mr. Irving to state that he can provide the firing range. Mayor Povlsen stated that he has to hear what the architects state and look for the best interests of the facility and he believes that Leopardo can do the job. He stated he would change his vote. Mr. Biernacki stated that staff will negotiate with Leopardo and get the numbers down as much as possible. Ald. Jacobson stated that Council needs more information before any debate and they do not have information up front to make an informed decision. Mr. Biernacki stated he can ask Leopardo and Irving for their best offer. Mr. Hlavacek stated that general conditions are undefined at this time and the only numbers that can be compared are pre-construction and profit. Council discussed at length the options before them. Council consensus was that staff would contact both firms (Irving and Leopardo) for best and final offers and staff would place the item on the Committee of the Whole Agenda on Monday, March 26, 2012 for further discussion. C. ADJOURNMENT Ald. Gallagher moved to adjourn the meeting; seconded by Ald. Lash. Motion carried on voice vote. Mayor Povlsen declared the meeting adjourned at 10:25 p.m. DIANE K. WRIGHT, City Clerk Approved by City Council April 9, 2012