On the agenda

1. 1Call to Order - Roll Call▶ 0:00
2. 2

   Approval of the April 4, 2017 CRA Minutes

   approved

   The CRA Board approved the minutes from the April 4, 2017 meeting.

   • motion:Motion to approve the April 4, 2017 CRA minutes. (passed)

   ▶ Jump to 0:31 in the video

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   [00:00:31] Next item on the agenda is the consideration of the bid award. [00:00:38] No, minutes. [00:00:39] Oh, minutes. [00:00:40] Go. [00:00:41] I'm sorry. [00:00:42] I'm trying to get through. [00:00:43] Minutes. [00:00:44] I was approving the minutes. [00:00:45] Okay, we have a motion to approve the minutes. [00:00:49] Second. [00:00:50] Second. [00:00:51] Any discussion? [00:00:52] All those in favor, please signify by saying aye. [00:00:54] Opposed, like sign.

   This text was generated automatically from the meeting video. It is not a verbatim or official record. For exact wording, consult the video or the city clerk.

3. 3

   ↳You arrived here from a search for “CRA capital budget for commercial area improvements” — transcript expanded below

   Former Smart Start Business Incubator - Consideration of Bid Award 2017 Front Roof Replacement Project

   approved

   The CRA Board awarded a contract not to exceed $49,249 to SC Signature Construction Inc. to remove and replace the front roof of the former Smart Start Business Incubator, after the prior contractor (Professional Roofing Systems Inc.) was found to have done substandard work. The Board also approved a related budget amendment transferring funds within the CRA budget (totaling $50,825 with miscellaneous costs) from professional services to building improvements. The City Attorney indicated the city will pursue the prior contractor and its bond company to recover costs.

   • motion:Approve the proposal from SC Signature Construction Inc. not to exceed $49,249 for the front roof replacement at the business incubator. (passed)
   • motion:Approve a budget amendment transferring funds within the CRA budget from professional services to building improvements to cover roof replacement costs (total $50,825). (passed)
   • motion:Motion to adjourn the CRA meeting. (passed)

   📍former Smart Start Business Incubator🏢Biller-Reinhart Engineering Group🏢Farrell🏢Professional Roofing Systems Incorporated🏢SC Signature Construction Incorporated👤Judy Myers👤Mr. Rivera👤Ms. Mavs👤Robert#2017 Front Roof Replacement Project#CRA capital budget for commercial area improvements#Front roofing system assessment report (December 2, 2016)#Performance bond claim / forthcoming lawsuit against prior contractor and bond company#Roof assessment report (October 24, 2015)

   ▶ Jump to 0:55 in the video

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   [00:00:55] Next, the roof. [00:00:57] Mr. Rivera, this one's yours. [00:00:59] Thank you. [00:01:00] You're welcome. [00:01:01] This item for your review and consideration is the approval of the attached proposal from SC Signature Construction Incorporated [00:01:10] in the amount not to exceed $49,249 for the removal and replacement of the existing front roof at the business incubator. [00:01:22] On October 24th, 2015, a roof assessment report was completed by the Assistant Public Works Director, City Engineer. [00:01:33] The report called out for the front roof of the incubator to be removed and replaced, [00:01:38] and the report further concluded that the rear portion of the roof system had a useful life of 10 to 12 years remaining. [00:01:50] On April 19th, 2016, the CRA Board approved the low bid and awarded the front roof replacement project to Professional Roofing Systems Incorporated. [00:02:02] The construction for this project began on July 12th, 2016, and on September 6th, 2016, [00:02:11] the city's construction services notified the contractor a list of corrective work that needed to be performed on the project [00:02:20] before we would consider it substantially complete. [00:02:24] The contractor refused that request and invoiced the city for the completion of the roof. [00:02:33] On December 2nd, 2016, Biller-Reinhart Engineering Group submitted to the city the front roofing system assessment report attached in your packet there. [00:02:45] The report concluded that the front roofing system, at its existing condition and installation, [00:02:52] had substantial deficiencies and recommended a replacement of the roofing system. [00:02:59] Discussions between city staff and the city attorney have resulted in the following items. [00:03:05] The contractor and his bond company have been notified on the city's intent to remove the roof and replace it. [00:03:14] We proceeded with the bidding process and new construction documents [00:03:21] and allowed the bond company and the contractor time enough to respond before we went out to bid. [00:03:28] As of today, we have not heard from them. [00:03:32] The engineer of record has reviewed the ITB that was submitted by SC Signature Construction and has verified it for correctness. [00:03:42] The references have been verified and contacted, and the engineers also attached a recommendation memo to the packet. [00:03:51] We would also note that this is a local business company right around the corner. [00:03:55] They have done work before with the city and have never had any problems with their quality of work. [00:04:02] The funding for this project will come out of the CRA capital budget for commercial area improvements. [00:04:12] We would recommend that this proposal be approved, and we've preliminary talked with the contractor. [00:04:20] The project is for 90 days. [00:04:23] There is language in there saying that he has to devote enough force as to where he continually will stay on there, [00:04:30] and he's projecting to have a notice to proceed date of May 15th, [00:04:36] our pre-construction meeting that we will have scheduled for next Tuesday, the 9th. [00:04:43] And with that, we would recommend for approval, and I can take any questions. [00:04:46] Thank you. [00:04:47] I'll open it up for public comment. [00:04:49] Seeing none, bring it back to council. [00:04:52] So you paid the first roofing company then? [00:04:55] We paid a portion of the contract, not all of it. [00:04:59] What portion didn't we pay, percentage? [00:05:03] I wanted to say that we had a third left. [00:05:05] We had enough. [00:05:07] I think it was about a third of the amount. [00:05:10] Well, how close is that third amount to the $256 or whatever the number was? [00:05:16] Well, we've – I don't know. [00:05:18] I'd have to get that information to you. [00:05:22] So are they sending us to collections and we're saying you didn't do the job right? [00:05:26] Where are we at? [00:05:27] They've not responded to us. [00:05:29] I saw that. [00:05:30] So now what do we do? [00:05:31] Well, what will happen is I think it was about $17,000 that is their final payment that we haven't paid them, [00:05:39] and I can tell you that they have not been clamoring to get that money [00:05:42] because they know what a horrible job they did on this roof. [00:05:46] I have notified the bonding company, notified the contractor that we're proceeding to replace it, [00:05:50] and then once we get the work done, then we will be filing a lawsuit against both of them [00:05:54] to recover the costs of having to go through all of this. [00:05:58] And there is a bond out there to cover the amount of this contract. [00:06:05] The question I was going to have is are we going to sue to get the money back? [00:06:08] Yes. [00:06:09] We're just going to front this money, get it fixed, [00:06:10] and then go after the original roof company that didn't do their job, [00:06:13] and that's why they're not asking for the money because they know they didn't do their job properly. [00:06:16] Correct. [00:06:17] And we've notified them in writing, and the bond company have not heard back from either. [00:06:20] Correct. [00:06:21] And then you're going to just go after it. [00:06:22] Correct. [00:06:23] All right. [00:06:25] It doesn't – was it like a performance bond? [00:06:28] Correct. [00:06:29] So I'm confused as to why we have to sue. [00:06:32] I mean, it seems like if they did not perform, then that's where the performance bond would – [00:06:36] Correct. [00:06:37] And we've made a demand, and they have not stepped forward and taken on the project and fixed it, [00:06:41] so they have that option. [00:06:43] They can step into the shoes of the contractor and complete the contract, [00:06:47] but they've chosen not to do that, [00:06:49] and I assume that they just plan on paying the money on the bond at the time that we get it completed. [00:06:55] When you get to that point. [00:06:56] Because I thought, like, the performance bond is kind of like an insurance policy, [00:06:59] that there really would be no issue. [00:07:01] You still have to sue the bonding company, [00:07:03] and the bonding company can defend and they can stand in the shoes of the contractor [00:07:07] and they can say, no, we did a great job on this roof, [00:07:10] and so they can defend the contractor's work if they choose to do so. [00:07:13] So I don't know who to ask of this question, but, you know, this idea that we have to take the low bid, [00:07:18] I mean, what part does that play in this? [00:07:20] I mean, are low bidders essentially, you know, bottom feeders? [00:07:26] I don't know how else to explain that, or if you are following what my point is. [00:07:32] You know, is it always that situation? [00:07:33] You never have to take the low bid. [00:07:34] You have to take the lowest responsible bidder. [00:07:37] So you get to decide whether or not the low bid is a responsible bidder or not, [00:07:41] and then you can make a determination as to whether to give it to that company. [00:07:45] Well, I'd like to think that, you know, when we did this and we approved that bid, [00:07:48] were we basing that on that they were a responsible? [00:07:52] We based it upon their references and previous work, and this contractor had several. [00:07:59] He had a resume that he had performed several different roofs for a lot of different school districts, [00:08:07] and so we contacted and verified the references. [00:08:13] Are they related to him? [00:08:14] It's hard to sit there and say we don't want you if we don't have a legitimate reason. [00:08:21] Like if he was to bid for another project, then obviously we wouldn't even bother. [00:08:26] He is no longer on a responsible bidder list, is he, Robert? [00:08:29] Right. [00:08:30] Exactly. [00:08:31] I'm not going to stand as a reference either. [00:08:32] So, I mean, how does any of this follow him? [00:08:35] Are we able to share any of that information with him? [00:08:38] The suit would be public record. [00:08:41] And you can't hit these out of the park every time. [00:08:44] You can't be 100%. [00:08:45] You're going to get bad contractors if that happens. [00:08:47] Will we be able to recoup the emergency repair work that we had Farrell doing after this other term? [00:08:54] We're going to try to recover as much as we can. [00:08:56] I believe the bond amount was right around the size of this contract. [00:09:00] I believe it was like $49,000, if I'm not mistaken. [00:09:03] I can't remember exactly. [00:09:04] But we will definitely get all of that and then whatever we can get from the contractor, [00:09:09] which, of course, that's always a bit dicier, as you can imagine, and that's why we have these bonds. [00:09:14] What about legal fees? [00:09:15] Will you go after those or no? [00:09:16] Yes, if there's a source of funds for them. [00:09:19] Like I said, I think we're going to be maxing out the bond already just with the repair costs. [00:09:24] And we still have the contractor $17,000 to put towards it. [00:09:29] Entertain a motion? [00:09:30] For approval. [00:09:31] Second. [00:09:32] A motion and a second. [00:09:33] All those in favor, please signify by saying aye. [00:09:34] Aye. [00:09:35] Opposed? [00:09:36] The light's on. [00:09:37] Next is consideration of a budget amendment so that we can pay for the work that we're about to do. [00:09:42] Ms. Mavs? [00:09:45] Thank you, Mr. Mayor. [00:09:46] I'm fumbling just a little bit to find the agenda item. [00:09:51] Okay. [00:09:52] The request before you is to transfer funds within the CRA budget to cover the amount of the roof repairs. [00:10:07] The cost of the roof replacement, as indicated in your previous agenda item, is $49,249. [00:10:15] There are also miscellaneous costs that we're rolling into the budget request for $50,825. [00:10:26] I'm sorry, that's the total after the $1,576 of miscellaneous. [00:10:34] And we're recommending that you transfer the funds from professional services to the building improvements project. [00:10:46] Move for approval. [00:10:48] Second. [00:10:49] Do we have any public comments? [00:10:50] Seeing none, to the maker. [00:10:52] Nothing. [00:10:53] Do you second? [00:10:54] No, thank you. [00:10:55] Deputy Mayor? [00:10:56] No comment, thank you. [00:10:57] Ditto. [00:10:58] No further discussion. [00:10:59] All those in favor, please signify by saying aye. [00:11:01] Aye. [00:11:02] Opposed, light sign. [00:11:03] Any further business for the CRA? [00:11:05] Yes, I'd like to wish Judy Myers a happy birthday tomorrow. [00:11:08] Oh, happy birthday. [00:11:09] Happy birthday. [00:11:10] You're welcome. [00:11:11] Reciprocate that as we share the same birthday. [00:11:13] Oh, thanks. [00:11:14] Oh, happy birthday. [00:11:17] And in which case, I'd entertain a motion to adjourn. [00:11:20] To adjourn.

   This text was generated automatically from the meeting video. It is not a verbatim or official record. For exact wording, consult the video or the city clerk.

4. 4

   Consideration of Amendment to the FY17 Adopted Budget

   Consideration of an amendment to the FY17 adopted CRA budget.

   #FY17 Adopted Budget Amendment
5. 5Adjournment