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Sunset Empire Transportation District
Board of Commission Meeting Minutes
ODOT Regional Office Conference Room
350 West Marine Drive, Astoria Oregon
Friday, March 20, 2003
CALL TO ORDER
Vice-Chair Gannaway called the meeting to order at 4:00 pm.
 
ROLL CALL
Commissioners Present:
Vice-Chair Bob Gannaway
Commissioner Jack Harris
Commissioner Charlotte Mendenhall
Commissioner Vic Kee
Commissioners Excused:
Chair David Shannon
Commissioner Jim Santee
Commissioner John Meyer
Staff Present:
Cindy Howe, Executive Director
Patsy Chapel, Executive Secretary
 
REVIEW AND APPROVE CM/GC SELECTION:
Vice Chair Gannaway explained the Board was meeting to discuss and approve the selection of CM/GC for the Intermodal Center Construction Project. Ms. Howe reviewed the process stating that a Committee made up of Ken Krieger of OTAK, Mitch Mitchum from the City of Astoria, Jim Wilkins of the Jim Wilkins Company, Commissioner Mendenhall and herself had gone over six proposals submitted by contractors. After review, the Committee narrowed the field to four and reference calls were made. Then the Committee scored the proposals and Ms. Howe contacted the top three contractors to set up interviews. The contractors were Rickenbach Construction, Baugh Skanska Construction and Robinson Construction. Ms. Howe went on to say that Robinson Construction had withdrawn because they were interviewing for another job and consequently the Committee, with Vice-Chair Gannaway and Commissioner Key also present, interviewed Baugh Skanska Construction and Rickenbach Construction. Ms. Howe reported that the summary scores from the interviews were Rickenbach 72.2 and Baugh Skanska 77. She also noted that the interview score added to the proposal score would make Baugh Skanska's score actually double. Ms. Howe stated that the Committee recommended the Board award the contract for pre-construction services to Baugh Skanska and added that although it was not an item for scoring the differences in the proposed fees was pretty dramatic as well:
 
Baugh Skanska pre-construction fee of $17,513
Rickenbach pre-construction fee of $12,000
Baugh Skanska CM/GC fee of 3.85%
Rickenbach CM/GC fee of 18%
 
Ms. Howe explained that the percentage, figured out in dollars for a $1.6 million project, and added to the proposed pre-construction fee would mean that Baugh Skanska would receive $78,000, if awarded and Rickenbach would receive $288,000, a gap of $210,000 in the two proposals. She said adding the proposal scores, the scores from the interviews and the fact that the gap could not be ignored, she felt very confident in recommending Baugh Skanska. Commissioner Harris asked if it was unusual to see one proposal so far out of the ballpark? Ms. Howe replied that the fees proposed by all the contractors covered the range between Baugh Skanska's and Rickenbach's. She said, if a contractor does not have a lot of experience with this type of work, Civil and Architectural Engineering or with the whole process of CM/GC, they will build in a higher percentage to cover the risk. Ms. Howe said that in the case of the contractor that did not charge any pre-construction fee, they probably felt once they got to the maximum guaranteed price and the District entered into a contract with them, they could pick it up in that part of the job. She said she had talked to two different people who had recent experience with the CM/GC process and they both said their pre-construction fees averaged between 4% and 6%. She went on to say that Baugh Skanska can charge less than 4% because they already have people here and because they are such a large company. Ms. Howe said Baugh Skanska is very professional.
 
Vice-Chair Gannaway said he would have liked to hire a local contractor and that he knows Rickenbach is absolutely straightforward, honest, down-to-earth and the type of company who would do a good job. He added, however, that he felt Baugh has more people to place in more jobs, they guarantee the District a site manager and a project manager for the entire job and they were very professional. Vice-Chair Gannaway went on to say he was very impressed with the set-up the District had. He said the Committee knew what they were doing and so did the contractor and the whole thing went smoothly.
 
Vice-Chair Gannaway clarified for the Board that what they would be voting on was whether or not to do the process not giving anyone the bid contract. Ms. Howe said she would come back to the Board at either the May or June meeting if she and the contractor could come to an agreement on the cost of the project. She said it would take that long to go through the rest of the process of designing and value engineering the project and once the CM/GC could give a guaranteed maximum price then she would have a contract for the Board's consideration. Only then would the CM/GC would get a notice to proceed and they would begin to go out for bids at that time. Ms. Howe stated that she would probably be coming back to the Board in April to put in place another component of this process, the owner's representative. She said Chair Shannon is concerned that the District should have someone who has experience and is accessible to manage the project. Vice-Chair Gannaway asked if there was a danger in having an OTAK person do it? Ms. Howe said there was not and she had a draft document that Ken Krieger had put together showing all the components that a Project Manager would be responsible for. She said if OTAK did everything on the list it would cost approximately $230,000, but if they only do part of it, it would cost less. She went on to say that there is a person already on-staff that can handle the files and pay schedules once OTAK set them up and that OTAK has a person on their staff with transportation experience. Ms. Howe said this would be one option and that she was trying to get ODOT and the City of Astoria to help with some of the inspections. She said she plans to give the Board a report with a document that will lay out the full costs at the April meeting.
   
Commissioner Mendenhall said she felt Baugh Skanska's presentation was like a synchronized team, first one person would speak and then another, while Rickenbach just talked. Ms. Howe stated that Rickenbach Construction's strength lies in knowing what a chairwall is, knowing what they have to do historically and knowing what is under-ground in Astoria. Vice-Chair Gannaway added that Rickenbach would use all local subs. Ms. Howe said Baugh-Skanska did assure the Committee they would pursue local sub-contractors also. Commissioner Mendenhall asked if there was a way the District could make Baugh-Skanska legally use local sub-contractors? Ms. Howe said no, sub-contractors would be chosen by low-bid.
   
Commissioner Kee stated he thought Baugh Skanska did a fine job, that he had been on several committees of this type and believed it was possible to sway a committee by the use of graphics and hoopla. He said even without considering all the graphics he felt Baugh Skanska really knew what they were talking about and that they had the people on staff to fill all the gaps. He also said Rickenbach had been around a long time and do good work, but they are almost like a minor league ball team trying to get into the major league. Commissioner Kee stated that the Board has money that they are responsible for and he felt that Baugh Skanska clearly has the experience and the team to do the job. Ms. Howe said that she and Commissioner Mendenhall had talked about how important it was to put your personal feelings aside and to look at what would be in the best interest of the Transportation District.
   
Board Action: Motion by Commissioner Kee, second by Commissioner Mendenhall to accept the recommendation of the Committee to award the contract for pre-construction services for the Intermodal Center to Baugh Skanska Construction. Vice Chair Gannaway and Commissioner Harris, Mendenhall and Kee voted yes. Motion passed.
   
Commissioner Harris thanked Ms. Howe and the other Commissioners for doing all the research on this decision and Vice-Chair Gannaway thanked Commissioner Mendenhall for all the time she had spent on this project and said he thought the District should send thank you letters to the other Committee members. Ms. Howe agreed that it was important to acknowledge their assistance. Vice-Chair Gannaway asked if the Committee was finished now? Ms. Howe said that Mr. Wilkins was finished as he probably plans to bid as a subcontractor, but Mr. Mitchum will be involved for the duration. Commissioner Harris asked if the Committee decision had been unanimous and Ms. Howe said it had been and that the score sheets showed that clearly.
   
REQUEST FOR RENTAL AGREEMENT
Vice-Chair Gannaway asked if all Commissioners had had an opportunity to read the request from Sue Collins and No. 10 Sixth Street to rent the back main floor bays of the Intermodal Center. Ms. Howe told the Board that the request had come from Chester Trabucco, Ms. Collins brother, by way of Mitch Mitchum making a suggestion. Because Mr. Mitchum knew the building was going to be empty until July and he thought it would be a way for the District to make a little revenue off of it and at the same time help a local entrepreneur continue with his work. Mr. Trabucco is remodeling the Elliot Hotel and they are in need of space to finish some woodwork. They propose paying $.25/square foot per month for warehouse space and they will pay all the utilities. Vice-Chair Gannaway asked if there would be any insurance problems about renting the space and Ms. Howe replied that she would find out. Commissioner Kee stated he would like this to be seen by the District's legal counsel and have a "hold harmless" statement put in the agreement. Ms. Howe said she would have Attorney Jeanyse Snow draw up the agreement.
   
Board Action: Motion by Commissioner Mendenhall, second by Commissioner Harris that after checking with the District Insurance Agent to make sure there are no insurance problems and having the District Legal Counsel draw up the agreement, the Board agrees to rent to No. 10 Sixth Street the warehouse space at the Intermodal Center for $.25 per square foot per month and the renter pays all utilities. Vice-Chair Gannaway and Commissioners Harris, Mendenhall and Kee voted yes. Motion passed.
   
APRIL BOARD MEETING
Vice-Chair Gannaway informed the Board that the next order of business was to move the April Board meeting from April 15th to April 22nd. Ms. Howe said the reason for this change is that she needs to attend a Lewis and Clark Conference that will be held April 12th through the 16th . Jan Mitchell will be speaking at this conference and a large part of the conference will be about transportation. Ms. Howe also asked the Board for direction on where they would like to hold their meetings. Vice-Chair Gannaway asked if there was room to meet in Warrenton? Ms. Howe responded that there was room at Warrenton City Hall. She said rotating the meetings between the various City Halls in the County would be a good gesture. Commissioner Harris said he could meet anywhere. Ms. Howe asked if the Board agreed to move the next meeting to April 22nd? Vice-Chair Gannaway stated he had talked to Chair Shannon and that date was fine for him. The Board agreed to move the meeting to April 22nd. Ms. Howe said the details of where to meet could be worked out at a later time.
   
Ms. Howe reported that this day, March 20th, was the deadline for filing to run for the SETD Board of Commission positions and that Rae Goforth had filed for Commissioner Meyer's position and Keith Chandler had filed for Commissioner Santee's position. She said as far as she knew all five seats would be running unopposed.
   
Ms. Howe told the Board that the District had received two letters from Department of the Interior. One letter stated its commitment of the 20% matching funds for the Lewis and Clark Federal Appropriation. The second letter is one the Board had requested from the National Park Service saying it considers SETD's full ownership of the public parking lot adjoining the Transit Center to be a vital component of the Lewis and Clark Shuttling system and that the National Park Service supports its purchase with 5309 funds. Vice-Chair Gannaway asked if there was enough money in the Lewis and Clark fund to pay for the parking lot. Ms. Howe told the Board the District has $1.9 million dollars. She said approximately $750,000 will be spent on buses and $350,000 has been committed for construction of the Intermodal Center. She said she has been exploring the possibility of having George Fraser hold a contract on the property and pay for it over a period of time and look at refinancing options through Special District so that SETD will be able to maintain a reserve fund. Ms. How said she was not prepared to explain it all in detail at this time but plans to have the Financial Consultant from Special Districts come to a Board meeting to explain it and answer questions. Vice-Chair Gannaway asked if that would be at the April meeting and Ms. Howe said she hoped so.
 
There were no further questions or comments.
 
ADJOURNMENT: : Vice-Chair Gannaway adjourned the meeting at 4:36 pm.
 
Approved:
 
 
 
 
 
 
Secretary/Treasurer