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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 07-13-1993MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY JULY 13,1993 A meeting of the Plymouth Housing and Redevelopment Authority was called to order by Chairman David Crain on July 13, 1993 at 5:00 p.m. PRESENT: Chairman David Crain, Commissioners John Edson, Pauline Kilner, Phil Blott, and Brian Warhol ABSENT: None STAFF PRESENT: Acting Executive Director Dwight Johnson, Housing Specialist Milt Dale, and Housing Secretary Denise Hutt APPROVAL OF MINUTES MOTION by Commissioner Edson, seconded by Commissioner Warhol to recommend approval of the June 15, 1993 minutes. 1-N VOTE. 4 Ayes. Motion carried unanimously. (Commissioner Blott abstained.) SELECIlON CRITERIA FOR A FIRST TIME HOMEBUYER FOR HOUSE TO BE BUMT ON COUNTY ROAD 9 AND FERNBROOK LANE Housing Specialist Dale gave an overview of the July 8, 1993 mento. He stated that the one family meeting all the criteria recommended by the Plymouth Housing Alliance could not qualify for a mortgage. He suggested that the Commissioners relax the income criteria to allow more families to participate. Commissioner Warhol stated he would like to see the income limit raised from $30,000, as it would open up the possibilities for more families. Commissioner Blott questioned the criteria of a minimum household of five family members. Chairman Crain responded that there is a need to provide affordable housing for larger families. Commissioner Warhol commented that the two families interested in the home have only qualified for a $46,000 mortgage. Commissioner Edson asked about the current interest rate. j Commissioner Warhol replied that it would be 7.5 percent fixed for a 30 year mortgage. Commissioner Edson asked if there is something the housing aumority can look into to increase outside donations. Steve Williams of Lundgren Bros. informed the Commissioners of another project that he is involved with that promises contractors advertising on the radio in addition to on-site advertising. He stated more contractors are willing to donate provided they receive marketing advertising in return. Chairman Crain questioned if the donations would all have to come from construction companies or could private entities donate cash. Mr. Williams responded that the donation can be in the form of cash and can come from anyone. Commissioner Edson recalled that at some point when project was done, the Plymouth Housing Alliance would take out a full page ad in the Plymouth Sun -Sailor recognizing everyone who donatmali to this project. Mr. Williams stated that a pre -plan for marketing could be researched to determine more accurately estimated donations. Chairman Crain asked when the Plymouth Housing Alliance would be incorporated. J Commissioner Edson replied that the incorporation should be complete this week. Chairman Crain wondered if there was some opportunity of getting materials for cost if we can come up with the cash. Mr. Williams replied that many retailers only discount five to ten percent. He commented that you may be able to get a company like Dayton's to donate furniture and raise cash from a raffle. Chairman Crain suggested that these avenues be explored and recommended Steve Ludovissie as available to assist. Chairman Crain stated that the income limit could be raised to $40,000. Commissioner Blott agreed that the income limit should be increased. Commissioner Edson calculated based on 7.5 percent interest rate the monthly payment including principal, interest, taxes and insurance would be approximately $574.00. MOTION by Chairman Crain. seconded by Commissioner Edson to increase the income limit to 40,000. Vote. 5 Ayes. MOTION carried unanimously. Commissioner Edson suggested that the housing authority pay the fees incurred for the demolition of the house ($2,480.00) and the staff time involved ($2,281.51) on this project. He stated that the platting The may be more an ropriate for the engineering department as this would have been an engineering expense wher, the read project was to begin. Chairman Crain concurred that the housing authority should pick up some of those fees incurred. Chairman Crain questioned if there is a cost difference for the construction loan between going through the bank or an interfund loan. Mr. Williams informed Commissioners that Norwest Mortgage has agreed to only charge for hard costs at approximately 0.25 percent of the loan, all other charges would be their donation. Chairman Crain suggested using Norwest Mortgage. Commissioner Edson concurred. Housing Specialist Dale commented that a letter was sent out to six families, in which only two have responded. Chairman Crain asked if it was going to be a requirement that the family put in a certain of amount of labor hours on the project. Mr. Williams responded that involvement with landscaping would be appropriate Commissioner Edson stated that the bylaws of the Plymouth Housing Alliance (PHA) are being set up to be self perpetuating.. The PHA can designate members each year. The only requirement of the housing authority was that the PHA must have one member on their board from the housing authority. USE OF A CONSTRUCTION MANAGER ON SENIOR HOUSING PROJECT Chairman Crain stated he was taken by surprise of the change from general contractor to construction manager that was approved by the City Council. Acting Director Johnson explained that he became concerned about the public bidding aspect and limiting to five or less the number of general contractors receiving a Request For Proposal (RFP). He stated that while the City Attorney assured him that such a process was acceptable, he was concerned about public reaction. He believed the solution would be to have a firm act as a construction manager. There normally is a construction manager on. every project, and that constriction manager sometimes is the general contractor. The construction manager can and would do everything the general contractor would do except for the general construction. The council at its June 21 meeting, agreed to this approach. Greg Oppegard of Walker Management presented Commissioners with both an RFP and an AIA American Institute of Architects) agreement for a Construction Manager. He stated that the construction manager would be acting as a general contractor until the construction of the project begins. Walker was able to find this contract form and redo the RFP to include the use of a construction manager. He stated that the HRA might not benefit from some areas as they would with a general contractor as a general contractor can bid some of the work using his own people. He stated the HRA would have more control over the project by having a general contractor as they have their own workers compensation and with lower rates it would allow them to competitively bid the overall project. Mr. OppegaM stated there may be a schedule delay of two to four weeks because of the change to construction manager, but they are still looking to break ground this fall. These changes have been discussed with Paul Kaminski of Best and Flanagan. The construction manager would have to come on board with a format that would fit into and benefit the project. Chairman Crain questioned if this format would permit the company that is the construction manager to bid on any work. Mr. Oppegard responded that such an option would be available. Chairman Crain commented that the organizational layout is frustrating as they all report to Walker. Acting Director Johnson replied that Walker's role is to be the owner's representative. Chairman Crain realized that this is the City Council's decision, but expressed his disappointment that this change was made rather abruptly. He stated that the housing authority entered into a contract with Walker Management with the intention of hiring a general contractor. Commissioner Edson commented that there was hesitation on his part, but there -was some concern by the Council as to doing competitive bidding. He stated his understanding was that the subcontractors would still be open to public bidding. Mr. Oppegard replied that as the general contractor came on board they would provide scopes and would be able to be involved in deciding on the subcontractors. In any case, a major portion of the work would be out on the exchange to bid. Commissioner Edson clarified that it would not be open bidding as the public considers open bidding. Mr. Oppegard replied that is correct. Commissioner Blott stated that if all work is open up for bidding, what happens if the HRA does not always take the low bid. 0 Acting Director Johnson responded that the HRA does not have to take the low bid as long as they have good reason. Mr. Oppegard stated that the major disadvantage of a construction manager will be going through and determining the liabilities and who will assume those liabilities. That will take some time because of how the roles have already been established. There will be a need to adjust the construction manager role to fit into the overall framework. There is a need to have someone come on board to help determine how the scopes need to be distributed. Commissions:, i"Nott commented that the construction manager would be providing scopes. Mr. Oppegard stated that the construction manager would if he had been brought in at the beginning of the project. Commissioner Blott replied that the construction manager would still have to go through the scopes. Mr. Oppegard stated that they are losing the benefit of having a contractor revigw and comment on the economy of the puns and specs. Acting Director Johnson assured Commissioners that this is not new to cities and thief! questions do have answers. e Commissioner Blott commented that this method is more expensive. The spec problem alone can be very tedious. Mr. OppegaM pointed out that the responsibilities of the construction manager in the contract will overlap with Walkers responsibilities. Acting Director Johnson asked if Walker was going to be on the site eight hours a day. Mr. Oppegard stated that he will devote as much time as needed to control and manage the project. Commissioner Blott suggested sending out an RFP and remove from the proposal what work activity Walker is already providing. Commissioner Edson commented that the HRA can put out an advertisement for a general contractor. Mr. Oppegard responded that the HRA will get at least 30 responses ton an advertisement for a general contractor. The question would then become how to analyze all those bids. Commissioner Blott stated that the advertisement for bid could be structured at a level of J performance to get qualified bids. 0 Acting Director Johnson suggested Walker and the City Attorney could work out the details. Mr. Oppegard stated that Arvid Elness should also be involved. He informed Commissioners that there is a need to develop criteria to analyze the bids. It will take some time as there may be.a number of responses and a need to research all of the unknowns. Chairman Crain questioned if all bids would have to be analyzed since it would be best to start with the low bids and work up. Commissioner Biott stated that all the criteria should be listed in the advertisement. Commissioner Edson asked if the general contractor would have to bond the whole project, and if that should be in the advertisement. Ccmmissioner Blott replied there is not a need to list the bonding requirements as that becomes the general contractor's responsibility. Chairman Crain would like Commissioner Blott to look at the advertisement before it goes to press. Commissioner Blott suggested that after the general contractor is selected the contractor shoidd look at the plans to determine if a "fresh a-proach" were needed and where the HILA might also save some money. MOTION by Chairman Crain, seconded by Commissioner Edson to open for public bid for Ganeral Contractor for the senior housing project. Vote. 5 Ayes. MOTION carried unanimously. MEETING ADJOURNED AT 6:45 P.M. 4—/ 0