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1987-06-25 Regular MeetingKODLAK ISLAND BOROUGH Regular Assembly Meeting June 25, 1987 A special meeting of the Kodiak Island Borough Assembly was held June 25, 1987, in the Conference Room of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:30 p.m. (A verbatim record is on file in the Clerk's office) There were present: Lorne White, Presiding Eric Blankenburg Jack McFarland Absent: Ann Barker (excused) Alan Austerman Ken Gregg Wayne Stevens comprising a quorum of the assembly; and Jerome Selby, Borough Mayor Gaye Vaughan, Borough Clerk ITEMS OF BUSINESS A. Request For Authorization For Moving Expenses (Mental Health) BLANKENBURG, seconded by MCFARLAND VOTE ON MOTION Ayes: Noes: MOTION CARRIED moved to authorize moving expense for Mental Health Center psychologist. candidate in an amount NTE one month's salary. Blankenburg, Gregg, Stevens, White Austerman, McFarland 4 Ayes, 2 Noes B. Resolution No. 87-37-R Requiring Aquaculture Association Match Funds Prior To Release Of The FY 88 Karluk Lake Fertilization Funds. GREGG, seconded by AUSTERMAN moved to adopt Resolution No. 87-37-R. Kevin O'Sullivan, Kodiak Regional Aquaculture Association, urged the assembly to support the resolution. Assemblyman Austerman noted there was a letter attached to the resolution from KRAA dated June 3, 1987 that stipulated the money would only be appropriated if commercial fishermen match the amount with voluntary contributions. VOTE ON MOTION Ayes: Noes: MOTION CARRIED Blankenburg, Gregg, McFarland, Stevens, Austerman, White None Unanimous SPECIAL MEETING ROLL CALL ITEMS OF BUSINESS AUTHORIZATION FOR MOVING EXPENSES MENTAL HEALTH CENTER PSYCHOLOGIST RESOLUTION NO. 87-37-R -z5'0 Kodiak Island Borough Special Assembly Meeting C. PUBLIC BEARING PUBLIC HEARING 1. Award of Contract for Larsen Bay School AWARD OF CONTRACT Remodeling/Addition. FOR LARSEN BAY SCHOOL REMODELING/ STEVENS, moved to award contract for ADDITION seconded by MCFARLAND the Larsen Bay School Addition to the City of Larsen Bay in an amount NTE $1,510,000. The presiding officer called for public testimony. George Rieth, Gudenau Construction Company, opposed the awarding of the contract and listed three reasons for his objections. He said the contract documents were not finalized with the liabilities clearly defined, no competitive bid was held, and the interests of the taxpayers were not well served by awarding a contract in this fashion. Mike Brechan, local contractor, expressed concern that a process through negotiation was not in the best interest of the taxpayer and trouble arose with definitional matters on exactly what the villagers wanted. He felt the assembly would not get what they desired by not defining the cost of construction through the competitive bid process and allocating some of the management responsibility to another governmental organization. Phil Anderson opposed the contracting of construction to the villages and asked several questions regarding bonding and property taxes in the villages. He concurred with Mr. Brechan's statements. Charles Christensen, Mayor of Larsen Bay, urged the assembly to approve the awarding of the contract to the City of Larsen Bay. He said the construction would be bonded and noted the Construction Management Firm representatives had met with the members of the community to discussed the manpower available in the village. He said there would be local hire within the village and the villagers would do a good job on the building. Assemblyman Austerman asked several questions of Mayor Christensen regarding the arrangements made for local hire. Sandra Jones, partner with Cumin and Associates, Architects for the Larsen Bay School Addition, stated the building documents were in good order. She gave background on other similar projects that her firm had completed and said she was available to answer questions from the assembly. Jim Dokoozian, president of Matrix Construction, Inc., the con- struction management firm selected by Larsen Bay, explained the process by which his firm was selected. He reiterated the emphasis placed on local hire in the contract and explained the bonding and insurance for the project. Scott Arndt stated that he was a stanch supporter of the competitive bid process. He suggested in the way of a compromise that Larsen Bay could bid on the project along with other contractors and be given a five percent bidder preference for being a local entity. Rick Lien, Construction Manager on Karluk Safety Building, said using local hire had a positive impact on the village and sighted the safety building as an example. He thought Kodiak contractors would benefit more from a contract awarded to the villages than from a contract put out to bid and possibly awarded to an out of state firm. Sid Pruitt spoke in favor of local hire and asked to have the procedure for inspecting the project explained. June 25, 1987 Page 2 Kodiak Island Borough Special Assembly Meeting Jeff Davis, Construction Manager for Port Lions School Addition, said the competitive bid process did not necessarily guarantee the price of the completed job. He explained the advantage to a village in hiring a construction management service was the ability to hire locally thereby cutting the cost of labor in half. Also, he explained the contract was negotiated through a rigorous contract proposal process and an elimination of those proposals. He pointed out that the construction manager had input into the design process with the architect. Okey Chandler didn't think there were enough experienced journey- man in the villages to work on the projects and said it would cost more money to use inexperienced workers. Kyle Renich, Davis Construction, told about his experience working with a construction management service when building the school in Eagle, Alaska and said the local contractors in the area benefited from the arrangement. Robert MacFarlane, K.I.B. Facilities Coordinator, said he was available to answer questions from the assembly. In response to questions from Assemblyman Austerman, Mr. MacFarlane said there was no definition of local hire or local hire preference in the contract. Mayor Selby said the assurance of local hire contracting was found on the front page of the contract between K.I.B. and the cities involved. Mike Brechan said even by waving minimum wage requirements on a project there was no assurance that local people would be hired. He inquired as to who would set wages. Jim Dokoozian stressed that Matrix Construction, Inc. would consider residents of Larsen Bay first in local hire and Kodiak residents second. He said by hiring local workers in construc- tion of the school, the level of workers' competency would increase and possibly these same workers could be hired for maintenance of the facility later. George Reith, Gudenau Construction, asked whose interests the assembly felt they would be serving in awarding this contract, the Kodiak Island taxpayers or the Larsen Bay and Port Lions villagers? Sid Pruitt asked for clarification on how the paying of prevail- ing wages would be avoided. After hearing the explanation, he said that he was opposed to it because he said if the people of the villages were doing the job they should be entitled to the prevailing wage like anyone else. The presiding officer closed the public hearing and reconvened the assembly. The presiding officer called for a five minute recess. The presiding officer reconvened the assembly. A discussion followed between the assembly and the mayor regard- ing the contingency fund, sub -contract work being limited to Kodiak Island, and the wording of the sub -contract to be negotiated between the villages and their construction management services. ADSTERMAN, seconded by MCFARLAND VOTE ON MOTION TO TABLE Ayes: Noes: moved to table until July 7, 1987 assembly meeting. McFarland, Austerman Gregg, Stevens, Blankenburg, White MOTION FAILED June 25, 1987 2 Ayes, 4 Noes Page 3 Kodiak Island Borough Special Assembly Meeting The presiding officer called for a five minute recess. The presiding officer reconvened the assembly. GREGG, seconded by STEVENS VOTE ON MOTION TO AMEND MOTION CARRIED VOTE ON MOTION TO AWARD AS AMENDED Ayes: Noes: MOTION CARRIED moved to amend to require a "contract with owner" clause be included in the Larsen Bay contract with the Project Management Firm and the assembly be provided a copy of the contract when it is finalized. Unanimous Voice Vote McFarland, Stevens, Austerman, Blankenburg, Gregg, White None Unanimous 2. Award of Contract for Port Lions School Remodeling/Addition AUSTERMAN, seconded by GREGG moved to award contract for Port Lions School Addition to the City of Port Lions in an amount NTE $1,500,000 with the amendment to require a "contract with owner" clause be included in the Port Lions contract with the Project Management Firm and the assembly provided a copy of the contract when it is finalized. The presiding officer called for public hearing. The presiding officer reconvened the assembly. VOTE ON MOTION TO AWARD Ayes: Noes: MOTION CARRIED ADJOURNMENT Stevens, Austerman, Blankenburg, Gregg, McFarland, White None Unanimous There being no further business to come before the assembly, the meeting adjourned at 9:39 p.m. Pr ding Officer ATTEST: co�� oar, orou h erk AWARD OF CONTRACT FOR PORT LIONS SCHOOL REMODELING/ ADDITION June 25, 1987 Page 4 =3= t