MINUTES OF SPECIAL BOARD MEETING
TRUSTEES OF BARTON HILLS VILLAGE
April 28, 2008
The special meeting of the Board of Trustees was called to order by President Laporte at 6:03 PM at the Village Hall. The purpose of the meeting was to discuss matters pertaining to the Village Administration Center Project.
ROLL CALL Present: Trustees Al-Awar, Boddie, Bogat, Butterwick, Langford, Laporte, Lindstrom, MacKrell and Wilkes. Absent: None.
Others attending: Asst. Treasurer Redies, Supt. Esch and VAC Committee member John MacKrell.
Mr. Lindstrom referred to the material distributed by email. He stated that in the time since the Special Meeting on April 17, 2008when the Trustees voted to award the VAC contract to Construction Solutions, three new developments have taken place:
1) The field supervisor for Construction Solutions has left the company, and has been replaced. The VAC Committee met with the new supervisor.
2) Phoenix Contractors is still interested in the project and has reduced their bid (now 6% higher than Construction Solutions)
3) Court records for both companies have been examined.
In light of these developments, the VAC committee asked for Board reconsideration of the contract award. The committee still supports the choice of Construction Solutions on a split vote and reaffirms that either company would be a satisfactory choice.
Discussion included the following.
Court Records Neither company disclosed any legal matters in response to the BHV question of lawsuits regarding contracts. Research indicates that Construction Solutions has been involved in five lawsuits including non-payment of a subcontractor which was settled for a lesser amount after 18 months, followed by a countersuit. Phoenix Contractors has been involved in four court cases including one involving defective materials. As a larger company, Phoenix Contractors may be a more likely target for litigation; however all companies are subject to disagreements that must be settled in court.
Personnel Change All companies are also subject to unexpected personnel changes. It is a concern that Construction Solutions appears to be more thinly staffed, but the new supervisor presented himself as confident and knowledgeable. This is a simple project with a small element of commercial design (ADAcompliant). Architect Ed Wier’s concern about the risk is significant. Phoenix Contractors’ owner is well known with extensive experience; trust is more important than cost. Construction Solutions offered a longer warranty and late completion payments as an indication of confidence in their abilities.
Finances The difference in cost is relatively small in overall perspective. Trust is worth the cost. However, the goal of the project is to remain cost effective. Desired options have been rejected as too expensive. There is concern that Construction Solutions may not have the resources to meet unexpected difficulties but both companies are vulnerable to changing economic conditions. Phoenix Contractors has a stronger bank recommendation with more projects underway. Construction Solutions may not have any other projects in progress; their financial position may be more tenuous. The cost of changes is significantly higher with Phoenix Contractors; a couple of changes could add a lot of expense that would overshadow the small amount of difference in the overall bids. If either company fails, a bonding company would step in to complete the project as contracted (with their choice of builders). The contract won’t be approved without the bond.
Motion Mr. Al-Awar moved that the motion approved by the Barton Hills Village Board of Trustees on April 17, 2008 to enter into contract negotiations with Construction Solutions for the Village Administration Center project be affirmed. Mr. Boddie seconded. The motion carried in a roll call vote with Trustees Al-Awar, Boddie, Bogat, MacKrell and Wilkes voting yes; Trustees Butterwick, Langford, Laporte and Lindstrom voting no.
Mr. Boddie moved the meeting be adjourned at 6:58 PM. Mrs. MacKrell seconded; the motion carried.
Janice K. Esch, Deputy Clerk