BOS - September 18, 2002 Workshop

BOS - September 18, 2002 Workshop

Postby Suzanne Kane » Wed Nov 12, 2008 2:57 pm

Board of Selectmen
Joint Meeting
September 18, 2002
Approved November 5, 2002



Joint Meeting with Board of Selectmen, School Administration, CMS, School Committee, School Building Committee, and Finance Committee.

Minutes taken from Video Tape of meeting.

Madame Chairman Shirley Mosczynski called the meeting to order at 7:00 pm. In attendance: Board of Selectmen: Rich Preston, Ron Forget, Edward Therrien, and Executive Administrator Ken Mahony; School Administration: Connie Verge, and Mary Stone; CMS Project Manager Paul V. Griffin, Jr.; School Committee: Shirley Downs, Sandra Raines, and Derek Brown; School Building Committee: Jack Blatchford; Lynlee Fertal; Mitch Cohen, Daniel Sheehan, Steve Carroll, Pam Schwartz and Leslie Breault; Finance Committee: Pam Holmes, and Bill Pybas, Town Accountant Rich Mathieu, and Town Treasurer Sharon Brotherton.

Handed out at time of meeting is a memo to the Board of Selectmen and the Finance Committee, from Ken Mahony, dated September 18, 2002, re: Material for tonight’s meeting; Open Monetary Issues related to Douglas schools construction project, dated September 13, 2002, prepared by Marc Zawatsky, CMS Project Manager; email to Jack Blatchford, from Mitch Cohen, dated September 17, 2002, re: Updated draft handout attached, copy of Budget changes, School Building Project, from School Building Committee, dated September 18, 2002, and an email to Paula Markle, from Sandra Raines, dated September 17, 2002, re: Saturday’s Meeting / This is for Connie’s FYI.
• Overview: The Board of Selectmen asked for this meeting to be informed of the time line and financial state of the School project. School Building Committee Chair Jack Blatchford turned the meeting over to CMS Project Manager Paul Griffin. Mr. Griffin reported that they are erecting steel at sector C, one portion of the building, the second floor concrete has been poured and they hope to start the roof soon. The Contractor is about 30 days behind. Mr. Griffin has asked that he submit a new schedule to show how he will get back on schedule. He stated that the delay in getting the town water line is causing problems and is their biggest problem. The Middle School is done and they are currently going through their punch list. The Elementary School steel is being erected and they hope to have it done by October 7th. Jack Blatchford stated that the Building Committee is happy with the progression, stating that CMS and the Clerk of the Works Mark Zawatasky have been a big help. Finance Committee Chair Pam Holmes asked for the initial cost and if they come in on target. She was told that they don’t know, they received a lump sum bid from the contractor and have asked that costs be broken down but so far it looks like everything is on budget. School Building Committee member Mitch Cohen explained that there were three separate costs, one for each school, but they were bid together for cost effectiveness. The costs are being broken down now. Jack Blatchford stated that the costs for the Middle/High School were $230,000 and the Elementary were $975,000. School Building Committee member Lynlee Fertal explained that those are bookmark amounts – not construction costs. Finance Committee member William Kraus asked what has caused the 30 day delay. Paul Griffin explained that the steel fabricator is not getting his drawings in and approved from Consigli. When asked if the drawings are done now, Paul Griffin stated that they were not, 50 sheets are in dispute but he was promised that they would be done in 24 hours. School Committee member Derek Brown asked if there is a penalty. Mr. Griffin stated that there is a $1,000.00 per day penalty and remarked that charging a penalty doesn’t do us any good, we need the school. He then stated that if the contractor is off schedule or has no cash flow, he can be put in default. This is a two stage process. The contractor is first put in default and then asked how they will rectify the problem. Mr. Griffin stated that Consigli seems like a very cooperative company and he does not feel they will have to exercise these options. Jack Blatchford stated that he has asked Consigli for monthly updates so that they can see potential problems before hand. William Pybas asked what costs are due to the architecture leaving things out and asked if these could be considered as errors and omissions. The School Building Committee stated that they do not know. Mr. Griffin stated that he does not think that this situation can be categorized as errors and omissions, stating they were unknowns, ie: ledge. Shirley Mosczynski asked if they are still looking at 2003 for completions. Paul Griffin answered – yes.
• Significant Budget Changes: Mitch Cohen went over the figures on the Budget Changes sheet. He stated that the budget changes are due to additional items since the budget was created. Additional costs include buried stumps on site and ledge. When questioned about the ledge, Mr. Cohen stated that the footage of ledge was not known because it did not scan correctly. The borings did not catch all of the ledge. They took the low bidder – they had no just cause not to accept the bid. Pam Holmes stated that back in November Ken Mahony said the bid was unbalanced. She wanted to know if it was unbalanced, how they could accept it. Paul Griffin explained that if the Town had not awarded the bid, the contractors could have put a hold on awarding which would have delayed the project. He also explained that when you do borings it’s hard to get an accurate reading, especially when you have about 25 acres. Town Treasurer Sharon Brotherton asked if legal and bond fees are paid by the interest on earnings. She was told the budget would be adjusted. There was discussion on billings from contractors which have doubled in amount. Mitch Cohen explained that the school is being built for 700 students although the approval was for 600 students.
• Technology Budget: Mitch Cohen explained the Technology budget line. This line covers computers, phones, projectors, etc. Phase II would cover a technology consultant, which has not taken place yet. Sharon Brotherton asked if they have taken into consideration grants for Technology. Paul Griffin answered no. William Pybas asked if the existing equipment is staying at the current High School. He was told yes. Lynlee Fertal explained that the Technology Consultant will determine what will be staying and what needs to be ordered. Paul Griffin explained that the number is not figured out by how many students but by what it will take to outfit a school. Stating smaller schools cost more.
• Contingency Budget: Mitch Cohen explained the contingency line of the budget. He stated that the $245,000 contingency is just about gone. He said it is insufficient to continue when you take money away to use elsewhere. He said normal contingency is 5% and this budget used 10%.
• Non-School Department Requirements (unbudgeted): Mitch Cohen explained the Non-School – unbudgeted line. He said this was due to the increase in the water line size which they had no choice with because Fire Chief Gonynor insisted on the change. Mr. Mahony reminded Mr. Cohen that the Fire Chief is the one who originally requested the 12 inch line. SMMA was the one who changed it to 10 inches. Mr. Mahony stated that he, School Superintendent Connie Verge, and Architect Jordan O’Connor were told in a conference call that there was money in the budget for the 12 inch lines some other place and he there for feels it is not an additional charge. Paul Griffin stated that the money Ken Mahony is referring to was absorbed and lost. He stated that they are still working to get the contractors costs down.
• Unknown/Potential Costs: Mitch Cohen explained that they are currently in negotiations with SMMA for $225,000 for additional work. The School Committee said they would take it up after the project, but SMMA wants to be paid now. Marc Zawatasky suggested the $87,800 amount which is in the budget now. Shirley Mosczynski asked if the School Building Committee authorized the additional work or was that part of their contract. Jack Blatchford said it was not the School Building Committee but different administrators that authorized the additional work. The additional money also includes interest on unpaid bills. Also they had to use a staff person to fill the vacant Clerk of the Works position and they charged at the staff person’s higher rate. Shirley Mosczynski asked for a copy of SMMA’s request for the additional $225,000 and asked who gave the authority for the work. Jack Blatchford explained that is why it is in negotiations. He said that last November 2001 a letter was sent to the Board of Selectmen, School Committee, and School Building Committee. Shirley Mosczynski asked for a copy of this letter. Mitch Cohen stated that this was when the School Building Committee was under the Board of Selectmen and not in existence. School Superintendent Connie Verge stated that there was a former Town Administrator that asked about different scenarios and SMMA did the work. She stated that she authorized the replacement of the Clerk of the Works but did not realize it was going to be more money. She believed they need the position filled. Jack Blatchford concurred that Ms Verge authorized a Clerk be put on the project, not the extra cost. Lynlee Fertal explained that the School Building Committee has not paid SMMA the additional costs; it is in the budget because it is a potential settlement. Paul Griffin explained that the $87,800 is a settlement recommendation of the $225,000. A part of the $87,800 was a reimbursement line item budgeted for payment to an outside firm to do permitting processes which they ended up doing in-house. Paul Griffin feels they are eligible for this reimbursement. SMMA submitted the bills a long time ago – they just didn’t get paid. Sharon Brotherton stated that she would give Paul Griffin a document regarding the bills SMMA say’s were not paid.
• Additional Discussion: Shirley Mosczynski stated to Mitch Cohen that she would like to see the budget items that are still unclear, listed out. Pamela Holmes stated that under the main budget items – the request is unclear. Mitch Cohen said that it will be clarified. Pamela Holmes asked if the $770,000, which was authorized at the last Special Town Meeting, is added into this document. Are the lightening rods and air conditioning still being included? Mitch Cohen stated that the contract is still being worked on. Paul Griffin said the contractor is not legally responsible to hold the prices once the contract was signed. The air conditioning is actually coming in higher. Pamela Holmes stated that when the Town voted, it was her understanding that the contract was still open and that is why we had to vote quickly to add these items. William Krauss asked who is responsible for following up on these items and authorized signing the contract. Paul Griffin stated that they have put in an order to proceed. Shirley Mosczynski asked if moving the de-mountables was used from the $770,000. Connie Verge stated the money was used from other places to move the de-mountables. There was a question about the language on the Article for the $770,000, wasn’t it earmarked for specific items? Mitch Cohen stated that per Marc Zawatasky, the $770,000 should still cover the remaining items. Leslie Breault feels that when School Committee Chair John Durkin presented the article, the wording was different. Ron Forget asked for a time line for putting this on Town Meeting.

The tape ended.

Respectfully submitted,



Suzanne Kane
Administrative Assistant

___________________________________________________________________________
BOSQuestions from Joint BOS, FinCom, SC, SBC meeting
Held 9/18/02



Identify the source of current budget's overages in categories of 1) Owner's cost, 2) Unknown, 3) Errors and Omissions - Bill Pybas, FinCom

Provide analysis of the borings that were taken to determine the quantity of ledge to be removed. Did the borings meet industry standards? - Bill Pybas, FinCom

Does the current budget for Legal Fees include bonding costs? Bonding costs should be paid thru interest earned. Sharon Brotherton, Town Treasurer

Do we need $100K for legal fees for the project? Sharon Brotherton, Town Treasurer

Provide an analysis of SMMA reimbursables both actual and budgeted. Jack Blatchford, SBC

Provide backup for Furniture/Equipment budget of $1,260K and the Technology budget of $925K. There was significant discussion on this item. The questions, concerns, comments in no particular order are: what does the technology budget include, when will the detail of the $925K and $1,260K be available, are P/A system and outfitting of the auditorium included. Rich Preston, BOS; Pam Holmes, FinCom; Bill Pybas, FinCom; Shirley Mosczynski, BOS

How did the SBC manage the communication process which resulted in the Clerk of the Works overage? Who authorized the change and how was the change incorporated into the budget? Shirley Mosczynski, BOS

Provide a copy of the SMMA request for $225K in additional costs. Shirley Mosczynski, BOS

What does the proposed settlement for $87K to SMMA include? Are permitting fees included in the settlement? Shirley Mosczynski, BOS; Adelle Reynolds, Douglas Building Inspector

Provide an update of the budget-to-actual review (to be performed by the SBC) with any adjustments to current request. Shirley Mosczynski, BOS

Provide items on the Alternatives list with their budgeted cost. Rich Mathieu, Douglas Town Accountant

Have the items authorized at the 4/02/02 STM ($770K) been incorporated into the contract? Provide a copy of the STM article. Shirley Mosczynski, BOS; Pam Holmes, FinCom

Who has the action to proceed on incorporating the Air Conditioning into the contract and when? Bill Krauss, FinCom

When is action required on this additional request for funding? Ron Forget, BOS

New questions, comments

Paul (CMS) summed up this request as the "worst case scenario". What other options has the SBC reviewed? What was the outcome of that review? Paula Brouillette, BOS

Who is responsible for reversing the bonding costs already charged to the project? When will that reversal be incorporated in the SBC budget? Paula Brouillette, BOS

When will the analysis of the actual expended-to-date be available from the SBC? Paula Brouillette, BOS

Paul (CMS) made the comment that the original budget for Furniture and Equipment was formula driven ($1,800 times 700 students). He mentioned that the $1,800/student may be low due to the small school size. Are we planning to furnish for 700 students in all categories? Paula Brouillette, BOS

Added 10/18/02

Provide costs for M/HS and Elementary additions by General Contractor and site contracts - Pam Holmes, FinCom

Provide cash flow and construction schedule by month - Pam Holmes, FinCom
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