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HomeMy WebLinkAbout1980-07-24 Council Minutes - Work SessionCITY OF KENAI SPECIAL MEETING - WORK SESSION JULY 24, 1990 6s30 - Moot with Atty. Dolahay re/Carr's parking lot problem. 7s00 - Moot with Carr's reproa'entativo re/parking lot problem. Ss00 - SPECIAL MEETINGs Award of Did - Airport Lighting Work Session to follows 1. Cason Lease 2, Wasson Lease 3. Cato 54 Parking 4. Linwood Lana Petition S. Airport Leasing, Gonoral Diaauouion i r 1 `- I -I-- KENAI CITY COUNCIL - SPECIAL MEETING JULY 24, 1980 - 700 PM i-� KENAI PUBLIC SAFETY BUILDING MAYOR VINCENT O'REILLY PRESIDING AWARD OF BID - AIRPORT LIGHTING Atty. Delahay explained that because of the short notice we will have to have unanimous approval of Council to hold the special meeting. We will have to have another bid on the airport lighting job. MOTIONS Councilman Malston moved, seconded by Councilman Measles, to conduct a special meeting for the airport lighting bid. Motion was approved unanimously by roll call vote. Mayor O'Reilly asked what was the status of Ordinance 80-119, Award of Contract for Airport Lighting? Atty. Delahay deferred to Public Works Director Kornelis. Mr. Kornelis said the ordinance was defeated, the purpose of this meeting was to bring it up again. Atty. Delahay said if it was defeated, it should be � given a different number, or a motion should be J introduced to throw out all bids and go to bid again. Councilman Measles asked, couldn't there be a motion to reconsider? Atty. Delahay replied yes. MOTIONS Councilman Measles moved, seconded by Councilman Mueller, to reconsider Ordinance 80-119. Motion passed unanimously by roll call vote. Atty. Delahay explained, all bids came in over engineer's estimate. A telegram was received from IBEW Union objecting to the award on the basis of the fact that 80% is electric, and the bidder is not licensed to do electrical work in Alaska. Mr. Kornelis had called FAA and they did not know whether the 51% stipulation was in the contract or not. Mr. Kornelis had asked us to hold until it was settled. Administration had a conference with Lon Dreka of Coastal Inc., Tom Dwinnel of Air Tech (subcontractor), and Ron Davis of Barley's Trucking (subcontractor). They were told by Mr. Dreka that less than 1/2 was electrical. The problem is not the cost of a lawsuit, it is that if this is awarded to Coastal Inc. or not, we are liable for a lawsuit and it will be tied up till next year. Section 9-A (instruction to bidders) I-" I 6 - -- KENAI CITY COUNCIL JULY 24, 1980 Page 2 states we can reject all bids. The problem is, the general specs included 51% of the work will be performed by primary bidder. There's nothing in our ordinance that requires this, FAA does not, and the State does not. The simplest way is to refuse all bids, remove that spec from the require- ments, and go out to bid. The problems are: 1. No one may re -bid 2. The bids may go up Atty. Delahay continued, if you use this action very often, we may not get bids. No matter which way we went, wo may be liable for a lawsuit. Councilman Ambarian noted the 3rd paragraph in the instructions wipes out the 2nd paragraph. Why can't Coastal Inc. assign the contract? Atty. Delahay explained Coastal Inc does not have a contract until it is awarded. If he assigns it, he has to have permission of the owner (us). They do not have an electrical license. Council- man Ambarian replied they can use someone else's li- cense. Councilman Hall asked how much is electrical? Atty. Delahay and Councilman Ambarian replied Coastal Inc claims 39%. City Manager Brighton asked, suppose we don't give it to the bidder, can he go to Court too? Atty. Delahay replied yes. Councilman Ambarian noted we don't have the money anyhow. Atty. Delahay said the time element is important. Either way we would be in a lawsuit. By throwing out the bids, & starting over, the paperwork would be the same. Mayor O'Reilly asked Atty. Delahay, in the general proposal, isn't there a provision to waive the requirements? Atty. Delahay replied only for minor ones. Also, any award not made before July 29 is going to have to include compliance with minority business employments plan. (10% of the work must be minority hire) Mr. Brighton asked, is it possible, if the Council throws all bids out, that any number of the businesses could sue over that? Atty. Delahay said he didn't think so. Mr. Brighton noted the bid totals are not secret any more. Councilman Ambarian said we can reject all bids because all are over the amount. Atty. Delahay said that works for all bidders. He doesn't know if any of the bids have minority contracts, but this could delay. Mr. Brighton noted the reso- lution says, "dependent on FAA funds." Councilman Malston asked, do we know if FAA will pay? Mr. Kornelis replied verbally FAA has said they will pay. The City has the right to reject bids on their portion. Airport Manager Swalley said the Minority k , J' KENAI CITY COUNCIL JULY 24, 1980 Page 3 Business Enterprise goes into effect July 29, it requires all contracts after that date have minority hire. Our past history is 1/2 of 1%, it must be 58-15%. If we go out to bid, it must have minority hire, and the contractors must name the minority hire. Mayor O'Reilly reviewed Atty. Delahay's recommendations, and noted we should: 1. Reject all bids 2. Re -bid Councilman Hall asked if the City had any contracts with Coastal Inc. Mr. Kornelis replied no. City Manager Brighton asked if there were any with sub- contractors of Coastal Inc. Mr. Kornelis replied, the Spur Highway lights. Councilman Ambarian said the paving in the airport also. Mr. Kornelis added there has been some work with Norcon. Councilman Ambarian said he believed in contractors going by the specs. If we should reject the bids we are open to more suits than anything else. Mr. Brighton said in his office the contractor said he would do 50% of the work. Councilman Hall noted it was not in writing. Phil Bryson, of Craig, Bryson s Freas, spoke. He said the intent of the paragraph tit is a general paragraph, the per cent varies depending on the agency) is to discourage layers of subs, to en- courage the prime contractor to stay on the project. Mayor O'Reilly asked Mr. Bryson, in his opinion, is 390 figure accurate? Mr. Bryson replied he has not seen the breakdown. The proof is up to the contractor, if they live up to the specs. Mayor O'Reilly asked Atty. Delahay, 39% is the amount of electricity? Atty. Delahay replied yes, but the prime contractor will do 51%. It doesn't say they are going to. Councilman Ambarian asked there would be two subs, what would be the cost? Mr. Kornelis replied, they would supply materials. The contract requires more than that. Councilman Am- barian said it is highly unusual for the sub to furnish materials. Mr. Kornelis said it is his opinion that Coastal is furnishing bonds for the two subs. The two locals couldn't get bonding, so Coastal Inc is furnishing them. Councilman Hall said Coastal Inc. providing bond for the 2 subs is common practice. But where the 51% is concerned, it is obvious that the City can accept or reject. Atty. Delahay said the legal problem is if we reject we are up to a lawsuit. Mr. Kornelis read the clause r' S:u , i KENAI CITY COUNCIL JULY 24, 1980 Page 4 in the contract. Councilman Hall said the only way " we have is after vie award the bid, we have to go by what the bids call for. Mr. Brighton said the burden of proof is up to the contractor to provide 519 of the work. Council cannot decide that. Council- f man Ambarian noted the contractor had been asked and didn't answer. Councilman Malston asked what will happen if we reject and re -bid? Mayor O'Reilly replied we run into minority hire. Mr. Brighton said he { estimates a 108 increase then. Councilman Ambarian f said rewriting the spec but not taking out the 50% clause will not stand up in court. Councilwoman Glick said all the bids are over estimated cost. She's not talking about 51%. That is legitimate reason to go out to bid again. This has seldom � happened. They will not necessarily not bid again. i Councilman Measles said the other problem is the minority hire. At least two of the companies plan on doing tise work on their own. If they have to go out to bid again, they will be higher. He doesn't think we can judge 51% until we see the figures. Mr. Brighton said not necessarily, they don't want the figures to become public. Atty. Delahay said they say 390 is electric,they do not say how much will be sub -contractors. we told the contractors we would not go public. After a recess, Atty. Delahay continued, regarding the letter from wince, Corthell, Bryson & Freas - they recommended the bid go to Coastal Inc. Neither of the last two requirements have we received. #3 is not possible, they are not a licensed contractor. Councilman Hall asked when were the bids opened? Mr. Korneiis replied, July 15. MOTION: Councilwoman Glick moved, seconded by Councilman Ambarian, to adopt the resolution. I MOTION, Amendeds Councilman Ambarian moved, seconded by Councilman Ralston, to amend the motion to state Coastal Inc. must meet all specs within four days of the meeting, or July 28, 1980, at 1200 Noon. If they don't, award will go to the next lowest bidder, providing FAA and State funds are available. �- 1 . . KENAI CITY COUNCIL JULY 241 1990 Page 5 Councilman Malston asked, if Choy don't?(moot all specs) Councilman Ambarian replied, we will have a special meeting. Mr. Swalley said he will call Coastal Inc. July 25 on the result. Councilman Ambarian asked if the State has been contacted on this situation. Mr. Kornelis replied yes. Councilman Mueller asked if this includes the contingency that Winco, Cortholl, Bryson S Freas had in the letter? Councilman Ambarian replied yes. Mayor O'Reilly asked what do we know about Sunrise (contractors)? Do we have proof they will do 51$7 Atty. Delahay noted they are electrical contractors. Councilwoman Glick said if they are electrical contractors, can they do the other work? - Councilman Ambarian asked is any part of the work 51% of the contract? Mr. Bryson replied the electrical is 51% of the work, by their figures. Councilman Ambarian said we would ask Sunrise for proof now. Councilman Hall asked what if they are just electrical and the electrical is 39%? Councilwoman Glick said if you make it for one, you should make it for all. Councilman Ambarian asked Atty. Delahay, if the amend- ment requires the contractor to get bid specs, aren't these points regarding electrical work pulled out of the specs? The engineer put this in when the question aroma. Councilwoman Glick said, what we are asking is for Coastal to just moot specs. Councilman Ambarian said you can't do the work without a contractor's license. VOTE, Amendments Motion passed unanimously by roll call vote. VOTE, Main Notion; Notion passed, with Councilman Hali, Mueller, Ambarian, Measles, Mayor O'Reilly voting yes; Councilman Malston and Councilwoman Glick voting no. ADJOURNMENTS Meeting adjourned at 9siS PM. Respectfully Submitted, &:::=4z 29 xi� J t Whelan, City Clerk f, I J I " I I ,