Building Needs Assessment Work Group Minutes

May 16, 2022 1:00 p.m.

Hybrid Meeting:  In person or virtual via BlueJeans

Members:

Jean Anderson             SCLS Consulting Services Coordinator

Corey Baumann          SCLS Delivery Services Coordinator.  Arrived 1:45

Nan Brien                    SCLS Board Trustee - late

Kerrie Goeden             SCLS HR & Finance Coordinator

Jesse Stewart              SCLS Fleet Manager

Vicki Teal                     SCLS Technology Services Coordinator                                  

Martha Van Pelt          SCLS Director

Kristi Williams             SCLS Board Trustee

Guests:

Devin Flanigan               Keller Inc. Project Manager

Deb Haeffner                 SCLS Consultant

Call to Order by K. Goeden at 1:00

Approval of previous meeting minutes:  May 5, 2022        

a.         Motion by J. Stewart to approve the minutes 

b.         Second by J. Anderson

c.        Approved

Reports:

· Bid Opening – M. Van Pelt and D. Flanigan

o 7 contractors on site at opening

o Fewer bidders typically means higher bids, D. Flanigan was disappointed in the bid opening and responses. Details under discussion.

· Baird Financial Services meeting with Dane County Comptroller – K. Goeden and M. Van Pelt

o Met with Charles Hicklin, Dane County Comptroller, to discuss Baird Financial proposal.  In the meeting, Baird Financial changed the proposal to not ask for both the $5.5 Million and $1 million – just the $1 million now and have the framework in place for the $5.5 million down the road when interest rates drop.  Mr. Hicklin will continue to look at the proposal.  He thinks it is a lot of work for a little return and no benefit to Dane County.  BCPL has increased their rate from 4% to 4.75% for a 20 year loan.  Favorable factors from February 2022 have changed to our detriment as of May 2022.

Discussion:

D. Flanigan:  Market is against us with demand for services, supplies have 80% increase, less labor available. Lots of construction work being done with less labor available. Most bids came in higher than the projected Keller budget amounts.  Closer to $9 million for total project cost.  Current budget is $7 million ($5.5 million via BCPL (4%), $0.5 million SCLS contingency, and an additional $1 million to come via BCPL (4.75%).

· Option A) Reject all 27 bid units and rebid all 27 units

· Option B) Reject bid categories which either have no bids or over budget bids- D. Flanigan has done this option the most often.

· Option C) Keep all bids and only rebid the categories which received no bids – there were several inflated/high bids is a problem with this option

o 12 units were acceptable

o 14 units could be rebidded

o 1 unit TBD – metal building to keep from Keller

Federal Infrastructure Plan roll out creates competition and higher costs for SCLS.

Lead times for pre-cast are at 52 weeks.  Option to use existing building.  Small office space buildings available.  Delivery/warehouse space is wanted by all purchasers.

Cost breakdown of current project budget is 1/3 of the cost is to build Delivery and 2/3 of the cost is to build the Offices.

Options:

· Walk away – what are the costs to do this?

· Search for used buildings

· What is the cost to build just data center & warehouse & some offices 21,000 sf

· What can we do/build with a $7 million budget?

· Fen Oak St lease for office – Listed for sale at $3.875 million

· Ask D. Haug to review any new possibilities of existing building stock.

· Ask city for extension on timeline?

· What is the drop dead date with city? To pull out.

· Lease new smaller space/s

Topics tabled for Upcoming meetings:

· Schedule Admin and Delivery meetings to discuss shared HR and filing spaces

· Median Update

· Utility Applications

o Fiber, power, water, phone, cable, internet, airport permit?

· Building Permit

Homework for Next Meeting: 

· Make final decision to complete bidding project.  Work Group is leaning toward no.

· What would change if we rebid?

· D. Flanigan/Architect will create options of what we can build with smaller building and at what costs? How much can we build with the current $7 million budget?

Next Meetings: 

May 18:  1-3 - cancelled

May 19:  1:30-3:00 BNAW meeting is at Olbrich Gardens with lunch at 12:30, meeting at 1:30

BNAW celebration at Olbrich Beer Gardens afterward.  Nan Brien will not be present. M. Van Pelt will attend virtually.

Adjournment:  2:45

Parking Lot: 

· Notify Michelle Drea at the City of Madison Assessor’s office when we purchase a site.  mdrea@cityofmadison.com