TC Minutes 08-18-1981• •
MINUTES OF THE SPECIAL MEETING
OF THE TOWN OF AVON, COUNCILMEMBERS
HELD AUGUST 18, 1981 - 7:30 P.M.
The Special Meeting of the Town Councilmembers of the Town of Avon, Colorado was held
in the Municipal Building in the Council Chambers.
The meeting was called to order by Mayor Alpi at 8:10 p.m. A roll call was taken with
the Councilmembers in attendance with the exception of Allan Nottingham and A.J. Wells
who was absent. Also present were Town Attorney John Dunn as well as members of the press
and public.
This Special Meeting was called to deal with the Resolution awarding the construction
contract for the Mall.
Dean Harper with the firm of Denton,Harper,Marshall and Associates, consultants for the
Town Center Mall approached the Council.
He stated that they had put the phase I construction out to bid and received three bids.
The results of the bids were: FireLake Construction, Inc. $550,000, Langly Construction,
Inc. Denver, Colorado, $600,000 and Hensel Phelps, Construction in the amount of $606,000.
These were all base bids.
He stated that with careful review and analysis they recommended to the Advisory Committee
that they reject all bids, that they were substantially in excess of a reasonable phase
one budget. It was in recognition that the overall Mall was programed in 2 phases, the
construction cost of which would not exceed one million dollars which included
professional fee budget of $50,000 so that would leave approximately $950,000 for the two
phases. After negotiating and reviewing with the construction companies that submitted
bids, Mr. Harper stated they recommended the committee to negotiate the contract with
Hensel Phelps Construction Company.(HP)
Bill Post representing H.A.L Construction approached the Council. He stated that this
meeting would be only a conditional approval to proceed ahead with these negotiations.
He stated that in their opinion that the Advisory Committee is at presently been under
a misconception as to how the funds from the bonds can be used, as to the availability of
spilling over the million dollars off of Tract G that is owned by the Town onto the
adjoining lot owners land for a contiguous development of the Mall.
He also stated that there was an April 16, 1981 Mall Agreement that was executed and he
felt that the obligations under that Mall Agreement are going to have to be intermit with
this District and the Bond issue.
Don Buick approached the Council. He stated that Boettcher and Company came to the
Advisory Committee, Boettcher made a commitment to them, Boettcher stated 3 to 5 points,
,Qthat's 30,000 to 50,000)\ onha million dollar issue. Based on that the Town of Avon after
75,-i Avon Center had secured Sherman & Howard on the Bonds, the Town of Avon relieved us of
that responsibility tonite and somebody is going to ask for the fee of $30,000, Sherman
& Howard, we also have receipted on the basis that Steve McConnehee that they would
buy that, they have incurred about $50,000 with Denton, Harper, Marshall even though
Avon Center, Peregrine paid their money, the Town has not dispersed the money that they
paid to the Town. He stated that if the Mall would not be financed with bonds, that
he was not sure they could go with a million dollar Mall.
Mr. Buick stated that he would like Council to consider the Resolution to resolve tonite
and give them permission to pick a team and go with that team. He stated they are aware
of Hensel Phelps capability of getting the Mall completed.
Ken Hayes representing Peregrine Properties. Mr. Hayes suggested that they take the
million dollar bond that will come from the bond issue, allocate $750,000 to be used
within the Tract G, the remaining $250,000 to be used for soft cost, then the Town who
had agreed to put up $250,000 for soft cost, would instead allocate those funds for the
balance of the Mall for improvements between Tract G and the building line on the basis
of $125,000 this year for phase I and the other $125,000 next year for phase II.
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John Bell president of FireLake Construction, Inc. approached the Council.
He stated that. in all fairness that if the bids were being withdrawn as stated, he thought
FireLakeshould_ be able to re-negotiate the bid with HP. He stated that they were the
lowest bidder by $50,000 and that they are bondable which meets the criteria of being
a qualified bidder.
Councilwoman Davis stated she felt very uncomfortable with the fact that the low bidder
was not given a chance to revise his bid, with only 3 bids and the negotiating with
only the one contractor and just half negotiating with one other is not enough. She asked
if they thought because FireLake Construction was small that was the reason to disqualify
them.
Mr. Harper stated that was one of the major concerns. They were also looking at the
financial strength, experience, capability. With all this in mind they recommended to the
committee to go with HP.
Mr. Nick Dalba stated they don't know what FireLake Const. can do, but they do know what
HP can do.
The Council were reminded once again that this would be for a conditional award and not a
final award.
Councilman Erickson stated that he had informed the Mayor/Town Manager as of yesterday when
the negotiations for the contractor, an interest that he has in the company that made
a bid on a sub-contract regarding the Mall. He stated that he has not taken part in
any of the negotiations, have not taken part in any of the selection process of the
Advisory Committee in selecting a contractor and he stated he will step down from the
Council. The Town Attorney stated that if Mr. Erickson stepped down there would not be
a quorum. He suggested that Councilman Erickson just abstain.
The Mayor stated that the concept of bidding is ludicrous. He stated that in his mind if
someone makes a proposal on a project that is about as democratic as you can be.
Councilman Doyle stated that he could not make a decision on this issue because he knew
nothing of the outcome of the meeting.
Councilman Kumpost stated he was in a position to know John Bell and has had business
dealings with him. He stated that he does not feel uncomfortable with Mr. Bell's company
and he stated he could put a lot of weight on the fact that anybody that can be bonded
for a million dollars would be strong enough to do a million dollar job. He would suggest
to give the council time and to hold off giving any decision for just one week and that
would give them time to determine which contractor should be awarded the contract.
There was a lengthy discussion that followed.
Don Buick stated that they had made some deletions such as, 6 ballards out of 20, split
rail fence, Kiosk, drinking fountain and surface planters.
Bill Doyle moved approval that the Advisory Committee negotiate with the contractor. The
motion was not seconded and a decision could not be made.
Councilwoman Davis stated she would urge them to continue negotiations with both contractors.
Mr. Dalba: "We have negotiated and would not change their minds even after a week, they
would still go with HP.
Bill Post stated that their vote did not count because they did not have the controlling
interest. Mr. Buick asked the Town Attorney who was going to pay Bond Counsel. The Town
Attorney stated that he did not want to get into that issue at this time.
Mr. Buick: "Avon Center would like to go on record, "We are not going to pay Bond Counsel
fees", we cannot move forward anymore, we are going to have a nice piece of grass between
our properties."
Mr. Dalba: "can't you reconsider your vote?"
Councilman Kumpost: "Let me explain why I couldn't second the motion. There are still
other issues that have to be resolved, I don't see the urgency of right away tonite to
make a decision. I would like to see and hear the opinion of the two Councilmembers that
are absent and I don't see where failure to act on this tonite is an indication to you
that we are not interested to see this Mall go, it's not an indication on my part that
I'm holding out on one contractor as opposed to the other, that's not my feeling on this,
it's strictly that there has been some controversy that there has been some new facts
to light just tonite and I think that with the unsure feelings on the Board tonite I think
it would be negligent on our part to the people of the Town for us to act on something
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tonite without two Councilmembers being present hopefully next week just so that there is
just more support in the final decision.
Mr. Buick: You are entitled to your comments, but as far as Avon Center is concerned,
we are dropping the Mall, we cannot continue to proceed week after week with problems
coming up, we delegated this work to-,the Advisory Committee worked very hard to get a
super Mall within budget and with a contractor who :we; believe has the capability to
deliver with very little risk and we have come here to ask the Council for their approval
to go with HP and you have indicated by your vote that you can't.
Councilman Kumpost: I don't think we have done that at all, we haven't said we can't go
with HP, that's not at all what I said.
Mr. Buick: All we want are your votes that next Wednesday, if we get the bonds paid for,
next Tuesday nite when all convene again, to be able to sign that contract, in the mean-
time I know we are not going to have a FireLake problem, we are not going to have problems
cropping up, we can't do that, tonite is the nite'
Mr. Dalba: Just give us the authority to go and negotiate with HP, that's all we are asking.
After some discussion Bill Doyle reopened his motion for approval as was stated before.
The motion was seconded by Sheila Davis and was carried with Steve-Erickson abstaining.
Councilman Erickson stated he would welcome any help that he could get from the Council
on these committee meetings or any of the meetings that he has to attend.
There being no further business Steve Erickson moved that the Council adjourn and Larry
Kumpost seconded the motion. The meeting was adjourned by Mayor Alpi at 10:45 p.m.
Respectfully Submitted:
6A JL==
Patricia J. Doyle, wn Clerk
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