02112025 Board of Public Works Meeting Minutes

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AGENDA REVIEW SESSION FEBRUARY 6, 2025 24 The Agenda Review Session of the Board of Public Works was convened at 10:30 a.m. on February 6, 2025, by Board President Elizabeth A. Maradik, Vice President Joseph Molnar, and Board Members Gary Gilot, Murray Miller, Breana Micou, and Board Attorney Michael Schmidt present. The Board of Public Works Clerk, Theresa Heffner, presented the Board with a proposed agenda of items presented by the public and by City Staff. Board members discussed the following item(s) from the agenda. RESCIND OPEN MARKET CONTRACTS Senior Project Engineer, Zach Hurst was present to discuss items S.A., S.B. and S.C.: He explained that that these are related to a development agreement with a gentleman named Jordan Richardson with Property Bros. The City is partnering with him in the rehabilitation of a fourplex and a triplex over on the Near Northwest side. We're also participating in the construction of three (3) new duplex units on Sherman Ave. This is a $225,000 development agreement and we have gone through about a dozen public work's quotes, about a half dozen material purchases, and then a few more professional services with Abonmarche and did some renderings and some site surveys. These have been challenging procurements, and the Board of Public Works does not often dabble in residential construction, so finding the right people to work with and getting those people to fill out the city paperwork the way we need them to has been a challenge. Sometimes it has worked out and we've made some new relationships, however, this time it did not work out. Mike's Construction is a very small firm out of Constantine, Michigan. We hoped that they would do the foundations for these duplexes, but Mike's construction was not able to do that. Our development partner, Mr. Richardson, had to move forward with his duplexes, so using his own funds, he took care of the foundation work through our material purchases, and we have actually paid for the lumber that you see constructed now. What we are asking for is that the Board would rescind these open -market contracts and that would free up some funding to do further material purchases in accordance with the City's purchasing policy. We have purchased some windows, shingles, and similar items for the other units, and so we think that could work out well here. This is a small contractor, and they just weren't able to get out there to the site in the time frame that we needed them to. Mr. Gilot asked if we had anything on record from this contractor where he acknowledges that he missed the window. Mr. Hurst noted that there is a signed document between our development partner and his contractor where he admits that he wasn't able to perform and had to walk away, so we do have documentation of that, and it can be added to the file. Mr. Gilot stated that he thinks it is good to have on the record because it gives the full context that we're not yanking the rug out from under a small businessperson, he just couldn't perform on time and he acknowledged and agreed to that in writing. Mr. Miller asked if the purchasing of material items would go out for bid. Mr. Hurst advised that if it is above $10,000, the City policy states that we get three (3) quotes similar to public works, but just material purchases. It's easier to order the material and have it delivered to the sites and let our partner handle the labor. Mr. Gilot asked if the city would consider Mike's Concrete to be a qualified bidder on future work. Mr. Hurst advised no and added that he thinks it would be challenging to make that argument. He doesn't expect they're ever going to come back and quote with us again. Attorney Schmidt advised that he wouldn't say that they didn't meet the legal requirements to continue and we would welcome the opportunity if it presented itself for them to be considered with any public work project, but as with any small businesses, there are some challenges and this was a unique one. Mr. Hurst stated that if the City is trying to get affordable infill housing builds, then he thinks they will try whatever avenue they can. Mr. Gilot noted that they don't want to send a message to folks that they can win a quote or bid with the City, fail to perform, and then just walk away. We would be pulling a performance bond and getting someone else to finish it. They can't do this again. Mr. Hurst agreed and added these small residential projects have been a challenge for us. CHANGE ORDERS Senior Project Engineer Hurst was present to discuss item 6.A.: Demolition of South Bend Medical Foundation.