FINANCIAL BUSINESS REQUEST (FBR)
Motion/Request:
title
MOTION to approve $45,000 in supplemental funding for the construction of the concrete floor at the Town Green Pole Barn.
Supplemental funding to come from remaining American Rescue Plan Act (ARPA) Funding.
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Background:
At its December 8, 2021, meeting, the Town Council approved $55,000 of ARPA funding for a concrete floor at the VOAG pole barn at the Town Green. After securing quotes and packaging the various facets (materials and labor) in the most cost-effective way possible to reduce costs, coupled with as much in-house effort as possible, the total cost had been estimated at just shy of $90,000, without contingency.
The package includes labor supplied through the ezIQC program managed by the Gordian Group through competitive CRCOG bidding (program summary attached). The detailed scope of work, including citation of the Town portion, and cost of the Gordian Group portion ($61,433.07) is attached. The balance of the cost for materials and miscellaneous efforts supplied by the Town amounts to about $27,500 as derived from direct quotes.
This approach was proposed at the September 7, 2022, Finance Committee meeting and voted down. Details of the discussion appear below.
In keeping with the consensus of the Mayor and Finance Committee, the project was bid out (Bid No. 2023-04). The results on 9/29/22 yielded a bid range of $152,400 to $196,014 (see attached bid results). If $95,000 was deemed excessive, these results are clearly not acceptable.
I have confirmed that the original Gordian Group price of $61,433.07 remains good through the end of the year. Because of the delay, completion of this project is uncertain within this timeframe, though any increase to this value wouldn’t come close to approaching what we saw in the bid results. Further deliberation would be required on a final schedule.
Because of this, and to accommodate any changes in materials costs that we carefully costed out as part of the in-house effort, I would recommend increasing the contingency to bring the total funding to $100,000. Any amount of this not needed would be returned to the unobligated balance of ARPA funding.
Department Comment/Recommendation:
If the desire remains to have a concrete floor at this facility, I again recommend this approach. For funding purposes, based on the Finance Director’s previous comment, there appears to be an adequate reserve of ARPA funding.
Finance Director Comment/Recommendation:
Based on the current plan of approved ARPA funded projects, there are adequate excess funds available that could be utilized to fund this increase in costs. As a reminder, ARPA funds need to be obligated by December 31, 2024 and expended by December 31, 2026.
Mayor Comment/Recommendation:
(type text here)
Meeting Action Detail:
Town Council Meeting 10/12/2022:
File #: 22416 Version: 2
Type: Financial Business Request (FBR)
Title: MOTION to approve $45,000 in supplemental funding for the construction of the concrete floor at the Town Green Pole Barn.
Supplemental funding to come from remaining American Rescue Plan Act (ARPA) Funding.
Moved: Saums Seconded: Ingalls
Action: Approved
Minute Note:
Moved by Councilor Saums, seconded by Councilor Ingalls
Discussion: Councilor Saums provided some background stating at its December 8, 2021 meeting, the Town Council approved $55,000 of American Rescue Plan Act (ARPA) funding for a concrete floor at the Vo-Ag-Science Pole Barn at the Lower Town Green. He stated when this request for additional funding was initially presented at the Finance Committee’s September 7, 2022 meeting they were stunned with the $95,000 cost (Gordian Group: $61,433.07; + materials and miscellaneous efforts supplied by the Town $27,566.93 + contingency $6,000) of a concrete pad. He stated because the initial cost, which was provided by Contractor who was operating under a State Bid and included the town doing some of the work to save money, the Finance Committee asked Public Works Director/Town Engineer Steve Masalin to again seek bids with the hope that the cost would come in lower.
Councilor Saums stated on September 29, 2022 four proposals were received in response to Bid #2023-04 noting the bids ranged of $152,400 to $196,014. He stated the previous proposal of $95,000 which still seemed to be excessive, became more reasonable. He stated the Finance Committee was disappointed with the results of the RFP, and shocked with cost. However, he stated the town did what they were supposed to do in seeking bids for the projects; and that the Public Works Director/Town Engineer validated the State Bid Contract and confirmed that the original Gordian Group price of $61,433.07 remained good through the end of the year.
Councilor Saums went on to state that the current millings was not a suitable floor for the Pole Barn for safety reasons. He stated in trying to navigate the Pole Barn on crutches or trying to use a walker, wheelchair or a stroller that it was difficult because the millings never get sunlight and do not get pounded down, noting because it was difficult to navigate was a liability to the Town. He went on to state the Pole Barn was being put not great use in terms of economic development and the number of people who come into town every Wednesday night during the summer months.
Mayor Allyn, III, stated the Town Green as a whole was getting a lot of positive use, noting the Pole Barn was the corner stone.
Councilor Rodriguez stated the Town Green was beautiful, noting it was great place for families to picnic.
VOTE: 7 - 0 Approved and so declared
Action: Approved
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Finance Committee Meeting 10/5/2022
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File #: |
22416 <https://ledyardct.legistar.com/LegislationDetail.aspx?ID=5814179&GUID=B1E79EEF-225B-4424-9E72-F54F80382EF9> Version: 1 |
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Type: Financial Business Request (FBR) |
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Title: MOTION to approve $40,000 in supplemental funding for the construction of the concrete floor at the Town Green Pole Barn. |
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Mover: |
Ingalls |
Seconder: Saums |
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Action: |
Recommend to Approve |
Minutes Note:
Moved by Councilor Ingalls, seconded by Councilor Saums
Discussion: Public Works Director/Town Engineer Steve Masalin provided some background stating at its December 8, 2021, meeting, the Town Council approved $55,000 of American Rescue Plan Act (ARPA) funding for a concrete floor at the Vo-Ag-Science Pole Barn at the Lower Town Green. He stated after securing quotes and packaging the various facets (materials and labor) in the most cost-effective way possible to reduce costs, coupled with as much in-house effort as possible, the total cost had been estimated at just shy of $90,000, without contingency. He explained the Package included labor supplied through the ezIQC program managed by the Gordian Group through competitive CRCOG bidding. He stated the detailed scope of work, including the citation of the Town portion, and cost of the Gordian Group portion ($61,433.07); with the balance of the cost for materials and miscellaneous efforts supplied by the Town amounts to about $27,500 was derived from direct quotes. He stated this approach was proposed at the September 7, 2022, Finance Committee meeting and voted down, in an effort to seek bids with the hope that the cost would come in lower.
Mr. Masalin went on to explain as a result of the Finance Committee’s September 7, 2022 meeting and with the consensus of the Mayor, the project went out to Bid (Bid . #2023-04). The Bid results received on September 29, 2022 yielded responses from four contractors noting that the bids ranged of $152,400 to $196,014. He stated if the previous proposal of $95,000 was deemed to be excessive, the results of Bid #2023-04 were clearly not acceptable.
Mr. Masalin continued to explain that he has since confirmed that the original Gordian Group price of $61,433.07 remained good through the end of the year. However, he stated because of the delay of seeking bids, the completion of the project was uncertain within this timeframe, although any increase to this cost would not come close to approaching the dollar amount that was received in response to Bid #2023-04. He stated further deliberations with the Gordian Group and others would be required on a final schedule.
Mr. Masalin went on to explain to accommodate any changes in materials costs he was recommending, and he has requested this evening, increasing the Contingency by $5,000 to bring the total funding for the project to $100,000. He stated any amount that was not needed would be returned to the unobligated balance of ARPA funding. He stated although pouring a concreate slab seem to be a simple, straight forward project, that there appeared to be more work involved, or there was just not an appetite for contractors to bid on the work.
The Finance Committee, the Mayor, and Mr. Masalin discussed using other materials to reduce the cost of the pad at the Pole Barn, such as an asphalt pad; and decided for logistical purposes that the best option was still a concrete pad noting that the current millings were not suitable for safety reasons. Councilor Saums stated in trying to navigate the Pole Barn on crutches or trying to use a walker, wheelchair or a stroller that it was difficult because the millings never get sunlight and do not get pounded down.
The Group also discussed a cost benefits analysis of other options, the need to bring the floor into compliance with the American Disability Act (ADA) and the long-term costs of trying to save money now that only costs the town more money later. They noted all the other pavilions in town had concrete floors such as the Holdridge Pavilion and the Colonel Ledyard Park Pavilion.
Mr. Masalin stated the Pole Barn concrete floor would have a broom finish and that the project would also include two concrete sidewalks going to the parking lot and a paved and marked parking area that would be in compliance with the ADA specifications.
Councilor Ingalls addressed the ARPA Projects List and she suggested the Finance Committee revisit the ARPA Spending Plan because of the rate of inflation that has occurred this past year since the ARPA Projects List was approved. She noted that some projects, as they were seeing with the Pole Barn Floor, may be coming in higher than initially estimated. Therefore, she stated they may need to make some adjustments to the ARPA Projects List and Spending Plan to account for cost increases. Councilor Saums stated the Mayor was keeping a spreadsheet on the ARPA Projects and the actual costs that the projects have been coming in. Mayor Allyn, III, stated he would be prepared to review the ARPA Spending Plan at the October 19, 2022 Finance Committee meeting.
Finance Director Matthew Bonin questioned the funding source for the supplemental $45,000 for the Pole Barn Floor. Mr. Masalin noted that Mr. Bonin had previously indicated that that there was enough funding in the ARPA Balance to cover the additional cost for the Pole Barn Floor. Mr. Bonin stated there was about $625,000 of ARPA Funding that had not yet been allocated. Councilor Saums at the January 12, 2022 Town Council meeting they approved to appropriate $1.37 million from the American Rescue Plan Act (ARPA) Account for Phase I, Phase II & Phase III of the Ledyard Sewer Line Extension Project. However, he stated this appropriation was contingent on the approval of the town’s CDBG Grant Application in the amount of $1.38 million for the project. He stated as part of that action the Council also voted, that should the CDBG Application not be approved, that they would appropriate the full cost of the Ledyard Sewer Line Extension Project in the amount of $2.76 million from the American Rescue Plan Act (ARPA).
Councilor Saums went on to explain the town received notification that their CDBG Grant Application in the amount of $1.38 million for the Ledyard Center Sewer Line Extension was denied. He stated if the town had received the CDBG Grant funding that they would have been able to do all the projects on the ARPA Projects List. He stated at the Finance Committee’s April 20, 2022 meeting they agreed that if they appropriated the full $2.76 million for the Ledyard Sewer Line Extension Project from their ARPA Funding that it would have significantly impacted which projects on the ARPA Projects List the town would be able to complete.
Councilor Saums continued to explain because the engineering company had requested an extension of an additional 400 days to complete the geo-technical work on the sewer line project, the Project would most likely not begin until May or June, 2023. Therefore, he stated at their April 20, 2022 meeting the Finance Committee agreed that rather than allocate the full $2.76 million for Sewer Line Extension now and forego a number of smaller initiatives on the ARPA Projects List, that they would recommend the Town only allocate $1.2 million from ARPA Funding for Phase I, because the costs of Phase II would be shared by the Developers. He also explained because of the delay in the project timeline the Committee was optimistic that they could again apply for the CDBG Grant in the next round or perhaps find other grant opportunities for Phase II and Phase III of the Sewer Line Extension Project. Therefore, he stated that he would rather not use the $625,000 ARPA Funding that Mr. Bonin noted had not yet been allocated in-case they needed it for the Sewer Line Extension Project.
Mr. Bonin stated there was also some funding in the CNR Undesignated Fund that could be used for the supplemental $45,000 that was being requested for the Pole Barn Floor. The Finance Committee asked Mr. Bonin to identify a funding source for the supplemental $45,000 before the Town Council’s October 12, 2022 meeting.
VOTE: 2 - 0 Approved and so declared
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Action: Recommend to Approve |
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_____________________________________________________________________________
Finance Cmt Meeting 9/7/2022
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File #: 22416 <https://ledyardct.legistar.com/LegislationDetail.aspx?ID=5814179&GUID=B1E79EEF-225B-4424-9E72-F54F80382EF9> Version: 1 |
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Type: Financial Business Request (FBR) |
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Title: MOTION to approve $40,000 in supplemental funding for the construction of the concrete floor at the Town Green Pole Barn. |
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Mover: |
Tim Ryan <https://ledyardct.legistar.com/PersonDetail.aspx?ID=272276&GUID=217F0B4F-15D9-4CA3-B8DB-37D6E88E2114> Seconder: Bill Saums <https://ledyardct.legistar.com/PersonDetail.aspx?ID=272277&GUID=C70785B4-9E4F-4F98-AA21-78986FB8912D> |
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Minutes Note:
Moved by Councilor Ryan, seconded by Councilor Saums
Discussion: Councilor Saums stated the Town Council allocated $55,000 from the American Rescue Plan Act (ARPA) Funding for the Pole Barn concrete floor. He stated in reviewing the Gordian Group Summary in the amount of $61,433.07 he had questions regarding the requested additional $40,000 for this project, noting that the difference between the Gordian Group Summary and the $55,000 already allocated for the project was $6,433.
Mayor Allyn, III, noted that he did not comment or approve LF #22-323 requesting an additional $40,000 for the Pole Barn concrete floor. He addressed Councilor Saums’ question, and he explained the total Gordian Group cost came in at $95,000. He reviewed the breakdown presented for discussion this evening as follows:
• Gordian Group Total Cost $95,000
• ARPA Funding $50,000
• Balance: $40,000
Mayor Allyn went on to note to reduce costs that some materials and labor in the amount of $27,500 would be provided by the Town’s Public Works Department. He stated because he has some reservations about the Gordian Group’s summary of costs in the amount of $95,000 that he would like to see the town: (1) Contact local concrete contractors to see if they could get a better price; and (2) Solicit bids to try to sharpen their pencils. He stated the Farmers’ Market will be over in two weeks. Therefore, he stated the concrete floor in the Pole Barn was not time sensitive at this time. He suggested the town solicit Requests for Proposal this winter (February, 2023) and schedule the pouring of the concrete floor sometime in the spring, (April, 2023). He stated as the ARPA Projects were being completed that some projects may come in under the estimated costs. Therefore, he stated by April, 2023 they may have some ARPA Funding that could be used should the concrete floor come in higher than the original appropriation of $55,000.
Councilor Saums noted past experience with the Gordian Group, and he stated he would like the town to obtain a second opinion.
Public Works Director/Town Engineer Steve Masalin provided some background noting at their December 8, 2021, meeting, the Town Council approved $55,000 of ARPA funding for a concrete floor at the Vo-Ag Science Pole Barn at the Town Green. However, he explained after securing quotes and packaging for the various facets (materials and labor) in the most cost-effective way possible to reduce costs, coupled with as much in-house effort as possible, the total cost was presently estimated at just shy of $90,000, without contingency.
Mr. Masalin stated the package included labor supplied through the ezIQC program, which was a procurement process that helped facility and infrastructure owners complete projects with a single, competitively awarded contract. He stated the process using the Gordian Group has worked well in some cases; and as Councilor Saums mentioned, it has not worked as well for other cases. Therefore, he stated although he was not beholden to the Gordian Group process, that he did not believe $55,000 would be enough funding for the Pole Barn concrete floor, in the way the floor had to be designed. He stated Public Works Building & Grounds Forman Shawn Ruszczyk does a fantastic job at reaching out to multiple contractors to sharpen their pencils. He stated Mr. Ruszczyk contacted Mr. Fred Whipple of Artisticrete Design LLC, who has done some other work at the Lower Town Green, however, Mr. Whipple was not interested in taking on the Pole Barn concrete floor project.
Councilor Saums questioned the cost if the Gordian Group executed the entire Pole Barn concrete floor project. Mr. Masalin stated the cost for the Gordian Group to handle the entire project was $139,000. However, he explained the detailed scope of work, including citation of the Town portion, and cost of the Gordian Group portion ($61,433.07) and the balance of the cost for materials and miscellaneous efforts supplied by the Town in the $27,500 has brought the total price to about $95,000.
Councilor Ryan requested clarification regarding the $95,000 cost for the Pole Barn concreate floor. Mr. Masalin reviewed the cost as follows:
• Gordian Group $61,433
• Town Share $27,500
• Total: $88,933
Mr. Masalin stated the $88,933 did not include funding for contingency. He also stated by the town purchasing some materials and doing some of the labor themselves there was nearly a $30,000 savings bringing the Gordian Group cost to $61,433. Therefore, he stated the cost of the project would be $95,000 versus $139,000 if the Gordian Group handled the entire project.
Councilor Saums stated he now had a better understanding for the cost of the Pole Barn concrete floor, and therefore, he was not as shocked by the price as he was initially.
The Finance Committee agreed to vote down the request for an additional $40,000 for the Pole Barn concrete floor project in an effort to solicit bids for the project in February, 2023.
Mr. Masalin stated he would fine tune the plans for Pole Barn concrete floor project, in preparation to solicit Requests for Proposals (RFP) this winter.
VOTE: 0 - 2 Motion Failed
Action: Motion Failed