HOUSING OPPORTUNITIES COMMISSION OF MONTGOMERY COUNTY

10400 Detrick Avenue

Kensington, Maryland  20895

(240) 773-9025

 

SPECIAL SESSION OPEN MEETING

M I N U T E S

September 23, 2003

03 - 11

 

A special session meeting of the Housing Opportunities Commission of Montgomery County was conducted on Tuesday, September 23, 2003 at the County Council Office Building Cafeteria, 100 Maryland Avenue, Rockville, Maryland beginning at 8:56 a.m. Those in attendance were:

 

Present

Richard Y. Nelson, Jr., Chair

Norman Cohen, Vice Chair

Y. Monroe Galloway, Chair Pro Tem

Ralph D. Bennett, Jr.

Michael J. Kator

 

                                                                        Absent

LaKeyia L. Thompson

 

Also Attending

Scott Minton, Executive Director                                                          Ken Tecler

Peter Engel                                                                                          Bill Murphy

Scott Ewart                                                                                          Susan Yancy

Lillian Durham                                                                          Stuart Raynor

Lembit Jogi                                                                                           Jane Harrah

Dana Miller, Special Assistant to the Commission                     

 

Guests

none

 

            Chair Nelson convened the meeting of the Housing Opportunities Commission at 8:56 a.m.  This special session was held for the purpose of consideration of one deliberation item.

 

 

I.          DELIBERATION

 

 

A.                 Approval of Contract for Rehabilitation of Seneca Heights

 

Lembit Jogi, Real Estate Development Planner, presented the item to the Commission.  He stated that staff recommends awarding the contract to C. M. Parker to operate as the General Contractor for the project based on the fee bid.  C. M. Parker’s proposal is based on a construction budget of $2.9 million for construction costs and  $300,000 to cover the contractor’s fees, for a total of $3.2 million.  In addition, staff recommends a 5% contingency allocation to cover discovered work which was not anticipated under the project estimate.

                                   

Vice-Chair Cohen expressed his concern about C.M. Parker’s bid being significantly lower than the other four companies that submitted bids.  Mr. Jogi explained that C.M. Parker has lower management overhead than the other companies because it will only assign one site manager to the project.  He informed the Commission that C.M. Parker supplied references from the Montgomery Housing Partnership and the Arlington Housing Authority.

 

Chair Pro Tem Galloway stated that a new fire alarm might be required for the building.  She asked if the total cost of the rehabilitation would exceed $3.2 million if it needs to be replaced.  Staff confirmed that it is possible that the costs associated with replacing the fire alarm may bring the total costs over $3.2 million.

 

Vice-Chair Cohen asked for clarification about the 5% contingency that is built into the contract.  Mr. Jogi explained that the contingency would allow staff to authorize work up to $3,360,000 without further Commission approval.  Vice-Chair Cohen expressed his concerns that the contract would be amended and that the costs would escalate especially because their bid was significantly lower than the other bidders.  Mr. Jogi stated that his reference checks have indicated that Parker is a reputable firm and that it is the smallest firm that bid on the project.  He stated that it is family run and located in the County.  He went on to state that the architect, the construction manager and DHCA are pleased Parker submitted the lowest bid.

 

Commissioner Bennett moved to adopt the revised resolution.  Commissioner Kator seconded the motion.  Affirmative votes were cast by Commissioners Galloway, Cohen, Nelson, Bennett and Kator.  Commissioner Thompson was necessarily absent and did not participate in the vote.

 

RESOLUTION:03-96                                                RE:     Approval of Contract for

                                                                                                Rehabilitation of Seneca                                                                                                 Heights

 

            WHEREAS, the Housing Opportunities Commission of Montgomery County (HOC) is acting as the Development Coordinator for Montgomery County Government in the renovation and conversion of the Seneca Heights (formerly the Econo Lodge) for Special Needs Housing; and

 

            WHEREAS, the renovation and conversion of Seneca Heights to Special Needs Housing requires the services of a qualified general contractor to work with the design team and complete the renovation; and

 

            WHEREAS, HOC staff has issued an RFP and selected C.M. Parker, a qualified general contractor, to perform the renovation and the Department of Housing and Community Affairs (DHCA), representing the County in this undertaking, has approved the contractor; and

 

            WHEREAS, the terms of the contract are substantially complete, however, a few line items in the budget and several provisions in the contract have not been finalized; and

 

            WHEREAS, DHCA desires to complete the project on an expedited time frame; and

 

            WHEREAS, in order to meet the time frame, the contract with the general contractor must be executed as soon as possible; and

 

            WHEREAS, staff has recommended that the contract be approved with a guaranteed maximum price and on terms substantially similar to those presented to the Commission; and

 

            WHEREAS, DHCA desires to have the authority to expend the contingency amount of five percent of the contract amount if necessary.

           

            NOW THEREFORE, BE IT RESOLVED by the Housing Opportunities Commission of Montgomery County that the Executive Director is authorized execute a contract with C.M. Parker for the rehabilitation of Seneca Heights in an amount not to exceed $3,200,000 on terms substantially similar to those presented to the Commission.

 

            BE IT FURTHER RESOLVED that the Executive Director is authorized to expend the full amount of the contingency fund, which shall not exceed five percent of the final contract amount.

 

 

There being no further business to come before this session of the Commission, a motion was made, seconded and unanimously adopted to adjourn.

 

                        The meeting adjourned at 9:10 a.m.

 

 

Respectfully submitted,

 

 

D. Scott Minton

Secretary-Treasurer

 

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