BC 2004 10 18 Regular (2) - Laserfiche WebLink

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October 18, 2004 Page 650 hired to provide the on-site management service. Other issues addressed during discussion included duplication of services, single prime versus multi prime bidding and liability ieauea. Ma. Sifford reported that in jail projects recently bid both single and multi prime, the lowest bid was single prime. Examples of such projects included the jail facilities in Cumberland and New Hanover Counties and a Juvenile Detention Center in Tayloreville. Marilyn Porter, County Attorney, advised in the multi-prime bidding situation the County would be acting as the general contractor thereby contracting with each contractor individually and assuming the liability. Or, she said, the construction manager could request to become an "at risk" construction manager which requires approval from the State Office of Administration. Further, she reported the current contract with Ware Bonsall would have to be amended if the project is bid multi prime. In closing, she reported only one of the construction management firma interviewed qualifies to be "at risk." Ma. Sifford pointed out that none of the construction management proposals were "at risk" proposals. She stated staff would need to produce another request for proposals specifying that service if the Board wished to have a construction manager at risk. John Day, County Manager, suggested that these ieauea be investigated and discussed in a workshop setting at a later date. Commissioner Carpenter questioned the schedule for the jail project. Glenn Ware of Ware Bonsall Architects confirmed the project should be ready to go out to bid in July 2005. (E-2) Sale of First Onion Building (Cabarrua Sank Building) Marilyn Porter, County Attorney, reviewed a Memorandum dated October 4, 2004, outlining the significant differences between the original offer of $1.2 million by Danny Boet LLC to purchase the First Union Building and the upset bid of $1.3 million by Allen Craven. The major differences included: (1) the Craven offer did not include the specified term regarding exterior guidelines (i.e., all exterior improvements shall meet the guidelines of the Secretary of the Interior for remodeling and reconstruction of historic properties); (2) the Craven offer provided for a due diligence period of six months, up to the date of cloning, with cloning proposed for 180 days after entering into a contract with the County; and (3) the Boat offer provided a due diligence period of 60 days from final acceptance of the offer with closing proposed to occur within 120 days from the time a definitive agreement ie entered into. Ma. Porter reported the Board had three legally permissible options: (1) Officially accept the Bost offer, declaring that the Craven offer was not a valid upset bid due to substantive changes in the contract terms and omission of a technically required provision. (2) Accept the Craven offer, stating the Board is willing to assume the risk of business terms more favorable to the Buyer in exchange for the higher price. Start the next upset bid term of ten days. Be prepared to have the Craven offer be the final bid or have a higher bid, using the precedent set for more lenient business terms for the Buyer. (3) Reject both the Boat offer and the Craven offer for the reasons stated above and start a new upset bid process at a minimum of $1.3 million. Direct County counsel to draft a form contract that all bidders must unequivocally use, with the only permitted change being the price offered. The risk with thin option is that no bidders come back at this time. Both parties currently appear highly motivated, but that is not a guarantee. In closing, Ma. Porter advised that Option No. 3 was recommended by the Institute of Government. Commissioner Carpenter asked to be recused from voting due to her employment with Wachovia Bank (formerly First Union). IIPON NOTION of Commissioner Carruth, seconded by Commissioner Privette and unanimously carried, the Board voted to recuse Commissioner Carpenter from voting on the Bale of the First Union Building.