4. Discussion and consideration of options or alternatives to building a new skilled nursing facility. Endres began by discussing the bids that came in for the new facility which were much higher than expected. A decision by the two committees needs to be made and a recommendation to the full board.
Schauf passed out a sheet highlighting discussion items with two potential options. One option is to accept the bid with an amendment to the budget and the other option is to reject all bids, redesign, and rebid the project. The full board had voted to bond for not more than 15M.
Option one including the amendment to the budget would include value engineering. Per Corp Council, this consists of accepting the low bid with changes being made to the original design to bring the cost more in line, however these changes can't alter the scope of the project. The difference of $2.5M is too large for this to be an option. Rick Moore indicated that often times when a project is rebid the bids do not come in lower. Have begun looking at items in the building that can be changed to save costs.
Discussion followed on remodel of the existing facility including current life-safety code requirements as well as total remodel of the building. Total costs were approximately $10M. Carlson read a statement in favor of keeping the facility at the current site. Borleske spoke in favor of redesigning and cutting costs but also looking again at the current facility site. Stieve noted that the "budget" of $15M is the project budget, not the building budget, and includes all permits, land purchase, soil borings, furniture, fixtures and equipment. Actual construction amount is closer to $12.5M. Bychinski indicated that the bonding was for $15M total, so that eliminates adding an amendment to the budget for increased bonding. He also discussed some building specifications which seemed excessive.
5. Motion by Bychinski, second by Borleske to recommend to the board that the bids opened on June 26 be rejected and the project be redesigned and rebid.
Discussion followed including bed size, site, window size etc. Everything is on the table including not building. Horty/Elving is responsible for providing a design in which the bids come within a certain percentage of the budget. LEED certification costs were also discussed. Some members felt that looking at the current site should be included in the resolution. Stieve reminded the group that additional soil borings would have to be done if the current site were to be reconsidered.
Bychinski called the question, second by Netzinger.
Board of Trustees - Endres, Aye; Borleske, Nay; Netzinger, Aye; Carlson, Nay; Langer, Aye; Schroeder, Aye.
Motion carried
Building Committee - Endres, Aye; Bychinski, Aye; Fordham, Aye. Motion carried
6. Vote on the resolution as presented to recommend bid rejection, redesign and rebidding.
Board of Trustees - Endres, Aye; Borleske, Nay; Netzinger, Aye; Carlson, Nay; Langer, Aye; Schroeder, Aye.
Motion carried
Building Committee - Endres, Aye; Bychinski, Aye; Fordham, Aye. Motion carried
Discussion on LEED certification costs and options was held. Bids for the LEED contracting agent also need to be dealt with at some future point. Discussion followed regarding alternatives if the resolution fails on board floor.
7. Motion by Bychinski, second by Fordham to adjourn. Motion carried.
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Joan Fordham, Secretary