MINUTES

Roy Smith moved for approval of the minutes of the July 23, 2004, meeting. Motion seconded by Ron Spradling. There was no discussion regarding the minutes and they were approved by a unanimous vote.

Old Business:

Legislation:

Mike Clowser of the West Virginia Contractor’s Association spoke regarding proposed Legislation for the 2005 session. Mr. Clowser stated that it was his understanding that the Design-Build Board, the Administration and all the other parties have agreed to the final version of the bill that was brought out of the Senate on the last day of the session last year. He has met with the Chairmen of the Government Organization Committees and their counsel and they are in the process of reviewing the final version of last year’s bill and determining what changes need to be made prior to introduction this year. Mr. Clowser requested the board members to go back and take a look at that bill to see if there is any changes they would like to make. There is a commitment by the Senate and the House of Delegates to try to move this bill quickly when the legislature convenes in February this year.

Chairman Monteleone asked if the bill Mr. Clowser wanted the committee to take a look at was HB 4679. There was a discussion and Ms. Lipscomb stated that the final version was SB 260. An outline of all legislation was provided to the Board during last month’s meeting as well as a copy of all bills. Chairman Monteleone asked the board members to go back and take a look at that bill again prior to it being introduced. Ms. Lipscomb stated that she would provide a copy of the bill to all board members once it was officially introduced this year.

Chairman Monteleone stated that the board did meet with all the interested parties and went over the proposed legislation line by line. There were changes made after that meeting so everyone should review the bill and let Donna Lipscomb know if they have any recommended changes.

Project Status Report:

Donna Lipscomb gave a project status report. She stated that most of the projects are completed. The West Virginia Regional Airport Authority that came before the board in August sent out their request for proposal and have a pre-bid briefing on October 27^th. Their proposals are due on November 15^th.

The City of Parkersburg project is complete. It was completed in October of 2003. The project was constructed for the budgeted amount. The Fairmont State projects, the dormitory and the parking facility, both were completed with no major problems. This was an excellent project for design-build. The Department of Environmental Protection project is complete. They were at full occupancy in mid October. There were change orders but the project did come in within the budgeted amount and was completed one month ahead of schedule. The Marshall University project is complete. It was completed 90 days ahead of schedule. The City of Huntington project is complete. Although they were slow getting started due to environmental problems, once the construction was started it was completed three months ahead of schedule. That concludes the project status update.

Chairman Monteleone lead a discussion regarding the timing of projects and a requirement that projects get started within a certain amount of time. One of the criteria of being approved for design-build is that a project needs to be completed more quickly than the regular method. Chairman Monteleone wanted the presenters here today to know that there is a time line in which they will have to comply with in order to comply with statue. Roy Smith stated that each project should also provide information to the board as to how they determine their selection of the design-build team. Mr. Smith wants to make sure they understand the process and follow the regulations. Chairman Monteleone instructed Donna Lipscomb to send out a letter on each project to remind them of their deadlines and to advise them that they will loose their approval if they do not meet the deadlines. If they do not meet their deadlines then their approval is void and they must come back to the board again. Also, Chairman Monteleone instructed Donna Lipscomb to follow up on each project to make sure they provide documentation as to how they selected their design-build team.

Frank Drobot with the Department of Administration gave a presentation regarding a proposed building for the Department of Motor Vehicles in Summersville. This would be a full service satellite office. The building would be one story and contain approximately 7,300 square feet. The site which has been selected for the building is North Side Plaza. The property is approximately 1.8 acres. The team for this project is the Department of Administration as they have had considerable experience with the design build process. That experience began with the Diamond Building in 1999 and more recently the Huntington Building and Department of Environmental Protection building in Kanawha City. The Department of Motor Vehicles project is a smaller and more straight forward project but they will follow the same process and expect similar results as with the other projects. The team is Jim Burgess as the project manager, Heather Connolly as legal bond counsel, Tammy King over leasing, and Frank Drobot as the criteria developer.

Mr. Drobot stated that the project has been kicked around but they have been busy on it. In anticipation of a design build, a request for proposal is being prepared and they have finished the goetechnical reports from Triad. They have had site survey and mapping completed, and the project criteria is at least started and the graphics are on their way.

In regard to the appropriateness of design build for this project, Mr. Drobot indicated that it came down to compliance and the type of building. DMV is very familiar with this type of building and have built several around the state. The building is a prototype and, therefore, you do not heed a lot of free designing, sketches, etc. He believes that the pre-engineered metal building is a good building for a design build project where they will describe the technical and performance requirements and then the manufacturer will produce the drawings. They are requiring that a West Virginia professional engineer for all structural work, foundation slabs, steel and masonry.

The time line for this building has been delayed and the design build method is the most expedient way to get the building constructed. An occupancy date of September 5, 2005, is possible based upon the schedule.

The early cost commitments are difficult to obtain until you get the design build bids based upon construction market conditions. They believe that design build is the best method to proceed with the project and they request approval of the board. Chairman Monteleone asked what they anticipated the cost of the project to be. Jim Burgess stated that he estimates a cost of $85.00 to $90.00 a foot. The actual costs will be around $500,000 to $600,000. The project will be funded by bonds. The bond deal will include a maintenance fund and management for the term of the bonds. The site was acquired by the Department of Highways with a lease purchase with Department of Administration. Chairman Monteleone asked if an environmental check had been done on the property. Frank Drobot stated that a phase one geotech had been done only and not a full environmental study.

Roy Smith questioned whether the Department of Administration have used the metal buildings in the past. Mr. Drobot stated that this would be the first time they have used one. Chairman Monteleone asked for a description of exactly what they were building. Mr. Drobot stated that is was a standard metal building with a masonry face and masonry front. The interior would be an open area much like the DMV office in Kanawha City.

Chairman Monteleone asked for more information regarding the time line. Mr. Drobot stated that the time line is based upon the result of today’s meeting. The final request for proposal would be pulled together between now and November 15^th. The mandatory pre-bid meeting would be December 9th. Receipt of qualitative cost proposals would be December 30^th. The bid procedure is a little long but they wanted to take into consideration that the holidays may hold it up. The evaluation team would get together during the first of January and be ready for a contract by January 30^th. Construction to start by February 28^th with a six month construction period.

Mr. Smith stated that based upon their plans that it would not take a whole lot more to elaborate on it and do the project the design bid build method. Jim Burgess stated that the cost of an engineer on a project by that method would be great. Tammy King stated that also the process of putting out an expression of interest for an architect would add at least two months to the process. Mr. Smith asked if things did not go as planned what the latest award date would be. Mr. Drobot stated that the biggest variable would be the bond sell. Ms. King stated that they are ready to start the bond process on November 15^th at the same time as the request for proposal.

Mr. Smith asked Mr. Drobot if he and the team were familiar with the Design Build Act and the Legislative Rules. Mr. Drobot indicated that he was familiar with them. Mr. Smith asked if it was his intent to follow the Act and the Rules. Mr. Drobot responded yes. Mr. Smith moved for approval of the project. Seconded by Tom Winter. The motion passed with Bud Sprouse voting nay and the remaining members voting yea and preliminary approval was given. Chairman Monteleone stated that the project was approved subject to meeting time frames. The first one is the board needs to be provided with documentation as to the process they are going to use to select the design build team. That should be sent to Donna Lipscomb prior to the bids coming back. The second thing is that the construction must be started by March 31^st or the approval is null and void and you must come back to the board. The board is giving an extra 45 days than what Mr. Drobot said he needed to get the construction started. If the notice to proceed is not issued by March 31th then the project is not approved. Mr. Drobot questioned when he should have the documentation as to the process they used to select their team. Chairman Monteleone stated it should be to Donna no later than December 1^st.

Mr. Smith stated that he has always looked at State and Federal buildings as something special and he did not care for the metal buildings that go up on concrete slabs. Government buildings should be the icon of the community and metal buildings will never be that. He believes that going out for a bond on a twenty year building is problematic in itself.

Chairman Monteleone stated that since the next presenters are not present and he must go to another meeting he will skip down to old business and then turn the Chair over to Roy Smith once the second presenter is in attendance. Mr. Smith will then proceed as acting Chairman in his absence.

Jefferson County Commission Project:

Leslie Smith with the Jefferson County Commission gave a presentation via telephone to the board. She apologized that the Commissioners had not made it to the meeting and explained that their plane was fogged in at Washington, D.C., airport. She stated that the project they seek approval for is a community center for Jefferson County. It is approximately 18,000 square feet with the ability to expand. Part of the building will consist of a gymnasium and the other part will be activity rooms. They have been planning this project and it is funded. This project is part of a 20 million dollar building program that also includes a community 911 communications center. It will be fully funded by the County Commission and the funding is in place.

Jefferson County is growing by leaps and bounds and the county has not been able to keep up with the demands of the people moving into the county. The county has grown by 10% population and is expected to go from 45,000 people to 47,000 people from 2003 to 2005. They have a public demand for recreational and cultural activities that they have not been able to provide. Currently their Parks and Recreation Commission rent space from school boards and local organizations in the area for programs. They do not have any indoor facility for programs. They have approximately 130 acres that was donated to the County some twenty years ago where the community center will be built.

Leslie Smith stated that they feel if a metal building could be done by the Design Build method they could hurriedly and quicker provide recreational and cultural opportunities to the public. This would let them proceed in a timely manner with their building program.

Roy Smith requested that Leslie Smith describe how she and the Commissioners feel this project fits into a design build project. As far as the time line, she stated that she already described their building project. This building is the first they can proceed with and they need to go forward with this project so they can get to other projects such as court facilities and other facilities. She indicated that as far as the building, a portion of it will remain a shell and they will be able to expand. With the cost estimates, they have the building program established for the next five years. Their cost estimates ranged around a couple million dollars. They do plan a metal building and need to get early cost information so they can put it into their building program.

Roy Smith stated that in regard to their time schedule that was submitted to the board, what would be the last date she would go to construction. Ms. Smith stated that the latest date would be mid spring. She would like to do it before that but with the possibility of bad weather she does not know if they can get it done sooner. They are currently working on the site plans that will show utilities, etc. They have planning, zoning and engineering and they are currently working on this and it will be done is accordance with their office and their building codes. Roy Smith asked if she and her team are familiar with all the rules of Design Build. Leslie Smith stated that she is very familiar and has read them several times. Roy Smith asked if it was the intent of the County Commission and her office to follow those rules. Leslie Smith stated that she is the County Administrator and works for the Commission and they do intend to follow all rules.

Tom Winter moved for approval of the application of Jefferson County to do their community center by the Design-Build process. Motion seconded by Mary Jo Thompson-Klempa. Bud Sprouse voted nay, all other board members voted to approve and the motion passed.

Roy Smith advised that with each project they set a date by which they expect the project must be under way. Their schedule gives a date of April 19 as the date given for a contract award. He asked if their project was not under construction by June 1^st they would require them to come back and resubmit the proposal. Ms. Smith stated that date was acceptable. Ms. Lipscomb stated that another thing the board requires is that each presenter provide documentation as to what procedure they went through to select their design build team. Ms. Smith stated she would provide that information to the board.

Al Hooper and Rusty Morgan, Jefferson County Commissioners, arrived to the meeting. They asked if there were any questions of them. Bud Sprouse requested the opportunity to review the drawings. Al Hooper briefly went over the project and indicated that both he and Rusty Morgan have spent most of their adult life dealing with contractors and they know their way around construction sites. He also stated that the Commission had very good professional in-house staff with their planning commission, including an architect and two engineers. He stated that the budget for the project was $2.2 million dollars.

Roy Smith stated that with this board they have three issues that direct them on each project. Cost containment, the need to work closely with the architectural and engineering folks, and the necessity for speed. Roy Smith advised the Commissioners that the board talked with Leslie Smith about those issues and the Board did approve the project. However, there are a few administrative strings that Donna Lipscomb will advise the Commission of by correspondence. Also, Mr. Smith recommended that they review the Design Build Act and the Legislative Rules and follow them closely.

Chairman Monteleone brought the board members attention to a Resolution that was drafted by Roy Smith and asked Mr. Smith to lead the discussion regarding the Resolution. Mr. Smith stated that during the last meeting several things were discussed by the board and the chairman asked the board members to draft a resolution that would cover things of concern. Mr. Smith indicated that when he thought about what the Resolution should contain it boiled down to a couple things. One concern is the requirement to complete the project on the scheduled time. The other concern is to assure that projects follow the rules. He feels they need to assure the public that this is done in a fair and up front way. Mr. Smith read the proposed Resolution to the board. Chairman Monteleone stated that he appreciated what Mr. Smith did with preparing the Resolution as they have discussed these issues for the past few meetings and he did a good job in picking up the concepts. However, he would like to suggest one change and make the resolve a three step concept and say that they must begin construction by the date established by the board or the approval is terminated. Chairman Monteleone stated that one requirement of the Act is that the project needs to be done faster than the normal design bid build method. Mr. Monteleone stated that if they do not begin construction by the date established then they must come back to the board for approval again. Ms. Thompson-Klempa agreed with the revision. Chairman Monteleone stated that he would like to see a comparison of the traditional time line and a proposed design-build time line. Mr. Smith agreed that this should be provided for all projects brought to the board.

Mr. Winter stated that in paragraph two of the proposed Resolution it says the board has the responsibility to approve or reject applications. He believes that the word "review" should be added to that paragraph. Chairman Monteleone agrees and the word was added.

Ms. Lipscomb questioned the board as to what she is to do procedurally with the Resolution and whether she is to put the construction start date in the resolution for each project and then mail the Resolution out to each presenter advising them what the board approved. Chairman Monteleone stated that the minutes should just reflect the adoption of the Resolution and then a form letter prepared that tells what was approved on each project. Ms. Lipscomb stated that she would draft such a letter and send it to the Chairman for approval prior to sending out.

Roy Smith asked Ms. Lipscomb when someone calls about the Design-Build Act and expresses an interest in doing a design-build project do they request information. Ms. Lipscomb stated that she advises them of the criteria of the Act to make sure they meet it prior to them coming forward with a presentation. She also will send out examples of prior presentations for their review so they know what needs to be included in their presentation. Ms. Lipscomb stated that she can usually answer all their questions but there have been occasions when they want to go into details and get opinions as to whether something would qualify and she refers those inquiries to Chairman Monteleone since he is an attorney and helped write the legislation and is better qualified to give opinions. Chairman Monteleone indicated that basically all he does when talking with individuals is to pull out the Statute and go over the three requirements and tell them if they meet the requirements to come in and talk to the board and if they don’t meet them they should not come in. The reason Mr. Smith asked is it would make some sense to send something out and have a record that they should have the time line comparison in their presentation. Ms. Lipscomb stated that she would develop a form letter that identifies the criteria they must meet and tells them they must have a time line comparison included in their presentation.

Chairman Monteleone moved for the adoption of the Resolution with the amendments discussed today. Motion seconded by Mary Jo Thompson-Klempa. All voted in favor and the Resolution was adopted.

There was no other business to come before the board and the meeting was adjourned.