HomeMy WebLinkAboutBHSMinutes_2011_04_19Brookings Health System
Board of Trustees
April 19, 2011
Attendees:
Board Members: Rob Jones, Chair; Al Baker, Vice Chair; Zeno W. Wicks, III,
Secretary; Jim Booher, Arne Brown, Sandra Faltemier, Debra Johnston, MD; Teresa
McKnight, Julie Whaley; ex-officios John Kubal and Mike McClemans
Others in Attendance: Kevin Coffey, Interim CEO; Tammy Hillestad, CNO; Rich
Helsper, Legal; Phil Wagner, Consultant; Randy Hanson, President and Paul Sahr,
Operations Project Manager of Mills Construction (arrived at 6:00 p.m.); Steve Larson
and Chris Larson, NEXT, Inc. (arrived at 7:08 p.m.); Dave Kosbau, President and
Stewart Olson, Vice President of Waltz Construction (arrived at 8:30 p.m.); and Deb
Davis, Recorder
There was a meal at 5:30 p.m. for the Board members.
The meeting was called to order at 5:45 p.m. A special Board of Trustee Meeting was
held on Tuesday, April 19, 2011. There was one agenda item under New Business. As a
result of the March 24, 2011 Board Meeting a motion was made to interview three firms
for the construction manager on the nursing home project. The three firms interviewed:
Mills Construction, NEXT, Inc. and Waltz Construction. Phil Wagner and Rich Helsper
were asked to write the criteria for questions the three interview firms needed to respond
to. Questions developed by Wagner and Helsper were to hire an on-site project
representative. The three firms in alphabetic order were Mills Construction, NEXT, Inc.
and Waltz Construction each giving a 30 minute presentation followed by 15 minutes of
questions and answers. Presentations were scheduled for 6:00 p.m., 7:00 p.m. and 8:00
p.m., respectively.
Mills Construction was the first group to interview. Randy Hanson, President and Paul
Sahr, Operations Manager were the presenters. Hanson went through each of the 13
questions that had been sent to the three firms the previous Friday. The bid submitted
was a fixed fee of $220,000 based on an assumed project price range of 9 to 12 million
dollars. The only reimbursable would be out-of-town travel compensation of $55.00 per
hour and mileage at the Federal rate. Meals and lodging would be reimbursed at cost.
Should the VA component become a reality, additional fees would need to be negotiated.
Hanson and Sahr were excused at 7:01 p.m.
At 7:08 p.m., the second group to be interviewed was NEXT, Incorporated. Steve
Larson, President and Chris Larson, Vice President were in attendance. In a PowerPoint
presentation S. Larson highlighted a multitude of projects that his company has
completed. Larson attended the April 5, 2011 Board meeting where agreement was
reached to hire a construction manager. Larson questioned why the change was made,
and stated he did not respond specifically to the 13 questions due to the direction change.
Discussion was also held regarding the AIA contract that was submitted along with the
questions to be answered. Larson did state he did not attempt to make contact with the
hospital to clarify his questions about the format change. Therefore, Larson did not
submit a bid. The Larson’s were excused at 8:18 p.m.
At 8:30 p.m. the third and final presentation was from Waltz Construction. Dave
Kosbau, President and Stewart Olson, Vice President presented their proposal for Owner
Representative Services to the Board. The Waltz team discussed their experience and
abilities to properly manage this project, in conjunction with answering some of the 13
questions submitted to them. Kosbau noted that the contractual relationships would be
the Architect, Owner Representative and Contractor all reporting to the Owner (BHS).
The fee for preconstruction services would be $45,000 plus taxes. The fee for
construction services as Owner Representative would be 2% of the construction costs
plus taxes. A reimbursable cost would be the on-site person billed at the rate of
$35.00/hr. The VA component, should it become a reality, would need to be negotiated.
Kosbau and Olson were excused at 9:25 p.m.
A motion by Whaley seconded by McKnight to move into executive session at 9:32 p.m.
citing SDCL 1-25-2(3) Contractual Matters. Those in attendance: Rob Jones, Al Baker,
Jim Booher, Arne Brown, Sandra Faltemier, Teresa McKnight, Julie Whaley; John
Kubal, Mike McClemans, Kevin Coffey, Tammy Hillestad, Rich Helsper, Phil Wagner,
and Deb Davis, Recorder
Executive session ended at 10:23 p.m.
A motion by Whaley to withdraw the motion to hire a Construction Manager. Baker
seconded the motion. Ayes: Jones, Baker, Booher, Brown, Faltemier and Whaley.
Opposed: McKnight.
A motion by Baker to select Mills as the On-Sight Project Representative. Booher
seconded the motion. A motion by Whaley, seconded by McKnight to table the motion
until the April 21, 2011 Board meeting. Ayes: Jones, Booher, Brown, Faltemier,
McKnight and Whaley. Opposed: Baker.
Meeting was adjourned at 10:40 p.m.
Respectfully submitted,
_________________________________________
Al Baker
Vice Chair