Hailey says he could save city $400K
When it comes to the phase II of the downtown economic revitalization project, engineer James C. Hailey stood his ground at Tuesday night?s McMinnville Board of Mayor and Alderman meeting.
Using Hailey?s services from the beginning, instead of EG&G, would save the city $412,386 based on estimates submitted by both.
During the meeting, Alderman Patti Nunley questioned why Hailey?s estimate was so much lower than EG&G?s and why he believes he can do the job for that.
?I have worked in McMinnville a long time,? said Hailey. ?Fifteen years ago, we dug up this area. I?m not someone from out of town who doesn?t know the area. That?s not to say I wouldn?t have a surprise.?
Given any surprises, the cost to the city would not increase. The contract with Hailey would be for a set amount and will only increase if the city wants to make design changes that would increase the cost and not a miscalculation by Hailey?s company.
Given the difference in proposal amounts, Hailey was asked if he considers EG&G?s bid too high. Hailey refused to comment, saying he has no knowledge of what they used to come up with that number.
?I do want to make something clear,? said Hailey. ?I didn?t come to McMinnville soliciting the project. I don?t try to undercut someone else?s proposal. That?s not how I do business. I was asked what my company would charge without knowledge of what anyone else has presented.?
As discussed prior, until preliminary work has been done, no one will know if EG&G?s $4.2 million estimate is unreasonable. Discussion was made to allow EG&G to do the preliminary work and not the construction if the number remained high. That consideration was again made by Nunley.
?It?s not going to come down that much,? said Vice Mayor Donald Hillis. ?It?s not going to come down a quarter of a million.?
Allowing EG&G to do the preliminary work will cost the city $133,900. In contrast, Hailey?s company will charge $12,000 ? a savings of $121,900.
The city has not decided who will do the preliminary work.
Going with Hailey might also ensure the project stays within the set date of completion. The company has a good reputation of getting projects done on time and sometimes ahead of schedule, according to Hailey.
This should come as a warm welcome to downtown merchants. Phase I of the project took several months past the original completion date. If given the contract, Hailey intends on monthly meetings with the city and the downtown merchants to make sure everything possible is being done to limit interruption of business.
After having their interview with Hailey, discussion was made to inviting EG&G president John Grossmann to McMinnville to answer a few questions regarding his contract.
?I think that would be a waste of time,? said Hillis. ?He has told us he is not negotiable.?
According to Alderman Bobby Kirby, Grossmann had made the same comment to him. He also agreed a meeting with Grossmann would be a waste of time. No decision was made to invite Grossmann for an interview with elected officials regarding specific dollar amounts in the EG&G contract.
City officials will meet Dec. 26 at 4 p.m. at McMinnville City Hall to determine which direction to go ? EG&G or Hailey.
Saving over $400,000 on phase II would allow the funds to be spent elsewhere. Ideas presented by Kirby:
? Fund the 25-cent tax increase passed six months ago due to the need in the 2006-07 fund balance.
? Reinstate city employees cost-of-living raises this year and allow enough funds for three more years. The cost-of-living raise was removed from the 2006-07 budget.
? Purchase city department vehicles. Several vehicles were removed from the 2006-07 budget.
? Absorb almost two years of Group Health Insurance rate increases. City employees deductibles were recently increased from $250 to $1,000 in the 2007 coverage.