Finance Committee Approves Contracts For Highview Trail Project, Telulah Park Pavilion Renovation – Discusses What Will Be Done With Remaining Funds After Bids Come In Under Budget

The Finance Committee met 02/26/2024. In addition to the request to accept funding to install a kayak rental station in Telulah Park, the committee took up 4 other action items, all of which were approved unanimously with minimal discussion.

I’ve prepared a transcript of the discussion for download:

ITEM 24-0221: Request to award the 2024 Highview Trail Project to MCC, Inc. in the amount of

$149,212.25 with a 13% contingency of $20,000 for a total not to exceed $169,212.25

The city had $400,000 budgeted for various hardscape improvements. Around $126,000 of that had already been directed toward the Peabody Park Trail Project which had also been awarded to MMC, Inc. This request now approved $126,000 of those funds to go toward repaving a portion of the Highview Trail. Even in both of those projects had to utilize their full contingency amounts, a little over $100,000 of the initial $400,000 that was budgeted would remain after these projects were completed.

Alderperson Sheri Hartzheim (District 13) asked what other projects the $400,000 was going to go for. Director of Parks, Recreation, and Facilities Dean Gazza said that the Highview Trail and the Peabody Trail projects were the two big projects. He could not recall in that moment what the projects beyond those two were. Given the favorable bids they had received, he believed they would have a balance after the projects were completed.

Alderperson Chris Croatt (District 14) noted that the budget for this project included a 13% contingency which seemed like a high percentage. He asked for the reason behind that. Direct Gazza responded that all of the pavement was going to be taken up. Additionally, they would be replacing the base and repairing a lot of drainage areas. “Once you get into the base, you never know what you’re going to encounter.” Director Gazza said that the contingency would only be spent if it was absolutely needed.

ITEM 24-0222: Request to award the City of Appleton’s 2024 Telulah Pavilion Renovation Project contract to RJM Construction, LLC. in the amount of $106,150 with a 14% contingency of $15,000 for a project total not to exceed $121,150.

Alderperson Croatt asked about the 14% contingency for this project, which, again, seemed higher than normal. Director Gazza said that with a pavilion of this age there was a risk that when they started upgrading things like the electrical and plumbing that they would run into code issues. Again, he stressed that they tried not to use the contingency money unless they had to.

Director Gazza also went out of his way to praise RJM Construction, the contractor for this project. The city had originally budgeted $200,000 for this project, and RJM’s bid had come in at only $106,000. Per Director Gazza, RJM was a “small to mid-sized construction company that’s been lately doing a lot of projects for us with great success. So, for example, they’re doing much of the work in the health department. They’ve done some other work at pavilions, and then this one, and we’ve been super pleased with them. So, and also their pricing has been really fair and favorable. So really happy to be working with them.”

In light of how far under budget the project was, Alderperson Hartzheim asked what would happen to the left over dollars. Director Gazza said that, depending on the bids that came through on other projects throughout the year, the money could go toward another project; however, the goal would be to return the money [presumably to the taxpayers] and not utilize it.

ITEM 24-0220: Request to award Unit B-24 Asphalt Pavement Reconstruction to MCC, Inc. in the amount of $1,407,816.40 with a 3.5% contingency of $50,000 for a project total not to exceed $1,457,816.40

The bid had come in around $350,000 lower than the city had budgeted, and Alderperson Hartzheim expressed satisfaction with that.

ITEM 24-0219: Request to approve Resolution for Worker’s Compensation Self-Insurance

This item was approved unanimously with no discussion.

View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1165862&GUID=C5A9B4FA-6FD6-491A-9D0B-702D4B5F7C2B

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