Heritage House Project II Possible With $100K State Grant

July 4, 2013

By Ann Wishart
In some ways, Chardon City Council took the Heritage House project back to square one Tuesday, but it may be a better place than they have been for the last seven years.
Mayor Phil King started the discussion on the Heritage House construction during the special council meeting by thanking Sen. John Eklund for securing a $100,000 grant to put toward the structure from the Ohio Historical Society through a painless, low-cost process.
When Eklund arrived later, King credited him with saving the project.
Architect Hank Penttila reported the Geauga County Habitat for Humanity organization has indicated a great interest in volunteering skilled labor to build the Heritage House and that Habitat carries its own liability and insurance for that kind of work.
“The more volunteers we have, the more money we can save to put toward furnishings and equipment,” Penttila said.
He added he and Enzo Perfetto, the contractor who submitted the lowest bid to serve as the project’s construction manager at risk, and the sub-contractors interested in working on the building have been waiting to see if the $100,000 grant would come through.
King noted the reduction for sub-contract work of $107,000 negotiated by Penttila and Perfetto plus an estimated $35,000 saved by using volunteer labor are good savings.
The legal side of the story is the city has a self-imposed limit of $281,000 plus the 10 percent allowed overage for the construction, adding up to about $310,000.
City Solicitor Jim Gillette reviewed the CMR selection process as an alternative to traditional project bidding.
A project cost estimate is secured, proposals for the CMR position are requested and applications are submitted to the city. The top three choices are provided with the plans and the city and CMR propose pricing as well as supply a security bond or guarantee.
If they agree the structure would be built for a maximum of $310,000, a contract would be struck, Gillette said.
It is up to the CMR to negotiate with the subcontractors and see they and the volunteers produce a quality product.
If the project costs more than the agreed-upon price plus 10 percent, the CMR is responsible for the overage and must legally complete the structure, even if he loses money in doing so.
King said there doesn’t seem to be a way for Heritage House to be built within the money allowed by the city’s budget.
Perfetto submitted the lowest bid of $458,465 on the Heritage House project, King said, adding despite concessions from subcontractors and other deductions, the effort was fruitless.
“This contract can’t get to $310,000,” King said. “The last time we talked, we were at $316,000.”
King added he doesn’t want the city to get into a contract with a builder under the circumstances and he feels the city should go through the process again from the beginning.
“I agree with you 100 percent,” Penttila said, sitting with John Eltzroth, chairman of the Heritage House committee.
Penttila asked Gillette about the legal aspects of redefining the project, now the state grant is available.
Gillette said the city is tied to the $281,000 cost estimate for this project, which started seven years ago when many costs were much lower.
But a new project along the same lines would require another cost estimate and the process would be essentially the same to find a CMR.
“That would be my preference,” King said, adding it’s a possibility because Perfetto and council never signed a contract.
“My recommendation is to go back to the drawing board and ask that the project be re-estimated,” he said.
He added the budget would be closer to a more realistic $390,000 for the project.
“Obviously, Hank and Enzo have been working very hard to fit six gallons into a three gallon jug,” King said, urging council to have McGuiness Unlimited do the project estimate to avoid any perception of impropriety.
City Manager Randy Sharpe said the company will do the estimate for $4,525.
The timeline probably pushes construction to next spring because of time required for advertising for and selection of a CMR, Sharpe explained.
A majority of council voted to seek a new cost estimate and rebid the project with Mitch Hewitt and Dan Meleski voting against the motion. Council voted unanimously to reject all previous CMR proposals.
In a related matter, council voted to release the $14,000 community deve-lopment block grant from the Geauga County Commissioners who offered to pay for tearing down the log cabin that Heritage House will replace.
Tuesday was the extended deadline council was given for deciding to use the money.
Sharpe said the money would be used to fund a couple of other worthy projects on the county’s block grant list. Council agreed with thanks to the county for its patience on the matter.
Council discussed having city personnel demolish the log cabin.