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HomeMy WebLinkAbout1995-11-15 ad Hoc Haven Street Task Force MinutesSale of 25 Haven Street Task Force Meeting Minutes pate. ` Wednesddy, 15 November 1995 Time: Place: 7:30p.m. 230 -Ash Street, Reading, MA Present: Messrs. Pacino, Howard and Brown Mrs. Botticelli, Ziegler and Grimm Messrs. Blomley andIucker Guests; Gerry Fennessey, Stroto USA Graphics Rick Ford, Shepardson Group Briarrt Heffron, Strata USA Graphics George Hines, Board of Selectmen Peter Schmitz, Brooks Pharmacy The Chairman called the meeting to order at 7:30 p.m. The Chairman stated that Messrs. Ensminger and Bartlett would not be present this evening. 2. Prior Minutes y Ms. celli, the On a motion made by Ms. Ziegler and $ee eaeedbThe motion was passedtes of 18 September 1995 were approved p ~unanimously. 3. Review of 25 Haven Street Bids (Len Rucker) Mr. Rucker reported that Strato Reprographics' bid 'o Or$ he 5 Haven Street ker and that Brooks Pharmacy b pr ,perty_was $365,000 Proceeded to highlight items listed in the /hick remove ludedformerpster 21 E costs; underg!ound storage tank; replace oil burner; and concrete pad; remove electric manhole rv services; e boiler ~dnsulat on Pa luding abandon manhple; existing electrical all pipe joint cement; curb cuts; pedestrian crosswalk, Chapter 21 E cogmpletion remediation costs; pavement repair due to fuel tank removal; pylon approval; and roof warranty transfer. Ms. Grimm inquiredlf the final Chapter 21 E clean up has been completed. Mr. Rucker replied affirmatively-and stated that the final lab analysis is being done. Mr. Pacino inquired as to what a "pylon" sign is. Mr. Howard replied that signage will be of importance to the town. Ms. Grimm inquired if the crosswalk is a Community Planning and Development Commission issue. Mr. Rucker replied that, according to the Town Manager, Cer, a crosswalk jury al on. considered a public safety issue and is not under Paae 2 November 15 1995 Mr. Pacino inquired how many parking spots the crosswalk would take away. Mr. Rucker replied that the Town Manager originally estimated that the crosswalk would eliminate up to three angle spots and one parallel spot. Ms. Grimm inquired if the CPDC would have to approve the existing curb cuts. Mr. Howard replied affirmatively because the curb cuts are part of the site plan review. Mr. Howard then inquired if the boiler could continue to be used. Mr. Rucker replied that it could be, but that it depends on the buyer's needs. Mr. Pacino asked for the Department's analysis of the bids. Mr. Rucker replied that the Department reports that both bids meet the minimum requirements as set forth by the Town Meeting criteria, that there are no irregularities or exceptions that would cause the Department to reject them and that the bids meet all conditions. Mr. Pacino stated that the Task Force now needs to make a recommendation to the Board of Selectmen and the Board of Commissioners. Mr. Rucker stated that the Task Force can recommend one or both of the bids. Mr. Howard asked for a clarification of what an "exception" to the bid is. Mr. Rucker replied that an exception is usually a term or condition of the bid that a bidder cannot meet such as insurance requirements, signing certain bid documents or omissions in a bidder's bid. Mr. Rucker reiterated that the Department does not see any substantive reason to reject any of the bids. Mr. Brown stated that from his standpoint, the $16,620 contingency noted by Brooks Pharmacy for the purposes of removing the boiler insulation stands out in his mind. Mr. Brown suggested recommendation of the bid submitted by Strato Reprographics. Mr. Rucker replied that the $16,620 amount depends upon what the buyer intends to do with the boiler. Ms. Botticelli inquired if Strato Reprographics carried a financing contingency in their bid. Mr. Fennessey replied they did not. Mr. Howard inquired if both bids meet the Town Meeting criteria of 80% of the appraised value. Mr. Pacino replied affirmatively. Mr. Howard noted that if the $16,620 contingency was considered in he who h Pharmacy bid, the amount would drop down to approximately would not meet the Town Meeting criteria. Page 3 November 15 1995 Mr. Rucker noted that because this is a bid situation, questions should be asked of both bidders in order to maintain equality. Mr. Schmitz commented on their asbestos contingency and stated that they operated under the assumption of the 1989 estimate of the vinyl floor tile and boiler pipe insulation removal costs as being $8,000. Mr. Schmitz stated that their bid specifically addresses the pipe joint cement. Mr. Schmitz also stated that his company is not looking for any special variances from the town. Ms. Grimm noted that the local newspapers have recently published repporrt about what the future plans are for the space that Brooks Pharmacy presently occupies. Mr. Schmitz replied that he hasn't seen any of these newspaper articles. Mr. Schmitz stated that his company has been in discussions with their landlord (Atlantic Supermarket) regarding Brooks Pharmacy vacating its present space so that the space could be turned back over to the landlord for his expansion purposes. Mr. Schmitz also noted that if they are the successful bidder of the 25 Haven Street property, his company will have to spend substantial money to bring the property up to their prototypical standard. Mr. Heff ron stated that his company did not specify an amount for asbestos removal and that this issue should have no bearing on the actual bid itself. Ms. Ziegler inquired if Strato Reprographics has consulted with the building inspector as was discussed at the last Task Force meeting. Mr. Fennessey replied that they have and that the building inspector foresees no problems. Mr. Pacino stated that he has confirmed that issue himself. Mr. Heff ron questioned whether or not the Department has to accept the contingencies stated by Brooks Pharmacy. Mr. Rucker replied that it is a gray area. Mr. Rucker noted that in a normal bid process, the Department has the ability to reject or accept any bids, but that the Town operates under the Uniform Procurement Act in this instance. Mr. Rucker reiterated that it is the Department's feeling that there is no basis for rejecting either one of these bids. Mr. Rucker stated that this does not mean the Department supports either bid, but only passes them along to the Task Force for the actual recommendation. Ms. Botticelli inquired if the terms and contingencies are negotiable. Mr. Rucker replied that he is not sure, but thinks that they are not. Mr. Rucker stated that general counsel would have to answer the Task Force question. makes the r. Rucker added that according to the flow chart recommendation; the Board of Selectmen and the Board of Commissioner take a formal vote; and the Department would then execute the purchase procedures. Mr. Rucker stated that a lot of the contingencies would be dealt with at that juncture because the Department has no authority at this point of the process. Mr. Howard inquired what type of business Strato Reprographics is. Paae 4 November 15 1995 Mr. Fennessey replied that their company is a full graphic reproduction company that specializes in color copying and blue printing. Mr. Fennessey stated that they service Fortune 500 companies as well as individuals, and that they anticipate more retail business should they be the successful bidder of this property. Mr. Schmitz reiterated that his company is not looking for any variances from the town. Mr. Schmitz tstated o install roat the reason they carried the $16,620 HVAC units and remove the entire contingency due to their desire oil bu ner. Ms. Grimm noted that Brooks Pharmacy's site plan indicates remodeling and expansion. Ms. Grimm inquired how they plan on achieving that. Mr. Schmitz replied that according to the bid, there is room for expansion of about 2,600 square the building would meetdtheatprhis ototypp al layout consider expansion so Ms. Botticelli inquired how large their present facility is. Mr. Schmitz replied their present facility is approximately 7,200 square feet. Mr. Rucker replied that there are expansion possibilities up to the property line. Mr. Pacino inquired if the Task Force is ready for a recommendation. A motion was made by Mr. Brown and seconded by Ms. Ziegler to accept the bid submitted by Strato Reprographics and recommend such to the Town of r \ Reading Board of Selectmen and the Reading Municipal Light Board of Commissioners. The Chairman called for discussion. Ms. Grimm inquired if the Board of Selectmen and the Board of Commissioners intend to review both bids. Mr. Rucker replied that it is up to either Board to decide. Mr. Rucker also noted that the Task Force's recommendation is non-binding. Mr. Pacino stated that since he represents the Board of Commissioners, this recommendation will carry some weight with that Board. Mr. Pacino then acknowledged Selectmen George Hines and asked for a statement. Mr. Hines replied that since he missed the beginning of the meeting he cannot comment on how the Board of Selectmen might vote. Ms. Grimm informed Mr. Hines that one of the main issues being discussed this evening is that of the asbestos contingency noted by Brooks Pharmacy. Mr. Hines inquired why both bidders wouldn't note this contingency in their bid. Mr. Rucker replied that it all depends on what the buyer's intended use of the boiler would be. November 15, 1995 Page 5 Mr. Howard inquired if the $16,620 contingency amount is just for the boiler insulation or for the tile as well. Mr. Rucker replied that that figure takes into account everything and that the number could actually be lower than that. Ms. Botticelli noted that the asbestos figure is an estimate dating back to 1989 and that disposal costs have increased substantially since then. Ms. Botticelli stated that she is not comfortable with that 1989 estimate. Ms. Botticelli also noted that she recommends the Strato Reprographics bid due to the pylon sign contingency noted in Brooks Pharmacy's bid. Mr. Hines stated that from his point of view, the Board of Selectmen will want other facts such as a comparison of the bidders' intended uses with the uses in Reading square at the present time. Mr. Hines stated that a "manufacturing" company would need to be considered further. Mr. Brown stated that the Task Force has to consider what is best for both the town residents as well as the ratepayers, and that he sees Strato Reprograhics as meeting that interest. Mr. Rucker noted that Brooks Pharmacy carried a $5,000 contingency for remediation costs. Mr. Schmitz stated that their bid operated under the specifications and that if the remediation costs are significant, then the actual removal costs need to be specified. Mr. Heffron noted that his company bid the exact bid package that Brooks Pharmacy did. Mr. Hines inquired if Strato Reprographics has a similar location that he could visit to get an idea of what their business entails. Mr. Fennessey stated that they have a location at 62 Middlesex Turnpike in Burlington, MA that he could visit. Mr. Rucker noted that the Task Force is not obligated to be bound by either a high or a low bid. Mr. Rucker stated the only criteria the Task Force had to adhere to was that set at Town Meeting regarding the minimum amount. Mr. Rucker added that the Commissioners are not committed either to a high or low bid. Ms. Grimm asked if the Task Force could be provided with updated asbestos removal costs. Mr. Rucker replied affirmatively. Ms. Grimm inquired if Strato Reprographics would have to have a site plan review conducted. Mr. Rucker replied affirmatively. November 15, 1995 Page 6 Ms. Botticelli inquired if this review would take place prior to purchasing property or prior to commencing operations. Mr. Rucker replied that it would be prior to commencing the sale. Mr. Rucker noted that it takes approximately six months to a year to consummate a sale. Mr. Hines stated that this Task Force is not the Department's Task Force, and that its obligations should be to the town, not the ratepayers. Mr. Pacino stated he disagrees and that the Task Force has an obligation to both the town and the ratepayers. Ms. Grimm noted that Strato Reprographics did not comment on the remediation costs. Mr. Rucker stated it was their choice not to mention it, and that Brooks did choose to mention it. Mr. Howard suggested looking at both bids as if they were equal and which one would be a better use of the property. Mr. Howard noted that Brooks Pharmacy would probably have more traffic than Strato Reprographics would. Mr. Heffron noted that unlike Brooks Pharmacy which has an existing customer base, his company would bring new customers to the town. Mr. Heffron also stated that they intend to operate from 7:30 a.m. to 8:00 p.m. and employ 15 people in this location. Mr. Schmitz stated that his company is in a position where they have two years left on its present lease and their landlord has informed them that he will not renew that lease. Mr. Schmitz added that Brooks Pharmacy would need to relocate in order to stay in Reading. Mr. Schmitz stated that it is their intention to remain in the community and to be a convenient service to the residents. Mr. Schmitz stated that in order to maintain that customer base, they would need to relocate as close to their present location as possible. Mr. Schmitz stated that his company will maintain as much of the present look of the building as possible. Mr. Hines noted that if Brooks did vacate its present space, the Atlantic Supermarket would be able to expand its facility. Mr. Pacino stated that he would lean towards recommending Strato Reprographics because they showed initial interest in the building several months ago. Mr. Pacino added that he has some reservations about the contingencies noted by Brooks Pharmacy, but if Brooks Pharmacy was the successful bidder it would bring more traffic to that location. Mr. Pacino stated that he sees benefits to both parties being the successful bidder. Mr. Howard requested more information on the asbestos costs. Mr. Howard also expressed an interest in visiting Strato Reprographics present location in Burlington. On a motion made by Mr. Howard and seconded by Ms. Botticelli, the Task Force voted to table the prior motion made by Mr. Brown recommending the Strato Reprographics bid. The motion was passed unanimously. November 15, 1995 Page 7 Mr. Howard inquired when the final lab results on the tank will be received. Mr. Rucker replied that the preliminary test results have already been received. Mr. Blomley stated that the final results should be back by the end of next week. Ms. Ziegler inquired if both bidders presently pay a personal property tax. Mr. Fennessey replied affirmatively. Mr. Schmitz replied that he is not sure, but believes they do. The Task Force requested that the Department obtain specific estimates on the asbestos removal and present them for further discussion and consideration of the bids. Mr. Rucker inquired if the Task Force wished to schedule another meeting. The Task Force scheduled November 20, 1995 at 8:00 p.m. as their next meeting which will be held at the offices of the Department. There being no further business, on a motion made by Mr. Howard and seconded by Ms. Botticelli, the Task Force voted to adjourn 9:15 p.m. The motion was passed unanimously. The Chair called for a poll of the vote: Mr. Howard, Aye; Mr. Brown; Aye, Ms. Botticelli, Aye; Ms. Grimm, Aye, Ms. Ziegler; Aye and Mr. Pacino, Aye. /mcn