Although Peachtree
City mayor-elect Steve Brown hasn't been sworn into office yet, he is
already making waves over a key city project.
Brown had requested
information on the expansion project that will add six covered tennis
courts and an office building to the city's tennis center; a workshop
was held on the matter Friday afternoon at City Hall.
The $2.507
million contract for the expansion was approved unanimously by the City
Council at its Oct. 18 meeting, but that didn't stop council members Dan
Tennant and Steve Rapson from gently criticizing the project's bidding
process during the workshop.
The chorus
of the criticism was that more bidders should have been sought for the
project and the City Council should have been made aware that there were
only three bids for the financing of the project.
Meanwhile,
grading work has already begun on the expansion, which is billed as giving
the center the ability to attract even more prestigious tennis events.
The Development
Authority of Peachtree City, which operates the tennis center, oversaw
the entire bidding process.
Selecting a
bank for financing the project, however, was partially out of the authority's
hands since it was done through the Georgia Municipal Association's Bricks
and Mortar Program, which only seeks bids from specially qualified banks.
Virgil Christian,
the authority's new executive director, who has been laboring over the
project the past several years as the director of the tennis center, defended
the criticism. He noted that the contractors on the projects helped cut
the price down from its original $3.1 million estimate.
The main contractor
on the project is Group VI, while Flat Creek Inc. is responsible for surfacing
the tennis courts and the authority contracted with Foley Design Associates
which designed the original tennis center, Christian said.
Group VI was
one of four construction firms who replied to the public advertisements
in The Fayette Daily News, the county's legal organ. But through the process
of reviewing each firm's qualifications, two of the companies, Tomco Construction
and Burcher Company, were determined not to have met the qualifications.
That left Group
VI and Tiernan and Patrylo as the remaining bidders. In doing its checks
on both companies, members of the authority's construction committee found
one of Tiernan and Patrylo's previous projects had several minor unresolved
issues, and that was one of the deciding factors in going with Group VI
instead, said Jim Fulton, a member of the authority's construction committee.
The authority
ended up authorizing negotiations with Group VI for the contract on the
expansion.
Brown said
he felt the Development Authority should have advertised the project outside
of Fayette County. Tennant agreed, and both mentioned that there are plenty
of other capable construction firms in the Atlanta area.
Group VI is
headquartered in Peachtree City, however. Brown said he wasn't impressed
with the quality of some of Group VI's construction projects, but he didn't
cite specific examples.
Christian said
he considered putting the proposal to Atlanta firms, but he felt the tendency
of projects from metro area companies was to have delays because they
weren't located nearby.
"I think
we had four well-qualified bidders, two were very qualified and one was
most qualified," Christian said.
Bill Foley,
the architect on the project who helped manage part of the bidding process,
said other firms shy away from doing work in Peachtree City because of
the added expense involved with meeting the city's landscaping requirements.
Tennant said
he wasn't making any accusations, but he wanted to make sure the citizens'
tax monies were being spent correctly.
Christian said
his door remains open for anyone with questions about the project.
"If you
need information, I'll get it to you," Christian said.
Financing for
the project, which was funneled through the Georgia Municipal Association's
Bricks and Mortar program, ended up with First Union, with a winning bid
of 4.44 percent interest over the life of the 15-year loan. The tennis
center was one of the construction projects the city sought to finance
through GMA, including the renovations to City Hall and renovations to
a fire station.
City Finance
Director Paul Salvatore noted that the deal with First Union was under
the budgeted finance rate of 5 percent. The actual rate locked in was
4.41 percent since city officials were able to convince First Union to
reduce the rate.
The other bidders
on the financing package were SunTrust Bank and BB&T.
"As far
as I know, we did as good as we could have," Salvatore said.
Rapson complained
that council wasn't told about only receiving three bids for the financing
package. Salvatore said GMA officials told him there were "really
only two banks who were aggressive in pursuing these type of deals."
"Maybe
some of these things we should question on the next project," Brown
said as the workshop wrapped up.
"I think
the message is we'd rather have more information than too little,"
Tennant said.
The workshop
came to fruition after Brown requested information on the bidding process
used for the tennis center. City Manager Jim Basinger said he contacted
Development Authority Chairman Tom Farr about the request, and Farr suggested
a face-to-face meeting would be appropriate to address any concerns.
Brown noted
that City Attorney Rick Lindsey and Development Authority attorney Mark
Oldenburg attended the meeting, and he said it wasn't his intention for
them to be there.
Basinger explained
that since Lindsey generally attends all council meetings, and the workshop
was announced as a called meeting of the City Council, it was decided
that Lindsey should attend. He also noted that Lindsey was aware of the
situation with the tennis center.
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