Trustees stay firm on bids

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January 6, 2011 - 12:00 AM

Hospital trustees almost went back to the drawing board Tuesday night in their search for a construction management firm.
Iolan Larry Macha appealed to trustees to again review the 10 firms and winnow them to “five or six,” instead of the three decided on at last week’s meeting.
Macha, owner of Macha Enterprises, has dealings in the construction business in his own right. He is also married to Virginia Crossland Macha, whose family owns Crossland Construction, whose bid was eliminated by trustees in the first round of cuts.
“I admit I’m prejudiced,” Macha said, insisting Crossland would give trustees “the best possible job for the cheapest price.”
Crossland has worked on several area projects including Walmart, Jump Start Travel Center, Chanute schools, renovation of Iola schools, Monarch Cement’s renovated headquarters and the medical facility in Girard.
In their initial review of firms, trustees looked for firms that had considerable experience building critical care access hospitals in rural locations.
Nevertheless, trustees considered Macha’s request and debated its merits.
Tom Miller said he followed the theory that “more sharks in the tank going after the prey generally creates a more competitive bid,” and suggested that “we add a couple more to the mix.”
On the flip side, trustee Patti Boyd cited architect David Wright’s previous advice that with only three contenders, they would prepare stronger presentations. Wright is an architect with Health Facilities Group, Wichita, whose firm is negotiating to design the new hospital.
Trustee Sean McReynolds voiced his hesitation to go back to square one and review all the prospectuses again.
“We spent a number of hours doing this before,” he said. “Is it worth backing up, time wise?” McReynolds also said “we’re opening us up to problems,” if they did so.
Adam Weber, legal counsel, said the step would set the process back two weeks, but was not out of bounds.
“It’s not illegal. But it’s bad practice,” Weber said.
Lacking vocal support, trustees let the matter die.

INTERVIEWS with representatives of the three firms — JE Dunne, Murray Construction and Hutton Construction — are to begin at 4 p.m. Tuesday. Each is allowed one hour to state their fees and preconstruction services, including securing local subcontractors and managing competitive bidding for such services.
The construction management firm stands to make about $1.6 million from the project. Another $15 million will be farmed out to subcontractors to build the 60,000 square foot hospital.
In discussions trustees had with those who have worked with the three firms, all had glowing reports.
Miller and Karen Gilpin, board president Harry Lee and Joyce Heismeyer, chief executive officer of Allen County Hospital, talked with their peers at hospitals built by the three firms under consideration.
Heismeyer reported the CEO of Susan B. Allen Hospital in El Dorado said Hutton Construction is “the best firm they have worked with, managing the project expertly,” including making changes “after their warranty was over without charge or any problems.” Heismeyer added the El Dorado project required few change orders, and that those were made “just by visiting with subcontractors without using the change order process.”
All the firms came in under time and under budget.
JE Dunn held biweekly meetings with subcontractors and hospital staff, Heismeyer said of their work at Fredonia Regional Hospital. “They also encouraged staff input and let the hospital staff help where possible.” JE Dunn, too, continued to work on problems after warranties had expired, Heismeyer said, citing problems with air conditioning that JE Dunn continued troubleshooting.
A plus for Murray Construction was its open line of communication with hospital administrators, Heismeyer said. Mary Sweet, CEO of Kiowa County Memorial Hospital in Greensburg, said she had a “direct line to the construction manager, (who) handled everything.” Murray also provided “multiple numbers” for hospital staff to call to put them in contact with the company.

IN OTHER business, trustees designated time near the beginning of each meeting for public comments.
Trustees also talked with Wright about public input regarding the design of the hospital. Wright said schematics of the new hospital should be available by April and that town hall meetings would be good.
McReynolds, who also sits on the Humboldt city council, said such meetings would help develop “ownership” in the new hospital, “which will be very productive down the road.”
Wright will begin meeting with hospital department heads by the end of this week to determine specific needs and desires.
Appraisals of land for the new hospital will begin Wednesday, Weber said.
Trustees still have two landowners with whom they have not met “face-to-face,” Jay Kretzmeier said. They also have not received word from the Kansas Department of Health and Environment as to the nature of the soil on the parcels of land in question.
Next week’s meeting will be held primarily in executive session as trustees interview constructive management firms.

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