OSCODA – The Oscoda Wurtsmith Airport Authority (OWAA) met via Zoom on Thursday, June 11, and approved a bid for building 5006 after receiving three bids for two buildings to be demoed.
“As we’ve talked about in previous meetings Spicer Group was hired to help us implement a number of projects and those include the demolition of 5006 and 5065 with assistance from Spicer Group competitive bids have been competing for those demolition projects,” said Airport Manager Gary Kellan.
A copy of the bids were provided to representatives for discussion. Bids were received by Dore & Associates of Bay City, Bierlein Companies of Midland and Pitsch Companies of Grand Rapids for individual demolition costs and joint building demolition costs.
The engineer’s preliminary cost estimate showed that building 5006 was estimated to cost $287,575 while building 5065 was estimated to cost $304,075 with $581,750 being the total preliminary cost estimate for both buildings.
Dore and Associates bid building 5006 at $298,900 and building 5065 at $373,400 with a cost totatling $672,300 for both buildings. Bierlein Companies bid building 5006 at $368,650 and building 5065 at $504,950 with a total cost coming to $858,100. The most costly bid came from Pitsch Companies who bid building 5006 at $531,000 and building 5065 at $695,000 totaling $1,220,000 for both buildings.
“The preliminary estimate was a bit lower as compared to the lowest bidding contractor and somewhat substantially lower than the other higher bidding contractors, but if you look at the breakdown on the bids that was provided there’s estimated to be a significant amount of asbestos and other types of hazardous materials abatement that was sort of the heaviest line items for those two buildings,” said Kellan.
Additionally, Kellan reminded the airport authority that a discussion to get the Oscoda Wurtsmith Airport Local Development Finance Authority (LDFA) to financially support the demolition project took place at their January meeting. At that time, the board authorized Kellan to create a proposal to the LDFA. According to Kellan, if the authority agreed to implement both demolition projects he said it would require a substantial draw down of their cash reserves.
“If we were to take down both buildings it would probably require a cash contribution of about $400,000 from the airport authority, an additional $300,000 from the LDFA,” said Kellan.
Keeping in mind all the capital repairs needed Kellan told board members that staff recommended the demolition of one building, building 5006.
“That recommendation is not because its the lower cost of the two as much as its in a higher visibility location. Its sort of in the heart of the hangar complex next door to Phoenix Composite Solutions where 5065 is a little bit more further removed from that,” said Kellan. Its not only the interior condition of 5006 the hazardous materials in 5006, but unfortunately the building was clad with failing brick siding and its substantially flaked off now and in my opinion is a blighting influence on that whole portion of the development.”
With all this in mind, Kellan said that staff recommended awarding the bid to Dore and Associates for $298,900. With a cost share agreement with the LDFA, Kellan said the agreement would include splitting the cost with a 10 percent allocation for contingencies bringing the total to $330,000. According to Kellan, $165,000 would be provided by each partner for the project.
Representatives were mostly on board; however, Dave Dailey had other thoughts to lower the cost of the demolition.
“As a alternative could we think about having our own people set to asbestos abatement and maybe even hiring a couple of people?” said Dailey. “Since we’re talking about lots of money we could hire a couple people and have them in training and then during the winter months we would be able to do that and you wouldn’t have to hire additional people for the summer months.”
Chairman Kevin Boyat recognized Dailey’s suggestion, but said with the additional work coming with the spaceport he personally felt it wasn’t a good time to move ahead with hiring their own people.
A motion to approve awarding the bid to Dore and Associates was made by Rob Huebel and was seconded by Mike Munson receiving a 4-1 vote with Dailey dissenting. A motion to approve authorization to establish a cost share agreement with the LDFA was made by Kevin Beliveau and was seconded by Munson receiving a 5-0 vote.
Other business included:
• A motion to approve the May 2020 financial activities report totaling $94,208.77 was made by Munson and was seconded by Huebel receiving a 5-0 vote. Aaron Weed and John Swise were absent from the Thursday meeting.
• Authorization for Kellan to issue a special use permit to Isuzu Corporation for their use of Taxiway ‘A’ for vehicle testing for three to four days. The company will pay $1,000 per day. A motion to authorize issuing the permit was made by Munson and was seconded by Kevin Beliveau.
• Resolution 2020-05 was approved which amended areas of the budget including building demolition, landside capital maintenance and repairs and painting buildings. Kellan showed an increase of $15,000 which was approved in the aforementioned article. In order to offset costs, Kellan suggested that the $75,000 allocated to painting buildings should be removed as well as decreases to landside capital maintenance and repairs. The changes bring the budget down to $999,600 from the $1,064,600 originally adopted. A motion to approve the amendments was made by Beliveau and seconded by Dailey receiving a 5-0 vote.
• Discussion to purchase a ‘tele-handler’ vehicle for $38,500. A motion to authorize the purchase was made by John Swise and was seconded by Huebel receiving a 6-0 vote. Swise joined the Zoom call during the middle of the meeting.
• Discussion about the pending lease eviction on properties leased to Sage Ordnance Systems. According to Kellan, Sage is offering to pay a minimum of $6,000 per month going forward and the authority, according to Boyat agreed to that. All payments will first be applied to reimbursing OWAA for having paid Iosco County for Sage’s back owed delinquent property tax obligations on OWA properties that are leased to Sage
• Airport manager comments about the building number 6 roof cover replacement, Iosco Apron phase II resurfacing project to be mobilized after 4th of July weekend, according to Kellan and Taxiway ‘E’ phase I resurfacing project scheduled for Mid-September.