THE NEW ASHAROKEN VILLAGE HALL

THE NEW
ASHAROKEN VILLAGE HALL
Presentation to Village Residents
November 2014
AGENDA
Purpose of the Presentation
To Review the Background of the Project
To Provide a Summary of the Funds Available
To Review the Most Recent Bids Received
To Discuss the Due Diligence Performed
To Discuss Why we Selected the Contractor
To Discuss How the Village will Cover the Construction Costs
BACKGROUND OF PROJECT
Kelly Administration
 Initially proposed to the BOT by Mel Ettinger during Kelly
administration in August 2006
 BOT agreed to proceed, providing all necessary funding
would come from donations
 Initial fundraising campaign commenced in December 2006
 From December 2006 - February 2008 $171,000 in
donations were received
 Architectural plans were developed to renovate and
expand Village Hall to a total space of 3,169 square feet
 Project stalled due to insufficient funding and the change
of Administration
 Total expenditure during Kelly administration was $3,000
BACKGROUND OF PROJECT CONTINUED
Irving Administration
 In July 2008 the Irving administration began investigating
building a new Village Hall and hired an architect
 Architect created preliminary designs for a new building
with a total of 4,510 square feet of space
 From July 2008 - June 2012 the Village applied for
Economic Stimulus Grants to cover the cost of the new
building
 Unfortunately the Village was unsuccessful in obtaining
any of these Grants
 The Project was stalled due to insufficient funding
 In September of 2011 Hurricane Irene showed how
vulnerable Village Hall is by nearly flooding it
 Total expenditure during Irving administration was
$14,000
BACKGROUND OF PROJECT CONTINUED
Letica Administration
 In July 2012 the Letica administration reactivated the
project with a new committee headed by John Ross
 At no cost to the Village, John Ross created a set of
preliminary plans for a new Village Hall with 3,024
square feet of space
 A second fundraising effort was started in September
2012
 John Ross applied and received both the DEC and NYS
Health Department Permits for the new building
 In October 2012 Superstorm Sandy flooded Village Hall
rendering the building unusable
 The latest Fundraising Committee raised an additional
$127,000 in donations from September 2012 - August
2013 providing the Village with a total of $298,000
BACKGROUND OF PROJECT CONTINUED
Letica Administration
 The Village applied for FEMA assistance and three (3)
additional government grants
 In Early 2014 Architect Victor Cuneo was hired to
complete the plans and help prepare the detailed bid
package
 The Village received FEMA Assistance of $533,854 and
two (2) Government Grants of $77,000
 Initial bid package was Issued on July 7, 2014 and the
responses received on July 25, 2014 were All Rejected
 Second bid package with seven (7) alternatives was
Issued on September 12, 2014 and the responses were
received on October 8, 2014
 Total expenditure to date during Letica administration is
$16,540, including architect, survey and DEC permits
FUNDING SUMMARY
Summary of Funds Available from sources other than taxes
Source
Amount
Donations from Residents
$298,000
FEMA Assistance
$533,854
Other Government Grants
$77,000
Total Before Expenses Net of Interest
$908,854
Total Expenses to Date
-$15,139
Total Funds Available from Funds Other than Taxes
$893,715
NEW VILLAGE HALL
Front Rendering
NEW VILLAGE HALL
First Floor Plan
NEW VILLAGE HALL
Second Floor Plan
BID SUMMARY
Three Lowest Bids Received from Qualified Bidders
Company
Ravco Construction
Base Bid
Base plus
Selected
Alternates
$866,000
$924,900
SJS Construction
$1,199,736
$1,297,588
General Builders
$1,188,066
$1,300,994
RAVCO DUE DILIGENCE CONTINUED
Ravco Major Projects Prior Experience
Client
Project
Amount
Completed
Suffolk Community College
Major Interior Renovation
$994,900
Dec 2014
Cohalan Court Complex
Interior Renovation and Site Work
$656,000
2013
Brookhaven National Labs
Various Projects Multi Year
$1,530,000
2012
Levittown Public Library
Major Interior Renovations
$800,000
2011
Montauk Point Comfort
Complete Building
$640,000
2009
Buddhist Temple
Complete Building
$2,690,000
2008
RAVCO DUE DILIGENCE
Overview of process
 Mayor, 3 Trustees and the Committee interviewed Ralph Persaud,
President of Ravco, on 2 separate occasions
 All 6 Major Client References provided in Bid Package were extensively
questioned via telephone Interviews
 Ravco’s last 4 year’s financials were reviewed in detail
 Ravco’s last 2 year’s corporate federal tax returns were reviewed in
detail
 2 Sites visits were conducted and clients were interviewed
RAVCO DUE DILIGENCE CONTINUED
Site Visits Were Conducted to both the Buddhist Temple and the Levittown Public Library
Buddhist Temple Exterior
Buddhist Temple Main Sanctuary
Levittown Library Exterior
Levittown Young Adult Addition
 Both Clients were very satisfied with Ravco’s workmanship, their
attention to detail and their professionalism
 Levittown Public Library subsequently awarded Ravco a 2nd
Contract
RAVCO DUE DILIGENCE CONTINUED
Summary of Comments From Prior Clients
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Ravco stayed on budget
Ravco completed most work on schedule
Ravco is very capable of constructing complete building
All previous clients would use Ravco again for another Contract
All previous Clients were very pleased with Ravco’s workmanship
All of their clients felt that Ravco is responsible, cooperative, easy to
work with and able to solve problems as they arise
RAVCO DUE DILIGENCE CONTINUED
Ravco Business Summary
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Ravco has been in business for 20 years
Ravco is a family owned business with low overheads
Ravco’s low overheads usually have resulted in lower bids
Ravco is incorporated as Sub Chapter-S Corp
Ravco has never filed for bankruptcy or for reorganization
Mr. Persaud is a graduate civil engineer
RAVCO DUE DILIGENCE CONTINUED
Ravco’s Position
 Ravco claims that they only bid on projects when they believe that they
can be lowest bidder
 Ravco only bids on government and municipal construction contracts
 Ravco claims that they are very confident with our plans and detailed
specifications
 Ravco claims that they do not see any major potential areas for cost
increases
 Ravco claims that they can start project in approximately 2 weeks after
contract is signed
 Ravco anticipates approximately 6 months to complete
RAVCO DUE DILIGENCE CONTINUED
Board of Trustees & Committee feel extremely confident with the selection
 Mr. Persaud and Ravco enjoy a good reputation from their prior Clients
 The Committee has not been able to find anything “negative” on the
Internet or anywhere else regarding Ravco or Mr. Persaud personally
 Mr. Persaud seems to be a very personable individual
 Mr. Persaud seems to be very knowledgeable and fully understands our
project
BUDGET SUMMARY
Summary of Construction Costs
Item
Ravco Construction Contract
Approximate Additional Fee to Architect
Possible Contingencies
Total Budgeted Costs
Amount
$924,900
$7,500
$100,000
$1,032,400
BUDGET SUMMARY CONTINUED
How the Village Will Cover Costs?
Item
Ravco Construction Contract
Additional Fee To Architect
Total Committed Costs
Amount
$924,900
$7,500
$932,400
Total Funds From Donations, FEMA & Grants
Known Funds Needed
$893,715
$38,685
Possible Contingencies
Total Possible Funds Needed
$100,000
$138,685
Where Can the Needed Funds Come From?
Reserves Available
-Taxed Infrastructure (Y/E 5/2015)
-Taxed Infrastructure (Y/E 5/2014)
-Infrastructure Reserve Account (Y/E 5/2013)
-Marine Reserve Account (Y/E 5/2012)
Total Available Reserves
$65,000
$72,517
$49,500
$61,500
$248,000
Village Has Sufficient Funds to Cover Cost of Project Including the Potential $100,000 Contingency
BUDGET SUMMARY CONTINUED
Potential Additional Funding Possibilities
Item
Amount
FEMA 10% Local Cost Share Refund
$59,317
Hazard Mitigation Grant For Windows and the New Generator
$55,406
New Fundraising Campaign
$ TBD
We Thank You for
Your Continued Support
And
Your Generous Contributions
for this Project