4.1. SR 04-07-1997ity of
ITEM 4.1.
iver
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor & City Council
Pat Klaers, City Administrator
April 7, 1997
Liquor Store Bids
The City Council is scheduled to review and consider the bids for the hquor
store project. Construction Manager Mike Parsons from Greystone has
worked with the architectural firm for the project, Tushie Montgomery, with
Liquor Store Manger Fritz Dolejs and city staff in evaluating and analyzing
the sixteen bid packages that Greystone will manage for the city. Attached
for your review is a summary of the recommended awards for the sixteen bid
packages.
It should be noted that the budget estimate was put together in January.
Following this budget estimate there were changes made in the lighting
package, so while it appears that the electrical proposal (Bid #5) is way over
budget, it is actually a very good price for the work requested. As an aside I
would like to note that Reliance Electric did the work on the ice arena project
and did a very good job for the city.
The city will be rejecting the bid for the windows and storefront package (Bid
#7) as this low bid is way over the budget estimate. It is proposed that we
will make some design and specification changes to the windows and
storefront package and that by rebidding the proposal with these changes the
city can get the price lowered by about $10,000 or more. Additionally we can
rebid this package without a delay in the project as this item is installed
later in the construction process.
Regarding the concrete and masonry low bid to MSC Concrete, Inc., I would
like to acknowledge that the city has received a letter from M.C. Magney
Construction, Inc., which indicates that this firm will file a lawsuit contesting
the award of the contract. M.C. Magney Construction, Inc., was the second
low bid. Mike Parsons will be able to discuss this issue with the City
Council. The City Attorney has analyzed the situation and believes that the
city's financial exposure is very limited if we are sued and lose. At this time
we believe that the items noted in the letter from the attorney from M.C.
Magney Construction, Inc., do not reflect a significant deviation from the
bidding requirements. The city has the right to waive minor irregularities in
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
the bids if it is in the best interest of the project. We believe this is the case
with the MSC Concrete, Inc., bid. The second low bid from M.C. Magney
Construction, Inc., was about 10 percent higher than the bid from MSC
Concrete, Inc. This is a 10 percent difference after additional expenses have
been added to the MSC Concrete, Inc., bid for insulation work.
The bonds for this project will be adjusted down to reflect the fact that the
bids are lower than the January estimate. Please note that the bonds are not
sold yet. This should not be a problem, but there is always some risk when
you award a project before the bonds are sold as it is possible (but not very
likely) that no one would buy our bonds for this project.
It is recommended that the City Council approve the bid packages as outlined
in the attachment from Greystone Construction with the exception of bid
package #7 which is recommended to be rebid. The project will start within
the next few weeks and is scheduled to be completed in October.
Recommended Action
It is recommended that the City Council approve a motion awarding the
fifteen bid packages and adjustments as outlined in the Greystone
Construction Company's 4/3/97 report.
\council\liqbids.doc
Northbound Liquors,
Elk River, MN
BP ~' OESCRIPTION E~IDDER
I Co~crete and Masons/ MSC Concrete, Inc.
2 Steel Five Star Welding & FabricalJng Inc.
3 Sitework Julian fl. Johnson Construction Corp.
4 Mechanical Anderson Mechanical, Inc.
5 Elec'~ical Reliance Electric, Inc.
6 Roofing B & B She. el Metal & Roofir~j,
7 Windows and SioreNo~l Empirehouse, Inc.
8 Carpenlry and Speciallies Gopher Slate Contractors, Inc.
9 D(ywall, Framing and E1FS R & H Drywa]l, Inc.
10 Painting Skillmans Painting, Inc.
11 Capet / VCT M~iple Concept In(edom, lac.
12 Tile Grazzini I~mlhers & Company
13 O~.e~hea~ Doom and Doc~ Equip. D~or Service of SI. Cloud
14 Landscaping and Irrigation Helmin Landscapin(I
15 Eleval. or Schindler Elevalor Co~pocatioa
t6 Pmcast Concrete Melin Conorete Produc~s Company
3 Pond wo~k in highway d§ht of way. Bid Package #3 alternate
-- Elevator, holeless equip. ($3,750] savings, Bid Pa~aoe #15 alternate
-- Alternate eadhwork Iill Iocalion sa~ngs
-- Sen4.~e charge, eleclHcal utilily
- Mechan4cal permits
- insulation work, leunda[ion & crnu
Cily BASE BID BUDGET
st. Ooud 211,230 291,000
Rogems 79.500 106.000
Anna 94.800 79,710
Forest Lake 88,749 93,244
Zimmerman 74,971 62,
au~lo 55,782 52,448
Minneapolis 62,531 37,316
Rice 31,500 40,725
Pierz 49,790 58,502
S. SI.. Paul 13,275 13,500
Br~o~n P~m 9,162 13,344
Bloomington 7,880 4,820
st. ~oud 10,497 13,600
Sauk Rapids ~ 7,500 22,030
Mim~etonka 26,700 28,000
Lirm Lakes 24,545 19,826
500
(3,750)
(1,8oo)
6,000
1,330
10,000
BUDGET
STATUS Suggested
(UNDER) Action
Council
(79,770) Recommend Awa~ (1)~
(26,500) Recommend Award
15,090 Recammend Award
(4,495) Recommend Award
12,971 Recommend Award (3)
3.334 Recommend Award
25,215 Recommend Rebid (4)
(9,225) Recommend Awmd
(8,712) Recommend Award
(225) Recommend Award
(4,1 82) Recommend Award
3,060 Recommend Award
(3,103) Reoommend Award
(4,530) Re~mmend Award
(1,300) Recommera;I Award
4,719 RecommemJ Awmd
500 Recommend Awmd
(3,750) Recommend Award
(1,800) Pending, potential savings
6,000 Pending
1,330 Pending
10.000 Pending
Subtotal, Appaem)l Low (~ids. BP 1 - 16
Sublolal. Budget ~! 1097
To[al,
Nates
(1) wilhoul hlsulatio4~ wo~k
[2) wilh0ut perrnil cosl
(3) withoul ulitib/c~pany canneclien charge
(4) rebid for p,o[enlial cost savin<js
Bud, get S~-,-~us ($) equals under budgel
$ 870,692
$ 936,065
$ (65,373)
-7.0%
GREYSTONE CONSTRUCTION COMPANY