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4.5. SR 08-18-1997City of Item # 6.5. iver TO: FROM: DATE: MEMORANDUM Mayor & City Council Pat Klaers, City Admin~ August 18, 1997 SUBJECT: Liquor Store Cooler Shelving Bids The construction manager for the liquor store project, Mike Parsons of Greystone Construction Company, went out for quotes for the cooler shelving work at the new store. Seven proposals went out and two very good bids were received. The low quote is from Total Refrigeration Systems, Inc. in the amount of $17,044.00. This quote is below the budget estimate and staff concurs with the recommendation to approve this quote. During the construction of the new liquor store and inspection of this construction, a concern has been raised regarding the specified cooler. The new cooler has met one of our objectives to increase the number of doors and display space, but as specified did not meet another one of our objectives regarding total storage. A majority of our sales is in beer and we need to keep all of our product cool so that during peak periods we are not selling warm beer. To address this issue, we have authorized an expansion of the originally specified cooler space to include more square footage for cold storage. The attached drawing from Mike Parsons should help explain the situation. The cooler that was approved to St. Paul Refrigeration was in the amount of $51,800.00, compared to the budget estimate of $75,000.00. The cost of the expanded cooler will get us closer to the original budget estimate, but the total of the cooler and shelving should not exceed the estimate in the furniture, fixtures, and equipment budget. The expanded cooler will not disrupt the timing for the opening of the new liquor store. We have had a loose opening date of sometime around mid October and it still looks like we'll be able to open in October, but it may be closer to the end of the month. Recommendation It is recommended that the City Council approve the motion to award the cooler shelving work to Total Refrigeration Systems, Inc. in the amount of $17,044.00 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 GREYSTONE CONSTRUCTION COMPANY 1221 East Fourth Avenue, Suite 110, Shakopee, MN 55379 612 496-2227 445-4191 fax Date: To: From: Re: August 6, 1997 Pat Klaers, City of Elk River Mike Parsons, Construction Manager Northbound Liquor Store, Elk River, MN Recommendation -- award of BOF cooler shelving work BOF cooler shelving work Bids were requested from seven companies. The bid scope of work was prepared with input from the City of Elk staff and Edwards & Associates. Work involved includes: · gravity shelving and accessories for twenty - four (24) 26" x 72" cooler doors · freight, sales tax and installation for same Bid results · The budget for BOF cooler shelving work is $ 25,000 · Two bids were received: St Cloud Refrigeration $18,180 and Total Refrigeration Systems, Inc. $17,044. Five finns declined to bid. · The low bidder is Total Refrigeration Systems, Inc., with a bid of $17,044. Recommended Action It is recommended that the City Council approve a motion to award the cooler shelving work Refrigeration Systems, Inc., South St Paul, Minnesota to Total 8-11-1gg7 2:07PM FROM GREYSTONE CONSTRUCT 612 4&5 &191 P. 2 CONSTRUCTION cOMPANY FACSIMILE*TRANSMISSION SHEET COMPANY/LOCATION: 'rMV' FAX NUMBER: ' A'I-FENTION: 'r~N' 1~oo¢$P._.. FROM: DATE: o~/,, / ~-~ TOTAL PAGES: (includes cover sheet) MESSAGE. AND/OR spECIAL INSTRUCTIONS: N.I~. NEW NoB. ~,,c~,,.,o,.~ ~ ~."*~,.*,~^XS 33';c22'= lf..(oSF ~,~'3( ~,o' = 39.0 s~ ~ ,,~ OISPLRqt' Dc)c:~,,,S 122:! East 4th Avenue, Suite 110 Shakopee,MN 55379 Equal Opportunity Telephone: 612.-496-2227' Employer/Contractor' Fax "612.4~5-4191