8.1. SR 09-19-2011REQUEST FOR ACTION
TO ITEM NUMBER
Ma or and Ci Council 8.1
AGENDA SECTION MEETING DATE PREPARED BY
Administration September 19, 2011 Tim Simon, Finance Director on
behalf of the Public Works Committee
ITEM DESCRIPTION REVIEWED B~/
Public Works Facility Phase I Project Items Robert Thistle, Interim City
Administrator
REVIEWED BY^
lJl
ACTION REQUESTED
1. Council is asked to approve the bids for the Public Works Facility-Bid Package 1
2. Council is asked to re-assign the contracts to RJM Construction in accordance with our
Construction Manager at-risk agreement.
3. Council is asked to approve a transfer from the Municipal Liquor Fund to the Government
Building Fund
BACKGROUND/DISCUSSION
C-ver the past several months, the Public Works Committee has been working with 292 Design Group
and RJM Construction on the preconstruction process. On July 18, 2011, the City Council authorized the
advertisement of Phase I bids. The project is broken into two phases: site preparation and construction.
Brian Recker from RJM Construction will be in attendance to present the results of the bids that were
received on September 8, 2011.
The original design layout which was reviewed in July included providing access for the compost area off
of Triangle Road. This option resulted in the paving of an access road and the compost area with Phase
I. Revisions to the site layout allowed for the compost area to be located more near its current location
just west of the baseball field. While this change reduced the overall pavement area and amount of curb
required for the entire project (Phase I and II), it resulted in the need to complete the paving of the
materials yard as part of Phase I instead of waiting until Phase II. As a result of this change, the paving
costs for Phase I are higher than the estimate provided in July. RJM has reviewed this modification and is
comfortable with the overall budget number of site paving being accurate.
Updated timeline for Phase I:
Council Approval for Advertisement to Bid
Receive Bids for Phase I
City Council Award of Phase I Contractors
Phase I Construction
July 18, 2011
Sept 8, 2011
Sept 19, 2011
Sept 20, 2011 -Nov 30, 2011
N:\Public Bodies\City Council\Council RCA\Agenda Packet\09-19-2011\phaselawardofbids[1].docx
FINANCIAL IMPACT
Phase I -site improvements and some of the soft costs (architects fees, construction manager, survey
etc.) will be funded out of the Government Building Fund via a transfer from the Municipal Liquor Fund.
The amount that has been planned and built into the Liquor Fund forecasts is $2.75 million. The
remaining project costs, less the amount from the liquor store fund transfer, will be funded through G.O.
improvement plan bonds. The bonds will be issued in January or February of 2012, when some consider
the optimal time for new bond issuances. By planning and funding Phase I out of this transfer from the
liquor store, over the life of a 25 year bond, less internal rate of return on investments, the City would
save approximately $1 million in interest expense.
Prior to Council authorization to initiate Phase II (building construction), RJM will be working with the
Public Works Committee and providing a 95% design development budget for the complete project.
Currently, the staff, RJM, and 292 Design Group are in design development stages and working through
value engineering decisions which will lead up to the 95% budget in December 2011.
The following chart is the cash flow forecast of the Liquor Fund 2011-2016 with the transfer that
has been anticipated.
ATTACHMENTS
• RJM recommendations for award of contracts -Bid package 1
• Transfer resolution from Municipal Liquor Fund to the Government Building Fund
• Capital improvement plan 2011-2015 (page 59)
A-Ctloll Morton b~ Second h}• Vote
Follow Up
N:APublic Bodies\City Council\Council KCA\;~genda Packet\09-19-?011\Phasclawardofbids[1].docs
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September 1 S, 2011
CONSTRUCTION
Mr. Tim Simon
City of Elk River
13065 Orono Parkway
Elk River, MN SS330
Re: Elk River Public Works Facility -Bid Package 1
Recommendations for Award of Contracts
On September 8`h, 2011 bids were received for the Elk River Public Works Facility -Bid
Package 1. Bids were received for five (S) bid categories. A summary of bids received is
enclosed. Based on the most recent total project budget, bids for Phase I were expected
to total $910,000. The actual bids received for Phase I totaled $895,664, under budget by
$14,336.
Since receipt of these bids RJM Construction has conducted a scope review with the
apparent low bidder for each bid category to ensure that the bids are accurate and that the
contractor is qualified for the work. Based on the results of these reviews we are
presenting the following recommendations:
Bid Cate~orv 2A -Site Demolition and GradinE
A total of five (S) bids were received for this bid category. Along with the base bid
amount provided, the contractors were also required to provide unit prices for importing
of three (3) different types of granular and soil material. They also were required to
provide a unit price for additional removal of buried concrete. These unit prices were
provided on a per cubic yard basis. Based on review of the bid and scope with the low
contractor we recommend the award for this bid category be made as follows:
Fehn Companies Contract Amount: $ 241,343
Unit Price #1 $ 10.00
Unit Price #2 $ 10.00
Unit Price #3 $ 1 S.SO
Unit Price #4 $ 18.50
Bid Cateaory 2B -Asphalt Pavin€~
A total of five (S) bids were received for this bid category. Along with the base bid
amount provided, the contractors were also required to provide unit prices for importing
class V pavement base material. This unit price was provided on a per cubic yard basis.
Based on review of the bid and scope with the low contractor we recommend the award
for this bid category be made as follows:
Midwest Asphalt Corporation Contract Amount: $ 232,225
Unit Price # 1 $ 32.25
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CONSTRUCTION Bid Cateeorv 2C -Site Concrete
Only one bid was received for this bid category. It was determined that due to the very
small quantity of curb work for Phase I, that many companies were resistant to pursue the
process of submitting a bid bond and a subsequent performance and payment bond,
required with a public bid award, and thus did not submit a bid. Based on the receipt of
only one bid we recommend that the City Council .reject this bid of this bid category.
Since last Thursday 1tJM Construction has contacted several site concrete contractors to
solicited quotes, in lieu of public bids, to perform this work. A total of five (5) quotes
were received. Based on review of the quotes and scope with the low contractor we
recommend the award for this quote category be made as follows:
CR Fischer Contract Amount: $ 10,850
Bid CateEOry 6A -Salt Storage Relocation /Foundations
A total of two (Z) bids were received for this bid category. The low bid received was
substantially lower than the next bidder. In our review of the bids with the two bidders
we determined that the difference. in the .bids was in the cast estimated for the relocation
of the existing storage shed. We have learned that the low bidder has extensive
experience with this work and are confident that their numbers are accurate for the work
specified. Based on review of the bid and scope with the low contractor we recommend
the award for this bid category be made as follows:
Greystone Construction Contract Amount: $ 234,990
As noted above, this bid category includes the removal and relocation of the City's
existing salt shed structure. The manufacturer for this structure is a company named
Cover-All, who has gone out of business. It has been brought to our attention that there
is a possibility that the existing structure may not have been designed properly for the
current building codes. We are in the process of engaging a structural engineer who can
evaluate if this is the case. Should it be determined that the existing structure is deficient
there are two options to pursue. The first would be to design and install supplemental
support to the existing structure. The second option would be to provide and install a new
shed struchire for an estimated amount of $40,000, after slight redesign of the new
foundations. A recommendation will be made to the City Council once this information
is received for approval of one of these two options.
Bid Cate~oryllA -Fuel Island
A total of three (3) bids were received for this bid category. As part of the bid, the
~ ~~ ='"~"'~ contractors were required to provide a bid alternate cost to add a steel overhead canopy at
she fuel island. Based on review of the bid and scope with the low contractor we
recommend the award forthsbid category be made as follows. Should the City Council
decide. to approve the fuel island canopy, the amount of the alternate cost would be added
to the contract amount stated below:
~~-_~
Pump and Meter Service, Inc. Contract Amount: $ 176,255.92
Fuel Canopy Alternate: $ 22,274.93
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RESOLUTION I I -
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING A TRANSFER FROM THE MUNICIPAL
LIQUOR FUND TO THE GOVERNMENT BUILDING FUND
WHEREAS, The City Council approved the awarding of bids for Phase I of the public
works facility project on September 19, 2011, and,
WHEREAS, The City Council has reviewed the request and determined it to be a sound
financial practice; and,
WHEREAS, It has been determined that an amount not to exceed $2,750,000 will be
transferred out of the Municipal Liquor Fund to provide funding for the public work facility
project;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Ciry of Elk
River makes the following transfer of funds from the Municipal Liquor Store
Fund:
2011 Government Building Fund $2,750,000
Passed and adopted this 19`'' day of September 2011.
John J Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
N:\Public Bodies\City Council\Finance\Tim\2011 \PWfacilitytransfer.doc
Capital Improvement Plan
City of Elk River, Minnesota
Project # ST-09
Project tame Public R'orks Complex
T}~pe Building
Useful Life 50 years
Categor~~ Buildings
': Description
?.Public Works Expansion Project
Justification
Department Streets
Contact Street Supt.
Priorit}~ n'a
2011 zh~-u 2015
K ~~ti~
~- -- ~ -'
'The City Council has approved a master plan study that will layout the future expansion of our streets and parks
,'department.
Expenditures 2011 2012 2013 2014 2015 Total
Planning/Design 600,000 600,000
Buildings 2,150,000 7,250,000 9,400,000
Total 2,75D,000 7,250,000 10,000,000
Funding Sources 2011 2012 2013 2014 2015 Total
Capital Improvement Bonds 7,250,000 7,250,000
Liquor Fund 2,750,000 2,750,000
Total 2,750,000 7,250,000 10,000,000
Page 59