7.1.B. SR 10-16-2006
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Administration October 16, 2006
Item Description
Libra Pro'ect Bid Results/ Authorization to Award
Item Number
7.1.B.
Prepared by
Bill Maertz, Parks and Recreation Director
Reviewed by
Lori ohnson, Ci Administrator
Introduction
The bid results for the Library project came in higher than estimated (see below). The low bidder was
Merrimac Construction Company, 18651 Buchanan Street NW, East Bethel, MN.
Merrimac Construction Company previous projects include:
.
Minneapolis. Convention Center Expansion
New Brighton Public Safety Building
Timberwolves Practice Facility
Lakeville Police Station
University of Minnesota Williamson Hall Addition
International Airport: Lindberg Terminal Expansion
.
.
.
.
.
Discussion
I<I<E Architects has adjusted the overall project budget to reduce the construction budget deficit. This
puts the construction budget within 100/0 of the budgeted amount without compromising the quality and
efficiency of the building. There are options to further reduce this 100/0 however these options would
begin to lessen the overall quality and feel of the project. I<KE Architects will be present on October 16
to expand on these options if the City Council wishes to go in that direction.
I<I<E Architects believe that with 15 bids the City of Elk River has received a very competitive bid.
Financial Impact
Construction budgeted
The low bid was
Differen tial
$3,367,444
$3.937.155
$ 569,711
Proposed changes to budget
Reduce contingency to 60/0
Reduce FFE budget
Accept ECONAR donation
New Differential
$104,000
$78,000
$50.000* *(subject to Library Board review and Council approval)
$337,711
$337,711 is 100/0 over original construction budget.
C:\Documents and Settings\tallard\Local Settings \ Temporary Internet Files\OLKF\Memo 7 B 2 Library (3).doc
Attachments
· Memo from Jennifer Anderson Tutde of I<lZE Architects
· Bid tabulation
· Project budget worksheet
Action Requested
Council is requested to award contract for Library constructior to Merrimac Construction Company,
18651 Buchanan St. East Bethel, MN at a cost of $3,937,155.
Alternative Request: Direct I<lZE Architects to work with Merrimac Contracting to engineer 100/0 of the
project cost out through change orders before awarding contr2 ct.
Council Action
Motion by _
Second by _
Vote
Follow Up
C:\Documents and Settings\tallard\Local Settin s\ Temporary Internet Files\OLKF\Memo 7 B 2 Library (3).doc
October 12, 2006
Bill Maertz
City of Elk River
13065 Orono Parkway
Elk River, Minnesota 55330
Subject:
Elk River Library
0606-1159-21
Dear Bill:
The purpose of this memo is to summarize the approach we discussed in dealing with the
project budget having received bids for the Elk River Library. As you are aware bids came in higher than
anticipated, yet after adjusting dollars with in the current project budget, we are with in 10% of our
Estimated Construction Cost. By making these adjustments we are able to maintain the high level of
quality that you as the owner desire and your community expects with in the 10% range.
The adjustments, as seen on the attached Project Summary Worksheet, are as follows:
. We have adjusted the Contingency from 10% to 6%, still an amount we feel very comfortable
with for a new facility, this puts 104,000 back into the building.
. We have reduced the FFE budget from $164,000 to $86,000. This will require us to reselect on
some of the furnishings within the revised budget, or look for additional furnishings to reuse, but
still leaves enough to provide new quality furnishings in areas of focus.
. We have received a letter from KFI, Mechanical Engineers for your project, and they have
received and approved the product from Econar. The only concern they have is there is no
experience or history with this new product for Econar. The conditions for acceptance as
outlined by Econar would also need to be approved. The Architectural and Engineering would
be reimbursed for any necessary redesign should the submitted product change. The value of
this donation, as estimated in previous e-mailsis$50.000.This amount has been added back
into the construction budget.
There are several ways in which we could further reduce the differential. We can within the law engage
in a contract with Merrimac, the apparent low bidder, and work with them to Value engineer up to 10% of
the construction cost out. This would put those items that represent the high level and expectation of
quality at risk. A detailed, in depth list can be developed if this is the direction you or council wishes to
go.
Alternates could be accepted, the total of these alternates is minor, and the value of them in the project
adds greatly.
We were very pleased with the interest the project has gotten as represented with the 15 General
contractor who did bid. People want to be apart of this exciting project. The project was bid with
Prevailing wage requirements, which we believe adds a value to the local economy as well.
It is difficult to determine exactly where the estimated numbers varied from actual bids. After reviewing
the MEANS Construction Cost Index, which was just issued this month for Third quarter 05 - third
quarter 06, we see that escalation has increased. Our estimate reserved 3% in escalation, when now we
can see overall there has been a 6.9% increase. In specific areas, for example site work escalations are
reported at 13%, while masonry is reported at 8% increase. These numbers in hindsight are not a tool,
but confirmation that an estimate is that.
I will be present Monday to discuss these items for you and council.
Please do not hesitate to call at any time with any other questions or comments.
Jennifer Anderson-Tuttle, Associate
KKE Architects, Inc.
ituttle@kke.com
612-236-3786 cell
Copy to:
Mohammed Lawal, AlA
DRAFT PROJECT BUDGET WORKSHEET- draft
ELK RIVER LIBRARY
PROJECT SUMMARY
FUNDING BUDGET BUDGET 09-15-06 BUDGET 10-10-06
1 FUNDING SOURCE
1.01 Bonding 4,300,000 4,300,000 4,300,000 4,300,000
1.02 Library Fund to be determined to be determined to be determined
1.03 Capital outlay
1.04 Sherburn County Grant to be determined to be determined to be determined to be determined
1.05 Revenues from Property Sales to be determined to be determined to be determined 235,000
TOTAL 4,300,000 4,300,000 4,535,000
COSTS 16,00051 LEED 16,00051 LEED 16,OOOsl LEED
2 SITE DEVELOPMENT COSTS
2.01 Site purchase
2.02 Conditional Use/Zoning review fee
2.03 Plan review fees/Bldg Permit
2.04 SACIWAC charges
2.05 peA fees
2.06 Site demolition/prep
SUBTOTAL
3 CONSULT SERVICES/MiSe COST ITEMS
3.01 Architectural
3.09 Interior Design
3.02 Structural Engineering
3.03 Mechanical Engineering
3.06 LEED Documentation Consultant
3.07 Energy Modeling / ME LEED Doc.
3.08 Landscape Arch
3.04 Electrical Engineering
3.17 Independent Cost estimator
3.06 Civil Engineering in LA
3.07 subtotal 459,000 459,000
3.05 Site Survey 6,050 6,050 Construction Lump sur 3937155 3937155
3.10 Library Program Consult 0 0 Construction budgeted 3367444 y, hi 3704188
3.11 Technology Consult 5,000 5,000 Differential 569,711 232,967
3.12 HVAC Commissioning 14,000 14,000 Proposed Changes to budget
3.13 Environm/PCA consult 0 0 Reduce Contingency to 6% 104,000
3.14 Traffic Study 0 0 Except Econar donation 50,000
3.15 Soil testing-Geotechnical .3,400 3,400 Reduce FFE budget to 86,000 78,000
3.16 Construction Testing 6,500 6,500 232,000
3.1 B Owners insurance 0 0
3.19 Legal fees 0 0 Construction Lump sur 3937155
3.20 Moving costs 2,000 2,000 Proposed Changes to bu. 232,000
3.21 Signage 18,000 base bid Balances Cost to w/in 1C 3705155
3.22 Promotional/Informational Materials 3,000 3,000
3.23 State Plan Review 0 0
3.24 Renderings/Models 3,000 3,000
3.25 Consult Reimbursables 50,000 50,000
SUBTOTAL 569,950 551,950 551,950
4 FFEITECHNOLOGY
4.01 FFE 240,000 76,000 in basI 164,000 reduced 86000
4.02 Technology GRRL GRRL
4.03 Communication / Security 18,000 base bid
4.04
SUBTOTAL 258,000 164,000 86,000
5 CONSTRUCTION budgeted amount
5.01 Construction-bldg and site 3,255,444 3,367,444
SUBTOTAL 3,255,444 3,367,444 3,937,155
6 PROJECT CONTINGEN 10% 260,000 260,000 6% 125000
SUBTOTAL 260,000 260,000
TOTAL 4,343,394 4,343,394 4,700,105
OVERALL BUDGET
FUNDING 4,300,000 4,300,000 I 4,300,000 4,535,000
COSTS 4,343,394 4,343,394 4,700,105 4,700,105
DIFF -43,394 -43,394 -400,105 -165,105
w/in 9,3% of overall w/in 4% of overall
KKE Architects
Library Attach
C~
ON
:aai
::;,LO
....~
U;~
Cco
00
Uco
_0
~w
Q)::'::
g::.::
Cl
z
o
~
<(
.;.J
=>
CO
~
o
CO
>-
c:::
<(
z
:2
....J
W
c:::
a..
:>;
III
~
.ll:
..
III
a.
o
c
e
o
."
<0
o
>M
D::....
<C-
D::1Il <0
tc:I: 0
::::i ~z~
D::(3:50
w....:....
>GlGl"
~.~.~ ~
llI::D::D::.s
...I ::!h!!: u
wwwo
'0
E
ci.
o
o
N
@)
'0
" 0 0 0 8 8 8 0 0 8 0 0 8 8 0
~ 0
I;; 0 0 0 0 0 0 0 0 0
'" c g 0 g g 0 <Xi g g g 0 g 0 0 0 0
....; .- ..c oo fit oo oo oo oo 0 oo
<( E.c <0_ "< "'- 0 '" 0 0 <0_ "'- '" "< "< 0 "'.
~ 2 ;;; E N E N N E E E N E
<5 ~ ~ ~ ~ ~ ~ ~ ~
c
:::;
..
I;;
>
'"
c. 0 0 8 8 0 0 0 0 0 8 0 0 8 0
'0 0 0 0 0 0 8 0 0 0 0 0
.... " g ~ 0 g 0 .,; 0 ~ g g g <Ii g ~ g
:!:i .~ 0 0 :8 8 M_
'" '" ~ 0 '" "'- 0 .... ....
<t- ~ N a; N ,.: 0 N M N 0' N
,!::: a;
OJ ~ E ~ E E E E .,. E E E E E ;;; E
.J::
C.
..
<t
.. 0 0 8 0 0 0 0 8 8 8 0 8 8 0 8
'"
'" 0 0 0 0 0 0 0 0
<O~ g 0 0 0 ~ <Xi ~ g ~ ai 0 0 18 0 <Xi
:=i Q) '" 15 0 .... oo 0 '" 0 oo
<to; oo N oo .... 0 '" oo N ... N ...
; ; ; on ; on on ~ ; M on ; on ; on
Q; ~ ~ ~ ~ ~ ~ ~
0
E
0..
0_
ma:~
II') ~=m
:::5~
<tE'"
E "
00
u
Ol N
_c
~~:E
<e;~.mg
~~ro~
~ .~~ & 8 0 8 0 8 8 8 8 8 0 0 8 8 8
"'" '" 0 0 I 0 0
::;;0'5 g 0 0 0 0 0 ~ 0 g ~ g 0 0 N
> - 8 8 8 8 '" 0 8 0 ~
'" <0 0 0 <0 0
.,; 0' .,; 0' ,.: a; a; .,; 0' 0' .,; ,.: on ,.:
~ E ~ E ~ ~ ~ ~ ;;; E ~ ~ ~ ~
0
c
N 8 8 8 0 8 8 8 8
'0 8 8 8 0 8 0 8 8
... " g 0 ~ ~ ~ 0 0 g 0 N g .,; 0 ~ 0
;!::1.~ 8 :;;: 0 g ... 0 8 8
N <0 0 0 ...
<t- o ~ on ~
,!::: ,.: ,.: a; ,.: ,.: ,.: N a; a; N ,.:
N ~ ;;; ;;; ;;; ~ ~ ;;; N N N N ~
C. .,. ~ ~ .,. ~ .,.
?;
I-
'0 8 0 0 8
" 8 8 8 8 8 8: 8 8 8 8 0
'" 0 0 0
M=a.. g 0 ~ ~ g N ~ ~ 0 .... g ~ ....: g ....:
;i~~ .... '" 0 '" '" '"
'" ~ "'- oo N ,.., .... N oo N
~ ~ or; on ,.: ~ .,; .,; 0' a; N ;
'" N M
c ~ ~ .,. .,. E E ~ ~ ~ ;;; ~ .,.
'"
c.
Ol 8 8 8 8 8 8
c 8 8 8 8 8
Ng g 8 8 ~ 8 ai ~ ~ .,; ~ g ~ ~ ~
..a: ,.., 0 ,..,
N 0 0 0 N 0 <0
<tu N .,. .,. :;l .,. N M on N on N ",- ,.: on
> ;;; ;;; ~ oo ;;; ;;; ;;; ;;; N ~
C. .,. .,. .,.
'" 8 8 8 8 8 8 8 ~ 8 8 8 8 8 8 8
c
- '" ~ ~ g ~ ~ ~ ~ 18 ~ N ~ ~ ,.; ~ M
..;-' 10 :s '"
<( E ... ,.., oo
" a; ~ M 0' ,.: ~ .,; N ,.: on 0' on on ,.: ,.:
I- ;;; N N ;;; ;;; ;;; ;;; ;;; ;;; N .,. N ;;; ;;;
.,. .,. .,. .,.
0 8 8 8 8 8 8 8 8 8 8 8 ~ 8 8 8
iii
w ~ ~ ~ 8 ~ .,; ~ ~ ~ ~ ~ '" ~ ~ ~
en oo '"
0( 0
tIl sf a; N on ~ ,.: g 0' ;t .,; on ~ 0' 0' or;
-' M '" '" ~ '" ;:l; l!l ,.., ;g !!l ~
~ N '" 0 '" '"
0 <t <t M <t <t M <t <t <t M M <t <t <t <t
I- .,. .,. .,. .,.
&~ N
II -
0(
"
iO
>- 0
c: c: ci
'" ..5 ci ()
a. ,Q c: '" ~ ()
E ci U 0 c: ~ c:
0 () 2 0 ..5 0 0 c: 0
() c: U 0 U c: u 0 0 U
,Q c: U; 2 en ..5 '" ~ U
c: c: U 0 c: 5 2 x ..5 2
a: 0 0 U 0 U; u c: U; Ql 'E 2 U;
w (/) U U c: 2 () c: 0 c: ~ 0 U; iii c:
0 Q; 0 2
0 2 U U; ..>< 0 2 U 0 '0 () c: 5 0
iii J2 2 c: U; 0 () U; 2 () Ql 0 U ()
'5 U; U; 2 0 c: 0 'C c: U; c: U; 0; () ~ E
CD c: c: U; () 0 () ::J 0 :e Ql
0 0 c: c: () Q; () c: c: iii c: 'E '"
Ql () () u.: 0 '" 0 0 ~
,~ 0 0 u (/) ..>< () :E () Q; 0 5
0; (/) c: () (/) '" Ql (/) U U; ()
~ ~ >- c: E e' '" '" t 'C ~ ~ >- UJ t')
> U Ql "E ...J CD Ql c: a. ~
0 'C: '" e' 0 c: .0 ::J 06 0 ::::l ~
c: ~ 0 ..>< (Il Ql en UJ 0 t') t') :.:
~ 0 '" ...J
..5 LJ.. :E ..., :E t') ..., ...J
lri <ri r-: a:i oi c:i - N o? -i lri <ri
.,..: N o? -i - - - - - - -
Q
.!:
.;
<3
J!l
E
~
<t
W
'"
'"
"
C>
..
0..