7.5.
CC Regular Session
- Meeting Date:
- 04/14/2015
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title:
Adopt Resolution #15-04-079 Accepting Bids and Authorizing Award of Contract for Improvement Project #14-30; Fire Station #2
Purpose/Background:
Purpose:
The purpose of this case is to accept bids and award a contract for Improvement Project #14-30, construction of a new Fire Station #2.
Background (case):
This case was last discussed by the City Council in January 2015; at which time, the project manager (BKV Group), was directed to finalize design/bid documents, and let bid.
Background
For details, see attached. In summary, the proposed project calls for the construction of a 12,000 square foot, one-story, new Fire Station #2 located on a 2.34 acres site off Helium Street and Alpine Drive. The proposed new Fire Station #2 would primarily provide a long-term base of operation for the City's Fire Department in the eastern half of Ramsey. Aside from the primary use, this project will include space for both a small satellite police department location and satellite Allina Ambulance location.
The purpose of this case is to accept bids and award a contract for Improvement Project #14-30, construction of a new Fire Station #2.
Background (case):
This case was last discussed by the City Council in January 2015; at which time, the project manager (BKV Group), was directed to finalize design/bid documents, and let bid.
Background
For details, see attached. In summary, the proposed project calls for the construction of a 12,000 square foot, one-story, new Fire Station #2 located on a 2.34 acres site off Helium Street and Alpine Drive. The proposed new Fire Station #2 would primarily provide a long-term base of operation for the City's Fire Department in the eastern half of Ramsey. Aside from the primary use, this project will include space for both a small satellite police department location and satellite Allina Ambulance location.
Notification:
NA
Observations/Alternatives:
Observations:
Attached to this case is a memo from the project coordinator (BKV Group). This memo outlines an overview of the bid process, bid tabulation, comments, and a recommendation from BKV Group. In summary, the lowest responsible bidder was $3,135,000; Brennan Construction of Mankato, Minnesota (http://bcofmn.com/construction/projects). BKV Group's estimated construction costs were $3,390,000. The lowest bidder came in $255,000 below the BKV Group's estimation; and is believed to be competitive and fair for current market conditions.
Alternatives:
#1 - Award contract (staff recommendation)
#2 - Re-bid project.
Attached to this case is a memo from the project coordinator (BKV Group). This memo outlines an overview of the bid process, bid tabulation, comments, and a recommendation from BKV Group. In summary, the lowest responsible bidder was $3,135,000; Brennan Construction of Mankato, Minnesota (http://bcofmn.com/construction/projects). BKV Group's estimated construction costs were $3,390,000. The lowest bidder came in $255,000 below the BKV Group's estimation; and is believed to be competitive and fair for current market conditions.
Alternatives:
#1 - Award contract (staff recommendation)
(+) long-term needs of Fire Department addressed; enhanced police and ambulance coverage.
(+) five bids were received, and BKV Group believes the lowest responsible bid is fair/ competitive/ market.
(-) this is a significant investment for the City of Ramsey; and will require debt services payments in the amount of $293,000 annually for 20 years (roughly).
(+) five bids were received, and BKV Group believes the lowest responsible bid is fair/ competitive/ market.
(-) this is a significant investment for the City of Ramsey; and will require debt services payments in the amount of $293,000 annually for 20 years (roughly).
#2 - Re-bid project.
(+) minor chance bids would come back significantly lower.
(-) more than likely, bids would not come back significantly lower.
(-) additional professional service dollars incurred for a third bidding process (about $4,000-$8,000 depending on variables).
(-) project completion would be pushed back resulting in negative operation effects to the Fire Department (temporally) and potentially result in termination of an existing purchase agreement for the former municipal center site. If the current PA was terminated, staff would re-list.
(-) more than likely, bids would not come back significantly lower.
(-) additional professional service dollars incurred for a third bidding process (about $4,000-$8,000 depending on variables).
(-) project completion would be pushed back resulting in negative operation effects to the Fire Department (temporally) and potentially result in termination of an existing purchase agreement for the former municipal center site. If the current PA was terminated, staff would re-list.
#3 - Cancel/ table project
(+) City would save dollars on remaining costs associated with completing this project.
(-) Not capitalizing on previous work completed for this project--now sunk costs (BKV Group professional services and staff time). NOTE: generally, plans are good for five years.
(-) Not solving the long-term needs of the City's Fire Department; and, police and ambulance coverage not enhanced.
(-) Not capitalizing on previous work completed for this project--now sunk costs (BKV Group professional services and staff time). NOTE: generally, plans are good for five years.
(-) Not solving the long-term needs of the City's Fire Department; and, police and ambulance coverage not enhanced.
Funding Source:
Funding Source:
Capital Improvement Plan (CIP) Bond. Attached to this case is a detailed project budget and a bond run provided by Ehlers, the City's financial consultant.
In the short term, the City will utilize our Facilities Fund (about $300K balance) for interim payments to the architect and interim bond payments. Permanent project financing will come from a $3.97M CIP bond (estimated). Annual payments for this bond are roughly $293K. The City will utilize the general levy to pay for bond payments, beginning in 2016.
Capital Improvement Plan (CIP) Bond. Attached to this case is a detailed project budget and a bond run provided by Ehlers, the City's financial consultant.
In the short term, the City will utilize our Facilities Fund (about $300K balance) for interim payments to the architect and interim bond payments. Permanent project financing will come from a $3.97M CIP bond (estimated). Annual payments for this bond are roughly $293K. The City will utilize the general levy to pay for bond payments, beginning in 2016.
NOTE 1: at the January 13 City Council meeting, staff was asked to update the City's proposed bond solution. Specifically, staff was asked to remove capitalized interest from the proposed bond package. This request was implemented by staff. The attached project bond run, project budget, and content in this case have all been updated. This item is addressed in the "Council Questions" document attached to this case as well.
NOTE 2: The current CIP bond as noted, is $3.97M. This amount may be reduced prior to the bond sale adoption on May 26, 2015 due to the lower than estimated bid.
NOTE 3: CIP bonding is regulated by the State of Minnesota. Per Statute, a public hearing process is required to allow the public an opportunity to counter petition the proposed bonding/ project. The public hearing was held on March 10, 2015 with any counter petition to the project needing to be filed by April 9, 2015. No counter petition or comments were received.
NOTE 2: The current CIP bond as noted, is $3.97M. This amount may be reduced prior to the bond sale adoption on May 26, 2015 due to the lower than estimated bid.
NOTE 3: CIP bonding is regulated by the State of Minnesota. Per Statute, a public hearing process is required to allow the public an opportunity to counter petition the proposed bonding/ project. The public hearing was held on March 10, 2015 with any counter petition to the project needing to be filed by April 9, 2015. No counter petition or comments were received.
Recommendation:
See alternatives.
Action:
Motion to:
Adoption Resolution #15-04-079 Accepting Bids and a Awarding Contract for Improvement Project #14-30; Fire Station #2.
-and-
Approve the attached AIA A101 Standard Form of Agreement Between Owner and Contractor; subject to amendments by the City Attorney
-and-
Approve the attached Purchasing Agent Agreement; subject to amendments by the City Attorney
Attachments
- BKV Group MEMO
- RESOLUTION 15 04 079 ACCEPTING BIDS AND AUTHORIZING AWARD OF CONTRACT FOR IMPROVEMENT PROJECT 14 30 FIRE STATION 2
- Purchasing Agent Agreement
- Agrmt betw Owner and Contractor
- Background Information
- Council Questions
- Comparison (Fire 1 and 2)
- Final Design
- Project Budget
- Bond Run January 21 2015
- Images
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Diana Lund | Diana Lund | 04/08/2015 10:16 AM |
| Brian Hagen | Tim Gladhill | 04/08/2015 04:23 PM |
| Kurt Ulrich | Kurt Ulrich | 04/09/2015 11:40 AM |
- Form Started By:
- Patrick Brama
- Started On:
- 03/16/2015 08:07 AM
- Final Approval Date:
- 04/09/2015