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7.3.
CC Regular Session
Meeting Date:
11/22/2016
Submitted For:
Patrick Brama
By:
Patrick Brama, Administrative Services

Information

Title:

Award Contract for Demolition of Former Municipal Center Campus

Purpose/Background:

PURPOSE
Award contract for demolition and site clean up of former municipal center campus.


BACKGROUND (Former Municipal Center Campus)
The City’s Economic Development Authority (EDA) and Council went through an in-depth public engagement process in 2013 and 2014 to consider the future development of the “Old Municipal Center Site.” The City considered two general development scenarios for the 20.5 acre site: (A) data center development and (B) residential development.
 
Until 2015, the Old Municipal Center (OMC) Site was zoned Public/Quasi Public. In June 2014, the City Council decided to move forward with an amendment to allow for single-family residential only land use on the OMC site (and not allow a data center).  In June 2015, the City Council closed on a purchase agreement to sell the former municipal center site to a residential developer.


BACKGROUND (Demolition)
Upon rezoning and selling the former municipal center site in 2015, the City Council provided general direction to staff (and direction via a purchase agreement) to demolish and clean up the site.  Said demolition and site clean up includes two phases/ contracts (1) removal of hazardous materials/ regulated waste, and (2) demolition, site clean up, and site restoration. 

The purpose of this case is to consider a contract for phase 2.  The City awarded a contract to J&J Contracting for phase 1 in June ($10,400).  That work was completed in September.


BACKGROUND/ PROCESS (Case)
This case is a continuation of a case the Council reviewed on:
 
02/23/2016: Council approved the attached work order from Hakanson Anderson Engineering to manage/ lead the process of putting together plans/ specs/ and administering the bidding process for demolition of the former municipal center campus.  Attached to this case is the staff MEMO from 02/23--which includes detailed background information.

06/14/2016: Council approve a contract with J&J Contracting to complete phase 1 of the demolition process ($10,400).

08/23/2016: Council adopt plans & specifications and authorizes advertisement for bids for phase 2 of the demolition project.

11/22/2016:** Council approves contract for phase 2 of the demolition project ($119,500).

06/01/2017: Phase 2 of demolition completed.  Substaintial completion is 04/14/2017.

Observations/Alternatives:

STAFF NOTES
(1) Contingency Budget: staff is requesting a $15,000 contingency budget be approved as part of this case.  Like any construction project, change orders can/ do occur.  In the case of a demolition project, especially of this size, the risk of change orders should be a known risk for the property owner (City of Ramsey).  Why is there a risk?-- it's challenging to know exactly how the asbestos treatment required for this project will unfold, if any unknown materials/ issues will arise when moving soils, if anything was missed in our specifications book, if there are discrepancies in what our as-built plans are versus what is in the ground, etc. etc.  Staff does not anticipate any change orders--and will do our best to eliminate all, and challenge any that come forward.  However, if change order request comes up during demolition--that is reasonable/ justifiable--we don't want to delay this project to go back to Council for a separate approval.

(2) Neighborhood Notification: staff will sending out the attached notification letter to the surrounding neighborhood RE this demolition project. Please note--this letter is in draft format.  If the Council would like to see any changes, please advise.

(3) Bid Tabulation: attached are the bid results from 11/14/2016.

(4) Plans & Specs: attached are plans and specs for this project.

(5) Re-bid: this case was originally brought to the Council on 10/11/2016.  At that time, the Council directed staff to have the project re-bid.  Please see 10/11 Council regular session case for details on the re-bid.

Funding Source:

Land proceeds from the sale of the former municipal center campus (Facilities Fund).

Recommendation:

Please see attached recommendation from project manager (Hakanson Anderson).  In summary, HA is recommending we award the contract to the lowest responsible bidder.

Action:

Motion to:
Adopt resolution #16-11-230 accepting bids and awarding contract for the former Ramsey Municipal Center site demolition, in the amount of $119,500.00, to DRC INC.

-and-

Authorize an additional $15,000 project contingency budget to be administered by the project manager.
 

Attachments

Form Review

Inbox Reviewed By Date
Kurt Ulrich Kathy Schmitz 11/17/2016 08:54 AM
Kurt Ulrich Kurt Ulrich 11/17/2016 02:49 PM
Form Started By:
Patrick Brama
Started On:
11/16/2016 03:36 PM
Final Approval Date:
11/17/2016