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HomeMy WebLinkAbout9.B.1. Rejection of Bids for Riverside Fields Park-Project No. PR2012-1-Res. No. 7204 7 CITY OF SHAKOPEE MEMORANDUM To: Mayor and City Council Mark McNeill, City Administrator From: Jamie Polley, Director of Parks, Recreation & Natural Resources Meeting Date: June 5, 2012 Subject: Rejection of Bids for Riverside Fields Park, Project No. PR2012 -1 INTRODUCTION City Council is asked to reject the bids received for Riverside Fields Park and direct staff to rebid the park project in early 2013. The City Council is also asked to approve funding to retain Stantec for the rebidding process. BACKGROUND The City Council approved the plans and specifications and authorized the bidding of the Riverside Park project on April 3, 2012. The current CIP allocation for this project is $640,000.00. The main components of this budget include: earthwork, trails, hockey /basketball, paved /fenced tennis courts, parking paving and utility connections to the building pad. Site furniture includes benches, pedestrian lighting and bike racks. Other amenities include hockey boards and lighting, basketball court and volleyball court. Staff time (Engineering /Public Works will be in charge of the Construction Administration) contingency, and Trunk Water Charges (estimated) are all included in the estimate as part of the 10% project contingency. The CIP allocation for this project does not include the $130,000 to construct the restroom /warming building however the allocation does include stubbing in the utilities to the building pad. PARK CIP $640,000 DESIGN & CONSTRUCTION DOCUM. $24,000 AMENDED CIP $616,000 CONTINGENCY 10.0% $61,600 CONSTRUCTION BUDGET $554,400.00 The estimate construction budget total is $597,758 which all of the amenities in the City Council approved plan. This estimate is $43,358 over budget. The estimated construction budget total is $549,233 if the hockey rink is unpaved and the basketball court is moved to the tennis court. This estimate is $5,167 under budget. DISCUSSION Bids for the project were opened on May 22, 2012 at 1:OOpm. The City received two bids for the project: Max Steininger, Inc. $647,548.17 Frattalone Companies, Inc. $689,591.29 Both of the submitted bids are over the engineer's estimate of $597,758. Stantec made inquiries to the other plan holders that did not bid to determine why they did not submit a bid for this project. The responses were similar in that this project was bid later then state and county projects and their companies were very busy. Staff is recommending that the City Council reject the two bids at this time and direct staff to rebid the project early in 2013. It is anticipated that by rebidding the project early in the year the City will receive a greater number of bids allowing for more competition. In addition, after reviewing the bids the significant difference in the bids submitted and the engineers estimate was in the site grading budget item. Conducting soil borings prior to bidding would clarify this item. If the Council chooses to reject the two bids and rebid the project early in 2013 staff recommends allocating $3,000 to retain Stantec. Stantec would then make any determined changes to the plans and specifications and would administer the bidding process. In addition staff recommends that the Council allocate $3,000 for soil borings to be completed on the site if determined necessary. The allocation of $6,000 for these two items would be funded from the Park Reserve CIP. VISIONING RELATIONSHIP C. Maintain the City's strong financial health. REQUESTED ACTION City Council should, by motion, offer Resolution No. 7204, A Resolution Rejecting Bids for Construction of Riverside Fields Park, Project No. PR2012 -1. City Council should, by motion, direct staff to rebid the project early in 2013 and allocate $6,000 from the Park Reserve CIP for administration of the bidding and soil borings of the project site. RESOLUTION NO. 7204 A Resolution Rejecting Bids For Construction of Riverside Fields Park, Project No. PR2012 -1 WHEREAS, pursuant to an advertisement for bids for the Construction of Riverside Fields Park, Project PR2012 -1, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: Max Steininger, Inc $647,548.17 Frattalone Companies, Inc $689,591.29 AND WHEREAS, the low bid exceeds the project budget. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA: 1. Bids for the construction of Riverside Fields Park, Project No. PR2012 -1 are hereby rejected by City Council. 2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids if any. Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of , 2012. Mayor of the City of Shakopee ATTEST: City Clerk