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Home My WebLink About13.C.1. Award Contract for Construction of New Fire Station-Res. No. 7085TO: Mayor and City Council Mark McNeill, City Administrator CITY OF SHAKOPEE Memorandum FROM: Rick Coleman, Fire Chief Kris Wilson, Assistant City Administrator SUBJECT: Award of Contract for Construction of New Fire Station DATE: February 24, 2011 Introduction The Council is asked to award a contract to Kue Contractors, Inc. for the construction of a new fire station. Background At its February 1 meeting, the City Council authorized staff and Oertel architects to advertise for and receive bids to construct a new Fire Station in the southeast corner of Lion's Park. The bid process has now been completed and bids were opened on Tuesday, February 22. A total of 15 bids were received, with the low bid being submitted by Kue Contractors, Inc. from Watkins, MN. Their base bid was $2,316,601. Staff is recommending that 2 of the 7 bid alternates be accepted, which would bring the total contract award to $2,365,002. The bid alternate prices and recommendations are as follows: Alternate #1 — Installation of a photovoltaic system on the roof. The bid price for this alternate was $46,305. While an exact payback or return on investment is difficult to determine, our architects estimate that at this price it would be at least 20 years before the City saw a return on its investment. Therefore, staff is recommending that we not proceed with bid alternate #1. Alternate #2 — Installation of two "destratification" fans in the apparatus bays. These are very large, industrial ceiling fans intended to control the temperature and provide air circulation in the apparatus bays. The bid price for this alternate is $17,220. Staff believes that, if needed, fans can be added later and at a lower cost before the project is closed out. Therefore, staff is recommending that we reject bid alternate #2 at this time. i 3 C. i. Alternate #3 — This would furnish and install a two -sided monument sign, 3 flag poles similar to what is at the police station, landscaping and lighting in the front of the station for a price of $22,750. Staff believes that these will provide a finishing touch to the building and serve as important identifiers for a public building. Members of the Fire Department have also identified this as being highly desirable. Therefore, staff recommends acceptance of alternate #3. Alternates #4 & #5 — Alternate #4 and #5 both relate to the use of bituminous vs. concrete for the driveway and parking lot. The base bid includes an entirely bituminous driveway and parking lot. Alternate #4 provides for a mixture, with concrete specifically installed in the areas where the large fire trucks will be turning. This adds $16,084 to the price. Alternate #5 provides for an entirely concrete driveway and parking lot for an additional $25,651 above the base bid price, or $9,567 above the price of Alternate #4. At a minimum, the project definitely needs Alternate #4 to support the wear and tear caused by the weight of turning fire trucks. However, Alternate #5 provides an entirely concrete surface for an additional $9,567. The Public Works Director states that this would eliminate the need to overlay the parking lot in the future, and is a very competitive price. Therefore, staff recommends rejecting Alternate #4 and accepting Alternate #5 (the all concrete option). Alternates #6 and #7 - These items were added by our architects to test the cost of particular materials or construction methods for the glass in the hose tower and the windows just below the roof line in the office area. Alternate #6 would add significant costs that our architect does not find to be worthwhile. Alternate #7 was floated as a possibility to save some money, however, there was found to be very little or no savings with this option. Therefore, staff recommends that the City reject both alternates #6 and #7. Budget Impact The City Council previously transferred $2.6 million to the project account for the new fire station. The City's adopted operating budget places an additional $400,000 from the 2011 tax levy into that account, providing the City with a total of $3 million to fund this project. Attached is a budget overview for the entire project, including construction costs, architect and engineering fees, furnishings, telecommunications, etc. With the recommended bid alternates, the contract to be awarded to Kue Contractors totals $2,365,002 and the total project cost stands at $2,949,023, which is slightly below budget, and previous estimates. $2,982,000 Estimated Project Cost from Feasibility Study (July 2010) $3,094,000 Estimated Project Cost at Approval of Final Design (January 2011) $2,949,023 Estimated Project Cost at Contract Award (March 2011) Our architect advises us that this is a very good price and is at least $200,000 less than what a similar project might have cost three years ago, due to the currently favorable bidding climate. As is noted in the attached project budget, we are recommending a contingency fund in the amount of $143,000, or 6% of the construction costs. In order to keep the project on schedule, staff is seeking authority for the City Administrator to approve the use of these contingency funds as needed to construct the building as presented. To keep Council informed, change orders will then be placed on the agenda for the next City Council meeting. By doing so, construction work will not be delayed, thus avoiding possible additional costs. Any change orders that would appreciably alter the scope or design of the building will be brought before the Council for action before proceeding. Other Considerations The new fire station has been designed to include a small office and interior parking space for one Allina ambulance crew. The City of Prior Lake currently has a lease agreement with Allina for a similar arrangement and Allina staff has expressed an interest in leasing space at the new Shakopee station. Therefore, Council is asked to authorize staff to initiate lease negotiations with Allina, and return with a draft agreement. Secondly, the IT room within this new station has been sized and wired to allow it to serve as a disaster recovery site for the City's IT network. We currently back -up our system to equipment located at City Hall. However, City Hall is not supported by an emergency generator. The presence of a generator and geographic separation between this new fire station and other City facilities makes it the preferred location to serve as the City's disaster recovery site. The attached project budget provides funding for all of the IT equipment necessary to meet the fire station's IT needs. However, to outfit the IT Room as the City's disaster recovery site will require an additional $18,000 worth of IT equipment. Staff will return to Council with a specific agenda item for this topic and an overview of options for funding this purchase at a later date. Relationship to Vision The construction of a new fire station contributes to Goal A: Keep Shakopee a safe and healthy community; and Goal B: Positively manage the challenges and opportunities presented by growth, development and change. Recommendation Staff recommends that the Council award a contract to Kue Contractors, Inc. for construction of a new fire station, including bid alternates #3 and #5, at a total cost of $2,365,002. Requested Action If the Council concurs, it is asked to: 1. Offer Resolution No. 7085, a resolution accepting bids on and awarding a contract for the construction of a new fire station, and move its adoption. 2. Move to establish a contingency fund in the amount of $143,000 and grant the City Administrator the authority to utilize such funds as needed in the construction of the project as presented. 3. Move to direct staff to enter into lease negotiations with Allina and return with a draft agreement for Council approval. Fire Station #2 Project Budget (March 1, 2011) IKue Contractors, Inc. Base Bid (includes generator) Alt. #3 (sign, flagpoles, etc.) Alt. #5 (all concrete) TOTAL Additional Project Costs' A/E fees Expenses Survey, borings, inspec. Telecom /security / cable Fiber Charges SPUC related charges Furnishings Contingency (6 %) SCBA Low Voltage Computers, Phones, etc. SUBTOTAL TAL PROJECT COSTS $ 2,316,601.00 $ 22,750.00 $ 25,651.00 $ 2,365,002.00 $ 197,000.00 $ 20,000.00 $ 40,000.00 $ 19,467.22 $ 37,290.00 $ 23,000.00 $ 40,000.00 $ 143,000.00 $ 39,263.55 $ 13,000.00 $ 12,000.00 $ 584,020.77 :4949.022:77 RESOLUTION No. 7085 A RESOLUTION ACCEPTING BIDS ON, AND AWARDING A CONTRACT FOR THE CONSTRUCTION OF A NEW FIRE STATION WHEREAS, pursuant to an advertisement for bids for the construction of a new fire station, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement: BASE BID CM Construction $2,500,000 Ebert Construction $2,362,200 Gopher State Contractors $2,479,506 Hallbar Construction $2,494,000 Healy Construction $2,799,000 Jorgenson Construction $2,503,000 Kue Contractors, Inc. $2,316,601 Lund Martin Construction $2,457,000 Merrimac Construction $2,442,818 Met -Con Construction $2,496,000 Morcon Construction $2,471,000 Parkos Construction $2,334,800 Rochon Corporation $2,409,000 W. Gohman Construction $2,546,346 Weber, Inc. $2,393,000 AND WHEREAS, it appears that Kue Contractors, Inc. is the lowest responsible bidder and has included with their bid the following alternates: Base Bid $2,316,601 Alternate #3 $22,750 Alternate #5 $25,651 Total contract amount $2,365,002 NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF SHAKOPEE, MINNESOTA, that the appropriate City officials are hereby authorized and directed to enter into a contract with Kue Contractors, Inc. in the amount of $2,365,002, in the name of the City of Shakopee for the construction of a new fire station according to the plans and specifications previously approved by the City of Shakopee and on file in the office of the City Clerk. BE IT FURTHER RESOLVED, that the City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except the deposits of the successful bidder and the next lowest bidder shall be retained until a contract has been signed. Adopted in regular session of the City Council for the City of Shakopee, Minnesota, held this 1 day of March, 2011. ATTEST: City Clerk Mayor of the City of Shakopee