Agenda - Council - 03/24/2009 - Laserfiche WebLink

Home

t •• T'°" Observations: Fifteen Bids were received for the project with the low Bidder being American Liberty Construction Inc. of Rockford, Minnesota with a base Bid of $229,501.19, and an Add Alternate of $58,088.62. This firm has a good reputation of completing successful park construction projects as close as Elk River and Anoka County Parks. Further, staff has received the list of subcontractors and sees no cause for concern (additional research is on-going relative to licensure checks etc.). Attached to this case is the Bid Tabulation, showing the range of Bid amounts. It should be noted that one of major subcontractors, providing the earthwork and utilities. is Julian Johnson Construction Corporation, located in Ramsey. Their portion of the Base Bid represents approximately 24% of the dollar value of construction to be performed. As mentioned, this project was Bid at a time that was intended to take advantage of the competitive nature of the. construction. industry in the present economic environment. It is believed that the Bid amounts reflect. a successful strategy, with both the Base Bid and Alternate coming in significantly under the pre-bid estimate. Another strategy to achieve the best value possible for the. city was to separate certain park and trail elements out by a Bid Alternate that could, conceivably be performed by city forces. These primary components being the trail paving north of the park area, landscape installation, the .seating deck associated with the shelter, and the boardwalk with 38' foot T-dock. Staff conducted a thorough analysis of the true. costs of the city constructing the Bid Alternates in lieu of the contractor. Due to the extremely favorable Bids, the only Alternate item that makes economic sense to address in-house would be the boardwalk and T-dock. However, several items were planned to be performed with city .forces like clearing and grubbing, rough grading for the trail, and the installation of silt fence along the trail north of the park. Completing the work items above, as well as the construction of the boardwalk and dock in-house,. will allow the transfer of $42,589 -from the .Park Improvement Trust Fund, to the General Fund in January 2010. Another transfer from the Park Trust Fund, will need to be $30,000 tore-pay' the Tax Increment Financing District #1, for the original purchase of the land to be developed as park.- This money is then available again for economic development purposes. Attached is a spread. sheet that shows the various disbursements origin, the benefit received, and the recipient of the funds. Funding Source: -148-