Agenda - Council - 10/14/2014 - Laserfiche WebLink

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Notification: By order of the City of Ramsey, Minnesota: August 11, 2014 Published: Anoka County Union Herald: August 29, 2014; September 5, 2014; September 12, 2014 Finance and Commerce: August 29, 2014; September 5, 2014; September 12, 2014 Observations/Alternatives: Alternatives: Alternative # 1 - Motion reject bids and not award contract for Improvement Project 14-28. (staff recommendation) Bid prices were not favorable and ranged from about 1.83 to 2.3 times higher than the LSA Engineer's estimate for construction costs; which was originally $193,930. Attached to this case is a MEMO from LSA Design explaining why the bids came in high (multiple), outlining their recommendation for moving forward (re -bid), identifying a new project timeline (re -bid in February, completion by July) and providing an updated construction estimation ($249,420). Re -bidding project 14-28 this winter may lend the City to a more favorable bidding climate; and result in lower bid responses. With final plans and bid responses in -hand, the Council will be in position to consider authorizing construction of the proposed garage this Spring. The drawback to this alternative is another winter for the City's Building Maintenance Department (along with other departments) to operate without needed storage space. This alternative has been discussed with the City's Building Maintenance Department. Alternative storage strategies will be utilized over the winter. Alternative #2 - Motion to accept bids and award a contract to Derau Construction in the amount of $354,300 for Improvement Project 14-28. The benefit to this alternative is the City's Building Maintenance Department's needs would be met in time for winter. The drawback to this alternative is paying a premium for a project that was/is anticipated to cost less; if a re -bidding is authorized. Funding Source: Public Facility Construction Fund. The Public Facility Construction Fund is used to fund the acquisition of land and construction for public facilities. Examples uses of this fund include the design of the new municipal center/police station and remodel of old city hall. This fund has an estimated 2014 ending balance of $435,093 (prior to this project). The majority of this fund balance is attributed to a transfer from the 2013 General Fund per the City's excess revenue fund policy in the amount of $286,600. Project Budget: Construction Costs (original) $193,930 Construction Costs (updated) $249,420 Soft Costs/Permits/Legal (25%) $62,355 Recommendation: Motion to: Reject bids and not award a contract for Parking Ramp Garage Improvement Project 14-28 -and- Authorize second bid letting for Parking Ramp Garage Improvement Project 14-28 NOTE: staff would anticipate following the timeline identified and recommended by LSA Design (re -bid in