Agenda - Council - 10/11/2016 - Laserfiche WebLink

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08/15/2016: J&J Contracting completes phase 1 of demolition process. 08/23/2016: Council adopt plans & specifications and authorizes advertisement for bids for phase 2 of the demolition project. 10/11/2016:**(this case) Council was to consider approving contract for demolition. 11/30/2016: Phase 2 demolition SUBSTANTIAL completion. 06/30/2017: Phase 2 demolition FINAL completion. 07/30/2017: Developer with purchase agreement on the remaining portion of the former municipal center site must close. Observations/Alternatives: UPDATE Per the original project schedule, bids were opened on 09/21/2016. Eleven companies bid. Bids ranged from $92,900 to $391,263--with a cluster of bids ranging from $150K-$220K. The Engineer's estimate for this project was $175,000. DRC had the low bid of $92,900. The Project Manager (Hakanson Anderson) followed up with DRC, and confirmed they understood the scope of work for this project, and completed a reference check. In summary, Hakanson Anderson believes DRC has a good bid, and believes they are a qualified bidder in regard to performance. During the bidding process an issue occurred. Four of the eleven bidders were provided information by City satff related to "crushing" construction debris. The information received by said four bidders was not shared with all bidders. As a result, some bidders were bidding on different information. In summary, the information provided regarding "crushing" by the City can have an effect on project costs --thus effecting bid results. With this in mind, staff believes it would be reasonable to consider re -bidding this project for the sake of transparency, equity, and future credibility in regard to the City's bid process. Below are details. Crushing (what is it?): crushing is a technique used by contractors during construction/ demolition projects to reclaim/ reuse construction materials. Typically, items like bricks, concrete, and asphalt can be crushed and reused as an ingredient for a new product. A good example is Commercial Asphalt in Ramsey --they use recycled materials from construction sites to create various products that go into road materials. Crushing (why does it matter?): crushing allows a demolition contractor to reduce their project costs by increasing revenues they can pull from a particular project (by reselling the materials they demo and crush). One important component of crushing is whether it is done ON -site or OFF -site of a particular demolition project. Crushing ON -site further reduces costs for a demolition contractor --as they can eliminate transporting materials one more time (i.e. they don't need to transport materials to another site for crushing --they can transport directly to the end -user). Crushing (what the issue with this project?): the City's bid documents never explicitly indicated whether crushing is allowed, or not allowed, ON -site. Without a specific prohibition in the bid document, crushing was allowed ON -site per the bid documents --technically speaking. However, during the bid process, City staff verbally communicated to only four of the eleven bidders that crushing was not allowed ON -site. As a result, a conflict within the information provided to bidders exists. Crushing (important notes): (1) the lowest bidder DRC did include crushing ON -site. (2) staff can support crushing materials ON -site. The original staff concern regarding crushing was noise. After some research, it has been found crushing (with proper equipment) can be quieter than most other activities that will occur on site during the demolition process. As a result, crushing is no longer seen as a concern by staff.