City Council Agenda Packet 11-02-1998
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A ENDA
SPECIAL MEETING - M NTICELLO CITY COUNCIL
Monday, Nove her 2, 1998 - 5 p.m.
Mayor: Bill Fair
Council Members: Clint Herbst, Brian Sturn f, Roger Carlson, Bruce Thielen
1. Call to order.
2. Consideration of accepting bids and a arding contract for community center project.
3. Adjournment.
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2.
Consideration
proiect. (J.O.)
center
A. REFERENCE AND BACKG
Special Council Agenda - 11/2/98
The City Council is asked to review th bid tabulation and the options for adding and
deleting to the project and consider aw rding the project to Donlar Contractors
accordingly. On Thursday, October 2 , at 3 p.m., the City received 9 bids. The low base
bid was provided by Donlar Contracto s in the amount of $8,032,000. The next closest
bid came from Arkay Construction at 8,134,000, followed by Shingobee Builders at
$8,217,000. The highest bid came in l' om Stahl Construction Company in the amount of
$9,060,000. The bids were tightly gro ped, thus reflecting a bid specification that was
clear and understandable. The architec had projected that the base bid amount should
come in somewhere around $7,750,00 . The low base bid is, therefore, 3.6% higher than
the architect's estimate. According to ark Wentzell and Ron Ankeny of Ankeny Kell
Architects, given the current constructi n climate and given some recent surprises with
other bid openings in the area, we shou d be fairly happy with the base bid relative to the
architect's estimate.
On Friday, October 29, City staff met ith Mark Wentzell to identify three basic options
that the City Council may wish to consi er in reviewing the various items that could be
deducted or added to the project in an e fort to adjust cost or add value. Each option is a
starting point for discussion. City Cou cil should feel free to mix and match as it
chooses; however, it should be noted th t ifthe total budget amount exceeds the amount
approved by the HRA, the City Council will need to convince the HRA to increase the
bond amount to match any increase that might be requested by the City Council. Please
also note that this analysis is focused en irely on project cost. Issues relating to the
funding program will be addressed by usty Fifield at the meeting.
Lean Option #1
Under this option, City staff made an ef ort to cut as much of the project as possible in an
effort to get the budget as close to the ta get budget of $9,569,000. Items removed from
the base budget under this alternative in luded the pool finish, raindrops and lemon
drops, and the lilypad walk, in addition t the light fixtures in the gallery extending from
the lobby to the council chambers. Item not deducted from the project under this
alternative included the mill work, the w ter play structure, the water slide, and the spa
pools. Under this option, the only item at was added in from the add alternates list
included the pool ceramic tile in the am unt of $68,600. Other noteworthy items not
included in this option include the child lay area at $50,000, and the wheel park and
fenced area, which amounts to $99,000. Council may find this option appealing in that it
brings the budget fairly close to the targe number and it excludes items such as the wheel
park and the child play area that could b added later if the City is successful in obtaining
a portion of the $1,000,000 in funds that ave been applied for via various grant
programs.
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Moderate Option #2
Special Council Agenda - 11/2/98
Under this option, the following additi nal items are added to the program identified in
option #1: Light fixtures in the galler and a combination terrazzo floor plus carpet.
Option #2 also includes the wheel par and the fencing and electronic controls for furnace
and mechanical. As with option # 1, 0 tion #2 does not include the child play area.
All Needs Met, Option #3
Under option #3, all of the items that c uld be deducted from the base bid are left in the
base bid. Items excluded from the prev'ous two options that are now in include: The
lilypad walk, the raindrops and the lem n drops. Add alternates included in this option
which are not included in the other incl de full installation of terrazzo floors and
purchase of an operable partition. The t tal cost for this option is $10,125,460, which is
$556,460 off the target amount. This a ounts to 5.5% over the target budget amount
and, as with the other alternatives, does ot include potential additional funding through
the grant programs.
Grant Programs
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It is very difficult to say if the City will e successful in obtaining funds through the grant
program. Each of the three applications ppear to meet the criteria for funding and, thus,
one would expect that each would score ighly. Unfortunately, we have no idea of
knowing how tough the competition is. or the purpose of analyzing the likelihood of
getting funds for this project, it is our vie that it is fair to say that the City has some
chance of winning at least 20% of the fu ds requested through the three grant programs.
Non-Building Project Costs
The attached worksheets also include a Ii ting of the various project costs in addition to
the building costs. As the project proceeds, we are getting a better idea of what our soft
costs are. However, these numbers at this time are preliminary. You will note in the
numbers that there is a contingency amou t of $150,000. It is our view that any overrun
in soft costs can easily be covered by the roject contingency. Note also that there is a
line for value engineering. This is the projected amount that the architect feels the City
can gain from making modifications to the project to decrease project costs. Site
acquisition and relocation costs are fairly s lid; however, they could go down or up a
small amount depending on the actual cost of relocating the bulk tanks. Soils correction
is largely covered by the base bid; therefor , the soils correction cost has moved down to
$15,000. The audio/visual equipment is id ntified at a cost of$50,000. This is a very
rough number at this time, as we have not eceived quotes yet on the phone/intercom
system, the P A system, or television equip ent. At this point in time, it is our view that
we will need to make sure that the design 0 the A V systems will allow us to meet the
target amount of $50,000.
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2
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B. ALTERNATIVE ACTIONS:
Special Council Agenda - 11/2/98
1. Motion to select option # 1, acc pt bids and award the community center project to
Donlar Contractors in an amou t identified under option #1 with modifications as
desired by the City Council, pe ding ratification and approval by the HRA.
2. Motion to accept bids and awar the community center project to Donlar
Contractors as identified under ption #2 with modifications as desired pending
ratification and approval by the HRA.
3. Motion to accept bids and awar the community center project to Donlar
Contractors as identified under ption #3 with modifications as desired pending
ratification and approval by the HRA.
C. STAFF RECOMMENDATIO ;
The three basic options above are starti g points for discussion. Council may want to
discuss this and mix and match potenti I deducts and add alternates as it sees fit. Rusty
Fifield will be available at the meeting 0 discuss the overall finance plan and will be
providing the Council with an analysis f the impact of the reduction in interest rates on
the City's ability to finance a greater debt level with debt service figures approved in
August. I've had a brief opportunity to talk with Rusty about the City's ability to fund
more project without increasing debt se vice due to the reduction in interest rates. It
appears that the reduction in interest rat s will help to fund a higher principal amount;
however, it appears that additional capi al funds will be needed for this project.
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Some basic recommendations City staf would like to make would be to urge Council to
include items that are integral to the bui ding if they are important in the long run. Items
that are not integral to the building that ould be added later may be good items to not
include in the original project. There w s considerable discussion at staff level regarding
the value of terrazzo floors. This is one of those items that in the long run, Council may
be glad that it went over budget to insta I today rather than replace carpet time after time
in the future. Council should also be a are of the value of maintaining a well-rounded
facility that appeals to a cross-section 0 the community. Therefore, cuts should be
spread around and not focus on one gen ral user group.
All in all we are comfortable with the bi as presented and feel that even by cutting a
project to the bone and sticking to the 0 iginal budget, the facility is worth building.
Therefore, the City Administrator reco mends the community center bid be awarded to
Donlar Contractors with features as as d termined by the City Council and ratified by the
HRA.
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D.
SUPPORTING DATA:
Summary of options 1-3; Bid tabulation
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COMMUNITY CENTER BID BUDGET ANAL SIS
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IComponent
BLACK IS OUT.. GREY IS IN
BID
AMOUNT
OPTION 1
LEAN
OPTION 2
MED
OPTION 3
NEEDS MET
Base Bid
Alternate A 1 - Terrazzo
Alternate A2 - Pool Ceramic Tile
A1ternate'A3 . 0 erable Partition
Alternate A4 - Sheet Flooring In Gym
Alternate AS:'Wheel Park -"
Altern<!!e A6 - Fencing.'_____
Alternate A7 - Guard Storage Shel~,Djil.
Alternate A8 - Millwork
Alternate SP1 Pool Finish
Alternate SP2 Raindrop~j'ndLem Drps
Altern_ate SP3 Wate~~I~)' Structure
Alternate SP5 Lily Pad Walk
Alternate SP6 Water Sli~-
A1ternat~_~P7 spa Pools
M1 Electronic Controls
E1 Light Fi,xture in Gallery
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$8,032,000
$106,000
$68,6'0'0
-$23;000
$30,900-
$70, iDe)'
$29,66()'
$18,500
$83,000
$8:5o'()"
-$6,700
$69,000
$30,000
$87,000
$~9.2QQ.
$1,820
$f{~OO
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E PLUS ADDITIONS AND SUBS
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Project Contigency
Value Engineering
Arch and engineering fees
Site Acquisition and Relocation
Soils Correction
Spur Removal
FFE Interior design
FFE ($325,000-climbing wall/play area)
Climbing Wall
Child Play Area (will need funding via grant)
Rerouting utilities
Landscaping
Fees and Insurance
Inspections and Printing
Builders Risk Insurance
Audio Visual equipment
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$8,049,,600,
$8,231,800
$8,347,500
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$150,000
($200,000
$671,520
$410,000
$15,000
$2,500
$17,000
$183,000
$75,000 .
$50,000
$265,440
$30,000
$73,500
$30,000
$5,000
$50,000
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GRAND TOTAL $9,800,008 $9,996,784 $10,125,460
Target budget $9,569,000 $9,569,000 $9,569,000
lation to budget $231,008 $427,784 $556,460
2.36% 4.28% 5.50%
GRANT FUNDS PENDING $1,021,000 $1,021,000 $1,021,000
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