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HomeMy WebLinkAbout6.e. Minutes of October 4, 2005 Special Work SessionITEM #6 E 1 ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL SPECIAL WORK SESSION OCTOBER 4, 2005 Pursuant to due call and notice thereof a City Council Special Work Session was held on Tuesday, October 4, 2005 at 8:03 p.m. in the Council Chambers at City Hall following the regular City Council meeting. Mayor Droste called the meeting to order with Council Members DeBettignies, Baxter, Shoe Corrigan, and Sterner present Also in attendance were City Administrator Verbrugge, Assistant City Administrator Weitzel, Fire Chief Aker, City Clerk Jentmk, City Engineer Brotzler, and Communicanons Coordinator Cox. AMCON consultants Todd Christopherson and Scott Mohs attended and Mark Vetter from Vetter Architects. Mayor Droste noted the purpose of the meeting was to discuss the bid results for Fire Station No. 2. FIRE STATION NO. 2 Mr. Verbrugge requested that City Council review the option analysis by AMCON Construction Management. Mr. Verbrugge reported that AMCON managed the construction of Fire Station No. 1 in 1997 and the City Hall remodeling m 2000 with lower costs than onginally estimated. The bid opening for Fire Station No 2 was held September 29, 2005 Mr. Verbrugge outlined AMCON's presentation for Council's discussion. Todd Christopherson from AMCON reported that the bids were disappointing and produced a project cost overrun of $350,000. Mr. Christopherson stated that bidders will be interviewed to determine where mismterpretanons occurred and why costs were higher than expected. The Special Work Session was requested so AMCON could determine how to proceed with the project. Mr. Christopherson had concerns pnor to the bid opening due to comments by contractors indicating that they were too busy to bid, too busy to fabncate, or unable to keep delivery schedules. Mayor Droste reviewed the carpentry bid, C -11. The budget was for $19,000 and the bid came m at $42,000 Mr Christopherson commented the higher bid may be related to the way the estimate was wntten compared to specific products m the bid specification Ms. Shoe Corrigan pointed out estimates for the carpentry and roofing were also much higher than first estimated. Mr. Christopherson stated that occasionally they find something was left out or duplicated m another bid grouping after review. Mr. DeBemgnies noted the roofing panels, C -32, may have been included in the millwork which would increase the bid. Mayor Droste inquired if tuning is a key issue. Mr. Christopherson stated that winter construction costs are higher due to necessary heating and cover. The construction market is busy and the effect of Hurncane Katrina may hinder construction supplies and a shortage m the labor force. He included that costs can spike in addition to the average 3 -4% inflation each year. Mr. Christopherson was perplexed by the high bid results and stated that many variables may be at play. Mr. Chnstopherson reviewed AMCON's process to generate bid interest with 250 faxes, letters, and 400 phone calls. The project was further identified by sending the plan and specifications electronically to nine different plan rooms who then send out notices to members. Ms. Shoe Corrigan expressed her concern for the design coming in over budget and requested an explanation ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL SPECIAL WORK SESSION OCTOBER 4, 2005 Mr Verbrugge stated staff looked at mimicking the design of Fire Station No. 1 with the help of AMCON Mr Droste recalled the financing for Fire Station No. 1 which was estimated at $3.2 million and then reduced for bonding to $2 5 million Mr. Verbrugge stated space was cut down and $250,000 would be financed through other funds Ms. Show Corngan stated she did not appreciate that Council is now asked again to modify the plan which is almost $400,000 over estimated cost. Mr. Verbrugge indicated it will be the Council's decision to move forward or not. He stated there are funds available though an mterloan from CORE funds and it would be repaid over a 20 -year term. Mr. Baxter indicated he would prefer to rebid, but could accept using encumbered funds. Mr Baxter did not see rushing the project. Mr Verbrugge agreed there was no need to decide issues immediately. Mr. Christopherson reported that bids are open and valid for 60 days. He recommended consideration to award the bids for some project items. He then requested further direction from City Council. Mr. DeBettignies asked about the work force availability and the expected forecast. Mr. Chnstopherson expected Hurncane Katrina to draw the workforce to the Gulf area for 60 to 90 days Mr. Droste agreed with Mr. Baxter's preference to rebid. He stated the news indicated that projects may go up 2O% which could cause inflation or an automatic recession Mr. Droste believed there may be stabilization soon and he stated news reports are often exaggerated. He suggested that City Council wait, review data, and make a decision at the next work session. Ms. Shoe Corrigan stated she was disturbed by the trends in the market and believed AMCON should forecast reasonable trends She stated that if this happened in her own home, she would reconsider. Ms Shoe- Corrigan emphasized that the fire station is for pubhc safety and adds services to the community She favored rejecting the bids and starting over. Mr. Droste suggested waiting a week and considering this at the work session. He stated he did not want to reduce the fire station size from a three -stall bay to two stalls; he believed that would it would be short sighted. Mr. Verbrugge inquired if City Council had any other options to offer. Mr. Sterner supported altering some of the specifications, such as the blinds and accepting some of the bids. Mr Vetter, Vetter Architects, noted that a request to strip the building and lower cost is usually the first request in these situations. Mr. Vetter commented that the high cost of the blinds was unexpected. He reported the blinds are fabnc- covered metal which are usually twice as much as metal blinds, but the bid amount this time was ten times more. Mr. Chnstopherson noted that one clear benefit results with the City being the owner, it has the flexibility to pick and choose bids. The City can move ahead with some bids and rebid others. Ms. 2 Shoe Corrigan stated by next week she would look for some advise on what bids to move forward. Mr Christopherson stated he understood the direction of Council. Mr. DeBetttgmes indicated he would favor staying within the planned budget amount. Mx. Sterner inquired if the architect would also review the project for cuts. Mr. Vetter stated that large block rather than small brick should produce a reduction The blind quahty could also be reduced. Mr. Vetter stated the largest way to reduced cost would be further reduction of the building size. The style of rock face concrete block could be changed for a savings of $10,000 to $15,000. Mr. Baxter inquired why the bid for rock face is $150,000 over estimate. Mr. Chnstopherson stated an interview with the bidder would explain the high cost After that discussion, he could recommend ways to make further reductions. Mr. Baxter noted he was in the roofing industry for many years and he had a difficult time understanding why only one contractor would bid this project. He beheved that reactions to the hurricane had an impact on the bid results perhaps due to the uncertainty of the work force availability. Motion by Mayor Droste adjourned the meeting at 8:52 p.m. The City Council's Agenda Packet is Clerk's File 2005 -41. 3 ROSEMOUNT CITY PROCEEDINGS CITY COUNCIL SPECIAL WORK SESSION OCTOBER 4, 2005 Respectfully submitted, Linda Jentink, City Clerk Recording Secretary