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HomeMy WebLinkAbout2.a. Fire Station #2AGENDA ITEM: Fire Station #2 AGENDA SECTION: PREPARED BY: Dawn Weitzel, Assistant City Administrator AGENIg ATTACHMENTS: None APPROVED BY RECOMMENDED ACTION: Discussion 4 ROSEMOUNT CITY COUNCIL City Council Work Session: October 12, 2005 EXECUTIVE SUMMARY ISSUE_ At the October 4 Special City Council Work Session, AMCON was asked to return to Council with information specific to project bid costs which exceeded estimated costs. As of this tune, Todd Chnstopherson and Mark Vetter are still workmg on assembling this information. We expect that detailed data will be provided to the City on October 10 and staff will immediately forward the report on to Council. Todd Chnstopherson and Mark Vetter will be present at the Work Session to present the information and answer questions by Council. 1D -12 -2005 8 34 PM D E TAI L L I S T I N G PAGE: 1 FUND 454 -FIRE STATION #2 ACTIVE ACCOUNTS ONLY PERIOD TO USE. Jan -2005 THRU Dec -2005 DEPT 8000 CAPITAL PROJECTS SUPPRESS ZEROS ACCOUNTS 48000 -01- 302.00 THRU 48000 -01 -324 00 DATE POST THAN 4 REFERENCE PACKET DESCRIPTION VEND INV /PO /JE NOTE AMOUNT== BALANCE==== 48000 -01 -302 CC ARCHITECTS' FEES B E G I N N I N G B A I A K C E 0.00 4/14/05 4/14 A39070 CHK 077663 03625 SERVICES REIMBURSABLE 000008 24,130.62 24,150 62 VETTER JOHNSON ARCHITECTS INV# 1 104 67889 APRIL ACTIVITY DB. 24,150.62 CR: 0 00 24,150 62 5/31/05 5/31 A41596 CHK: 078260 00665 SERVICES REIMBURSABLE 000808 21,146 96 45,297.58 VETTER JOHNSON ARCHITECTS INV# 2 /P0# 68173 MAY ACTIVITY DB: 21,146.96 CR C.00 21,1 6/30/05 6/30 A43369 CHK 078684 00700 MAY SERV REIMBURSABLE 600638 18,823.43 6&,I21 01 VETTER JOHNSON ARCHITECTS INV# 3 /PO4 68926 JUNE ACTIVI_Y 0B 18,823.43 CR: 0 00 18,623 43 8/31/05 8/31 A46791 CHK: 079750 00752 JUN /J1JL 537 REIMBURSAB 000808 39,796 21 103,917.22 VETTER JOHNSON ARCHITECTS INV# 4 /P0# 69430 AUGUST ACTIVITY DB: 39,796.21 CR 0 00 39,796.21 9/29/05 9/29 A48652 CHK 080130 00771 AUGUST SRV REIMBURSABL 000808 35,728.15 139,645 37 VETTER JOHNSON ARCHITECTS INV# 5 /PO# 69448 SEPTEMBER ACTIVITY D9 35,728 15 CR 0 00 35,728.15 ACCOUNT TOTAL DB 139,645 37 C3. 0.00 48000 -01 -303 00 ENGINEERING FEES B E G I N N I N G B A L A N C E 5/12/05 5/12 A40776 CHK. O 00649 FIRE STATION 42 231910 WSB AND ASSOCIATES INC INV# 1556 -350 -1 /PO# MAY ACTIVITY DB- 647.50 CR' 0.00 8/31/05 3/31 A47004 CHK: 079753 00752 FIRE STATION 42 PLAN REV 231910 WSB AND ASSOCIATES INC INV# 1556 -350 -2 /804 AUGUST ACTIVITY DB: 376.00 CR 0.00 9/15/05 9/15 A47820 CHK: 079938 00757 FIRE STATION 42 PLAN REV 231912 WEB AND ASSOCIATES INC INV# 1556 -350 -3 9/29/05 9/29 A48800 CHK: 085132 00771 FIPE ST'N #2 PLAN REVIEW 231910 WEB AND ASSOCIATES INC INV# 1556 -350 -4 S P_EMBER ACTIVITY DB 329 00 C3 48000 -01- 319.00 OTHER PROFESSIONAL SERVICES B I G I N N T K G B A L A N C E /P0# /90# 0.00 ACCOUNT TOTAL DB: 1,352.50 CR- 0 00 647 50 647 50 376 00 376.00 188 00 141 CO 329 00 0 00 647 50 1,3 1,211 50 1,352 50 3 CO 3/3 3/31 A58343 CRK 077329 00608 CONSTR MGMT SERV -ETRE ST 011305 1,800 00 1,800 PC AMCON LLC INV4 21900 -MARCH 05 /PO# 67880 MARCH ACTIVITY DB 1,800 00 CR- 0.00 1,800 CO 10 -12 -2005 e 34 PM D E TA I L L I S P I N G PAGE. 2 FUND 454 -FIRE STATION #2 AC:IVE ACCOUNTS ON77Y PERIOD TO USE: Jan -2005 THRU Dec -2005 DEPT 9000 CAPITAL PROJECTS SUPPRESS EROS ACCOUNTS 48000 -01 -302 00 THRU 48000 -01- 324.00 DATE POST TRAN REFERENCE PACKET DESCRIPTION "FD INV /PO /JE NOTE AMOUNT BALANCE 48000 -01- 319.00 OTHER PROFESSIONAL SERVICES CONTINUED 4/14/05 4/14 A39072 CHK: 077545 00625 CONSTR MGMT SERV -FIRE ST 011305 AMCON LLC INV# 21900 /004 67897 APRIL ACTIVITY 03 2,400.00 CR: 0.00 5/12/05 5 /L2 A40579 CHK: 077921 00649 CONSTR MGMT SERV -FIRE ST 011305 AMCON LLC INV4 21930 -4/05 5/31/05 5/31 A41605 CHK. 078221 00665 GEOTECHNICAL EXPLORAT'N- 000842 NORTHERN TECHNOLOGIES INC INV# 05- 7880.4 MAY ACTIVITY DB• 5,000.00 CR 6/16/05 6/16 A42290 CHK 078377 00696 CONST MGMT SERV -FIRE ST' 0:1305 AMCON LLC INV# 21900 -5/05 6/16/05 6/16 A42424 CHK 078416 00686 GO CIP BONDS SERIES 2005 138520 M00DY'S INVESTORS SERVICE INV# F1510490 -000 JUNE ACTIVITY DB: 6,499 55 CR 7/14/05 7/14 A44064 CHK 078781 00711 2005A GO CAP IMPROV BOND 021840 BRIGGS 6 MORGAN INV# 4970.90 7/14/05 7 /14 A44213 CHK 078891 03711 2005A GO CAP IMPROV BOND 191980 SPRINGSTEC INC INV# 1 -R0704 L5 7/14/05 7/14 A44281 CHK: 078905 00711 2005A GO CAP IMPROV -AGT 211917 JS BANK INV# 1524548 7/28/05 7/28 A45180 CHK: 079056 00725 CONST MGMT SERV -FIRE ST' 011305 AMCON LLC INV# 21900 -6/05 JULY ACTIVITY DB 27,242.50 CR: 8/31/05 8/31 A46827 CHK: 0796:6 00752 CONS= MGMT SERV -FIRE SI' 011305 AMCON LLC INV# 21900 -7/05 AUGUST ACTIVITY 03 2,400.00 CR 9/29/05 9/29 A48679 CHK 080031 007 CONS :RUCTION MGMT FEE 011305 AMCON LLC INV# CM219 -01 9/29/05 9/29 A CHK: 080031 00771 CONSTRUCTION HARD COSTS 011305 AMCON LLC INV# CM219 -01 SEPTEM3ER ACTIVITY DB: 2,421 00 CR. 000 ERRORS IN THIS REPORT REPORT TOTALS DEBITS CREDITS BEGINNING BALANCES. 0 00 0.00 REPORTED ACTIVITY 188,760.92 0 00 ENDING BALANCES: 188,760 92 0 00 000 ERRORS IN THIS REPORT' 000 RESTRICTED ACCOUNTS /PO# 68161 /208 68174 0 CO /P00 68536 /P0# 68463 0.00 /P0# 68466 /PO# 68470 /P0# /P0# 68936 0 00 /90# 69429 0.00 /P0# 69802 /PO8 69802 0.00 Ai.COUNT TOTAL DB: 47,763 05 CR 0.00 2,400 00 4,200 00 2,400 00 2,400.00 6,600.00 2,600.03 9,200.00 5,000.30 2,400 00 1- ,600.00 4,099 55 15,699.55 6,499 55 5,542 59 21,242.14 18,516 58 39,758 72 558 33 40,317 05 2,625 00 42,942 05 27,242.50 2,400.00 45,342.05 2,400.00 2,400.00 47,742.05 21 00 47,763.05 2,421 00 October 10, 2005 I)CSIC', ;40.0 .0 NS n ;rC CN ;2 1 :,FN: ;a CON"RtCTINC Attention: Jamie Verbrugge. City Administrator City of Rosemount 2875 145` St. W Rosemount, MN 55065 Dear Mr. Verbrugge S +RAMC ©N I have attached hereto a recap of the bid results for the Fire Station project based upon the public bid opening which we had at City Hall on Thursday, September 29, 2005. These results were reviewed with City Council at the conclusion of their regular meeting Tuesday, October A. At the City Council meeting, we were directed by Council lo further investigate the reasons for the lack of bids and the high bid cost relative to the cost estimate In addition, we were to recommend options for moving forward. As we discussed with Council, there were a total of 89 bids opened and publicly read at the bid opening As shown, some categories had a number of bids while some were limited to only one or two. In a Jew cases, we did not get any bids for a particular contract. Normally, we would anticipate somewhere between 110 and 140 bids for a project of this type with a similar breakdown of contract work scopes We made a significant effort to market this project to the held of potential bidders. We sent the plans and specifications to nine different "plan rooms" operated by various builders' exchanges. We sent over 200 faxes to potential bidders inviting them to bid and Informing them of how to obtain plans. We had 3 individuals In our office including project manager Scott Mohs making personal phone calls from our database of cent actors. We posted the bid documents on our own web site and invited contractors to download them from there directly. We have notes, Fax records, plan holder lists to confirm that This work was done and as I stated to the Council, we did go beyond our normal effort in this area because we were concerned about the impact of the energy spike and the hurricane on our bid results. As I stated in my comments to the Council I believe that there are four separate reasons that we can attribute for the tower quantity of bids than expected and the higher bid costs than our June estimate 1. Energy Costs When we put together our most recent cost estimate in June, gas prices at the puinp were about $2 per gallon. in the weeks prior to the bid, there was a spike in this cost to over S3 The energy costs affect all contractors bidding to some extent, some more than others_ Particularly, the timing of our project with construction planned for winter months, this probably had a bigger impact than it otherwise would have 2. Hurricane Katrina This event occurred just prior to the bid opening. In the days following this disaster, there was a considerable amount of confusion in our industry related to the availability of labor and materials I have attached an article from Engineering Nevis Record that speaks to this effect. The timing of the Eire Station bid with Katrina could not have been worse it created a lot of uncertainty in the marketplace just when we were getting ready for bid day. To a large degree, this uncertainty has dissipated in the last two weeks. 1 I ,6.-,• F ur,,ir 1•4)=d n r .irCi 1 Fagan, MIoresat9 55121 -15 ;6 1 Te.: 651 3 I rex 651379.909 [nail _utern` arnconconst .Ction.cc,rn 1''Y/ebsils; Www.Anicyrtg t,uctN .c.ri City of Rosemount, October 10, 2006 Page 2 3. Costs Under- estimated or items rnissed in June Cost Estimate- Our estimating procedures normally have resulted in bid results within a few percent of our cost estimates. When we compare the estimate set of plans from June to the bid documents, there are some items that we missed in our estimate and some that we underestimated. I believe that the sum of these is less than $75,000. It can also be said that when we completed our latest estirnatc in June, we were told by the architect, Mark Vetter, that he believed our estimate was too high. 4 Items on Lid Plans not enticioaled. In addition to items missed or underestimated noted above, thei e are a number of items that were not anticipated in the June estimate based upon the plans we had at that time, the understanding of what would be included in the final plans, and our past experience with Fire Station 1. The sum of these items, in our opinion, could result in cost savings of $100 150,000 if redesigned or re- specified and le-bid. This is assuming that the basic design and size of the budding would not change. We are preparing a listing of these items to review with the architect and staff. If some of these items can be reduced, eliminated, or re- specified, a significant savings could be realized in re- bidding the project, We need to keep in mind that re- design fees would need to be deducted from potential cost savings The four reasons above are somewhat qualitative and difficult to quantify, We know that the bids resulted in a cost overage of approximately 5400,000. In my opinion, the approximate affect of the four causes above could be reduced to the following 1, Energy Costs 2, Katrina 3, Underestimated or missed items 4 Design /spec items not anticipated 25% ($100k) 25% (100k) 20% (BOk) 30% ($120k) We have specific recommendations for moving forward with this project with the goal of providing a quality building that meets the programmed needs of the Owner witlun the budget established. 1. Reject the bids 2. Engage in a series of value engineering sessions with Owner, Architect, and CM Involved to determine which items can be reduced or redesigned with minimal design effort and maximum cost savings Revise plans and specifications accordingly through this process and re -issue for bids in early January. Note that we are not suggesting a reduction in the size or layout of this building. 3. Re bid the entire project as revised with a bid date in late January, 2006. This is typically the best time of the year to get competitive bids on projects. 4. Start construction in late March or early April when winter conditions end. City of Rosemount, October 10, 2006 Page 3 As we discussed with Council, there are no guarantees that this plan will result in lower costs. We do not have control over many of the factors that influenced the recent bids (energy cost, natural disaster, economic conditions.) Nonetheless, I am confident that the plan noted above wit( result in much improved bid results without significant sacrifice to the design or function of the budding. I look forward to discussing this in further detail at the Council Workshop this Wednesday. Respectfully, Amcon CM. LLC rc Todd Chrisiopher5on, P E. President cc: Mark Vetter, Vetter Johnson Architects Dawn Weitzel, City of Rosemount Full 3 Q Cost Report 2005 The complete cosfpert with all data and analysis is free to ENR subscribers but can also be purchased for o± $12.95 click here Previous Cost Reports» Welcome to the ENR site Page 1 of 4 talltiCTio ENR business labor THIRD QUARTERLY COST REPORT Materials Katrina Keeps Inflation Roaring 9/26/2005 By Tim Grogan and William .1. Angelo Hurricane Katrina is expected to give inflation in the construchon industry a second wind. Prior to the storm, the industry gradually was recovering from last year's resurgence of inflation. While it is too early to determine the full impact of the storm on construction costs, the uncertainty it has stirred up undoubtedly will lead to higher bids for projects just to cover the new level of risk. Katrina initially shut down projects in the area and put many others on hold. But that will not dent the tremendous demand for labor and materials being generated by the construction industry, which is on course for another record year. We were seeing price increases and Katrina will push them even higher," says Karl Almstead, a vice president of Turner Construction Co., New York City. Almstead was using an annual escalation of 7 to 8% in his estimates, but now expects 10 to 12 "Delivery limes will start to stretch out as resources are redirected to the rebuilding effort," he says. "That affects schedules and eventually prices as some people are willing to pay a premium to get delivery on time." A recent pre Katnna survey of 167 public owners found that 92% of the owners experienced an average increase in their project costs of 13.2% in 2004, says John Dunkerley, chief estimator for PmnacleOne, Phoenix, which commissioned the survey "Katrina wdl only aggravate those conditions," he says. "I had expected industry escalation to slip back to 5% this year. But now I'm expecting Katrina to spike it up over the next 12 to 24 months by 10 to 20% a year." 173 165 157 149 (Photo by Michael Goodman for ENR) "Total construction starts for the U.S. are still expected to rise about 6% in 2005, even with the loss of new construction activity in the Gulf region," says Robert Murray, chief economist for McGraw -Hill Construction, of which ENR is part The major uncertainty relates to the price and availability of building materials, which means in the near -term that the construction industry will continue to adjust to a higher cost structure," he adds. 02 03 04 01 02 03 04 01 0• 2004 2005 20 http:// enr.ecnext.com/comsite5/bin/enr description docview_save.pl ?page= enrdocumen... 10 /10/2005 Welcome to the ENR site Page 2 of 4 Two other studies n _...v n.. completed since the storm 1S52400 struck also see Katrina as having a major impact on 195 construction costs Davis 185 Langdon, the Sacramento based cost consultant, thinks 175 the storm will increase overall 165 costs for residential work 10 to 15% in the impacted 155 Q2 03 04 Ot 02 03 04 0t 02 03 04 01 02 region and 5 to 10% 2003 nationally over the next two years. Nonresidential building costs are expected to rise 5 to 10% locally and less than 6% nationally, says Peter Morris, principal. Specifically, Morris expects to see annual price increases in the range of 20% for lumber, 30% for panel products and 15 to 20% for gypsum wall board. Atlanta -based program manager Boyken International Inc. says that estimates it is using over the next six months include 10 to 15% increases in home related materials and 8 to 10% for commercial building materials Labor costs also will increase significantly, especially in the areas being rebuilt, according to Boyken. It expects premiums of about 20% to lure workers and management to the area. The combined higher labor and materials cost will result in a 15% rise in the cost of construction on all projects, the firm says Silver Lining Not all Industry experts agree that the cost consequences of Katrina will be so dire, at least not for some products. Before the storm, bght markets and wide- spread regional shortages had pushed cement prices up 14.5% for the year, according to the Bureau of Labor Statistics' July producer price index. Some fear the stress from Katrina would worsen this situation. But Ed Sullivan, the chief economist of the Portland Cement Association, Skokie, Ill thinks the affect of Katrina on the national market will be minimal Two cement plants in the area were shut down for 14 days as a precaution, pm "'Pa, temporarily taking 80,000 155 a tonnes off the market In 150 addition, disruptions to the port of New Orleans and 145 barge traffic on the 140 Mississippi River disrupted I Forecast another 800,000 tonnes, 135 02 Q3 CO Ot 02 03 04 01 02 03 04 01 02 says Sullivan PCA estimates 2003 2004 2005 2006 that translates into 1% disruption of the supply for the Northern Mississippi River region and 4% for the lower and mid -river area.'This disruption is relatively small and will be dispersed over a large area;' says Sullivan. The rebuilding of New Orleans, which was almost exclusively supplied by imports, is of greater concern, says Sullivan There are structural limits to the amount of imports that can be brought in and imports already are maxing out at 35 million tonnes a year, he says. 2004 Plastic Construction Products 2005 2005 The massive destruction of homes also has raised concerns about lumber and plywood prices, which reacted quickly to the crisis. Prices for2x4 western spruce had fallen from $460 per Thousand bd ft in 2004 to $286 by last August and then jumped back to $321 when the storm hit, according to Resource Information Systems Inc., a Bedford, Mass.-based forecasting firm. Likewise, prices for 7/16 -in. Northeast oriented strand board fell from $405 per thousand sq ft in 2004 to $245 in August before bouncing back to $325 in reaction to Katrina. http.//enne,cnext.com/comsite5/binfenr_descriPtion_dooview save.pl?p age= enr_documen... 10 /10 /2005 Welcome to the ENR site Page 3 of 4 Nashville -based Louisiana- Pacific Corp. responded by switching production at one key plant in Silsbee, Texas. from siding to OSB to produce about 7 million sq ft quickly. 'We're just watching the market because we find the need for product is usually felt several weeks to months after the storm in the affected areas. We have a new OSB plant coming on line in British Columbia so we are ready to respond," says Mary L. Cohn, L -P corporate affairs manager. RISI expects the price spike to be short- lived. "There is an oversupply in the Industry for both lumber and panel and that will be the driving force in holding prices down," says Paul Jannke, vice president of wood products for RISI. "Demand and prices have been so high for so long that producers have been investing in their mills. In addition, there are some big expansions corning online." he explains. RISI predicts that OSB pnces by next year will decline 34% from today's level to $213 per thousand sq ft or about $32 less than what they were before the storm. It also predicts that lumber prices by next August will decline 15% from today's level to $306 per thousand bd ft. RISI's forecast is based on an anticipated slowdown in the national housing market for economic reasons unrelated to Katrina. 'The industry has the capacity to build 2.1 million [housing] units a year and, even with Katrina, we will be well below that," says Jannke. "We have revised our housing forecast because of Katrina but starts will still start failing off in 2006," says Michele Halickman, budding products analyst for Global Insight, Washington, D.0 The forecasting firm had expected housing starts to decline 3 2% in the first quarter of 2006 and another 4.9% in the second quarter. Now it 1s looking for declines of 2.7% and 4.1%, respectively. sa, 600 51 180 420 300 300 as Sructwelltett L9 Hebar 0 Steel Prices 03 04 01 02 Q3 04 01 02 03 04 QI 02 2003 2004 2005 2X6 Lumber and Plywood Prices 02 03 04 01 02 03 04 01 02 Oa 2003 2004 Forecatl i s90g4 0%10 ttpe roman j Rra44DC 1 I 01 02 2006 Estimators also are closely watching wallboard prices. There are 77 plants in the U.S. and at least two are located in the New Orleans area, says Michael A. Gardner, executive director of the Gypsum Association, Washington, D.C. Through the end of June 2005, shipments were running 5% above last year's strong numbers, he says. "Our facility in New Orleans is not running and we have not been able to assess damage yet," says Robert E. Williams, USG spokesman. 'We have a new facility in Mexico coming on line to make up the wallboard shortfall," but drywall demand will not http:// enr.ecnext.com/comsite5/bin/enr description_docview save.pl ?page =enr doctlmen... 10/10/2005 Welcome to the ENR site Page 4 of 4 peak for at least a year due to Katrina, he says "Wallboard Just isn't needed in the impacted areas yet, but demand is strong nationwide and our 40 plants have been running over 90% capacity for some time now" Katrina will only slow the rate of decline for steel prices, says Global Insight. Structural steel prices fell from $561 a ton in the third quarter of 2004 to $537 this year. "Before Katrina, we had prices falling to $503," says John Anton the firm's steel analyst. By the second quarter of 2006, Anton expects structural steel prices to be back down to $500. 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