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HomeMy WebLinkAbout2011/04/11 - ADMIN - Minutes - City Council - Regular Iff St. Louis Park OFFICIAL MINUTES MINNESOTA SPECIAL CITY COUNCIL MEETING ST. LOUIS PARK, MINNESOTA APRIL 11, 2011 1. Call to Order Mayor Jacobs called the meeting to order at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity (arrived at 6:38 p.m.), Paul Omodt (arrived at 6:47 p.m.), Julia Ross (arrived at 6:33 p.m.), Susan Sanger, and Sue Santa. Councilmembers absent: None. Staff present: City Manager (Mr. Harmemng), City Attorney (Mr. Scott), Senior Planner (Mr. Walther), Fire Chief (Mr. Stemmer), Public Works Director (Mr. Rardin), Communications Coordinator(Mr. Zwilling), and Recording Secretary(Ms. Hughes). Guests: Brian Hook and Pat Sims (Kraus-Anderson) and Mike Clark(DLR Group KKE). la. Roll Call 2. Resolutions Ordinances, Motions and Discussion Items 2a. Bid Tabulation for Fire Stations Project— Project Nos. 2008-3001 and 2008- 3002 Mr. Walther presented the staff report and a summary of the bids received. He advised that approximately 290 bids were received for this project and the overall total of the bids came in well under the construction estimate. He indicated that six contractors are claiming errors in their bid involving abatement, asphalt paving, aluminum entrances, painting, and mechanical work scopes. Mr. Hook reviewed the Bid Scope Analysis and noted that the bids to be awarded this evening are for the construction contracts only. He stated that there are three alternates included in the total value of the contracts for a vapor mitigation system ($37,750) and two natural gas generators for the two fire stations ($28,000 and $20,700). He noted that it is not known whether the vapor mitigation system will be required until Fire Station No. 1 is demolished. Councilmember Ross requested further information regarding the standard practice used to advertise for bids and specifically how small businesses, minority and/or women- owned businesses are able to access the process for bidding on this type of project. Mr. Walther stated that the City advertises in the local newspaper as well as in the Construction Bulletin. He added that Kraus-Anderson also advertised for bids. Mr. Hook indicated that the availability of work scopes were broke out such that they were small enough to allow small businesses to bid. He noted that the call for bids also went to the St. Paul Builder's Exchange and numerous other bid houses that would reach this particular population. Special City Council Meeting -2- April 11, 2011 Councilmember Sanger asked if there was any outreach to Metropolitan Economic Development Association or the National Association of Women Business Owners. She stated that while it is assumed that small businesses and/or minority businesses would check the normal sources, it is also common practice to notify these organizations so that there is a clear opportunity for them to bid on the project. Mr. Hook replied that there was not specific outreach to those organizations. Mr. Harmening noted that it was assumed that all companies in the construction industry would access these publications through normal channels. Councilmember Finkelstein requested that the City contact these organizations in the future on any large project of this type in the future. Councilmember Ross requested that staff provide further information regarding small businesses that are included in the Bid Scope Analysis. Mr. Walther clarified the information contained on page 9 of the staff report due to a printing error. He stated that the total estimate figure is $2,683,863, the low bid figure is $1,990,599, the variance from estimate figure is $693,264, and the bid figure under the next potential low bidder column is $2,305,725. He noted that this page relates only to those bidders that have indicated there were errors in their bids and does not represent the bottom line for the entire project. He also clarified the information contained on page 8 of the staff report and stated that the estimate figure is $8,563,676, the low bid figure is $8,161,136, the variance from estimate figure is $402,540, and the award amount with alternates figure is $8,246,886. Councilmember Mavity asked how the City will protect itself from unpredictable cost overruns and/or change orders. Mr. Walther stated that Kraus-Anderson, in its role as agency construction manager, is responsible for assisting the City in this regard. He added that the overall budget for the project includes a 4%contingency to cover any change orders for unforeseen, true costs. Mr. Hook discussed the remaining bid scopes analysis for asphalt paving, aluminum entrances/windows, painting, and HVAC work. He stated that after the bid opening, the City was contacted by these firms who claimed mathematical errors in their bids. He explained the HVAC bid from Klamm for $1,478,000 represented a combined bid for both fire stations; Klamm informed the City via fax on March 31st stating that it had made a $300,000 mathematical error in its sheetmetal number, using $415,000 instead of $715,000. Mr. Harmening explained the City's options for these five contractors, noting that the HVAC bid from Klamm has a significant discrepancy in its bid. He stated that the City can choose to let them off based on the error and go to the next potential low bidder or the City can award the bid to Klamm. He indicated that if Klamm does not sign the contract within ten days, the City has the ability to act on Klamm's 5% bid bond and award the contract to the next low bidder. Special City Council Meeting -3- April 11, 2011 Councilmember Mavity asked if the City can release one contractor and not another based on the claimed bid errors. City Attorney Thomas Scott replied that the City is not required to release them all. He also explained the process by which the City would pursue a bid bond. He advised that the City is required to award the contract to the lowest bidder and see if the contractor will sign the contract. The Council discussed legitimate errors in bids on previous projects and the City's actions taken on projects where contractors were released from a project due to errors. Mr. Hook stated that his recommendation was that the City should release Klamm and award the contract to the next low bidder. Mr. Sims discussed the remaining bid errors, stating the asphalt paver missed adding $16,000 to his bid and the aluminum contractor used a $3,200 figure instead of$32,000 in its bid calculation. Mayor Jacobs stated that he was willing to follow the recommendation of the construction managers. Mr. Walther reviewed the bid tabulation for asbestos and hazardous material abatement, noting that the abatement contractor has also claimed a bid error. Councilmember Sanger stated that she felt the City should treat all of the contractors the same and award contracts to all low bidders. It was moved by Councilmember Santa, seconded by Councilmember Omodt, to designate 31 different contractors as the lowest responsible bidders, as identified in the attachment to the staff report, and authorize execution of contracts with those firms for the Fire Stations Project — Project Nos. 2008-3001 and 2008-3002. The total value of the contracts recommended for award is $10,266,250.00. Councilmember Mavity expressed concern about the HVAC bid and the nsks associated with Klamm signing the contract. Councilmember Santa stated that the City and Kraus-Anderson, as construction manager, has a duty to inspect the project and to make sure all work is being performed according to the specifications. The motion passed 7-0. 3. Adjournment The meeting adjourned at 7:41 p.m. fr Nancy Stroth, City Clerk Jeff ,acob Mayor