Education & Conf. Ctr Bid Pkg 2MEMORANDUM
June 24, 2002
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bid Package #2 of the Education and Conference Center
Sealed bids were received for Bid Package #2 of the Education and Conference Center
Project. Building Services Manager Rich Russell and Administrative Services Manager
Pauline Joyce recommend award of the contract to the Iow bidder, Canam Steel
Corporation, in the amount of $440,500, which is 36%, or $246,150 under the
engineer's estimate.
The bid bond submitted by Canam Steel Corporation was signed by the surety but not
by the contractor. Due to the fact that there was only one bidder, no one is
disadvantaged by letting the bond be signed after the opening and the discrepancy
becomes non-material. The contractor has since signed the bid. Both Bill Noth of the
Ahlers Law Firm and Corporation Counsel Barry Lindahl have approved this approach.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Rich Russell, Building Services Manager
Pauline Joyce, Administrative Services Manager
CITY OF DUBUQUE, IOWA
MEMORANDUM
June 24, 2002
TO: Michael C. Van Milligen, City Manager
FROM: Rich Russell, Building Services Manager
Pauline Joyce, Administrative Services Manager
SUBJECT: Bid Package #2 of the Education and Conference Center
INTRODUCTION
The enclosed resolution provides for the award of the construction contract for the Bid
Package #2 of the Education and Conference Center.
BACKGROUND
HOK Venue completed the design and construction documents for Bid Package #2 of
the Education and Conference Center Project. The Durrant Group will be the City's
Project Manager (currently under contract for Project Management of all public
improvements in the America's River Project).
CONSTRUCTION BASE BID
This project provides for the fabrication and delivery to the project site steel joists and
girders. The erection of the steel joists and girders will be performed under a separate
contract.
BID RESULTS
Sealed bids were received for the Education and Conference Center-Bid Package #2
Project on June 20, 2002. Canam Steel Corporation of Woodridge, Illinois submitted the
Iow bid in the amount of $440,500.00. The following is a summary of the bid proposals
received:
Bid
Canam Steel Corporation $440,500.00
DISCUSSION
Upon reviewing the bid proposals received, staff is recommending the bid from Canam
Steel Corporation be approved at this time. The bid bond submitted by Canam Steel
Corporation was not signed. Due to the fact that there was only one bidder no one is
disadvantaged by letting the bond be signed after the opening. The discrepancy then
becomes non-material. They have since signed the bond. Both Bill Noth of Ahlers Law
Firm and Corporation Counsel Barry Lindahl have approved this approach.
The construction documents for the overall conference and education center project are
95% complete. The most recent cost estimate, including the actual bid amount for Bid
Package #1 and 2, is $28,260,943. Included in this estimate is a design contingency
and escalation cost estimate of $1,373,805. Bid alternates would add another $579,839
to this estimate for a total cost estimate of $28,805,989.
Total available funding for the conference and education center construction is
$27,311,950 or $948,913 less than the estimated base bid cost with the design
contingency and escalation amounts. Based on the favorable bidding climate, interest in
this project and the design contingency, staff is convinced that the project will remain
within budget. As this project gets closer to bid, there is less of a reason to maintain the
$800,000 design contingency. The estimate came from a subcontractor to our Project
Manager Durrant Architects. At the last stage, both HOK and Durrant provided a cost
estimate and HOK's number was $800,000 less than Durrant's. Finally, Durrant has
included an escalator of several hundred thousand dollars since the estimate is done in
May and the bid for the structure will be in August. A final estimate will be completed July
9th which is prior to the July 15th City Council meeting where we should order bids for Bid
Package #3.
RECOMMENDATION
We recommend that the construction contract for Bid Package #2 be awarded to Canam
Steel Corporation in the amount of $440,500.00, which is 36% under the engineer's
estimate.
BUDGET IMPACT
The construction cost estimate for the Education and Conference Center- Bid Package
#2 Project is as follows:
Estimate Bid
Construction Contract-Base Bid $686,650.00 $440,500.00
The Education and Conference Center- Bid Package #2 Project is funded from
proceeds from General Obligation Bonds sold in December 2001 and January 2002.
ACTION REQUESTED
The City Council is requested to adopt the attached resolution awarding the construction
contract to Canam Steel Corporation.
CC: Cindy Steinhauser, Assistant City Manager
Mike Koch, City Engineer
Gary Busse, HOK Venue
Jim Kolf, Project Manager
Prepared by: Rich Russell, Buildinq Services Manaqer Address: 50 W. 13~ Street, Dubuque, IA 52001-4864
RESOLUTION NO. 339-02
RESOLUTION ADOPTING PLANS AND SPECIFICATIONS
Whereas, on the 3rd day of June, 2002, plans, specifications, form of
contract and estimated cost were filed with the City Clerk of Dubuque, Iowa for
the Education and Conference Center- Bid Package #2.
Whereas, notice of hearing on plans, specifications, form of contract, and
estimated cost was published as required by law.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
That the said plans, specifications, form of contract and estimated cost are
hereby approved as the plans, specifications, form of contract and estimated cost
for said improvements for said project.
Passed, approved and adopted this 1st day of July, 2002.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
RESOLUTION NO. 340-02
AWARDING CONTRACT
Whereas, sealed proposals have been submitted by contractors for
the Education and Conference Center- Bid Package #2 pursuant to Resolution
No. 296-02 and notice to bidders published in a newspaper published in the City
of Dubuque, Iowa on the 7th day of June, 2002.
Whereas, said sealed proposals were opened and read on the 20th day of
June, 2002, and it has been determined that the bid of Canam Steel Corporation
of Woodfidge, IL in the amount of $440,500.00 was the lowest bid for the
furnishing of all materials and performing the work as provided for in the plans
and specifications.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
That the contract for the above improvement be awarded to Canam
Steel Corporation and the Manager be and is hereby directed to execute a
contract on behalf of the City of Dubuque for the complete performance of the
work.
BE IT FURTHER RESOLVED:
That upon the signing of said contract and the approval of the contractor's
bond, the City Treasurer is authorized and instructed to return the bid deposits of
the unsuccessful bidders.
Passed, approved and adopted this 1st day of July, 2002.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk