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Kephart Building Improvement ProjectTHE CITY OF ~LTB E Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Kephart Building Improvement Project (CIP 3601976/2601976/1011976) DATE: April 2, 2009 Dubuque All-AmedcaCily .~'.~ 2007 Sealed bids were received for the Kephart Building Improvement Project. City Engineer Gus Psihoyos recommends award of the contract to the low bidder, Klauer Construction, in the amount of $577,992, which is 2.54% under the estimate of probable cost. The roof component was removed from this bid and will be bid as a separate item. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen ~._- ~~µ 1 MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer THE CITY OF Dubuque DUB E "~'~~ 1 ~ Masterpiece on the Mississippi 2007 TO: Michael C. Van Milligen, City Mana FROM: Gus Psihoyos, City Engineer , DATE: April 2, 2009 SUBJECT: Kephart Building Improvement Project (CIP 3601976/2601976/1011976) INTRODUCTION The enclosed resolution authorizes the award of the construction contract for the Kephart Building Improvement Project. BACKGROUND The Kephart Building Improvement Project consists of a remodel to the first floor and basement of the former Kephart Music Building, located at 1157 Central Avenue in Dubuque, Iowa. 1. First Floor - Conversion of the space to the Multicultural Family Center. - Selective demolition. - Addition of a sprinkler system. - Addition of a stairwell and elevator to all levels. - Work in these areas will include wood studs and gypsum board, new finishes, a fireplace, ADA required improvements, new furnishings and new HVAC/electrical systems. - A portion of salvaged materials from the Roshek Building will be re-used, including some bathroom fixtures and accessories, and ceiling tile. 2. Basement - Selective demolition. - Addition of a sprinkler system. - Work will include partial renovation to include stairwell and elevator, new mechanical and electrical spaces. 3. Second Floor - No work will occur at this time. Other Miscellaneous exterior work will include masonry tuckpointing and reworking the existing storefront to include a new entry. The existing roof materials will be removed and replaced on the high and low roofs with new insulation and a single ply membrane. JUSTIFICATION FOR BREAK OUT CONTRACT OF ROOF REPLACEMENT WORK During the bidding process for this project, the Engineering Department requested that Durrant issue an addendum that allowed only for a Tremco roof membrane to be installed as part of this project. The reason for this request was to create an opportunity for inclusion of thin film photovoltaic (PV) solar panels to be installed based on the City pursuing other funding options or during Phase II of the project which is schedule for FY12. After the project was out for bid, the City of Dubuque hosted a two day visit with representatives of Tremco Roofing Inc. on March 17 & March 18. The trip included site visits to numerous City facilities. At the conclusion of the visit, the Engineering Department became interested in further investigation of the apparent unique approach Tremco offers regarding the packaging of installation services and warranties for combined roofing and thin film PV systems. Switching to the specification of the Tremco roof product allowed the opportunity for the Kephart Building Renovation Project to become a pilot project for roof top installation of renewable energy sources. After the change to the Tremco product was issued by Durrant, further discussions with local roofing contractors and Tremco determined that not all local contractors would able to be Tremco certified in time to submit a bid for the roofing work on April 1st. Since an important component to any a pilot project is advancement of knowledge and product evaluation, it was determined after additional discussions with Tremco, the best course of action would be to remove the roof work from the base contract. This would allow for local companies to become Tremco certified in time for a separate roof contract to be bid at the April 20, 2009 City Council Meeting. Tremco is historically a roofing materials manufacturing company that manufactures its own roofing membranes in Cleveland Ohio. Tremco is a multi national company that has been in business since 1928 and holds several national GSA contracts. Their thin film PV product has one of the highest production capacities available. Tremco was the installer of a 1 megawatt PV system at a General Motors manufacturing plant in California. BID RESULTS Sealed bids were received on the project on April 1, 2009. Klauer Construction of Dubuque, Iowa submitted the low bid in the amount of $577,992. This amount is 2.54% under the estimate of probable cost. A summary of the bid proposals received is as follows. Attached is a bid tally summary of all bids received for each contract, along with the Add Alternate amounts. Their were four alternate bid items on the project: Alternate 1 -Automatic Door Openers; Alternate 2 -Light Tubes; Alternate 3 -Roof Membrane (Void - to be bid separately); Alternate 4 -Exterior Roof Fence. Alternate #1 is being recommended for selection. The City has budgeted $851,000 to be available in FY 12 for Phase II of the project which will complete the second floor renovation work. If there is still a need for the unselected alternates, they would be added during the Phase II project. Contractor Name Klauer Construction Epic Construction Portzen Construction Conlon Construction Tricon Construction Kluck Construction '`'`Bid form submitted was incomplete Total Bid Alternate #1 Total Bid ** ~-8-646 ** $ 569,000 8,992 $ 577,992 $ 589,000 7,900 $ 596,900 $ 599,000 6,400 $ 605,400 $ 657,000 9,015 $ 666,015 $ 588,000 92,000 $ 680,000 $ 705,161 5,742 $ 710,903 The City Attorney has recommended rejection of this bid RECOMMENDATION I recommend that the contract be awarded to Klauer Construction in the amount of $577,992. PROJECT COST -BUDGET IMPACT The estimate of probable costs for the Kephart Building Improvement Project is summarized as follows: PROJECT COSTS ESTIMATE AWARD Construction Hard Costs Base Construction Work $ 583,820 $ 569,000 Contin enc - 10% $ 79,700 $ 56,900 Earl Deconstruction Bid Packa a Com leted $ 20,400 $ 20,400 Roof Reconstruction - Se arate Bid Packa e - $ 75,000' Hazardous Material Abatement $ 10,000 $ 10,500 Fixtures, Furnishin s, E ui ment &Com uters $ 32,000 $ 34,000 Communications/Data/Securit $ 25,000 $ 12,500 Total -Bid Project Cost 750 920 768 300 O tional Construction Add Alternates 1 Automatic Door O eners + $ 9,100 $ 8,992 2 Li ht Tubes on Low Roof + $ 8,400 0.00 3 Roof Membrane Void - to be bid se aratel 0.00 4 Low Roof Perimeter Securit Fence + $15,000 0.00 Land and R.O.W. $ 185,000 Project Soft Costs En r./Arch./LEED Cert. Fees $ 61,794 $ 76,7942 Cit En ineerin Fees $ 10,000 $ 10,000 Misc. Costs -Builders Risk Ins., Cleaning, Temp. Si ns, etc. $ 11,000 $ 5,927 Total - Project Soft Costs 82 794 92 721 TOTAL PROJECT COST $833,714 ' $1,055,0'13 'Includes estimated cost for Roof Contract which will be bid separately. 2 Includes additional costs to move break-out Information Technology work into base bid contract and work to bid roof separately. CITY FUNDING SOURCES CIP,No. Fund Descri tian Fundins~ Amount DRA Distribution $ 108,300 3601976/ Sales Tax (20%) $ 43,910 2601976/ CDBG Funds $ 435,532 1011976 GO Bond (TIF Abated) $ 438,597 General Funds $ 28,674 Total City Funding $ 1,055,013 The project will be funded from CIP 3601976, 2601976, and 1011976, with a total of $870,013 in currently remaining available for the project. Additional CDBG funds that have been recently allocated to the City will be used on a portion of this project subject to approval by the community development block grant commission. Among other work, these funds will be required for the selection of the Add Alternate #1 in the amount of $ 8,992. ACTION TO BE TAKEN I recommend that the City Council adopt the attached resolution awarding the Kephart Building Improvement Project to Klauer Construction in the amount of $ 577,992. Prepared by Steve Sampson Brown, Project Manager cc: Jenny Larson, Budget Director Rich Russell, Building Services Manager David Harris, Housing and Development Director RESOLUTION NO. 118-09 AWARDING PUBLIC IMPROVEMENT CONTRACT FOR THE KEPHART BUILDING IMPROVEMENT PROJECT Whereas, sealed proposals have been submitted by contractors for the Kephart Building Improvement Project (the Project) pursuant to Resolution No. 107-09 and Notice to Bidders published in a newspaper published in the City of Dubuque, Iowa on the 6th day of March, 2009. Whereas, said sealed proposals were opened and read on the 1st day of April, 2009, and it has been determined that Klauer Construction of Dubuque, Iowa, with a bid in the amount of $577,992, is the lowest responsive, responsible bidder for the Project. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: That a Public Improvement Contract for the Project is hereby awarded to Klauer Contraction and the City Manager is hereby directed to execute a Public Improvement Contract on behalf of the City of Dubuque for the Project. Passed, approved and adopted this 6th day of April , 2009 Roy D. Buol, Mayor Attest: Kevin S. Firnstahl, Assistant City Clerk