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Port of Dbq Logging Demo -ClearMEMORANDUM August13,2003 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Port of Dubuque Logging Properties Building Demolition and Site Clearance Project Sealed bids were received for the Port of Dubuque Logging Properties - Building Demolition and Site Clearance Project. WC Stewart Construction Company submitted the Iow bid in the amount of $69,000, which is 31% under the engineer's estimate. The project will be funded with a $360,000 Federal Economic Development Initiative Grant targeted for property acquisition and site cleanup in the Port of Dubuque. However, the City has not received release of funds from HUD because of ongoing review by the State Historic Preservation Office. Release of the grant funds may be delayed until mid-September. Because of the delay in receiving the release of funds from HUD, the City is not authorized to execute a contract until that time. Public Works Director Mike Koch recommends that the public hearing be held and the plans and specifications approved, but the award of the contract to WC Stewart Construction Company be deferred until the September 2, 2003 Council meeting. This is allowed under the project specifications, which require the contractor to guarantee the bid through September 7, 2003. I concur with the recommendation and respectfully request Mayor and City Council approval. MCVM/jh Attachment CC: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Michael A. Koch, Public Works Director Michael C. Van Milligen ~ ~ CITY OF DUBUQUE, IOWA MEMORANDUM August 13, 2003 TO: FROM: SUBJECT: Michael C. Van Milligen, City Manager Michael A. Koch, Public Works Director ,~,~ Port of Dubuque Logging Properties Building Demolition and Site Clearance Project INTRODUCTION The following is a request to delay the award of the construction contract for the Port of Dubuque Logging Properties - Building Demolition and Site Clearance Project until the September 2, 2003 Council meeting. BACKGROUND The Demolition and Site Clearance Project includes: the complete demolition of existing structures; the excavation, removal, clean-up, and disposal of all building materials from the former Miller Logging and the Dubuque Hardwoods properties; and the disconnection and abandonment of both City and public utilities to the site. To comply with DNR and federal regulations and to reduce the potential liability of the City, the contractor will be required to dispose of all solid waste demolition materials at the Dubuque Metropolitan Area Solid Waste Agency Landfill. The City, however, shall incur all associated landfill solid waste disposal costs that are estimated at $50,000 to $75,000. The contractor is responsible for providing an off-site disposal area and transport all solid fill, salvageable or scrap materials to the off-site disposal location. The City will not incur any landfill disposal charges for solid fill, salvageable or scrap materials. BID RESULTS Sealed bids were received on the project on August 7, 2003. WC Stewart Construction Company of Dubuque, Iowa submitted the Iow bid in the amount of $69,000. This amount is 31% under the engineer's estimate. A summary of the bids received is as follows: Contractor Name WC Stewart Construction Company Dubuque Barge & Fleeting Service Portzen Construction Tschiggfde Excavating Drew Cook & Sons Excavating Bid Amount $ 69,000 76,245 79,900 82,200 95,450 PROJECT FUNDING The project will be funded with a $360,000 Federal Economic Development initiative Grant targeted for property acquisition and site cleanup in the Port of Dubuque. However, the City has not received release of funds from HUD because of ongoing review by the State Historic Preservation Office. Release of the grant funds may be delayed until mid-September. The summary of the project costs is as follows: Estimate Bid Award Logging Properties Site Demolition (Dubuque Hardwoods, Miller Logging Site) Landfill Disposal Cost Total Project Cost $100,000 $ 69,000 $ 50,000 $ 50,000 $150,000 $119,000 Because of the delay in receiving the release of funds from HUD sometime in about mid- September, the City is not authorized to execute a contract until that time. At the September 2, 2003 Council meeting, City staff should have more information on the anticipated date of the HUD release of funds. Two options exist with regard to the award of this contract. The first would be a conditional award with a voluntary extension of the bid guarantee from the contractor beyond the normal 30-day period, or by September 2, HUD may have already released the funds and the award would be straightened with no contingencies. Knowing this release date at the time of the award will allow the City to make a more informed award of this contract. RECOMMENDATION I recommend that the award of this contract to WC Stewart Construction Company be deferred until the September 2, 2003 Council meeting. This is allowed under the project specifications, which require the contractor to guarantee the bid through September 7, 2003. The public hearing and the adoption of the final plans and specifications were set for August 18, 2003 when the project was initiated, it is, therefore, necessary that the public hearing proceed as planned and that the project plans and specifications are given final approval at this meeting. ACTION TO BE TAKEN The City Council is requested to hold the public hearing on the project and to adopt the Resolution Approving the Final Plans and Specifications. The City Council is requested to defer the award of the contract for the Port of Dubuque Logging Properties - Building Demolition and Site Clearance Project to WC Stewart Construction Company until the September 2, 2003 Council meeting. Prepared by Robert D. Schiesl, Civil Engineer cc: Pauline Joyce, Administrative Services Manager Bill Baum, Community and Economic Development Director Pam Myhre, Community and Economic Development Rich Russell, Building Services Manager Jim Kolf, Durrant CITY OF DUBUQUE - ENGINEERING DIVISION BID TABULATION FORM PROJECT: Port of Dubuque Logging Properties Building Demolition and Site Clearance Project DATE: Thursday, August 7, 2003 BIDDER NAME: WC Stewart Construction Company BID ALTERNATE NO.1 (A) For the LUMP SUM AMOUNT OF, Dollars ( NO BID ) (B) Salvage Value Credit, the LUMP SUM AMOUNT OF, Dollars ( NO BID ) NET AMOUNT FOR BID ALTERNATE NO.1, equal to Part (A) minus Part (B) for the LUMP SUM AMOUNT OF, Dollars ( NO BID ) BIDDER NAME: Tschiggfrie Excavating BID ALTERNATE NO.1 (A) For the LUMP SUM AMOUNT OF, Dollars ( NO BiD ) (B) Salvage Value Credit, the LUMP SUM AMOUNT OF, Dollars ( NO BID ) NET AMOUNT FOR BID ALTERNATE NO.1, equal to Part (A) minus Part (B) for the LUMP SUM AMOUNT OF, Dollars ( NO BID ) BID ALTERNATE NO.2 (A) For the LUMP SUM AMOUNT OF, Dollars $69.000~00 BID ALTERNATE NO.2 (A) For the LUMP SUM AMOUNT OF, Dollars $82.200.00 BIDDER NAME: Dubuque Barge & Fleeting Service BID ALTERNATE NO.1 (A) For the LUMP SUM AMOUNT OF, Dollars ( NO BID ) (B) Salvage Value Credit, the LUMP SUM AMOUNT OF, Dollars ( NO BID ) NET AMOUNT FOR BID ALTERNATE NO.1, equal to Part (A) minus Part (B) for the LUMP SUM AMOUNT OF, Dollars ( NO BID ) BID ALTERNATE NO.2 (A) For the LUMP SUM AMOUNT OF, Dollars ~76~245.00 BIDDER NAME: Portzen Construction BID ALTERNATE NO.1 (A) For the LUMP SUM AMOUNT OF, Dollars ( NO BID ) (B) Salvage Value Credit, the LUMP SUM AMOUNT OF, Dollars ( NO BID ) NET AMOUNT FOR BID ALTERNATE NO.1, equal to Part (A) minus Part (B) for the LUMP SUM AMOUNT OF, Dollars ( NO BID ) BIDDER NAME: Drew Cook & Sons Excavating BID ALTERNATE NO.1 (A) For the LUMP SUM AMOUNT OF, Dollars ( NO BID ) (B) Salvage Value Credit, the LUMP SUM AMOUNT OF, Dollars ( NO BID ) NET AMOUNT FOR BID ALTERNATE NO.l, equal to Part (A) minus Part (B) for the LUMP SUM AMOUNT OF, Dollars ( NO BID ) BiD ALTERNATE NO.2 (A) For the LUMP SUM AMOUNT OF, Dollars $95,450~00 BID ALTERNATE NO.2 (A) For the LUMP SUM AMOUNT OF, Dollars $79,900.00 RESOLUTION NO. 292-03 RESOLUTION ADOPTING PLANS AND SPECIFICATIONS Whereas, on the 16th day of July, 2003, plans, specifications, form of contract and estimated cost were filed with the City Clerk of Dubuque, Iowa for the Port of Dubuque Logging Properties - Building Demolition and Site Clearance Project. Whereas, notice of headng 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, adopted and approved this 18th day of Auqust ,2003. Patricia A. Cline, Mayor Pro-Tem Jeanne F. Schneider, CMC, City Clerk