ARC Transfer Center Phase I_Rejction of Bids
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Recommendation to Reject Bids Received in Response to RFB for the
Construction of the ARC Transfer Center Phase I Project
DATE: September 12, 2012
Director of Transit Operations Barbara Morck recommends rejection of all bids received
for the construction of the Area Residential Care Jule Transfer Center Phase I Project
and recommends the project go through value engineering and redesign because all
bids exceeded the budget.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/ AAh kt1&1
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Barbara Morck, Director of Transit Operations
Dave Heiar, Economic Development Director
Kelley Deutmeyer, Executive Director of ECIA
THE CITY OF Dubuque
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DUBiaFE AII- America City
1
Masterpiece on the Mississippi
2007
TO: Michael Van Milligen, City Manager
FROM: Barbara Morck, Director of Transit Operations
CC: David Heiar, Economic Development Director
Kelley Deutmeyer, Executive Director of ECIA
SUBJECT: Recommendation to Reject Bids Received in Response to RFB for the
Construction of the ARC Transfer Center Phase I Project
DATE: September 10, 2012
BACKGROUND
In August 2010 staff of ECIA, The Jule and Area Residential Care (ARC) began
collaborating on a construction of a transfer center, to be located at the new ARC, Inc.
facility located at the JFK Circle (the old Econo Foods building). The parties agreed to
pursue the project which, based on cost, was been split into two phases: Phase I is to
be a canopy attached to the new ARC facility that will offer protection from the weather
for passengers waiting to board and de- boarding from fixed route and paratransit buses.
Phase I also allows The Jule's Bus Operators access to the building's restroom
facilities.
DISCUSSION
In October 2010 a Public Transit Infrastructure Grant (PTIG) for $298,357 was awarded
for the Phase I construction to The Jule. The PTIG funding requires a 20% local match,
which is being provided by ARC, Inc. in the form of a "soft match" that has a value of
$74,859. The "soft match" used for this project consists of improvements that have been
made by ARC, Inc. in the pavement in and around the areas that will be used by The
Jule's buses (e.g. parking lot, gated access to rear driveway, driveways,) the value of
land that is to be covered by the canopy, that will be set aside as travel lanes in and out
of the parking lot, and the parking spaces that have been set aside for use by "park -n-
ride" transit passengers.
On March 28, 2012 City Council awarded IIW a contract in the amount of $52,900. This
contract is for the final design, compilation of construction documents, construction bid
and oversight of the construction of the Phase I canopy ($48,440) and the Phase II
Conceptual design ($4,460). IIW worked with a project committee comprised of City
staff (David Heiar), Jule Staff (Barbara Morck and Jodi Johnson), ECIA staff (Mark
Munson), ARC staff (Jon Romaine and Karl Stieglitz), and a member of the Transit
Advisory Board (Matt Esser) in the design elements of the canopy. In May 2012 the
committee came to agreement on the final design. Blueprints and required construction
documents (e.g. building plans and specifications) were prepared and a Request for Bid
(RFB) release through a Public Bid process on July 18, 2012, with a closing date of
August 28, 2012.
On August 28th at 2pm Kevin Firnstahl /City Clerk opened the five (5) bids that had been
submitted in response to the RFB. Two (2) of bids were rejected outright for failing to
submit the required Certifications and Assurances as outlined in the RFB. The
remaining three (3) bids were reviewed and found to be complete.
The amount of funding available for construction is approximately $230,000. The base
bids submitted by the 3 eligible responders exceeded that amount by as much as
$95,000, and even when taking into consideration the Alternative Add /Deductions, the
lowest bid came in $47,000 over the amount budgeted for the construction portion of the
ARC project. Shortly thereafter I met with Mark Fassbinder /IIW to discuss this dilemma
and immediately began working with him to identify where some savings in the project
could be found that would then reduce the overall cost of construction. In the meantime
I spoke with Barry Lindahl /City Attorney about the situation and he concurred that it
would be best to recommend to City Council that all bids be rejected, and that the bid be
re- released once the necessary changes have been made to the project.
On September 4, 2012 Mark Fassbinder /IIW and I met again to discuss the changes in
the project that would address the budget gap, such as the type of material used for the
canopy roof, and the removal of metal sheeting from the supporting rafters. The revised
set of plans and documents should be completed within the next several weeks, and I
anticipate submitting a recommendation to City Council for the (re- )release of a Request
for Bid (RFB) for the ARC Transfer Center Phase I Project.
RECOMMENDATION /ACTION STEP
I recommend that the City Council rejects all bids received in response to the ARC
Transfer Center Phase I Project's RFB.
ARC TRANSFER CENTER CANOPY
PHASE I — 2012 PROJECT
BID DATE: August 28, 2012 @ 2:00 p.m.
BID OPENING TABULATION FORM
Contractor
Conlon Construction
Addenda
Bid Security
10%
(must be
on inal
x
Required
State & Federal
Clauses, Certifications
& Assurances
Attest
(Signed)
Pro osaI
x
Total Base Bid Lump
Sum Price
$299,400.00
Altemate
x
T12
x
Attachment
A
Attachment
B
Attachment
C
Attachment
D -1
Attachment
D -2
1
Add/
Deduct
- $23,800
2
Add/
Deduct
- $2,600
3
Add/
Deduct
- $46,300
Klauer Construction
x
x
x
x
$291,000.00
+$52,996
- $1,800
- $35,079
Portzen Construction
x
x
x
x
x
x
x
x
x
$307,700.00
+$95,000
- $4,000
- $32,000
Taylor Construction
x
x
x
x
x
x
x
x
x
$325,000.00
+$99,000
- $4,000
- $30,000
Tri -Con Construction
x
x
x
x
x
x
x
x
x
$319,000.00
+$73,000
+$4,500
- $42,000
Construction Budget
$230,000.00
IIW Project No.: 11095 -01