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POD Parking Facility Extension of Bid_Kraemer BrosTHE CITY OF DUB UE Masterpiece on the 1Vlississippi MEMORANDUM August 22, 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Port of Dubuque Public Parking Ramp On July 25, 2007, the City of Dubuque opened the sole bid from Kraemer Brother LCC for the construction of the Port of Dubuque Public Parking Ramp. The bid specifications allowed the City 30 days to decide if there was to be a bid award. To award the construction bid the City must first have financing in place. The source of financing was to be a $6.35 million cash contribution by the Diamond Jo and the sale of bonds. The source of the bond repayments is the property taxes from the new Diamond Jo gaming facility and a corporate guarantee from the Diamond Jo's parent company, Peninsula Gaming, LLC, to cover all the debt payments. To cover all the debt payments through the property tax a minimum assessment agreement is required. A company that specializes in marketing bonds, Baird, was hired to sell the bonds. Baird advises that due to market conditions, they were unable to sell the bonds. Baird believes that if they are given until September 19, 2007 they will be able to sell the bonds. Kraemer Brothers has agreed to an amendment of the bid specifications to allow the City through September 19, 2007 to decide if there can be a construction bid award. There might be some cost for this extension, and that information will be available soon. Economic Development Director Dave Heiar is recommending approval of the changes to the bid specifications allowing the City through September 19, 2007 to make a decision on the award of a construction contract. I concur with the recommendation and respectfully request Mayor and City Council approval. ,, ~l ~ ~2 Michael C. Van Milligen MCVM/LW Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Bill Noth, Ahlers & Cooney, PC Natalie Schramm, Peninsula Gaming Tim Conlan, Conlan Construction Kevin Eipperle, Durrant Group Teri Goodmann, Assistant City Manager Gus Psihoyos, City Engineer Dave Heiar, Economic Development Director Steve Sampson-Brown, Engineer THE CITY OF DUB E MEMORANDUM Masterpiece on the Mississippi August 22, 2007 TO: Michael Van Milligen, City Manager (~ FROM: David J. Heiar, Economic Development Director' 1-~ SUBJECT: Port of Dubuque Public Parking Facility Bond Saies INTRODUCTION To provide an update on the Port of Dubuque Public Parking Facility. BACKGROUND On July 25, 2007, the City opened the sole bid (Kraemer Brothers, LLC) received for the proposed construction of the Port of Dubuque Public Parking Facility. Since that time countless staff hours have been committed to reviewing bid alternates and negotiating with the Diamond Jo on what items should be included in the parking ramp. At the same time, Baird, a company that specializes in the sale of bonds, has been working with the Diamond Jo legal counsel and City staff to produce the official statement in preparation for the sale of bonds to finance the public parking facility. The City proposes to use TIF revenues from the construction of the expanded Diamond Jo facility to repay the bonds. It was agreed that a minimum assessment agreement would be necessary to provide an adequate revenue stream for repayment of the bonds. The bonds would also be backed by a corporate guarantee from the Diamond Jo's parent company, Peninsula Gaming, LLC. Since these are taxable bonds, the interest rate was anticipated to be about 2% above the regular municipal bond rate. Baird has been in the market place for the past two weeks promoting the Port of Dubuque projects and the sale of the bonds necessary to finance the Parking Ramp project. Unfortunately, no one was able to foresee the volatile market place that has materialized in the last week and a half. According to the Baird underwriters, the marketplace is showing little interest in buying bonds. Most of the usual buyers are reevaluating their current portfolios and have no interest in buying corporate bonds. As of late yesterday afternoon, August 21, Baird was unable to find a buyer for the bonds. The underwriters have indicated that the reasons given by buyers for this lack of interest has nothing to due with the project, but rather is directly related to the current market situation. However, one prospective buyer expressed some interest if he could have a couple more weeks for additional due diligence. This would include a visit to Dubuque to get a first hand feel for the project. The problem with this scenario is that our bid from Kraemer Brothers, LLC, for the construction of the parking ramp was good for 30 days after the bid opening. The bid is good through Friday, August 24. At the request of the Diamond Jo, Project Manager, Steve Brown has been in discussions with Kraemer Brothers, LLC to see if they would agree to hold their bid for longer than 30 days as stated in our bid specifications. The construction company is willing to allow an extension of time for award of the bid in an effort to secure bond financing. Kraemer Brothers, LLC is currently in contact with their sub-contractors to verify if any part of their original pricing needs to be adjusted for inflation since the bid was submitted. Although we do not know what this potential cost increase may be at this time, Kraemer Brothers, LLC anticipates getting this number to us by the end of the day on August 24. Any cost increases would be included as part of the consideration of future bid award, if we are able to secure financing for this project. Kraemer Brothers, LLC stated that this delay in the start of construction would necessitate the need to push the completion dates from September 12, 2008 to October 31, 2008 for Phase I and from November 11, 2008 to January 16, 2009. The Diamond Jo has verbally indicated their approval of these completion dates. This time extension would also require an amendment to the Development Agreement to accommodate these revised dates. If this amendment is approved by the City Council, Baird will be encouraged to continue to aggressively market the bonds in an effort to secure funding prior to this new deadline. RECOMMENDATION/ACTION STEP I recommend the City Council approve the attached resolution which would amend the Port of Dubuque Parking Garage Project contract, plans and specifications to defer the award of bids until September 19, 2007. Attachments F:\USERS\DHeiarlDiamond Jo\Port of Dubuque Parking Facility Bond Sales.doc Preparers Barrv A. Lindahl, Esq. Address: Suite 330, 300 Main Street. Dubuque, IA 52001 Telephone: (563) 583-4113 RESOLUTION NO. 444-07 APPROVING AN AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND KRAEMER BROTHERS, LLC EXTENDING THE BID FOR THE CONSTRUCTION OF THE PORT OF DUBUQUE PUBLIC PARKING FACILITY WHEREAS, City has heretofore approved plans, specifications and form of contract for the Port of Dubuque Public Parking Facility (the Project) which, among other things, allow the City up to 30 days to accept or reject bids for construction of the Project; and WHEREAS, by Resolution No. 372-07 adopted July 2, 2007, the City Council authorized the advertisement for bids for the construction of the Port of Dubuque Public Parking Facility Project; and WHEREAS, City opened bids for construction of the Project on July 25, 2007, and Kraemer Brothers, LLC (Kraemer) was the only bidder that submitted a bid at such time; and WHEREAS, Kraemer's bid expires on the 24th day of August, 2007; and WHEREAS, City has requested Kraemer to extend its bid through September 19, 2007; and WHEREAS, in consideration for City forbearing the rebidding of the Project, Kraemer is willing to extend its bid on the terms and conditions set forth in the attached Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA AS FOLLOW: SECTION 1. The Agreement attached hereto is hereby approved. SECTION 2. The Mayor is authorized and directed to sign this Resolution and that Agreement on behalf of the City of Dubuque. Passed, approved, and adopted this 22nd day of August, 2007. D. Buol, Mayor Attest: Jeanne F. Schneider, CMC City Clerk r ~4 AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND KRAEMER BROTHERS, LLC This Agreement, dated for reference purposes the 2? Z day of August, 2007, is made and entered into by and between the City of Dubuque, Iowa (City) and Kraemer Brothers, LLC (Kraemer). WHEREAS, City has heretofore approved plans, specifications and form of contract for the Port of Dubuque Public Parking Facility (the Project) which, among other things, allow the City up to 30 days to accept or reject bids for construction of the Project; and WHEREAS, by Resolution No. 372-07 adopted July 2, 2007, the City Council authorized the advertisement for bids for the construction of the Port of Dubuque Public Parking Facility Project; and WHEREAS, City opened bids for construction of the Project on July 25, 2007, and Kraemer was the only bidder. that submitted a bid at such time; and WHEREAS, Kraemer's bid expires on the 24th day of August, 2007; and WHEREAS, City has requested Kraemer to extend its bid through September 19, 2007; and Whereas, in consideration for City forbearing the rebidding of the Project, Kraemer is willing to extend its bid on the terms and conditions set forth herein. NOW, THEREFORE, IT IS AGREEMENT BY AND BETWEEN THE PARTIES AS FOLLOWS: SECTION 1. The Award of Contract date as listed in the Contract Documents is hereby changed from August 14, 2007 to September 19, 2007. SECTION 2. Kraemer agrees that its bid on the Project, a copy of which is attached hereto, shall be valid through September 19, 2007. SECTION 3. If a contract for the construction of the Project is awarded by City to Kraemer on or before September 19, 2007, the contract shall provide that the Phase 1 completion date shall be extended from September 12, 2008 to October 31, 2008, and the Phase I I completion date shall be extended from November 11, 2008 to January 16, 2009. SECTION 4. City acknowledges that Kraemer may adjust its bid by an amount which is attributable solely to the costs resulting from such extension, and Kraemer shall as soon as practicable but not later than the close of business on August 24, 2007 provide City with a revised bid showing such costs and the submitted revised cost shall be added to the base Contract Amount for the Project prior to any Award of Contract by City. SECTION 5. Except as set forth herein, all other provisions of the Contract Documents for the Project are hereby ratified, confirmed and approved and shall be binding on City and Kraemer. CITY OF DUBUQUE, IOWA By: D Roy . Buol, Mayor KRAEMER BROTHERS, L,LC By: By: Jeanne Schneider, City Clerk Its: Ass'r V:ts+ ' SECTION 004100 BID PROPOSAL SCHEDULE PROJECT: Port of Dubuque Parking Facility BID TO: City of Dubuque Office of City Clerk City Hall, 50 W. 13th Street Dubuque, Iowa, 52001 BID FROM: Kraemer Brothers, LLC BID FORM 1A 925 Park Avenue Plain, WI 53577 The undersigned BIDDER agrees, if the Bid is accepted, to enter into an agreement with CITY, in the form included in the Bidding Documents, to perform and furnish the Work as specified or indicated in the Bidding Documents for the Bid Price and within the Bid Time indicated in this Bid and in accordance with the other terms and conditions of the Contract Documents. 2. In submitting this Bid, BIDDER represents, as more fully set forth in the Agreement, that: a. This Bid will remain subject to acceptance for 30 days after the day of Bid opening; b. The CITY has the right to reject this Bid and to waive any informalities in the bidding; c. BIDDER accepts the provisions to the Instructions to Bidders regarding dispositions of Bid Security; d. BIDDER will sign and submit the Agreement with the Bonds and other documents required by the Bidding Requirements within 10 days after the date of CITY'S Notice of Award; e. BIDDER has examined copies of all the Bidding Documents; f. BIDDER has visited the site and become familiar with the general, local and site conditions; g. BIDDER is familiar with federal, state, and local laws and regulations; h. BIDDER has correlated the information known to BIDDER, information and observations obtained from visits to the site, reports and drawings identified in the Bidding Documents and additional examinations, investigations, explorations, tests, studies and data with the Bidding Documents; i. This Bid is genuine and not made in the interest of or on behalf of an undisclosed person, firm or corporation and is not submitted in conformity with an agreement or rules of a group, association, organization or corporation; BIDDER has not directly or indirectly induced or solicited another Bidder to submit a false or sham Bid; BIDDER has not solicited or induced a person, firm or corporation to refrain from bidding; and BIDDER has not sought by collusion to obtain for itself an advantage over another BIDDER or over OWNER. 1 3. BASE B1D 4. ALTERNATES (Bidder Note: Cross out the word 'add' or "deduct that does not apply) 'North Fagade b,s3~ Add l ~ht1rY11L0 .P ,! Ct ~ .M~~ ($ ~L~ - Q~--) (use wo~ (figures) Attemate N . 1 B: o~ Facade ,~y Add / ($ ~ (~~ ~[~6~ . O('~ ) (use wo figures) ~~ainting of Column ;. ~. Add/art ($ r~ ©00 , f7~1 ) (use words) (figures) ~• S: .ower oor Operators at Restroo s Add l ($ ~ Q , ~ ~ ('r ©T1 ) (use words) (figures) 4~ower Door Operators at Elevator Lobb' s Add / ~tei~ ($ ~~'7 OO ~ . tin ) (use words) (figures) "~`~' ,'~` Covdominium Parking and Acc s Add / ($ ~~QC~~) • (use words) (figures) Attemate No. 6: 'Eevel One Sla on r de 1 Deduct ($ g ~ . ~ ©®, ~a ) (use ds) (figures) Alternate No. 7: Number of days that Alternate Sids will main subject to acceptance Add / `fi ($~ ...~~-) (use words) (figures) BIDDER will complete the Work in accordance with the Contract Documents For the fnllnwinn• 5. ALLOWANCES Bid includes $30,000.00 for two 2-sided LED screens to be installed in monumental signs as shown on Sheet A6.3 6. UNIT PRICES. If the required quantities of the items listed below are increased or decreased by Change Order, the adjustment unit prices set forth below shall apply to such increased or decreased quantities: Unit Price No. 1 -Length of Auger Cast Grout Piles $ jf9 . f7n (linear foot) Unit Price No. 2 -Additional Auger Cast Grout Piles $ 010 ~ O('7 (linear foot) Unit Price No. 3 -Deletion of Auger Cast Grout Piles $ ~ ~ . ~O (linear foot) Unit Price No. 4 -Unexpected Debris $ ~ ~ rU . ~ (cubic yard) Unit Price No. 5 -Soil Excavation $ ~ ~ ~t'~ (cubic yard) Unit Price No. 6 - Backfill Material $ 1 ~ , trai„~_(ton) Unit Price No. 7 -Rock Excavation $ ~ ~ ~L~~_(ton) Unit Price No. 8 -Reinforcing Steel $ f ~~ (~ (o ~ (~~ (ton) 7. TIME & MATERIAL RATES: (Required To Be Submitted w/ Base Bid) • Labor Wage; Plus .~Q_% Labor Burden; Plus ~_% Overhead & Profit • Material; Plus Sales Tax, Plus ~% Overhead & Profit • Equipment @ Area Rate; Plus _ f 0 % Overhead & Profit • Subcontract; Plus ~_% Overhead & Profit 8. LIST OFSUB-CONTRACTORS AND SUPPLIERS BIDDER shall provide a list of the sub-contractors and suppliers included in their bid proposal within 70 days of the bid date. The list sha{I include the following: Auger Cast Piles Excavation Ready-mix Concrete Concrete Reinforcement Post Tensioning Masonry Aluminum Curtain Wall Mechanical Electrical Plumbing 9. BIDDER agrees that the Work will be substantially complete and ready for final payment in accordance with the General Conditions on or before the dates or within the number of calendar days indicated. 3 10. The following documents are included and made a condition of this Bid: a. Required Bid Proposal Form -Form 1 B. b. Required Bid Bond -Form 2 - or other approved Bid Security provided. BID PROPOSAL SUBMITTED on PRINCIPAL: Kraemer Brothers, LLC Contractor (Finn Name) Individual ( )Partnership ()Corporation (}{) Limited ability Company By: S g cure Asst. Vice President Title (608) 546-2411 Phone July 25 , 2007 925 Park Avenue Business Address Plain City WI 53577 State Zip July 25, 2007 Date (608) 546-2509 Fax END OF SECTION 004100 4 SECTION 004200 BID PROPOSAL FORM BID FORM 1B The bidder hereby certifies that they are the only person or persons interested in this proposal as principals; that an examination has been made of the plans, specifications, and contract form, including the special provision contained herein, and of the site of the work, and the bidder understands that the quantities of work shown herein are approximate only and are subject to increase or decrease; and further understand that all quantities of work, whether increased or decreased, are to be performed at the unit price as stipulated herein; the bidder proposes to furnish all necessary machinery, equipment, tools, labor and other means of construction, and to furnish all materials specified in the manner and time prescribed and to do the work at the prices herein set out. Accompanying this proposal in a separate envelope is a cashier's or certified check. payable to the City Treasurer, City of Dubuque, drawn on a bank in Iowa or a bank chartered under the laws of the United States, in the amount of ten percent (10%) of the bid submitted; or a bid bond in the penal sum of ten percent (10%) of the bld submitted executed by the bidder and an acceptable Corporate Surety. It is understood that this proposal guarantee will be retained in the event the formal contract or bond is not executed, if award is made to the undersigned. ` The bidder further agrees to execute a formal contract and bond, if required by the contract ' documents, within seven (7) days of the award of the contract by the City Council, and that they will commence work on or about ten (i 0) days after the date of the contract, and will complete the work within the specified contract period or pay the liquidated damages stipulated in the contract documents. i The bidder acknowledges receipt of the following addendum: Addendum No. 1 Dated: July 2, 2007 Addendum No. 2 Dated: July I7, 2007 Addendum No. 3 Dated: July 19, 2007 PRINCIPAL: t Kraemer Brothers, LLC 925 Park Avenue 1 Contractor Address Individual ( ) Partnership O Corporation ~) Plain Limited Liability Company City I By: WI 53577 i ature State Zip Asst. Vice President July 25, 2007 ~ Tide Date Note: To be completed by out of State bidders. The State of (j is cmy~et ~ does ( ) /does not ~) utilize a percentage preference for in-state bidders. The amount of preference is _...~._'percent. END OF SECTION 004200 1