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HomeMy WebLinkAbout8A - Millwork Purchase for Library/Resource Center AGENDA ITEM: DISCUSSION: STAFF AGENDA REPORT JULY 19,1999 8A PAUL HOKENESS, PARKS AND RECREATION DIRECTOR BRET WOODSON, ASSISTANT CITY MANAGER. CONSIDER APPROVAL OF RESOLUTION 99-XX AUTHORIZING THE AWARD OF BIDS AND EXECUTION OF CITY'S STANDARD CONTRACT FOR THE PURCHASE AND INSTALLATION OF MILLWORK FOR THE LIBRARY/RESOURCE CENTER. History On September 8, 1998 the City Council awarded the bid for the construction of the Library/Resource Center to Fulco Construction. The Architect determined that there were items which could be purchased separately. One of the items to be purchased separately was the materials and installation of millwork for the building. Millwork includes numerous built-in furnishings essential to the operation of the building (see list). At the May 17, 1999 City Council meeting, the City Council approved the plans and specifications and authorized the solicitation of bids for the millwork. At the July 6th City Council Work Session, the staff provided the City Council with a status report on the library project including proposed areas for savings, likely change orders and the millwork issue. Shown below is the staff's understanding of the City Council's direction and the steps taken regarding each. (1) Identify if any of the millwork could be deleted without affecting operations or aesthetics. According to the County Library staff, it would be possible to eliminate one or two less costly items. The problem with deleting the items now is the likelihood of higher unit costs in the future and the possibility of finishes which do not match. (2) Request that the County provide funding assistance to acquire part of the millwork. Both County Library staff and the County Administrator have confirmed that funding is not available for the millwork considering previous library projects and the fact that the County has already invested significant funds toward this project. (3) Identify a funding source for the millwork acquisition which is beyond the previously budgeted $36,700 specifically from unprogrammed bond interest earnings. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 9-47-4245 AN EQUAL OPPORTUNITY E).<lPlOYER Agenda Report 8A July 19, 1999 Ralph confirmed that there will be sufficient bond interest earnings above that which was originally programmed to cover the cost of the millwork exceeding $36,700. (4) Work to minimize the cost of anticipated change orders and communicate with the general contractor regarding the louvers. The staff has directed the architect to discuss the louvers with the general contractor and to minimize the amounts of the identified change orders. The change orders will be placed on an upcoming City Council agenda once each has been finalized. (5) Modify the budget to eliminate the suggested contingency. This action will be reflected in the budget which reflects the change orders. Current Circumstances To finalize the millwork portion of the Council's direction, bids must be awarded. On Tuesday, June 15, 1999, bids were received from four vendors for the Library/Resource Center millwork. Following is a tabulation of the bids received. MILLWORK Contractor Fulco Construction Inc. Ron's Cabinets Millcraft J.S. Cates Bid Amount $ 91,900.00 $117,322.00 $125,685.00 $178.000.00 The apparent lowest responsible bidder for the millwork is Fulco Construction Inc. for a total amount of $91,900.00. The attached list identifies the millwork to be acquired, Through negotiations the Architect was able to lower this amount to $86,000.00, which will be reflected in the contract agreement. However, in accordance with the specifications, the approving resolution authorized the purchase of up to $91,900 for millwork. The architect believes that the bid received from FULCO is particularly competitive because their crews and equipment are "on site". The Library itself is one of the most significant and long-lasting projects we will undertake. Rather than eliminate millwork to save only modest dollar amounts or undermine the operation and aesthetics of the building, it is recommended that the City acquire all of the millwork items on the architect's list. ISSUES: Funding for this item should be drawn from the 1997 Parks and Library Referendum interest receipts. Finance Director, Ralph Teschner, has informed us that there will be a sufficient amount of interest earnings. There is $36,700.00 programmed within the Library/Resource Center budget for millwork, this would result in an additional $49,300.00 being drawn from the additional interest earnings of the referendum dollars not MILLBID.DOC ALTERNATIVES: RECOMMENDATION MOTION: REVIEWED BY: MILLBID.DOC Agenda Report 8A July 19, 1999 yet programmed, 1. Approve Resolution 99-xx authorizing the award of bids and execution of city's standard contract for the purchase and installation of millwork to Fulco Construction in an amount up to $91,900.00 for the Library/Resource Center. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason. Staff recommends Alternative NO.1, Motion and second to approve resolution 99-xx authorizing the award of bids and execution of City's standard contract for the purchase and installation of millw rk to Fulco Construction in an amount up to $91,900,00 for the Li rary/Resource Center, ~ ~.. ....... RESOLUTION 99-XX RESOLUTION AUTHORIZING THE AWARD OF BID AND EXECUTION OF CITY'S STANDARD CONTRACT FOR THE PURCHASE AND INSTAllATION OF MillWORK FOR THE LIBRARY/RESOURCE CENTER MOTION BY: SECOND BY: WHEREAS, On May 17, 1999 the City Council approved the plans and specifications for the purchase and installation of millwork for the Library/Resource Center and authorized the solicitation of bids, and, WHEREAS, the bid opening was conducted on Tuesday June 15, 1999 and the following is fhe bid tabulation: Contractor Fulco Construction Inc. Ron's Cabinets Millcraft J.S. Cates Bid Amount $91,900.00 $117,322.00 $125,685.00 $178,000.00 and, WHEREAS, the apparent lowest responsible bidder is Fulco Construction Inc. , and, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCil OF PRIOR lAKE, as follows: 1. The bid for the purchase and installation of millwork for the Library/Resource Center is hereby awarded to Fulco Construction Inc. for a total cost not to exceed $91,900. 2. The funds for such improvements will be drawn from the Parks and Library Referendum Funds ($36,700) and the remainder from interest earnings which have not been programmed. 3. The City Manager is hereby authorized to return bid securities submitted with the proposals to the vendors following the execution of contracts. 4. The Mayor and City Manager are authorized to execute the City's standard contract on behalf of the City. Passed and adopted this 19th day of July, 1999. YES NO Mader Mader Kedrowski Kedrowski Schenck Schenck Petersen Petersen Wuellner Wuellner {Seal} City Manager City of Prior Lake ~J~gle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612)..49-7-4245 AN EQUAL OPPORTUNITY EMPLOYER