HomeMy WebLinkAbout1997-08-26 Council Packet - Special MeetingKenai City Council
Special Meeting
August 27, 1997
AGENDA
KENAI CITY COUNCIL - SPECIAL MEETING
AUGUST 26, 1997
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http: / /www.Kenai.net/ city
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
B. PUBLIC HEARINGS
1. Ordinance No. 1756-97 - Increasing Estimated Revenues and
Appropriations by $10,993,472 in the Capital Project Fund Entitled,
"Kenai ARFF Project."
a. Remove from table.
b. Consideration of ordinance.
2. Resolution No. 97-61 - Awarding a Contract to Alcan General, Inc.,
Contingent on FAA Funding, for the Project Entitled, "Alaska Regional
Fire Training Center," for the Total Amount of $7,790,915.47, Which
Includes the Basic Bid and Additive Alternate 2.
C. ADJOURNMENT
MAYOR'S REPORT
AUGUST 26, 1997
SPECIAL COUNCIL MEETING
CHANGES TO THE AGENDA
SUBSTITUTE: B-lc, Ordinance No. 1756-97 (change in estimated
revenues and appropriation amounts).
SUBSTITUTE: B-2a, Resolution No. 97-61 (change in fifth
"Whereas")
REQUESTED
BY:
Administration
Administration
w
a
a
m
m
a
m
°
a
a
ra
ado
as
m
a
m
a
o
a
N
°o
°O
�
1-1
a
m
m
w
o
a
a
0
a
H
a
w
o
0
m
v
V
m
m
Nt
loommoll
A!
A!
ii�i
J
wW
O
Z_
Z
LL
❑
9
Z
0
LL
LL
a
o
o
to
to
to
N1
C7
N
N
O
O
O
O Y
O
O
Cl)O
O V
�, CI
co
co
U y
N
0
oo tp
ao
V O
N
O
O
O
O
O
d
�
m
O
N O
m
L11
O
n
C
N
m
o 0
Ci
aj
V:
v
d
CD tLO
V N
a
i-
�
r
W
It
W
Y
r-,
v
vi
m
N
o
yOyl
N
N
N
a
tAa 0
eLo,0)rn
c
10
as a
.- th
m
v 'qi m
(r)
w c7
Y �vv
�
to
m �
� (� a
�w00
a
cN m
to
ALL
o
tea%
16
U
F-
m F-
Z Z
m o ton � o v
(0 Li f, m 0 m
S(NO
0)
O
N
M O
t2
O
0
N
O O
N
h
l
(D O
O
h
O
(O
Cl)
appOp
C (NO
G
O
N
0
0
V) O
O
(0
(0
O
O 0)
N
al
I
0)
f
o
0
0
0
(7
O
O
O
O
.-
O O
O
NLO
O
I
�2
_
tf P
OD
O
0 0o
IT
n
(7 N
I
I
O
O
O
O
O
Cl) o
0
0
0
M
lv O
O
O
O
N
07
1,
C.
O
O
h
O
(Op
cn
N O
O
coo
N
41
m l7
a o
0
0
o
g
v
rn
0
0
0
0
0
0
C O
O
O
O
O
W
h O
co
O
O
O
C
tp
N
O
coo
N
M
Y
� C
0
U
E
m
Z
c� a
o
�
N
O)
LL
`off
`
IL
c
P
D
v
�°-
Q Q O O CD
O O O O O
O O O O
tD O I� O
m O M N
04 O^ c)- �
';QQaW
!0 v v
0 E (a
LL W W W $j
lO 1-- Co W LL
L. L U- o 0
LL
rn
N
co
L6/9Z/8
L"'60Z'£
I. aSe4d lelol
LW ZZ£'Z
uo!prulsuoo
000'00Z
sanwin
000'L89
uoJIWAS
L"'60Z'£
I. aSe4d lelol
96Z'00I,
4oleW alelS
96Z'00I,
4owVy Al!o
L99'900'£
I• e5e4d IeJaPad lelol
9Z9'91,V 1,
JauleJl aJ!d paz!le!oadg
III ase4d L6L'69b' I.
IJeuollaJOSIa 86AA - pund of eoueleg
Al 9se4d 05L'£69
slu9w9ll!lu3 66Ad
6uuaeu!6u3 fueulw!IaJd/u6lsaQ
LV9'£9L'Z
punt of aoueleg
11 9Se4d 000'000'9
(L6/0£/6) JeaA to Pu3 L6Ad
L19'£9L'8
aoueleg IeJapad
L98'800'£
L aSe4d IeJ9P93 1e401
000'OOL
OIBWIIS3 SIu91119114IJ3 96A1
L99'9Z9
sluaw9R!lu3 L6AJ
OOZ'Z89' L
tieuogaJosla L6Ad
:pau!wwoo
VOV'ZL L' L L 6u!pund leJapa j
sase4d 6u!pund
Suggested by: Airport Manag. 6 la,
CITY OF KENAI
ORDINANCE NO. 1756-97
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA
INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $10,993,472
IN THE CAPITAL PROJECT FUND ENTITLED "KENAI ARFF PROJECT".
WHEREAS, the City has been instrumental in developing plans for the construction of
the Alaska Regional Aircraft Rescue and Firefighting Training Center in Kenai; and
WHEREAS, several major components of the project have been bid and all awards will
be contingent upon FAA funding; and
WHEREAS, the FAA has shown support of the project by offering a grant for a portion
of the project.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA, that estimated revenues and appropriations be increased as follows:
(en i AREE Capital Prq.ject
Increase Estimated Revenues:
Federal Grant $ 8,883,452
State Grant 296,115
Transfer from Airport 1,813-905
$10.993,472
Increase Appropriations:
Construction
$ 9,333,472
Equipment
835,000
Inspection
525,000
Contingency
300,000
Abort Land System
Increase Estimated Revenues:
Appropriation of Fund Balance $ 1.813.905
Increase Appropriations:
Airport Land - Transfers $ 1,813,905
Ordinance No. 1756-97
Page Two
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20" day of
August, 1997.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance:ael
(7/30/97) kl
JOHN J. WILLIAMS, MAYOR
Introduced: August 6, 1997
Adopted: August 20, 1997
Effective: August 20, 1997
Memorandum
TO: Rick Ross, City Manager
Larry Semmens, Finance Director
FROM: Jack La Shot, City Engineer
DATE: July 30, 1997
SUBJECT: ARFF Fund Appropriation Ordinance
The following is an estimate of costs to complete the referenced project using the best
available information, at this time. In order for us to award further construction and
engineering contracts on schedule, an introduction ordinance must be presented to the
City Council at the meeting of August 61h
These figures represent estimates of the grant request to FAA. The local share
(including the non -grant eligible portions of the building) are included in these figures.
Costs to furnish and equip the facility are not included, with exception of the training
vehicles.
Construction:
Propane Equipment - Symtron
Sitework
Building
Utilities - electric, gas, phone, cable
Subtotal - Construction
Engineering:
Inspection, project management, etc.
Training Vehicles:
Subtotal - Project
Contingency:
Total - Project
JUkw
$ 3, 060, 000
3,000,000
3,073,472
200.000
$ 9, 333, 472
$ 525,000
$ 835,000
$10,693,472
$ 300,000
$10, 993, 472
SUBSTITUTi
Suggested by: Airport Manager
CITY OF KENAI
ORDINANCE NO. 1756-97
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA
INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $12,695,915
IN THE CAPITAL PROJECT FUND ENTITLED "KENAI ARFF PROJECT".
WHEREAS, the City has been instrumental in developing plans for the construction of
the Alaska Regional Aircraft Rescue and Firefighting Training Center in Kenai; and
WHEREAS, several major components of the project have been bid and all awards will
be contingent upon FAA funding; and
WHEREAS, the FAA has shown support of the project by offering a grant for a portion
of the project.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA, that estimated revenues and appropriations be increased as follows:
Kenai AREF .a i a jg r
Increase Estimated Revenues:
Federal Grant
State Grant
Transfer from Airport
Increase Appropriations:
Construction
Equipment
Inspection
Contingency
Airport Land System
Increase Estimated Revenues:
Appropriation of Fund Balance
Increase Appropriations:
Airport Land - Transfers
$11,172,404
372,413
1-151.098
$12-695 915
$11,050,915
835,000
510,000
300,000
$12,695,915
Ordinance No. 1756-97
Page Two
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 26th day of
August, 1997.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance: A�i
(8/26/97) k1
JOHN J. WILLIAMS, MAYOR
Introduced: August 6, 1997
Adopted: August 26, 1997
Effective: August 26, 1997
Suggested by: Admin6LI MIU11
CITY OF KENAI
RESOLUTION NO.97-61
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING
A CONTRACT TO ALCAN GENERAL, INC., CONTINGENT ON FAA FUNDING, FOR
THE PROJECT ENTITLED ALASKA REGIONAL FIRE TRAINING CENTER FOR THE
TOTAL AMOUNT OF $7,790,915.47 WHICH INCLUDES THE BASIC BID AND
ADDITIVE ALTERNATE 2.
WHEREAS, the following bids were received on August 19, 1997:
Contractor
Basic Bid
Additive Alt. 1
Additive Alt. 2
Janssen Contracting
$7,154,683.35
$ 9,900.00
$ 9,110.00
Alcan General, Inc.
$7,787,902.47
$10,220.00
$ 3,013.00
Blazy/Zubeck (joint)
$8,152,744.50
$10,000.00
$ 3,500.00
G&S Construction
$8,302,520.26
$10,750.00
$26,000.00
Engineer's Estimate
$6,577,000.00
$15,000.00
$18,758.00
and
WHEREAS, the Basic Bid and Additive Alternates are described as follows:
Basic Bid:
Schedule I - Access Road and Utilities Schedule VI - Parking Lot
Schedule II - Site Development Schedule VII - Effluent Aeration Building
Schedule III - Site Utilities Schedule VIII - Force Account Work
Schedule IV - Concrete Site Work Schedule IX - Training Building
Schedule V - Propane Distribution
Additive Alternate 1: Pond dredging.
Additive Alternate 2: Alternate siding for the building.
WHEREAS, the low bidder, Janssen Contracting, withdrew their bid, and
WHEREAS, Alcan General, Inc.'s bid is the next lowest responsible bid and award to
this bidder would be in the best interest of the City, and
WHEREAS, this resolution is contingent upon FAA funding and approval, and
WHEREAS, the recommendation from the City Engineer, and the project engineer
Morrison Maierle, is to award the contract to Alcan General, Inc. for the total amount of
$7,790,915.47 for the Basic Bid and Additive Alternate 2, and
WHEREAS, sufficient monies are appropriated.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the construction contract for the project entitled Alaska Regional Fire
Training Facility be awarded to Alcan General, Inc., contingent on FAA funding, for
the total amount of $7,790,915.47 for the Basic Bid and Additive Alternate 2 PASSED
BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 26"' day of August, 1997.
JOHN J. WILLIAMS
ATTEST:
Carol L. Freas, City Clerk
Written by Public Works:
Approved by Finance:
8/97/kw
Substitute
Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 97-61
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING
A CONTRACT TO ALCAN GENERAL, INC., CONTINGENT ON FAA FUNDING, FOR
THE PROJECT ENTITLED ALASKA REGIONAL FIRE TRAINING CENTER FOR THE
TOTAL AMOUNT OF $7,790,915.47 WHICH INCLUDES THE BASIC BID AND
ADDITIVE ALTERNATE 2.
WHEREAS, the following bids were received on August 19, 1997:
Contractor Basic Bid Additive Alt. 1 Additive Alt. 2
Janssen Contracting
$7,154,683.35
$ 9,900.00
$ 9,110.00
Alcan General, Inc.
$7,787,902.47
$10,220.00
$ 3,013.00
Blazy/Zubeck (joint)
$8,152,744.50
$10,000.00
$ 3,500.00
G&S Construction
$8,302,520.26
$10,750.00
$26,000.00
Engineer's Estimate
$6,577,000.00
$15,000.00
$18,758.00
and
WHEREAS, the Basic Bid and Additive Alternates are described as follows:
Basic Bid:
Schedule I - Access Road and Utilities Schedule VI - Parking Lot
Schedule II - Site Development Schedule VII - Effluent Aeration
Building
Schedule III - Site Utilities Schedule VIII - Force Account Work
Schedule IV - Concrete Site Work Schedule IX - Training Building
Schedule V - Propane Distribution
Additive Altemate 1: Pond dredging.
Additive Alternate 2: Alternate siding for the building.
WHEREAS, the low bidder, Janssen Contracting, withdrew their bid, and
WHEREAS, Alcan General, Inc.'s bid is the next lowest responsible bid and award to
this bidder would be in the best interest of the City, and
00 WHEREAS, this award is contingent upon FAA funding and approval, and the
contractor's agreement to phasing of the project according to funding availability, and
WHEREAS, the recommendation from the City Engineer, and the project engineer
Morrison Maierle, is to award the contract to Alcan General, Inc. for the total amount of
$7,790,915.47 for the Basic Bid and Additive Alternate 2, and
WHEREAS, sufficient monies are appropriated.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the construction contract for the project entitled Alaska Regional Fire
Training Facility be awarded to Alcan General, Inc., contingent on FAA funding, for
the total amount of $7,790,915.47 for the Basic Bid and Additive Alternate 2 PASSED
BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 26 h day of August, 1997.
JOHN J. WILLIAMS
ATTEST:
Carol L. Freas, City Clerk
Written by Public Works:
Approved by Finance:
8/97/kw
CITY OF KENAI
It Od Cap" 4 4Z"" 11
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 *241VA
,wAWAACIM
IIII�1
1992
Memorandum
Date: August 22, 1997
To: Mayor and Council
From: Richard A. Ross, City Manager
RE: ARFF Facility Bid
Attached is a copy of Morrison Maierle, Inc.'s explanation of why the bid is over
engineer estimates. Also attached is Kluge and Associates' response. Your
review of their responses is encouraged.
The original estimate for the work bid, and the estimate we were operating under
up until two days before bid opening, was approximately $6.1 million. The low
bid received was $7,154,683. The contractor asked for error adjustment on this
to make the bid $7,539,615, which was denied. Adjusted for error, this bid
would have been 23% over the estimate we were operating under. Two days
before bid opening, Mr. La Shot was advised by Morrison Maierle that the new
engineer's estimate was $6,577,000. At that late date, there was no opportunity
to respond on the part of the City by reducing the project to fit the budget and
original estimates.
It is our position that this project came in 27% over the original estimate, the
difference between the original estimate of $6.1 million and ALCAN General,
Inc.'s bid of $7,787,902.47.
Both Kluge and Associates and Morrision Maierle cite bid climate as a factor
increasing costs. The following factors would seem to indicate that it was a
highly competitive environment which should not have resulted in increased
costs.
1. 109 sets of plans were distributed, the highest number ever sent out in
the memory of Public Works personnel. The number of subcontractors
requesting plans was far beyond expectations.
2. Six general contractors were involved. One could not submit because of
computer failure. One contractor arrived late for the bid opening. The
difference in bids high to low, adjusted for reported errors, was
$750,224.24 or 9.6% of the bid between the bidders.
3. Janssen Contracting was allowed to withdraw their low bid over a
$384,000 documented error. This error represents 5% of their bid and
was considered by them insurmountable, as it was two times the profit
and administrative overhead they had projected in their submitted bid.
4. As stated in Morrision Maierle's letter, site work numbers and other
schedules were generally on target with original estimates or within
acceptable ranges. The training building was not.
The primary overage is in the training building. The $3.18 million estimate we
were operating under was the same estimate presented to and accepted by
Council. Bids received came in $1.3 million above this estimate, an increase of
40%.
Morrision Maierle and Kluge and Associates give their perspective on this in their
attached responses. Input from some of the contractors on this subject are that
the audio/visual component was very high, mechanical was high, and that cost
would have been lower if the building design was a rectangular concrete and steel
structure.
The $400,000 audio visual component is discussed in the Kluge and Associates'
letter. Morrision Maierle states they were not aware of this component until
August 17 (two days before bid opening). It was on that date Tim Orthmeyer of
Morrision Maierle advised Mr. La Shot of the revised engineer's estimate.
According to Kluge and Associates' letter, this $400,000 package was not in the
original $3.18 million building estimate. Had the City Administration and
Council been made aware of this component's additional cost, which is
significant, it could have been scaled back. For example, on August 22 Mr. Ernst
contacted the Modesto, California facility and determined through their research
that they had spent $30,000 for their AV/media room. It also could have been
bid as an alternate if Council had so directed.
Present Status
We have submitted ALCAN General, Inc.'s bid to FAA. On August 25 and 26 we
will be in discussions with the FAA on funding issues. We hopefully will have the
necessary information available to Council on the August 26 meeting so that you
can consider award of the bid.
Attachments
RAR/kh
C,/22/97 13:42 MM/CSSA-HLN
- 507 283 3014 NO.105 901
OTSO' T
1\v1
U {huh HOT
CIENTISTS
SCIENTISTS
SURVEYORS
PLANNERS
owl
E WL , INC.
910 HELENA AVENUE - P.O. BOX 6147 - HELENA. MT 59604.406.442-3050 - fAX: 406-442.7862
An Employee -Owned Company
FAX LETTER
907-283-3014
August 22, 1997
Mr. Jack La Shot, P.E.. City Engineer
City of Kenai
210 Fidalgo Ste 200
Kenai, AK 99611-7794
Re: Alaska Regional Fire Training Facility
Kenai, Alaska
MMI PROJ. # 2950-001.02-040-0113
Dear Mr. La Shot:
We have reviewed the bids for the ARFFT facility opened at 4:00 P.M. August 19, 1997, as well
as the estimates of the design team.
Four bids were received, and a fifth was not accepted because it was delivered late.
The apparent low bidder was Janssen Contracting Co., Inc. with a bid of $7,154,683.35. However,
following the bid opening, the contractor declared and documented an error in the bid and requested
that their bid be withdrawn.
The second bidder was Alcan General, Inc., with a bid in the amount of $7,787,902.47. The amount
of the contract subcontracted to DBE firms is 14.77% which exceeds the project contract goal of
10.0 %.
The third bidder was BlazylZubeck, JV, at $8,152,744.50 with DBE participation of 15.8 %.
The firm of G & S Construction was fourth with a bid of $8,302,520.26 and did not submit the DBE
information.
We have been informed informally that G & S Construction made a $900,000 transposition when
compiling their bid. This would have made them second bidder, if permitted to correct their bid.
The design team's estimate was $6,577,000, therefore, the low non -responsive bidder was 8.8 %
over our estimate, and the Alcan General bid 18.4% over our estimate.
We have attached a letter from our architectural consultant which discusses the bids on Schedule 1X,
R. ,. —_a. _.- n __—_._....zo a. x _._S_n, , o _�1A. 41Ll_�—r.�__Y1 / u r v ,.._. ._._ ...
00/ _2/97 13: 43 MM/CSSA-HLN -> 907 233 3014 N0. 105 902
MORRISON
MORLE,me
Mr. Jack La Shot
August 22, 1997
Page 2.
the Training Building.
The bids on the remaining schedules, with the exception of Schedule VII were generally slightly
lower than our estimate, and within a few percentage points of our estimate. Our estimate of
$130,000, on Schedule VII - Effluent Building, only included the cost of the equipment, not the
structure itself. Our estimate should have been about $310,000, and based on the bids received, it
appears we underestimated dewatering costs.
The building bids are higher due to a combination of factors. Both the effluent building and the
training building would have been convenient schedules to place bid adjustments for the remaining
schedules when contractors adjusted subcontractor quotes at the last minute prior to turning in their
bids.
While some of the revisions made in the building plans may not have been completely accounted
for in the architect's estimate, their impact is relatively minor.
We believe another contributing factor the teams estimate was lower, was the bidding climate
existing at this time. There were several other large projects being bid in Alaska at the same time,
which certainly had an adverse effect on bidding for our project. The other projects may have also
been adversely affected.
We would not recommend permitting the fourth bidder to correct his bid. This is generally not
permitted in construction contract bidding where bids are publicaily opened
In review of the above information, although the bids may be somewhat elevated, we
recommend that the bid be awarded to Alcan General, Inc., in the amount of $7,787,902A7.
We also recommend that the City submit the grant application to the FAA with the bid
amounts identified to date, and determine the level of FAA participation. Once this has been
established, funding budgets can be reviewed to determine if the local share is compatible with
City financial conditions.
J 08/22/97 13:44 MM/CSSA-HLN -> 907 283 3014
NO. 105 1?03
011 ,a MOMSON
MMIERM, INC
Mr. Jack La Shot
August 22, 1997
Page 3.
We would be most willing to meet and discuss options of project funding and any other
considerations, in and effort to expedite a timely start to this project.
Sincerely,
ON-MAIERLE, INC.
6�:�J
-A
F. rthmeyer, P.E.
tan ger
Enclosure
cc: Jim Perham, FAA - Anchorage
John Morrison, Jr., Project Principal
Wm. J. Nelson & Assoc. 907-283-3583
Kluge and Assoc. 907-283-9083
:G KENA11 INAQCAWD
0.3/21 /97 18: 42 MM/C rA—HLN -+ 907 283 3014 NO. 090
AUK:-20� WED 17:89 KLUGE and ASSOCIATES 2839093 P.02
ARCHITECTURE • INTERIORS • ORAPHIC6
August 20, 1997
Tlm Orthmeyer, Airport Department Managslr
Morrison-Maierie, Inc.
PO Box 6147
Helena, MT 59604
RE: ALASKA REGIONAL AIRCRAFT PMX:T-RAINING CENTER
TRAINING BUILDING
KENAI, ALASKA
Dear Tim:
As requested, we have reviewed the actuat bid amount for the referenced building In
comparison to our estimate. Several Iterrxx.g0ckly come to mind when doing this.
The first would be construction schedule. 'M June we were Intending on releasing
bid documents by the third week of June. 00 packages actually were not available
to the contractors until July 21, then UPS emblems demanded the bid date to be
extended from August 13 to August 19. ThW delay certainly added costs to the
concrete. masonry and other building components.
During the course of developing the design pt the building, I suggested Incorporation
of the site snowmelt boiler system and the. pump equipment Into the fire training
building. This was In an effort to reduce .rall project cost by not constructing
another building to house these components. At the time our estimate was
prepared, we had provided for a water sue® tank below slab, but the associated
pump and snowmelt systems were not did. As the pump system was detailed
structural elements were modified. Prior to the bid. two hundred thousand was
added to the estimate for the pump equipment. Nothing was added for the
snowmelt boiler and associated piping. Although a line item was given for a
snowmelt system. we are aware of some gtes that provided the cost of the boiler
and associated building piping In the bulb cost. We have been Informed that this
Item was a substantial: amount. In additlon4 otter the estimate was prepared, seven
site lights were added to provide lighting for the training props.
I informed the City at the time of the estimate that AV equipment was not
addressed In the construction cost. Carl electrical engineer layed out the AV
equipment after coming to Kenai and meeting with us and the fire station
representatives. The systems were did similar to the Modesto, California
facility. It was a consensus of the Mayor and fire personnel that this project's AV
130 INAOINa Eimv ROAD, SUITE 330 Krn^i, AL-AEKA. W961 1 1907) 283-3698 ;Ax I9071 282-9053
E-MAIL. ADORLUst kkt gsAalaska.ne!
AN Al: ASXW PROJWSSIONAL FIRM
PROVIDING SERIVICRS SINCE 1984
E8/21/97 18:43 MM/CSSA—HLN 4 907 223 3014
AUG-20 -, WED 18:06 KLUGE -3r%d ASSOCIATES 2839083
NO.090 D06
P.03
August 20. 1997
Tim OrLhmcycr, Airport Department Manager
ALASKA REGIONAL AIRCRAFT FIRE TRAINING CENTER
Page 2
system should be designed to have the aWM of distant teaming from the lecture
room and video presentations In the ciaswooms as well as recording prop -training
sessions and lectures. Four video cameras wwo used on the exterior of the building
to monitor the training activities. The es&AWe used at bid opening of 3.6 million
Included $400,000 for AV equipment.
Another significant Impact to our buildingamt was the fact that It was used as a
catch all for other project costs. I was infooned by contractors that because of the
flurry created close to bid time, by incorrdng quotes, that other costs were put Into
the building amount. Items that were not piled with a bid fine on the form or that
were confusing as to which scope of they belonged with, ended up in the
building line Item. The Impact of this had vng effects from bid to bid depending
on how the contractors approached the wioft
One can only guess at what actual impact "so items had on the building cost. 1
can say that the building was developed. per our assigned program and well
detalled. An actual cost of strictly the bu#ding components for this project, may only
be determined by re -bidding.
I hope this narrative provides some ins# to the bid results. This construction
season has been an unexpected boom W contractors. The laws of supply and
demand certainly come into play In the pays bid results. Please feel free to call
me after reviewing this Information.
Sincerely,
KLUGE & ASSOCIATES
Bill uge, P Ipal Architect
BK:tw
CITY OF KENAI
it C9d OC6tlo" 4 414aJ." 11
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 hiAn1
rFw.wr•ar
1IIII1
1992
Memorandum
Date: August 22, 1997
To: Mayor and Council
From: Richard A. Ross, City Manager
RE: ARFF Facility Bid
Attached is a copy of Morrison Maierle, Inc.'s explanation of why the bid is over
engineer estimates. Also attached is Kluge and Associates' response. Your
review of their responses is encouraged.
The original estimate for the work bid, and the estimate we were operating under
up until two days before bid opening, was approximately $6.1 million. The low
bid received was $7,154,683. The contractor asked for error adjustment on this
to make the bid $7,539,615, which was denied. Adjusted for error, this bid
would have been 23% over the estimate we were operating under. Two days
before bid opening, Mr. La Shot was advised by Morrison Maierle that the new
engineer's estimate was $6,577,000. At that late date, there was no opportunity
to respond on the part of the City by reducing the project to fit the budget and
original estimates.
It is our position that this project came in 27% over the original estimate, the
difference between the original estimate of $6.1 million and ALCAN General,
Inc.'s bid of $7,787,902.47.
Both Kluge and Associates and Morrision Maierle cite bid climate as a factor
increasing costs. The following factors would seem to indicate that it was a
highly competitive environment which should not have resulted in increased
costs.
1. 109 sets of plans were distributed, the highest number ever sent out in
the memory of Public Works personnel. The number of subcontractors
requesting plans was far beyond expectations.
2. Six general contractors were involved. One could not submit because of
computer failure. One contractor arrived late for the bid opening. The
difference in bids high to low, adjusted for reported errors, was
$750,224.24 or 9.6% of the bid between the bidders.
3. Janssen Contracting was allowed to withdraw their low bid over a
$384,000 documented error. This error represents 5% of their bid and
was considered by them insurmountable, as it was two times the profit
and administrative overhead they had projected in their submitted bid.
4. As stated in Morrision Maierle's letter, site work numbers and other
schedules were generally on target with original estimates or within
acceptable ranges. The training building was not.
The primary overage is in the training building. The $3.18 million estimate we
were operating under was the same estimate presented to and accepted by
Council. Bids received came in $1.3 million above this estimate, an increase of
40%.
Morrision Maierle and Kluge and Associates give their perspective on this in their
attached responses. Input from some of the contractors on this subject are that
the audio/visual component was very high, mechanical was high, and that cost
would have been lower if the building design was a rectangular concrete and steel
structure.
The $400,000 audio visual component is discussed in the Kluge and Associates'
letter. Morrision Maierle states they were not aware of this component until
August 17 (two days before bid opening). It was on that date Tim Orthmeyer of
Morrision Maierle advised Mr. La Shot of the revised engineer's estimate.
According to Kluge and Associates' letter, this $400,000 package was not in the
original $3.18 million building estimate. Had the City Administration and
Council been made aware of this component's additional cost, which is
significant, it could have been scaled back. For example, on August 22 Mr. Ernst
contacted the Modesto, California facility and determined through their research
that they had spent $30,000 for their AV/media room. It also could have been
bid as an alternate if Council had so directed.
Present Status
We have submitted ALCAN General, Inc.'s bid to FAA. On August 25 and 26 we
will be in discussions with the FAA on funding issues. We hopefully will have the
necessary information available to Council on the August 26 meeting so that you
can consider award of the bid.
Attachments
RAR/ kh
C ./22/97 13: 42 MM/CSSA-HLN
- 907 283 3014 NO. 105 1701
MOFMSO T
/�,/,1\v�
ENGINEERS
SCIENTISTS
�j,,,\1(„��`j
SURVEYORS
woMAIERME,
TT�*TT��rr
iNc.
PLANNERS
910 HELENA AVENUE • P.O. BOX 6147 • HELENA, MT 59604 • 406-442-3050 • FAX: 406-442-7862
An Employee -Owned Company
FAX LETTER
907-283-3014
August 22, 1997
Mr. Jack La Shot, P.E.. City Engineer
City of Kenai
210 Fidalgo Ste 200
Kenai, AK 99611-7794
Re: Alaska Regional Fire Training Facility
Kenai, Alaska
MMI PROJ. # 2950-001.02-040-0113
Dear Mr. La Shot:
We have reviewed the bids for the ARFFT facility opened at 4:00 P.M. August 19, 1997, as well
as the estimates of the design team.
Four bids were received, and a fifth was not accepted because it was delivered late.
The apparent low bidder was Janssen Contracting Co., Inc. with a bid of $7,154,683.35. However,
following the bid opening, the contractor declared and documented an error in the bid and requested
that their bid be withdrawn.
The second bidder was Alcan General, Inc., with a bid in the amount of $7,787,902.47. The amount
of the contract subcontracted to DBE firms is 14.77% which exceeds the project contract goal of
10.0 %.
The third bidder was BlazylZubeck, IV, at $8,152,744.50 with DBE participation of 15.8 %.
The firm of G & S Construction was fourth with a bid of $8,302,520.26 and did not submit the DBE
information.
We have been informed informally that G & S Construction made a $900,000 transposition when
compiling their bid. This would have made them second bidder, if permitted to correct their bid.
The design team's estimate was $6,577,000, therefore, the low non -responsive bidder was 8.8 %
over our estimate, and the Alcan General bid 18.4% over our estimate.
We have attached a letter from our architectural consultant which discusses the bids on Schedule IX,
Beginning Our Second Half C e n t u r y
Oe/ 2i97 13:43
MM/CSSA-HLN -> 907 2e3 3014
NO. 105
J
MORRISON
"I NMRLE,iNc,
Mr. Jack La Shot
August 22, 1997
Page 2.
the Training Building.
The bids on the remaining schedules, with the exception of Schedule VII were generally slightly
lower than our estimate, and within a few percentage points of our estimate. Our estimate of
$130,000, on Schedule VII - Effluent Building, only included the cost of the equipment, not the
structure itself. Our estimate should have been about $310,000, and based on the bids received, it
appears we underestimated dewatering costs.
The building bids are higher due to a combination of factors. Both the effluent building and the
training building would have been convenient schedules to place bid adjustments for the remaining
schedules when contractors adjusted subcontractor quotes at the last minute prior to turning in their
bids.
While some of the revisions made in the building plans may not have been completely accounted
for in the architect's estimate, their impact is relatively minor.
We believe another contributing factor the teams estimate was lower, was the bidding climate
existing at this time. There were several other large projects being bid in Alaska at the same time,
which certainly had an adverse effect on bidding for our project. The other projects may have also
been adversely affected.
We would not recommend permitting the fourth bidder to correct his bid. This is generally not
permitted in construction contract bidding where bids are publically opened.
In review of the above information, although the bids may be somewhat elevated, we
recommend that the bid be awarded to Alcan General, Inc., in the amount of $7,787,902.47.
We also recommend that the City submit the grant application to the FAA with the bid
amounts identified to date, and determine the level of FAA participation. Once this has been
established, funding budgets can be reviewed to determine if the local share is compatible with
City financial conditions.
08/22i97 13:44 MM/CSSA-HLN -> 907 283 3014
NO. 105 1?03
MORRISON
I All
MAIERIZ iNe
Mr. Jack La Shot
August 22, 1997
Page 3.
We would be most willing to meet and discuss options of project funding and any other
considerations, in and effort to expedite a timely start to this project.
Sincerely,
ON-MAIERLE, INC.
q6t a -r
F. rthmeyer, P.E.
lan ger
Enclosure
cc: Jim Perham, FAA - Anchorage
John Morrison, Jr., Project Principal
Wm. J. Nelson & Assoc. 907-283-3583
Kluge and Assoc. 907-283-9083
:G:IKENAA8213JACK.AWD
0.3/21/97 18:42 MM/CSSA-HLN i 907 263 3014
WED 1 7 :59 KLUGE and ASSOCIATES 2839093
NO.090 ia5
P. 02
I rid WILIL ".�.
01
ARCHITECTURE • INTERIORS • GRAPHICS
August 20, 1997
Tim Orthmeyer, Airport Department Manager
Morrison-Malerle, Inc.
PO Box 6147
Helena, MT 59604
RE: ALASKA REGIONAL AIRCRAFT Flfl RAINING CENTER
TRAINING BUILDING
KE NAI. ALAS KA
Dear Tim:
As requested, we have reviewed the actual bid amount for the referenced building In
comparison to our estimate. Several Item* ckly come to mind when doing this.
The first would be construction schedule. .June we were Intending on releasing
bid documents by the third week of June. 00 packages actually were not available
to the contractors until July 21, then UPS plems demanded the bid date to be
extended from August 13 to August 19. 'ids delay certainly added costs to the
concrete, masonry and other building comportents.
During the course of developing the design Of the building. I suggested Incorporation
of the site snowmelt boiler system and the pump equipment Into the fire training
building. This was In an effort to reduoo .gall project cost by not constructing
another building to house these comporients. At the time our estimate was
prepared, we had provided for a water stoMe tank below slab, but the associated
pump and snowmelt systems were not did. As the pump system was detailed
structural elements were modified. Prior to the bid, two hundred thousand was
added to the estimate for the pump moment. Nothing was added for the
snowmelt boiler and associated piping. Although a line item was given for a
snowmelt system, we are aware of some +motes that provided the cost of the boiler
and associated building piping In the butler cost. We have been Informed that this
Item was a substantial amount. In additlort, -4after the estimate was prepared. seven
site lights were added to provide lighting for the training props.
I informed the City at the time of th o estimate that AV equipment was not
addressed In the construction cost. Ogr electrical engineer layed out the AV
equipment after coming to Kenai and meeting with us and the fire station
representatives. The systems were did similar io the Modesto, California
facility. It was a consensus of the Mayor and fire personnel that this project's AV
1 30 VPAOINa HAv ROAD, SUIT4 330 KGNA1, ALA8/C& W9 61 1 (907) 293-3690 FAX (907) 293j-9(3E33
E' MAII. AD0I4L OAi kXV6Qa1ask8.net
AN A r: ASKAN PRO)W,SSiIONAL FIRM
PROVIDING SEAVICES SINCE 1984
e8/21/97 18:43 MM/CSSA-HLN 4 907 283 3014
nuG-20-'=' 7 WED 18:00 KLUGE and ASSOCIATES 2839083
N0.090 906
P.03
August 20. 1997
Tim Onhmeyez, Airport Department Manager
ALASKA REGIONAL AIRCRAFT FIRE TRAINING CENTER
Page 2
system should be designed to have the aity of distant leaming from the lecture
room and video presentations In the classrooms as well as recording prop -training
sessions and lectures. Four video cameras ire used on the exterior of the building
to monitor the training activities. The a&~® used at bid opening of 3.6 million
Included $400,000 for AV equipment.
Another significant Impact to our building mst was the fact that it was used as a
catch all for other project costs. I was intoned by contractors that because of the
flurry created close to bid time, by incorrOng quotes, that other costs were put Into
the building amount. Items that were not preyded with a bid line on the form or that
were confusing as to which scope of w they belonged with, ended up in the
building Ilne Item. The Impact of this had varying effects from bid to bid depending
on how the contractors approached the worK
One can only guess at what actual impact Voss Items had on the building cost. I
can say that the building was developed. per our assigned program and well
detailed. An actual cost of strictly the bul4dkV components for this project, may only
be determined by re -bidding.
I hope this narrative provides some ink to the bid results. This construction
season has been an unexpected boom *4 contractors. The laws of supply and
demand certainly come Into play In the pots bid results. Please feet free to call
me after reviewing this Information.
Sincerely,
KLUGE & ASSOCIATES
Bill uge, P 1pal Architect
BK:tw
SUBSTITUTE:
MAYOR'S REPORT
AUGUST 26, 1997
SPECIAL COUNCIL MEETING
CHANGES TO THE AGENDA
B-lc, Ordinance No. 1756-97 (change in estimated
revenues and appropriation amounts).
REQUESTED
BY:
Administration
SUBSTITUTE: B-2a, Resolution No. 97-61 (change in fifth
"Whereas") Administration
AGENDA
KENAI CITY COUNCIL - SPECIAL MEETING
AUGUST 26, 1997
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http:/ /www.Kenai.net/city
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
B. PUBLIC HEARINGS
1. Ordinance No. 1756-97 - Increasing Estimated Revenues and
Appropriations by $10,993,472 in the Capital Project Fund Entitled,
"Kenai ARFF Project."
a. Remove from table.
b. Consideration of ordinance.
2. Resolution No. 97-61 - Awarding a Contract to Alcan General, Inc.,
Contingent on FAA Funding, for the Project Entitled, "Alaska Regional
Fire Training Center," for the Total Amount of $7,790,915.47, Which
Includes the Basic Bid and Additive Alternate 2.
C. ADJOURNMENT
1791 - 1"1 1
CITY OF I ENAI . rL
W Cgdal o f 4lars d
FAX
FROM
210 Fidaigo, Suite 200
K-tim. Alaska 99611-7794
Phone 907-283-7535
Fax 907-283-3014
8
Date
Number of Pages
1791-1991
CITY OF KENAI .
W Cgda( o f rf(a., a"
FAX
J
TO
210 Fidalgo, Suite 200
KeQai,.Alaska 99611-7794
Phone 907-283-7535
Faz 907-293-3014
Date
Number of Pages
AGENDA
KENAI CITY COUNCIL - SPECIAL MEETING
AUGUST 26, 1997
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http://www.Kenal.net/city
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
B. PUBLIC HEARINGS
1. Ordinance No. 1756-97 - Increasing Estimated Revenues and
Appropriations by $10,993,472 in the Capital Project Fund Entitled,
"Kenai ARFF Project."
a. Remove from table.
b. Consideration of ordinance.
2. Resolution No. 97-61 - Awarding a Contract to Alcan General, Inc.,
Contingent on FAA Funding, for the Project Entitled, "Alaska Regional
Fire Training Center," for the Total Amount of $7,790,915.47, Which
Includes the Basic Bid and Additive Alternate 2.
C.
Additional information can be found at http://www.Kenai.net/city. The public is
invited to attend and participate.
Carol L. Freas
City Clerk
1791-1991
CITY OF I ENAI
"Oil Capi& o f {{la4d
-l"
—a
TO
FROM
8
=s -
210 Fidalgo, Suite 200
Kenai,.Aluka 99611-7794
Phone 907-283-7535
Fax 907-20-3014
Date Y, /z_/ �
Number of Pages o?