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Item No: 7C Meeting Date: June 27, 2011 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nick DeBar, Public Works Director Item Title/Subject: Resolution 7801, Awarding a Construction Contract to Rosenquist Construction Inc. for the 2011 Reroofing of City Hall and Well House No. 5 & 6 Project Background: In response to leaking roofs the past several years, a comprehensive roof management program was performed for all City-owned buildings. This program recommended a partial reroofing of City Hall and a full reroofing of Well House Nos. 5 and 6 for the 2011 construction season. In December 2010, the City Council authorized INSPEC, Inc. to design and prepare bidding documents for reroofing of these facilities. The City Council approved the bidding documents and authorized advertisement for bids for the project on May 23, 2011. An ad for bid was placed in the Sun Focus on May 26 and June 2, and in the May 27 and June 3 editions of Finance and Commerce. Discussion: A public bid opening was held on June 22, 2011 for the 2011 reroofing project. The City received ten lump sum bids from contractors ranging from $183,800 to $313,000 (see attached bid tabulation). The difference between the two lowest bids was $4 or 0.002%, and the third lowest bid was $188,000. Overall, the bids were very favorable. The low bid was submitted by Rosenquist Construction, Inc. of Minneapolis. The City’s consultant, INSPEC, has satisfactory experience with Rosenquist and recommends awarding the construction contract to them. INSPEC has provided an hourly fee estimate of $6,700 for construction observation and inspection services during construction. The proposed 2011 budget includes monies to address the roof replacements being considered. The following is a breakdown of the funding locations: • $175,000 for City Hall under 280-4180-7050, Special Projects; • $65,000 for Well No. 5 & 6 under 700-4823-7050, Water Infra & Equip. Maintenance. Total combined proposed funding amount: $240,000 Rosenquist’s cost split between the City Hall and Well Houses is $128,400 and $55,400 respectively – both well below the budget amounts. Contingency unit prices were also solicited in the bidding process for additional insulation replacement. This was requested since actual condition of some the existing rigid insulation will not be known until demolition of the roof. A unit price of $1.50 per board foot was given by Rosenquist for this contingency item. Given the need to act quickly during construction when the roof is vulnerable, a contingency of 10% or $18,400 is recommended to be added to the construction budget for a total construction budget amount not to exceed $202,200 – well below that of the $240,000 budget amount. Any use of this amount will need City staff authorization. The proposed schedule for construction may begin as early as July 11, 2011 but needs to have final completion by September 15, 2011. However, once started, the Contractor must progress the work until complete for each building.