HomeMy WebLinkAboutApprove bid for the Purchase and Installation of the Swim Center Air Handler Unit
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Ron Dingman, Park and Recreation Director
Anna Rosenberry, Finance Director
Chuck Winn, Assistant City Manager
SUBJECT: Air Handler Bid Award for Swim Center
MEETING DATE: April 27, 2009
RECOMMENDATION: Award bid for purchase and installation of the Swim Center Air
Handler unit to the low bidder, Bozeman Plumbing and Heating.
BACKGROUND: At the November 24, 2008 Commission meeting, the Commission
approved the expenditure of $215,000 for the design, engineering, and purchase of the Air
Handler (AH) for the Swim Center. Upon review of RFP’s received, the engineering contract
was awarded to Morrison/Maierle Inc., who is designing, engineering and overseeing the
purchase and installation of the Air Handler unit, for $20,450.
The original estimated cost for this unit, as indentified in Section 6, page 22 of the 2008
USAquatics Facility Survey report, was a total of $183,000. These figures were provided in the
report by Morrison/Maierle Inc, dated July 14, 2008.
On April 13, 2009, the low bid of $240,000 for the purchase and installation of the AH was
received from Bozeman Plumbing and Heating. The costs of design & engineering, electrical
upgrades, plan review, and a $25,000 project contingency have been added, and bring the total
project costs $290,000.
After the low bid was received, the City asked Morrison/Maierle, Inc. for an explanation as to
the large discrepancy in their USAquatics survey estimate from July and the bids we received.
Their written response is attached, indicating that a large portion is related to incorrect estimates
of installation labor costs. They have proposed to reduce their fee by $9,350 on the project,
which we have factored in (*), reducing total project costs to $280,650. Their letter also
indicates they may be able to acquire a $10,000 credit for the AH Unit costs through negotiation
with the equipment vendor, which we have not factored into the project total.
37
Item USAquatics Survey November 08 Estimate Final Project
Design & Engineering $20,000 $11,100*
AH Unit & Duct Work &
Exhaust Fans
$183,000 $195,000 $240,000
Contingency $25,000
NWE Electrical Upgrades $4,000
Plan Review $550
TOTAL $183,000 $215,000 $280,650
Construction for this project is scheduled to begin on May 18. Along with the AH project, drains
at both the Swim Center and the Bogert Pool are scheduled to be retrofitted to comply with the
Federal VGB Act. Staff is timing both of these projects to be completed in coordination with
one another to minimize the length of time both pools are closed and to eliminate the need to pay
the drain contractor to come back a second time.
FISCAL EFFECTS: In November, we proposed modifying and/or cutting a number of items
from the FY09 budget to cover the estimated $215,000 cost of the project. With these sources,
we were not planning on using General Fund Reserves.
Due to the additional costs of $65,650 after bidding, we are recommending that the Air Handler
project move forward in FY09, with the previously described funding sources, and that the FY10
Park Restroom project (in the CIP for $150,000) be eliminated to fund the air handler. Under
this scenario we will use General Fund Reserve in FY09 to pay for the project, but will recover
the Reserve amount in FY10.
We utilized the CIP Criteria scores to recommend an FY10 project to be cut. Three projects (all
scoring 37 points) of the size able to cover this deficiency were: Parks Restroom, Park
Improvement Grants, and Library Materials Flow System.
Air Handler Replacement - Items budgeted in the General Fund to be used for Air Handler:
Bogert Park Bathroom
Replacement
$81,400.00 Total of $125,000 Budgeted; $43,600 would
remain to combine with PIG Fund & Recreation
Donation Fund to replace the facility.
Cemetery Shed Improvements 93,000.00 Will not be completed; Utilize other storage
areas.
Video Surveillance System 21,500.00 Will not be completed.
Citizen Survey - Spring 2009 10,000.00 Will not be completed.
Swim Center Slide Replacement 9,100.00 Will be competed through Recreation Donation
Fund.
FY09 General Fund Reserve 65,650.00 To be recovered with a project cut in FY10.
Total $280,650.00
38
ALTERNATIVES: As suggested by the City Commission.
Attachments: Bid Tab Sheet
Maintenance Building Addition Bid Sheet
Report compiled on 4/21/09
39
40
41
42
43