HomeMy WebLinkAboutBid Award for Bozeman Solid Waste Division Building Addition and Alternate #1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: James Goehrung, Director of Facility Services
Chuck Winn, Assistant City Manager
Debbie Arkell, Director of Public Service
SUBJECT: Award of bid for the Bozeman Solid Waste Division Building Addition
MEETING DATE: May 18, 2009
RECOMMENDATION: Authorize the City Manager to sign the award of bid to BN Builders
for the Solid Waste Office addition in the amount of $184,456.00.
Consider using $69,247.21 of the solid waste cash reserve to award Alternate #1 (vehicle storage
building) in the amount of $87,192.00.
BACKGROUND: The current solid waste building is used for vehicle storage, repairs and
maintenance, office, break/training room, restrooms and locker areas. The current building does
not meet the needs of the operations taking place at the landfill and the 13 member crew
currently employed in the Solid Waste Division.
Funding was appropriated in FY 07 in the amount of $125,000 for a small office addition to the
building. After reviewing the long-term needs of the division, staff determined that a more
extensive addition was needed. The FY 08 budget approved an additional $175,000 for a facility
remodel, bringing the total to $300,000.
On December 8, 2008 the Commission rejected a bid for the expansion of the building that
exceeded the amount budgeted for the project. On February 9, 2009, staff made a presentation to
the Commission on the current and projected future needs of the Division. The Commission
directed staff to proceed with a redesign and rebid the office expansion based on the FY09
budget and projected growth, and to bid the vehicle storage areas as an alternate.
A redesign of the project was undertaken to address the budget authority. Bids for the project
were opened on April 29. Eight bids were received with the low bid from BN Builders for
$184,456.00 for the office addition, and $87,192 for the vehicle storage addition. Based on the
results of the bids received, staff is requesting an award of bid to BN Builders for $184,456.00
for the for the office addition of the project. As noted in the summary of the project budget
below, this will leave $26,663.99 in the project budget.
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Because it will be most cost effective to construct the vehicle storage addition at the same time
as the office addition, Staff further recommends the vehicle storage addition bid of $87,192 also
be awarded, with the balance of $69,247.21 for that addition coming from the Solid Waste Fund
cash reserve.
FISCAL EFFECTS: A summary of the project budget is:
Project Budget $300,000.00
Construction Costs
Bid Price $184,456.00
10% Project Contingency $18,456.60
Consultant Services and Permitting
Design fees $45,000.00
Fees for re‐design $5,000.00
Fee for re‐bid $2,250.00
Permit fees $2,681.18
Impact fees $5,553.23
Owner Items
Furniture $1,000.00
Computer/IT $7,950.00
Builder’s Risk Policy $1,000.00
Remainder of Project Budget $26,663.99
Alternate #1 – Vehicle Storage. An additive alternate to increase the size of the addition to
provide increased vehicle storage was included in the bid. The price for this alternate was bid at
$87,192.00. If awarded, we recommend adding a 10% project contingency, bringing the total
cost to $95,911.20.
During the presentation to the Commission on February 9, the balance of the Solid Waste Fund
cash reserve was discussed, and the recommendation for an operations and capital reserve to be
retained in the fund was $570,000.00. After accounting for the $300,000 project budget, and
$80,000 to mitigate existing building code issues, the reserve stands at $587,000. In order to
accept the alternate for the increased vehicle storage area, we would utilize the remainder of the
project budget and some reserves. The reserve would need to be decreased by $69,247.21.
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Remainder of Project Budget $26,163.99
Alternate #1 $87,192.00
10% Project Contingency $8,719.20
Additional Reserve Amount Needed $69,247.21
ALTERNATIVES: As suggested by the City Commission.
Attachments: Bid Tab Form
Report compiled on May 13, 2009
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