03/15/2010 - City Council Finance CommitteeFINANCE COMMITTEE MEETING
MONDAY
MARCH 15, 2010
12:45 - 2:00 P.M.
CONFERENCE ROOM 1A & B
I. ROLL CALL / ADOPT AGENDA
II. REVIEW EAGAN SAFETY CAMPUS BIDS
III. OTHER BUSINESS
IV. ADJOURNMENT
City of Evan MeMo
TO: FINANCE COMMITTEE MEMBERS MAYOR MAGUIRE AND
COUNCILMEMBER BAKKEN
FROM: CITY ADMINISTRATOR HEDGES
DATE: MARCH 12, 2010
SUBJECT: REVIEW EAGAN SAFETY CAMPUS BIDS
Bids were received on the Eagan Safety Campus building portion on Thursday, March 4, 2010. The
bids for site work were received on Tuesday, March 9, 2010. The total project budget for both site
work and the actual building construction was estimated at $8 million without alternates. As a
reminder, the alternates include some upgrades at Fire Station #3 and remodeling at the Police
Station. Base bids for the building and site work total $8,424,360 or a variance of $424,360 to the
project budget. The City Administrator and Fire Chief met with Bossardt Corporation
representatives and the architect from SEH on Friday, March 12, to review the construction bids,
discuss the variance and consider options for the Finance Committee to evaluate on Monday, March
15.
As a reminder, the contracts were bid in twenty -six (26) separate bids and after meeting the morning
of the 12 one of the options for the Finance Committee to consider on Monday, is to rebid five
individual contracts that both SEH and Bossardt are convinced will bring the total cost close to the
project budget. There was also discussion about the possibility for Bossardt to work with each of
the successful bidders on the remaining twenty -one (21) contracts regardless if they were under bid
to negotiate some additional savings.
SEH and Bossardt are working on final spreadsheets that will be available for review at the meeting
on Monday.
There will also be a discussion regarding the three methodologies for bidding a project which
include PLA's, or Project Labor Agreements, prevailing and finally non - prevailing, and the
ramification each of those three options can have on the base bid for each of the 26 contracts. The
most restrictive is the Project Labor Agreements which are often required to cover all aspects of the
Davis Bacon Act and would satisfy federal stimulus funding. Prevailing wage is another category
that carries less restrictions than PLA's, requiring bidders to conform to the prevailing wage of
Dakota County. The building portion of the project was bid with prevailing wage providing a safety
net to the City if they are successful in receiving federal appropriation that could total as much as
$2.5 million. There would be no question about conformance to the Davis Bacon or using
prevailing wage rates for Dakota County under that bidding scenario.
The site work, consistent with all other Public Works projects, was bid non - prevailing.
The consultants from Bossardt and SEH will discuss the overall impact of prevailing /non - prevailing
on the base bid and what options are available to the City.
The meeting is scheduled for 12:45 p.m. in Conference Rooms 1A & 1B on the first floor of City
Hall.
Thomas L. Hedges
City Administrator