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Construction contract to Mart, Inc. in the amount of $579,000 for renovations and additions to the Transit Center Offices, located at the City’s Service Center, 4.2% contingency in the amount of $24,568, and a $40,000 furnishings allowance for a total request of $643,568
Presenter
Marshall Warder, Facilities Construction Manager
Recommended Action
Approve
Analysis
On September 6, 2011, Council approved a staff request to submit an FY 2012 grant application with the Federal Transit Administration (FTA) in the amount of $734,997 in conjunction with funding for operations and maintenance of The Grand Connection transit system. Included in that grant request was $60,000 for future preparation of architectural plans for Transit office additions and renovations. These architectural plans would allow the Transit offices, located at the City‘s Maintenance Service Center, to operate under improved conditions and to more effectively serve its clientele.
This design funding request was subsequently approved by the FTA as a part of the overall FY 2012 grant application. In November 2011, an RFQ was issued by the City seeking qualifications of architectural firms for consideration and selection to provide professional design services relative to this project. Four firms responded to the RFQ solicitation and after review by the selection committee, Komatsu Architecture graded the highest of the respondent firms. In February 2012, Komatsu was selected by the committee to commence contract negotiations, and later on September 18, 2012 Council approved a professional design services contract with Komatsu that fell within the $60,000 design grant funding amount.
Once the design services contract was executed, Komatsu commenced its efforts on the project. It was understood that until Komatsu’s design efforts reached the point that a reasonable construction cost estimate could be generated, the grant funding application to the FTA for construction dollars could not be accomplished. It was further noted that the time from preparation of the preliminary construction estimate, necessary to allow for preparation of the grant application and the subsequent consideration and approval by the FTA, could take up to a year.
That estimate of time proved to be wishful thinking, but the construction grant funding was finally received and the Architect was advised on June 4, 2014 to remobilize his efforts to bring the plans to a point of completion. Even that date stretched out, but final sealed plans and specifications were completed and received from the Architect on May 29, 2015. These plans were forwarded to the FTA to get their concurrence that all Federal requirements were in order for approval to proceed with bid advertisement and solicitation of bids. That approval came, and the plans were advertised in accordance with State law starting on June 21, 2015. Bids were received on July 23, 2015 with three bidding contractors responding.
Of the three bids, the low bid was received from Mart, Inc. with a base bid of $579,000 and 165 calendar days for completion. The remaining bids were received from Basecom Construction ($628,777 / 120 days) and Schmoldt Construction ($636,696 / 180 days). The three bids are within a reasonable range of each other, which further reinforces the validity of Mart’s bid. Mart, Inc. has performed successfully on several projects for the City in the recent past, and City staff has no concerns with recommending them for contract award by Council.
The FY14-15 grant application to FTA includes grant funding in the amount of $603,568 for construction/renovation of the Transit Offices, and $69,586 for furniture and equipment, of which FTA will fund 80% ($542,002), and the City will be required to match 20% ($131,152) of these amounts. Although FTA has assured the City that these amounts will be approved, FTA has yet to officially approve the FY14-15 grant application. This is not unusual, as it typically takes FTA more than a year to formally approve FY grants. Until actual approval is received, the City will be required to front all monies necessary for the project.
Financial Consideration
Funding in the amount of $603,568 for construction is available in 300592 (Grant Fund) 68014003 (FY14 Transit Office Expansion) 68540 (Construction); and, $40,000 for furniture and equipment is available in 300592 (Grant Fund) 68014003 (FY14 Transit Office Expansion) 68290 (Office Furniture and Equipment). The City's match was budgeted and funded as part of the FY13-14 budget through a transfer to the grant fund from 405090 (Municipal Facilities CIP Fund) 01302803 (Transit Office Expansion).