7a. Lake Ann Park Picnic Shelter Bid Opening 1 74..
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CITY OF
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690 COULTER DRIVE • P.O. 14 • CHANHASSNESOTA 55317
I (612) 937-1900 '7 FAX (612) 937-5739 EN, MIN
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IMEMORANDUM 1 0-7 As.l _ _
TO: Don Ashworth, City Manager a- -- 65 a4-y/
IFROM: Todd Hoffman, Park and Recreation Coordinator
I DATE: October 24, 1991 �_ � _
SUBJ: Review Results of October 14, 1991, Lake Ann Park Picnic/
Recreation Shelter Bid Opening, Recommendation Action
IAs you are aware, all bids received on October 14, 1991, for the
construction of the Lake Ann Park Picnic/Recreation Shelter were
I rejected by City Council action the same day. The low bid of
$279,800 was $79,800 over the budgeted amount of $200, 000 initially
approved on May 20, 1991. Speculation as to the circumstances
which led to this discrepancy is endless. However, a large portion
I of this difference is attributable to an under estimate in the area
of stone and masonry materials and installation. It had been
anticipated that a masonry contractor would be the successful
I bidder on the project. As it turned out, no masonry contractors
bid the project. In addition, perhaps 10% to 15% of the difference
may be attributable to the season in which the project was bid.
IIt is clear that the community deserves and that the City Council
has supported the construction of a shelter utilizing quality
materials and construction methods, The plans and specifications
I prepared for the shelter paralleled this desire. However, there
are areas in the construction and furnishing of the building which
can be amended at a substantial cost savings. These alterations in
I materials and construction methods will not jeopardize the
integrity of the shelter.
I Four areas of reduction include using cedar shakes vs. a metal
mansard roof above the concession area; the substitution of Indian
Creek Thin Wall for Indian Creek Stone Ashler pattern, the deletion
of portions of the building' s cabinetry and the use of a "keystone"
I or equal retaining wall in place of a stone faced retaining wall.
These changes account for an estimated cost savings of $37,500
which, when coupled with an anticipated favorable change in bids,
I may add up to a $45, 000 to $50, 000 reduction. A number of $500 to
$1, 000 items have been looked at to evaluate their corresponding
value to the project. For the most part, deletion of these type of
items does not justify the cost savings.
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tot PRINTED ON RECYCLED PAPER
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Mr. Don Ashworth
October 24, 1991
Page 2
An analogy specific to this was discovered when reviewing the files
for the Lake Susan Park Shelter building. Upon your
recommendation, I investigated these files to determine if plumbing
and electrical connections existed under the concrete slab serving
area in the shelter. Unfortunately, what I found was that for a
cost savings of $4,500 the electric hot plates, electrical outlets,
1 plumbing, sink and roll down security door had been deleted from
the project. Today, these improvements would necessitate the
estimated expenditure of $10, 000-15, 000.
The setting at Lake Ann Park is one which few communities are
availed, although most contain public buildings of this nature. I
am consciously aware of the City Council 's position on expenditures
within the city. With this knowledge well in hand, a
recommendation is respectively made for the City Council to
appropriate an additional $40,000 from the Park Acquisition and
' Development Fund reserve to accomplish this project. In doing so,
budgeted expenditures for the shelter would total $240, 000. This
recommendation is made only after an analysis of the present and
I future environment in which the Park Acquisition and Development
Budget operates was completed. A recommendation to abandon plans
for construction of the shelter would have been forwarded if this
analysis led me to the conclusion that this action would compromise
' the city's future goals in the areas of parks, recreation and
trails.
' Recommendation
It is recommended that the City Council approve a project budget of
$240, 000 for the construction of the Lake Ann Park Picnic/
' Recreation Shelter and instruct staff to coordinate the preparation
of revised plans and specifications for this project and to set a
tenative time of February 1992 to re-bid the project.
' Attachment: Letter from Scott Harri'
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VanDoren
Hazard
Stallings,Inc.
Architects• Engineers • Planners
October 23, 1991 1
Mr. Todd Hoffman
Park and Recreation Coordinator
City of Chanhassen
P. O. Box 147
Chanhassen, MN 55317
Ref: Bid Evaluation
Lake Ann Picnic Shelter
City Project No. RA-110
VHS Project No. 91-319
Dear Todd: I
Following City Council rejection of bids for the shelter building
at their October 14, 1991 meeting we have conducted a post bid
evaluation as requested. The purpose of this evaluation is to shed
some light as to the reason why bids came in higher than the
estimate and to determine the possible next step. The process
involved interviewing a number of contractors and suppliers,
comparing their cost breakdowns to our estimates and examining cost
reduction design alternatives. '
The results of this effort indicate that some components of the
project were under estimated and that there was a lack of interest
on the part of masonry subcontractors, with not one submitting a
price to the general contractors. The combination of these two
factors accounts for the majority of the cost difference.
A number of design alternatives were looked into in an effort to
reduce to project cost. While no combinations of alternatives
would make up for the total cost difference, we feel very
comfortable that re-bidding the project in the spring coupled with
some design modifications could be accomplished within budget of
$240,000.
We will be happy to discuss our findings and recommendations with
you at your convenience.
Very truly yours,
VAN DOREN-HAZARD-STALLINGS, INC. '
R. Scott Harri, Project Manager I
RSH/ev
BIDEVALL.S05
3030 Harbor Lane North, Bldg. II, Suite 104, Minneapolis Minnesota 55447-2175 (612) 553-1950