7.a)2) Staff Report-Lilleskogen Parking Lot� J
SCANDIA
Staff RepoVt
Date of Meeting: July 21, 2015
To: City Council
From: Kristina Handt, City Administrator
Re: Lilleskogen Parking Lot
Background:
Bids were first solicited to complete the parking lot work at Lilleskogen in May. The low bid at
the time was $45,124.30, well over our previous estimates. The project was rebid in June. The
request for bids was sent to 23 contractors who received 3 reminders. We received 5 bids by the
deadline and the lowest was TA Schifsky at $40,475. This is still above our previous estimates
and beyond the $30,000 proposed loan from the Capital Improvement Fund to finance the
project. However, we've seen unit prices come down particularly for bituminous (was $115 now
$83) compared to the May bids.
The Park and Rec Committee discussed the bids and project at their July 6th meeting. They are
recommending the Council award the bid to TA Schifsky and process a change order to remove
work to be completed by Staff (timber log removal and restoration), provided a $10,000 donation
is secured from the Scandia Veterans Memorial Committee.
Issue:
Should the Council award the bid to complete the parking lot at Lilleskogen?
Proposal Details:
At the May meeting, the Council briefly discussed the possibility of advancing funds from the
Capital Improvement Fund to the Parks Capital Improvement Fund to pay for the parking lot.
The loan would be repaid beginning in 2016 as park dedication fees were collected.
If a change order was approved to remove some items -timber removal and restoration activities -
then the Schifsky bid would be about $37,900. The City would still have to purchase supplies
for the restoration -mulch, seed, etc -but this would bring the project costs just below $40,000. At
the PRC meeting, members of the Veterans Memorial Committee said they would donate
$10,000 towards the sidewalk, handicap accessibility items, and landscaping. This would have
brought the project costs more in line with the previous $30,000 loan advance request from the
PRC. If the Council does not approve the memorial location, you could consider removing these
items from the project in the change order to bring the cost down.
Staff had anticipated a balance of about $10,000 in the Park Capital Improvement Fund once the
Nechodom park fee is paid and the grant reimbursement from the Car Mar Watershed District is
received next month. This balance would have been enough to cover the clearing of the invasive
species so it wouldn't be included in the advance.
However, after the PRC meeting, I learned there will be additional engineering fees associated
with construction of the parking lot. Construction Inspection hours will be needed to inspect the
work and survey time to install curb stakes. Just depending how fast the work actually goes and
how much inspection is needed these costs could range from $3,500 - $5,000, and materials
testing (Concrete air, slump, cylinder breaks) and bituminous testing about $1,500 - $2,000. The
engineer did suggest we could forgo the materials testing since weight/haul tickets still will be
verified for time of delivery (with concrete) and correct material is brought to the site that
includes the proper concrete mix and bituminous mix. There will be additional billings for the
engineer's time to collect the bids the second time and prepare the change order.
Fiscal Impact:
If the project is awarded, the Council should be looking at spending about $45,000. Some
($10,000) of that could be offset by the Veterans Memorial donation though it is likely the City
would have to cash flow it until the donation is received -possibly early 2016. Alternatively, the
current balance and any funds to the Parks Capital Improvement Fund from this point forward
could be used to fund the parking lot as opposed to the clearing of invasive species. This would
reduce the amount of the loan needed between the funds.
Options:
1) Award the bid to TA Schifky for $40,425 contingent upon the approval of the change
order. Approve advance of $45,000 from Capital Improvement Fund to Park Capital
Improvement Fund to be paid back beginning in 2016 as park dedication fees are paid
and donation received from Veterans Memorial Committee.
2) Award the bid to TA Schifky for $40,425 contingent upon the approval of the change
order. Approve advance of $35,000 from Capital Improvement Fund to Park Capital
Improvement Fund to be paid back beginning in 2016 as park dedication fees are paid
and donation received from Veterans Memorial Committee. This would require the use of
the projected 2015 balance in the Park Capital Improvement Fund be used for the parking
lot -delaying the removal of invasive species until the committee raises other funds, i.e
Vinterfest donations.
3) Award the bid to TA Schifky for $40,425 contingent upon the approval of the change
order. Approve advance of $25,000 from Capital Improvement Fund to Park Capital
Improvement Fund to be paid back beginning in 2016 as park dedication fees are paid.
This would require the additional change order items to remove the sidewalk and related
materials.
4) Do not award the bid for the Lilleskogen parking lot.
Recommendation:
Option 1.