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9.a award bid for oakhill storm shelter Staff Report Date of Meeting: April 19, 2016 To: City Council From: Neil Soltis, Administrator Re: Award contract for Oakhill Storm Shelter Background: In May, 2015 the City entered into a funding administration agreement for a FEMA hazard mitigation grant for the construction of a storm shelter on property owned by the Washington County Housing and Redevelopment Authority HRA) at 14600 Oakhill Road. Under the terms of the agreement the HRA has assumed the administrative role on the pro ject and has publicly bid the project. The City is the grantee in the project and must take action to award the bid. Issue: Should the city approve the award of the contract for the construction of the storm shelter to Crest Precast of La Cresent, Minnesota. Details / Discussion: The HRA bid the project and a single bid of $122,000 was received from Crest Precast of La Cresent, Minnesota. The HRA has sufficient funds available to meet the local share of the grant. Financial impacts: None, the funds pass through the City but the City will incur no costs. Options: 1. Award the bid to Crest Precast 2. Reject the bid and request the project to be rebid Recommendation: Award the bid to Crest Precast WASHINGTON COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION April 19, 2016 BOARD MEETING DATE AGENDA ITEM A- Community Development ORIGINATING DEPARTMENT/SERVICE Melissa Taphorn 4/5/16_ REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution Authorizing Execution of a Construction Contract for the Oakhill Storm Shelter Project BACKGROUND/JUSTIFICATION In April of 2014, the Oakhill storm shelter project was awarded federal funding from the Hazard Mitigation Assistance Program administered by the Minnesota Division of Homeland Security and Emergency Management. The grant will pay for 75 percent of the project cost with a 25 percent local match. The need for a storm shelter has been a long standing resident request because the buildings do not have basements that can serve as areas of refuge during storm events. Initially the project was bid out as a new construction project with architect prepared plans and specifications. The bids received, however, were over budget and did not meet federal cost viability requirements. Staff researched various prefabricated models as a more cost effective alternative to new construction. Staff developed project specifications with help from the local Building Official and the state Hazard Mitigation Officer to include in a Request for Proposals (RFP) for the project. Staff solicited proposals for the project by advertisement on March 11 and 18, 2016. Staff identified five prospective bidders who expressed interest in the project and the RFP was posted at a plan room. All of the bidders are located outside of the metro area and all but one were located in other states. For this reason, a pre-bid meeting was not held, however, the project conditions state that the contractor must conduct a site visit to verify the shelter locations before the project can move forward. Any change in the shelter locations or other scope of work elements will require approval from the state. The bid opening occurred on March 25, 2016 and one bid was received from Crest Precast of La Crescent, Minnesota. The HRA Procurement Policy follows federal procurement regulations and Section 85.36(d)(4)(D) of the federal code provides for sole source contracts in cases such as this when multiple bidders are solicited but only one bid was actually received. Storm shelters are a regular part of Crest Precast’s product line, although much of its business is with other precast products. Their experience building and installing prefabricated storm shelters includes nine projects with shelters ranging in capacity from 20 to 250 people across six states, including one in Montevideo, Minnesota that used the same federal funding source. The 2016 HRA Capital Improvement Plan budget includes funding for 25 percent of the estimated construction cost, which was lower than the bid amount. The difference between the budgeted and actual HRA cost share amounts is $6,000, which can be absorbed by the annual budget contingency. The City of Scandia is the official federal funding grantee and will consider the award of this contract at its April 19, 2016 City Council meeting. Staff recommends the Board adopt the resolution to authorize execution of a construction contract with Crest Precast Inc. for the base bid amount of $122,000 plus change order authority of up to 10% of the construction contract, equal to $12,200, for a total authorization amount not to exceed $134,200. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED RESOLUSTION NO. 13-36 RESOLUTION AUTHORIZING APPLICATION TO THE HAZARD MITIGATION ASSISTANCE PROGRAM AND FUNDING MATCH EXECUTIVE DIRECTOR/DATE: Barbara Dacy 4/11/16 ATTACHMENT LIST: Attachment A – None FINANCIAL IMPLICATIONS: $134,000 BUDGETED: YES NO FUNDING: 2016 CIP $31,500 & FEMA funds $91,500 COMMENTS HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE COUNTY OF WASHINGTON STATE OF MINNESOTA RESOLUTION NO. 16- RESOLUTION AUTHORIZING EXECUTION OF A CONSTRUCTION CONTRACT FOR THE OAKHILL STORM SHELTER PROJECT WHEREAS, the Washington County Housing and Redevelopment Authority (the “Authority”) owns and operates the Oakhill Cottages (the “Property”) in the City of Scandia; and WHEREAS, the Authority has established a capital improvements plan (the “CIP”) to ensure that properties are maintained in a safe, decent and sanitary condition; and WHEREAS, the Authority staff has identified a need for a storm shelter (the “Project”) to act as an area of refuse during severe weather events at the Property; and WHEREAS, the Project, through the City of Scandia, was awarded funding from the federal Hazard Mitigation Assistance Program administered by the Minnesota Division of Homeland Security and Emergency Management in April 2014; and WHEREAS, the Authority developed project specifications with assistance of the local Building Official and a state Hazard Mitigation Official to be included in a Request for Proposals (the “RFP”) to construct and install two prefabricated storm shelters at the Property; and WHEREAS, the Authority solicited proposals by advertisements for this project on March 11 and 18, 2016 with a proposal due date of March 25, 2016; and WHEREAS, Crest Precast submitted the one proposal received in response to the RFP in the amount of One Hundred Twenty-Two Thousand dollars ($122,000.00), which was determined to be a responsive and responsible bid; and WHEREAS, Authority Procurement Policy and federal code provides for sole source procurement in situations like this in Section 85.36(d)(4)(D); and WHEREAS, funding for the project is available from the federal grant award to pay for seventy-five percent of project costs and the Authority’s 2016 CIP budget to pay for the required twenty-five percent local match. NOW , THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE WASHINGTON COUNTY HOUSING AND REDEVELOPMENT AUTHORITY, AS FOLLOWS: 1. That the Executive Director is hereby authorized to execute a construction contract with Crest Precast, Inc. for One Hundred Twenty-Two Thousand dollars ($122,000.00). 2. That the Executive Director is hereby authorized to approve change orders in an amount not to exceed Twelve Thousand Two Hundred dollars ($12,200.00). 3. That the Executive Director is hereby authorized, empowered, and directed to execute and deliver in the name and on behalf of the Authority any other documents and instruments in such form and on such terms and conditions as she deems necessary or appropriate in connection with the architectural services agreement as contemplated above. 4. That the Executive Director is hereby authorized, empowered, and directed to do all other acts and things as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolutions. 5. The Deputy Executive Director of the Authority is hereby authorized and directed to exercise all powers and perform all responsibilities of the Executive Director provided in this Resolution if and to the ext ent the Executive Director cannot exercise or perform the same to absence or other inability. Adopted this 19th day of April 2016. _____________________________ Chair ATTEST: __________________________________ Secretary