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