CCP 06-07-1999 - Laserfiche WebLink

Home Browse Search

. - - CITY OF ARDEN HILLS MEMORANDUM DATE: June 7, 1999 TO: Mayor and City Council Terrance R. Post, City Accountan~ FROM: SUBJECT: Administrator Comments for the June 7, 1999 Special Council Meeting City Hall Construction Bid Consideration At the August 31, 1998 regular City Council meeting, Architectural Alliance was authorized to proceed with the preparation of construction plans for the new City Hall project. Based upon information received from the Minnesota Army National Guard about the high probability of a land transfer to that organization occurring March 15, 1999, the City proceeded with bidding for the project. A bid opening was scheduled for March 11, 1999, with the City also accelerating negotiations with the Minnesota Army National Guard for a draft ground lease for a City Hall parcel. The City received bids from nineteen (19) bidders on March II, 1999, with Rochon Corporation, the remaining apparent low bidder at $2,176,000 (with brick exterior) and base bid $2,489,000 (with stone exterior). The architect-prepared Bid Proposal Form Contract Provisions state that".... the undersigned (Rochon) agrees that this bid may not be withdrawn for a period of ninety (90) calendar days immediately following the date ofreceipt of bids." We calculate this date to be June 9,1999. The land transfer to the Minnesota Army National Guard did not occur on March 15, 1999. Since then, the City has sought a legislative solution to the land acquisition goal. This strategy has produced positive results, but has not yet been finalized from a timing perspective. In light ofthe timing concern, City Administrator Fritsinger has been in contact with the Architect, apparent low bidder Rochon Corporation, and City Attorney Filla, to identify other options. The apparent low bidder, Rochon Corporation, has indicated it would be willing to extend its bid guarantee until August 1, 1999, with the condition that the City be liable for $19,800 of additional winter heat and cover costs. City Attorney Filla has recommended that the City in some way take formal action to bring closure to the bid process before the ninety (90) day expiration date. Recommendation City Attorney Filla will be preparing Resolutions for the Special Council meeting (to be distributed at the meeting) that would either, (1) support extending the bid acceptance date with the apparent low bidder subject to the City gaining legal access to the site by a date certain (August 1, 1999) and its willingness to consider a Change Order for additional winterization costs; or (2) rejecting all bids.