AGENDA #9

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:            Bids:  Construction of Southern Fire Station (#5)

DATE:             November 27, 2000

The attached resolutions address the bids received to construct the southern fire station. The budget ordinance would establish a project budget.

Resolution A would accept the lowest responsive bids without change and would authorize the Manager to reduce the scope of the building in order to reduce the overall cost of the project.

Resolution B would accept the lowest responsive bids and award contracts for the construction of the Southern Fire Station (#5).

Resolution C would reject all bids and authorize the Manager to rebid the project.

The attached budget ordinances would increase the current project ordinance established earlier for this project by $223,000 to provide additional funding necessary to co0mplete the project as recommended in discussions below.

BACKGROUND

The Town Council has allocated $1,300,000 of the 1996 Public Safely Bonds issue of $2 million for the construction and equipping of a southern fire station.  Of this total, $300,000 has been encumbered towards the purchase of a fire pumper. 

In April 1998 the Council authorized the purchase of 8.72 acres at the southeast corner of Bennett Rd. and 15-501 south for the purpose of siting a fire station and preserving open space.  Approximately 1.1 acres of the site has been subdivided for the fire station. 

In November 1998 the Council appointed a Citizens Fire Station Design Committee and charged them with the selection of an architect and working with that architect on the design of the project.  This committee included two Council members, two neighborhood association representatives, a Citizen’s Energy Task Force representative and Town Staff representing the Manager, Fire, Police, Engineering, Public Works and Planning Departments.  In February 1999 Michael Hining Architects (MHA) was selected.  The Town Council approved the preliminary design in October, 1999.

Project Description:

The Southern Fire Station (#5) is designed to regularly house a crew of four firefighters, with room for eight during major emergencies.  It will also provide a bay area for two large fire apparatus.  The 5,165 square feet includes two apparatus bays, four dormitories, two shower/restrooms, one public restroom, a kitchen, dayroom (living and dining), storage/utility rooms, Station Captain’s office, hazardous decontamination room, public reception area, patio area and work areas. 

Bid Procedures

The notice to Bidders was published in the October 4, 2000, edition of the Chapel Hill News and the Chapel Hill Herald and in the October 5, 2000 edition of the Challenger Newspaper, Wilmington, North Carolina.  Specifications, plans and contract documents were available for inspection in the office of Michael Hining Architects; and Plan Rooms of the Associated General Contractors in Raleigh, Fayetteville and Greensboro, N.C., at Dodge SCAN, Atlanta, Ga. and Construction Market Data Plan Room in Raleigh, N.C. 

On Wednesday, November 1, 2000, at 3:00 p.m., we received sealed bids for the construction, electrical, mechanical and plumbing work for the construction of the Southern Fire Station.  In accordance with North Carolina General Statute 143-128, the following bids were received.  The figures below are the adjusted bids, calculated by Michael Hining Architects, which reflect equivalent base bid numbers with unit pricing allowances deducted.  Unit prices given by contractors were included to address potential, unforeseen site conditions; and were removed to show true base bid numbers for the work specified.  Adjusted bids ensure a level playing field when comparing the bid amounts.

Single Prime Contract For Entire Project

Multiple Prime Contracts

Evaluation of Bids

Two companies bid the project as single prime contractors and twenty-two companies bid the project as multi-prime contractors. The sum of the lowest responsive general, plumbing, mechanical and electrical multi-prime bids is lower than each of the two single prime bids.  Therefore, four prime contactors will build this project, each working directly for the Town, with the work coordinated by the general contractor.

The bid of Sparrow Plumbing was determined to be unresponsive due to omissions and oversights.  The bid of Shalimar Construction was withdrawn because of an arithmetic error.

The remaining bids of the general contractors were analyzed and, so noted above, then adjusted to remove unit price allowances for potential site work. Unit prices for such work had been requested with the bids to set prices for site work which may arise during construction.  The lowest responsive bids from general contractors bidding as multi-primes are: Resolute Building Company ($764,925); Triangle Electrical Services ($72,500); Vickers & Ruth Plumbing ($79,069); and Cooper Mechanical ($34,000) for a total of $950,454.

Add alternates to the base bid included the following:  an emergency generator to power the station during power outages, wallbeds that fold out of the walls allowing two personnel to sleep in each room without the need to change bedding, and food lockers to store staples for each shift.

Budget

Initial estimates, developed in 1996, assigned a project budget of $1,000,000 in preparation for the 1996 Public Safety Bond.  This amount was funded through the 1996 Public Safety Bond referendum and was ear marked for design, land acquisition and construction of the station.  During the design and development phase of the project, cuts were made to the building program and design in an attempt to stay within the $1,000,000 budget.  With the receipt of the construction bids, the deletion of all alternate and additional cuts will be required to keep the project within the budget.  .  For purposes of this memorandum, construction figures from the low multi-prime bidders are used for actual budget figures.  The cost savings for deleted items have been negotiated with Resolute, pending Council approval.

Below are the projected costs of the project. 

DISCUSSION OF OPTIONS

Funding for the Southern Fire Station is $1,000,000 from the 1996 bonds.  The cost for acquiring the land was less than projected, but costs to provide water and sewer to the site were considerably more than expected.  The cost of extending water and sewer lines from Bennett Road to the existing mains in Southern Village is being shared equally by the developer of One Hundred Oaks, as a part of the agreement to buy the fire station site.  Nevertheless, DOT’s improvements to the US 15-501/Bennett Road intersection have increased the cost of utilities and changes in DOT’s plans increased the cost of design work.

From the start of the design process, it was clear that the budget was very limited.  In fact, when the conceptual design was presented to the Council, the following items were removed:  a community meeting room, office space to function as a police sub-station, a pull through apparatus bay with circular drive and a fitness/workout room for fire and police employees stationed in the southern district.  Although each of these features was reasonably warranted, the final bid documents were pared to include only those elements absolutely necessary to the function of the fire station, as well as what is necessary to meet the ordinance requiring Town buildings to be 30% more energy efficient that the State Building Code requires, regulations of the Occupational Safety and Health Administration (OSHA), and the standards of the American with Disabilities Act. 

Nevertheless, after reviewing the bids submitted, we worked with our architects, engineers and Resolute Building Company to identify additional savings that might be possible. We considered and discarded suggestions, which would contradict clear Council policies, such as deleting the sprinkler system, deleting the bio-retention pond and water garden, and replacing the aerated concrete blocks with standard framing.  We do, however, recommend a list of other changes and deletions, which would save a total of $69,450.  The most obvious change, substituting an angled, single-pitch shingled roof for the rounded, standing seam metal roof over the equipment bay carries with it the bulk of the cost savings proposed:  $45,000.  

We itemize below potential money-saving changes, the negotiated cost savings and explain the impacts of each.  Attachments 1, 2, and 3 describe them in greater detail.  Also, the sketches in Attachment 4 through 6 show the recommended changes.

OPTION A

(Change project, save $69,450 and use $222,804 additional funds)

We believe that the following reductions can be implemented with little or no negative impacts to the energy-efficient design proposed by the architect:

• Substitute an interlocking block retaining wall for the poured in place concrete retaining wall on the west side of the parking lot.  No substantial change in performance or design. 

Cost reduction:  $10,000.

• Substitute translucent insulated storefront glazing system for the translucent wall panel system specified.  The translucent wall panel, (Kalwall or equivalent) system was recommended by the NC Solar House Center and implemented to provide sufficient day lighting to reduce energy use, provide more livable spaces and maintain minimal energy use goals.  The substitution would affect the design aesthetics somewhat, maintain day lighting and effect energy efficiency minimally.

Cost reduction:  $6,200

• Substitute 3:12 pitch wood joists, wood roof deck and composition shingle roof for bowstring steel trusses, steel roof deck and architectural standing seam metal roofing.  Design would be substantially changed, though the day lit bay would be maintained.  The  apex of the roof would be four to six feet higher to achieve the necessary pitch for the shingles.  The interior of the bay would have more roof trusses, because of the need to accommodate the heavier wood roof deck.  Therefore, the interior space would be less aesthetically pleasing than the original design or the shingled roof with a smaller number of steel joists.

Cost reduction: $45,000   .

• Substitute pre-manufactured kitchen cabinets for the specified custom laminate cabinets.  This would not affect performance.

Cost reduction:  $900.\

• Delete the sidewalk from Bennett Road right of way to the North side of the steps and consider including it in the CIP sidewalk program. 

Cost reduction:  $950.

• Reduce courtyard paving area by 75% and plant grass instead.  This would reduce the utility of the patio, but it could be paved at a later date.

Cost reduction:  $1,300.

• Delete the flagpole.  This could be added at a later date.

Cost reduction:  $1,100.

• Substitute low maintenance ground cover in place of shrubs and tree plantings on eastern steep slope.  This would have an aesthetic impact, but the slope would slowly become reforested, and the substitute plantings would hold the slope.

Cost reduction:  $4,000.

The total amount of savings to be achieved by the above reductions is $69,450.  The project budget would need to be increased by $222,804.  If this approach were taken, we would recommend that additional funds be transferred from the following places:

            Anticipated interest earnings on public safety bond proceeds                                                 $120,.000

            Final unallocated fund balance from Capital Reserve Fund                                75,000

            General Fund Balance                                                                                                                                                  28,000

                Total             $223,000

We anticipate that about $120,000 in interest would be earned on the public safety bonds between the time they were sold in March, 2000 until the fire station project is completed, and recommend allocation of all of this interest to the project.  In addition, we recommend allocating the final unallocated fund balance in the Capital Reserve Fund for the fire station project, with the remainder of $28,000 needed for the total project budget from fund balance in the General Fund.

Advantages:

• Energy efficiency of the building is not significantly reduced.
• Reduces amount of funds needed to be re-allocated.
• Reductions do not negatively impact functional needs of Fire Department employees stationed at the building.
• Daylighting would remain.

Disadvantages:

• Changes to roof appearance and structure would be substantial.  The partial wall of glass associated with the roof design would increase in height by 4 to 6 feet.
• Long-term maintenance costs for this portion of the roof would increase due to change in construction materials.

The architect and Fire Department staff identified other possible reductions that might be considered.  They include:

• Maintain the metal roof structure but use straight roof trusses instead of curved roof trusses.   This item would change the appearance of the building but has virtually no advantage to cost reduction.

Cost Reduction:  $2,000

• Change metal roof to composite shingles and metal roof trusses instead of wood joists.  This change would be similar to the one proposed above, but the use of steel, instead of wood, joists would reduce the number of joists needed.  The primary impact would be an improved appearance from the interior of the bay, compared to the roof changes recommended above.

Cost reduction over roof originally specified:  $45,000

Cost increase over shingled roof with steel bar joists:  $13,500

• Replace roof gable end detail at northwest corner with folded shingle roof.  This change would significantly reduce daylighting in the office area, public restroom and entryway of the station, and would dilute the effort to emphasize the public entrance at that corner of the building.

Cost reduction:  $1,100

OPTION B

(Accept bids as received, use $292,254 in additional funds)

The project budget would be increased by up to $292,254.  If this approach were taken, we would recommend that additional funds be transferred from the following places:

            Anticipated interest earnings on public safety bond proceeds                                                 $120,.000

            Final unallocated fund balance from Capital Reserve Fund                                75,000

            General Fund Balance                                                                                                                                                  97,000

                Total             $292,000

Under this option, we recommend the same revenue sources as noted for Option A, except that $97,000 would be required from fund balance in the General Fund to build the project as this level.

Advantages:

• Construct the Southern Fire Station as it was designed and presented to various citizen groups and Town Commissions.
• Maintain original design proposed by architect based on aesthetics, energy efficiency requirements and maintenance upkeep criteria.

Disadvantages:

• Additional funds needed to increase budget would be taken from other projects or funds.

OPTION C

(Rebid the project)

The Town could reject all bids because they exceed the Town’s budget for the Southern Fire Station construction.

After analyzing the current bids, we believe that rebidding the project without substantial redesign would most likely result in bids that are the same or higher than those already received.  We do not think that the basic conditions which resulted in the high bids would change over the next 6 to 9 months.  We believe that the number of bids received within a relatively small range suggest that they were reasonable for the type of structure specified and the requirements of the higher energy efficiency standards followed.   Additionally, rebidding might result in higher than normal bids because of the increased construction activity related to the recently approved Higher Education Capital Bond.

Rebidding after a redesign could result in lower bids.  However, we do not now believe it is realistic to expect that we could design a structure to meet the functional needs of a fire station and do so in a way which uses 30% less energy than the building code would allow, while keeping within the original budget.

Advantages:

• There is a possibility that lower bids could be received.

Disadvantages:

• There is a possibility that higher bids could be received.
• The rebidding process would delay the start of construction by at least two months. Delay in opening the fire station means additional costs in providing fire services to the area to be annexed on June 29, 2001.

CONCLUSION

The bids received for construction of the Southern Fire Station (#5) project, the cost of various associated fees, and the establishment of a reasonable contingency allowance have resulted in a projected project budget deficit of $292,254 if the project is built as designed.

We believe that the Council has three main options.  One approach would be to use a combination of reductions in the scope of the project and an increase in the project budget.  This approach would limit the needed budget increase to $222,804, while the building would change in appearance from the inside and from the outside.

A second option would be for the Council to accept the current low bids and utilize other funding sources to increase the project budget.  This approach would result in construction of the Southern Fire Station as designed, but require that $292,254 be added to the budget.

The third option available to the Council would be to rebid the project.  However, we can find no reason to believe that this approach would result in lower bids.

RECOMMENDATION

Manager’s Recommendation:  That the Council adopt Resolution A accepting the negotiated bids of Resolute Builders, General Contract ($695,475); Triangle Electrical Services, Electric Contract ($72,500); Vickers & Ruth Plumbing, Plumbing Contract ($79,069); and Cooper Mechanical, Mechanical Contract ($34,000) for a total amount of $881,044, for the construction of the Southern Fire Station.  In addition, the Manager would be authorized to reduce the scope of the project by making the changes described above in Option A, for a total reduction of $69,450.

With this option, we recommend that the Council adopt the attached budget ordinances increasing the Southern Fire Station project budget by $223,000 from sources as noted above.

Alternate Resolution B would authorize the Manager to accept the bids of Resolute Builders, General Contract ($764,925); Triangle Electrical Services, Electric Contract ($72,500); Vickers & Ruth Plumbing, Plumbing Contract ($79,069); and Cooper Mechanical, Mechanical Contract ($34,000) for a total amount of $950,454, for the construction of the Southern Fire Station. 

 If the Council adopts Resolution B, the recommended budget ordinances would need to be adjusted to reflect the greater use of $97,000 from fund balance that would be required under this option.

Resolution C would reject all bids and authorize the Manager to rebid the project.

ATTACHMENTS

1.      Letter of November 16, 2000 from Michael Hining Arcitects (p. 18).

2.      Letter of November 14, 2000 from Michael Dykes (p. 20).

3.      Original Design Elevation (p. 22).

4.      Alternate Design #1 Elevation (p. 23).

5.      Alternate Design #2 Elevation (p. 24).

6.      Site Plan Changes (p. 25).

RESOLUTION A

A RESOLUTION ACCEPTING BIDS, AWARDING THE CONTRACTS FOR THE CONSTRUCTION OF SOUTHERN FIRE STATION (#5), AND AUTHORIZING A REDUCTION IN THE SCOPE OF THE PROJECT (2000-11-27/R-11a)

WHEREAS, the Town of Chapel Hill has solicited formal bids by advertisement in The Chapel Hill News on October 4, 2000, The Chapel Hill Herald on October 4 2000, and the Challenger Newspaper on October 5, 2000 and in accordance with G.S. 143-128 for the construction work; and

WHEREAS, the following bids were received and opened on November 1, 2000:

SINGLE PRIME CONTRACT FOR ENTIRE PROJECT

MULTIPLE PRIME CONTRACTS

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town accepts the bids and awards contracts to Resolute Builders, General Contract ($695,475); and Triangle Electrical Services, Electric Contract ($72,500); Vickers & Ruth Plumbing, Plumbing Contract ($79,069); and Cooper Mechanical, Mechanical Contract ($34,000) for a total amount of $881,044 for the construction of Southern Fire Station (#5).

BE IT FURTHER RESOLVED that the Council hereby authorizes the Manager to further evaluate all potential cost savings, to reduce the scope of the project where appropriate, and to substitute materials in order to reduce the overall costs for construction of the Southern Fire Station (#5), such changes to substantially follow the list below:

• Substitute an interlocking block retaining wall for the poured in place concrete retaining wall on the west side of the parking lot.
• Substitute translucent insulated storefront glazing system for the translucent wall panel specified.
• Substitute pitched wood joists, wood roof deck and composition shingle root for bowstring steel trusses, steel roof deck and standing seam metal roofing.
• Substitute pre-manufactured kitchen cabinets for the specified custom laminate cabinets.
• Delete the sidewalk from Bennett Road right of way to the North side of the steps.
• Reduce courtyard paving area by 75% and plant grass instead.
• Delete flagpole.
• Substitute low maintenance ground cover in place of shrubs and tree plantings on eastern steep slope.

This the 27^th day of November, 2000.

RESOLUTION B

A RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACTS FOR THE CONSTRUCTION OF SOUTHERN FIRE STATION (#5) (2000-11-27/R-11b)

WHEREAS, the Town of Chapel Hill has solicited formal bids by advertisement in The Chapel Hill News on October 4, 2000, The Chapel Hill Herald on October 4 2000, and the Challenger Newspaper on October 5, 2000 and in accordance with G.S. 143-128 for the construction work; and

WHEREAS, the following bids were received and opened on November 1, 2000:

SINGLE PRIME CONTRACT FOR ENTIRE PROJECT

MULTIPLE PRIME CONTRACTS

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town accepts the bids and awards contracts to Resolute Builders, General Contract ($764,925); and Triangle Electrical Services, Electric Contract ($72,500); Vickers & Ruth Plumbing, Plumbing Contract ($79,069); and Cooper Mechanical, Mechanical Contract ($34,000) for a total amount of $950,454 for the construction of Southern Fire Station (#5).

This the 27^th day of November, 2000.

RESOLUTION C

A RESOLUTION REJECTING ALL BIDS AND AUTHORIZING THE REBIDDING OF THE SOUTHERN FIRE STATION (#5) (2000-11-27/R-11c)

WHEREAS, the Town of Chapel Hill has solicited formal bids by advertisement in The Chapel Hill News on October 4, 2000, The Chapel Hill Herald on October 4 2000, and the Challenger Newspaper on October 5, 2000 and in accordance with G.S. 143-128 for the construction work; and

WHEREAS, bids were received and opened on November 1, 2000; and

WHEREAS, the low responsible bids for the project exceeded the available project budget.

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town rejects all bids for the construction of the Southern Fire Station (#5) and authorizes the Manager to rebid the project.

This the 27^th day of November, 2000.

AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2000 (2000-11-27O-7a)

BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2000” as duly adopted on June 26, 2000 be and the same is hereby amended as follows:

ARTICLE I

                                                  Current                                                             Revised

APPROPRIATIONS   Budget            Increase            Decrease         Budget

CAPITAL RESERVE

FUND    

     Transfer to Fire Station

            Capital Project Fund             370,000          75,000             445,000

GENERAL FUND

     Transfer to Fire Station

            Capital Project 0            28,000             28,000

ARTICLE II

            Current                                    Revised

REVENUES            Budget            Increase            Decrease         Budget

CAPITAL RESERVE

FUND

         Fund Balance                          370,000                  75,000                                    445,000          

GENERAL FUND

        Fund Balance                        2,299,990               28,000                                 2,327,990

This the 27^th day of November, 2000.

AN ORDINANCE AMENDING THE CAPITAL PROJECT ORDINANCE FOR POLICE AND FIRE FACILITIES AND EQUIPMENT FROM 1996 BONDS (2000-11-27/O-7b)

BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the following capital project established for construction of a Fire Station and purchase of firefighting equipment and for renovations of the Police Headquarters funded from bonds approved by the voters in November, 1996 is hereby amended as follows:

SECTION I

The capital projects as authorized by bond referenda approved in November, 1996 includes the capital costs of constructing a fire station and purchase of a fire pumper and for renovations and capital improvements to the Police Headquarters.

SECTION II

The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.

SECTION III

Revenues anticipated to be available to the Town to complete the project are as follows:

                                                                                         Current                         Revised

                                                                                          Budget                   Budget

Bond Proceeds                                                                   2,000,000         2,000,000     

Interest on Bond Proceeds                                                                0            120,000

Transfer from Capital Reserve Fund                                                 0              75,000

Transfer from General Fund                                                             0              28,000

                                                                        Total           2,000,000                2,223,000

Amounts appropriated are for the project as follows:           

Fire Facilities and Equipment                                           1,300,000         1,523,000       

Renovations and Improvements to Police Headquarters      700,000            700,000

                                                Total                                  $2,000,000        2,223,000

SECTION IV

The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.

SECTION V

Copies of this ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Clerk.

This the 27^th day of November, 2000.