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Home My WebLink AboutRes2008-032Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-032 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH UNIT COMPANY TO PROVIDE ONSITE AND OFFSITE CONSTRUCTION SERVICES TO CONSTRUCT A NEW LONG-TERM CARE FACILITY, IN AN AMOUNT OF $20 MILLON DOLLARS, PROVIDED THE FINAL CONTRACT INCLUDING SUBSTITUTIONS AND CHANGE ORDERS WILL NOT EXCEED $22 MILLION DOLLARS WHEREAS, after completing the initial planning and design for the new long-term care facility ("Facility"), a five member Request for Proposals ("RFP") team was assembled to develop a RFP and bid packet for construction of the new Facility, with said team consisting of representatives from the City of Seward, Providence Seward Medical & Care Center, and Architects Alaska; and WHEREAS, the City issued the RFP in early February, advertising in the Seward ..r Phoenix LOG, the Anchorage Daily News, Seattle Times, Portland Oregonian, and online Plans Rooms, held a mandatory pre-bid conference on February 12, 2008, and extended the proposal due date to March 11, 2008; and WHEREAS, the City received four bids and evaluated the bids based on seven basic criteria established in the RFP, including experience, presentation, resources, project team, references, litigation, and bid price; and WHEREAS, the evaluations were sununarized based on a point matrix system and the firm scoring the highest points was selected as the contractor of choice; and WHEREAS, because none of the bid proposals came in within the established price range in the RFP, it was necessary to engage in weeks of negotiations and value engineering with the prospective bidder to bring the proposal price to within the funding available for the project. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is herby authorized to enter into a contract with UNIT Company to construct the new long-term care facility, including all associated on-site and off-site utilities identified within the initial proposal, including Additive Alternates A and B. CITY OF SEWARD, ALASKA RESOLUTION 2008-032 Section 2. Funding in the amount of $22 million dollars is hereby appropriated from the Long-Tenn Care Facility bond proceeds account no. 670-6700-4100 to the contracted services account670-6700-5390. Section 3. The Council hereby authorizes the City Manager to negotiate and approve substitutions and change orders such that the final contract, including substitutions and change orders, will not exceed $22 million dollars. Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of April, 2008. THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor AYES: Dunham, Valdatta, Bardarson, Smith, Kellar, Corbridge NOES: None ABSENT: Amberg ABSTAIN: None ATTEST: City (City Seal) C7'~-1a'- M ' • Al L~ a r ~'~'~ ? M~~ • •i~~~TE 0 :.R`~~~~ Council Agenda Statement Meeting Date: April 14, 2008 Through: Phillip Oates, City Manager From: Kristin Erchinger, Finance Director Agenda Item: Award of Construction Contract for Long-Terns Care Facility BACKGROUNll & JUSTIF1CATlON Ou November 28, 2005, the Seward City Council approved the planning and design conh•act for the new long-term care facility ("Facility"), which began the process of replacing Seward's existing long- term care facility. Upon completion of planning and design, a five member Request for Proposals ("RFP") team was assembled to develop an RFP and bid packet for construction of the new Facility. fhe RFP team consisted of representatives from the City of Seward, Providence Seward Medical & Care Center, and Architects Alaska. After several months of scope development, careful planning and scheduling, criteria development, and multiple reviews, including review by the City attorney, the RFP and bid packet were advertised and made available to the public. Advertisement took place in the Seward Phoenix LOG, the Anchorage Daily News, Seattle Times, Portland Oregonian, and online constnrction plans rooms, in an effort to seek the widest possible range of highly qualified proposers. A mandatory pre-bid conference was held on February 12, 2008. The proposal due date was extended to March 11, 2008, to accommodate requests from prospective bidders. The City received a total of four bids from well qualified construction contractors. The grading criterion was methodically developed and consisted of seven elements, including: experience (20%), presentation (5%), resources (5%), project team (20%), references (10%), litigation history (l0%), and bid price (30%). Each ofthe elements were evaluated based on a specific questions provided to the prospective bidders in the bid packet. These questions addressed the firm's previous construction experience with similar projects, experience in cold weather climates, the ability to work with stakeholders and the community to address community needs and concerns, their previous history with litigation, their history with projects coming in on time and under budget, etc. The evaluations were summarized based on a point matrix system. After a very thorough, multi-day review process, UNIT Company emerged as the clear firm of choice, scoring the highest on nearly every evaluation criterion. None of the submitted bids came in within the initial price range established in the RFP, between $15 and $20 million. Therefore, after the apparent winning bid was deter-rnined, it was necessary to engage in two weeks of negotiation with. the contractor to value engineer the project down to within the available budget for the project. C]TY OF SEWARD RESOLUTION 2008-032 Based on extensive and successful negotiations with the firm of choice, the administration seeks Council approval to award a construction contract in the amount of $22 million dollars (the contract is initially in the amount of $20 million dollars, provided the final contract including substitutions and change orders will not exceed $22 million dollars) to UNIT Company, for the purpose of constructing a new long-term care facility, including on-site and off-site utilities. CONSISTENCY CHECKLIST: Where applicable, this Resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council FZules of Procedures. Other: FISCAL NOTE The City of Seward has issued $27 million in revenue bonds through the Alaska Municipal Bond Bank for this project. The total funding for the project does not include funding for any potential contingency associated with the construction contract. The Seward City Council authorized specific negotiation strategies related to the project, agreeing to appropriate $115,000.00 from the Electric Enterprise Fund, $83,000.00 from the Water Enterprise Fund, $192,000.00 from the General Fund, and $306,953,00 from the Wastewater Enterprise Fund, as a loan to the long-term care Facility, to be repaid to the loaning Funds. Approved by Finance: RECOMMENDATION City Council approve a construction contract with UNIT Company in an amount not to exceed $22 million dollars for construction of a new long-term care facility, and appropriate funds. S:\RG:SOLU'rIONS\2008108-032 LTCI' Construction Contract AS.da: