DEPARTMENT: Parks, Facilities, and Fleet Management
FILE TYPE: Regular Action
TITLE
title
Award Of Bid And Authorization To Execute Contract With Donlar Construction Company For South St. Paul Library Project And Authorization To Increase Project Budget And Amend 2022 Buildings Capital Improvement Program And Non-Departmental Budgets
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PURPOSE/ACTION REQUESTED
Authorize execution of a contract with Donlar Construction Company to complete construction of the South St. Paul Library project. This project is included in the 2022-2026 Building Capital Improvement Program (CIP) Adopted Budget. Additionally, authorize amendment to the 2022 Building Capital Improvement Program and Non-Departmental Budgets to increase the total South St. Paul Library project budget to $11,300,000 and update its funding source.
SUMMARY
By Resolution No. 22-033 (January 18, 2022), the Dakota County Board of Commissioners approved the design of the proposed South St. Paul Library and authorized staff to negotiate the terms of a joint powers agreement (JPA) to complete the City library’s merger and acquisition of land for the County’s tenth branch library location.
By Resolution No. 22-281 (June 21, 2022), the Dakota County Board of Commissioners approved the JPA between the City of South St. Paul and Dakota County. The JPA was approved with the understanding that the Board would determine funding for the library prior to award of a construction contract.
Bid documents were prepared by staff with the professional design support of BKV Group. The project was formally advertised, and competitive bids were received on August 4, 2022. The three lowest bid totals evaluated for award are as follows:
Bidder Contract Amount
Donlar Construction Company, Shoreview, MN $8,434,500
Ebert Inc. - d.b.a. “Ebert Construction”, Corcoran, MN $8,998,000
Jorgenson Construction, Inc., Minneapolis, MN $9,047,000
All bids received were complete, included a bid bond, and acknowledged the Addendums required for evaluation. The project included four Alternates to expose specific costs; three of these four were included in the totals above. All alternates are detailed in the Bid Tabulation attachment.
The original project funding was split evenly between County and State of MN Bonding funds. Although sought, the State Bonding funds were not granted. In lieu of the original funding plan, the County Board has chosen to fund the complete project with Federal ARP funds. Final Rule, 31 CFR Part 35, Subp. A, Section 35.6 (b) permits capital expenditures for projects “responding to the public health emergency or its negative impacts.” See the attached required written justification for the use of ARP funds for this capital expenditure. Furthermore, extraordinary material and energy inflation coupled with continuing labor shortages have driven construction costs up in excess of prior estimates; for the award of this bid and the execution of a contract with the above-named Contractor, and for the project to proceed further, $1,500,000 in additional funding is needed to augment the original $9,800,000 expected for the project.
RECOMMENDATION
recommendation
After reviewing the qualifications of the low bidder, staff recommends award to Donlar Construction Company as the lowest responsive and responsible bidder in an amount not to exceed $8,434,500. With this award, $147,500 of the $8,434,500 Contractor’s award total will be reimbursed to the County by the City of South St. Paul as established by the prior executed JPA. Note that this $147,500 is not included within the total project budget because it will be directly reimbursed to the County. Additionally, staff recommends an amended total project budget of $11,300,000 be approved by the Board and authorize this total to come from Federal ARP funds. This new Project Budget does not include funds to be reimbursed to the County by the City per the JPA.
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EXPLANATION OF FISCAL/FTE IMPACTS
The Adopted 2022 Building CIP Budget includes a total of $4,700,000 for the South St. Paul Library project. Based on the June Budget Workshop, this project anticipated the use of $9,800,000 of ARP funds. With a total budget amendment of $11,300,000 from ARP funding, sufficient funds will exist to award this contract and for the project to proceed into construction (see Attachment: Financial Summary). The $4,700,000 allocated prior within the Building CIP will not be used for this project.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the South St. Paul Library project was included in the 2022-2026 Building Capital Improvement Program (CIP) Adopted Budget; and
WHEREAS, bid document and specifications were prepared by County staff and BKV Group; and
WHEREAS, seven competitive bids were received on August 4, 2022; and
WHEREAS, Donlar Construction Company has the lowest bid of $8,434,500 that includes Alternates 2, 3 & 4; and
WHEREAS, staff has reviewed the qualifications of the bidder and recommend award to Donlar Construction Company as the lowest responsive and responsible bidder in an amount not to exceed $8,434,500 for the South St. Paul Library project; and
WHEREAS, the inflationary costs of materials and energy, coupled with a continuing labor shortage in the construction industry, have unprecedently escalated the required total project budget to $11,300,000; and
WHEREAS, the City of South St. Paul will directly reimburse Dakota County for an additional $147,500 of budgetary funding to complete site remediations as established in the June 2022 Joint Powers Agreement; and
WHEREAS, external revenues to support this project’s funding were requested but not received; and
WHEREAS, Final Rule, 31 CFR Part 35, Subp. A, Section 35.6 (b) permits capital expenditures for projects “responding to the public health emergency or its negative impacts.”
WHEREAS, This new library will respond to critical needs, including the areas of health care, employment, and workforce development, in a community that has been disproportionately impacted by the pandemic, with cumulative case and hospitalization rates well above the state average.
WHEREAS, as approved by Resolution No. 22-281 (June 21, 2022), the Dakota County Board of Commissioners is committed to the intentions of a Joint Powers Agreement recently executed with the City of South St. Paul to both construct the County’s tenth branch library location and assume the City’s library system into the Dakota County Library system.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Parks, Facilities, and Fleet Management Director to execute a contract for the South St. Paul Library project to Donlar Construction Company, 550 Shoreview Park Road, Shoreview, MN 55126, in an amount not to exceed $8,434,500, subject to approval by the County Attorney’s office as to form.
BE IT FURTHER RESOLVED, That the 2022 Buildings CIP Budget is hereby amended as follows:
Expense
South St. Paul Library (B30040) $6,600,000
Total Expense $6,600,000
Revenue
Dakota County ARP Funding $11,300,000
State Bonding ($ 2,350,000)
County Funding ($ 2,350,000)
Total Revenue $ 6,600,000
; and
BE IT FURTHER RESOLVED, That the 2022 Non-Departmental Budget is hereby amended as follows:
Expense
ARP Expense ($11,300,000)
Total Expense ($11,300,000)
Revenue
Dakota County ARP Funding ($11,300,000)
Total Revenue ($11,300,000)
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PREVIOUS BOARD ACTION
20-572; 11/17/20
21-321; 06/22/21
21-421; 08/24/21
22-006; 01/04/22
22-033; 01/18/22
22-281; 06/21/22
ATTACHMENTS
Attachment: Financial Summary
Attachment: Bid Tabulation
Attachment: Written Justification for the Use of ARP Funds
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
PUBLIC ENGAGEMENT LEVEL
☒ Inform and Listen ☐ Discuss ☐ Involve ☐ N/A
CONTACT
Department Head: Taud Hoopingarner
Author: Jay Biedny