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Home My WebLink AboutCOM 0597.000 2004-2006 MtV or N Harry Kim ~o William Takaba dlu,vr- Uirecmr Nancy E. Crawford 1j•.~ Uepul}~Umeclar County of Hawaii Finance Department 22 Auponi titrtcL 2uom I IR • Hilo, Ilawaii 9G72U 1808)961-8219 . Pax (R08)961-8'78 December 9, 2005 Stacy K. Higa, Chairman and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: East Hawaii Reload Facility Enclosed is a bill for an ordinance amending the Capital Budget by appropriating an additional $3,900,000 to the East Hawaii Reload Facility project and increasing this year's funding from $2,200,000 to $6,100,000. Previously, Ordinance No. 05-131 had appropriated $2,200,000 towards this project, however, since that time of its passage, the bids for this project have been received. The lowest basic bid price received was $9,338,285 and after adding in related expenses for construction management and field change orders, the expected total project cost is $10,088,285. With the previous funding appropriated at $6,200,000, this will leave a shortfall of $3,888,285. If the additional funding is approved, the County can proceed to award the contract for the purpose of constructing the reload building, the associated roads and utilities, as well as the scale house and scales. This would correspond to the components of the base bid for the East Hawaii Regional Sort Station Complex. The Department of Environmental Management (DEM) respectfully requests a waiver from the Finance Committee and to have this bill heard at the Council meeting scheduled for December 21, 2005 for the following reasons: The Bond Authorization Bill will be at Council for first reading on December 21st. If the Council approves additional funding for this project, it would be helpful if the timing of both Ordinances were similar. There are no Council Committee meetings in the latter part of December. The bids received are valid for 60 days and the County will be asking fora 30 day extension. The base bid elements of this project obtained full Council approval on September 21, 2005, although at a lower level. The Council members were informed that funding may not be adequate and the Department of Environmental Management was requested to return to Council if the bids received were significantly higher than the present funding allowed. Time is of the essence as the estimate of air space capacity at the South Hilo Sanitary Landfill remains at March, 2006. ~q Comm. No. Hs wai I County is an Equal Opportunity Provider and Employer Ref. TO: Rent, iJate Stacy K. Higa, Chairman and Members of the Hawaii County Council Page 2 December 9, 2005 If there are any questions, please do not hesitate to call the Department of Environmental Management. Willia Takaba Director of Finance APPROVED: Harry Kim ~ Mayor Enc. cc: Environmental Mgt, Public Works Form B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Environmental Management DATE=: 12/08/05 STAFF CONTACT: Robin Bauman/Barbara Bell PHONE: 961-8585/961-8083 A. REQUEST: Amend the CIP Ordinance for FY OS-06 (05-87) as amended by Ordinance 05-131, to allow for construction of reload builidng, scale house, scales, utilities, and roadways at sort station complex. The additional amount requested is $3.9M, which will bring the total appropriation to $10.1 M. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The bids were recently received and the available funding is not sufficient. Time is of the essence as the South Hilo Landfill is expected to reach capacity in March 2006. There are also safety issues with allowing non-County vehicles onto the landfill once the present permitted capacity is reached and the reload building, with its tipping floor, gives us the ability to consolidate loads, thereby keeping non-County vehicles off the landfill. This will solve the major safety issue. While we do expect to receive approval for an expansion, through slope steepening, from the State Department of Health, without the tipping floor, we cannot solve the safety issue. A summary of the request follows: Lowest basic bid 9,338,285 Related expenses: Construction management 500,000 Field change orders 250,000 Expected total project cost 10,088,285 Previous funding 6,200,000 Shortfall 3,888,285 Also, see attached letter from Department of Public Works Director, Bruce McClure. SIGNED: ~ DATE: 12/8/05 Department Head MtY os y_ ilia Harry' Kim V Bruce C. McClure - ' ~ U~recmr i ~~O~~M~ Jiro A. Sumach 7F].~~~t ~ I)epery Drreclor DF,PARTMENT OF PUBLIC WORKS Aupuni Center I OI I'auahi Street, Suiro 7 ~ Hilo, Ilawoi~i 9n72U-422A (808)061 -A321 -Fax (808)961-Xh ~O December 9, 2005 Barbara Bell Director County of Hawaii Department of Environmental Management 25 nupuni Street Room 2l0 ELilo HI 96720 SUBJEC~f: Shortfall of 1?xisting Funding for Award of Contract East Hawaii Regional Sort Station, .Tob No. S-3722 Based on the bids received, after consultation with you and your staff, my recommendation is that you request the Council to amend the previously-approved ordinance and increase the PY OS-06 CTP appropriation by 5+3.9M. This would increase this year's funding from $3.3M to $6.1 M. I f this funding were approved. we could award the contract for the purpose of constructing the reload building, the associated roads and utilities, as well as the scale house and scales. This would correspond to the components of the base bid for the Fast Hawaii Regional Sort Station Complex. ~ttachcd to this letter are some questions and answers which may help all of us better understand this bid and the process we used. I also suggest that you request waiving this item from the I~inance Committee to Council for the December 21, 2005 agenda fur the following reasons: • I understand the Bond Authorization Bill will be at ('ouncil for first reading on December 2 L [f the Council approves additional funding for this project, it would be helpful if the liming of both Ordinances were similar. • There are nu Council Committee meetings iu the latter part of December. • The base bid elements of this project obtained full Council approval on September 21. 3005. although at a In~~~ca~ Icvcl. ('nuns) a(I Ix~~ai"I a an ICyunl OpForh:nity Prue ider ;md I?utploper. Barbara Bell, Director December 9, ?005 Page 2 • 1 understand that the Council members were informed that funding may not be adequate. The Department of }?nvironmental Management was requested to return to Council if the bids received were significantly higher than the present funding allowed. • The bids received are valid for 60 days. We will be asking fora 30 day extension. • Time is of the essence as the estimate of air space capacity at the South Hilo Sanitary Landfill remains at March, 2006. Please arrange to have a representative of the engineering consultants available to attend the County Council meeting, in case Council members have questions regarding the benefits and function of this facility. A~pp~ro(ved: l ~ `~""'~,l y ruse C Mc lure, P.E. Harry Kim, Mayor D~ ctor County of Hawaii BCM/bb:vmht Enclosure cc: Department of Finance County o(I lawui~i is an 13qunl Opportunity Pruridcr and liinployer. QUESTIONS & ANSWERS Fast Hawaii Regional Sort Station Procurement Department of Public Works Job No. S3722 1. What did the basic bid cover? • The basic bid covered construction of the reload building, roadways associated with the basic bid facilities, the scale house, truck scales, a staff facility area, signage, landscaping, and off-site/on-site utilities (electric, water, telephone and septic). 2. Why are there additive and deductive alternates as a part of any bid? • Additive and deductive alternates are placed in bids to reduce the likelihood of having to re-bid and to give good information on various options to pursue. By determining costs up front for items where it is undetermined if funding will be available, various options can be put under contract without re-bidding. Procurement law allows negotiating with bidders only in very specific situations. If we have a price from all vendors for an item to be added or deleted from the base bid, no negotiation is required. This furthers the principles of procurement law by providing an even playing field for all bidders. • Deductive altemates are placed in bids where it is expected that funding may be inadequate. In the event that bids are higher than the funds available, deductive alternates can be subtracted from the bid amounts in order to bring the project within available funding. 3. Why did you include additive or deductive alternates in this bid? • With regard to this project, the Department of Environmental Management originally requested $8M for the project and since full funding was not approved, it was expected that there would be a shortfall. • The additive altemates were placed in the bid to deternrine actual costs for other portions of the work since Council previously indicated that DE',M should go out to bid and could request additional funds once tirm numbers were obtained. Count} of Hawaii is an Equal Opportunity Provider and Employer. 4. What were the additive and deductive alternates and what were the bid results? • A summary of the additive and deductive alternates and the bid results are as follows: Descri lion Isemoto Taisei San Juan asic Bid $9 338 285.0 $9 581 542.1 $10 773 117.2 Additive Alternates_ dditive Alt. o. ] OG & Vehicle [m ound $251,170.0 $235,383.85 $315,381.68 dditive Alt. o. 2 edem tion Center & Parkin $648,539.0 $705,784.87 $1,068,630.77 dditive Alt. o. 3 ec clin ~ Center $710,803.0 $853,826.3 $],078,867.44 dditive Alt. e-Use Park & Special Events 0.4 rea $211,626.0 $532,000.0 $677,299.13 rade and Cover dditive Alt. ecycling/Scrap Metal and 0.5 hiteGoodsArea $1,03R,R76.0 $1,086,400.0 $1,641,188.92 dditive Alt. rade and Cover Scrap Metal 0.6 rocessingArea $2,041,014.0 $1,864,128.0 $2,097,717.51 dditive Alt. rade and Cover ExisCing Green o. 7 aste Processin Area $1,517,497.0 $645,904.0 $668,644.31 Deductive Aternates eductive Alt. o. 1 elete Tr;msfer Truck Scale $91,89 LO $706,5] 1.53 $83,373.00 eductive Alt. o. 2 ele[e I,oadout Access Stairwa $6Q,03~.0 $15,000.0 $42,514.0 eductive Alt. -inch AC vs. Loadout Concrete 0.3 rivewa $16,792.0 $137,320.0 $248,462.0 eductive Alt. o. 4 elete Commercial Exit Scale $41,986.0 $77,717.38 $90,770.0 Jeductive Alt. re-Engineered Metal Staff o. 5 acilit BId . vs. CMU $44,135.0 $22,900.0 $2,200.0 eductive Alt. o. 6 ele[e Scale House & Cano $24,809.0 $77,717.38 $292,040.0 eductive Alt. -1/2 inch AC vs. 4-inch on 0.7 oadw~ $178,710.00 $220,188.8 $158,749.0 eductive Alt. o. R Delete C~~mmercial Ent Scale $41,880.0 $77,717.38 $90,771.0 5. What do the bid results indicate? • The bids were very close. "Phis indicates [hat the contractors understood the bid documents and that the prices shown reflect current market conditions. 6. Why was the County's estimate of $6.2M so low? Count} of Hawaii is an Equal Opporcunity Provider and Employer. • The estimate was based on numbers provided by a consultant who was possibly not familiar with unique local conditions. • The current market conditions for construction projects are higher than normal due to the availability of work for contractors. In addition, the recent damage to [he Gulf Coast and the resultant construction boom in the area has impacted material prices. For example, PVC piping is apparently largely unavailable which resulted in bid specifications being changed to allow more costly Ductile Iron or Polyethylene piping. 7. Why not re-bid the project instead of asking for additional funding? • Considering the closeness of the bids, i[ is unlikely that [here would be substantial savings if the project were re-bid. It is more likely that higher bids would be obtained. • Although re-design is possible prior to re-bidding, analysis of the bids indicates, that a re- design, with the sole purpose of bringing the project in line with existing funding, would greatly affect functionality of the project. • It is estimated that re-design of the project would result in a ] 0-12 month delay of award of the project. • Although the Solid Waste Division expects to receive an extension of the landfill capacity, access to the landfill by commercial vehicles will not be allowed on the landfill when we will he working at the base of the landfill, beginning the process to steepen [he slopes. The hazards created by the tight turn-around area and tight access to the working face coupled with the unique needs of placing the waste to stay in compliance with the State Department of Health makes it a slow process as well as dangerous for untrained drivers. It is expected that only County-operated vehicles can be allowed access to the landfill during these operations. We expect this work to last for six to nine months. 8. Which additive and deductive alternates are now preferred and why? • All of the deductive alternates were reviewed carefully, to assess short term and long term impacts to the project. • We prefer to award a contract using the base bid items only. No deductive alternates or additive alternates are suggested to be awarded. 9. Where do we go from here? • Department of Public Works proposes that the County move forward with all elements of the base bid. 7'he exact amount of funding now needed is determined as follows: Lowest basic bid $9,338,285 Related expenses: Construction management $500,000 Field change orders $250,000 Expected total project cost $10,088,285 Previous funding $6,200,000 Shortfal I $3,888,285 10. The request includes funding for construction management services. Why are construction management services required for the project, and what do they entail? Count} of Hawaii is xn Equal Opporcunity Provider and Employer. • The construction management firm would be responsible for on-site inspection services, resolving problems, and day to day management of the project. • Construction management firms are frequently used for larger projects since the County does not have sufficient staff to commit personnel full-time to a single project of extended duration since it would impact other on-going projects. 11. The request includes funding for field change orders. Why is this required and how does it differ from the contingency amounts in previous estimates provided to Council? • The funding for field change orders is required in order to address unforeseen field conditions which may require additional payment to the contractor. Almost all projects result in field change orders during the construction period due to unforeseen circumstances and due to the complexity of the project.. It is anticipated that field change orders will he required during this project. • The contingency amounts in previous estimates provided to the Council were amounts reelecting uncertainty on the cost estimates provided b}~ the consultant. Unfortunately, it is now obvious that the contingency amount was well below the prices of the current market conditions. County of Hawaii is an Equal Opportunity Provider and Employer. ~ ~ ti O Q O O O O O O b ~ O 0 0 ~ 3 ~ ~ o ~ h i.~ o 00 p CO ~ ~ V sv w iq ~ ~ ~ ~ ~ CA ~ F E r~ " C m C O ~ # ~ ~ i C ro b r ~ v N V F k Q ~ ~ p, A ~ o r w ro O w o ~ O w ~ ~ w Y ~ ~ Oa b " 3 ro r.° s"'. a ro a v on ~ Q, r.:: 2 c a.n .S ~ ^ °oo . p ~ c a v ~3 ° ~ x w Q 3 N c ~ v ~ 3 a o o G 3 oo ' O v~ P. p ro c h,A+: Er Pte. O w a~s Z ~ cd 3 cy ~2 ' ~ c ° Q p o a~ C ~ ^9 "E~ ~ o U a y w h v ? 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