Memorandum
City of Lawrence
Public Works
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TO: |
David L. Corliss, Diane Stoddard, Jonathan Douglass |
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FROM: |
Chuck Soules |
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CC: |
Matt Bond |
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Date: |
December 15, 2010 |
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RE: |
Farmland Transitional Services, Project No. PW1015 Demolition Award December 21, 2010 City Commission Agenda |
On September 29, 2010 the city closed on the ownership of the former Farmland property. The City Commission authorized staff to distribute a request for proposals for demolition services on the property on September 28, 2010.
The city solicited proposals for the demolition of the structures and piping on the Farmland site.
Over 30 people from various firms attended an on site pre-submittal meeting. Staff has worked with several of the responding firms to develop a recommendation to the City Commission which will accomplish the goals of the clearing of most of the unnecessary structures and equipment on the property in a cost effective manner, given the environmental obligations on the property.
Farmland Status:
The transition plan has been submitted to KDHE for approval and will need to be finalized prior to commencement of demolition per the CAD (Corrective Action Decision). Finalization of the transition plan is imminent. Once the transition plan is approved the clock starts on the completion of RD/RA Plan (Remedial Design / Remedial Action Plan). The city will have sixty (60) days to complete the RD/RA Plan.
Demolition Proposals:
The RFP included two phases of work as shown on the Exhibits A & B. Phase 1 is to be completed in four months and Phase II completed in five months. Primary items of work include:
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I. Removal of all above ground structures. |
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II. Concrete foundations less than 18” above ground will remain. If over 18” the contractor will remove foundation walls to grade. There are a number of concrete pads and foundations that are less than 12” to 18” above the ground. Removal of all this concrete would have been a significant cost. City staff, as time permits, should be able to complete some of this work. |
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III. Four buildings are not being removed: Lab (Building #2), Bag House (Building #124), and two nitrate warehouses (#100 and #102). These buildings may have some use for the city. As we continue to evaluate the uses/need for these buildings they could be added to the demolition contract. |
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IV. All infrastructure (lagoons, pumps, wells, piping, and tanks) necessary to maintain current environmental remediation systems are not included. |
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V. Rail is not included. |
Fifteen (15) proposals were received on November 2, 2010. Proposals were received from local contractors and as far away as Oklahoma, Nebraska, and Bay City, Michigan.
Proposals Submitted:
A pre-bid meeting was held on October 14, 2010 to allow contractors to visit the site and ask questions. Several contractors made follow-up visits. The proposals varied significantly in thoroughness of the proposed document. A few contractors were forthcoming, did a significant amount of work, described in detail their work plan, costs, salvageable material, and other issues which they identified in their discovery/site visits. Other contractors provided a lump sum bid with little or no description of their work plan. Several submitted unit prices for possible items that may be found.
The demolition has a number of complexities which must be addressed. Several items were noted during the site visits that staff addressed in two lengthy addendums. Those items include:
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· There are two large boilers left from the ammonia plant and these boilers have a significant amount of asbestos insulation. (Estimates for removal of the asbestos were fairly consistent at approximately 7000 s.f. and cost of $250,000.) |
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· The Administration Building also contains asbestos floor tile, transite wall panels and asbestos sheet vinyl. An asbestos survey determined the quantities and asked four contractors to submit additional pricing for this additional work; estimates ranged from $31,000 to $44,000 +. |
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· Fluorescent lights and ballasts - there are approximately 1,930 fluorescent bulbs and 576 ballasts in the Administration Building which must be handled appropriately. The city has a contract with Waste Management through Household Hazardous Waste and we should be able to take advantage of this pricing. |
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· There are several tanks that have varying quantities of liquids. Due to the nature of the previous industry and site these liquids need to be tested prior to removal of the structures. While some of these materials may just be storm/rain water it is believed that some of the liquids may be caustic/acids. |
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· Several transformers remain on the site. Most of the transformers were drained and refilled. The oil remaining in these transformers needs to be tested for PCB’s and, if found, disposed of appropriately. |
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· Salvageable/recyclable steel varied amongst the contractors from 1,000 ton to 5,000 ton. |
After establishing the attached spreadsheet staff contacted four contractors to further discuss their proposals. The purpose of the interviews was to make sure we understood what was included and excluded from each proposal. We also wanted to confirm that the contractors understood what the city was requiring.
Recommendation:
After review and discussions with the contractors and checking references, staff is recommending that the city enter into an agreement with R. D. Johnson in an amount of $432,000.
R. D. Johnson’s proposal includes:
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$399,000 for demolition |
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less $180,000 credit for salvageable steel for the first 1,500 tons |
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plus $33,000 for asbestos removal in Administration Building |
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plus $180,000 for asbestos removal of two boilers |
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Total Cost - $432,000 |
R. D. Johnson will work with city staff for disposal of fluorescents and ballasts, which is included in the bid. The proposal estimated approximately 1,500 ton of recycled steel. If the tonnage is greater the city and contractor will split the salvage value 25/75.
This project will be a partnership between the city and contractor. Unknown issues will arise. The city and R. D. Johnson have a very good/reliable relationship which staff feels will be important as this project proceeds.
It will take approximately four months to complete the demolition once the Notice to Proceed is issued. We anticipate starting towards the end of January or first of February.
Funding:
The funding to complete this project will include $213,000 from the City’s Farmland Remediation Fund for site remediation and cleanup (asbestos removal), and $219,000 from GO Bonds. The City Commission approved the issuance of bonds for economic development at the airport. Those bonds were to be used for the installation of water and sewer lines. Favorable bids on the waterline and deleting the force main of the sewer improvements have left sufficient funds for this project.
Action Requested:
Award Farmland demolition, Project No. PW1015, to R. D. Johnson Excavating in an amount of $432,000 to be paid from the Farmland Remediation Fund (not to exceed $213,000), and $219,000 from GO Bonds.
Attachments: Farmland Exhibit A