1991-02-25 Regular Meeting - Laserfiche WebLink

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• • CITY OF LA PORTE INTER-OFFICE MEMORANDUM T0: Robert T. Herrera, City Manager FROM: John Joerns, Assistant City Manager Jeff Litchfield, Director of Financ DATE: February 20, 1991 SUBJECT: Awarding of Contract for Fire Training Facility On January 7, 1991, the City of La Porte opened bids from pre-qualified contractors for the construction of the Fire Training Facility. The lowest bid meeting specifications was from Marcus Thomas Co. for a total amount of $1,392,480. The amount of Bonds that were sold for the project were $1,050,000. Because of the vast difference between the expected amount available and the amount of the Bid, Bill Manning, City Engineer, worked with the proposed contractor and revised several portions of the bid. Through his efforts, he was able to reduce the amount of the bid to $1,242,612 without seriously changing the scope or quality of the project. As a separate review, we looked at the funds available for the project and found that we had $1,213,841. A detail list of the items we need to budget in order to complete the project is listed below. Construction Contract $1,242,612 Construction Contingency 62,000 Valuation Engineering 15,700 Material Testing 8.000 Total 1,328,312 As you can see, we need $1,328,312 to complete the project and only have available $1,221,841. Funding of the difference of $106,471 provided us with the opportunity to become creative in our financing efforts. We reviewed available funding sources and arrived at two possible choices for funding this difference. The first was the sale of additional bonds that were approved by the voters in 1985 for street projects. We currently have $500,000 in bonds that we can sale. The only negative that we have with this method is that it causes us to incur additional debt.