HomeMy WebLinkAbout33. Bids on Contract No. 21-22 for Lakeshore Park Four Season Building
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us
TO: Honorable Mayor and Members of the Common Council
FROM: Ray Maurer, Parks Director
DATE: November 12, 2021
RE: Lakeshore Park 4 Seasons Building Project
Bids for the Lakeshore Park 4 Season building were opened on Tuesday, November 9, 2021. The city
received three bids for the project. The low bid was $3,807,322, next lowest was $4,464,887 and highest
bid was $4,601,555. City staff had identified approximately $3,000,000 in funding for the building project
coming from the following sources: proceeds remaining from the sale of property to Oshkosh
Corporation, funds remaining from past parks projects completed under budget, funds remaining from
the Oshkosh Avenue Corridor project, and funds available from deferring the Rainbow Memorial Park
improvements design work.
On Thursday, November 11, 2021, city staff was contacted by the apparent low bidder requesting to
withdraw their bid due to an “error in the calculation of the bid” as they discovered an omission of costs
associated with site utilities and various building components. City staff requested further information,
clarification and documentation of this error and determined that it was an honest mistake so their bid
has been withdrawn. The next lowest bid of $4,464,887 leaves the city approximately $1,500,000 short in
funding to proceed with the project at this time. Substantial increases in material costs appears to be the
main reason for the higher than anticipated bids.
Finance Director Van Gompel has identified the following potential options for Council consideration:
1. Add to the previous approved list of projects to be funded by the issuance of debt in 2022.
This would make the potential debt issuance $21,500,000 instead of $20,000,000.
2. Keep the debt issuance at $20,000,000 and delay or push back $1,500,000 of other projects.
3. Consider the use of ARPA funds. This project was not on the original list presented to Council,
however Council could consider adding it to the list of projects.
4. Consider rebidding the project at a later date. However, it is not guaranteed to provide any
different result plus there will additional cost to rebid the project.
5. Do not move forward with the project. If this option is selected, Council needs to recognize
that $271,710 was already spent on the design and bidding of the project.
We wanted Council to have this information prior to it being placed on a future meeting agenda. If you
have any questions or comments, please contact me or City Manager Rohloff.