HomeMy WebLinkAboutIV.A - Wood Encapsulation HEDRA Memorandum
To: HEDRA Commissioners
From: John Hinzman, Community Development Director
Date: December 5, 2019
Item: Award Bid and Authorize Signature of Contract - Wood Sealing and Encapsulation -
Hudson Manufacturing - Mavo Systems
Action Requested:
Take the following actions related to environmental cleanup of the former Hudson
Manufacturing Building located at 200 West 2nd Street:
1) Award the Encapsulation Project Bid to Mavo Systems in the amount of $406,500 and
authorize signature of the contract. Mavo was the only respondent to the bid request.
Environmental Obligations
As previously agreed, the City and HEDRA have committed to completing certain environmental
remediation of the site after the transfer of the property. Items include wood sealing and
encapsulation (involving cleaning contaminated wood floors and trusses and applying a paint
like encapsulant), as well as installation of a VIMS - Vapor Intrusion Mitigation System (which is
currently underway).
Bid Specifications
HEDRA authorized release of the bid specifications at the August 19, 2019 meeting. Bid
specifications were posted on the City’s website and the online construction bid website,
QuestCDN. The specifications were also directly sent to about a dozen potential contractors. A
mandatory on-site pre-bid meeting was required to be eligible to submit a bid. The pre-bid
meeting was held on September 17 with only Mavo Systems in attendance.
Test Area Contract
Prior to the bid deadline of October 3, 2019, Mavo shared concerns about estimating the time
of wood cleaning and asked if the City would consider executing a preliminary contract to
conduct wood sealing and encapsulation spot testing. The test areas would incorporate three
different methods of cleaning to determine what would be the most cost effective. In addition,
the test areas would allow for application and testing of the encapsulant to ensure compliance
with MPCA rules. Mavo shared concerns about the moisture level of the building preventing
successful application of the encapsulant. HEDRA approved the test contract in the amount of
$16,000 at the October 10, 2019 meeting. Work on the 12 test areas was completed on
October 18th.
Lab Results
Wipe samples of the areas were conducted 30 days after installation per MPCA guidelines and
were sent to a lab to confirm the effectiveness of the encapsulant application. Lab results are
not available at the time of this report but are expected prior to the December 5th HEDRA
Meeting. A visual inspection of the encapsulant areas indicated similar coverage and
effectiveness from all three methods of cleaning.
Bid Tabulation
Mavo Systems $406,500.00
Bid Estimate $215,000.00
Sources
Grants City\HEDRA Funding
Met Council TBRA1 $78,000 HEDRA Budget - Previously Allocated3 $72,460
Dakota County RIG (Non VIMS)2 $75,000 HEDRA Budget - Block 1 Cleanup4 $181,040
GRANT SUBTOTAL $153,000 CITY HEDRA SUBTOTAL $253,500
GRAND TOTAL - $406,500
Notes
1 Designated funds for Hudson cleanup
2 $500,000 awarded from Dakota County RIG for Hudson cleanup; represents the estimate of
remaining grant funds not allocated towards VIMS
3 Funds previously identified and allocated for wood sealing and encapsulation
4 $200,000 was allocated in the 2019 budget for environmental cleanup of Block 1, north of
Artspace. City received a $270,000 grant from Met Council in July, 2019 to fully fund activities
Analysis
The proposed bid is significantly higher that the bid estimate for the project. Receiving a single
bid for the project limits HEDRA’s options. The Purchase and Development requires
performance of wood sealing and encapsulation in a timely manner so as not to delay
Confluence’s construction activities. Activities must commence immediately to allow for the
use of the $78,000 Met Council TBRA Grant prior to the December 31, 2019 deadline.
Additional costs for the project can be accommodated through use of existing grant funds and
reallocation of designated environmental funds for Block 1. The project cost is not ideal, but
necessary to continue with the development.
Attachments:
• Bid Response - Mavo Systems