The numbers are in and Kenmore received 14 bids from contractors for its new city hall, with the lowest construction bid coming in at around $7.5 million, according to Assistant City Manager Nancy Ousley.
City officials had been working with a construction cost estimate of $12.9 million, Ousley added, stating the lower number is a clear reflection of the condition of the economy in general.
City Manager Frederick Stouder previously said the initial decision to award the contract without a normal bidding process was made in a very different economy.
“This was done at a time when construction companies were very, very busy,” he said.
“I think we’re thrilled,” said City Councilwoman Laurie Sperry regarding the bidding process.
Ousley said if bids win final approval from council, construction could start as earlier as March. Sperry talked about the situation as a “win-win.” She said thanks to the bidding, the new construction should come with a substantially lower-than-expected price tag while creating construction jobs for about a year.
According to Ousley, the city opened the returned bids Jan. 29. Officials were expecting some additional materials from the two lowest bidders early this week.
The lowest numbers came from Graham Construction of Seattle, whose base bid was $7.5 million. With a few optional amenities tossed in, the bid increases to $7.8 million.
Those optional items include a skate park, a “green” roof and a courtyard water feature, presumably a water fountain or similar display.
Also out of Seattle, JTM Construction was the second lowest bidder, with a base bid of $7.8 million. With all construction alternatives thrown in, its bid jumped to $8.08 million.
At the other end of the spectrum, the highest bid came from Commercial Structures of Burien. The company’s $9.2 million proposal still is lower than the $12.9 construction figure with which the city had been working.
While Sperry expressed pleasure with the bids, Councilman John Hendrickson said he still has several concerns about the city-hall project. Specifically, Hendrickson questions the proposed location and contends current plans do not include space for Kenmore’s public-works department. He also believes the city needs to do an analysis of the ongoing cost of running a new building.
Hendrickson further believes stating the previous project cost as $12.9 million is misleading. With so-called soft costs thrown in — such things as design work, furnishings and other equipment — Hendrickson contends the total cost of the project was roughly $22 million. He added that figure was supplied by city staffers.
If original plans are followed, Kenmore’s new city hall will sit near the corner of 68th Avenue Northeast and a realigned Northeast 181st, basically across the street from the proposed Kenmore Village mixed-use development.
Initially, the city used a non-bidding process to award a contract for the new city hall. Ousley said even a year ago, construction projects were attracting very few bidders. Armed with permission from the state, Kenmore asked contractors to submit proposals to act as general managers and general contractors on the project. The city got about nine responses, interviewed officials from three firms and finally hired BN Builders Inc., of Seattle.
Ousley stated that at the time local leaders decided to go with the general-contractor method of construction, the city had what she described as a very ambitious timetable for completion of the new city hall. Due mostly to the sluggish economy, that timetable has changed, and with that in mind, Ousley said the city administration went to council and suggested bidding the project.
According to Hendrickson, pressure from residents questioning the overall cost of the city-hall work helped fuel putting the project out to bid. He also questioned how the city responded to public information requests regarding the city-hall work.
Ousley said she expected the bids to be a topic of discussion at the Feb. 2 Kenmore City Council meeting, but didn’t expect council to make any final decision regarding the bids until later this month.
The Feb. 2 meeting happened after the Bothell-Kenmore Reporter’s deadline for this issue. The bids received by the city are good for 60 days.