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City OKs $37.6 million river wall bid: Talks, retooling save nearly $20 million(Messenger-Inquirer (Owensboro, KY) Via Acquire Media NewsEdge) Nov. 12--The city of Owensboro awarded a construction contract for its new river wall on Tuesday after the successful bidder shaved nearly $20 million off the proposed cost of the riverfront development project. Work could begin in six weeks on the $37.6 million project after the city inked the deal with the lowest bidder -- a joint venture between Hall Contracting of Louisville and Richard Goettle Inc. of Cincinnati. With the start of construction on the long-anticipated river wall project, Mayor Tom Watson said he expects to see more investment in downtown from the private sector after the months of delays the project has seen. "When we start doing that wall, that will be the biggest encouragement for the private sector to participate," Watson said. The commission signed off on the city's own investment in the project Tuesday when it committed to spending up to $4 million to help cover a $2.9 million gap in funding for the project. This last major step before construction of the river wall comes after the city waited nearly 16 months to receive permits from the U.S. Army Corps of Engineers and received a first round of bids two months ago that were $10 million higher than expected. An earlier engineer's estimate placed the cost to build the river wall between the RiverPark Center and the foot of Frederica Street at $30.7 million, and the lowest bid for that portion came in Sept. 3 at $40.8 million. But through competitive negotiations and "value engineering" over the last several months, the contractors and city staff were able to cut millions from the cost. Under the contract awarded Tuesday, Hall Contracting and Richard Goettle Inc. will build the wall from the RiverPark Center to Mitch McConnell Plaza, which includes an alternate addition the city had hoped to be able to afford. The project will put a river wall about 45 feet into the river and expand the area of Smothers Park by two acres. Along with expanding the riverfront, the project will protect the riverbank from erosion. Under the design guidelines initially offered to contractors, Hall and Goettle had proposed a $55.5 million price tag, but negotiations since the Sept. 3 bid opening have brought that price down significantly. Through value engineering, contractors were able to propose alternate construction designs or processes that could reduce costs. Hall and Goettle have access to a proprietary "open cell" design that allows for the use of less steel and less manpower while not compromising quality, City Engineer Joe Schepers said. That change alone allowed Hall and Goettle to knock about $12.5 million off their proposed bid, according to bid documents. After the bids came in high, city and project staff also looked at design changes that could help bring down the cost without compromising the overall appearance or intent, Cecil said. That "shopping list" of changes included the removal of the lowest row of pre-cast concrete panels designed to hang on the wall just above the water line and the first phase of construction needed for the planned boat dock that will connect to the bank by a gangway. Removing those two elements dropped the project cost by another $5.7 million and brought it within reach of the city. Schepers said the changes won't be noticed by the average person. "They will never know," Schepers said. Including $7.8 million in federal transportation dollars expected to come next year, the city will have $34.7 million in federal funds to cover to the project's costs, and the commission's approval of up to $4 million in city funding on Tuesday will make sure the project is fully funded. That commitment of up to $4 million will come from the city's Your Community Vision fund that is fed by the one-fourth of the city's occupational tax that is dedicated to capital projects. Several years ago, the city had set aside an annual appropriation in the fund of more than $500,000 to pay for a recreation complex, but plans for that complex have been put on hold. That has freed up those dollars, part of which has since been dedicated to the ice arena and about $300,000 of which could be used to fund 20 years of debt service on a $4 million loan to cover the river wall's costs. Now the contract is signed, work will begin to relocate utilities along Veterans Boulevard and to remove the Charles E. Shelton Freedom Memorial from Smothers Park and place it in storage during construction. Hall and Goettle are expected to begin construction within six weeks, and the project's completion date has been tentatively set at October 2010. City Manager Bill Parrish said the start of construction on the project comes at a time when it will offer a needed to boost to the local economy. Having the construction crews in town means an increase in occupational tax revenues, more patrons for local businesses and more occupied rooms in local hotels, Parrish said. Parrish also echoed Watson's comments about the wall's construction prompting action from investors and businesses looking at downtown. "People are going to see that the city commission, the city of Owensboro is serious about downtown," Parrish said. "This is not just talk. This is not just a study. It's going to happen." To see more of the Messenger-Inquirer, or to subscribe to the newspaper, go to http://www.messenger-inquirer.com. Copyright (c) 2008, Messenger-Inquirer, Owensboro, Ky. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |