#10 - Accept Bids & Award Contract for Well 2 Water Treatment Plant

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STAFF REPORT DATE: December 17, 2024 CONSENT AGENDA ITEM: Accept Bids and Award Contract for the Well No. Water Treatment Plant SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Nicole Miller, City Administrator Clarissa Hadler, Finance Director Marty Powers, Public Works Director Chad Isakson, Assistant City Engineer ISSUE BEFORE COUNCIL: Should the City Council accept the bids and award a contract for the Well No. 2 Water Treatment Plant? BACKGROUND: On November 6, 2024 the City Council approved the plans and specifications for the Well No. 2 Water Treatment Plant (WTP) project which includes the construction of a water treatment facility at the Well No. 2 Wellhouse for the removal of PFAS. The project includes building modifications, consisting of building shell and roof modifications, process piping, electrical, controls, HVAC, and related appurtenances. The work includes selective demolition and additions to the existing building, by raising the roof section for the vacant generator/pressure filter room. A new taller garage door and service door will be added to the west side of the building and openings in the former generator storage space will be filled in. A new concrete floor will be poured and elevated equipment pads will be provided. The work includes the installation of the AqueoUSVets PFAS removal vessels and the cartridge filter that are being procured separately. and installation of a new replacement standby generator which is also being procured under a separate purchase package. New water process piping will be installed to connect the treatment vessels to the existing interior piping, and ancillary components such as chemical feed locations and water meters will be replaced. A new well pump, motor, and variable frequency drive (VFD) will be installed to accommodate the additional head loss imparted by the treatment vessels. PROPOSAL DETAILS/ANALYSIS: Bids were received and opened electronically on December 5, 2024. The City received 5 bids for the project, ranging from $1,360,650 to $1,560,600. The bid results are detailed on the attached engineer’s letter of recommendation. Based on the bids received, the City’s consulting engineer is recommending that the City award the contract to the lowest responsible bidder, Magney Construction, Inc. for the total base bid Amount of $1,360,650.00 as outlined in the attached letter. FISCAL IMPACT: The post-bid total project cost estimate after receiving bids for all three bid packages is $2,460,000 (See attached Post-Bid EOC). The Project Costs will be funded through a MPCA Grant through the 3M 2018 Settlement Funds. The Project Grant Agreement was approved on October 1, 2024 in the amount of $2,283,000. After receiving bids, staff submitted a grant amendment request to cover the full Project cost. A verbal approval has been received and the grant agreement amendment will be processed in January/February 2025. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the consent agenda, a resolution accepting the bids and awarding a contract to Magney Construction, Inc. for a total