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HomeMy WebLinkAboutItem 8 - Pumphouse No 4-Award Bid AGENDA MAYOR & COUNCIL COMMUNICATION -- page 1 -- DATE: February 18, 2014 REGULAR ITEM # 8 AGENDA ITEM: Pumphouse No. 4 Improvements – Accept Bids and Award Contract SUBMITTED BY: Jack Griffin, City Engineer THROUGH: Dean A. Zuleger, City Administrator REVIEWED BY: Chad Isakson, Project Engineer Cathy Bendel, Finance Director Mike Bouthilet, Public Works SUGGESTED ORDER OF BUSINESS: - Introduction of Item .................................................................................. City Engineer - Report/Presentation………………………………………… .................. City Engineer - Questions from Council to Staff ............................................. Mayor Facilitates - Public Input, if Appropriate………………………………….Mayor Facilitates - Call for Motion ............................................................... Mayor & City Council - Discussion ....................................................................... Mayor & City Council - Action on Motion .................................................................... Mayor Facilitates POLICY RECOMMENDER: Engineering FISCAL IMPACT: $984,000. Approval of this resolution commits the council to entering into a construction contract for the project. The Pumphouse No. 4 construction contract amount is $748,640 and the total estimated project cost is $984,000. This amount is $100,000 over the authorized budget. The project is scheduled to be paid through a combination of DEED grant money, in the amount of $220,000, and water enterprise funds, in the amount of $765,000. The city cost share, or water enterprise funds, will be financed through the issuance of bonds with the bond payments paid with the collection of water availability and water connection charges. City Council Meeting [Regular Agenda Item 8] February 18, 2014 -- page 2 -- SUMMARY AND ACTION REQUESTED: The City Council is respectfully requested to consider accepting contractor bids as presented and awarding a contract for the Pumphouse No. 4 Improvements. The recommended motion for this action is as follows: “Move to approve Resolution No. 2014-11, Accepting Bids and Awarding a Contract to Total Mechanical Inc. in the amount of $748,640.00 for the Pumphouse No. 4 Improvements.” LEGISLATIVE HISTORY/BACKGROUND INFORMATION: Bids were received, publicly opened, and read aloud on February 5, 2014. The city engineer and his consultant has prepared and attached the Tabulation of Bids and a letter of recommendation for the award of the contract. The city received four (4) bids for this project, with Total Mechanical, Inc. providing the lowest base bid in the amount of $748,640.00. The Engineer’s post-design construction cost estimate for the project was $646,170. In addition to these costs it is anticipated that the city must extend electrical service to the site in the estimated amount of $97,000. Staff has reviewed alternatives to awarding the project due to the bid amount exceeding the engineer’s estimate, including re-bidding the project as designed, value engineering the current design, and completing a redesign prior to re-bidding. In each circumstance staff believes that the proposed design represents the basic infrastructure components necessary for a functional water supply well with little to no room for cost reductions without compromising reliability or long term operational performance. Consideration was given to eliminating the stand-by generator from the contract and adding it back as a separate project at a later date, however it was determined that this exercise would likely result in higher costs. Contractor references for Total Mechanical, Inc. were reviewed and verified. The city engineer and his consultant are therefore recommending that the Council award the contract to the lowest responsible bidder, Total Mechanical, Inc., as outlined in the attached letter. The City Council approved the Plans and Specifications for the Pumphouse No. 4 Improvements on January 6, 2014, and authorized staff to advertise the Project for bids. The Project was advertised on QuestCDN.com, Finance and Commerce, and in the Oakdale-Lake Elmo Review in accordance with the Minnesota Competitive Bidding requirements. The improvements include: • Construction of a municipal building to enclose the new city well and related chemical feed equipment. The building is located on newly acquired property near 50th Street and Lake Elmo Avenue. • Chemical feed equipment and piping to safely deliver drinking water to customers, HVAC equipment, electrical and SCADA controls, and safety equipment. • A natural gas generator to operate the well in the event of a power outage. City Council Meeting [Regular Agenda Item 8] February 18, 2014 -- page 3 -- • Site grading, driveway construction, and exterior work needed to adequately allow for chemical delivery, well maintenance and day-to-day operational needs. • Erosion control, cleanup and site restoration. RECOMMENDATION: Staff is recommending that the city council approve Resolution No. 2014-11, thereby accepting bids and awarding a contract to Total Mechanical Inc., in the amount of $748,640.00, for the Pumphouse No. 4 Improvements. The recommended motion for this action is as follows: “Move to approve Resolution No. 2014-11, Accepting Bids and Awarding a Contract to Total Mechnical Inc. in the amount of $748,640.00 for the Pumphouse No. 4 Improvements.” ATTACHMENT(S): 1. Resolution No. 2014-11 Accepting Bids and Awarding a Contract. 2. Tabulation of Bids and Engineer’s Letter of Award Recommendation. 3. Engineer’s Post-design Estimate of Construction Costs. 4. Project Schedule.