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Home My WebLink About#13 - Accept Bid and Award Contract for Well 5 STAFF REPORT DATE: January 21, 2020 CONSENT AGENDA ITEM: Award Contract for Production Well No. 5 SUBMITTED BY: Jack Griffin, City Engineer REVIEWED BY: Kristina Handt, City Administrator Sarah Sonsalla, City Attorney Marty Powers, Public Works Director Chad Isakson, Project Engineer ISSUE BEFORE COUNCIL: Should the City Council reject the bid from Mineral Services Plus, accept other bids and award a contract for Production Well No. 5? BACKGROUND: On September 17, 2019 the City Council ordered the preparation of the plans and specifications for Production Well No. 5 in Tana Ridge Park. A test well was drilled in the park in 2019 to verify adequacy of the site for a production well. Test pumping was conducted to verify the ability of the site to produce adequate water supply production, and extensive water quality testing was conducted to verify a safe drinking water supply. The design engineer analyzed the results and test pumping records and provided a recommendation to proceed with installation of a full production well. The plans and specifications for the production well were completed and the council approved the plans and authorized the advertisement for bids at the December 17, 2019 city council meeting. The City of Lake Elmo has been working with the MN-DNR and MPCA to replace the lost capacity for Well No. 1 by pursing the development and construction of Production Well No. 5 to be located in Tana Ridge Park. The MN-DNR and MPCA have accepted the City’s Feasibility Report to construct Production Well No. 5 and has entered into a Joint Powers Agreement to address terms and process for the State to reimburse the City for 90% of the total project costs. PROPOSAL DETAILS/ANALYSIS: Bids were received, publicly opened, and read aloud on Tuesday, January 14, 2020. The City’s design consultant has prepared and attached a Tabulation of Bids and a letter of recommendation for the award of the contract. The City received 3 bids for this project, with Traut Companies providing the lowest responsible bid in the amount of $349,780.00. Contractor references for Traut Companies were reviewed and verified. The City Engineer and the consultant are therefore recommending that the Council award the contract to the lowest responsible bidder, Traut Companies as outlined in the attached letter. Staff is recommending that the bid received from Mineral Services Plus be rejected due to a material deviation from the specifications. FISCAL IMPACT: Approval of this resolution commits the council to enter into a construction contract for the project with a construction contract amount of $349,780. Total Project Costs are funded 90% through a Minnesota-3M 2018 Settlement Fund Grant. The remaining 10% city cost share is funded through the Water Core Fund. RECOMMENDATION: Staff is recommending that the City Council approve, as a part of the consent agenda, a resolution rejecting the bid from Mineral Services Plus, accepting other bids and awarding a contract to Traut Companies for Production Well No. 5. If the item is removed from the consent agenda, the recommended motion for the action is as follows: “Move to approve Resolution No. 2020–011, rejecting the Bid from Mineral Services Plus, accepting other bids and awarding a contract to Traut Companies for Production Well No. 5.” ATTACHMENTS: 1. Resolution Rejecting Bid from Mineral Services Plus, Accepting other Bids and Awarding a Contract for Production Well No. 5. 2. Engineer’s Letter of Award Recommendation and Tabulation of Bids. 3. Project Schedule. CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2020-011 A RESOLUTION REJECTING BID FROM MINERAL SERVICE PLUS LLC, ACCEPTING OTHER BIDS AND AWARDING A CONTRACT FOR PRODUCTION WELL NO. 5 WHEREAS, pursuant to an advertisement for bids for Production Well No. 5 Improvements, bids were received, opened, and tabulated according to law, and bids were received complying with the advertisement; and WHEREAS, bids were tabulated, checked and summarized to verify that all requirements of the submittal were met; and WHEREAS, the project engineer reviewed the bids; and WHEREAS, the project engineer found that Mineral Service Plus LLC, the lowest bidder, proposed to construct the well by the mud/air rotary method; and WHEREAS, per Section 2520.3.1.C of the project manual specifications, the mud/air rotary method of construction is not an approved method because of the geology challenges and risks anticipated in this location; and WHEREAS, furthermore, if the mud/air rotary method would have approved by the City prior to the bid opening, potentially other bidders could have submitted bids on the project using this method; and WHEREAS, for the above reasons, this deviation from the specifications has been determined by the City to be a material deviation and is being rejected; and WHEREAS, therefore, the project engineer is recommending the award of the contract to the next lowest responsible bidder, Traut Companies, for the amount of $349,780.00. NOW, THEREFORE, BE IT RESOLVED, 1. That the bid from Mineral Service Plus LLC is hereby rejected because it is a material deviation from the specifications. 2. That the Mayor and City Clerk are hereby authorized and directed to enter into a contract with Traut Companies, the next lowest responsible bidder in the accordance with the above ordered Project, in the amount of the Contractor’s bid, and according to the plans and specifications thereof approved by the City Council. 3. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposits of the successful bidder and the next two lowest bidders shall be retained until a contract has been signed. ADOPTED BY THE LAKE ELMO CITY COUNCIL ON THE TWENTY-FIRST DAY OF JANUARY, 2020. CITY OF LAKE ELMO By: __________________________ Mike Pearson (Seal) Mayor ATTEST: ________________________________ Julie Johnson City Clerk h:\lkelmn\n17119978\6_plans-specs\b_bid tabulation\119978 award ltr.docx January 16, 2020 Jack Griffin, P.E. City Engineer City of Lake Elmo 3880 Laverne Avenue N Suite 100 Lake Elmo, Minnesota 55042 RE: Production Well No. 5 City of Lake Elmo, MN Project No. 2019.114 BMI Project No. N17.119978 Dear Mr. Griffin, Attached is the bid abstract for the project referenced above. Bids were received at City Hall at 10:00 a.m. on Tuesday, January 14, 2020. The following is a summary of the bids received: Bidder Total Bid Mineral Service Plus LLC $299,508.45 Traut Companies $349,780.00 E.H. Renner & Sons, Inc. $375,748.00 We have reviewed the bids and requested references and additional information from the low bidder, Mineral Service Plus LLC. Based on the information received, Mineral Service Plus LLC is proposing to construct the well by the mud/air rotary method. Per Section 2520.3.1.C of the Project Manual (specifications), the mud/air rotary method of construction is not an approved method. The mud/air rotary drilling method was not specified due to the geology challenges and risks anticipated in this location. Furthermore, if the mud/air rotary method would have been approved prior to the bid opening, potentially other well drillers could have submitted bids on the project. Therefore, we recommend awarding this bid to the next lowest bidder, Traut Companies, in the amount of $349,780.00. Please contact me if you have any questions. Sincerely, Bolton & Menk, Inc. Michael R. Warner, P.E. Project Manager Enclosure BID DATE: JANUARY 14, 2020 AT 10:00 AM123ITEM APPROX.UNITTOTALUNITTOTALUNITTOTALNO.ITEMUNITQUANTITYPRICEPRICEPRICEPRICEPRICEPRICEConstruction of Production Well No. 51Mobil. & Demobil., Clean Up Site, Erosion Control & Permit FeesLS 1 $24,805.00 $24,805.00 $31,300.00 $31,300.00 $47,000.00 $47,000.002Geotextile Fabric, MnDOT Type 5 for DrivewaySY 200 $10.00 $2,000.00 $2.00 $400.00 $18.00 $3,600.0031”-2” Washed Rock for Construction EntranceTN 150 $20.00 $3,000.00 $75.00 $11,250.00 $90.00 $13,500.004Drill and Drive 24” Dia. CasingLF 145 $223.50 $32,407.50 $200.00 $29,000.00 $210.00 $30,450.005Drill 23” Dia. (Nominal) Open HoleLF 145 $89.31 $12,949.95 $145.00 $21,025.00 $150.00 $21,750.006Backfill 23” Open Hole Up To 204 ft with Pea GravelCY 10 $175.50 $1,755.00 $95.00 $950.00 $350.00 $3,500.007Furnish and Install 18” Dia. CasingLF 204 $74.00 $15,096.00 $95.00 $19,380.00 $82.00 $16,728.008Furnish and Install grout between 24” and 18” CasingsCY 20 $450.00 $9,000.00 $650.00 $13,000.00 $525.00 $10,500.009Furnish, Install & Remove Well Development EquipmentLS 1 $5,000.00 $5,000.00 $4,800.00 $4,800.00 $12,000.00 $12,000.0010Well Development HRS 125 $275.00 $34,375.00 $390.00 $48,750.00 $295.00 $36,875.0011Dynamite (If Needed)LBS 100 $40.00 $4,000.00 $35.00 $3,500.00 $49.00 $4,900.0012Bailing of SandCY 400 $130.00 $52,000.00 $90.00 $36,000.00 $100.00 $40,000.0013Hauling/Disposal of SandCY 400 $19.00 $7,600.00 $14.00 $5,600.00 $10.00 $4,000.0014Plumb and Alignment Test and ReportLS 1 $500.00 $500.00 $500.00 $500.00 $400.00 $400.0015Furnish, Install and Remove Test PumpLS 1 $5,040.00 $5,040.00 $6,500.00 $6,500.00 $7,500.00 $7,500.0016Step TestingHRS 10 $215.00 $2,150.00 $180.00 $1,800.00 $195.00 $1,950.0017Lower Adjacent Residential Well Pump 80 feetLS 1 $950.00 $950.00 $1,850.00 $1,850.00 $650.00 $650.0018Test PumpingHRS 36 $255.00 $9,180.00 $180.00 $6,480.00 $195.00 $7,020.0019Water Analysis STD Menu with Radionuclides, VOC’s and PFASLS 1 $2,700.00 $2,700.00 $3,000.00 $3,000.00 $2,800.00 $2,800.0020VideotapingLS 1 $1,750.00 $1,750.00 $1,400.00 $1,400.00 $2,500.00 $2,500.0021Gamma LogLS 1 $1,750.00 $1,750.00 $1,800.00 $1,800.00 $1,400.00 $1,400.0022Furnish and Install 150 HP Line Shaft Turbine Pump, 1250 gpm at 380 ft TDH, 204 ft. Below FFLS 1 $63,000.00 $63,000.00 $93,500.00 $93,500.00 $90,000.00 $90,000.00ABSTRACT OF BIDSPRODUCTION WELL NO. 5MINERAL SERVICES PLUS LLCTRAUT COMPANIESCITY PROJECT NO. 2019.114CITY OF LAKE ELMOWASHINGTON COUNTY, MINNESOTAE.H. RENNER & SONS, INC. BID DATE: JANUARY 14, 2020 AT 10:00 AM123ITEM APPROX.UNITTOTALUNITTOTALUNITTOTALNO.ITEMUNITQUANTITYPRICEPRICEPRICEPRICEPRICEPRICEABSTRACT OF BIDSPRODUCTION WELL NO. 5MINERAL SERVICES PLUS LLCTRAUT COMPANIESCITY PROJECT NO. 2019.114CITY OF LAKE ELMOWASHINGTON COUNTY, MINNESOTAE.H. RENNER & SONS, INC.23Furnish and Install Submersible Well Drawdown Sensor as SpecifiedLS 1 $1,350.00 $1,350.00 $275.00 $275.00 $2,350.00 $2,350.0024Well DisinfectionLS 1 $550.00 $550.00 $125.00 $125.00 $1,800.00 $1,800.0025Site RestorationLS 1 $1,000.00 $1,000.00 $1,600.00 $1,600.00 $3,500.00 $3,500.0026Coordination with Well House Contractor for Well Pump Installation, Piping and Electrical Connection and Start-UpLS 1 $750.00 $750.00 $1,275.00 $1,275.00 $750.00 $750.00Total for Prouction Well No. 5$294,658.45 $345,060.00 $367,423.00Sealing and Abandonment of Test Well No. 51Mobil. & Demobil., Clean Up Site, Erosion Control & Permit FeesLS 1 $2,000.00 $2,000.00 $875.00 $875.00 $4,100.00 $4,100.002Neat Cement Grout or Cement-Sand GroutCY 5 $450.00 $2,250.00 $450.00 $2,250.00 $525.00 $2,625.003MDH Sealing NotificationEA 1 $325.00 $325.00 $95.00 $95.00 $100.00 $100.004Labor and Grout/Cement PumpLS 1 $275.00 $275.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00Total Sealing and Abandonment of Test Well No. 5$4,850.00$4,720.00$8,325.00Total Project Bid for Construction Production and Sealing and Abandoning of Test Well No. 5$299,508.45 $349,780.00 $375,748.00 PROJECT SCHEDULE CITY OF LAKE ELMO PRODUCTION WELL NO. 5 PROJECT NO. 2019.114 FOCUS ENGINEERING, inc. Cara Geheren, P.E. 651.300.4261 Jack Griffin, P.E. 651.300.4264 Ryan Stempski, P.E. 651.300.4267 Chad Isakson, P.E. 651.300.4283 DECEMBER 2019 SEPTEMBER 17, 2019 Council orders the preparation of Plans and Specifications. DECEMBER 17, 2019 Council approves Plans and Specifications and orders Advertisement for Bids. JANUARY 14, 2020 Receive Contractor Bids. JANUARY 21, 2020 Council accepts Bids and awards Contract. FEBRUARY, 2020 Conduct Pre‐Construction Meeting and issue Notice to Proceed. JULY, 2020 Well Construction Substantial Completion.