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Item No: 7C Meeting Date: March 22, 2010 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Nick DeBar, Public Works Director Item Title/Subject: Resolution 7593, Awarding a Construction Contract for the 2010 Municipal Well No. 1 & 2 Rehabilitation Project Background: The City established a maintenance program whereby well, pump, and motors for municipal wells would be evaluated and rehabilitated on a seven-year cycle. A longer period of eleven years was attempted; however, it was discovered that this period was too long to identify minor problems and correct them before they became major replacements. Wells No. 1 and 2 were last rehabilitated in March 2003 and are now due for rehabilitation. Both wells draw water from the same aquifers. Well No. 1 has started to pump a larger amount of sand compared to historical trends and needs to be examined as to why this is occurring and take the necessary steps to correct the problem. If this problem is not corrected, deterioration of the well line shaft, column pipe, and other well production parts will continue. In addition, the filter media in the Water Treatment Plant (WTP) tanks, which is used to treat the raw ground water, could be displaced which may result in a lower quality of water. Well No. 2 is also showing similar characteristics as Well No. 1, but not to the same severity as Well No. 1 due to its lower running time. Discussion: Rehabilitation of Wells No. 1 and 2 were discussed with the Council at the February 1, 2010 Work Session. At that meeting, Staff informed Council that plans and specifications would be prepared in- house and quotes would be obtained from qualified well contractors. The quote proposal included a separate base schedule for each well and further divided each schedule into basic work items (items that will be done) and extended work items (items that are likely to be done pursuant on inspection of well components). An alternate schedule was also used to solicit prices for advanced work items (work that might be required in lieu of extended work). The base schedules were combined to determine the lowest successful quote. Quotes were solicited from five well contractors and all five contractors returned quote proposals. Combined base schedule quotes ranged from $79,015 to $99,350. The low quote was submitted by Keys Well Drilling Company of St. Paul, Minnesota. Keys performed the last rehabilitation on these same wells in March 2003 and are very familiar with our well configurations. A quote summary is attached to this report. Rehabilitation for Wells No. 1 and 2 have been included in the Capital Improvement Program and in the adopted 2010 budget in the combined amount of $60,000 and funded under the water enterprise fund (700-4823-7050). Although the low quote exceeds this amount by nearly $20,000, this difference is likely due to one “extended” work item on each schedule to replace the lineshaft of the pump ($13,090 for each well totaling $26,180). This work may be needed for Well No. 1 but it’s unlikely that the lineshaft for Well No. 2 has degraded to the point of replacement. If awarded, Keys will begin scheduling the rehabilitation work as soon as possible. The contract documents require that Well No. 1 work be complete and back on-line by May 28, 2010 and Well No. 2 work complete by July 30, 2010. Well No. 1 is needed to supplement the summer demand and Well No. 2 will remain unused until the motor is replaced (a 2010 project). Work performed under the rehabilitation project will assist with determining the proper course of action and options for the