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Home My WebLink About5D Accept Bids and Authorize Contract for Well No 6 Watermain Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: APRIL 1, 2019 AGENDA #: 5D PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTIONS ACCEPTING BIDS AND AUTHTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S STANDARDIZED CONSTRUCTION CONTRACT FOR THE WELL NO. 6 RAW WATERMAIN IMPROVEMENT PROJECT (WTR19-000001) GOAL AREA AND OBJECTIVE: DISCUSSION: Environmental Stewardship & Recreation 1. Provide clean and safe drinking water for the community and protect drinking water resources. Introduction The purpose of this resolution is to accept the bids and authorize the Mayor and City Manager to execute the City’s Standardized Construction Contract with G.M. Contracting. History The City Council approved a water purchase and facility expansion agreement between the City of Prior Lake and the SMSC on November 20, 2017. As part of that agreement, the City committed to extend watermain from Well No. 6 to the new joint Water Treatment Plant (WTP). The new WTP is anticipated to be com- pleted this fall and it is therefore necessary to complete the extension of the wa- termain from Well No. 6 to the WTP next year. Previously, the City Council was asked to approve a Cooperative Agreement with the SMSC for the construction of the raw watermain from the new WTP to the southeast corner of CR82 and Bobcat Trail. That work was completed in the fall of 2018. It is the City’s responsibility to construct the raw watermain north across CR82 and connect it to Well No. 6. Current Circumstances The final plans and specifications for the Improvements were completed earlier this year and the advertisement for bid was published in the Prior Lake American and on Quest CDN with bids being due on March 20, 2019. The City received four (4) bids which are listed in the chart below. Company Total G.M. Contracting, Inc $638,638.62 Pember Companies, Inc. $643,993.05 Minger Construction $707,660.45 Kuechle Underground $778,804.25 The engineer’s estimate was $748,000. 2 The proposed project schedule is as follows: Open Bids March 20, 2019 City Council Accept Bids April 1, 2019 Construction Begins May 2019 Construction Complete August 2019 Conclusion City Staff recommends awarding the contract to the lowest responsible bidder which is G.M. Contracting. ISSUES: To build this project it will be necessary to construct a boring pit on the southeast corner of CR82 and Bobcat Trail. This is SMSC property and will require a Li- cense Agreement from them. The City has been in contact with their staff from the beginning and they have verbally agreed to provide the necessary agree- ment. Once the starting date and schedule is confirmed with the contractor, the City can submit the License Agreement to the SMSC for approval by their Busi- ness Council. FINANCIAL IMPACT: A concept cost estimate was previously prepared for the City in 2016 for the en- tire raw watermain project from the WTP to Well No. 6. The estimated cost at that time was $953,666.25. As part of the City’s Capital Improvement Plan (CIP) the estimated cost was increased to $1,300,000 to account for inflation and con- struction of the project in 2019. A significant portion of the budget has been included in the previous City Council agenda item for the Cooperative Agreement with the SMSC for the construction of the raw watermain along CR82. The SMSC was performing utility work along CR82 last year and they agreed to install the City’s raw watermain as part of their project. The City’s share of that cost is $723,034.61. The total project costs break down as follows; SMSC Installed Watermain $ 723,034.61 Engineering (WSB) $ 74,927.00 G.M. Contracting Bid $ 638,638.62 Total $1,436,599.81 Based on this, the projected total cost will exceed the budgeted amount from the CIP by $136,599.81. The funding for this project will come from the City’s Trunk Water Fund (502). After reviewing the total project cost with Finance Director Cathy Erickson, it was confirmed that there are sufficient funds available in Fund 502 to cover the additional cost. There is one more additional expense related to this project that has not yet been finalized which is the cost of making a fiber optic connection from Well No. 6 to the new WTP. This is a necessary part of the Supervisory Control and Data Ac- quisition (SCADA) system. The SCADA system allows the WTP to control the well and turn the pumps on and off as needed. There is already fiber along CR82, so the fiber will need to be extended from the intersection of CR82 and 3 Bobcat Trail to Well No. 6. City staff are meeting with fiber optic designers this week and will bring back the cost to the City Council once it has been identified. ALTERNATIVES: 1. Motion and a second as part of the consent agenda to approve the resolution which accepts the bids and authorizes the Mayor and the City Manager to ex- ecute the City’s Standardized Contract with G.M. Contracting for the Well No. 6 Raw Watermain Improvement Project (WTR#19-000001). 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-___ A RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY’S STANDARDIZED CONTRACT FOR THE WELL NO. 6 RAW WATERMAIN IMPROVEMENT PROJECT (WTR19-000001) Motion By: Second By: WHEREAS, The 2019-2023 Capital Improvement Program identifies these improvements; and WHEREAS, WHEREAS, The City Council approved a Water Purchase and Facility Expansion agreement with the Shakopee Mdewakanton Sioux Community (SMSC) on November 20, 2017; and The agreement with the SMSC stipulates that the City of Prior Lake connect Well No. 6 to the new Water Treatment Plant that is being constructed by the SMSC in 2019; and WHEREAS, A total of four (4) bids were received for the identified improvements as follows: Company Total G.M. Contracting $638,638.62 Pember Companies, Inc. $643,993.05 Minger Construction $707,660.45 Kuechle Underground $778,804.25 WHEREAS, WHEREAS, G.M. Contracting is the lowest responsible bidder in the amount of $638,638.62; and The additional cost of $136,599.81 in excess of the Capital Improvement Plan budget will be covered by utilizing existing funds within the Water Trunk Fund (Fund 502). NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1.The recitals set forth above are incorporated herein. 2.The Mayor and City Manager are hereby authorized to execute the City’s Standardized Contract for the identified raw watermain improvements with G.M. Contracting for an estimated cost of $638,638.62. Construction contract expenditures will be charged to Fund 502. Passed and adopted by the Prior Lake City Council this 1st day of April 2019. 2 VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐☐ ☐ ☐ ☐ Absent ☐☐ ☐ ☐ ☐ ______________________________ Michael Plante, City Manager PROJECT: 2019 Watermain Improvements OWNER: City of Prior Lake, MN WSB PROJECT NO.: R-012922-000 BIDS OPENED: Wednesday, March 20 2019, at 10:00 a.m. CST Contractor Bid Bond (5%) Add. No. 1 Rec'd. Add. No. 2 Rec'd.Grand Total Bid 1 GM Contracting, Inc. X X X $638,638.62 2 Pember Companies, Inc.X X X $643,993.05 3 Minger Construction Companies, Inc. X X X $707,660.45 4 Kuechle Underground X X X $778,804.25 Engineer's Opinion of Probable Cost $679,130.00 Denotes corrected figure Nicholas Guilliams, PE, Project Manager BID TABULATION SUMMARY I hereby certify that this is a true and correct tabulation of the bids as received on March 20, 2019. K:\012922-000\Admin\Construction Admin\Bidding\ 012922-000 CST Bid Tab Summary-03202019