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HomeMy WebLinkAbout10B - Well No.9 ;.j PRl~ C n-~ 16200 Eagle Creek Avenue S.E. 'iJ W'" Prior Lake, MN 55372-1714 ~ MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT NOVEMBER 20, 2006 10B STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR COMPLETION OF WELL NO.9 Introduction The purpose of this agenda is to accept bids and award the City's Standardized Construction Contract for completion of Well NO.9. Historv On September 5, 2006, the City Council authorized the bidding of the Completion of Well No.9. On October 16, 2006, the City Council approved a contract release agreement with Keys Well Drilling for Well No.9. Keys Well Drilling was unable to complete the well due to the soft Jordan Sandstone formation encountered. Current Circumstances Well NO.9 is an important part of the City's water infrastructure. In order for the City's system to maintain firm capacity during peak use this well is necessary. Additionally construction of the FIG well was required as part of an agreement with the DNR for construction of Well NO.8. On November 7, 2006, the City received and opened bids for completion of the well. Unfortunately, the sandstone softness limits the type of equipment that can be used to complete the well on this site. For that reason only one bid was received. The bid received was from Mark J Traut Wells, Inc. in the amount of $315,119.00. The bid included an additional casing option in the amount of $54,600.00. The additional casing option may be needed depending on the sandstone stability. Because the City's use of the Jordan Aquifer has been limited by the DNR, the City has very limited options regarding completion of this well. The City has three options regarding this well. 1) Complete the Well as bid for a total amount of $369,719.00 (including the casing option). 2) Abandon current Well No. 9 and rebid construction of a new well at a nearby location. The total cost of this option is estimated to be $415,000.00. 3) Elect not to complete Well NO.9. c~<.,- .., c.-i.- VJWw.dtYofpr16f1ake.com Phone 952.447.4230 / Fax 952.447.4245 Issues Due to the limitations on water supply available to the City, Well NO.9 is important and needed. Should the City elect not to complete the well, it is anticipated that the City will not have firm capacity in our water system by 2009. City Staff met with the DNR in 2004 and agreed that approval for an additional Jordan well (Well 8) would be contingent on completion of a FIG well (Well 9) at the same time. Failure to complete this well could result in the DNR prohibiting use of Well NO.8. Additionally, as the City seeks to solidify future water sources the DNR may be hesitant to work with the City. On November 13, 2006, City Staff met with the DNR and confirmed that the agreement as discussed in 2004 would be enforced by the DNR. FINANCIAL IMPACT: To date, the City has spent or authorized expenditures of $661,540 on the Well 8 and 9 project. Including completion of Well NO.9 as proposed above, staff estimates the total cost for this project to be $1,300,000. Funding for wells #8 and #9 is solely provided by development fees for the City's Trunk Water Acreage Charge. The need for these wells is a result of new development and therefore funding is 100% development derived. The funding for completion of this well and the balance of the project is available in the trunk fund. The costs for the Well 9 will be higher than a typical FIG well; however, the overall Well 8 and 9 project costs will be very typical of a multiple well and well house project. The changes the City made to reduce the well house size in anticipation of the Water Treatment Facility resulted in substantial building cost savings. ALTERNATIVES: 1. Approve a resolution authorizing the Mayor and City Manager to execute the City's Standardized Construction Contract with Mark J. Traut Wells, Inc. for completion of Well NO.9. 2. Deny this agenda item for a specific reason and provide staff with direction. 3. Table this item to a certain date in the future. Staff recommends alternative number 1. 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 06-xx CONSIDER APPROVAL OF A RESOLUTION ACCEPTING BIDS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR COMPLETION OF WELL NO.9 Motion By: Second By: WHEREAS, Well NO.9 is a necessary component of the City's Water Supply Plan; and WHEREAS, On September 9, 2006, the City Council authorized advertisement for bids for completion of Well No.9; and WHEREAS, On October 16, 2006, the City released Keys Well Drilling Company from a contract to drill Well No. 9 due to a lack of the specialized equipment needed to drill in situations where formation stability is an issue as it is here; and WHEREAS, On November 7, 2006, the City received and opened bids for completion of Well NO.9. Only one bid was received due to the specialized equipment necessary to complete Well No.9; and WHEREAS, Mark J. Traut Wells, Inc. was the low bidder with a bid of $315,119.00. Additionally, a casing option was included for $54,600.00. Based on the bids received Staff recommends award of a contract in the amount of $369,719.00 to Mark J. Traut Wells, Inc. including the casing option. 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 authorized to execute the City's Standardized contract with Mark J. Traut Wells, Inc. for an amount not-to-exceed $369,719.00. 3. Funds for this project are to be drawn from the trunk water fund. PASSED AND ADOPTED THIS 20TH DAY OF NOVEMBER, 2006. YES NO Haugen Dornbush Erickson leMair I Millar Haugen Dornbush Erickson leMair Millar Frank Boyles, City Manager ...'ri~~.r[Qr@ke.com Phone 952.447.4230 / Fax 952.447.4245