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Home My WebLink About9D - 2007 Water System Improvements MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MAY 21,2007 9D CRAIG ELDRED, STREET AND UTILITIES SUPERVISOR CONSIDER APPROVAL OF A RESOLUTION 1) REJECTING BIDS AND ACCEPTING QUOTES AND 2) AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR THE 2007 WATER SYSTEM IMPROVEMENTS Introduction The purpose of this agenda item is to for City Council to reject bids, accept quotes approve a resolution authorizing the Mayor and City Manager to execute the City's Standardized Construction Contract with Lloyd's Construction for the Water System Improvements. Historv As part of the 2004 Comprehensive Water System Plan, improvements to the Wilds Ridge water main were recommended for improved operation of the Wilds booster station and improved water quality in the Wilds service area. The 2007 Capital Improvement Program (CIP) identifies this improvement for construction. On April 16, 2007, the City Council approved the plans and specifications and authorized staff to advertise for bids for the Water System Improvements. As part of that report staff provided the best alternatives for improvements in the Wilds service area. The best alternatives were to install two bypass pressure reducing manholes, one in Wilds Ridge, and the second on County Road 42 east of Wilds Path. These structures will allow staff to control water flow from the booster station service area to the tower pressure zone, and eliminate two dead end water main situations. Additional work will be completed at the intersection of Franklin Trail and Franklin Circle to improve flow restriction issues. Current Circumstances Staff advertised this project in the April 21st edition of the Prior Lake American and provided four plans and specifications to local contractors. Only one bid was re- ceived for this project from Lloyd's Construction in the amount of $31,155.00. Historically the City Council has been uncomfortable when only one bid has been receieved, because they are seeking to assure the best purchase price for the tax payers.. In order to keep this project moving forward the staff asked Lloyd's (the only bidder) and S.M. Hentges to provide quotes for the work to the City. Quoteson the construction costs are provided in the table below: R:\Council\Agenda Reports\2007\05 21 07\execute contract for water sys improvements agenda. DOC www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 Vendor Schedule #1 Schedule #2 Schedule #3 Total Installation of Installation of Installation of Cost city provided city provided city provided equipment equipment equipment CR42 Wilds Ridge Franklin Trail Lloyd's $7,150 $6,750 $17,255 $31,155 Construction SM Hentaes $10,400 $8,650 $14,900 $33,950 Lloyd's Construction provided the lowest quote and as previously indicated staff has worked with Lloyd's and has been pleased with their performance. In addition, staff obtained quotes for the necessary equipment, structures and bi- tuminous replacement for each of the project areas. Quotes for each item are listed below: Interior Pioina Northern Water Works Minnesota Pipe $18,521.92 $18,300.00 Concrete Structures Hanson Pipe Cretex $12,586.00 $12,596.00 Bituminous Trail & Street Prior Lake Blacktop Northwest Asphalt $5,835.00 $7,476.00 Conclusion Staff estimates restoration of sod and seeding related to this project will cost $1,500. With restoration and the lowest cost from the quotes for the necessary equipment, a total cost of these items provided by the City is $38,221.00. The total project cost is $69,376.00 including the low bid by Lloyd Construction. ISSUES: The improvements to the water system will help with water system operation, water flow and water quality. The improvements on Wilds Ridge are a priority before the street overlay project. Because only one bid was received and completion of the project is important staff initiated solicitation of quotes for the project. Prior to the City completing the overlay project this summer this work needs to be completed. By soliciting additional quotes staff was able to verify the bid from Lloyd's Construction was in fact a good cost for completing the work. Procedurally the City Council must do the following to award this project: 1) Formally reject the single bid received. 2) Approve staffs solicitation for quotes. 3) Determine whether to accept or reject the quote by the lowest responsible bidder. R:\Council\Agenda Reports\2007\05 21 07\execute contract for water sys improvements agenda. DOC FINANCIAL IMPACT: The total construction costs for the Water Utility Improvement Project totals $69,376. The amount of $50,000 has been identified in the CIP for this project and is designated form the Trunk Reserve Fund. The increased costs of 18% for this project are due to the purchase costs of struc- tures, which were not planned for in the initial design of this project. Staff feels this project should move forward to allow better booster station operation and water quality in the Wilds and Franklin Trail distribution systems. Funding for the improvements is available in the trunk water fund. ALTERNATIVES: 1. Approve a resolution rejecting the one bid received from Lloyd's Construction. 2. Approve a resolution accepting the quotes. 3. Approved a resolution authorizing the Mayor and City Manager to execute the City's Standardized Construction for the 2007 Water System Improvements. 4. Table this agenda item for a specific reason. 5. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED MOTION: Alternatives # 1, 2 and 3 R\Council\Agenda Reports\2007\05 21 07\execute contract for water sys improvements agenda. DOC 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 07 -xx A RESOLUTION 1) REJECTING BIDS AND ACCEPTING QUOTES AND 2) AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARDIZED CONTRACT FOR 2007 WATER SYSTEM IMPROVEMENTS Motion By: Second By: WHEREAS, Improvements for the water distribution system are identified as part of the 2004 Comprehensive Water System Plan and the 2007 Capital Improvement Program; and WHEREAS, Staff identified the improvements to coincide with the street overlay improvements scheduled for the summer of 2007; and WHEREAS, The City advertised for bids and received only one bid, from Lloyd's Construction in the amount of #31,155.00 and rejected the bid; and WHEREAS, City Staff solicited quotes to ensure the lowest cost to the City, which action is hereby ratified; and WHEREAS, Lloyd's Construction quoted the lowest construction installation costs in an amount of $31,155; and WHEREAS, The following quotes were obtained for the necessary installation of City provided equipment: Vendor Schedule #1 Schedule #2 Schedule #3 Total Installation of Installation of Installation of Cost city provided city provided city provided equipment equipment equipment CR42 Wilds Ridge Franklin Trail Lloyd's $7, 150 $6,750 $17,255 $31 ,155 Construction SM Hentges $10,400 $8,650 $14,900 $33,950 ;and WHEREAS, Minnesota Pipe, Hanson Pipe and Prior Lake Blacktop provided the lowest cost alternatives for the necessary equipment, in addition, staff will complete the boulevard restoration at a total cost of $38,221; and WHEREAS, Funding for this project is designated from the Trunk Reserve Fund. R:\Council\Agenda Reports\2007\05 21 07\execute contract reso for water sys imp.doc www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 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 with Lloyd's Construction in the amount of $31,155. 3. City staff is authorized to expend up to $38,221 for the necessary equipment and boulevard restoration for the Water System Improvement Project. 4. The funding source is the Trunk Reserve Fund Account #502-51009-501. PASSED AND ADOPTED THIS 21sT DAY OF May 2007. YES NO Haugen Haugen Erickson Erickson Hedberg Hedberg leMair leMair Millar Millar Frank Boyles, City Manager R:\Council\Agenda Reports\2007\05 21 07\execute contract reso for water sys imp.doc