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HomeMy WebLinkAboutItem 06.kLakes Date: 27 January 2015 Item No. RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE WATER TREATMENT FACILITY IMPROVEMENT PROJECT TO GRIDOR CONSTRUCTION Proposed Action Staff recommends adoption of the following motion: Move to accept bids and award the contract for the Water Treatment Facility Improvement Project to Gridor Construction. Passage of this motion enables the facility modifications, equipment installation, and reservoir construction necessary for the Water Treatment Facility to meet water use demands. Overview This improvement project for the Water Treatment Facility (WTF) is based on the outcomes of the 2013 WTF expansion study. It will expand the capacity of the facility to handle increased water production to meet expected residential, commercial, industrial, institutional, and emergency demands. The project adds a fifth high service pump, expands the chlorine system, installs a larger fluoride day tank, adds a second air wash blower, updates chemical feed pumps, and constructs a 1 million gallon reservoir expansion. The engineer's estimate for the project was $3.735 million. The City received four bids with a bid range of $3.087 to $3.737 million. Gridor Construction submitted the lowest responsible bid at $3.087 million, approximately 17 percent below the engineer's estimate. Staff, along with the consulting engineer, reviewed the bids and recommend award of the contract to Gridor Construction. Primary Issues to Consider • Are these improvements necessary? The comprehensive water system study showed that the City was unable to ymeet near-term demand for water with the current facility configuration. These improvements expand facility capacity to meet those peak demands and avoid costly expansion of the facility over the next five to eight years. Supporting Information • A copy of the letter of recommendation from Black & Veatch, the bid tabulation and c e at d. Christo J. Petree Public Works Director Financial Impact: $3,087,700.00 Budgeted: Yes Source: Water Trunk Fund Related Documents (CIP, ERP, etc.): Community Values: Good Value for Public Services CITY OF LAKEVILLE RESOLUTION NO: RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE WATER TREATMENT FACILITY IMPROVEMENT PROJECT TO GRIDOR CONSTRUCTION WHEREAS, invitations to bidders for the Water Treatment Facility Improvements Project were officially published on 12 December 2014, and WHEREAS, sealed bids for the project were opened at 11:00 a.m. on 16 January 2015, and WHEREAS, the lowest responsible bidder for the project at a total cost of $3,087,700.00 was Gridor Construction, 3990 27d' Street SE, Buffalo Minnesota. NOW, THEREFORE, BE IT RESOLVED, that the bids are accepted for the Water Treatment Facility Improvement Project and the contract is awarded to Gridor Construction. APPROVED AND ADOPTED this 2nd day of February 2015 by the City Council of the City of Lakeville. CITY OF LAKEVILLE Matt Little, Mayor ATTEST: Charlene Friedges, City Clerk BLACK&VEATCH Building a world of diffarenca; January 27, 2015 City of Lakeville, MN Water Treatment Facility Improvements Christopher Petree City of Lakeville Public Works Director 18400 Ipay a Avenue Lakeville. ,MN 55044 Subject: Bid Results and Recommendation Dear Mr, Petree; SCOTT FRONEK Project Manager, Water Division 7760 MANCE AVENUE SOUTh, SUITE .300. af40%EAPOI S, %1% SFA35 u95v n -0500 j FRixV`u imD; By ckmi Bids for general construction work were received and opened on January 16, 2015, at Lakeville City Hall. for the Water Treatment Facility (WTF) Improvements Project A review of the low bid received was completed as well as a limited review of the apparent low bidder. A summary of the Bid Tabulation is included as an attachment. The following is list of the lump suns base bids, in ascending value. The Engineer's Estimate for the project was estimated at $3„735,000. Construction Company lump Sum Bid Gridor Construction $3.087,700 Rice Lake Construction Group $3.109.600 Magney Construction $3,457,300 Lakehead -Construction $3,737.000 This letter provides a review on a number of topics related to the bidding process. We have performed a limited review of Gridor Construction to assist the City in evaluating and establishing that Gridor has the technical experience and practical knowledge to perform the WTF Improvements work. Black & Veatch reviewed the following items in regard to Gridor Construction: • Similar Project Experience Project Manager and Superintendent Other Information _ BID RESULT', AND PAGE 3 PECQ FFNIENDATIGN ;ANVAP? 27. 2025 OTHER INFORMATION Black & Veatch reviewed the Bid Form. List of Subcontractors, and the Equipment Questionnaire. At this time. we believe that all listed equipment manufacturers are acceptable. For major subcontractors. Gridor has listed EIM and Automatic Systems as their electrical and I&C subcontractors. EIM completed the previous electrical work for the City of Lakeville's WTF expansion in 2002. and are familiar with the facility. Automatic Systems is also familiar with the WTF, having previously worked at the facility and more recently provided configuration services for ongoing plant control issues. The equipment questionnaire for Gridor, indicated they plan to use Capital for the Gas Chemical Feed Systems, Blue White pumps for fluoride pumps. Pratt for Butterfly Valves. and Siemens for a Variable Frequency Drive. The City is familiar with most of this equipment already since many are already utilized within the City's WTF. Additionally, Black & Veatch has had successful experiences with each of these manufacturers. Gridor also indicated a $25,000 potential deduct should the City choose to use Continental blowers in lieu of the Hoffman Blower which was base bid. The City can consider this change and if adopted would be implemented as a credit change order following execution of the contract with Gridor. SUMMARY Based on the information reviewed and our evaluation, we recommend that the City award the WTF Improvements Project Gridor Construction Inc. Please contact me if you have any questions. Sincerely, BLAC_K& VVEATCH f Scott D. Fronek P.E. Project Manager Enclosures row ll 5 log ull >1 41 Le) (D 0 Q la en ca co 'o CG .2 E E I tr, cn cz ea Lo ci FA O Ix W O '43 10 15- o fn c LL wo r_ ri C U. 8X CL CL 0) Iry iz Section 00500 AGREEMENT This Agreement is by and between the City of Lakeville, Minnesota (herein called Owner) and Gridor Construction, Inc. (herein called Contractor). Owner and Contractor, in consideration of the mutual covenants herein set forth, agree as follows: ARTICLE 1 - WORK. 1.01. Contractor shall complete all Work as specified or indicated in the Contract Documents based on the acceptance by Owner of Contractor's Bid. The Work is generally described as follows: This project is an improvements project to the Lakeville Water Treatment Facility (WTF) which will increase the capacity of the WTF and provide redundant backup equipment. To increase the capacity of the WTF, a fifth High Service Pump will be installed to provide additional capacity to the existing High Service Pump Station. An existing reservoir will be expanded by 1 million gallons to provide additional storage at the WTF. The chlorine system will be expanded by installing scales and manifold piping for two additional gaseous chlorine cylinders and the chlorine feeders will be increased in size. The fluoride day tank will be replaced with a larger tank. In addition to the items listed above to increase the capacity of the WTF, the existing fluoride metering pumps will be replaced and a redundant air wash blower and wash water supply pump for the backwash system will be provided. ARTICLE 2 - ENGINEER. 2.01. The Project has been designed by Black & Veatch Corporation, 7760 France Avenue South, Suite 1200, Minneapolis, Minnesota 55435, who is referred to in the Contract Documents as Engineer. Engineer, and its duly authorized agents, are to act as Owner's representatives, assume all duties and responsibilities, and have the rights and authority assigned to Engineer in the Contract Documents in connection with completion of the Work in accordance with the Contract Documents. ARTICLE 3 - CONTRACT TIMES, LIQUIDATED DAMAGES, DELAYS AND DAMAGES, DELAY COMPENSATION. 3.01. Time of the Essence. City of Lakeville, MN 00500 Agreement WTF Improvements Project -1- 012715 A. All time limits for Substantial Completion, and completion and readiness for final payment as stated in the Contract Documents are of the essence of the Contract. 3.02. Contract Times. A. The Contract Times shall be as indicated in the Contractor's Bid. The Work shall be substantially completed within the number of days indicated in the Contractor's Bid after the date when the Contract Times commence to run as provided in Paragraph 2.03 of the General Conditions, and completed and ready for final payment in accordance with Paragraph 14.07.13 of the General Conditions within the number of days indicated in the Contractor's Bid after the date when the Contract Times commence to run. 3.03. Liquidated Damages. A. Owner and Contractor recognize that time is of the essence of this Agreement and that Owner will suffer financial loss if the Work is not completed within the times specified in Paragraph 3.02 above, plus any extensions thereof allowed in accordance with Article 12 of the General Conditions. The parties also recognize the delays, expense, and difficulties involved in proving in a legal or arbitration proceeding the actual loss suffered by Owner if the Work is not completed on time. Accordingly, instead of requiring any such proof, Owner and Contractor agree that as liquidated damages for delay (but not as a penalty) Contractor shall pay Owner $2,500 for each day that expires after the time specified in Paragraph 3.02 for Substantial Completion until the Work is substantially completed. After Substantial Completion, if Contractor shall neglect, refuse, or fail to complete the remaining Work within the Contract Times or any proper extension thereof granted by Owner, Contractor shall pay Owner $2,500 for each day that expires after the time specified in Paragraph 3.02 for completion and readiness for final payment until the Work is completed and ready for final payment. B. The liquidated damages set forth herein shall not be accumulative. If Substantial Completion of the Work is not met within the time specified for final completion of all Work, the liquidated damages shall continue to be at the rate or rates specified for default on Substantial Completion until Substantial Completion is attained. If the Work is not then finally completed, the rate or rates specified for default on final completion shall apply until final completion is attained. C. Owner shall have the right to deduct the liquidated damages from any money in its hands, otherwise due, or to become due, to Contractor, or to initiate applicable dispute resolution procedures and to recover liquidated damages for nonperformance of this Contract within the time stipulated. City of Lakeville, MN 00500 Agreement WTF Improvements Project -2- 012715 3.04. Delays and Damages. A. In the event Contractor is delayed in the prosecution and completion of the Work because of any delays caused by Owner or Engineer and, except as set forth in Paragraph 4.01 of the General Conditions, Contractor shall have no claim against Owner or Engineer for damages or contract adjustment other than an extension of the Contract Times and the waiving of liquidated damages during the period occasioned by the delay. ARTICLE 4 - CONTRACT PRICE. 4.01. Owner shall pay Contractor in current funds, for completion of the Work designated in Article 1 in accordance with the Contract Documents, a Lump Sum amount of: $3,087,700 , as indicated in Contractor's Bid. ARTICLE 5 - PAYMENT PROCEDURES. 5.01. Submittal and Processing of Payments. A. Contractor shall submit Applications for Payment in accordance with Article 14 of the General Conditions. Applications for Payment will be processed by Engineer as provided in the General Conditions. 5.02. Progress Payments; Retainage. A. Owner shall make progress payments on account of the Contract Price on the basis of Contractor's Applications for Payment as recommended by Engineer, on or about the 1st day of each month during performance of the Work. All progress payments will be on the basis of the progress of the Work measured by the Schedule of Values established in Paragraph 2.07.A of the General Conditions (and in the case of Unit Price Work based on the number of units completed) or, in the event there is no Schedule of Values or cost loaded Progress Schedule, as provided in Division 1, General Requirements. B. Prior to Substantial Completion, Owner will retain from progress payments, less the aggregate of payments previously made and less such amounts as Engineer shall determine or Owner may withhold in accordance with Paragraph 14.02.B.5 of the General Conditions, an amount equal to the following percentages: 1. Until the Work is 50 percent completed, retainage will be 10 percent of Work completed. 2. If the Work is 50 percent completed as determined by Engineer, and if the character and progress of the Work are satisfactory to Owner and Engineer, Owner, on recommendation of Engineer, may determine that as long as the character and progress of the Work remain satisfactory to them, there will be no additional retainage on account of Work subsequently completed. City of Lakeville, MN 00500 Agreement WTF Improvements Project -3- 012715 C. Upon Substantial Completion, Owner may release a portion of the retainage to Contractor, retaining at all times an amount sufficient to cover the cost of the Work remaining to be completed. D. The reduction or termination of additional retainage will not be initiated at any time if the Work is behind schedule; and, subsequent to reducing retainage, the full retainage of payments authorized may be reinstated any time the Work falls behind schedule. E. Consent of the Surety shall be obtained before any retainage is paid by Owner. Consent of the Surety, signed by an agent, must be accompanied by a certified copy of such agent's authority to act for the Surety. 5.03. Final Payment. A. Upon completion and acceptance of the Work in accordance with Paragraph 14.07.A of the General Conditions, Owner shall pay the remainder of the Contract Price as recommended by Engineer as provided in Paragraph 14.07.B. ARTICLE 6 - CONTRACTOR'S REPRESENTATIONS. 6.01. In order to induce Owner to enter into this Agreement, Contractor makes the following representations: A. Contractor has examined and carefully studied the Contract Documents and the other related data identified in the Bidding Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Contractor is familiar with and is satisfied as to all Federal, state, and local Laws and Regulations that spay affect cost, progress, and performance of the Work. D. Contractor has studied all reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in the. Supplementary Conditions as provided in Paragraph 4.02 of the General Conditions and reports and drawings of a Hazardous Environmental Condition, if any, at the Site which has been identified in the Supplementary Conditions as provided in Paragraph 4.06 of the General Conditions. E. Contractor has obtained and carefully studied (or assumes responsibility for having done so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and Underground Facilities) at or contiguous to the Site which may affect cost, progress, or City of Lakeville, MN 00500 Agreement WTF Improvements Project -4- 012715 performance of the Work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor, including application of the specific means, methods, techniques, sequences, and procedures of construction, if any, expressly required by the Contract Documents to be employed by Contractor, and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Drawings, and all additional examinations, investigations, explorations, tests, studies, and data with the Contract Documents. I. Contractor has given Engineer written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by Engineer is acceptable to Contractor. J. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. ARTICLE 7 - CONTRACT DOCUMENTS. A. The Contract Documents which comprise the entire agreement between Owner and Contractor concerning the Work consist of the following: 1. This Agreement. 2. Performance and Payment Bonds. 3. General Conditions. 4. Supplementary Conditions. 5. Specifications. 6. Drawings consisting of 44 sheets, with each sheet bearing the following general title: City of Lakeville, Minnesota Water Treatment Facility Improvements Project Sheet titles are listed on Sheet 1 in the section entitled Drawings. City of Lakeville, MN 00500 Agreement WTF Improvements Project -5- 012715 7. Addendum 1. 8. Exhibits to this Agreement, enumerated as follows: a. Contractor's Bid. b. Notice to Proceed. 9. The following, which may be delivered or issued after the Effective Date of the Agreement and are not attached hereto: a.Work Change Directives. b. Change Orders. c.Field Orders. B. There are no Contract Documents other than those listed in this Article. C. The Contract Documents maybe amended, modified, or supplemented only as provided in Paragraph 3.04 of the General Conditions. ARTICLE 8 - MISCELLANEOUS. 8.01. Terms. A. Terms used in this. Agreement will have the meanings indicated in the General Conditions and Supplementary Conditions. 8.02. Assignment of Contract. A. No assignment by a party hereto of any rights under or interests in the Contract will be binding on another party hereto without the written consent of the party sought to be bound; and specifically, but without limitation, moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law); and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. 8.03. Successors and Assigns. A. Owner and Contractor each binds itself, its partners, successors, assigns, and legal representatives to the other party hereto, its partners, successors, assigns, and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. 8.04. Severability. A. Any provision or part of the Contract Documents held to be void or unenforceable under any Law or Regulation shall be deemed stricken, and all remaining City of Lakeville, MN 00500 Agreement WTF Improvements Project -6- 012715 provisions shall continue to be valid and binding upon Owner and Contractor, who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. 8.05. Business Addresses. A. The business address of Contractor given herein is hereby designated as the place to which all notices, letters, and other communication to Contractor will be mailed or delivered. The address of Owner appearing herein is hereby designated as the place to which all notices, letters, and other communication to Owner shall be mailed or delivered. Either party may change its address at any time by an instrument in writing delivered to Engineer and to. the other party. IN WITNESS WHEREOF, Owner and Contractor have signed this Agreement. One counterpart each has been delivered to Owner, Contractor, Surety, and Engineer. This Agreement will be effective on Owner: City of Lakeville, Minnesota I: And: Matt Little, Mayor Charlene Friedges, City Clerk Address for giving notices: 20195 Holyoke Avenue Lakeville, MN 55044 Contractor: Gridor Construction, Inc. 37 Title: Address for giving notices: End of Section 3990 27th Street SE Buffalo, MN 55313 City of Lakeville, MN 00500 Agreement WTF Improvements Project -7- 012715