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HomeMy WebLinkAboutItem 08Date: 30 June 2010 Item No. RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE WELL NO. 14 GENERATOR AND APPURTENANT WORK TO TOTAL CONSTRUCTION & EQUIPMENT, INC. Proposed Action Staff recommends adoption of the following motion: Move to accept bids for the Well No. 14 Generator and Appurtenant Work and award the contract to Total Construction & Equipment, Inc. Passage of this motion enables the installation of an emergency /backup generator at Well No. 14 to support City water needs during emergencies and reduce electrical costs for well operations. Overview The department solicited bids for the installation of an emergency /backup generator at Well 14 in King Park. The additional generator will bring the City's emergency pumping capacity to approximately 5 million gallons per day or about half of an average summer day's use. The generator will also enable the City to take advantage of a lower electrical rate, aiding in reducing operating costs for the well. The advertisement for bids was published on 20 May 2010 and bids were opened and read aloud on 11 June 2010. Two bidders responded with Total Construction & Equipment, Inc. being the low bidder. Both bids exceeded the engineer's estimate primarily as a result of a significant increase in the cost of the generator. Additional costs are gas and electric utility installation at the site. Bids were evaluated by the City's consulting engineer and a recommendation made to accept the bid from Total Construction & Equipment, Inc. Staff has reviewed the bid and recommends approval of this motion. Primary Issues to Consider The need for an emergency generator. It provides for continuous operation during an emergency and results in a lower electrical rate during normal daily operations. Supporting Information • A copy of the engineer's recommendation, attac Christop . Petree Operations & Maintenance Director bid tabulation, additional funding are Financial Impact: $208,300 Budgeted: Yes Source: 7610.6295 Related Documents (CIP, ERP, etc.): CIP Project 10 -04 Notes: Additional funding available through unencumbered major maintenance fund balance CITY OF LAKEVILLE RESOLUTION NO: RESOLUTION ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE WELL NO. 14 GENERATOR AND APPURTENANT WORK TO TOTAL CONSTRUCTION & EQUIPMENT, INC. WHEREAS, notices to bidders for the acceptance of sealed bids for the Well No.14 Generator and Appurtenant Work were officially published on 20 May 2010, and WHEREAS, sealed bids for were opened at 11:00 a.m. on 11 June 2010, and WHEREAS, the lowest responsible appurtenant work is Total Construction Minnesota in the amount of $171, 400.00. bidder for the Well No. 14 generator and & Equipment, Inc., Inver Grove Heights, NOW, THEREFORE, BE IT RESOLVED, that the bids are accepted for the Well No. 14 Generator and Appurtenant Work and the contract is awarded to Total Construction & Equipment, Inc. APPROVED AND ADOPTED this 6 day of July 2010 by the City Council of the City of Lakeville. CITY OF LAKEVILLE ATTEST: Holly Dahl, Mayor Charlene Friedges, City Clerk r Amrodaler. Infrastructure ■ Engineering ■ Planning ■ Construction 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763 - 541 -4800 Fax: 763 -541 -1700 June 23, 2010 Mr. Chris Petree Operations & Maintenance Director City of Lakeville 18400 Ipava Avenue Lakeville, MN 55044 Re: Well No. 14 Generator and Appurtenant Work City Project No. 10 -04 City of Lakeville, MN WSB Project No. 1715 -67 Dear Mr. Petree: Bids were received for the above - referenced project on .Friday, June 11, 2010, and were opened and read aloud. Two bids were received. The bids were reviewed and checked for mathematical accuracy and tabulated. The award of contract is to be made to the lowest responsible bidder with the lowest Total Base Bid. Please find enclosed the bid tabulation indicating the low bidder as Total Construction & Equipment, Inc., Inver Grove Heights, Minnesota, in the amount of $171,400.00. The Engineer's Estimate for the Total Base Bid was $143,000.00. The main reason for the discrepancy between the Engineer's Estimate and the bid prices is that the price charged by the generator manufacturer increased by approximately $20,000 just days before the bid opening. We recommend that the City Council consider these bids and award a contract in the amount of $171,400.00 to Total Construction & Equipment, Inc. based on the results of the bids received. Sincerely, WSB & Associates, Ina i&JUA Nancy D. igler, PE Senior Project Manager Enclosures cc: Mary Krech, Total Construction & Equipment, Inc. srb X:,01715 -6i -1du:JdCm .."M A.'•ni•.•1 -TTt RSCAf.11D1:: -c proxe- 067310.• • .`'n BID TABULATION SUMMARY PROJECT: Well No. 14 Generator and Appurtenant Work City Project No. 10 -04 OWNER: City of Lakeville, MN WSB PROJECT NO.: 1715 -67 Bids Opened: Friday, June 11, 2010 at 11:00 a.m. Bid Security Add. No. 1 Contractor (5 %) Rec'd. Total Bid 1 Total Construction & Equipment, Inc. 2 Killmer Electric Co., Inc. x X $171,400.00 x X $176,500.00 Engineer's Opinion of Cost $143,000.00 I hereby certify that this is a true and correct tabulation of the bids as received on June 11, 2010. Nanc . ZeigTe7, Denotes corrected figure KA01715- 671AdminlConstruction Admin11715 -67 Bid Tab Summary- 061610 -Wgned xis � � W � � � � ��. .� }� � � § � § ) � / � \ ( a / m d & Mu IL � � 2 ■ ■ ;s i = � - � m I ) � § � d � � � 9 � j k \ f B / O � E 2 % 2 a 4 ) ƒ 2 \ \ o - — _!I . 0 k z k� � ! �ku.� / � m I ) � § � d � � � 9 � j k \ f B / O � E 2 % 2 a 4 ) ƒ 2 \ \ k� k� §( km $ 2 ; o - — . 0 ! ) ! 7 W i| k� k� §( km $ 2 ; o - a § ! 7 2 § /2c w § S; t ,ek \jIr k §kk § /_ z0f 2 !o) _ m z § k LU K \k lu !mss . _ - k k� k� §( km $ 2 ; Financing. The Utility Operating Fund budget provided $155,500 for the generator at Well #14. The project however is $52,800 over budget. The project can be financed from the unappropriated /unencumbered balances in the Water Fund major maintenance account. The favorable account balances are derived primarily from the Dakota Heights tower painting project as shown below. Adopted Water - major maintenance Budget Estimate Variance Well #12 - Sand Removal - 50,830 (50,830) Well #13 - Rehabilitation 52,000 45,000 7,000 Well #14 - Rehabilitation 54,600 16,925 37,675 Well #14 - Emergency backup generator 155,500 208,300 (52,800) North Park Water Tower 23,500 23,500 - Dakota Heights Water Tower 200,000 113,433 86,567 Total Water Fund - major maintenance $ 485,600 $ 457,988 $ 27,612