4.5. SR 06-16-2014 City of
Elk - Request for Action
River O.
To Item Number
Mayor and City Council 4.5
Agenda Section Meeting Date Prepared by
Consent June 16, 2014 Justin Femrite, P.E., City Engineer
Item Description Reviewed by
Award Contract for Wastewater Treatment Facility Tim Simon, Finance Director
Improvements Reviewed by
Cal Portner, City Administrator
Action Requested
Adopt,by resolution, awarding of the Wastewater Treatment Facility Improvement project to Rice Lake
Construction Group in the amount of$16,525,200 and authorize the execution of the contract.
Background/Discussion
As detailed in Resolution 14-17, staff advertised the Wastewater Treatment Facility Improvement project.
Construction bids were received on Thursday June 5, 2014. The three bids received were as follows:
Rice Lake Construction Group $16,525,200
Municipal Builders, Inc. $16,915,700
Gridor Construction,Inc. $17,243,800
The low bid was 9.8% higher than the last estimate reviewed in January. Contractors indicated the
limited size of the site and complexity for making control and piping tie overs while keeping the plant
operational contributed to the increase over the estimates. Slight scope modifications including added
F VAC filters in the existing digester building, reroofing existing buildings, replacing corroded steps at the
Evans lift station, and final building permit costs also contributed to the higher cost.
To take advantage of the $2.8 million in grant funds we qualify to receive from the state,the contract
needs to be awarded so the bid results can be forwarded and certified by the Minnesota Pollution Control
Agency before June 30, 2014. If awarded, construction is expected to begin in late July.
Financial Impact
The revised project budget including construction, engineering, testing,utility relocations, and bond
issuance is $18,037,050. The funding package consists of revenue from bond sales, state grant,reserves,
and trunk utility fund. Specific amounts from each source are detailed in the project funding summary.
Bonds will be repaid from users of the sewer system via the sewer enterprise fund.
Attachments
• Resolution
• Bid Analysis Memo
• Project Funding Summary
P a w E A E U s r
NaA f RE]
City of
Elk
River
Resolution 14-
A Resolution of the City of Elk River Accepting Bid and Authorizing
Execution of Contract in the Matter of the Wastewater Treatment Facility
Improvements
WHEREAS, pursuant to a City Council Resolution 14-17 passed at the May 5, 2014,
meeting, competitive bids were solicited and received on May 28, 2014, for the Wastewater
Treatment Facility Improvements; and,
WHEREAS,The City Council has considered the amount of the bids and the
responsibility of the bidders and determined that Rice Lake Construction Group is the
lowest responsible bidder;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River,Minnesota, as follows:
1. The Mayor and City Clerk are authorized and directed to execute, on behalf of the City,
such contract with Rice Lake Construction Group, as is approved by the City Attorney, for
the completion of the Waste Water Treatment Facility Improvements according to the
approved plans and specifications.
2. The City Clerk is authorized and directed to forthwith return to all bidders the deposits
made with their bids upon execution of the contract specified above.
Passed and adopted this 16"'day of June 2014.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City Clerk
P O w E R E U 9 1
1`4 U
• BO L—TON & NA r== N K , I NCo
Consulting Engineers & Surveyors
12224 Nicollet Avenue•Burnsville, MN 55337
Phone(952)890-0509• Fax(952)890-8065
www.bolton-menk.com
BID EVALUATION FOR THE CONSTRUCTION OF THE
WASTEWATER TREATMENT FACILITY IMPROVEMENTS
CITY OF ELK RIVER, MINNESOTA
Three (3) bids were received for the construction of the wastewater treatment facility
improvements project. The bids ranged from $16,525,200 to $17,243,800. The apparent low,
responsive and responsible bidder was Rice Lake Construction Group, of Deerwood, Minnesota.
As presented in the attached Bid Tabulation, all of the bidders were within five (5) percent of
each other and the two lowest bidders were within 2.5 percent of each other.
The bid documents did not contain any wording or ambiguities so as to force the Contractors to
build in additional contingencies.
Since three (3) bids were received and the bids were within 5 percent of each other, we feel the
specifications were not restrictive to force a non-competitive bid situation.
The bid documents contained 700 calendar days after the Notice to Proceed to complete this
project. This is sufficient construction time so that the Contractor would not have to work
overtime or add any additional costs to complete this project.
Therefore, we feel that the bids received were competitive and responsive and re-bidding of the
project would not provide any cost savings.
A brief historical background of Rice Lake Construction Group is presented in this paragraph.
Rice Lake Construction Group has been in the construction business for 30 years and is based in
Deerwood, MN. Rice Lake Construction Group does approximately $90 million worth of
projects per year and specializes in water and wastewater treatment facilities. Rice Lake
Construction Group has built more than 730 projects associated with water and wastewater
treatment worth a total value of more than $1 billion. Bolton & Menk, Inc. has worked in the
past with this contractor on wastewater and water treatment facility projects in various
communities.
G:\Elk River\T21.106811_Ramsey\7_Bidding_Contract_Does\Bldeval.doc
DESIGNING FOR A BETTER TOMORROW
Bolton&Menk is an equal opportunity employer
0 Bid Evaluation
June 9,2014
Page 2
In our opinion, Rice Lake Construction Group is experienced in the type of work required for
this project. The company has fulfilled the bidding and contract requirements. We recommend
that their bid in the amount of$16,525,200.00 be accepted.
Respectfully submitted,
BOLTON &MENK, INC.
Seth A. Peterson, P.E.
Project Manager
Enclosures
G:\Elk River\T21.106811_Ramsey\7_Bidding—Contract_Docs\Bideval.doc
$10,000,000
City of Elk River, Minnesota
General Obligation Sewer Revenue Bonds
Series 2014E
Sources & Uses
Dated 08/21/2014 1 Delivered 08/21/2014
Sources Of Funds
ParAmount of Bonds............................................................................................................................................. $10.000,000.00
SewerUtility Cash.................................................................................................................................................. 3,000,000.00
StateFunds Cash........................ ......................................... ............................................................................... 2,800,000.00
Funded by Future Debt Issuance........................................................................................................................... 1,237,050.00
Trunk Utilities Fund Cash....................................................................................................................................... 1,000.000.00
TotalSources....................................................................................................................................................... $18,037,050.00
Uses Of Funds
TotalCost of Project............................................................................................................................................... 17,857,050.00
Total Underwriter's Discount (1.200%).................................................................................................................. 120.000.00
Costsof Issuance.......................................................................................................................................... .... 60,000.00
TotalUses............................................................................................................................................................. $18,037,050.00
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