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E2.1920s Water and Sewer Replace Project Bid RecommendationCITY OF KALISPELL MEMORANDUM To: Doug Russell, City Manager From: Susie Turner, PE, Director of Public Works Re: ARPA Project - Replacement of Original 1920s Era Water and Sewer Mains in Downtown Kalispell Meeting Date: January 17, 2023 BACKGROUND: The American Rescue Plan Act (ARPA) was signed into law March 11, 2021, to address the COVID-19 pandemic. The Act provides state and local aid to make necessary investments in water, sewer and storm infrastructure. The City submitted grant and funding applications on July 15, 2021, for several water, sewer, and storm projects in consideration of the City's capital improvement plan, ARPA project eligibility requirements, and ranking criteria for the competitive grant. On October 8, 2021, the Governor awarded the City of Kalispell several Competitive and Minimum Allocation Grants for Water, Sewer, and Stormwater projects. Replacement of Original 1920s Era Water and Sewer Mains in Downtown Kalispell is Kalispell's largest ARPA project receiving grant allocations and focused on replacement of Kalispell's aging critical infrastructure. Kalispell's 1920's Water and Sewer Main Replacement — 2023 Project includes three (3) schedules, and two (2) additive alternates as follows: Schedule 1: Sewer Main Replacement of approximately 1,345 LF in E Montana St, MDT Site and 7th Av EN in Kalispell, MT. Schedule 2: Water Main Replacement of approximately 4,360 LF in 8th Ave W and 1 lth St W in Kalispell, MT. Schedule 2 has one additive alternate (Additive Alternate 91) for street rehabilitation of 8th Ave W and 1 lth St W, including new curb and gutter. Schedule 3: Sewer Main Replacement of approximately 1,225 LF in 4th Ave EN, E Center Street and 5th Alley E to 2nd St E in Kalispell, MT. Schedule 3 has one additive alternate (Additive Alternate 92) which includes sewer main replacement of approximately 1,550 LF in 5th Alley E from 2nd St E to 6th St E 201 1' Avenue E Phone (406)758-7720 Po Box 1997 Public Works Department Fax (406)758-7831 Kalispell, MT 59903 1 1 www.kalispell.com BIDDING RESULTS: Bids were received and opened on January 5, 2023. A total of five bidders submitted bids for the project. A technical summary of the bids received for each schedule is provided within the attached RPA Technical Memorandum. The apparent low bid per schedule is as follows: Sandry Construction LHC, Inc. JR Civil, LLC Total Engineer's Est. Schedule 1 $804,901.00 $804,901.00 $777,135.00 Schedule 2 $3,048,263.35 $3,048,263.35 $3,025,970.00 Schedule 2 Add Alternate #1 $2,125,413.50 $2,125,413.50 $1,863,295.00 Schedule 3 $1,058,485.00 $1,058,485.00 $884,997.00 Schedule 3 Add Alternate #2 $1,075,378.00 $1,075,378.00 $1,155,510.00 Total $804,901.00 1 $5,173,676.85 $2,133,863.00 1 $8,112,440.85 $7,706,907.00 Bids were reviewed for irregularities and references were validated for all the apparent low bidders listed above in the table. Sandry Construction, LHC, Inc. and JR Civil are determined to be responsive and responsible contractors successfully completing similar projects. The contractor's cost to complete all three schedules exceeds the engineers cost estimate by $405,533.85. In consideration of the current bidding environment and necessity to replace Kalispell aging infrastructure, Public Works recommends awarding all schedules and all additive alternates. FISCAL EFFECTS: The project grant allocations and FY 23 funding sources are described as follows: City FY 23 Funding Source Amount of Funding ARPA - Minimum Allocation Grant $3,554,001.00 ARPA - Competitive Grant $2,000,000.00 ARPA - Local Fiscal Recovery Funds $1,573,435.00 Bridge and Road Safety and Accountability (BARSAA) $1,085,367.00 Water Fund $350,000.00 Sewer Fund $350,000.00 TOTAL = $8,912,803.00 The total project costs are described as follows: Project Items Costs Professional Services $815,900 Easements Procurement $1,750 Construction $8,112,440.85 TOTAL = $8,930,090.85 As it stands, without adding construction contingencies, the projected project costs are $17,287.85 above the FY 23 allocated funds. Within the FY 23 Sewer Budget, capital project Sewer Main Replacement 1 st & 2nd Ave EN from Wyoming orth has a remaining balance of $983,094 and the project is at substantial completion with only minor expenditures remaining. As such the additional costs and construction contingency for this project cost can be supported with the remaining funds from the Sewer Main Replacement I st & 2nd Ave EN from Wyoming North capital project. 2 1 P a g e To summarize, the Replacement of Original 1920s Era Water and Sewer Mains in Downtown Kalispell Project will be funded, with Council's approval, through the following sources: Source Amount of Funding ARPA — Minimum Allocation Grant: 5720-410-430550-951 $3,554,001.00 ARPA — Competitive Grant: 5720-410-430550-951 $2,000,000.00 ARPA — Local Fiscal Recovery Funds: 4393-410-430550-951 $1,573,435.00 Bridge and Road Safety and Accountability (BARSAA): 2421-421-430240-354 $1,085,367.00 Water Fund: 5210-447-430550-952 $350,000.00 Sewer Fund • 5310-454-430630-954 ($400,000)' • 5310-454-430630-951 (350,000) $750,000.00 TOTAL = $9,312,803.00 1. $400,000 to account for funding deficiency totaling $17,287.85 and construction contingency. ACTION REQUESTED: Motion to award all schedules and all additive alternates as follows: • Schedule 1 - Award the project to Sandry Construction for $804,901.00 • Schedule 2 and Additive Alternate 91 -Award the project to LHC, Inc. for $5,173,676.85 • Schedule 3 and Additive Alternate 92 —Award project to JR Civil, LLC for $2,133,863.00 ALTERNATIVES: As suggested and approved by the City Council. ATTACHMENTS: RPA Technical Memorandum: Engineer of Record Bid Analysis and Recommendation. 201 1' Avenue E Phone (406)758-7720 Po Box 1997 Public Works Department Fax (406)758-7831 Kalispell, MT 59903 1 1 www.kalispell.com CIVIL ENGINEERING I TRANSPORTATION I PLANNING I SURVEYING Memorandum 1 HELENA, MT KALISPELL, MT BOZEMAN, MT TO: Susie Turner, PE FROM: Ryan Mitchell, PE, PLS SUBJECT: Kalispell Water and Sewer Main Replacement — 2023 Project Summary of Bids Received DATE: January 10, 2023 Project Overview The Kalispell Water and Sewer Main Replacement — 2023 Project includes three (3) schedules, and two (2) additive alternates as follows: Schedule 1: Sewer Main Replacement of approximately 1,345 LF in E Montana St, MDT Site and 7th Av EN in Kalispell, MT. Schedule 2: Water Main Replacement of approximately 4,360 LF in 8th Ave W and 1 lth St W in Kalispell, MT. Schedule 2 has one additive alternate (Additive Alternate #1) for street rehabilitation of 8th Ave W and 1 lth St W, including new curb and gutter. Schedule 3: Sewer Main Replacement of approximately 1,225 LF in 4th Ave EN, E Center Street and 5th Alley E to 2nd St E in Kalispell, MT. Schedule 3 has one additive alternate (Additive Alternate #2) which includes sewer main replacement of approximately 1,550 LF in 5th Alley E from 2nd St E to 6th St E. Bid Opening Bids were received on January 5, 2023, and opened through QuestCDN at 2:00 PM., local time, in the 1st Floor Conference Room at City Hall in Kalispell, MT. A total of five (5) bidders submitted bids for the project. This memorandum summarizes the bid received for the Kalispell Water and Sewer Main Replacement— 2023 Project. Summary of Bids Received The Summary of Bids is attached to this memorandum. SCHEDULE 1: Four (4) bids were received for Schedule 1. The bids for Schedule ranged from 3.6% higher to 27.6% higher than the Engineer's Estimate. No bid irregularities were found. The apparent low bidder for Schedule 1 is Sandry Construction. www.rpa-hin.com January 10, 2023 Susie Turner, PE Page 2 of 3 SCHEDULE 2: Three (3) bids were received for Schedule 2. The bids for Schedule 2 ranged from 0.7% higher to 21.6% higher than the Engineer's Estimate. No bid irregularities were found. The apparent low bidder for Schedule 2 is LHC, Inc. SCHEDULE 3: Two (2) bids were received for Schedule 3. The bids for Schedule 3 ranged from 13.8% higher to 19.6% higher than the Engineer's Estimate. No bid irregularities were found. The apparent low bidder for Schedule 3 is S & L Underground, Inc. ADDITIVE ALTERNATE 91: All bidders who submitted a bid on Schedule 2 were required to submit a bid on Additive Alternate #1. Three (3) bids were received for Additive Alternate 91. The bids for Additive Alternate 91 ranged from 14.1% higher to 57.9% higher than the Engineer's Estimate. No bid irregularities were found. The apparent low bidder for Schedule 2 PLUS Additive Alternate 91 is LHC, Inc. ADDITIVE ALTERNATE 92: All bidders who submitted a bid on Schedule 3 were required to submit a bid on Additive Alternate 92. Two (2) bids were received for Additive Alternate 92. The bids for Additive Alternate 92 ranged from 6.9% lower to 9.6% higher than the Engineer's Estimate. No bid irregularities were found. The apparent low bidder for Schedule 3 PLUS Additive Alternate 92 is JR Civil, LLC. Award Options The City of Kalispell has the following options available in terms of awarding a contract for this proj ect. 1. Accept the bid received as received, and: a. Award Schedule 1; or b. Award Schedule 1 and Schedule 2; or c. Award Schedule 1, Schedule 2 and Schedule 3; or d. Award Schedule 1, Schedule 2, Schedule 3 and Additive Alternate 91; or e. Award Schedule 1, Schedule 2, Schedule 3, Additive Alternate 91 and Additive Alternate 92 2. Reject the bids and re -bid the project at a later date. January 10, 2023 Susie Turner, PE Page 3 of 3 Recommendation of Award After discussing the bid results and reviewing the budget with Susie Turner, Director of Public Works, RPA recommends that the City of Kalispell award all schedules and all additive alternates as follows: Schedule 1 - Award the project to Sandry Construction for $804,901.00 Schedule 2 and Additive Alternate 91 - Award the project to LHC, Inc. for $5,173,676.85 Schedule 3 and Additive Alternate 42 — Award project to JR Civil, LLC for $2,133,863.00 In total, the City will be awarding $8,112,440.85 worth of work. 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