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1. Conditional Bid Award - WWTP ExpansionY f. w: City of Kall*spell Public Works Department .................... .... ... .. ....... . ..... rvN Post Office Bay19971,Kalispell, Fontana 59903-1997 Telephone 406758-7720 Fax 406758 783 1. REPORT TO: Mayor and City Council FROM: James C. Flansz, P.E., Director of Public Works SUBJECT: Conditional Bid Award Recommendation -- Kalispell AWWTP Expansion MEETING DATE: April 16, 2007 BACKGROUND: The 2002 Facility Plan identified major deficiencies in Kalispell's utility systems that should be corrected in order to sustain the delivery of services in a rapidly growing community. The recommendations were organized into a Capital Improvement Plan that Was approved by City Council in 2002. A comprehensive rate analysis was conducted in 2003 to determine the appropriate utility rates necessary to implement the approved CIP. City Council approved the recommended rate adjustments. One of the most urgent projects on the GIP was to enlarge the Kalispell AWWTP to provide additional treatment capacity. This project was initially divided into four phases so as to ensure adequate capacity is available at the right time and to minimize initial costs and the associated utility rates. The authorized rate structure adjustments covered the approved CIP and the first two phases of AWWTP expansion for a plant capacity of approximately 4.1 million gallons per day, a 34% increase. Potential future rate increases were deferred to an unknown future date when added plant capacity might then be needed. Preliminary engineering for the AWWTP expansion project was completed. This required a fresh evaluation of the original capacity analysis. This review showed the actual pace of community growth has greatly exceeded original estimates. As a result, the first increment of additional plant capacity would need to be much greater (5.5 mgd, an increase of 77% versus 34%) and must be on-line much sooner than originally anticipated. In addition, the results showed that the plant capacity at the end of the 20 year planning period must be larger (7.5 mgd, a 142% increase versus 113%) than originally expected. City Council has been kept informed of the changing capacity requirements as the design process unfolded and that the original budget estimate, the timing of expenditures, and the potential need for future rate adjustments may be different from past assumptions. With these thoughts in. mind, the consultant design team of Morrison Maierle4MR was directed to complete the expanded plant design in such a way that the required 5.5 mgd capacity could be constructed with the utility rate structure recommended in 2003 and the City's current funding capacity. The plant design documents were completed and the project was advertised for bids due April 5, 2007. Four bids were received: COP Construction of Billings, Williams Brothers Construction of April 16, 2007 Conditional Bid Award Recommendation Kalispell AWWTP Expansion.doc Billings, Swank Construction of Kalispell, and Henderson Construction of Gurnee, Illinois. These are tabulated in the attached engineer's bid summary and evaluation. As expected, the lover bid by COP Construction, $1 H,2 5 0, 0D0.00 significantly exceeds the original budget estimate which was for a much smaller addition to plant capacity. The PWD staff and the Finance Department have carefully reviewed the status of the Sewer Fund. Additional impact fees have been collected from the increased growth and other revenues have also increased. As a result, this project may be funded without changing the rates that were recommended in 2003. However, any future capacity improvements, or any other significant capital improvements necessary because of changes in water quality rules or regulations may require changes in rates. RECOMMENDATION: Staff recommends conditional award of the 2007 Kalispell AWWTP Expansion Project to COP Construction of Billings. The City may not issue a final Notice of Award until authorization to do so is given by Montana Department of Environmental Quality. This is a standard requirement for any project involving funding via the State Revolving Fund and is more fully outlined in the engineer's bid analysis and recommendation. This conditional award will require amendment of the Sever Fund budget to reflect the as -bid construction cost of this project. ACTION REQUESTED: AT CITY COUNCIL MEETING GF APRIL 16, A MOTION TO CONDITIGNALL YA WARD THE BID FOR EXPANSION OF THE KALIS'PELL A WW TP TO COP CONSTRUCTION OF BILLING►S,MONTANA. FISCAL EFFECTS: Expenditure of funds totaling $18,2So,000.00 from the sewer fund. ALTERNATIVES: As suggested by the City Council Respectfully subn j ansz, P.E. G44i� ck Director of Public Works / Ci gineer City Manager Attachment: Bid Recommendation April I6, 2007 Conditional Bid Award Recommendation Kalispell AWWTP Expansion.doc f � ENGINEERS :,...."MOltitl�T SON SURVEYORS PLANNERS MEA1.Jr.J9 INC. SCIENISTS 1 ENGINEERING PLACE • P.O. BOX 6147 • HELENA, MT • 59604 406-442-3050 • FAX: 406-442T7862 An Employee -Owned Company April 11, 2007 Mr. Jim Hansz, P.E. Director of Public Works City of Kalispell P.O. Box 1997 Kalispell, MT 59903 RE: Kalispell WWTP Upgrade Construction Award Recommendation S RF C-302211 -01 Dear Jim: Enclosed are the Bid opening Results, and Bid Summary and Award Recommendation on this project, which opened bids on April 5, 2007. The Bid summary provides the bid amounts, Engineer's cost Opinion, and summarizes any irregularities found in the bids. The apparent low bidder is COP construction, LLC, from Billings, Montana. We have reviewed the Bid Proposals and related documentation from all four bidders. The enclosed Bid summary contains the pertinent information for your review. As summarized, we recommend that the project be awarded to COP Construction. This firm has been doing similar water and wastewater construction for more than twenty years. They have successfully completed other water/wastewater construction projects ranging in size from less than $1.0 million to more than $18 million. COP construction has a generally favorable reputation around the State of Montana. Morrison- Maiede has been associated with many successful projects involving COP construction. The project award amount would be $18,250,000 'if the City Council considers it appropriate to award the project to COP construction. This includes their Base Bid with no deductive alternative bid items. We are recommending that the City elect not to incorporate any of the deductive bid alternate items into the project. The bid form also allowed the contractor several opportunities for deductive or additive equipment alternates. we are not recommending that any of these alternates be selected, as they do not meet the specifications based on our investigation. Additionally, we recommend that the City budget approximately 5.0 percent or $900,000 for project contingencies, we feel this is a prudent amount to allow for unforeseen circumstances and changed conditions on a project of this size and complexity. Conditional construction contract award approval by the City of Kalispell is recommended as soon as possible. This would allow COP construction to initiate various contract administration and organization matters that will ultimately be required. "Providing resources in partnership with clients to achieve their goals" . MORRISON �A MAIERLE, INC. Mr. Jinn Hansz April 11, 2007 Page 2 of 2 The city cannot issue a final Notice of Award until authorization to do so is given by the Montana Department of Environmental Quality. This is typical for a project that involves loan funds through the SRF program. Additional items required by MDEQ before they will authorize award include: The Site Title opinion from the City of Kalispell. A copy of the Bid Bond. • Proof that the project was advertised properly. i A statement from the Authorized Representative With name and amount to whom you wish to award the contract. In addition, MDEQ must collect and respond to any comments offered on the Environmental Assessment and Finding of No Significant Interest (FONSI) for this project. The public comment period ends April 10, 2007. If you have any questions or comments about the bids, or items needing to be submitted, give me a call. Sincerely, MORRISON-MAIERLE, INC. Scott B. Mur , P.E. Project Manager Enclosures: Bid opening Results Bid Summary and Award Recommendation cc: Paul LaVigne, MDEQ-WQD Joni Emricklcurt Konecky, city of Kalispell Alan Erickson, MMI Terry RichmondfPurnal Whitehead, MMI Craig caprara, HDR RA0387V4.31£i2dding Docs\&d TabulationslAward Recommendation .kal.doc LA MORRISON Au4MAIERLE, wc. BID SUMMARY AND AWARD RECOMMENDATION April 1 1 , 2007 I{ALISPELL, MONTANA ADVANCED WASTEWATER TREATMENT PLANT PHASE 1 EXPANSION SRF C-302211,,01 Bids were received for the Kalispell Advanced wastewater Treatment Plant (AWWTP) Phase 1 Expansion project on April 5, 2005. This memorandum summarizes the bids received and recommends a course of action for the city. SUMMARY of BIDS RECEIVED Four (4) contractors submitted bids on this project. The total (base) bids are summarized below and are compared to the Engineer's opinion: KALISPELL AW TP PHASE 1 EXPANSION BID OPENING RESULTS Contractor Name Location Total Lump Sum Base Bid Price COP Construction, LLC Billin s, MT $ 18,2501000 Williams Brothers Construction, LLC Billin s, MT $ 18,807,381 Swank Ente rises Kal is ell, MT $ 19 s2001000 J.J. Henderson and Sons Gurnee, IL $ 20,7001601 iEngineer's..OpLnion of Probable cost T $ 157593,000 The apparent low bidder is COP construction, LLC of Billings, Montana. Their bid is $18,250,000 which is $2,657,00 (or about 17 percent) above the Engineer's Opinion of Probable Cost. The second low bidder, Williams Brothers construction, LLC of Billings, Montana submitted a bid that is $557,361 (or about 3.0 percent) above the low bid. The next low bidder, Swank Enterprises of Kalispell, Montana, submitted a bid that is $950,000 (5.2 percent) above the low bid. The final bidder, J.J. Henderson and Sons, Inc of Gurnee IL was approximately 13 percent over the low bid price. Bidders were also required to provide deductive bid alternative prices for two alternatives: elimination of TWAS storage facilities (Bid Item 301) and elimination of the Truck Storage Facility (Bid Item 302). These prices are shown as Attachment A (Bid Opening Summary). The bid prices including any or all of the deductive alternatives could have been used in determining the low bidder. COP construction was, however, the low bidder in each case. BID ANALYSIS Contractors were allowed approximately six weeks to prepare their bids. The bid tabulations included as Attachment A provide a direct comparison of each Base Bid and MORRISON 4 MMERLE, wc. the bids after consideration of deductive alternatives). The three low bidders were all within a 5.2 percent range of each other, indicating that accurate bids were developed and received, despite the fact that they were at least 17 percent over the Engineer's opinion of probable cost. Similar reductions in price were offered for the two deductive alternatives. Preliminary review and comparison of the contractor's schedule of values to the Engineer's estimates does not reveal any outstanding items with unusually different costs, but rather a generally higher level of cost across a broad spectrum of categories. Further review and scrutiny will be performed, and a dialog will be initiated with the Contractor to determine if any post -bid value engineering might reveal project cost savings. COP construction offered a total deduction of $400,000 for elimination of the TWAS storage modifications and the Truck Storage Facility addition. The latter is an integral component of the proposed approach to overall odor control at the facility. In addition, the deduction offered is not significant enough compared to the cost of a standalone project for the same facilities. It is not recommended that the City exercise their option to award the project with either or both deductive alternatives. BASE BID EQUIPMENT Several specific pieces of equipment were bid as "base" items to match existing equipment or because of unique design features. contractors were offered the opportunity to bid alternate equipment in some cases, in return for a deductive price. COP construction offered deductive alternates for process aeration equipment. The alternate equipment does not meet the technical specification, however, and should not be considered by the city. BID IRREGULARITIES The bid submitted by each contractor was complete with respect to the bid form, bid bond, non -collusion affidavit, acknowledgement of addenda, appropriate signatures, etc. The bid form also included a requirement for additional "Information required of Bidders", which addressed such information as past work history, proposed resident project representative, equipment manufacturers included in bid, list of major sub - consultants, etc. Each of the four bids was found to be incomplete in a minor respect with regards to submittal of this information at the time of bid. COP construction failed to include a complete list of sub -contractors and equipment suppliers. They forwarded this information to the Engineer within 18 hours of the bid opening. This irregularity is minor and, as state above, would apply to all bidding contractors. LOW BIDDER SUPPLEMENTAL INFORMATION COP construction has a proven record within the construction industry and many successful projects in Montana. Attachment B contains the Information Required of Bidders submitted by COP Construction. This information includes a list of major sub- contractors and equipment suppliers. R:\03$7\043\Bidding Docs\Bid TabulationslBid Summary & Award Recomm+endationAal.do-c .1 MOFMSON 'As-4 MAIERLE, wc. SUMMARY AND RECOMMENDATIONS If considered appropriate by the city council and adequate funds are available, the Kalispell AWWTP Phase 1 Expansion project should be awarded to COP construction, LLc. of Billings, Montana. Their base bid of $18,250,000 is $557,361 less than the next lowest bidder on this project. A letter of conditional award should be provided to COP construction until such time as authorization for final award is received from MDEO. Accomplishing this as soon as possible will allow the contractor to begin the many administrative functions that must be accomplished before they can begin work. Prepared by Morrison-Maierie, Inc. R:103871043\Bidding Docs\Bid Tabulabons0d Summary & Award Recommendation.kal.doc KALISPELL, MT ADVANCED WASTEWATER TREATMENT PLANT Phase 1 Expansion BID OPENING SUMMARY (Attachment A) April 5, 2007 — 3 p.m. Contractor Name and Bid Bond Noncoll. Information Addenda No. 1, 2, 3 Total Base Base Bid and Base Bid and Based Bid and Location (10% Affidavit Required Ack Bid Amount Deductive Item Deductive item Deductive Items Security) of Bidders eodwled 301 342 301 and 302 COP Construction, LLC (Billings MT) Yes Yes Yes Yes $18,250,000 $18,200,000 $171900,000 $17,85%000 Joseph J. Henderson and Son, Inc Yes Yes Yes Yes $20970%601 No bid No bid No bid Gurnee, IL Williams Brothers Construction, LLG Yes Yes Yes Yes $18,807,361 $18,722,361 $187345,361 $18,2fi4,361 (Billings, MT) Swank Enterprises (Kalispell, MT) Yes Yes Yes Yes $191240,000 $19,100,000 $18,800,000 $18,7009000 Engineer's Estimate of Probable Cost n1a n1a n1a n1a $15,593,000 $14,913,000 i Bid Tabulations certified by Scott B. Murphy, P.E. Morrison-Maierle, Inc. RA038710431Bidding Docs\Bid Tabuiations0d Opening Summary.doc