HomeMy WebLinkAboutWater Reclamation Facility Administration and Lab Building Notice of Award.pdf Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Bob Murray, Project Engineer
Rick Hixson, City Engineer
Chuck Winn, Assistant City Manager
SUBJECT: WRF Administration and Lab Building – Notice of Award
MEETING DATE: December 28, 2009
AGENDA ITEM TYPE: Action.
RECOMMENDATION: Approve and authorize the City Manager to sign the notice of award
to Williams Brother Construction, LLC in the amount of $1,680,000.00 contingent upon SRF
Program approval.
BACKGROUND: In October of 2008, bids were received for the first phase of the Water
Reclamation Facility (WRF) improvements project. The bids came in significantly over budget,
and as such only a portion of the proposed project could be awarded at that time. As part of the
Commission meeting on that award, an overall funding package was presented to and approved
by the Commission. That included eliminating some items entirely from the phase 1 project;
continuing with some items that were currently under a separate contract such as engineering and
system integration; repackaging and rebidding the admin/lab building and digester number 3; and
a 10% project contingency. That total package amounted to $53,810,198 (see fiscal effects
below for details). Of that total project budget, the repackaging of digester number 3 was
included as a hard project cost while it was intended that the admin/lab building would only be
added if it could be funded from unneeded project contingency.
The admin/lab building was repackaged and rebid, with the bids opened on December 15th.
Williams Brother Construction LLC was the apparent low bidder with a base bid in the amount
of $1,680,000. The project was bid with a base bid and one alternate. The alternate was
deductive to use a less efficient chiller, which is part of the HVAC system. This was included if
it were necessary to try to reduce costs. With the small deduct offered, we are recommending
award of only the base bid so that we get the more efficient chiller. Based on the initial bids, had
we chosen to award the alternate it would have changed the low bidder. After review of the bids
however, the second apparent low bidder failed to submit the required ARRA form with their
bid, and SRF has deemed their bid non-responsive and will not consider it.
Since this project was to be funded from unneeded project contingency, it was imperative that
both repackaged bids be open prior to this award so that the overall costs could be considered.
Bids on the second package, digester number 3 solids dewatering building, were received on
December 22nd. The apparent low bidder was McAlvin Civil Constructors, Inc, with Williams
Brother Construction being the second apparent low. We have just begun to review the bids
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received on this package and will also need funding agency concurrence for award. This project
was bid with a base bid and 4 alternates. The overall bids (base plus all alternates) exceed the
budget for this item, so we will need to access all of the alternates before making an award
recommendation to the Commission on this package. For these reasons, award of this package
will be the subject of a separate Commission meeting next month. We do now know however,
that at a minimum we can award the base bid to either the first or second apparent low bidders in
addition to the admin/building and stay within budget.
FISCAL EFFECTS: As stated above, in October of last year a budget was presented to and
approved by the Commission for the phase I project. It was presented as:
Project $41,192,233
System Integration $ 526,000
Contingency $ 4,172,000
Total Construction $45,890,233
Engineering $ 7,919,965
Total $53,810,198
The “Project” component of this included both the portion that is currently under construction
and the repackaging of digester number 3. The admin/lab component of the project was to be
funded out of unused/unneeded contingency. Now that we have received bids on the other
project components, the budget can be further broken down as follows:
Phase 1 (under construction) $36,362,233
Change Orders to Date $ (185,713)
10% Contingency on Remaining Work $ 2,117,000
Subtotal $38,293,520
Admin Building $ 1,680,000
10% Contingency $ 168,000
Subtotal $40,141,520
System Integration $ 526,000
Engineering $ 7,919,965
Total Cost w/o Digester No. 3 $48,587,485
Total Budget from Above $53,810,198
Total Available for Digester No. 3 $ 5,222,713
In addition to this, we have recently received an FFY10 STAG grant that can be used for the
WRF project in the amount of $485,000. With the inclusion of that grant, the total available for
the Digester No. 3 project is $5,707,713, or a bid of $5,188,830 with a contingency of $518,883.
The higher of the base bids for digester number 3 from the two apparent low bidders is
$4,959,100. Therefore with the grant, we can award the base bid project without affecting the
overall budget. We will be assessing the alternates included in this project in relation to budget
and project contingencies prior to bringing an award recommendation to the commission, but at a
minimum we are assured we can do the base bid project with award of the admin/lab building.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Engineers Award Recommendation
Report compiled on: December 23, 2009
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