HomeMy WebLinkAbout2020-08-17-I05B Gas Transmission Modifications Rebid_Award ContractAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: August 17, 2020
AGENDA ITEM:Consideration of approval of a resolution awarding contract for the Gas
Transmission Modifications.
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON: This project consists of an emergency blow off valve
to be installed on the 8” gas transmission main that runs from the Northern Natural Gas town
boarder station north of Granger to a point of connection to Waukee’s distribution system at SE
Alice’s Road and SE Olson Dr. Due to the development along the Alice’s Road corridor and the
classification of transmission line and recent changes to federal government regulations, an
emergency blow off valve is required to be placed on this gas main in case of an uncontrolled
release of natural gas from the pipeline. In addition to an emergency blow off valve, a regulator
station for the near future 10-inch gas main extension project along Meredith Drive will be
constructed soon after the emergency valve installation occurs, hence staff’s reason for
combining the two tasks into one project.
The City received bids on August 11, 2020 with five contractors submitting bids. Michels was the
low bidder at $274,935.60, although this bid is 31% over the engineer’s estimate of $210,000.00,
staff and the design engineer felt this was acceptable competitive bidding for the scope of project.
This project was originally bid in June 2020 but all the bids were significantly over the engineer’s
estimate. Staff held a pre-bid meeting to clarify any questions on the project and feel the
requirements to utilize local union laborers attributed to the higher bids received. At this time to
delay this project is not feasible in order for the City to meet the timeline the City has committed
to in order to meet the federal regulations mentioned above.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: $274,935.60
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: Staff recommends awarding the project to Michels of
Brownsville, WI in the amount of $274,935.60.
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Letter of Recommendation
II. Bid Tab
PREPARED BY:Beth Richardson
REVIEWED BY: Rudy Koester TR/RK
PUBLIC NOTICE INFORMATION –
I5B
NAME OF PUBLICATION:
DATE OF PUBLICATION:
RESOLUTION 2020-
RESOLUTION MAKING AWARD OF CONSTRUCTION
CONTRACT FOR THE 2020 GAS TRANSMISSION
MODIFICATIONS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WAUKEE, STATE
OF IOWA:
Section 1.That the following bid for the construction of certain public improvements
described in general as the 2020 Gas Transmission Modifications, described in the plans and
specifications heretofore adopted by this Council on August 17, 2020, be and is hereby accepted,
the same being the lowest responsive, responsible bid received for such work, as follows:
Contractor: Michels of Brownsville, WI
Amount of bid: $274,935.60
Portion of project: All construction work
Section 2.That the Mayor and Clerk are hereby directed to execute the contract with the
contractor for the construction of the public improvements, such contract not to be binding on the
City until approved by this Council.
PASSED AND APPROVED this 17th day of August, 2020.
Mayor
ATTEST:
City Clerk
Utility Safety & Design, Inc.
28847 US Highway 136
Unionville, MO 63565
P (660) 947-3316 F (660) 552-4602
SHELBYVILLE, KENTUCKY
PO Box 727
Shelbyville, KY 40066
Office/Fax (502) 513-5127
BELLEVILLE, ILLINOIS
9 Executive Woods Court, Suite 1
Belleville, IL 62226-2016
P (618) 277-1520 F (618) 277-1586
OLNEY, ILLINOIS
1927 Miller Drive
Olney, IL 62450
P (618) 392-5502 F (618) 392-2261
August 12, 2020
Mr. Tim Royer, Assistant Dir. of Public Works
City of Waukee
805 University Avenue
Waukee, IA 50263
troyer@waukee.org
RE: 2020 Gas Transmission Modifications Re‐bid – Bid Recommendation
Dear Mr. Royer,
USDI has tabulated the bids from five bidders for the above referenced project. Please refer to the
attached certified bid tabulation. The apparent low bidder is Michels of Brownsville, WI. Their bid
amount was $274,935.60 which is approximately thirty‐one percent higher the Engineer’s estimate. All
bidders submitted the required bid bond, proposal and bidder status form.
When comparing the contractors bid items to the engineer’s estimate it is Item No. 3, Regulator Station
Installation, where the biggest price discrepancy occurs. Michels bid is more than double the engineer’s
estimate for this pay item. In my opinion, their site work pay item appears to be low. It might be
possible that they have included some of the sitework expense in the regulator station pay item.
I do have previous experience working with Michels on other natural gas pipeline projects. They are a
qualified and experienced contractor. At this time, I see no reason to not award the contract to Michels.
Please feel free to contact me anytime if you have any questions or require additional information.
Respectfully Submitted,
Anthony Everette, P.E.
Vice‐President Engineering
USDI
Attach: As noted