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HomeMy WebLinkAbout2021-08-16-H02B 10-Inch Gas Distribution Main_Award ContractAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: August 16, 2021 AGENDA ITEM:Consideration of approval of a resolution awarding contract [10-inch Gas Distribution Main 2021, Meredith/NW 10th Street Project] FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: The 10-inch Gas Distribution Main 2021, Meredith/NW 10th Street Project consists of all labor, materials and equipment necessary for excavation, backfill and site work to install a 10-inch poly pipe along NW 10th St from W Hickman Rd to NW Meredith Drive and along Meredith Drive from NW 10th St to NE Alice’s Rd. Work tasks include pipe installation, valve installation, regulator station installation, tie-ins, purging and abandonment, surface restoration and miscellaneous associated work including cleanup. The City received bids on August 3, 2021 with six (6) contractors submitting bids. Meade, Inc. of Willowbrook, IL, submitted the low bid in the amount of $1,053,750.00 which is approximately 68% over the engineer’s estimate of $624,600.00. In comparing the contractor’s bid items to the engineer’s estimate several pay items were significantly higher. Bids were discussed with the contractor and they are willing to work with the City to reduce the cost on a couple of bid items. This will be realized through a change order during the project. The total project cost is expected to be approximately 11% higher than the estimated amount included for this project in the capital improvement budget. Material and labor costs have seen large increases due to the COVID-19 pandemic and material manufacturer shutdowns experienced over the past year. This project is included in the FY 2022-2026 Capital Improvements Plan approved by City Council in March 2021 with a total project budget of $1,700,000. This project has a substantial completion date of November 24, 2021. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: $1,053,750.00 STAFF REVIEW AND COMMENT: Staff recommends awarding the project to Meade, Inc. in the amount of $1,053,750.00. While this amount is higher than the engineer’s estimate, the timeliness to complete this project this year is pertinent to the timely completion of sequential projects (e.g. Public Safety Building, TBS No. 1 removal) anticipated in the next couple years. RECOMMENDATION: Approve the resolution. ATTACHMENTS: I. Letter of Recommendation II. Bid Tab III. Resolution H2B PREPARED BY:Beth Richardson REVIEWED BY: Rudy Koester RK RESOLUTION 2021- RESOLUTION MAKING AWARD OF CONSTRUCTION CONTRACT FOR THE 10-INCH PROJECT MEREDITH/NW 10TH ST. - 2021 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 10-inch Project Meredith/NW 10th St. - 2021, described in the plans and specifications heretofore adopted by this Council on August 16, 2021, be and is hereby accepted, the same being the lowest responsive, responsible bid received for such work, as follows: Contractor: Meade, Inc., of Willowbrook, IL Amount of bid: $1,053,750.00 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 16th day of August, 2021. 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 6, 2021 Mr. Tim Royer, Assistant Dir. of Public Works City of Waukee 805 University Avenue Waukee, IA 50263 troyer@waukee.org RE: 10-inch Project Meredith/10th St. – Gas Distribution Main – Bid Recommendation Dear Mr. Royer, USDI has tabulated the bids from six bidders for the above referenced project. Please refer to the attached certified bid tabulation. The apparent low bidder is Meade, Inc. of Westbrook, IL. Their bid amount was $1,053,750.00 which is much higher than 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 several pay items were significantly higher. I have discussed the bid with them and they are willing to work with the City to reduce the cost on a couple of bid items. This will be realized through a change order during the project. The total project cost is expected to be approximately 11% higher than the estimated amount included for this project in the capital improvement budget. Material costs have seen large increases due to the pandemic and shutdown experienced last year. USDI does have previous experience working with Meade on other natural gas pipeline projects. They are a qualified and experienced contractor. They also have experience working in the area for Mid- American. Their schedule has construction starting on September 7th and completing on November 24th. At this time, I recommended awarding the contract to Meade, Inc. Please feel free to contact me anytime if you have any questions or require additional information. Respectfully Submitted, Anthony Everette, P.E. Senior Vice-President USDI Attach: As noted