Minutes - Council - 10/09/2001 - Laserfiche WebLink

Home

bid as part of this process. The alternate identified as Alternate Bid B on the resolution is for the addition of face brick. The face brick is typical to the City's other pumphouses and gives the building a more decorative look. Due to the pumphouse being located in the possible Town Center area, staff recommended leaving the alternate out of the bid and giving the pumphouse a more generic look until the architecture of the area is defined more clearly. There is a benefit to installing the generator during the construction of the wellhouse. With the construction of wellhouse there is also a Supervisor Controls and Date Acquisition (SCADA) system that will be installed. SCADA is a system that transfers information to parts that are integral to the operation of the system. If a power outage is encountered, the SCADA system tells the generator to turn on thereby ensuring continuous operation and water to the residents of Ramsey. The installation of the generator under the same Contract ensures that all facets of the system work prior to release of final payment. As a part of this bidding process, staff gave the Contractors the option of supplying an alternate to the SCADA that was specified. The deducts that were offered ranged from $20,000 to $40,000 with Magney supplying a deduct of $40,000 for using Automatic Systems instead of the SCADA system that was specified. City Attorney Goodrich stated that the City did award a contract to Infinity Builders per the 2000 bid process. Infinity at that time was the lowest bidder. Because of the year plus delay in giving a Notice to Proceed to Infinity caused by the City's inability to obtain access to the site, City staff felt it prudent to rebid the project in 2001. City staff now recommends terminating the contract with Infinity. Infinity is willing to do this in return for a $29,000 payment representing its out-of-pocket expenses and some lost profit as a result of its not performing the contract. The delay in the Notice to Proceed and the City's rebidding has angered both Infinity and the 2001 bidders, each complaining that they are not being treated fairly and threatening to sue the City for various reasons. Infinity is entitled to increase the original contract price because of the delay. Staff has carefully analyzed the "bottom line" cost of either accepting the lowest responsible 2001 bid and settling with Infinity or rejecting all of the 2001 bids and performing under the Infinity contract. Staff concluded that the best interest of the City would to be to accept the lowest 2001 bid and settle with Infinity and terminate its contract. The recommendation was made with the following factors in mind: 1) Threat of suit from the 2001 bidders. While it appears they have no cause of action, the defense costs could be substantial. 2) The relationship with Infinity and the City at this time could be better and this could make for a more difficult construction project. 3) Most importantly, awarding the contract to the lowest 2001 bidder and settling with Infinity will cost the City less than pursuing the contract with Infinity. Staff recommended awarding the contract including installation of a generator (Alternate Bid A) and construction of Pumphouse No. 3 to the lowest responsible bidder, Magney Construction, Inc., in the amount of $495,000. Councilmember Kurak inquired if Infinity agreed to the $29,000 and if that amount was their true dollar loss. City Council/October 9, 2001 Page 7 of 24