Agenda - Public Works Committee - 01/18/2022

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Public Works Committee 5. 6. Meeting Date: 01 / 18/2022 By: Bruce Westby, Engineering/Public Works Title: Consider Recommendation for City Council to Reject Bids for Water Treatment Plant Trunk Watermain Improvements, Improvement Project #21-08 Purpose/Background: Purpose: The purpose of this case is to consider a recommendation for the City Council to reject bids for the Water Treatment Plant Trunk Watermain Improvements, Improvement Project #21-08. Background: On March 9, 2021, the Ramsey City Council adopted Resolution #21-061 awarding a contract to SEH Inc. to prepare plans and specifications for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements. A copy of this resolution is attached. Plans were prepared with a base bid and an alternate bid. • Base bid — Specifies a combination of construction methods whereby open trenching of plastic (PVC) watermain is specified along the south side of Bunker Lake Boulevard and the north side of 143rd Avenue, while directional drilling of plastic (PVC) watermain is specified at intersections, through Cottonwood Park, under Sunwood Drive, and under the stormwater pond between Hoya and Anderson Dahlen north of 143rd Avenue. • Alternate bid —Specifies directional drilling of plastic (PVC) watermain across as much of the project area as feasible. Copies of the title sheet and general layout are attached for reference and the general layout shows all locations of the proposed open trenching and direction drilling for the base bid. Bids were publicly opened on Tuesday, January 4, 2022, at 10:00 a.m. A total of two (2) bids were received. Bids ranged from a high of $8,391,994.66 to a low of $6,737,287.45 across two bid schedules. Schedule 1 reflected the base bid (combination of open trench and horizontal directional drilling (HDD) installation methods), while Schedule 2 reflected the alternate bid (only HDD installation method). Below is a table showing the two bids received. Contractor Total Schedule 1 Bid Total Schedule 2 Bid Park Construction Co. $6,737,287.45 Forest Lake Contracting, Inc. $7,652,529.55 Engineer's Estimate $4,875,068.50 $7,059,102.16 $8,391,994.66 $4, 916,194.50 The low bid received is reflected in the Schedule 1 bid and was submitted by Park Construction Company, of Minneapolis, MN in the amount of $6,737,287.45. This bid was approximately 38% higher than the Engineer's Estimate of $4,875,068.50 due mainly to highly inflated PVC pipe costs, which is reflected in both bids. Timeframe: Staff anticipates 15 minutes will be required to present and discuss this case. Observations/Alternatives: