Agenda - Council - 10/25/2022 - Laserfiche WebLink

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CC Regular Session 7. 1. Meeting Date: 10/25/2022 Information Title: Review Proposed Water Treatment Plant Project Costs and Bid Schedule Purpose/Background: Purpose: The purpose of this case is to; 1. Introduce Aaron Vollmer, new Water Treatment Plant project manager with Advanced Engineering and Environmental Services (AE2S). 2. Discuss estimated project costs and options to reduce project costs. 3. Discuss recommended bid schedules for the Water Treatment Plant and Trunk Watermain Improvements projects and what is driving the recommendations. 4. Receive Council feedback on project design, estimated costs, bid schedule, etc. Background: Feasibility Study Attached is a copy of the Feasibility Study dated March 4, 2021 for the proposed municipal water treatment plant improvements prepared by SEH, Inc. This study documents the City's existing water supply source, quality and quantity, existing water supply system infrastructure and proposed trunk watermain improvements, proposed water treatment process options and recommendations, water treatment plant site evaluations and recommendations, estimated costs, alternative funding sources, impacts to water rates, and a proposed project schedule. This study identified estimated project costs for both the necessary trunk watermain improvements and a centralized gravity filter water treatment plant at $28.67M. Water Treatment Plant Trunk Watermain Improvements On March 9, 2021, the City Council awarded a contract to SEH Inc. to prepare plans and specifications for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements. On October 26, 2021, the City Council approved plans and authorized bids using both a base bid and an alternate bid. The base bid specified a combination of open trenching and directional drilling the watermain, whereas the alternate bid specified directional drilling watermain across as much of the project area as feasible, and open trenching the remainder. As the time, the bidding environment for utility pipes was extremely volatile due to an overall shortage of pipe and appurtenant materials for various material types caused by supply chain disruptions due to extreme weather events, a shortage of drivers, shipping lane blockages, etc. These issues resulted in increased pipe costs and long delivery times between the time materials were being ordered and the time they were being delivered. On average, pipes were being delivered to project sites generally 3 to 6 months or more from the time they were ordered. Staff therefore recommended bidding this project as soon as possible, allowing an extended bidding window of 2 months, and allowing bidders as much time as possible to substantially complete the work in hopes of receiving the best bid prices possible. Construction costs for the trunk watermain improvements per SEH's Feasibility Study were estimated at $3,424,750. Construction cost estimates based on SEH's final plans and specifications were $4,875,068.50 for the base bid, and $4,916,194.50 for the alternate bid. The lowest base bid for construction costs was $6,737,287.45, and the lowest alternate bid received was $7,059,102.16. Due to the significant cost increase, the two bids received were rejected by the City Council on January 25, 2022, and Staff was directed to work with SEH to revise the approved plans to reduce costs and monitor the bidding environment to identify the most favorable time to re -bid the project.