Agenda - Public Works Committee - 04/18/2023

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Project #21-09, Centralized Water Treatment Plans, to Magney Construction, Inc. in the amount of $31,478,500. Chairperson Riley referenced the $50,000 savings for bid alternate 1, which is .16 percent of the project cost. He noted that the delay would cause them to miss the peak season which also allows the new equipment to come on line in a less taxing season. He asked if there would be enough value to the City to account for the $50,000 savings noting that is relatively small in terms of the overall project cost. City Engineer/Public Works Director Westby commented that the longer a project goes on, the more inspections there would be and stated that many of the inspections cannot be provided by in- house staff He stated that he is working to determine what the additional cost for inspections would be if bid alternate 1 was approved. Chairperson Riley stated that if the savings were larger, he may agree with the delay. Councilmember Woestehoff stated that he agrees that the $50,000 is not enough to justify the additional four months. He stated that perhaps an incentive is offered if the desired completion date is reached. Councilmember Musgrove commented that the low bid seems to be very tight compared to the estimate and the other bids. City Engineer/Public Works Director Westby commented that he is not privy as to how the numbers are determined by the bidder. He noted that sometimes a bidder may have materials available on hand that were already purchased but not used. He stated that the bidder could really want the project and want to ensure work for their crews. Chairperson Riley asked if the bid has been reviewed to ensure it is responsible. City Engineer/Public Works Director Westby confirmed that the bid has been reviewed and determined to be responsible. He stated that the committee should make a recommendation on whether or not to accept the bid. He stated that staff will bring back additional information on the bid alternate for review when it goes forward to the City Council. He noted that the recommendation of staff at that time may be to not accept the bid alternate. Chairperson Riley commented that he would tend not to accept the bid alternate. Motion by Councilmember Woestehoff, seconded by Councilmember Musgrove, to recommend City Council acceptance of bids and award of construction contract for Improvement Project #21- 09, Centralized Water Treatment Plant, to Magney Construction, Inc., rejecting bid alternate #1. Motion carried. Voting Yes: Chairperson Riley, Councilmembers Woestehoff and Musgrove. Voting No: None. 6. COMMITTEE / STAFF INPUT Public Works Committee / March 21, 2023 Page 5 of 6