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Northdale Construction Co., Inc. $61671,413.99 $6,671,414.00
<br /> Park Construction Company $71106,594.45 $7,1061594.46
<br /> Geislinger& Sons $71230,597.00 $7,264,597.00
<br /> S.M. Hentges & Sons, Inc. $7,357,844.80 $7,357,845.80
<br /> RL Larson Excavating, Inc. $71613,079.74 $7,613,079.75
<br /> Meyer Contracting Inc. $71929,324.30 $7,929,324.31
<br /> Minger Construction Co., Inc. $81768,848.98 $8,768,848.98
<br /> Engineer's Estimate $7,519,839.00 $7,519,839.00
<br /> Northdale Construction Co., Inc. submitted the lowest responsible bid for both the base and the alternate bid for
<br /> construction of said improvements in accordance with the approved plans and specifications and advertisements
<br /> for bids.
<br /> Material shortages have eased recently but the awarded contractor will use the Winter months to order their
<br /> materials so the materials are available when the contractor is ready to start work in the Spring of 2024.
<br /> Alternatives:
<br /> Alternative#1 —Motion to adopt Resolution#23-305 accepting bids and awarding a contract for Improvement
<br /> Project#21-08, Water Treatment Plant Trunk Watermain Improvements, to Northdale Construction Company for
<br /> the alternate bid in the amount of$6,671,414.
<br /> Alternative#2—Motion of other.
<br /> Funding Source:
<br /> The engineer's construction cost estimate for the base and alternate bids is $7,519,839.00. A 10% contingency
<br /> was added to estimated unit prices to address changes that may result during construction.
<br /> The alternate bid allows for the use of prevailing wages by the primary contractor and their subcontractors in the
<br /> event State grant funding can be utilized for construction of this project.
<br /> The majority of funding for this project is proposed to come from water enterprise funds. For almost two
<br /> decades, municipal water users have been contributing to a future water treatment plant,which includes off-site
<br /> trunk watermain improvements required to provide the plant with raw water, and to transport treated(finished)
<br /> water out to the distribution mains.
<br /> Additional funding for this project could potentially come from State bonding, as well as from a sales and use tax
<br /> exemption for all project related materials. In 2023, legislative requests were drafted and presented as House File
<br /> 1177 and Senate File 1197 requesting $10 million in State Bonding, and requesting a sales and use tax exemption
<br /> for the Water Treatment Plant project. This year the City received$3.2 million in State Bond Funding and the
<br /> sales and use tax exemption was approved. Unfortunately,the legislative request language was specific to the
<br /> Water Treatment Plant and did not encompass the entirety of the project, which includes the necessary trunk
<br /> watermain improvements. The City has since been notified that utilizing the awarded bond funding would require
<br /> all work to be completed using prevailing wages. Staff have therefore been working with Magney Construction,
<br /> the WTP contractor,to determine construction cost impacts related to utilizing prevailing wages for the WTP
<br /> project. Staff are of the understanding that the prevailing wage cost impact on the WTP project will be
<br /> significantly less than the awarded$3.2 million,but this will be verified before awarded bond funds are utilized.
<br /> Staff plans to submit a 2024 legislative request for the remaining $6.8 million from our 2023 $10 million request,
<br /> which the City previously received a verbal commitment on. The City also plans to submit a request to amend the
<br /> language to allow both the Bond proceeds and the sales and use tax exemption to apply to the trunk watermain
<br /> improvements project also.
<br /> Recommendation:
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