1c-2. Minnewashta Watermain BidMEMORANDUM
CITYOF
C HASSEN
7700 Market Boulevard
PO Box 147
Ohanhassen MN 55317
Administration
Pr'one: 952 2271100
Fax: 952 2271110
TO:
FROM:
DATE:
SUB J:
Todd Gerhardt, City Manager
Matt Saam, Acting City Engineer/Public Works Directorf/g'fl,
October 30, 2003
Award of Bids for Minnewashta Watennain Loop-Project No. 02-08
REQUEST
Staff requests the City Council approve a construction contract in the amount of $407,319.80 to
Minger Construction, Inc. for work to be performed on the above-referenced project.
BACKGROUND
Building Inspections
Phone: 952 2271180
Fax: 952227 1190
Engineering
Phone: 9522271160
Fax~ 9522271170
Finance
P~one: 9522271140
Fax: 9522271110
Park & Recreation
Phene: 952227 1120
Fax: 952 2271110
Recreation Center
2310 CouJter BouJevard
PI?or, e: 9522271400
Fax: 9522271404
Planning &
Natural Resources
Phone: 9522271130
Fax 9522271110
Public Works
1591 Park I~oad
Phone: 952.2271300
Fax: 9522271310
On May 13, 2002, the City Council approved a work order with Black & Veatch for the design of
the Minnewashta Watennain Loop.
On Angust 11, 2003, the City Council approved plans and specifications and authorized the
advertisement of bids on the project.
DISCUSSION
Bids for the project were opened on Thursday, October 9, 2003. Six total bids were submitted.
The three lowest bids are shown below along with the engineer s estimate.
Eng neer s Estimate $644~820i00
Minger Construction, Inc. $407,319.80
Northdale Construction $463,532.19
S. M. Hentges & Sons, Inc. $501,913.45
The low bid by Minger Construction, Inc. is 37% less than the engineer's estimate. It should be
noted that the City has received a letter of contention from S. M. Hentges against awarding this
project to Minger Construction. S. M. Hentges is contesting the award based on a missing list of
subcontractors sheet that was not included with Minger Construction's sealed bid at the opening.
Staffhas discussed this issue with the City Attorney. It is the City Attorney's opinion that the
missing piece of information did not give the low bidder (Minger) an advantage over the other
bidders at the time of the bid opening. Staff agrees and therefore is moving forward with the
recommended award to Minger Construction.
Senior Center
Phone: 952227.1125
Fax: 9522271110
Web Site
ww, w ci chanhassen mn.as
RECOMMENDATION (Simple Maiority Vote Required)
Staff recommends that the City Council adopt the following motion:
"The Chanhassen City Council awards a construction contract for the Minnewashta Watennain
Loop to Minger Construction, Inc. in the amount of $407,319.80."
Attachment: Bid recommendation letter from Black & Veatch.
c: Bill Bement, Engineering Technician IV
Mak Sweidan, Engineer
Chad Hill, Black & Veatch
Heath Picken, Black & Veatch
Pat Minger, Minger Construction, Inc.
Kelley Janes, Utility Superintendent
g:\eng',public~02-08~approve construction contract.doc
The City ol Chanhassen · A growing commuoity with clean lakes, quality schools, a charlqlir/g downtown thrivd~¢ bL~saesses, winding trals aarqd tzeautilji parks ,~ qreat ;,,a~" '~ ,~' ,,',,k, a~,; ,, >,
BLACK & VEATCH
Parkdale Plaza
1660 Saulh Hwy 100
SuRe 300
St. Louis Park, MN 55416 USA
Tel: (952) 545-6695
Fax: (952) 5454590
City of Chanhassen
Lake Minnewashta Service Area
Intcrconnection Pipeline
Mr. Matt Saam
City of Chanhassen
Assistant City Engineer
7700 Market Blvd.
P.O. Box 147
Chanhassen, MN 55317
Black & Veatch Corporation
B&V Project 132341.300
B&V File B-1.1
October 30, 2003
Dear Matt:
As you know, the bid opening for the Lake Minnewashta Service Area Interconnection Pipeline
project was held on Thursday, October 9, 2003. Six bids were received as follows:
Bid Amount
Bidder Alternative A Altemative B
Minger Construction, Inc.
Northdale Construction
S.M. Hentges & Sons, Inc.
F.F. Jedlicki, Inc.
GM Contracting, Inc.
MirmComm Utility Construction
$407,319.80 No Bid
$528,821.40 $463,532.19
$501,913.45 $607,602.90
$517,813.00 $583,914.00
No Bid $626,312.18
$626,738.00 $627,358.00
The apparent low bidder was Minger Construction, Inc. with a bid of $407,319.80. The low bid
is significantly lower than the Engineer's opinion of cost of $805,000 which was previously
transmitted to the City.
Significant to the bids received are the following:
· Six bids were received with all bids lower than the Engineer's opinion of cost, which is
reflective of a very competitive bidding environment.
· The low bidder, Minger Construction, Inc. is a local contractor whom has successfully
completed several area projects.
building a world ef difference,'
Mr. Matt Saam
Page 2
B&V Project 132341.300
October 30, 2003
The low bidder did not submit the List of Subcontractors or Form of Non-Collusion
Affidavit. However, as indicated in paragraph 18.01 of the Instruction to Bidders the
Owner reserves the right to waive all informalities not involving price, time, or changcs
in the Work. Minger Construction can submit these forms before the agreement is
signed.
Based on the competitive bids received and Minger Construction's success on other local
projects we recommend the award of the Lake Minnewashta Service Area Interconnection
Pipeline project to Minger Construction, Inc. for the total bid amount of $407,319.80.
If you have any questions or comments, please contact us.
Very truly yours,
BLACK & VEATCH CORPORATION
Chad Hill
Project Manager