1c-1 Well No. 9 Project 03-02CITYOF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen MN 55317
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MEMORANDUM
TO: Paul Oehme, City Engineer/Dir. of Public Works
FROM:
DATE:
Matt Saam, Assistant City Engineer /~
May 5, 2004 Sb~('
SUB J:
Approve Construction Contracts for Well No. 9
Project No. 03-02
REQUEST (Simple Majority Vote Required)
Staff requests the City Council approve construction contracts with Mark J. Traut Wells
in the amount of $521,330 and with Kusske Construction in the amount of $288,351.25
for work to be performed on the above-referenced project.
BACKGROUND
On July 14, 2003, the City Council approved a construction contract with Keys Well
Drilling for the Well No. 9 test well.
On March 22, 2004, the City Council approved plans and specifications and authorized
the advertisement of bids on the project.
On April 26, 2004, the City Council authorized advertisement for bids for SCADA
improvements, Phase I.
DISCUSSION
For bidding purposes, this project was separated into two separate parts: 1) the well
drilling, and 2) the water transmission main.
Well Drilling
Bids for this portion of the project were opened on Thursday, April 22, 2004. Two bids
were submitted. The bids are shown below along with the engineer's estimate.
Bid Alternate
Base Bid (Ah. SCADA Supplier) Total
Engineer's Estimate $481,460.00 -- $481,460.00
Mark J. Traut Wells $521,330.00 -$43,800.00 $477,530.00
E.H. Rennet & Sons $523,401.00 -$39,700.00 $483,701.00
The low bid by Mark J. Traut Wells represents an 8.3% increase over the engineer's
estimate. This increase can be attributed to only two contractors bidding the project and
the cun-ent work load of the contractors.
The City of Chanhassen · A growing community with clean lakes, quality schools a charming do~.ntovm thriving busi lesses windi ~( trails arc~ beaL]t !~ [sarks ?,, irea', p,a,? 3 iv~ w,':r,~ and }!ay'
Paul Oehme
May 5, 2004
Page 2
The project was bid with an alternate to see the price difference between the approved
SCADA system and having another supplier provide the SCADA. While the low bidder
provided a price deduct of $43,800 for the alternate system, staff does not believe this
alternate should be accepted. The alternate supplier did not provide the additional
information regarding the alternate system as required by Section 16900, Part 1.5, Article
B of the Well No. 9 specification. Without this information, in regards to the type of
proposed system, pricing guarantees, and extended warranty, staff is concerned that the
City will not receive any better SCADA system then is in place now. Maintenance costs
for the current system have averaged $90,000 per year over the last four years. The
approved SCADA product is anticipated to eliminate the annual maintenance costs with
a ten-year warranty and free software upgrades for ten years.
Based on the bids received and the current construction market work load for well
drilling staff does not think rebidding the project will give the City any additional cost
savings.
Water Transmission Main
Bids for this portion of the project were also opened on Thursday, April 22, 2004. Two
total bids were submitted. The bids are shown below along with the engineer's estimate.
Bid Alternate
Base Bid (Bulk Watcr Station) Total
Engineer's Estimate $274,122.50 $30,000.00 $304,122.50
Kusske Construction $288,351.25 $48,500.00 $336,851.25
Minger Construction, Inc. $345,269.83 $35,000.00 $380,269.83
The low base bid by Kusske Construction represents a 5.2% increase over the engineer's
estimate. While this bid is higher than the engineer's estimate, when compared with the
estimated cost of building a new wellhouse (see attached estimate) at the Well 3 site, the
transmission main option saves the City approximately $118,000 (assuming 7% project
contingencies). In addition, with the installation of a transmission-only main (no service
connections), it is possible to connect both Wells 3 and 9 to a future water treatment
plant in the Galpin area.
When the bid alternate for the bulk water fill station is included with the base bid,
Kusske Construction's total bid increases to 10.8% more than the engineer's estimate. In
addition, with the bid alternate included, the project is then over the $900,000 budget
which was allocated in the 5-year CIP. For these reasons, staff is not recommending that
the bid alternate be included with this bid award. Staff will evaluate if some or all of the
work of installing the bulk water station can be done utilizing City staff.
Kusske Construction is a local contractor that has worked on other City projects in the
past. Their work and scheduling has been acceptable.
Paul Oehme
May 5, 2004
Page 3
RECOMMENDATION
Staff recommends that the City Council adopt the following motion:
"The Chanhassen City Council awards a construction contract for the drilling of Well No.
9 to Mark J. Traut Wells in the amount of $521,330.00 and awards a construction
contract for the water transmission main of Well No. 9 to Kusske Construction in the
amount of $288,351.25."
Attachment:
1. Bid recommendation letter from Marcus Thomas dated 4/22/04.
2. Bid recommendation letter from Jon Peterson dated 5/4/04.
3. Wellhouse Cost Estimate.
c~
Bill Bement, Engineering Technician IV
Marcus Thomas, Bolton & Menk
Jon Peterson, Bolton & Menk
Jason Kusske, Kusske Construction
Pat Minger, Minger Construction, Inc.
David Traut, Traut Wells
Roger Renner, E. H. Renner
Kelley Janes, Utility Superintendent
g:\cng\public\03-02\approve construction contract.doc
8,. MFk-'K,
Consulting Engineers & Surveyors
5] 5 East Highway ] 3-- Burnsville, MN 55337-6857
Phone ((252) 890-0509 · FAX (052) 890-8065
April 22, 2004
Mr. Paul Oehme, P.E.
City Engineer/Director of Public Works
City of Chanhassen
7700 Market Boulevard, P.O. Box 147
Chanhassen, MN 55317
CITY OF CHANHA~EN
7.004
~NGINEERING DF. PT.
Re:
Well No. 9 Distribution Main Improvements
City of Chanhassen, Minnesota
BMI Project No. T16.21057
Dear Mr. Oehme:
Bids on the above-referenced project were received and opened at Chanhassen City Hall at 10:30
a.m. on April 22, 2004. Enclosed is an Abstract of Bids for your information and review.
There were two bids offered on the project. The low bidder is Kusske Construction Company, Inc.,
from Chaska, MN. Kusske Construction Company has satisfactorily completed work of this nature
in the metro area. Additionally, their bid price is reasonable in comparison to the engineer's
estimate. Therefore, we would recommend award of the Well No. 9 Distribution Main
Improvements to the low bidder, Kusske Construction Company, Inc. If you have any questions or
would require any additional information, please call.
Sincerely,
BOLTON & MENK, INC.
Marcus A. Thomas, P.E.
Project Manager
Cc:
Matt Saam, P.E., City of Chanhassen
Kelley Janes, City of Chanhassen
MANKATO *
FAIRMONT * SLEEPY EYE * BURNSVILLE
AMES, IA
An Equal Opportunity Employer
· WILLMAR * CHASKA
May 4, 2004
Mr. Paul Oehme, P.E.
City Engineer/Director of Public Works
City of Chanhassen
7700 Market Boulevard, P.O. Box 147
Chanhassen, MN 55317
Re: Well No. 9 Construction
City of Chanhassen, Minnesota
BMI Project No. T16.21057
Dear Mr. Oehme:
Bids on the above-referenced project were received and opened at Chanhassen City Hall at 10:00 a.m. on
April 22, 2004. Enclosed is an Abstract of Bids for your information and review.
There were two bids offered on the project. The low bidder is Mark J. Traut Wells from Waite Park,
Minnesota. Mark J. Traut Wells has satisfactorily completed work of this nature in the metro area.
Included with this bid was an alternate controls bid. Neither of the bidders supplied the requested
background information regarding the alternate bid. Additionally, the control supplier and Mark J. Traut
Wells provided the following cost information regarding the Electrical/Controls bid item.
· Control Panel, SCADA at Well House #3 and Maintenance Building (SCADA Master) $132,555.00
· Electrical Installation, Tax, Mark-Up 57,425.00
Total $189,980.00
Overall, the bid price is reasonable in comparison to the engineer's estimate. Based on this information,
we would recommend award of the Well No. 9 Construction to the low bidder, Mark J. Traut Wells. If
you have any questions or would require any additional information, please call.
Sincerely,
BOLTON & MENK, INC.
Jon D. Peterson, P.E.
Project Engineer
CC:
Matt Saam, P.E., City of Chanhassen
Kelley Janes, City of Chanhassen
Marcus Thomas, P.E., Bolton & Menk, Inc.
C:\Documents and Settings\MattS.CHANHASSEN\Local Settings\Tcmporary Internet Files\OLKD\OehmeLT1 .doc
Chanhassen, MN
Well No. 9
Economic Analysis of Options- Sugar Bush Park Site
14-Nov-03
Option 1~ Construct a Jordan aquifer well on Sugar Bush Park Site with Wellhouse on site
Quantity Unit
Mobilization/Demobilization 1 LS
Drill and drive 30" Casing 200 LF
F&I 24" Casing inside 30"Casing 200 LF
Drive 24" Casing 110 LF
Drill 23" hole 210 LF
F&I 20 "casing 415 LF
Grout 50 CY
Well Development 120 HRS
Test Pump Mob/Demob 1 LS
Test Pumping 100 HRS
Bailing 800 CY
Water Analysis 1 LS
Video Tape 1 LS
Gamma Log 1 LS
F& I Pump 1 LS
Electrical/Controls 1 LS
Site Grading 1 LS
Common Borrow 50 CY
Topsoil Borrow 50 CY
Bituminous Driveway 250 SY
10" Watermain 120 LF
90 deg el Watermain Fittings 3 EA
Sod Type Lawn 800 SY
Silt Fence 260 LF
Well House Construction 1 LS
6' Arbovitae 6 EA
Subtotal
Project Contingencies (7%)
Engineering/Admin (30%)
Total Project Cost
Unit Price
$5O,OOO.OO
$18O.OO
$6O.OO
$120.00
$100.00
$65.OO
$35O.OO
$2OO.OO
$5,OOO.OO
$125.00
$75.OO
$1 5OO.OO
$2 5OO.OO
$2 500.00
$6O 000.00
$45 000.00
$2 000.00
;10.00
;15.00
;25.00
;3O.O0
$2,5OO.OO
$5.OO
$2.5O
$350,000.00
$5OO.OO
Amount
$5O,OOO.OO
$36,000.00
$12,O00.0O
$13,200.00
$21,000.00
$26,975.00
$17 500.00
$24 000.00
$5 000.00
$12 500.0O
$6O 000.00
$1 5O0.O0
$2 5O0.OO
$2 5O0.00
$60 000.00
$45 000.00
$2 000.00
$500.00
$750.00
$6,250.00
$3,600.00
$7,500.00
$4,000.00
$65O.OO
$35O,OOO.OO
$3,000.00
$767,925.O0
$53,754.75
$246,5O3.93
$1,068,183.68