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D-6. W 78th St Water Main Extension: Reject Bids and Re-Advertise in 20160 -4 CITY OF MEMORANDUM CUMNSEN TO: Todd Gerhardt, City Manager 7700 Market Boulevard FROM: Paul Oehme, Public Works Director /City Engineer PO Box 147 Chanhassen, MN 55317 DATE: September 28, 2015 g� . i Administration SUBJ: W. 781h Street Water Main Extension Project No. 14 -07: Phone: 952.227.1100 Fax: 952.227.1110 Reject Bids and Authorize Re- Advertisement in 2016 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us PROPOSED MOTION "The City Council rejects bids and allows staff to re- advertise for new bids in 2016." City Council approval requires a simple majority vote of the City Council present. BACKGROUND This project was identified in the 2015 Capital Improvement Plan as "78th Street Watermain Loop Improvements, W- 055." This project consists of the construction of approximately 2,100 LF of 10" HDPE (High Density Poly Ethylene) water main along W. 78th Street from Beacon Court to Trunk Highway 41. The 10" HDPE has an internal pipe size equivalent to 8" DIP (ductile iron pipe). This project will provide a second water connection to and loop the Tanadoona Drive /Dogwood Road/Beacon Court area. PROJECT PURPOSE AND NEED The Arbors development is fully built out and is at the end of a 5,850' long water service that is not looped in the City's system. During high flow events, such as hydrant flushing, this area has experienced large water hammers that can cause hot water valves to open, leading to damage inside the properties. Also water quality is a concern due to the long deadend line. This project will provide a secondary connection for the area into the City's water system, creating a loop. This loop connection will provide several benefits: 1. Eliminate the water hammer problem by equalizing the water flow through the loop. g:\eng \public \_2014 projects \14 -07 w 78th st watermain ext \communication \150928_cc_ award construction contract - reject bi do �haAassen is a Community for Life - Providing for Today and Planning for Tomorrow Paul Oehme W 781 Street Water Main Extension September 28, 2015 Page 2 2. Provide a redundant water source for the area. This will allow the City to better maintain properties' water service during maintenance operations or emergency water main breaks. Improve water circulation in this area, which will improve water quality. BIDS Bids for the project were opened on Thursday, September 17, 2015 at 2:00 p.m. Three total bids were submitted. The bids received are as follows: Bidder Total Bid GM Contracting, Inc. $213,754.29 G.F. Jedlicki, Inc. $256,380.00 RL Larson Excavating, Inc. $338,440.00 The project crosses TH 41 and the MnDOT permit requirements added to the cost of the project that was not anticipated when the project budget was estimated in 2014. Also, additional hydrants and restoration is needed due to a revised alignment then originally anticipated. Staff is requesting Council reject these bids and allow staff the flexibility to re- advertise for bids next year. Funding for the project is proposed from the water utility fund. The property owners along W. 78th Street are not proposed to be assessed for the project. Staff designed, bid the project and is planning to complete the construction administration and inspection in -house saving the City about $45,000 in consultant fees. Attachment: 1. CIP Page 2. Resolution 3. Project Area Map c: Stephanie Smith, Project Engineer Kevin Crooks, Utility Superintendent gAeng \pub1ic \_2014 projects \14 -07 w 78th st watermain ext \communication \150928_cc_award construction contract - reject bids.doc Projects By Funding Source City of Chanhassen, MN 2015 thru 2019 Project # W -055 Project Name 78th Street Watermain Loop Improvements Account #1 700 -7025 Account #2 project will extend an 8" Account #3 Account #4 Department Water System Improvements Contact Paul Oehme Type Improvement Useful Life Category Utilities Priority n/a Total Project Cost: 5150,000 on 78th Street from TH 41 west to the Arbor's development. Arbor's development is fully built out and water for this area is served by a trunk watermain on Tanadoona Drive. This development has a service area which is currently not looped. During high flow events such as hydrant flushing this area can experience water hammers that can I e hot water heater valves to open. This can lead to damage in the properties. To eliminate the water hammer problem the best solution is to the watermain to TH 41. Expenditures 2015 2016 2017 2018 2019 Total Construction 150,000 150,000 Total 150,000 150,000 Funding Sources 2015 2016 2017 2018 2019 Total Water Utility Fund 150,000 tou,uuu Total 150,000 150,000 116 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: September 28, 2015 RESOLUTION NO: 2015 -XX MOTION BY: SECONDED BY: A RESOLUTION REJECTING BIDS AND RE- ADVERTISING IN 2016 FOR THE W. 78TH STREET WATER MAIN EXTENSION PROJECT NO. 14 -07 WHEREAS, bids were received, opened and tabulated for the W. 781h Street Water Main Extension Project. The following bids were received: Bidder Total Bid GM Contracting, Inc. $213,754.29 G.F. Jedlicki, Inc. $256,380.00 RL Larson Excavating, Inc. $338,440.00 AND WHEREAS, permit requirements added to the cost of the project were not anticipated when the project budget was estimated in 2014. Also, additional hydrants and restoration is needed due to a revised alignment then originally anticipated. NOW THEREFORE, BE IT RESOLVED by the Chanhassen City Council: The mayor and clerk are hereby authorized and directed to reject bids received on September 17, 2015 and re- advertise in 2016 for the W. 781h Street Water Main Extension Project No. 14 -07. Passed and adopted by the Chanhassen City Council this 28th day of September, 2015. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT