E-2. 2016 Sanitary Sewer (I/I) Project: Reject Bids; Authorize Re-Advertisement for Bids CITY OF MEMORANDUM
CHANHASSEN
TO: Todd Gerhardt, City Manager
7700 Market Boulevard
PO Box 147
Chanhassen,MN 55317 FROM: Paul Oehme, Public Works Director/City Engineer \k`,-
DATE: November 14, 2016
Administration
Phone:952.227.1100
Fax:952.227.1110 SUBJ: 2016 Sanitary Sewer(I/I) Project No. 16-02:
Reject Bids and Authorize Re-Advertisement
Building Inspections
Phone:952.227.1180
Fax:952.227.1190
PROPOSED MOTION
Engineering
Phone:952.227.1160 "The City Council rejects bids and allows staff to re-advertise for new bids."
Fax:952.227.1170
Finance City Council approval requires a simple majority vote of the City Council
Phone:952.227.1140 present.
Fax:952.227.1110
Park&Recreation DISCUSSION
Phone:952.227.1120
Fax:952.227.1110 The Metropolitan Council monitors the flow of sanitary sewer from each city to
determine the amount of Infiltration and Inflow(I/I) to their treatment plant. If a
Recreation Center city exceeds the allowance set by the Metropolitan Council, the City is surcharged
2310 Coulter Boulevard a fee based on the amount of flow above the allowed amount.
Phone:952.227.1400
Fax:952.227.1404
The City of Chanhassen has chosen to participate in the Metropolitan Council's
Planning& Ongoing I/I Reduction Program. The program's aim is to encourage communities
Natural Resources to rehabilitate their sanitary sewer systems and reduce I/I on a local level.
Phone:952.227.1130 Through this program, the City may forgo the surcharge fee so long as they are
Fax:952.227.1110
investing the funds in I/I prevention in the sanitary sewer system.
Public Works
7901 Park Place The 2016 Sanitary Sewer(I/I) Project will help prevent I/I from entering the
Phone:952.227.1300 sanitary sewer system. The project consists of lining the aging vitrified clay pipe,
Fax:952.227.1310 grouting leaking pipe joints and manhole sections, and spot repairing damaged
pipe cured-in-place pipe systems.
Senior Center
Phone:952.227.1125
Fax:952.227.1110 The areas being addressed are areas that are part of street projects to be completed
in 2017 as well as the Lift Station#2 sewershed.
Website
www.ci.chanhassen.mn.us
\\cfs5\cfs5\shared data\eng\public\ 2016 projects\16-02 i&i project\communication\161114_cc_award construction
contract-reject bids.doc
Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow
Paul Oehme
Sanitary Sewer(I/I)Project
November 14,2016
Page 2
BIDS
Bids for the project were opened on Thursday, October 6, 2016 at 2:00 p.m. Four total bids were
submitted from Visi-Sewer, Insituform Tech USA, LLC, Veit& Company, Inc. and Michels Pipe
Services. The bids came in higher then expected.
The project involves six separate areas in town with manholes located both in the street and in
side and backyard easements. The contractors have indicated that the multiple project sites and
backyard easement work increased the bids. Staff is requesting Council reject these bids and
allow staff the flexibility to revise the project scope and re-advertise this project for new bids.
Funding for the project is proposed from the Sanitary Sewer Utility Fund. The adjacent property
owners are not proposed to be assessed for the project.
Attachment: 1. CIP Pages
2. Resolution
c: Stephanie Smith, Project Engineer
Kevin Crooks, Utility Superintendent
g:\eng\public\_2016 projects\16-02 i&i project\communication\161114_cc_award construction contract-reject bids.doc
Paul Oehme
Sanitary Sewer(I/I)Project
November 14,2016
Page 2
BIDS
Bids for the project were opened on Thursday, October 6, 2016 at 2:00 p.m. Four total bids were
submitted from Visi-Sewer, Insituform Tech USA, LLC, Veit& Company, Inc. and Michels Pipe
Services. The bids came in higher then expected.
The project involves six separate areas in town with manholes located both in the street and in
side and backyard easements. The contractors have indicated that the multiple project sites and
backyard easement work increased the bids. Staff is requesting Council reject these bids and
allow staff the flexibility to revise the project scope and re-advertise this project for new bids.
Funding for the project is proposed from the Sanitary Sewer Utility Fund. The adjacent property
owners are not proposed to be assessed for the project.
Attachment: 1. CIP Page
2. Resolution
c: Stephanie Smith, Project Engineer
Kevin Crooks, Utility Superintendent
g:\eng\public\_2016 projects\16-02 i&i project\communication\161114_cc_award construction contract-reject bids.doc
Capital Improvement Program 2016 thru 2020
Department Sanitary Sewer Improvements
City of Chanhassen, MN Contact Paul Oehme
Project a SS-012 Type Improvement
Useful Life Unassigned
Project Name Inflow and Infiltration Abatement
Category Utilities
Account#1 701-70xx-4751 Account#3 Priority n/a
Account#2 Account N4
Description Total Project Cost: 51,900,000
This annual project includes televising,repairs and rehabilitation of existing sanitary sewer. The program also detects and eliminates points of
entry of ground water and surface water into the City sanitary sewer system. Projects have been identified from the 2006 Inflow and Infiltration
Report and aspects of the program are included in the annual street project. The projects were reviewed by Metropolitan Council and approved in
lieu of surcharge fees.
t Justification
City staff has identified numerous older sewer lines that are in need of repair. The City of Chanhassen pays the Metropolitan Council for sewage
treatment. Those payments are based on the amount of flow generated by the City of Chanhassen. Surface water and ground water that makes its
way into the system either through breaks,displaced joints,manhole covers,or private connections to the system increase the amount charged to
the City for sewage disposal and increasing the load on the City's lift stations.
Prior Expenditures 2016 2017 2018 2019 2020 Total
9007000 Maintenance 200.000 200,000 200,000 200,000 200,000 1,000,000
Total Total 200,000 200,000 200,000 200,000 200,000 1,000,000
Prior Funding Sources 2016 2017 2018 2019 2020 Total
900,000) Sewer Utility Fund 200,000 200,000 200,000 200,000 200,000 1,000,000
Total Total 200,000 200,000 200,000 200,000 200,000 1,000,000
Budget Impact/Other
The efforts may decrease operational costs,MCES fees and emergency call outs. It is also the City's intent to use connection charges to help fund
for those costs. It is the City's belief that as new customers come on line those connection fees should help fund future infiltration problems.
81
Capital Improvement Program 2016 thru 2020 Department Sanitary Sewer Improvements
City of Chanhassen, MN Contact Paul Oehme
Project# SS-014 Type Improvement
Useful Life Unassigned
Project Name Sanitary Sewer Replacement Category Utilities
Account#1 701.7025-4751 Accoramt#3 Priority n/a
Account#2 Account M4
Description Total Project Cost: 51,890,000
Replacement or rehabilitation of existing sanitary sewer lines in conjunction with the reconstruction of the City street.
Justification I
The City considers the condition of the existing utilities in the process to select streets for rehabilitation in an effort to realize cost savings by
consolidating these projects.
Prior Expenditures 2016 2017 2018 2019 2020 Total
1,000,0000 Construction 300,000 40,000 250,000 50,000 250,000 890,000
Total Total 300,000 40,000 250,000 50,000 250,000 890,000
Prior Funding Sources 2016 2017 2018 2019 2020 Total
1 1,000,0001 Sewer Utility Fund 300,000 40,000 250,000 50,000 250,000 890,000
Total Total 300,000 40,000 250,000 50,000 250,000 000,000
Budget Impact/Other
This project will decrease maintenance costs.
82
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES,MINNESOTA
DATE: November 14,2016 RESOLUTION NO: 2016-XX
MOTION BY: SECONDED BY:
A RESOLUTION REJECTING BIDS AND AUTHORIZE RE-ADVERTISING
FOR BIDS FOR THE 2016 SANITARY SEWER TELEVISING (I/I)PROJECT NO. 16-02
WHEREAS,bids were received, opened and tabulated for the 2016 Sanitary Sewer Televising
(I/I)Project No. 16-02; and
WHEREAS,the project involves six separate areas in town with manholes located both in the
streets and in the side-and back-yard easements; and
WHEREAS, contractors have indicated that due to the locations of the manholes is the
reason for the high bid numbers;
AND WHEREAS, staff is requesting the flexibility to revise the project and scope and re-
advertise for new bids.
NOW THEREFORE,BE IT RESOLVED by the Chanhassen City Council:
1. The mayor and clerk are hereby authorized and directed to reject bids received on October 6,
2016 and re-advertise for the 2016 Sanitary Sewer Televising(I/I)Project No. 16-02.
Passed and adopted by the Chanhassen City Council this 14th day of November,2016.
ATTEST:
Todd Gerhardt, City Manager Denny Laufenburger,Mayor
YES NO ABSENT