6 Contract E Water Treatment Plant, 04-08
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone 9522271100
Fax 9522271110
Building Inspections
Phone 9522271180
Fax 952227.1190
Engineering
Phone 9522271160
Fax 9522271170
Finance
Phone 952227.1140
Fax 9522271110
Park & Recreation
Phone 9522271120
Fax 952227.1110
Recreation Center
2310 Coulter Boulevard
Phone 9522271400
Fax 952227.1404
Planning &
Natural Resources
Phone 9522271130
Fax 9522271110
Public Works
1591 Park Road
Phone 9522271300
Fax 9522271310
Senior Center
Phone 9522271125
Fax 9522271110
Web Site
www.cichanhassen.mn.us
t:>
-
MEMORANDUM
TO:
Todd Gerhardt, City Manager
FROM:
o
Paul Oehme, Dir. of Public Works/City Engineer~' .
~
DATE:
August 8, 2005
SUBJ:
A ward of Contract for East Water Treatment Plant
Project No. 04-08
REQUEST (Simple Majority Vote Required)
Staff requests the City Council consider approving a construction contract with
Madsen-Johnson Corporation, Inc. in the amount of $10,684,847.00.
BACKGROUND
At the January 10, 2005 work session, Council was updated on the 30% Design
Review.
At the February 28, 2005 work session, Council was updated on the 60% Design
Review.
On April 25, 2005, Council approved the preliminary plat for the East Water
Treatment Plant (WTP) and was updated on the 90% Design Review. Funding
and project cost estimates were also reviewed.
On May 24,2005, Council authorized advertisement for bid for the East Water
Treatment Plant.
DISCUSSION
Bids for the WTP were received on June 30, 2005 at 11 :00 a.m. The bids were
higher then the engineering estimate that was presented to Council on April 25,
2005. Since then, staff has been reviewing the bids and checking references for
the prime and subcontractors. Staff feels the bids received reflect a true picture of
what the market is for this work. The three qualified bids were only separated by
$64,323. This represents a .6% change in bid cost from the lowest bid total to the
highest. For this reason, staff does not feel bidding the project out again will give
the City any better bid results. Also, with the price of raw materials, fuel, and
labor continuing to increase, it would be unlikely that bids would be any better if
the project was bid out again in six months.
The City of Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautitul parks A great place to live. work. and play
Todd Gerhardt
August 8, 2005
Page 2
Staff has looked at other cost saving measures and other funding sources to help
pay for the project. Staff is proposing to use other enterprise funds to help pay for
some of the improvements. Breaking out the improvements into the appropriate
areas, the following funding sources and amounts are for consideration:
Storm Sewer Improvements (Storm Water Enterprise Fund)
Sanitary Sewer Improvements (Sanitary Sewer Enterprise Fund)
Total Other Funding Sources
$130,977
$24,776
$155,753
Funding for this project was proposed from utility bond sales and paid back with
hook up charges and water usage as identified in the 2004 Rate Study. The total
contract proposed to be awarded is $10,684,847. If the City uses the other
funding sources proposed, this will decrease the amount of bonding for the
contract to 10,529,094 which is $499,094 (5.0%) over the engineer's base bid
estimate. The amount over the engineer's estimate is recommended to be bonded.
Staff has a meeting scheduled for Thursday, August 4, 2005 to discuss the
impacts to the water rates study. Staff will have an updated rate study prepared
for the Council meeting.
Attachments
c: Jim Norton, SEH, Inc.
g:\eng\public\04-08 wtp\bkgd 080805 award contract.doc
_ 1
~
SEH
CITY OF CHANHA3,';t:N
lR1~~~G'W~ifi"
JUL 2 7 2005
ENGINEERING DEPT,
July 26, 2005
RE: City of Chanhassen
Bid Recommendation
City Project No. 04-08
SEH No. A-CHANH0502.00
Mr. Paul Oehme, PE
Director of Public Works/City Engineer
City of Chanhassen
7700 Market Boulevard PO Box 147
Chanhassen, Minnesota 55317-0147
Dear Mr. Oehme:
On Thursday, June 30, 2005, bids were received for the construction of the East Water Treatment Plant,
City Project No. 04-08. Four bids were opened and read aloud and recorded on a Bid's Received sheet
(see attached).
Shortly after opening the bids BOR-SON Construction Co. notified us that they were withdrawing their
bid since they made a clerical error and neglected to include any costs for the masonry work. See the
letter attached dated June 30, 2005.
The three remaining bids were responsive bids for the construction of the East Water Treatment Plant and
related facilities. Enclosed please find a copy of the Bid Tabulation.
Of the three bids, Madsen-Johnson Corporation had the low Total Bid Amount at $10,927,000. This Total
Bid Amount is made up of Schedule A - Base Bid, not including bid alternates, for the treatment plant and
Schedule B - Unit Price Bids for all related facilities shown as follows:
Item
Schedule A - Treatment Plant
Schedule B - Unit Price Bids for related facilities
Amount
$9,452,655.70
$1,474,344.30
Total Bid Amount
$10,927,000.00
The two bid alternates from Madsen-Johnson included on the Revised Bid Form, were Alternate No.1 for
extended construction completion dates and Alternate No.2 for a larger Retaining Wall Block shown as
follows:
Item
Alternate No.1 - Extended Completion Dates
Alternate No.2 - Retaining Wall Block
Amount
($208,000.00)
($34,153.00)
Total (Deduct)
($242,153.00)
Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul. MN 55110-5196
SEH is an equal opportunity employer I www.sehinc.com I 651.490.2000 I 800.325.2055 I 651.490.2150 fax
Mr. Paul Oehme, PE
July 26, 2005
Page 2
At meetings with City staff acceptance of the two bid alternates was agreed upon for a resulting deduct of
$242,153.00 from the Total Bid Amount. The resulting Total Net Bid Amount is $10,684,847.00 shown
as follows:
Item
Total Bid Amount (Schedules A and B)
Total Alternates (No.1 and No.2)
Amount
$10,927,000.00
($242,153.00)
Total Net Bid Amount
$10,684,847.00
All three bidders submitted prices on Schedules A and B and both Alternates. The other two bids were
from Knutson Construction Services, Inc. and Graham Penn-Co Construction, Inc. shown as follows:
Item
Total Bid Amount (Schedules A & B)
Alternate No.1 - Extended Completion Dates
Alternate No.2 - Retaining Wall Block
Knutson
$10,940,288.95
($180,000.00)
$42,816.00
Graham Penn-Co
$10,991,323.00
($303,107.00)
$34,986.00
Totals
$10,803,104.95
$10,723,202.00
The engineer's final estimate presented at the April 25, 2005 council meeting was $10,030,000 for the
Base Bid of Schedules A and B and ($286,000) for Alternates No. 1 and No.2. This resulted in a final
estimated construction cost of $9,744,000. The difference of $940,847.00 from the engineer's estimate to
the low Total Net Bid Amount represents a difference of 9.66 percent. While this is significant it is still
within the recognized industry standard of 10 percent. As such, no consideration for the rejection of bids
and rebidding was considered.
Madsen-Johnson meets the general contractor bidder qualification requirements for this project. Also,
their process mechanical and electrical subcontractors, Holm Brothers Plumbing and Heating, and
Electrical Installation and Maintenance Company (ElM), meet their respective qualification requirements.
Since we have worked with the general contractor and both subcontractors on several occasions we
recommend that the construction of the East Water Treatment Plant, City Project No. 04-08, be awarded
to Madsen-Johnson Corporation in the amount of $10,684,847.00.
If you have any questions or would like additional information please call me at 651.490.2115.
Sincerely,
~f1~
James P. Norton, PE
Sr. PrincipallDirector Water Services
Project Manager
c: Kelley Janes, City of Chanhassen
Paul Kujak, Madsen-Johnson
Jay Whitaker, SEH
Mike Foertsch, SEH
x:\ae\chanhI050200\6-bidglbid rec kner 072605.doc
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BORSON
CONSTRUCTION
June 30, 2005
Mr. Todd Gerhardt, City Manager
City of Chanhassen
7700 Market Boulevard
Post Office Box 147
Chanhassen, Minnesota 55317
RE: New East Water Treatment Plant
Chanhassen, Minnesota
Dear Mr. Gerhardt:
Today, June 30, 2005, at 11:00 a.m., BOR-SON Construction, Inc. submitted a proposal for the
New East Water Treatment Plant project. Our lump sum portion of the bid was in the amount of
$9,022,883.
We need to inform you that we made an error in the preparation of that bid and request that it be
withdrawn from consideration.
The enclosed documentation is the first sheet of our bid summary Excel workbook. In the line
item for masonry it shows an amount of "508300 + 12000". Since I did not place an " = " sign in
front of it, the number is not recognized and was not included in the bid total.
The bid we submitted does not include any costs at all for the masonry work. Including
overhead, insurance and bond, our bid should have been $552,000 higher to cover the costs.
We sincerely apologize for the mistake and request that our bid be withdrawn from
consideration.
Respectfully,
BOR-SON Construction, Inc.
~/J1~.-
lee Martinsen
Senior Estimator
lAM:cme
Endosure
cc: Ray Schwartz; BaR-SON Construction
Jim Norton; SEH Engineers
BOR-SON Construction, Inc. - 2001 Killebrew Drive. Suite 400 - Minneapolis, MN 55425 - 952.854.8444 _ fax 952.854.8910 - www.borson.com
MirmalM AcfioolEquBl ~ Opporfuni/y
..
6/301200510:48 AM
Base BId
I
BOR-SON Construction, Inc.
BID NUMBER: B272
ProJect: Chanhassen WTP
Date: 6/3012005 I 11:00 AM
ArchItect: SEH Enalneers I
Owner: Cltvof Chanhassen
Tvoe of Construction: I
Gross SF: I
Finish SF: I
Co 8-31-06
Sect. Description Of Wcxk Labor Material Subcontract Comments (SUB)
01000 ~ Conditions $ 248.400 $ 202 449 none
Buidino Permit none $ 69,000 none . ..
01210 Allowances none none none
, Mf IIddm tl1 none none $ 100 000
02228 lmOVino Pavements and MiS(; Structures aub sub Sched B
02232 earIna and sub sub Sched B
02250 S lOriM , Bracina sub IUb Sc:hed B
IIY unit Price - sheet olllna . sub sub Sched B
02310 Site Gradlna aub sui> Sc:hed B
02316 Excavation and Embankment DOT aub aub Sched B
02318 Trench Excavation and BackfiI sub IUb Sched B
Incidental to sub aub Sched B
02320 Structure excavation and BaddiU - Lumo Sum sub aub $ 57,000 Ryan
backfill is bY Unit Prices sub sub Sched B
02336 Test RoIlina - by unit Price sub sub Sched B
02338 Stmarade PreParation . by unit orice sub sub Sched B
02354 GeotextIIe Installation . by tmit price sub sub Sched B
02372 Erosion ControI- bv unit Drice sub sub Sched B
Maintain fences and trans. durirvl constr $ 500 none none
02376 RlnRAn . bv unit Price sub sub Sched B
02600 Water Mains - by unit Prices sub sub Sched B
sub sub Sched B
Oislnfec:tion sub sub Sched B
Plina sub sub Sched B
02608 San/tarv and Storm Sewers - by unit ~s sub sub Sched B
02612 Pipe Culverts - by unit Drices sub sub Sched B
02632 .Ploe Sewers aub sub Sched B
02634 Manholes and Catch Basins - by unit Prices sub sub Sc:hed B
02722 Ie Base - bv unit Price . sub sub Scheel B
02744 BlUnInous Pavina.. by unit Prices sub sub Sched B
02748 Tack Coat - by l.K1It Prices sub sub Sched B
02765 Pavement MaIidna - bv unit Price sub sub Sched B
02772 Concrete CurbIno - bv l.K1It DrIce sub sub Sched B
02775 Walks. by unit Price sub sub Sched B
02920 Lawns and Grasses - by unit Prices sub sub Sched B
00922 ToosoII . by unit Prices sub sub Sched B
02925 Native Veoetatlon - what unit DrIce Item? sub sub Sched B
02930 Exterior Plants - by unit orices sub sub Sched B
03300 Concrete Wortt $ 466 744 $ 662 776 none
Relnforclna Steel none $ 344,614 $ 211.850 ambassador I woody 446 ton
Rebaratlllterbeds $ 3500 $ 5,000 none
03400 Precast Hollow Core Slabs sub $ 4,000 $ 228,269 hanson soancrete
03402 Precast Concrete Manholes - by tnt Prices sub sub Sched B
03450 Precast Architectural Concrete sub sub wlO4810 American Art Stone, Conaete
0424 8 Modular Block RetaininQ Wag - by unit Price #41 sub sub Sched B
T - by unit Price #42 sub sub ~
0481 o Masonrv sub sub 508300+12000 Axel Ohman -y
WM'lter condtions sub sub .
0486 o Stone Veneer sub sub wlO4810 Mankato Kasota, Blesaoz
05000 Steel Erection $ 22 498 $ 2663 $ 20 000 borsonlolua
0512 o Structural Steel none w/05500 none
0521 o Steel Joists none w/05500 none
0531 o Steel Decldnn - none w/055oo none
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