CR 00-26 Award Contract Water Treatmet Plant #4 Renovation Project 99-08
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C\IY OF
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February 10,2000
HOPKINS
Council Report: 2000-26
AWARD CONTRACT
WATER TREATMENT PLANT #4 RENOVATION
PROJECT 99-08
Proposed Action.
Staff recommends adoption of the following motion: "Move that Council adopt Resolution 2000-010 ,
Resolution for Award of Bid. Water Treatment Plant #r Renovation. Project No. 99-08 and Resolution
2000-011 . Resolution stating the city's intent to sell revenue bonds to pay for this proiect. "
Overview.
City Council at its January 4,2000 meeting, approved final plans and ordered bids on the Water Treatment
Plant #4 Renovation. The Water Treatment Plant #4 is located at 1402 Elmo Park Service Drive. At 2:30
p.rn. on February 3,2000 bids were publicly opened for this project. Three bids were received with a low
bid of $349,250, submitted by Municipal Builders Inc. of Anoka MN. StatTnow requests Council approval
to proceed with award and construction of these improvements.
Primary Issues to Consider
. Review of Bids and Contractor
. Project Budget
. Project Scope
Supporting Information
. Resolution 2000-010
. Resolution 2000-011
. Bid Tabulation
. SEH-RCM Recommendation Letter
Michael G. Lauseng, Utility Superintendent
Financial Impact: $ 384.175 Budgeted: Y/N Y Source: Water Fund
Related Documents (CIP, ERP, etc.): CIP ($395.000)
Notes: Amount includes 10% construction continQencv
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Analysis oflssues
. Review of Bids and Contractor
The three bids submitted were very competitive with only $13,150 between the lowest base bind and
the next bid and the third bid was $196,950 higher than the lowest. The low bid of $347,250 was
submitted by Municipal Builders Inc. of Anoka, :MN.
· Project Budget
The 2000 CIP has $395,000 set aside for the completion of this project. The low bid is 88% ofthat
amount. This project will be funded through the sale of water utility revenue bonds.
· Proj ect Scope
Renovation includes: removal and replacement of the water filter media (sand and gravel) and the filter
underdrain system; installation of an air wash blower and diffuser system; and installation of a new
backwash water supply pump.
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2000-010
RESOLUTION FOR AWARD OF BID
WATER TREATMENT PLANT #4 RENOVATION
CITY PROJECT NO. 99-08
BE IT RESOLVED BY THE CITY COUNCIL OF HOPKINS
MINNESOTA, that the bid of Municipal Builders Inc. in the amount of $347,200
is the lowest responsible bid for Water Treatment Plant #4 Renovation
improvements as specified in City Project 99-08, and that the Mayor and City
Manager are hereby authorized and directed to enter into a contract with said
bidder for and on behalf of the City.
Adopted by the City Council of the City of Hopkins this 15th day of February,
2000.
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BY
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2000-011
DECLARING THE OFFICIAL INTENT OF THE CITY OF HOPKINS TO
REIMBURSE CERTAIN EXPENDITURES FROM BOND PROCEEDS TO BE
ISSUED BY THE CITY OF HOPKINS
WHEREAS, the Internal Revenue Service has issued Treas. Reg# 1.150-2
providing that proceeds of tax-exempt bonds used to reimburse prior expenditures
shall not be deemed spent unless certain requirements are met; and
WHEREAS, the City expects to incur certain expenditures, which may be
financed temporarily from, sources other than bonds, and reimbursed from the
bond proceeds;
NOW, THERE FORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF HOPKINS MINNESOTA (THE CITY) AS FOLLOWS:
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1. The City intends to incur expenditures for the project described in Council
Report for project #99-08 (the "Project"), and intends to reimburse itself for
such expenditures from the bond proceeds to be issued by the City in the
maximum principal amount described in the "project".
2. The City Manager is authorized to designate additions to project 99-08 in
circumstances where time is of the essence, and any such designation shall be
reported to the Council at the earliest practicable date and shall be filed with
the official books and records of the City.
3. This resolution is intended to constitute a declaration of official intent for the
purpose of Treas. Reg. # 1.150-2 and any successor law, regulation., ruling or
amendment pertaining thereto.
Adopted by the City Council of the City of Hopkins this 15th day ofFehruary,
2000.
BY
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
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BID TABULATION
.Proji;Ct:
Bid Oak:
Filter Renovation at Water Treatment Plant
Hopkins, Mimlcsota
February 2,2000 at 2:30 p.m.
Short Elliott Hendrickson. Inc. (SEH - ReM)
City Project No. 99-0R
SEH-RCM Project No. A-HOPKN9907.00
CONTRACTOR Municipal Buildcrs, Inc. Magnc)' Cunstruction, Inc. Shank CUlIstmetOl's, Inc.
ADDRESS 17125 Roanoke St. NW 1 n.:J-5 Highway 7 3501 85th Ayc. N.
Anoka. MN 5530.:J- Excelsior. l\IlN 55331 Brooklyn Park, rvrN 55.:J-.:J-3
ORP-P ART -lND Corporalion-Mi nnesota Corporation-Minnesota C orpo ra tion-Minncsota
SIGNED BY John R. Wegner Mark C. Magney Brian M. Shank
TITLE President President Presidcnt
BID SECURITY Sly" Bid Bond 5'>;, Bid Bond 5'!;;, Bid Bond
ITEMS
Base Bid $332.25000 $345AOO.OO $529.2011.00
Pump M~lI1ufachlrer Fairbanks-Morse Byron Jackson Fairbanks-Morsc
Air Wash Blower Package Roots / Eng. Amcrica SutorbiIl Roots
Filler - Air Wash Distributor Tanka Equip. Co. Tonka EqLLip. Co. Tanka ECluin. Co.
Alternative Elluipmcnt
Pump Manufacturer - - -
Adcl!Deduct $ - - -
Air Wash Blowcr Package Sutorbilt - -
Deduct $ $G.OOO - -
Filter - Air Wash Distributor - -
Deduct $ - - -
Bid Option No. 1
(Delete Air Wash System) $ X 7.000.00 $60.000.00 $89/)25.011
Bid Option NO.2
(Aries Stainless Steel Air Wash No Bid $75,000.00 $188.301l.00
DistributOr)
Bid Option NO.2
(Underdrain Plastic Liners) $15JIIIO.OO $35.000.nn $32.511U.OO
Suhcontnlctors and Suppliers
Painting Swanson & Y oungclale Swanson & Youngdale -
Electrical Twin City Electric Twin City Electric -
Addcnllums Receiyed Not Applicable Not Applicable Not Applicable
(none sent to contraclors)
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-se~:tClll
10901 Red Circle Drive, Suite 200. Minnetonka. MN 55343-9100
612.912.2600
612.912.2601 FAX
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February 9, :WOO
RE: City of Hopkins, Minnesota
Filter Renovation of Water Treatment Plant
Recommendation of Award
SEH No. A-HOPK9907.00
The Honorable Mayor and City Council
c/o Michael G. Lauseng
Water and Sewer Superintendent
City of Hopkins
1010 First Street South
Hopkins, MN 55343
Dear Honorable Mayor and Council:
We have reviewed the Bid Forms received on February 3, 2000 for the Filter Renovation at the
water treatment plant. Three bids were received. A copy of the Bid Tabulation is enclosed for
your information.
The Base Bids ranged from $332,250 to $529,200, with the lowest bid from Municipal Builders,
Inc. There are various combinations of alternatives and total prices, but Municipal Builders
remains lowest in all combinations.
Bid Option No. 1 for $87,000 consisted of deleting the proposed Air Wash System from the
filters. This m110unt was requested to allow the vital parts of the project to proceed even if the
bids were higher than expected. We do not recommend acceptance of the option.
Bid Option No.2 consisted of installing a stainless steel air distributor grid in the filters in place
of the base bid plastic air distributor grid. The option would give some significant benefits to the
City because or a longer life expectancy of the system. There appears to have been some
confusion around this option in the last hours prior to the bid opening, so that the low bickleI' did
not provide a bid for it. However, the low bidder is reviewing this issue, and \\ie expect that they
will olTer the option as a potential change order to the project contract.
Bid Option No.3, tor $15,000, consisted of attaching liners to the existing concrete surface of
the underdrain, in case the concrete has worn or deteriorated. We recommend this option be
included in the project to extend the life expectancy of this renovation.
Sl10rt Elliott Hendrickson Inc.
Offices located throughout tl18 Upper Midwest
II r lidll rlll/ J!/III1, ,1/.\ l!}, II , 11I1f1 (/Ihil ,i".
Equal Opportullitv Employer
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The Honorable Mayor and City Coum;il
February 9, 2000
Page 2
Project Schedule: We were informed on the day prior to the bid opening that one of the
materials needed to complete the renovation would not be available until after the deadline for
completion of the filter work. We discussed this with Mike Lauseng and Steve Stadler that day.
and we all decided that a schedule modification might be possible while minimizing connict with
the Moline Tank rehabilitation project. After the bid opening, the issue was discussed with the
low bidder further. Thcy arc working on possible alternatives to allow the project to proceed on
schedule. However. there may be some cost increases needed.
The low bidder's contract price is substantially under the City's budgeted amount for
construction. However, please do not decrease the budget at this time. Please allow for
contingency in the project budget for the following reasons. First as with any rehabilitation
project, unforeseen conditions often appear. Second, there may be eosts associated with
overcoming the material delays. Third, we believe that Bid Option No. 2 would provide
significant benefit to the water treatment plant but it was not included in the original project
budget. Trthe contractor can determine that the proper increased price is in the range 01'$35,000
to $45.000, the ite111 may be justifiable becausc it can extend the life of the renovation.
We recommend that the City of Hopkins make a contract award to the apparent low bidder,
Municipal Builders. Inc., to include the Base Bid and Bid Option No.3 for the amount of
$347,250. We further recommend setting aside 5 to 10 percent contingency for changes.
finally, we ask you to consider a $45,000 maximum budget to change to the stainless steel air
grid in the filters.
Sincerely,
Short Elliott Hendrickson Tnc.
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Dale A. Folen, P.E.
Project Manager
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Enclosure
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