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CR 97-48 Authorize Additional Design Service Fee & Order Bids Sanitary Sewer Lift Station 5 Improvements Project 96-02 March 14, 1997 \ 1" y 0 ~ 0- " o P K \ ~ Council Report 97-48 Authorize Additional Design Service Fee and Order Bids Sanitary Sewer Lift Station #5 Improvements Project 96-02 Proposed Action. Staff recommends adoption of the following motion: Move that Council adopt Resolution 97- 28. Resolution authorizing re-advertisement of Proiect 96-02. Lift Station #5 Improvements. Overview. This project was originally advertised in June/July, 1996. There were only two bidders and the low bid of $280,850 was 33% above the engineer's estimate of $210,362. City Council rejected the two bids to allow staff time to evaluate options for lowering the project cost. Staff believes that a poor bid climate and the tight working conditions on this site led to the higher bids. Our project was one of nine lift station replacement projects being bid last June. Additionally, it is probable that the impact of the tight working conditions was underestimated. Staff requests that additional engineering fees be authorized in order to modify the design slightly and to allow an alternate bid. Also, staff is requesting authorization to re-advertise the project. Primary Issues to Consider. . What are the additional design fees? . What are the design modifications? . Project Budget and Schedule Supporting Information. . Resolution 97-28 , Steven J. Stadler, Public Works Director Council Report 97-48 Page 2 Analvis ofIssues . What are the additional design fees? The additional engineering service fees request is $6, 078. The original engineering fee agreement was $36,930. The additional fees are required to allow design modifications as explained below. . What are the design modifications? The design changes include: . allowing the contractor to partially demolish the existing building to free up space for the new building . change the site plan - relocate the new generator/control building to simplify construction . provide architectural and structural drawings to allow an alternate bid to reuse the west end of the existing building . give contractors more flexibility in how they maintain sewage flow during construction . Project Budget and Schedule The current CIP budget for this project is $280,000. The project schedule is: May 13 - Open bids June 2 - Start construction Augnst 15 - Complete construction CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION No. 97-28 RESOLUTION AUTHORIZING ADVERTISEMENT FOR BIDS - LIFT STATION #5 IMPROVEMENTS, PROJECT 96-02 WHEREAS, The City Council authorized preparation of construction documents on April 2, 1996, plans and specifications for Lift Station #5 Improvements have been prepared by SEH, Inc. and have presented such plans and specifications to the Council for approval, and WHEREAS, bids received in July, 1996 for construction based on these design plans were rejected because they were 33% over engineer's estimate, and WHEREAS, design modifications to increase the likelihood of lower bids and allow for an alternate bid have been approved, NOW THEREFORE, BE IT RESOLVED by the City Council of Hopkins, Minnesota: 1. Such design plans and specifications, including modifications, a copy of which are attached hereto and made a part hereof, are hereby approved and ordered placed on file in the office of the City Clerk. 2. The City Clerk shall prepare and cause to be inserted in the official paper and in the Construction Bulletin an advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall be published three times, at least three weeks before date set for bid opening, shall specify the work to be done, shall state that bids will be received by the clerk until 10:00 a.m., on the 13th day of May, 1997, at City Hall and that no bids shall be considered unless sealed and filed with the clerk and accompanied by a certified check or bid bond, payable to the City of Hopkins, Minnesota for 5% of the amount of such bid. 3. The clerk and city engineer are hereby authorized and instructed to receive, open, and read aloud bids received at the time and place herein noted, and to tabulate the bids received. The Council will consider the bids and award contract at the regular City Council meeting of May 20, 1997, in the Council Chambers. Adopted this 18th day of March, 1997. Charles D. Redepenning, Mayor Terry Obermaier, City Clerk