Department of Utilities

Memorandum

 

TO:

 

David Corliss – City Manager

Cynthia Boecker, Assistant City Manager

Diane Stoddard, Assistant City Manager

 

FROM:

Mike Lawless – Interim Assistant Director of Utilities

 

CC:

Dave Wagner – Director of Utilities

Philip Ciesielski – Assistant Director of Utilities

Beth Frailey Krishtalka – Management Analyst

 

Date:

June 11, 2008

 

RE:

June 17, 2008 Agenda Item – West Baldwin Creek Interceptor Sewer

Utilities Department Project #CS0704

Award Bid

 

Please include the following item on the City Commission agenda for consideration at the June 17, 2008 meeting:

 

Award the bid for Project CS0704 West Baldwin Creek Interceptor Sewer to the low bidder, McAninch Corporation in the amount of $2,104,550.80 and authorize the City Manager to execute a contract agreement for the project.

 

Project Background 

The project began with a preliminary design-build agreement for engineering design to be completed to a level that would allow development of a guaranteed maximum price (GMP) for the construction of the project.  A GMP was developed and a contract prepared.  Staff did not recommend proceeding with the GMP contract and instead recommended completing the project as a design-bid-build project to ensure a fair market value for the construction contract.

 

The project will construct approximately 15,000 feet of gravity sewers ranging in size from 10” to 30” that were identified in the 2003 Wastewater Master Plan as E-BC-1-02, E-BC-2-01 and E-BC-2-02.  The project will connect to and extend the gravity sewers constructed with the Pump Station 48 project.  The general area involving the project is shown on the attached map. 

 

Project Timeline

July 2007: City entered into a preliminary design-build contract with CAS Construction/Professional Engineering Consultants (PEC) for the preliminary design and development a GMP for the project.

 

November 2007:  Staff recommended not proceeding with a GMP contract for the construction of the project.

 

January 2008: City entered into a contract with PEC for completion of the design and construction services for the project.

 

March 2008: City authorized condemnation for the properties remaining to be acquired.

 

April 2008: PEC finalized the bidding documents and the City Commission adopted Resolution #6766 authorizing that bonds be issued to construct the project.

 

May 2008: During the May 6, 2008 City Commission meeting a bid date of June 3, 2008 was set for the project. The appraisal report for the remaining property to be acquired was filed on May 29 and payment was made to the Court on June 9.

 

Project Status:   The bid opening is complete.  The following bids were received from eleven (11) contractors;

 

McAninch Corporation               $2,104,550.80

McCorkendale Construction        $2,168,350.00

King’s Construction                   $2,207,728.95

Emcon Construction                 $2,237,000.00

Meadows Construction              $2,368,710.00

Rodriguez Mechanical                $2,498,085.50

Redford Construction                $2,498,155.00

Rose-Lan Contractors               $2,567,397.94

Beemer Construction Co.           $2,662,762.25

R.D. Johnson Excavating           $3,199,999.00

Nowak Construction Co.            $3,387,576.15

Engineer’s Estimate                  $3,967,387.00

 

Attached to this memo is a recommendation from Professional Engineering Consultants to award the project to the low bidder McAninch Corporation.  As indicated in PEC’s recommendation, many factors may have contributed to the number of bids received as well as the pricing contained within them. Although McAninch has not worked for the City of Lawrence, the references contacted provided very favorable comments. The Utilities Department staff is in agreement with the recommendation. 

 

The table below is included to provide a comparison of the design-build and design-bid-build total project costs at the time of award.

 

 

Design-Build

Design-Bid-Build

GMP Development & Design Completion and Construction Services

 $   549,283.00

 $     584,127.00

Construction Cost

 $3,616,000.00

 $  2,104,550.80

Easements & Property Acquisition

 $   308,515.00

 $     308,515.00

Permits & Misc. Costs

 $       9,000.00

 $        9,000.00

Total

 $4,482,798.00

 $  3,006,192.80

 

It should be noted that the design-build construction cost includes $580,000.00 in allowance costs that were to be used only if the specific scope of work was encountered. Any allowances that were unused would not be paid as part of the GMP contract. In the design-bid-build project, there are no allowance items. The contractors bidding on the project must account for these items in their bid.

 

We anticipate the following schedule for the remainder of the project:

 

June 2008:     Award construction contract.

April 2009:      Final construction completion.

 

This schedule is contingent upon the contract execution and weather conditions during the construction period.

 

Project Funding

Funding for the project will come from the Utilities Department Capital Improvement Project bonded construction fund.

 

Action Request

Award the bid for Project CS0704 West Baldwin Creek Interceptor Sewer to the low bidder, McAninch Corporation in the amount of $2,104,550.80 and authorize the City Manager to execute a contract agreement for the project.