City of Lawrence
Utilities Department
MEMORANDUM
TO: David L. Corliss, City Manager
Cynthia Wagner, Assistant City Manager
Diane Stoddard, Assistant City Manager
FROM: Philip Ciesielski, Assistant Director of Utilities
CC: Dave Wagner, Director of Utilities
Charles Soules, Director of Public Works
Mike Lawless, Assistant Director of Utilities
Mark Thiel, Assistant Public Works Director
Steve Bennett, Building/Maintenance and Enginnering
Beth Frailey Krishtalka, Assistant to Director
Dave King, Utilities Maintenance Superintendent
Mark Hegeman, Utilities Operations Superintendent
DATE: March 18, 2011
RE: March 29, 2011 Agenda Item – Award the bid for Bid Number B1101 Project UT0922CS, Airport Area Sanitary Sewer Improvements.
Please include the following item on the City Commission agenda for consideration at the March 29, 2011 meeting:
Award the bid for Bid Number B1101 Project UT0922CS, Airport Area Sanitary Sewer Improvements to the second low bidder Schmidtlein Excavating, Inc. in the amount of $411,033.70 and authorize the City Manager to execute the contract.
Project Background.
The airport is located north of US Route 24/40 about one-half mile east of 3rd Street. It is a valuable asset to the City, currently accommodating over 32,000 operations annually and generating over $9 million dollars in local revenue for the economy. The airport is approximately 500 acres, has two runways, a terminal, 36 t-hangars, and several small on-site aviation services and hangars used by local businesses and individuals. The airport is an “island” of City property, located about a mile north of the City border.
Airport facilities have no sewer services, using septic instead. County regulations prohibit more than one septic and lateral field every three acres. This requires land that could otherwise be used for development to remain as open space for septic.
There is an immediate need for additional sewer facilities at the airport. At least one septic system is failing, and a number of business inquiries have occurred over the last year for locations at the airport that suggest that the airport has more demand for business space than can be accommodated by existing water and sewer service.
Project Description.
The construction of a gravity collections system on the airport property to a septage holding tank at HWY 24 with necessary telemetry and odor control to serve the existing Airport Terminal Building and hangar facility as well as a level of development projects (see project map). The facilities are designed for future expansion with the construction of a forcemain to existing gravity lines in North Lawrence and the conversion of the septage holding well to a lift station.
Project Status.
On March 8, 2011 bids were received from the following (10) bidders. The bids were opened and publicly read aloud.
Engineer’s Estimate $560,350.50
Midland Contractors $368,053.85
Schmidtlein Excavating $411,033.70
Redford Construction $454,702.00
Walters-Morgan Construction $514,993.00
Heartland Midwest $529,322.20
Mill Valley Excavating $532,200.20
King’s Construction $573,759.00
Linaweaver Construction $580,345.50
Kissick Construction $621,343.70
R.D. Johnson Excavating $716,604.80
The low bidder, Midland Contractors, have extensive experience with water and wastewater related pumping and treatment facilities. They have completed several successful treatment plant and pumping related projects for the City over the last few years. These include the Douglas County Benefit District Pump Station PS49, Kaw WTP Sodium Hypochlorite Conversion, Kaw WTP High Service Pump Replacement, and the current Pump Station PS25 project. However, Midland Contractors cannot provide experience meeting the requirements specified in the Instructions to Bidders for the construction of gravity sanitary sewer collections system pipe and manholes. The current project includes the construction of 2,400 linear feet of gravity sanitary sewer and manholes.
During the bid review process BG Consultants and Staff discussed the experience limitations with representatives of Midland Contractors. In response Kelly Guerrero, the owner of Midland Contractors, confirmed that the company could not meet the stated experience requirement. During a meeting on Thursday March 10, 2011 with Kelly Guerrero and Charlene Marlow of Midland Contractors I discussed their inability to meet the stated construction experience requirements for this project and the proposed action to award the bid to the next lowest bidder. They confirmed Midland Contractors could not meet the gravity sanitary sewer and manhole construction experience requirement and did not contest the proposed award to the next lowest bidder.
Based on the above Staff and BG Consultants recommend awarding the bid to the second low bidder Schmidtlein Excavating Inc. Attached is the bid tabulation and BG Consultants’ recommendation of award letter.
Proposed Project Schedule.
Advertise for Bid February 9, 2011
Bid Opening March 8, 2011
Award Bid March 29, 2011
Notice to Proceed April 15, 2011
Project Completion August 5, 2011
Project schedule is dependent on actual dates of award and notice to proceed, and weather during construction.
Project Funding. Funding is via Public Works general obligation bonds for economic development.
Action Request.
Award the bid for Bid Number B1101 Project UT0922CS, Airport Area Sanitary Sewer Improvements to the second low bidder Schmidtlein Excavating, Inc. in the amount of $411,033.70 and authorize the City Manager to execute the contract.