ITEM 5.1 Bid Awardit
OtSTy e F o
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Utilities
Utility Manager Kurt Neidermeier
February 24, 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
Scott Schaefer, AE2S, Inc.
City Administrator/Finance Director Flaherty
5.1
STRATEGIC VISION
MEETS:
I THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative
communication.
X
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City Staff recommend the City Council award the East Wastewater Treatment Facility Biosolids Project.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
Yes
No
BACKG ROU N D/J USTI FI CATI ON:
The 2020 Wastewater Utility Budget includes construction funding of the East Wastewater Treatment
Facility Biosolids Building. The project removes long term liquid storage from the site by further processing
the material into a dry matter and removal from site on a frequent basis in lieu of long-term site storage.
The project is a key component of the Wastewater Master Plan (February 2018), "East Solids Phase 1"
supporting long term goals and implementation phasing to meet growth expectations. It is anticipated
mobilization would initiate in April and be substantially complete by May 312021.
Bids were opened on February 13, 2020. A total of two bids were received as shown on the attached bid
tabulation and as listed below:
Contractor Lump Sum Alternative 1 Alternative 2
Rice Lake Construction Group $13,785,600.00 (-$20,000.00) $194,000.00
Gridor Construction $14,396,370.00 (-$10,000.00) $211,000.00
Engineers Opinion of Cost $13,807,000.00 X $177,000.00
Two bid alternates were included within the bid documents
• Alternative 1: Alternate manufacturer option of centrifuge manufacturer (Centrisys was base bid as
the piloted system)
• Alternative 2: Addition of Photovoltaic Power Generation (Solar) System.
City Staff recommend Rice Lake Construction Group be awarded the project contract with Base Bid of
$13,785,600.00; decline of Alternate 1; and acceptance of Alternate 2 for an additional $194,000.00 for a
total project cost of $13,979,600.00.
I SUPPORTING DOCUMENTS ATTACHED: I
• AE2S Bid Award Recommendation & Tabulation of Bids
• Resolution 2020-14
• Notice of Award
POSSIBLE MOTION
Motion to adopt Resolution 2020-15 accepting bids and awarding a contract for the East Wastewater
Biosolids Building Project to Rice Lake Construction Group, by accepting the base bid of $13,785,600,
declining alternate 1, and accepting alternate 2 in the amount of $194,000 for a total project cost of
$13,979,600.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 602 — Sanitary Sewer Fund Yes
,ej n 0
www.ae2s.com
February 17, 2020
City of Otsego
Adam Flaherty
City Administrator
13400 90th St NE
Otsego, MN 55330
Re: EWWTF Biosolids Building — Bid Award Recommendation
City Project No.: 4202001
MPCA / PFA Project No.: 280609-PS01
AUS Project No.: P05409-2017-003
Dear Mr. Flaherty:
Bids were received at 2:00 p.m. on Thursday, February 13, 2020 at Otsego City Hall for the above
referenced project. A total of two (2) sealed bids were submitted, all of which were opened and
read aloud. A bid tabulation is enclosed with this letter for your review.
The project was bid as one base bid lump sum and two (2) alternates: Alternate 1: Centrifuge
Equipment In Lieu of Base Bid Equipment and Alternate 2: Roof Mounted Photovoltaic Array
System (i.e. Solar Panels).
AE2S has reviewed the bid results, conferred with City staff, and recommends that the City of
Otsego award a contract to the apparent low bidder and that the City of Otsego accept
Alternate 2. The apparent low bid for the Base Bid and Alternate 2 was from Rice Lake Construction
Group. As such, we recommend the following construction contract:
• Base Bid for General Construction and Alternate 2: Rice Lake Construction Group in the
amount of $13,979,600.00.
Thank you for the opportunity to assist the City of Otsego with this important project. Should you
have any comments or questions regarding the bid results or the project in general, please do not
hesitate to contact me at 763-248-2929.
Advanced Engineering and Environmental Services, Inc.
6901 East Fish Lake Road, Suite 184 • Water Tower Place Business Center • Maple Grove, MN 55369 • 763-463-5036
0"
City of Otsego 04
EWWTF Biosolids Building
Bid Award Recommendation
Page 2 of 2
Sincerely,
AE2S
Scott Schaefer, PE
Project Manager
Enclosures
CC: Kurt Neidermeier, Utility Manager, City of Otsego
Gabe Posteuca, Minnesota Pollution Control Agency
Becky Sabie, Minnesota Public Finance Authority
Colin Leonard, Rice Lake Construction Group
File
Advanced Engineering and Environmental Services, Inc.
6901 East Fish Lake Road, Suite 184 • Water Tower Place Business Center • Maple Grove, MN 55369 - 763-463-5036
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SECTION 00 51 00.01 - NOTICE OF AWARD
DATE: February 25, 2020
TO: Rice Lake Construction Group
CONTRACT: Contract No. 1 - Otsego East WWTF Biosolids Building
PROJECT: Otsego East WWTF Biosolids Building, City of Otsego, MN
You are notified that your Bid dated February 13, 2020 for the above Contract has been
considered. You are the apparent Successful Bidder and have been awarded a contract for all
work under the above referenced project.
The Contract Price of your contract is 13,979,600 dollars and 00 cents ($13,979,600.00). The
Contract award, with respect to the Base Bid, is as follows:
1. Base Bid Total Sum Price:
$13,785,600.00
2. Alternate 1 Total Sum Price:
$Declined
3. Alternate 2 Total Sum Price:
$194,000.00
4. Total Contract No. 1 Sum Price:
$13,979,600.00
Three (3) copies of the proposed Agreement accompany this Notice of Award.
You must comply with the following conditions precedent within fifteen (15) days of the date of
this Notice of Award, that is by March 11, 2020.
1. You must, immediately, deliver to the ENGINEER three (3) signed copies of this
Notice acknowledging its receipt.
2. You must deliver to the ENGINEER three (3) fully executed counterparts of the
Agreement including all the Contract Documents.
3. You must deliver with each executed Agreement, Performance and Payment
Bonds as specified in the Instructions to Bidders (Article 19), and General
Conditions (paragraph 6.01).
4. You must deliver with each executed Agreement, Certificates of Insurance as
specified in the General Conditions (paragraph 6.03) and Supplementary
Conditions (paragraph SC-6.03).
5. You must deliver with each executed Agreement, Current Workmen's
Compensation Certificate of Premium Paid.
6. You must deliver with each executed Agreement, Contractor's Certificate of
Minnesota Income and Sales Tax Clearance.
7. You must deliver with eaGh eXeGuted Agreement, a signed GOPY ef the AgenGy
Agreement (SeGtiGn 00 73 2 of irnhase GentraGtS). (Removed by Addendum
No. 2)
Otsego EWWTF Biosolids Building January 2020
Otsego, Minnesota 00 51 00.01 - 1 Notice of Award
After execution of the Agreement, please send all copies of the Contract, along with the above
items to the Engineer, Advanced Engineering and Environmental Services, Inc., 6901 East Fish
Lake Road, Ste 184.
Failure to comply with these conditions within the time specified will entitle Owner to consider
your bid in default, to annul this Notice of Award, and to declare your Bid Security Forfeited.
Within ten (10) days after you comply with the above conditions, OWNER will return to you one
(1) fully signed counterpart of the Agreement with the Contract Documents attached.
City of Otsego, Minnesota
Owner
By:
City of Otsego
ACCEPTANCE OF AWARD
Title:
Date:
END OF SECTION
Otsego EWWTF Biosolids Building January 2020
Otsego, Minnesota 00 51 00.01 - 2 Notice of Award
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-14
ACCEPTING BIDS AND AWARDING CONTRACT
WHEREAS, pursuant to an advertisement for bids for City of Otsego Improvement Project No. 4202001,
East WWTF Biosolids Building Project (i.e. East Solids Phase 1), bids were received, opened and
tabulated according to law, and the following bids were received complying with the advertisement:
Total Base Bid Alternatel Alternate 2
1. Rice Lake Construction Group $13,785,600.00 (-$20,000.00) $194,000.00
2. Gridor Construction $14,396,370.00 (-$10,000.00) $211,000.00
AND WHEREAS, Rice Lake Construction Group is the lowest responsive, responsible bidder; and
WHEREAS, the City will accept the base bid, decline alternate 1, and accept alternate 2.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF OTSEGO THAT:
1. The Mayor and City Clerk are hereby authorized and directed to enter into a contract with Rice
Lake Construction Group in the name of the City of Otsego East Wastewater Treatment Facility Biosolids
Building, Improvement Project No. 4202001, according to the plans specifications therefore approved by
the City Council and on file in the office of the City Clerk.
2. The City Clerk is hereby authorized and directed to return forthwith to all bidders the bid bond
made with their bids, except that the bid bond of the successful bidder and the next lowest bidder shall
be retained until a contract has been signed.
ADOPTED by the Otsego City Council this 24th day of February, 2020.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Tami M. Loff, City Clerk