ITEM 7.1 Bids West WWTFI
'10
otS T
Y F O
MINNESOTA g
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR: v
MEETING DATE:
Administration
Lori Johnson, City Administrator
March 14, 2016
PRESENTER(s):
REVIEWED BY:
ITEM #:
Scott Schaefer, Project Engineer,
7.1
AE2S
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend approval of bids for the West Wastewater Treatment Facility (WWTF) Digester project.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes No
BACKGROUND/JUSTIFICATION:
Scott Schaefer, AE2S is the lead engineer for the West WWTF Digester project. Mr. Schaefer will be
present at the Council meeting to review the bids received for this project and requested Council action.
As you can see from the attached bid tabulation, the low bid including all alternates totals $1,465,400,
which is $434,600 below the initial project estimate of $1,900,000.
Below is a summary provided by Mr. Schaefer:
Bids were opened February 23`d, 2016 for the West WWTF Digester Improvements project.
The project received good interest from prospective bidders, and five bids were received.
Gridor Construction was the apparent low bidder and is recommended for award of the
base bid and the three alternates. The bid tabulation is attached. Note that Gridor was the
prime contractor for the East WWTF.
Subcontractor Relationship Notification:
The electrical subcontractor for Gridor Construction was indicated to be EIM, which is a
subsidiary of AE2S Construction LLC (ACL). AE2S and ACL are separate companies wholly
owned by Advanced Elements, Inc. The relationship was reviewed by the City Attorney, and
the attached supplemental representation and agreement was prepared and executed.
The following council actions are requested:
i. Award of construction contract for based bid and Alternates 1 through 3 in the
amount of $1,465,400. Following Council approval, the Notice of Contract
Award (attached) will be issued, and construction contracts will be prepared and
executed pending review and approval of bonds and other relevant information.
ii. Approval of Amendment 1 to the Owner -Engineer agreement pending City
Attorney review of the draft amendment. Contract amendment amounts are
shown on the attached Summary Table with Alternates.
SUPPORTING DOCUMENTS: X ❑ ATTACHED ❑ NONE
• Signed Bid Tab
• Summary Table with Alternate Details
• Notice of Contract Award
• AE2S-EIM Representation and Agreement
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
1. Motion to approve a contract with Gridor Construction for the base bid and three alternates
totaling $1,465,400 for the West Digester project.
2. Motion to approve Amendment 1 to the Owner -Engineer agreement pending City Attorney
review.
BUDGET INFORMATION
FUNDING: BUDGETED: X ❑ YES
WWTF Fund
❑ NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
9616'
West Wastewater Treatment Facility Digester Expansion
Otsego, MN
P05409-2015-001
February 23, 2016
g
E
o
6
0
NE
d
LL
C
"
0.0
o
LL
d
w
__
°_
A o
LL
Alternate No. 2
Alternate No. 3
�
Q Z
m
o .�
v
m
E
West WWTF
West Tower
Q
y'
�O
1�
EContract
No. 1 -
Alternate No. 1
Controls Hardware
Controls Hardware
CONTRACTOR
m
Z
a
Total Base Bid
Odor Control
Upgrade
Upgrade
Gridor Construction
✓
✓
✓
✓
✓
✓
✓
$1,257,600.00
$86,000.00
$109,200.00
$12,600.00
Magney Construction
✓
✓
✓
✓
✓
✓
✓
$1,370,950.00
$86,950.00
$110,500.00
$12,450.00
Di -Mar Construction
✓
✓
✓
✓
✓
✓
✓
$1,394,000.00
$102,000.00
$115,000.00
$13,000.00
Staab Construction
✓
✓
✓
✓
✓
✓
✓
$1,412,700.00
$120,000.00
$110,000.00
$14,000.00
Rice Lake Construction
✓
✓
✓
✓
✓
✓
✓
$1,436,900.00
$92,500.00
$117,250.00
$13,500.00
Engineer's Opinion of Cost
_Tj
$1, 684, 000.00
j $150, 000.00
j $57, 400.00
$8, 600.00
Advanced Engineering and Environmental Services, Inc.
Water Tower Business Place
6901 E Fish Lake Rd Ste 184
Maple Grove MN 55369
Tel: 763-463-5036
Fax: 763-463-5037
Respectfully Submitted by:
Scott Schaefer, PE
Otsego West WWTF Digester Expansion
Bid Summary
City Council Meeting, March 14t", 2016
I. General Summary Bid Opening
Bids were opened February 23`d, 2016 for the West WWTF Digester Improvements
project. The project received good interest from prospective bidders, and five bids
were received. Gridor Construction was the apparent low bidder and is recommended
for award of the base bid and the three alternates. The bid tabulation is attached. Note
that Gridor was the prime contractor for the East WWTF.
II. Request for Council Action
a. The following council actions are requested:
i. Award of construction contract for based bid and Alternates 1 through 3 in
the amount of $1,465,400. Following Council approval, the Notice of
Contract Award (attached) will be issued, and construction contracts will
be prepared and executed pending review and approval of bonds and other
relevant information.
ii. Approval of Amendment 1 to the Owner -Engineer agreement pending
City Attorney review of the draft amendment. Contract amendment
amounts are shown on the attached Summary Table with Alternates.
III. Subcontractor Relationship Notification
a. The electrical subcontractor for Gridor Construction was indicated to be EIM,
which is a subsidiary of AE2S Construction LLC (ACL). AE2S and ACL are
separate companies wholly owned by Advanced Elements, Inc. The relationship
was reviewed by the City Attorney, and the attached supplemental representation
and agreement was prepared and executed.
IV. Attachments
a. Signed Bid Tab
b. Summary Table with Alternate Details
c. Notice of Contract Award
d. AE2S-EIM Representation and Agreement
AEzS
Think Big. Go Beyond.
West Wastewater Treatment Facility Digester Expansion
Otsego, MN
P05409-2015-001
Bid Opening: February 23, 2016
Council Meeting: March 14, 2016
Contract No. 1 -
Total Base Bid
Alternate No. 1
Odor Control
Alternate No. 2
West WWTF Controls
Hardware Upgrade
Alternate No.
West Tower Controls
Hardware Upgrade
Total
Engineer's Opinion of Cost
$1,684,000
$150,000
$57,400
$8,600
$1,900,000
Apparent Low Bid
$1,257,600
$86,000
$109,200
$12,600
$1,465,400
CA/RPR
$140, 000
$10, 000
$3, 000
$500
$153, 500
Programming
$30, 000
$1, 000
$20, 000
$22, 000
$73, 000
Construction Administration
$67, 000
$67, 000
RPR
$57, 600
$57, 600
Post -Construction
$15, 200
$15, 200
Total
$1, 831, 700
$1, 831, 700
NOTICE OF AWARD
Dated March 14, 2016
[Certified Mail -- Return Receipt Requested]
TO: Gridor Construction Inc.
(BIDDER)
ADDRESS: 3990 27"' St SE
ull� O<.7.7a]
Contract: Contract No 1 (City Project No. 16-01) plus Alternates No. 1 2, and 3
(Insert name of Contract as it appears in the Bidding Documents)
Project: Otsego West WWTF Digester Expansion
ENGINEER's Project No. P05409-2015-001
You are notified that your Bid dated February 23rd, 2016 for the above Contract has been considered.
You are the apparent Successful Bidder and have been awarded a Contract for Construction of two (2)
new aerobic diaester tanks (sinale concrete structure) and associated equipment installation of two (2)
new positive displacement blowers and appurtenances civil site work and yard piping to accommodate
the new process systems electrical and instrumentation and controls improvements to accommodate the
new process systems. plus Alternates No. 1, 2, and 3.
(Indicate total Work, alternates or sections or Work awarded)
The Contract Price of your Contract is One million four hundred sixty-five thousand, four hundred
and no/100 Dollars ($ 1,465,400.00 ).
Base Bid $1,257,600.00
Alternate No. 1 86,000.00
Alternate No. 2 109,200.00
Alternate No. 3 12,600.00
Three (_3) copies of each of the proposed Contract Documents (except Division 1-50 specifications
and Drawings) accompany this Notice of Award. Three (3) sets of the Drawings and Specifications
will be delivered separately or otherwise made available to you immediately.
You must comply with the following conditions precedent within 15 days of the date you receive this
Notice of Award.
1. Deliver to the OWNER three (3) fully executed counterparts of the Contract Documents. Each
of the Contract Documents must bear an authorized signature on 00 52 00 - 7).
2. Deliver with the executed Contract Documents the Contract security (Bonds) as specified in the
Instructions to Bidders (Article 20), [and] General Conditions (paragraph 5.01).
Otsego WWWTF Digester Expansion January 2016
Otsego, Minnesota 0051 00-1 Notice of Award
(List other conditions precedent).
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 days after you comply with the above conditions, OWNER will return to you one fully
executed counterpart of the Contract Documents.
M.
City of Otsego, MN
(OWNER)
(AUTHORIZED SIGNATURE)
(TITLE)
Otsego WWWTF Digester Expansion January 2016
Otsego, Minnesota 0051 00 - 2 Notice of Award
www. ae2s . com
REPRESENTATION AND AGREEMENT OF ADVANCED ENGINEERING AND ENVIRONMENTAL SERVICES, INC.
Advanced Engineering and Environmental Services, Inc. (AE2S) has entered into a contract with the City
of Otsego, Wright County, Minnesota (City) for the provision of professional services regarding certain
upgrades to the City's Wastewater Treatment Facility. Part of AE2S's responsibility is for construction
observation of the work done to upgrade the facility.
AE2S assisted the City in advertising for bids for the Project. The apparent low bidder has identified a
subcontractor for electrical work as AE2S Construction, LLC d/b/a EIM (EIM). The possibility that EIM
may be a chosen subcontractor of the general contractor's bidding on the Project was brought to the
City's attention prior to bids being let. AE2S, upon receipt of bids also promptly notified the City that
EIM was listed as the apparent low bidder for electrical contractor work.
EIM is a company separate from Advanced Engineering and Environmental Services, Inc. but which is
wholly -owned by the same holding company Advanced Elements, Inc.
In order to provide assurance to the City that AE2S will oversee the work done by EIM pursuant to the
terms of its professional services agreement with the City, AE2S hereby states and agrees as follows:
1. That there is sufficient separation between the two companies so as not to impair AE2S's ability
to review and recommend corrections (if necessary) regarding the work of EIM on the Project.
2. That EIM has not been provided from AE2S any additional information not provided to other
subcontractors that would unfairly benefit EIM in malting a bid to the general contractor.
3. That AE2S will fairly and impartially review EIM's work during the Project.
4. In the event that any issue arises regarding EIM's work or AUS's role as project engineer that
could be perceived as a conflict of interest on the part of either entity, that issue will be
immediately brought to the City's attention.
5. In the event that problems or issues arise with the work undertaken by EIM or AUS's services
related to EIM which the City, at its sole discretion, determines raise issues of, objectivity; the
City may hire other professionals to undertake the review or observation of EIM work, and the
costs of any additional professionals hired by the City will be borne by AE2S, up to the amount
of AE2S's electrical construction and instrumentation and control administration fee. AE2S
agrees that it will abide by and institute any findings or recommendations made by said third
party professionals regarding EIM work on the Project.
Dated:
Advanced jagineering arm vironmental Services, Inc.
_
Grant L. Meyer, P.E.
Its Client Program Leader
Advanced Engineering and Environmental Services, Inc.
Water Tower Place Business Center o 6901 East Fish Lake Road Suite 184 9 Maple Grove, MN 55369 ® (t) 763-463-5036 . If) 763-463-5037