Awarding the Water Distribution System Pressure Zone 2 Improvments Roosevelt Water Tower Project Copyrighted
April 1 , 2019
City of Dubuque Action Items # 3.
ITEM TITLE: Awarding the Water Distribution System Pressure Zone 2
Improvements: Roosevelt Street 1.25 MG Elevated Water
Tower Project
SUMMARY: City Manager recommending award of the Water
Distribution System Pressure Zone 2 Improvements:
Roosevelt Street 1.25 MG Elevated Water Tower Project
Contracts A and B, pending approval by the Department of
Natural Resources State Revolving Fund agency.
RESOLUTION Awarding the public improvementcontracts
for the Water Distribution System Pressure A one 2:
Roosevelt Street 1.25 Million-Gallon, elevated Water Tower
Projects Contracts A and B.
SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Water Distribution System Pressure Zone 2 City Manager Memo
Improvements-MVM Memo
ProjectAward Staff Memo Staff Memo
Award Resolution Resolutions
THE CITY OF Dubuque
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Masterpiece on the Mississippi Z°°'�w'2
7A13 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Water Distribution System Pressure Zone 2 Improvements:
Roosevelt Street 1 .25 MG Elevated Water Tower Project Award
DATE: March 25, 2019
Water Department Manager Denise Blakeley Ihrig recommends City Council
authorization of award, pending approval by the Department of Natural Resources State
Revolving Fund agency, of the Water Distribution System Pressure Zone 2
Improvements: Roosevelt Street 1 .25 MG Elevated Water Tower Project as follows:
Contract A be awarded to CB&I in the amount of$2,928,600 for a 1 .25 MG as
designed; and
Contract B be awarded to Portzen Construction in the amount of$986,620
The total of both Contracts A and B for the project is $3,915,220, which is $10,780 or
0.28°k under the total engineer's estimate of probable cost.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
�� �� ��
Mic ael C. Van Milligen �� �
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Denise Blakeley Ihrig, Water Department Manager
THE CITY OF Dubuque
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All-America City
UB E � r
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Masterpiece on the Mississippi 200,.2012.2013
T0: Michael C. Van Milligen, City Manager
FROM: Denise Blakeley Ihrig, Water Department Manager
SUBJECT: Water Distribution System Pressure Zone 2 Improvements:
Roosevelt Street 1.25 MG Elevated Water Tower Project Award
DATE: March 22, 2019
PURPOSE
The purpose of this memorandum is to authorize award, pending approval by the
Department of Natural Resources State Revolving Fund (SRF) agency, of the Water
Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1.25 MG
Elevated Water Tower Project.
BACKGROUND
The City of Dubuque is responsible for providing high quality, reliable water supply
meeting the requirements established by state and federal government agencies. The
City of Dubuque treats and distributes an average of 7.2 million gallons per day to over
23,500 customers through more than 320 miles of water main piping.
Water Pressure Zones
The water pressure areas or zones identified as either being boosted or reduced
typically follow the natural topography within the City. There are currently nine water
pressure zones including the latest additions of the sixth and seventh pressure zones
supplying the region south toward the Dubuque Airport, and zones eight and nine to
Barrington Lakes and the former Vernon water system. Lower pressures may be
experienced in some areas due to the challenges associated with the natural
topography, pressure losses associated with water main lengths, or economic
feasibility.
Pressure Zone 2 Issues
During an evaluation of the City's distribution system in 1992 by Clapsaddle-Garber
Associates of Ames, lowa, several issues were identified in Zone 2 as needing attention
including low pressure and flows.
In addition to working with Clapsaddle — Garber Associates, the City has also been
assisted by Strand Associates, Inc. of Madison, Wisconsin and IIW, P.C. of Dubuque,
lowa and has progressed toward finding efficient and economic solutions to manage the
low-pressure issues experienced in Zone 2, along with a need to provide improved
flows during fire flow conditions. Over a twenty-year period, the area has experienced
residential development growth, and during this time, IIW has performed several
distribution system analyses to assist the City with direction on how to better serve new
development and existing property owners.
Zone 2 pressures are currently provided by the Eagle Point Park elevated water tower.
It has a volume of 500,000 gallons with an overflow elevation of 935 feet above mean
sea level. Water is pumped into the second pressure zone from two locations, the water
treatment plant and the Stafford Street booster station.
Zone 2 Reports
An engineering report prepared by IIW in 2002 titled 'Intermediate Pressure Zone:
Replacement Water Tower Site Evaluation' evaluated the second pressure zone and
specifically identifies where and how the pressures can be improved. The report
identifies the elevation of the overtlow at the Eagle Point Park tower as limiting the
available water pressure in the zone; most notably the pressure at the highest point
along Roosevelt Road is recorded between 20 and 25psi. This is problematic when
looking to achieve system pressures of 60 to 80 psi with a minimum working pressure of
35psi to serve current, new, and future developments.
Following the siting evaluation, the City was presented with an opportunity to purchase
land along Roosevelt. In 2010, the City purchased an approximate 1 .3-acre parcel
located at 3301 Roosevelt Street for the proposed construction of a water tower.
A 2008 report also by IIW, evaluates all of the pressure zones including Zone 2 and
looks at the water storage and pressure availability City-wide. Again, the 2008 report
identifies the pressure issues in Zone 2. More importantly, the 2008 study
demonstrates the pressure relationship and connection between the zones and that
each zone does not function independently.
Zone 2 and 3 Analysis
Reviewing the past and current analysis of Zone 2, the relationship with pressure Zone
3, which encompasses the majority of the area on the bluff to the west and to the south,
was taken into consideration when developing the strategy and solutions for Zone 2
pressures and flows.
The most recent analyses, completed by IIW in 2013 and 2014, includes support of an
elevated tower to alleviate the flow and pressure issues experience in Zone 2 and
illustrates how an elevated tower in Zone 2, if sized accordingly, would be able to be
connect to Zone 3.
The 2013 report goes further and describes not only current solutions to address low
pressure and fire suppression in Zone 2, but also provides a preliminary examination of
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Zone 3 currently served by the College Street elevated tower, Asbury standpipe and
Pennsylvania Standpipe, and illustrates how a tower in Zone 2 would be able to provide
necessary water storage when connected to Zone 3. In all reports, the solution
presented to addressing low pressure, fire suppression, preparation for growth, and
enhancing Zone 3, is the installation of an elevated water tower.
In July 2017, with support from the City Manager and Council, the City advanced the
option to obtain a planning and design loan from the State of lowa Revolving Fund
(SRF) program in the amount of$475,000. The planning and design was completed by
IIW and in June 2018, a preliminary engineering report (PER) was submitted to the lowa
DNR for review and approval of a 1 .25MG elevated storage tower, pressure reducing
stations, water main improvements, and water treatment plant pump improvements.
DISCUSSION
lowa Department of Natural Resources — PER
On January 17�h, 2019 the lowa DNR issued approval of the PER submitted in June
2018. The notice approved lowa SRF funding in support of a 1 .OMG elevated storage
tower and not the recommended 1 .25MG elevated storage tower. However, in reviewing
the original PER there are clear benefits to the tower being sized at 1 .25MG.
Zone 2 and Zone 3 Benefits
The distribution system analysis focused on site selection, tower sizing, overflow
elevation, and fire suppression needs. The Roosevelt Street location in Zone 2 was
selected due its proximity to two 12-inch diameter mains, land and site access
availability, the overall site elevation, and its proximity to drainage facilities in the event
of an overflow and drainage associated with tank maintenance. Sizing of the tower has
varied between 750,000 gallons and 1 .25 million gallons.
Sizing the tower at 1 .25 million gallons would replace the functionally obsolete 0.5
million-gallon Eagle Point Park Elevated Tower and the Stafford Street booster pump
station and provide maximum fire flows and normal usage during a major fire and
accommodation of service area expansion.
In addition, Zone 2 could be connected to Olympic Heights subdivision (Zone 5) and the
Olympic Heights booster pump station could be taken out of service reducing energy,
operation and maintenance costs and a pressure zone. The Olympic Heights pump
station is required to run 24 hours per day to provide daily usage.
If and when Zones 2 and 3 are to be combined, water fed from the north with a 1 .25-
million-gallon tank would improve flow rates and reliability into Zone 3. The overflow
elevation of the proposed Roosevelt Tower has been set to match the overflow
elevations of Zone 3 storage facilities, including College Street tower. When a
connection between Zone 2 and Zone 3 is established, the overflow elevations would
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require analysis of not only Zones 2 and 3, but also Zone 1 located east of the bluff and
served by the West 3�d Street in ground reservoir and Park Hill Standpipe.
As Zone 1 and Zone 2 could both provide water supply and pressure to Zone 3, an
analysis of how these zones can work together will enable to the City to make effective
and economical water storage improvements in the future. Such storage improvements
would be scheduling of water storage tank coating maintenance and eliminating water
storage deficiencies present in Zone 3. The DNR regulations require water storage must
be equal to the average daily use and/or the recommended fire protection volume.
While excess storage is discouraged due to water quality issues that may arise,
insufficient storage is equally as important.
The lowa DNR supports and is in general agreement with the concepts in the PER
including the connection of Zone 2 to Zone 3 allowing for the proposed water tower to
be common to the demands of both zones.
Future Savings
In addition, to the widespread pressure and fire suppression benefits of installing an
elevated tower on Roosevelt Street in Zone 2, with eventual connection to Zone 3, there
are multiple cost savings. In 2010 and 2015, KLM Engineering Incorporated of
Minnesota, conducted an inspection of all City owned water storage facilities. The
reports indicate needed maintenance and improvements to several of the City of
Dubuque's water storage tanks and reservoirs.
In Zone 2, the 500,000 gallon Eagle Point Park water tower was identified as needing
new internal and external tank coatings along with several structural repairs estimated
at $692,000.00. In Zone 3, the 750,000 gallon College Street water tower was identified
as requiring structural repairs and interior and external protective coatings estimated at
$929,000.00. These projects have not yet been budgeted.
The Eagle Point Park water tower project will no longer be required with installation of a
new Roosevelt Street tower. The improvements to College Street tower were placed on
hold until completion of the analysis of the storage and distribution system. Since
completion of the distribution hydraulic model, the College Street water tower will not be
hydraulically connected to the proposed Roosevelt Street Water Tower, meaning
College Street water tower will need to remain in service, and will be budgeted for
improvements in upcoming budget cycles. The proposed Roosevelt Street Water Tower
is however hydraulically connected to Asbury Standpipe and it is recommended that the
standpipe be taken out of service prior to any future rehabilitation following installation
of the Roosevelt Street water tower.
As part of the Phase 1 project, Stafford Street pump station will no longer be needed
saving approximately $2,200 per year in operational expenses. Olympic Heights
pumping station will no longer be required following installation of the water tower and
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connection of Zone 2 to Zone 3, saving approximately $7,800 per year in operational
expenses.
The estimated short-term savings associated with completing Phase 1 , include no
longer performing maintenance and repairs to the Eagle Point Water tower and the
Stafford Street pump station and are estimated to be $695,000.00.
Project Scope
The scope of the Project is as follows:
Contract A: Roosevelt Street Water Tower and Water Distribution Improvements. The
extent of the work consists of the construction of a 1 .25 MG water tower and associated
water main installation. The project also includes various work associated with the site
improvements including: earthwork, storm sewer, sanitary sewer service, clearing and
grubbing, PCC pavement, seeding, and erosion control. Traffic control is included in the
project to maintain a safe work site for both the Contractor and the public.
Contract B: Eagle Point Water Treatment Plant and Water Distribution Improvements.
The extent of the work consists of the construction of four pressure control stations. Two
of the stations will be cast-in-place, 10-foot by 14foot-3inch structures, and two of the
stations will be 6-foot diameter precast manhole structures. The stations will include
control valves and process piping. The construction of the pressure control stations will
include surface restoration including PCC and HMA pavement patching and associated
traffic control. Also included in the project is process piping modifications and pump
replacement at the Eagle Point Pumping Facility for pumps#6 and #7 which involves
controls and electrical improvements.
On February 18�h, 2019, the City Council authorized via Resolution 60-19 the City Clerk
to advertise for proposals and established a Public Hearing date. The Public Hearing
was held on March 4�h in council chambers at the Federal Building, and was held
without comment.
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BID RESULTS
The project was publicly advertised for bid on February 22, 2018. Sealed bids were
received and publicly read aloud at 230 PM on March 21 , 2019. In attendance were
City of Dubuque Water Department staff along with representatives from IIW, P.0 and
representatives from construction firms bidding the project.
A summary of Contract A: Roosevelt Street 1.25 MG Water Tower and Water Distribution
Improvements bid results are:
No. Bidder Total Price % Over/(Under)
Engineer's Est.
of$2,900,000
1 CB & I (MCDERMOTT) $2,928,600 0.98%
2 Caldwell Tanks $2,937,000 1 .26°k
3 Landmark Structures $2,957,000 1 .93°k
4 Phoenix Fabricators & Erectors $3,076,000 5.72°k
A summary of Contract B: Eagle Point Water Treatment Plant and Water Distribution
Improvements bid results are:
No. Bidder Total Price % Over/(Under)
Engineer's Est
of$1,026,000
1 Portzen Construction $ 986,620 (3.99°k)
2 Tschiggfrie Excavating $1,127,485 9.00°k
3 Top Grade Excavating $1,135,860 9.67°k
The apparent low bidder for the Contract A is CB&I, LLC of Plainfield, Illinois in the
amount of $2,928,600; this amount is $28,600 or 0.98°k over the engineer's estimate of
probable cost. Portzen Construction of Dubuque, lowa submitted the low bid in the
amount of $986,620 for Contract B; this amount is $39,380 or 3.99°k under the
engineer's estimate of probable cost. The total of both contracts A and B for the project
is $3,915,220, which is $10,780 or 0.28°k under the total engineer's estimate of
probable cost.
Contract A was bid requesting costs for both for a 1 .OMG and a 1 .25MG elevated water
tower. The evaluation of the bids is based on the base bid size which is 1 .25 MG. The
apparent low bidder CB&I provided a price reduction of$171 ,000 should the City select
a 1 .OMG elevated tower.
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BUDGETIMPACT
The State Revolving Loan program along with Water Department cost savings are
available to fund the Roosevelt Street tower project.
Construction - $3,926,000
The project estimate of$3,926,000 included the installation of a 1 .25-million-gallon
composite style water tower, associated water main improvements, pressure reducing
stations, and water treatment plant pump replacements. The engineer's estimate of
probable cost is as follows:
Description Estimated Cost
1.25 MG Elevated Storage Tower $2,285,000
(Composite) (1.OMG SRF Eligible Portion)
1.25 MG Elevated Storage Tower $300,000
(Composite) (0.25MG Local Funds)
Tower Site Improvements (SRF Eligible) $315,000
Distribution System Improvements (SRF $699,000
Eligible)
Distribution System Improvements — $67,000
Residential PRV installation (Local Funds)
Water Supply (Water Treatment Plant) $260,000
Improvements (Pumps 6 and 7) (SRF
Eligible)
Revised 2019 Total Estimate $3,926,000
Contract A as bid in the amount of$2,928,600 and Contract B as bid in the amount of
$986,620, total $3,915,220, is $10,780 or 0.28°k under the total engineer's estimate of
probable cost of$3,926,000.
Non-Construction Proiect Costs Include
Non-construction costs are included in this award report to provide an update on the
known and anticipated costs identified at the time of bidding Contract A and Contract B.
The budget impact of Contracts A and B as they relate to the overall project and
identified available funding is described in the following section, Project Cost and
Funding.
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Design and Engineering - $475,000
Using the State of lowa Revolving Fund (SRF) program, the Roosevelt Street Water
Tower project qualified for a Planning and Design Loan, which was secured in the
amount of$475,000. This cost remains unchanged.
Per the SRF program, Planning & Design Loans cover costs incurred in the planning
and design phase of a water infrastructure project. The loan is zero (0) percent interest
for up to three years and requires no initiation or servicing fees. Eligible costs include
engineering fees, archaeological surveys, environmental or geological studies, and
costs related to project plan preparation.
The loan may be rolled into the State Revolving Fund (SRF) construction loan or can be
repaid when permanent financing is committed.
Legal Expenses, Land and Easements, Construction Inspection, Contingencies,
and Loan Initiation Fee - $826,672
The legal expenses are estimated to be $25,000.
Land and easements values were not determined at the time of the PER; however, a
value was included in the SRF Intended Use Plan Application of$4,000. This value was
based on the preliminary design. In 2019, the revised easement expense is estimated to
be $17,000, plus the cost of onsite improvements estimated to be $25,432. These
easements are currently in the process of being secured and at this time are not part of
the critical path for bidding. Work will be necessary in these easement areas no later
than April 2020, allowing sufficient time to finalize the easements.
The 2017 cost estimate included $180,000 for construction inspection, this is being
increased to $281 ,500 to reflect the level of inspection needed and startup operation
assistance. Water tower coatings if not correctly inspected at the factory and onsite can
result in premature failure requiring increased frequency of replacement. The coatings
to ensure they are applied correctly should be inspected by NACE certified inspector.
The proposed construction inspection expense includes funding for two inspection
contracts, one for work associated directly with the tower and its coasting, the second
with all other site work. In addition, the pressure reducing stations will require onsite
start-up and coordination with assistance from the design engineer.
The contingency is estimated to be $454,370.
The loan initiation fee based on the total project costs as described above is $23,370.
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Project Cost and Funding
Contracts A and B have been identified in the summary below and total $3,026,000:
. - � . � - � . � � - � .
Legal Legal expenses associated with the SRF $25,000
SRF Loan
Land and Land and Easements SRF $4,000
Easements
Construction CONTRACTA: 1 .25 MG Elevated SRF $2,285,000
Storage Tower (Composite) (1 .OMG
SRF Eligible Portion)
Construction CONTRACT A: Tower Site SRF $315,000
Improvements
Construction CONTRACT B: Distribution System SRF $699,000
Improvements
Construction CONTRACT B:Water Supply SRF $260,000
(Water Treatment Plant)
Improvements (Pumps 6 and 7)
Engineering Onsite inspection SRF $180,000
Construction
Design & Engineering Planning and Design SRF $475,000
Engineering
Total Estimate SRF Eligible $4,243,000
Construction CONTRACT A: 1 .25 MG Elevated Local Funds $300,000
Storage Tower (Composite)
(0.25MG additional capacity)
Construction CONTRACT B: Distribution System Local Funds $67,000
Improvements — Residential PRV
installation
Engineering Onsite Inspection Local Funds $101 ,500
Construction
Land and Land and Easements Local Funds $38,432
Easements
Total Estimate Requiring Local Funds $506,932
Contingency Project contingency SRF Eligible $454,370
Loan Fee Loan Initiation Fee SRF Eligible $23,370
Total Project Cost $5,227,672
The projects shown as using local funds are those not eligible for SRF funding as part of
this project but have been identified as necessary for completion of the full scope of the
project.
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The projects are to be funded using State Revolving Fund loan monies and Local Funds
from Water Department project savings. The Roosevelt Water Tower Project available
funding is as follows:
� - � . . � � � � � . � - �
Water Fund Cash from project Local Funds $1 ,412,260
savin s
IFA State Revolving Fund Loan SRF $4,697,370
Total Fundin Available $6,109,630
A balance of$2,194,410 would be available for construction contingency and non-
construction activities as identified.
Working with Jennifer Larson, Budget Director, funding for the project has been
reviewed and verified.
The following projects were identified in 2017 to have bond proceeds from previously
issued debt that will be used to fund a portion of the Roosevelt Street Water Tower
project:
Pro�ect Amount
Main Extension Annexation $421 ,700
Roosevelt Road Main Extension $546,600
Generator Savin s $100,000
Manson Road Water Main $154,900
Online Process Anal zer savin s $7,760
SRF Green Alle savin s $33,600
Timber Rid e Water Main savin s $147,700
Total $1,412,260
Ms. Larson worked with the City's financial advisor on cash flows during the Fiscal Year
2020 budget process and again to update the cash flows for the expenses determined
ineligible to be reimbursed by the State Revolving Loan Fund and the increased costs.
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There is no change in the FY 2020 recommended rates in FY20-FY24 for the additional
cost and the costs ineligible for the SRF loan. The projected rate increases included in
the FY 2020 budget recommendation are as follows:
FY19: No change (3°k rate increase)
FY20: 5.00°k
FY21 : 4.25°k
FY22: 3.00°k
FY23: 3.00°k
FY24: 3.00°k
The remainder of the Roosevelt Water Tower project will be funded through an lowa
Finance Authority State Revolving Fund loan including the planning and design loan in
the amount of$475,000. An lowa Finance Authority State Revolving Fund construction
loan in the amount of$4,630,050 was requested in August 2018, which has a 2°k
interest rate. Since the construction loan was requested, ineligible costs for the SRF
loan were identified which will reduce the amount of debt issued by $406,958. The total
amount of debt being issued will not count against the City's statutory debt limit because
it is revenue debt.
RECOMMENDATION
IIW, P.0 presented an award recommendation for the Water Distribution System
Pressure Zone 2 Improvements: Roosevelt Street 1 .25 MG Elevated Water Tower
Project and recommends Contract A be awarded CB&I in the amount of$2,928,600 for
a 1 .25MG as designed; and Contract B be awarded to Portzen Construction of
Dubuque, lowa in the amount of$986,620. The total of both contracts A and B for the
project is $3,915,220, which is $10,780 or 0.28°k under the total engineer's estimate of
probable cost.
As identified in Budget Impact, the bids are within the engineer's estimate of probable
cost, and the project funding identified through the SRF loan and Local funds are
sufficient to support award of both Contracts A and Contract B in their entirety as bid.
TENTATIVE PROJECT SCHEDULE
Advertisement for Bids February 22, 2019
Notice of Hearing on Plans & Specifications February 22, 2019
Public Hearing March 4, 2019
Pre-bid Meeting March 7, 2019
Receipt of Bids March 21 , 2019
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Award of Contract April 1 , 2019
Completion Date — Contract B November 1 , 2019
Completion Date — Contract A November 1 , 2020
REQUESTED ACTION
I respectfully request that the City Council authorize award, pending approval by the
Department of Natural Resources State Revolving Fund (SRF) agency, of the Water
Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1 .25 MG
Elevated Water Tower Project, Contract A and Contract B, through adoption of the
attached resolution.
cc: Jenny Larson, Budget Director
Gus Psihoyos, City Engineer
Kerry Leppert, Water Engineering Assistant
Brant Schueller, Water Distribution Supervisor
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RESOLUTION NO. 128-19
AWARDING PUBLIC IMPROVEMENT CONTRACTS THE WATER DISTRIBUTION
SYSTEM PRESSURE ZONE 2: ROOSEVELT STREET 1.25 MILLION GALLON
ELEVATED WATER TOWER PROJECT CONTRACTS A AND B
Whereas, sealed proposals have been submitted by contractors for the Water
Distribution System Pressure Zone 2 Improvements: Roosevelt Street 1.25 MG
Elevated Water Tower Project, identified as Contract A: Roosevelt Street Water Tower
and Water Distribution Improvements; and Contract B: Eagle Point Water Treatment
Plant and Water Distribution Improvements, (the Project) pursuant to Resolution No. 60-
19 and Notice to Bidders published on the City of Dubuque, Iowa website and a
contractor plan room service with statewide circulation on the 22th day of February,
2019.
Whereas, said sealed proposals were opened and read on the 21st day of March,
2019 and it has been determined that CB&I, LLC of Plainfield, Illinois with a Contract A
bid in the amount of $2,928,600; and that Portzen Construction, Inc. of Dubuque, Iowa,
with a Contract B bid in the amount of $986,620 are the lowest responsive, responsible
bidders for the Project.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
That Public Improvement Contracts for the Project are hereby awarded, subject to
approval by the Department of Natural Resources SRF agency to CB&I, LLC of
Plainfield, Illinois and separately to, Portzen Construction, Inc. of Dubuque, Iowa, and
the City Manager is hereby directed to execute Public Improvement Contracts on behalf
of the City of Dubuque for the Project, following such approval.
Passed, approved and adopted this 1st day of April 2019.
Attest:
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Kevin(S. Firnstahl, C C, City Clerk
Roy D. Buol, Mayor