Bee Branch Stormwater Pumping Station Project (Phase V of the Bee Branch Watershed Flood Mitigation Project) – Reject Bids Copyrighted
June 6, 2022
City of Dubuque Action Items # 04.
City Council Meeting
ITEM TITLE: Bee Branch Stormwater Pumping Station Project (Phase V of the Bee
Branch Watershed Flood Mitigation Project)— Reject Bids
SUMMARY: City Manager recommending City Council adoption of the resolution
rejecting the bids for the Bee Branch Stormwater Pumping Station
Project.
RESOLUTION Rejecting Bid Proposals received for the Bee Branch
Stormwater Pumping Station Project
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Reject Bids Bee Branch Stormwater Pumping Station City Manager Memo
Project-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Dubuque
THE CITY OF htbd
All-America City
DUB E
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Masterpiece on the Mississippi 201•7*20 9
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bee Branch Stormwater Pumping Station Project (Phase V of the Bee
Branch Watershed Flood Mitigation Project) — Reject Bids
CIP# 3402608 and CIP#7202608
DATE: June 1 , 2022
City Engineer Gus Psihoyos is recommending City Council adoption of the resolution,
rejecting the bids for the Bee Branch Stormwater Pumping Station Project.
In May of 2022, the City Council approved the estimated cost for the Bee Branch
Stormwater Pumping Station Project, in the estimated amount of $15,790,000.00.
Sealed bids for the Bee Branch Stormwater Pumping Station Project (Phase V of the
Bee Branch Watershed Flood Mitigation Project) were received on May 19, 2022. There
were only two bids. The low bid was $24,650,000, 56.1% over the Engineer's Estimate.
There are several factors that may have contributed to higher than expected construction
costs. Some possible reasons are as follows:
• Timing of letting. Bidding work for the upcoming construction season is typically
better done in the preceding fall or winter. With a letting in the spring, contractors
are more likely to have their work lined up for the coming construction season.
• Contractor backlog. It is currently difficult to find available contractors (and
subcontractors) resulting in a "bidders' market".
• Construction time frame. The EDA grant required completion of the work by April
of 2024. Condensing the construction schedule can lead to higher costs.
• Availability of construction materials. For a myriad of reasons, labor and material
prices have been on the rise. In fact, suppliers are no longer guaranteeing their
price quotes given at the time of the bid letting. As a result, contractors must
hedge against material inflation costs. For example, the price of steel increased
by 18% over a two-month period. And a contractor cannot lock in the price until
the supplier begins manufacturing the contractor's order.
The two bids received were within 1.4% of each other, suggesting that the bids reflect
the true cost of the project if awarded today. Rebidding the project with the same design
would likely result in similar results.
Prior to bidding, the idea of granting more time to complete the improvements was
discussed with EDA representatives. They indicated that the April 2024 deadline was a
hard deadline. As a result, one of the downsides to rejecting the bids it that the City may
lose the $2.5 million EDA grant as the improvements will not be constructed by the
grant-imposed deadline. After taking the time to value engineer the current design,
consider other design alternatives, and the City is prepared to move forward with a
design, it will be in position to again seek funding assistance, or possibly a project
phasing option might allow the city to use the EDA grant.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
IA/444 k:Aighi,-,...„
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
2
Dubuque
THE CITY OF bland
AII•Ameriea City
DUB E
11111 '
Masterpiece on the Mississippi 2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
SUBJECT: Bee Branch Stormwater Pumping Station Project (Phase V of the Bee
Branch Watershed Flood Mitigation Project) — Reject Bids
CIP# 3402608 and CIP#7202608
DATE: May 31, 2022
INTRODUCTION
The attached resolution authorizes the rejection of the bids received for the Bee Branch
Stormwater Pumping Station Project (Phase V of the Bee Branch Watershed Flood
Mitigation Project).
BACKGROUND
In November of 2013, the City Council passed Resolution 335-13 adopting the 2013
Drainage Basin Master Plan Amendment. The amended Drainage Basin Master Plan
outlined several improvements throughout the Bee Branch watershed to mitigate the
effects of future flooding and disasters. Collectively, the improvements form the basis of
the multi-phase Bee Branch Watershed Flood Mitigation Project outlined below.
Table 1. Twelve phases of the Bee Branch Watershed Flood Mitigation Project
Phase Description Status
1 Carter Road Detention Basin Complete
2 West 32nd Street Detention Basin Complete
3 Historic Millwork District Complete
4 Lower Bee Branch Creek Restoration Complete
5 Flood Mitigation Gate Replacement Under Design
6 Impervious Surface Reduction (Green Alleys) Under Design'
7 Upper Bee Branch Creek Restoration Under Construction2
8 22nd Street Storm Sewer Improvements Complete to N. Main St.3
9 Flood Mitigation Maintenance Facility Site Cleanup
10 North End Storm Sewer Improvements
11 Water Plant Flood Protection
12 17th Street Storm Sewer Improvements Complete to Heeb St.4
' 81 of the 240 alleys in the Bee Branch Watershed have been reconstructed as "green", pervious alleys.
Several are currently under design.
2The Upper Bee Branch Creek Restoration Project includes the improvements associated with the Upper
Bee Branch Railroad Culverts Project currently under construction.
3Design is complete to Kane Street.
4Design is complete to Angela St., 60% design to Kirkwood St., 30% design to Rosedale.
On December 4, 2013, the Iowa Flood Mitigation Board voted to approve the City's use
of $98,494,178 for the Bee Branch Watershed Flood Mitigation Project. On February 3,
2014 the City Council adopted Resolution 31-14 authorizing the execution of an
agreement with the State of Iowa Flood Mitigation Board and authorizing the City's use
of sales tax increment funding for the Bee Branch Watershed Flood Mitigation Project.
A great deal of the debt the City of Dubuque has incurred is for implementation of this
flood mitigation plan. The state grant funding and the subsequent debt issuances allow
much of the protection to be provided as soon as reasonably possible instead delaying
the benefits for 20 years or more. With a total estimated cost of $250 million, the Bee
Branch Watershed Flood Mitigation Project will prevent an estimated $582 million in
damages over the 100-year design life of the project. With more than $163 million in
funding assistance, for every dollar invested by Dubuque citizens it will prevent almost
seven dollars in flood damage.
On March 5, 2014 the City Council passed Ordinance 16-14 establishing the stormwater
utility fee rate structure necessary to fund the various phases and improvements
associated with the Bee Branch Watershed Flood Mitigation Project. The result was that
the lowering of rates previously for Fiscal Years 2015, 2016, 2017, 2018, 2019, 2020,
and 2021.
The City has been able to provide stormwater management services within the rate
structure established by Ordinance 16-14 which reflected that the billing rate for the
average homeowner was to increase by 6.76% in FY21 (from $8.29 per month to $8.85
per month). However, due to the uncertain economic impacts of the current COVID-19
pandemic, the rate structure was reconsidered for Fiscal Year 2021. With minor
adjustments to planned Capital Improvement Program projects, reducing some budgets
and delaying a few others, that the City was able to delay the 6.76% increased planned
for FY21 until FY22. With the adoption of Ordinance 21-20, the rate for the average
homeowner remained at $8.29 for FY21. With the adoption of Ordinance 10-21 , the fee
increased in FY22 to $8.85 per month.
The original scope of the Flood Mitigation Gate Replacement improvements involved
replacing the gate structure associated with the pumping facility on Kerper Boulevard
just south of 16th Street that functions as part of the floodwall/levee system. And the
FY15 and FY16 CIP budgets identified $2,100,000 to replace the flood gates. In
December of 2015, the City Council authorized the hiring of IIW, P.C. (now Origin
Design) for design and engineering services for the project. In addition, Origin Design
was to include improvements to the electrical system that energizes the pump station.
Finally, Origin Design was to identify and investigate possible modifications to the
existing 16th infrastructure that would "provide additional means for releasing water from
the Bee Branch retention under various circumstances such as when the gates are
open, when they are closed, and depending on the river stage."
In April of 2017, Origin Design presented a series of possible enhancements that
improved access to the facility; an updated, more reliable electrical service; and
provided space for the use of additional, temporary pumps to augment the existing,
permanent pumps. The estimated cost for the improvements exceeded $3.3 million,
2
considerably more than the budget. Due to the record rainfalls in 2010 and 2011 that
have impacted the Bee Branch Watershed, it was prudent to consider if even the
modest improvements were sufficient. Moreover, some of the facility elements (i.e., the
two 90,000 gallon per minute pumps) pre-date the construction of the floodwall/levee
system completed circa 1974. Therefore, staff from the Public Works and Engineering
Departments worked with Origin Design to further develop improvements to the facility
that would indeed improve drainage when the gates are open and when operating
under Mississippi "flood" conditions when the gates are closed. Of the five alternatives
analyzed, the improvements associated with the preferred alternative, now referred to
as the Bee Branch Gate & Pump Station Project, was selected because it would best
handle the severe flooding that has been occurring since 1999 and, in concert with the
Bee Branch Creek Restoration Project (including the Bee Branch Railroad Culverts
Project), would provide flood protection for the 500-year rainstorm.
The cost to build a new flood pumping station capable of handling flows from the Bee
Branch Creek was initially estimated to cost approximately $10 million. To better afford
the project improvements associated with all the phases of the Bee Branch Watershed
Flood Mitigation Project, and in particular the increased costs associated with the Bee
Branch Gate & Pump Station Project, the City sought additional financial assistance. In
December of 2018, the City Council adopted Resolution 368-18, approving an
application for $4,000,000.00 in U. S. Economic Development Administration (EDA)
grant funding for the 16th Street Detention Basin Flood Gates Project, otherwise known
as the Bee Branch Gate & Pump Station Project. The City was subsequently awarded
$2,500,000.00 in EDA grant funding for the Branch Flood Mitigation Gate & Pump
Station Project. In May of 2019, the City Council adopted Resolution 152-19, authorizing
entering into a Financial Assistance Award Agreement with EDA as necessary for the
City's use of $2,500,000 in EDA grant funding for the Bee Branch Gate & Pump Station
Project. The City Council also pledged "the amount of $6,635,000.00 from state sales
tax increment or local stormwater utility proceeds...." Per the Agreement, the project
must be complete by April 11, 2024.
In May of 2022, the City Council adopted Resolution 177-22, approving the plans,
specifications, form of contract, and estimated cost for the Bee Branch Stormwater
Pumping Station Project, in the estimated amount of$15,790,000.00. The estimate of
probable costs for the Project is as follows:
Construction Contract $15,790,000
Contingency 720,000
Engineering 2,400,000
Total Project Cost $18,910,000
DISCUSSION
Sealed bids for the Bee Branch Stormwater Pumping Station Project (Phase V of the
Bee Branch Watershed Flood Mitigation Project) were received on May 19, 2022. There
were only two bids. The low bid was $24,650,000, 56.1% over the Engineer's Estimate.
3
There are several factors that may have contributed to higher than expected construction
costs. Some possible reasons are as follows:
• Timing of letting. Bidding work for the upcoming construction season is typically
better done in the preceding fall or winter. With a letting in the spring, contractors
are more likely to have their work lined up for the coming construction season.
• Contractor backlog. It is currently difficult to find available contractors (and
subcontractors) resulting in a "bidders' market".
• Construction time frame. The EDA grant required completion of the work by April
of 2024. Condensing the construction schedule can lead to higher costs.
• Availability of construction materials. For a myriad of reasons, labor and material
prices have been on the rise. In fact, suppliers are no longer guaranteeing their
price quotes given at the time of the bid letting. As a result, contractors must
hedge against material inflation costs. For example, the price of steel increased
by 18% over a two-month period. And a contractor cannot lock in the price until
the supplier begins manufacturing the contractor's order.
The two bids received were within 1.4% of each other, suggesting that the bids reflect
the true cost of the project if awarded today. Rebidding the project with the same design
would likely result in similar results.
As stated previously, the improvements associated with the project have evolved from
simply replacing the gates, to replacing the gates and the pumps, to building a new
pump station to replace the existing pump station. Because the bids were almost $9
million more than the estimate (and corresponding project budget), taking a close look
at the design assumptions, perceived constraints, and project goals should be reviewed.
This will likely result in a different design approach. For example, a design using less
steel and concrete (two materials that have drastically increased over the past 18
months) would lower the project cost. A different design could also allow for phasing
construction work, allow for spreading the costs out over several years.
Prior to bidding, the idea of granting more time to complete the improvements was
discussed with EDA representatives. They indicated that the April 2024 deadline was a
hard deadline. As a result, one of the downsides to rejecting the bids it that the City may
lose the $2.5 million EDA grant as the improvements will not be constructed by the
grant-imposed deadline. After taking the time to value engineer the current design,
consider other design alternatives, and the City is prepared to move forward with a
design, it will be in position to again seek funding assistance.
BUDGET IMPACT
The Project is to be funded through a FY22 appropriation in the amount of $6,323,530
and an FY23 appropriation in the amount of $8,676,050, and FY24 appropriation in the
amount of $3,910,420. The funding summary is as follows:
4
CIP No. Fund Description Fund Amount
3402608 Bee Branch Gate & Pump Replacement Project $9,614,000
7202608 Bee Branch Gate & Pump Replacement Project $7,896,000
1022608 Bee Branch Gate & Pump Replacement Project 1 ,400,000
The funding plan for the improvements was established as follows:
State Sales Tax Increment Proceeds $9,614,000
Stormwater Utility Construction Funds 2,796,000
US EPA State Revolving Fund (SRF) Loan 2,600,000
US EDA Disaster Grant 2,500,000
DRA Distribution 1,400,000
TOTAL $18,910,000
To fund the project as outlined above, a rate increase to $9.00 was necessary in FY23
and an increase to at least $9.45 in FY24.
RECOMMENDATION
I recommend rejecting all bids received for the Branch Stormwater Pumping Station
Project to reconsider other design options to reduce costs and arrive at an affordable
project cost.
ACTION TO BE TAKEN
I respectfully request adoption of the attached resolution, rejecting the bids for the Bee
Branch Stormwater Pumping Station Project.
Prepared By Deron Muehring
cc: Jenny Larson, Director of Budget & Finance
Deron Muehring, Civil Engineer II
5
Prepared by Deron Muehring, Civil Engineer, 50 W. 13th St., Dubuque, IA 52001,(563)589-4276
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563)589-4100
RESOLUTION NO. 222-22
REJECTING BID PROPOSALS RECEIVED FOR THE BEE BRANCH STORMWATER
PUMPING STATION PROJECT
Whereas, competitive sealed bid proposals were submitted for the Bee Branch
Stormwater Pumping Station Project (the Project); and
Whereas, the competitive sealed bid proposals were opened and read on the 19th
day of May, 2022; and
Whereas, the City Council has deemed it advisable to reject all competitive sealed
bid proposals for the Project.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1 . The competitive sealed bid proposals for the Bee Branch Stormwater
Pumping Station Project are hereby rejected.
Section 2. The City Clerk is authorized and instructed to return the bid deposits
to unsuccessful bidders for the Bee Branch Stormwater Pumping Station Project.
Passed, approved, and adopted this 6th day of June 2022.
otA j_j .
Da T. Resnick, Mayor Pro Tem
Attest:
‘ .-Aa' r--
Trish L. Gleason, Assistant City Clerk