Terminal Street Pumping Station Bid Award
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bids for the Reconstruction of the Terminal Street Pumping Station
DATE: July 31, 2008
Sealed bids were received for the Terminal Street Pumping Station Project. Water
Pollution Control Plant Manager Jonathan Brown recommends award of the contract to
the low bidder, Morse Electric, in the amount of $552,200.
Morse Electric requested that they be allowed to withdraw their bid because of an
internal estimating error prior to submitting the bid. Project Manager Steve Brown
advises that Morse Electric is the lowest responsive, responsible bid under the public
bidding law. In fact, the City requires a bid bond to ensure that bidders follow through
on their bids.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Z~; ~/
Micha C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jonathan R. Brown, Water Pollution Control Plant Manager
THE CITY OF
DUB E
Masterpiece on the Mississippi
July 23, 2008
MEMORANDUM
TO: Michael C. Van Milligen, City Manager
FROM: Jonathan R. Brown, WPCP Manager ~~
SUBJECT: Bids for the reconstruction of the Terminal Street Pumping Station
INTRODUCTION
The purpose of this memo is to transmit to you the results of the bids for the Terminal
Street pumping station reconstruction project.
BACKGROUND
The City Council authorized advertising for bids for this project at their June 16th 2008
council meeting, with a bid opening date of July 17th, 2008. There were four bids
received for the project. The bids are as follows:
Firm Lump Sum Bid Bid Alternate No. 1
Morse Electric $552,200.00 $39,700.00
A&G Electric $688,500.00 $39,000.00
Westphal Electric $698,000.00 $40,900.00
Giese Sheet
Metal Electric Div. $778,700.00 $33,700.00
DISCUSSION
The engineer's estimate for the project was for $559,000. The low bid for the project
was submitted by Morse Electric in the amount of $552,200.
This project will use funding from one CIP in the fy08 budget and two from the fy09 CIP
budget as follows;
Fy08 Terminal Street Electrical: $200,000
Fy09 Standby Generation: $170,000
Fy09 Terminal Street Gates and Valves $185,000
This gives a total amount for the project of $555,000.
RECOMMENDATION
Based on review of the bids, it is the recommendation of the Water Pollution Control
Plant staff that the contract for the Terminal Street pumping station project be awarded
to Morse Electric for the amount of $552,200.00
ACTION TO BE TAKEN
It is requested that the attached resolutions for Adopting Plans and Specifications,
Awarding Construction Contract, and Approving Construction Contract be approved by
the City Council.
Attachments:
cc: Jenny Larson, Budget Director
Dubuque
THE CITY OF i
DuB
E ~ .~
Masterpiece on the Mississippi
2007
TO: Michael C. Van Milligen, City Manager
FROM: Steve Sampson Brown, Project Manager ,~~~ ~~ ~~ ,._._
SUBJECT: Terminal Street Pumping Station
DATE: July 31, 2008
INTRODUCTION
I was asked to review the bid submitted by Morse Electric for the Terminal Street
Pumping Station Project due to several questions that came up after the bids
were opened.
DISCUSSION
In working with Water Pollution Control Plant Manager Jonathan Brown, Asst.
City Attorney Tim O'Brien, City Attorney Barry Lindahl, and City Engineer Gus
Psihoyos, the details of the bid submitted by the apparent low bidder Morse
Electric were reviewed. The following was concluded:
• Morse Electric failed to acknowledge an addendum that was issued for
the project on their bid form. The design consultant for the project,
Strand Associates, has estimated the value of the addendum at
approximately $5,000. An addendum of this value is considered a minor
change to the bid documents and would not be considered a substantial
change to the contract documents and thus would have impacted the bid
results. Since Iowa State Code does not require acknowledgement of
addendums on bid forms, it is at the sole discretion of the City to
determine if an omission of an addendum on a bid form is of any
consequence.
• Morse Electric has sent a letter (see attached) to Strand Associates
requesting that Morse be allowed to withdraw its bid for the project. The
letter claims that the substantial difference in its apparent low bid
compared to the other bids is a result of an internal estimating error prior
to its bid submittal. While this occurrence is unfortunate, Morse Electric's
~'
bid remains the lowest responsive, responsible bid under the public
bidding law, Chapter 26 of the Iowa Code .
CONCLUSION
Based on the information presented above, it is recommended that the City
proceed with awarding the Terminal Street Pumping Station Project to Morse
Electric.
If you have any further questions regarding this information, please contact me at
589-4272.
Attachment(s)
SSB\ssb
cc: Barry Lindahl -City Attorney
Gus Psihoyos -City Engineer
Jonathan Brown -Water Pollution Control Plant Manager.
F:\SBrownlProjects\Misc. Responses\Water pollution control plant -Morse bid.doc
1
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Electric, Ina.
®395 5. Main St, Dubuque. IA 52001 ^ 1390 Gateway Blvd., Beloit, WI 53511 1\ T 563.556.0828
A Morse Group Company
July Zg, zoo8
Strand Associates Inc.
91o West Wingra Drive
Madison WI 53715
Attn: Chris Haase
^SOOW.SouthSt..Freeport,IL61032 ^45825hepherdTtail,RotkrordlL61103 F 563.556.7431
Re: Terminal Street Pumping Station Project
Chris:
1 am regretfully informing you that Morse Electric wishes to withdraw its bid on the
Terminal Street Pumping Station Project.
As per our earlier telephone conversation, we did not receive any of the control package
bids until about a half hour before bid time. In our haste to put together the bid we forgot
to add inthe z - 30o hp motors, motor ring bases and shaft rebuilding. This would have
increased our bid by $148,000.00, explaining our low bid differential.
I also noticed that we did not mark on the bid form that we acknowledged the
addendums, and I question in fairness to the other bidders if our bid should have even
been read.
I apologize for this situation, and any inconvenience this may cause The City of Dubuque
and Strand Associates.
Sincerely,
MORSE ELECTRIC, INC.
Dr,~u~i,: D~ettel
Dennis Dietzel
Manager
Committed to Excellence
Powering Your Future -From 0 to 345,Oi00 Voits
www, themorsegroup. corn
RESOLUTION NOo 262-08
RESOLUTION ADOPTING PLANS AND SPECIFICATIONS
Whereas, on the 16t" day of July, 2008, plans, specifications, form of
contract and estimated cost were filed with the City Clerk of Dubuque, Iowa for
the Terminal Street Pumping Station Improvements Project.
Whereas, notice of hearing on plans, specifications, form of contract, and
estimated cost was published as required by law.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
That the said plans, specifications, form of contract and estimated cost are
hereby approved as the plans, specifications, form of contract and estimated cost
for said improvements for said project.
Passed, adopted and approved this 4th day of August , 2008.
Roy D. Buol, Mayor
Attest:
Jearine F. Schneider, CMC, City Clerk
RESOLUTION NO. 263-08
A1lVAR®ING CONSTRUCTION CONTRACT FOR THE TERMINAL STREET
PUMPING STATION IMPROVEMENTS PROJECT
Whereas, sealed proposals have been submitted by contractors for the
Terminal Street Pumping Station Improvements Project pursuant to Resolution
No. 201-08 and notice to bidders published in a newspaper published in the City
of Dubuque, Iowa on the 17th day of June , 2008.
Whereas, said sealed proposals were opened and read on the 17th day of
July, 2008, and it has been determined that the bid of Morse Electric of Dubuque,
Iowa, in the amount of $552,200 was the lowest bid for the furnishings of all
labor and materials and performing the work as provided for the plans and
specifications.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
That the contract for the above improvements be awarded to Morse
Electric and the Manager be and is hereby directed to execute a contract on
behalf of the City of Dubuque for the complete performance of the work.
BE IT FURTHER RESOLVED:
That upon the signing of said contract and the approval of the contractor's
bond, the City Treasurer is authorized and instructed to return the bid deposits of
the unsuccessful bidders.
Passed, approved and adopted this 4th day of August , 2008.
Roy D. B ol, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk
RESOLUTION NO. 264-08
APPROVING CONSTRUCTION CONTRACT WITH FOR THE TERMINAL
STREET PUMPING STATION IMPROVEMENTS PROJECT
Whereas, the City Council by Resolution No. 201-08 awarded the
construction contract for the Terminal Street Pumping Station Improvements
Project to Morse Electric; and
Whereas, Morse Electric has submitted the attached executed contract
and bond.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
1. The contract and bond attached hereto are hereby approved.
2. The City Manager is hereby authorized and directed to execute the
contract on behalf of the City of Dubuque.
Passed, approved and adopted this 4th day of August , 2008.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, CMC, City Clerk