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Rejection of Bids - Kerper Boulevard Sanitary Sewer Reconstruction Project Copyrighted June 19, 2017 City of Dubuque Action Items # 2. ITEM TITLE: Rejection of Bids - Kerper Boulevard Sanitary Sewer Reconstruction Project SUMMARY: City Manager recommending that the City Council reject the bids received for the Kerper Boulevard Sanitary Sewer Reconstruction Project so the Engineering staff can re- evaluate the design and incorporate any cost saving measures. RESOLUTION Rejecting competitive bid proposal received for the Kerper Boulevard Sanitary Sewer Reconstruction Project SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Kerper Blvd Sanitary Sewer Reconstruction Project- City Manager Memo MVM Memo Staff Memo Staff Memo Resolution Resolutions THE CITY OF Dubuque fta B E I 11p y Masterpiece 012 the Mississippi 2007.2012«2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Kerper Boulevard Sanitary Sewer Reconstruction CIP 7102663 DATE: June 12, 2017 On May 15, 2017, the City Council initiated the public bidding process for the Kerper Boulevard Sanitary Sewer Reconstruction Project with an estimated construction cost of $3,762,675.00. Two bids were received for this project, with the low bid of $5,494,539.26 from Portzen Construction being 46.03% over the estimate. City Engineer Gus Psihoyos recommends the City Council reject the bids received for the Kerper Boulevard Sanitary Sewer Reconstruction Project so the Engineering staff can re-evaluate the design and incorporate any cost saving measures. The project will be rebid later this year when potentially a more competitive bidding environment exists for the next construction season. 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 Gus Psihoyos, City Engineer THE CITYOF Dubuque DUIIBQTE AD-AmedcaCiI` l I. Masterpiece on the Mississippi zoos•2012.20 L; TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer j�c SUBJECT: Kerper Blvd. Sanitary Sewer Reconstruction CIP 7102663 DATE: June 12, 2017 INTRODUCTION The enclosed resolution is in reference to the public bidding for the Kerper Blvd. Sanitary Sewer Reconstruction project. BACKGROUND On May 15, 2017, the City council initiated the public bidding process for the Kerper Blvd, Sanitary Sewer Reconstruction project. The estimated construction cost of the project was $3,762,675.00. DISCUSSION Two Bids were received on June 8, 2017, for the Kerper Blvd, Sanitary Sewer Reconstruction project. Portzen Construction, Inc and Tschiggfrie Excavating Co. each submitted a bid. Both bids were substantially over the estimated construction cost. The low bid, submitted by Portzen Construction Inc., is in the amount of$5,494,539.26 or 46.03% over the estimate. Tschiggfrie Excavating Co. submitted a bid in the amount of $6,262,588.94 or 66.44% over the estimate. Two other general contractors, that did not submit a bid on the project, indicated that they do not have the manpower available to take this project on and meet their current obligations. Engineering staff will re-evaluate the design and incorporate any cost saving measures. Engineering plans to rebid the project later this year when potentially a more competitive bidding environment exists for the next construction season. RECOMMENDATION I recommend that the City Council reject the bids received for the Kerper Blvd. Sanitary Sewer Reconstruction Project. ACTION TO BE TAKEN The City Council is requested to reject the bids for the Kerper Blvd. Sanitary Sewer Reconstruction project through adoption of the attached resolution. Prepared by Todd Irwin, Engineering Technician cc: Jenny Larson, Budget Director John Klostermann, PW Director Deron Muering, Civil Engineer Todd Irwin, Engineering Tech 2 RESOLUTION NO. 227-17 REJECTING COMPETITIVE BID PROPOSAL RECEIVED FOR THE KERPER BLVD SANITARY SEWER RECONSTRUCTION PROJECT Whereas, � (2) .J bid lifted I... 1. /�\ two competitive sealed propo dI was submi ted by two (2) contractor for the Kerper Blvd Sanitary Sewer Reconstruction Project (the Project) pursuant to Resolution No. 211-15 and Notice to Bidders published the City of Dubuque Website www.cityofdubuque.orq/bids, Master Builders of Iowa Plan Room mbir Ianroom-dsm(c .mbionline.com and posted to the Master Builders Construction Update Network on the 19th day of May, 2017; and Whereas, the two (2) competitive sealed bid proposal were opened and read on the 8th day of June 2017; and Whereas, the City Council has deemed it advisable to reject the two (2) 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 two (2) competitive sealed bid proposals for the Kerper Blvd Sanitary Sewer Reconstruction Project is hereby rejected. Section 2. The City Clerk is authorized and instructed to return the bid deposit of the unsuccessful bidders for the Kerper Blvd Sanitary Sewer Reconstruction Project. Passed, approved and adopted this 19th day of June 2017. Attest: KeviSJ Firnstahl, CMC, City Clerk 4/);---1 oy D. Buol, Mayor