North Fork Catsfish Creek Stormwater_Sewer Reconstruction Phase III_Rejecting BidsTO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: North Fork Catfish Creek Stormwater and Sanitary Sewer Improvements
Project -Phase III
CIPs 7101802, 7102178, 7201662, 7201807, 7201911 & 7202018
DATE: October 26, 2009
Sealed bids were received for the North Fork Catfish Creek Stormwater and Sanitary
Sewer Improvements Project -Phase III. City Engineer Gus Psihoyos recommends
rejection of all bids because the lowest bid submitted was $1,997,396.75, or 32.5% over
the estimate of probable cost. Gus Psihoyos believes that a change to the
specifications, avalue engineering analysis, and a constructability review will identify
ways to reduce the project cost while meeting the project objectives. The project will be
rebid in November.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Gus Psihoyos, City Engineer
THE CTTY OF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer ,
DATE: October 27, 2009
Dubuque
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SUBJECT: North Fork Catfish Creek Stormwater and Sanitary Sewer Improvements
Project -Phase II I
CI Ps 7101802, 7102178, 7201662, 7201807, 7201911, & 7202018
INTRODUCTION
The purpose of this memo is to seek authorization to reject the bids for the North Fork
Catfish Creek Stormwater and Sanitary Sewer Improvements Project -Phase III.
BACKGROUND
Phase III of the North Fork Catfish Creek Stormwater and Sanitary Sewer
Improvements Project involves the replacement of just over 4,700 feet of 12-inch
diameter clay sanitary sewer from Keystone Drive to the Northwest Arterial (IA32) with
600 feet of 24-inch diameter and 4,130 feet of 18-inch diameter ductile iron sanitary
sewer.
Phase III also includes stormwate~- management improvements outlined in the Drainage
Basin Master Plan: replacement of the Key Way culverts (CIP 7201662), an additional
culvert at Rosemont Street (CIP 7201911) and creek improvements to improve flow and
stabilize the creek banks from Key Way to the Northwest Arterial (CIP 7201807 &CIP
7202018).
At the public hearing held on October 19, 2009, the City Council adopted a resolution
approving the plans, specifications, form of contract and the estimated cost for the North
Fork Catfish Creek Stormwater and Sanitary Sewer Improvements Project -Phase III.
BID RESULTS
Sealed bids were received on the project on October 22, 2009. Portzen Construction of
Dubuque, Iowa, submitted the low bid in the amount of $1,997,396.75. This amount is
32.5% over the estimate of probable cost. A summary of the bid proposals received is
as follows:
Contractor Name Total Bid
Portzen Construction $1,997,396.75
Tschiggfrie Excavating $1,998,796.90
Connolly Construction $2,092,361.06
Top Grade Excavating $2,162,668.51
There are two primary reasons that the bids exceeded the engineer's estimate by
$490,331.75. First, the narrow corridor limits the contractor's movements and the bids
reflect this additional time/expense to install the new sewer. The line-item cost alone to
install the 18-inch diameter sewer in the same location as the existing sanitary sewer
was $143,280.00 more than anticipated. Other bids items reflect the same space
constraints.
Secondly, the cost of installing the erosion control matting along the creek was
$228,750.00 more than anticipated. The Engineering Department met with the supplier
of the specified turf reinforcement product; and it was determined that the installation
details for that product were incorrect. Thus the labor and material associated with the
installation of the erosion control matting was incorrectly bid.
The Engineering Department believes that a change to the specifications, avalue
engineering analysis, and a constructability review will identify ways to reduce the
project cost while meeting the project objectives and result in a cost savings to the City.
Therefore, I recommend rejection of the bids, a value engineering analysis, a
constructability review with contractors, and rebidding the project in November. The
revised schedule for Phase III of the project would be as follows:
Value Engineering Complete November 6, 2009
Initiate Bidding November 16, 2009
Advertisement for Bids November 20, 2009
Receipt of Bids December 8, 2009
Award of Contract December 20, 2009
Final Completion Date (unchanged) August 27, 2010
RECOMMENDATION
recommend that the City Council reject the bids received on October 22, 2009 for the
North Fork Catfish Creek Stormwater and Sanitary Sewer Improvements Project -
Phase III.
BUDGET IMPACT
If the contract was awarded to the lowest bid received on October 22, 2009, the
estimate of probable costs for the North Fork Catfish Creek Stormwater and Sanitary
Sewer Improvements Project -Phase III would be as follows:
Cost Estimate Bid Award
Construction Contract $1,507,065.00 $1,997,396.75
Contingency 150,706.50 150,706.50
Engineering 237,100.00 237,100.00
Total Project Cost $1,894,871.50 $2,385,203.25
ACTION TO BE TAKEN
I respectfully request that the City Council reject the bids received on October 22, 2009
for the North Fork Catfish Creek Stormwater and Sanitary Sewer Improvements Project
- Phase III through the adoption of the attached resolution.
Prepared by Deron Muehring, Civil Engineer II
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Ken TeKippe, Finance Director
Don Vogt, Public Works Director
John Klostermann, Street & Sewer Maintenance Manager
Deron Muehring, Civil Engineer II
RESOLUTION NO. 432-09
REJECTING ALL COMPETITIVE BID PROPOSALS RECEIVED FOR THE NORTH
FORK CATSIFH CREEK STORMWATER AND SANITARY SEWER IMPROVEMENTS
PROJECT - PHASE III
Whereas, competitive sealed bid proposals have been submitted by contractors
for the North Fork Catfish Creek Stormwater and Sanitary Sewer Improvements Project
- Phase III (the Project) pursuant to Resolution No. 390-09 and Notice to Bidders
published in a newspaper published in the City of Dubuque, Iowa on the 9t" day of
October, 2009; and
Whereas, said competitive sealed bid proposals were opened and read on the
22nd day of October, 2009; and
Whereas, the City Council has deemed it advisable to reject all competitive
sealed bid proposals the Project.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. All of the competitive sealed bid proposals for the North Fork
Catfish Creek Stormwater and Sanitary Sewer Improvements Project -Phase III are
hereby rejected.
Section 2. The City Clerk is authorized and instructed to return the bid
deposits of the unsuccessful bidders for North Fork Catfish Creek Stormwater and
Sanitary Sewer Improvements Project -Phase III.
Passed, approved and adopted this 2nd
Attest:
eanne F. Schneider, CMC, City Clerk
day of November. , 2009.
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Roy D. Buol, ~/layor