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Green Alley Permeable Pavers Project_Rejection of BidsMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Green Alley Permeable Pavers Project DATE: August 10, 2011 Dubuque bhil All- AmedcaCityy I r 2007 Sealed bids were received for the Green Alley Permeable Pavers Project (17th — 18th between Jackson and Washington Streets). The lowest responsible bid of $179,287 provided by Tschiggfrie Excavating, Inc. was 22.4% over the estimate of probable cost. Assistant City Engineer Bob Schiesl recommends rejection of all bid proposals. Upon reviewing the bids received, staff identified that the proposed underground utility improvements were the primary items that exceeded the original estimate of probable cost. Additionally, the accelerated fall completion schedule potentially had an impact on contractor pricing. Staff will consult with the contractors that submitted bid proposals to review the various scope of work elements to evaluate where costs were higher than originally estimated. Through this constructability review, staff is optimistic that value engineering components could be identified so that the improvements can be modified or adjusted to meet the project objectives and current projected available funding. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Gus Psihoyos, City Engineer Robert Schiesl, Assistant City Engineer Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager Gus Psihoyos, City Engineer FROM: Robert Schiesl, Assistant City Engineer 2DS SUBJECT: Green Alley Permeable Pavers Project (17th — 18th, between Jackson and Washington Streets) DATE: August 9, 2011 INTRODUCTION Dubuque krttial All-America City 2007 The purpose of this memo is to seek authorization to reject all competitive bid proposals for the Green Alley Permeable Pavers Project (17th — 18th, between Jackson and Washington Streets) through the adoption of the enclosed resolution. BACKGROUND The Green Alley Permeable Pavers Project (17th — 18th, between Jackson & Washington Streets) was to involve the reconstruction)o1 the alley between Jackson and Washington Streets, from 17th Street to 18th Street. This alley is adjacent to the Washington row houses that the Housing Department is renovating. The project will include the following: • Reconstruction of the pavement surface with interlocking concrete pavers. • Watermain reconstruction. • Replacement of four (4) lead water services with copper. • Replacement of the brick sanitary manholes in the alley and on 17th and 18th Streets with new concrete manholes. This project is one of the alleys identified in the Annual Green Alley Program Capital Improvement Plan and was to be the first green alley that will involve water service and alley pavement assessments. The previous Green Alley Permeable Paver Projects were initially partially funded with Community Development Block Grant (CDBG) funds from the American Recovery & Reinvestment Act; however these allocations are no longer available. Since this alley (17th — 18th, between Jackson & Washington Streets) was already programmed in the City's Capital Improvement budget, it was not eligible to be designated as a permeable paver project funded through the EPA Consent Decree. BID RESULTS Competitive sealed bids were received for the project on August 4, 2011. The lowest responsible bid of $179,287.00 provided by Tschiggfrie Excavating, Inc. of Dubuque, Iowa was 22.4% over the estimate of probable cost. A summary of the bid proposals received is as follows: Contractor Name Tschiggfrie Excavating, Inc. Portzen Construction, Inc. Connelly Construction, Inc. Eastern Iowa Excavating, Inc. DISCUSSION Total Bid $179,287.00 $179,838.50 $189,030.85 $217,603.80 Upon reviewing the bids received, staff has identified that the proposed underground utility improvements were the primary items that exceeded the original estimate of probable cost. Additionally, the accelerated fall completion schedule potentially had an impact on contractor pricing. I recommend that staff consult with the contractors that submitted bid proposals to review the various scope of work elements to evaluate where costs were higher than originally estimated. Through this constructability review, staff is optimistic that value engineering components could be identified so that the improvements can be modified or adjusted to meet the project objectives and current projected available funding. Following the completion of the value engineering analysis and the constructability review with contractors, staff is optimistic that the project can be re -bid in the fall of 2011 when the bidding climate is more favorable for the 2012 construction season. The projected revised schedule for the Green Alley Permeable Pavers Project (17th — 18th, between Jackson & Washington Streets) is as follows: Initiate Public Bidding Process Advertisement for Bids Receipt of Bids Award of Contract Final Completion Date RECOMMENDATION November, 2011 November, 2011 December, 2011 December, 2011 June, 2012 I recommend that the City Council reject all competitive bid proposals received on August 4, 2011 for the Green Alley Permeable Pavers Project (17th — 18th, between Jackson & Washington Streets). 2 ACTION TO BE TAKEN I respectfully request the City Council reject all competitive bid proposals received for the Green Alley Permeable Pavers Project (17th - 18th between Jackson & Washington Streets) through the adoption of the attached resolution. Prepared by Jon Dienst, Civil Engineer cc: Jenny Larson, Budget Director Don Vogt, Public Works Director John Klostermann, Street & Sewer Maintenance Supervisor Bob Green, Water Department Manager Gus Psihoyos, City Engineer Deron Muehring, Civil Engineer Todd Shoemaker, Environmental Engineer 3 RESOLUTION NO. 283 -11 REJECTING ALL COMPETITIVE BID PROPOSALS RECEIVED FOR THE GREEN ALLEY PERMEABLE PAVERS PROJECT (17th — 18 BETWEEN JACKSON AND WASHINGTON STREETS) Whereas, competitive sealed bid proposals have been submitted by contractors for the Green Alley Permeable Pavers Project (17 — 18 between Jackson and Washington Streets) (the Project) pursuant to Resolution No. 228 -11 and Notice to Bidders published in a newspaper published in the City of Dubuque, Iowa on the 21 day of July, 2011; and Whereas, said competitive sealed bid proposals were opened and read on the 4th day of August, 2011; 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 competitive sealed bid proposals for the Project are hereby rejected. Section 2. The City Clerk is authorized and instructed to return the bid deposits of the unsuccessful bidders for the Project. Attest: Passed, approved and adopted this 1 5th day of , . , 2011. OPA _ , / K -vin S. Fir tahl, Acting City Clerk Roy D. Buol, Mayor