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Home My WebLink About6.i. Receive BidsAward Contract – Well 5 Abandonment, City Project 2017-08I:\City Clerk\Agenda Items\Approved Items\6.i. Receive BidsAward Contract – Well 5 Abandonment, City Project 2017-08.docx EXECUTIVE SUMMARY City Council Meeting: September 5, 2017 AGENDA ITEM: Receive Bids/Award Contract – Well 5 Abandonment, City Project 2017-08 AGENDA SECTION: Consent PREPARED BY: Mitch Hatcher, PE, Project Engineer AGENDA NO. 6.i. ATTACHMENTS: Resolution; Letter of Recommendation; Bid Summary; Bid Tabulation APPROVED BY: LJM RECOMMENDED ACTION: Motion to Adopt a Resolution Receiving Bids and Awarding the Contract for Well 5 Abandonment, City Project 2017-08. BACKGROUND On Friday August, 25, 2017, one bid was received for Well 5 Abandonment, City Project 2017-08 and read aloud publicly. The low bidder is Mark J Traut Wells, who submitted a bid in the amount of $61,365.00. The total bid amount of $61,365.00 is 48% higher than the engineer’s estimated construction cost of $41,517.00. The attached letter of recommendation details the single bid received and higher than anticipated construction amount. The City has been awarded a $2,000 Dakota County Well Seal Grant for this project. The remaining project costs will be funded through federal CDBG funds. It is anticipated that the Well 5 Abandonment will begin construction on September 2017 with substantial completion by November 2017. SUMMARY Staff recommends Council adopt the attached resolution receiving the bids and awarding the contract for Well 5 Abandonment, City Project 2017-08. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2017 – A RESOLUTION RECEIVING BIDS AND AWARDING CONTRACT FOR WELL 5 ABANDONMENT, CITY PROJECT 2017-08 BE IT RESOLVED, by the City Council of the City of Rosemount, Minnesota, as follows: 1. All bids on construction of the Well 5 Abandonment, City Project 2017-08 are hereby received and tabulated. 2. Based on the Base Bid, the bid of Mark J Traut Wells in the amount of $61,365.00 for the construction of said improvements is in accordance with the plans and specifications and advertisement for bids, and is the lowest responsible bid and shall be and hereby is accepted. 3. The Mayor and Clerk are hereby authorized and directed to enter into a contract with said bidder for the construction of said improvements for and on behalf of the City of Rosemount. 4. The City Clerk is hereby authorized and directed to return forthwith to all bidders the deposits made with their bids, except that the deposit of all successful bidder and the next two lowest bidders shall be retained until a contract has been executed. ADOPTED this 5th day of September, 2017. William H. Droste, Mayor ATTEST: Clarissa Hadler, City Clerk 477 Temperance Street | St. Paul, MN 55101 | (651) 286-8450 Building a legacy – your legacy. Equal Opportunity Employer | wsbeng.com K:\01582-320\Admin\Construction Admin\1582-32 LOR 082917.docx August 30, 2017 Mr. Brian Erickson, PE City of Rosemount 2875 145th Street West Rosemount, MN 55068 Re: Rosemount Well No. 5 Abandonment City of Rosemount Project No. 2017-08 WSB Project No. 1582-32 Dear Mr. Erickson: Bids were received for the above-referenced project on Friday, August 25, 2017, and were opened and read aloud. One bid was received. The bid was checked for mathematical accuracy. Please find enclosed the bid summary indicating the low bid as submitted by Mark J. Traut Wells, Waite Park, Minnesota in the amount of $61,365.00. The Engineer’s Estimate was $41,517.00. We contacted Mark J. Traut Wells to inquire why their bid was significantly higher than the Engineer’s Estimate. Mark J. Traut Wells provided the following reasons: 1) Well No. 5 is a multi-cased well that will require explosives (shape charges) to prepare the well casings for sealing. In addition, there are higher costs for shipping of hazardous class explosives (shape charges) and the labor to set them up and place them down the well. After the shape charges are used the contractor will need to mobilize a drill rig onsite to clean-out the well. 2) Since Well No. 5 is a multi-cased well, additional brushing of the different casing diameters will be required in order to prepare the well for the mechanical perforations (holes to allow grout to be installed between the well casings). 3) The grouting costs are higher since only one to two yards of grout can be installed at a time due to the multiple casings of the well. This will require three to four crew mobilizations. Most of the local municipal drilling companies either do not have the necessary equipment to perforate and seal existing well casings, or they are not interested in bidding this type of work due to the unknowns and risks that are sometimes encountered when sealing a municipal well. These circumstances could explain why only one bid was received for this project. Based on this information, we recommend that the City Council consider this bid and award a contract in the amount of $61,365.00 to Mark J. Traut Wells, based on the results of the bids received. Sincerely, WSB & Associates, Inc. Greg Johnson, PE Water/Wastewater Group Manager Attachment kkp PROJECT: OWNER: City of Rosemount, MN WSB Project No.: 1582-32 Bids Opened: August 25, 2017, 11:00 a.m. local time Contractor Bid Security (5%) Grand Total Bid 1 Mark J. Traut Wells X $61,365.00 Engineer's Opinion of Cost $41,517.00 *Denotes corrected figure Greg Johnson, PE Project Manager BID TABULATION SUMMARY I hereby certify that this is a true and correct tabulation of the bids as received on August 25, 2017. Rosemount Well No. 5 Abandonment City Project No. 2017-08 K:\01582-320\Admin\Construction Admin\1582-32 Bid Summary 082517 CONSULTANWSB & Associates, Inc.477 Temperance StreetSt. Paul, MN 55101BID SUBMITTAL TIME:Time: 11:00 AMDate: August 25, 2017I hereby certify that this is an exact reproduction of bids received.*No. Item Units Qty Unit Price Total Price Unit Price Total PriceSCHEDULE A: WELL NO. 5 ABANDONMENT1 MOBILIZATION LUMP SUM 1 9,845.00$ 9,845.00$ 18,285.00 $18,285.002 GROUT ROCK PORTION OF WELL; 451' TO 412' CU YDS 1 575.00$ 575.00$ 4,500.00 $4,500.003 PERFORATE 4" AND 6" PORTION OF CASINGS; 412' TO 265'LUMP SUM 1 4,600.00$ 4,600.00$ 0.00 $0.004 GROUT FROM 412' TO 265' CU YDS 2 575.00$ 1,150.00$ 1,950.00 $3,900.005 PERFORATE 6" AND 8" PORTION OF CASINGS; 265' TO 213'LUMP SUM 1 4,600.00$ 4,600.00$ 1,380.00 $1,380.006 GROUT FROM 265' TO 213' CU YDS 1 575.00$ 575.00$ 2,750.00 $2,750.007 PERFORATE 6" PORTION OF CASING; 213' TO GRADELUMP SUM 1 4,600.00$ 4,600.00$ 5,325.00 $5,325.008 GROUT ANNULAR SPACE WITHIN 6" CASING FROM 213' TO 2'CU YDS 1.5 575.00$ 862.50$ 2,300.00 $3,450.009 REMOVE EXPOSED SECTION OF CASING LIN FT 4 225.00$ 900.00$ 400.00 $1,600.0010 SEALING PERMITS AND SUBMITTALS LUMP SUM 1 434.50$ 434.50$ 325.00 $325.0011 SITE RESTORATION LUMP SUM 1 1,375.00$ 1,375.00$ 1,850.00 $1,850.0012 SUPPLEMENTAL SHAPE CHARGES FOR PERFORATIONEA 240 50.00$ 12,000.00$ 75.00 $18,000.0041,517.00$ $61,365.0041,517.00$ $61,365.00BID TABULATIONOWNER:City of RosemountENGINEERS ESTIMATE Mark J. Traut WellsSUBMIT TO / BID OPENING LOCATION:City of RosemountROSEMOUNT WELL NO. 5 ABANDONMENTCITY OF ROSEMOUNT PROJECT NO. 2017-08TOTAL BASE BID SCHEDULE ADenotes Corrected FigureGreg Johnson, WSB & Associates, Inc.TOTAL SCHEDULE A: WELL NO. 5 ABANDONMENT2875 145th Street WestRosemount, MN 550682875 145th Street WestRosemount, MN 55068Page 1K:\01582-320\Admin\Construction Admin\1582-32 Bid Tabulation 082517