The URL can be used to link to this page

Home My WebLink About6.h. Receive BidsAward Contract – Well 5 Abandonment, City Project 2017-08I:\City Clerk\Agenda Items\Approved Items\6.h. Receive BidsAward Contract – Well 5 Abandonment, City Project 2017-08.docx EXECUTIVE SUMMARY City Council Regular Meeting: September 19, 2017 AGENDA ITEM: Receive Bids/Award Contract – Well 5 Abandonment, City Project 2017-08 AGENDA SECTION: Consent PREPARED BY: Brian Erickson, PE, Director of Public Works/City Engineer AGENDA NO. 6.h. ATTACHMENTS: Resolution; Letter of Recommendation; 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 higher cost is further explained in the attached letter from WSB, but is ultimately based on the following information: 1. The fact that Well 5 is a multi-cased well requires the use of explosives (shape charges) in order to perforate the casings on the deeper sections of the well. Currently, there is no hydraulic equipment that is capable of fitting inside the 4” portion of the casing. There are also higher shipping costs and labor requirements to set up these charges. This increased the cost by $25/charge. This is an increase of 50% per charge and leads to $6,000 in higher costs. 2. Additional brushing/cleaning will be required due to the multi-cased construction of Well 5. This is in preparation for the perforation of the well. 3. The grouting charges are also higher as the contractor will need to mobilize to the site more than one time. Each time will require equipment to be moved and set in order to place a small portion of the grout needed. As a result the cost per yard is much higher than was estimated. The Minnesota Department of Health (MDH) has established unique requirements for sealing municipal wells which has resulted in a limited number of qualified firms. The requirements have been established to minimize or eliminate the potential for mixing of various aquifers and potentially leading to contamination between them. There are currently three companies that are qualified to perform this work. They are: • Mark J. Traut Wells • Bergerson-Caswell • Kimmes-Bauer For this project Kimmes-Bauer chose not to bid as they have limited experience in dealing with perforating well casings with shape charges. Bergerson-Caswell similarly has limited experience with shape charges; however, they do have hydraulic perforation equipment that is more efficient than Traut. As a result Traut and Bergerson-Caswell have teamed up to perform this work. This is the reason for only one bidder on this project. Rebidding this work would likely not affect the cost and could potentially increase 2 the cost. As a result, the City Engineer’s recommendation is that Traut be awarded this project. 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 Community Development Block Grant (CDBG) funds that need to be expended prior to their expiration. It is anticipated that the Well 5 Abandonment will begin construction in 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 19th 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 091217.docx September 12, 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 perforate the deeper 4-inch inner casing since conventional hydraulic perforation equipment is too large to fit inside the 4-inch inner well casing. In addition, there are higher costs for shipping of hazardous class explosives (shape charges) and for 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. These requirements added approximately $25 extra per shape charge to the bid unit price, or $6,000 extra. 2) Well No. 5 is a multi-cased well, so additional brushing of the different casing diameters will be required to prepare the well for the mechanical perforations (holes installed in casings every 10 feet to allow grout to be installed between the well casings). 3) The grouting costs are significantly higher since only one to two yards of grout can be installed at a time due to the multiple casings of the well. Thus, the existing conditions will require three to four crew mobilizations. The unique requirements established by the Minnesota Department Health (MDH) for sealing municipal wells has limited the number of contractors that can bid this type of work. Most local well drilling companies do not have the necessary equipment to perforate and seal existing wells as required by MDH. In fact, there are only three qualified well drilling companies in Minnesota that have specialized equipment that can perforate well casings according to the MDH. One of these companies, Kimmes- Bauer, decided not to bid because they do not have experience working with shape charges and would have needed to subcontract much of this work to another contractor. The other two qualified well drilling companies, Mark J. Traut Wells and Bergerson-Caswell, decided to team with each other prior to bidding because Bergerson-Caswell also has limited experience working with shape charges but they have perforation equipment that can penetrate up to two well casings at a time (more efficient than Mark J. Traut’s perforation equipment). Mr. Brian Erickson, PE September 12, 2017 Page 2 K:\01582-320\Admin\Construction Admin\1582-32 LOR 091217.docx Based on this information, we recommend that the City Council consider this bid and award a contract in the amount of $61,365.00 to Mark J. Traut Wells. It is our opinion that rebidding this project would most likely not produce a lower bid result because of the reasons explained above. In addition, the City is qualified to receive funding from the State Clean Water Fund (CWF) and Dakota County to help pay for this project during this funding cycle. Delaying this project or rejecting the bid received could put this funding at risk. Please contact us if you have questions or comments. Sincerely, WSB & Associates, Inc. Greg Johnson, PE Water/Wastewater Group Manager Attachment kkp CONSULTANWSB & Associates, Inc.477 Temperance StreetSt. Paul, MN 55101BID SUBMITTAL TIME:Time: 11:00 AMDate: August 25, 2017I hereby certify that this is an exact reproduction of bids received.*No. Item Units Qty Unit Price Total Price Unit Price Total PriceSCHEDULE A: WELL NO. 5 ABANDONMENT1 MOBILIZATION LUMP SUM 1 9,845.00$ 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