Memorandum

City of Lawrence

Department of Utilities

TO:	David L. Corliss, City Manager Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager
FROM:	Philip E. Ciesielski, Assistant Director of Utilities
CC:	Dave Wagner, Director of Utilities Mike Lawless, Assistant Director of Utilities Beth Krishtalka, Assistant to Director Mark Hegeman, Utilities Operations Superintendent Dave King, Utilities Maintenance Superintendent
	December 21, 2011
RE:	Agenda Item – Award Bid for Bid Number B1156, Project UT0906DS Kaw Water Treatment Plant Large Valve Replacement to Nowak Construction and Authorize Execution Supplemental Agreement No.8 to the Engineering Services Agreement with BG Consultants.

Please include the following item on the City Commission agenda for consideration at the December 27, 2011 meeting:

Waive the irregularity related to not acknowledging Addendum No.2 and Award the construction contract for Bid No. B1156, Project UT0906DS Kaw Water Treatment Plant Large Valve Replacement to the low bidder Nowak Construction in the amount of $621,017.00 and authorize the City Manager to execute the contract.

Authorize the City Manager to Execute Supplemental Agreement No.8 in the amount of $6,808.50 to the Engineering Services Agreement with BG Consultants for Construction Phase Engineering Services for Project UT0906DS Kaw Water Treatment Plant Large Valve Replacement.

Project Details

Through the valve exercising program Utilities Department staff have identified large diameter water distribution system isolation valves at various locations that either do not operate, or operate but do not fully seal. These valves are typically 16” in diameter or larger and on water transmission lines of similar diameters. Because there are fewer connecting watermains, and the operational need to isolate a larger diameter water transmission main is infrequent, the number of valves on large diameter water transmission mains are fewer and are located at greater distances apart than those on the smaller water mains that make up the bulk of the water distribution system. This makes the need for each available valve to be fully operational critical to allow timely shutdown in the event of an emergency.

The current project scope is designed to address the replacement of four (4) inoperable valves on the Kaw Water Treatment Plant Central Service high service pump discharge transmission mains. These four first tier valves are critical in the event the Kaw WTP needs to be isolated from the transmission system. The project scope replaces four (4) 16” to 24” diameter butterfly valves, 360 linear feet of 24” diameter cast iron transmission main, and two (2) 24” diameter check valves. The two 24” butterfly and check valve combinations date to 1955 and 1958 and are in concrete vaults within the 3^rd Street right-of-way. The 24” diameter transmission main dates to 1955 and 1958, and the two 16” butterfly valves in Indiana St. date to 1954 and the early 1900’s.

The concrete vaults will be demolished eliminating a confined space hazard for staff and cleaning up the surface area in the right-of-way. The new butterfly valves will be a direct-bury type with only a standard valve box visible at grade. The two existing check valves will be replaced with a single check valve installed on the high service pump discharge within the Kaw WTP building. The 24” diameter transmission main will be replaced with 36” diameter pipe. Fittings will be installed at the intersection of 3^rd and Indiana to facilitate the future extension of the 36” diameter Kaw Water Treatment Plant Transmission Main through North Lawrence and onto Southeast Lawrence. Project map and photos attached.

Project Timeline

May 2011 – Staff met with BG consultants to discuss options for isolation and replacement of first tier plant valves.
June 2011 – BG Consultants submitted a draft agreement, containing scope and fee estimates, as a supplement to the existing engineering services agreement for construction of public improvements between the city and BG Consultants.
September 2011 – BG Consultants submitted a Design Report and construction estimate for the project.
October 2011 – plans and specifications were submitted by BG Consultants for review.
November 2011 – final plans and specifications submitted.
November 15 – City Commission set a Bid Date of December 6, 2011.
December 6 - City Commission revised the Bid Date to December 13, 2011.

Project Status

On December 13, 2011 bids were received from the following three (3) bidders. The bids were opened and publicly read aloud.

Garney Companies $688,580.00

Nowak Construction $621,017.00

Wildcat Construction $698,627.00

Engineer’s Estimate $647,200.00

The submitted bid documents from the low bidder Nowak Construction did not properly include acknowledgement of the receipt of Addendum No. 2. Addendum No. 2 was issued changing the bid opening date from December 6, 2011 to December 13, 2011. The Addendum was issued on December 2, 2011 by BG Consultants via email. Receipt of this email and the Addendum was acknowledged by Nowak Construction via reply email on December 2, 2011.

BG Consultants has reviewed the bids and qualifications of the low bidder and, per the attached letter and bid tab, recommend awarding the bid to the low bidder Nowak Construction Inc. Staff have reviewed the bids and the recommendation from BG Consultants, and recommend waiving the irregularity related to the non-acknowledgement of Addendum No.2 as noted above and awarding the contract to the low bidder Nowak Construction.

Staff have negotiated Supplemental Agreement No.8 with BG Consultants for Construction Phase Engineering Services in the amount of $6,808.50. The supplemental agreement reflects an appropriate scope of services and fee based on the duration and complexity of the construction. These services include part-time on-site construction inspection in support of Department staff’s full-time inspection, coordination of materials testing services, construction materials submittal reviews/approvals, and construction contract administration. The addition of this supplemental agreement brings the total design and construction phase engineering services contract for the project to $31,788.50; 5.1% of low bid for construction.

Project Schedule

Advertise for Bid November 16, 2011

Bid Opening December 13, 2011

Award Bid December 20, 2011

Notice to Proceed January 9, 2012

Substantial Completion March 23, 2012

Final Completion April 13, 2012

Project Funding

Funds for the construction of the project are from the 2009 Build America Bonds. Per the terms of the Bond these funds must be expended prior to August of 2012 to maintain their non-taxable status.

Action Request