Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH NERONE & SONS, INC. FOR LABOR AND MATERIALS FOR THE CONSTRUCTION OF THE WATER PLANT BRINE WELL; AND DECLARING AN EMERGENCY. (as revised 3-5-2019)
Brief Description: This project involves the drilling of a brine well including the construction of associated infrastructure at the City’s water plant for use in the water treatment process. Brine can also be used as a snow and ice melting agent for the City’s snow and ice control program.
Body
Legislative History
Res. No. 16-195 - Authorization for the City Manager to enter into a contract for design and project management services for the water plant brine well project.
File No. 19-0007 - Council Workshop discussion of bids and direction to place the project award on 2-5-19 Council meeting agenda for three readings.
Purpose & Explanation
The Water Plant Brine Well Project advertised for public bid on 9-23-18. Three bids were received with the lowest bid being $1,507,822.00, or $307,822 (26%) over the engineer’s estimate of $1,200,000. After rejecting the bids due to the cost being 10% over the estimate, staff spoke with the general contractors who supplied bids and identified that only one drilling sub-contractor was available to perform the work in the time allotted for the project which may have caused the bids to come in higher than anticipated.
Prior to rebidding the project, in an effort to lower project costs, City staff and the design consultant for the project refined the project schedule and contacted additional general contractors, drilling companies, the Ohio Department of Natural Resources (ODNR) to attract a larger pool of bidders. The project was rebid, and opened on 12-21-18, still with three bidders. The results of the rebid are:
Bid Amounts (Rebid):
1. Nerone & Sons, Inc.--------------------$1,549,050
2. Workman Industrial Services-------$1,575,793
3. Lockhart Concrete Co.-----------------$1,697,880
The revised project construction budget is:
Low Bid……………………………………$1,549,050
Project Contingency (10%)……………$154,905
Total Construction Cost……………$1,703,955
Original Construction Estimate……….$1,200,000
Construction Cost Overage ………………$503,955
*A detailed bid tabulation has been attached for reference.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
X Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes]
Joint or Cooperative Purchase Program
Professional Services
Other [provide explanation]
Fiscal Impact
Currently Budgeted (Account #501-5240-52556, $1,200,000)
X Supplemental Appropriation Required ($503,955)
Appropriation Not Required.
Does this legislation require use of an emergency clause?
X Yes, emergency language is needed in order to timely award the contract and to secure the best pricing. (revised 3-5-2019)
No
Recommendation
Suggested Action
Staff recommends that City Council approve this Resolution authorizing the City Manager to award and enter into a contract with Nerone & Sons, Inc. for the construction of the water plant brine well at the not to exceed cost price of $1,703,955.
Submitted by,
Jane Howington, City Manager
Frank Comeriato, Jr., Asst. City Manager - Operations
Brad Kosco, City Engineer
Kevin Powell, Asst. PW Director - Utilities