Memorandum

City of Lawrence, Kansas

Utilities Department

To:     David Corliss, ACM, Administrative Services

Debbie Van Saun, ACM, Community Development Services

CC:     Roger Coffey

Dave Wagner

Michael Tubbs

Alan Landis

From: Jim Stuit, Field Operations Supt, Utilities Department

Date:  September 8, 2004

Re:     Agenda Item – Utilities Project #1SS-204 (Trail Road Relief Sewer)

Please include the following item on the City Commission agenda for consideration at the September 14, 2004 meeting:

Award Utilities Project # 1SS-204 (Trail Road Relief Sewer) to the Low Bidder – Meadows Construction Co.

Project History: The Utilities Department Collection Division desires to construct a relief sewer line that will allow decommissioning of Pump Station #26, located at 4118 Trail Road.  Removal of this pump station will provide a better level of protection for customers connected to adjacent sewer lines and will also result in elimination of costs associated with operating and maintaining the pump station.  The project is recommended by the 2003 Wastewater Master Plan

Project Status:  The engineer selected for the project, Professional Engineering Consultants (PEC), completed design of the project and bids for the project were opened on August 31, 2004.  The following bids were received for the project:

Kansas Heavy Construction, LLC	$398,089.00
Meadows Construction Co.	$395,088.05
D.F. Freeman Contractors	$416,588.15
Redford Construction	$417,153.00
Linaweaver Construction, Inc.	$425,435.50
Barge-Turley Construction Co.	$454,273.00
Engineer’s Estimate	$303,544.00

As shown, the bids all exceed the Engineer’s Estimate.  The Engineer, after analysis of the bids, believes that the following factors contribute to the higher than expected bids:

• The presence of limestone bedrock along the entire length of the relief sewer:  This issue was mentioned by contractors at the pre-bid conference.  The practical implication is that the contractors believe they will have a wider trench, more rock to remove and dispose of, and more flowable fill than indicated by the design trench.
• The timeframe and neighborhood are also factors which may have contributed to the higher bids.  Contractors have indicated that they have moderate to good workloads going into the fall.  This project has a relatively short time frame that would need to be inserted into the schedules of their other work.  As this is a relatively new, well-maintained neighborhood, there are also intangibles that contractors reflect in their bids such as perceived risk and potential “extras” to keep the neighbors happy.  Vibration from rock excavation, traffic, access and confined work areas were additional concerns.
• The restoration construction items ran higher than expected and showed the greatest variance among contractors.

The fact that we received six bids, all within 15% of each other, reduces the likelihood that rebidding will result in bids that are significantly lower.

There will be brief road closures as the project progresses across Folks Road, Trail Road and the 3 cul-de-sacs.  Alternative routes will be in place for the two major streets, and notification will be given to those who live on the cul-de-sacs. There will be some disruption to normal traffic patterns, and this will be challenged by Free State school traffic (FSHS) traffic.  These issues were discussed with residents at the 7/13/04 Public Information Meeting held at FSHS.

The project allows the contractor 40 working days, with liquidated damages of $400/day, but our Engineer is confident that this is sufficient time to complete the project and assuming timely approval to complete the project prior to adverse seasonal weather.

Action Request:  Waive the Engineer’s Estimate and award the bid for Utilities Project   #1SS-204 (Trail Road Relief Sewer) to the low bidder – Meadows Construction Co.  Authorize the City Manager to enter into a contract in the amount of $ 395,088.05.

Funding for this project will come from the Utility Department Capital Improvement Fund (501-7800-588-6030).

Thank you for your assistance.  Please advise if you have any questions.