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AGENDA ITEM REVIEW FORM |
6.E.
Regular City Council Meeting
- Meeting Date:
- 06/12/2024
- Department Head:
- Eulogio Vera
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the acceptance and award of a construction contract to MGC Contractors, Inc. for the construction of the Well Site 5 - New Manganese Treatment Unit Project. (Jorge Perez, Assistant Director of Public Works)
SUMMARY:
Item History:
The Department of Public Works is seeking Council approval for accepting and awarding a construction contract to MGC Contractors, Inc., 4110 East Elwood Street, Phoenix, Arizona 85040, for the construction of a new manganese treatment unit at well site five. MGC Contractors, Inc. was the lowest responsible bidder for this project at $3,966,900.00. Public Works evaluated all three bids received in conjunction with its Water Department and its consultant engineer and recommends awarding the contract to MGC Contractors.
The project was initiated at the beginning of the fiscal year by bringing a consultant on board to produce design plans for the construction of the well, to work with Pureflow filtration system, and to incorporate their system design into the project design. It also included design work for the pre-engineered metal building (PEMB) and all the electrical components of the new filtration system. In order to advance the project in a timely fashion, the Department of Public Works ordered key components and equipment at the early stages of the design so that they could arrive on time to be installed by a general contractor, who would be selected via a formal procurement bidding process. The previously ordered components and equipment include the drilling of a new groundwater well, Pureflow filtration system, a Pre-Engineered Metal Building, electrical Service Entrance Section (SES), the Automatic Transfer Switch (ATS), and the power backup Generator.
Additional Budgeting Information:
During budget preparation, PW took an engineer's cost estimate into consideration and requested $3.2M of funding for FY25 for this project (Inclusive of other equipment previously ordered plus construction). At the time of budget preparation, the project was still under design and had a scheduled bid opening on May 30th. The bid opening occurred as planned, and the lowest bid was received at $3,966,900.00, which put the project nearly $800,000.00 short for FY25. PW met with the Finance departement and City Administration and recommended to reduced two FY25 water projects and reallocate funding capacity to this project given its importance to the system as a whole. The two projects being impacted are the following:
At this time, Public Works is seeking Council approval to accept Construction Services from MGC Contractors, Inc. for this project in the amount of $3,966,900.00. This purchase falls under the provisions of City Code 3.05.030 Bidding. A 5% contingency amount is included in the bid.
The Department of Public Works is seeking Council approval for accepting and awarding a construction contract to MGC Contractors, Inc., 4110 East Elwood Street, Phoenix, Arizona 85040, for the construction of a new manganese treatment unit at well site five. MGC Contractors, Inc. was the lowest responsible bidder for this project at $3,966,900.00. Public Works evaluated all three bids received in conjunction with its Water Department and its consultant engineer and recommends awarding the contract to MGC Contractors.
The project was initiated at the beginning of the fiscal year by bringing a consultant on board to produce design plans for the construction of the well, to work with Pureflow filtration system, and to incorporate their system design into the project design. It also included design work for the pre-engineered metal building (PEMB) and all the electrical components of the new filtration system. In order to advance the project in a timely fashion, the Department of Public Works ordered key components and equipment at the early stages of the design so that they could arrive on time to be installed by a general contractor, who would be selected via a formal procurement bidding process. The previously ordered components and equipment include the drilling of a new groundwater well, Pureflow filtration system, a Pre-Engineered Metal Building, electrical Service Entrance Section (SES), the Automatic Transfer Switch (ATS), and the power backup Generator.
Additional Budgeting Information:
During budget preparation, PW took an engineer's cost estimate into consideration and requested $3.2M of funding for FY25 for this project (Inclusive of other equipment previously ordered plus construction). At the time of budget preparation, the project was still under design and had a scheduled bid opening on May 30th. The bid opening occurred as planned, and the lowest bid was received at $3,966,900.00, which put the project nearly $800,000.00 short for FY25. PW met with the Finance departement and City Administration and recommended to reduced two FY25 water projects and reallocate funding capacity to this project given its importance to the system as a whole. The two projects being impacted are the following:
- Well Site 6 Tank Rehabilitation budget is being reduced to $800,000.00. By doing so, $400,000.00 is being allocated to the New Manganese Treatment Unit project at well site 5.
- Well Site 3 Electrical Upgrade and Repiping project is entirely relinquished for FY25. By doing so, $400,000.00 is being allocated to the New Manganese Treatment Unit project at well site 5.
At this time, Public Works is seeking Council approval to accept Construction Services from MGC Contractors, Inc. for this project in the amount of $3,966,900.00. This purchase falls under the provisions of City Code 3.05.030 Bidding. A 5% contingency amount is included in the bid.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO ACCEPT AND AWARD THE CONTRACT TO MGC CONTRACTORS, INC. FOR THE CONSTRUCTION OF THE NEW MANGANESE TREATMENT UNIT PROJECT AT WELL SITE #5, NOT TO EXCEED $3,966,900.00 AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City & Federal
- TOTAL:
- $3,966,900.00
- BUDGETED AMOUNT:
- See fiscal impact statement
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- See fiscal impact statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
FY25 Budgeted Item
Accounts:
Capital Outlay CIP - 300-302-90015 $2,800,000.00
Capital Outlay ARPA - 255-021-90052.228 $1,200,000.00
Accounts:
Capital Outlay CIP - 300-302-90015 $2,800,000.00
Capital Outlay ARPA - 255-021-90052.228 $1,200,000.00