Consider Recommending City Council Approval of Plans and Specifications and Authorization to Advertise Bids for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements

Purpose:
The purpose of this case is to consider recommending City Council approval of Plans and Specifications and authorization to advertise bids for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements.

Background:
On March 9, 2021, the Ramsey City Council adopted Resolution #21-061 awarding a contract to SEH Inc. to prepare plans and specifications for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements. A copy of this resolution is attached.
 
Plans have recently been completed and are ready to be advertised for bids. Staff will briefly review the trunk watermain plans during the meeting. A copy of the title sheet and general layout are attached.
 
The current bidding environment for utility pipes is extremely volatile.  There is an overall shortage of pipe, regardless of material type, resulting in increased pipe costs and long delivery times between the time pipes are ordered and the time they are delivered. On average, pipes are being delivered between 3 and 6 months out from the time the pipes are ordered. For this reason, Staff is recommending to bid the project as soon as possible, and to allow the bidders to complete the work by the spring of 2023, which will allow them to work with suppliers to receive the best bid prices possible.    

Staff anticipates 10 minutes will be needed to present this case and respond to questions. 

Observations:
Staff plans to request City Council approval of plans and specifications and authorization to advertise for bids on October 26, 2021.

Alternatives:
Alternative #1 – Motion to recommend City Council approval of Plans and Specifications and authorization to advertise bids for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements.

Alternative #2 – Motion of other.  

SEH’s design services fee for designing the trunk watermain improvements and preparing plans and specifications was $235,895, which equates to 6.89-percent of the estimated trunk watermain improvements construction cost of $3,424,750.
 
Funding for this project is proposed to come from water enterprise funds. For almost two decades, municipal water users have been contributing to a future water treatment plant, which includes off-site trunk watermain improvements required to provide the plant with raw water, and to transport treated (finished) water out to the distribution mains.  

Staff recommends approving alternative #1.  

Motion to recommend City Council approval of Plans and Specifications and authorization to advertise bids for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements.