Adopt Resolution #21-303 Approving Plans and Specifications and Authorizing Advertisements for Bids for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements

Purpose:
The purpose of this case is to adopt Resolution #21-303 approving Plans and Specifications and authorizing advertisements for 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 were recently completed and are ready to be advertised for bids. Plans were prepared with a base bid and an alternate bid as follows;

• Base bid – The base bid specifies a combination of construction techniques whereby open trenching of watermain is specified along the south side of Bunker Lake Boulevard and the north side of 143^rd Avenue, while directional drilling of watermain is specified at intersections, through Cottonwood Park, under Sunwood Drive, and under the stormwater pond between Hoya and Anderson Dahlen north of 143^rd Avenue.
• Alternate bid – The alternate bid specifies directional drilling of watermain across as much of the project area as feasible.

 
Copies of the title sheet and the general layout are attached for reference. Staff will have a full set of plans available at the meeting to address any specific design questions Council may have. As has been stated in similar previous cases, Staff recommends not attaching final plans to Council cases to prevent bidders from using those plans to bid the project, which can result in bids that do not reflect plan addendums.       

Bids will be advertised in Finance and Commerce and in the Anoka Union Herald on Friday, October 29, 2021, and on November 5, 2021.  Bids will also be advertised and managed online on QuestCDN.  

Observations:
The current bidding environment for utility pipes is extremely volatile.  There is currently an overall shortage of pipe and appurtenant materials for various material types. This is due to a shortage of materials caused by supply chain disruptions due to recent extreme weather events, a shortage of drivers, shipping lane blockages, etc. All this is resulting in increased pipe costs and long delivery times between the time materials are ordered and the time they are delivered. On average, pipes are not able to be delivered for 3 to 6 months or more from the time they are ordered. Staff therefore recommends bidding this project as soon as possible, allowing an extended bidding window (Staff recommends 2 months), and allowing bidders as much time as possible to substantially complete the work (Staff recommends a substantial completion deadline of May 2023 to ensure the trunk watermain is in place and operational by the time the new Water Treatment Facility is operational in the fall of 2023). All this should allow bidders to work with materials suppliers to receive the best bid prices possible.
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #21-303 approving Plans and Specifications and authorizing advertisements for 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 equated to 6.89-percent of the preliminary estimated trunk watermain improvements construction cost of $3,424,750.
 
Construction cost estimates based on final plans and specifications for the base and alternate bids are as follows;

• Base bid construction cost estimate = $4,880,000
• Alternate bid construction cost estimate = $4,900,000

 
The significant difference in costs between the preliminary estimate and the current estimates is due to the recent volatile bidding environment for pipe materials. At this time, it is not known when the volatile bidding environment related to utilities may subside.  
 
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.  

On October 19, 2021, the Public Works Committee unanimously recommended City Council approval of plans and specifications and authorizing advertisements for bids for Improvement Project #21-08, or alternative #1.
 
Staff also recommends approving alternative #1.  

Adopt Resolution #21-303 approving Plans and Specifications and authorizing advertisements for bids for Improvement Project #21-08, Water Treatment Plant Trunk Watermain Improvements.