Adopt Resolution #24-181 Accepting Quotes and Awarding Contract for Improvement Project #24-56, Lift Station No. 1 Permanent Generator 

Purpose:
The purpose of this case is to adopt Resolution #24-181 accepting quotes and awarding a construction contract for Improvement Project #24-56, Lift Station No. 1 Permanent Generator. 

Background:
The 2024 – 2033 Capital Improvement Program includes proposed project #24-SEW-002, Lift Station No. 1 Rehab and Generator, proposed for construction in 2025 at an estimated cost of $175,000.

This project proposes to rehabilitate sanitary sewer Lift Station No. 1, which is located at 13659 - 137th Avenue, by replacing the original base elbows and forcemain, upsizing the pumps, and installing a permanent emergency power supply generator on site.  This work will serve to replace deteriorating pipes and fittings, to accommodate increased sewage flowrates that have occurred since the lift station was constructed in 1990, and to prevent sewage from backing up into businesses and residences served by this and other lift stations during major power outages.
 
During power outages, staff tows a portable generator on a trailer to this and other lift stations that don’t have permanent generators.  Staff pumps each station down, then disconnects the generator and moves to the next station, and repeats the process until power is restored.  However, due to the constant and heavy sewage flowrates processed through this station, staff would not have the ability to disconnect the portable generator in the event of a long-term power outage, leaving other lift stations without power and possibly backing sewage up into neighboring homes and businesses.  

On April 9, 2024, City Council approved a proposal from Bolton & Menk, Inc. in the not-to-exceed amount of $26,400 to design the permanent emergency power supply generator and prepare plans and specifications for said improvements necessary to accommodate the permanent generator, apply for permits, administer the bid process, and provide construction related services. 
 
Pursuant to Ramsey City Council Resolution #24-159, adopted June 11, 2024, the City Council approved final plans and authorized requests for quotes.
 
On June 28, 2024, two (2) quotes were received, opened and tabulated, and the following quotes were found to comply with the approved plans and specifications and request for quotes.
 

Contractor	Total Quote
Design Electric, Inc.	$127,857.00
Killmer Electric, Inc.	$171,349.00
Engineer’s Estimate	$90.935.00

 
Design Electric, Inc. submitted the lowest responsible quote in the amount of $127,857.00 for construction of the improvements in accordance with the approved plans and specifications and request for quotes.

 

Notifications are not required for this case. 
 

Observations:
Lift Station No. 1 is not the largest lift station in Ramsey but it is the busiest, as well as the oldest, and it averages 60 starts per day.  The purpose of this project is to improve the reliability of this lift station.
 
A second project is proposed for 2025, or possibly the Fall of 2024, to further improve the reliability, and the productivity, of this lift station by making internal improvements per the adopted 2024 – 2033 CIP sheet for project #24-SEW-002, Lift Station No. 1 Rehab and Generator.    
 
No significant SCADA changes were determined to be needed as a result of these improvements, and a sound study was not completed for the generator improvements at this site.

Alternatives:
Alternative #1:  Motion to adopt Resolution #24-181 accepting quotes and awarding a construction contract to Design Electric, Inc. in the amount of $127,857.00 for Improvement Project #24-56, Lift Station No. 1 Permanent Generator.  
 
Alternative #2 - Motion to deny adoption of Resolution #24-181 at this time.  

The engineer’s estimated construction cost for the proposed improvements was $90,935.00.
 
Design Electric, Inc. submitted the low quote in the amount of $127,857.00.  The higher bid price is due primarily to the steady increase in generator prices over the last few years.  While this project could be re-bid at a later date, the expectation is that generator prices will continue to rise and the City would not likely realize a cost savings by re-bidding this project. 
 
Funding for this project, including costs for contracted design and construction related services, is proposed to come from sanitary sewer enterprise funds.   

Staff recommends approving alternative #1 for reasons noted herein.   

Motion to adopt Resolution #24-181 accepting quotes and awarding a construction contract to Design Electric, Inc. in the amount of $127,857.00 for Improvement Project #24-56, Lift Station No. 1 Permanent Generator.