Title
Approval of a Bid Award for the Miller and Central Lift Station Replacement Project
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to award the construction contract for the Miller and Central Lift Station Replacement Project to Nisqually Construction Services, LLC in the amount of $2,125,578.55, and authorize the City Manager to execute the contract.
Report
Issue:
Whether to award the construction contract for the Miller and Central Lift Station Replacement Project to Nisqually Construction Services, LLC.
Staff Contact:
Randy Wesselman, Project Manager, Public Works, Engineering, 360.753.8477
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The Miller and Central Lift Station, built in 1970, serves approximately 600 acres in northeast Olympia. It currently collects sanitary sewage from approximately 625 homes including some sewage that has already been pumped once by the Miller and Ann sewage lift station. It then pumps the sewage through a sewer pipe force main to the gravity sewer main at the intersection of Bethel Street and Miller Avenue.
The City hired a consultant to perform survey-level condition assessments of 16 sewer lift stations to develop planning level estimates for improved capital facilities planning. The consultant concluded that the Miller and Central Sewer Lift Station has reached the 50-year design life for original components and needed a complete overhaul including new pumps, motors, valves, electrical and instrumentation/controls. Additionally, the consultant recommended replacement of the original 8-inch asbestos concrete force main. The Miller and Central Sewer Lift Station upgrade was identified in the 2013 Wastewater Management Plan.
The new lift station is sized to accommodate the projected 50-year development/build-out of the sewer basin.
The City bid the project starting on January 24, 2021 and opened bids on February 26, 2021. The low bid of $2,125,578.55 is more than 20.8% above the Engineer’s estimate. Staff evaluated the bid, in consultation with our design consultant of Gray and Osborne, and determined that it is reasonable, and we should move forward with awarding the contract for the following reasons:
• The difference between the high and low bid is approximately $366,000. This indicates to staff that the contractors who bid viewed the project in a similar way. Rejecting the bids and rebidding the project would not likely result in different results.
• The amount of dewatering required, and the measures required to dispose of this water were underestimated in the final cost estimate. Additional detail regarding dewatering was developed and provided to contractors during the bid period. This additional information increased the cost that was bid for dewatering above that which was originally estimated.
• The design consultant indicated that recent bids they have opened for other similar projects have come in higher than the Engineer’s estimate. They believe the bid is reasonable based on the current bidding climate.
Neighborhood/Community Interests (if known):
Staff notified the Northeast Neighborhood Association and property owners directly adjacent to the project.
Options:
1. Award the construction contract for the Miller and Central Lift Station Replacement Project to Nisqually Construction Services, LLC, in the amount of $2,125,578.55, and authorize the City Manager to execute the contract.The project proceeds as planned.
2. Do not approve awarding the construction contract, reject all bids, and direct staff to rebid the project. This will cause a delay in improving the sewer lift station equipment which could potentially fail due to the age of certain components. A delay could also create higher costs and will require additional staff time.
Financial Impact:
This project is identified in the Capital Facilities Plan. Funding for the project comes from a combination of monthly utility rates and general facilities charges.
The low bid of $2,125,578.55 is more than 20.8% above the Engineer’s estimate. There are sufficient funds in the program budget to complete this project. Staff is submitting separately to Council a request for a budget modification to the allocation in the Capital Facilities Plan.
Overall project costs:
|
Total Low Bid: |
$ |
2,125,578.55 |
|
Contingency to Award (10%): |
$ |
212,560.00 |
|
Engineering: Design, Inspection, Consultants |
$ |
705,361.45 |
|
Total Estimated Project Cost: |
$ |
3,043,500.00 |
|
|
|
|
|
Available Project Funding: |
$ |
3,043,500.00 |
Attachments:
Summary of Bids
Vicinity Map