#02 Award of contract for treatment plant upgrade and expansionDEPARTMENT OF PUBLIC WORKS MEMORANDUM
October 16, 2009
TO: City Council
FROM: Daniel L. Lynch, PE, Utility Director
SUBJECT: Award of Bid Schedule “J” 2009—Contract 2009-26
Wastewater Treatment Plant Upgrade and Expansion
Summary
The Wastewater Treatment Plant Upgrade and Expansion Project has been in
development for a number of years and has been brought before the City Council on
several prior occasions, either to provide updates or to seek authorization to proceed
with project-related tasks. This project was last before the Council in November 2008
when the Council authorized staff to proceed with the development of engineering plans
and specifications needed for its construction. On September 21, 2009 the City
received five bids for the construction of this project. The five bids were tightly grouped
with a low bid of $26,950,000 and a high bid was $29,309,000. (The high bid is only
8.7% above the low bid. See the bid tabulation at the end of this memo).
This project is the major component of the 30% increase in wastewater rates which is
discussed in a separate memo from the Finance Division.
Department Recommendation
Staff supports proceeding with this project and recommends award of the Wastewater
Treatment Plant Upgrade and Expansion Project to the low bidder, C. D. Smith
Construction Inc., of Fond du Lac, WI in the amount of $27,330,000. The
recommended award amount includes the base bid of $26,950,000 and additive
Alternate 3 in the amount of $380,000. Additive Alternate 3 will provide funding to install
a standby generator for the treatment plant.
Staff is not recommending that the City award additive Alternate 2 in the amount of
$1,871,000 for the construction of an additional aeration tank or the deductive Alternate
1 which deletes the replacement of certain grit removal equipment from the project.
Suggested Council Action
Move to award the Wastewater Treatment Plant Upgrade and Expansion Project base
bid and additive Alternate 3 to C. D. Smith Construction Inc., of Fond du Lac, WI in the
amount of $27,330,000. The motion should also include the City’s intention to fund this
project using:
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previously borrowed general obligation notes,
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the Wastewater Utility Replacement Fund,
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the State of Wisconsin Clean Water Fund Loan Program,
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the Focus on Energy Grant Program, and
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other funding sources which may become available.
City Manager Recommendation
The City Manager concurs with the Utility Director’s recommendation.
Analysis
The Wastewater Treatment Plant Upgrade and Expansion Project is a major upgrade to
the WWTP and an expansion of its treatment capacity. This project is necessary to
serve the present and future wastewater treatment needs of the City. Approximately
$3.83 million (or 14% of the recommended award amount) will specifically address plant
capacity deficiencies. Those deficiencies are primarily in the aeration system and
sludge pumping systems. The remainder of the project is focused of upgrading the
existing facility. This project will replace the plant’s older equipment and certain
facilities (between 20 and 40 years old) which have exceeded their useful lives. It will
also provide additional equipment for some of the existing treatment processes where
additional redundancy is needed to improve the reliability, safety and efficiency of those
treatment processes. Additionally, this project will update the equipment and facilities
needed to allow the efficient and beneficial reuse of the plant’s biosolids (sludge) as a
fertilizer for area farm land.
The project was bid as a base bid which includes the majority of the project. However,
several component parts of the project were separated to obtain more specific cost
information about those components. This was done to provide the City more flexibility
in awarding the project. Those component parts are:
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Deductive Alternate 1—This alternate reduces the base bid amount by $250,000.
It deletes the replacement of certain grit removal equipment from the project.
This equipment needs replacement and it is unlikely that a lower cost would be
obtained through rebidding so this alternative is not being recommended.
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Additive Alternate 2—This alternative increases the base bid amount by
$1,871,000 and adds a fourth aeration tank and a basin drain pump station to the
project. The estimated planning costs of these facilities were over $3 million so
the Alternative 2 bid amount is comparatively low. This fourth aeration tank is not
presently needed, but will be necessary to meet the 2030 design loadings. As the
additional aeration capacity is not presently needed its deferral will help keep the
overall project cost down. AECOM has estimated that the existing aeration tank
capacity will be adequate for at least five more years so staff is not
recommending this alternative. Please note that AECOM’s award
recommendation letter does support the award of this alternative, but does so
primarily because of the comparatively low cost. AECOM believes that rebidding
this alternative as a separate item will result in a substantially higher cost.
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Additive Alternate 3—This alternative increases the base bid by $380,000 and
adds a standby generator to this project. Although the plant does have two
separate electrical feeds, there have been occasions when severe weather has
caused extended power outages to the plant. A standby generator will allow
critical treatment processes to continue operating during extended power
outages which minimizes the future possibility of untreated sewage entering the
Rock River. Additionally, this generator will reduce the treatment plant’s annual
electric bill by allowing the plant to qualify for a lower (interruptible) electric rate.
Annual savings are estimated at $30,000 to $35,000 per year. Staff is
recommending this alternative be awarded with the base bid.
The total estimated project cost, including engineering and contingencies is
$32,745,000 and is summarized as follows:
Low bid amount $27,330,000
Construction contingency (5%) 1,367,000
Engineering services 3,648,000
Biosolids application equipment 600,000
Process equipment reductions (200,000)
Total $32,745,000
Funding for this project has come or will come from the following sources:
Previous GO Notes/User Fees $ 2,245,000
Wastewater Replacement Fund 2,700,000
WDNR Low Interest Loan Program 27,150,000
Focus On Energy Grant (est.) 250,000
EPA State/Tribal Assistance Grant 400,000
Total $32,745,000
Following review by the City Council, it is recommended that that Contract 2009-26 be
awarded to the low bidder as recommended.
cc: Eric Levitt, City Manager
Jay Winzenz, Director of Administrative Services
Mike Payne, Engineering Manager
att: Bid results
Engineer’s award recommendation
September 21, 2009
CITY OF JANESVILLE
TABULATION OF BIDS
PUBLIC WORKS BID SCHEDULE "J" -- 2009
CONTRACT 2009-26, WWTP UPGRADE AND EXPANSION
C.D. Smith Construction Base Bid: $26,950,000
Fond du Lac, WI Alternative1: $(250,000)
Alternative 2: $1,871,000
Alternative 3: $380,000
Miron Construction Co. Base Bid: $27,613,000
Neenah, WI Alternative1: $(316,000)
Alternative 2: $1,675,000
Alternative 3: $379,000
J.P. Cullen & Sons Base Bid: $28,714,897
Janesville, WI Alternative1: $(322,500)
Alternative 2: $1,588,927
Alternative 3: $387,291
Joseph J. Henderson & Son Base Bid: $28,900,000
Gurnee, IL Alternative1: $(227,000)
Alternative 2: $2,350,000
Alternative 3: $345,000
J.H. Findorff & Son Base Bid: $29,309,000
Madison, WI Alternative1: $(245,000)
Alternative 2: $2,093,000
Alternative 3: $880,000