01-12-2015 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, January 12, 2015 7:00 o'clock p.m. (5. WATER TREATMENT SYSTEM IMPROVEMENT continued) Edwards stated the estimate received from the engineer approximately one year ago was for roughly $450,000. hr December the City opened the bids for the project and the low bid came in at $625,000. Edwards stated the significant difference between the estimate and the low bid is likely the result of an increased scope of work and increased construction costs in the industry given the fact that the estimate was prepared a year ago. As part of the bid process, four bids were received and the low and acceptable bid was for $625,000. Edwards stated he would like to point out that three bids were tightly grouped together and one that was $100,000 higher than the other three. Edwards stated three of the bids were within five percent of each other, which represents a true and reasonable cost of what is being requested to be done. Edwards stated the general scope of the project includes the Navarre site, which consists of improving the chemical feeds in the right proportions at the right time. In addition, improvements are required in order for the City to be able to comply with the Health Department standards for separation of chemicals. At the present time the chemicals are stored in the same compartment, which is no longer permitted and poses a risk to the workers who are operating the facilities. The final improvements include a number of facilities improvements. Edwards stated since the chemicals are corrosive, some of those materials need to be upgraded and repaired. Edwards stated also as part of the bidding process, they did include a few alternates for transducers an higher quality chemical feed capability. Edwards indicated at the present time the workers have to take a tape measure, put some chalk on it, and stick it down the well, which can potentially introduce pathogens into the water. Edwards stated his recommendation is to accept and authorize the contract work. McMillan asked if the City is saving money by doing both treatment facilities at approximately the same time. Edwards stated that will save some money because there are reduced mobilization costs but that he does not know the exact amount at this time. Walsh asked if there were people who did not bid on the project but inquired about the project. Seth Peterson, Bolton & Menk, stated there were four bidders on this project and typically this type of work requires very specific contractors. Peterson stated if every one of those contractors bid on this project, the City would likely have received five or six bids. Peterson noted the City received bids from four of the main six contractors in the area that bid on this type of work. Walsh asked where the list of bidders came from. Peterson indicated they put it out for public bidding. Walsh stated he would like to see a more proactive approach taken by the City in procuring bids. Walsh stated as an engineering company, they likely have a list of different contractors that they have worked with in the past and that they likely have refined that further to five or ten top contractors. Page 11 of 19