Item 4J CITY OF
SOUTHLAKE
MEMORANDUM
(April 5, 2016)
To: Shana Yelverton, City Manager
From: Robert Cohen, Director of Public Works
Subject: Torian Place Lift Station
Action
Requested: Reject all bids for the construction of a new sewer lift station for
Torian Place.
Background
Information: In November 2009 a construction contract was issued for a project
known as the Neighborhood Sewer Project to serve Heatherwood
Estates, Royal Oaks Addition, Twin Creek Addition (NSP). The
engineering design called for a lift station to be constructed on
Creekside Drive in the Twin Creek Addition. The lift station
construction was bid at $200,000. At some point shortly after
construction commenced, residents along Creekside Drive objected
to the location of the lift station.
City staff looked at multiple options and presented those options to
the residents in February 2010 and then presented to City Council
at a work session item at the April 6, 2010 council meeting. One of
the options was to relocate the lift station to Torian Place and
construct the lift station when Torian Place developed. At some
point the decision was made to go with this option of relocation. It
was known at the time that the Torian Place lift station would be
deeper and the construction more complicated due to trees
therefore most likely increasing the cost.
Circa 2013, the Torian Place development became a reality. Staff
and the developer began discussions regarding the lift station
location within Torian Place as well as construction costs and
participation. It was determined that the cost of the lift station was
greater than the allowable 30% participation for the developer to
construct the lift station and be reimbursed by the City for the City's
share which is 66.66% of the cost to construct the lift station. The
City's consultant completed design of the lift station. Throughout
the design the consultant was providing updated opinions of
probable construction costs (OPCC). Based on the bid for the
original lift station and current construction costs the last OPCC is
$539,341 .
The approved budget in the FY15 is $600,000. The Torian Place
Lift Station as it has come to be known was advertised to bid in
February 2016.
Two (2) bids were received on March 15, 2016. The bids have
been reviewed by Lee Engineering and city staff and are tabulated
as follows:
BIDDER BID AMOUNT
North Texas Contracting $2,179,760
Rey-Mar Construction $2,164,455
The completion date time for the project is 90 calendar days.
The Torian Place development is dependent on this lift station. No
Certificates of Occupancy will be issued until the lift station is
operational. The development is in the final stages of
infrastructure construction and will be getting building permits for
houses soon.
Options for getting this lift station constructed.
1 . Ask Council to award as presented and by using all of the
Shady Oaks 8-inch sewer line money (appx. $1M) and the
balance in the N. Kimball sewer main relocation, we can come
up with the $1.6M additional funding needed.
2. Reject all bids and repackage and bid the original lift station
design and construct the lift station on Creekside Dr. The
Torian Place development could gravity flow to this lift station.
3. Reject all bids and re-advertise with a completion time of 180
days. This may get more bidders. May not affect bid pricing
much.
4. Reject all bids re-advertise with a completion time of 180 days
and have an install by open-cut option. This option would
require the removal of all trees in an 85-foot wide swath in
Torian Place in order to get equipment deep enough to dig
trenches.
Financial
Considerations: The developer of Torian Place is responsible for 33.33% of the cost
of the lift station. The developer moved forward with his project
based on the OPCC of around $600,000. Requiring the developer
to meet the agreement and fund $724,000 might cause financial
ruin to the developer.
Strategic Link: The construction of the Torian Place Lift Station project links to the
city's strategy map relative to focus areas of Infrastructure and
Quality Development. The specific corporate objectives that are
met by this construction project are to invest to provide and
maintain high quality public assets.
Citizen Input/
Board Review: N/A
Legal Review: No review required as this is a recommendation for rejection of all
bids.
Alternatives: The Council may reject all bids or authorize additional funds and
award the contract to Rey-Mar Construction.
Supporting
Documents: Location Map
Bid Tabulation
Staff
Recommendation: Reject all bids for the construction of a new sewer lift station for
Torian Place
Staff Contact: Robert Cohen., Public Works Director
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