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Item 4BCITY OF SOUTHLAKE MEMORANDUM (February 7, 2012) To: Shana Yelverton, City Manager From: Robert H. Price, P.E., Director of Public Works Subject: Award construction contract to Circle C Construction in the amount of $6,739,020 for the construction of the T.W. King 30" Water Transmission Main and Meter Station Action Requested: Award construction contract to Circle C Construction in the amount of $6,739,020 for the construction of the T.W. King 30" Water Transmission Main and Meter Station Background Information: The adopted Capital Improvements Program (CIP) includes funds for the construction of the T.W. King 30" Water Transmission Main and Meter Station within the City of Southlake and the Town of Westlake. Freese and Nichols, Inc. has designed and prepared construction plans for the project. The project consists of approximately 19,665 linear feet of 30 -inch water line on West T.W. King Road in Southlake, which continues northwest on the south side of SH114. The line will turn south on FM1938 and continue south to connect to the existing line in Florence Road. The project also includes approximately 3,400 linear feet of 12 -inch water line from north of Beam Drive to Florence Road, parallel to the 30 -inch water line. Seven (7) bids were received on January 17, 2012. The bids have been reviewed by Freese and Nichols, Inc. and city staff and are tabulated as follows: BIDDER BID AMOUNT Circle C Construction ARK Contracting Services S.J. Louis Construction, Ltd Lewis Contractors North Texas Contracting, Inc Merryman Excavation Wright Construction Co., Inc. $6,739,020.00 $7,191,365.00 $7,641,883.00 $7,996,010.00 $8,631,400.00 $10,048,302.00 $10,269,297.70 A breakdown of the major project components of the bid is as follows Description Cost 30" Water Transmission Main /12" Water Line $5,786,035 Meter Station $452,985 Potential Early Substantial Completion Bonus $500,000 Total Cost $6,739,020 The substantial completion date for the T.W. King 30" water transmission main and meter station is set in contract documents as April 15, 2013. Final completion is required by 30 calendar days after the substantial completion date. The Contractor may earn a bonus of up to $500,000 if they meet the early substantial completion requirements set in the contract documents. Completion of the project before the April 15, 2013 substantial completion date would raise the city's level of confidence that the 30" water line will be complete and functional prior to the high water demand period. The bonus payment schedule, below, is included in the contract documents and shall not be subject to change for any reason, including Owner, Engineer or Contractor created delays or claims. Date of Certificate Of Substantial Completion After April 5,2013 April 5, 2013 March 29, 2013 March 22, 2013 March 15, 2013 March 8, 2013 March 1, 2013 February 22, 2013 February 15, 2013 or earlier Total Bonus to be Paid to Contractor $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $400,000 $500,000 The low bid was approximately 16% lower than the engineer's estimate of $8,000,000. Freese and Nichols, Inc. recommends award of the contract to the low bidder, Circle C Construction. The City Staff concurs in this recommendation. Financial Considerations: The recommended contract award amount is $ 6,739,020. Funds are available in the approved CIP project budget for the T.W. King 30" Water Transmission Line and Meter Station project. The current available project budget for the water line and meter station project is $9,000,000. Strategic Link: The construction of the T.W. King 30" Water Transmission Main and Meter Station links to the city's strategy map relative to focus areas of Infrastructure and Performance Management and Service Delivery. The specific corporate objectives that are met by this construction project are to invest to provide and maintain high quality public assets, and improve performance and delivery of operational processes. Citizen Input/ Board Review: N/A Legal Review: This is the standard construction services contract that has been previously reviewed by the City Attorney. Alternatives: The Council may award the contract to Circle C Construction or reject all bids. Supporting Documents: Location Map Recommendation Letter Bid Tabulation Staff Recommendation: Award construction contract to Circle C Construction in the amount of $6,739,020 for the construction of the T.W. King 30" Water Transmission Main and Meter Station Staff Contact: Robert H. Price, P.E., Public Works Director Gordon J. Mayer, Jr., P.E., City Engineer Cheryl Taylor, P.E., Civil Engineer CL m V 'NONE% O o • - L O J January 18, 2012 City of Southlake Attn: Cheryl Taylor, P.E. Assistant City Engineer 1400 Main Street, Suite 320 Southlake, Texas 76092 Re: T.W. King 30" Water Transmission Main and Meter Station SOL09210 Recommendation of Award of Construction Contract Dear Ms. Taylor: On Tuesday January 17, 2012, the City of Southlake received and opened seven bids for the referenced project, with total bid prices ranging from $6,739,020.00 to $10,269,297.70. Freese and Nichols' estimate of probable construction cost was $8.0 million. The bid consisted of three main areas, the 30" water transmission main, the meter station, and a potential bonus for early completion. This potential bonus for early completion was set at $500,000.00 for all bidders, in compliance with the bonus schedule indicated in the construction contract documents Section B — Notice for Bidders. A copy of this bonus schedule is attached for reference. We have reviewed the bids received and have prepared a tabulation of bids, which is attached with this letter. Please note that math errors were found on two of the bids received, and the bid tabulation provides the corrected amounts. Neither of the two bids with the corrected amounts were the apparent low bid. The apparent low bidder was Circle C Construction with a total bid of $6,739,020.00, which was broken down as follows: 30" Water Transmission Main = $5,786,035.00 Meter Station = $ 452,985.00 Potential Early Completion Bonus = $ 500,000.00 Total Price Bid = $6,739,020.00 Circle C Construction has performed construction on several projects for which we have been the engineer of record, and has recently completed Line Segments A and F of this 30" Water Transmission Main. Based upon our experiences with Circle C Construction, it is our opinion that they are qualified to construct this project. We recommend award of this construction contract to Circle C Construction in the amount of $6,239,020.00 for construction of the 30" Water Transmission Main and Meter Station, plus a bonus of up to $500,000.00 if they meet the early substantial completion requirements indicated in Section B — Notice for Bidders. Your �;Zly, ,.;j ice'' " (/ /Ron King, Freese and Nichols, In . 2220 San Jacinto Blvd., Suite 330 • Denton, Texas 76205 • 940 - 387.4600 • fax 940 - 3874677 www.freese.coni 9 ys��o Mi �E A I 8 �g 88888S8a888S88888888888 - = 3 3y ° 8888888$88888888888 $� 58,8 °8S8e °a 8,55888 °88 °88888 � R'�48 r88�o8��33$��Sm�eood 8888888888888888888888a = 88 °8888S88SSS °8888,88888 _ 0$8 w7w w8 °tY: °Xe � 8o^wx 8 °88 °88 „3" w 85888888$° 8.'^,$8a5 »�oR�g »$mS _ 8880 °8 &8,S 8SS88888$8888 �_ g��� 858SSSS 888888888858888 Sa ° ° ° °° °sa55s8a asssa8 �4 yEm 8888888888888S888SSS8$S 88888888888888888888888 - w 888888,88888888888888888 woe - R 888 ° ° °8 °8888888888888 °8 ci F m9 a - e n8 mg 8G3� ffi9��hti - �g5ay�3y� J Q W - 2 m h Q m N H C j _ Z H 2 ON 0 00 TIME OF COMPLETION, LIQUIDATED DAMAGES, AND BONUS Bidders must agree to commence work on or before a date to be specified in a written "Notice To Proceed" of the Owner and to fully complete the project within the specified time as stated in the proposal. Bidder must agree to pay liquidated damages, as per Item 1.36.1 of the "North Central Texas Council of Governments Standard Specifications for Public Works Construction ", except that the liquidated damages shall be assessed at the rate of $2,000 per day. Liquidated damages are also applicable to other specific milestones. See Section 01030 —"Special procedures" for more detail. A bonus will be paid by the Owner to the Contractor for early substantial completion (as defined in the proposal) of the project, in accordance with the schedule below. The bonus payment schedule shall not be subj ect to change for any reason, including Owner, Engineer or Contractor created delays or claims. Date of Certificate of Substantial Completion Total Bonus to be Paid to Contractor After April 5, 2013 $0 April 5, 2013 $50,000 March 29, 2013 $100,000 March 22, 2013 $150,000 March 15, 2013 $200,000 March 8, 2013 $250,000 March 1, 2013 $300,000 February 22, 2013 $400,000 February 15, 2013 or earlier $500,000