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Agenda Item: 12(d) |
Prepared By: Jeffrey E. Poteet, General Manager |
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Business: City Council Item |
Department: Water and Sewer |
Subject:
Title
Award of Contract to Cardinal Contractors, Inc. for the Construction of the Biologically Active Filter (BAF) Improvements Located at the Source Water Facility in the Amount of $9,822,100 - Jeffrey E. Poteet, General Manager, Water & Sewer Department
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BACKGROUND:
The City’s primary raw water source is located nine miles north of Marco Island at the City’s Source Water Facility. This raw surface water has a high organic compound level and is treated utilizing the lime softening process followed by microfiltration (MF) membranes at the North Water Treatment Plant (NWTP). The high organic content level in the water accelerates the life of the MF membranes, reducing their typical lifespan from 8 to 10 years to 3 to 6 years. The MF system has six trains (racks) of membranes, each train containing 72 membrane canisters, with an approximate cost of $300,000 per train.
To strengthen the City's water treatment capabilities and ensure compliance with future regulations, the implementation of BAF is a pivotal solution. The BAF effectively removes the high concentration of organic compounds and improves the raw water quality prior to the lime softening treatment process at the NWTP. This pretreatment filtration by BAF eliminates the organics responsible for membrane fouling, thereby restoring the full lifespan of the membranes and adverting the expense of premature replacements. Additionally, the BAF project promises a 90% reduction in color and eradication of taste and odor from the raw water. By strategically positioning BAF units upstream of the lime softening process at the NWTP, the City aims to address the challenges posed by the heightened levels of organic compounds in the raw water effectively.
On 1/10/2022, City Council authorized the City Manager to issue a purchase order to Jacobs Engineering Group Inc. for the design, permitting, and limited engineering services for the BAF project. The design was completed, and the project was sent out to bid. The public bid (ITB#2023-027) was advertised on 8/27/2023. A total of 334 suppliers were notified, and 36 downloaded the bid package. The City received the following bids on 11/16/2023:
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Company Name |
Construction Cost |
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Cardinal Contractors, Inc. |
$9,932,100.00 |
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PWC Joint Venture, LLC |
$10,574,500.00 |
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Lawrence Lee Construction Service |
$11,229,000.00 |
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Douglas N. Higgins, Inc. |
$13,420,000.00 |
*Each bid included a 10% owner-initiated contingency for unforeseen expenses.
The City extended a counteroffer to the lowest bidder, proposing a revised total contract price of $9,822,100. This adjustment would stem from a reduction of $100,000 from the initial subtotal. Essentially, the revised subtotal suggested by the City amounts to $8,911,000, compared to the originally bid $9,011,000.
In presenting this counteroffer, the City aims to strike a balance between securing the best value for the project and respecting the bid process. This reduction reflects careful consideration of budgetary constraints while ensuring the project's quality and completion within specified parameters. By negotiating in good faith with the lowest bidder, the City seeks to achieve a mutually beneficial agreement that meets the needs of both parties.
Upon thorough examination of the submitted proposals, the staff has determined that all four submittals align with the bid request, with Cardinal Contractors Inc. presenting the most cost-effective solution. It is the staff’s recommendation to grant the construction contract to Cardinal Contractors Inc. for the construction of the BAF.
FUNDING SOURCE / FISCAL IMPACT: The approved FY-2024 Water and Sewer Capital Improvement Program budget has sufficient funding for this crucial project. Within Fund 431, GL account 431-5300-5336-606400-22013 has been earmarked with $5,271,003.03 to support the BAF initiative. Furthermore, GL account 431-5300-5336-606300-17005, designated for the conversion of the water treatment process from lime softening to nanofiltration, retains a balance of $5,085,956.10. However, the initiation of the conversion endeavor hinges upon the successful completion of the BAF project.
The commencement for the design phase for the nanofiltration project is at least 3 years out, prudence dictates an allocation of $4,800,000 from GL account 431-5300-5336-606300-17005 to fully underwrite the BAF project, inclusive of staff time allocations. This transfer ensures the seamless execution of the BAF initiative while safeguarding sufficient funding reserves for the subsequent design phase of the lime softening to nanofiltration conversion project.
RECOMMENDATION:
Authorize the City Manager to execute a contract with Cardinal Contractors, Inc for the construction of the Biologically Active Filter Improvements in the Amount of $9,822,100 (including contingency).
POTENTIAL MOTION:
“I move to authorize the City Manager to execute a contract with Cardinal Contractors, Inc for the construction of the Biologically Active Filter Improvements in the Amount of $9,822,100”.