AGENDA MEMORANDUM

 

 

Meeting Date:           June 27, 2011

 

From:                          Mike Thornton, Purchasing Manager

 

Subject:                      Resolution authorizing an agreement with Beach Construction Company for improvements to the Highland Lakes water treatment plant

 

 

Staff Recommendation:

Staff recommends execution of the agreement with Beach Construction Company for water treatment plant (WTP) construction services for $1,997,000.00; and two additive alternates for an additional $32,000.00 resulting in a total contract price $2,029,000.00.

 

Analysis:

This project is to construct water treatment plant improvements at the Highland Lakes WTP.  The improvements include site work, construction of a pump building, well pumps and equipment, electrical equipment and systems, auxiliary generator, installation and connection of all valves and piping, ground storage tank, and Siemens instrumentation and control equipment and systems.

 

The project will convert the existing water treatment plant from an elevated ground storage tank to a ground level storage tank.  Following completion of the improvements and ground storage tank, the elevated tank will be dismantled and removed.  The concrete footings of the existing elevated tank will not be removed due to their size and the possibility demolition may damage some piping that will be installed in the new construction.  The footings do not interfere with the new construction and planned future improvements at the WTP.

 

The City requested contractors to submit pricing on three additive alternates of 1) Demolition of existing elevated tank, 2) Installation of landscaping on and around the WTP site, and 3) Remove existing chain link fence and install new vinyl coated chain link around the WTP site.  The City has selected the contractor to demolish the existing elevated tank and install landscaping.  The City intends to contract with a fencing vendor following construction for the fence replacement.  Staff believes a better price on the fence can be obtained from a local contractor.

 

When this project is completed the water pressure in the system will be greatly improved providing better service to the customers served by this water plant. Once this project is completed, this will ensure the City can meet current and future demand thus keeping us in compliance with all regulatory agencies.

 

On February 21, 2011, the Purchasing Division issued Invitation to Bid (ITB) 110161 inviting interested and qualified firms to submit sealed bids for consideration by the City.  The ITB sought offers for a Base Bid covering 11 major components.  The ITB included three Additive Alternates which could be awarded to the lowest responsible bidder of the Base Bid, should funds be available. All bids received were below the $2,700,000.00 engineer’s opinion of estimated cost which will allow including Additive Alternates.

 

On March 22, 2011, the City received nine responses to the invitation to bid.  The City engineer for this project (AECOM, USA) reviewed the bid submittals and recommended award of the bid to the lowest bidder, Encore Construction Company, following a detailed review of their bid and references.

 

Following award and execution of the Agreement with Encore Construction Company by the City Commission on May 29, 2011, the City learned Encore omitted a significant equipment cost of approximately $208,000.00  from its bid.  Following Encore’s confirmation they could not fulfill the contract for the bid/contracted price; the City has elected to terminate the agreement for convenience.  Approval of the Termination for Convenience agreement with Encore is being submitted as a separate actionable item by commission.

 

Elimination of Encore Construction as non-responsive has left Beach Construction Company as the next lowest responsive and responsible bidder.  The City has verified the contract amount includes all costs for labor, material, equipment and services as specified in the ITB document.  Beach Construction has confirmed their bid amount does include the $221,000.00 for the Variable Frequency Drives (VFDs) omitted by Encore; and the $170,000.00 allowance for SCADA Instrumentation and Control equipment as specified.

 

The overall difference between the initial low bid of Encore and the next low bid of Beach Construction is $9,000.00.  There is a $27,000.00 difference on the base bid amount but when adding in the two additives alternates the difference between the bids amounts nets to $9,000.00.

 

SUMMARY OF BIDS

 

BIDDER NAME

Base Bid

Amount

Alternate #1

Tank Demo.

Alternate #2

Landscaping

Total w/ Alternates

 1 & 2

*Encore Construction Co.

Winter Garden, FL

$1,970,000

$21,000

$29,000

$2,020,000

Beach Construction Company

Gainesville, FL

$1,997,000

$12,000

$20,000

$2,029,000

Prime Construction Group, Inc.

Orlando, Fl

$2,015,000

$27,097

$23,356

$2,065,453

Sawcross, Inc.

Jacksonville, FL

$2,044,000

$30,000

$20,000

$2,094.000

Brandes Design-Build, Inc.

Clearwater, FL

$2,149,000

$26,000

$24,000

$2,199,000

TLC Diversified, Inc.

Palmetto, FL

$2,177,700

$16,400

$25,900

$2,219,300

Masci Corporation

Port Orange, FL

$2,300,990

$19,600

$28,500

$2,349,000

McMahan Construction Co., Inc.

Deland, FL

$2,306,000

$32,000

$35,000

$2,373,000

Censtate Contractors, Inc.

Winter Haven, FL

$2,344,590

$10,860

$18,825

$2,374,275

* Following contract award and execution, Encore Construction has been found to have submitted a non-responsive bid.  The executed agreement with Encore Construction will be terminated for convenience by the City.

 

The Local Business Enterprise (LBE) preference was not a factor in this bid evaluation as none of the bidders met the requirements of being considered a LBE. 

 

Options:

1.  Authorize execution of an Agreement with Beach Construction Company, Inc. for a total of

    $2,029,000.00; or

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

The current budget includes sufficient funding for the contract amount of $2,029,000.00 which was rolled forward from Fiscal Year 2009-10 and will be funded with available 2007 Bond Funds.

 

 

Submission Date and Time:    6/22/2011 5:58 PM____

 

Department: _Env. Services / Water_____

Prepared by:  _Mike Thornton________                     

Attachments:         Yes_X__   No ______

Advertised:   _X___Not Required ______                     

Dates:   _February 20, 2011_____________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________            

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________JB______                                     

                              

Deputy C.M. ________DD_ _______                                                                         

Submitted by:

City Manager ___________________

 

Account No. 043-3099-533.63-10____

 

Project No. _430006_____________

 

WF No. ____WF0459101_________

 

Budget  ____$2,700,000.00_________

 

Available ___$2,700,000.00_________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH BEACH CONSTRUCTION COMPANY, INC. OF GAINESVILLE, FLORIDA FOR CONSTRUCTION SERVICES RELATED TO THE HIGHLAND LAKES WATER TREATMENT PLANT IMPROVEMENTS FOR A TOTAL VALUE OF $2,029,000.00; AND PROVIDING FOR AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement with BEACH CONSTRUCTION COMPANY, INC. whose address is P.O. BOX 141860, GAINESVILLE, FLORIDA  32614-1860 for construction services related to the Highland Lakes water treatment plant improvements pursuant to Invitation to Bid 110161.

 

             THAT this resolution shall become effective immediately upon adoption.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _27th____ day of __June___ 2011.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

____________________________________

City Clerk