Title
Resolution to Award a Contract for the Water Treatment Plant (WTP) HVAC Improvements Project to Great Lakes Mechanical ($598,000.00)
Memorandum
This memorandum and resolution requests approval to award a contract to Great Lakes Mechanical for the WTP HVAC Improvements Project
The HVAC Improvements Project is included as a high priority project for 2009 in the City's approved Capital Improvement Plan. This project addresses several HVAC deficiencies at the Water Treatment Plant facility. The major components of the project include: replacement of an air handler that supplies the filter press building that has deteriorated beyond repair, replacement of the HVAC system for the ozone electrical room with a unit that provides cooling (the existing system does not have cooling capacity and the electrical equipment in that space provide a significant heat gain during summer months which could pre-maturely age the equipment), modifying the HVAC system for the laboratory (currently the lab requires supplemental heat in the winter to keep the temperature at a comfortable level for staff), and replacement of several exhaust fans and heating units that are no longer repairable.
The City received the following three bids to complete the full scope of work:
Great Lakes Mechanical - $698.000.00
Monroe Plumbing and Heating - $754,900.00
John E. Green Company - $874,900.00
While Great Lakes Mechanical submitted the lowest responsible bid in the amount of $698,000.00, subsequent to bid submission, they have offered a reduction in their bid price by $100,000.00 by substituting an alternate electrical subcontractor. The City is willing to accept the alternate subcontractor to realize this savings. Because Great Lakes Mechanical was the lowest bid prior to this proposed reduction, this change does not affect the ranking of bids. For this reason, Great Lakes Mechanical was determined to be the lowest responsible bidder, and it is recommended that their adjusted bid for $598,000.00 be accepted, and that Great Lakes Mechanical be awarded the contract for the HVAC Improvements Project.
Council approved this project and associated funding during the FY08 and FY09 Capital Budget process. You are also requested to establish a contingency of $60,000.00 for the Great Lakes Mechanical contract for change orders to be approved by the City Administrator. Funds for this project are to be advanced from the Water Supply System Unobligated Fund Balance to be repaid pending the sale of water revenue bonds.
Great Lakes Mechanical has received Human Rights approval on July 1, 2008, and complies with the living wage ordinance.
Staff
Prepared by: Brian Steglitz, P.E., Sr. Utilities Engineer, WTP
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, It is necessary to complete the HVAC Improvements Project to replace several HVAC units that have exceeded their serviceable life and address some HVAC deficiencies at the Water Treatment Plant (WTP);
Whereas, Of the three bids received, Great Lakes Mechanical provided the lowest responsible bid in the amount of $698,000.00;
Whereas, Great Lakes Mechanical provided an adjusted bid in the amount of $598,000.00 by substituting their proposed electrical subcontractor with an alternate;
Whereas, Great Lakes Mechanical has received Human Rights approval on July 1, 2008, and complies with the Living Wage Ordinance; and
Whereas, Council approved this project and associated funding during the FY08 and FY09 Capital Budget process.
RESOLVED, That Council accepts the proposal and awards a contract to Great Lakes Mechanical in the amount of $598,000.00 for the HVAC Improvements Project;
RESOLVED, That a contingency in the amount of $60,000.00 be approved to finance change orders to the contract with Great Lakes Mechanical to be approved by the City Administrator;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the contract for services after approval as to substance by the City Administrator and approval as to form by the City Attorney;
RESOLVED, That the City make the following declaration for the purpose of complying with the reimbursement rules of Treas. Reg. 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended, that the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.