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Shakopee City Council
May 18, 2021
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| | | | | | | | | FROM: | Darin Manning, Engineering Project Coordinator | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Reject bids for the 2020 SCADA System Improvements, Project Sewer-19-005. | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution R2021-081, rejecting bids for the 2020 SCADA System Improvements, Project Sewer-19-005. | | |
| | | | | | | | Recommendation:
Adopt Resolution R2021-081. | | |
| | | | | | | | Discussion:
The city's Capital Improvement Plan (CIP) contains the 2020 SCADA System Improvements Project Sewer-19-005. On April 6, 2021, the City Council adopted Resolution R2021-054 approving the plans and specifications, and authorizing bidding of the project.
In accordance with Minnesota Statute Section 471.347 Uniform Municipal Contracting Law, bids were solicited and opened on May 3, 2021. Four (4) bids were received. Egan Company, from Brooklyn Park, MN, was the low bidder in the amount of $438,218.00 (see the attached resolution for the bid tabulation summary). The most recent engineer's estimate performed in March 2021 amounted to $320,000.
Based on the higher than expected bid amounts, staff recommends rejecting all bids at this time. Staff will then evaluate repackaging the project with the L16 Rehabilitation Project. Other potential modifications will include possible scope changes to the SCADA project to reduce the overall project cost (e.g. material substitutions, possible elimination of remote sewer monitoring locations and other changes as feasible).
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| | | | | | | | Budget Impact:
This project is budgeted in the 2021 Capital Improvement Plan. The Cost and Funding Summary below provides estimate amounts as planned in the 2021 CIP budget and updated total estimate based on the low bid.
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CIP
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Updated Estimate
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Budget
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Based On Low Bid
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COSTS
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Improvements Cost
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$395,000
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Equipment Supply and Install
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$438,218
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PLC/SCADA Programming
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$90,000
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Elec. Supply and Cloud Hosting
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$40,000
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Contingency
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$40,000
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$15,000
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Subtotal
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$435,000
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$583,218
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Eng/Admin/Legal
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$114,000
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$108,000
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Total Estimated Cost
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$549,000
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$691,218
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FUNDING
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Sanitary Sewer Fund
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$549,000
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$691,218
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Total Funding
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$549,000
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$691,218
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The updated project cost of $691,218 exceeds the $549,000 CIP budget by 26 percent. The high bids are partially due to the escalation of material costs experienced over the past couple months. Discussions with the bidders also indicate that many contractors' schedules are full, leading to the labor cost increases. | | |
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