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Resolution 49-11RECORD OF RESOLUTIONS Blank, Inc.. Faan No. B 5 Resolution No. 49 -11 A RESOLUTION ACCEPTING THE LOWEST AND BEST BID FOR THE CONSTRUCTION OF THE COMPRESSED NATURAL GAS FUELING PROJECT Parsed 20 WHEREAS, the City of Dublin is modifying its existing fueling facility to compress and dispense natural gas as a vehicle fuel; and WHEREAS, the City of Dublin is modifying its existing fleet maintenance facility to allow for the repairs and maintenance of compressed natural gas vehicles; and WHEREAS, the City has been awarded a grant from the Department of Energy and Clean Fuels Ohio to partially fund the project; and WHEREAS, under the Grant agreement, the City must hire a contractor to make these modifications and install the compressed natural gas equipment; and WHEREAS, the City has administered a public bid process in accordance with the City's bidding rules and regulations and complied with the Department of Energy's bidding regulations; and WHEREAS, R.W. Setterlin Building Company's bid to complete the construction for $1,697,300.00 has been determined to be the lowest and best bid. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, � — of its elected members concurring, that: Section 1. R.W. Setterlin Building Company is hereby declared to be the lowest and best bidder for the construction of the Compressed Natural Gas Fueling Project. Section 2. The City Manager is hereby authorized to execute an agreement with R.W. Setterlin Building Company for $1,697,300.00 to complete the construction phase of this project. Section 3 . It is found and determined that all formal actions of the Council of the City of Dublin concerning and relating to the passage of this Resolution were adopted in an open forum of this Council and of any of its subcommittees in compliance with all legal requirements, including Section 121.22 of the Ohio Revised Code. Section 4. This Resolution shall be effective upon passage in accordance with Section 4.04(a) of the Revised Charter. Passed this _ day of J-eOfi2hnL -C1l'� 2011. y. r F/ lll � I ! r l-- 0 — •1 ing O fficer ATTEST: C _l " Clerk of Council Office of the City Manager 5200 Emerald Parkway • Dublin, OH 43017 -1090 CTfY OF DUBLIN_ Phone: 614 - 410 -4400 • Fax: 614 - 410 -4490 Memo To: Members of Dublin City Council From: Marsha I. Grigsby, City Manager Date: September 22, 2011 Initiated By: Ronald L. Burns, Director of Streets and Utilities Re: Resolution 49 -11 - Accepting Lowest and Best Bid for Construction of the Compressed Natural Gas Fueling Project Summary The construction component of the compressed natural gas (CNG) fueling project consists of installation of the natural gas compressors and fuel dispensers, as well as making modifications to the existing fleet maintenance facility to allow for the maintenance and repairs of CNG vehicles. Bid and contract specifications for this work were advertised in accordance with City of Dublin and Department of Energy requirements. A pre -bid meeting was held on August 4, 2011. The public bid opening occurred on August 15, 2011 and four bids were received. The cost estimate for this project was $1,640,000. Due to the complexity of the contract specifications, all bidders were required to place $170,000 in contingency funds in their bids. The results are as follows: Cla7[ Altman Company less contingency R.W. Setterlin Building Company less contingency Messer Construction less contingency Central Ohio Building Company less contingency Bid Amount Contract Amount $1,750,000.00 (bid withdrawn) 170,000.00 $1,580,000 $1,867,800.00 170,500.00 $1,697,300 $2,035,000.00 170,000.00 $1,865,000 $2,058,500.00 170,000.00 $1,888,500 Due to the fact that the Altman Company withdrew its bid soon after the bid opening, R.W. Setterlin Building Company was determined to be the lowest bidder. R.W. Setterlin Building Company is a reputable company with extensive experience in this size construction. R.W. Setterlin Building Company has completed work for the City in the past with favorable results. Memo re. Resolution 49 -11 - Bid for Compressed Natural Gas Fueling Project September 22, 2011 Page 2 of 3 The difference between the cost estimate and contract amount (bid amount less contingency) for this project is due to the difficulty in determining the cost of the CNG equipment installation and the fleet maintenance facility electrical work. In addition, all bidders were required to place a contingency in the amount of $170,000 in their bid. Due to the complexity of the project and contract specifications, it was believed that this level of contingency funding could be necessary. After a comprehensive review of the construction contract specifications with Di 7 and R.W. Setterlin, staff does not believe the contingency funds will be utilized. Legal staff completed an analysis of all bids. Based upon the careful review of R.W. Setterlin Building Company's bid conducted by staff, DLZ and counsel, and considering the price of the bids, staff recommends that Council declare R.W. Setterlin Building Company to be the lowest and best bidder for the project and award the contract to R.W. Setterlin Building Company. Project Cost Update The grant application for this project was prepared and submitted in 2009. Preliminary cost estimates were prepared based on a smaller scope, as well as cost estimates prepared by staff. Included in the estimates was the cost of 44 replacement vehicles, including the CNG conversion kits, the natural gas compressors and related components, the necessary modifications to the existing fleet maintenance facility, and the installation of the natural gas compressors and fuel dispensers. The 2012 -2016 Capital Improvements Program (CIP) programmed $2,175,000 for the compressor equipment, design of the facility modifications, the construction to install the equipment and modify the facility, and other minor costs. The contract for the compressor equipment was awarded in July in the amount of $789,399 and the design costs are approximately $184,000. These components total $973,399, resulting in $1,201,601 remaining from the amount programmed in the CIP. Based on the lowest and best bid for the construction contract, the overall project exceeds the original preliminary estimated project costs by $495,733. The preliminary cost projections underestimated the cost of the electrical work necessary to make the modifications to the fleet maintenance facility. Also, due to the age of the facility, modifications to the HVAC system and other upgrades would still have been necessary, even if the opportunity to operate a CNG facility had not become available. These upgrades were not necessarily part of the original estimate but are prudent to complete in conjunction with the CNG modifications. This contributed to the overall cost of the fleet facility renovations. Sufficient funding is available in the Capital Improvements Tax Fund for these additional costs. In addition to exceeding the preliminary estimated project costs, the projections did not include the unanticipated cost of extending the high pressure gas line and related easements. The cost of these improvements total approximately $195,000. The City was awarded a grant in the amount of $1,511,099 from the Department of Energy. Of that amount, $1,086,899 is for the purchase and installation of CNG - related equipment as well as modifications to the existing fleet maintenance facility. The remaining grant funds are for costs Memo re. Resolution 49 -11 - Bid for Compressed Natural Gas Fueling Project September 22, 2011 Page 3 of 3 related to the purchase and installation of CNG conversion kits in 44 vehicles. The City will also receive $275,000 from IGS Energy for this project. Recommendation Staff recommends approval of Resolution 49 -11, authorizing the City Manager to execute an agreement with R.W. Setterlin Building Company in the amount of $1,697,300.00 for the construction of the project described above.