Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract and All Necessary Change Orders with Archer Western Construction, LLC for the McKinney Ranch Pump Station Improvements Project
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: January 18, 2022
DEPARTMENT: Development Services / Engineering
CONTACT: Nick Ataie, PE, Engineering CIP Manager
Paul Tucker, PE, Senior Utility Engineer
Ryan Gillingham, Director of Public Works
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution.
ITEM SUMMARY:
• This Resolution authorizes the City Manager to execute a contract and all necessary change orders with Archer Western Construction, LLC for the McKinney Ranch Pump Station Improvements Project (CIP Project WA1626) for a total contract amount not to exceed $19,600,000.
BACKGROUND INFORMATION:
• There is a companion item on the agenda seeking an Ordinance / Budget Amendment to transfer unallocated/collected water impact fees to the Fiscal Year 2021- 2022 Annual Budget and amending the 2022-2026 Capital Improvements Program to provide funds to the McKinney Ranch Pump Station Improvements Project (CIP Project WA1626).
• The Engineering Department in collaboration with the Public Works Department schedules and facilitates major improvements to the City’s water pump station facilities which is included in the annual Capital Improvement Plan (CIP).
• Major improvements to the City’s water facilities are included/budgeted in the annual CIP.
• The McKinney Ranch Pump Station Facility is located along McKinney Ranch Parkway east of Hardin Boulevard and provides water distribution for the City’s 850 and 920 service areas. It is one of four water pump station facilities operated by the City of McKinney for both storage of water (delivered by the North Texas Municipal Water District) and distribution of water to the community.
• The condition of the existing pumping equipment and systems currently in Pump Station No. 1 (PS-1) built in 1991 and Pump Station No. 2 (PS-2) built in 1999 have reached the end of their useful life and require replacement. Currently, the pumping capacity for these two pump stations to the 920 service area (920 SA) is 34.6 Million Gallons per Day (MGD) since multiple pumps are out of service. Buildout capacity per the Water Master Plan is 47 MGD.
• The performance goal is to meet buildout capacity of 47 MGD to the 920 SA with new pumps in PS-1 and PS-2.
• The improvements for this pump station will improve capacity, function, and reliability to the City’s water pumping facilities by:
o Replacement of the electrical pump components and providing a separate electrical room.
o Providing buildings to house pumps and motors eliminating weather related impacts to pumps and motors (currently outdoors).
o Providing surge protection from water pressure surges within the water system. This will help to protect pipes, valves, and pumps in the event water pressure surges are encountered.
o Reduction in operational energy cost through the conversion of a direct start motor to variable speed motor start.
o Providing an emergency backup generator for PS-1 (PS-2 has an existing emergency generator) to ensure redundancy in the event of loss of electrical power.
o Supervisory control and data acquisition (SCADA) upgrades. SCADA is a system of software and hardware elements that allows the pump operators to directly interact with devices such as door alarms, pumps, motors, electrical switchgear, generators, etc. through human-machine interface (HMI) software.
o Site security upgrades.
• Lockwood, Andrews, & Newnam, Inc. prepared the construction plans and specifications for this project. During the design process, additional improvements were added to the scope to complete all the improvements within one construction project.
• The City issued a request for proposals (21-64CSP) to solicit responses from qualified contractors for the construction of McKinney Ranch Pump Station Improvements Project (WA1626)
o Advertised in the McKinney Courier Gazette and Celina Record
o Posted on McKinney TV
o 1,026 matching eBid Supplier Notifications which included 40 historically underutilized businesses (HUB) suppliers.
• Out of 1,026 supplier notifications, one (1) competitive sealed proposal was received and opened by Procurement Services on Thursday, November 4, 2021.
• The CSP evaluation process was selected to offer the City the opportunity to evaluate the potential contractors due to the complexity of the project.
• An evaluation team comprised of two City employees and one employee from Lockwood, Andrews, & Newnam, Inc. reviewed and discussed the proposal based on the following criteria:
o 25 Points: Proposer’s Narrative Approach to Project
o 20 Points: Contractor’s Qualifications
o 35 Points: Base Bid Proposal Price
o 20 Points: Contractor Schedule of Calendar Days for Substantial Completion (All Construction Phases)
• Archer Western Construction, LLC (A-W) submitted the sole proposal.
• The following is a summary of the bid cost:
|
Bidder |
Base Bid Proposal |
|
Archer Western Construction, LLC |
$17,832,000 |
o The following is a summary of the Add Alternate bid costs for SCADA Integration for the project:
|
Subcontractor to Archer Western Construction, LLC |
Add Alternate SCADA Proposal |
|
Prime Controls |
$202,860 |
|
RLC Controls |
$169,400 |
|
TESCO Controls |
$245,000 |
|
Wheco Controls |
$264,000 |
• A-W has submitted references and qualifications that were evaluated in accordance with the bid specifications as shown in the attached Letter of Recommendation dated December 15, 2021.
• A-W has successfully completed similar construction projects at the City’s University Pump Station located on US 380 just west of the Tucker Hill Subdivision, such as constructing Pump Building No. 2 with offices, SCADA/IT room, pump control room, and electrical room, including pumps and motors, electrical switchgear, and a 10 MG ground storage tank. Recently, A-W completed an additional installation of 920 SA pump with a variable frequency drive (VFD) and replacement of an obsolete VFD for an existing pump.
• A-W has maintained a good working relationship with the Public Works and Engineering Departments and has coordinated well during those projects to make them successful for the City. The proposed A-W Project Manager has remained involved in McKinney projects since 2006 and will be the project manager for this project.
• A-W proposal cost exceeded the City’s estimated construction costs by 28%. Therefore, further costs analysis / value engineering were reviewed.
• Staff (Engineering and Public Works), as well as the project design consultant (LAN) researched cost savings/value engineering opportunities for this project based on the sole proposal received from A-W. Options considered included consolidation of smaller pumps to fewer larger pumps and consolidating pump station buildings. Based on review of these alternatives, the cost savings were insignificant and provided no guarantee that redesign and rebidding would result in lower overall project costs. Material costs are continuing to escalate over 5% in the month of May 2021 alone and electrical switchgear costs are currently escalating at approximately 20% per year. In addition, other qualified contractors were surveyed to determine whether redesigning or rebidding the project would result in additional competitive proposals. The consensus received was that the scale of the planned improvements would require long-term resources which some contractors were simply unable to provide at this time and that pricing included in the proposal represent current market conditions for the work to be performed. Another option was to defer the improvements to future years, but staff does not anticipate costs will be reduced appreciably because of the continual rise in material costs and the inevitable rise in labor costs. For these reasons, staff is recommending to move forward with the current design improvements.
• The contract documents require that this project be substantially completed within 900 calendar days and after issuance of the Notice to Proceed, which is expected in February 2022. Construction is expected to be substantially complete by August 2024. An additional 30 calendar days are allowed to reach final completion. Final completion is expected in September 2024. Below is a breakdown of the construction phasing:
o Construction Phase 1 - Fire Lane and Pump Station No. 2 (PS-2) Pump Installation:
§ Work under this phase of construction shall consist of fire lane access expansion and removal and replacement of pumps located at PS-2. Procurement of the replacement pumps and construction of the site fire lane access expansion shall begin immediately following the Notice to Proceed.
§ Substantial Completion in 180 calendar days (Pumps delivered and installed, fire lane constructed)
o Construction Phase 2 - Pump Station No. 1 (PS-1) Improvements:
§ Following the Substantial Completion of Construction Phase 1, achieving the expansion of the facility fire access drive, removal, and replacement of PS-2 vertical turbine pumps (operational), the Contractor shall begin improvements relating to PS-1.
§ Substantial Completion in 360 calendar days
o Construction Phases 3 & 4 - Pump Station No. 2 Excavation & Improvements:
§ Following the Substantial Completion of Construction Phase 2, achieving the improvements related to PS-1 as indicated within the drawings, the Contractor shall begin improvements relating to PS-2 excavation (Construction Phase 3) and PS-2 improvements (Construction Phase 4).
§ Substantial Completion in 360 calendar days
• Staff (Engineering and Public Works) recommends awarding Archer Wester Construction, LLC the construction contract for the McKinney Ranch Pump Station Improvements Project including the add alternate SCADA proposal of $169,400 provided by RLC Controls.
FINANCIAL SUMMARY:
• This Resolution authorizes a contract and all necessary change orders with Archer Western Construction, LLC for an amount not to exceed $19,600,000.
• Funds are available in the Capital Improvements Program in WA1626.
• With approval of this item, $314,215 will remain in WA1626.
BOARD OR COMMISSION RECOMMENDATION:
• N/A