TITLE:title
Bid Award - Twelve Mile Creek WRF 9 MGD Expansion
body
INFORMATION CONTACT:
John Shutak, Union County Water, Engineering Director, 704-283-3651
ACTION REQUESTED:
1) Adopt Resolution for Tentative Award of the Twelve Mile Creek WRF 9 MGD Expansion project construction.
2) Contingent upon North Carolina Department of Environmental Quality’s issuance of the Authority to Award, accept the low bidder, authorize award of the construction contract to Adams-Robinson Enterprises, Inc. in the amount of $50,311,000.00, authorize the County Manager to negotiate and execute an agreement substantially consistent with this agenda item, and adopt Resolution Providing Notice of the Twelve Mile Creek WRF 9 MGD Expansion Project Construction.
3) Accept the scope of services for construction administration engineering services as shown in the attached Task Order 7364-4 with Hazen and Sawyer, P.C. in the amount of $3,143,810.00 and authorize the County Manager to negotiate and execute an agreement consistent with this agenda item.
4) Adopt Capital Project Ordinance 335C for the Twelve Mile Creek WRF 9 MGD Expansion project in the amount of $7,500,000.00 for an increased total project budget of $56,000,000.00.
5) Adopt Capital Project Ordinance 377A for the East Fork Interceptor Improvements project in the amount of $(7,500,000.00) for a decreased total project budget of $3,829,000.00.
PRIOR BOARD ACTIONS:
1) January 18, 2022, Regular Meeting, Agenda Item # 21-569 - Approved Hazen and Sawyer, P.C. Task Order for engineering services and approved Capital Project Ordinance 295.
2) June 19, 2023, Regular Meeting, Agenda Item # 23-336 - Approved sole source procurement based on the need for standardization and compatibility with existing equipment at the facility as allowed by N.C.G.S. § 143-129(e)(6).
3) May 20, 2024, Regular Meeting, Agenda Item # 24-312 - Adopted resolution accepting Appropriations Act (S.L. 2023-134) funding in the amount of $25,220,000.00 from the North Carolina Department of Environmental Quality Division of Water Infrastructure and authorized the County Manager to execute all necessary documentation related to the acceptance.
BACKGROUND:
The Capital Improvement Program, as adopted by the Board of County Commissioners, includes an allocation for the design and construction of the Twelve Mile Creek WRF Expansion to 9 MGD as part of the Twelve Mile Creek WWTP System Improvements Program outlined in the Comprehensive Water and Wastewater Master Plan. The expansion to 9 MGD is necessary to serve the current and future wastewater treatment needs in the Twelve Mile Creek wastewater collection system.
Union County advertised the project on June 6, 2024, and received one (1) bid at the bid opening on August 6, 2024. Since fewer than three responses were received, the bid was returned to the bidder unopened. The project was re-advertised on August 8, 2024, and two (2) bids were received at the re-bid opening on September 10, 2024. All bids were reviewed and certified by the engineer per the attached award recommendation letter and bid tabulation. Based on the engineer’s review and Procurement Division approval of the bids, staff recommends that the project be awarded to the lowest responsive, responsible bidder, Adams-Robinson Enterprises, Inc., in the amount of $50,311,000.00.
To support the construction of the project, construction administration services are required to ensure the project is constructed to meet the requirements set forth in the project plans and specifications. The scope of services for construction administration services identified in and is appropriate for the project. Services are to be provided on a lump sum basis in the amount of $1,704,580.00 and a not-to-exceed basis in the amount of $1,439,230.00, for a total task order amount of $3,143,810.00.
The total project cost is higher than the budgetary allocation for the project. The higher total project cost is associated with the current construction climate of escalated labor and material costs that make it difficult to estimate project costs. CPOs 335C and 377A are needed to allocate the remaining necessary funding for the project.
FINANCIAL IMPACT:
Revenue sources totaling $48.5M were previously allocated from the 2023 Appropriations Act (S.L. 2023-134) in the amount of $25,220,000, $14,752,916 from System Development Fees, $4,929,367 from PayGo cash, and $3,597,717 from future revenue bond proceeds as the funding sources for the Twelve Mile Creek WRF Expansion to 9 MGD. Approximately $2.3M has been encumbered/expended to date for professional services leaving a remaining budget for the project of $46.2M. With the adoption of CPOs 335C and 377A, this will increase the revenue sources needed from future revenue bond proceeds by $7.5M for total revenue sources of $56M. A future revenue bond issuance in the amount of $11,097,717 will be needed for the Twelve Mile Creek WRF Expansion to 9 MGD.
The total project appropriation is reached by decreasing the East Fork Interceptor Improvements project land and legal line items (Capital Project Ordinance 377A) to support Capital Project Ordinance 335C in the amount of $7,500,000 for construction of the Twelve Mile Creek WRF Expansion to 9 MGD. This decrease will not impact the progress of the East Fork Interceptor Improvement project. The budget appropriation and funding sources for the total project cost for East Fork will be revisited to replenish this allocation as the project moves further along in the design phase and as staff reviews the water and sewer capital funding availability during the remainder of FY 2025 or in future years capital improvement planning budgeting process.
The adoption of CPOs 335C and 377A supports the construction contract amount of $50,311,000 with Adams-Robinson Enterprises, Inc. and construction administration services described in Hazen and Sawyer, P.C. Task Order 7364-4 in the amount of $3,143,810.