Wastewater bid on Glenwood City Council’s agenda for today
Post Independent Staff
Glenwood Springs, CO Colorado
GLENWOOD SPRINGS, Colorado – City Council will discuss and possibly award a contract for the Wastewater Treatment Facility Project during tonight’s meeting.
According to a memo from both City Manager Jeff Hecksel and City Engineer Mike McDill, both are recommending that city council award the bid to Arizona-based Archer Western Contractors at a bid price of $23,435,956.
After all the bids had been received, the city was notified by the Colorado Water Resources and Power Development Authority that the Federal Government was applying Federal Davis-Bacon requirements to all prior year appropriations.
The city did not include the wage requirement because it did not apply when the contract was issued for bid on Oct. 23. The project was halted in November after President Barack Obama signed into law the 2010 Interior and Environment Appropriations Bill which retroactively required all federal, state and local projects to include Davis-Bacon prevailing wage requirements.
City Council had already approved a loan agreement with the authority to issue bonds to fund the project, however it was still awaiting the bond sale to secure financing.
City staff recommended that City Council award the bid with the inclusion of Davis-Bacon prevailing wage requirements, and proceed with the financing agreement with the Water and Power Authority. The reason, according to Hecksel, is because the additional costs are expected to remain lower than if the city was to pursue other means of financing.
It was determined that in the worst-case scenario, the amount of additional interest paid by the city could be in the $4 to $5 million range, according to the memo.
“There is an extremely high probability that the costs of complying with Federal Requirements are significantly less than the costs of obtaining different financing,” the memo states.
By taking advantage of the financing agreement already in place, the city will need to “change order” the federal requirements into the contract, which is allowable based on the bid documents.
Council can either decide to award the current bid, or reject all bids and re-advertise the project. But, “waiting to re-bid the project until new purchasing requirements are in place would likely push a re-bid further out and could result in higher costs,” the memo states.
The city received six competitive bids for the project. All of the bids were within a range of $1.5 million, and the two lowest bids were within $58,000. The engineer’s estimate for the work was $27,830,000, according to the memo.
Bids were open on Nov. 5, and are good for 60 days. The work is scheduled to begin as soon as possible, and is anticipated to be completed by the end of May 2012.
The contract is for the remaining portions of the wastewater treatment plant project which will replace Glenwood’s existing plant located at the confluence area. The new facility will include a lift station at the confluence location that will be connected to the new facility by the force main that is currently under construction. The new facility will be located to the west of the Glenwood Meadows Shopping Center on the old Chatfield property.
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