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HomeMy WebLinkAbout06/07/2016 Salt Storage FacilityItem XI. B.: MOTION TO ACCEPT BID FOR SALT STORAGE FACILITY IN AN AMOUNT NOT TO EXCEED $663,484. Department: Public Works Department Information: This proposed contract provides for construction of a 5,500 ton capacity salt storage facility at the Public Works Facility. It also includes the installation of a conveyor system to facilitate efficient filling. Attachment A depicts the proposed siting. The salt storage facility represents a 450% increase in the Village's salt storage capacity (existing capacity is 1,200 tons) and provides the ability to store approximately 120% of the average amount of salt used annually (4,500 tons). As a best practice, the American Public Works Association recommends storing 150% of annual demand locally. Increasing salt storage capacity will reduce or eliminate salt deliveries during the snow season. During recent winter seasons delivery time has averaged 10-14 days; exceeding the contractual delivery period of seven (7) days. The number of regional salt storage and distribution facilities has decreased in recent years due to increased storage regulations imposed by the Illinois Environmental Protection Agency (TEPA). This reduction in regional storage sites will likely increase delivery times in coming winters. In addition, increasing the amount of local, on-site, salt storage will better situate the Village to accommodate other variables that impact just -in -time salt availability such as trucking shortages or severe weather that slows river barge traffic. The bid specifications included a base bid and alternate. The base bid included the construction of a 5,500 ton salt storage dome. The alternate in the bid specifications called for the installation of a conveyor system to efficiently load salt in the salt storage dome. Conveyor systems maximize the storage capacity of the salt storage dome. The conveyor system will deposit the salt in a pile that is upwards of 30 feet high maximizing the capacity of the salt storage dome. Manually loading the salt storage dome with a front-end loader is time consuming work that effectively reduces the capacity of the salt storage dome by up to 50%. Detailed plans and bid documents were prepared. A notice to bidders was placed in a local newspaper and placed on the Village website pursuant to the purchasing policy. A mandatory pre-bid conference was held on April 27, 2016. Five (5) plan holders attended. Bids were received and publicly opened at 1 PM May 9, 2016. Two (2) bids were received: BIDDER Base Bid Alternate Bid Total Bid Dome Corporation of North America $428,740 $203,150 $631,890 Bulk Storage $421,500 $239,420 $660,920 The engineer's estimate of probable construction cost was $685,000. The lowest cost bidder is Dome Corporation of North America of Saginaw, Michigan. Both bidders submitted the required 10% bid bonds and properly signed all bid documents. Dome Corporation of North America is one of leading dome builders in the country and has completed a number of salt storage facilities in the Chicago metropolitan area. Recent salt storage facilities completed include Evanston, Downers Grove, and Lombard. All references provided by Dome Corp of North America were checked and indicated favorable performance. Staff recommends inclusion of a 10% contingency in the contract award for this project in order to accommodate quantity variances and field changes. Alternatives: 1. Accept base bid and alternate results for the construction of a salt storage facility and conveyor. 2. Discretion of the Village Board. Budget Impact: This proposed project requires the expenditure of $663,484. Sufficient funds exist in the current budget for this expenditure. Recommendation: Staff recommends accepting the lowest cost base and alternate bid results for the salt storage dome work as submitted by Dome Corporation of North America of Saginaw, Michigan in an amount not to exceed $663,484 (base bid and alternate $631,890 + contingency $31,594 = total recommended award $663,484). SUPPORTS THE FOLLOWING STRATEGIC PLAN GOALS: INFRASTRUCTURE: Well designed, well maintained public spaces and facilities ATTACHMENTS: Description Type Upload Date File Name D AttachmentA_Salt Cover Memo 5/31/2016 PW-East-Lot-C1-40_pdf.pdf Storage Site