City of Lake Forest Public Works Committee met April 3.
City of Lake Forest Public Works Committee met April 3.
Here is the minutes provided by the Committee:
I. Roll Call/Call to Order
Chairman Cathy Waldeck called the meeting to order at 5:15 p.m. Alderman Stanford Tack was present. Alderman Timothy Newman was present via speaker phone.
Not in Attendance: Aldermen Michelle Moreno.
Staff in attendance included Michael Thomas, Director of Public Works; Dan Martin, Superintendent of Public Works; Bob Ells, Superintendent of Engineering; Mike Strong, Assistant to the City Manager; Elizabeth Holleb, Director of Finance; John Gulledge, Supervisor of Water & Sewer Utilities; and Jim Lockefeer, Management Analyst.
Also in attendance was Brian Hackman, P.E. Strand Associates and resident Charles Kohlmeyer of 1656 Bowling Green Drive.
II. March 15, 2017 Public Works Committee Meeting Minutes
Chairman Waldeck moved to approve the March 15, 2017 Public Works Committee meeting minutes. Alderman Tack seconded the motion, which carried unanimously.
III. Review and Recommendation to City Council of East Side Train Station Interior Renovation Bids – Mike Strong & Dan Martin
Assistant to the City Manager Mike Strong explained that bids were opened for stage three, interior improvements, of the East Side Train Station Project. He explained that City received approximately $2.1 million in grant funds for the entire Train Station Project from the Illinois Transportation Enhancement Program (ITEP). He explained that this past fall the exterior restoration portion of the project was completed. The final stage to be completed is interior improvements stage. Assistant to the City Manager Strong explained that this will also be before City Council tonight.
Assistant to the City Manager Mike Strong explained that the scope of work includes relocation and expansion of restroom facilities, replacement and reinforcement of flooring and sub-flooring in south tenant space area, and the installation of historically-accurate tiling. He explained that during this construction period, the train station will remain open and access to the facility will not be impeded. At the end of construction, a passage into the main lobby will be maintained through new opening to south.
Assistant to the City Manager Mike Strong explained that the City received two bids for interior improvements. The low bid, from MAG Construction Inc., submitted a bid of $364,344.05. He explained that City staff is recommending the low bid, from MAG Construction Inc., to complete the interior improvements. MAG Construction completed the exterior restoration portion of this project. City staff felt that MAG Construction managed the exterior renovations very well and that they worked well with meeting IDOT requirements. Assistant to the City Manager Mike Strong explained that the City had $213,435 available in ITEP grant funds. The City will need to allocate the remaining $110,927 budgeted in the capital fund for the entire train station project, in order to complete the interior improvement phase. In addition, the City has received $30,000 from Metra that will also be allocated to this final project phase. Assistant to the City Manager Strong explained that the City has contributed approximately $550,000 toward the $2.9 million entire East Side Train Station project. He explained that substantial work has been able to be completed at the station with less than a 20% contribution from the City. He explained that the project will be closed out this year. He explained that if City Council approves the MAG Construction bid tonight, construction will most likely begin in mid to late May. Construction is estimated to conclude in early September, 2017. He explained that City staff is requesting a recommendation be made from the Public Works Committee to the City Council, that City Council award the bid to MAG Construction. Assistant to the City Manager Mike Strong explained that another potential option, since the two bids came in over City staff’s estimate, is to decline the two submitted bids and go back out to bid again. He explained that in talking to contractors, he found that the reasons why other contractors chose not to bid on this project was because of project timing and the IDOT process. He added that the exterior improvement phase also only received two bids. He explained that if the City was to go out to bid again that the City would potentially receive the same bids and the project timeline would be pushed into late fall or early winter.
Alderman Tack explained that delaying the project in hopes of the City receiving additional lower bids may not end up being worth it. Chairman Waldeck agreed, unless City staff expected that a much lower bid could be potentially received. Alderman Tack inquired about City staff’s original estimate. Assistant to the City Manager Strong explained City staff’s original estimate for interior improvements was $325,000. Alderman Newman inquired about seasonality and if the project was delayed, would lower bids be received. Assistant to the City Manager Strong explained City staff does not believe that delaying the project and going out to bid again would result in lower bids.
Chairman Waldeck made a motion to recommend awarding the bid to MAG Construction Inc., to complete the East Side Train Station interior renovations to City Council. Alderman Tack seconded the motion, which carried unanimously.
IV. Review and Recommendation to City Council of the Water Plant Project Bids – Michael Thomas & Dan Martin
Public Works Director Michael Thomas noted that a significant amount of work has been done by both the Public Works Committee and staff in preparing for the project’s award of bid. He said that staff was happy to present the bids that were received for the project. He introduced Brian Hackman and explained that Brian and his team at Strand Associates having been working very hard on this project.
Brian Hackman explained that Strand Associates was approved, by the City Council, to design a 14 million per gallon a day membrane system and to evaluate a construction timeline during final design. Brian Hackman then explained all of the project components which include: membrane system replacement, chemical storage and feed system relocation, control system updates, 4th floor space repurposing and relocation, and clearwell baffling. He then explained that there was a great deal of interest this project generated among bidders. Ultimately, three bids were received with JJ Henderson and Son Inc. as the low apparent bidder. Their total lump sum bid was $8,818,000. The next two higher bidders came in at approximately $9.6 million. If JJ Henderson is selected total project cost (to include construction engineering and contingency) is estimated at $9.8 Million.
Alderman Tack asked if there would be any reason to not accept JJ Henderson and Son Inc. as the low bid. Brian Hackman explained that JJ Henderson is regularly engaged in water treatment plant projects. They just completed a membrane project in Highland Park. They were also involved in the original construction of the Lake Forest Treatment Plant. He explained there is no reason to not accept their low bid.
Chairman Waldeck inquired about the large gap between JJ Henderson’s low bid and the two higher bids. Brian Hackman explained that JJ Henderson is regularly low against other bidders. They have a very strong handle on the water treatment facility business in the Northern Illinois area. He explained that JJ Henderson was fully aware of the other two higher bids and were still comfortable at their bid price.
Chairman Waldeck made a motion to recommend contract 3-2017 award to JJ Henderson and Son Inc. the bid to construct the water plant project in the amount of $8,818,000, and that Strand Associates’ Construction Engineering Services Task Order 17-01 in the amount of $570,000 be recommended for approval, and that a project contingency of 5% ($441,000) also be recommended for approval to City Council. Alderman Tack seconded the motion, which carried unanimously.
V. Review and Recommendation to City Council of Landfill Disposal Fees -Michael Thomas
Director Thomas explained that the purchasing policy requires that larger procurement pricing is confirmed on a somewhat regular basis. For many years landfill tipping fees were confirmed and / or updated on an annual basis. There are two landfills in the county, Waste Management in Grayslake and Advanced Disposal in Zion. Advanced Disposal has been less expensive over the past 15 years. In 2014, under the direction of Mayor Cowhey, he suggested that the City seek a longer term contract with idea the City would obtain better prices per ton and that an agreement should be negotiated instead of placed out to bid. At landfills, when contracts are bid, those bids always requires the CEO’s of those organizations to approve such bids before they are submitted; this ultimately increases the price per ton. Significantly better pricing is received when negotiations typically remain local with the landfill’s general manager. This process was done in 2014 and a three year agreement was entered into with Advance Disposal. Director Thomas explained that the current Advanced Disposal renewal agreement is due in June so staff took the opportunity to negotiate with both landfills.
City staff is recommending entering into a five year agreement with Advanced Disposal. Director Thomas explained that the City currently pays $51.42 per ton. If the City enters into the agreement with Advanced Disposal the City will save approximately $80,000 during the first contract year. The price per ton in the first contract year will be $39.50. He explained the drop in price per ton is most likely due to a major waste hauler, Groot Disposal, now having their own transfer station in Hainesville, Illinois. They used to bring their material to both Advanced Disposal and Waste Management. The landfills want to ensure that material continues to be brought to them. He explained that both organizations were very aggressive in their pricing. A few sanitation trucks were sent to Waste Management’s landfill last week in order to develop some pros and cons for each of the landfills. Overall, Advanced Disposal’s landfill was preferred. Advanced has a larger dumping area, a maintained landfill road, a woodchip dumping area, an unmanned scale, and is open Saturdays 7:00 a.m. – 11:00 a.m.
Chairman Waldeck inquired about the rate per ton and if there was any reason to expect those rates to fall in the future. Director Thomas explained that he thought those rates would not fall. He explained City staff reviewed the last time the City went to Waste Management, which was approximately 15 years ago, and paid just over $39.00 per ton.
Chairman Waldeck made a motion to recommend to City Council that the City enter into a five year agreement with Advanced Disposal. Alderman Tack seconded the motion, which carried unanimously.
VI. Next Meeting – April 17, 2017 5:00 p.m. @ City Hall
Chairman Waldeck moved to adjourn the meeting of the Public Works Committee at 5:46 p.m. Alderman Tack seconded the motion, which carried unanimously.