PUBLIC WORKS COMMITTEE 2017/04/03 MinutesPUBLIC WORKS COMMITTEE MEETING MONDAY, APRIL 3, 2017 – 5:00 P.M.
CITY HALL – UPSTAIRS CONFERENCE ROOM
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
VII. ADJOURNMENT
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.
Respectfully submitted,
Jim Lockefeer Jr.
Management Analyst