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-2- <br /> Exhibit 3 is the tabulation of the engineer's estimates, base bids and alternate bids. City staff <br /> recommends that the City Council reject all the alternate bids for the following reasons: <br /> Alternate Bids 1 and 2: Do not provide as much water storage capacity and have higher unit <br /> costs. <br /> Alternate Bid 3: This bid was included for the Corley Landfill Conversion to Bioenergy Crop <br /> Production project which consists of hauling a large amount of previously dredged sediment from <br /> the Oakley Sediment Basin to the Corley Landfill then spreading it in preparation for bioenergy <br /> plant establishment. The bid is $372,680 which is significantly above the Landfill Conversion <br /> project budget of$226,270 to haul and spread the sediment. Therefore it is recommended that <br /> this alternate bid be rejected. The landfill work will then be rebid as a separate project in the near <br /> future as it is anticipated that several local trucking firms may be interested in submitting bids. <br /> Alternate Bids 4, 5 & 6: These bids would require the use of 75% local labor for the Oakley <br /> Sediment Basin rehabilitation and 50%for dredging for the base bid, alternate bid 1 or 2 at a cost <br /> of $534,600. Great Lakes Dredge & Dock intends to utilize local labor for both the sediment <br /> basin rehabilitation for dredging operations at reasonable levels and has proven willing to do so. <br /> Since the increase in the local labor force would not be significant, and the cost is high, it is <br /> recommended that they be rejected. <br /> FINANCIALS: <br /> Exhibit 4 identifies all the capital expenses for this project totaling $90,412,436 over six years. <br /> Financing will be accomplished through the issuance of several bonds that were included in the three year <br /> water rate plan authorized by the City Council last year. Therefore, proceeding with the project will not <br /> require any additional rate increases above what has already been approved by the City Council. <br /> Additionally, the project qualifies as a Lake Decatur capacity improvement that the Archer Daniels <br /> Midland Co. is contractually obligated to reimburse the City for approximately 50% of the project's <br /> expenses at a rate of up to$1 M annually. <br /> POTENTIAL OBJECTION: <br /> None foreseen. <br /> INPUT FROM OTHER SOURCES: <br /> Chastain&Associates, several federal and state regulatory agencies. <br /> Exhibits <br /> cc: Jon Nieman,Great Lakes Dredge&Dock <br /> Gregg Foltz, Chastain&Associates <br /> Bill Manley,ADM Co. <br /> Jerry Stevens,Engineering Services Coordinator <br /> Randy Miller,Water Services Manager <br />