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DEPARTMENT OF WATER MANAGEMENT <br /> Memorandum No. 2010 - 06 <br /> March 31, 2010 <br /> TO: Honorable Mayor McElroy and City Co ncil <br /> FROM: Ryan P. McCrady, City Manager <br /> Keith D. Alexander, Director of Water Management � <br /> SUBJECT: Lake Decatur Dredging - City Project W09-16 <br /> Construction Bid Award <br /> SUMMARY RECOMMENDATION: <br /> Council adopt the attached Resolution awarding a bid and construction contract to L.W. <br /> Matteson, Inc. to dredge Lake Decatur Basin 6 and purchase the City's dredge equipment for a <br /> lump sum cost of$10,245,710. <br /> BACKGROUND: <br /> Plans and specifications for dredging Basins 1 & 6, and purchasing the City's existing dredge <br /> equipment, were recently prepared by H.L. Chastain &Associates (Chastain) and City staff. The <br /> project was advertised for bids on February 10 in the Decatur Tribune and six regional plan <br /> houses that are traditionally used by the City. Eleven companies were directly informed by <br /> Chastain of the project, seven companies purchased the project plans and specifications, and only <br /> one bid was received by the March 12 deadline. The bid summary is: <br /> Compared to <br /> Estimate <br /> Bid Bid Price Over (Under) <br /> Base Bid—Dredge Basin 6 <br /> City Staff Estimate $9,300,000 - <br /> L.W. Matteson $11,750,000 26% <br /> Alternate Bid 1 —Buy Dredge Equipment <br /> City Staff Estimate $845,000 - <br /> L.W. Matteson $1,504,290 78% <br /> * Net Cost for Base Bid and Alternate Bid 1 <br /> City Staff Estimate $8,455,000 - <br /> L.W. Matteson $10,245,710 21% <br /> Alternate Bid 2 —Dredge Basin 1 <br /> City Staff Estimate $15,700,000 - <br /> L.W. Matteson $22,225,000 42% <br /> *Recommended option for council approval. <br />