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Home My WebLink About1987-0321728L AN ORDINANCE ACCEPTING A COMPETITIVE BID AND PROVIDING FOR THE AWARD OF A CONTRACT FOR PUBLIC WORKS IMPROVEMENTS, PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of improvements to the Water Treatment Plant in accordance with the procedures of state law and City ordinances, and WHEREAS, art 601g, V T C S provides that a City may not award a contract for public works projects to a nonresident bidder unless the nonresident's bid is lower than the lowest bid submitted by a responsible Texas resident bidder by the same amount that a Texas resident bidder would be required to underbid a nonresident bidder to obtain a comparable contract in the state in which the nonresident's principal place of business is located, and WHEREAS, after diligent inquiry and investigation, and review of information supplied by Cajun Construction Company, the City Council hereby finds and determines that the lowest bidder in this project is a nonresident bidder and that said bidder's principal place of business is Louisiana, which state gives a preference to local bidders, and WHEREAS, the City Manager or a designated employee has received and recommended that the hereinafter described bid is the lowest responsible bid for the construction of the public works improvements described in the bid invitation, bid proposals and plans and specifications therefore, that meets the requirements of law, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the following competitive bid for the construction of public works improvements, as described in the "Bid Invita- tion", "Bid Proposal" or plans and specifications attached hereto is hereby accepted and approved as being the lowest responsible bid for the upgrade of the Water Treatment Plant BID NUMBER CONTRACTOR AMOUNT 9657 Tonto Construction Co $3,592,000 00 SECTION II That the acceptance and approval of the above competitive bid shall not constitute a contract between the City and the person submitting the bid for construction of such public works improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, after notification of the award of the bid SECTION III That the City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works improvements in accordance with the bid accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein SECTION IV That upon acceptance and approval of the above competitive bid and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bid and authorized contracts executed pursuant thereto SECTION V That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the 17th day of February, 1987 ATTEST rRm ell RAY STEPHENS, MAYOR CITY OF DENTON, TEXAS J I ALTERS AC G CI Y SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY CITY OF DENTON, TEXAS BY DATE February 17, 1987 CITY COUNCIL REPORT TO Mayor and Members of the City Council FROM Lloyd V Harrell, City Manager SUBJECT Bid #9657 Water Treatment Pant Upgrade Phase II RECOMMENDATION. We recommend this bid be awarded to the low evaluated bid of Tonto Construction CO for $3,592,000 SUMMARY. This bid invitation was sent to prospective vendors all over the United States We received five bids as shown on the tabulation sheet The bids have been evaluated and we find, with a ruling from the City Attorney, that we must add a 5% (State preference law)to the bid of Cajun Construction This then makes Tonto Construction the low evaulated bidder for $3,592,000 The UtilitT Board at their special called meeting on 2-10-87 recommended approval of the low bid Tonto Construction Co BACKGROUND Tabulation Sheet Recommendation of Freese & Nichols Inc PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED Utilities water Production FISCAL IMPACT There is no additional impact on the General Fund Respectfully submitted Lloyd V Harrell City Manager Prepared by Name John J Marshall Title Purchasing Agent Approved Name John J Marshall 1 1 n me+a I I m z w m y y i i v xz m m i ri i m 9 r -1 I i ra m o P3 m p Y[ m 1 b I C I I m I cn i A i mnl z m m z y I i vi a W w I I 17 z 1 m Ian e a vl m m i i � 1 1 I 1 S I I m I x I I I b I I o I I 9 1 1 1 I I IWWt AIL FEB FREESE AND NICHOLS, INC C O N S U L T I N G E N G I N E E R S February 6, 1987 Mr C David Ham, P.E Director of Water/Wastewater Utilities Service Center/Warehouse 901-A Texas Street Denton, Texas 76201 Dear Mr. Ham SIMON W .R[[[[ n [ JAM[[[ NICMOL1. I 0 �'^� [NT L NICNOL NO[[ . [ 1 L[[t IRti[[ •[ Rod [RT[ OOOCN 14 JC[RIIYL J THO S ROt[RT A. TNOMR[OM 111 Ri / JOMNM COON ti [ ton ♦i ANTNONYR[O Rt T ANTHONY A GARTH R[[V[t fit. Joe MA'[ti.[ IT [RN[[TCL[M[NT M[ ELVINC COIi4NO PC J[RRY 1- "KING P.S. A "a NEAR III Pi NONNI[ M L[MONG P ■ MICNA[LO MORRISON tL C DIAN[ •A"IIA M L RO[iRT I "MCC RL L[O A DOTtON PC "VIDA OATTI[ JOHN L. JON[t. PC Re Water Plant Upgrade Project Phase 2 Recommendation for Award Bids were received at the City of Denton Service Center for the construction of Phase 2 Water Treatment Plant Upgrade project on December 23. 1986. Five bids were submitted and a detailed breakdown of each bid is shown on the attached bid tabulation sheets. In addition, the bids have been evaluated based on the Texas Reciprocal Preference Law (House Bill 620) This law requires that out of state bidders from states having a preference law to underbid Texas contractors by the same amount as required in their state The bids received and the evaluated amounts are as follows Bidder/Residency Tonto Construction, Inc. Texas Cajun Contractors, Inc. Louisiana Eby Construction, Inc Texas BRB Contractors Kansas Red River Construction Texas Amount Evaluated Calendar Preference Bid Amount Days Law Regmts $3,592,000 $3,592,000 $3,497,000 $3,671,850 $3,740,000 $3,790,000 $3,830,000 $3,740,000 $3,790,000 $3,831,000 430 N/A 425 5 percent 450 N/A None No pre - Given ference reqmts. 540 N/A The tow actual dollar bid received was from Cajun Contractors, Inc whose principal place of business is in the State of Louisiana It is our understanding that the City's Legal Department has determined the Texas 811 LAMAR 8TR6RT PORT WORTH TEXAS 76102 TELHPH ONR 817 386 7141 MHTRO •/7 420 1900 Mr C David Ham, P E February 6, 1987 Page 2 Reciprocal Preference law is applicable to Cajun Contractors, Inc The State of Louisiana currently has a 5 percent preference requirement for out of state bidders and under the Texas reciprocal law, this requirement will be applied to Cajun Contractors' bid amount Therefore, based on the evaluated bids, Tonto Construction, Inc. becomes the low bidder Tonto Construction is a relatively new firm which has been in operation since 1985. Our investigation of their experience record showed that they have not performed any water treatment plant type work under their present organization. The type projects that they have constructed are pipeline and pump station facilities. The company has bid plant type work but has not been successful. Tonto has proposed to use Mr Glenn A Landry as project manager and Mr John Williams as the project superintendent on the Denton project We have conducted background reviews on each individual and the re- sults indicate that both are well qualified to perform the type work asso- ciated with this project. Mr. Landry has approximately 11 years construc- tion and project management experience and Mr Williams has approximately 16 years experience on plant construction projects We have attached a copy of their resumes for your information. We have also reviewed the company's financial statements Tonto Construc- tion, Inc. is owned by Tonto Group. Tonto equipment Limited (a part of Tonto Group) has provided a letter pledging full financial support for Tonto Construction Co. We have attached the financial statements for both firms. In addition, Tonto Construction, Inc. has submitted a letter which states the company's approximated retained earnings for 1986 and their line of credit currently available We have confirmed the Line of Credit by tele- phone from the financial institution Based on the statements received, Tonto Construction, Inc. appears to be financially capable of performing the contract The City may desire to have their financial consultant review the statements should there be any questions The amount bid by Tonto Construction, Inc. is well within the budget of $4,000,000 established for this project Based on the review of the in- formation submitted and the results from the reference investigations, Freese and Nichols recommends that the contract for construction of Phase 2 of the Water Treatment Plant Upgrade project be awarded to Tonto Construc- tion, Inc at their bid amount of $3,592,000. If you should have any ques- tions concerning this recommendation, please advise. Respectfully submitted, FREESE AND NICHOLS, INC. Robert F. Pence, P E. RFP jd (375) Attachments xc R E Nelson Srini Sundaramoorthy