1987-0321728L
NO
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, recexved 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 prooects to a nonresident
bidder unless the nonresldent'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 nonresldent'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 B~dders and
Bid Proposals, and documents relating thereto specifying the
terms, conditions, plans and specifications, standards,
quantities and specified sums contained there~n
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 ~n the
amount as specified in such approved bid and authorized
contracts executed pursuant thereto
SECTION V
That this ordinance shall become e£fect~ve immediately
its passage and approval
PASSED AND APPROVED this the 17th day of February, 1987
upon
RAY~T~%YOR
CITY OF DENTON, TEXAS
ATTEST
BR ~I~/~LTERS
CITY SECRETARY
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYO¥ITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
CITY COUNCIL REPORT
DATE February 17, 1987
TO
FROH
SUBJECT
Mayor and Members of the City Council
Lloyd V Xarrell, City Manager
Bid #965? Water Trea+.mmnt Pant Upgrade Phase II
RECOISE~OATION., We recommend this bid be awarded to the low evaluated bid of
Tonto Construction CO for $3,592,000
SU~R¥. 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
Torito Construction the low evaulated bidder for $3,592,000 The Utilit~Board
at their special called meeting on 2-10-87 recommended approval of the low bid
Tonto Construction Co
BACKGROUNp
Tabulation Sheet
Recommendation of Freese & Nichols Inc
PROGRA~ DEPARTI~NTS OR GROUPS AFFECTED .... Utilities Water Production
FXSCAL N~ACT There is no additional impact on the General Fund
Respectfully submitted
Lloyd V Harrell
City Manager
Prepared by
Name John J Marshall
Tttle Purchasing Agent
Approved
J~ame John J Marshall
FEB
CONSULTING ENGINEERS
February 6, 1987
Mr C David Ham, P.E
Dtrector of Water/Wastewater Utilities
Service Center/Warehouse
gO1-A Texas Street
Denton, Texas 76201
Re
Water Plant Upgrade ProJect
Phase 2
Recommondatton for Award
Dear Mr. Ham
Btds were recetved at the Ctty of Denton Service Center for the construction
of Phase 2 Water Treatment Plant Upgrade project on December 23, 1986. F1ve
btds were submitted and a detalled breakdown of each btd ts shown on the
attached b~d tabulatlon sheets. Zn addition, the b~ds have been evaluated
based on the Texas Reciprocal Preference Law (House 8tll 620) ThJs law
requires that out of state btdders from states having a preference law to
underbid Texas contractors by the same amount as requtred In thetr state
The btds recetved and the evaluated amounts are as follows
Btdder/Res~denc~
Amount Evaluated Calendar Preference
Btd Amount DaNs Law Reqmts
Tonto Construction, Znc.
Texas
$3,592,000 $3,592,000 430 N/A
Cajun Contractors, %nc.
Louisiana
$3,497,000 $3,671,850 425 5 percent
Eby Construction, Inc $3,740,000 $3,740,000 450 N/A
Texas
BRB Contractors $3,790,000 $3,790,000 None No pre-
Kansas Given ference
reqmts.
Red R~ver Construction $3,830,000 $3,831,000 540 N/A
Texas
The low actual dollar btd recetved was from Cajun Contractors, [nc whose
principal place of bustness ts Jn the State of Lou(stana It ~s our
understanding that the Ctty's Legal Department has determined the Texas
8 I ! LAMAR ETREET FORT WORTH TEXAB T8 I Ol
TELEPHONE R I 7 33e ? I e I ~ METRO B I 7 4~R 1900
Mr C Oavtd Ham, P E
February 6, 1987
Page 2
Reciprocal Preference law ts 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 wt11 be
applied to Cajun Contractors' btd amount Therefore, based on the evaluated
bids, Torito Construction, [nc. becomes the low bidder
Tonto Construction is a relatively new ftr~ which has been in operation
since [985. 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 ptpellne and
pump station facilities. The company has bid plant type work but has not
been successful. Torito has proposed to use Hr Glenn A Landry as project
manager and Hr John Nilltams as the project superintendent on the Denton
project ge 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 1[ years construc-
tion and project management experience and Mr Nllltams has approximately
16 years experience on plant construction projects Ne have attached a copy
of their resumes for your tnformtton.
Ne have also reviewed the company's financial statements Tonto Construc-
tion, Inc. ts owned by Tonto Group. Torito equipment Ltmtted (a part of Tonto
Group) has provtded a letter pledgtng full financial support for Tonto
Construction Co. Ne have attached the financial statements for both ftr~s.
In addition, Tonto Construction, [nc. has submitted a letter which states
the company's approximated retained earnings for [986 and their line of
credit currently available Ne have confirmed the Line of Credit by tele-
phone from the financial institution Based on the statements received,
Tonto Construction, [nc. 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, Znc. is well within the budget of
$4,000,000 established for this project Based on the revtew of the
formation submitted and the results from the reference investigations,
Freese and Nichols recommends that the contract for construction of Phase
of the Nater Treatment Plant Upgrade project be awarded to Torito Construc-
tion, [nc at their bid a~ount of $3,592,000. If you should have any ques-
tions concerning this recomendatton, please advise.
Respectfully submitted,
FREESE AND NICHOLS, [NC.
Robert F. Pence, P Eo
RFP Jd (375)
Attachments
xc R E Nelson
Stint Sundaramoorthy