WILLMAR -- Bids for Willmar's new wastewater treatment plant and conveyance system have come in $8 million below the construction estimate of $70 million.
City officials and representatives of project consultant Donohue and Associates opened bids Thursday and three contractors submitted four apparent low bids totaling $62,130,270 for the four phases of the project.
Donohue will make a bid recommend after the arithmetic, responsiveness and bid form of the apparent low bids are checked, said Craig Holmes of Willmar, Donohue program manager.
The new plant will be located west of Willmar and replaces a plant using failed treatment technology. Municipal waste will be carried by a gravity-operated interceptor sewer and industrial waste will be carried by a forcemain.
Bid recommendations, along with financing recommendations, will be presented for endorsement to a joint meeting of the Willmar City Council's Finance Committee and Public Works/Safety Committee on Aug. 12. The committees' action would be forward to the council for consideration on Aug. 18.
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Holmes said Thursday was a good day for Willmar.
"Anytime projects are bid in a market where material prices are volatile, one never knows what that's all going to mean. But our estimate in aggregate for the work that was bid today is just under $70 million, and the total of four apparent low bids is $62.1 million,'' he said.
"What that means is the city needs to borrow less money and as a result rates to users will be lower than we had originally forecast,'' he said. "Eight million dollars makes a big difference.''
The project was divided into four parts:
- The treatment plant. The apparent low bidder out of six bids opened was $49.1 million from Graham Construction Services of Eagan. Engineer's estimate was $50 million.
- The portion of the southern interceptor sewer line from the Burlington Northern railroad tracks to Fifth Street Southeast at the existing wastewater treatment plant. The apparent low bid out of eight opened was $6,312,342 from Weidema Contractors Inc. of Maple Grove. Engineer's estimate was $8.7 million.
- The portion of the southern interceptor sewer, forcemain and outfall from the new treatment plant to the Burlington Northern tracks. The apparent low bid out of 10 opened was $5,385,447 from Weidema Contractors. (Two bid proposals were not read because certain requirements were not met). Engineer's estimate was $8.8 million.
- The forcemain from the Jennie-O Turkey Store plant on Benson Avenue through Willmar to the Jennie-O plant on Willmar Avenue to County Road 5. The apparent low bid out of 11 opened was $1,332,481 from Voss Plumbing and Heating of Paynesville. Engineer's estimate was $1.7 million.
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Holmes said the project was divided into four parts for a number of reasons.
He said the treatment plant was advertised as a single prime contract. "That's where we see the most competitive bidding,'' he said.
The conveyance system was split into two contracts to make sure the work would be done on time.
If Weidema is awarded the work, the contractor will have to provide two sets of crews and two sets of equipment, said Holmes.
The smaller conveyance contract was set apart to give a better opportunity for smaller underground utility contractors to secure that work.
"We knew they weren't really qualified with their equipment and their experience with the bigger, deeper (excavation projects),'' he said.
The entire has been budgeted at $88.1 million, which includes Donohue's engineering and design costs.
Project planning began in early 2005 and design work began in June 2006. If contracts are awarded as planned, construction could begin in late September or early October and must be completed by November 2010.
