CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 25-078, Salt Conveyor Replacement, to Kimco USA, Inc. for an amount not to exceed $342,500 plus a 5% contingency
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Department of Public Works currently has a salt dome at the Public Works Service Center (PWSC) that holds 12,000 tons of salt. To maximize the amount that can be stored in the dome, the salt is loaded into the dome with a conveyor. The salt dome and conveyor are original to the building and are more than 15 years old. Due to the corrosive nature of the salt, the conveyor needs to be replaced.
In March 2025, the Department of Public Works issued Bid 25-078 for the replacement of the salt conveyor. The bid included the replacement of the existing salt conveyor at the PWSC and the construction of a new pit with a concrete push wall and shed.
DISCUSSION:
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Advertisement Date: |
03/07/25 |
Notices Sent: |
242 |
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Opening Date: |
03/25/25 |
Planholders: |
14 |
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Proposals Received: |
1 |
Bids were received from the following vendors:
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Vendor Name |
Proposed Cost |
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Kimco USA, Inc. |
$598,500 |
The scope of work under this contract includes all labor, equipment, supplies and materials for the replacement of the existing salt conveyor at the PWSC and the construction of a new pit with a concrete push wall and shed. The project includes the removal and disposal of the existing conveyor and hopper. The bid also included an option for a five-year annual maintenance program.
The approved 2025 budget for the salt conveyor replacement is $450,000. To stay within budget for this project, DPW met with the vendor and re-engineered the replacement project for a total amount of $342,500, which includes the five-year annual maintenance option. This resulted in cost savings of $256,000. Kimco USA, Inc. has performed maintenance on the salt conveyor in the past, and staff is confident that the newly designed replacement will be successful. Only one other vendor attended the mandatory pre-bid meeting. Staff contacted that vendor and learned they could not secure the required insurance and bonds.
Kimco USA, Inc. is the equipment manufacturer and will be sub-contracting any related construction services to Incline Welding and Construction. Staff recommends Kimco USA Inc. for the award as the lowest responsive and responsible bidder for the procurement of construction services, as defined by section 1-9B-7 of the Procurement Code (RBO-qualified).
The construction will be completed by July 1, 2025, with a contract term ending November 30, 2030.
FISCAL IMPACT:
CIP #: MB232
The salt conveyor replacement is expensed to the Building Improvement account listed below. This work is related to MB232, Replacement Conveyor for the Salt Dome, which has a budget of $450,000 in 2025. The requested award is within the budgeted amount for this expense.
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Account Number |
Fund Description |
Total Budget Amount |
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31342200-551500 |
Capital Projects Fund |
$1,755,500 |
*Per Council directive, contingency on construction projects is set at 3% on projects over $500,000 and 5% on projects under $500,000.