Title
Agenda Item:
Approval of Bid Award for the 2012 Priority Sewer Repair Project
Body
Issue:
Whether to award the lowest bid, which is 15 percent below the engineer's estimate. Timely award will allow the project to proceed as planned.
Committee Recommendation:
Not referred to a committee
City Manager's Recommendation:
Move to award and authorize the City Manager to sign the construction contract with Repipe California LP, in the amount of $563,172.20.
Staff Contact:
Rick Dougherty, Public Works Technical Services, 360.753.8485
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
The City first opened bids on August 8, 2012, for a project involving 23 pipe repairs. The lowest construction bid received was $525,444.39, which was $84,758 (19 percent) over the engineer's estimate. Council elected to reject all bids and authorized rebidding the project at a later date, anticipating lower bids.
Since that time staff has re-scoped the project and added 11 pipes to the bid proposal. This project will now address 31 wastewater and 3 stormwater pipe repairs utilizing the Cast in Place Pipe (CIPP) method. This innovative 'trenchless technology' installs a liner within the pipe eliminating the need for digging up the street to replace the pipe. These repairs are part of the City's ongoing condition rating program for identifying and correcting structural problems in utility pipes before extensive and costly replacements are necessary.
The City received three bid proposals for this project. The low bidder is Repipe California LP from Riverside, CA, with a bid of $563,172.20, which is 15 percent below our engineer's estimate of $663,514.58, which is based on the revised scope. The other two bidders were about $95,000 above the low bidder.
Neighborhood/Community Interests (if known):
· Using the CIPP method for repairing the pipes significantly reduces neighborhood disruption due to construction.
· Staff will inform the affected neighborhood associations about the upcoming construction with a newsletter, which will include a description of possible water use restrictions during construction.
· Staff will use Twitter to communicate current construction activity.
· Streets will remain open during construction with intermittent, one-way lane closures as needed for construction activities.
· Construction is anticipated to begin in March.
· Work will take place at various locations throughout the city.
Options:
1. Award and authorize the City Manager to sign the construction contract with Repipe California LP, in the amount of $563,172.20. Project would proceed as planned.
2. Reject all bids and authorize the Mayor to sign a resolution rejecting all bids.
Financial Impact:
The 2012 Priority Sewer Repair Project is funded through the Wastewater Utility and the Storm and Surface Water Utility. The low bid of $563,172.20 is approximately 15 percent below the engineer's estimate. There are sufficient funds in the budget to award this contract, including the 10 percent required award contingency.
Total Low Bid: $ 563,172.20
Contingency to award (10%): $ 56,317.22
Engineering: $ 186,200.00
Total estimated project cost: $ 805,689.42
The total project cost of $805,689.42 will be divided as follows:
Wastewater Utility (93% of total): $ 749,291.16
Storm and Surface Water Utility (7% of total): $ 56,398.26