ACTION REQUESTED:
Title
Communication from the City Manager and Director of Public Works with a Request to Approve a SEWER IMPROVEMENT AGREEMENT with the GREATER PEORIA SANITARY DISTRICT for the Repair of Sewers as Part of the City of Peoria's Sewer Rehabilitation Program [for the Repair of City of Peoria DESIGN AREA 1 SEWERS, POINT REPAIRS, PROJECT 13, GPSD PROJECT 2332] and Concurrence in the Award of the CONSTRUCTION CONTRACT with STARK EXCAVATING, INC., in the Low Bid Amount of $1,394,793.00, and an Additional Authorization of $69,739.65 (5% for Contingencies). [DISTRICTS 1 and 3]
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BACKGROUND: On December 18, 1990, the City and the Greater Peoria Sanitary District (District) entered into an agreement to improve the City-owned, separated sanitary sewers to District standards and to cause the City-owned, separated sanitary sewers to become the responsibility of the District. On May 15, 2001, the City concurred in the award by the District of engineering services contracts that initiated this comprehensive sanitary sewer rehabilitation project.
To-date, this program has cleaned and televised 1,052,400 linear feet, or 100%, of the city-owned separate and combined sanitary sewers, caused the repair of 577 manholes, administered 26 CIPP sewer lining projects, and caused 1,516 point repairs (sewer repairs by excavation). There are currently 3 contracts ongoing. The total value of the completed and in progress contracts is approximately $52.5 million.
The subject project is the Final project in the Sanitary Sewer Rehabilitation Program. Further action items to formally transfer the sanitary sewers to the District will be included in future, fall 2014 Council agendas. It is intended that the transfer of ownership be effective on May 1, 2015.
On August 8, 2014 the District held a bid opening on the City's behalf for the subject project. The engineer's estimate was $1,250,000. Three (3) bids were received:
Contractor |
Bid Amount |
Stark Excavating, Inc. |
$1,394,793.00 |
Hoerr Construction, Inc. |
$1,671,050.00 |
The PIPCO Companies, Ltd. |
$1,834,795.00 |
Although the low bid was $144,793, or 11.6%, over the engineer's estimate, staff recommends awarding the project. Staff does not believe re-bidding the project will result in more favorable bids, due to the current amount of construction work in the area and the specialized work involved (sewer pumping station removal). To compensate for the proposed higher award price, staff has recommended awarding a 5% contingency authorization, rather than the customary 10% contingency authorization.
The Subcontractor Utilization Statement submitted by Stark Excavating, Inc. has been reviewed and approved by the Equal Opportunity Manager. Stark awarded subcontracts to WBEs and an MBE. The scope of work the MBE bid was less than 1% of the total bid amount. The scopes of work to be performed by the WBEs equaled 6.81% of the total bid amount.
Attachments to this communication include the Agreement between the City and the Greater Peoria Sanitary District with Location Map, the contract between the City and Stark Excavating, Inc., and a summary of the Sewer Rehabilitation Projects dated July 31, 2014.
FINANCIAL IMPACT: Funds for this project will come from the Sanitary Sewer Rehabilitation Fund. The Sanitary Sewer Rehabilitation Fund's revenues are generated from City-wide sewer user fees collected by the District on the City's behalf for the purpose of funding sewer rehabilitation. Those funds are set up in Project S04000, Sanitary Sewer Rehab, and Account 214-8214-553.36-55.
NEIGHBORHOOD CONCERNS: Well-maintained sewers are a benefit to all neighborhoods.
IMPACT IF APPROVED: The previously-approved program will progress toward its ultimate goal of improving the City-owned sanitary sewers and transferring ownership to the Greater Peoria Sanitary District, tentatively scheduled for May 1, 2015.
IMPACT IF DENIED: If denied, the overall program would be delayed, causing additional deterioration in the sewers, which will increase the final costs of the project.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: Stark Excavating, Inc. has current EEO#02373-150630.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Invest in our infrastructure and transportation.
2. Reinvest in neighborhoods.
3. Have an efficient government.
DEPARTMENT: Public Works