CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year One to Contract 23-016, 2023 Sanitary Sewer Service Lateral Lining and Vac-A-Tee Installation, to Performance Pipelining, Inc. for an amount not to exceed $1,691,277 plus a 3% contingency
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In February 2023, the City issued Bid 23-016 for rehabilitation of approximately 169 existing sanitary sewer service laterals by utilizing the installation of cured-in-place pipe (CIPP). The bid also included the installation of approximately 200 Vac-A-Tee cleanouts in the Brookdale subdivision to facilitate sewer lateral line grouting.
Lining and/or grouting service laterals has shown to be effective in reducing groundwater and rainfall related infiltration and inflow. Excessive infiltration and inflow take up system transport capacity which may cause overflows and basement backups.
The Sanitary Sewer Service Lateral Lining and Vac-A-Tee program is part of the City’s IEPA required ten-year wastewater collection rehabilitation plan, as well as the IEPA required ten-year infiltration and inflow reduction plan to reduce wastewater backups during heavy rain events.
In April 2023, the City Council awarded bid 23-016, 2023 Sanitary Sewer Service Lateral Lining and Vac-A-Tee Installation, to Performance Pipelining, Inc., for a nine-month term from April 3, 2023 to December 31, 2023.
DISCUSSION:
Performance Pipelining, Inc. has performed well during the original contract terms. All work was performed with no issues.
Performance Pipelining, Inc has requested a 0% price increase for the first of four option years. Based on the vendor's outstanding performance, the Water Utilities recommends extending the contract for the first option year.
The term of the first option year is January 1, 2024, to December 31, 2024, with three option years remaining. All work under the first option year will be done in the Cress Creek area.
The contract amount for option year one will be less than the original contract year due to less Vac-A-Tees being installed.
FISCAL IMPACT:
CIP: WW052
Sanitary sewer service lateral lining and Vac-A-Tee installation are budgeted as part of the Water Capital program. Staff submitted $1,700,000 as part of the proposed 2024 budget and capital improvement plan, which is currently under review. The requested award including the contingency balance slightly exceeds the budget submitted for this project in 2024 by $42,015, however the cost is within the five-year CIP plan.
Pending Council approval, the requested award can be facilitated within the budget.
|
Account Number |
Fund Description |
Project Budget |
Proposed Budget |
|
41252000-551502 |
Water Capital Fund |
$1,700,000 |
$40,264,902 |
Per Council directive, contingency on construction projects is set at 3% on projects over $500,000 and 5% on projects under $500,000.