BY COUNCILOR STOVER:
RESOLVED, that Arrowhead Painting be and hereby is awarded a contract for painting of 2,750 gas meter piping throughout the city of Duluth for the utility operations division in accordance with specifications on its low specification bid of $32,907, terms net 30, FOB job site, payable out of gas Fund 0520, Department/Agency 500, Organization 1905, Object 5535.
STATEMENT OF PURPOSE: This resolution will authorize the painting of gas meter piping at various locations throughout the city of Duluth by the second low bidder, Arrowhead Painting Company for $32,907 to be paid from Gas Fund 0520. This award is the annual blanket contract for corrosion protection of gas service piping to comply with the federal office of pipeline safety regulations. Arrowhead Painting Company was the second lowest of the five companies who responded. This bid is below the engineer’s estimate of $35,000. The capital improvements annual infrastructure program had budgeted $35,000 for this project. The low bid of $28,865 was submitted by Premier Companies. However, contract awarded to Premier Companies is not recommended because of their performance on the 2003 contract for painting of gas meter piping sets and a previous contract with the same experiences. Premier Companies has not submitted the proper payroll reports to the engineering division for their 2003 contract and for that reason have not been paid for that contract as of this date. It took them a good part of 2004 to complete the 2003 contract work. The engineering division has found upon inspection of gas meter piping sets that they have claimed were painted, were not pained in many cases. In 2003, only 80 percent of the gas meter piping sets that they claimed were painted, were actually pained. The customer service division meter readers had to check all the gas meter piping sets in the 2003 program when they were on their meter reading routes to verify which gas meter piping sets had been painted. This has required much additional time by both the customer service division and the engineering division to administer this contract. Bid No. 05-0457; Job No. 0378GS