BY COUNCILOR STOVER:
RESOLVED, that Performance Pipelining, Inc., be and hereby is awarded a contract to rehabilitate the cured-in-place pipe (CIPP) lining 110 sanitary sewer laterals totaling approximately 6,600 feet of lateral pipe in Basin #1 for the engineering division in a accordance with its second lowest specification bid of $924,450, terms net 30, FOB job site, payable out of the Sanitary Sewer Fund 0530, Agency 500, Organization 1970, Object 5535, City Job No. 0548SN.
FURTHER RESOLVED, that Resolution 06-0226 previously awarded a contract to 3B’s Sewer and Drain Services for this work and has since been rescinded due to their failure to execute and deliver the bonds and contract.
FURTHER RESOLVED, that the contract amount exceeds the low bidder by $324,450 and that this award may require a mid-term rate increase effective not later than August 2006 to cover the overage.
STATEMENT OF PURPOSE: Resolution 06-0226 authorized the rehabilitation of 110 sanitary sewer laterals totaling approximately 6,600 feet by cured-in-place pipe lining by 3B’s Sewer and Drain Services, in the amount of $798,169.90. Resolution 06-0442 rescinded the award due to their failure to execute and deliver the bonds and contract. This resolution will award the rehabilitation of 110 sanitary sewer laterals totaling approximately 6,600 feet by cured-in-place pipe lining to the second lowest bidder, Performance Pipelining, Inc., in the amount of $924,450. This lateral rehabilitation program is a continuation of a pilot program of the city’s comprehensive plan to eliminate overflows by eliminating infiltration and inflow sources. The 2006 sewer fund budget $600,000 in operating expenses. The $324,450 overage creates an immediate budgeting shortfall that should be addressed by a mid-term 2.6 percent increase in the variable sewer rate.