Item Coversheet
 STAFF REPORT
For Meeting of March 14, 2022
MAYOR AND MEMBERS OF THE CITY COUNCIL
Agenda Item # 9.D.

TITLE:  Resolution 2214- Lift #3 Decommission Contract Award 
Subject

Resolution 2214 awards the contract to decommission Sewer Lift Station #3 to Tapani, Inc. for $561,924.

Summary and Background

Sewer Lift Station #3 is located in a man-hole in the right-hand south-bound lane of US Highway 395 in front of AutoKool, where ODOT estimates traffic occurs at nearly 20,000 vehicles per day.  As such, it is very challenging to perform routine maintenance; which requires closure of the traffic lane.

 

The pump and electrical systems for Lift #3 are 41 years old, and need to be replaced or decommissioned.  When Lift #3 was installed in 1981, it served discharge from Armand Larive Middle School, and was necessary for that large demand.  A 2017 cost estimate of replacing the existing system was approximately $900,000.  It is assumed that the system would need to be replaced at least at 40-year intervals.

 

 Upon detailed analysis, it was determined that, due to the departure of Armand Larive Middle School, it is much more cost effective for the utility system to decommission Lift #3, and install a gravity-fed line.

 

Anderson Perry & Associates designed a new gravity-fed line to go west in West Ridgeway Right of Way, cross under UPRR tracks, and connect in to existing sewer in N 1st Place.  The project was advertised in Fall '21, with bids opening in November, '21.  Unfortunately, due to a cartographic error involving County Assessor's Maps, award of the project was delayed as a short easement was obtained in exchange for attorneys fees.

 

Now that the project is ready to proceed, the initial low-bidder, Jesse Rodriguez Construction, has indicated an inability to meet the new project schedule, and allowed City Staff to request a new proposal from the 2nd Low Bidder.  Tapani, Inc. was the second low bidder, by a very close margin, and has indicated an ability to deliver the project on the new timeline, with an allowance for increased cost.

 

Tapani, Inc. is a well qualified bidder.  Without their proposal, this project would be required to re-advertise the project, which is almost certain to garner higher bids.  Additionally, re-advertisement would push construction in to the Fall, and begin to jeopardize the N 1st Place Water Line Reconstruction Project, which would in-turn delay the N 1st Place Street Reconstruction project slated for Spring '23.

 



Tie-In to Council Goals:

Goal 6: Plan for City facilities that meet current and future needs

Fiscal Information

ORIGINAL BIDS

- Jesse Rodriguez Construction:  $517,495

- Tapani, Inc.:  $525,965

 

UPDATED BIDS

- Tapani, Inc.:  $561,924

- Jesse Rodriguez Construction:  N/A

 

The Utility Fund has the capacity to absorb this 8% cost increase currently.  It is anticipated that a re-advertisement would result in a significant delay, and likely a price increase of at least 8% from the original low-bid.



Alternatives and Recommendation
Alternatives

- Award the contract to Tapani, Inc. and have project complete by June '22.

- Reject all bids and re-advertise.



Recommendation

Award the contract to Tapani, Inc.

Requested Action/Motion

Motion to approve Resolution 2214.

Submitted By:  Mark Morgan
ATTACHMENTS:
DescriptionType
Resolution 2214Resolution Letter