Purpose of Report: To discuss options regarding the award of the bid for the above described projects.

Background: This project is actually a combination of three separate projects that were packaged as one to attract bidders. The three portions are as follows: 1) The relocation of the sewer trunk line that currently crosses the Oklahoma Technology and Research Park development; 2) The installation of a 12" waterline along the south side of Sixth Avenue; and 3) the installation of an 8" waterline within the Park to serve development to occur in near future. The combined budget for these projects is $443,000.

Discussion:

The original plans for the Technology Park site called for compensatory storage areas to be located over the existing sewer line. Repair and maintenance of a sewer line underneath a pond or small lake as proposed was not desirable to staff, therefore plans were made and funds budgeted to relocate this line. The grading plan for the site has changed as the Park concept was further refined. Currently it is the opinion of the City Engineer that the existing line can remain in its current location with only minor modifications necessary in the near future. These modifications, which include final grading over the line to ensure minimum depth of coverage and the installation of sealed manhole lids and rings to eliminate any inflow during flooding, can be completed under a separate bid or by City staff depending on the amount of work required.

While eliminating the relocation of the trunk line results in significant savings, the need to provide sanitary sewer service to the lots within the Technology Park still exists. Staff proposes an 8" line be installed parallel to the access road that serves the Park. This line will serve approximately half of the lots; those located in the Phase 1 area of construction. An additional line extension will be needed as the Phase 2 lots develop in the future. This change in the scope will require plan and permit revision as well as re-bidding.

The waterline extensions are primarily needed to serve the interior of the Technology Park. The 12" line installed along the south side of Sixth Avenue will have the added benefit of providing temporary alleviation of the corroding 20" ductile iron water line problem along the north side of Sixth Avenue. This extension will also eliminate a dead-end line just east of the automobile dealership located adjacent to the Technology Park site.

A 'Notice to Bidders' was advertised in the Stillwater NewsPress on October 19, and October 26, 1999 and faxed to 21 contractors throughout the state. Specifications and bid packets were sent to construction newspapers (such as the Dodge Report and Southwest Construction News). Specifications, plans, and bid packets were sent to the contractors upon request. Six contractors requested complete packets.

A pre-bid conference was held on October 27, 1999. A total of 4 contractors attended this meeting. Attendance was not mandatory. Of the six plan holders, only two bids were received, opened and read aloud at 3:00 on November 8, 1999. The bid tabulation is attached for your review. Staff has evaluated both bidder's credentials and determined that they meet all the requirements to perform the work as described.

Budget Impact:

The Water Utilities 1999-2000 budget contained the following amounts for these projects: 1) the sewer line relocation: $330,000 ($329,540 remaining after payment of state permit fees) ; 2) the 12" water line along Sixth Avenue: $73,000; and 3) the 8" waterline: $40,000. ($39,410 remaining after payment of state permit fees). The bids for the combined projects are significantly higher than the budgeted amounts. The impact of each of the alternatives listed below is explained as presented.

Alternatives:

1. Reject all bids and re-bid all three portions of the project with changes in the scope as discussed above.
2. Award the bid to ML Young Construction for installation of the water line portion only and re-bid the Oklahoma Technology and Research Park sewer line. (Although Brawner is the apparent low bidder for the complete project, ML Young Construction is the lower of the two when the only the waterline portion is considered.) This cost will be $198,218.60. The budget for this portion of the project is currently $112,410. Staff recommends that the additional funding of the water line project ($86,808.60) be transferred from the sewer line budget to cover this project. The re-bid of the sewer line will include the changes discussed above which should result in lower bids.
3. Award the bid to Brawner Construction for installation of all three projects at a cost of $587,440. The combined totals for all three projects is currently $441,950. Approval of this alternative will require a budget amendment in the amount of $145,490.

Recommendation:

Staff recommends Alternative #2: Awarding only the waterline portion of the bid to ML Young Construction and allow funding to be transferred from the sewer line budget to cover this project. The sewer line project will be re-bid according to the changes previously discussed.

Recommended by:

___________________________

Carl Weinaug

City Manager