Council Communication

Approval of a Contract to Construct the Fifth Phase of the Bear Creek Trunk Sewer
Meeting Date:	June 23, 2005		Primary Staff Contact:	James H. Olson, 552-2412 olsonj@ashland.or.us
Department:	Public Works		Secondary Staff Contact:	Terry Ellis, 552-2335 ellist@ashland.or.us
Contributing Departments:	Finance
Approval:	Gino Grimaldi

Statement: Proposals for the construction of the Bear Creek Trunk Sewer, Phase 5 Project No. 03-05 were received and opened on June 9, 2005. A low bid of $224,433.23 was offered by Tobiasson Excavation, Inc. of Ashland. City policy for public contracting requires that the bid be accepted and that the City Council approve the contract for the construction of project. To ensure timely completion of this work, staff recommends approval of this contract.
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Background: The Bear Creek Trunk Sewer is a main collector for sewage flow from the extreme easterly portion of the City to the Wastewater Treatment Facility near Oak Street. The majority of the pipeline was constructed in 1963-64 and runs parallel to Bear Creek for much of its length. The 15-inch concrete pipeline has surpassed its carrying capacity in several locations and has been identified on both the 1986 and 2005 Sanitary Sewer Master Plans for upgrading. The replacement / upgrading process has been ongoing since 1988 and has been broken into sections or phases of construction. The phasing is determined by the degree of capacity exceedence with Phase No. 1 being the most problematic area. Phase 4 of this ongoing project was constructed two years ago. With the completion of the current Phase 5 project, the entire pipeline from the Wastewater Treatment Facility to Wightman Street will have been completed. There are approximately two more phases of construction required to replace the entire line. Bids for the Bear Creek Trunk Sewer, Phase 5 project were received on June 9, 2005 and opened at 1:30 PM as advertised. Proposals were received from Tobiasson Excavation and Pacific Pipeline and both bidders offered bonafide bids with the required bid bond and attachments. The low bid was received from Tobiasson Excavation at $224,433.23 which is $41,496.77 below the engineer's estimate. Pacific's bid was $414,270.00 or $189,836.77 over Tobiasson's bid. Tobiasson has successfully completed several projects for the City, the last being the fourth phase of the Bear Creek Trunk Sewer. This project is listed on the CIP at $315,000, well within budget even including the engineering cost of $26,284.00 for a total project cost of $250,717.23.
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Related City Policies: Ashland Municipal Code Chapter 2.50 "Public Contracts" requires that contracts exceeding $75,000 must be approved by City Council. The contract with Tobiasson Excavation for construction of the Bear Creek Trunk Sewer, Phase 5 is for $224,433.23.
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Council Options: Council may approve the attached contract with Tobiasson Excavation, Inc. or may reject all bids and require that the project be re-bid, however, bid rejection must be based upon legal objections as defined under ORS Section 279.035 and must be for good cause. If the low bid is rejected the award of contract must go to the second place bidder unless all bids are rejected.
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Staff Recommendation: Staff recommends approval of the attached contract.
Potential Motions: 1. Council may move to approve the attached contract with Tobiasson Excavation, Inc. 2. Council may move to reject all bids and rebid the project at a later date.
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Attachments: Click on the PDF file link below to view the following attachments:    • Contract    • Bid Summary    • Unit Price Comparison    • Vicinity Map

Bear Creek Sewer Attachments.pdf (996.2KB)

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