Agenda Item - 2001-10-23 (05) CITY OF LAKE OSWEGO
AGENDA REPORT SUMMARY
MEETING DATE: October 23, 2001 (Continued from October 16, 2001)
SUBJECT: Award of a public improvement contract for construction of 2001-2002 Annual
Water System Rehabilitation Program (Work Order 1134)
RECOMMENDED MOTION:
Move to award the public improvement contract for construction of 2001-2002 Annual Water System
Rehabilitation Program to Canby Excavating, Inc. in the amount of$924,838.30.
EST. FISCAL ATTACHMENTS: NOTICED (Date):
IMPACT:
• October 10, 2001 Komarek
$924,838.30 Council Report
STAFF COST:
Ordinance no.: n/a
BUDGETED: Resolution no.: n/a
Y Yes N
Previous Council
FUNDING SOURCE: consideration: None
Water Utility Fund
CI ENGINEER 7 CITY NAGER
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COUNCIL REPORT
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TO: Douglas J. Schmitz, City Manager
PREPARED BY: Joel B. Komarek, P.E., Assistant City EngineeI
SUBJECT: Recommendation of Bid Award for Construction of 2001-2002 Annual
Water System Rehabilitation Program
DATE: October 10, 2001
Action
The Council is requested to award a public improvement contract to Canby Excavating, Inc. in
the amount of$924,838.30 for construction of 2001-2002 Annual Water System Rehabilitation
Program.
Introduction
This Contract requires Council award in order to comply with City and State contracting and
purchasing procedures. The adopted FY 2001-02 budget appropriated $1,144,000 to construct
this year's annual waterline rehabilitation program. Therefore, the City will realize an estimated
cost savings of$219,000 relative to the budget appropriation.
Background
The City has annually budgeted for and constructed new water mains to replace existing water
mains identified as being hydraulically deficient, of substandard construction or maintenance
intensive due to frequent leaks. Historically, the annual budget for the main replacement
program is about$500,000 dollars. Since 1995,the City has spent in excess of$1.3 million
dollars to replace water mains throughout the City. This year's project focuses on the last
significant area of the City with pipeline deficiencies: the First Addition Neighborhood.
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Council Report
Page 2 of 3
The pipes being replaced are part of the original water system the City of Oswego purchased
from the Oswego Light and Power Company back in 1925. Many of these pipes, constructed
prior to 1900, are too small to provide adequate capacity for today's peak day water demands and
fire suppression. The new pipes will provide adequate capacity for domestic and fire suppression
purposes and will reduce long-term maintenance costs. Approximately 14,000 feet of new pipe
will be installed.
Discussion
At 10:00 a.m. on Tuesday October 9, 2001, the City of Lake Oswego opened bids for the above
referenced project. Sixteen bids were received with the apparent low bid submitted by Werbin
West Contracting, Inc. The Bidders and the amounts bid are tabulated below:
Bidder Name Bid Amount
Werbin West Contracting, Inc. $832,637.20
Larson Golf Construction, Inc. $895,977.00
Canby Excavating, Inc. $924,838.30
New West Constructors, Inc. $929,499.80
Thompson Brothers Excavating, Inc. $951,237.60
K&R Plumbing Construction, Inc. $954,196.20
Landis & Landis, LLC $960,676.27
Utility Contractors, Inc. $964,346.76
Moore Excavation, Inc. $968,189.90
Dunn Construction, Inc. $982,565.00
The Saunders Company $999,550.00
Kerr Contractors, Inc. $999,936.70
Copenhagen Utilities, Inc. $1,037,464.80
C&M Construction, Inc. $1,051,559.10
Mocon Corporation $1,055,212.75
Benge Construction Co. $1,093,093.93
Engineer's Estimate $1,100,000
Discussion
Following the bid opening, an evaluation of the Bids was conducted by City engineering and
legal staff. Based upon this evaluation, the bids of Werbin West Contracting, Inc. and Larson
Golf Construction, Inc. were determined to be materially non-responsive to the bidding
requirements of the project.
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Council Report
Page 3 of 3
Werbin West Contracting, Inc. does not have current qualification status with the State of Oregon
for waterline and municipal street construction. Larson Golf Construction, Inc. does not
demonstrate relevant experience in the construction of municipal water distribution systems. In
addition, a special experience statement required to be submitted with each bid was absent from
the bid of Larson Golf Construction, Inc. as was the required approval letter from the State of
Oregon attesting to current qualification status for waterline and municipal street construction.
Based upon an evaluation of the third low bid, the City has determined that Canby Excavating,
Inc. submitted the lowest responsive, responsible bid and therefore recommends award of a
construction contract for Work Order 1134: 2001-2002 Annual Water System Rehabilitation
Program to Canby Excavating, Inc.
Alternatives
The alternatives are to: 1) award the contract; 2) reject all bids and re-bid the project, or 3)
remove from the consent agenda and discuss.
Conclusion
The bidding process was conducted in accordance with the City's Public Contracting Procedures
and therefore, staff recommends that Council award the contract to Canby Excavating, Inc. in the
amount of$924,838.30.
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