Agenda Packets - 2009/03/23 (2) - Laserfiche WebLink

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April 13, 2009 Item No. 7I Page 4 Determining a 2009 Slip Lining Project Unfortunately, the amount included in the 2009 budget is not enough to slip line all 41 sewer segments identified in the 2009-2010 Street and Utility Improvement Project area. The number of segments that can be slip lined in 2009 is dependent upon the unit cost to perform the work. Since there was one segment of slip lining included in the original contract for the 2009-2010 Street and Utility Improvement Project, the City has a current unit price for the work with the contractor, as well as the bid unit prices of all 12 contractors who submitted bids on the 2009-2010 Project. The price in the contract is $34.00 per foot, while the range of all 12 bids received for the work was from $33.00 to $35.70 per foot. The options for the City to proceed with a 2009 Slip Lining Project for the sanitary sewer mains would be to either add the work to the contract for the 2009-2010 Street and Utility Improvement Project, or to hire a contractor under a separate contract. The benefits of adding the work to the 2009-2010 Street and Utility Improvement Project are: the City would have one contractor performing all the work, eliminating the potential for scheduling conflicts; the City would receive the same warranty on all work performed; and in the unforeseen event that there was a problem, the contractor has the capability of performing any needed excavation and repair, and the contract already has specified prices for such work. The primary benefit to pursuing the slip lining work under a separate contract would be the potential of getting a better price per foot than what is contained in the 2009-2010 Street and Utility Improvement Project. However, a separate project for slip lining would require separate construction documents, advertising, and receipt of bids. That would result in additional project costs, as well as a schedule delay of approximately 6 weeks. Given this information, the contractor for the 2009-2010 Street and Utility Improvement Project was approached to see if the price for slip lining could be lowered if the amount of work was increased. The contractor responded that the unit price for the work could be lowered from $34.00 per foot to $29.93 per foot due to the increased volume of work. This is a reduction of 12%. Based on investigation performed by the Public Works Staff, it is our opinion that the price received through a separate bid project for slip lining would not be appreciably lower than the $29.93 per foot price offered by the contractor. Adding the slip lining work to the 2009-2010 Street and Utility Improvement Project at the reduced price per foot would provide the primary benefit of a lower unit cost that would be expected from a separate contract, while maintaining all the benefits of keeping the work under a single contract. Therefore Staff is recommending that the 2009 slip lining work be added to the contract for the 2009-2010 Street and Utility Improvement Project.