R97-105 ACCEPTING THE BID AND AUTHORIZING A CONTRACT

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, . � The receipt of one bid, approximately 10 percent over the engineer's estimate, was of concern to staff. Staff directed B&V to review the bid and recommend to the City whether it � should accept or reject the bid. B&V has recommended that the City accept the bid from Osage. ', A copy of their letter making this recommendation is attached. It was noted that there are a limited number of qualified general contractors that the City might have expected to bid on the project. Osage has stated that they will be using four subcontractors on the project. Three of these four are local firms. Bodine Electric for electrical work, Kaskaskia Contractors for the metal building and a local disposal company for disposal of the waste oil. B&V's comparison of their estimate to the bid concluded that their estimate differed in two areas. The areas were the rehabilitation of the oil reservoir tank and the two pressure tanks. Their review of the bid tabulation deternuned the greatest difference between the contractor's bid and their estimate is for the work on the oil tanks. Osage's bid of $145,500 for this work exceeded, by 45 percent, B&V's estimate of$81,000. For the remaining items in the contract, Osage's bid of$816,000 is only 2.2 percent over B&V's estimate of$834,000. The contract includes the rehabilitation of two high-pressure oil tanks and the existing atmospheric storage tank. The work involves removing the existing paint coatings from the interior and e}rterior of a11 three tanks and a thorough inspection of the tanks. It was not practical in the design process to perform a full inspection of the tanks as they had to remain in service. If the tanks are found to be in good condition, the interior and e�erior of the tanks will be repainted and put back into service. If the tanks are not in an acceptable condition, they will have to be replaced. The rehabilitation is specialized work and may involve removing and handling potentially hazardous materials. In the process of reviewing the bid, inquiries were made to determine whether it would be cost effective to install new tanks rather the rehabilitating the existing tanks. Comments made to City staff during the inquiries indicate that these type of tanks have a typicallife expectancy of 20 years. The existing tanks are over 40 years old. The estimates obtained by staff determined that new tanks would cost, approximately, an additional $65,000 to the contract. The decision was wi h h r h ili i n f h s as the a ear to be in acce table workin made to proceed t t e e ab tat o o t e tank y pp p g condition. If new tanks are required, a change order will have to be issued to the contractor to install new tanks. The contract specifies that one of the two bascule gates must be operational at all times during construction. The dam must remain operational to insure the management of the lake level. This and the need to release water from the lake will limit the contractor's productivity and is the reason for the 330 calendar days time for completion of the project.