HomeMy WebLinkAbout24. 17-244 MAY 9, 2017 17-244 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: REJECT SIDS PUBLIC WORKS CONTRACT 17-25 FOR PRIVATE
SIDE LEAD WATER SERVICE LINE REPLACEMENT
INITIATED BY: CITY ADMINISTRATION
WHEREAS, Chapter 20 of the Municipal Code of the City of Oshkosh requires
property owners to replace lead services when any portion of a lead water service lateral is
replaced; and
WHEREAS, the City of Oshkosh advertised for bids for private side lead water
service line replacement under a Pilot Program Lead Service Line Replacement Policy in
conjunction with City utility work; and
WHEREAS, the low bid received from Dorner, Inc. of Luxembourg, Wisconsin
provided an "average" length service replacement cost of approximately$5,700, and staff
contacted local plumbers to provide an estimate who reported costs of approximately
$2,500-$3,000 per lateral; and
WHEREAS, accepting the low bid would result in the property owner's costs being
considerably higher than anticipated; and
WHEREAS, Section 62.15(5) allows the City to reject bids; and
WHEREAS,it is in the best interests of the City and residents affected by City utility
construction projects to reject these bids and work through a program of pre-qualified
private plumbers to accomplish the necessary replacements at a more affordable cost.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the Common Council finds that accepting the bids received for Public Works
Contract 17-25 would be against the best interests of the City and that the appropriate City
officials are hereby authorized directed to reject the bids received.
City
of�
Oshkosh
MEMORANDUM
TO: Honorable Mayor and Members of the 96r 6n Council
FROM: James Rabe, Director of Public Works
DATE: May 4, 2017
RE: Reject Bids for Public Works Contract No. 17-25
Private Side Lead Water Service Line Replacement for Contract 17-05
BACKGROUND
The City of Oshkosh applied for, and received a $500,000 principal forgiveness loan (grant) from the Wisconsin
Department of Natural Resources (WDNR) through the Safe Drinking Water Loan Program (SDWLP). These funds
must be used within a two-year timeframe. On March 28, 2017, the Common Council approved Ordinance No. 17-
161, which created Section 20-13 of the Municipal Code of the City of Oshkosh pertaining to lead water service line
replacement. Section 20-13 requires that if any portion of a lead water service lateral is replaced, then the remaining
portion of the lateral must be replaced within one hundred and eighty (180) days. On March 28, 2017, the Common
Council also approved a "Pilot Program Lead Service Line Replacement Policy". That policy indicated that the
City of Oshkosh would utilize the SWDLP money to provide a 50% cost share, up to a maximum cost share of
$1,500 per property.
ANALYSIS
Engineering staff reviewed the two (2) bids received. The low bid was received from Domer, Inc. of Luxemburg,
Wisconsin. The total bid is $389,635. Based on the bid prices, an "average" length service replacement would cost
approximately $5,700. While preparing the update to Chapter 20 of the Municipal Code of the City of Oshkosh, staff
contacted plumbers to provide an estimate of what the cost to replace a private -side lead water service lateral might
be. Staff anticipated costs of approximately $2,500 — $3,000 per lateral, based on the feedback received from the
plumbers. Staff believes that residents will be better served by hiring a plumber on their own.
Staff recommends that property owners should still be required to replace lead water service laterals in accordance
with recent changes to Chapter 20 of the Municipal Code of the City of Oshkosh. To assist residents with the new
requirements, the City is publishing a Request for Qualifications for plumbers interested becoming pre -qualified to
perform this work. The list of pre -qualified plumbers will be available to residents replacing their lead water service
lateral. Residents will then have to request quotations from plumbers on that list and have the lead water service
lateral replacement completed. The cost-sharing reimbursements through the SDWLP will still be available to the
residents that utilize plumbers on the pre -qualified list of plumbers.
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Memo for Reject Bids-511-17.docx
FISCAL IMPACT
All costs not covered by the SDWLP would be the responsibility of each private property owner to pay for. Based
upon the analysis of the bids, accepting the low bid would have resulted in the adjacent property owner's costs
being approximately $4,200 (on average) instead of the $1,500 previously anticipated.
RECOMMENDATIONS
I recommend the City Council reject the bids for Public Works Contract 17-25 due to the costs being significantly
higher than anticipated and these higher costs not being in the best interest of the City or its residents.
Approved:
Mark A. Rohloff
City Manager
JER/tlt
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Memo for Reject Bids_54-17.docx
Contract 17-25 - Private Side Lead Water Service Replacement for Contract 17-05 (#4943235)
Owner. Oshkosh, City of
Solicitor. Oshkosh, City of
Bid Opening: 04/13/201710:00 AM CDT
L\Engineering\2017 CONTRACTS\17-25 IST.R 17-05\Prgedbf—fi-\Cm W017-25 Bid T.b_4-1Y17 Pagel oft 4/13/2017
Domer Inc.
Wood Sewer & Excavating, Inc.
E506 Luxemburg Road
Luxemburg, WI 54217
Section Title
Item Code
Item Description
UofM
Quantity
Unit Price
Extension
Unit Price
Extension
Section 1:
$389,635.00
$415,050.00
Furnish and install spot
repair of sanitary laterals on
the private side, complete as
3234-P
specified
Linear Feet
280.00
$62.00
$17,360.00
$50.00
$14,000.00
Furnish and install
excavated new private -side
water service lateral,
4036-P
I complete as specified
Linear Feet
415.00
$65.00
$26,975.00
$50.00
$20,750.00
Furnish and install
trenchless new private -side
water service lateral,
4036-T
complete as specified
Linear Feet
3,100.00
$65.00
$201,500.00
$64.00
$198,400.00
Interior water service
connection, complete as
4085-P
specified
Each
57.001
$1,500.00
$85,500.00
$1,600.00
$91,200.00
Furnish and install new
electrical grounding due to
new water service, complete
4086-P
as specified
Each
57.00
$400.00
$22,800.00
$700.00
$39,900.00
Obtain City of Oshkosh
Inspections Department
permit, complete as
4087-P
specified
Each
140.00
$50.00
$7,000.00
$200.00
$28,000.00
Coordination with property
owners, complete as
4088-P
1specified
Each
57.00
$500.00
1 $28,500.00
$400.00
$22,800.00
Base Bid Total:
1
1$389,635.00
$415,050.00
L\Engineering\2017 CONTRACTS\17-25 IST.R 17-05\Prgedbf—fi-\Cm W017-25 Bid T.b_4-1Y17 Pagel oft 4/13/2017