27 - BID AWARD FOR THE TWDB PHASE III WATER LINE REPLACEMENT PROJECT

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Item No. 27 memorandum TO: City Council John Godwin, City Manager FROM: Shawn Napier, P.E., Director of Engineering, Planning & Development SUBJECT: BID AWARD FOR THE TWDB PHASE III WATER LINE REPLACEMENT PROJECT DATE: June 15, 2015 BACKGROUND: The City of Paris received a low interest loan from the Texas Water Development Board for a Drinking Water State Revolving Fund in the amount of $3.4- million dollars. The loan will fund the replacement of 15 water line projects from the City's Capital Improvement Project list. The project was qualified as a green project and enabled the City for 15% ($510,317.00) loan forgiveness. This reduced the loan amount to $2,900,000.00. The project has been separated into three projects. The first two phases are complete. The third phase includes the following projects that will be replacing existing cast iron pipes: Grand Ave. from 7th SW to 4th SW 8th NE from Tudor to Grove 8th NE from Grove to MLK E. Cherry from 5th NE to 6th NE Neatherly from 13th SE to 17th SE (alternate bid not included, would add $62,382.30) STATUS OF ISSUE: The City of Paris received and opened two bids on June 1 lth at 3:00 P.M. The bid tabulation is attached. The low bid was from RBIS, Inc. in the amount of $415,713.10 the other bid was from Atkins Brothers Equipment Co., Inc. in the amount of $680,021.70. BUDGET: This will be funded from the Texas Water Development Board loan. The current balance of the fund is approximately $375,000. The contract amount exceeds the amount of the loan. Staff is working with the contractor to reduce the overall project cost by doing a change order. Any additional funding would come from the water and sewer fund for line replacements. RECOMMENDATION: Award a bid to RBIS, Inc. in the amount of $415,713.10 for the Phase III, TWDB water line replacement project.