26 - Contract Award to Oscar Renda - 2014 Bond Fund Water & Sewer - Package 4

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Item No. 26 memorandum TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: PACKAGE 4 UTILITIES BID AWARD DATE: December 7, 2015 BACKGROUND: We received and opened four qualified bids on November 17. Our latest project estimate was $25 million, and we were very pleased that two of the bids were actually below that estimated cost, even when adding in a significant amount of road overlay work we were not sure we could afford. The apparent low base bid was received from Kodiak in the amount of $22,510,615. The apparent lowest base bid plus various combinations of the 14 additive alternatives is Oscar Renda. STATUS OF ISSUE: This project will include extensive work in many locations, including much of downtown, Clarksville Street, and a complete reconstruction of Pine Bluff, among other locations. Work will last between 36 and 48 months, depending on phasing, unknown buried hazards, and weather. There will be significant inconvenience, traffic disruptions, and muddy messes. It will in the end be worth it, however, and we very much look forward to these major improvements to the infrastructure of Paris. In analyzing the bid alternates, we took into account two different methods by which roads might be overlaid after basic repairs are completed: traditional hot mix asphalt or a new micro - surface material. Both staff and the consulting engineer agreed that the traditional material should work better under these conditions, and a recommendation to award the bid to Oscar Renda has been made on that basis. BUDGET: Funded through 2013 bond proceeds. RECOMMENDATION: Award a contract to Oscar Renda in the amount of $23,348,350.