20 Resolution awarding the bid for the demolition and disposal of dilapidated structures

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 11 /24/08 Community Council Date: Development Lisa A. Wright, Director 20. 12/08/08 RECOMMENDED MOTION: Move to approve a resolution awarding the bid for the demolition and disposal of dilapidated structures to Sanitation Solutions for $22.00 per ton for a term of two years and authorizing the City Manager to negotiate and execute all necessary documents. PoLicY IsstrE(s): Bid award; Code Enforcement BACKGROUND: The current $26 per ton, one-year contract with Sanitation Solutions for the city-wide demolition and disposal of dilapidated structures expires on December 10, 2008. Advertisements for bids were placed in The Par•is News on November 23 and 30, and bids were opened on Tuesday, December 2. Three packets were picked up by potential bidders, and one bid from Sanitation Solutions was submitted. Based on review of the bid, staff recommends Sanitation Solutions be awarded the bid for this project in the amount of $22.00 per ton, for a term of 2 years. Be advised that the new contract will require Sanitation Solutions to complete a minimum of five work orders per month. This production rate is expected to result in the expenditure of all of demolition budget of $155,000. Also, there is now a liquidated damages clause of $100 per day far every work order under the minimum number of five that they fail to complete in a month (e.g. if only two work orders a completed then Sanitation Solutions would have to pay $300 per day). BOARD/COMMISSION RECOMMENDATION: EXHIBITS: Resolution, contract ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Otder Expense $ ❑ Departrnent Report ~ Resolution Budgeted Arnt $255,000.00 ❑ Presentation ❑ Ondinance Y7'D Actual $59,140.00 (does not include ❑ Public Hearing ❑ Other November Waste Management bill - not rec'd t Acct Name House Demolitions/Sanitation Fees Acct Number 01-0328-40-00/01-0330-40-00 $100,000.00 from Council bu et FiscAL NoTES: Account No. 01-0328-40-00, House Demolitions, is budgeted at $80,000. Account No. 01-0330-40-00, Sanitation Fees, is budgeted at $75,000. The additional $100,000 is budgeted under the Council's Department. REVIEWED AND APPROVED BY: g Administration n City C1erk Z Community Development ❑ EMS/IT ❑ Finance ❑ Fire ❑ Municipal Court g Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris Revised 2/04/08