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CONSIDERATION OF CONTRACT NO. K-1314-38 WITH BLUE NILE CONTRACTORS INC., IN THE AMOUNT OF $46,440; PERFORMANCE BOND NO. B-1314-12; STATUTORY BOND NO. B-1314-13; MAINTENANCE BOND NO. MB-1314-6; AND RESOLUTION NO. R-1314-20 FOR THE GRAND VIEW AVENUE STORM SEWER REHABILITATION PROJECT.
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BACKGROUND: The FYE 2014 CIP Drainage Projects is an annual funding program for the repair or replacement of existing storm drainage infrastructure, typically located in existing neighborhoods. These projects are identified by staff or citizens because flooding or nuisances have begun to occur. Typical projects involve the repair or replacement of underground storm pipelines or storm inlets or concrete-lined drainage channels. The projects are constructed using in-house labor and equipment from the City Storm Water Division or a combination of in-house and contract services.
A project is proposed to be completed this year involving the rehabilitation of the underground storm water system located on Grand View Avenue between Northhampton Drive & Brookfield Drive within an existing public drainage easement. The owner of the adjacent property reported this problem in August, 2012, when he noticed a sink hole and his stockade fence had been damaged by the settling trench where the existing storm pipeline is located. The proposed method of repair is to rehabilitate the existing round 21 inch storm pipeline in place for a distance of 200 linear feet rather than open trench and replacement of the pipe that would require significant disruption of property.
DISCUSSION: Staff originally reviewed two options for the replacement of the existing round 21-inch storm pipeline. The first option was to budget for the project to be bid as a contractor removal and replacement of the entire system. The second was to perform the same work with in-house resources. The option to use a contractor to replace the system, which was estimated to exceed $120,000, was dismissed due to budget constraints. It was then determined to use in-house resources to complete the project.
After adoption of the FYE 2014 budget, a new process is currently pending patent was discovered and researched by staff. Blue Nile Contractors Inc., a storm pipeline repair firm based in Claycomo, MO was contacted to provide information and background on their product and installation procedures. References from other cities on similar projects were investigated and staff determined that Blue Nile Contractors Inc., could provide a beneficial product to the city. The method of repair will re-line the interior of the corrugated metal pipe with a smooth surface concrete lining of the storm sewer system and will not require the removal of the private fencing and landscaping on the properties adjacent to the storm sewer system. There are also swimming pools located just outside of the drainage easement on both sides that would require additional costly shoring to protect. The repairs are also estimated to be completed in two weeks or less as opposed to two months for the removal and replacement method.
Section 8-204(b)(2) of the Code of the City of Norman authorizes the City Council to waive competitive bidding for the purchase of supplies, materials, equipment, or contractual services which can be furnished only by a single dealer or which have a uniform price wherever purchased. Accordingly, staff recommends the contract with Blue Nile Contractors Inc., for the Grand View Storm Sewer Rehabilitation Project in the amount of $46,440 be approved. Blue Nile Contractors Inc., is the only firm identified by staff that currently performs this particular form of storm pipeline repair. Funds ($60,000) for this contract are available in Project SC0569, 2000 Block Grand View Avenue Stormwater, Construction (050-9906-451.61-01). Staff has performed a thorough reference check on Blue Nile Contractors Inc., as shown on the attachment.
If approved, construction will begin on this project in October, 2013, and be completed in two weeks from notice to proceed. After the storm pipeline is repaired, city staff will correct the surface settlement of the trench by earth fill and sod replacement.
RECOMMENDATION NO. 1: Staff has reviewed the contract and recommends that Contract No. K-1314-38 for the Grand View Storm Sewer Rehabilitation Project, be awarded to the sole source, Blue Nile Contractors Inc., in the amount of $46,440.
RECOMMENDATION NO. 2: Staff further recommends that, upon approval of Contract K-1314-38, that the following bonds be approved:
Performance Bond No. B-1314-12
Statutory Bond No. B-1314-13
Maintenance Bond No. MB-1314-6
RECOMMENDATION NO. 3: Staff further recommends that, upon approval of Contract No. K-1314-38, that Resolution R-1314-20 be adopted authorizing Blue Nile Contractors Inc., as project agent.