Explanation
1. BACKGROUND:
This legislation authorizes the Director of Public Utilities to execute a contract with Insituform, Inc., for the construction of the Crestview/Calumet Area Sanitary Improvements Project. This project will rehabilitate approximately 21,093 lineal feet of eight to 21-inch diameter sanitary sewer lines serving homes within the project area that is located in the Clintonville Community. This contract will utilize trenchless technology methods to minimize the disruption to residences in the project area and to avoid the costlier method of traditional open trench sewer removal and replacement.
The Director of Public Utilities publicly opened four competitive bid proposals on April 26, 2006. The cumulative results of these bids were: Insituform, Inc.submitted a bid of $1,682,067.60; and Reynolds, Inc., submitted a bid of $1,874,239.20; Kokosing Construction submitted a bid of $2,112,942.60; and American Water Services Underground submitted a bid of $2,171,946.30.
Insituform's bid proposal was rejected by the Director of Public Utilities due to the vendor's failure to submit a responsive bid proposal bond. However, on July 7, 2006, Insituform Technologies, Inc., filed a lawsuit contesting the Department's rejection of their bid proposal. On August 27, 2006, the City Attorney's Office resolved the complaint, whereby the City agreed to award the contract to Insituform Technologies, Inc.
The Engineer's Estimate for this project was $2,187,535.20. In order to fund this contract, it was necessary to wait until an OWDA Loan could be requested, approved and executed by the Ohio Water Development Authority. The OWDA Board approved this loan on August 31, 2006.
2. FISCAL IMPACT:
This legislation was revised by the Department of Public Utilities to change the award from Reynolds, Inc. to Insituform Technologies, Inc. Insitform 's bid was the lowest bid submitted and represents a reduction in the cost of the contract by $192...
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