Title
Extension of Contract for Small Diameter Jack and Bore and Directional Boring Services (NB)
Explanation
Boring services are critical to GRU's operations since an increasing number of pipeline installation projects for water, wastewater, gas and electric are performed by directional boring instead of open trenching. Directional boring is more cost effective than open trenching for small diameter pipe and roadway crossings.
On March 26, 2001, the City Commission authorized staff to execute a contract for small diameter jack and bore and directional boring services with D & D, Inc. with an initial three-year period and to issue purchase orders in amounts not exceeding $220,000 per fiscal year. This contract was initially bid for services required by the Energy Delivery Department for natural gas infrastructure. After the bids were received Energy Delivery expressed the need for additional services other than gas so the use was expanded to include these services in addition to water and wastewater infrastructure requirements. As a result, during the initial three year term, the City Commission approved change orders in amounts not exceeding $630,000 for these expanded uses. The initial term of the contract ended on April 4, 2004 and two one-year extensions are available upon mutual agreement of the parties.
Staff has successfully negotiated an amendment extending the term through April 4, 2005 based on the same terms, conditions and prices. In the process of issuing purchase orders for the multiple departments, staff discovered Amendment No. Three had been executed and has been properly performed to date, but inadvertently had not been presented to the City Commission. The contract is subject to the Living Wage Ordinance; however, D & D, Inc. provided written certification that the Ordinance does not apply since they do not meet the definition of a "service contractor/subcontractor."
Recommendations
The City Commission: 1) ratify the execution of Amendment No. Three to the Contract for small diameter jack and bore and directional boring services with D & D, Inc., extending the term through April 4, 2005 and 2) approve the issuance of a purchase order(s) to D & D, Inc. in amounts not exceeding budgeted amounts for the remainder of FY 2004 and FY2005, subject to the approval of the final appropriation of funds for FY 2005.
Fiscal Impact
Funds totaling $600,000 for these services are included in the FY 2004 budget and similar amounts have been included in the proposed FY 2005 budget.
Drafter
Prepared by: Robert McVay, Assistant General Manager for Water/Wastewater Systems
Submitted by: Michael L. Kurtz, General Manager