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EVERETT CITY COUNCIL AGENDA ITEM COVER SHEET 3 <br /> PROJECT TITLE: <br /> Waive Immaterial Irregularity X Briefing COUNCIL BILL# <br /> and Award Construction Proposed Action Originating Department Public Works <br /> Contract for the E. Grand Consent Contact Person David Voigt <br /> Avenue Sewer System Action Phone Number 425-257-8983 <br /> Replacement and Stormwater Separation Project,Phase 1 to First Reading FOR AGENDA OF Sept 10,2014 <br /> KLB Construction,Inc. Second Reading <br /> Third Reading Initialed by: <br /> Public Hearing Department Head <br /> Budget Advisory CAA <br /> Council President <br /> Location Preceding Action Attachments Dept(s)Approval <br /> Riverside Neighborhood Call for Bids,July Summary Bid Tabulation Public Works,Legal <br /> Amount Budgeted $6,000,000 Includes Ecology Grant Funding <br /> Expenditure Required $5,943,492.36 Account Number(s):UP 3398 <br /> Budget Remaining $56,507.64 <br /> Additional Required $0 <br /> DETAILED SUMMARY STATEMENT: <br /> This sewer project is in the Riverside neighborhood,and includes sewer/stormwater separation for the purpose of <br /> reducing Combined Sewer Overflows to the Snohomish River and replacing very old deteriorated sewers. <br /> Construction bids were received from 9 contractors on August 19,2014 and a summary tabulation of bid totals is <br /> attached.The lowest responsive and responsible bid is$5,943,492.36 from KLB Construction,Inc.which is over <br /> $600,000 less than the second lowest bidder.The Engineers Estimate was$5,500,000. <br /> The KLB bid contains what appears to be an irregularity,in that the KLB bid contains a unit price of$0.01 per hour <br /> for traffic control services(flaggers). Regardless of wages paid,traffic control services are a small part of the overall <br /> sewer project. The construction contract in several places requires payment of prevailing wage,and KLB has re- <br /> affirmed in writing that,as required by state law,all traffic control workers will be paid prevailing wage and that KLB <br /> stands by its bid —even though the City will only pay KLB $0.01 per hour for traffic control services. Under state <br /> - law,the City can award a bid in spite of an irregularity,if the irregularity is immaterial. The test of materiality is <br /> whether the irregularity gives the bidder any advantage over other bidders. Here,the irregularity does not give KLB <br /> any advantage over any other bidder. Because of this,staff recommends that City Council waive the irregularity as <br /> immaterial and award to KLB. <br /> The second low bidder,R.L Alia,originally informed the City that it would protest the award to KLB. However,Alia <br /> later informed the City that it would not protest.Accordingly,City staff recommends that the City Council waive the <br /> irregularity as immaterial and award to KLB,as the lowest responsive and responsible bidder. Staff believes this is in <br /> the best interests of the City because: (1)the KLB bid is over$600,000 less than the next bid; (2)KLB is an <br /> experienced contractor that has successfully completed several projects for the City;(3)awarding now keeps the <br /> project on schedule,which is desirable in light of Tulalip pipeline construction occurring in the same area;and(4) <br /> reducing CSO overflows to achieve regulatory compliance is a priority. <br /> RECOMMENDATION (Exact action requested of Council): <br /> Waive Immaterial Irregularity and Award the Construction Contract, Authorizing the Mayor to Sign the <br /> Construction Contract with KLB Construction Inc. for the E. Grand Avenue Sewer System Replacement and <br /> Stormwater Separation Project,Phase 1 in the amount of$5,943,492.36, including sales tax. <br /> 5 <br />