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Consideration of request for a waiver of the competitive bidding process and approval of a contract with R&R Restorations for repairs to the Blanchard Street Pumping Station in the amount of $154,620
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Submitted by:
David Simpson, Director of Public Works
Department
Public Works
A. Issue
In response to an incident that took place at the Blanchard Street pumping station, the City, in cooperation with our insurance company, would like to hire R&R Restoration to make repairs to the station in order to allow for completion of the ongoing capital improvement project.
B. Background/Options
On February 19, 2024 an incident occurred at the Blanchard Street water pumping station which is currently being upgraded by a contractor hired by the City as part of the City’s Capital Improvement Program. An eighteen-inch diameter piece of steel riser pipe approximately six feet long detached during a pressure test. When the pipe detached it impacted and damaged a brick partition wall within the station. Observed damages due to the pipe detachment, impact and subsequent percussion forces include, but are not limited to the ceiling, a unit heater, metal double doors, and brick/mortar. Iron oxide debris particles from inside the piping system were also dispersed and coat most interior surfaces of the building. Fortunately, no one was injured in the incident.
Following the incident, the City’s Insurance Carrier, Municipal Property Insurance Company (MPIC) was notified and a loss reporting form was completed and filed with MPIC. City staff met with MPIC on February 28th, 2024 to evaluate building damage as well as determine next steps in the forensic process needed to ultimately resolve the financial claim resulting from the incident. Per the recommendation from MPIC, R&R Restorations was contacted and provided a proposal to clean, repair, and restore the damage to the building for a sum of $154,620 for which the City will only be responsible for a $5,000 deductible. Given that MPIC has recommended this contractor and will be paying the majority of the costs associated with the contract we would like to utilize their services. The proposal does not include the cleaning of the sensitive electronic equipment which will be performed by a specialized contractor and will likely be a separate contract.
City staff is requesting approval to waive the competitive bidding process and approve a contract with R&R Restorations in the amount of $154,620 to clean, repair, and restore the damage to the Blanchard Street water pumping station. MPIC is able to pay the contractor R&R directly for all costs over the $5,000 deductible, however, the contract will be held by the City so approval is needed to enter into the contract.
C. Strategic Plan (Area of Focus)
N/A
D. Fiscal Impact
The Water Utility budget will be responsible for the $5,000 deductible and the remaining amount will be paid directly to the contractor by MPIC. The City may or may not receive the $5,000 deductible back pending the outcome of the forensic testing and insurance settlement process that will likely be lengthy.
E. Recommendation
Approval to waive the competitive bidding process and approve a contract with R&R Restorations in the amount of $154,620 to clean, repair, and restore the damage to the Blanchard Street water pumping station