cover
TO: Mayor Richard C. Irvin
FROM: Capital Projects Manager
DATE: February 13, 2020
SUBJECT:
A Resolution to approve a ratification to the existing contract with RJ Kuhn Plumbing, Heating, and Cooling, Inc. to add $24,445.25 for repair and replacement services related to existing plumbing infrastructure at the Development Services Center (DSC).
PURPOSE:
To ratify the existing contract with RJ Kuhn Plumbing, Heating, and Cooling, Inc. to add $24,445.25 for repair and replacement services related to existing plumbing infrastructure at the DSC.
BACKGROUND:
A Request for Bids for plumbing services associated with renovation of the 2nd Floor "Bridge" Area at DSC was published with one qualified bid received on May 8, 2019. Due to only one bid being received and the fact that that bid substantially exceeded the Engineer's Estimate for the scope of work included in the bid, the City elected to reject all bids via Resolution R19-164 on May 28, 2019. The project was rebid and two qualified bids were received on June 19, 2019. RJ Kuhn Plumbing, Heating, and Cooling (hereafter referred to as "the contractor") was selected with the lowest bid of $23,430 (which included both bid alternates and a $5,000 contingency fund for change orders).
The scope of services in the contract included new kitchen plumbing and drinking water feeds at three locations. The 2nd Floor "Bridge" already included two new restrooms which were constructed as part of the 2018 project to renovate the 2nd floor of the adjacent original two-story portion of the DSC. These restrooms, which are at the north end of the bridge area, were not yet operational due to an inoperable gravity sewer line connecting to the original building. It was the City's intention to perform this repair in 2020 due to perceived budget limitations. However, after noticing active leaking underneath the "bridge" floor and discussing onsite with the contractor in September 2019, it was determined that the repairs were necessary, urgent, and could be made using the $5,000 contingency built into the existing contract.
Once underway, it became evident that the scope of the repair was greater than originally anticipated. The condition and pitch of the pipe were much worse than anticipated and what was thought to be a need for a series of small point repairs turned into complete pipe replacement. Further, the existing ductile iron pipe inside the original building to which the new pipe was to connect was also found to be in a state of inoperable disrepair and noncompliance. A brief narrative of the repairs was recently provided by the contractor and is attached.
Upon identification and prior to commencement of this additional scope of required services, the City's Project Manager had conversations with the contractor reiterating that any additional funding required in excess of the existing contract and more specifically, a total contract cost of $25,000, would require City Council approval. The City was assured both verbally and via email that the cost of all services performed including the additional, out of original-scope (change order) services would not exceed $25,000.
Based on these assurances and the undefined extent of remaining repairs, the contractor was allowed to proceed on a Time and Materials basis. There was also the need to complete the repairs in a timely manner due to the leaking observed, the eminent failure of the collection pipe inside the main building which would impact the entire 2nd floor, the vulnerability of the newly exposed area under the "bridge" to the winter elements (freezing utilities, rodent infestation, etc.), and a need to get this addressed in order to pass inspections and obtain the Certificate of Occupancy required to allow the future City Divisions to move in as scheduled.
The repairs were completed in December and invoiced in January 2020, including all base bid services as well as a change order for an additional $24,445.25. When questioned about this additional cost, the contractor indicated that they were under the assumption that their Time and Material cost for the additional services alone was not to exceed $25,000. Whereas the City's Project Manager believed both base bid and additional services combined would not exceed that threshold, the final invoices requested for payment by RJ Kuhn totaled $47,875.25 ($23,430 for base bid and $24,445.25 for additional services).
It is the City's position that based on a review of the services provided, the additional charges presented by the contractor are valid. It is worth noting that the total final cost of this contract ($47,875.25) was still substantially less than both the other qualified re-bid received ($68,000) and the lone initial bid which was rejected (amount not published), neither of which included the considerable scope of additional services performed and described above.
DISCUSSION:
Funding for this ratification will come from the original funding source, account 340-4010-417.73-40 (Capital Outlay-Improvement/Building Renovation), which has a remaining 2019 balance of $127,172.50.
IMPACT STATEMENT:
This ratification will allow the City to pay for these critical repairs to the buildings plumbing, which were necessary to maintain water and wastewater functionality on the entire 2nd floor of the DSC.
RECOMMENDATIONS:
Staff request the ratification be approved.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution to approve a ratification to the existing contract with RJ Kuhn Plumbing, Heating, and Cooling, Inc. to add $24,445.25 for repair and replacement services related to existing plumbing infrastructure at the Development Services Center (DSC).
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, upon receipt of invoicing for additional services provided on a Time and Materials basis, the total cost of the contract with RJ Kuhn Plumbing, Heating, and Cooling, Inc. for plumbing services to existing plumbing infrastructure at the Development Services Center (DSC) has exceeded the threshold requiring City Council approval; and
WHEREAS, the final invoices requested for payment by RJ Kuhn totaled $47,875.25 ($23,430 for base bid and $24,445.25 for additional services); and
WHEREAS, the 2019 remaining balance for account 340-4010-417.73-40 has sufficient funding of $127,172.50; and)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: to approve a ratification to the existing contract with RJ Kuhn Plumbing, Heating, and Cooling, Inc. to add $24,445.25 for repair and replacement services related to existing plumbing infrastructure at the Development Services Center (DSC).