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J U L 21991 DATE: JUNE 28, 1991 TO: JAMES E. CHANDLER COUNTY ADMINISTRATOR FROM: TERRANCE G. PI O DIRECTOR OF UT SUBJECT: SUBJECT: 82ND AVENUE boor 83 Fact 77 Background: In November of 1990, the Utilities Department had proposed a change order to an existing contract for the extension of a sewer force main from the West County Wastewater Treatment Plant to the landfill and the state correctional institute. The change order for $174,971 and $26,000 for fittings represented approximately 16,300 feet of sewer pipe. The change order was not approved, and the project was redesigned and placed out for bid with the following result: After removal of any engineering responsibility for the contractor and tightening of the specifications, the unit price was reduced from $8.50 to ".Jr* per ft. Because the correctional institute is now not interested in connection to the sewer line, we eliminated approximately 6,000 ft. of line. The Public Works Department agreed to an open cut access to the road, which amounted to a $6,300 reduction for eliminating a jack and bore. After adding back into the project engineering, administration, and surveying, the total project was reduced approximately $100,000, with a true savings of approximately $39,000. The bid price, as indicated in the agenda item, shows total prices ranging from $86,000 to $180,000, which indicates that the final results of any bid are hard to call. Commissioner Scurlock noted that he has some serious prob- lems with this particular item. It came before the Board previously on last November and was withdrawn at his request in that he had a strong feeling that extension of unit prices is something that should be done very cautiously. In addition to everything else, the unit price was approximately a year old, and since there has been a down grade of the economy, he felt there could be some substantial savings. At that time, he accordingly called around for verbal quotes and was led to believe there would be as much as a $2.00 per lineal foot savings from the price requested to be extended. Commissioner Scurlock further advised that he has some backup material which he agrees with to some extent, but it shows a $39,000 savings and he feels that actually the savings is far beyond that. The original contract before any modifications was $200,000. The bid we have now is $86,000, and that is $100,000 some odd dollars difference. It should be noted that the scope of service has been changed - pipe that was to be extended to the correctional facility is omitted, etc., but the fact of the 12