In May 2013, after a competitive bid process, the Village Board awarded a two-year contract to HBK for Water Meter Service and Skirmont Mechanical for Backflow Device Service. These two services are typically bid together due in large part to various contractors that have the potential to perform both services. The original contracts were awarded to two firms based upon lowest responsible bids. HBK was awarded the Water Meter Service Contract and Skirmont was awarded the Backflow Device Service Contract.

The water meter service contract is for the calibration and repair of Village owned water meters. This service ensures the accuracy of the water meters. It is the goal of Public Works to have all large commercial meters tested and calibrated every three years with master meters tested every year. The backflow device service contract covers the testing and repair of over 1450 Village maintained backflow devices. This service ensures the protection of the water distribution system from potential cross connections.

In accordance with the original specifications and the contracts, the contracts can be extended with approval of both parties. HBK has submitted a letter requesting a one-year contract extension with no unit price increases from the prior year. Skirmont Mechanical has requested to extend the contract for one year with an increase of 0.35 percent. The proposed increase is in accordance with the extension terms of the contract with Skirmont Mechanical. For both contracts, these will be the last of two one-year extensions. These extensions would begin in May 21, 2016 and conclude May 20, 2017. Staff supports the extensions.

If these contracts are rebid, the chances for significant unit price increases are high, as they are primarily labor based and hourly rates have increased by several percent over the last three years. While the total costs are dependent on the actual quantities used, Public Works expenditures will not exceed the total budgeted amount of $321,000. The bidders have been determined to be responsible and the contract extension meets specifications.

RECOMMENDATION

It is recommended that the Village Board award one-year contract extensions to both HBK and Skirmont Mechanical for the Water Meter (HBK) and Backflow Device (Skirmont) service. The HBK contract extension would not contain an increase and the Skirmont contract would have an  increase of 0.35% to the unit prices from 2015 and authorize execution of all necessary documents.