CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 23-018, Main Street and Washington Street Water Main and Roadway Improvements, to A Lamp Concrete Contractor, Inc., for an amount not to exceed $2,458,000
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In January 2023, Water Utilities issued Bid 23-018, Main Street and Washington Street Water Main and Roadway Improvements. The project includes water main replacement and roadway resurfacing on Main Street between Hillside Road and Aurora Avenue. The project also includes the abandonment of a redundant water main on Washington Street between Hillside Road and Aurora Avenue.
The purpose of the project is to replace aging and deficient water main. The existing 6” water main on Main Street is cast iron pipe and was installed in the 1960’s. It will be replaced and upsized to 8” ductile iron pipe in accordance with City standards.
The work on Washington Street involves the transfer of water services from a 6” water main installed in the 1960’s to a 12” water main installed in the 2000’s. After the services are transferred, the 6” main will be taken out of service.
Upon completion of the water main installation, Main Street will be milled and resurfaced. This work also includes upgrades to sidewalk ramps to ADA standards and replacement of deficient curb and gutter.
DISCUSSION:
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Advertisement Date: |
1/3/2023 |
Notices Sent: |
344 |
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Opening Date: |
1/18/2023 |
Planholders: |
36 |
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Proposals Received: |
3 |
Bids were received from the following vendors:
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Vendor Name |
Proposed Cost |
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Engineer’s Estimate |
$2,640,748.50 |
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A Lamp Concrete Contractors, Inc. |
$2,458,000.00 |
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Bolder Contractors |
$2,684,989.00 |
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Swallow Construction |
$3,134,128.50 |
A Lamp Concrete Contractors submitted the low bid for the project at $2,458,000. The bid is 6.9% lower than the engineer’s estimate; however, it is 31% higher than the amount included in the 2023 budget.
Water Utilities staff based the 2023 budget on the average per foot cost of 2022 water main projects. As staff prepared bid specifications, it became apparent that costs were continuing to escalate across the construction industry and the engineer’s estimate was revised accordingly.
Staff spoke with bidders who said pricing is being driven primarily by labor and material costs, most notably the cost of concrete and steel. One contractor noted that this project has complexities associated with the abandonment of the Washington Street main that drove costs higher. Additionally, construction costs were favorable in recent years due to lower demand. The influx of federal and state infrastructure funding has driven demand much higher, thus increasing the price contractors can charge.
While costs are greater than anticipated, it is not in the best interest of the City to cancel, delay, or re-bid the project. Staff anticipates that the factors driving higher costs will continue and there is no guarantee the work can be completed at a lower cost in the foreseeable future.
Staff believes the low bid submitted is reasonable for performing the work as specified. Staff has experience with A Lamp Concrete Contractors and finds them to be a capable contractor.
FISCAL IMPACT:
CIP#: WU401 & MP009
Watermain roadway improvements to Main & Washington streets are expensed to the account numbers listed below as part of the Capital improvement program. A total of $1,512,500 is budgeted for this project in the Water Capital Fund, and an estimated $180,000 under the annual street maintenance improvement program. While the requested award exceeds the budget, the project can be funded within the overall Capital Improvement program. Staff will monitor expenses in the funds to ensure compliance with budgetary guidelines.
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Account Number |
Fund Description |
Total Budget Amount |
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41252000-551502 |
Water Capital Fund |
$39,813,900 |
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30282200-551502 |
Capital Projects Fund |
$27,482,000 |
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