CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #1 to Contract 24-029, Excavation and Underground Utility Repairs, to Miller Pipeline LLC, Baish Excavating, Inc. and IHC Construction Companies LLC for an amount not to exceed $488,410.15 and for a one-year term
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On April 16, 2024, the City Council awarded Contract 24-029 to Miller Pipeline LLC, Baish Excavating, Inc., and IHC Construction Companies LLC for approximately a 21-month term from March 31, 2024, to December 31, 2025, with three one-year options to extend.
In February 2024, the Water Utilities issued Bid 24-029, Excavation and Underground Utility Repairs, to solicit contractors to supplement and assist City crews during emergencies, when work exceeds City crews' capacity, or when work requires specialized equipment or expertise beyond City crews' capabilities. The work performed under this contract includes installation, replacement, repair, and relocation of water and sewer main segments, sanitary sewer manholes, valves, valve vaults, and service laterals. Work will be assigned to the contractors on an as-needed basis. The Water Utilities maintain contracts with three construction firms. If the primary contractor, defined as the lowest responsive bidder, does not have a crew available for the work, staff will contact the secondary and the tertiary contractor to provide services.
DISCUSSION:
During the initial contract term, all three contractors provided outstanding service and responded in a timely manner. Based upon the vendors’ performance, staff recommends extending the contract for the first option year. Due to increased labor and construction material costs, the vendor has requested a 5.25% increase.
The term of this option year is from January 1, 2026, to December 31, 2026, with two-option years remaining.
FISCAL IMPACT:
CIP# WW006
Underground utility and excavation services are expensed to the account numbers listed below. A total of $278,000 is approved as part of the operational services budget related to these services. Costs incurred for excavation in conjunction with capital improvement projects will be expensed to the respective project. The requested award can be accommodated within the 2026 budget.
|
Account Number |
Fund Description |
Total Budget Amount |
|
41251540-531308 |
Water Utility Fund |
$278,000 |
|
41251500-551502 |
Water Utility Fund |
$86,910,285 |