CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract 24-153, Central Elevated Tank Construction, to Phoenix Fabricators and Erectors LLC for an additional 91 days
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On September 17, 2024, the City Council awarded Contract 24-153, Central Elevated Tank Construction, to Phoenix Fabricators and Erectors LLC, with an anticipated final completion date of April 16, 2026. The work will include the construction of a new 0.5-million-gallon elevated water tank, installation of new watermain, sanitary drainage pipe, and stormwater sewer associated with the new elevated tank. In addition, work will include the installation of electrical controls, conduits, cables, a new fence around the proposed site, and installation of a retaining wall.
DISCUSSION:
Due to an unforeseen increase in demand for elevated water storage tanks, Phoenix has experienced longer lead times for materials and a shortage of skilled labor, both internally and among its subcontractors. As a result, Phoenix submitted a written request on October 3, 2025, for a 91-day extension, which would revise the project's completion date to July 16, 2026.
Staff finds this request to be reasonable and sufficient to allow the contractor to complete the work at a high level of quality. Although Phoenix has recently indicated in meetings that additional time beyond July 16, 2026, may be needed, staff does not consider a further extension to be justified at this time. Any future requests for additional time will be evaluated upon receipt of a formal written submission.
The requested extension will not adversely impact the operation of the City’s water supply system.
FISCAL IMPACT:
CIP #: WU043- Central Elevated Tank Rehabilitation
The requested Change Order is for an extension of time only and does not increase the value of the contract.