CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the Award of Change Order #1 to Option Year Two of Contract 15-122, Excavation and Underground Utility Repairs, to Western Utility LLC for an amount not to exceed $50,000 and a total award of $166,953.
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DEPARTMENT: Water Utilities
SUBMITTED BY: James Holzapfel, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On October 18, 2014, City Council awarded Contract 15-122, Excavation and Underground Utility Repairs, to Western Utility LLC for an amount not to exceed $116,953 to excavate and repair underground water and wastewater utility infrastructures. The Water Utilities uses this contract to respond to emergencies when in-house resources are not available and for planned work that cannot be accomplished without diverting in-house resources from other high-priority work. City Council approved Option Year 1 on October 20, 2015 and Option Year 2 on November 1, 2016. Each of the two option year awards were for an amount not to exceed $116,953.
The current contract term expires December 31, 2017, with no renewal options remaining.
DISCUSSION:
The Water Utilities has recently assigned three water main breaks to the contractor resulting in an unplanned expense of approximately $25,000. Additionally, there were unforeseen complications on a planned water main replacement assigned to Western Utility, resulting in an additional $6,000 expense. The requested $50,000 change order will allow outstanding invoices to be paid and provide a reserve of approximately $19,000 to respond to emergencies such as water main breaks that would require repair prior to the end of the contract term on December 31, 2017.
FISCAL IMPACT:
CIP #: WU04, WWU06
Excavation and underground utility repairs are expensed to the capital improvement program and building repair and maintenance service accounts listed below. A total of $4,717,500 is budgeted for underground work in the Water and Wastewater Utility in CY2017. The requested award is within budget.
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Account Number |
Fund Description |
Total Budget Amount |
|
430-3490-537.70-89 |
Water & Wastewater |
$8,852,500 |
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430-3913-537.40-34 |
Water & Wastewater |
$68,000 |