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REQUEST FOR COUNCIL ACTION Date: February 8, 2021 Item No.: 9.e Department Approval City Manager Approval Item Description: Approve Resolution Awarding Contract for 2020 Watermain Project 1 B ACKGROUND 2 The City has documented a number of watermain breaks on the watermain running along Cleveland 3 Ave from County Road C2 to County Road D. These breaks are difficult to repair due to the pipe 4 depth and large size and presents a huge risk exposure for the City if a break does occur. 5 The City developed a project that includes installing a new watermain along the corridor to replace 6 the existing watermain. This project was sent out for bids, and bids were opened on February 2, 7 2021. 8 Based on past practice and state law, the City Council has awarded the contract to the lowest 9 responsible bidder. For the 2021 Cleveland Watermain Project, the apparent low bid is $942,065.54. 10 The following is a summary of the bids received for this project: Contractor Bid $942,065.54 SGP Contracting, Inc. Kuechle Underground $1,001,013.00 $1,076,195.43 Meyer Contracting Inc. $1,147,438.50 Minger Construction Co. Inc. $1,035,200.00 Engineer’s Estimate 11 P OLICY O BJECTIVE 12 It is City policy to keep utility infrastructure in good operating condition and to keep systems 13 operating in a safe condition. 14 B UDGET I MPLICATIONS 15 Staff received four bids for this project. The low bid submitted by SGP Contracting, Inc., in the 16 amount of $942,065.54, is 9% lower than the engineer’s construction estimate of $1,035,200.00. 17 The 2021 amended capital improvement budget included $1,100,000.00 for this project. 18 This project will be funded using approximately $942,065.54 from the Water Utility fund. 19 This project is proposed to be completed by August 2021. 20 S TAFF R ECOMMENDATION 21 Staff recommends approval of a resolution awarding a contract for the 2021 Cleveland Watermain 22 Project in the amount of $942,065.54to SGP Contracting, Inc. Page 1 of 2