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REQUEST FOR COUNCIL ACTION <br /> Date: February 14, 2022 <br /> Item No.: 10.g <br />Department Approval City Manager Approval <br />Item Description: Approve Final Payment for Cleveland Watermain Improvements <br />Page 1 of 2 <br />BACKGROUND 1 <br />On February 8, 2021, the City Council awarded the Cleveland Watermain Improvements to SGP 2 <br />Contracting, Inc. Work completed under the contract totaled $1,137,134.72. The work was 3 <br />successfully completed during the 2021 season and the project is ready to be closed out. 4 <br />The project consisted of replacing the watermain on Cleveland Avenue between County Road C2 5 <br />and County Road D. Work included replacing valves, hydrants, reconnecting water services and 6 <br />associated restoration work. 7 <br />City policy requires that the following items be completed to finalize a construction contract: 8 <br />• Certification from the City Engineer verifying that all of the work has been completed in 9 <br />accordance with plans and specifications. (See Attachment B) 10 <br />• A resolution by the City Council accepting the contract and beginning the one-year warranty. 11 <br />(See Attachment A) 12 <br />FINANCIAL IMPACTS 13 <br />The final contract amount, $1,137,134.72, is $195,069.18 (20.7%) more than the awarded amount of 14 <br />$942,065.54. The cost increase was related to contaminated soils found on the project, additional 15 <br />costs for soils corrections and additional valves needed to complete the watermain replacement. 16 <br />Outside of the contract with SGP Contracting, Inc. this project included costs for testing and other 17 <br />miscellaneous expenses that totaled $49,439.90 for a total project cost of $1,186,574.62. The overall 18 <br />budget for the project in the CIP was $1,100,000.00. 19 <br />All costs for the project will be paid using the water utility fund. 20 <br />STAFF RECOMMENDATION 21 <br />The work completed was in accordance with project plans and specifications. Staff recommends the 22 <br />City Council approve a resolution accepting the work completed as the Cleveland Watermain 23 <br />Improvements and authorize final payment of $11,371.35 to SGP Contracting, Inc. 24