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REQUEST FOR COUNCIL ACTION Date: March 7, 2022 Item No.: 10.d Department Approval City Manager Approval Item Description: Approve Resolution Awarding Contract for Lexington Watermain Project 1 B ACKGROUND 2 The City has documented a number of watermain breaks on the watermain running along Lexington 3 Avenue from County Road C to Woodhill Drive. These breaks are difficult to repair due to the 4 County Road impacts and adjacent utilities. 5 The City developed a project that includes replacing the existing watermain by pipe bursting the 6 existing pipe. This project was sent out for bids, and bids were opened on March 1, 2022. 7 Based on past practice and state law, the City Council has awarded the contract to the lowest 8 responsible bidder. For the Lexington Watermain Project, the apparent low bid is $543,996.14. The 9 following is a summary of the bids received for this project: Contractor Bid $543,996.14 SGP Contracting, Inc. Northdale Construction, Inc. $587,973.62 $590,309.00 New Look Contracting, Inc. $653,989.60 Pember Companies, Inc. $578,110.00 Engineer’s Estimate 10 P OLICY O BJECTIVE 11 It is City policy to keep utility infrastructure in good operating condition and to keep systems 12 operating in a safe condition. 13 B UDGET I MPLICATIONS 14 Staff received four bids for this project. The low bid submitted by SGP Contracting, Inc., in the 15 amount of $543,996.14, is 6% lower than the engineer’s construction estimate of $578,110.00. The 16 2022 amended capital improvement budget included $800,000 for this project. 17 This project will be funded using approximately $543,996.14 from the Water Utility fund. 18 This project is proposed to be completed by June 18, 2022 prior to Rosefest activities. 19 S TAFF R ECOMMENDATION 20 Staff recommends approval of a resolution awarding a contract for the Lexington Watermain Project 21 in the amount of $543,996.14 to SGP Contracting, Inc. Page 1 of 2