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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MAY 17, 2016 TITLE: AWARD CONTRACT TO KANA PIPELINE, INC. FOR WARNER INDUSTRIAL COMMUNITY WATER AND SEWER IMPROVEMENTS (PROJECT 16-6461) (STRATEGIC PLAN NO. 6, 1C) CITY MANAGER ' «.11..1,1.--- h ! _ _ � .+* • CLERK OF COUNCIL USE ONLY: APPROVED MAY 1 7 20.16 IJP As Recommended, 2313 ❑ As Amended ❑ Ordinance on 1 "Reading ❑ Ordinance on 2"tl Reading ❑ Implementing Resolution ❑ Set Public Nearing Far CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to award and execute a construction contract to Kana Pipeline, Ino,, the lowest responsible bidder, In accordance with the bid in the amount of $3,457,000, for the term beginning upon execution of the contract and ending upon project completion, for the construction of the Warner Industrial Community Water and sewer Improvements Project, subject to nonsubstantive changes approved by the City Manager and City Attorney. 2. Approve the Project Cost Analysis for a total estimated project delivery cost of $4,494,100, which includes the contract base amount, administration, inspection, testing, and a $518,550 contingency. DISCUSSION The existing 8 -inch diameter cast iron water main located within the Warner Industrial Community (Exhibit 1) was installed in the 1950's and has begun to experience a number of significant breaks and leaks. Staff monitors the condition of water main pipelines by assessing critical factors such as history of breaks, size, location, and system redundancy to determine the replacement priorities. Based on an analysis of these factors, both the water main and sewer within this industrial community have been identified for replacement. The improvements Include the construction of a new 8" P,V.C, water main, fire hydrants, water services and appurtenances. Additionally, the sewer main system is undersized and will be replaced with a new 10" vitrified clay pipe (VCP), Once this project is completed, water service quality and reliability will Improve significantly, The water main breaks and the possibility of a loss of service will be substantially reduced, In addition, the upgraded sewer main system will provide larger flow capacity to prevent overflow issues.