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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 6, 2018 <br />TITLE: <br />APPROVE APPROPRIATION ADJUSTMENT AND <br />AWARD CONTRACT TO MICHELS <br />PIPELINE CONSTRUCTION FOR <br />WEST GROVE VALLEY NEIGHBORHOOD <br />WATER MAIN IMPROVEMENTS <br />(PROJECT NO. 15-6447) <br />(STRATEGIC PLAN NO. 6, 1C) <br />1 <br />C MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 16' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Award a contract to Michels Pipeline Construction, the lowest responsible bidder, in accordance with <br />the base bid and additive item 18 in the total amount of $2,388,076 for the term beginning upon <br />execution of the contract and ending upon project completion, for the West Grove Valley <br />Neighborhood Water Main Improvements project, and authorize the City Manager and Clerk of the <br />Council to execute the contract subject to nonsubstantive changes approved by the City Manager and <br />the City Attorney. <br />2. Approve an appropriation adjustment for Fiscal Year 17/18 to recognize $1,404,500 from prior year <br />fund balance in the Water Utility revenue account into the Water Utility Capital Projects expenditure <br />account. <br />3. Approve the Project Cost Analysis for a total estimated construction delivery cost of $3,104,500, which <br />includes the contract base bid, administration, inspection and testing, and an authorized contingency <br />of $358,212. <br />DISCUSSION <br />Public Works Water Resources monitors the condition of water main pipelines by assessing critical <br />factors such as history of breaks, pipe size, alignment, location, and system redundancy to determine the <br />replacement priorities. The existing 6 -inch diameter cast iron water main located within the West Grove <br />Neighborhood, installed in the 1960s, has been experiencing a number of significant breaks and leaks, <br />and has been identified as a priority replacement (Exhibit 1). Water system improvements will include a <br />new 8 -inch P.V.C. water main, fire hydrants, water services, and appurtenances. Once this project is <br />completed, water service reliability and general service quality will improve significantly. In addition, the <br />potential for disruption due to water main breaks will be substantially reduced. <br />A Notice Inviting Bids was advertised on November 24 and 25, 2017, and bids were opened December <br />19, 2017. The bid documents included the Project Labor Agreement requirements as directed for all <br />20A-1 <br />