HomeMy WebLinkAboutA064 - Council Action Form dated July 11, 2023 ITEM #: 19
DATE: 07-11-23
DEPT: PW
COUNCIL ACTION FORM
SUBJECT: SANITARY SEWER REHABILITATION — (BASIN 12 - US HWY 69)
BACKGROUND:
This is the annual program for rehabilitation/reconstruction of deficient sanitary sewers
and deteriorated manholes at various locations throughout the city. The goal of this
program is to identify and remove major sources of inflow/infiltration (1/1) as means of
lowering the peak wet weather flow at the treatment plant. By eliminating 1/1 in these
mains, the sanitary sewer system will also regain needed capacity.
This project includes rehabilitation of sanitary sewers along US Hwy 69 (Basin 12: S. Duff,
Lincoln Way, and Grand Ave). WHKS & Co. of Ames, Iowa has completed plans and
specifications for the work (see attached maps).
On June 13, 2023, bids for the project were accepted by City Council, however award of
the project was delayed to follow requirements of the State Revolving Fund (SRF) Clean
Water Loan process. Bids were accepted as shown below:
Bidder Base Bid
Amount
Engineer's estimate $1,500,000.00
Jet Drain Services LLC. $1,353,819.00
On-Track Construction LLC. $1,441,945.00
J & K Contracting $1,803,060.00
Con-Struct Inc. $1,888,888.00
A State Revolving Fund (SRF) Clean Water Loan in the amount of $2,150,000 has been
secured as the funding source for this project Repayment of the loan will be from sewer
utility revenues. The not-to-exceed amount for the public hearing has been
established at an amount to cover possible cost increases, however, the City will
only borrow the amount needed to fund the project. A Public Hearing is required to
enter into the Sewer Revenue Loan and Disbursement Agreement to borrow the
funds in a principal amount not to exceed $2,150,000.
Revenues and expenses associated with this program are estimated, as follows:
Revenue Expenses
State Revolving Fund (this project) $ 2,150,000
State Revolving Fund (future phases) $ 1,900,000
Sewer Utility Fund $ 450,000
Sanitary Sewer Rehab (Low Bid —Jet Drain) $ 1,353,819
Sanitary Sewer Rehab (future phases) $ 2,500,000
Engineering/Administration (Est.) $ 300,000
$ 4,500,000 $ 4,153,819
ALTERNATIVES:
1. a. Resolution proceeding to take additional action for the authorization of a Loan and
Disbursement Agreement and the issuance of Sewer Revenue Bonds (SRF Loan)
not-to-exceed $2,150,000.
b. Resolution awarding contract for the Sanitary Sewer Rehabilitation — (US HWY
69) project to Jet Drain Services LLC. of Ames, Iowa in the amount of $1,353,819.
c. Resolution approving contract and bond.
2. Award the contract to one of the other bidders.
3. Do not proceed with this project.
CITY MANAGER'S RECOMMENDED ACTION:
This project advances City Council's commitment to improve the sanitary sewer system.
This is the eighth of several large projects that will have an immediate impact by removing
Inflow& Infiltration to regain valuable capacity in the City's existing sanitary sewer system.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1 , as described above.
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