Title
Resolution Authorizing Extension of Contract 2017-0650 in the Amount of $2,796,462.11 with Michels Corporation for the Water Line Rehabilitation Project
Body
Department: Water Resources
Council District: 2, 3 and 4
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Steven D. Drew, 336-373-7893
Contact 2 and Phone: Kristine Williams, 336-373-2656
PURPOSE:
Water Resources wishes to exercise the option to extend Contract 2017-0650 to add other work at various locations for pipe rehabilitation with funding approved in the FY 19-20 Budget. In order for work to proceed, approval for a contract extension is requested.
BACKGROUND:
Contract 2017-0650 was approved and authorized by City Council on July 17, 2018. The contract was awarded to Michels Corporation in the amount of $550,300.00. The contract called for the rehabilitation of water lines by applying a structural epoxy liner along S. Elm Street from Gate City Boulevard to Martin Luther King Jr. Drive and other locations around the city. The original contract allowed the City the opportunity for one extension as a unit price contract on an annual basis which is accounted for in the current adopted operating budget. Authorization of a contract extension is being requested by City Council Meeting to allow additional work to proceed to support the increased resurfacing budget.
The City’s pipe rehabilitation program evaluates potential risks associated with the existing system and engineered to meet defined levels of service. Water line age, material of pipe, installation methods, water line pressure, low flow and water quality are the reasons of rehabilitating water lines. The contract extension will continue rehabilitation of water lines installed before 1940 and along routes that are scheduled to be resurfaced in subsequent years. Field Operations has identified these streets to be resurfaced and the goal of Water Resources is to rehab all existing infrastructure before the street is resurfaced. Approximately 14,130 linear feet of water line will be rehabilitated as part of the contract extension.
The MWBE goal for this contract is 4% combined for the original contract and contract extension. The contractor proposed 3.75 % MBE and 0.26% WBE participation for total MWBE participation of 4%.
BUDGET IMPACT:
Funds are budgeted in the Water Resources Capital Improvements Fund account 503-7028-01.6016 A19060 in the amount of $2,796.462.11.
RECOMMENDATION / ACTION REQUESTED:
The Water Resources Department recommends that City Council adopt a resolution authorizing the execution of the Contract Extension for Contract 2017-0650 with Michels, Inc. for the amount of $2,796,462.11.