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October 19, 2009 - Council approved Resolution R2009-203 awarding the contract for the 1,000,000
<br /> Gallon Composite Water Tank and Booster Pumping Station Project, City Project 06-17, to
<br /> Landmark Structures I, LP., as the lowest, responsible bidder in the amount of$2,588,000,
<br /> October 19, 2009 - Council approved Resolution R2009-204 awarding the contract for the M L King
<br /> Water Main Project, City Project 03-23, to Atlas Excavating, Inc., as the lowest, responsible bidder in
<br /> the amount of$5,758,139.75.
<br /> BACKGROUND:
<br /> A history of the water projects is attached as Appendix B.
<br /> PubGc Water Supply Loan Program
<br /> Throughout the loan process with the I-EPA for the South Elevated Water Tank and Booster
<br /> Pumping Station and the Water Distribution Main from the South Water Treatment Plant to the
<br /> Elevated Tanks projects it was the City's understanding that the I-EPA would pay the contractor
<br /> directly. However, the final loan agreement with the I-EPA covers both projects requiring the City to
<br /> issue payments to each contractor upon receiving a combined payment from the loan. When the
<br /> initial construction contracts were approved on October 19, 2009,the City Council did not authorize
<br /> a contingency amount as part of each project.
<br /> The approved Public Water Supply Loan Program loan amount includes the following:
<br /> Project Budget Water Main Water Both ',
<br /> Tank/Pump Projects �
<br /> Station
<br /> Design Engineering* $347,500 $161,500 $509,000
<br /> Construction Engineering $550,000 $150,000 $700,000
<br /> and Biddin
<br /> Construction $5,758,140 $2,588,000 $8,346,140
<br /> Contingency $172,744 $77,640 $250,384
<br /> Total Loan Amount $6,828,384 $2,977,140 $9,805,524
<br /> * The total City contract for Design Engineering was $524,000. The I-EPA
<br /> deducted $10,000 for Wetland Determination and $5,000 for Archeological
<br /> Survey as ineligible for loan reimbursement.
<br /> Project Contingency
<br /> The final loan amount will not be known until the completion of the project and all bills are approved
<br /> and paid. Therefore the contingency at this point is an estimate only and may be more or less than
<br /> the amount indicated in the loan agreement. Prior to any change orders, the I-EPA is contacted for
<br /> approval as part of the loan.
<br /> With major water main work going through the heart of the older areas of the City, unforeseen
<br /> problems will be encountered. While not in the middle of the City, constructing a major elevated
<br /> water storage tank faces similar unforeseen issues. Having a contingency in place is necessary as the
<br /> two projects go forward.
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