R2004-155 ACCEPTING THE BID AND AUTHORIZING A CONTRACT

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� . . COUNCIL COMMUNICATION FORM Engineering & Infrastructure Memorandum NO. 2004-73 September 28, 2004 ' TO: Honorable Mayor Osborne and City Council , FROM: Steve Garman, City Manager � Stephen Swanson, P.E.,Director of En ineerin & Infrastructure� g g Mathew C. Newell, P.E., City Engineer�� , SUBJECT: Water Main Extension Franklin Street Road, City Project 04-12 SUMMARY RECOMMENDATION: It is recommended by staff that the City Council approve the attached resolution awarding the contract for Water Main Extension Franklin Street Road, City Project 04-12, to Bodine Services, Inc., as the lowest, responsible bidder in the amount of $493,000.00, and that the Mayor be authorized to execute the contract, and the City Clerk to attest. � BACKGROUND: On June 7, 2004, the City Council authorized an agreement with the Town of Long Creek regarding water service boundaries. The five year agreement addressed extending and establishing the City's service area to south of County Highway 30 (Elwin Blacktop). Specifically, the agreement covers a proposed extension of the City's service boundary to encompass the Shepard's Hill subdivision, south of the intersection of County Highway 30 and South Franklin Street Road. The agreement authorizes the Town of Long Creek to extend their water service into this area if the City does not establish service by October 1, 2005. Staff recommends that the City establish its right of water service in this area through the authorization of a project to extend a major water main down South Franklin Street Road to County Highway 30 and extend a service network into the Shepard's Hill subdivision. This extension will also open up the opportunity to service residents on Dawson Road, Tohill Road and Mount Gilead Road in future years. A questionnaire was sent to the residents in the Shepard's Hill area and received a very favorable response in favor of City water being extended into the area. The project plans and specifications were prepared by Engineering Division staff. The project was advertised September 10, 2004, and bids were opened on September 28, 2004. The results for the letting are as follows: . Compared to Engineer's Est. Bidder Bid Price Over (-Under) Engineer's Estimate $613,230.00 ---- Bodine Services, Inc. $493,000.00 (-19.61 %)