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Item No. 17 <br />Memorandum <br />TO: Mayor, Mayor Pro Tem & City Council <br />FROM: Grayson Path, City Manager <br />Michael Smith, Public Works Director <br />SUBJECT: ARPA Project — Water Line Extension and Redundancy Project <br />Water Line Bid Award <br />DATE: December 13, 2021 <br />BACKGROUND: <br />In March 2021, Congress passed the ARP Act which included funding for local governments in <br />response to the CoVid-19 pandemic. This is a follow up program to the CARES Act that was <br />passed in 2020 which gave the City approximately $1.5 million last year. With the ARP Act, the <br />City received $3 million in August 2021 and will receive another $3 million in 2022. <br />In the FY21/22 Budget, the City identified a significant Water Line Extension and Redundancy <br />Project along SW Loop 286, Old Bonham Road, and 19a' Street SW. This project will provide <br />some much needed redundancy for our water distribution system west of SW Loop 286 which <br />includes several hundred residences and a few significant industrial employers, as well as provide <br />for expansion of industry in the Gene Stalling Industrial Park were that to become an option. <br />Currently, these entities are served by singular lines (one for the residences, one for the industries) <br />without any loop, such that a break in these lines would cause costly outages. To accomplish this <br />project using the funding we have available, the City was going to apply ARPA Funding towards <br />material and the City's Public Works Department CIP Division would perform the necessary labor <br />to make the appropriate installation. <br />STATUS OF ISSUE: <br />We have received one bid for material for this project. The bid came in higher than we estimated, <br />but Resource Management and Consulting performed some due diligence and learned that the <br />market is extremely volatile, supply is extremely limited, and prices are foreseen to continue to <br />increase for months, if not an entire year, going forward. Other vendors would not bid because of <br />those issues. Therefore, after considering our options, we believe the provided bid is the best we <br />