17 - Award bid to APSCO for water line materials for ARPA Funding Water Line Extension & Redundance ProjectItem No. 17
Memorandum
TO: Mayor, Mayor Pro Tem & City Council
FROM: Grayson Path, City Manager
Michael Smith, Public Works Director
SUBJECT: ARPA Project — Water Line Extension and Redundancy Project
Water Line Bid Award
DATE: December 13, 2021
BACKGROUND:
In March 2021, Congress passed the ARP Act which included funding for local governments in
response to the CoVid-19 pandemic. This is a follow up program to the CARES Act that was
passed in 2020 which gave the City approximately $1.5 million last year. With the ARP Act, the
City received $3 million in August 2021 and will receive another $3 million in 2022.
In the FY21/22 Budget, the City identified a significant Water Line Extension and Redundancy
Project along SW Loop 286, Old Bonham Road, and 19a' Street SW. This project will provide
some much needed redundancy for our water distribution system west of SW Loop 286 which
includes several hundred residences and a few significant industrial employers, as well as provide
for expansion of industry in the Gene Stalling Industrial Park were that to become an option.
Currently, these entities are served by singular lines (one for the residences, one for the industries)
without any loop, such that a break in these lines would cause costly outages. To accomplish this
project using the funding we have available, the City was going to apply ARPA Funding towards
material and the City's Public Works Department CIP Division would perform the necessary labor
to make the appropriate installation.
STATUS OF ISSUE:
We have received one bid for material for this project. The bid came in higher than we estimated,
but Resource Management and Consulting performed some due diligence and learned that the
market is extremely volatile, supply is extremely limited, and prices are foreseen to continue to
increase for months, if not an entire year, going forward. Other vendors would not bid because of
those issues. Therefore, after considering our options, we believe the provided bid is the best we
are going to receive for any stretch of the foreseeable future. And given we have the ARPA Funds,
this is an opportunity we rarely will get again.
This bid tab is attached and includes the material we are purchasing, but in short we are planning
on laying over 15,000 linear feet of 12" water line. This is a tremendous opportunity for our water
distribution system. Delivery of material is required to take place within 150 days of placing the
order and our CIP crew will spend much of 2022 performing the work.
BUDGET:
The City was granted $3,000,000.00 in ARPA Funding in August 2021. We have spent
approximately $1.1 million in Pat Mayse and Ground Storage Facility backup generation, another
$600,000.00 in Police, Fire, EMS, and Public Works Equipment (identified in a separate agenda
memo on this council agenda), which leaves us approximately $1.3 million available for this water
line extension and redundancy project. Furthermore, our plan is to seek reimbursement for our
labor through the ARPA which can assist us with covering expenses tied to these projects. That
would be similar to how we addressed the CARES Funding.
The City has already budgeted the necessary payroll for our CIP Division to perform the work.
Had we hired a third party contractor to do this project, it could easily have been several million
dollars more in expense.
When we first were planning on this project, we were estimating $540,000.00 in expenses for the
FY21/22 Budget. Again though, that was in August 2021 and prices have, and continue to, go up.
OPTIONS:
1. Award the bid to APSCO, Inc. in the amount of $885,237.60 for waterline improvements
and authorize the City Manager to sign necessary documents.
2. Request additional information and/or reject the bid.
RECOMMENDATION:
1. Award the bid to APSCO, Inc. in the amount of $885,237.60 for waterline improvements
and authorize the City Manager to sign necessary documents.
MdTabulatlon
Cilty of Pairris
ARPAJCLFRF Phase I Waterfine Improvements
Decembev 7„ 2021
2,00 RIM,
I Red derrmim an offor In the au bmifted bid and The actual ca kulation. One one hundrach of i penny In the unit puke was miscakulafed