Title
Consider a memorandum/resolution authorizing the award of Bid No. 23-41, Wastewater Improvements for Chaparral Road Project to Arguijo Corporation with a contract in the amount of $2,729,604.
Summary
DATE: September 19, 2023
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Authorize the Award of Bid No. 23-41, Wastewater Improvements for Chaparral Road Project to Arguijo Corporation
BACKGROUND AND FINDINGS:
The 2019 Water and Wastewater Master Plan includes project 7S - construction of a sewer main north of Chaparral Road and west of Trimmier Road (Project No. 180014). It also includes the construction of a force main along Chaparral Road that will allow wastewater flows from this area to be diverted from Lift Station No. 24 to the South Wastewater Treatment Plant. This project will bring sewer service to the area around the intersection of Chaparral Road and Trimmier Road. The completion of this project is critical for construction of the American Rescue Plan Act (ARPA) funded Fire Station No. 4/Emergency Operations Center (EOC) Project.
On August 10, 2023, two (2) bids were received in response to Bid No. 23-41, Wastewater Improvements for Chaparral Road Project. The following bids were opened and read aloud:
Purchasing, Water and Sewer, and Walker Partners staff reviewed the bids and relevant bidder experience based on the selection criteria set forth in the contract documents and response of references. Arguijo Corporation is recommended as the awarded bidder for Bid No. 23-41, Wastewater Improvements for Chaparral Road Project in the amount of $2,729,604 as they are the lowest responsible bidder whose proposal is the most advantageous to the city.
THE ALTERNATIVES CONSIDERED:
(1) Do not authorize award Bid No. 23-41, Wastewater Improvements for Chaparral Road Project; resulting in the City not meeting the ARPA funded Fire Station No. 4/EOC timeline.
(2) Authorize the award of Bid No. 23-41, Wastewater Improvements for Chaparral Road Project to Arguijo Corporation with a contract in the amount of $2,729,604.
Which alternative is recommended? Why?
Alternative two (2) is recommended due to extensive experience with the construction of wastewater main projects by Arguijo Corporation and they are the lowest responsible bidder whose proposal is the most advantageous to the City.
CONFORMITY TO CITY POLICY:
This item conforms to state and local policies.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The FY 2023 encumbrance will be $2,729,604 with charges processed throughout future fiscal years until project is complete.
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Yes, funds are available in the 2020 Water & Sewer Bond Fund account number 363-8934-493.69-03.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
Authorize the award of Bid No. 23-41, Wastewater Improvements for Chaparral Road Project to Arguijo Corporation; authorize the City Manager, or designee, to execute a construction contract with Arguijo Corporation in the amount of $2,729,604; and furthermore, authorize the City Manager, or designee, to execute any and all change orders within the amounts set by State and Local law.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Bid Proposal
Contract
Notice of Award
Walker Partners Letter of Recommendation
Certificate of Interested Parties (Form 1295)