The Water Services Department's FY 2020-2025 Capital Improvements Plan, Annual Pipe Replacement & Renewal Program includes funding for planned, incremental replacement of aging water lines throughout the water distribution system in order to maintain the highest level of distribution service, reduce maintenance costs and avoid significant future capital costs. This program is not intended to provide for increases to capacity. Projects are identified using the department’s asset management and geographical information system which aides in tracking features such as asset age, maintenance cost and historical performance.
The scope of work identified for this project includes replacing approximately 6,100 feet of 6-inch water pipe along Devens Drive between Knox Valley and Wikle Rd. East, including all cul-de-sacs along the Devens Drive route. The work includes, as is typical for a neighborhood renewal project of this type, replacing customer service lines and meters, valves and fire hydrants. See the attached site map for route.
On June 27, 2019 Water Services Department and Finance Department staff publicly opened construction bids for the aforementioned work. The City received eight competitive bids ranging from a low bid of $1,338,520 to a high bid of $2,995,100. JSJ Construction, LLC of Springfield, Tennessee submitted the low bid. JSJ has completed numerous projects of similar scope, including a very similar project for neighboring Mallory Valley Utility District that included replacing water piping in a Brentwood neighborhood and therefore is considered competent to complete this project.
The department’s budget and engineer’s estimate for this project was established as $900,000. The low bid amount submitted is $438,520 over the project estimate and budget. In discussing with contractors post bid, there seemed to be a concern over the limited work space along the route and potential for significant amount of rock to be excavated which appears to be the primary rational for the higher pricing. The Finance Department evaluated the additional cost impact on the overall Water and Sewer fund and found the overage could be absorbed with little overall impact to operating reserves and debt service coverage levels per the Department’s policy.
Therefore, since the project is needed and staff is committed to save where possible during construction, we are recommending the award with JSJ Construction in the amount not to exceed their low bid of $1,338,520. This does include a $50,000 contingency allowance. Attached is the project engineer’s letter of recommendation, a detailed bid tabulation, and site map for your information.
Please contact Chris Milton, Director of Water Services, should you have any questions. |