TO: Mayor and City Council
FROM: Beth Beatty, City Manager
SUBJECT:
title
Award of Contract for the Varnado Park Area Water Main Improvements Project to Steve Spiess Construction in the amount of $4,808,304.70
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BACKGROUND:
On January 5, 2021, the Mayor and City Council approved Resolution No. 7613, committing to water conservation through the reduction of non-revenue water in order to comply with the allocation requirements of the Level of Lake Michigan Act, 615 ILCS 50, and the corresponding State regulations. A condition of the City’s Lake Michigan water allocation permit is completion of the City’s Non-Revenue Water Reduction Plan. A major component of this Plan is water main replacement. The water main replacement, estimated at approximately 3% per year, must be sufficient to achieve the reduction of non-revenue water from the City’s water system to not more than 10 percent by the year 2030.
The 2024 Water Main Replacement Program consists of 18 contracts to replace a total of approximately 33 miles of water main, at an as-bid cost of approximately $83,500,000. The Varnado Park Area Water Main Improvements Project was identified to be completed as part of this program. This project consists of replacing approximately 8,100 linear feet of water main in various sizes on Water St and S Des Plaines St (McDonough St to Lucas St); S Joliet St (McDonough St to dead end); S Ottawa St (McDonough St to Shelby St); Munroe St (dead end to S Ottawa St); W Jasper St (Water St to S Joliet St); Shelby St (dead end to Water St and S Des Plaines St to S Joliet St); and Sheridan St (dead end to Water St). This project also includes sanitary sewer work consisting of storm sewer construction to separate the stormwater from the sanitary system on Ottawa Street which will reduce excess flow that is tributary to combined sewer overflow No. 9. Included in this memo is an exhibit showing the project location.
Also included in the scope of this construction project is lead water service line replacements. If lead water services are encountered during the project, they will be replaced, and these costs will be charged to the Phase V lead water service line replacement program for which the City has secured State Revolving Fund financing.
Design drawings and bidding documents were prepared and the invitation to bid for the project was advertised in the Joliet Herald-News on Thursday, October 19, 2023. The Public Service Committee reviewed this memo at the January 2, 2024 meeting and recommended for approval by full Council.
CONCLUSION:
On Thursday, December 7, 2023, at 2:00 p.m., four (4) sealed bids were received for the Varnado Park Area Water Main Improvements Project. The bid summary is as follows:
CONTRACTOR BID AMOUNT
Steve Spiess Construction Inc., Frankfort, IL $4,808,304.70
D Construction Inc., Coal City, IL $4,842,748.00
PT Ferro Construction Co., Joliet, IL $5,041,629.53
Austin Tyler Construction, Inc., Elwood, IL $5,728,201.72
Engineer’s Estimate $4,575,000.00
The low bid from Steve Spiess Construction Inc., in the amount of $4,808,304.70, is 5.10% above the engineer’s estimate. Steve Spiess Construction Inc. has previously completed similar work for the City and completed this work to the City’s satisfaction.
Funds will be charged to the Water Main Replacement Fund (Org 53880000, Object 557200, $3,805,169.50), Lead Water Service Line Phase V Fund (Org 53780000, Object 557200, $761,460.00), and Sewer Collection Fund (Org 50180020, Object 557200, $241,675.20).
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council award the Contract for the Varnado Park Area Water Main Improvements Project, in the amount of $4,808,304.70, on behalf of Steve Spiess Construction Inc.
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