Agenda Item - 2022-04-05 - Number 08.5 - Lakewood Trunk Construction Project Contract Award - WO 311 8.5
COUNCIL REPORT
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QREGoNI'
Subject: Work Order 311- Lakewood Trunk (T-LW-1)
Meeting Date: April 5, 2022 Staff Member: Stefan Broadus, P.E.
Assistant City Engineer
Department: Engineering
Action Required Advisory Board/Commission Recommendation
❑ Motion ❑ Approval
❑ Public Hearing ❑ Denial
❑ Ordinance ❑ None Forwarded
❑ Resolution ❑X Not Applicable
❑ Information Only Comments:
❑ Council Direction
❑X Consent Agenda
Staff Recommendation: Authorize the City Manager to sign a public improvement contract
with Icon Construction & Development, LLC for construction of the Work Order 311 -
Lakewood Trunk (T-LW-1) project in the amount of$740,864.
Recommended Language for Motion: Move to authorize the City Manager to sign a public
improvement contract with Icon Construction & Development, LLC for construction of the
Work Order 311 - Lakewood Trunk (T-LW-1) project in the amount of$740,864.
Project/ Issue Relates To:
❑X Council Goals/Priorities ❑X Adopted Master Plan(s) ❑Not Applicable
BACKGROUND
The City's 2013 Wastewater Master Plan (WWMP) identifies the Lakewood Trunk Rehabilitation
(T-LW-1) as one of several pipeline repair projects. The wastewater mainline was identified to
have less than 10 years of remaining useful life. Staff was hopeful the issues could be addressed
via pipe-lining in order to minimize costs and impact. However, once the design phase started,
the pipe was found to have several significant sags, or low spots, which can lead to blockages
and overflows. These sags can only be corrected through open excavation and replacement.
This project will replace the Lakewood sewer trunk line restoring the useful life, reducing risk of
overflows, and minimizing infiltration and inflow (I/I) into the City's sewer system.
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeosweao.city
Page 2
DISCUSSION
City staff contracted with Wallis Engineering to perform professional engineering design of the
identified improvements. The project limits are along State Street/Hwy 43 from North Shore
Road to just north of Foothills Road. The scope of work developed includes about 850 linear
feet of new sewer mainline, 7 new manholes, and the corresponding restoration (asphalt,
pavement markings, landscaping, etc.) of the disturbed area. The project did end up costing
more than originally anticipated in the WWMP, as the extreme depth (18 feet) was not realized
during the master planning process, and other components were added to the scope for
efficiency and viability.
This project was advertised on February 23rd and 25th. Bids were opened on March 17th with
one proposal received as listed in the table below. Construction is expected to begin in May
2022 and be completed a few months later.
Contractor Icon Construction
& Development
Bid $ 740,864
Bid Points 90
COBID Points 0
Total Points 90
Rank 1
This bid was about 8% higher than the engineer's estimate of$684,599. While only one bid was
received, staff believes it to be reasonable and responsible. Considering the current market
volatility in labor and materials, depth of the sewer, and traffic control requirements on State
Street, a bid of 8%over the engineer's estimate is reasonable. Alternatively, the bid could be
rejected and the bid re-advertised, however there is no reason to believe the resulting bids
would be lower. Staff recommends awarding the contract to Icon Construction & Development
as the most cost-effective means to delivering this project.
FISCAL NOTE
This project is budgeted from the Wastewater fund. Anticipated project expenses by phase are
shown in the table below.
Project Phase Expected Cost
Design $110,000
City Payroll $40,000
Construction $750,000
Total $900,000
The 21-23 Biennium CIP indicated $230,000 for this project. That estimate was taken from the
2013 Master Plan which underestimated several components of this project, and the scope was
expanded to incorporate several other aspects in the area to ensure a "dig once" approach to
addressing the wastewater facility as a whole. To account for the difference between the initial
CIP budget and the current estimates, staff plans to submit a budget modification. Also, other
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city
Page 3
wastewater projects identified for starting within the current biennium have been pushed out
into the future. Therefore, sufficient wastewater funds will be available to address this project
cost.
RECOMMENDATION
Authorize the City Manager to sign a public improvement contract with Icon Construction &
Development, LLC for construction of the Work Order 311 - Lakewood Trunk (T-LW-1) project in
the amount of$740,864.
503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city