DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Adopt a Resolution Approving Addendum No. 1 and No. 2 and Awarding a Contract to SubTerra Construction, Inc. for the A Street Sewer Line Replacement Project, Project No. 07831, in a Not-to-Exceed Amount of $4,150,449
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RECOMMENDATION
Recommendation
That the City Council adopts the attached resolution (Attachment II) approving Addendum No. 1 and No. 2, providing minor revisions to the project specifications and plans; and awarding the construction contract to SubTerra Construction, Inc., for the A Street Sewer Line Replacement Project, Project No. 07831, in an amount of $3,773,135 and approving $377,314 in administrative construction contingency for a total contract amount not-to-exceed $4,150,449.
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SUMMARY
The Public Works & Utilities Department replaces the City’s undersized or structurally damaged sewer mains through annual capital improvement projects. The Sewer Line Replacement Project FY24 will improve the capacity and maintain the operability of the sewer collection system by replacing approximately 5.6 miles of existing vitrified clay pipe (VCP), asbestos cement pipe (ACP), and polyvinyl chloride (PVC) pipe ranging in diameter from 6 to 12-inch with new 8, 10, 12, 16, or 24-inch PVC or high-density polyethylene (HDPE) pipe. This project includes twenty-nine locations throughout the City and design anticipated to be completed in summer 2026. To avoid delaying the planned paving rehabilitation of A Street as part of the FY26 Pavement Improvement Project (PIP), the A Street portion of the Sewer Line Replacement Project FY24 has been advanced ahead of schedule with the design completed in February and the public bidding process completed in March. Expediting this work will ensure that the necessary sewer infrastructure updates are completed prior to the paving improvement, thereby allowing A Street to be resurfaced as originally planned.
On March 24, 2026, seven (7) bids were received. The low bid was $3,773,135 which is $579,865, or 13.3%, below the Engineer’s estimate of $4,353,000. Staff is requesting City Council’s approval of Addendum No. 1 and No. 2, which provided minor revisions to clarify the specifications/plans, and awarding the construction contract to the lowest responsible bidder, SubTerra Construction, Inc, in the amount of $3,773,135, and approving $377,314 in Administrative Construction Contingency (change orders).
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution