The approved 2018 Capital Improvement Program includes $2,000,000 for the funding of Water System Improvements.  This project is our annual program to replace aging water mains throughout the Village. The Public Works Department evaluates and prioritizes water main replacement based on defect severity, occurrence interval of failures, service reliability and other related parameters.  This year’s project includes the replacement of over 8,000 linear feet of water main in the Ivy Hill and Knob Hill Subdivisions, and was awarded earlier this year to Concept Plumbing of Palatine, Illinois.

As a general practice, Public Works designs more replacement sections then the budget allows. This is a contingency in the event that the Village receives excellent pricing due to an overly competitive market. In 2018, the Public Works Department received thirteen bids for water main improvements ranging from $1.575M to $2.417M. The $2.0M estimate is for design, construction and construction inspection based on last year’s unit pricing.

In 2015, the entire bid package for water main improvements was awarded with the exception of one section of water main on Kennicott Avenue from Grove Avenue to George Street. Funds were not available that year for this section of water main, which was bid as an alternate.

The value of this year’s contract awarded to Concept Plumbing is $1.575M. Due to extremely favorable bid pricing from a competitive market, we have enough funds in account 505-9001-571-5025 WA9001 to have Concept Plumbing perform this additional work this year. Based upon the approved contract unit prices, the section of water main on Kennicott that was designed in 2015 would be $181,420 to install and restore. The new total for the 2018 water main replacement would be $1,756,420. This is still well under the approved amount ($2,000,000) for 2018 water main replacement. This represents another 920 linear feet of water main replacement, which enhances the integrity of the Village’s water distribution system. This pricing is also less than seven of the eight bids received for the same section of water main in 2015.

Staff has been pleased with the Concept Plumbing’s quality of work and recommends award of this additional work.

RECOMMENDATION

It is recommended that the Village Board increase the contract with Concept Plumbing for the 2018 Water System Improvements in the amount of $181,420 which would increase the total contract value to $1,756,420 and authorize execution of the necessary documents.