Council Memo

Award of City Contract No. 2018-233 to ALC Underground, LLC for the Mingus and Douglas Lift Stations Abandonment Project for a new sewer main in the amount of $602,293.25. Funding is available in the Wastewater Fund.


Department:Public WorksSponsors:


  1. Printout
  2. Vicinity Map

Document Comments

Recommended Action: MOVE to award City Contract No. 2018-233.



Item Summary


This item is to award City Contract No. 2018-233 to ALC Underground, LLC for construction of the Mingus and Douglas Lift Stations Abandonment Project in the amount of $602,293.25.


The location of the project is shown on the attached vicinity map.




The Mingus and Douglas Lift Stations Abandonment Project generally consists of the construction of a new gravity sewer main, reconnection/rerouting of existing sewer services, and the removal of two aged sewer lift stations in need of replacement. The work will also include milling and replacing of existing asphalt pavement with new asphalt pavement on Campbell Avenue from approximately Delano Avenue to Mingus Avenue. 


This project was identified by wastewater collections staff for possible lift station removal projects based on the age of the infrastructure and when adjacent subdivision development brought additional gravity sewer into the vicinity of the lift stations. Additionally, the Wastewater Model confirmed that the existing lift stations were creating capacity concerns in downstream mains under the current configuration. This project will increase operational efficiency of the wastewater collection system by reducing the number of lift stations that will require operation, maintenance, rehabilitation and replacement costs.  At the same time, this project will mediate potential capacity concerns on existing mains and remove the need for a new sewer upsizing project. 


City staff has been working with Prescott Unified School District staff to obtain needed easements at the school and to coordinate construction associated with Campbell Avenue adjacent to the school to be completed during summer break.


Bid Results


The project was publicly bid on two consecutive weeks during May in 2018.  A construction pre-bid meeting was held on May 21, 2018 with five potential general contractors in attendance.  One bid was received and opened May 24, 2018 with the following results:


Company                                                             Location                                          Bid Amount

ALC Underground, LLC                            Chino Valley, AZ                            $602,293.25             


The Engineer’s Estimate for the Project: $432,899.50


Written confirmation of their bid has been received from ALC Underground, LLC.  Verification of license, bonding, references, and past performance of similar projects has been completed. 


City staff has critically reviewed the bid received, as the bid was significantly higher than the Engineer’s Estimate. The contractor noted that the combination of the quick timeframe for completing work within Campbell Avenue (within five weeks while school is on summer break), and the depth of the proposed sewer main in locations, with respect to trenching and backfilling were primary factors in the higher than typical construction cost.  Further, Staff reviewed the engineer’s estimate and found upon closer inspection that the estimate was low.  As only one bid was received, Staff also checked with the State Job Order Contracting (JOC) program manager to see what the potential construction cost would be for the project.  Staff found that if the project was constructed using the JOC program, the cost would be equivalent to the bid received.  Staff had positive experience with ALC Underground on another recent lift station abandonment project and felt that the contractor understands the project requirements and would perform well on this project.


Based on this information, the bid has been deemed responsive and balanced.  Award of the low bid in the amount of $602,293.25 is recommended.


Project Schedule


Per the contract, all work must be substantially complete within 90 calendar days of the notice to proceed.  Pending contract award, the following milestones have been identified:


Award of Contract                                                        June 12, 2018

Notice to Proceed (NTP)                                          June 18, 2018

Commence Construction                                          June 18, 2018

Campbell Ave. Completion                                          July 20, 2018

Project Substantial Completion                             September, 2018


Financial Impact


Funding for this contract was budgeted in FY18/19 and is available from the Wastewater Fund.  The City’s standard construction contract will be used for this project.


Meeting History

Jun 12, 2018 3:00 PM Video City Council Voting Meeting
draft Draft

Utilities Manager Eric Bay presented on the possible award of City Contract No. 2018-233 to ALC Underground, LLC for the Mingus and Douglas Lift Stations Abandonment Project for a new sewer main in the amount of $602,293.25. The current lift stations were constructed circa 1950's and need replaced. Wastewater Collection staff identified a concept that allowed them to eliminate them and flow the wastewater to a different portion of the collection system.

Councilman Sischka left the room.

MOVER:Alexa Scholl, Councilwoman
SECONDER:Jim Lamerson, Councilman
AYES:Greg Mengarelli, Billie Orr, Steve Blair, Phil Goode, Jim Lamerson, Alexa Scholl
AWAY:Steve Sischka