Title
Resolution to Increase the Approved Construction Contingency Amount for the Ingalls Kingsley Watermain Project with Bailey Excavating, Inc. to Accommodate the Extension of Sanitary Sewer Service to 2731 Newport Road (Additional $236,000.00, Total Contract Amount $4,504,513.70)
Memorandum
Attached for your review and approval is a Resolution to increase the construction contingency amount on the construction contract with Bailey Excavating, Inc. for the Ingalls Kingsley Water Main Project (RFP 26-12).
The City was approached several months ago by the property owners of 2731 Newport Road regarding their failing septic system. The property does not currently have access to the City’s sanitary sewer system, creating an urgent need to extend public sanitary sewer infrastructure to the property so that the property can be connected. The property annexed into the City in 2020 and connected to the City drinking water system at that time. In accordance with Chapter 28 of the City Code, the property owner will be required to pay all applicable sanitary sewer capital recovery charges and sewer extension charges at the time of connection to the public sanitary sewer system.
Given the urgency of providing sanitary sewer service to this property, quotations were solicited from three contractors currently performing utility construction work on City capital improvement projects. Bailey Excavating, Inc. was selected based on its competitive pricing and its ability to utilize alternative pipe materials that will expedite construction. This approach will allow Newport Road to be reopened to traffic sooner than would otherwise have been possible. At the time of this writing, construction is expected to begin in early July.
The estimated cost of the sanitary sewer extension work is $215,289.17. For the purposes of expedience, the work is being done as a change order to the existing contract with Bailey Excavating for the Ingalls Kingsley Watermain Project, which was approved by City Council on April 20, 2026 (R-26-133). This Resolution will restore that contingency amount to the Ingalls Kingsley project and add an additional contingency for the sewer extension work.
Budget/Fiscal Impact: Funding for the sewer extension work at 2731 Newport Road is available in the approved Sewage Disposal Fund Capital Budget. The new overall project costs are summarized below:
Original Contract $4,268,513.70
2731 Newport Sewer Work $ 236,000.00
Total $4,504,513.70
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, City Council approved a construction contract (R-26-133) with Bailey Excavating, Inc. in the amount of $4,268,513.70 for the Ingalls Kingsley Water Main Project (RFP 26-12);
Whereas, The property located at 2731 Newport Road currently lacks access to the City's sanitary sewer system, and the existing septic system is failing, necessitating the timely extension of city sanitary sewer to the property;
Whereas, Per Chapter 28 of the City Code, the property owner will be required to pay all applicable sanitary sewer capital recovery charges and sewer extension charges at the time of connection to the public sanitary sewer system;
Whereas, The City obtained quotes for the sewer extension work from three contractors already performing utility work on capital projects, and Bailey Excavating was selected based on their pricing and proposed schedule;
Whereas, The sewer extension work will be completed as a change order to the Ingalls Kingsley Watermain Project to expedite the installation;
Whereas, This Resolution will restore the contingency amount to the Ingalls Kingsley Watermain Project, as well as add an additional contingency for the sewer extension work; and
Whereas, Funding for sewer extension work is available from the Sewage Disposal Fund;
RESOLVED, The City Council approves an increase in the contingency for the contract with Bailey Excavating, Inc. for the Ingalls Kingsley Water Main Project in the amount of $236,000.00 for purposes of extending sanitary sewer service to 2731 Newport Road re-establishing the original $430,000.00 contingency to be available for potential future change orders above $4,504,513.70; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.