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<br />RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br /> <br />BOARD OF PUBLIC UTILITIES DATE: JANUARY 9, 2023 <br /> <br />SUBJECT: CONSTRUCTION OF THE MONTEEL PLACE WATER MAIN REPLACEMENT <br />PROJECT –INCREASED EXPENDITURE OF $72,000 FOR WORK ORDER NO. <br />2225902 FOR A REVISED WORK ORDER TOTAL OF $306,000 <br />ISSUE: <br />Consider approval of the increased expenditure of $72,000 for Work Order No. 2225902 for a <br />revised total of $306,000 for all engineering, construction, paving, and construction contingency <br />costs for the Monteel Place Water Main Replacement Project. <br /> <br /> <br />RECOMMENDATION: <br />That the Board of Public Utilities approve the increased expenditure of $72,000 for Work Order <br />No. 2225902 for a revised total of $306,000 for all engineering, construction, paving, and <br />construction contingency costs for the Monteel Place Water Main Replacement Project. <br /> <br /> <br />BACKGROUND: <br />The Riverside Board of Public Utilities approved the construction of the Monteel Place Water Main <br />Replacement Project on November 14, 2022. The project entails the replacement of an existing <br />4-inch cast iron water pipeline that was installed in 1963. Based on its leak history, age, and size, <br />this water pipeline has been ranked as a high priority for replacement to enhance the reliability of <br />the water system. <br /> <br />The pipeline work will be performed by Riverside Public Utilities (RPU) Water Division field forces, <br />and the trench repaving work will be performed by RPU’s Paving Panel. The final asphalt cap will <br />be performed by the Public Works Department as part of an upcoming street rehabilitation project <br />in this area. <br /> <br /> <br />DISCUSSION: <br />Two bids were received from RPU’s Paving Panel to repave the pipeline trenches in the amounts <br />of $124,000 and $138,000. The bids exceeded the amount budgeted ($65,000) due to higher- <br />than-expected costs for furnishing and installing the asphalt pavement from what is believed <br />primarily to be related to industrywide increases in paving prices from increases in material costs, <br />trucking costs, and labor costs related to recent union wage increases. It is also believed that this <br />relatively small project did not achieve the economies of scale that would otherwise be afforded <br /> <br />