Title
Award Utilities Portion of IFB26-18 - Denver Steels Phase II Improvements Project to TLC Plumbing and Utility, in the amount of $1,760,773.00 plus Applicable Gross Receipts Tax, and Approval of Budget Revision 2026-06
Recommended Action
I move that the Board of Public Utilities recommend the award of the Utilities portion of IFB26-18 for the Denver Steels Phase II Improvements Project to TLC Plumbing and Utility, in the amount of $1,760,773.00 and a contingency in the amount of $176,077.00 for a total project amount of $1,936,850.00, plus NMGRT, and forward to Council for approval. I further move that the Board recommend Budget Revision 2026-06, forward to Council for approval, and include a copy in the minutes for the record.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented and forward it to the Council for approval.
Body
On July 17th, 2025, the Denver Steels Phase II Project was advertised for bids. Bids were received on August 7th, 2025, and one responsive bid was received from TLC Plumbing and Utility.
The Denver Steels Phase II project is a joint roadway and utility upgrade project with the Public Works Department. The roadway improvements include the construction of new sidewalks, ADA ramps, curb and gutter, storm drain upgrades, and a new asphalt surface. The specific areas undergoing work are 36th Street between Orange Street and Ridgeway Drive, Pueblo Drive between 36th Street and 35th Street, Questa Drive between 36th Street and 35th Street, and Ridgeway Drive between 36th Street and 35th Street. Additionally, there is a bid alternative for broadband, which involves installing broadband conduits and vaults along 36th, Pueblo Drive, Questa Drive, and Ridgeway Drive.
For the utilities portion, the project entails replacing an existing 6-inch cast-iron water main, which has reached the end of its service life, with approximately 4,000 linear feet of new 8-inch C-900 PVC pipe. As part of this installation, existing water meters will be removed and relocated to new locations-either behind the curb and gutter or within the sidewalk. The project will include the installation of 83 new water meters with 36-inch meter cans, six new fire hydrants, and a new 1-inch PEX service line.
Alternatives
If the Board decides not to award the Denver Steels Phase II Improvements Project, staff will coordinate with the Public Works Department to re-bid or defer the project.
Fiscal and Staff Impact/Planned Item
$1,500,000 is budgeted in FY 2026 for the waterline replacement. The total project budget, including 10% contingency and NMGRT, will be $2,073,640.00. DPU staff are seeking approval of Budget Revision 2026-06 in the amount of $573,640.00 to cover the bid cost overrun above this year's budgeted amount. One of the causes of this overrun was Phase I added 600 feet of additional road to reconstruct in this Phase II and this will be deducted from next year's Phase III project. Also, the bid price for this work was elevated from DPU's estimate at $1.5 Million. The project is funded by Drinking Water State Revolving Loan DW-6651 which has been secured to fund Phase II and Phase III of the Denver Steels waterline replacement in the amount of $2,727,000. Once Phase III design is completed, staff will update the construction estimate and make a request to increase the loan amount at that time.
Attachments
A - Denver Steels Utility Construction Plans
B - Budget Revision 2026-06