Title
Approval of Task Order No. 5 to AGR24-04a with Allied 360 Construction LLC for the Los Arboles Lift Station Rehabilitation in the Amount of $299,737.47 Plus Applicable NMGRT
Recommended Action
I move that the Board of Public Utilities recommend approval of Task Order No. 5 to AGR24-04a with Allied 360 Construction LLC for the Los Arboles Lift Station Rehabilitation in the Amount of $263,737.47 and a contingency in the amount of $36,000.00 for a total of $299,737.47 plus Applicable Gross Receipts Tax and forward to Council for approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve as presented.
Body
This task order has been prepared to complete the rehabilitation of Los Arboles lift station. The work was awarded to another contractor on October 29, 2024, as part of IFB25-30 Lift Station Rehabilitation Project - North Road and Los Arboles Lift Stations. The IFB25-30 contract has been terminated due to non-performance by the contractor.
The North Road lift station is substantially complete and is in operation with the exception of a few minor punch-list items; 95% of the work to rehabilitate the Los Arboles lift station remains. Allied 360 Construction will complete the remaining work at both lift stations through the on-call construction contract with the DPU. Staff is coordinating the return of county furnished pumps and valves for the Los Arboles lift station from the terminated contractor and is developing a schedule to resume the work. Our goal is to complete the work by November 2025 unless there are delays returning the equipment. In the worst case scenario, the site will be cleaned up, open excavations will be buried through the winter and work will resume in the spring.
Alternatives
If the task order is not approved staff will focus on making the site safe and continue to pursue rehabilitation of the Los Arboles lift station given its poor condition.
Fiscal and Staff Impact/Planned Item
The cost to rehabilitate both lift stations through the cancelled contract would have been $432,932.75, including NMGRT. A total of $339,584.96 was paid out to the prior contractor. The added cost to complete the work by an on-call contractor will cost DPU an additional $189,000, including NMGRT. Funds from the FY2026 capital project for North Community and Western Area sewer rehabilitation will cover the $189,000 overrun. A claim will be made against the terminated contractor's performance bond to recover these additional costs.
Attachments
A - Task Order No. 5 to AGR24-04a