Item Coversheet
Agenda Item: 8R. 

Date Prepared:  9/20/2018 Council Meeting Date: 10/2/2018

TO:Jeff Tyne, City Manager 
Henry Darwin, City Manager 
FROM:  Adina Lund, Development and Engineering Director 
Contract Amendment, MGC Contractors, Inc., Butler Recharge Well, Butler Treatment Plant, 79th Avenue and Butler Drive 


Discussion and possible action to approve a contract amendment with MGC Contractors, Inc. for a guaranteed maximum price of $1,943,167 to construct a recharge well at the Butler Water Reclamation Facility.


The City's Capital Improvement Program (CIP) includes project UT00309 - Butler Recharge Wells that provides funding for the installation of new groundwater recharge wells. These new wells inject the treated effluent produced from the Butler Water Reclamation Facility into the ground for future groundwater withdrawal as new drinking water resources.


City staff evaluated potential locations for these recharge wells, which included installation of test well and groundwater modeling. Staff has also been working with the Arizona Department of Water Resources (ADWR) to permit the facility with the intent to recharge approximately one million gallons of water daily.


Recharging of our groundwater aquifers is a key priority of the City to help ensure a sustainable water supply for our future.


This is a phased award for construction. A contract (ACON 18413P35) was previously approved in the amount of $292, 277.00 to provide preconstruction services during the design effort.


MGC Contractors, Inc. is a current Job Order Contractor (JOC) for the City, and has provided a Guaranteed Maximum Price (GMP) of $1,943,167 to complete the project as designed by HDR Engineering, Inc. This amendment will result in a total project cost of $2,235,444 with the preconstruction services contract.



Previous Actions/Background:

At the May 1, 2018 City Council meeting, Council approved the City's FY2019-2028 Capital Improvement Program, which included funding for UT00309.


The City Attorney's Office, Materials Management Division, and the Development and Engineering Department have administratively approved all previous contractual items.


A:  Approve the contract amendment with MGC Contractors, Inc.


B:  Deny approval of the contract amendment. This will result in cancellation of the project.

Staff Recommendation:

Staff recommends approval of the contract amendment with MGC Contractors, Inc.
Fiscal Analysis:

There is funding available in the FY2019 Capital Improvement Program for construction of these improvements.


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Contact Name and Number:  
Daniel Kiel, P.E., Engineering Supervisor, (623) 773-7982