On August 7, 2023, the City Council approved issuing a construction contract to Lucas Builders, Inc. ("Lucas Builders"), for the Euclid Water Main Replacement Project, City Project No. 1-W-21 ("Project"). The Project consisted of installing a new 12-inch water main pipeline, new service lines and other related work at Euclid Street, from Whittier Boulevard to North City Limit, and on Wiatt Way to the end of the cul-de-sac to the west. While this work was underway, staff identified a future improvement within the Zone Consolidation/Hacienda Pump Station Project which calls for the installation of an 8" water main extending from Euclid St. approximately 230 linear feet and joining an existing water main within the gated community on Hidden Lane. That additional water main improvement would increase water capacity to the Hidden Lane HOA upon completion of the Hacienda Pump Station (currently in design), and would allow the Utility Authority to better serve the properties along Hidden Lane.

The alignment of the existing water main to be severed is in an easement in Hidden Lane, adjacent to the backyards of multiple properties and represents a potential liability to the Authority should it fail. Hidden Lane is a privately owned and maintained street in La Habra that connects to Euclid St. at the northern City limits. Representatives from the HOA contacted the City regarding the work being done for the installation of the new water main on Euclid St., and asked if the City had any future plans for any water line improvements on Hidden Lane. The HOA representative indicated that they are in the planning stages to repave Hidden Lane and wish to coordinate any underground improvements with the City before they incur costs to pave their street.

In order to expedite the future improvements necessary on Hidden Lane and utilize the competitive bid prices from Lucas Builders, staff requested a proposal from Lucas Builders to install the proposed 8" water main on Hidden Lane as a change order to the existing Euclid Street water main project. Lucas submitted a price proposal of $101,100 for this work and staff confirmed that the price per foot is equivalent to the pricing index provided in Lucas Builders' original bid. With Lucas Builders already mobilized and working in the area, cost savings will be realized since there will be no additional mobilization fees incurred. Furthermore, if this work is done now, the Authority will bear no additional expenses for having to repair pavement on Hidden Lane since the proposed water main project will be coordinated with the HOA in advance of their paving project. Lucas Builders is currently near completion of the Euclid water main project, and if approved by Council, the additional work on Hidden Lane could be completed in early September 2024.

In addition to the recommended change order for Hidden Lane, staff is also requesting additional funding to address costs related to design changes for the original Euclid Street water main project that have occurred over the course of the project. Many of these costs are to address previously unidentified and unmarked utility lines and other unforeseen conditions the contractor encountered on Euclid Street during the project. Staff is currently reviewing the additional work that was necessary to document and substantiate the extra costs and the final expense may be less than the additional funding being requested.

In order to complete the Euclid Street water main project and the extra work requested on Hidden Lane, staff recommends approving the bid from Lucas Builders for the installation of the 8" water main on Hidden Lane, and approve additional funding for unanticipated costs related to the water main project on Euclid Street. If approved, the existing purchase order will be adjusted from $1,650,795 to $2,156,023, representing a $505,228 increase, which includes a 20 percent contingency on the additional requested funding.