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<br /> <br /> <br /> <br /> <br /> MEMORANDUM <br /> <br />Date: September 16, 2025 <br /> <br />To: Mayor and City Council <br /> <br />From: Gerry Beaudin, City Manager <br />Siew-Chin Yeong, Director of Public Works <br /> <br />Subject: City Council Agenda Item 14 – Ratify a Contract with DPI Construction, Inc. for <br />the Emergency Sewer Pipe Replacement at Denker Drive. Request to Amend <br />the recommendations to increase project costs from $500,000 to $650,000. <br /> <br /> <br />During the emergency sewer line repair on Denker Drive and Inglewood Drive, the contractor <br />encountered large underground voids outside of the initial failed sections. These voids, <br />caused by soil loss through the failed sewer line, created unstable trench conditions that <br />required additional excavation and expanded pavement restoration than was estimated. <br /> <br />The work was performed on a time-and-materials basis, and the initial pricing received from <br />DPI Construction, Inc. indicates that project costs will exceed the previously estimated <br />$500,000. <br /> <br />Staff recommend increasing the total project budget from $500,000 to $650,000 to cover all <br />costs incurred. Sufficient funding is available in the Sewer Replacement CIP to support the <br />additional $150,000. <br /> <br />RECOMMENDATION <br />1. Ratify a contract with DPI Construction, Inc. in the not-to-exceed amount of $650,000 for <br />the emergency sewer pipe replacement at Denker Drive. <br /> <br />2. Approve the creation of the Capital Improvement Program (CIP) project, Denker Drive <br />Emergency Sewer Repairs, CIP No. 26203, to the approved 5-year CIP for FY 2025/26, <br />and the budget amendment to appropriate $650,000 from the Sewer Replacement CIP <br />(Fund 431). <br /> <br />