Sweetwater Authority awards contract to replace deep well anode bed on 30-inch pipeline

The Sweetwater Authority Engineering and Operations Committee on May 7 unanimously approved awarding a construction contract to Copro Company for $219,000 to replace a deep-well anode bed and associated rectifier for a 30-inch steel transmission pipeline on Second Avenue.

The project replaces a failing cathodic-protection system that staff and consultants identified in a 2023 corrosion survey. Dr. Kim, a Sweetwater Authority engineering presenter, told the committee the existing rectifier and one of five installed anode systems is at end of life and needs replacement to prevent corrosion of the 30-inch steel pipeline. "Members of the board. I would like to present the first item, which is consideration to over the contract for the deep well anode bed replacement for 30 inch pipeline rectifier on second avenue," Dr. Kim said.

Staff said the authority estimated construction at $180,000 during design but received a single responsive bid from Copro Company for $219,000, about 21.6% over the engineer's estimate. Staff attributed the higher price to current market volatility and tariff impacts on materials, noting much cathodic-protection material is sourced from China. The authority's construction management consultant, TKE, reviewed constructability in December and recommended the project move forward.

To cover the higher bid, staff requested a $150,000 transfer from the street improvement project, increasing the project budget to $254,154. The recommended budget breakdown includes the $219,000 construction contract, a 5% contingency, and $20,000 for inspection and testing. Committee members asked about decommissioning the existing well and life expectancy of the new anode system; Dr. Kim said decommissioning is included and that the system's expected life is about 20 years. Director Castaneda asked, "I was just, wondering about the decommissioning of the existing well that's gonna be taken out. Is that included there?" Staff responded that decommissioning and associated plumbing permits are part of the contract.

Committee members discussed the single bid and market factors. Staff said multiple firms reviewed the bid documents but many were cautious about bidding because of material-price uncertainty. The committee approved the motion to award the contract and the requested budget transfer by roll call; Director Castaneda, Director Cox and Director Martinez voted yes and the motion passed unanimously.

The contract award will allow work to proceed under staff oversight; staff noted the project includes abandoning existing wiring to meet state and utility standards and installing a new 214-foot deep anode well with 12 anodes (up from five in the original installation).