Carefree UCFD approves $894,466 contract, 25% contingency for Silver Saddle pressure-zone pipeline

The Town of Carefree Utilities Community Facilities District on an unanimous vote approved Resolution 2025-03 to award construction contract 2025-C01 to Judd Company LLC for the Silver Saddle Pressure Zone Pipeline Improvement Project, with a 25% contingency.

C.J. Dimaggio, the town engineer, told the board the project will replace about 4,000 feet of aging 3-inch PVC mains with new 8-inch ductile iron pipe to create a pressure zone that will improve system flow and permit the installation of seven new fire hydrants in the Highlands.

"The Silver Saddle is where the tanks are," Dimaggio said. He described the work as creating "a zone of pressure in the water system rather than a pipeline itself," explaining that the larger ductile-iron main can convey more volume and withstand higher pressures, allowing the system to shift flows among reservoirs to provide reliable customer service and improved fire flow.

Dimaggio said the district issued an RFP in late August and received 13 bids. The low bid of $894,466 came from Judd Company LLC (listed as JUDCO in the board packet). He recommended awarding the contract but noted two funding and construction risks: the bulk of the project funding—about 80% and up to $800,000—was expected from an EPA community grant that is on hold because of a federal government shutdown, and unpredictable "hard-dig" subsurface conditions could require expensive change orders.

Dimaggio explained hard dig as naturally cemented subsurface materials common near foothills that can dramatically increase excavation costs. He estimated roughly 20% of the planned alignment might encounter hard-dig conditions and said that, if widespread, the change orders could add an estimated $200,000 to $300,000 to the project.

Board members and residents asked technical questions about construction sequencing and service interruptions. Dimaggio said the existing 3-inch PVC mains would be kept in service during construction and abandoned in place after the 8-inch line was ready for service. "The 3 inch will be abandoned in place and kept in service during construction," he said.

The motion to adopt Resolution 2025-03 — authorizing the chairman to execute construction contract 2025-C01 with Judd Company LLC and to establish a 25% contingency fund — was moved, seconded and passed unanimously. The board record notes the award is contingent on EPA concurrence and confirmation of federal funding availability.

Project proponents told the board the new main and hydrants will cover a pressure zone that serves more than one-third of the town's land area and will benefit both customers and fire protection in the Highlands and transition areas consolidated into the Carefree Water Company system.

The board did not set an exact construction start date at the meeting and said the district would monitor EPA action on the grant and manage potential change orders through the approved contingency.